Summer Training Report

Shriram Value Services

Title: Training Industry Analysis and Preparation of Balance Sheet for Learning and Development Solutions for Shriram Value Services

IILM INSTITUTE OF HIGHER EDUCATION NEW DELHI Submitted by: Sagar Talreja

PG20101248

DECLARATION FORM
I hereby declare that the Project work entitled TRAINING INDUSTRY ANALYSIS AND PREPARATION OF BALANCE SHEET FOR LEARNING AND DEVELOPMENT SOLUTIONS OF SHRIRAM VALUE SERVICES submitted by me for the Summer Internship during the Post Graduate Program to IILM Institute for Higher Education is my own original work and has not been submitted earlier either to IILM or to any other Institution for the fulfillment of the requirement for any course of study. I also declare that no chapter of this manuscript in whole or in part is lifted and incorporated in this report from any earlier / other work done by me or others. Signature of Student: Name of Student: Sagar Talreja Kumar Date: Place: Lodhi Road Designation: Senior Manager Date: Place: Signature of Company Mentor: Name of Company Mentor: Jayant

ACKNOWLEDGMENT
Summer internship is one of the important part of MBA course, which has helped me to learn a lot experiences which will be beneficial in my succeeding career. I am thankful to Mr. Jayant Kumar, Senior Manager, Shriram Value Services for his interest, constructive criticism, persistent encouragement and untiring guidance throughout the development of the project. It has been a great privilege to work under his guidance. Further I would also like to extend my sincere thanks to Ms. Neha Lal for her valuable guidance, suggestion and outstanding mentorship.

Sagar Talreja

Executive Summary
The objective of this report is to understand the training industry and to analyze the financial statements of companies. As we all know the growth of India in various sectors is booming and with this growth there is a large requirement of training in various sectors. The main objectives of this report are: To understand the importance of training for company. To analyze the financial statements of different companies. After analyzing preparing balance sheet and profit and loss account for learning and development unit of Shriram Value Services. To understand the learning and development unit of a company. The scope of training industry in India. For this purpose online research was made about the training and training industry. Various companies were identified and their financial statements and financial ratios were analyzed. On the basis of the analysis the balance sheet and profit and loss account were prepared.

Index
S. No 1. 2. 3. TOPIC Company Profile Shriram Value Services Training and Training Industry Industry training organization Benefits of industry training Dynamics in training world Training consultancy Training outsourcing Major challenges Target audience Training tools Page No. 5 8 13 14 15 16 17 20 21 22 23 4. Financial Analysis of Companies Educomp Solutions Everonn Education NIIT Comparative Analysis of companies 25 25 42 45 46
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5.

Balance sheet and profit and loss account for learning and development unit Conclusion Reference

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6. 7.

52 53

Company Profile
Financial services

Commercial Vehicle Finance Life Insurance General Insurance Consumer Enterprise Finance Financial Product Distribution Retail Stock Broking Chit Funds Wealth Advisor

Shriram Group Of Companies

Non Financial Services

Information Technology Engineering Services PET and Flexible Packaging Drugs and Pharmaceuticals Medical Diagnostics Business Process Outsourcing Musical Instruments Infrastructure and Power Real Estate

Shriram group was established in 1974. It is a 45000 crore group which focuses on:

Shriram Commercial Vehicle Finance: Shriram Transport Finance Company Ltd. Indias largest player in commercial vehicle finance was established in the year 1979. The company has a network of 479 branches and service centers.

Shriram City: the Shriram group entered the consumer finance business in the year 2002 through Shriram City Union Finance Ltd., a stock exchange listed company. It makes money available to common people when they need it mostthrough personal loans, consumer loans, vehicle loans, jewel loans, small and medium scale enterprise finance etc.

Rambal Ltd.: It is a pioneer in manufacturing precision turned parts, shock absorbers, piston rods, motor shafts, etc. Established in 1957 company started exporting its products as early as 1971. Rambal was acquired by the Shriram
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group in 1987-88. Today, 40% of the companys production is exported to Canada, Dubai, Germany, Italy, Singapore, UK and USA.

Shriram Chits is the largest chit funds entity in India. The trusted household savings and investment services provider, a pioneer in micro finance in India. Shriram Chits started operations in 1974 with a single branch. Today Company operates in Andhra Pradesh, Karnataka, Maharashtra and Tamil Nadu through 465 branch offices and 6000 people.

ShriPET: PET packaging ShriPET Industries Ltd., started in 1989, has established itself as a producer of PET containers. Company manufactures containers of different volumes, neck sizes and weights in various shapes and colors.

Shriram Insight: Retail stock broking Shriram Insight Share Brokers Ltd. was incorporated in 1995, promoted by professional entrepreneurs and incubated by the Shriram group. The company commenced stock broking operations in 1999.

Shriram Life Insurance Co. Ltd.: Shriram Life Insurance Co. Ltd was launched in January 2006. Shriram Life Insurance is a joint venture of the Shriram Group of India and SANLAM of South Africa. The group offers several policies catering to various needs of the policy holders.

Shriram General Insurance Company Limited: Shriram General Insurance Company Limited is a joint venture between Shriram Capital Limited (part of Shriram Group) and SANLAM Limited.

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Medispan Ltd. Drugs and Pharmaceuticals Medispan Ltd. established in 1983, manufactures and, markets pharmaceuticals formulations specialties. The company has been recognized by ISO 9001.

IRIS: IRIS is a major supplier of sheet metal dies and parts. The companys plant is equipped with a array of the most advanced designing, manufacturing and facilities.

Neugen Diagnostics Pvt. Ltd.: It is engaged in marketing and distribution of diagnostics kits and instruments for international companies in the Indian market.

TAKE Solutions: Information technology TAKE Solutions, a leading international business technology company provides cost effective, comprehensive solutions for businesses.

Harmony Musical Instruments Pvt. Ltd. Was incorporated in 1996 to manufacture guitars and other musical instruments and related components. The company has a primary objective of creating a production facility capable of producing high quality electric and acoustic guitars.

Shriram Value Services (SVS)

Shriram Value services is a leading IT, BPO and earning Solutions company with a strong technology and domain expertise in Finance, Insurance and HR services. IT Services: IT Services at SVS is designed to help off shore customers to achieve their vision and business needs. Some of the software which are developed by IT are as follows: UNO, ShriLife, MGEN, Application Development, Business Integration.

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Business Process Outsourcing: Shriram Values portfolio of business process outsourcing services provides industry specific as well as cross industry BPO solutions that enables clients to achieve immediate and sustained cost savings, improve cash flows and drive growth. Insurance: Shriram work with various insurers and have strong domain expertise in insurance processing. Broad range of products ranges from processing in life insurance as well as general insurance. Data Center Services: SVS data centre is an ISO 27001:2005 certified data centre. It is designed and built with redundant resources to ensure higher availability. SVS data centre offers hosting and co location services. HR Services: SVS offers an array of human resource management services designed to reduce the costs of traditional human resource models while providing the highest quality HR outsourcing services. Recruitment and payroll are other HR services which are provided by SVS and delivers best services to clients.

Learning and Development Solutions: Shriram Learning and Development Solutions is a renowned leader in consultancy, training and skill development. A Shriram Learning and Development institution is the fastest growing integrated learning and development solutions company in India.

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Learning and Development Solutions product development is driven through target user interaction, collaboration, customization and personalization which are cornerstones of the program development and philosophy.

The approach employed in each phase of learning design is highly focused and tailored to the individual and organizational needs, taking a problem-solving approach to every project.

Learning and Development Unit

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Enterprise Learning Solutions

Learn India

Campus Learning Program

Enterprise Learning Solutions: Enterprise Learning Solutions offers tailor made learning solutions based on scientifically sound results driven solutions with quantifiable solutions.

Process Design Solutions: 1. Training Management Process 2. Training Need Assessment 3. Competency Grid 4. Succession Planning 5. Skill Gap Analysis 6. Content Development
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Learning Management System (LMS)

8. Learning Content Management System (LMCS)

Domains:
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1. Behavioral trainings 2. Call center trainings (inbound/outbound) 3. Customer service excellence 4. Finance Equities General insurance Life insurance Mutual Funds 1. IT 2. Leadership Development 3. Outbound Workshops 4. Retail 5. Sales and sales management 6. Telecom

Learn India: Learn India focuses towards development of personality and competency of students and working professionals. Learn India reaches the students directly and through business referrals associations. The workshops have been designed and developed after industry research need analysis. More than 4000 companies across India were approached in IT, manufacturing services, retail and telecom sector.

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Campus Learning Program: Campus Learning Program focuses towards personality and skill development of graduates, under graduates and post graduates to be workplace ready. Campus learning program is an initiative in partnership with education institutions across India. SVS specialize in multiple design formats with expertise among broad scope of learning methods: Story telling Game based Rapid Authoring Design Operation and Process Design Principle based learning Problem based learning Blended Learning E-learning Self Paced Learning Instructor led Webinars

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Training and Training Industry

The term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. Industry training is learning and skill development linked to the needs of workers, workplaces and industry. It basically involves

Job Instruction (JI) - A course that taught trainers (supervisors and experienced workers) to train inexperienced workers and get them "up to speed" faster. The instructors were taught to break down jobs into closely defined steps, show the procedures while explaining the Key Points and the reasons for the Key Points, then watch the student attempt under close coaching, and finally to gradually wean the student from the coaching.

Job Methods (JM) - A course that taught workers to objectively evaluate the efficiency of their jobs and to methodically evaluate and suggest improvements. The course also worked with a job breakdown, but students were taught to analyze each step and determine if there were sufficient reasons to continue to do it in that way by asking a series of pointed questions.

Job Relations (JR) A course that taught supervisors to deal with workers effectively and fairly. It emphasized the lesson, "People Must Be Treated As Individuals".

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Program Development (PD) - The meta-course that taught those with responsibility for the training function to assist the line organization in solving production problems through training.

Industry Training Organizations

Industry Training Organizations (ITOs) are the mechanism by which the ITA is giving industry lead responsibility for improving industry training in a specific sector. They are not-for-profit legal entities with responsibility for designated industry training programs. Industry Training Organizations (ITOs) are responsible for:

Set national skill standards for their industry Provide information and advice to trainees and their employers Develop appropriate education and training arrangements for their industry Arrange training that is appropriate for their industry Arrange for the assessment of trainees Monitor of education and training quality Provide leadership on behalf of industry on skill and training needs.

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Benefits of industry training

Industry skill development and workplace learning are highly cost effective; for employers, for workers and for the country:

For Employers: Government provides support for industry skill development that is relevant to the needs of firms and industry, and that leads to qualifications and standards set by industry. It improves profitability and more positive attitudes towards profit orientation. Training and Development not only helps in creating a better corporate image but also aids in organizational development. Training and Development helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal.

For Workers and Learners: Workplace learning enables you to develop your skills and career in meaningful and productive ways. Training and Development helps in inculcating the sense of team work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the employees. It helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display.

For the Country: Training and Development helps in creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal. It helps to provide an opportunity and broad structure for the development of human resources technical and behavioral skills in an organization. It also helps the employees in attaining personal growth

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Dynamics in Training world

With the world-wide expansion of companies and changing technologies, Indian Organizations have realized the importance of corporate training. Training is considered as more of retention tool than a cost. Today, human resource is now a source of competitive advantage for all organizations. Therefore, the training system in Indian Industry has been changed to create a smarter workforce and yield the best results. With increase in competition, every company wants to optimize the utilization of its resources to yield the maximum possible results. Training is required in every field be it Sales, Marketing, Human Resource, Relationship building, Logistics, Production, Engineering, etc. It is now a business effective tool and is linked with the business outcome. With increase in awareness of corporate training in Indian Industry, a gradual shift from general to specific approach has been realized. According to NASSCOM (National Association of Software and Services Companies), the IT corporate training market is expected to reach Rs 600 crore in 2010 from Rs 210 Crore in 2006. In Indian market, 50% of the training companys revenue comes from the retail training and rest from other segments. On the other hand, in many organizations training is regarded as non-essential or a need based activity. Some organizations start a training department in order to look modern. In fact, some organizations are headed by unwanted employees

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rather than employees of outstanding merit. While some organizations do not have a separate budget to hire highly qualified trainers for training and development.

Training consultancy

It provides industry professional to work with an organization in achieving its training and development objectives. It helps in applying knowledge, developing core competencies, reducing work load, strengthening the team spirit abd developing focused and inspired staff. It leads to greater chances of success and thereby, enhances the companys image.

Business Training Courses Management Development Conflict Management Managing Diversity Project Management Stress Management Time Management Senior Management Workshops Human Resource HR Administration Induction Training Recruitment & Selection Successful Appraising

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Sales Negotiation Skills Sales Technique

Customer Care Customer Care Training Managing Customers

Personal Development Courses Workshops on: Assertive Skills Building Confidence Coping with Change Interview Techniques Maximize Potential One to One Coaching Focused entirely on personal objectives Move forward at individual pace Material used in tailor made to specific development Need A strict code of confidentiality

Training Outsourcing

Outsourcing is one of the most essential parts of training strategies. Training Outsourcing provides industry professional to work with an organization in achieving its training and development objectives. Training outsourcing is a constant transfer of the organization and implementation of one or more entire training processes to an external services provider. Training outsourcing is of two types 1. Select training outsourcing In this type selected training activities are
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outsourced. 2. Comprehensive total training In this type, the entire training function is outsourced. Break-up of Training Activity Practiced in Training Outsourcing

Activities that can be outsourced:

Reasons for outsourcing-

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According to recent research, 30% of training expenditure goes to training consultancies. The research shows that the cost of custom content development has been reduced to 50% from 30% in the last few years. To save cost, companies are now outsourcing other functions like Learning Management Systems (LMS), Training Administration, etc as well.

The renowned industry leaders that have exhibited creation and quality in offering training outsourcing function in business process categories to clients are

Tata Interactive Systems Disney Institute Business Training Partnership Synaptis The Training Associates Allen Communication Learning Services Knowledge Plant Micro Tek
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Genpact Vangent

Major challenges in training industry

Dispersed Locations Many organizations engage training consultancies in different geographical regions that adds further complications to the delivery and scheduling of training. Most of the times, training has to be localized for different languages and cultures which also requires specific resources. Different regions also put in considerable time, expenditure, and resources to manage logistics related to training.

Employment Inefficiencies Obtaining satisfactory organizational resources is a constant problem for the organizations engaged with training consultancies. Employee Turnover and inadequate employee training can make the problem even more difficult.

Know how According to Experts surveys, 70% of the respondents do not use LMS and those who use, almost half use different LMS for employee training.
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Those companies who do not use LMS have to make greater effort with registration and setting up, class follow up, evaluations, and even basic reporting. Randomly applied know-how, unplanned customization work, lack of standards, and scarcity of capable resources can twirl the knowledge support of channel training programs into a failure.

Coverage Measuring the results and finding the business focused information about the training consultancy is difficult or impossible to get. These challenges prevent the organizations to obtain the true insight of training consultancies.

Group dynamics- In all groups, the levels of skill, competency and responsibility will vary and this is often reflected in peoples enthusiasm and level of participation. A trainer needs to acknowledge these differences and ensure that everyone is involved.

Budget Inadequacy- Budget is one the major constraints to channel training in business consulting, technology, content, and strategic business process outsourcing.

Target audience
With a huge number of organizations recognizing the worth of giving training across the complete value chain, respondents were asked to point out who the receivers were of the outsourced training. Ninety three percent of review participants revealed that their organizational employees were the audience of
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outsourced training program. Nineteen percent of the review participants said it was their clients or regular consumers. Sixteen percent mentioned that they provided outsourced training to their associates, partners or allies, and 5 % said they avail training programs for their suppliers. The majority of review participants revealed that they provide outsourced training to internal employees, there appears to a strong number also using training outsourcing to reach partners, associates, or allies and customers, or clients. Internal Employees- 93% Customer- 19% Partner- 16% Suppliers-5%

Training tools
Trainers need to understand the pros and cons of each method, also its impact on trainees keeping their background and skills in mind before giving training. Cognitive methods are more of giving theoretical training to the trainees. It provides the rules for how to do something, written or verbal information, demonstrate relationships among concepts, etc. These methods are associated with changes in knowledge and attitude by stimulating learning. The various methods that come under Cognitive approach are: LECTURES/ DISCUSSIONS DEMONSTRATIONS COMPUTER BASED TRAINING (CBT)
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 INTELLEGENT TUTORIAL SYSTEM(ITS) PROGRAMMED INSTRUCTION (PI) VIRTUAL REALITY Behavioral methods are more of giving practical training to the trainees which are best used for skill development. The various methods that come under Behavioral approach are:

GAMES AND SIMULATIONS BEHAVIOR-MODELING BUSINESS GAMES CASE STUDIES EQUIPMENT STIMULATORS

MANAGEMENT DEVELOPMENT METHOD The more future oriented method and more concerned with education of the employees. To become a better performer by education implies that management development activities attempt to instill sound reasoning processes. Management development method is further divided into two parts:

ON THE JOB TRAINING The development of a manager's abilities can take place on the job. The four techniques for on the job development are: COACHING MENTORING JOB ROTATION
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 JOB INSTRUCTION TECHNIQUE (JIT) OFF THE JOB TRAINING There are many management development techniques that an employee can take in off the job. The few popular methods are: SENSITIVITY TRAINING TRANSACTIONAL ANALYSIS STRAIGHT LECTURES/ LECTURES SIMULATION EXERCISES CASE STUDY

Financial Analysis of Companies

1. Educomp solutions
Educomp Solutions Limited, founded in 1994 is a globally diversified education solutions provider and the largest education company in India. Educomp group reaches out to over 26,000 schools and 15 million learners and educators around the world. The consolidated and standalone audited financial results for the year ended 31st March, 2010 are as follows: (Rs. In million) Particulars Consolidated year ended
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Standalone year ended

31.03.2010 Sales and other Income Profit (+)/Loss(-) Before Tax Provision for Tax Net Profit (+)/Loss(-)after Tax Minority interest and equity in earnings/ (losses)in affiliates/ Pre acquisition Loss/(profit) Net profit for the year Interim Dividend Proposed Dividend on equity shares Corporate Tax on distributed dividend Transfer to Debenture Redemption Reserve Transfer to General Reserve 48.90 1584.19 2807.54 11650.15 4391.73

31.03.2009 6598.00 2172.87

31.03.2010 8727.12 3718.27

31.03.2009 5175.30 2004.74

769.51 1403.36

1499.61 2218.66

688.86 1315.88

74.42

2758.64 103.24 182.98 46.59 0.00 239.48

1328.94 7.36 46.03 7.36 83.76 131.59

2218.66 94.93 167.03 43.87 221.87

1315.88 43.28 7.36 131.59

Companys performance was quite satisfactory despite of the economic crisis. Companys total revenue increased to 8727.12 million as on 31st march, 2010 from
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5175.30 million as on 31st march, 2009 registering a growth of 68.63%. The profit before tax increased to 3718.27 million i.e. 44.68% of sales as on 31st march, 2010 from 2004.74 million i.e. 40% of net sales. The profit after tax increased to 2218.66 million i.e. 26.66% of net sales as on 31st march 2010 from 1315.88 million i.e. 26.26% of net sales as on 31st march 2009. The companys performance over the past years has shown a consistent and upward trend. The profit before depreciation, tax and interest and misc. expenditure (operating profit) increased by 2825.48 million to 6115.91 million as on 31st march 2010 from 3290.43 million as on 31st march 2009. The companys total revenue increased to 11650.15 million as on 31st march, 2010 from 6598 million as in 31st march 2009 registering a growth of 76.57%. The company proposes to transfer 221.87 million (previous year 131.59) to the general reserve out of the amount available for appropriations.

Profit & Loss account of Educomp Solutions Mar '06

------------------- in Rs. Cr. ------------------Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths Income

12 mths

12 mths

12 mths

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Sales Turnover 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 Capitalized Total Expenses

52.30 0.00 52.30 1.07 0.00 53.37 0.00 0.00 7.50 9.54 7.63 1.17 0.00 25.84 Mar '06 12 mths

106.57 0.00 106.57 5.07 0.00 111.64 0.00 0.00 10.51 30.42 12.15 2.20 0.00 55.28 Mar '07

262.10 0.00 262.10 14.80 0.00 276.90 0.00 0.00 25.58 79.73 19.08 11.38 0.00 135.77 Mar '08

501.17 0.00 501.17 16.36 0.00 517.53 0.00 0.00 51.15 103.34 55.99 15.57 0.00 226.05 Mar '09

832.22 0.00 832.22 31.33 0.00 863.55 0.00 0.00 90.89 148.13 106.33 16.84 0.00 362.19 Mar '10

12 mths

12 mths

12 mths

12 mths

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualized)

26.46 27.53 0.71 26.82 5.31 0.02 21.49 -0.02 21.47 7.57 13.92 25.85 0.00 2.39 0.34

51.29 56.36 1.99 54.37 9.39 0.02 44.96 -0.74 44.22 15.64 28.65 55.28 0.00 3.31 0.56

126.33 141.13 5.82 135.31 32.30 0.02 102.99 0.00 102.99 32.94 70.06 135.76 0.00 4.32 0.73

275.12 291.48 14.16 277.32 75.22 0.04 202.06 -4.61 197.45 65.86 131.59 226.05 0.00 4.33 0.74

470.03 501.36 37.88 463.48 90.74 0.00 372.74 -0.92 371.82 149.96 221.87 362.18 0.00 26.20 4.39

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Shares in issue (lakhs) Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs)

159.60 8.72 15.00 56.59

159.85 17.92 20.00 71.75

172.47 40.62 25.00 161.51

172.86 76.12 25.00 221.61

950.15 23.35 137.50 127.28

Total income implies the sum of all incomes from all sources.

As we can see from the above chart that the company has shown a considerable increase in the total income over the past 5 years this proves to be beneficial for the company. The company is the largest in terms of market capitalization among its competitors. Total income here includes sales turnover and other incomes i.e. income from other sources apart from its primary business activity.

Expenditure

The above chart shows how expenditure has increased over the year with the increasing income. Expenditure includes the expenses which the company spends in creating future benefits of the company. Here expenditure includes employee
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cost, selling and administration expenses, miscellaneous expenses, other manufacturing expenses. With the increasing income the expenditure has also increased. Employee cost includes salaries, allowances/benefits; employee welfare etc. employee cost is around 29% of total expenses for the year 06 and for the year 10 it is around 25% thus there is reduction in employee cost. Selling and administration expenses for the year 06 are 29% of total expenses and it remains same for the year 10 as well thus showing that there is no decrease in the expenses. The company should take measure to decrease these expenses and will add on to profits of the company. Other manufacturing expenses have increased from 06 to 10 i.e. increased from 36% to 40% which should be checked by the company. Net profit

Net profit is the measure of a profitability of a venture. Net profit is the money left over after paying all the expenses. The company decides whether it has been successful or not on the basis of the profits that they earn over the years. Net profit comes after deduction of expenses like PBDIT (profit before depreciation interest and taxes), interest, PBDT (profit before depreciation and taxes), depreciation, profit before tax and then tax. These are the expenses that the companies pay to comes final net profit. As the company grows the business grows the profit has also grown over the years i.e. from 13.92 to 221.87. Profit has increased over

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around 16 times from March 06 to march 10. Thus indicating the growth of the company.

Key Financial Ratios of Educomp Solutions

------------------- in Rs. Cr. -------------------

Mar '06 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin (%) Profit Before Interest And Tax Margin (%) Gross Profit Margin (%) Cash Profit Margin (%) Adjusted Cash Margin (%) Net Profit Margin (%) Adjusted Net Profit Margin (%) Return On Capital Employed (%) Return On Net Worth (%) Adjusted Return on Net Worth (%) Return on Assets Excluding Revaluations Return on Assets Including

Mar '07

Mar '08

Mar '09

Mar '10

10.00 1.50 16.58 32.77 46.54 40.64 50.58 39.33 50.99 35.76 36.52 25.89 26.61 22.54 15.42 15.86 11.84 11.84

10.00 2.00 32.09 66.67 61.72 40.57 48.12 37.36 49.51 33.92 34.98 25.54 26.59 19.82 24.98 26.01 71.72 71.72 35

10.00 2.50 73.25 151.97 151.49 37.60 48.20 34.24 35.87 36.43 36.43 25.51 25.51 16.28 25.15 24.32 161.49 161.49

10.00 2.50 159.15 289.92 211.61 37.52 54.89 39.26 39.88 39.87 39.87 25.84 25.84 22.58 34.34 33.35 221.61 221.61

2.00 2.75 49.47 87.59 125.28 34.13 56.47 44.49 45.57 35.47 35.47 26.02 26.02 22.00 18.34 17.50 127.28 127.28

Revaluations Return on Long Term Funds (%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio

24.36 2.86 5.21 0.11 0.03 44.88 0.11 39.18 28.01 30.94 2.36 30.10 5.01 0.62 2.76

20.49 3.18 4.40 1.09 1.02 35.71 1.09 28.61 20.15 34.47 2.86 32.75 3.74 0.51 1.67 -18.22 445.31 --2.33 10.88 13.50 10.16 87.03 90.14 3.18 36

16.97 3.70 5.39 1.32 1.25 25.42 1.32 23.83 18.58 185.88 3.20 185.88 1.27 0.44 1.27 -2.98 482.97 --1.46 14.05 7.21 4.93 92.54 94.95 3.67

23.82 1.84 2.29 1.36 1.28 17.81 1.36 19.99 15.61 17.38 2.63 17.38 1.18 0.61 1.18 -33.86 210.91 --2.09 7.00 3.84 2.44 96.04 97.51 2.57

22.91 2.79 3.68 0.49 0.44 10.78 0.49 12.94 9.25 28.58 2.17 28.58 8.64 0.49 8.64 -22.12 387.74 --2.08 0.45 13.78 9.78 85.56 89.89 1.96

Average Raw Material Holding -Average Finished Goods Held 21.82 Number of Days In Working Capital 517.64 Profit & Loss Account Ratios Material Cost Composition -Imported Composition of Raw -Materials Consumed Selling Distribution Cost 6.56 Composition Expenses as Composition of Total 13.85 Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit 19.60 Dividend Payout Ratio Cash Profit 14.18 Earning Retention Ratio 80.93 Cash Earning Retention Ratio 86.10 Adjusted Cash Flow Times 0.50

Mar '06 Earnings Per Share Book Value 8.72 56.59

Mar '07

Mar '08

Mar '09

Mar '10

17.92 71.75

40.62 161.51

76.12 221.61

23.35 127.28

From the above calculated ratios dividend per share has been increasing. Dividends are a form of profit distribution to the shareholder. As this ratio is increasing the significance is that companys management believes that the growth can be sustained.

The graph below depicts the change in the operating profit ratio. Past 5 years company have experienced changes in this ratio from 16.58 in March 06 to 49.47 in March 10. Operating profit indicates the earning capacity of the concern on the basis of its business operations and not from other sources. But there has been a huge dip this ratio as it changed from 159.15 in March 09 to 49.47 in March 10. Thus is a big worry for the company and it should take measures up this ratio.
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Another investment valuation ratio is net operating profit ratio per share. As in seen with operating profit here also has declined when compared with the previous year i.e. 289.92 to 87.59. This decline shows that there has been reduction in the efficiency of the firm. The first of profitability ratio is operating profit margin. Operating profit margin has increased as compared to last from 54.89% to 56.47%. Operating profit margin is a measurement of what proportion of a companys revenue is left over before taxes and other indirect costs. Thus increase in this ratio indicates company has less financial risk. Gross profit margin (%) is another profitability ratio. As compared to last year this ratio has increased around 6%. Thus this increase is good for the company because the company will be able to build reserves and will be able to pay fixed charges and dividends. Cash profit margin has been bit unsteady over years, which is not good indicator for the company because this ratio is important as cash is important which indicates liquidity. The larger this ratio batter is for the company. Thus company should take measure to improve this ratio. Net profit margin is one of the most essential financial ratios. It includes all the factors that influence profitability whether under management control or not. The company has a very stable ratio which means company has been quite effective in

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cost control. Net profit margin for March 10 is 26.02 which mean that company has .26 of net income for every rupee of sales.

The above figure depicts two ratios i.e. return on net worth and return on capital employed. There has been very less variation in return on capital employed over the years but as compared to last year it has dipped a bit. This is caused by either low profit margin or low asset turnover or both. This is regarded as best measure of profitability. Return on net worth is of great importance to the present and prospective shareholders as well as the management of the company. This ratio has declined which shows the resources have not utilized properly by the company. Investors want high ratio because higher this ratio better for the company. Return on long term funds is another profitability ratio. As compared to last year it has decreased from 23.82 to 22.9. This shows that company is getting low return on total capital employed or long term funds. This decrease is not good for the company and should take steps to increase it.

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Current ratio is 2.7 which have improved when compared with last year which was 1.84. It reflects that company will not find it difficult to meet the short term obligation as a measure of current financial liquidity.

An ideal criterion to test liquidity of a firm is 1:1. Here the company is doing far better with 3.6 which have increased from 2.29. This indicates that liquidity position of a firm is above satisfactory level. The debt equity ratio has decreased from 1.36 to .49 when compared with last year. This indicates that for every 49 worth rupees of creditors investment the shareholders have invested Rs. 100.

Interest coverage ratio is very important from the lenders point of view. It indicates the number of times interest is covered by the profits available to pay interest charges.

As we can see from the above chart that it has been constantly dipping from past 5 years which is big cause of worry because a lot is dependent on this ratio because it is important for lender. Company should take step to improve upon this ratio. If not improved then it is difficult for managers to raise funds from debt sources. Another important ratio is debtor turnover ratio.

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It indicates the number of times the debtors are turned over a year. There has been a slight dip in this ratio. Lower ratio indicates the inefficiency of management.

Investment turnover ratio is used to determine how many times the investment of the dealership is turned into sales. There has been a huge decline in this ratio when compared for the period March 08 to March 10 i.e. it has declined from 185.88 to 28.58. But when compared with last year it has increased from 17.38 to 28.58 thereby ensuring confidence in investors.

Fixed assets turnover ratio measures a companys ability to generate net sales from fixed assets investment. The chart below shows that this ratio has increased considerably from March 06 to March 10 indicating company has been effective in using the investment in fixed assets to generate revenue for the company.

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Total assets turnover ratio measures the ability of a company to use its assets to generate sales. There has been bit up and down in this ratio for the company which indicates the problem with one or more asset categories.

Dividend payout ratio is the indicator of amount that has been ploughed back in the business. The graph below that compared with the last year it has increased almost 4 times but still it is low which shows the string financial position of the company.

Earnings per share are a good measure of profitability and it gives the comparative earning of the firm. From the graph below we can see that earning capacity if the firm has not increased instead it has gone down drastically.

2. Everonn Education
Everonn education is one of the leading educational companies in India. Everonn has reckoned itself in the arena with a firm foothold in the schools, colleges, web products, entrance examination guidance, retail, skill development, teachers training and many more. FINANCIAL RESULTS (Rs. In lakhs)
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Particulars
Total revenue Operating profit Depreciation Interest Profit/(Loss) before tax Provision for Taxation Profit after Tax Add: Profit brought forward from previous year Profit available for appropriations Transfer to Debenture Redemption Reserve Proposed Dividend Tax on proposed Transfer to general reserve Balance carried to balance sheet

Financial results for the year as at

31-march-10 21065.15 9598.40 2378.34 1032.20 6264.72 1924.43 4340.29 4715.69 9055.97 1090.83 302.41 50.23 434.03 7178.48 31-march-09 12137.94 5330.52 1532.44 518.18 3670.00 1285.78 2384.22 2331.46 4715.69 4715.69

The company has changed its name from Everonn Systems India ltd. To Everonn Education Ltd. The primary reason is to represent the objects of the company it pursues i.e. educational services.

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The company performance showed a healthy growth and continued its upward trend. The company earned as total revenue of Rs. 21065.15 lakhs in the year 2010. The revenue growth has been 74% over the previous year. The operating profit for the year 2009-10 was Rs. 9598.42 lakhs as against Rs. 5720.62 lakhs for the year 2008-09. There is a significant increase of 80% in the operating profit as compared to the last year. Net profit has also grown from Rs.2384.22 lakhs to Rs.4340.29 lakhs, a growth of 82% over the last year. The company proposes to transfer Rs.434.03 lakhs to the general reserve out of the amount available for appropriations.

Name of the subsidiary Everonn Educational Resources Solutions Ltd. Toppers Tutorial Private Ltd. Everonn Infrastructure Ltd

Activities Dealing in technical and non technical educational aids for students, teachers To establish and run entrance examination coaching institutes. Creating and developing infrastructure
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for setting up of educational institutes AEG Skill Update Private Ltd. Activities for dissemination of knowledge, literature, skill update, skill development in all educational training Everonn Skill Development Ltd Designing, developing, conducting, imparting, delivering and implementing various skill development and skill up gradation training programs, vocational skills Everonn Business Education Ltd To establish, set up and run in any part of India, business schools management institutes wherein business and management education is imparted.

3. National Institute of Information Technology (NIIT)

NIIT is a global talent development corporation, building skilled manpower pool for global industry requirement. NIITs training solutions in IT, business process
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outsourcing, banking, finance and insurance, communication and professional lifestyle touch five million learners every day. Financial Highlights The highlights of your Companys financial results for the financial year April 1, 2009 to March 31, 2010 are as follows: (Rs. In million) Particulars Net sales(income from operations) Other Income Total Income Total Expenditure Profit before depreciation and taxes Depreciation Net tax provision Net profit before share of Associates profit and minority interest Share of Associates profit and minority Consolidated Standalone 2009-10 2008-09 2009-10 2008-09 11,993 11,486 6,252 5,456 43 203 196 339 12,036 11,689 6,448 5,795 10,797 10,549 5,457 4,758 1,239 1,140 990 1,037 751 647 542 402 108 104 136 163 380 389 312 472 322 309 -

interest Net Profit 702 698 312 472 Despite global recessionary conditions, companys income from operations has increased to 11,993 million as against 11,486 million in the previous year, registering a growth o 4.42% over the previous year. The net profit increased from 698 million in previous year to 702 million. The income from operations increased to 6252 million as compared to 5456 million in the previous year thereby registering a growth of 14.58% on yearly basis.
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 Comparative analysis of companies

Comparison amongst companies first is on the basis of market cap. Market capitalization relates to the worth of the overall business, according to the stock market. Market cap is the measurement of size of a business.

The graph shown above depicts the market capitalization of 5 companies i.e. Educomp Sol, Everonn Edu, NIIT, Career Point and Aptech. In terms of market capitalization the leader is Educomp Sol which is the largest education company in India. It is a globally diversified education solutions provider. Market capitalization refers to dealing with one firm or a group of firms. Market capitalization can be one of the bases for the investors to invest in a particular company but not every time the company with highest market capitalization performs the best.

Sales turnover is another basis for the comparison of the companies.

The above graph compares the sales turnover for 5 companies. The leader is Educomp Sol with sales turnover of 832.11 and at 2nd position is NIIT. NIIT lacks
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behind Everonn Edu in terms of market cap but is ahead in terms of sales turnover. It is almost 3 times that of Everonn Edu. This indicates that market cap does not only affect the sales turnover for a company. Another important comparison is on the basis of net profit which is earned by the companies. The graph below shows the net profit earned by companies. Net profit compares net income of a firm with total sales achieved. Here Educomp Sol is again the leader with net profit of 218.33 and Aptech at second position with net profit of 86.35 indicating that it is effectively able to convert sales into net profit beating NIIT. Aptech is lowest among 5 companies in terms of market cap and 2nd in terms of net profit thus indicating efficient management.

The above graph shows the comparison on the basis of total assets. Total assets of Educomp Sol are 1815.8 followed by NIIT which has total assets worth 644.59 and then Everonn Edu. Total assets are the resources from which the company generates revenue. Educomp Sol having highest amount of total assets signifies that it is able to meet its long term and short term commitments and is powerful amongst its competitors.

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Balance Sheet and Profit and Loss Account for Learning and Development Unit
Profit and Loss Account for Shriram Value Services Particulars Income Training and delivery Content development charges Education and services Security deposits Refundable Non refundable

Amount (Rs.)

Expense Market research Research and development expense Salaries and allowances Staff welfare expenses
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 Logistics Rent Taxes Travelling and conveyance Recruitment and training Telephone charges Stationery Printing Repairs and maintenance Water charges Electricity charges Insurance Advertisement and publicity Rewards and recognition

Meeting expenses

Commission to agents Books

Balance sheet for Shriram Value Services Liabilities Share Capital Issued Capital
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Amount (Rs)

Assets Tangible Assets

Amount (Rs)

Land

 Current Liabilities Sundry creditors Unclaimed dividends Other liabilities (if any) Provisions Provision for taxation Proposed dividend For contingencies

Building Office equipment Furniture Computer accessories Knowledge based content

Intangible Assets

Goodwill Patent Software Current Assets Cash Bank Balance Sundry Debtors

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Conclusion
I got a chance to gain a fruitful experience from a very reputed firm Shriram Value Services. Learning and development unit of Shriram Value Services is renowned as one of the best. Having a learning and development unit at the heart of a business can be immensely valuable. It ensures that all learning is aligned with the companys objectives. My training at Shriram Value Services was all about understanding and analyzing the financial statements of different companies and draw conclusions. Apart from financial statements I even gathered information about various ratios and how it affects the profitability as well as the investment for a company. After understanding the financial statements of companies I prepared the profit and loss account and balance sheet for learning and development unit of Shriram Value Services. Apart from all this one major thing that I have learned from this company is thatIf you are determined enough, you will definitely achieve what you deserve.

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Reference

http://www.shriramvalue.com/ http://www.bersinassociates.com/fr3/annualreport.pdf http://traininganddevelopment.naukrihub.com/training-scenario/ http://www.niit.com/investors/Consolidated%20Results/AnnualReport0708.pdf http://www.moneycontrol.com/competition/niit/comparison/NII http://www.moneycontrol.com/india/stockpricequote/computerssoftwaretraini ng/educompsolutions/ES8 http://www.moneycontrol.com/india/stockpricequote/computerssoftwaretraini ng/everonneducation/EE05 http://www.moneycontrol.com/india/stockpricequote/computerssoftwaretraini ng/niit/NII

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