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PROJECT REPORT ON

PERFORMANCE ANALYSIS OF MATRIX CELLULAR

Submitted in partial fulfillment of the requirements


For the award of

Master of Business Administration (MBA)


To

University School of Management Studies

Guide:
by:
Ms. Sinthiya
KALRA

Submitted
DASKHPREET SINGH
(0

5116659312)

Batch (2012 2014)

CERTIFICATE
I, Ms. DAKSHPREET SINGH KALRA, Roll No. 05116659312 certify that the
PROJECT RESEARCH (FM)) entitled PERFORMANCE ANAYSIS OF MATRIX
CELLULAR is done by me and it is an authentic work carried out by me at MATRIX
CELLULAR. The matter embodied in this report has not been submitted earlier for the
award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student


Date:

Certified that the PROJECT RESEARCH entitled PERFORMANCE ANAYSIS OF


MATRIX CELLULAR

Done by Mr. DAKSHPREET SINGH KALRA, Roll No.05116659312, is completed


under my guidance.

Signature of the Guide


Date:
Name of the Guide:
Designation:
Address:
University School of
Management Studies,
New Delhi

Countersigned

Programme Director/HOD

ACKNOWLEDGEMENT

Project Work is never the accomplishment of an individual rather it is an amalgamation of


the efforts, idea and cooperation of a number of entities. I acknowledge with gratitude
and appreciation, my indebtedness to my mentor & guide for allowing me to work on
PERFORMANCE ANALYSIS OF MATRIX CELLULAR. I also thank her for the
ideas and basic concepts she delivered and shared with me, as she helped me a lot in
accomplishing this project of mine.

DAKSHPREET SINGH KALRA


MBA-FM (4th SEM)
05116659312

EXECUTIVE SUMMARY
PROJECT TITLE: PERFORMANCE ANALYSIS OF MATRIX CELLULAR
ORGANIZATION: MATRIX CELLULAR LIMITED
Matrix

Cellular

Services

is

Delhi-based

company

providing

complete

telecommunication solutions for Indian travellers going abroad. Their services include
international SIM cards, 3G data cards and wireless communication for use in India and
abroad. Their vision and effort to connect the Indian outbound traveller individuals,
students and corporate - with a convenient, cost-effective mobile and data service have
enabled us to become the undisputed market leader.
Objective of the study is to analyse the performance of the company using ration analysis
and common size statement. Although there are many other methods of analysing the
performance of the company, in this project only 2 main methods are used.
In findings many items are increasing and many are decreasing due to some or the other
reason. The overall performance of the year 2012 was much better than the performance
of 2013.
The present financial status of the company is not so good because there are many
important items in the balance sheet and profit and loss account that are affected badly
due to many factors. The economy of the country also affected the performance of the

company. Inflation can be the major reason for the downfall, not only this but the
increase in competition also affected the company badly.

CONTENTS
S No

Topic

Page No

Certificate

Acknowledgement

Executive Summary

List of Tables

Chapter 1 Introduction

Chapter 2 SWOT Analysis

24

Chapter 3 Research Methodology

27

Chapter 4 Data Analysis

32

Findings & Conclusions

61

Bibliography

LIST OF TABLES

Table No

Title

Page No

4.1

Balance Sheet for the year ending 2012 and 2013

33

4.2

Common Size Statement of Balance Sheet for the 36


year ending 2012 and 2013

4.3

Profit and Loss Account for the year ending 2012 & 42
2013

4.4

Common Size Statement of Profit & Loss Account 44


for the year ending 2012 & 2013

CHAPTER -1
INTRODUCTION

1.1COMPANY PROFILE
1.1.1 About Matrix cellular
Started in 1995, Matrix Cellular Services is a Delhi-based company providing complete
telecommunication solutions for Indian travellers going abroad. Their services include
international SIM cards, 3G data cards and wireless communication for use in India and
abroad. Their vision and effort to connect the Indian outbound traveller individuals,
students and corporate - with a convenient, cost-effective mobile and data service have
enabled

us

to

become

the

undisputed

market

leader.

Matrix introduced the concept of local connectivity in India, by offering country-specific


international SIM cards. They ensure that you stay in touch without paying huge mobile
bills. Moreover, since the cellular phone/data connections are local to the country people
are

travelling

to,

people

enjoy

better

coverage

and

connectivity.

They offer destination-specific SIM cards for Argentina, Australia, Austria, Belgium,
Brazil, Canada, China, France, Germany, Greece, Hong Kong, Holland, Italy, Japan,
Malaysia, Mauritius, Mexico, New Zealand, Singapore, South Africa, South Korea,
Spain, Switzerland, Sri Lanka, Taiwan, Thailand, U.A.E., U.S.A. and U.K.

Since inception, they have aimed to be the best in service, quality, innovation and choice.
7

Even today, they are dedicated to the same. They are also constantly increasing their
portfolio of countries and focusing on unique communication solutions. This way people
stay connected wherever they are and that too, without being concerned by exorbitant
international roaming expenses.

Turnover : Rs 6000 Crore


Employees : 800+
Market Capitalization Rs. 173 billion Approx.

Mobility Voice & Data Services across all India footprints covering all 23

telecom circles of the country.


National Long Distance: Fiber Optic Backbone across India.
Fixed-line Telephony across 5 states in Phase I
International Bandwidth Connectivity
- 7 Ku Band Satellite Earth Stations
-

I2i Undersea Fiber from Singapore to Chennai

Founded in 1995, Matrix introduced the concept of local connectivity in India, by


offering destination-specific mobile connections to international travelers. With a panIndia network of over 1000 professionals in areas of sales, marketing, customer service,
operations and logistics, Matrix has partnerships with over 30 country-specific
international service providers. The company is also a recipient of numerous Excellence
Appreciations in Sales and Marketing from many of its clientele. In May 2009 they
released the Deutsche Bank Matrix credit card.

1.1.2Partners
The company has a strategic alliance with SingTel. The investment made by SingTel is
one of the largest investments made in the world outside Singapore, in the company.

The companys mobile network equipment partners include Ericsson and Nokia. In the
case of the broadband and telephone services and enterprise services (carriers),
equipment suppliers include Siemens, Nortel, Corning, among others.

1.1.3Company Background
Matrix cellular Limited, a part of Matrix cellular, is Indias leading provider of
telecommunications services. The businesses at Matrix cellular have been structured into
three individual strategic business units (SBUs) mobile services, broadband &
telephone services (B&T) & enterprise services. The mobile services group provides
GSM mobile services across India in 23 telecom circles, while the B&T business group
provides broadband & telephone services in 94 cities. The Enterprise services group has
two sub-units carriers (long distance services) and services to corporate. All these
services are provided under the Matrix cellular brand.
GAGAN DUGGAL as he is called has at the age of 43 created a Telecom
Giant in India and international level. It has risen from humble beginnings in 1999s as
international sim card and 3G providers. Together with other foreign companies he has
raised $ 0.5 billion of which $ 100 million is still in the bank.
Indias premier telecom company in the field of telecom terminals and technology
tie ups with world leaders like Siemens, Goldstar, Tatacom and Casio. It is the first
company in India to export telephones to U.S.A and has finalized plans to
manufacture GSM terminals in India.
Matrix cellular controls about 20% of the Total Telecom market in India. As he puts it, it
was a mixture of vision, good luck and hard work by a team of about 10 12 senior

people. The early beginnings in 1985 were in manufacturing telephone handsets. They
did not have the expertise to do telephone exchanges, jelly- filled cables had become a
commodity and their capital investment was high.

Tele-Ventures is Indias leading private sector provider of telecommunications services


based on a strong customer base consisting of approximately 11.50 million total
customers which constitute, approximately 10.66 million mobile and approximately
836,000 fixed line customers, as of January 31, 2005.

1.1.4 Milestones
Telecom Services

Largest Private Telecom Service Provider in International level- more than

150,00,0subscribers.
MATRIX CELLULAR Biggest footprint in India covering 32 country and

largest GSM network with over 15000 users in abroad.


First & Largest Pvt. Company to launch Fixed line Service in India starting from

Delhi ncr Over 1000 subs.


First & only Indian company to operate Telecom Services outside India

Seychelles.
First Private Company to have Fiber Gateway for Data & Voice at Chennai & 7
Ku Band Gateway for Internet bandwidth.

1.2 SERVICES OFFERED

TELEVENTURES

10

Mobility Leaders

Infotel Leader

1.2.1 INTERNATIOANL SIM CARDS:


Cellular communication makes life easier. But it brings along the anxieties of escalating
bills, especially if you are a frequent traveller, since international roaming costs are
exorbitant.
Cut down your international mobile expenses by almost 85% with a country-specific
mobile connection from Matrix. Enjoy lower call rates, free incoming calls in most
countries and experience seamless connectivity. Matrix offers convenient mobile
solutions vis- -vis international roaming, calling cards, phone cards or pre-paid cards.
Benefits of a Matrix SIM card:
Local post-paid mobile number of the country you are travelling to
Offers up to 85% savings on international roaming bills
Free incoming calls in most countries
Free itemized bills or view your bills online
Convenience of carrying a local number before you travel abroad

11

Billing in Indian rupees


Delivery anywhere in India
Roam free with Matrix international roaming SIM cards in the following countries Argentina, Australia, Austria, Belgium, Brazil, Canada, China, France, Germany, Greece,
Hong Kong, Holland, Italy, Japan, Malaysia, Mauritius, Mexico, New Zealand,
Singapore, South Africa, South Korea, Spain, Switzerland, Sri Lanka, Taiwan, Thailand,
U.A.E., U.K. and U.S.A.

INDIAN SOLUTION:
Enjoy seamless connectivity and flexible post-paid talk plans in India with Matrix.
Become a new Vodafone post-paid mobile customer with Matrix.
Matrix is associated with one of the most dynamic and efficient networks in India Vodafone Essar. We provide local post-paid mobile services, Blackberry solutions and
data connections for Delhi and the National Capital Region.
Our post-paid connections come with all the facilities namely, national and international
roaming, data cards, GPRS and other Value-added services. That's not all! You get access
to 24x7 toll free customer care, get a dedicated Account Manager, and get value added
services activated at minimal time and enjoy many more conveniences.
Services:

12

Communicate, whenever you want to, not just in plain words, but also in more exciting,
innovative yet simple new ways. Choose from our range of services like Caller tunes,
Missed Call Information, Vodafone Alerts, and Call Filter Service.
Excellent customer service:
24/7 toll free customer care with dedicated account managers.

STUDENT MOBILE SERVICES:


Getting a post-paid mobile connection abroad could be a nightmare for students. They do
not have a credit history in their country of stay and could end up paying huge deposits
for a local SIM card. Prepaid SIM cards are also inconvenient. Avoid all hassles!

Get a Matrix student mobile connection before departure. They offer international SIM
cards for students going to U.K., U.S., Australia, France, Singapore and Germany.

They offer post-paid local mobile numbers with excellent tariff plans and free minutes of
talk time. Payments can be made in Indian Rupees. We also offer special offers for
parents going abroad to visit their children. With the facilities we offer, huge international
roaming bills, expensive call rates, limitations of pre-paid SIM cards and landlines will
be a thing of the past for the students.

13

MATRIX ONE SIM:

Matrix 1 SIM allows an Indian traveler to roam the world with a single mobile
connection. Our international roaming SIM card allows you to take your GSM
mobile phone overseas, without incurring high roaming charges.

All you need to do is replace your phone's existing SIM card with Matrix 1 SIM
card when you travel abroad. Receive free incoming calls in 50 countries. With a
Matrix 1 SIM international mobile service, enjoy seamless connectivity in over
130 countries.

The Matrix global SIM uses Call back technology to ensure you get the lowest
rates. It works like your normal mobile phone, with the exception of a minor
difference when making a call. Receiving a call on the SIM card is the same as
receiving a call on any normal mobile phone.

CORPORATE SOLUTION:

Matrix enables you to stay connected to your business when you are traveling
overseas. We offer a full range of voice and data communication solutions that are
tailored to fit your particular needs.

14

In a fast-changing world, we offer customized solutions geared to the customers


individual needs. As the customer, you choose products and services that best suit
your requirements and budget.

3G CARD SLOUTION:
Get instant access to your e-mail and internet when traveling abroad. With a Matrix 3G
data card, you can now work anytime and anywhere; at mobile broadband speeds.
Matrix international 3G data cards are the perfect solution if you:
Travel regularly - get to your hotel and check your emails
Study - get your work done in the library or Wi-Fi hot spots
Receive high internet usage bills while traveling abroad.

1.2.2 MATRIX ADVANTAGE:


Total flexibility for your business:
As mobile phone markets continue to change, retaining existing customers while adding
new ones requires intelligent, aggressive marketing strategies. Your success depends
largely upon retaining and growing your customer base.

Matrix can provide your company the backbone to expand your network coverage and
help you increase SIM stocks of global networks which is required to enter the market as

15

the low-cost player. This will give you the ability to deliver your product to more
people, faster and more reliably, and without investment in any costly infrastructure.
Key benefits:
Worldwide coverage
through direct operator relationships and partner channels, we have got it covered! We
can provide country-specific Post-Pay-Sims for more than 25 networks around the world.
Taking the cost out of your procurement system:
Matrix covers the complete aspect of purchasing and supply management. Dealing with
various international networks is a time-consuming process that can run into months and
possibly with no contract at the end. We spend our time and procurement expertise to
source SIMs for our multiple clients. In addition there is no minimum order quantity; you
can order either one or hundred.
Low tariffs:
The bottom line is lower calling costs. Our understanding of the mobile rental industry
enables us to negotiate better tariffs suitable for you. Due to the high volume of purchase,
(in most cases the rates we offer are cheaper than buying directly from the network) and
low operating costs (our back offices are in India), we can offer you some of the cheapest
call rates. Call volume is
Total flexibility for your business:

16

As mobile phone markets continue to change, retaining existing customers while adding
new ones requires intelligent, aggressive marketing strategies. Your success depends
largely

upon

retaining

and

growing

your

customer

base.

Matrix can provide your company the backbone to expand your network coverage and
help you increase SIM stocks of global networks which is required to enter the market as
the low-cost player. This will give you the ability to deliver your product to more
people, faster and more reliably, and without investment in any costly infrastructure.

1.2.3 FOR BUSINESS PURPOSE

MOBILE
We offer you mobile solutions targeted for your business needs. We create price
plans that work for your business along with a range of features.

VOICE
Our voice services give you the right tools, to suit the needs of small, medium and
large enterprises and to stay ahead.
PRA for COMPANY NAME/Group
1) PRI (PRIMARY RATE INTERFACE)
2) 30 Channels of 64 kbps on 2 pair of wires.
OFFICE SOLUTION:
Manage your business more efficiently and effectively, with Matrix cellulars
Office Solutions, Easy Mail and Data Card.
DATA & INTERNET:
They bring you a comprehensive suite of data technologies for all your strategic
connectivity needs.
1) Analog Phone Line
2) ISDN BRI
3) ISDN PRI DID/DOD Service
4) Host of Value Add Services
5) Voice Mail Service
6) CENTREX Facility

17

E-BUSINESS SERVICES
They offer you a range of services that help to keep your business running 24x7.

SATELLITE SERVICES
They provide you connectivity, where ever you take your business. Our Satellite
Services bring you the benefits of access in remote locations.

CARRIER SERVICES
Indias first private long distance communications service provider with worldclass Voice and Data communication services.

INTERNATIONAL SERVICES
Get the communication solutions, business needs, to stay connected worldwide
with their International Services.

1.3 Awards
Awards & Accolades
In the last 16 years, Matrix has carved a niche for itself as a telecom consultant to
International travellers. Matrix has always believed in innovating new products and
services to suit the market needs and enhancing the travel experience of every Indian
going abroad. The most important factor that contributed Matrix an award winning
company is its focus on smart and easy solutions for its customers.
Matrix has been acknowledged with many prestigious awards, such as:
Innovative Product International Mobile Connections and Data Products by
Economic Times Telecom Awards ("2011 & 2012")

18

HR Excellence Awards by Amity Business School (2011)


Emerging Company of the year by Voice & Data (2010)
Leadership Award for Emerging Midsized Company by Amity Business School
(2010)
These awards re-affirm our dedicated efforts to set new industry standards and continued
efforts to grow up the ladder.

1.4 HEADQUATERS
MATRIX CELLULAR
Head Office
Matrix Cellular (International)
Services Pvt Ltd
7 Khullar Farms, Mandi Road
Mehrauli, New Delhi
Email: info@matrix.in
Contact No: 0911126800000
Zip Code: 110030

Branch Office
Space No. 17 to 24,
Ground Floor, Block "F",
American Plaza,
International Trade Tower,
19

Nehru Place,
New Delhi
Contact No: 9873250513
Zip Code: 110019
International Offices
Bangladesh
Matrix Cellular,
69, Suhrawardy Avenue
Baridhara
Dhaka 1212
Bangladesh
Contact No: +880 1975006186 and +880 1975006185
Singapore
Matrix Cellular Pte.
1003 Bukit Merah Central
Singapore 159836
Contact No: +65 6818 2600
Email: info@matrix.sg

20

1.5 TELECOM COMPETITOR IN INDIA OF MATRIX


MATRIX:
March 1995, Matrix came into existence.
Indias 1stcompany to venture into such a niche segment Country specific Sim card.
By 2007 Pan India presence.

UNICONNECT
Started in October 1996
2nd company to venture in this market segment.
UNICONNECT was established in 1983 as an investment vehicle, however, it
eventually moved into the emerging telecom sector

CLAY TELECOM:
1stApril 2000 Clay telecom was setup.
Incepted nearly a decade ago, Clay Telecom is a dynamic global provider of wireless
telecom solutions - catering to both B2B and B2C market segments

RELIANCE COMMUNICATIONS:
27 December 2002, Reliance infocomm inaugurated.

21

June 2008 Reliance touched 50 million mark.


Launched its Country specific sim cards business a year ago in the name
of RELIANCE PASSPORT SERVICE

1.6 Esteemed Clients of Matrix Embassies and High Commissions:


US Embassy
British High Commission
German Embassy, etc.

Banks:
American Express
Citibank, etc.

Media:
BBC
CNN
Times of India, etc.

Corporate Houses:
Reliance Industries
Hero Honda
TATA Motors, etc.

22

Travel Fraternity:
British Airways
Jet Airways

CHAPTER -2
SWOT ANALYSIS

23

2.1 STRENGTH

1. Company is 15 years old in this field, it means 15 years of excellence.


2. Company has more than 15 branches in 15 different cities which means more
reach to its clients.
3. First company to launch country specific Sim cards and data cards in International
Sim Cards business
4. Company has 85% market share in this business in other words they are the
market leaders.

2.2 OPPORTUNITIES

1. Mergers and Acquisition is possible as Indian telecom market is moving.


2. Proper catering the telecom Requirement for every segment in the market.
3. Doing business with the students segment who are going abroad for higher studies
with proper discounts and facilities.

24

4. 6,000,000 people fly abroad every year this can be tapped by Matrix.

2.3 WEAKNESSES

1. Future market is unpredictable.


2. Lack of proper media plan for spreading awareness in the company.
3. Less employee strength.
4. Dissatisfied workforce.
5. Mobile number portability is missing.

2.4 THREATS

1. New players like UNI connect, Clay, Reliance Communication and Airtel are
entering into the market.
2. Changes in Government Policy.

25

LITERATURE REVIEW
John Mills and Ken Platts- Performance measurement (as promoted in the literature and
practiced in leading companies) refers to the use of a multi-dimensional set of
performance measures. The set of measures is multi-dimensional as it includes both
financial and non-financial measures, it includes both internal and external measures of
performance and it often includes both measures which quantify what has been achieved
as well as measures which are used to help predict the future.
Mike Bourne* and Andy Neely- Performance measurement is now being used to assess
the impact of actions on the stakeholders of the organization whose performance is being
measured. Although this can be considered as quantifying the efficiency and
effectiveness of action, in the case of measuring the impact of the organizations
performance on customer satisfaction, it is not as obvious in the cases of measuring the
impact of the organizations actions and performance on employee satisfaction or local
community satisfaction.

26

Performance analysis is the process of identifying the financial strengths and


weaknesses of the firm by properly establishing the relationship between the items of
balance sheet and profit and loss account. It also helps in short-term and long-term
forecasting and growth can be identified with the help of financial performance analysis.
The dictionary meaning of analysis is to resolve or separate a thing in to its element or
components parts for tracing their relation to the things as whole and to each other.

RATIO ANALYSIS- According to Myers- Ratio analysis is a study of relationship


among various financial factors in a business
In simple terms, ratio analysis is a technique of analysing financial statements by
computing ratios.
COMMON SIZE- Financial statements when read in absolute figure are not easily
understandable. They are even miss leading. Each items of asset is converted in to
percentage to total asset and each item of capital and liabilities is expressed to total
liability and capital fund. Thus the whole balance sheet is converted in to percentage form
i.e., every individual item stated as a percentage of total 100.such converted balance sheet
is known as common size balance sheet. The percentage so calculated can be easily
compared with the corresponding percentages in some other period.

27

CHAPTER -3
RESEARCH
METHODOLOGY
28

3.1 RESEARCH METHODOLOGY

3.1.1 RESEARCH DEFINITION


The word research is derived from the Latin word meaning to know. It is a systematic and
a replicable process, which identifies and defines problems, within specified boundaries.
It employs well-designed method to collect the data and analyses the results. It
disseminates the findings to contribute to generalize able knowledge. The main
characteristics of research presented below are:

Systematic problem solving which identifies variables and tests relationships


between them.

Collecting, organizing and evaluating data.

Logical, so procedures can be duplicated or understood by others

Empirical, so decisions are based on data collected

29

Reductive, so it investigates a small sample which can be generalized to a larger


population

Replicable, so others may test the findings by repeating it.

Discovering new facts or verify and test old facts.

For the proper analysis of data simple statistical techniques such as percentage
were use. It helps in making more generalization from the data available. The data
which will be collected from a sample of population was assumed to be
representing entire population was interest.

Demographic factors like age , income and educational background was used for
the classification purpose.

3.1.2 SOURCES OF DATA

The study undertaken is based on the secondary data i.e data from authenticated websites
and journals and company itself for the latest updates just to gain an insight for the views
of various experts.

3.1.3 METHODOLOGY & PRESENTATION OF DATA

The data collected is in the form of tables to make the things presentable and more
effective. The results will be shown by tables which will help me out in making easy and
effective presentation and hence results will be obtained.

30

3.1.4 TOOLS AND TECHNIQUES USED FOR ANALYSIS

In this study the technique used for interpreting the results are Common Size statements
of Balance Sheet and Profit & Loss Account, Ratios (profitability ratios and liquidity
ratios etc.)

3.1.4(A) RATIO ANALYSIS


MEANING
According to Myers- Ratio analysis is a study of relationship among various financial
factors in a business
In simple terms, ratio analysis is a technique of analysing financial statements by
computing ratios.

ADVANTAGES OF RATIO ANALYSIS


1) Useful in analysis of Financial Statements
2) Useful in simplifying Accounting Figures
3) Useful in assessing the operating efficiency of business
4) Useful for forecasting
5) Useful in locating the weak areas
6) Useful in inter firm and intra firm comparisons

31

LIMITATIONS OF RATIO ANALYSIS


1) False result
2) Qualitative Factors are ignored
3) Lack of standard ratios
4) May not be comparable
5) Effect of price level changes
6) Window dressing
7) Personal bias
3.1.4(B) COMMON SIZE STATEMENTS

MEANING
Common size financial statements are the statements in which amounts of individual
items of Balance Sheet and Statement of profit and Loss for two or more years are
written. These amounts are further converted into percentages to a common base.

OBJECTIVES OF COMMON SIZE STATEMENTS


1) To analyse changes in individual items of Income Statement and Balance Sheet.
2) To study the trend in different items of Income Statement and Expenses, assets
and equity and liabilities.
3.1.5 LIMITATIONS
This report is based on the two months work done at Time Matrix Cellular
Services Pvt. Ltd. The period in consideration is less. More work needs to be carried in
this field on a regular basis to get accurate results.

32

CHAPTER -4
DATA ANALYSIS

33

Table4.1: BALANCE SHEET OF YEARS 2012 & 2013

PARTICULARS

Mar '13

Mar12

Total Share Capital


Equity Share Capital
Share Application Money

1,898.80
1,898.80
0.00

1,898.80
1,898.80
0.00

Preference Share Capital


Init. Contribution Settler

0
0.00

0.00
0.00

Preference Share Application Money

0.00

0.00

Employee Stock Opiton

0.00

0.00

Reserves

48,712.50

46,868.00

Revaluation Reserves
Networth

0.00
50,611.30

0.00
48,766.80

Secured Loans

12,089.30

7,670.50

Unsecured Loans
Total Debt
Minority Interest
Policy Holders Funds
Group Share in Joint Venture
Total Liabilities

56,933.90
69,023.20
2,769.50
0.00
0.00
122,404.00

48,979.60
56,650.10
2,856.30
0.00
0.00
108,273.20

Sources Of Funds

34

PARTICULARS

Mar '13

Mar '12

Gross Block

133,582.10

128,874.30

Less: Accum. Depreciation


Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance

0.00
133,582.10
0.00
1,815.60
130.80
6,373.50
2,030.00

0.00
128,874.30
0.00
622.40
213.90
5,492.90
883.90

Total Current Assets

8,534.30

6,590.70

Loans and Advances


Fixed Deposits

13,129.60
0.00

10,345.40
73.60

Total CA, Loans & Advances


Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Minority Interest
Group Share in Joint Venture
Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs.)

21,663.90
0.00
33,804.60
853.00
34,657.60
-12,993.70
0.00
0.00
0.00
122,404.00
21,526.60
133.27

17,009.70
0.00
38,115.20
118.00
38,233.20
-21,223.50
0.00
0.00
0.00
108,273.20
16,509.40
128.42

Application Of Funds

35

Table4.2: COMMON SIZE STATEMENT (BALANCE SHEET OF YEARS 2012 &


2013)

PARTICULARS

Mar'13

Mar'12

SOURCES OF FUNDS
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Init. Contribution Settler
Preference Share Application Money
Employee Stock Option
Reserves

1.55
1.55
0
0
0
0
0
39.8

1.75
1.75
0
0
0
0
0
43.3

Revaluation Reserves

36

Net worth
Secured loans
Unsecured Loans
Total Debt
Minority Interest
Policy Holders Funds
Group Share in Joint Venture
Total Liabilities
PARTICULARS

41.35
9.88
46.51
56.39
2.26
0
0
100
Mar'13

45.04
7.08
45.24
52.32
2.64
0
0
100
Mar'12

APPLICATION OF FUNDS
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixes Deposits
Total CA, Loans & Advances
Deferred Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets
INTERPRETATION:

109.13
0
109.13
0
1.483
0.106
5.21
1.66
6.97
10.73
0
17.7
0
27.62
0.7
28.31
-10.61
0
100

119.02
0
119.02
0
0.57
0.197
5.07
0.82
6.09
9.55
0.07
15.7
0
35.2
0.12
35.31
-19.6
0
100

1) Share capital
In year 2012 Total share capital is 1.75% where as in year 2013 it is comparatively
less i.e. 1.55% which means that may be the funds are used to buy the fixed assets of
the company. There is neither share application money nor preference share capital
nor preference share application money. So, from this we can that the equity share
capital has been reduced by 0.2% in 2013.

37

2) Reserves
In the year 2012, reserves were 43.3% and is has been reduced in 2013 i.e. in 2013
the reserves are 39.8% which means that reserves are utilized by the company for
some purpose therefore, it is reduced by 3.5%. There are no revaluation reserves in
the company.

3) Net Worth
Due to the reduction in total share capital and reserves, the overall net worth of the
company also reduced. It is seen that in 2012 the net worth was 45.04%, whereas in
2013 it is reduced to 41.35% only. However, a deficit net worth can negatively
influence future financing opportunities and stifle future business growth.

4) Debt
The secured as well as the unsecured loans have been increased in 2013. The secured
loans are increased by 2.8% where as the unsecured loans are increased by 1.27%.
Increase in secured loans is more than unsecured loans. Secured loans are generally
taken from banks and unsecured loans from any third party.

5) Gross block
In 2012 it was 119.02% and in 2013 it is 109.13% i.e. there is reduction in gross
block or we can say the fixed assets at cost. This may be due the reason that the
company has sold some of its fixed assets. There is a reduction of 9.89%.

38

6) Investments
Investments of the company are increased in the year 2013 i.e. 1.48% where as in
2012 it was just 0.57%. Therefore there is an increase in investment by 0.91% which
is good for a company. The company can invest in property, equity instruments,
debentures or bonds or mutual funds.

7) Inventories
In year 2012 the inventories were 0.197% as compared to 0.106% in the year 2013.
There is decrease in inventories by 0.091%. Decrease in inventory indicates that
inventory level are not keeping pace with the sales and the cost of goods sold is more
and there is less level of stock available in the company at present.

8) Sundry Debtors
In 2012 the debtors were 5.07% which is increased to 5.21% in 2013. This is good for
a company to have more debtors i.e. more inflow of cash in the business which
ultimately increase the assets of the company. There is an increase by 0.0.41% in the
debtors of the company.

9) Cash and Bank Balances


Again there is an increase in cash and bank balances of the company i.e. in 2012 it
were 0.82% and in 2013 it has increased to 1.66%. That means there is more inflow
of money into the business. The increase of cash and bank balance is by 0.84%.

39

10) Total Current Assets


As there is increase in investments, cash and bank balance and sundry debtors but
reduction in inventories, the overall affect to current assets was positive i.e. there is an
increase in the current assets of the company. Each item affects the level of current
assets and therefore the increase or decrease percentage as well.

11) Loans and Advances


Again there is increase in loans and advances. In 2012 they were 9.55% and in 2013 it
is increased to 10.73%, thus there is an increase of 1.18% in loans and advances. In
assets side the loans and advances indicates the loans or advances to be received or
received by the company from other sources. These are of short term in nature, i.e. the
amount which is expected to be realized within 12 months from the date of balance
sheet or within the operating cycles.

12) Total Current Assets, Loans and Advances


With the increase or decrease of items under current assets, loans and advances, the
effect on total of both is positive, i.e. there is an increase of 2%. In 2012 they were
15.70% and in 2013 it has increased to 17.70%. This increase would help in
increasing the assets of the company.

13) Current Liabilities

40

In 2012, current liabilities were 35.20% and in 2013 it has reduced to 27.62%. So
there is a decrease in current liabilities by 7.58%. Decrease in current liabilities is
good for the company as one of the aims of the company is to reduce the amount of
liabilities. Current liabilities include unpaid dividends, unpaid interest, income
received in advance or income accrued and due on borrowings, provision for doubtful
debts etc.

14) Provisions
In 2012 provisions were 0.12% only and in 2013 it has increased to 0.70%. Thus
there is an increase of 0.58%. This figure is added to current liabilities to get the total
of current liabilities and provisions.

15) Total Current Liabilities and Provisions


With the increase in provision and decrease in current liabilities, the overall effect of
current liabilities and provisions is negative i.e. there is reduction in current liabilities
and provisions by 7%, which is good for a company.
Table4.3: PROFIT & LOSS ACCOUNT OF YEARS 2012 & 2013

PARTICULARS

Mar13

Mar12

Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure

71,505.80
0
71,505.80
-1,776.70
0.00
69,729.10

59,467.20
0.00
59,467.20
1,722.10
0.00
61,189.30

41

Raw Materials
Power & Fuel Cost
Employee Cost
Other manufacturing expenses
Selling and Admin Expenses
Miscellaneous expenses
Preoperative Exp capitalised
Total Expenses

0.00
0.00
3,515.90
25,495.90
7,400.40
18,781.70
0.00
55,196.90

816.90
0.00
3,278.40
20,188.10
5,550.50
9,661.90
0.00
39,495.80

Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Minority Interest
Share of P/L Of Associates
Net P/L After Minority Interest & Share Of

23,704.90
21,928.20
4,082.80
17,845.40
13,368.10
0.00
4,477.30
282.60
4,759.90
2,542.80
2,217.10
0.00
0.00

19,971.40
21,693.50
2,534.90
19,158.60
8,698.00
1,508.60
8,952.00
38.50
8,990.50
1,817.50
7,173.00
0.00
0.00

Associates
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue
Earning Per Share (Rs.)
Equity Dividend (%)
Book Value(Rs.)

1,934.50
47,800.90
0.00
379.80
61.60

7,128.80
38,678.90
0.00
379.80
61.60

37,975.30
5.84
0.00
133.27

37,975.30
18.89
0.00
128.42

Table4.4: COMMON SIZE STATEMENT (PROFIT & LOSS ACCOUNT OF


YEARS 2012 & 2013)

PARTICULARS
Income
Sales Turnover

42

Mar'13

Mar'12

100

100

Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other manufacturing expenses
Selling and Admin Expenses
Miscellaneous expenses
Preoperative Exp capitalised
Total Expenses
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
extra-ordinary items
PEOT (Post Extra-ord Items)
Tax
Reported Net Profit
Minority Interest
Share of P/L Of Associates
Net P/L After Minority Interest & Share Of

0
100
-2.48
0
97.51

0
100
2.89
0
102.9

0
0
4.92
35.65
10.35
26.27
0
77.19
33.15
30.66
5.71
24.96
18.69
0
6.26
0.39
6.65
3.56
3.1
0
0

1.37
0
5.51
33.94
25.8
16.24
0
66.42
33.59
36.47
4.26
32.22
14.62
2.57
15.05
0.06
15.12
3.06
12.06
0
0.009

Associates
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per sher data (annualised)
Shares in issue
Earning Per Share (Rs)
Equity Dividend (%)

2.71
66.85
0
0.53
0.09

11.99
65.04
0
0.64
0.1

53.11
0.008
0

63.86
0.032
0

INTERPRETATION:

43

1) Sales Turnover
In year 2012 the amount of sales was Rs 59,467.20 and in year 2013 it is 71,505.80.
That means there is an absolute increase in the sales of the company. Now taking
sales as base and calculating the percentage of other items.

2) Total Income
In year 2012 it was 102.30% whereas in year 2013 it is reduced to 97.51%. This
decrease is due to other incomes (except sales turnover, stock adjustments and excise
duty) that are in negative in year 2013.

3) Raw Material
In year 2012 the raw material with the company was 1.37% and in year 2013 it is
totally zero i.e. there is no raw material with the company at present. Thus the raw
material is reduced by 1.37%.

4) Employee Cost
In year 2012 the employee cost was 5.51 and in 2013 it was decreased to 4.92%. So
there is a reduction of total 0.59%.

5) Other manufacturing Expenses

44

In year 2012 it was 33.94% and it increased in 2013 to 35.65% which means an
increase of 1.71% in other manufacturing expenses (except raw material, power and
fuel and employee cost).

6) Miscellaneous Expenses
In 2012 it was 16.24% and in 2013 it was increased to 26.27%. This means that there
were many other expenses occurring in the business which cannot be listed. There is
an increase of 10.03% in miscellaneous expenses.

7) Total Expenses
With the increase or decrease in the items under expenditure head, the overall effect
of expenditure is positive. It has increased by 10.77%. In 2012 it was 66.42% and in
2013 it is 77.19%. That means that with the reduction in total incomes, the
expenditure of the company is increasing.

8) Operating profit
There is a marginal decrease in operating profit as in 2012 it was 33.59% and in 2013
it is 33.15% So there is a marginal reduction of 0.44% in operating profit.
PBDIT(profit before dividend, interest and tax)- it is reduced by 5.81%
Interest- it is increased by 1.45%
PBT(profit before tax)- reduced by 8.79%
PEOI(post extra ordinary items)- it is again reduced by 8.47%
9) Net Profit

45

With the increase or decrease of items under operating profit the overall result on net
profit is hugely affected in a negative manner. It means that the net profit is reduced
by 8.96% which is a very huge value. This means that the profit earned is not that
much high as in the previous years. So the company needs to take necessary actions
to reduce the expenditure and increase the incomes so that the profits would be more.

10) Earning Per Share


EPS also reduced by 0.024% as the shares were less issued in the year 2013 as
compared to 2012. In 2012 EPS was 18.89 and in 2013 it was reduced to 5.84 only.
As in 2013 the shares issued (%) are 53.11% and in 2012 it was 63.86%

Table4.5: FINANCIAL RATIOS OF THE YEARS 2012 & 2013

46

1) TURNOVER RATIOS/ MANAGEMENT EFFICIENCY RATIOS


INVENTORY TURNOVER RATIOS
Inventory turnover ratios indicated the efficiency of the firm in producing and selling
its products. It is calculated by dividing the cost of goods sold by average inventory:
Inventory TOR = Cost of goods sold
Average Inventory
PARTICULARS
INVENTORY TOR

Mar12
278.01

Mar13
546.68

INTERPRETATION- It was observed that inventory turnover ratio indicated maximum


sales achieved within the minimum investment in the inventory. It indicated that in
previous year 2012 the ratio was less which is 278.01% as compared to the current year
2013 which is 546.68%. According to the general rule high inventory turnover is
desirable but high inventory turnover ratio may not necessary indicates the profitable
situation.

RECEIVABLE TURNOVER RATIOS


The derivation of this ratio is made in the following way:

47

Receivable Turnover ratio = Gross Sales


Average account receivables
Debtors turnover indicates the number of times debtors turnover each year. Generally the
higher the value of debtors turnover, the more is the management of credit.
Debtors turnover ratio = __365 days______
Receivable TOR

PARTICULARS
RECEIVABLE TOR

Mar12
13.71

Mar13
12.05

INTERPRETATION: It was observed that from debtor turnover ratio that receivables
around the sales were less. Receivable turnover ratio in 2012 was increased because
average debtors were reduced and net sale is being increased. It concludes that over
investment in the debtors which adversely affect on requirement of the working capital
finance and cost of such finance.

CURRENT ASSET TURNOVER RATIOS


Current asset turnover ratio is calculated to know the firms efficiency of utilizing the
current assets. Current assets includes the assets like inventories, sundry debtors, bills

48

receivable, cash in hand or bank, marketable securities etc. It is calculated by dividing


the sales with current assets:
Current Assets TOR = Sales_____
Current Assets

PARTICULARS
CURRENT ASSETS TOR

Mar13
0.62

Mar12
0.74

INTERPRETATION- It was observed that current assets for does not indicate any trend
over a period of time. Turnover ratio in year 2012 was 0.74 which decreased in the
current year 2013 i.e. 0.64 because of high cash balance. Cash did not help to increase in
sales volume, as cash is not earning asset.

FIXED ASSET TURNOVER RATIOS


Fixed asset turnover ratio is calculated to know the firms efficiency of utilizing the
fixed assets. Fixed assets include the assets like plant and machinery, building,

49

patents, trademarks, computers etc. It is calculated by dividing the sales with fixed
assets:
Fixed Assets TOR = Sales_____
Fixed Assets

PARTICULARS
FIXED ASSETS TOR

Mar13
1.06

Mar12
0.91

INTERPRETATION- It was observed that fixed assets for does not indicate any trend
over a period of time. Turnover ratio in year 2012 was 0.91 which increased in the current
year 2013 i.e. 1.06 because of purchase of any asset.

2) LIQUIDITY RATIOS
CURRENT RATIO
This ratio shows short term financial soundness of the business. It is calculated by
dividing current assets with current liabilities:

50

CURRENT RATIO = CURRENT ASSETS


CURRENT LIABILITIES

PARTICULARS
CURRENT RATIO

Mar13
0.38

Mar12
0.44

INTERPRETATION- According to general rules, higher ratio means better capacity to


meet its current obligations. The ideal current ratio is 2:1. Here in 2012 the ratio is 0.44:1
and in 2013 it has reduced to 0.38:1 which means its less than the ideal ratio. In this case
the ratio doesnt show the idealness of funds.

QUICK RATIO
This ratio is a fairly stringent measure of liquidity. It is calculated by dividing quick
assets with current liabilities. It is based on those current assets which are highly liquid.
Quick assets are calculated by subtracting inventories, prepaid expenses and fictitious
assets from current assets.

51

QUICK RATIO = QUICK ASSETS


CURRENT LIABILITIES

PARTICULARS
QUICK RATIO

Mar13
0.47

Mar12
0.32

INTERPRETATION- According to general rules, the ideal quick ratio is 1:1. Higher the
quick ratio, better the short term financial position. Here in 2012 the ratio is 0.32:1 and it
has increased to 0.47:1. So its increase is good but it should be 1:1 for a company like
Matrix.

3) SOLVENCY RATIOS
DEBT- EQUITY RATIO
This ratio assesses the long term financial position and soundness of the long term
financial policies of the firm. It is calculated by dividing debt with equity:
DEBT EUITY RATIO = DEBT__
EQUITY

52

PARTICULARS
DEBT EQUITY RATIO

Mar13
1.16

Mar12
1.36

INTERPRETATION- According to general rules, lower the debt equity ratio, higher the
degree of protection enjoyed by the lenders. In this case also, in 2012 the ratio was 1.36
and in 2012 it has been decreased to 1.16. So it is good for the company as the lenders
enjoy the degree of protection.

And, the long term debt equity ratio is:

PARTICULARS
LONG TERM

Mar13
DEBT 1.16

Mar12
1.36

EQUITY RATIO

INTEREST COVERAGE RATIO


This ratio shows how many times the interest charges are covered by profits available
to pay interest charges. It is calculated by dividing profit before interest and tax
(PBIT) with interest:
INTEREST COVERAGE RATIO = PROFIT BEFORE INTEREST AND TAX
INTEREST

PARTICULARS
Mar13
INTERST
COVERAGE 8.55

Mar12
5.37
53

RATIO
INTERPRETATION- According to general rules, higher the ratio, more secure the lender
is in respect of payment of interest regularly. In this case the ratio in 2013 is more than in
2012 by 3.18 times. Individually in year 2013 its good as it is almost the ideal ratio for
interest coverage.

4) PROFITABILITY RATIOS
GROSS PROFIT RATIO
This ratio indicates the relationship between the gross profit and net sales. Where
gross profit the difference between net sales and cost of goods sold. It is calculated by
dividing gross profit with net sales and multiplying it by 100. It is representes in
percentage (%) form.
GROSS PROFIT RATIO = GROSS PROFIT

* 100

NET SALES

PARTICULARS

Mar13

Mar12

54

GROSS PROFIT RATIO

18.95

14.45

INTERPRETATION- According to general rules, higher the ratio, lower the cost of goods
sold. This is true in this case as here also the gross profit in 2013 is much higher than in
the year 2012 so the organization enjoys the advantage of lower cot of goods sold.

OPERATING RATIO
This ratio is calculated to assess the operational efficiency of the business. Where
operating expenses are calculated by adding employees benefit expenses and other
expenses (other than non operating expenses). It is calculated by dividing operating
profit with sales and multiplying it by 100. It is represented in percentage (%) form.

OPERATING RATIO = OPERATING PROFIT

* 100

SALES

PARTICULARS
OPERATING RATIO

Mar13
33.15

Mar12
33.58

55

INTERPRETATION- According to general rules, a decline in operating ratio is better


because it means higher margin and thus more profits. Here in this case also the ratio
is declining by 0.38% which means that there is not much higher margin which
ultimately increases the profits not by much value.

NET PROFIT RATIO


This ratio indicates the relationship between the net profit and net sales. It is
calculated by dividing net profit with net sales and multiplying it by 100. It is
represented in percentage (%) form. It indicates overall efficiency of the business.
NET PROFIT RATIO = NET PROFIT

* 100

NET SALES

PARTICULARS
NET PROFIT RATIO

Mar13
11.95

Mar12
7.05

INTERPRETATION- According to general rules, higher the net profit ratio, better the
business. Here in this case also the ratio is higher in 2013 i.e. 11.95% as compared to
7.05% in 2012.

56

RETURN ON CAPITAL EMPLOYED


This ratio assesses the overall performance of the enterprise. It measures how efficiently
the resources entrusted to the business are used. It is calculated by dividing profit before
interest, tax and dividend by capital employed and further multiplying it by 100. it is also
represented in percentage form (%). It is also known as return on investment (ROI).

ROCE (ROI) = PROFIT BEFORE INTEREST ,TAX AND DIVIDEND


CAPITAL EMPLOYED

PARTICULARS
RETURN ON

Mar13
CAITAL 8.86

Mar12
9.72

EMPLOYED

57

* 100

INTERPRETATION- In this case, the ROI in 2013 is little less than in 2012. Which
means that the overall performance in the current year is not that good than in the
previous year.

FINDINGS
&
CONCLUSION

58

5.1 FINDINGS
1) In year 2012 Total share capital is 1.75% where as in year 2013 it is comparatively
less i.e. 1.55% which means that may be the funds are used to buy the fixed assets of
the company. So, from this we can that the equity share capital has been reduced by
0.2% in 2013.

2) In the year 2012, reserves were 43.3% and is has been reduced in 2013 i.e. in 2013
the reserves are 39.8% which means that reserves are utilized by the company for
some purpose therefore, it is reduced by 3.5%. There are no revaluation reserves in
the company.

3) Due to the reduction in total share capital and reserves, the overall net worth of the
company also reduced. However, a deficit net worth can negatively influence future
financing opportunities and stifle future business growth.

59

4) There is reduction in gross block or we can say the fixed assets at cost. This may be
due the reason that the company has sold some of its fixed assets. There is a reduction of
9.89%.

5) Investments of the company are increased in the year 2013 i.e. 1.48% where as in 2012
it was just 0.57%. Therefore there is an increase in investment by 0.91% which is good
for a company.
6) Again there is an increase in cash and bank balances of the company i.e. in 2012 it
were 0.82% and in 2013 it has increased to 1.66%. The increase of cash and bank balance
is by 0.84%.

7) As there is increase in investments, cash and bank balance and sundry debtors but
reduction in inventories, the overall affect to current assets was positive i.e. there is an
increase in the current assets of the company. Each item affects the level of current assets
and therefore the increase or decrease percentage as well.

8) In 2012, current liabilities were 35.20% and in 2013 it has reduced to 27.62%. So there
is a decrease in current liabilities by 7.58%. Decrease in current liabilities is good for the
company as one of the aims of the company is to reduce the amount of liabilities. Current
liabilities include unpaid dividends, unpaid interest, income received in advance or
income accrued and due on borrowings, provision for doubtful debts etc.

60

9) In case of total income, it is reduced to 97.51%. This decrease is due to other incomes
(except sales turnover, stock adjustments and excise duty) that are in negative in year
2013.

10) With the increase or decrease in the items under expenditure head, the overall effect
of expenditure is positive. It has increased by 10.77%. In 2012 it was 66.42% and in 2013
it is 77.19%. That means that with the reduction in total incomes, the expenditure of the
company is increasing.
11) There is a marginal reduction of 0.44% in operating profit.
PBDIT(profit before dividend, interest and tax)- it is reduced by 5.81%
Interest- it is increased by 1.45%
PBT(profit before tax)- reduced by 8.79%
PEOI(post extra ordinary items)- it is again reduced by 8.47%

12) With the increase or decrease of items under operating profit the overall result on net
profit is hugely affected in a negative manner. It means that the net profit is reduced by
8.96% which is a very huge value.

13) It was observed that from debtor turnover ratio that receivables around the sales were
less. Receivable turnover ratio in 2012 was increased because average debtors were
reduced and net sale is being increased.

61

14) It was observed that fixed assets for does not indicate any trend over a period of time.
Turnover ratio in year 2012 was 0.91 which increased in the current year 2013 i.e. 1.06
because of purchase of any asset.

15) Here in 2012 the ratio is 0.44:1 and in 2013 it has reduced to 0.38:1 which means its
less than the ideal ratio. In this case the ratio doesnt show the idealness of funds.

16) Here in 2012 the ratio is 0.32:1 and it has increased to 0.47:1. So its increase is good
but it should be 1:1 for a company like Matrix.

17) Here the gross profit in 2013 is much higher than in the year 2012 so the organization
enjoys the advantage of lower cot of goods sold.

18) Here in this case also the ratio is declining by 0.38% which means that there is not
much higher margin which ultimately increases the profits not by much value.

62

5.2 CONCLUSION
Competition in telecom industry is heating up its time for Indian telecom players also to
align up in the new dynamic business environment.
Telcom majors should think to launch the product according to the needs of customers to
satisfy them and make them brand loyal as very soon this blue ocean of Indian telecom
scenario will convert into red ocean where the loss of is the gain of other .They should
also think for searching new space or we can say either creating a new blue space to
sustain their growth in long run.
There is more room for data analysis but the rest of the part is beyond the scope of this
project report According to the results, the most important determinant for consumers are
price and sacrifice perception (monetary and non-monetary sacrifice), which in
perception. These are periodical fixed cost, minute or traffic charge and opening cost
when purchasing mobile phone connection. The results indicate that the per second
charge is the most influential factor when a customer assesses to purchase. The second

63

most important factor is the periodical fixed cost and another factor is the opening cost.
These indicate, not surprisingly, that communication firms need to deeply consider. Also,
this indicates that a lot of effort must be put in the pricing strategy.
Quality of service and the ability to attract and retain customers dictate the success or
failure of next-generation communications service providers. In todays competitive
environment, customers are quick to abandon services that do not meet expectations.
The ease with which customers can switch from their current service to another, demands
that providers deliver the highest possible levels of service quality and performance. To
be successful, communications service providers must deliver positive customer
experiences with rich, value-added services supported by comprehensive service quality
management. To this effect-Mobile service has experienced the negative attributes of not
being customer focused and realizes that quality is an attribute that creates customer
satisfaction profitably. Therefore quality must be fused with all resources channelled
towards their customers.

64

BIBLIOGRAPHY

Documents:

Annual reports from the company journal(2012-2013)


Annual reports from the company journal(2011-2012)
Personal discussion with the executives and staff members
Management and other reports
Website
http://www.matrix.in/About-Matrix/Company-Profile
http://www.moneycontrol.com/financials/matrixcellular/consolidated-balance-sheet/BA12

http://www.moneycontrol.com/stocks/company_info/print_main.php

65

http://www.moneycontrol.com/financials/matrixcellular/profit&lossaccount/PL12

66