INDUSTRIAL EXPOSUREINDUSTRIAL EXPOSURE

ONON

“GAIL”

Submitted in the partial fulfillment of the requirement for the award of the 

Degree of Bachelors of Business Administration (BBA)

SUBMITTED BY: UNDER GUIDANCE OF:

____________________ ______________________

BBA (4TH SEMESTER)

BHARATI VIDYAPEETH UNIVERSITY

INSTITUTE OF MANAGEMENT & RESEARCH,

NEW DELHI

ACKNOWLEDGEMENT

The present work is an effort to throw some light on “GAIL”. The work would not

have been possible to come to the present shape without the able guidance,

supervision and help to me by number of people.

With deep sense of gratitude I acknowledge the encouragement and guidance received

by my project guide _____________and other staff members of GAIL.

I convey my heartful affection to all those people who helped and supported me

during the course, for completion of my Project Report.

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PREFACE

A hallmark of any premier business school is its willingness and ability to constantly

explore and implement new ideas and practices in the field of management education.

Institute constantly reorients their programs in order to keep abreast of changing

development.

The initial interaction between school students and industry takes place when the

students undergo project is usually for knowing the process for recruitment, selection,

industrial relations & training of that institution. It is often the exposure to corporate

culture that a student receives, particularly true for students without prior work

experience.

During my training at GAIL, I was taken project on recruitment, selection &

training policy of GAIL.

The main purpose of the study is to know the policies of the bank regarding

recruitment, selection & training, which helped me in gaining knowledge about the

different working pattern of different departments of the company.

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TABLE OF CONTENTPage no.

Chapter 1:       Introduction to Company

1. Nature of Business 2. Type & ownership Pattern 3. Organizational Structure 4. Production Lay out 5. Organizational Policies

Chapter 2:       Industrial Analysis

1. Industry Overview –(Growth rate of Industry, Contribution to GDP). 2. Current Issues (From Newspaper, Journals –For Company and Industry) 3. Key 4. Environmental Scanning –Political environment, Economic environment,

Socio-Cultural Environment, technological environment, environmental issues (Green environment) and Legal environment.

5.  Porters five forces model of competition –Michael Porter

Chapter 3:       Marketing Strategies

1. Products of Company 2. 4 Ps (Product: Price, Place & Promotion) 3. STP (Segmentation, Targeting and Positioning) 4. Distribution Channels 5. Promotion Strategies

 Chapter 4:    Financial Analysis

1. Sources of Finance 2. Ratio Analysis –Any 5 3. Net Profit/ Balance sheet (from annual report) -Analyse

Chapter 5: Key Learning’s from the Company and Recommendations

1. Performance Analysis of the Company 2. Reasons for the expansion/contraction/diversification of Company 3. Comment on Organizational Leadership 4. Market share/growth rate of Company 5. SWOT Analysis of the Company

Chapter 6:       Findings

Chapter 7:       Conclusions and Suggestions

Bibliography

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CHAPTER-1

INTRODUCTION

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NATURE OF BUSINESS

Gail Success StoryFormation of GAILGAIL (India) Ltd was incorporated in August 1984 as a Central Public Sector

Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG). The

company was initially given the responsibility of construction, operation & maintenance

of the Hazira – Vijaypur – Jagdishpur (HVJ) pipeline Project. It was one of the largest

cross-country natural gas pipeline projects in the world. Originally this 1800 Km long

pipeline was built at a cost of Rs 1700 Crores and it laid the foundation for development

of market for natural Gas in India. 

Current Businesses - DomesticGAIL, after having started as a natural gas transmission company during the late eighties,

has grown organically by building large network of Natural Gas Pipelines covering over

9500 Km with a capacity of around 172 MMSCMD; two LPG Pipelines covering 2040

Km with a capacity of 3.3 MMTPA of LPG; seven gas processing plants for production

of LPG and other Liquid Hydrocarbons, with a production capacity of 1.4 MMTPA; and

a gas based integrated Petrochemical plant of 410,000 TPA polymer capacity which is

further being expanded to a capacity of 900,000 TPA. The Company also has 70% equity

share in Brahmaputra Cracker and Polymer Limited (BCPL) which is setting up a

280,000 TPA polymer plant in Assam. Further, GAIL is a co-promoter with 17% equity

stake in ONGC Petro-additions Limited (OPaL) which is implementing a green field

petrochemical complex of 1.1 MMTPA Ethylene capacity at Dahej in the State of

Gujarat. GAIL has 31.52% stake along with NTPC as equal partner in JV company,

RGPPL at Dabhol which operates largest gas based power generation facility in the

country and is also setting up 5 MMTPA LNG terminal.

Keeping in mind the requirement of growth and consolidation as well as opportunities

arising out of New Exploration Licensing Policy (NELP) of Government of India, the

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company has moved into upstream of gas value chain i.e. Exploration & Production and

currently has stakes in 31 E&P blocks including 2 blocks overseas (in Myanmar). 

GAIL is a pioneer in City Gas Distribution (CGD) business in India, with Indraprastha

Gas Limited (IGL) in Delhi and Mahanagar Gas Limited (MGL) in Mumbai being its

biggest success stories. Besides IGL and MGL, GAIL has set up several JVs for CGD to

supply gas to households, transport sector & commercial consumers in various cities

including Hyderabad, Agartala, Kanpur, Indore, Vadodara, Lucknow, Agra and Pune. In

2008, GAIL incorporated a wholly owned subsidiary, GAIL Gas Ltd (GGL) to

exclusively focus on city gas distribution business. GGL has been authorized for

implementation of CGD projects in four cities namely Kota, Dewas, Sonepat & Meerut in

the 1st round of bidding by Petroleum & Natural Gas Regulatory Board (PNGRB).

Leveraging on its pipeline network, GAIL has built a strong Optic Fibre Cable (OFC)

network of approximately 13,000 km for its own internal use and leasing of bandwidth as

a carriers' carrier.

As a part of its initiative towards reducing carbon footprint and creating a path of

sustainable growth, GAIL is building a portfolio of renewable businesses. The company

has successfully commissioned wind energy power projects of 118 MW across states of

Gujarat, Tamil Nadu and Karnataka. 

Global PresenceAs a strategy of going global and further expanding global footprint, GAIL has formed a

wholly-owned subsidiary company, GAIL Global (Singapore) Pte Ltd. in Singapore for

pursuing overseas business opportunities including LNG & petrochemical trading. GAIL

has also established a wholly owned subsidiary, GAIL Global (USA) Inc. in Texas, USA.

The US subsidiary has acquired 20% working interest in an unincorporated joint venture

with Carrizo Oil & Gas Inc in the Eagle Ford shale acreage in the state of Texas. In

addition to having two wholly owned subsidiaries in Singapore & USA, GAIL has a

representative office in Cairo, Egypt to pursue business opportunities in Africa and

Middle East. 

GAIL is also an equity partner in two retail gas companies in Egypt, namely Fayum Gas

Company (FGC) and National Gas Company (Natgas). Besides, GAIL is an equity

partner in a retail gas company involved in city gas and CNG business in China – China

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Gas Holdings Limited (China Gas). Further, GAIL and China Gas have formed an

equally owned joint venture company – GAIL China Gas Global Energy Holdings

Limited for pursuing gas sector opportunities primarily in China. 

GAIL is a part of consortium in two offshore E&P blocks in Myanmar and also holds

participating interest in the joint venture company – South East Asia Gas Pipeline

Company Limited incorporated for transportation of gas to be produced from two blocks

in Myanmar to China.

Consistent track recordGAIL has been a leading public enterprise with a consistently excellent financial track

record. The Turnover and PAT have shown remarkable accomplishment with CAGR of

16% and 12% respectively in the last decade. 

GAIL has recently developed corporate growth strategy for the period 2011-20 and the

same has been approved by the Board of Directors. GAIL aspires to become an integrated

hydrocarbon major with significant upstream and downstream interests by 2020.

Mission, Vision and ValuesMissionTo accelerate and optimize the effective and economic use of Natural Gas and its

fractions for the benefit of the national economy.

VisionBe the leading company in Natural Gas and Beyond, with Global Focus, Committed to

Customer Care, Value Creation for all Stakeholders and Environmental Responsibility.

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GAIL MANAGEMENT

Shri B. C. Tripathi

   

Shri Prabhat Singh

Director (Marketing)

Shri S. Venkatrama

nDirector (Business

Development)

  Shri P.K. Jain

Director (Finance)

  Shri M. RavindranDirector

(HR)

Dr. Ashutosh Karnatak Director

(Projects)

Shri Rajive Kumar Shri P.K. Singh

 

 

Smt. Shyamala Gopinath   Dr. A. K. Khandelwal      

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Shri Rajesh Ranjan Shri N. K. Nagpal

Joint Ventures

GAIL has formed Subsidiaries and Joint Venture companies for City Gas Distribution

and Petrochemicals. GAIL is one of the pioneers to introduce City Gas Projects in

India for gas supplies to households, commercial users and for the transport sector by

forming Subsidiaries/ Joint Venture Companies.

Aavantika Gas Limited (AGL)

Bhagyanagar Gas Limited (BGL)

Central U.P. Gas Limited (CUGL)

Green Gas Limited (GGL)

Indraprastha Gas Limited (IGL)

Mahanagar Gas Limited (MGL)

Maharashtra Natural Gas Limited (MNGL)

ONGC Petro-additions Limited (OPaL)

Petronet LNG Limited (PLL)

Ratnagiri Gas and Power Private Limited (RGPPL)

Tripura Natural Gas Company Limited (TNGCL)

GAIL China Gas Global Energy Holdings Limited

Subsidiaries

GAIL has formed Subsidiaries and Joint Venture companies for City Gas Distribution

and Petrochemicals. GAIL is one of the pioneers to introduce City Gas Projects in

India for gas supplies to households, commercial users and for the transport sector by

forming Subsidiaries/ Joint Venture Companies.

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Brahmaputra Cracker and Polymer Limited (BCPL)

GAIL Gas Limited

GAIL Global (Singapore) Pte Limited

GAIL GLOBAL (USA) INC., (GGUI)MILESTONES

1984   GAIL (India) Ltd was formed  

 1987   HVJ (Hazira – Vijaipur – Jagdishpur) Natural Gas pipeline

commissioned

 

 1989   First Year of profit registered  

 1990   LPG Plant Phase – I at Vijaipur commissioned  

 1992   Gas Marketing functions transferred to GAIL  

 1993   Maiden dividend of Rs. 20 Crores paid to its shareholders  

 1994   First JV Mahanagar Gas Limited formed with British Gas

incorporated to implement Mumbai City Gas Distribution project

 

 1995   Propane recovery plants at Vijaipur commissioned  

 1996   GAIL listed in NSE, BSE and DSE  

 1997   Government of India granted Navratna status to GAIL  

 1998   Indraprastha Gas Limited (IGL) incorporated for supply of gas to

household sector, transport sector & commercial consumers in

Delhi.

 

 1999   LPG plants at Usar and Lakwa commissioned  

 1999   Uttar Pradesh Petrochemical Complex (UPPC) at Pata

commissioned with a design capacity of 3 lacs TPA of Ethylene to

produce 2. 60 lacs TPA of HDPE & LLDPE.

 

 2000   LPG plant at Pata with a design capacity of 2.58 lacs TPA of LPG

commissioned

 

 2000   Participated in under NELP- I and 2 blocks awarded  

 2001   Jamnagar-Loni LPG Pipeline Project, world’s longest and India's

first Cross-Country LPG 1269 km long pipeline commissioned

 

 2001   LPG plant at Gandhar commissioned  

 2002   GAIL picks up 12% equity stake in GSEGs 156MW power project

in Gujarat

 

 2003   GAIL has an initial success in the form of significant gas find in the

block A-1 in Myanmar and discovery of Oil and Gas in the Cambay

 

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Block.

 2003   Bhagyanagar Gas Limited, a joint venture of GAIL and HPCL,

incorporated in August 2003, in the field of distribution and

marketing of Auto LPG, CNG for vehicles and retailing of natural

gas in cities of Andhra Pradesh.

 

 2003   Vizag- Secunderabad LPG pipeline, the 580 km pipeline with a

maximum throughput of 1.16 MMPTPA completed

 

 2003  GAIL successfully secures participation in 2 retail gas companies in

Egypt, Fayum Gas Company and Shell CNG.

 

 2004  Dahej - Vijaipur natural gas pipeline commissioned  

 2004  A wholly-owned subsidiary company GAIL Global (Singapore) Pte

Ltd formed in Singapore

 

 2004  Platts declares GAIL as the first among Global Gas Utilities based on

Return on Invested Capital (ROIC) in its worldwide survey of Top

250 Energy Companies in 2004.

 

 2004  Tripura Natural Gas Co. Ltd., a Joint Venture for city gas project in

Tripura and UP Central Gas Ltd., a Joint Venture for city gas project

with BPCL in Kanpur, incorporated

 

 2004  GAIL acquired 15% equity stake in NatGas, Egypt  

 2005  Inauguration of the National Gas Management Centre (NGMC) of

GAIL at NOIDA

 

 2006  GAIL brings India’s first spot LNG cargo at Dahej  

 2006  GAIL consortium wins 3 CBM blocks in III round of bidding  

 2007  MoP&NG authorization for 5 new major pipelines received  

 2007  Brahmaputra Cracker and Polymer Limited, a Joint Venture Company

led by GAIL, formed for implementing Assam Gas Cracker Project

 

 2007  GAIL forms a Joint Venture Company (JVC) with China Gas Global

Energy Holdings Limited.

 

 2007  Expansion of Petrochemical Plant at Pata for increasing capacity from

310,000 TPA LLDPE/HDPE to 410,000 TPA completed

 

 2008  Dahej - Panvel- Dabhol pipeline commissioned  

 2008  GAIL Gas Limited incorporated for CGD  

 2008  GAIL Gas limited wins the rights for rolling out city gas distribution

projects in Meerut, Sonepat, Dewas and Kota.

 

 2009  GAIL gets SCOPE Meritorious Award for Corporate Governance for

the year 2007-08.

 

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 2010  Representative Office in Egypt opened  

 2010  GAIL ranked no.1 company among gas utilities in Asia in the Platts

Global Ranking.

 

2010  GAIL conferred “MoU Excellence Award” for the year 2008-09 by

Prime Minister of India

 

2010  GAIL ranked no.1 company among gas utilities in Asia in the Platts

Global Ranking

 

2010  Petroleum Federation of India (PETROFED) Awards 2010 for Oil &

gas Marketing – Company of the year

 

2011  AIMA Managing India Awards 2011 for Outstanding PSU of the year  

2011  GAIL’s growth strategy for the period 2011-20 approved by the

Board

 

2011  GAIL started its journey towards “Sustainability Reporting”  

2011  GAIL acquired a 20% stake in Houston-based Carrizo Oil and Gas’s

Eagle Ford shale acreage, first instance of a PSU acquiring shale

assets in USA

 

2011  A wholly-owned subsidiary company GAIL Global (USA) Inc.

formed in Houston, USA and an office was opened

 

2011  Office of GAIL Global (Singapore) Pte Ltd opened in Singapore  

2011  GAIL won rights to lay a 1550-km, $1bn natural gas pipeline from

Surat in Gujarat to Paradip in Orissa, connecting west to east coast

 

2012  GAIL conferred MoU Excellence Award for the year 2009-10 for

Best Performing CPSE in the Petroleum Sector consecutively for

second year

 

2012  GAIL has been ranked World’s No. 1 in Downstream Operations in

Platts Global Energy Awards

 

2012  GAIL signed a 20-year agreement with Sabine Pass Liquefaction

LLC, a unit of Cheniere Energy Partners, for supply of 3.5

MMPTA/year of LNG

 

2012  GAIL published its first sustainability report  

2012  GAIL become only company from Oil and Gas sector to be included

in BSE Greenex, India's first energy efficient index

 

2012  GAIL’s 2200 km Dahej-Vijaipur-Dadri-Bawana-Nangal-Bhatinda

cross-country pipeline inaugurated by Prime Minister

 

2012  GSPA signed between GAIL and TurkrnenGaz for Turkmenistan-

Afghanistan-Pakistan-India (TAPI) Gas Pipeline Project

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AWARDS

GAIL’s achievements have been constantly recognized by the industry and following is

the list of some awards recently conferred upon GAIL:

1. Platts Global Energy Award, 2011 for ‘World’s No. 1 Company in Downstream

Operations’

2. Prime Ministers’ Excellence Award for the year 2009-10 for Best Performing

CPSE in the Petroleum Sector consecutively for second year

3. 11th ICSI National Award for Excellence in Corporate Governance, 2011

4. Corporate Governance Award 2012 by Indian Chamber of Commerce

5. Commendation Certificate from SCOPE for Corporate Governance in 2010-11

6. Commendation Certificate from PetroFed for being leading transporter of Oil &

Gas in 2011

7. AIMA Managing India Awards 2011 for Outstanding PSU of the Year.

8. Kaizen Warrior Award for Most Efficient Navratna PSU, 2011

9. No.1 gas utility company in Asia and No.2 gas utility company globally,

‘PLATTS Top 250’, 2010.

10. Petroleum Federation of India (PETROFED) Awards 2010 for Oil & Gas

Marketing Company of the Year.

11. ICSI National Award for Excellence in Corporate Governance, 2010

12. Prime Minister’s “MoU Excellence Award” for the year 2008-09

13. Petroleum Federation of India (PETROFED) Awards 2008 for Oil & Gas

Marketing Company of the Year.

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Types of ownership pattern

The most common ways to organize a business:

Sole Proprietorship

Partnership

Limited partnership

Limited Liability Company (LLC)

Corporation (for-profit)

Nonprofit Corporation (not-for-profit)

Cooperative.

Sole Proprietorships and Partnerships

For many new businesses, the best initial ownership structure is either a sole

proprietorship or -- if more than one owner is involved -- a partnership.

Sole Proprietorships

A sole proprietorship is a one-person business that is not registered with the state like

a limited liability company (LLC) or corporation. You don't have to do anything

special or file any papers to set up a sole proprietorship -- you create one just by going

into business for yourself.

Legally, a sole proprietorship is inseparable from its owner -- the business and the

owner are one and the same. This means the owner of the business reports business

income and losses on his or her personal tax return and is personally liable for any

business-related obligations, such as debts or court judgments.

Partnerships

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Similarly, a partnership is simply a business owned by two or more people that

haven’t filed papers to become a corporation or a limited liability company (LLC).

You don't have to file any paperwork to form a partnership -- the arrangement begins

as soon as you start a business with another person. As in a sole proprietorship, the

partnership's owners pay taxes on their shares of the business income on their

personal tax returns and they are each personally liable for the entire amount of any

business debts and claims.

Sole proprietorships and partnerships make sense in a business where personal

liability isn't a big worry -- for example, a small service business in which you are

unlikely to be sued and for which you won't be borrowing much money for inventory

or other costs.

Limited Partnerships

Limited partnerships are costly and complicated to set up and run, and are not

recommended for the average small business owner. Limited partnerships are usually

created by one person or company (the "general partner"), who will solicit

investments from others (the "limited partners").

The general partner controls the limited partnership's day-to-day operations and is

personally liable for business debts (unless the general partner is a corporation or an

LLC). Limited partners have minimal control over daily business decisions or

operations and, in return, they are not personally liable for business debts or claims.

Consult a limited partnership expert if you're interested in creating this type of

business.

Corporations and LLCs

Forming and operating an LLC or a corporation is a bit more complicated and costly,

but well worth the trouble for some small businesses. The main benefit of an LLC or a

corporation is that these structures limit the owners' personal liability for business

debts and court judgments against the business.

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What sets the corporation apart from all other types of businesses is that a corporation

is an independent legal and tax entity, separate from the people who own, control and

manage it. Because of this separate status, the owners of a corporation don't use their

personal tax returns to pay tax on corporate profits -- the corporation itself pays these

taxes. Owners pay personal income tax only on money they draw from the

corporation in the form of salaries, bonuses, and the like.

Like corporations, LLCs provide limited personal liability for business debts and

claims. But when it comes to taxes, LLCs are more like partnerships: the owners of an

LLC pay taxes on their shares of the business income on their personal tax returns.

Corporations and LLCs make sense for business owners who either 1) run a risk of

being sued by customers or of piling up a lot of business debts, or 2) have substantial

personal assets they want to protect from business creditors.

Nonprofit Corporations

A nonprofit corporation is a corporation formed to carry out a charitable, educational,

religious, literary, or scientific purpose. A nonprofit can raise much-needed funds by

soliciting public and private grant money and donations from individuals and

companies.

The federal and state governments do not generally tax nonprofit corporations on

money they take in that is related to their nonprofit purpose, because of the benefits

they contribute to society.

Cooperatives

Some people dream of forming a business of true equals -- an organization owned and operated democratically by its members. These grassroots business organizers often refer to their businesses as a "group," "collective," or "co-op" -- but these are often informal rather than legal labels. For example, a consumer co-op could be formed to run a food store, a bookstore, or any other retail business. Or a workers' co-op could be created to manufacture and sell arts and crafts. Most states do have specific laws dealing with the set-up of cooperatives, and in some states you can file paperwork with the secretary of state's office to have your cooperative formally recognized by the state. Check with your secretary of state's office for more information.

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PRODUCTION LAYOUT

In manufacturing engineering, a product layout refers to a production system where

the work stations and equipment are located along the line of production, as

with assembly lines.

Usually, work units are moved along a line (not necessarily a geometric line, but a set

of interconnected work stations) by a conveyor. Work is done in small amounts at

each of the work stations on the line. To use the product layout, the total work to be

performed must be dividable into small tasks that can be assigned to each of the

workstations.

Because the work stations each do small amounts of work, the stations utilize specific

techniques and equipment tailored to the individual job they are assigned. This can

lead to a higher rate of production.

There are some steps which have to follow:

1. To Powder Substances - Place the substance in the mortar and strike it gently with

direct perpendicular blows of the pestle, until it separates into several pieces, then

remove all but a small portion, which bruise gently at first, and rub the pestle

round and round the mortar, observing that the circles described by the pestle

should gradually decrease in diameter, and then increase again, because by this

means every part of the powder is subjected to the process of pulverization.

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2. Some substances require to be prepared in a particular manner before they can be

powdered, or to be assisted by adding some other body. For example, camphor

powders more easily when a few drops of spirits of wine are added to it; mace,

nutmegs, and such oily aromatic substances are better for the addition of a little

white sugar; resins and gum resins should be powdered in a cold place, and if they

are intended to be dissolved, a little fine well washed white sand mixed with them

assists the process of powdering.

3. Be careful not to pound too hard in a glass, porcelain, or Wedge-wood's-ware

mortar; they are intended only for substances that pulverize easily, and for the

purpose of mixing or incorporating medicines. Never use acids in a marble mortar,

and be sure that you do not powder galls or any other astringent substances in an

iron mortar.

4. Sifting is frequently required for powdered substances, and this is usually done by

employing a fine sieve, or tying the powder up in a piece of muslin and striking it

against the left hand over a piece of paper.

5. Filtering is frequently required for the purpose of obtaining clear fluids, such as

infusions, eye-washes, and other medicines; and it is therefore proper that you

should know how to perform the simple operation. We must first of all make the

filter-paper; this is done by taking a square sheet of white blotting paper, and

doubling it over, so as to form an angular cup. We next procure a piece of wire,

and twist it into a form to place the funnel in, to prevent it passing too far into the

neck of the bottle. Open out the filter-paper very carefully, and having placed it in

the funnel, moisten it with a little water Then place the wire in the space between

the funnel and the bottle, and pour the liquid gently down the side of the paper,

otherwise the fluid is apt to burst the paper.

6. Maceration is another process that is frequently required to be performed in

making up medicines, and consists simply in immersing the medicines in cold

water or spirits for a certain time.

7. Digestion resembles maceration, except that the process is assisted by a gentle

heat. The ingredients are placed in a flask, such as salad-oil is sold in, which

should be fitted with a plug of tow or wood, and have a piece of wire twisted

round the neck. The flask is held by means of the wire over the flame of a spirit

lamp, or else placed in some sand warmed in an old iron saucepan over the fire,

20

care being taken not to place more of the flask below the sand than the portion

occupied by the ingredients.

8. Infusion is one of the most frequent operations required in making up medicines,

its object being to extract the aromatic and volatile principles of substances that

would be lost by decoction or digestion; and to extract the soluble from the

insoluble parts of bodies. Infusions may be made with cold water, in which case

they are weaker, but more pleasant. The general method employed consists in

slicing, bruising, or powdering the ingredients first, then placing them in a

common jug, and pouring boiling water over them; cover the jug with a cloth

folded six or eight times, but if there is a lid to the jug so much the better; when

the infusion has stood the time directed, hold a piece of very coarse linen over the

spout, and pour the liquid through it into another jug.

9. Decoction, or boiling, is employed to extract the mucilaginous or gummy parts of

substances, their bitter, astringent, or other qualities, and is nothing more than

boiling the ingredients in a saucepan with the lid slightly raised. Be sure never to

use an iron saucepan for astringent decoc-tions, such as oak bark, galls, etc, as

they will turn the saucepan black and spoil the decoction. The enamelled

saucepans are very useful for decoctions, bat an excellent plan is to put the

ingredients into a jar and boil the jar, thus preparing it by a water bath, as it is

technically termed.

10. Extracts are made by evaporating the liquors obtained by infusion or decoction,

but these can be bought much cheaper and better of chemists and druggists, and so

can tinctures, confections, cerates, plasters, and syrups; but as everyone is not

always in the neighbourhood of druggists, we shall give recipes for those most

generally useful, and the method of making them.

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ORGANIZATIONAL POLICIES

As required under revised Clause 49 of the Listing Agreement the following

code of conduct has been approved by the Board of Directors and is applicable

to the Directors and Senior Management of the Company.

ETHICAL CONDUCT

All directors and senior management employees shall deal on behalf of the

Company with professionalism, honesty, integrity as well as high moral and

ethical standards. Such conduct shall be fair and transparent and be perceived

to be as such by third parties.

CONFLICT OF INTEREST

Any director or senior management employee of the Company shall not engage

in any business, relationship or activity, which might detrimentally conflict

with the interest of the Company.

TRANSPERANCY

All directors and senior management employees of the Company shall ensure

that their actions in the conduct of business are totally transparent except where

the needs of business security dictate otherwise. Such transparency shall be

brought about through appropriate policies, systems and processes.

LEGAL COMPLIANCE

All directors and senior management employees of the Company shall at all

times ensure compliance with all the relevant laws and regulations affecting

operations of the Company. They shall abreast of the affairs of the Company

and be kept informed of the Company's compliance with relevant laws, rules

and regulations. In the event that the implication of law is not clear, the course

of action chosen must be supported by eminent legal counsel whose opinion

should be documented.

RIGHTFUL USE OF COMPANY’S ASSETS

All the assets of the Company both tangible and intangible shall be employed

for the purpose of conducting the business for which they are duly authorized.

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None of the assets of the Company should be misused or diverted for personal

purpose.

COST CONSCIOUSNESS

All the directors and senior management employees of the Company should

strive for optimum utilization of available resources. They shall exercise care

to ensure that costs are reasonable and there is no wastage. It shall be their duty

to avoid ostentation in Company expenditure.

CONFIDENTIAL INFORMATION

All directors and senior management employees shall ensure that any

confidential information gained in their official capacity is not utilized for

personal profit or for the advantage of any other person. They shall not provide

any information either formally or informally to the press or to any other

publicity media unless specifically authorized to do so. They shall adhere to the

provisions of SEBI (Prohibition of Insider Trading) Regulations, 1992.

RELATIONSHIP WITH SUPPLIERS AND CUSTOMERS

The Directors and senior management employees of the Company during the

course of interaction with suppliers and customers, shall neither receive nor

offer or make, directly and indirectly, any illegal payments, remuneration, gifts,

donations or comparable benefits which are intended or perceived to obtain

business or uncompetitive favours for the conduct of its business. However this

is not intended to include gifts of customary nature.

INTERACTION WITH MEDIA

The Directors and senior management employees other than the designated

spokespersons shall not engage with any member of press and media in matters

concerning the Company. In such cases, they should direct the request to the

designated spokespersons.

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CHAPTER-2

INDUSTRIAL ANALYSIS

24

INDUSTRY PROFILE

The petroleum industry includes the global processes of exploration, extraction,

refining, transporting (often by oil tankers and pipelines), and marketing

petroleum products. The largest volume products of the industry are fuel

oiland gasoline (petrol). Petroleum (oil) is also the raw material for many chemical

products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The

industry is usually divided into three major components: upstream, midstream and

downstream. Midstream operations are usually included in the downstream category.

Petroleum is vital to many industries, and is of importance to the maintenance of

industrial civilization in its current configuration, and thus is a critical concern for

many nations. Oil accounts for a large percentage of the world’s energy consumption,

ranging from a low of 32% for Europe and Asia, to a high of 53% for the Middle East.

Other geographic regions’ consumption patterns are as follows: South and Central

America (44%), Africa(41%), and North America (40%). The world consumes 30

billion barrels (4.8 km³) of oil per year, with developed nations being the largest

consumers. The United States consumed 25% of the oil produced in 2007.[1] The

production, distribution, refining, and retailing of petroleum taken as a whole

represents the world's largest industry in terms of dollar value.

Governments such as the United States government provide a heavy public subsidy to

petroleum companies, with major tax breaks at virtually every stage of oil exploration

and extraction, including the costs of oil field leases and drilling equipment.

25

CURRENT ISSUES:

January 29, 2014

GAIL’s Turnover (net of Excise) for 3rd Quarter of FY 2013-14 rises by 28 % Profit

Before Tax up 32 %; Net Profit up 31 % to Rs 1,679 crore for 3rd Quarter GAIL’s

nine months Turnover (net of Excise) up by 22 % 

January 23, 2014

34th PSPB Inter-Unit Golf Championship, hosted by GAIL, gets under way Director

(Projects) inaugurates meet Top amateur golfers participating in tournament 

March 24, 2014

GAIL executes MoU with Chubu Electric of Japan for joint LNG procurement 

March 01, 2014

Dr. Ashutosh Karnatak takes charge as Director (Projects) of GAIL 

April 07, 2014

India’s Top Tennis Players vying for 33rd PSPB Inter-Unit Tennis Championship

April 05, 2014

Clarifications regarding article on arbitrations in PSUs published on 30.03.2014

April 03, 2014

GAIL’s iconic new office tower inaugurated by Secretary, MoPNG 

26

27

KEY COMPETITORS

Public-sector undertakings

The ministry has administrative control over various public-sector undertakings of the

Government of India.

Biecco Lawrie Limited Bongaigaon Refinery and Petrochemicals Limited Chennai Petroleum Corporation Limited Cochin Refineries Ltd. Gas Authority of India Limited Hindustan Petroleum Corporation Limited[2]

Indian Oil Corporation Limited IBP (merged with Indian Oil and became a subsidiary) Numaligarh Refinery Limited Oil India Limited Oil and Natural Gas Corporation Limited Mangalore Refinery and Petrochemicals Limited

28

PEST

ANALYSIS

The Ford Motor Company (NYSE: F) is an American multinational corporation based

in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry

Ford and incorporated on June 16, 1903. In addition to the Ford, Lincoln, and

Mercury brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in

the UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata

Motors of India in March 2008. In 2010 Ford sold Volvo to Geely Automobile.[5]

Ford will discontinue the Mercury brand at the end of 2010. Ford introduced methods

for large-scale manufacturing of cars and large-scale management of an industrial

workforce using elaborately engineered manufacturing sequences typified by moving

assembly lines. Henry Ford's methods came to be known around the world as Fordism

by 1914.

Ford is currently the second largest automaker in the U.S. and the fourth-largest in the

world based on number of vehicles sold annually, directly behind Volkswagen Group.

[6] In 2007, Ford fell from second to third in US annual vehicle sales for the first time

in 56 years, behind only General Motors and Toyota. However, Ford occasionally

outsells Toyota in shorter periods (most recently, during the summer months of 2009).

By the end of 2009, Ford was the third largest automaker in Europe (behind

Volkswagen and PSA Peugeot Citroën).[7] Ford is the eighth-ranked overall

American-based company in the 2010 Fortune 500 list, based on global revenues in

2009 of $118.3 billion.[8] In 2008, Ford produced 5.532 million automobiles[9] and

29

employed about 213,000 employees at around 90 plants and facilities worldwide.

During the automotive crisis, Ford's worldwide unit volume dropped to 4.817 million

in 2009. Despite the adverse conditions, Ford ended 2009 with a net profit of $2.7

billion.[10] Starting in 2007, Ford received more initial quality survey awards from J.

D. Power and Associates than any other automaker. Five of Ford's vehicles ranked at

the top of their categories[11] and fourteen vehicles ranked in the top three.[12]The

Ford Motor Company (NYSE: F) is an American multinational corporation based in

Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford

and incorporated on June 16, 1903. In addition to the Ford, Lincoln, and Mercury

brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK.

Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of

India in March 2008. In 2010 Ford sold Volvo to Geely Automobile.[5] Ford will

discontinue the Mercury brand at the end of 2010. Ford introduced methods for large-

scale manufacturing of cars and large-scale management of an industrial workforce

using elaborately engineered manufacturing sequences typified by moving assembly

lines. Henry Ford's methods came to be known around the world as Fordism by 1914.

Ford is currently the second largest automaker in the U.S. and the fourth-largest in the

world based on number of vehicles sold annually, directly behind Volkswagen Group.

[6] In 2007, Ford fell from second to third in US annual vehicle sales for the first time

in 56 years, behind only General Motors and Toyota. However, Ford occasionally

outsells Toyota in shorter periods (most recently, during the summer months of 2009).

By the end of 2009, Ford was the third largest automaker in Europe (behind

Volkswagen and PSA Peugeot Citroën).[7] Ford is the eighth-ranked overall

American-based company in the 2010 Fortune 500 list, based on global revenues in

2009 of $118.3 billion.[8] In 2008, Ford produced 5.532 million automobiles[9] and

employed about 213,000 employees at around 90 plants and facilities worldwide.

During the automotive crisis, Ford's worldwide unit volume dropped to 4.817 million

in 2009. Despite the adverse conditions, Ford ended 2009 with a net profit of $2.7

billion.[10] Starting in 2007, Ford received more initial quality survey awards from J.

D. Power and Associates than any other automaker. Five of Ford's vehicles ranked at

the top of their categories[11] and fourteen vehicles ranked in the top three.

Political

* The company’s move must be in accordance to the governmental policy

* The acts of the company must n according to the tax policies on every government

30

Economic

* The company can reduce the cost of structures of its products

* The increase in the market share can also be applicable to the company

* It can also maintain its profitability

Social

* Cut on the personnel and on the jobs

* The impact on many lives and to the strong partnerships in the suppliers

* The minimal number of staffs can be a hindrance

Technological

* The upgraded technology on the product of Ford for strengthening the growth

segments and to produce profitability

* The company’s Chicago Assembly Plant that can be use for the production of

vehicles

* Creation of new small cars and crossover cars signifies technological advancement

* Fuel saving devices can also be introduced

31

PORTERS 5 FORCES MODEL

Porter five forces analysis is a framework for industry analysis and business strategy

development. It draws upon industrial organization (IO) economics to derive five

forces that determine the competitive intensity and therefore attractiveness of

a market. Attractiveness in this context refers to the overall industry profitability. An

"unattractive" industry is one in which the combination of these five forces acts to

drive down overall profitability. A very unattractive industry would be one

approaching "pure competition", in which available profits for all firms are driven

to normal profit. This analysis is associated with its principal innovator Michael E.

Porter presently at Harvard University as of 2014.

Three of Porter's five forces refer to competition from external sources. The

remainder are internal threats.

Porter referred to these forces as the micro environment, to contrast it with the more

general term macro environment. They consist of those forces close to a company that

affect its ability to serve its customers and make a profit. A change in any of the

forces normally requires a business unit to re-assess the marketplace given the overall

change in industry information. The overall industry attractiveness does not imply that

32

every firm in the industry will return the same profitability. Firms are able to apply

their core competencies, business model or network to achieve a profit above the

industry average. A clear example of this is the airline industry. As an industry,

profitability is low and yet individual companies, by applying unique business

models, have been able to make a return in excess of the industry average.

Porter's five forces include - three forces from 'horizontal' competition: the threat of

substitute products or services, the threat of established rivals, and the threat of new

entrants; and two forces from 'vertical' competition: the bargaining power of suppliers

and the bargaining power of customers.

This five forces analysis, is just one part of the complete Porter strategic models. The

other elements are the value chain and the generic strategies.[citation needed]

Porter developed his Five Forces analysis in reaction to the then-popular SWOT

analysis, which he found unrigorous and ad hoc.[1] Porter's five forces is based on

the Structure-Conduct-Performance paradigm in industrial organizational economics.

It has been applied to a diverse range of problems, from helping businesses become

more profitable to helping governments stabilize industries.

33

CHAPTER-3

MARKETING STRATEGIES

34

MARKETING MIX

The term "marketing mix" was first used in 1953 when Neil Borden, in his American

Marketing Association presidential address, took the recipe idea one step further and

coined the term "marketing-mix". A prominent marketer, E. Jerome McCarthy,

proposed a 4 P classification in 1960, which has seen wide use. The four Ps concept is

explained in most marketing textbooks and classes.

Four P's

Elements of the marketing mix are often referred to as 'the four Ps':

Product - A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units. Intangible

products are service based like the tourism industry & the hotel industry or

codes-based products like cellphone load and credits. Typical examples of a

mass produced tangible object are the motor car and the disposable razor. A

less obvious but ubiquitous mass produced service is a computer operating

system. Packaging also needs to be taken into consideration. Every product is

subject to a life-cycle including a growth phase followed by an eventual period

of decline as the product approaches market saturation. To retain its

competitiveness in the market, product differentiation is required and is one of

the strategy to differentiate from its competitors.

Price – The price is the amount a customer pays for the product. It is

determined by a number of factors including market share, competition,

material costs, product identity and the customer's perceived value of the

product. The business may increase or decrease the price of product if other

stores have the same product.

Place – Place represents the location where a product can be purchased. It is

often referred to as the distribution channel. It can include any physical store

as well as virtual stores on the Internet. Place is not exactly a physical store

where it is available Place is nothing but how the product takes place or create

image in the mind of customers. It depends upon the perception of customers.

Promotion represents all of the communications that a marketer may use in

the marketplace. Promotion has four distinct elements: advertising, public

35

relations, personal selling and sales promotion. A certain amount of crossover

occurs when promotion uses the four principal elements together, which is

common in film promotion. Advertising covers any communication that is

paid for, from cinema commercials, radio and Internet adverts through print

media and billboards. Public relations are where the communication is not

directly paid for and includes press releases, sponsorship deals, exhibitions,

conferences, seminars or trade fairs and events. Word of mouth is any

apparently informal communication about the product by ordinary individuals,

satisfied customers or people specifically engaged to create word of mouth

momentum. Sales staff often plays an important role in word of mouth and

Public Relations (see Product above).

Extended Marketing Mix (3 Ps)

Now a days three more Ps have been added to the marketing mix namely People,

Process and Physical Evidence. This marketing mix is known as Extended Marketing

Mix.

People: All people involved with consumption of a service are important. For

example workers, management, consumers etc

Process: Procedure, mechanism and flow of activities by which services are

used.

Physical Evidence: The environment in which the service or product is

delivered, tangible are the one which helps to communicate and intangible is

the knowledge of the people around us.

36

STP ANALYSIS

Market segmentation

It is the act of dividing a market into distinct groups of buyers who require

separate products.

Its market research division has segmented consumers on the basis of

following:

1. Geographic variables

2. Demographic variables

3. User status and lifestyle

Market targeting

Act of developing measures of segment attractiveness.

Involves evaluating various market segments.

It targets different segments of population of all categories of age groups.

Also targets the population outside India.

Market positioning

Market positioning is the manipulation of a brand or family of brands to create a

positive perception in the eyes of the public. If a product is well positioned, it will

have strong sales, and it may become the go-to brand for people who need that

particular product. Poor positioning, on the other hand, can lead to bad sales and a

dubious reputation. A number of things are involved in market positioning, with entire

firms specializing in this activity and working with clients to position their products

effectively.

When a product is released, the company needs to think beyond what the product is

for when it comes to positioning. It also thinks about the kinds of people it wants to

buy the product. For example, a luxury car manufacturer might be less interested in

promoting reliability, and more interested in promoting drivability, appealing to

people who are looking for high-end cars which are enjoyable and exciting to drive.

Conversely, a company making mouthwash might want to go for the bottom end of

the market with an appealing low price, accompanied by claims asking consumers to

“compare to the leading brand” so that they can see that the product contains the same

active ingredients as a famous brand, at a much lower price. Market positioning is a

tricky process. Companies need to see how consumers perceive their product, and

37

how differences in presentation can impact perception. Periodically, companies may

reposition, trying to adjust their perception among the public. For example, a

company might redesign product packaging, start a new ad campaign, or engage in

similar activities to capture a new share of the market.

Companies also engage in depositioning, in which they attempt to alter the perception

of other brands. While outright attacks on rival brands are frowned upon and may be

illegal unless they are framed very carefully, companies can use language like

“compared to the leading brand” or “we're not like those other brands.” A television

ad, for example, might contrast two paper towels: the brand being advertised, and a

“generic” with a package which looks suspiciously similar to a popular brand of paper

towels, but isn't quite identical.

Developing a market positioning strategy is an important part of theresearch and

development process. The marketing department may provide notes during product

development which are designed to enhance the product's position, and they also

determine the price, where the product should be sold, and how it should be

advertised. Every aspect of the product's presentation will be carefully calculated to

maximize its position, with the goal of market positioning being domination.

Marketing strategy adopted

Advertisement

1. Television

2. Radio

3. Internet

4. Newspaper/magazines

5. Hoardings

38

DISTRIIBUTION CHANNELS

The chain of businesses or intermediaries through which a good or service passes

until it reaches the end consumer. A distribution channel can include wholesalers,

retailers, distributors and even the internet. Channels are broken into direct and

indirect forms, with a "direct" channel allowing the consumer to buy the good from

the manufacturer and an "indirect" channel allowing the consumer to buy the good

from a wholesaler. Direct channels are considered "shorter" than "indirect" ones.

PRODUCTS

Natural Gas

Liquid Hydrocarbon

LPG Transmission

Petrochemicals City

Gas Distribution

E&P

GAILTEL

39

PROMOTIONAL STRATEGIES

UNIQUE SELLING PROPOSITION

• To best position your practice, you need to develop a powerful and compelling

unique selling proposition (USP).

• What is a USP? A unique selling proposition is a proposition that competitors

cannot make or have not made.

MARKETING PROCESS

Understand the Marketing Place, Needs, Wants & Demand

Designing a Customer Driven Strategies

Prepare a Marketing Plan

Building Customer Relationship

Capture value from customers in return

Designing a Customer Driven Marketing Strategy:

• Their main strategy that they still follow today is the diversification of

products they offer.

• According to customer’s demand they make their strategies by keeping

following points in mind;

• Which customer they will serve?

Which customer they will serve?

They serve their customers on the bases of income level, age through market

segmentation.

Their main segment which they has captured are combination of higher

incomes & dual career families.

How will they serve these customers?

40

They fulfill their customer’s demand through;

Value proposition

Positioning

Unique selling proposition (USP)

CAPTURE VALUE FROM CUSTOMER IN RETURN:

• Committed to providing uncompromising product quality offering customers

the highest value for money & giving service that is warm, friendly &

personal.

• They also follow social factors to maintain their image through corporate

social responsibility.

Designing a Customer Driven Marketing Strategy:

• Their main strategy that they still follow today is the diversification of

products they offer.

• According to customer’s demand they make their strategies by keeping

following points in mind;

41

CHAPTER-4

FINANCIAL ANALYSIS

42

SOURCES OF FINANCE

Share holders Fund

Shareholder funds is all the money belonging to common stock shareholders which

includes the balance of share capital, all profits retained and money classified as

reserves.

Loan Funds

A Loan Fund is a source of money from which loans are made for small business

development projects. A loan is made to one person or business at a time and, as

repayments are made, funds become available for new loans to other businesses.

Hence, the money revolves from one person or business to another.

Deferred Tax Liabilities

An APPLE on a company's balance sheet that is a result of temporary differences

between the company's APPLE accounting and tax carrying values, the anticipated

and enacted income tax rate, and estimated taxes payable for the current year. This

liability may or may not be realized during any given year, which makes the deferred

status appropriate.

Methods or Devices of Financial Analysis:

A Number of methods or devices are used to study the relationship between

different statements. The following methods of analysis are generally used:

i. Comparative statements

ii. Trend analysis

iii. Common –size statements

iv. Funds flow analysis

v. Cash flow analysis

vi. Ratio analysis

vii. Cost-volume-profit analysis

In this project the Comparative Statement and Ratio Analysis is used to study the

financial statement of Orissa State Co-operative Bank Ltd.

43

Comparative statements:

The comparative financial statements are statements of the financial position at

different periods of time. The elements of financial position are shown in a

comparative form so as to give an idea of financial position at two or more periods.

Any statement prepared in a comparative form will be covered in comparative

statements. From practical point of view generally, two financial statements

1. Balance Sheet 2. Income Statement

Comparative balance sheet

The comparative balance sheet analysis is the study of the trend of the same

items, group of items and computed items, group of items and computed items in two

or more balance sheets of the same business enterprise on different dates. The changes

in periodic balance sheet items reflect the conduct of a business. The changes can be

observed by comparison of the balance sheet at the beginning and at the end of a

period and these changes can help in forming an opinion about the progress of an

enterprise. The comparative balance sheet has two columns for the data of original

balance sheets. A third column is used to show this increase in figures. The fourth

column may be added for giving percentage of increases and decreases.

Guidelines for Interpretation of Comparative Balance Sheet:

While interpreting comparative balance sheet the interpreter is expected to study the

following aspects:

1. Current Financial Position and Liquidity Position

2. Long term Financial Position

3. Profitability of the Concern

1. For studying the Financial Position and short term Financial Position of a

concern, one sees the working capital in both the years. The excess of current

assets over current liabilities will give the figure of working capital. The

increase in working capital means improvement in the current financial

position of the business. An increase in current assets APPLE ompanied by the

increase in current liabilities of the same amount will not show any

improvement in short term financial position. One should study the increase or

decrease in current assets and current liabilities and this will enable him to

analyse the current financial position.

44

The second aspect which should be studied in current financial position

is the liquidity position of the concern. If liquid assets like cash in hand, cash

at bank, bills receivable, debtors, etc. show an increase in the second year over

the first year, this will improve the liquidity position of the concern. The

increase in inventory can be on APPLE ount of APPLE umulation of stocks

for want of customers, decrease in demand or inadequate sales promotion

efforts. An increase in inventory may increase working capital of the business

but it will not be good for business.

2. The long term financial position of the concern can be analysed by studying

the changes in fixed assets, long term liabilities and capital. The proper

financial policy of concern will be to finance fixed assets by the issue of either

long-term securities such as debentures, bonds, loans from financial

institutions or issue of fresh share capital. An increase in fixed assets should

be compared to the increase in long term loans and capital. If the increase in

fixed assets is more than the long term securities then parts of fixed assets

have not only been financed from long term sources. A wise policy will be to

finance fixed assets by raising long term funds.

3. The new aspects to be studied in a comparative balance sheet questions is the

profitability of the concern. The study of increase or decrease in retained

earnings, various resources and surpluses, etc. will enable the interpreter to see

whether the profitability has improved or not. An increase in the balance of

profit and loss APPLE ount and the other resources created from profits will

mean an increase in profitability to the concern. The decrease in such APPLE

ounts may mean issue dividend, issue of bonus share or deterioration in

profitability of the concern.

4. After studying various assets and liabilities an opinion should be formed about

the financial position of the concern. One cannot say if short term financial

position is good then long term financial position will also be good or vice

versa. A concluding word about the overall financial position must be given at

the end.

45

Comparative Income Statement:

The income statement gives the results of the operation of a business. The

comparative income statement gives an idea of the progress of a business over a

period of time. The changes in absolute data in money values and percentages can be

determined to analyse the profitability of the business. Like comparative balance sheet

income statement also has four columns. First two columns give figures of various

items for two years. Third and fourth columns are used to show increase or decrease

in figures in absolute amounts and percentages respectively.

Guidelines for Interpretation of Comparative Income Statement:

The analysis and interpretation of income statement will involve the following steps:

1. The increase or decrease in sales should be compared with the increase or

decrease in costs of goods sold. An increase in sales will not always mean an

increase in profit. The profitability will improve if increase in sales is more

than increase in costs of goods sold. The amount of gross profit should be

studied in the first step.

2. The second step of analysis should be the operational profits. The operating

expenses such as office and administrative expenses, selling and distribution

expenses should be deducted from gross profit to find out operating profits.

An increase in operating profit will result from the increase in sales position

and control of operating expenses. A decrease in operating profit may be due

to an increase in operating expenses or decrease in sales. The change in

individual expenses should also be studied. Some expenses may increase due

to the expansion of business activities while others may go up due to

managerial inefficiency.

3. The increase or decrease in net profit will give an idea about the overall

profitability of the concern. Non operating expenses such as interest paid,

losses from sales of assets, writing off deferred expenses, payment of tax, etc.

decrease the figure of operating profit. When all non-operating expenses are

deducted from operational profit, we get a figure of net profit. Some non

operating incomes may also be there which will increase net profit. An

increase in net profit will gave us an idea about the progress of the concern.

46

4. An opinion should be formed about profitability of the concern and it should

be given at the end. It should be mentioned whether the overall profitability of

the concern is good or not.

Focus of Financial Statement Analysis:

Financial statement analysis involves evaluating different aspects of a business

enterprise, which are of great importance to different users such as management,

investors, creditors, bankers, analyst, investment advisers, etc. generally, the

following analyses are made while making Financial Statement Analysis.

1. Liquidity or short term solvency analysis

2. Profitability analysis

3. Capital structure or gearing analysis

4. Market strength or investor analysis

5. Growth and stability analysis

Application of Financial Analysis:

Following are the application of financial analysis:

1. Assessing Corporate Excellence

2. Judging credit worthiness

3. Forecasting bankruptcy

4. Valuing equity shares

5. Predicting bonds ratings

6. Estimating market risk

Limitations of Financial Statement Analysis:

Financial analysis is a powerful mechanism of determining financial strengths and

weakness of a firm. But, the analysis is based on the information available in the

financial statements. Thus, the financial analysis suffers from serious inherent

limitations of financial statements. The financial analyst has also be careful about the

impact of price level changes, windows dressing of financial statements, changes in

the APPLE policies of a firm, APPLE concepts and conventions, and personal

judgment, etc. The readers are advised to relate the limitations of financial statements

as given in the previous chapter and also the limitations of ratios as a tool of financial

analysis as discussed in Ratio Analysis. Some of the important limitations of financial

analysis are, however, summed up as below:

47

i. It is only a study of interim reports.

ii. Financial analysis is based upon only monetary information and non-

monetary factors are ignored.

iii. It does not consider changes in price levels.

iv. As the financial statements are prepared on the basis of a going concern, it

does not give exact position. Thus APPLE concepts and conventions cause

a serious limitation to financial analysis.

v. Changes in APPLE procedure by a firm may often make financial analysis

misleading.

vi. Analysis is only a means and not an end in itself. The analyst has to make

interpretation and draw his own conclusions. Different people may

interpret the same analysis in different ways.

Overview of Ratio Analysis

Introduction:

Ratio analysis is one of the techniques used to analyse the financial statements. It

is one of the most powerful tools of financial analysis. It is the process of establishing

and interpreting various ratios (quantitative relationship between figures and group of

figures). Through ratio analysis financial statement can analyse more clearly and

decision made from such analysis.

Nature of Ratio Analysis:

Ratio analysis is a technique of analysis and interpretation of financial statements.

It is the process of establishing and interpreting various ratios for helping in making

certain decision. However, ratio analysis is not an end in itself. It is only a means of

better understanding of financial strength and weaknesses of affirm. Calculation of

mere ratios does not serve any purpose, unless several appropriate ratio are analysed

and interpreted. There are a number of ratios which can be calculated from the

information given in the financial statements, but the analyst select the appropriate

data and calculate only a few appropriate ratios from the same keeping in mind the

objective of analysis. The ratios may be used as a symptom like blood pressure, the

pulse rate or the body temperature and their interpretation depends upon the caliber

48

and competence of the analyst. The following are the four steps involved in the ratio

analysis:

i. Selection of relevant data from the financial statements depending upon the

objective of the analysis.

ii. Calculation of appropriate ratios from the above data.

iii. Comparison of the calculated ratios with the ratios of the same firm in the

past, or the ratios developed from projected financial statements or the ratio

of some other firms or the comparison with ratios of the industry to which the

firm belongs.

iv. Interpretation of the ratios.

Use and Significance of Ratio Analysis:

Helpful in decision making.

Helpful in financial forecasting and planning.

Helpful in communication.

Helpful in co-ordination.

Helpful in Control.

Helpful in efficiency appraisal.

Helpful in evaluation of financial position.

49

CHAPTER-5

KEY LEARNINGS OF THE

COMPANY

50

SWOT ANALYSIS

Strength

1.India's major oil and gas company 2.Operates largest Lube refiniery in India 3.Large product portfolio4.Owns and operates the largest Lube Refinery in India producing Lube Base Oils of international standards5.Produces over 300+ grades of Lubes, Specialities and Greases

Weakness

1.Legal issues 2.Employee management3.Human right issues, rehabilitation issues4.Environmental hazards from wastes

Opportunity

1.Increasing fuel/oil prices 2.Increasing natural gas market 3.More oil well discoveries 4.Expand export market

Threats1.Government regulations 2.High Competition from other players

51

Performance analyst

Here's a list of some of the things you maybe doing as part of a performance analysis:

Interviewing a sponsor

Reading the annual report

Chatting at lunch with a group of customer service representatives

Reading the organization's policy on customer service, focusing particularly on the

recognition and incentive aspects

Listening to audiotapes associates with customer service complaints

Leading a focus group with supervisors

Interviewing some randomly drawn representatives

Reviewing the call log

Reading an article in a professional journal on the subject of customer service

performance improvement

Chatting at the supermarket with somebody who is a customer, who wants to tell

you about her experience with customer service

Organizational Leadership

If leadership in organizations really isn’t an individual characteristic, then what is it,

and what does it do? It’s all well and good to argue that we’ve had it wrong all these

years about how organizations are best led; it’s even entertaining to see the self-

involved and self-congratulatory individual leader hauled over the coals for a change.

But when we refocus on the issue after absorbing these ideas, there they remain:

organizations. And the question remains, as well: how are they to be led?

To begin with, the concept of organizational leadership, as described here, is not

entirely new. For almost a century, various observers have glimpsed the self-

organizing characteristics of groups, and their natural tendency, more or less of their

own accord, to design and direct their own affairs. More than that, there have also

been suggestions in the literature that leadership and authority are to be viewed as

distinctly separate phenomena.

A self-organizing – better, a self-leading – group may sound terrific. But if you’re an

owner, you’re likely to have some valid reservations about surrendering the fate of

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your investment and goals to that process. You will want, directly or through the

medium of professional executive management, to direct and control the operation of

that process. This is accomplished through placing a distinct and separate authority at

the top of the organization, in order to manage the otherwise self-directing leadership

that exists naturally within it.

That authority at the top is not leadership as commonly understood. Rather, it

is command. It gives legitimate expression to the superior role of management over

the inferior function of leadership.

On the other hand, organizational leadership, as described in Managing Leadership, is

inherent in the very nature of the organization. It arises from the peculiar relationships

that form among people joined together in a collaborative effort. As such, it takes on

an identity of its own, existing in these relationships, rather than merely in the

individuals who enter into them. Thus, it both influences, and is influenced by, those

individuals. It communicates their organizational impressions and needs throughout

the organization.” In an intelligently managed organization, that leadership isn’t a

randomly operating process; it’s “a propulsive force given motion by purpose, and by

a joint effort to accomplish it.” That is its natural tendency, its bias. But it is

management’s role to ensure that this organizational leadership has a substantive and

meaningful core around which to form itself and to give it traction for advancing the

organization toward its stated ends. Using these as a basis, organizational leadership

can provide the functions of leadership to an organizationally beneficial degree that

cannot be matched by individual charismatic leaders alone. It is also far more reliably

focused on the organization’s ability to accomplish its own purposes and ensure its

own sustainability (rather than resulting in the perversion of those to the interests of

senior executive “leaders”)

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EXPANSION

Plans to increase turnover to Rs 1 lakh crore by 2020 from Rs 24,996 crore.

GAIL India, the state-run gas transmission and marketing company, has charted a new

corporate business plan up to 2020. The focus is on consolidation, expansion and

diversification.

It plans to consolidate presence in petrochemicals and renewable, allocate 15 per cent

of annual capital expenditure for exploration and production (E&P), pick up equity in

upstream LNG (liquefied natural gas) projects abroad, and pursue investments in

shale gas projects in and outside India. Besides, GAIL India is keen to expand its city

gas distribution business and undertake distributed generation projects along its

pipelines.

B C Tripathi, chairman and managing director of GAIL India, told Business Standard

that: “The new corporate business plan, titled ‘Next Wave’, aims at increasing the

company’s turnover to Rs 1 lakh crore by 2020 from the current level of Rs 24,996

crore. Our current networth is of the order of Rs 60,000 crore.”

The company has no plans for initial public offering, but it would use multiple

instruments to mobilise resources to finance its projects. The company plans to spend

nearly Rs 1,000 crore annually on E&P, according to him.

“So far, GAIL India has been a minority partner in E&P of 29 blocks. However, in

view of the board’s decision to allocate 15 per cent of the annual capex, the company

would participate in the ninth round of the New Exploration Licensing Policy.”

According to Tripathi, GAIL India plans to commence drilling in its Rajasthan block

by January and in Cauvery block by April. “We are in the midst of strengthening of

the human resources for E&P.”

On renewable energy, Tripathi said GAIL India’s five-megawatt (Mw) wind power

project was up and running. “We will set up another wind project of 50 Mw. Besides,

the company would participate in the National Solar Mission, with the development

of 50 Mw solar thermal power project.”

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Tripathi said the company proposed to pick up equity in upstream LNG projects in

Africa, Indonesia, Malaysia and Australia. “We may be a minor or major stake holder

in such projects depending on the cost.”

The company is also scouting investment opportunities in India and abroad in shale

gas. Investments in shale gas projects would be done alone or through consortium.

GAIL India, either individually or through joint ventures, is engaged in expanding

city gas distribution network. It is also investing Rs 27,000 crore by 2013-14 for

laying natural gas transmission network.

“By December, the gas transmission capacity would be increased to a level of 350

million standard cubic meters per day (mscmd) from 170 mscmd. The pipeline

network would be increased to 12,000 kilometres (km) from 8,000 km,” Tripathi said.

The company has a 72 per cent market share in gas transmission and plans to double

the existing transportation capacity in the next two to three years.

Along pipelines, it plans to tap opportunities in the development of distributed

generated power projects, which would be gas-based and meet the local requirement

of power.

Tripathi said: “During 2010-11, GAIL India would raise Rs 6,275 crore through

domestic and foreign lenders. Of the $300-million external credit assistance, it has

already got $100 million, Rs 1,250 crore from HDFC and Rs 700 crore from Oil

Industry Development Board.”

He said the company planned to raise Rs 8,000 crore in 2011-12 through domestic,

inter-corporate loan and external commercial borrowings.

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CONTRACTION

A contraction is a shortened version of the written and spoken forms of a word,

syllable, or word group, created by omission of internal letters (actually, sounds).[1] In traditional grammar, contraction can denote the formation of a new word from

one word or a group of words, for example, by elision. This often occurs in rendering

a common sequence of words or, as in French, in maintaining a flowing sound.

In linguistic analysis, contractions should not be confused

with abbreviations or acronyms(including initialisms), with which they share

some semantic and phonetic functions, though all three are connoted by the term

"abbreviation" in loose parlance.[1] Contraction is also distinguished from clipping,

where beginnings and endings are omitted.

DIVERSIFICATION

GAIL today has reached new milestones with its strategic diversification into

Petrochemicals, Telecom and Liquid Hydrocarbons besides gas infrastructure. The

company has also extended its presence in Power, Liquefied Natural Gas re-

gasification, City Gas Distribution and Exploration & Production through equity and

joint ventures participations. Incorporating the new-found energy into its corporate

identity, Gas Authority of India was renamed GAIL (India) Limited on November 22,

2002.

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FINDINGS AND RECOMMENDATIONS

FINDINGS

1) The retailers on their outlets do not properly place the glow signboard and the

company or distributors do not do the distribution of the boards properly.

2) Sales promotion schemes are important to influence the consumer. The retailer

was dissatisfied by the promotional schemes of the company. The distributors

were not distributing all the schemes properly to the retailer.

3) The competitor’s sales promotion schemes were not much effective but schemes

were properly distributed to the retailers.

4) The company has strong distribution channel but the retailers were not satisfied by

the services of the distributors.

5) Number of root vehicle is very less as compare to the size of the market.

6) The merchandising equipments distributed by the company are not being

maintained properly by the company.

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RECOMMENDATIONS

1) The company must ensure that Reebok is not used to display vehicles

properly.

2) The company must keep check on the maintenance of vehicles on the

outlets.

3) The glow signboard should be placed at the public places where maximum

people can be influenced by the sales promotion schemes by the company.

4) The company should properly maintain all merchandising equipments on all

outlets.

5) Number of root vehicle should be increased as the size of market is relatively

large.

6) As the sales promotion schemes are major tool to influence the buyer

as well as to the retailer, so the company should maintain the proper flow of

the promotional schemes as compare to the competitors.

7) The company must ensure that promotional schemes are distributed

properly by the distributors.

8) Retailer- distribution relation should be made friendly.

9) The executive of the concerned market should be made more

responsible towards his/her job.

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CONCLUSION

The aim of this project was to comparatively study on operators and others operators

and try to reveal future prospects of Reebok .In my Marketing research I found that

the demand of is going to increase day by day. The company should participate in

advertising to acquire as much benefits as possible, thus competing successfully with

other operators.

The final survey incremented my knowledge regarding how to market one’s product

efficiently and how to deal with various types of people. Thus I greatly enjoyed this

project and learnt a lot. Development of good relations with the dealers is must.

Company should also make efforts to attract more and more customers through

various schemes etc.

After conducting this survey on Reebok, I come to the conclusion that,

company has huge potential in Delhi region & it can capture major

share by providing excellent after sales service. There are some other

conclusions are also included:

The market reach of the company is very good.

The growth of the product is also appraisable

The company is a major player in the sector of power

generation.

The service providing network of the company is very strong.

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BIBLIOGRAPHY

WEBSITE

www.google.com

www.wikipedia.com

www.gail.co.in

MAGAZINES / NEWSPAPERS

Business Today

The Financial Express

The Times of India

India today

Hindustan Times

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