Concor Project

7/29/2019 Concor Project

1/51

Summer Training Report

on

CONTAINER CORPORATION OF INDIA

Submitted in partial fulfillment of the requirements

For the award of the degree of

Bachelor of Business Administration

(Computer Aided Management)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

Dr. JYOTI JESWANI CHIRAG SINGHAL

Affiliate to Guru Gobind Singh Indraprastha University


2/51

NEW DELHI -110058

CERTIFICATE

Mr. CHIRAG SINGHAL Enrollment No. 0631371906 herby certify that The Summer

Training Report entitled CONTAINER CORPORATION OF INDIA

is carried out by me at CONTAINER CORPORATION OF INDIA LIMITED.

The matter embodied in this project work has not been submitted earlier for the award

of any degree or diploma to the best of my knowledge and belief.

(CHIRAG SINGHAL)

Date:

Certificate that the Summer Training Report entitled CONTAINER

CORPORATION OF INDIA done b is completed under my guidance.

(Signature of the guide)

Dr. Jyoti Jeswani

Designation: Lecturer

IITM,

New delhi-110058

2


3/51

ACKNOWLEDGEMENT

A project is never the work of an individual. It is moreover a combination of ideas,

suggestions, review, contribution and work involving many folks. It cannot be completed

without guidelines.

I express my thanks to Mr. H .Kapoor (Public relations officer CONCOR) for his

valuable Suggestions, insight and encouragement.

I would also like to express my heartfelt gratitude and the privilege to acknowledge

our esteemed guide Dr. JYOTI JESWANI for her invaluable guidance and

encouragement through out this project, without whom this project could have never

been successful.

Last but not the least my sincere thanks to all the faculty members of IITM, New Delhi

and my parents for providing their help and advice whenever it was needed.

BBA (CAM)-5TH Semester

3


4/51

CONTENTS

Chapter

No.

Topic Page No

Certificate.

Acknowledgement.

1 Profile of the Company.

2 SWOT Analysis of the Company.

3 Analysis of Financial Reports.

4 Lesson Learnt

Bibliography

Appendices

4


5/51

LIST OF TABLES

Table No. Topic Page No

1 Details of district offices of North Zone.

2 Employee Table.

3 Ratio Analysis.

4 Balance Sheet.

5 Profit & Loss Account.

6 Cash Flow Statement.

7 Financial Highlights.

5


6/51

LIST OF FIGURES

Figure No Title Page No

1 Product Range of the company.

2 Sales figure of the company.

3 Organizational Chart.

4 Organizational set up of headquarters.

CHAPTER -1

6


7/51

PROFILE OF THE COMPANY

1.1 Corporate profile of the Company

Name of the Company: - CONTAINER CORPORATION OF INDIA

Address: - Container Corporation of India

CONCOR BHAWAN

C-3 Mathura Road

Opposite APOLLO HOSPITAL

New Delhi-110076

7


8/51

Phone No:- 91-11-41673093

41673094

4167309

FAX: - 91-11- 41673112

E mail: - [email protected].

Official website: - www.CONCOR.com

1.2 Background

1.2.1 CONCOR - The Multimodal Logistics Professionals

Ever since globalization transformed the transport sector, national boundaries have

become permeable to penetration by trade, creating the need for flexible transport

solutions. Intermodalism and containerization were the by-products of this era and were

poised to metamorphosize transport of "general cargo", moving it 'seamlessly' through

sea and land arteries. Forty years ago, the physical process of exporting or importing

8
mailto:[email protected]://www.concor.com/mailto:[email protected]://www.concor.com/


9/51

goods was arduous. Goods needed to be transported by lorry to the port, unloaded into a

warehouse and then reloaded into the ship 'piece by piece'.

1.2.2 Malcolm McLean's idea of containerization changed the basics of cargo transport

by standardizing the dimensions of the container and simultaneously improving the

productivity of ports by mechanizing handling of container-carrying 'cellular' ships and

reducing their handling to a few hours only. Unitisation helped elimination of multiple

handling of cargo and made transfers quick, cheap and easy. As containerization came to

stand for 'cargo care', it grew by leaps and bounds the world over.

1.2.3 Indian Railway's strategic initiative to containerize cargo transport put India on the

multi-modal map for the first time in 1966. Given the continental distances in India

(almost 3000 km from North to South and East to West), rail transport could be the

cheaper option for all cargo over medium and long distances, especially if the cost of

inter-modal transfers could be reduced. Containerized multi-modal door-to-door transport

provided the ideal solution to this problem. It was this idea that saw the Indian Railways

entering the market for moving door-to-door domestic cargo in special DSO containers

starting in 1966.

1.2.4 Though the first ISO marine container had been handled in India at Cochin as early

as 1973, it was in 1981 that the first ISO container was moved inland by the Indian

Railways to India's first Inland Container Depot (ICD) at Bangalore, also managed by the

Indian Railways.

1.2.5 Expansion of the network to 7 ICDs by 1988 saw increase in the handling of

containers, and along the way, a strong view had emerged that there was a need to set up

9


10/51

a separate pro-active organization for promoting and managing the growth of

containerization in India.

1.3 Introduction - Nature of Organization and its Business

1.3.1 Container Corporation of India Ltd. (CONCOR), was incorporated in March 1988

under the Companies Act, and commenced operation from November 1989 taking over

the existing network of 7 ICDs from the Indian Railways. From its humble beginning, it

is now an undisputed market leader having the largest network of 57 ICDs/CFSs in India.

In addition to providing inland transport by rail for containers, it has also expanded to

cover management of Ports, air cargo complexes and establishing cold-chain. It has and

will continue to play the role of promoting containerization of India by virtue of its

modern rail wagon fleet, customer friendly commercial practices and extensively used

Information Technology. The company developed multimodal logistics support for

Indias International and Domestic containerization and trade. Though rail is the main

stay of our transportation plan, road services are also provided to cater to the need of

door-to-door services, whether in the International or Domestic business.

CONCOR is committed to providing responsive, cost effective, efficient and reliable

logistics solution to its customers. It strives to be the first choice for its customers.

CONCOR is a customer focused, performance driven, result oriented organization,

focused on providing value for money to its customers.

1.3.2 Main Functions of CONCOR

1.3.2.1 Transportation of goods and cargoes that are meant for the purpose of the

government enterprises in order to enhance the client list of the CONCOR and to save the

expenditure of govt. enterprises.

10


11/51

1.3.2.2 Logistics solutions for the organized and consolidated cargo markets.

1.3.2.3 Provision of storage facilities for the maintenance of Perishable goods.

1.3.2.4 Maintenance of cold chains for the stocking of goods for longer duration and with

safety and freshness as the first priority.

1.3.2.5 Administration of free movements of low heights containers in order to achieve

timely delivery of goods.

1.3.2.6 Fixation of a minimum judicious cost scale on which the concerned amount of

payload could be delivered to a destination.

1.3.3 Core Business

CONCOR's core business is characterised by three distinct activities, that of a carrier, a

terminal operator, and a warehouse operator.

1.3.3.1 Carrier

Rail is the mainstay of CONCORs transportation plans & strategy. Majority of

CONCOR terminals are rail-linked, with rail as the main carrier for haulage. Facilities

are, however, provided for first and last mile transportation by road also. CONCOR

benefits from a close relationship with the Indian Railways. Several of its terminals are

situated on leased Railway-land. Many of its key operating personnel are on secondment

from Indian Railways or have previously been employed by the Indian Railways.

Wagons and operational support from Indian Railways have always been available to the

company. As rail is price-competitive over long distances, the price advantage can be

passed on to clients, thus allowing for flexible and competitive pricing. The rail link also

plays a major role in decongesting our ports and the road corridors that lead to these

ports. Though rail is the mainstay of CONCOR's transportation plan, some CONCOR

11


12/51

terminals are exclusively road-fed as well. We provide 94% of our inland transport

through the Indian Railways network. Road services are mostly in the form of

supplementary services to provide the door to door linkages having carried the bulk of

long lead by rail. However, where ever it is operationally or economically a superior

option, road is used as an alternative to rail as well.

1.3.3.2 Terminal and Warehouse Operator

CONCOR started operations in November 1989 with 7 Inland Container Depots (ICDs).

We have since extended the network to a total of 57 terminals, of which 48 are export-

import container depots, and 9 exclusive domestic container depots. As many as 30

terminals perform the combined role of domestic as well as international terminals. The

company expects the number of terminals to increase to 60 in the next few years

(terminal map) CONCOR's customs bonded Inland Container depots are dry ports in the

hinterland, and serve the purpose of bringing all port facilities including Customs

clearance to the customer's doorstep. The terminals are almost always linked by rail to the

Indian Railway network, unless their size or location dictates that they be linked by road.

The rail links enable us to facilitate the moving of large volumes over long distances in

the most cost effective manner. CONCOR's terminals provide a spectrum of facilities in

terms of warehousing, container parking, repair facilities, and even office complexes. As

CFS operators, CONCOR adds value to the logistics chain by offering services such as:

Transit warehousing for import and export cargo

Bonded warehousing, which enables importers to store cargo and ask for partial

releases, thereby deferring duty payment

12


13/51

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

nominated hub

Air cargo clearance using bonded trucking

1.3.4 In the area of domestic business door pick up and door delivery services are the

most popular. It also use its terminal network to plan hub and spoke movements that

allow single customers to move cargo to multiple locations at a single time, with

CONCOR taking care of the distribution and re distribution requirements.

1.3.5 The key value offered is the provision of a single-window facility co-ordinating

with all the different agencies and services involved in the containerized cargo trade,

from Customs, Gateway Ports, and Railways, to road hauliers, consolidators, Forwarders,

Custom House Agents and shipping lines. To achieve a high degree of customization, we

offer packages designed to provide the most cost-effective combination of road and rail.

This enables us to offer services which can be individually tailored to every customers

specifications, while minimizing the effort he has to put in.

1.4 Geographical Areas of operation

1.4.1 The company is very well placed in terms of its outreach to its Customers

which ensures proper distribution of workload and managerial Accountability.

CONCOR as an entity is more of national operations in nature. And basically its

operations are limited to the national terrain and borders of India.

13


14/51

This is an organization that basically deals with the Transit of various goods

across different geographical areas and logistic transfers of heavy cargoes on a

large scale that cannot be done conveniently. It carries out this task of transport and on

time delivery of goods on the basis of the infrastructure that it has been maintaining and

its corporate offices are spread across whole country.

1.4.2 The main geographical areas of operation of the company are as follows:

North central region Noida

Northern central region- Tuglakabad

Western central region Mumbai

South central region Hyderabad

Southern region Chennai

Central region Nagpur

Eastern region- Kolkata

North western region-Ahmedabad

1.4.3 From its humble beginning, it is now an undisputed market leader having the largest

network of 57 ICDs/CFSs in India. In addition to providing inland transport by rail for

containers, it has also expanded to cover management of Ports, air cargo complexes and

establishing cold-chain. It has and will continue to play the role of promoting

containerization of India by virtue of its modern rail wagon fleet, customer friendly

commercial practices and extensively used Information Technology. The company

developed multimodal logistics support for Indias International and Domestic

containerization and trade.

14


15/51

1.5 Companys Vision & Mission

1.5.1 The corporate vision of the company is:

To deliver a world-class customer experience

15


16/51

The company has been working on its strong & broad vision based guidelines, which aim

at delivering world-class customer experience. For this it has been constantly working for

the customers & modifying its strategies in their favour.

1.5.2 Companys Mission

The Companys mission is to join with the community partners and stakeholders to

make CONCOR a company of reliable logistics solutions to customers through synergy

with the community partners and ensuring profitability and growth. It strives to be the

first choice for customers. They will be firmly committed to the social Responsibility and

prove worthy of trust in the company.

1.5.3 Objectives of the Company

To be a customer focused, performance driven, result oriented organization,

focused on providing value for money to our customers.

To strive to maximize productivity utilization of resources, delivering high

quality of services, and be recognized for setting the standards for excellence.

To consistently look for new better ways to provide innovative services.

To follow highest standards of business ethics and add social value for the

community at large by discharging social obligations as a responsible corporate

Entity

1.6 Product Range

Transit warehousing for Import-Export cargoes.

Bonded warehousing (helping Importer to storeimport cargo and take Partial

16


17/51

Deliveries, therefore deferring duty payments).

Provision of air cargo complexes in some terminals.

Consolidation of LCL(Less than Container Load).

Reefer movement.

Maintenance of a chain of cold storages to ensure longer preservation of

Perishable goods and further extending its shelving life.

Low height container that are capable of faster movement so that they could

Deliver the cargo in shorter span of time.

1.7 Size in terms of Manpower and Turnover

Against a sanctioned strength of 34560, 31243 officers/ officials are in position leaving

North Zone with a substantial shortfall of 3317. Shortage of staff is particularly felt more

17


18/51

in regions like that of Ahmedabad and kolkata regional headquarters. In Jammu Division,

while Leh & Ladakh is run by a skeleton staff, partly on deputation. Annexure-VII shows

the region wise position of staff including Headquarters whos Cat.II, III & IV staff

members are part of the North Zone strength.

Labour force in North Zone consists of 31,127 workers consisting of three categories.

1.8 Organizational Structure

S.No. Region DepartmentalLabour

DPS NWNP Total

1. Noida 1755 296 NIL 2051

2. Tuglaqabaad 808 16007 - 16815

3. Mumbai 2255 - - 2255

4. Hyderabad 584 - 159 743

5. Kolkata 2929 3063 1172 7164

6. Chennai 64 421 873 1358

7. Nagpur 18 - - 18

8. Ahmedabad - 723 - 723

Total 8413 20510 2204 31127

18


19/51

1.9 Sources of Data collection

CHAIRMAN

M.DIRECTOR

DIRECTORINTERNAL

MARKETING&OPERATIONS

DIRECTORP&S

DIRECTORFINANCE

DIRECTORDOMESTIC

AFFAIRS

INTERNALMKTG,

COMMERCAIL

OPERATIONS

PROJECTTECHNICAL

MIS

FINANCINGA/C

SECRETORIAL

INTERNALAUDITS

HR

DOMESTICMARKETING

DOMESTIC

TERMINALSRATING,

COMMISION

19


20/51

The methodology adopted for this project is exploratory in nature since there is no

hypothesis that has to be tested. The conclusions have been drawn by exploratory

research work.

1.9.1 There have been two sources of information collected:

a) Primary Sources

By personal interaction with the public relations officer Mr. H. Kapoor of the

organization concerned, about the various insights and details of the company

And its expansion plans in days to come, its overseas ventures and the impact the

Current tumbles at the stock market had on the health of the CONCOR. His input has

been valuable.

b) Secondary Sources

Official website of the CONTAINER CORPORATION OF INDIA.

Memorandum and Article of association of the association of the company.

By the ratings of the stocks of the CONTAINER CORPORATION OF INDIA as

per ratings of the different stock brooking firms like that of the Karvy stock

Brooking company and Share Khan Etc.

20


21/51

CHAPTER-2

SWOT ANALYSIS

2.1 Strengths of the CONCOR

21


22/51

CONCOR is commanding the largest network of 57 Inland Container Depots

/Container Freight Stations in India today, enabling it operate on the largest

scale.

Transportation by rail is cheapest in the country, and CONCOR being a time

subsidy to Railways avails its services in lowest cost ever.

Energy consumption by Rail is 1/6 as compared to road, thereby further bringing

down the cost of operations.

Double/triple stack container movement would further reduce cost of operations

and bring about more in the kitty of CONCOR.

Renewed focus on customer satisfaction, a growth rate of around 16% in the Exim

and 21% in the domestic segment during FY08.

CONCOR is a subsidiary of the ministry of railways and being the only major

player in India involved in moving containerized cargo via railways in an

Organized manner (but he market share lies at only 6.7% as compared to that of

60-70%in developed countries and with entry barriers still in place to an extent,

Also economies of scale together with support of asset base.

2.2 Weakness of the CONCOR

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

22


23/51

Valued at Rs.4.5 trillion and the rest is in the hands of the unorganized retail

Logistics players like GATI, RELIANCE logistics (better called logistics

Solutions of India limited).

CONCOR suffers from the traditional problems that are faced by any public

Sector undertaking that is red-tapism, lethargy, lack of motivation, absence of

skilled labour force in adequate numbers.

The working of CONCOR still follows the redundant ways of expansion and

doesnt learn from its rivals quickly and still it has to wait for the approval of its

Ministry to bring in force any of its strategies, biting up a precious share of its

Reaction time in these fast changing marketing conditions, where an organization

is as good as its reaction and implementation speed.

To run an effective logistics business, a perfect infrastructure is required for the

smoother movement of cargo but in India, the bottlenecks of infrastructural

availability hampers the free movement of goods there by making it difficult for

CONCOR to approach small time customers.

2.3 Opportunities for the CONCOR

23


24/51

At present, containerized cargo accounts for less than 20% of the total cargo

Traffic in India, compared to 70-80% in developed countries. This is where

opportunity lies for CONCOR, as it is the only major player in a growing

market characterized by huge entry barriers and economies of scale. The

Government has allowed private players to enter the containerized cargo segment,

But given the capital intensive nature of business, these players wont pose a

threat to CONCOR. Hence investors can find CONCOR feasible for investment

for the next 3-5 years

The container traffic in India has grown at a CAGR of 15% since 1991, 2.5 times

the average GDP in the same period. With the growth of external trade being

faster than GDP, the similar trends are expected to continue in future as well.

Similarly the possibilities of growth in container traffic in the Domestic sector are

immense with continued strong trends in growth of GDP and the need of the

industry for value added services.

Logistics ports, large cargo hubs will be the requirement of the industry in very

near future, as large retail chains generate the demand for professional managed

cargo delivery systems.

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

requirement.

Today the company is increasingly doubling up as a warehouse and terminal

operator opening up new avenues for it.

2.4 Threats to the CONCOR

24


25/51

With a liberalized economy the avenues meant for the CONCOR are now eyed by

MNCs and other new entrants into the market, therefore the share earlier enjoyed

by the same is now up for grabs for everyone plying in the market.

With the government permitting 14 private players to run containerized rail

Transport, the sector is poised for a price war in near future and will witness a lot

of exercises to grab the maximum market share.

Lack of outreach is one threat CONCOR has been facing since its incorporation

which needs to be paid attention to because, the private players would leave no

stone unturned in order to consolidate their customer base.

CONCOR posted higher net profit growth on account of slower growth in rail

Freight cost and more than doubling of other income. The company is on the

Expansion spree and has entailed total capacity expansion of Rs.7 bn for

FY09.Therefore the company is upbeat about its aspect in the short and medium

Term but the experts have a word of caution that in the long term, the company

might get into a slowdown spin.

With the entry of big players like that of GATI, RELIANCE LOGISTICS, AHL,

DHL the sector remains unprotected for CONCOR to operate and it would be

difficult enough for CONCOR to operate and maintain its dominance in this

Sector.

2.5 Best Practices

25


26/51

2.5.1 CONCOR is regularly making efforts to improve our business processed to provide

for improved quality of customer satisfaction.

2.5.2 Some of the practices adopted by the organisation for achieving these goals are

listed below:

o On line Information & Container Tracking

o Container Repair & Cleaning Facilities

o Cargo Palletisation, Strapping etc.

o Cargo Lashing/Choking Facility

o Fumigation of Cargo/Containers

o Supply Chain Management

o Door Delivery/Pick Up of Containerised cargo

o Container/Cargo Survey

o Pre Deposit Accounts

o Round the Clock Security at Terminals

o Facilitation of Customs Clearance

o Flexible Payment Arrangements

The Company conducts Customer Satisfaction Survey regularly to get a feedback from

the customers and also take action to rectify/improve our services.

CONCOR had also introduced on Companys website Feedback. Com wherein

Customers can obtain information and seek remedies on our services in the format

available under menu Customer Feedback Facility. Prompt action on these

observations/suggestions is taken to improve the quality of our services to the customer.

26


27/51

CHAPTER-3

ANALYSIS OF FINANCIAL

STATEMENTS

27


28/51

3.1 Analysis is based on the Audited Financial statement attached at the end of the

report as appendix. A & B.

3.1.1 Meaning of Financial Analysis: It is the systematic numerical calculation of the

relationship between one fact with the other to measure the profitability, operational

efficiency and the growth potential of the business. The analysis serves the interest of the

shareholders, debenture holders, potential investors, creditors, bankers, journalists,

legislators, politicians, researchers etc. the analysis of financial statements make it

simple, intelligible and meaningful for the concerned parties.

3.1.2 Ratio Analysis

Ratio analysis is a technique of analyzing the financial statements and refers to analysis

of financial statement by computation of ratios. In other words, ratio analysis is

statements to provide a meaningful understanding of the performance and financial

position of an enterprise.

Advantages and Uses of Ratio Analysis

1. Useful in analysis of financial statements.

2. Useful in simplifying accounting figures.

3. Useful in judging the operating efficiency of business.

4. Useful for forecasting purposes.

5. Useful in locating the weak spot of the business.

6. Useful in Inter-firm and Intra-firm comparison.

28


29/51

Broadly ratios used in the analysis are:

1. Liquidity ratio (short- term solvency) Ratios

2. Long-term solvency Ratios

3. Profitability Ratios

4. Turnover Ratios

29


30/51

3.4 Ratio Analysis

PARTICULARSRATIOS

2008 2007

Liquidity Ratios

1.Current Ratio

Current Assets (including stocks) to Current Liabilities

(Excluding bank borrowings)

3.37:1 2.24:1

2. Quick Ratio

Quick Assets To Current Liabilities

Quick Assets=Current assets- (stock + prepaid expenses)

0.49:1 0.12:1

Solvency Ratios

3. Total Assets to Debt Ratio

Total Assets to Long Term Debts0.11:1 1.31:1

4. Proprietary Ratio

Proprietors Funds to Total Assets

1.20:1 0.14:1

5. Debt Equity Ratio

Long Term Loans to Equity

7.15:1 5.15:1

Turnover Ratios6. Inventory Turnover Ratio

Cost of Goods sold to Average Inventory

COGS=Opening Stock + Purchases + Direct Expenses-

Closing Stock

2.80 times 2.86 times

7. Debtors Turnover Ratio

Total Sales to Accounts Receivable

Where:

Accounts Receivable= Debtors + Bills Receivable


5. Working Capital Turnover Ratio

Sales to Working Capital

Working Capital=Current Assets Current Liabilities


30


31/51

6. Fixed Assets Turnover Ratio

Net Sales to Net fixed Assets

Net Fixed Assets=Fixed Assets - Depreciation


7. Current Assets Turnover Ratio

Net Sales to Current Assets2.46 times 2.46 times

8. Turnover to Capital Employed

Net Sales to Capital Employed

Capital Employed=Net Fixed Assets-Working Capital


Other ratios

9. Financing Ratios

Interest as a percentage of other expenses

5.94% 5.24%

10. Turnover (purchase & sale) per labour (MT)

1301 1469

12. Cost per employee (Rs/Annum) 356711 241301

3.5 Interpretation & Comments

3.5.1 Liquidity ratios measure the short-term solvency of the business, i.e. the firms

ability to pay its dues.

Current Ratio = Current asset

Current liability

31


32/51

0

0.5

1

1.5

2

2.5

3

3.5

2007 2008

Current Ratio

Figure 3.1: Current Ratio

This ratio shows short term financial soundness of the business. Its ideal ratio is

2:1 higher to some extent the ratio is better for company.

In 2008, the current ratio of the company was 3.35:1, i.e. higher than the ideal

ratio. This indicates poor investment policies adopted by the company too with

poor inventory control. This means that company funds are lying idle in other

words are yet to be used.While in 2007, the ratio was 2.24, which is very near to

the ideal ratio indicating The company funds are not lying idle if compared to

previous year ratio.

Quick Ratio indicates the short-term debt paying capacity.

Quick Ratio= Quick Assets/liquid Assets

Current Liabilities

32


33/51

0

0.1

0.2

0.3

0.4

0.5

2007 2008

Quick Ratio

Figure 3.2: Quick Ratio

In 2008 the quick ratio was 0.49 & in 2007 the quick ratio was 0.12 respectively.

This indicates overstocking i.e. the stock was in excess.

3.5.2 Solvency ratios convey an enterprise ability to meet its long-term obligations.

Total assets to Debt Ratio measures the safety margin available to suppliers of

long-term debts.

Total Assets to debt Ratio=Total Assets

Long-Term debts

0

0.2

0.4

0.6

0.8

1

1.2

1.4

2007 2008

Total Assets

to Debt Ratio

Figure 3.3: Total Assets to Debt Ratio

In 2008, the ratio was 0.11:1, which represents heavily risky financial position of

business i.e. to totally depend on outside loans. While in 2007, the ratio was 1:31, which

is satisfactory and indicates security to lenders to extend long-term loans to the business.

33


34/51

Debt Equity Ratio indicates the long-term financial position and soundness of

the long-term financial policies of the company. Its ratio 2:1 is acceptable.

Debt-Equity Ratio=Debt(long-term)

Equity

0

1

2

3

4

5

6

7

8

2007 2008

Debt Equity

Ratio

Figure 3.4: Debt Equity Ratio

In 2008 the debt equity ratio of the company was 7.15:1 & in 2007 the debt equity ratio

of the company was 5.15:1, which is too high. This indicates a risky financial position of

the company and also the company had been in swinging bridge.

Proprietary Ratio

Proprietary Ratio=Proprietary funds

Total Assets

34


35/51

0

0.2

0.4

0.6

0.8

1

1.2

2007 2008

Proprietory

Ratio

Figure 3.5: Proprietary Ratio

This ratio indicates the extent to which the total assets have been financed by the

proprietor. Higher the ratio greater the satisfaction for lenders and creditors.Proprietary

Ratio for 2008 was 1.20:1, which is satisfactory which means that there is safety for

creditors of all types.In 2007, the ratio was 0.14:1, which may be an alarming situation

for creditors, since they may have to lose heavily in case of losses.

3.5.3 Turnover Ratios measure the effectiveness with which a concern uses resources

at its disposal.

Inventory Turnover Ratio this ratio measures how fast the stock is moving

through the company and generating sales. higher the ratio more efficient

management of inventories .

Inventory Turnover Ratio=Cost of goods sold

Average Stock

35


36/51

2.76

2.78

2.8

2.82

2.84

2.86

2007 2008

Inventory

Turnover

Ratio

Figure 3.6: Inventory Turnover Ratio

Inventory Turnover Ratio in 2008 was 2.80 & in 2007 was 2.86 times respectively

which in comparison to 2:1 is satisfactorily means neither too high nor too low. High

ratio indicates more sales being produced by a unit of investment in stocks and low

ratio indicates low sales.

Debtors Turnover Ratio indicates economy and efficiency in the collection of

amount due from debtors. higher the ratio better it is for the company which

means the debtors are being collected more quickly

Debtors Turnover Ratio=Net Credit Sales

Average a/c receivable

05

10

15

20

25

30

35

40

2007 2008

Debtors

Turnover

Ratio

Figure 3.7: Debtors Turnover Ratio

36


37/51

The ratio in 2008 & 2007 was 29.13 & 36.43 respectively, which indicates that debts are

being collected more promptly. It will release funds, which may then be put to some

other use.

Working Capital Turnover Ratio indicates whether the working capital has

been effectively utilized or not in making sales.

0

1

2

3

4

5

2007 2008

Working

Capital

Turnover

Ratio

Figure 3.8: Working Capital Turnover Ratio

The ratio in 2008& 2007 was 2.61 & 4.45 times which is not so high but

satisfactory.

Fixed Assets Turnover Ratio indicates whether the investment in fixed assets is

justified in relation to the sales achieved.In 2008 and 2007.

0

20

40

60

80

100

2007 2008

Fixed Assets

Turnover

Ratio

Figure 3.9: Fixed Assets Turnover Ratio

37


38/51

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

fixed assets.

38


39/51

CHAPTER 4

LESSONS LEARNT

39


40/51

4.1 Description of My Experience

4.1.1, During the training session, I got more knowledge; first of all, I know what are

corporate world and its rules and regulations. Also I know how to behave in a

organisation. What is seniority & juniority ? What is time value and punctuality in an

organisation, how to adapt my self in a office, what is work pressure and how to handle

the ideal and rough costumers. I have also observed time management, team work and

quick learning environment which will help me to accomplish my vision

4.2 Practical Knowledge

4.2.1, Container Corporation of India has been a sea of learning experience for me. The

first & foremost thing that I have learned is the Co-operative culture & how do people

behave in Organization.

4.2.2, In Marketing Strategies I learnt how the Company promotes its product to the

Customers.

4.2.4, I learned how to handle stress & try to manage to work under Crises.

40


41/51

4.3.1 Limitation of Study

4.3.1.1, It is very well known fact that Constraint & limitation are bound to be present in

any study. In completing my training, I also encountering some problem

4.3.1.2, Too much expectation from the Executives.

4.3.1.3, Company hesitates to show the records of performance of any of this Specific

products & services.

4.3.2 Suggestions

4.3.2.1 My Suggestions is that student should do Summer Training in the Company,

because its environment is full of Professionalism & Knowledge. There are lots of things

to learn:

Emerging scope of the company.

How to adapt himself in the environment.

New concept about the Industry.

41


42/51

Bibliography

BIBLIOGRAPHY

42


43/51

1. Advertising and Marketing

2. India Today

3. www.google.com

4. www.concor.com

5. www.encyclopedia.com

6. Manuals, handbooks and circulars of CONCOR India Ltd.

7. Kotler, Philips.Marketing Management, New Millennium Edition, 2000.

8. Ramaswamy V.S & Namakumari S. Marketing Management, Planning,

Implementation& Control Macmillan India pvt. Edition, 2002.

9. Baker Michael J. The Marketing Book Viva Books Pvt. Ltd. Edition,

2000.

43
http://www.encyclopedia.com/http://www.encyclopedia.com/


44/51

APPENDICES

44


45/51

APPENDIX-A

BALANCE SHEET Balance Sheet as on 31 March 2007 and 31 March 2008

(Figures in Lakhs of Rupees)

LIABILITIESAMOUNT

ASSETSAMOUNT

2008 2007 2008 2007

Capital:-Capital contributed

by govt of India

-Subscribed capital bygovt of India

250000.00

243747.20

250000.00

239245.88

Fixed Assets:At written down

value35171.15 35304.76

Secured Loans:-Loans from

Scheduled banks and

State Bank of India-Long term borrowings

through GOIguaranteed bonds

3052998.5

2

402350.00

2516262.04

-

Loans andAdvances: 46.27 46.27

Unsecured Loans-Loan from Housing

Development FinanceCorporation

-Loan from Bank of

India

524.98

5625.00

730.62

7125.00

Other Loans and

Advances:Other advances

including advances to

staff

7962.19 30560.87

Current liabilities

& provisions.-Sundry Creditors

(Goods & finance)

-Service PriceEqualization Fund

-Deposits Repayable

274849.2

35699.21

82200.43

392748.84

391059.83

4184088

130281.94

563159.65

Claim

Receivables75520.50 5488413

Deposits and

Other

Receivables

33076.96 13446.42

Interest

Receivables

16313.36 14175.36

Current Assets-Cold chains

-low height cont.-By Products

- fast track cargoes

- Stores & Spares

-Stocks of

undelivered cargo

1282991.8

3103.4

1.01

34897.20

2759.42135.71

1323888.1

1230565.65

2231.63

1.01

25942.23

3417.5379.01

1262236.4

Interest Payable 3457.53 3413.91

45


46/51

UnregularisedTransit & Storage

45336.12 53288.32

Balance CarriedForward

410452.07 3329937.1Balance Carried

Forward1537314.7 1463942.6

LIABILITIESAMOUNT

ASSETSAMOUNT

2008 2007 2008 2007

Balance Brought

Forward410452.07 3329937.1

Balance Brought

Forward1537314.7 1463942.6

Book Debts:-Outstanding formore than 6 months

-Other debts

1949084.25

492337.88

1616032.66

244865.69

2441422.1 1860898.3

Cash & Bank

Balances:-Cash in hand

-Cheques, Demand

Draft & Fixed

Deposits

5.37

85837.41

5.13

2913.40

85842.78 2918.53

MiscellaneousExpenditure &

Losses

1.07 1.07

Deferred Revenue

Expenses34694.82

_

Profit &LossAccount

2176.53 2176.53

Total 410452.07 3329937.1 Total 410452.07 3329937.1

46


47/51

APPENDIX B

PROFIT AND LOSS ACCOUNT

For the year ended 31 March 2008 & 31 March 2007(Figures in Lakhs of Rupees)

PARTICULARSAMOUNT

2008 2007

Opening Stock:-Low height containers

-Unused inventory

-By Products & other commodities-

-Stores & Spares

1230565.08

2231.63

1.01

25942.23

3417.53

1755049.19

4983.60

3.06

25749.29

4678.60

1262157.48 1790463.74Purchases:

-Low height container- Fast track rail routes

-fuel

-Stores &Spares

3585829.19

18906.53

86953.02

1550.65

3714336.82

11987.40

109727.15

1382.82

3693239.39 3837434.19

Low containers (imported):Cold chains(including freight) 1.04 18.20

Milling charges paid to other

agencies (Net) 2826.04 2838.23Handling Expenses (Include

wages to departmental labour)135855.75 129244.26

Freight:

-Railway Freight-Lorry Freight

-Steamer Freight

-Transport Subsidy

257957.71

36196.28

730.70

14362.78

280014.46

45778.92

613.93

43875.48

309247.47 370282.79

Salaries, Wages and Allowances;

-Officers-Staff

-Less: capitalized

30843.11

103447.27

114.60

22252.48

88304.09

193.83

134175.78 110362.74

Medical reimbursement:-Officers

-Staff

876.43

3174.27

626.36

2524.16

4050.70 3150.52

47


48/51

Medicines & Medical Equipments4.38 4.28

Balance Carried Over5541558.03 6243798.95

PARTICULARSAMOUNT

2008 2007Balance Brought Forward

5541558.03 6243798.95

Contribution to Provident Fund &

others17530.26 17211.23

Staff Welfare Expenses1748.16 1764.92

Rates & Taxes799.16 1153.36

Insurance34.64 34.64

Power, Fuel & Electricity 1295.94 1284.23

Rent:-Godowns

-Offices & others

47787.91

1137.70

32233.58

1222.50

48925.61 33456.08

Traveling Expenses2639.58 2630.66

Audit Fee & Traveling Expenses333.20 909.58

Fees & Traveling Expenses of

Directors

2.96 1.97

Repairs & Maintenance-Godowns-Others

2509.132752.88

2113.932188.39

5262.01 4302.32

Maintenance of Vehicles199.10 192.59

Interest260000.60 237758.04

Public Relations & Publicity36.33 205.50

Miscellaneous Expenses 13940.15 14481.79

Debts/Claims Written Off490.94 412.15

48


49/51

Depreciation

4531.12 3484.44

Total 5899327.79 6563082.17

PARTICULARS

AMOUNT

2008 2007

Sales:-Low height container

-Fast track cargoes

-By Products & other commodities

-Cold chains

-Stores & Spares

2416023.84

17377.19

-554.11

19.38

2433974.52

3099903.66

14367.64

1.03

641.614.04

3114917.98

Closing Stocks:

-Low height containers-

-By Products & Other commodities

-Gunnies-Stores & Spares

1282991.823103.04

1.01

34897.20

2759.42

1230565.082231.63

1.01

25942.23

3417.53

1323752.49 1262157.48

Claims:-Railways

-Shipping

1540.20

-2171.62

12.13

1540.20 2183.75

Consumer Subsidy on CargoesAdd: carrying charges of buffer stocks of

FreightLess: adjustment relating to previousyears

1971087.86

126149.39

23357.78

1891429.44

257460.17

-832.89

2073879.47 2148056.72

Unregularised Transit and storage

shortages

(Reimbursable by department of foodand public distribution)

3480.40 10671.19

Short realization on Fast trackoperations.

3374.02 2248.29

Miscellaneous income32523.21 19956.70

Adjustments relating to previousyears.

23358.54 583.38

Interest received3440.98 2290.28

Foreign Exchange variance3.96 16.40

Total5899327.79 6563082.17

49


50/51

APPENDIX-C

Cash flow StatementFor the year ended 31 March 2008 & 31 March 2007

(Figures in Lakhs of Rupees)

PARTICULARSAMOUNT

2008 2007

Cash flow from Operating Activities:

Net Profit during the year

Adjustments for:

Depreciation

Interest ExpenseInterest IncomeDebts written off

Foreign exchange Variance

0.00 0.00

4531.12 3484.44

260000.60 237758.04-3440.98 -2290.28

490.94 412.15

-3.96 -16.40

Operating Profit before working

capital changes261577.72 239347.95

Decrease in working capital:

Decrease in unregularised shortages 7952.20 3153.10

Increase in working capital:

Decrease in cargo Price Equalization

Fund

Decrease in sundry creditorsIncrease in Loans & Advances, deposits

& other claim receivables

Decrease in Deposits RepayableIncrease in Stocks

Increase in Book Debts

Increase in Miscellaneous Expenditure& Losses

-6141.67 -2960.63

-116638.12 -53367.79

-17668.23 -18806.59

-48081.51 -30427.77

-61651.70 528380.59

-581014.72 -325649.03

-34694 0.09

Net cash generated from Operating

Activities-596360.85 339669.83

Cash flow from Investing Activities:Sale of fixed assetsPurchase of fixed assets

139.12 29.19

-4082.18 -6025.46

Net cash used in Investing Activities -3943.06 -5996.27

Cash flow from Financing Activities:

4501.32 3946.00

50


51/51

Increase in capital subscribed by

Government of IndiaIncrease in Loans & Advances from

Banks

Net outflow on Interest

Repayment of loans to HDFC

536736.48 -357265.52

-258654.00 -247976.28

-205.64 -162.99

2008 2007

Loans taken from Bank of India -1500.00 7125.00

Funds raised through issue of Bonds 402350.00 0.00

Net cash used in Financing Activities 683228.16 -594333.79

Net increase in cash & cash

equivalents82924.25 -260660.23

Cash & cash equivalents at the

beginning of the year2918.53 263578.67

Cash & cash equivalents at the end of

the year85842.78 2918.53

Concor Project

Documents