gail (i.e.)
TRANSCRIPT
INDUSTRIAL EXPOSUREINDUSTRIAL EXPOSURE
ONON
“GAIL”
Submitted in the partial fulfillment of the requirement for the award of the
Degree of Bachelors of Business Administration (BBA)
SUBMITTED BY: UNDER GUIDANCE OF:
____________________ ______________________
BBA (4TH SEMESTER)
BHARATI VIDYAPEETH UNIVERSITY
INSTITUTE OF MANAGEMENT & RESEARCH,
NEW DELHI
ACKNOWLEDGEMENT
The present work is an effort to throw some light on “GAIL”. The work would not
have been possible to come to the present shape without the able guidance,
supervision and help to me by number of people.
With deep sense of gratitude I acknowledge the encouragement and guidance received
by my project guide _____________and other staff members of GAIL.
I convey my heartful affection to all those people who helped and supported me
during the course, for completion of my Project Report.
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PREFACE
A hallmark of any premier business school is its willingness and ability to constantly
explore and implement new ideas and practices in the field of management education.
Institute constantly reorients their programs in order to keep abreast of changing
development.
The initial interaction between school students and industry takes place when the
students undergo project is usually for knowing the process for recruitment, selection,
industrial relations & training of that institution. It is often the exposure to corporate
culture that a student receives, particularly true for students without prior work
experience.
During my training at GAIL, I was taken project on recruitment, selection &
training policy of GAIL.
The main purpose of the study is to know the policies of the bank regarding
recruitment, selection & training, which helped me in gaining knowledge about the
different working pattern of different departments of the company.
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TABLE OF CONTENTPage no.
Chapter 1: Introduction to Company
1. Nature of Business 2. Type & ownership Pattern 3. Organizational Structure 4. Production Lay out 5. Organizational Policies
Chapter 2: Industrial Analysis
1. Industry Overview –(Growth rate of Industry, Contribution to GDP). 2. Current Issues (From Newspaper, Journals –For Company and Industry) 3. Key 4. Environmental Scanning –Political environment, Economic environment,
Socio-Cultural Environment, technological environment, environmental issues (Green environment) and Legal environment.
5. Porters five forces model of competition –Michael Porter
Chapter 3: Marketing Strategies
1. Products of Company 2. 4 Ps (Product: Price, Place & Promotion) 3. STP (Segmentation, Targeting and Positioning) 4. Distribution Channels 5. Promotion Strategies
Chapter 4: Financial Analysis
1. Sources of Finance 2. Ratio Analysis –Any 5 3. Net Profit/ Balance sheet (from annual report) -Analyse
Chapter 5: Key Learning’s from the Company and Recommendations
1. Performance Analysis of the Company 2. Reasons for the expansion/contraction/diversification of Company 3. Comment on Organizational Leadership 4. Market share/growth rate of Company 5. SWOT Analysis of the Company
Chapter 6: Findings
Chapter 7: Conclusions and Suggestions
Bibliography
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CHAPTER-1
INTRODUCTION
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NATURE OF BUSINESS
Gail Success StoryFormation of GAILGAIL (India) Ltd was incorporated in August 1984 as a Central Public Sector
Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG). The
company was initially given the responsibility of construction, operation & maintenance
of the Hazira – Vijaypur – Jagdishpur (HVJ) pipeline Project. It was one of the largest
cross-country natural gas pipeline projects in the world. Originally this 1800 Km long
pipeline was built at a cost of Rs 1700 Crores and it laid the foundation for development
of market for natural Gas in India.
Current Businesses - DomesticGAIL, after having started as a natural gas transmission company during the late eighties,
has grown organically by building large network of Natural Gas Pipelines covering over
9500 Km with a capacity of around 172 MMSCMD; two LPG Pipelines covering 2040
Km with a capacity of 3.3 MMTPA of LPG; seven gas processing plants for production
of LPG and other Liquid Hydrocarbons, with a production capacity of 1.4 MMTPA; and
a gas based integrated Petrochemical plant of 410,000 TPA polymer capacity which is
further being expanded to a capacity of 900,000 TPA. The Company also has 70% equity
share in Brahmaputra Cracker and Polymer Limited (BCPL) which is setting up a
280,000 TPA polymer plant in Assam. Further, GAIL is a co-promoter with 17% equity
stake in ONGC Petro-additions Limited (OPaL) which is implementing a green field
petrochemical complex of 1.1 MMTPA Ethylene capacity at Dahej in the State of
Gujarat. GAIL has 31.52% stake along with NTPC as equal partner in JV company,
RGPPL at Dabhol which operates largest gas based power generation facility in the
country and is also setting up 5 MMTPA LNG terminal.
Keeping in mind the requirement of growth and consolidation as well as opportunities
arising out of New Exploration Licensing Policy (NELP) of Government of India, the
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company has moved into upstream of gas value chain i.e. Exploration & Production and
currently has stakes in 31 E&P blocks including 2 blocks overseas (in Myanmar).
GAIL is a pioneer in City Gas Distribution (CGD) business in India, with Indraprastha
Gas Limited (IGL) in Delhi and Mahanagar Gas Limited (MGL) in Mumbai being its
biggest success stories. Besides IGL and MGL, GAIL has set up several JVs for CGD to
supply gas to households, transport sector & commercial consumers in various cities
including Hyderabad, Agartala, Kanpur, Indore, Vadodara, Lucknow, Agra and Pune. In
2008, GAIL incorporated a wholly owned subsidiary, GAIL Gas Ltd (GGL) to
exclusively focus on city gas distribution business. GGL has been authorized for
implementation of CGD projects in four cities namely Kota, Dewas, Sonepat & Meerut in
the 1st round of bidding by Petroleum & Natural Gas Regulatory Board (PNGRB).
Leveraging on its pipeline network, GAIL has built a strong Optic Fibre Cable (OFC)
network of approximately 13,000 km for its own internal use and leasing of bandwidth as
a carriers' carrier.
As a part of its initiative towards reducing carbon footprint and creating a path of
sustainable growth, GAIL is building a portfolio of renewable businesses. The company
has successfully commissioned wind energy power projects of 118 MW across states of
Gujarat, Tamil Nadu and Karnataka.
Global PresenceAs a strategy of going global and further expanding global footprint, GAIL has formed a
wholly-owned subsidiary company, GAIL Global (Singapore) Pte Ltd. in Singapore for
pursuing overseas business opportunities including LNG & petrochemical trading. GAIL
has also established a wholly owned subsidiary, GAIL Global (USA) Inc. in Texas, USA.
The US subsidiary has acquired 20% working interest in an unincorporated joint venture
with Carrizo Oil & Gas Inc in the Eagle Ford shale acreage in the state of Texas. In
addition to having two wholly owned subsidiaries in Singapore & USA, GAIL has a
representative office in Cairo, Egypt to pursue business opportunities in Africa and
Middle East.
GAIL is also an equity partner in two retail gas companies in Egypt, namely Fayum Gas
Company (FGC) and National Gas Company (Natgas). Besides, GAIL is an equity
partner in a retail gas company involved in city gas and CNG business in China – China
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Gas Holdings Limited (China Gas). Further, GAIL and China Gas have formed an
equally owned joint venture company – GAIL China Gas Global Energy Holdings
Limited for pursuing gas sector opportunities primarily in China.
GAIL is a part of consortium in two offshore E&P blocks in Myanmar and also holds
participating interest in the joint venture company – South East Asia Gas Pipeline
Company Limited incorporated for transportation of gas to be produced from two blocks
in Myanmar to China.
Consistent track recordGAIL has been a leading public enterprise with a consistently excellent financial track
record. The Turnover and PAT have shown remarkable accomplishment with CAGR of
16% and 12% respectively in the last decade.
GAIL has recently developed corporate growth strategy for the period 2011-20 and the
same has been approved by the Board of Directors. GAIL aspires to become an integrated
hydrocarbon major with significant upstream and downstream interests by 2020.
Mission, Vision and ValuesMissionTo accelerate and optimize the effective and economic use of Natural Gas and its
fractions for the benefit of the national economy.
VisionBe the leading company in Natural Gas and Beyond, with Global Focus, Committed to
Customer Care, Value Creation for all Stakeholders and Environmental Responsibility.
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GAIL MANAGEMENT
Shri B. C. Tripathi
Shri Prabhat Singh
Director (Marketing)
Shri S. Venkatrama
nDirector (Business
Development)
Shri P.K. Jain
Director (Finance)
Shri M. RavindranDirector
(HR)
Dr. Ashutosh Karnatak Director
(Projects)
Shri Rajive Kumar Shri P.K. Singh
Smt. Shyamala Gopinath Dr. A. K. Khandelwal
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Shri Rajesh Ranjan Shri N. K. Nagpal
Joint Ventures
GAIL has formed Subsidiaries and Joint Venture companies for City Gas Distribution
and Petrochemicals. GAIL is one of the pioneers to introduce City Gas Projects in
India for gas supplies to households, commercial users and for the transport sector by
forming Subsidiaries/ Joint Venture Companies.
Aavantika Gas Limited (AGL)
Bhagyanagar Gas Limited (BGL)
Central U.P. Gas Limited (CUGL)
Green Gas Limited (GGL)
Indraprastha Gas Limited (IGL)
Mahanagar Gas Limited (MGL)
Maharashtra Natural Gas Limited (MNGL)
ONGC Petro-additions Limited (OPaL)
Petronet LNG Limited (PLL)
Ratnagiri Gas and Power Private Limited (RGPPL)
Tripura Natural Gas Company Limited (TNGCL)
GAIL China Gas Global Energy Holdings Limited
Subsidiaries
GAIL has formed Subsidiaries and Joint Venture companies for City Gas Distribution
and Petrochemicals. GAIL is one of the pioneers to introduce City Gas Projects in
India for gas supplies to households, commercial users and for the transport sector by
forming Subsidiaries/ Joint Venture Companies.
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Brahmaputra Cracker and Polymer Limited (BCPL)
GAIL Gas Limited
GAIL Global (Singapore) Pte Limited
GAIL GLOBAL (USA) INC., (GGUI)MILESTONES
1984 GAIL (India) Ltd was formed
1987 HVJ (Hazira – Vijaipur – Jagdishpur) Natural Gas pipeline
commissioned
1989 First Year of profit registered
1990 LPG Plant Phase – I at Vijaipur commissioned
1992 Gas Marketing functions transferred to GAIL
1993 Maiden dividend of Rs. 20 Crores paid to its shareholders
1994 First JV Mahanagar Gas Limited formed with British Gas
incorporated to implement Mumbai City Gas Distribution project
1995 Propane recovery plants at Vijaipur commissioned
1996 GAIL listed in NSE, BSE and DSE
1997 Government of India granted Navratna status to GAIL
1998 Indraprastha Gas Limited (IGL) incorporated for supply of gas to
household sector, transport sector & commercial consumers in
Delhi.
1999 LPG plants at Usar and Lakwa commissioned
1999 Uttar Pradesh Petrochemical Complex (UPPC) at Pata
commissioned with a design capacity of 3 lacs TPA of Ethylene to
produce 2. 60 lacs TPA of HDPE & LLDPE.
2000 LPG plant at Pata with a design capacity of 2.58 lacs TPA of LPG
commissioned
2000 Participated in under NELP- I and 2 blocks awarded
2001 Jamnagar-Loni LPG Pipeline Project, world’s longest and India's
first Cross-Country LPG 1269 km long pipeline commissioned
2001 LPG plant at Gandhar commissioned
2002 GAIL picks up 12% equity stake in GSEGs 156MW power project
in Gujarat
2003 GAIL has an initial success in the form of significant gas find in the
block A-1 in Myanmar and discovery of Oil and Gas in the Cambay
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Block.
2003 Bhagyanagar Gas Limited, a joint venture of GAIL and HPCL,
incorporated in August 2003, in the field of distribution and
marketing of Auto LPG, CNG for vehicles and retailing of natural
gas in cities of Andhra Pradesh.
2003 Vizag- Secunderabad LPG pipeline, the 580 km pipeline with a
maximum throughput of 1.16 MMPTPA completed
2003 GAIL successfully secures participation in 2 retail gas companies in
Egypt, Fayum Gas Company and Shell CNG.
2004 Dahej - Vijaipur natural gas pipeline commissioned
2004 A wholly-owned subsidiary company GAIL Global (Singapore) Pte
Ltd formed in Singapore
2004 Platts declares GAIL as the first among Global Gas Utilities based on
Return on Invested Capital (ROIC) in its worldwide survey of Top
250 Energy Companies in 2004.
2004 Tripura Natural Gas Co. Ltd., a Joint Venture for city gas project in
Tripura and UP Central Gas Ltd., a Joint Venture for city gas project
with BPCL in Kanpur, incorporated
2004 GAIL acquired 15% equity stake in NatGas, Egypt
2005 Inauguration of the National Gas Management Centre (NGMC) of
GAIL at NOIDA
2006 GAIL brings India’s first spot LNG cargo at Dahej
2006 GAIL consortium wins 3 CBM blocks in III round of bidding
2007 MoP&NG authorization for 5 new major pipelines received
2007 Brahmaputra Cracker and Polymer Limited, a Joint Venture Company
led by GAIL, formed for implementing Assam Gas Cracker Project
2007 GAIL forms a Joint Venture Company (JVC) with China Gas Global
Energy Holdings Limited.
2007 Expansion of Petrochemical Plant at Pata for increasing capacity from
310,000 TPA LLDPE/HDPE to 410,000 TPA completed
2008 Dahej - Panvel- Dabhol pipeline commissioned
2008 GAIL Gas Limited incorporated for CGD
2008 GAIL Gas limited wins the rights for rolling out city gas distribution
projects in Meerut, Sonepat, Dewas and Kota.
2009 GAIL gets SCOPE Meritorious Award for Corporate Governance for
the year 2007-08.
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2010 Representative Office in Egypt opened
2010 GAIL ranked no.1 company among gas utilities in Asia in the Platts
Global Ranking.
2010 GAIL conferred “MoU Excellence Award” for the year 2008-09 by
Prime Minister of India
2010 GAIL ranked no.1 company among gas utilities in Asia in the Platts
Global Ranking
2010 Petroleum Federation of India (PETROFED) Awards 2010 for Oil &
gas Marketing – Company of the year
2011 AIMA Managing India Awards 2011 for Outstanding PSU of the year
2011 GAIL’s growth strategy for the period 2011-20 approved by the
Board
2011 GAIL started its journey towards “Sustainability Reporting”
2011 GAIL acquired a 20% stake in Houston-based Carrizo Oil and Gas’s
Eagle Ford shale acreage, first instance of a PSU acquiring shale
assets in USA
2011 A wholly-owned subsidiary company GAIL Global (USA) Inc.
formed in Houston, USA and an office was opened
2011 Office of GAIL Global (Singapore) Pte Ltd opened in Singapore
2011 GAIL won rights to lay a 1550-km, $1bn natural gas pipeline from
Surat in Gujarat to Paradip in Orissa, connecting west to east coast
2012 GAIL conferred MoU Excellence Award for the year 2009-10 for
Best Performing CPSE in the Petroleum Sector consecutively for
second year
2012 GAIL has been ranked World’s No. 1 in Downstream Operations in
Platts Global Energy Awards
2012 GAIL signed a 20-year agreement with Sabine Pass Liquefaction
LLC, a unit of Cheniere Energy Partners, for supply of 3.5
MMPTA/year of LNG
2012 GAIL published its first sustainability report
2012 GAIL become only company from Oil and Gas sector to be included
in BSE Greenex, India's first energy efficient index
2012 GAIL’s 2200 km Dahej-Vijaipur-Dadri-Bawana-Nangal-Bhatinda
cross-country pipeline inaugurated by Prime Minister
2012 GSPA signed between GAIL and TurkrnenGaz for Turkmenistan-
Afghanistan-Pakistan-India (TAPI) Gas Pipeline Project
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AWARDS
GAIL’s achievements have been constantly recognized by the industry and following is
the list of some awards recently conferred upon GAIL:
1. Platts Global Energy Award, 2011 for ‘World’s No. 1 Company in Downstream
Operations’
2. Prime Ministers’ Excellence Award for the year 2009-10 for Best Performing
CPSE in the Petroleum Sector consecutively for second year
3. 11th ICSI National Award for Excellence in Corporate Governance, 2011
4. Corporate Governance Award 2012 by Indian Chamber of Commerce
5. Commendation Certificate from SCOPE for Corporate Governance in 2010-11
6. Commendation Certificate from PetroFed for being leading transporter of Oil &
Gas in 2011
7. AIMA Managing India Awards 2011 for Outstanding PSU of the Year.
8. Kaizen Warrior Award for Most Efficient Navratna PSU, 2011
9. No.1 gas utility company in Asia and No.2 gas utility company globally,
‘PLATTS Top 250’, 2010.
10. Petroleum Federation of India (PETROFED) Awards 2010 for Oil & Gas
Marketing Company of the Year.
11. ICSI National Award for Excellence in Corporate Governance, 2010
12. Prime Minister’s “MoU Excellence Award” for the year 2008-09
13. Petroleum Federation of India (PETROFED) Awards 2008 for Oil & Gas
Marketing Company of the Year.
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Types of ownership pattern
The most common ways to organize a business:
Sole Proprietorship
Partnership
Limited partnership
Limited Liability Company (LLC)
Corporation (for-profit)
Nonprofit Corporation (not-for-profit)
Cooperative.
Sole Proprietorships and Partnerships
For many new businesses, the best initial ownership structure is either a sole
proprietorship or -- if more than one owner is involved -- a partnership.
Sole Proprietorships
A sole proprietorship is a one-person business that is not registered with the state like
a limited liability company (LLC) or corporation. You don't have to do anything
special or file any papers to set up a sole proprietorship -- you create one just by going
into business for yourself.
Legally, a sole proprietorship is inseparable from its owner -- the business and the
owner are one and the same. This means the owner of the business reports business
income and losses on his or her personal tax return and is personally liable for any
business-related obligations, such as debts or court judgments.
Partnerships
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Similarly, a partnership is simply a business owned by two or more people that
haven’t filed papers to become a corporation or a limited liability company (LLC).
You don't have to file any paperwork to form a partnership -- the arrangement begins
as soon as you start a business with another person. As in a sole proprietorship, the
partnership's owners pay taxes on their shares of the business income on their
personal tax returns and they are each personally liable for the entire amount of any
business debts and claims.
Sole proprietorships and partnerships make sense in a business where personal
liability isn't a big worry -- for example, a small service business in which you are
unlikely to be sued and for which you won't be borrowing much money for inventory
or other costs.
Limited Partnerships
Limited partnerships are costly and complicated to set up and run, and are not
recommended for the average small business owner. Limited partnerships are usually
created by one person or company (the "general partner"), who will solicit
investments from others (the "limited partners").
The general partner controls the limited partnership's day-to-day operations and is
personally liable for business debts (unless the general partner is a corporation or an
LLC). Limited partners have minimal control over daily business decisions or
operations and, in return, they are not personally liable for business debts or claims.
Consult a limited partnership expert if you're interested in creating this type of
business.
Corporations and LLCs
Forming and operating an LLC or a corporation is a bit more complicated and costly,
but well worth the trouble for some small businesses. The main benefit of an LLC or a
corporation is that these structures limit the owners' personal liability for business
debts and court judgments against the business.
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What sets the corporation apart from all other types of businesses is that a corporation
is an independent legal and tax entity, separate from the people who own, control and
manage it. Because of this separate status, the owners of a corporation don't use their
personal tax returns to pay tax on corporate profits -- the corporation itself pays these
taxes. Owners pay personal income tax only on money they draw from the
corporation in the form of salaries, bonuses, and the like.
Like corporations, LLCs provide limited personal liability for business debts and
claims. But when it comes to taxes, LLCs are more like partnerships: the owners of an
LLC pay taxes on their shares of the business income on their personal tax returns.
Corporations and LLCs make sense for business owners who either 1) run a risk of
being sued by customers or of piling up a lot of business debts, or 2) have substantial
personal assets they want to protect from business creditors.
Nonprofit Corporations
A nonprofit corporation is a corporation formed to carry out a charitable, educational,
religious, literary, or scientific purpose. A nonprofit can raise much-needed funds by
soliciting public and private grant money and donations from individuals and
companies.
The federal and state governments do not generally tax nonprofit corporations on
money they take in that is related to their nonprofit purpose, because of the benefits
they contribute to society.
Cooperatives
Some people dream of forming a business of true equals -- an organization owned and operated democratically by its members. These grassroots business organizers often refer to their businesses as a "group," "collective," or "co-op" -- but these are often informal rather than legal labels. For example, a consumer co-op could be formed to run a food store, a bookstore, or any other retail business. Or a workers' co-op could be created to manufacture and sell arts and crafts. Most states do have specific laws dealing with the set-up of cooperatives, and in some states you can file paperwork with the secretary of state's office to have your cooperative formally recognized by the state. Check with your secretary of state's office for more information.
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PRODUCTION LAYOUT
In manufacturing engineering, a product layout refers to a production system where
the work stations and equipment are located along the line of production, as
with assembly lines.
Usually, work units are moved along a line (not necessarily a geometric line, but a set
of interconnected work stations) by a conveyor. Work is done in small amounts at
each of the work stations on the line. To use the product layout, the total work to be
performed must be dividable into small tasks that can be assigned to each of the
workstations.
Because the work stations each do small amounts of work, the stations utilize specific
techniques and equipment tailored to the individual job they are assigned. This can
lead to a higher rate of production.
There are some steps which have to follow:
1. To Powder Substances - Place the substance in the mortar and strike it gently with
direct perpendicular blows of the pestle, until it separates into several pieces, then
remove all but a small portion, which bruise gently at first, and rub the pestle
round and round the mortar, observing that the circles described by the pestle
should gradually decrease in diameter, and then increase again, because by this
means every part of the powder is subjected to the process of pulverization.
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2. Some substances require to be prepared in a particular manner before they can be
powdered, or to be assisted by adding some other body. For example, camphor
powders more easily when a few drops of spirits of wine are added to it; mace,
nutmegs, and such oily aromatic substances are better for the addition of a little
white sugar; resins and gum resins should be powdered in a cold place, and if they
are intended to be dissolved, a little fine well washed white sand mixed with them
assists the process of powdering.
3. Be careful not to pound too hard in a glass, porcelain, or Wedge-wood's-ware
mortar; they are intended only for substances that pulverize easily, and for the
purpose of mixing or incorporating medicines. Never use acids in a marble mortar,
and be sure that you do not powder galls or any other astringent substances in an
iron mortar.
4. Sifting is frequently required for powdered substances, and this is usually done by
employing a fine sieve, or tying the powder up in a piece of muslin and striking it
against the left hand over a piece of paper.
5. Filtering is frequently required for the purpose of obtaining clear fluids, such as
infusions, eye-washes, and other medicines; and it is therefore proper that you
should know how to perform the simple operation. We must first of all make the
filter-paper; this is done by taking a square sheet of white blotting paper, and
doubling it over, so as to form an angular cup. We next procure a piece of wire,
and twist it into a form to place the funnel in, to prevent it passing too far into the
neck of the bottle. Open out the filter-paper very carefully, and having placed it in
the funnel, moisten it with a little water Then place the wire in the space between
the funnel and the bottle, and pour the liquid gently down the side of the paper,
otherwise the fluid is apt to burst the paper.
6. Maceration is another process that is frequently required to be performed in
making up medicines, and consists simply in immersing the medicines in cold
water or spirits for a certain time.
7. Digestion resembles maceration, except that the process is assisted by a gentle
heat. The ingredients are placed in a flask, such as salad-oil is sold in, which
should be fitted with a plug of tow or wood, and have a piece of wire twisted
round the neck. The flask is held by means of the wire over the flame of a spirit
lamp, or else placed in some sand warmed in an old iron saucepan over the fire,
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care being taken not to place more of the flask below the sand than the portion
occupied by the ingredients.
8. Infusion is one of the most frequent operations required in making up medicines,
its object being to extract the aromatic and volatile principles of substances that
would be lost by decoction or digestion; and to extract the soluble from the
insoluble parts of bodies. Infusions may be made with cold water, in which case
they are weaker, but more pleasant. The general method employed consists in
slicing, bruising, or powdering the ingredients first, then placing them in a
common jug, and pouring boiling water over them; cover the jug with a cloth
folded six or eight times, but if there is a lid to the jug so much the better; when
the infusion has stood the time directed, hold a piece of very coarse linen over the
spout, and pour the liquid through it into another jug.
9. Decoction, or boiling, is employed to extract the mucilaginous or gummy parts of
substances, their bitter, astringent, or other qualities, and is nothing more than
boiling the ingredients in a saucepan with the lid slightly raised. Be sure never to
use an iron saucepan for astringent decoc-tions, such as oak bark, galls, etc, as
they will turn the saucepan black and spoil the decoction. The enamelled
saucepans are very useful for decoctions, bat an excellent plan is to put the
ingredients into a jar and boil the jar, thus preparing it by a water bath, as it is
technically termed.
10. Extracts are made by evaporating the liquors obtained by infusion or decoction,
but these can be bought much cheaper and better of chemists and druggists, and so
can tinctures, confections, cerates, plasters, and syrups; but as everyone is not
always in the neighbourhood of druggists, we shall give recipes for those most
generally useful, and the method of making them.
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ORGANIZATIONAL POLICIES
As required under revised Clause 49 of the Listing Agreement the following
code of conduct has been approved by the Board of Directors and is applicable
to the Directors and Senior Management of the Company.
ETHICAL CONDUCT
All directors and senior management employees shall deal on behalf of the
Company with professionalism, honesty, integrity as well as high moral and
ethical standards. Such conduct shall be fair and transparent and be perceived
to be as such by third parties.
CONFLICT OF INTEREST
Any director or senior management employee of the Company shall not engage
in any business, relationship or activity, which might detrimentally conflict
with the interest of the Company.
TRANSPERANCY
All directors and senior management employees of the Company shall ensure
that their actions in the conduct of business are totally transparent except where
the needs of business security dictate otherwise. Such transparency shall be
brought about through appropriate policies, systems and processes.
LEGAL COMPLIANCE
All directors and senior management employees of the Company shall at all
times ensure compliance with all the relevant laws and regulations affecting
operations of the Company. They shall abreast of the affairs of the Company
and be kept informed of the Company's compliance with relevant laws, rules
and regulations. In the event that the implication of law is not clear, the course
of action chosen must be supported by eminent legal counsel whose opinion
should be documented.
RIGHTFUL USE OF COMPANY’S ASSETS
All the assets of the Company both tangible and intangible shall be employed
for the purpose of conducting the business for which they are duly authorized.
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None of the assets of the Company should be misused or diverted for personal
purpose.
COST CONSCIOUSNESS
All the directors and senior management employees of the Company should
strive for optimum utilization of available resources. They shall exercise care
to ensure that costs are reasonable and there is no wastage. It shall be their duty
to avoid ostentation in Company expenditure.
CONFIDENTIAL INFORMATION
All directors and senior management employees shall ensure that any
confidential information gained in their official capacity is not utilized for
personal profit or for the advantage of any other person. They shall not provide
any information either formally or informally to the press or to any other
publicity media unless specifically authorized to do so. They shall adhere to the
provisions of SEBI (Prohibition of Insider Trading) Regulations, 1992.
RELATIONSHIP WITH SUPPLIERS AND CUSTOMERS
The Directors and senior management employees of the Company during the
course of interaction with suppliers and customers, shall neither receive nor
offer or make, directly and indirectly, any illegal payments, remuneration, gifts,
donations or comparable benefits which are intended or perceived to obtain
business or uncompetitive favours for the conduct of its business. However this
is not intended to include gifts of customary nature.
INTERACTION WITH MEDIA
The Directors and senior management employees other than the designated
spokespersons shall not engage with any member of press and media in matters
concerning the Company. In such cases, they should direct the request to the
designated spokespersons.
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CHAPTER-2
INDUSTRIAL ANALYSIS
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INDUSTRY PROFILE
The petroleum industry includes the global processes of exploration, extraction,
refining, transporting (often by oil tankers and pipelines), and marketing
petroleum products. The largest volume products of the industry are fuel
oiland gasoline (petrol). Petroleum (oil) is also the raw material for many chemical
products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The
industry is usually divided into three major components: upstream, midstream and
downstream. Midstream operations are usually included in the downstream category.
Petroleum is vital to many industries, and is of importance to the maintenance of
industrial civilization in its current configuration, and thus is a critical concern for
many nations. Oil accounts for a large percentage of the world’s energy consumption,
ranging from a low of 32% for Europe and Asia, to a high of 53% for the Middle East.
Other geographic regions’ consumption patterns are as follows: South and Central
America (44%), Africa(41%), and North America (40%). The world consumes 30
billion barrels (4.8 km³) of oil per year, with developed nations being the largest
consumers. The United States consumed 25% of the oil produced in 2007.[1] The
production, distribution, refining, and retailing of petroleum taken as a whole
represents the world's largest industry in terms of dollar value.
Governments such as the United States government provide a heavy public subsidy to
petroleum companies, with major tax breaks at virtually every stage of oil exploration
and extraction, including the costs of oil field leases and drilling equipment.
25
CURRENT ISSUES:
January 29, 2014
GAIL’s Turnover (net of Excise) for 3rd Quarter of FY 2013-14 rises by 28 % Profit
Before Tax up 32 %; Net Profit up 31 % to Rs 1,679 crore for 3rd Quarter GAIL’s
nine months Turnover (net of Excise) up by 22 %
January 23, 2014
34th PSPB Inter-Unit Golf Championship, hosted by GAIL, gets under way Director
(Projects) inaugurates meet Top amateur golfers participating in tournament
March 24, 2014
GAIL executes MoU with Chubu Electric of Japan for joint LNG procurement
March 01, 2014
Dr. Ashutosh Karnatak takes charge as Director (Projects) of GAIL
April 07, 2014
India’s Top Tennis Players vying for 33rd PSPB Inter-Unit Tennis Championship
April 05, 2014
Clarifications regarding article on arbitrations in PSUs published on 30.03.2014
April 03, 2014
GAIL’s iconic new office tower inaugurated by Secretary, MoPNG
26
27
KEY COMPETITORS
Public-sector undertakings
The ministry has administrative control over various public-sector undertakings of the
Government of India.
Biecco Lawrie Limited Bongaigaon Refinery and Petrochemicals Limited Chennai Petroleum Corporation Limited Cochin Refineries Ltd. Gas Authority of India Limited Hindustan Petroleum Corporation Limited[2]
Indian Oil Corporation Limited IBP (merged with Indian Oil and became a subsidiary) Numaligarh Refinery Limited Oil India Limited Oil and Natural Gas Corporation Limited Mangalore Refinery and Petrochemicals Limited
28
PEST
ANALYSIS
The Ford Motor Company (NYSE: F) is an American multinational corporation based
in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry
Ford and incorporated on June 16, 1903. In addition to the Ford, Lincoln, and
Mercury brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in
the UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata
Motors of India in March 2008. In 2010 Ford sold Volvo to Geely Automobile.[5]
Ford will discontinue the Mercury brand at the end of 2010. Ford introduced methods
for large-scale manufacturing of cars and large-scale management of an industrial
workforce using elaborately engineered manufacturing sequences typified by moving
assembly lines. Henry Ford's methods came to be known around the world as Fordism
by 1914.
Ford is currently the second largest automaker in the U.S. and the fourth-largest in the
world based on number of vehicles sold annually, directly behind Volkswagen Group.
[6] In 2007, Ford fell from second to third in US annual vehicle sales for the first time
in 56 years, behind only General Motors and Toyota. However, Ford occasionally
outsells Toyota in shorter periods (most recently, during the summer months of 2009).
By the end of 2009, Ford was the third largest automaker in Europe (behind
Volkswagen and PSA Peugeot Citroën).[7] Ford is the eighth-ranked overall
American-based company in the 2010 Fortune 500 list, based on global revenues in
2009 of $118.3 billion.[8] In 2008, Ford produced 5.532 million automobiles[9] and
29
employed about 213,000 employees at around 90 plants and facilities worldwide.
During the automotive crisis, Ford's worldwide unit volume dropped to 4.817 million
in 2009. Despite the adverse conditions, Ford ended 2009 with a net profit of $2.7
billion.[10] Starting in 2007, Ford received more initial quality survey awards from J.
D. Power and Associates than any other automaker. Five of Ford's vehicles ranked at
the top of their categories[11] and fourteen vehicles ranked in the top three.[12]The
Ford Motor Company (NYSE: F) is an American multinational corporation based in
Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford
and incorporated on June 16, 1903. In addition to the Ford, Lincoln, and Mercury
brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK.
Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of
India in March 2008. In 2010 Ford sold Volvo to Geely Automobile.[5] Ford will
discontinue the Mercury brand at the end of 2010. Ford introduced methods for large-
scale manufacturing of cars and large-scale management of an industrial workforce
using elaborately engineered manufacturing sequences typified by moving assembly
lines. Henry Ford's methods came to be known around the world as Fordism by 1914.
Ford is currently the second largest automaker in the U.S. and the fourth-largest in the
world based on number of vehicles sold annually, directly behind Volkswagen Group.
[6] In 2007, Ford fell from second to third in US annual vehicle sales for the first time
in 56 years, behind only General Motors and Toyota. However, Ford occasionally
outsells Toyota in shorter periods (most recently, during the summer months of 2009).
By the end of 2009, Ford was the third largest automaker in Europe (behind
Volkswagen and PSA Peugeot Citroën).[7] Ford is the eighth-ranked overall
American-based company in the 2010 Fortune 500 list, based on global revenues in
2009 of $118.3 billion.[8] In 2008, Ford produced 5.532 million automobiles[9] and
employed about 213,000 employees at around 90 plants and facilities worldwide.
During the automotive crisis, Ford's worldwide unit volume dropped to 4.817 million
in 2009. Despite the adverse conditions, Ford ended 2009 with a net profit of $2.7
billion.[10] Starting in 2007, Ford received more initial quality survey awards from J.
D. Power and Associates than any other automaker. Five of Ford's vehicles ranked at
the top of their categories[11] and fourteen vehicles ranked in the top three.
Political
* The company’s move must be in accordance to the governmental policy
* The acts of the company must n according to the tax policies on every government
30
Economic
* The company can reduce the cost of structures of its products
* The increase in the market share can also be applicable to the company
* It can also maintain its profitability
Social
* Cut on the personnel and on the jobs
* The impact on many lives and to the strong partnerships in the suppliers
* The minimal number of staffs can be a hindrance
Technological
* The upgraded technology on the product of Ford for strengthening the growth
segments and to produce profitability
* The company’s Chicago Assembly Plant that can be use for the production of
vehicles
* Creation of new small cars and crossover cars signifies technological advancement
* Fuel saving devices can also be introduced
31
PORTERS 5 FORCES MODEL
Porter five forces analysis is a framework for industry analysis and business strategy
development. It draws upon industrial organization (IO) economics to derive five
forces that determine the competitive intensity and therefore attractiveness of
a market. Attractiveness in this context refers to the overall industry profitability. An
"unattractive" industry is one in which the combination of these five forces acts to
drive down overall profitability. A very unattractive industry would be one
approaching "pure competition", in which available profits for all firms are driven
to normal profit. This analysis is associated with its principal innovator Michael E.
Porter presently at Harvard University as of 2014.
Three of Porter's five forces refer to competition from external sources. The
remainder are internal threats.
Porter referred to these forces as the micro environment, to contrast it with the more
general term macro environment. They consist of those forces close to a company that
affect its ability to serve its customers and make a profit. A change in any of the
forces normally requires a business unit to re-assess the marketplace given the overall
change in industry information. The overall industry attractiveness does not imply that
32
every firm in the industry will return the same profitability. Firms are able to apply
their core competencies, business model or network to achieve a profit above the
industry average. A clear example of this is the airline industry. As an industry,
profitability is low and yet individual companies, by applying unique business
models, have been able to make a return in excess of the industry average.
Porter's five forces include - three forces from 'horizontal' competition: the threat of
substitute products or services, the threat of established rivals, and the threat of new
entrants; and two forces from 'vertical' competition: the bargaining power of suppliers
and the bargaining power of customers.
This five forces analysis, is just one part of the complete Porter strategic models. The
other elements are the value chain and the generic strategies.[citation needed]
Porter developed his Five Forces analysis in reaction to the then-popular SWOT
analysis, which he found unrigorous and ad hoc.[1] Porter's five forces is based on
the Structure-Conduct-Performance paradigm in industrial organizational economics.
It has been applied to a diverse range of problems, from helping businesses become
more profitable to helping governments stabilize industries.
33
CHAPTER-3
MARKETING STRATEGIES
34
MARKETING MIX
The term "marketing mix" was first used in 1953 when Neil Borden, in his American
Marketing Association presidential address, took the recipe idea one step further and
coined the term "marketing-mix". A prominent marketer, E. Jerome McCarthy,
proposed a 4 P classification in 1960, which has seen wide use. The four Ps concept is
explained in most marketing textbooks and classes.
Four P's
Elements of the marketing mix are often referred to as 'the four Ps':
Product - A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units. Intangible
products are service based like the tourism industry & the hotel industry or
codes-based products like cellphone load and credits. Typical examples of a
mass produced tangible object are the motor car and the disposable razor. A
less obvious but ubiquitous mass produced service is a computer operating
system. Packaging also needs to be taken into consideration. Every product is
subject to a life-cycle including a growth phase followed by an eventual period
of decline as the product approaches market saturation. To retain its
competitiveness in the market, product differentiation is required and is one of
the strategy to differentiate from its competitors.
Price – The price is the amount a customer pays for the product. It is
determined by a number of factors including market share, competition,
material costs, product identity and the customer's perceived value of the
product. The business may increase or decrease the price of product if other
stores have the same product.
Place – Place represents the location where a product can be purchased. It is
often referred to as the distribution channel. It can include any physical store
as well as virtual stores on the Internet. Place is not exactly a physical store
where it is available Place is nothing but how the product takes place or create
image in the mind of customers. It depends upon the perception of customers.
Promotion represents all of the communications that a marketer may use in
the marketplace. Promotion has four distinct elements: advertising, public
35
relations, personal selling and sales promotion. A certain amount of crossover
occurs when promotion uses the four principal elements together, which is
common in film promotion. Advertising covers any communication that is
paid for, from cinema commercials, radio and Internet adverts through print
media and billboards. Public relations are where the communication is not
directly paid for and includes press releases, sponsorship deals, exhibitions,
conferences, seminars or trade fairs and events. Word of mouth is any
apparently informal communication about the product by ordinary individuals,
satisfied customers or people specifically engaged to create word of mouth
momentum. Sales staff often plays an important role in word of mouth and
Public Relations (see Product above).
Extended Marketing Mix (3 Ps)
Now a days three more Ps have been added to the marketing mix namely People,
Process and Physical Evidence. This marketing mix is known as Extended Marketing
Mix.
People: All people involved with consumption of a service are important. For
example workers, management, consumers etc
Process: Procedure, mechanism and flow of activities by which services are
used.
Physical Evidence: The environment in which the service or product is
delivered, tangible are the one which helps to communicate and intangible is
the knowledge of the people around us.
36
STP ANALYSIS
Market segmentation
It is the act of dividing a market into distinct groups of buyers who require
separate products.
Its market research division has segmented consumers on the basis of
following:
1. Geographic variables
2. Demographic variables
3. User status and lifestyle
Market targeting
Act of developing measures of segment attractiveness.
Involves evaluating various market segments.
It targets different segments of population of all categories of age groups.
Also targets the population outside India.
Market positioning
Market positioning is the manipulation of a brand or family of brands to create a
positive perception in the eyes of the public. If a product is well positioned, it will
have strong sales, and it may become the go-to brand for people who need that
particular product. Poor positioning, on the other hand, can lead to bad sales and a
dubious reputation. A number of things are involved in market positioning, with entire
firms specializing in this activity and working with clients to position their products
effectively.
When a product is released, the company needs to think beyond what the product is
for when it comes to positioning. It also thinks about the kinds of people it wants to
buy the product. For example, a luxury car manufacturer might be less interested in
promoting reliability, and more interested in promoting drivability, appealing to
people who are looking for high-end cars which are enjoyable and exciting to drive.
Conversely, a company making mouthwash might want to go for the bottom end of
the market with an appealing low price, accompanied by claims asking consumers to
“compare to the leading brand” so that they can see that the product contains the same
active ingredients as a famous brand, at a much lower price. Market positioning is a
tricky process. Companies need to see how consumers perceive their product, and
37
how differences in presentation can impact perception. Periodically, companies may
reposition, trying to adjust their perception among the public. For example, a
company might redesign product packaging, start a new ad campaign, or engage in
similar activities to capture a new share of the market.
Companies also engage in depositioning, in which they attempt to alter the perception
of other brands. While outright attacks on rival brands are frowned upon and may be
illegal unless they are framed very carefully, companies can use language like
“compared to the leading brand” or “we're not like those other brands.” A television
ad, for example, might contrast two paper towels: the brand being advertised, and a
“generic” with a package which looks suspiciously similar to a popular brand of paper
towels, but isn't quite identical.
Developing a market positioning strategy is an important part of theresearch and
development process. The marketing department may provide notes during product
development which are designed to enhance the product's position, and they also
determine the price, where the product should be sold, and how it should be
advertised. Every aspect of the product's presentation will be carefully calculated to
maximize its position, with the goal of market positioning being domination.
Marketing strategy adopted
Advertisement
1. Television
2. Radio
3. Internet
4. Newspaper/magazines
5. Hoardings
38
DISTRIIBUTION CHANNELS
The chain of businesses or intermediaries through which a good or service passes
until it reaches the end consumer. A distribution channel can include wholesalers,
retailers, distributors and even the internet. Channels are broken into direct and
indirect forms, with a "direct" channel allowing the consumer to buy the good from
the manufacturer and an "indirect" channel allowing the consumer to buy the good
from a wholesaler. Direct channels are considered "shorter" than "indirect" ones.
PRODUCTS
Natural Gas
Liquid Hydrocarbon
LPG Transmission
Petrochemicals City
Gas Distribution
E&P
GAILTEL
39
PROMOTIONAL STRATEGIES
UNIQUE SELLING PROPOSITION
• To best position your practice, you need to develop a powerful and compelling
unique selling proposition (USP).
• What is a USP? A unique selling proposition is a proposition that competitors
cannot make or have not made.
MARKETING PROCESS
Understand the Marketing Place, Needs, Wants & Demand
Designing a Customer Driven Strategies
Prepare a Marketing Plan
Building Customer Relationship
Capture value from customers in return
Designing a Customer Driven Marketing Strategy:
• Their main strategy that they still follow today is the diversification of
products they offer.
• According to customer’s demand they make their strategies by keeping
following points in mind;
• Which customer they will serve?
Which customer they will serve?
They serve their customers on the bases of income level, age through market
segmentation.
Their main segment which they has captured are combination of higher
incomes & dual career families.
How will they serve these customers?
40
They fulfill their customer’s demand through;
Value proposition
Positioning
Unique selling proposition (USP)
CAPTURE VALUE FROM CUSTOMER IN RETURN:
• Committed to providing uncompromising product quality offering customers
the highest value for money & giving service that is warm, friendly &
personal.
• They also follow social factors to maintain their image through corporate
social responsibility.
Designing a Customer Driven Marketing Strategy:
• Their main strategy that they still follow today is the diversification of
products they offer.
• According to customer’s demand they make their strategies by keeping
following points in mind;
41
CHAPTER-4
FINANCIAL ANALYSIS
42
SOURCES OF FINANCE
Share holders Fund
Shareholder funds is all the money belonging to common stock shareholders which
includes the balance of share capital, all profits retained and money classified as
reserves.
Loan Funds
A Loan Fund is a source of money from which loans are made for small business
development projects. A loan is made to one person or business at a time and, as
repayments are made, funds become available for new loans to other businesses.
Hence, the money revolves from one person or business to another.
Deferred Tax Liabilities
An APPLE on a company's balance sheet that is a result of temporary differences
between the company's APPLE accounting and tax carrying values, the anticipated
and enacted income tax rate, and estimated taxes payable for the current year. This
liability may or may not be realized during any given year, which makes the deferred
status appropriate.
Methods or Devices of Financial Analysis:
A Number of methods or devices are used to study the relationship between
different statements. The following methods of analysis are generally used:
i. Comparative statements
ii. Trend analysis
iii. Common –size statements
iv. Funds flow analysis
v. Cash flow analysis
vi. Ratio analysis
vii. Cost-volume-profit analysis
In this project the Comparative Statement and Ratio Analysis is used to study the
financial statement of Orissa State Co-operative Bank Ltd.
43
Comparative statements:
The comparative financial statements are statements of the financial position at
different periods of time. The elements of financial position are shown in a
comparative form so as to give an idea of financial position at two or more periods.
Any statement prepared in a comparative form will be covered in comparative
statements. From practical point of view generally, two financial statements
1. Balance Sheet 2. Income Statement
Comparative balance sheet
The comparative balance sheet analysis is the study of the trend of the same
items, group of items and computed items, group of items and computed items in two
or more balance sheets of the same business enterprise on different dates. The changes
in periodic balance sheet items reflect the conduct of a business. The changes can be
observed by comparison of the balance sheet at the beginning and at the end of a
period and these changes can help in forming an opinion about the progress of an
enterprise. The comparative balance sheet has two columns for the data of original
balance sheets. A third column is used to show this increase in figures. The fourth
column may be added for giving percentage of increases and decreases.
Guidelines for Interpretation of Comparative Balance Sheet:
While interpreting comparative balance sheet the interpreter is expected to study the
following aspects:
1. Current Financial Position and Liquidity Position
2. Long term Financial Position
3. Profitability of the Concern
1. For studying the Financial Position and short term Financial Position of a
concern, one sees the working capital in both the years. The excess of current
assets over current liabilities will give the figure of working capital. The
increase in working capital means improvement in the current financial
position of the business. An increase in current assets APPLE ompanied by the
increase in current liabilities of the same amount will not show any
improvement in short term financial position. One should study the increase or
decrease in current assets and current liabilities and this will enable him to
analyse the current financial position.
44
The second aspect which should be studied in current financial position
is the liquidity position of the concern. If liquid assets like cash in hand, cash
at bank, bills receivable, debtors, etc. show an increase in the second year over
the first year, this will improve the liquidity position of the concern. The
increase in inventory can be on APPLE ount of APPLE umulation of stocks
for want of customers, decrease in demand or inadequate sales promotion
efforts. An increase in inventory may increase working capital of the business
but it will not be good for business.
2. The long term financial position of the concern can be analysed by studying
the changes in fixed assets, long term liabilities and capital. The proper
financial policy of concern will be to finance fixed assets by the issue of either
long-term securities such as debentures, bonds, loans from financial
institutions or issue of fresh share capital. An increase in fixed assets should
be compared to the increase in long term loans and capital. If the increase in
fixed assets is more than the long term securities then parts of fixed assets
have not only been financed from long term sources. A wise policy will be to
finance fixed assets by raising long term funds.
3. The new aspects to be studied in a comparative balance sheet questions is the
profitability of the concern. The study of increase or decrease in retained
earnings, various resources and surpluses, etc. will enable the interpreter to see
whether the profitability has improved or not. An increase in the balance of
profit and loss APPLE ount and the other resources created from profits will
mean an increase in profitability to the concern. The decrease in such APPLE
ounts may mean issue dividend, issue of bonus share or deterioration in
profitability of the concern.
4. After studying various assets and liabilities an opinion should be formed about
the financial position of the concern. One cannot say if short term financial
position is good then long term financial position will also be good or vice
versa. A concluding word about the overall financial position must be given at
the end.
45
Comparative Income Statement:
The income statement gives the results of the operation of a business. The
comparative income statement gives an idea of the progress of a business over a
period of time. The changes in absolute data in money values and percentages can be
determined to analyse the profitability of the business. Like comparative balance sheet
income statement also has four columns. First two columns give figures of various
items for two years. Third and fourth columns are used to show increase or decrease
in figures in absolute amounts and percentages respectively.
Guidelines for Interpretation of Comparative Income Statement:
The analysis and interpretation of income statement will involve the following steps:
1. The increase or decrease in sales should be compared with the increase or
decrease in costs of goods sold. An increase in sales will not always mean an
increase in profit. The profitability will improve if increase in sales is more
than increase in costs of goods sold. The amount of gross profit should be
studied in the first step.
2. The second step of analysis should be the operational profits. The operating
expenses such as office and administrative expenses, selling and distribution
expenses should be deducted from gross profit to find out operating profits.
An increase in operating profit will result from the increase in sales position
and control of operating expenses. A decrease in operating profit may be due
to an increase in operating expenses or decrease in sales. The change in
individual expenses should also be studied. Some expenses may increase due
to the expansion of business activities while others may go up due to
managerial inefficiency.
3. The increase or decrease in net profit will give an idea about the overall
profitability of the concern. Non operating expenses such as interest paid,
losses from sales of assets, writing off deferred expenses, payment of tax, etc.
decrease the figure of operating profit. When all non-operating expenses are
deducted from operational profit, we get a figure of net profit. Some non
operating incomes may also be there which will increase net profit. An
increase in net profit will gave us an idea about the progress of the concern.
46
4. An opinion should be formed about profitability of the concern and it should
be given at the end. It should be mentioned whether the overall profitability of
the concern is good or not.
Focus of Financial Statement Analysis:
Financial statement analysis involves evaluating different aspects of a business
enterprise, which are of great importance to different users such as management,
investors, creditors, bankers, analyst, investment advisers, etc. generally, the
following analyses are made while making Financial Statement Analysis.
1. Liquidity or short term solvency analysis
2. Profitability analysis
3. Capital structure or gearing analysis
4. Market strength or investor analysis
5. Growth and stability analysis
Application of Financial Analysis:
Following are the application of financial analysis:
1. Assessing Corporate Excellence
2. Judging credit worthiness
3. Forecasting bankruptcy
4. Valuing equity shares
5. Predicting bonds ratings
6. Estimating market risk
Limitations of Financial Statement Analysis:
Financial analysis is a powerful mechanism of determining financial strengths and
weakness of a firm. But, the analysis is based on the information available in the
financial statements. Thus, the financial analysis suffers from serious inherent
limitations of financial statements. The financial analyst has also be careful about the
impact of price level changes, windows dressing of financial statements, changes in
the APPLE policies of a firm, APPLE concepts and conventions, and personal
judgment, etc. The readers are advised to relate the limitations of financial statements
as given in the previous chapter and also the limitations of ratios as a tool of financial
analysis as discussed in Ratio Analysis. Some of the important limitations of financial
analysis are, however, summed up as below:
47
i. It is only a study of interim reports.
ii. Financial analysis is based upon only monetary information and non-
monetary factors are ignored.
iii. It does not consider changes in price levels.
iv. As the financial statements are prepared on the basis of a going concern, it
does not give exact position. Thus APPLE concepts and conventions cause
a serious limitation to financial analysis.
v. Changes in APPLE procedure by a firm may often make financial analysis
misleading.
vi. Analysis is only a means and not an end in itself. The analyst has to make
interpretation and draw his own conclusions. Different people may
interpret the same analysis in different ways.
Overview of Ratio Analysis
Introduction:
Ratio analysis is one of the techniques used to analyse the financial statements. It
is one of the most powerful tools of financial analysis. It is the process of establishing
and interpreting various ratios (quantitative relationship between figures and group of
figures). Through ratio analysis financial statement can analyse more clearly and
decision made from such analysis.
Nature of Ratio Analysis:
Ratio analysis is a technique of analysis and interpretation of financial statements.
It is the process of establishing and interpreting various ratios for helping in making
certain decision. However, ratio analysis is not an end in itself. It is only a means of
better understanding of financial strength and weaknesses of affirm. Calculation of
mere ratios does not serve any purpose, unless several appropriate ratio are analysed
and interpreted. There are a number of ratios which can be calculated from the
information given in the financial statements, but the analyst select the appropriate
data and calculate only a few appropriate ratios from the same keeping in mind the
objective of analysis. The ratios may be used as a symptom like blood pressure, the
pulse rate or the body temperature and their interpretation depends upon the caliber
48
and competence of the analyst. The following are the four steps involved in the ratio
analysis:
i. Selection of relevant data from the financial statements depending upon the
objective of the analysis.
ii. Calculation of appropriate ratios from the above data.
iii. Comparison of the calculated ratios with the ratios of the same firm in the
past, or the ratios developed from projected financial statements or the ratio
of some other firms or the comparison with ratios of the industry to which the
firm belongs.
iv. Interpretation of the ratios.
Use and Significance of Ratio Analysis:
Helpful in decision making.
Helpful in financial forecasting and planning.
Helpful in communication.
Helpful in co-ordination.
Helpful in Control.
Helpful in efficiency appraisal.
Helpful in evaluation of financial position.
49
CHAPTER-5
KEY LEARNINGS OF THE
COMPANY
50
SWOT ANALYSIS
Strength
1.India's major oil and gas company 2.Operates largest Lube refiniery in India 3.Large product portfolio4.Owns and operates the largest Lube Refinery in India producing Lube Base Oils of international standards5.Produces over 300+ grades of Lubes, Specialities and Greases
Weakness
1.Legal issues 2.Employee management3.Human right issues, rehabilitation issues4.Environmental hazards from wastes
Opportunity
1.Increasing fuel/oil prices 2.Increasing natural gas market 3.More oil well discoveries 4.Expand export market
Threats1.Government regulations 2.High Competition from other players
51
Performance analyst
Here's a list of some of the things you maybe doing as part of a performance analysis:
Interviewing a sponsor
Reading the annual report
Chatting at lunch with a group of customer service representatives
Reading the organization's policy on customer service, focusing particularly on the
recognition and incentive aspects
Listening to audiotapes associates with customer service complaints
Leading a focus group with supervisors
Interviewing some randomly drawn representatives
Reviewing the call log
Reading an article in a professional journal on the subject of customer service
performance improvement
Chatting at the supermarket with somebody who is a customer, who wants to tell
you about her experience with customer service
Organizational Leadership
If leadership in organizations really isn’t an individual characteristic, then what is it,
and what does it do? It’s all well and good to argue that we’ve had it wrong all these
years about how organizations are best led; it’s even entertaining to see the self-
involved and self-congratulatory individual leader hauled over the coals for a change.
But when we refocus on the issue after absorbing these ideas, there they remain:
organizations. And the question remains, as well: how are they to be led?
To begin with, the concept of organizational leadership, as described here, is not
entirely new. For almost a century, various observers have glimpsed the self-
organizing characteristics of groups, and their natural tendency, more or less of their
own accord, to design and direct their own affairs. More than that, there have also
been suggestions in the literature that leadership and authority are to be viewed as
distinctly separate phenomena.
A self-organizing – better, a self-leading – group may sound terrific. But if you’re an
owner, you’re likely to have some valid reservations about surrendering the fate of
52
your investment and goals to that process. You will want, directly or through the
medium of professional executive management, to direct and control the operation of
that process. This is accomplished through placing a distinct and separate authority at
the top of the organization, in order to manage the otherwise self-directing leadership
that exists naturally within it.
That authority at the top is not leadership as commonly understood. Rather, it
is command. It gives legitimate expression to the superior role of management over
the inferior function of leadership.
On the other hand, organizational leadership, as described in Managing Leadership, is
inherent in the very nature of the organization. It arises from the peculiar relationships
that form among people joined together in a collaborative effort. As such, it takes on
an identity of its own, existing in these relationships, rather than merely in the
individuals who enter into them. Thus, it both influences, and is influenced by, those
individuals. It communicates their organizational impressions and needs throughout
the organization.” In an intelligently managed organization, that leadership isn’t a
randomly operating process; it’s “a propulsive force given motion by purpose, and by
a joint effort to accomplish it.” That is its natural tendency, its bias. But it is
management’s role to ensure that this organizational leadership has a substantive and
meaningful core around which to form itself and to give it traction for advancing the
organization toward its stated ends. Using these as a basis, organizational leadership
can provide the functions of leadership to an organizationally beneficial degree that
cannot be matched by individual charismatic leaders alone. It is also far more reliably
focused on the organization’s ability to accomplish its own purposes and ensure its
own sustainability (rather than resulting in the perversion of those to the interests of
senior executive “leaders”)
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EXPANSION
Plans to increase turnover to Rs 1 lakh crore by 2020 from Rs 24,996 crore.
GAIL India, the state-run gas transmission and marketing company, has charted a new
corporate business plan up to 2020. The focus is on consolidation, expansion and
diversification.
It plans to consolidate presence in petrochemicals and renewable, allocate 15 per cent
of annual capital expenditure for exploration and production (E&P), pick up equity in
upstream LNG (liquefied natural gas) projects abroad, and pursue investments in
shale gas projects in and outside India. Besides, GAIL India is keen to expand its city
gas distribution business and undertake distributed generation projects along its
pipelines.
B C Tripathi, chairman and managing director of GAIL India, told Business Standard
that: “The new corporate business plan, titled ‘Next Wave’, aims at increasing the
company’s turnover to Rs 1 lakh crore by 2020 from the current level of Rs 24,996
crore. Our current networth is of the order of Rs 60,000 crore.”
The company has no plans for initial public offering, but it would use multiple
instruments to mobilise resources to finance its projects. The company plans to spend
nearly Rs 1,000 crore annually on E&P, according to him.
“So far, GAIL India has been a minority partner in E&P of 29 blocks. However, in
view of the board’s decision to allocate 15 per cent of the annual capex, the company
would participate in the ninth round of the New Exploration Licensing Policy.”
According to Tripathi, GAIL India plans to commence drilling in its Rajasthan block
by January and in Cauvery block by April. “We are in the midst of strengthening of
the human resources for E&P.”
On renewable energy, Tripathi said GAIL India’s five-megawatt (Mw) wind power
project was up and running. “We will set up another wind project of 50 Mw. Besides,
the company would participate in the National Solar Mission, with the development
of 50 Mw solar thermal power project.”
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Tripathi said the company proposed to pick up equity in upstream LNG projects in
Africa, Indonesia, Malaysia and Australia. “We may be a minor or major stake holder
in such projects depending on the cost.”
The company is also scouting investment opportunities in India and abroad in shale
gas. Investments in shale gas projects would be done alone or through consortium.
GAIL India, either individually or through joint ventures, is engaged in expanding
city gas distribution network. It is also investing Rs 27,000 crore by 2013-14 for
laying natural gas transmission network.
“By December, the gas transmission capacity would be increased to a level of 350
million standard cubic meters per day (mscmd) from 170 mscmd. The pipeline
network would be increased to 12,000 kilometres (km) from 8,000 km,” Tripathi said.
The company has a 72 per cent market share in gas transmission and plans to double
the existing transportation capacity in the next two to three years.
Along pipelines, it plans to tap opportunities in the development of distributed
generated power projects, which would be gas-based and meet the local requirement
of power.
Tripathi said: “During 2010-11, GAIL India would raise Rs 6,275 crore through
domestic and foreign lenders. Of the $300-million external credit assistance, it has
already got $100 million, Rs 1,250 crore from HDFC and Rs 700 crore from Oil
Industry Development Board.”
He said the company planned to raise Rs 8,000 crore in 2011-12 through domestic,
inter-corporate loan and external commercial borrowings.
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CONTRACTION
A contraction is a shortened version of the written and spoken forms of a word,
syllable, or word group, created by omission of internal letters (actually, sounds).[1] In traditional grammar, contraction can denote the formation of a new word from
one word or a group of words, for example, by elision. This often occurs in rendering
a common sequence of words or, as in French, in maintaining a flowing sound.
In linguistic analysis, contractions should not be confused
with abbreviations or acronyms(including initialisms), with which they share
some semantic and phonetic functions, though all three are connoted by the term
"abbreviation" in loose parlance.[1] Contraction is also distinguished from clipping,
where beginnings and endings are omitted.
DIVERSIFICATION
GAIL today has reached new milestones with its strategic diversification into
Petrochemicals, Telecom and Liquid Hydrocarbons besides gas infrastructure. The
company has also extended its presence in Power, Liquefied Natural Gas re-
gasification, City Gas Distribution and Exploration & Production through equity and
joint ventures participations. Incorporating the new-found energy into its corporate
identity, Gas Authority of India was renamed GAIL (India) Limited on November 22,
2002.
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FINDINGS AND RECOMMENDATIONS
FINDINGS
1) The retailers on their outlets do not properly place the glow signboard and the
company or distributors do not do the distribution of the boards properly.
2) Sales promotion schemes are important to influence the consumer. The retailer
was dissatisfied by the promotional schemes of the company. The distributors
were not distributing all the schemes properly to the retailer.
3) The competitor’s sales promotion schemes were not much effective but schemes
were properly distributed to the retailers.
4) The company has strong distribution channel but the retailers were not satisfied by
the services of the distributors.
5) Number of root vehicle is very less as compare to the size of the market.
6) The merchandising equipments distributed by the company are not being
maintained properly by the company.
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RECOMMENDATIONS
1) The company must ensure that Reebok is not used to display vehicles
properly.
2) The company must keep check on the maintenance of vehicles on the
outlets.
3) The glow signboard should be placed at the public places where maximum
people can be influenced by the sales promotion schemes by the company.
4) The company should properly maintain all merchandising equipments on all
outlets.
5) Number of root vehicle should be increased as the size of market is relatively
large.
6) As the sales promotion schemes are major tool to influence the buyer
as well as to the retailer, so the company should maintain the proper flow of
the promotional schemes as compare to the competitors.
7) The company must ensure that promotional schemes are distributed
properly by the distributors.
8) Retailer- distribution relation should be made friendly.
9) The executive of the concerned market should be made more
responsible towards his/her job.
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CONCLUSION
The aim of this project was to comparatively study on operators and others operators
and try to reveal future prospects of Reebok .In my Marketing research I found that
the demand of is going to increase day by day. The company should participate in
advertising to acquire as much benefits as possible, thus competing successfully with
other operators.
The final survey incremented my knowledge regarding how to market one’s product
efficiently and how to deal with various types of people. Thus I greatly enjoyed this
project and learnt a lot. Development of good relations with the dealers is must.
Company should also make efforts to attract more and more customers through
various schemes etc.
After conducting this survey on Reebok, I come to the conclusion that,
company has huge potential in Delhi region & it can capture major
share by providing excellent after sales service. There are some other
conclusions are also included:
The market reach of the company is very good.
The growth of the product is also appraisable
The company is a major player in the sector of power
generation.
The service providing network of the company is very strong.
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BIBLIOGRAPHY
WEBSITE
www.google.com
www.wikipedia.com
www.gail.co.in
MAGAZINES / NEWSPAPERS
Business Today
The Financial Express
The Times of India
India today
Hindustan Times
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