Str on analysis of financial performance of aircel
1. SUMMER TRAINING REPORT
ON
“An Analysis of Financial Performance”
Completed in
Aircel Ltd
In partial fulfillment for the degree of
Masters of Business Administration
Corporate Mentor: Submitted by:
Ms. Parul Gupta Deeksha Rathee
Assistant General Manager Enrol No: 02061203915
Aircel Ltd. Batch: 2015-17
BanarsidasChandiwala Institute of ProfessionalStudies,Dwarka, New Delhi
(Affiliated to Guru Gobind Singh Indraprastha University)
2. Declaration
I hereby declare that this Project Reporttitled “Analysis of Financial Performance”
submitted by me to Banarsidas Chandiwala Institute of Professional Studies,
Dwarka is a bonafide work undertaken during the period from 1st June 2016 to 31st
July 2016 by me and has not been submitted to any other University or Institution
for the award of any degree diploma / certificate or published any time before.
Date: / / 2016
Name:
Enroll. No.:
3. Bonafide Certificate
This is to certify that as per best of my belief the project entitled “ Analysis of
FinancialPerformance of Aircel ” is the bonafide research work carried out by
DeekshaRathee studentof MBA, BCIPS, Dwarka,New Delhi during June-July
2016, in partial fulfillment of the requirements for the Summer Training Project of
the Degree of Master of Business Administration.
He/She has worked under my guidance.
--------------------
Mrs.Guara Nautiyal
ProjectGuide (Internal)
Date:
-------------
Dr.ShamsherSingh
Director
Date:
4. ACKNOWLEDGEMENT
The joy of ingenuity!!! This is doubtlessly what this project is about. Before
getting to brass tacks of things. I would like to add a heartfelt word for the people
who have helped me in bringing out the creativeness of this project.
To commence with things I would like to take this opportunity to gratefully and
humbly thank to Mrs. Parul Gupta, Project guide, Aircel, Gurgaon, for being
appreciative enough by giving me an opportunity to undertake this project in
Aircel. My parents need special mentions here for their constant supportand love
in my life.
I also thank my friends and well wishers, who have provided their whole hearted
supportto me in this exercise. I believe that this Endeavor has prepared me for
taking up new challenging opportunities in future.
I would also like to extend my thanks to Mrs. Guara Nautiyal who supported and
guided me for the preparation of the project report.
DeekshaRathee
(02061203915)
MBA 3rd SEM
5. EXECUTIVE SUMMARY
This project has been undertaken to understand the financial performance of Aircel Ltd using
ratio analyses. The main objective of the report is to analyze the financial performance with the
help of financial ratios. Financial Analysis is the process of identifying the financial strengths
and weaknesses of the firm by properly establishing relationships between the items of the
balance sheet and the profit & loss account and Ratio analyses is the tool to evaluate various
aspects of a company's operating and financial performance such as its efficiency, liquidity,
profitability and solvency. .
This project aimed at to study the growth of aircel ltd in telecommunication industry .For the
research purpose secondary data has been used which is been taken from Company’s annual
reports available at the website. Descriptive research is used in the study. The researcher had to
use fact and information already available through financial statements of earlier years and
analyze these to make critical evaluation of the available material. The financial statements of
last five years are identified, studied and interpreted in light of company’s performance. After the
analyzes on liquidity ratios it has been observed that the company was easily able to meet the
long term obligations as compared to the short term obligation. From the profitability ratios, it
was observed that the company was able to make reasonable profits by keeping the overheads
under control. As per the efficiency is concerned, it was observed that the company was able to
generate the sales from the assets.
So it has been concluded through the study that the company had shown outstanding growth
during the last years with use of technology and professional management has gained a
reasonable position in the telecommunication industry. The company has managed to record
better growth in the past few years as the latter remains burdened with asset quality woes. Year
2015 has seen most profitable year for the company.
6. INDEX
Serial No. Topic Page no Signature
Executive Summary
1. Introduction
2. Company Profile
3. Literature Review
4. Objective of the study
5. Scope of the study
6. Research Methodology –
Sources of Data
Tools & Techniques of analysis
Statistical instrument used
7. Data collection & Data analysis
8. Findings
9. Conclusion
10. Suggestions
11. Bibliography
8. INTRODUCTION
INDUSTRY OVERVIEW
It is well known that the Indian Telecommunications Industry is the third largest in the world and
second largest in Asia. The sector is growing at a speed of 45% during the recent years. The
growth rate of India Telecommunication Sector is 36.22%. The growth rate of subscribers in
rural areas during 2011 was higher at 40.64% compared to 34.41% in urban areas.
This rapid growth has been possible due to various decisions made by the Government and also
due to the contributions of both the public and the private sectors. The liberal policies of the
Government provide easy market access for telecom equipment. A fair regulatory framework
followed by the Government offers telecom services to the Indian consumers at affordable
prices.
Indian Telecommunication Services can be broadly classified into:
Basic
Mobile
Internet
Basic services are further divided into two:
Fixed wire line
Wireless
In those days, fixed wire lines were used in majority but these days, mobile phones subscribers
have outnumbered the landline subscribers. In fact, it was recently stated by the Rural
Development Minister Jairam that, the number of mobiles phones in India are more than the
number of toilets. Decades back, food, clothing and shelter were the only three basic needs. But
in the current scenario, mobile phones are the fourth basic need.
9. In the year 2012, the internet subscribers have increased to 19.67 million and the numbers of
broadband connections have increased to 11.89 million.
The three new and important policies of the National Telecom Policy unveiled by the
Government is as given below:
Telecom users will be able to avail free roaming
Telecom users can keep their phone numbers even if they switch service providers
anywhere in the country
The distinction between local and STD calls would vanish, as the policy aims at a 'one-
nation-one-license' regime.
Telecom tower industry consumes around 2 bn liters of diesel in a year which is almost equal to
the consumption of diesel by the Indian railways. Thus, companies need to shell out huge money
on energy. As a result, the idea of solarisation of towers is being considered which would help in
the conservation of energy. It is not an easy task to solarize all towers but the idea might be
implemented sometime in the near future. Telecommunication is the transmission of information
over significant distances to communicate
Financial Analysis
Financial Analysis is responsible for supporting the instruction, research and public service
activities of the university. This objective is accomplished by providing analytical support to the
executive vice president and chief financial officer (EVPCFO) and the associate vice president
for Finance (AVPF). Financial Analysis provides analytical services including annual reports and
surveys, university and EVPCFO budget process, consulting services, capital planning and
recharge rate approvals.
They provide some extremely useful information to the extent that balance Sheet mirrors the
financial position on a particular date in terms of the structure of assets, liabilities and owners
equity, and so on and the Profit and Loss account shows the results of operations during a certain
period of time in terms of the revenues obtained and the cost incurred during the year. Thus the
financial statement provides a summarized view of financial position and operations of a firm
10. Tools of Financial Statement Analysis
Various tools are used to evaluate the significance of financial statement data. Three commonly
used tools are these:
Ratio Analysis
Funds Flow Analysis
Cash Flow Analysis
Ratio Analysis:
Ratio analysis isn't just comparing different numbers from the balance sheet, income statement,
and cash flow statement. It's comparing the number against previous years, other companies, the
industry, or even the economy in general. Ratios look at the relationships between individual
values and relate them to how a company has performed in the past, and might perform in the
future.
Ratio analysis is the method or process by which the relationship of items or group of items in
the financial statement are computed, determined and presented.
Ratio analysis is an attempt to derive quantitative measure or guides concerning the financial
health and profitability of business enterprises. Ratio analysis can be used both in trend and static
analysis. There are several ratios at the disposal of an analyst but their group of ratio he would
prefer depends on the purpose and the objective of analysis.
While a detailed explanation of ratio analysis is beyond the scope of this section, we will focus
on a technique, which is easy to use. It can provide you with a valuable investment analysis tool.
This technique is called cross-sectional analysis. Cross-sectional analysis compares financial
ratios of several companies from the same industry. Ratio analysis can provide valuable
information about a company's financial health. A financial ratio measures a company's
performance in a specific area. For example, one could use a ratio of a company's debt to its
equity to measure a company's leverage. By comparing the leverage ratios of two companies, one
can determine which company uses greater debt in the conduct of its business. A company whose
11. leverage ratio is higher than a competitor's has more debt per equity. You can use this
information to make a judgment as to which company is a better investment risk.
For ratios to be useful and meaningful, they must be:
o Calculated using reliable, accurate financial information.
o Calculated consistently from period to period
o Used in comparison to internal benchmarks and goals.
o Viewed both at a single point in time and as an indication of broad trends and issues over
time.
CLASSIFICATION OF RATIOS
A ratio is a statistical yardstick that provides a measure of the relationship between variables or
figures. This relationship is expressed as a percent or as a quotient.
There are four aspects of operating performance and financial condition we can evaluate from
financial ratios:
1. Liquidity ratios
2. Profitability ratios
3. Turnover ratios
4. Solvency ratios
LIQUIDITY RATIOS
Liquidity ratios are the ratios meant for testing short-term financial position of a business. These
are designed to test the ability of the business to meet its short-term obligation promptly.
The liquidity ratios are a result of dividing cash and other liquid assets by the short term
borrowings and current liabilities. They show the number of times the short term debt obligations
are covered by the cash and liquid assets. If the value is greater than 1, it means the short term
obligations are fully covered. Generally, the higher the liquidity ratios are, the higher the margin
of safety that the company posses to meet its current liabilities.
12. 1. CURRENT RATIO - The current ratio indicates a company's ability to pay its current
liabilities from its current assets. This ratio is one used to quickly measure the liquidity of a
company. The formula for the current ratio is:
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜 =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
This formula considers all current assets and current liabilities. Current assets are those assets
that are expected to turn into cash within one year. Examples of current assets are cash, accounts
receivable, and prepaid expenses. Also included in this category are marketable securities such
as government bonds and certificates of deposit. Current liabilities are those debts that are
expected to be paid or come due within a year. Examples of current liabilities are accounts
payable, payroll liabilities, and short-term notes payable.
2. QUICK RATIO – The quick ratio is a measure of a company's ability to meet its short-term
obligations using its most liquid assets (near cash or quick assets). Quick assets include those
current assets that presumably can be quickly converted to cash at close to their book values. The
formula is:
𝑄𝑢𝑖𝑐𝑘 𝑅𝑎𝑡𝑖𝑜 =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 − 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
Quick ratio is viewed as a sign of a company's financial strength or weakness; it gives
information about a company’s short term liquidity. Calculating liquid assets inventories are
deducted as less liquid from all current assets (inventories are often difficult to convert to
cash). Alternative and more accurate formula for the quick ratio is the following:
PROFITABILITYRATIOS
A profitability ratio is a measure of profitability, which is a way to measure a company's
performance. Profitability is simply the capacity to make a profit, and a profit is what is left over
from income earned after you have deducted all costs and expenses related to earning the
income. Investors and creditors can use profitability ratios to judge a company's return on
13. investment based on its relative level of resources and assets. In other words, profitability ratios
can be used to judge whether companies are making enough operational profit from their assets.
TYPES OF PROFITABILITY RATIOS
Ratios in relation to sales
1. GROSS PROFIT MARGIN - Gross margin ratio is a ratio that compares the gross margin of
a business to the net sales. This ratio measures how profitable a company sells its inventory or
merchandise. The formula is:
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡
𝑆𝑎𝑙𝑒𝑠
2. OPERATING PROFIT MARGIN - Operating margin takes into account the costs of
producing the product or services that are unrelated to the direct production of the product or
services, such as overhead and administrative expenses. The formula is:
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡
𝑆𝑎𝑙𝑒𝑠
3. NET PROFIT MARGIN - Net profit ratio is the ratio of net income (a.k.a. net profit) to
sales, and indicates how much of each dollar of sales is left over after all expenses:
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝑆𝑎𝑙𝑒𝑠
14. Ratios in relation to investment
1. RETURN ON CAPITAL EMPLOYED – Return on capital employed or ROCE is a
profitability ratio that measures how efficiently a company can generate profits from its capital
employed by comparing net operating profit to capital employed. It is calculated as:
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑 =
𝑁𝑒𝑡 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑝𝑟𝑜𝑓𝑖𝑡
𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑
2. RETURN ON ASSETS – The return on assets ratio, often called the return on total assets, is
a profitability ratio that measures the net income produced by total assets during a period by
comparing net income to the average total assets. The formula is:
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
× 100
3. RETURN ON EQUITY – Return on equity establishes the relationship between earnings
after tax and preference dividend and equity shareholder investment or capital employed. It is
calculated as:
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 𝑠ℎ𝑎𝑟𝑒 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 =
𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥, 𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑
𝐸𝑞𝑢𝑖𝑡𝑦 𝑠ℎ𝑎𝑟𝑒 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑
× 100
4. RETURN ON NET WORTH- The net worth ratio states the return that shareholders could
receive on their investment in a company, if all of the profit earned were to be passed through
directly to them. The formula is:
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝑓𝑢𝑛𝑑 =
𝑁𝑒𝑡 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥 𝑝𝑟𝑜𝑓𝑖𝑡𝑠
𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 ± 𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠
15. 5. DIVIDEND PAYOUT RATIO- Dividend payout ratio discloses what portion of the current
earnings the company is paying to its stockholders in the form of dividend and what portion the
company is plugging back in the business for growth in future. It is computed by dividing the
dividend per share by the earnings per share (EPS) for a specific period.
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑝𝑎𝑦𝑜𝑢𝑡 𝑟𝑎𝑡𝑖𝑜 =
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
TURNOVER RATIOS
Turnover ratios are also known as activity or efficiency ratios. The total funds raised by the
company are invested in acquiring various assets for its operations. The assets are acquired to
generate the sales revenue and the position of profit depends upon the value of sales. Turnover
ratios establish the relationship of sales with various assets. Turnover ratios are expressed in
integers or times rather than as a percentage or proportion. The turnover ratios are mostly
computed to measure the efficiency.
TYPES OF TURNOVER RATIOS
1. FIXED ASSETS TURNOVER RATIO – The fixed asset turnover ratio is an efficiency ratio
that measures a company’s return on their investment in property, plant, and equipment by
comparing net sales with fixed assets.
This ratio is calculated as:
𝐹𝑖𝑥𝑒𝑑 𝑎𝑠𝑠𝑒𝑡𝑠 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑓𝑖𝑥𝑒𝑑 𝑎𝑠𝑠𝑒𝑡𝑠
2. RECEIVABLES TURNOVER RATIO - Accounts receivable turnover is an efficiency
ratio or activity ratio that measures how many times a business can turn its accounts receivable
into cash during a period. The formula to calculate is:
𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =
𝑁𝑒𝑡 𝑐𝑟𝑒𝑑𝑖𝑡 𝑠𝑎𝑙𝑒𝑠
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑎𝑐𝑐𝑜𝑢𝑛𝑡 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠
16. 3. TOTAL ASSET TURNOVER RATIO - Total assets turnover ratio shows the relationship
between total assets and sales. Total assets turnover ratio indicates how well the firm's total
assets are being used to generate its sales. The formula is:
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =
𝑁𝑒𝑡 𝑠𝑎𝑙𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
4. CREDITORS TURNOVER RATIO - Accounts payable turnover is a ratio that measures the
speed with which a company pays its suppliers. If the turnover ratio declines from one period to
the next, this indicates that the company is paying its suppliers more slowly, and may be an
indicator of worsening financial condition. It is calculated as:
𝐶𝑟𝑒𝑑𝑖𝑡𝑜𝑟𝑠 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =
𝑇𝑜𝑡𝑎𝑙 𝑠𝑢𝑝𝑝𝑙𝑖𝑒𝑟 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑡𝑜𝑐𝑘
SOLVENCYRATIOS
Solvency ratios, also called leverage ratios, measure a company's ability to sustain operations
indefinitely by comparing debt levels with equity, assets, and earnings. In other words, solvency
ratios identify going concern issues and a firm's ability to pay its bills in the long term. Solvency
ratios show a company's ability to make payments and pay off its long-term obligations to
creditors, bondholders, and banks. Better solvency ratios indicate a more creditworthy and
financially sound company in the long-term.
TYPES OF SOLVENCY RATIOS
1. DEBT TO EQUITY RATIO – The debt to equity ratio shows the percentage of company
financing that comes from creditors and investors. A higher debt to equity ratio indicates that
more creditor financing (bank loans) is used than investor financing (shareholders). The formula
is:
17. 𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 =
𝑇𝑜𝑡𝑎𝑙 𝑙𝑜𝑛𝑔 𝑡𝑒𝑟𝑚 𝐷𝑒𝑏𝑡
𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝑓𝑢𝑛𝑑𝑠
2. FIXED CHARGES COVERAGE RATIO – The fixed charge coverage ratio is a financial
ratio that measures a firm's ability to pay all of its fixed charges or expenses with its income
before interest and income taxes. It is calculated as:
𝐸𝐵𝐼𝑇 ± 𝐹𝑖𝑥𝑒𝑑 𝑐ℎ𝑎𝑟𝑔𝑒𝑠 𝑏𝑒𝑓𝑜𝑟𝑒 𝑡𝑎𝑥
𝐹𝑖𝑥𝑒𝑑 𝑐ℎ𝑎𝑟𝑔𝑒𝑠 𝑏𝑒𝑓𝑜𝑟𝑒 𝑡𝑎𝑥𝑒𝑠 ± 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
3. CAPITAL ADEQUACY RATIO – Capital adequacy ratio (CAR) is a specialized ratio used
by banks to determine the adequacy of their capital keeping in view their risk exposures.
Banking regulators require a minimum capital adequacy ratio so as to provide the banks with a
cushion to absorb losses before they become insolvent.
𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑎𝑑𝑒𝑞𝑢𝑎𝑐𝑦 𝑟𝑎𝑡𝑖𝑜 =
𝑇𝑖𝑒𝑟 1 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 ± 𝑇𝑖𝑒𝑟 2 𝑐𝑎𝑝𝑖𝑡𝑎𝑙
𝑅𝑖𝑠𝑘 𝑤𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝑎𝑠𝑠𝑒𝑡𝑠
So, there are hundreds of ratios that can be formed using available financial statement data. The
ratios selected for analysis depend on the type of analysis and the type of banks selected.
19. About Aircel
Profile
Type Subsidiary
Industry Telecommunication
Founded in 1999
Headquarters Gurgaon, Haryana, India
Key People Kaizad Heerjee,CEO
Products Mobile Telephony, Wireless Broadband services
Revenue US $ 1.159 billion
Member 83.05 million
Parent Maxis Communication (74%), Sindya Securities & Investment
(26%)
Website Aircel.com
The Aircel group is a joint venture between Maxis Communications of Malaysia and Sindya
Securities & Investments Private Limited, whose current shareholders are the Reddy family of
Apollo Hospitals Group of India, with Maxis Communications holding a majority stake of 74%.
Aircel commenced operations in 1999 and is today the leading mobile operator in Tamil Nadu,
Assam, North-East and Chennai.
In October 2010, Aircel completed its Pan India footprint; presence in all 23 telecom circles (can
be a state or combination of cities and states eg. Delhi-NCR), with the launch of GSM mobile
20. services in Rajasthan, hence becomming a Class A operator. After winning the 3G and BWA
spectrum, required for high speed data and multimedia services, in 13 and 8 circles respectively,
Aircel became the largest operator in India with spectrum secured for next generation wireless
technologies.
Aircel has also been recognized for its consistent and reliable efforts. Voice and Data gave Aircel
the highest rating for overall customer satisfaction and network quality in 2006 and Aircel
received the same award by IDC in 2007. Aircel is ranked 5th in GSM mobile operators. It needs
license + network to operate, due to govt. Restrictions for network and bandwidth
It has the market lead in Tamil Nadu, Chennai, Assam and North East. It is dedicated to save
tigers as it’s CSR activity. It has won the 2009 NASCOM award. It is into both GSM (Global
System for Mobile communication), and CDMA (Code Division Multiple Access).
Aircel Business Solutions
Aircel as a company was started in 1995, in Chennai, as a GSM operator. In 1999, it became a
mobility GSM operator, operating two wings, Cellular and Business Solutions. It obtained it’s
licence to operate from the Dept. Of Telecommunications, which assigned bands to it? Aircel is a
brand, actually formed by the coming together of two companies, Maxis communication group,
bought 74 % of Aircel’s market share, which was the highest FDI as per govt. Limits in 2005
(Maxis is the no.1 telco in Malasiya, with various other alliance with various stakes in other
operators around the world), and Appollo Hospitals having 26 % stake.
Aircel Business Solutions (ABS) (the Business Unit of Dishnet Wireless Limited) is the
enterprise division of Aircel, which addresses the telecom requirements of International and
Indian markets with an array of industry-leading products and services. As an integrated telecom
service provider, ABS leverages its rich pedigree of best-in-class solutions, partnerships and
domain expertise to address service providers, enterprises, PSUs, and consumers. Its range of
services includes networking, data centers, managed services, collaboration services, SaaS
(Software-as-a-Service) and mobility solutions.
21. ABS is the pioneer of data connectivity solutions and it has demonstrated the same by being the
first operator in India to launch WiMAX technology. ABS is also a registered member of
WiMAX forum – both in the Indian and International Chapters.With a pan India rollout of over
dual core optical fiber backbone, over 400 IP MPLS PoPs and leveraging integrated wireline and
wireless data solutions, ABS is ideally suited to provide high speed, secure, and reliable
managed networking solutions across India.
The carrier to carrier business is served by Aircel wholesale and carrier Business team.the
enterprise team addresses the B2B segment from all industry verticals ( Telecom,IT,Banking,
Retail and Manufacturing). The SME team caters to the telecom requirements of Small and
Medium Enterprises.Aircel Business solutions provide connectivity solutions on licensed
spectrum to enterprise customers, with a major focus on the data segment. It has around 6.5
Crore or 65 million subscribers currently, accounting to about10 % of the market. It’s network is
powered by CISCO.
The connectivity business runs on media, which can be wireless or wired. Voice (basic call) and
data (SMS, social media, mails, B2B, etc.) are two products of this business. Voice frequency
ranges from 20-20,000 Hz (Humans). Resolution changes requirements of people, hence
resulting in various offerings.
Objectives of Aircel
To grow the business 3 fold
To increase indirect manpower by 3 times
To increase channel partners by 3 times
To grow mobility post paid business 10 times and dongle business 20 times and Internet
Lease Line business 3 times
To retain all executives
To know every company recruiting > than 10 people
To find out prospective candidates
To know which industry vertical will require Leased Line
22. All IT managers should BE AWARE OF Aircel, and when they have a requirement, they
should call them.
To know channel partners of competitors
To know new venture capitalists and pvt. Equity ventures
Market share and opportunities in tech. Parks
VISION AND MISSION
Vision
Become the Service Provider of Choice for the Enterprise Segment
Mission
Entry into top 1,000 corporates as the most agile service provider
Create well differentiated value offerings for ready adoption by large, medium and small
enterprises
Own service offerings, platform and delivery mechanism that keep us ahead of
competition now and during technology shifts
.
PRODUCT AND SERVICES
National Private Leased Circuit (NPLC)
International Private Leased Circuit (IPLC)
Global MPLS Virtual Private Network (Global MPLS VPN)
Aircel offers a suite of world-class Internet Services to enterprises strongly backed by highly
redundant, carrier grade mesh network. ILL services are offered over various last mile options
viz. Wi-MAX, Fiber and P2P radio to ensure cost effective solutions meeting your expectations
of high uptimes and redundancies in network connectivity with minimum latencies. ABS further
ensures high speed interconnected backbones with round the clock proactive monitoring through
centralized NOC. Aircel offers cutting edge connectivity services powered by our State of the
Art & extensively Robust Multi Carrier Meshed Backbone. Our customers get the Fastest &
23. shortest Data Transit Paths around the world, with our Domestic and International IP Transit on
Trans-atlantic & Trans-pacific Networks.
ABS offers following flavours of Internet Services:
Dedicated Internet Services: Platinum 1:1
Our Flagship Product ensures customers' enjoy dedicated and symmetric Internet connectivity on
Dedicated Access Mediums & Bandwidths.
Shared Internet Services: Gold 1:2 and Silver 1:4
Gold & Silver Shared Internet bandwidth is specially designed for SMBs to offer cost effective
solution on Shared Access Mediums without compromising performance.
IDC Internet
Tailor made bandwidth solution crafted to cater the customers needing asymmetric bandwidths
delivering 100% Upload and 25% download of the subscribed port.
Delivery services company Yipes Enterprise Services for a cash amount of Rs. 1200 crore rupees
(equivalent of USD 300 million).
FUTURE GROWTH AND PROSPECTS
Aircel Ltd is likely to launch its 4G service in about six months, according to
K. Sankara Narayanan, Regional Business Head, Aircel Ltd, Chennai.
Sankara Narayanan said that 4G is “definitely a step forward in technology” giving the
customers a “fantastic choice”. It would also give customers “incredible speed that does
not exist in the market today”
The company has identified data services as the future growth engine, even though voice
services continue to account for the largest share of the revenue of the telecom industry.
Being the largest operator in India with spectrum secured for next generation wireless technologies (3G
and BWA)`1, over 100 IP MPLS PoPs,Pan India dual core optical fiber backbone and WiMAX presence
in over 53 cities, Aircel Business Solutions is ideally suited to provide world class, high speed,end-to-end
voice & data solutions.
24. SWOT ANALYSIS
STRENGTH
5TH largest GSM service provider with subscriber base over 27 mn.
6 to 7% market share.
Weakness
Profitability is low as compare to other companies
Lack of advertising
Low brand visibility
Opportunities
Fast expanding cellular market
Latest and low cost technology
Untapped rural market
Value added services
Threats
Competitors low pricing offering
Saturation point in basic telephony service
Mobile number portability
COMPETITORS
IDEA
VODAFONR
RELIOANCE
AIRTEL
MTNL
BSNL
26. Following studies were conducted and these results were witnessed:
Ried Edwardj & et al. (2010)69), “Signaling Firm performance through financial Statement
Presentation”, investigate whether managers’ presentation of special items within the financial
statements reflects the economic performance or opportunism. Specifically, special items
presented as a separate line item on the income statement (income statement presentation) to
those aggregated within another line item with disclosure only in the footnotes (footnote
presentation). The study is motivated by standard-setting interest in performance reporting and
financial statement presentation, as well as prior research investigating managers’ presentation
choices in other contexts. Empirical results reveal that special items receiving income statement
presentation are less persistent, relative to those receiving footnote presentations. These results
are consistent across numerous alternative specifications. Overall, the findings are consistent
with managers using the income statement versus footnote presentation to assist users in
identifying those special items most likely to differ from other components of earnings - that is,
for informational, as opposed to opportunistic and motivations.
Arindham Mukherjee (March, 2006)46 takes out various case studies like Vodafone, Maxis,
Telekopm Malaysia, Tatatele etc. to study the rising interest of foreigners for investment in
Indian telecom industry. Various reasons of stemming growth can be rising subscriber base,
rising teledensity, rising handset requirements, saturated telecom markets of other countries, stiff
competition, requirement of huge capital, high growth curve on telecom, changing regulatory
environment, conducive FDI limits in telecom sector
28. 4.1 OBJECTIVE OF THE STUDY
PRIMARY OBJECTIVE:
The primary objective is to analyze the financial performance of Aircel Ltd.
SECONDARY OBJECTIVE:
To study the profitability of aircel.
4.2 SCOPE OF THE STUDY
This study is undertaken to measure the financial performance of Aircel Ltd in India. The study
will provide details about liquidity, solvency, efficiency and profitability analysis of the
company.
Present study is limited to 5 years data which is obtained from company’s annual report.
The study is purely based on secondary data which were taken primarily from published annual
reports of the company for the last five years (2012-2016).
29. RESEARCH METHODOLOGY
The main aim of Research methodology is to describe and analyze method, throw light on their
limitation and resources, clarify their presupposition and consequences.
5.1 ResearchDesign
Descriptive research design is used in this study as it ensures minimization of bias and
maximization of reliability of data collected. First hand information already available through
financial statements of earlier years has been used to analyze.
5.2 Data Collection
The Data taken for the study is secondary in nature. It has been taken from the Aircel’s financial
reports available on website, newspapers and magazines.
5.3 Tools and Techniques of Analysis
Ratio analysis has been done with the help of profit and loss account and balance sheet of the
Aircel. MS Excel is used to prepare ratio tables and various charts used to show ratios for
performing analyzes.
5.4 Sample
Sample unit: Aircel ltd
Sample size: 5 years data i.e. from 2011-12 to 2015-16.
31. DATA ANALYSIS AND INTERPRETATION
LIQUIDITY & SOLVENCYRATIOS
1. Current Ratio=Current asset
Current Liabilities
YEAR 2012 2013 2014 2015 2016
CURRENT
RATIO
1.02 0.65 0.93 0.73 0.65
Interpretation
Current ratio can be used to take a rough measurement of a company’s financial health.
The higher the current ratio, the more capable the company is of paying its obligations, as
it has a larger proportion of asset value relative to the value of its liabilities.
As current ratio is increases from 2012 to 2016, this shows the company ability to pay its
obligation.
0.65
0.73
0.93
0.65
1.02
0
0.2
0.4
0.6
0.8
1
1.2
2012 2013 2014 2015 2016
current ratios
current ratios
Linear (current
ratios)
32. 2. Liquid ratio= quick asset
Quick liabilities
years 2012 2013 2014 2015 2016
Liquid ratio 1.37 0.75 0.98 0.75 0.66
Interpretation
The higher the quick ratio, the better the position of the company. The commonly acceptable
current ratio is 1. A company with a quick ratio of less than 1 cannot currently pay back its
current liabilities; it's the bad sign for investors and partners. As the liquid ratios are
decreasing from 2012 to 2016 which shows that the company is not able to pay its current
liabilities.
1.37
0.75
0.98
0.75
0.66
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2012 2013 2014 2015 2016
liquid ratios
liquid ratios
Linear (liquid ratios)
33. 3. Long term Debt Equity Ratio= Total liabilities
Shareholders fund
years 2012 2013 2014 2015 2016
LTDER 0.17 0.18 0.11 0.25 0.49
Interpretation
The greater a company's leverage, the higher the ratio. Generally, companies with higher ratios
are thought to be more risky. A high ratio usually indicates a higher degree of business risk
because the company must meet principal and interest on its obligations.
As the ratio is increasing from 2012 to 2016 which shows that the company is becoming risky.
0.17 0.18
0.11
0.25
0.49
0
0.1
0.2
0.3
0.4
0.5
0.6
2012 2013 2014 2015 2016
Long Term Debt Equity Ratio
Long Term Debt
Equity Ratio
Linear (Long Term
Debt Equity Ratio)
34. 4. Debt Equity Ratio = Total Long Term Debt
Shareholder’s Fund
years 2016 2015 2014 2013 2012
DER 0.29 0.24 0.13 0.26 0.50
Interpretation
Debt/Equity Ratio is a debt ratio used to measure a company's financial leverage. The
D/E ratio indicates how much debt a company is using to finance its assets relative to the
amount of value represented in shareholders’ equity. As this ratio is increasing this shows
that the company is using more debt to finance its assets.
29%
24%
13%
26%
50%
0%
10%
20%
30%
40%
50%
60%
2012 2013 2014 2015 2016
Debt Equity Ratio
Debt Equity Ratio
Linear (Debt Equity Ratio)
35. MANAGEMENT EFFICIENCYRATOS
5. Inventory Turnover Ratio = COGS
Average stock
years 2012 2013 2014 2015 2016
ITR 1296 21596 45380 5904 11377
Interpretation
Inventory turnover measures how fast a company is selling inventory and is generally
compared against industry averages. A low turnover implies weak sales and, therefore,
excess inventory. A high ratio implies either strong sales and/or large discounts.
As this ratio shows that the inventory in 2014 is maximum and minimum in 2012.
1296
21596
45380
5904
11377
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
2012 2013 2014 2015 2016
Inventory Turnover Ratio
Inventory Turnover Ratio
Linear (Inventory
Turnover Ratio)
36. 6. Debtors Turnover Ratio= Net Sales
Average Debtor
Year 2012 2013 2014 2015 2016
DTR 23.14 20.70 22.63 20.27 16.98
Interpretation
Debtors Turnover Ratio indicates the speed at which the sundry debtors are converted in the
form of cash. It indicates the number of times the debtors are turned over a year. It is the reliable
measure of receivables from credit sales. The higher the value the more efficient is the
management of debtors. Similarly, lower the ratio means inefficient management of debtors.
This graph shows that ratio is decreasing from 2012 to 2016 which shows the inefficient
management of debtors.
23.14
20.7
22.63
20.27
16.98
0
5
10
15
20
25
2012 2013 2014 2015 2016
Debtors turnover ratio
Debtors turnover ratio
Linear (Debtors turnover
ratio)
37. 7. Fixed Asset Turnover Ratio = Sales
Fixed Asset
Year 2012 2013 2014 2015 2016
FATR 0.84 0.82 0.86 0.85 0.79
Interpretation
This ratio specifically measures how able a company is to generate net sales from fixed-asset
investments, namely property, plant and equipment (PP&E), net of depreciation. In a general
sense, a higher fixed-asset turnover ratio indicates that a company has more effectively utilized
investment in fixed assets to generate revenue. This ratio shows that the company is inefficient to
generate revenue from fixed asset.
0.84
0.82
0.86
0.85
0.79
0.74
0.76
0.78
0.8
0.82
0.84
0.86
0.88
2012 2013 2014 2015 2016
Fixed Asset Turnover ratio
Fixed Asset Turnover
ratio
Linear (Fixed Asset
Turnover ratio)
38. 8. Asset Turnover ratio= Net sales
Average Total Asset
Year 2012 2013 2014 2015 2016
ATR .71 .69 .70 .69 .71
Interpretation
Asset Turnover ratio can often be used as an indicator of the efficiency with which a
company is deploying its assets in generating revenue. The higher the asset turnover
ratio, the better the company is performing. As the ratio shows that it is decreasing from 2012
to 2016 that implies the inefficiency of company in generating the revenue
0.71 0.69 0.7
0.64
0.54
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2012 2013 2014 2015 2016
Asset Turnover Ratio
Asset Turnover Ratio
Linear (Asset Turnover
Ratio)
39. PROFITABILITYRATIOS
9. Return on Capital Employed = NPBT
Capital Employed
Year 2012 2013 2014 2015 2016
ROI 13.14 12.07 13.18 15.32 11.25
Interpretation
Investors tend to favor companies with stable and rising ROCE numbers over companies
where ROCE is volatile and bounces around from one year to the next. ROCE of this
company is stable and profitable.
13.14
12.07
13.18
15.32
11.25
0
2
4
6
8
10
12
14
16
18
2012 2013 2014 2015 2016
Return On Capital Employed
Return On Capital
Employed
Linear (Return On Capital
Employed)
40. 10. Operating Profit Margin = operating income
Net sales
Year 2012 2013 2014 2015 2016
OPM 32.79 29.7 32.65 35.01 37.04
Interpretation
Operating margin is a margin ratio used to measure a company's pricing strategy and operating
efficiency.
this shows the company is making profit from their sales.
32.79
29.7
32.65
35.01
37.04
0
5
10
15
20
25
30
35
40
2012 2013 2014 2015 2016
operating profit margin
operating profit margin
Linear (operating profit
margin)
41. 11. Net Profit Margin = Operating income
Net sales
Year 2012 2013 2014 2015 2016
NPM 13.79 11.23 13.22 13.78 12.51
Interpretation
Net profit margin is one of the most important indicators of a business's financial health.
It can give a more accurate view of how profitable a business is than its cash flow, and by
tracking increases and decreases in its net profit margin, a business can assess whether or
not current practices are working.
A business can use its net profit margin to forecast profits based on revenues.
This shows that the company is making profit and it is maximum in the year 2015 and
minimum in the year 2013.
13.77
11.23
13.22
13.78
12.51
0
2
4
6
8
10
12
14
16
2012 2013 2014 2015 2016
Net profit Margin
Net profit Margin
Linear (Net profit Margin)
42. 12. Cash Profit Ratio = Cash+ Cash Equivalent
Current Liabilities
Year 2012 2013 2014 2015 2016
CPR 22.57 25.46 27.65 34.20 28.75
Interpretation
Cash ratio is the ratio of cash and cash equivalents of a company to its current liabilities. It is an
extreme liquidity ratio since only cash and cash equivalents are compared with the current
liabilities. It measures the ability of a business to repay its current liabilities by only using its
cash and cash equivalents and nothing else. This shows that the company can repay its liabilities
by using cash.
22.57
25.46
27.65
25.46
27.57
0
5
10
15
20
25
30
2012 2013 2014 2015 2016
Cash profit Ratio
Cash profit Ratio
Linear (Cash profit Ratio)
43. 13. Gross Profit ratio= Gross profit
Revenue
Years 2012 2013 2014 2015 2016
GPR 14.45 11.66 14.73 16.81 15.19
Interpretation
Without an adequate gross margin, a company is unable to pay for its operating expenses. In
general, a company's gross profit margin should be stable unless there have been changes to the
company's business model. This ratio shows that the company’s profit is stable. Maximum in
year 2015 and minimum in the year 2013
14.45
11.66
14.73
16.81
15.19
0
2
4
6
8
10
12
14
16
18
2012 2013 2014 2015 2016
Gross Profit Ratio
Gross Profit Ratio
Linear (Gross Profit Ratio)
Linear (Gross Profit Ratio)
44. CASH FLOW INDICATOR RATIOS
14. Dividend Payout ratio= Dividend
Net Income
Year 2012 2013 2014 2015 2016
DPR 6.62 7.45 10.90 11.65 7.20
Interpretation
The payout ratio is also useful for assessing a dividend's sustainability. The dividend payout ratio
provides an indication of how much money a company is returning to shareholders, versus how
much money it is keeping on hand to reinvest in growth, pay off debt or add to cash reserves.
This latter portion is known as retained earnings. This shows that the company is having good
payout ratio in year 2015 and 2014.
6.62
7.45
10.9
11.65
7.2
0
2
4
6
8
10
12
14
2012 2013 2014 2015 2016
Dividend PayoutRatio
Dividend PayoutRatio
Linear (Dividend
PayoutRatio)
45. 15. Earnings per share = Earnings available to common shareholders
No. of outstanding shares
YEAR 2012 2013 2014 2015 2016
EPS 11 6 7 13 11
Interpretation
Earnings per share are the portion of a company’s profit allocated to each outstanding share of
common stock. It serves as a indicator of a company’s profitability. The above chart shows that
the company have the maximum EPS in year 2015 and Minimum in 2013.
11
6
7
13
11
0
2
4
6
8
10
12
14
2012 2013 2014 2015 2016
Earning Per Share
Earning Per Share
Linear (Earning Per Share)
46. 16. Earning Retention Ratio= 1- Payout ratio
Year 2012 2013 2014 2015 2016
ERR 93.38 92.55 89.44 88.35 93.4
Interpretation
The retention ratio is the proportion of earnings kept back in the business as retained earnings.
The retention ratio refers to the percentage of net income that is retained to grow the business,
rather than being paid out as dividends. It is the opposite of the payout ratio, which measures the
percentage of earnings paid out to shareholders as dividends.
Ratio is good in the year 2016 and minimum in year2014 and 2015.
93.38
92.55
89.44
88.35
93.4
85
86
87
88
89
90
91
92
93
94
2012 2013 2014 2015 2016
Earning Retention Ratio
Earning Retention Ratio
Linear (Earning Retention
Ratio)
47. CASH FLOW in cr
CASH FLOW 2012 2013 2014 2015 2016
NBIT 6956 6455 8377 15655 10040
NET CASH FLOWS
FROM OPERATING
ACTIVITIES
11438 13885 16022 17940 20058
NET CASH USED IN
INVESTING
ACTIVITIES
-12612 10726 -17086 12801 -22283
NET CASH USED FROM
FINANCING
ACTIVITIES
1401 -3186 1182 -5196 1889
NET INC/DEC IN CASH
AND CASH
EQUIVALENT
227 -27 118 -57 -337
CASH AND CASH
EQUIVALENT ATTHE
BEG OF THE YEAR
128 355 328 446 389
CASH AND CASH
EQUIVALENT AT THE
END OF THE YEAR
355 328 446 389 52
SOURCE: ANNUAL REPORTS
Interpretation
The cash flow statement shows that the net profit before tax increased continuously from
2011-12 to 2015-16.
The net cash from operating activities continuously increased from the 2011-12 to 2015-
16.
The statement shows that net cash from investing activities is negative in all four years.
The net cash used in financing activities is maximum in the year 2015-16 in comparison
to other.
The cash and cash equivalents of the firm decreased in the year 2014 and 2016 which
shows the low liquidity position of the firm. Increased in the year 2013 and 2015.
49. FINDINGS
1. The current ratio has shown fluctuation trend as 0.65 to 1.02 during 2011 to 2016.
2. The quick ratio is also fluctuating trend throughout the period from 2011-12 to 2015-16.
3. The debt equity ratio is also increasing from 2011-12 to 2015-16 which shows the
company’s good performance.
4. The inventory turnover ratio is fluctuating.
5. The debtor’s turnover ratio is decreasing from 2012 to 2016.
6. The gross profit ratio is in a slightly fluctuating manner. It decreased in the current year
as compare to previous year.
7. The net profit ratio is in a slightly fluctuating manner. It decreased in the current year as
compare to previous year.
8. The operating ratio is increased in the year 2015 and decreased in year 2013.
9. The return on capital employed is increased in the year 2015 while decreased in 2013.
10. The earnings retention ratio is fluctuating and maximum in year 2015.
11. Dividend payout ratio is maximum in the year 2015 and minimum in the year 2014.
CONCLUSION
From the above finding and analysis various inferences can be drawn out which are as follows:
• AIRCEL is having highest current ratio which represents that AIRCEL is having very good
liquidity position and can pay off their short term liability very easily as they are maintaining
huge cash reserves.
• AIRCEL is having fluctuating profit margins has been reduced over the period of time which
leads to significant reduction in the earning power of the companies.
50. • In case of net profit Aircel has gained a significant hike in the profit in year 2015 due to the
launch of 3G and closing of Deccan circles in 2014.
• Cash from operations is increasing which shows increase in revenue from primary activities.
• Cash used in investing activities is highest of aircel in 2015-16 but gradually it had been
decreased which represents the lack of investments in long term assets by the company.
• Cash used in financing activities is highest in 2015-16 and it had been fluctuating in each
subsequent year which represent that AIRCEL is continuously engaged in payment of dividends
and interest for the borrowed funds and they are not raising funds from market.
SUGGESTIONS
From the personal observations and the above analysis various subjective Recommendations
which can be given to the company as follows:
• Use better & high tech methods of advertising, so that more & more subscriber
Attract towards AIRCEL.
• Should increase the service quality as well as better customer care service.
• Should work towards 3 G and 4G phones, means high speed streaming video, gaming,
Video messaging and even mobile TV.
• There are several global players keen to enter India. Like China mobile, Telephonic, SK
telecom, NTT Docomo, Orson. Their entry will make the market even more competitive. So,
should be ready for new competition.
51. CHAPTER 8
LIMITATIONS
Though the project is completed with proper planning and guidance with full dedication but still
various limitations that have to be faced in the process of research are as follows:
1. Lack of experience: There was no prior experience in the field of study , so it became
difficult to analyze and interpret the financial statements of the companies.
2. To deal with human nature.
3. Limited time
Despite these limitations, the project was completed in a smooth manner and the
interesting nature of the project made all these limitations too small to think of.
