Summer Training Report on

CONTAINER CORPORATION OF INDIA

Submitted in partial fulfillment of the requirements For the award of the degree of

Bachelor of Business Administration (Computer Aided Management) To Guru Gobind Singh Indraprastha University, Delhi
Guide:
Dr. JYOTI JESWANI

Submitted by:
CHIRAG SINGHAL

Affiliate to Guru Gobind Singh Indraprastha University

NEW DELHI -110058

CERTIFICATE
Mr. CHIRAG SINGHAL Enrollment No. 0631371906 herby certify that The Summer Training Report entitled CONTAINER CORPORATION OF INDIA is carried out by me at CONTAINER CORPORATION OF INDIA LIMITED. The matter embodied in this project work has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

(CHIRAG SINGHAL) Date: Certificate that the Summer Training Report entitled CONTAINER CORPORATION OF INDIA done b is completed under my guidance.

(Signature of the guide) Dr. Jyoti Jeswani Designation: Lecturer IITM, New delhi-110058

ACKNOWLEDGEMENT

A project is never the work of an individual. It is moreover a combination of ideas, suggestions, review, contribution and work involving many folks. It cannot be completed without guidelines. I express my thanks to Mr. H .Kapoor (Public relations officer CONCOR) for his valuable Suggestions, insight and encouragement. I would also like to express my heartfelt gratitude and the privilege to acknowledge our esteemed guide Dr. JYOTI JESWANI for her invaluable guidance and encouragement through out this project, without whom this project could have never been successful. Last but not the least my sincere thanks to all the faculty members of IITM, New Delhi and my parents for providing their help and advice whenever it was needed.

BBA (CAM)-5TH Semester

CONTENTS
Chapter No. Certificate. Acknowledgement. 1 2 3 4 Profile of the Company. SWOT Analysis of the Company. Analysis of Financial Reports. Lesson Learnt Bibliography Appendices Topic Page No

LIST OF TABLES
Table No. 1 2 3 4 5 6 7 Employee Table. Ratio Analysis. Balance Sheet. Profit & Loss Account. Cash Flow Statement. Financial Highlights. Topic Details of district offices of North Zone. Page No

LIST OF FIGURES

Figure No 1 2 3 4

Title Product Range of the company. Sales figure of the company. Organizational Chart. Organizational set up of headquarters.

Page No

CHAPTER -1

PROFILE OF THE COMPANY

1.1 Corporate profile of the Company

Name of the Company: Address: CONTAINER CORPORATION OF INDIA Container Corporation of India CONCOR BHAWAN C-3 Mathura Road Opposite APOLLO HOSPITAL New Delhi-110076

Phone No:-

91-11-41673093 41673094 4167309

FAX: E mail: Official website: -

91-11- 41673112 CO.pro@Concorindia.com. www.CONCOR.com

1.2 Background
1.2.1 CONCOR - The Multimodal Logistics Professionals Ever since globalization transformed the transport sector, national boundaries have become permeable to penetration by trade, creating the need for flexible transport solutions. Intermodalism and containerization were the by-products of this era and were poised to metamorphosize transport of "general cargo", moving it 'seamlessly' through sea and land arteries. Forty years ago, the physical process of exporting or importing

goods was arduous. Goods needed to be transported by lorry to the port, unloaded into a warehouse and then reloaded into the ship 'piece by piece'. 1.2.2 Malcolm McLean's idea of containerization changed the basics of cargo transport by standardizing the dimensions of the container and simultaneously improving the productivity of ports by mechanizing handling of container-carrying 'cellular' ships and reducing their handling to a few hours only. Unitisation helped elimination of multiple handling of cargo and made transfers quick, cheap and easy. As containerization came to stand for 'cargo care', it grew by leaps and bounds the world over. 1.2.3 Indian Railway's strategic initiative to containerize cargo transport put India on the multi-modal map for the first time in 1966. Given the continental distances in India (almost 3000 km from North to South and East to West), rail transport could be the cheaper option for all cargo over medium and long distances, especially if the cost of inter-modal transfers could be reduced. Containerized multi-modal door-to-door transport provided the ideal solution to this problem. It was this idea that saw the Indian Railways entering the market for moving door-to-door domestic cargo in special DSO containers starting in 1966. 1.2.4 Though the first ISO marine container had been handled in India at Cochin as early as 1973, it was in 1981 that the first ISO container was moved inland by the Indian Railways to India's first Inland Container Depot (ICD) at Bangalore, also managed by the Indian Railways. 1.2.5 Expansion of the network to 7 ICDs by 1988 saw increase in the handling of containers, and along the way, a strong view had emerged that there was a need to set up

a separate pro-active organization for promoting and managing the growth of containerization in India.

1.3 Introduction - Nature of Organization and its Business

1.3.1 Container Corporation of India Ltd. (CONCOR), was incorporated in March 1988 under the Companies Act, and commenced operation from November 1989 taking over the existing network of 7 ICDs from the Indian Railways. From its humble beginning, it is now an undisputed market leader having the largest network of 57 ICDs/CFSs in India. In addition to providing inland transport by rail for containers, it has also expanded to cover management of Ports, air cargo complexes and establishing cold-chain. It has and will continue to play the role of promoting containerization of India by virtue of its modern rail wagon fleet, customer friendly commercial practices and extensively used Information Technology. The company developed multimodal logistics support for Indias International and Domestic containerization and trade. Though rail is the main stay of our transportation plan, road services are also provided to cater to the need of door-to-door services, whether in the International or Domestic business. CONCOR is committed to providing responsive, cost effective, efficient and reliable logistics solution to its customers. It strives to be the first choice for its customers. CONCOR is a customer focused, performance driven, result oriented organization, focused on providing value for money to its customers. 1.3.2 Main Functions of CONCOR 1.3.2.1 Transportation of goods and cargoes that are meant for the purpose of the government enterprises in order to enhance the client list of the CONCOR and to save the expenditure of govt. enterprises.

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1.3.2.2 Logistics solutions for the organized and consolidated cargo markets. 1.3.2.3 Provision of storage facilities for the maintenance of Perishable goods. 1.3.2.4 Maintenance of cold chains for the stocking of goods for longer duration and with safety and freshness as the first priority. 1.3.2.5 Administration of free movements of low heights containers in order to achieve timely delivery of goods. 1.3.2.6 Fixation of a minimum judicious cost scale on which the concerned amount of payload could be delivered to a destination. 1.3.3 Core Business CONCOR's core business is characterised by three distinct activities, that of a carrier, a terminal operator, and a warehouse operator. 1.3.3.1 Carrier Rail is the mainstay of CONCORs transportation plans & strategy. Majority of CONCOR terminals are rail-linked, with rail as the main carrier for haulage. Facilities are, however, provided for first and last mile transportation by road also. CONCOR benefits from a close relationship with the Indian Railways. Several of its terminals are situated on leased Railway-land. Many of its key operating personnel are on secondment from Indian Railways or have previously been employed by the Indian Railways. Wagons and operational support from Indian Railways have always been available to the company. As rail is price-competitive over long distances, the price advantage can be passed on to clients, thus allowing for flexible and competitive pricing. The rail link also plays a major role in decongesting our ports and the road corridors that lead to these ports. Though rail is the mainstay of CONCOR's transportation plan, some CONCOR

11

terminals are exclusively road-fed as well. We provide 94% of our inland transport through the Indian Railways network. Road services are mostly in the form of supplementary services to provide the door to door linkages having carried the bulk of long lead by rail. However, where ever it is operationally or economically a superior option, road is used as an alternative to rail as well. 1.3.3.2 Terminal and Warehouse Operator CONCOR started operations in November 1989 with 7 Inland Container Depots (ICDs). We have since extended the network to a total of 57 terminals, of which 48 are exportimport container depots, and 9 exclusive domestic container depots. As many as 30 terminals perform the combined role of domestic as well as international terminals. The company expects the number of terminals to increase to 60 in the next few years (terminal map) CONCOR's customs bonded Inland Container depots are dry ports in the hinterland, and serve the purpose of bringing all port facilities including Customs clearance to the customer's doorstep. The terminals are almost always linked by rail to the Indian Railway network, unless their size or location dictates that they be linked by road. The rail links enable us to facilitate the moving of large volumes over long distances in the most cost effective manner. CONCOR's terminals provide a spectrum of facilities in terms of warehousing, container parking, repair facilities, and even office complexes. As CFS operators, CONCOR adds value to the logistics chain by offering services such as: Transit warehousing for import and export cargo Bonded warehousing, which enables importers to store cargo and ask for partial releases, thereby deferring duty payment

12

Less than Container Load (LCL) consolidation, and reworking of LCL cargo at nominated hub

Air cargo clearance using bonded trucking

1.3.4 In the area of domestic business door pick up and door delivery services are the most popular. It also use its terminal network to plan hub and spoke movements that allow single customers to move cargo to multiple locations at a single time, with CONCOR taking care of the distribution and re distribution requirements. 1.3.5 The key value offered is the provision of a single-window facility co-ordinating with all the different agencies and services involved in the containerized cargo trade, from Customs, Gateway Ports, and Railways, to road hauliers, consolidators, Forwarders, Custom House Agents and shipping lines. To achieve a high degree of customization, we offer packages designed to provide the most cost-effective combination of road and rail. This enables us to offer services which can be individually tailored to every customers specifications, while minimizing the effort he has to put in.

1.4 Geographical Areas of operation 1.4.1 The company is very well placed in terms of its outreach to its Customers which ensures proper distribution of workload and managerial Accountability. CONCOR as an entity is more of national operations in nature. And basically its operations are limited to the national terrain and borders of India.

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This is an organization that basically deals with the Transit of various goods across different geographical areas and logistic transfers of heavy cargoes on a large scale that cannot be done conveniently. It carries out this task of transport and on time delivery of goods on the basis of the infrastructure that it has been maintaining and its corporate offices are spread across whole country. 1.4.2 The main geographical areas of operation of the company are as follows: North central region Noida Northern central region- Tuglakabad Western central region Mumbai South central region Hyderabad Southern region Chennai Central region Nagpur Eastern region- Kolkata North western region-Ahmedabad 1.4.3 From its humble beginning, it is now an undisputed market leader having the largest network of 57 ICDs/CFSs in India. In addition to providing inland transport by rail for containers, it has also expanded to cover management of Ports, air cargo complexes and establishing cold-chain. It has and will continue to play the role of promoting containerization of India by virtue of its modern rail wagon fleet, customer friendly commercial practices and extensively used Information Technology. The company developed multimodal logistics support for Indias International and Domestic containerization and trade.

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1.5 Companys Vision & Mission 1.5.1 The corporate vision of the company is: To deliver a world-class customer experience

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The company has been working on its strong & broad vision based guidelines, which aim at delivering world-class customer experience. For this it has been constantly working for the customers & modifying its strategies in their favour. 1.5.2 Companys Mission The Companys mission is to join with the community partners and stakeholders to make CONCOR a company of reliable logistics solutions to customers through synergy with the community partners and ensuring profitability and growth. It strives to be the first choice for customers. They will be firmly committed to the social Responsibility and prove worthy of trust in the company. 1.5.3 Objectives of the Company To be a customer focused, performance driven, result oriented organization, focused on providing value for money to our customers. To strive to maximize productivity utilization of resources, delivering high quality of services, and be recognized for setting the standards for excellence. To consistently look for new better ways to provide innovative services. To follow highest standards of business ethics and add social value for the community at large by discharging social obligations as a responsible corporate Entity

1.6 Product Range Transit warehousing for Import-Export cargoes. Bonded warehousing (helping Importer to store import cargo and take Partial

16

Deliveries, therefore deferring duty payments). Provision of air cargo complexes in some terminals. Consolidation of LCL(Less than Container Load). Reefer movement. Maintenance of a chain of cold storages to ensure longer preservation of Perishable goods and further extending its shelving life. Low height container that are capable of faster movement so that they could Deliver the cargo in shorter span of time.

1.7 Size in terms of Manpower and Turnover

Against a sanctioned strength of 34560, 31243 officers/ officials are in position leaving North Zone with a substantial shortfall of 3317. Shortage of staff is particularly felt more 17

in regions like that of Ahmedabad and kolkata regional headquarters. In Jammu Division, while Leh & Ladakh is run by a skeleton staff, partly on deputation. Annexure-VII shows the region wise position of staff including Headquarters whos Cat.II, III & IV staff members are part of the North Zone strength. Labour force in North Zone consists of 31,127 workers consisting of three categories.

S.No. Region 1. 2. 3. 4. 5. 6. 7. 8. Noida Tuglaqabaad Mumbai Hyderabad Kolkata

Departmental Labour 1755 808 2255 584 2929 64 18 8413

DPS 296 16007 3063 421 723 20510

NWNP NIL

Total 2051 16815 2255 743 7164 1358 18 723 31127

159 1172 873 2204

Chennai
Nagpur

Ahmedabad
Total

1.8 Organizational Structure

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CHAIRMAN

M.DIRECTOR

DIRECTOR INTERNAL MARKETING & OPERATIONS

DIRECTOR P&S

DIRECTOR FINANCE

DIRECTOR DOMESTIC AFFAIRS

INTERNAL MKTG, COMMERCAIL OPERATIONS

PROJECT TECHNICAL MIS

FINANCING A/C SECRETORIAL INTERNAL AUDITS HR

DOMESTIC MARKETING DOMESTIC TERMINALS RATING, COMMISION

1.9 Sources of Data collection

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The methodology adopted for this project is exploratory in nature since there is no hypothesis that has to be tested. The conclusions have been drawn by exploratory research work. 1.9.1 There have been two sources of information collected: a) Primary Sources By personal interaction with the public relations officer Mr. H. Kapoor of the organization concerned, about the various insights and details of the company And its expansion plans in days to come, its overseas ventures and the impact the Current tumbles at the stock market had on the health of the CONCOR. His input has been valuable. b) Secondary Sources Official website of the CONTAINER CORPORATION OF INDIA. Memorandum and Article of association of the association of the company. By the ratings of the stocks of the CONTAINER CORPORATION OF INDIA as per ratings of the different stock brooking firms like that of the Karvy stock Brooking company and Share Khan Etc.

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CHAPTER-2 SWOT ANALYSIS

2.1 Strengths of the CONCOR

21

CONCOR is commanding the largest network of 57 Inland Container Depots /Container Freight Stations in India today, enabling it operate on the largest scale. Transportation by rail is cheapest in the country, and CONCOR being a time subsidy to Railways avails its services in lowest cost ever.

Energy consumption by Rail is 1/6 as compared to road, thereby further bringing down the cost of operations.

Double/triple stack container movement would further reduce cost of operations and bring about more in the kitty of CONCOR.

Renewed focus on customer satisfaction, a growth rate of around 16% in the Exim and 21% in the domestic segment during FY08.

CONCOR is a subsidiary of the ministry of railways and being the only major player in India involved in moving containerized cargo via railways in an Organized manner (but he market share lies at only 6.7% as compared to that of 60-70%in developed countries and with entry barriers still in place to an extent, Also economies of scale together with support of asset base.

2.2 Weakness of the CONCOR

CONCOR owns up only the 6.7% of the total logistics market in India which is

22

Valued at Rs.4.5 trillion and the rest is in the hands of the unorganized retail Logistics players like GATI, RELIANCE logistics (better called logistics Solutions of India limited). CONCOR suffers from the traditional problems that are faced by any public Sector undertaking that is red-tapism, lethargy, lack of motivation, absence of skilled labour force in adequate numbers. The working of CONCOR still follows the redundant ways of expansion and doesnt learn from its rivals quickly and still it has to wait for the approval of its Ministry to bring in force any of its strategies, biting up a precious share of its Reaction time in these fast changing marketing conditions, where an organization is as good as its reaction and implementation speed. To run an effective logistics business, a perfect infrastructure is required for the smoother movement of cargo but in India, the bottlenecks of infrastructural availability hampers the free movement of goods there by making it difficult for CONCOR to approach small time customers.

2.3 Opportunities for the CONCOR

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At present, containerized cargo accounts for less than 20% of the total cargo Traffic in India, compared to 70-80% in developed countries. This is where opportunity lies for CONCOR, as it is the only major player in a growing market characterized by huge entry barriers and economies of scale. The Government has allowed private players to enter the containerized cargo segment, But given the capital intensive nature of business, these players wont pose a threat to CONCOR. Hence investors can find CONCOR feasible for investment for the next 3-5 years

The container traffic in India has grown at a CAGR of 15% since 1991, 2.5 times the average GDP in the same period. With the growth of external trade being faster than GDP, the similar trends are expected to continue in future as well.

Similarly the possibilities of growth in container traffic in the Domestic sector are immense with continued strong trends in growth of GDP and the need of the industry for value added services.

Logistics ports, large cargo hubs will be the requirement of the industry in very near future, as large retail chains generate the demand for professional managed cargo delivery systems.

More depots on anvil and additional can be developed specific to retail chain requirement.

Today the company is increasingly doubling up as a warehouse and terminal operator opening up new avenues for it.

2.4 Threats to the CONCOR

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With a liberalized economy the avenues meant for the CONCOR are now eyed by MNCs and other new entrants into the market, therefore the share earlier enjoyed by the same is now up for grabs for everyone plying in the market.

With the government permitting 14 private players to run containerized rail Transport, the sector is poised for a price war in near future and will witness a lot of exercises to grab the maximum market share.

Lack of outreach is one threat CONCOR has been facing since its incorporation which needs to be paid attention to because, the private players would leave no stone unturned in order to consolidate their customer base.

CONCOR posted higher net profit growth on account of slower growth in rail Freight cost and more than doubling of other income. The company is on the Expansion spree and has entailed total capacity expansion of Rs.7 bn for FY09.Therefore the company is upbeat about its aspect in the short and medium Term but the experts have a word of caution that in the long term, the company might get into a slowdown spin.

With the entry of big players like that of GATI, RELIANCE LOGISTICS, AHL, DHL the sector remains unprotected for CONCOR to operate and it would be difficult enough for CONCOR to operate and maintain its dominance in this Sector.

2.5 Best Practices

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2.5.1 CONCOR is regularly making efforts to improve our business processed to provide for improved quality of customer satisfaction. 2.5.2 Some of the practices adopted by the organisation for achieving these goals are listed below: o On line Information & Container Tracking o Container Repair & Cleaning Facilities o Cargo Palletisation, Strapping etc. o Cargo Lashing/Choking Facility o Fumigation of Cargo/Containers o Supply Chain Management o Door Delivery/Pick Up of Containerised cargo o Container/Cargo Survey o Pre Deposit Accounts o Round the Clock Security at Terminals o Facilitation of Customs Clearance o Flexible Payment Arrangements The Company conducts Customer Satisfaction Survey regularly to get a feedback from the customers and also take action to rectify/improve our services. CONCOR had also introduced on Companys website Feedback. Com wherein Customers can obtain information and seek remedies on our services in the format available under menu Customer Feedback Facility. Prompt action on these observations/suggestions is taken to improve the quality of our services to the customer.

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CHAPTER-3 ANALYSIS OF FINANCIAL STATEMENTS

27

3.1 Analysis is based on the Audited Financial statement attached at the end of the report as appendix. A & B. 3.1.1 Meaning of Financial Analysis: It is the systematic numerical calculation of the relationship between one fact with the other to measure the profitability, operational efficiency and the growth potential of the business. The analysis serves the interest of the shareholders, debenture holders, potential investors, creditors, bankers, journalists, legislators, politicians, researchers etc. the analysis of financial statements make it simple, intelligible and meaningful for the concerned parties.

3.1.2 Ratio Analysis Ratio analysis is a technique of analyzing the financial statements and refers to analysis of financial statement by computation of ratios. In other words, ratio analysis is statements to provide a meaningful understanding of the performance and financial position of an enterprise. Advantages and Uses of Ratio Analysis 1. Useful in analysis of financial statements. 2. Useful in simplifying accounting figures. 3. Useful in judging the operating efficiency of business. 4. Useful for forecasting purposes. 5. Useful in locating the weak spot of the business. 6. Useful in Inter-firm and Intra-firm comparison.

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Broadly ratios used in the analysis are:

1. Liquidity ratio (short- term solvency) Ratios 2. Long-term solvency Ratios 3. Profitability Ratios 4. Turnover Ratios

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3.4 Ratio Analysis

PARTICULARS Liquidity Ratios 1.Current Ratio Current Assets (including stocks) to Current Liabilities (Excluding bank borrowings) 2. Quick Ratio Quick Assets To Current Liabilities Quick Assets=Current assets- (stock + prepaid expenses) Solvency Ratios 3. Total Assets to Debt Ratio 0.11:1 Total Assets to Long Term Debts 4. Proprietary Ratio 1.20:1 Proprietors Funds to Total Assets 5. Debt Equity Ratio 7.15:1 Long Term Loans to Equity 5.15:1 0.14:1 1.31:1 0.49:1 0.12:1 3.37:1 2.24:1 RATIOS 2008 2007

Turnover Ratios
6. Inventory Turnover Ratio Cost of Goods sold to Average Inventory 2.80 times COGS=Opening Stock + Purchases + Direct ExpensesClosing Stock 7. Debtors Turnover Ratio Total Sales to Accounts Receivable 29.13 times Where: Accounts Receivable= Debtors + Bills Receivable 5. Working Capital Turnover Ratio Sales to Working Capital Working Capital=Current Assets Current Liabilities 2.61 times 4.45 times 36.43 times 2.86 times

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6. Fixed Assets Turnover Ratio Net Sales to Net fixed Assets Net Fixed Assets=Fixed Assets - Depreciation 7. Current Assets Turnover Ratio 2.46 times Net Sales to Current Assets 8. Turnover to Capital Employed Net Sales to Capital Employed Capital Employed=Net Fixed Assets-Working Capital Other ratios 9. Financing Ratios 5.94% Interest as a percentage of other expenses 10. Turnover (purchase & sale) per labour (MT) 1301 12. Cost per employee (Rs/Annum) 356711 1469 241301 5.24% 2.51 times 4.24 times 2.46 times 79.43 times 97.89 times

3.5
3.5.1

Interpretation & Comments

Liquidity ratios measure the short-term solvency of the business, i.e. the firms ability to pay its dues. Current Ratio = Current asset Current liability

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3.5 3 2.5 2 1.5 1 0.5 0 2007 2008 Current Ratio

Figure 3.1: Current Ratio This ratio shows short term financial soundness of the business. Its ideal ratio is 2:1 higher to some extent the ratio is better for company. In 2008, the current ratio of the company was 3.35:1, i.e. higher than the ideal ratio. This indicates poor investment policies adopted by the company too with poor inventory control. This means that company funds are lying idle in other words are yet to be used.While in 2007, the ratio was 2.24, which is very near to the ideal ratio indicating The company funds are not lying idle if compared to previous year ratio.

Quick Ratio indicates the short-term debt paying capacity. Quick Ratio= Quick Assets/liquid Assets Current Liabilities

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0.5 0.4 0.3 0.2 0.1 0 2007 2008 Quick Ratio

Figure 3.2: Quick Ratio In 2008 the quick ratio was 0.49 & in 2007 the quick ratio was 0.12 respectively. This indicates overstocking i.e. the stock was in excess. 3.5.2 Solvency ratios convey an enterprise ability to meet its long-term obligations. Total assets to Debt Ratio measures the safety margin available to suppliers of long-term debts. Total Assets to debt Ratio=Total Assets Long-Term debts
1.4 1.2 1 0.8 0.6 0.4 0.2 0 2007 2008 Total Assets to Debt Ratio

Figure 3.3: Total Assets to Debt Ratio In 2008, the ratio was 0.11:1, which represents heavily risky financial position of business i.e. to totally depend on outside loans. While in 2007, the ratio was 1:31, which is satisfactory and indicates security to lenders to extend long-term loans to the business.

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Debt Equity Ratio indicates the long-term financial position and soundness of the long-term financial policies of the company. Its ratio 2:1 is acceptable. Debt-Equity Ratio=Debt(long-term) Equity

8 7 6 5 4 3 2 1 0 2007 2008

Debt Equity Ratio

Figure 3.4: Debt Equity Ratio In 2008 the debt equity ratio of the company was 7.15:1 & in 2007 the debt equity ratio of the company was 5.15:1, which is too high. This indicates a risky financial position of the company and also the company had been in swinging bridge. Proprietary Ratio Proprietary Ratio=Proprietary funds Total Assets

34

1.2 1 0.8 0.6 0.4 0.2 0 2007 2008 Proprietory Ratio

Figure 3.5: Proprietary Ratio This ratio indicates the extent to which the total assets have been financed by the

proprietor. Higher the ratio greater the satisfaction for lenders and creditors.Proprietary Ratio for 2008 was 1.20:1, which is satisfactory which means that there is safety for creditors of all types.In 2007, the ratio was 0.14:1, which may be an alarming situation for creditors, since they may have to lose heavily in case of losses. 3.5.3 Turnover Ratios measure the effectiveness with which a concern uses resources at its disposal. Inventory Turnover Ratio this ratio measures how fast the stock is moving through the company and generating sales. higher the ratio more efficient management of inventories . Inventory Turnover Ratio=Cost of goods sold Average Stock

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2.86 2.84 2.82 2.8 2.78 2.76 2007 2008 Inventory Turnover Ratio

Figure 3.6: Inventory Turnover Ratio Inventory Turnover Ratio in 2008 was 2.80 & in 2007 was 2.86 times respectively which in comparison to 2:1 is satisfactorily means neither too high nor too low. High ratio indicates more sales being produced by a unit of investment in stocks and low ratio indicates low sales. Debtors Turnover Ratio indicates economy and efficiency in the collection of amount due from debtors. higher the ratio better it is for the company which means the debtors are being collected more quickly Debtors Turnover Ratio=Net Credit Sales Average a/c receivable
40 35 30 25 20 15 10 5 0 2007 2008

Debtors Turnover Ratio

Figure 3.7: Debtors Turnover Ratio

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The ratio in 2008 & 2007 was 29.13 & 36.43 respectively, which indicates that debts are being collected more promptly. It will release funds, which may then be put to some other use. Working Capital Turnover Ratio indicates whether the working capital has been effectively utilized or not in making sales.
5 4 3 2 1 0 2007 2008 Working Capital Turnover Ratio

Figure 3.8: Working Capital Turnover Ratio The ratio in 2008& 2007 was 2.61 & 4.45 times which is not so high but satisfactory. Fixed Assets Turnover Ratio indicates whether the investment in fixed assets is justified in relation to the sales achieved.In 2008 and 2007.
100 80 60 40 20 0 2007 2008 Fixed Assets Turnover Ratio

Figure 3.9: Fixed Assets Turnover Ratio

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The ratio was 79.4 times and 97.8 times respectively this indicates efficient utilization of fixed assets.

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CHAPTER 4 LESSONS LEARNT

39

4.1 Description of My Experience

4.1.1, During the training session, I got more knowledge; first of all, I know what are corporate world and its rules and regulations. Also I know how to behave in a organisation. What is seniority & juniority ? What is time value and punctuality in an organisation, how to adapt my self in a office, what is work pressure and how to handle the ideal and rough costumers. I have also observed time management, team work and quick learning environment which will help me to accomplish my vision

4.2 Practical Knowledge

4.2.1, Container Corporation of India has been a sea of learning experience for me. The first & foremost thing that I have learned is the Co-operative culture & how do people behave in Organization. 4.2.2, In Marketing Strategies I learnt how the Company promotes its product to the Customers. 4.2.4, I learned how to handle stress & try to manage to work under Crises.

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4.3.1 Limitation of Study

4.3.1.1, It is very well known fact that Constraint & limitation are bound to be present in any study. In completing my training, I also encountering some problem 4.3.1.2, Too much expectation from the Executives. 4.3.1.3, Company hesitates to show the records of performance of any of this Specific products & services.

4.3.2 Suggestions
4.3.2.1 My Suggestions is that student should do Summer Training in the Company, because its environment is full of Professionalism & Knowledge. There are lots of things to learn: Emerging scope of the company. How to adapt himself in the environment. New concept about the Industry.

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Bibliography

BIBLIOGRAPHY
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1. Advertising and Marketing 2. India Today 3. www.google.com 4. www.concor.com 5. www.encyclopedia.com 6. Manuals, handbooks and circulars of CONCOR India Ltd. 7. Kotler, Philips. Marketing Management, New Millennium Edition, 2000. 8. Ramaswamy V.S & Namakumari S. Marketing Management, Planning, Implementation& Control Macmillan India pvt. Edition, 2002. 9. Baker Michael J. The Marketing Book Viva Books Pvt. Ltd. Edition, 2000.

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APPENDICES

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APPENDIX-A
BALANCE SHEET
Balance Sheet as on 31 March 2007 and 31 March 2008 (Figures in Lakhs of Rupees) LIABILITIES Capital:
-Capital contributed by govt of India -Subscribed capital by govt of India

AMOUNT 2008 2007 250000.00 243747.20 250000.00 239245.88

ASSETS Fixed Assets:

At written down value

AMOUNT 2008 2007 35171.15 35304.76

Secured Loans:
-Loans from Scheduled banks and State Bank of India -Long term borrowings through GOI guaranteed bonds

3052998.5 2 402350.00

2516262.04

Loans and Advances:

46.27

46.27

730.62 7125.00 Other Loans and Advances:

Other advances including advances to staff

Unsecured Loans
-Loan from Housing Development Finance Corporation -Loan from Bank of India

524.98 5625.00

7962.19

30560.87

Current liabilities & provisions.

-Sundry Creditors (Goods & finance) -Service Price Equalization Fund -Deposits Repayable 274849.2 391059.83

35699.21 82200.43

4184088 130281.94

Interest Payable

392748.84 3457.53

563159.65 3413.91

Claim Receivables Deposits and Other Receivables Interest Receivables Current Assets
-Cold chains -low height cont. -By Products - fast track cargoes - Stores & Spares -Stocks of undelivered cargo

75520.50 33076.96 16313.36

1282991.8 3103.4 1.01 34897.20 2759.42 135.71

5488413 13446.42 14175.36

1230565.65 2231.63 1.01 25942.23 3417.53 79.01

1323888.1

1262236.4

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Balance Carried Forward LIABILITIES Balance Brought Forward

410452.07

3329937.1

Unregularised Transit & Storage Balance Carried Forward ASSETS Balance Brought Forward Book Debts:
-Outstanding for more than 6 months -Other debts

45336.12 1537314.7

53288.32 1463942.6

AMOUNT 2008 2007 410452.07 3329937.1

AMOUNT 2008 2007 1537314.7

1949084.25 492337.88

1463942.6
1616032.66 244865.69

2441422.1 Cash & Bank Balances:

-Cash in hand -Cheques, Demand Draft & Fixed Deposits 5.37 85837.41

1860898.3
5.13 2913.40

85842.78 Miscellaneous Expenditure & Losses Deferred Revenue Expenses Profit &Loss Account Total 410452.07 3329937.1 Total 1.07 34694.82 2176.53 410452.07

2918.53 1.07 _ 2176.53 3329937.1

46

APPENDIX B
PROFIT AND LOSS ACCOUNT
For the year ended 31 March 2008 & 31 March 2007 (Figures in Lakhs of Rupees) PARTICULARS Opening Stock:
-Low height containers -Unused inventory -By Products & other commodities -Stores & Spares

AMOUNT 2008
1230565.08 2231.63 1.01 25942.23 3417.53

2007
1755049.19 4983.60 3.06 25749.29 4678.60

1262157.48 Purchases: -Low height container

- Fast track rail routes -fuel -Stores &Spares 3585829.19 18906.53 86953.02 1550.65

1790463.74
3714336.82 11987.40 109727.15 1382.82

3693239.39 Low containers (imported):

Cold chains(including freight)

3837434.19 18.20 2838.23 129244.26

280014.46 45778.92 613.93 43875.48

1.04 2826.04 135855.75

257957.71 36196.28 730.70 14362.78

Milling charges paid to other agencies (Net) Handling Expenses (Include wages to departmental labour) Freight: -Railway Freight
-Lorry Freight -Steamer Freight -Transport Subsidy

309247.47
30843.11 103447.27 114.60

370282.79
22252.48 88304.09 193.83

Salaries, Wages and Allowances; -Officers

-Staff -Less: capitalized

134175.78 Medical reimbursement:

-Officers -Staff 876.43 3174.27

110362.74
626.36 2524.16

4050.70

3150.52

47

Medicines & Medical Equipments Balance Carried Over PARTICULARS Balance Brought Forward Contribution to Provident Fund & others Staff Welfare Expenses Rates & Taxes Insurance Power, Fuel & Electricity Rent:
-Godowns -Offices & others

4.38 5541558.03 2008 5541558.03 17530.26 1748.16 799.16 34.64 1295.94

47787.91 1137.70

4.28 6243798.95 2007 6243798.95 17211.23 1764.92 1153.36 34.64 1284.23

32233.58 1222.50

AMOUNT

48925.61 Traveling Expenses Audit Fee & Traveling Expenses Fees & Traveling Expenses of Directors Repairs & Maintenance
-Godowns -Others

33456.08 2630.66 909.58 1.97

2113.93 2188.39

2639.58 333.20 2.96

2509.13 2752.88

5262.01 Maintenance of Vehicles Interest Public Relations & Publicity Miscellaneous Expenses 13940.15 Debts/Claims Written Off 490.94 199.10 260000.60 36.33

4302.32 192.59 237758.04 205.50 14481.79 412.15

48

Depreciation 4531.12 Total PARTICULARS Sales:

-Low height container -Fast track cargoes -By Products & other commodities -Cold chains -Stores & Spares

3484.44 6563082.17 2007

3099903.66 14367.64 1.03 641.61 4.04

5899327.79 2008
2416023.84 17377.19

AMOUNT

554.11 19.38

2433974.52 Closing Stocks: -Low height containers

-By Products & Other commodities -Gunnies -Stores & Spares 1282991.82 3103.04 1.01 34897.20 2759.42

3114917.98
1230565.08 2231.63 1.01 25942.23 3417.53

1323752.49
1540.20

1262157.48
2171.62 12.13

Claims:
-Railways -Shipping

1540.20
1971087.86 126149.39 23357.78

2183.75
1891429.44 257460.17 -832.89

Consumer Subsidy on Cargoes

Add: carrying charges of buffer stocks of Freight Less: adjustment relating to previous years

2073879.47 3480.40 3374.02 32523.21 23358.54 3440.98 3.96 5899327.79

2148056.72 10671.19 2248.29 19956.70 583.38 2290.28 16.40 6563082.17

Unregularised Transit and storage shortages (Reimbursable by department of food

and public distribution)

Short realization on Fast track operations. Miscellaneous income Adjustments relating to previous years. Interest received Foreign Exchange variance Total

49

APPENDIX-C
Cash flow Statement
For the year ended 31 March 2008 & 31 March 2007 (Figures in Lakhs of Rupees) PARTICULARS Cash flow from Operating Activities: Net Profit during the year Adjustments for: Depreciation Interest Expense Interest Income Debts written off Foreign exchange Variance Operating Profit before working capital changes Decrease in working capital: Decrease in unregularised shortages Increase in working capital: Decrease in cargo Price Equalization Fund Decrease in sundry creditors Increase in Loans & Advances, deposits & other claim receivables Decrease in Deposits Repayable Increase in Stocks Increase in Book Debts Increase in Miscellaneous Expenditure & Losses Net cash generated from Operating Activities Cash flow from Investing Activities: Sale of fixed assets Purchase of fixed assets Net cash used in Investing Activities Cash flow from Financing Activities: 4501.32 3946.00 AMOUNT 2008 0.00 4531.12 260000.60 -3440.98 490.94 -3.96 261577.72 7952.20 -6141.67 -116638.12 -17668.23 -48081.51 -61651.70 -581014.72 -34694 -596360.85 2007 0.00 3484.44 237758.04 -2290.28 412.15 -16.40 239347.95 3153.10 -2960.63 -53367.79 -18806.59 -30427.77 528380.59 -325649.03 0.09 339669.83

139.12 -4082.18 -3943.06

29.19 -6025.46 -5996.27

50

Increase in capital subscribed by Government of India Increase in Loans & Advances from Banks Net outflow on Interest Repayment of loans to HDFC Loans taken from Bank of India Funds raised through issue of Bonds Net cash used in Financing Activities Net increase in cash & cash equivalents Cash & cash equivalents at the beginning of the year Cash & cash equivalents at the end of the year

536736.48 -258654.00 -205.64 2008 -1500.00 402350.00 683228.16 82924.25 2918.53 85842.78

-357265.52 -247976.28 -162.99 2007 7125.00 0.00 -594333.79 -260660.23 263578.67 2918.53

51