Polaris Organzation Report
Chennai for the period of one month from 08th August 2011 to 07th September 2011 in fulfillment for the award of Bachelor Degree Commerce (Corporate Secretaryship) of University of Madras. M. ANSAR INTERNAL EXAMINER EXTERNAL EXAMINER ACKNOWLEDGEMENT ACKNOWLEDGEMENT I sincerely thank my Prof.
K. S MOHAMMED AKMAL M. Com, M. Phil. Head of the Department for giving me the opportunity to undergo institutional training of POLARIS SOFTWARE LAB LIMITED.
I am thankful to my guide Mr.M. ANSAR M. Com, M. C.
S, M. Phil. , for his kind and a valuable guidance in my work to completing this project work. I am very thankful to my respectable department professors for helping me to complete my project. Secondly I would like to thank all the officials and employers of the POLARIS SOFTWARE LAB LIMITED, for helping me and giving me the necessary information in the data with value support and timely help. I thank all of them who have helped me in supporting and gave me the necessary, co-operation to complete my project successfully.
(ABDULLA RAWAHA)INTRODUCTION INTRODUCTION As per the regulation of the University of Madras every student in partial fulfillment of the in B. Com [Corporate Secretaryship] course, has to undergo an Institutional Training. In a Public Limited Company this is to enhance the students to overview practical Knowledge that can be obtained during this period of one month. I underwent institutional training in POLARIS SOFTWARE LAB LIMITED during the course of this training I learnt how to implement theoretical knowledge what I study in under graduation. This helps to maintain good relationship.
It is every good experience for me to work with the employees of the POLARIS SOFTWARE LAB LIMITED, which is every useful for my future. The training which I underwent had undergone in POLARIS SOFTWARE LAB LIMITED was very use full in providing me to bridge the gap between the academic and work environment and to bring in the confidence to work in an organization. I am very thank full to the organization and the University of Madras for making the training as a part of the course curriculum. The company though was very strict and maintained secrecy was gracious enough to provide the opportunity to undergo the institutional training.I hope this training will help me in my career growth and get better as an individual in the corporate world.
PROFILE OF PROFILE OF COMPANY Polaris Software Lab was incorporated in 1993 and is now one of India’s leading institutions contributing to the knowledge economy of the global financial services marketplace. In a quest for knowledge opportunity, spanning over the last 2 decades (11 years as Polaris), Polaris has established its solutions and services footprint globally contributing to the realization of the business vision of some of the….
.Polaris Software Lab – Company Profile 20 years ago, Citigroup began its quest to pioneer the utilization of the vast human intellect capital in India ;amp; the seeds of Polaris were sown. Polaris was fortunate to be one of the first vendors that Citigroup chose to partner with, through this Indian quest. In parallel, Citigroup also started its own company called COSL (Citibank Overseas Software Ltd) which strategized and operationalized Citigroup’s vision of leveraging India. Today, Polaris is the amalgamation of these two organizations that traveled the path of successfully architecting ;amp; realizing Citigroup’s India led vision.
The Labor Pains of a Pioneer The 2 Decade long journey was clearly an experience that helped Polaris participate, witness and experience every pitfall, every hurdle ;amp; fallacy in this path to leverage the Indian intellectual capital. The challenges were many. The challenge of creating a successful global sourcing model, the challenge of creating an alternative distributed banking platform, the challenge of creating global competitiveness from a third world economy, the challenge of replicating success from one country to another… The biggest challenge was in being the first one in the world doing all this.As Citigroup gained the competitive edge, Polaris gained two very critical experiences: * The experience of creating mission critical solutions with leading edge functionality, built on reliable and robust technical architecture which could be successfully implemented and replicated across the globe. This capability is today brought to the customer in the form of a suite of modular solution components under the brand name of intellect Suite.
* The experience of creating successful outsourcing models which enable global organizations to sustain their competitiveness.This experience has been converted into a predictable and repeatable model of success and is known as the Entity model. From Experience to Expertise The journey gave Polaris one of its biggest differentiators – the intimate understanding of the Money business. While the rest of the Indian market was busy building expertise on COBOL, Java and Lotus, Polaris had built expertise on Investment Banking, Retail Banking, Credit Cards, Corporate Banking, Life Insurance etc. Polaris decided to capitalize on this wealth of enviable experience of having partnered with Citigroup through its evolution.
Polaris made its strategic choices at this stage * Stay focused on the money vertical – BFSI segment * Create lasting value in only a few relationships * Partner with the pioneers * Dominate the Domain * Build Turnkey capabilities – Products , Solutions ;amp; services 225 Million USD, over 8500 experts and 20 years later Polaris is proud to be associated with some of the world’s most prestigious financial services institutions like Citigroup, AIG, Commerzbank, ABN Amro, Shinsei Bank, UBS, Deutsche Leasing, Maybank ;amp; DBS, to name a few. The strength of Polaris lies in its people.A unique blend of techno-bankers, banking ;amp; insurance practitioners, technology experts ;amp; quality process gurus help Polaris create enduring value in any relationship Latest developments HP India and Polaris Software Lab have entered into an agreement to jointly market and deliver a range of solutions covering software, services and system integration for businesses in India. Polaris Retail InfoTech (PRIL), a subsidiary of software services company Polaris Software Lab has entered into a partnership with IBM to launch a software application ‘Intellect Store’ for retail stores.Intellect Store will enable owners of retail stores to keep track of their stock as well as the customers in all stores simultaneously.
Business Performance of Company The consolidated revenue of Polaris Software Lab Ltd from Software development services, Products and Business Process Management for the year ended March 31, 2011 stood at Rs. 158,633 Lacs, as against the previous year’s revenue of Rs. 135,376 Lacs. The consolidated Net Profit for the fiscal year ended March 31, 2011 stood at Rs. 20,246 Lacs as against the previous year’s consolidated Net Profit of Rs. 15,284 Lacs.
The reserves and surplus increased to 98,295 Lacs (2010? 11) from Rs. 82,299 Lacs (2009? 10). Our software services engagements are driven with business benefits ;amp; long? term relationship vision. We have nurtured strong relationships through sustained delivery of value and it is with considerable pride that we would like to share that we are celebrating 26 years our continued relationship with Citibank, one that is based on sustained and growing value. The names of the subsidiaries of Company along with its country(s) of incorporation are given below: 1 Polaris Software Lab Ltd Australia Polaris Software Lab Canada Inc Canada 3 Polaris Software Lab Chile Limited Chile 4 Polaris Software Lab (Shanghai) Co Ltd China 5 Polaris Software Lab Ltd Germany 6 Polaris Software Lab Ltd.
Great Britain 7 Polaris Software Lab Ltd Ireland 8 Polaris Software Lab Japan KK Japan 9 Polaris Software Lab Ltd. Malaysia 10 Polaris Software Lab B. V Netherlands 11 Polaris Software Lab Ltd Singapore 12 Polaris Software Lab S. A Switzerland 13 Polaris Software Lab Inc (Formerly Intellect SEEC Inc) USA 14 Polaris Software Lab Vietnam Company Ltd. Vietnam 5 Polaris Enterprise Solutions Ltd (Formerly Polaris Retail InfoTech Ltd) India 16 Optimus Global Services Ltd India 17 SEEC Technologies Asia Private Ltd India 18 Laser Soft Infosystems Ltd.
India 19 Indigo Tx Software Private Ltd India 20 SFL Properties Private Ltd India Polaris Annual Report 2010? 11 POLARIS Company name:| POLARIS SOFTWARE LAB LTD. | Country/ Territory:| India| Address:| | Products| Intellect Suite of Banking Product| Services| Banking and financial products and solutions,Business Consulting , IT and value added business process outsourcing| | Industry| IT Services, consulting| Geographical Markets:| Worldwide| No. Of Employees:| 14000(approx)| Revenue| 160. 76 crores| Certifications:| ISO 9001, BS 7799| Year Established:| 1993| CEO ;amp; Chairman| Arun Jain| Year | Milestones| 1993| Polaris Software Lab Ltd Incorporated| 1994| End to End Retail banking solution for Citi Bank India| 1995| Quality Processes aligned to SEI- CMM Level 3 and Konark Trust formed| 1996| Operations set up in USA| 1997| First Overseas development Centre commissioned for Citi Bank.Wholly owned subsidiary found in Singapore and USA also Polestar Trust got started.
Initiated the Navalur Facility Polaris awarded ‘Most Innovative Company’| 1998| First large offshore contract CDC started wholly owned subsidiary in UK Quality Processes Aligned to SEI- CMM Level 4Quality Processes ISO -9001 certified Birth of Polaris Retail InfoTech Limited| 1999| Crossed 1000 Associates milestone Initial Public Offering, over-subscribed by 21 times First ATM Development Lab, First Secure Lab awarded ‘Best International Business Excellence’ Award| 2000| Foundation’ – a State-of-the-Art Development center inaugurated. Wholly owned subsidiaries in Germany, Switzerland and Australia Ranked among ‘Fab Five’ companies in India by Intelligent Investor Rated amongst Forbes World’s Best Small Companies| 2001| Formed a wholly owned Subsidiary in Ireland and commenced operations in Japan.Gurgaon Campus inaugurated the World’s First CMMI level 5 company. NASSCOM felicitates Polaris Software rated as the ‘Fastest growing company in India’ by Computers Today and Business World | 2002| Opened Business Continuity Centre in Singapore also 2nd Time Ranked amongst Top 200 Best Small Companies in the World. Ranked among Top 25 Best Employers in the country. Launch of Adrenalin.
Ranked among Top 10 IT Wealth Creators – Business Today| 2003| Historic merger with OrbiTech (Citigroup Subsidiary) Birth of Intellect and Optimus Received ‘The Banker Technology’ Award| 2004| Crossed 5000 associates mark Became BS 7799 Certified Super-Specialty center for Financial Risk Management at Mumbai Launch of Intellect Suite of Products for Banking Solutions and Inaugurated ‘Intellect Court’ at Navalur | 2005| Launch of next generations Intellect Banking Platforms and Incorporation of Subsidiary in Canada| 2006| 2006 – World’s First Super Specialty Center for Investment Banking, The Capital, Hyderabad Near Shore Centre in Belfast. Entry into Latin America and got recognized as Global Leader in the Specialty Application Development by Cyber media| 2007| ‘Corporate Banking’ New Center in Mumbai and Launch of PACE Lab in Sydney. The Banker’s Award for Intellect Treasury Entering New Markets like Southern Europe ;amp; Nordic 2nd Year in a row – Global Leader in the Specialty Application Development Near-shore Testing Center at Canada| 2008| Opened new Branch office in Seoul, Korea | 2009| Polaris acquires Laser Soft Info systems Ltd. | 010| Polaris acquires IndigoTX, a SAAS (software as a service) company that provides GO TX. | OFFICE MANAGEMENT AND LAYOUT Work Culture ;amp; Employee Development Polaris believes that a satisfied employee gives his best performance in his workplace and world class standards are produced with time and effort usefully spent in providing a harmonious culture. Towards attaining this goal, INEL management has instituted several programmers in the areas of training its employees, involving them and their families in cultural activities of the company and creating a work-friendly environment.
The employees at Polaris are provided with in-house on-the-job training at the Training Centre.They are also encouraged to attend programmers organized by well established external agencies to constantly upgrade and hone their skills, acquire flexibility for handling sophisticated equipment, learn modalities of modern technologies in the area of designing products, manufacturing, quality and customer service. Some of the employees are also sent to the collaborators works for on-the-job training and to learn new production methods, technology improvements and are made to adopt them on their return. Employee involvement goes beyond work-related activities at Polaris. Employees participate in various activities such as suggestion schemes, small group activities, and safety meetings to enhance organization efficiency and meet challenges imposed by severe competition in the industry.
Employees along with their families also take part in the cultural programmers periodically organized by the company. Another area where the company gives importance is the welfare of employees. Towards this the company has extended facilities of a canteen for serving wholesome food, medical assistance to self and immediate family members, and assistance for educating their children. The company has made strides in accepting social responsibility by actively participating in the programmers’ of neighboring villages and providing help for planting of saplings, promoting health schemes and developing greenery in the surrounding locality. HR Value System and Belief: Human Resources Philosophy, Vision, Belief and Value SystemHuman Resources for a business enterprise needs a conceptual outlay to enable Business Managers to identify, plan and implement planning through manpower.
Fundamentally, business situations have changed the world over. The rise of the intellect has been imminent. Human Resources planning can no longer confine itself to the traditional sources for hiring and retaining. The Human Resources of today see their roles having changed from that of a doer to that of a thinker and on most occasions, “a thinker doer”. HR Philosophy: We believe In people and their unlimited potential In content and focus in problem solving In teams for effective performance In the intellect and its power HR Vision:To be the foundation that integrates Culture, Vision and Values and creates an environment that facilitates the maximization of human potential.
Our Endeavour: To select, train and coach people to obtain higher and early responsibilities To nurture talent to build leaders of our tomorrow’s Polaris. Reward and activate all intellectual business contributions for the growth of the company. FUNCTIONS OF VARIOUS DEPARTMENTS ACCOUNTS DEPARTMENT Finance is considered as the life blood of business. This is because in the modern money-oriented economy, finance is one of the basic foundations of all kinds of economic activities. Finance function may be defined as the procurement of funds and their effective utilization.
RESPONSIBILITIES OF ACCOUNTS DEPARTMENT: The pricing department is responsible for the fixing of prices for sales of the products and for buying of raw materials and semi finished goods. * Treasury section is responsible for all kinds of funding managements such as investments. * Taxation section is responsible for remittance of tax, filing of returns, handling of litigations etc.. , * Costing and Budgeting department is responsible for the unit costing of each product in particular.
* The FSG (Finance account Service Group) deals with the payables and receivables at regional offices. * Debt Servicing includes repayment of principal and payment of interest on due dates and ensuring that commitments made are adhered to. RISK MANAGEMENTRisk Management is vital since organization is exposed to both currencies as well interest rate risks. Risks offer both threats and opportunities (can increase incomer reduce expenditure). Results depend on how well they are managed. COSTING ;amp; PRICING * Strategic pricing of products, quotes for various tenders.
* Special pricing for export contracts. * Monitoring of cost of production of various models and for make or buy decisions. * Project evaluations for optimization and for making commitment Decisions TAXATION * Compliance with Direct (Income Tax Act, Wealth Tax);amp; Indirect Taxes (Excise, Customs, Service Tax, Sales tax etc). * Tax planning is an important component of business decisions. Recent major developments include introduction of Service Tax legislation and VAT across many States. * Aligning the business process across the organization and maximizing the benefits against such legislations is a major task handled by Finance.
* Regular tasks include remittance of tax, filing of returns, handling of litigations etc. INVESTOR RELATIONS * In HFL, Mutual Funds, FII etc.. , hold 32% of shareholding besides public who hold 10%. * FII ;amp; Mutual Funds represent investment community who track company’s performance continuously very closely.
* Dissemination of data relating to company’s performance and developments very important and sensitive. Handled through presentations in periodic investor meet, web-cast, tele-conferences, individual meets, etc. * Presentations made are hosted in company’s website. PLANNING & MANAGING CASH FLOWS: PLANNING CASH FLOWS Rolling Quarterly cash forecast prepared and monitored weekly seeking explanation for variance in order to control and direct operations. MANAGEMENT OF DAILY FUNDS * Collections from 49 locations pooled under cash management system in to centralized accounts with consortium banks at Chennai.
* Various payments reported are collated and funded for in the various bank accounts depending on the expected debits. * Surplus for the day, if any, invested for tenor which is based on requirement of funds back in to the system. Deficit funded through short term loans from banks, availed based on best product available / rate offered. HUMAN RESOURCE DEPARTMENT HUMAN RESOURCE MANAGEMENT Human resource management is defined as the managing function of employees, developing and compensating HR resulting in creation and development of human relations with the view to contribute proportionately to the organizational, individual and social goal. VALUE STATEMENT “We consider our employees as our most valuable asset and are committed to provide full encouragement and support to them, to enhance their potential and contribution to the company’s business”.
FUNCTIONS OF HR DEPARTMENT: 1.HR ACQUISITON * Recruitment * Selection 2. HR DEVELOPMENT * Training and development * Organization development 3. PERFORMANCE AND COMPENSATION * Performance appraisal * Incentives and benefits 4. MOTIVATION * Creating motivation environment * Empowerment and participation * HR Mobility RECRUITMENT Recruitment is the process of finding and attracting capable applicants for employment.
The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. SOURCES OF RECRUITMENT The following are various external sources of recruitment: 1. Consultancies 2.Campus recruitment 3.
Lateral entries CONSULTANCIES The department heads where requirements are needed informs to the HR department about the requirement. The concerned persons for recruitment get approval for filling the vacancies. Then the consultancies are approached telling the requirements. The fit applications are mailed to attend the interview. If satisfied, they are called for the personal interview. CAMPUS RECRUITMENT The recruitment panel goes to the reputed colleges to select the candidates.
LATERAL ENTRIES They pick the experience candidates or people from other companies. The Following is the process of lateral entry recruitment: 1.Sourcing 2. Interview a. Written test b. Technical round interview c.
Personal Interview PROCEDURE FOR LATERAL RECRUITMENT Pre-Selection Selection Post-Selection SELECTION The selection procedure is concerned with selecting the right candidate at right time for right place. The selection procedure saves a lot of time and money by eliminating candidates who are not eligible for the post. STEPS IN SELECTION * Receiving of application * Preparing of shortlist by the department * Verification of resume by department head * Interview (one round) * Psychological test * Reference/Background information * Final selection * Placement HR DEVELOPMENT TRAININGTraining is an on-going process aimed at capability-building of the employees at all levels. In today’s competitive milieu, organizations are increasingly turning to training to capture the cutting edge. As they manage growth in constantly changing environment.
Purposive training and planned re-training have an acquired priority status on the corporate agenda. Training program me is classified into * Skill * Knowledge * Attitude DEVELOPMENT ACTIVITIES 1. The following are the developmental activities: 2. TEI – Total Employee Involvement 3. CFG – Cross Functional Group 4. QC – Quality Circles 5.
SS – Suggestion Scheme 6. Re-deployment PERFORMANCE AND COMPENSATION PERFORMANCE APPRAISAL Performance appraisal is the systematic evaluation of the individual with regard to his performance on the job and his potential for development” In Polaris graphical scale method is followed, it is also known as linear rating scale. In this, a printed appraisal form is used for each appraise. The form consists of various employee characteristics and his job performance. Various characteristics include initiative, leadership, dependability, creative ability, analytical ability etc.
. , The rating is done on the basis of scale which is in continuum representing various degrees of particular quality. Polaris Foundries use numbers say 5, 4, 3, 2 and 1 to denote points for various degrees of excellent-poor, high-low, and good-bad and so on. The appraisal form is divided into 8 parts where under each part separate sections are being covered. Part I- Performance in the present job (Employees achievements, goals) * Part II- Work behavior (Plans, objectives, activities, execution of plans) * Part III- Abilities (Job knowledge, commitment to achieve results at work) * Part IV- Potential ( Areas of interest, personality traits, strength, weakness) * Part V- Overall performance rating ( Based on assessment of part I, II III) * Part VI- Training need (To improve performance in present job, to assume higher responsibility) * Part VII- Development plan (Job rotation, job enlargement, special assignment/ reputation) * Part VIII- Other comments FIVE POINT SCALE OF POLARIS SHOWING LEVELS OF PERFORMANCE: 1- Unsatisfactory- Does not meet job requirement at all.
2- Barely satisfactory- Just meets minimum job requirements. 3- Good Performance which adequately meets job requirements and occasionally produces well over and above requirements. 4- Superior – Performance which is consistently significant beyond job 5- Exceptional- Consistently outstanding performance.Requirements contribute in related area also. The appraisal form also consists of customer satisfaction survey where the need, service provider and period of assessment are all identified. It also follows graphical scale method using a five point scale based on the criteria 1) Quality (Customer needs, service information, quality works, complaints etc.
. ,). 2) Delivery (Delivery time, point of use, use or parts/service information) 3) Communication (Interaction with customers, listening to customer views, timely Feedback, and review changes with the customer) 4) Responsiveness (Responding to customer complaints, changes to customer needs) ) Improvement (Positive attitude for improvement, implementation ;amp; effectiveness of improvement. ) SECRETARIAL DEPARTMENT This department is headed by the company secretary. The main work of this department is to deal with shares of the company and proceeding there upon. DEFINITION OF SECRETARY: According to Sec.
2  of the companies act as amended in 1988, a ‘secretary’ means a company. And Sec. 2 [c] of the companies act 1980 includes any other individual possessing the prescribed qualification and appointed to perform the duties which may be performed by secretary under this act and other ministerial or administrative duties. STATUTARY DUTIES OF COMPANY SECRETARY:The statutory duties of a company’s secretary are as follows. * To maintain the registers of investments held by the company in the name of its nominees.
* To sign any documents or proceedings requiring authentication by the company. * To deliver for registration return of allotment. * To give native of increase in share capital. * To deliver for registration particulars of mortgages and charges to the registrar. * File the registrar a duly verified declaration for obtaining the certificate of commencement of business. * To sign the return.
* To send notice of general meetings to members. * To prepare minutes of every meetings. * To sign the annual accounts of the company. To send notice of meetings to the board of directors. * To assist in preparing the statement of affairs.
TRANSFER AND TRANSMISSION OF SHARES The shares of a company are freely transferable like movable property unless there is restriction of transfer in the articles of association. Sec 82 also specifically provides that the share or other interest of any member in a company is transferable in the manner prescribed in the articles of association. Transmission of shares takes place on the death or insolvency of an individual; in case of transmission no instrument of transfer is necessary. PROCEDURE FOR TRANSFER OF SHARES: Sec 108 to 112 deals with transfer of shares. 1.
INSTRUMENT OF TRANSFERA company shall not register a transfer of shares unless a prior instrument of transfer duly stamped and signed by the transferor. The share certificate along with requisition letter has to be accompanied with the instrument of transfer. 2. ENDORSEMENT OF THE INSTRUMENTATION The share transfer from before submitting to the registrar has to be presented to the prescribed authority. The prescribed shall stamp or otherwise endorse there on the date on which the instrument is to presented. The transfer has to be submitted within 12 months from the date of getting the authentication.
The clerk who is scrutning the form has to look for the above details including the share certificate folio number and the number of shares transferred. 3.SPECIMEN The signature of transferor is checked with that of in the specimen book. If there is any difference between the signature in its transfer form and in the specimen book a letter is sent to the transferor as intimation. 4.
TRANSFER After all the procedures are over the transfer entry is made at the back of the share certificate and duly signed by the official of the share registry. 5. CERTIFICATE Certificates are then sent to the company for the signature of company secretary and also for further enquiry. 6. CERTIFICATE OF TRANSFEREE After all the requirements are over the certificate is lodged with the transferee. TRANSMISSION OF SHARESTransmission of shares takes on the death or insolvency of an individual member.
The legal representative or official representative can transfer the shares to another person even though he himself is not a member or keeps the shares with him. In case of transmission of shares no instruments of transfer is necessary. The person to whom the shares are transmitted by law should make an application to the registrar for registration of shares in his name. The application should also be accompanied with registration of shares in his name. The application should also accompany “Death Certificate” of the person in whose name the shares was registered. PROXY A proxy is an authority to represent a shareholder at a meeting.
The proxy’s name must be in writing and duly signed by the authorized person. * A proxy has no right to speak at a meeting. * A proxy is revocable. * A shareholder can only appoint only one proxy. SHARE CIRTIFICATE The share certificate is a document of the company, the share certificate under the seal of the company certifies the shares held by the members.
It is declaration by the company that the person to whose name the certificate is made is the share holder of the company. The company must have the shares ready for delivery within three months of allotment of shares. SHARE WARRANT A share warrant is a document issued by a company stating that bearer is entitled to the shares specified therein.It is transferable by mere delivery, it is a negotiable instrument. The share warrant is issued only on shares that are fully paid up.
DIVIDEND One of the main objectives of a commercial enterprise is to earn profits, which are distributed among the shareholders by way of “Dividend”. NATURE OF WORK DONE NATURE OF WORK DONE As a student of B. Com Corporate Secretaryship, I had undergone institutional training for a period of one month in POLARIS SOFTWARE LAB LIMITED. When I first entered the company with necessary papers, I was asked to meet the Human Resource Manager. I felt nervous but when interacted with him, he made me clear about my work and made me comfortable with it.
I had an opportunity to meet well trained and skilled people in the company who gave me well-versed details about the organization and structure of the company. The Assistant Manager explained me about the nature of work to be carried out in the Human Resource Department. He asked me to arrange the application form of applicants who have applied for a job. I was asked to arrange application according to experience-wise and qualification-wise. He told me to arrange files in order and to check the documents of employees.
After having checked the document, I had to find out the missing documents from the file, and I had to write the available documents in the excel sheet. Later, I had to inform the employees about the missing documents through mail.During my training, I came to know the importance of Secretarial Department and Personnel Department of the company. Company Secretary plays a vital role in complying with the various formalities associated with adherence of the provision Indian Companies Act, 1956. Thus, I successfully completed my training in POLARIS SOFTWARE LAB LIMITED.
The institutional training has definitely enabled me to acquire valuable knowledge about the working style in company. Besides, it will build my career as I have learned to move with people in the corporate field. RATIO ANALYSIS INTRODUCTION Analysis and interpretation of financial statement with the help of ratio is termed as ratio analysis.Ratio analysis involves the process of computing, determining and presenting of item or group of items of financial statements. RATIO ANALYSIS: A ratio is a mathematical relationship between two items expressed in a quantitative form.
Ratio can be defined as relationships expressed in quantitative terms, between figures which have cause and affect relationships or which are connected with each other in some manner or the other. An accounting ratio can be defined as quantitative relationship between two or more items of the financial statement connected with each other. Arithmetically ratio is a compression of the numerator with the denominator.Ratio analysis is in an age old technique of finance analysis. It is the process of determining and presenting the relationship between of items and group of items in a financial statement. The information provided by the financial statement in absolute form in historical and static conveying very little meaning to the user.
Accounting ratios are designed to show how are the one number related to another and the meaning of such relationship. A ratio is worked out by dividing one number by another number. Accounting ratios measure and indicate efficiency of enterprise in all aspect. MODE OF EXPRESSION OF RATIO: Ratio may be expressed in any one or more of the following ways: (a) In Proportion:In this type of expression the amount of two items are expressed in a common denomination. An example of this form of expressed is the relationship between current asset and current liability as 2:1. (b) In Rate or Time or Coefficient: In this type of expression, a quotient obtained by dividing one item by another is taken as unit of expression.
Example of this form of expression is cost of sales divided by average stock (say 8), thus 8 items is the ratio between cost of sale and stock. (c) In Percentage: In this type of expression, a quotient obtained by dividing one item by another is multiplied by one hundred to show the relationship in terms of percentage. STEPS IN RATIO ANALYSIS: 1. SELECTION OF RELEVANT INFORMATION:The first step in ratio analysis is to select relevant information from financial statement and calculate appropriate ratio’s required for decision under consideration. 2.
COMPARISON OF CALCULATED RATIO: In order to access the realities meaning the ratio’s calculated are compared with the past Ratios & industry Ratios. 3. INTERPRETATION AND REPORTING: The third ship in ratio analysis is to interpret the significance of various ratios draw inferences and to write a report. The report may recommend specific action in the matter of the decision making situation or may present alternative with comparative and interpretations. ADVANTAGES OF RATIO ANALYSIS:The basic objective of ratio analysis is to help management in interpretation of financial statement to enable it to perform the managerial functions efficiently.
The following are the advantage of ratio analysis: (1) Forecasting: Ratios reveal the trends in cost, sales, profit and other inter-related fact, which will be helpful in forecasting future events. (2) Management Control: Ratios can be used as instrument of control regarding sales, cost and profit. (3) Facilitates Communication: Ratios facilitate the communication function of management as ratios convey the information relating to the present and future quickly, forcefully and clearly. (4) Measuring Efficiency:Ratios help to know operational efficiency by comparison of present ratios with those of the past working and also with those of other firms in the industry. (5) Facilitating Investment Decision: Ratios are helpful in computing return on investment. This helps the management in exercising effective decisions regarding profitable avenues of investment.
CURRENT RATIO This ratio is an indicator of the firm’s commitment to meet its short-term liabilities. It is expressed as follows: CURRET RATIO = Current assetsCurrent Liabilities Year| Current Assets| Current Liabilities| Current Ratio| 2010-2011| 431. 44| 294. 88| 1. 46| 2009-2010| 314. 47| 235.
67| 1. 33| 2008-2009| 408. 14| 211. 66| 1. 92| 2007-2008| 392.
36| 141. 98| 2. 76| 006-2007| 399. 32| 135. 61| 2. 94| (Rs in Crores) SOURCE: ANNUAL REPORTS SIGNIGICANCE: The current ratio is an index of the concern’s financial stability since it shows the extent of the working capital which is the amount by which the current ratio would assets exceeds the current liabilities.
CURRENT RATIO RETAINED EARNING RATIO This ratio shows the proportion of profits retained in the business out of the current year’s profits. In fact the total of the payout ratio and retained earnings ratio should be equal to 100. RETAINED EARNING RATIO = Retained Earning Profit After Tax? 00 (Rs in Crores) Year| Retain earning | Profit After Tax| Retain earnings Ratio | 2010-2011| 495. 39| 239. 00| 207.
27| 2009-2010| 373. 25| 171. 18| 218. 04| 2008-2009| 301. 83| 192. 88| 156.
48| 2007-2008| 227. 65| 65. 10| 349. 69| 2006-2007| 200. 29| 92. 97| 215.
43| SOURCE: ANNUAL REPORTS SIGNIFICANCE: This ratio is essential for growth and expansion of business. Retained earnings ratio went high during the year 2007-08. RETAINED EARNING RATIO FIXED ASSETS RATIO This ratio explains whether the firm has raised adequate long-term funds to meet its fixed assets requirements. It is expressed as follows: FIXED ASSETS RATIO = Fixed AssetsLong Term Funds Year| Fixed Assets| Long Term Funds| Fixed Assets Ratio| 2010-2011| 184. 8| 917.
11| . 200| 2009-2010| 176. 96| 780. 08| . 226| 2008-2009| 183.
45| 694. 38| . 264| 2007-2008| 200. 03| 602. 13| .
332| 2006-2007| 220. 07| 571. 14| . 385| (Rs in Crores) SOURCE: ANNUAL REPORTS SIGIFICANCE: The ratio should not generally be more than `1′. If the ratio is less than one it indicates that a portion of working capital has been financed by long-term funds.
It is desirable in that part of working capital is core working capital and it is more or less a fixed item. FIXED ASSETS RATIO PROPRIETARY RATIO It is a variant of debt-equity ratio. It establishes relationship between the proprietor’s funds and the total tangible assets.It may be expressed as: PROPRIETARY RATIO=Shareholders’ FundsTotal Tangible Assets Year| Shareholder Funds| Tangible Asset | Proprietary Ratio| 2010-2011| 917. 11| 249.
35| 3. 67| 2009-2010| 780. 08| 184. 18| 4. 23| 2008-2009| 694.
02| 163. 80| 4. 24| 2007-2008| 603. 31| 183. 45| 3.
27| 2006-2007| 569. 85| 200. 88| 2. 83| (Rs in Crores) SOURCE: ANNUAL REPORTS SIGNIFICANCE: This ratio focuses the attention on the general financial strength of the business enterprise. The ratio is of particular importance to the creditors who can find out the proportion of shareholders’ funds in the total assets employed in the business. A high Proprietary ratio will indicate a relatively little danger to the creditors, etc.
in the event of forced reorganization or winding up of the company. A low Proprietary ratio will indicates greater risk to the creditors since in the event of losses a part of their money may be lost beside loss to the proprietors of the business. PROPRIETARY RATIO NET PROFIT RATIO This ratio is also called net profit to sales ratio. It measures of management’s efficiency in operating the business successfully from the owner’s point of view. I indicate the return on shareholder’s investment higher the ratio better is the operational efficiency of the business concern. NET PROFIT RATIO=Profit After taxSales? 100 (Rs in Crores) Year| Profit After Tax| Sales| Net Profit Ratio| 010-2011| 239.
00| 1407. 88| 16. 97| 2009-2010| 171. 18| 1143. 48| 14.
97| 2008-2009| 192. 88| 1171. 34| 16. 46| 2007-2008| 65. 10| 938. 02| 6.
94| 2006-2007| 92. 97| 904. 30| 10. 28| SIGNIFICANCE A higher ratio will give better operational efficiency of the business concern. While a lower ratio will lack in operational efficiency. As the ratio is in decreasing trend.
It may be due to the overhead expenses are more. NET PROFIT RATIO GROSS PROFIT RATIO This ratio is also known as Gross Margin or Trading margin ratio. This ratio expresses relationship between gross profit and net sales. Its formula is: GROSS PROFIT RATIO=Gross ProfitNet Sales? 00 Year| Gross Profit| Sales| Gross Profit Ratio (%)| 2010-2011| 242. 61| 1407. 88| 17.
23| 2009-2010| 175. 55| 1143. 48| 15. 35| 2008-2009| 142. 95| 1171.
34| 12. 20| 2007-2008| 103. 15| 938. 02| 10. 99| 2006-2007| 137.
15| 904. 30| 15. 16| (Rs in Crores) SOURCE: ANNUAL REPORTS SIGNIFICANCE: This ratio indicates the degree to which the selling price of goods per unit may decline without resulting in losses from operation to the firm. It also helps in ascertaining whether the average percentage of marks-up on the goods is maintained. GROSS PROFIT RATIO FIXED ASSETS TURNOVER RATIOThis ratio indicates the extent to which the investments in fixed assets contribute towards sales. If compared with a previous period, it indicates whether the investment in fixed assets has been judicious or not.
The ratio is calculated as follows: FIXED ASSETS TURN OVER RATIO=Net SalesFixed Assets(Net) (Rs in Crores) Year| Cost Of Sales| Net Fixed Assets| Fixed Asset Turnover Ratio| 2010-2011| 1407. 88| 184. 20| 7. 65| 2009-2010| 1143. 48| 171.
73| 6. 66| 2008-2009| 1171. 34| 162. 66| 7. 20| 2007-2008| 938. 02| 178.
52| 5. 25| 2006-2007| 904. 30| 171. 60| 5. 26| SOURCE: ANNUAL REPORTS SIGIFICANCE: In the Fixed Assets Turnover it increases in the investment in fixed assets has not brought about commensurate gain.However, the result for next two or three years must also be seen before commenting on judiciousness or other otherwise of increase in investments in the fixed assets.
FIXED ASSETS TURNOVER RATIO WORKING CAPITAL TURNOVER RATIO This is also known as Working Capital Leverage Ratio. This ratio indicates whether or not working capital has been effectively utilized in making sales. In case a company can achieve higher volume of sales with small amount of working capital, it is an indication of the operating efficiency of the company. The ratio is calculated as follows: WORKING CAPITAL TURNOVER RATIO=Net SalesWorking Capital (Rs in Crores) Year| Cost Of Sales| Working Capital| Working Capital Turnover Ratio| 2010-2011| 1407. 8| 218.
53| 6. 44| 2009-2010| 1143. 48| 130. 86| 8. 73| 2008-2009| 1171. 34| 168.
75| 4. 89| 2007-2008| 938. 02| 101. 10| 3. 22| 2006-2007| 904.
30| 94. 05| 2. 93| SOURCE: ANNUAL REPORTS SIGIFICANCE: Higher sales in comparison to working capital indicate overtrading and lower sales in comparison to working capital indicate under trading. A higher ratio is ratio is the indication of lower investment of working capital and more profit. WORKING CAPITAL TURNOVER RATIO | OWNED CAPITAL TURNOVER RATIO Managerial efficiency is also calculated by establishing the relationship between costs of sales with the amount of capital invested in the business.Capital turnover ratio is calculated with the help of the following formula: OWNED CAPITAL TURNOVER RATIO=SalesShareholder Funds (Rs in Crores) Year| Cost Of Sales| Shareholder Funds| Owned Capital Turnover Ratio| 2010-2011| 1407.
88| 917. 11| 1. 53| 2009-2010| 1143. 48| 780. 08| 1.
46| 2008-2009| 1171. 34| 694. 02| 1. 68| 2007-2008| 938. 02| 603. 31| 1.
55| 2006-2007| 904. 30| 569. 85| 1. 58| SOURCE: ANNUAL REPORTS SIGIFICANCE: Higher ratio indicates higher efficiency and lower ratio indicates inefficiency usage of capital. OWNED CAPITAL TURNOVER RATIO RETURN ON SHARE HOLDERS FUND This ratio signifies the return on equity share holders fund.
The profit considered for computing the ratio is taken after payment of preference dividend.RETURN ON SHARE HOLDERS FUND=Net Profit After Tax ,Interest ;amp; Preference DividendNet Sales? 100 Year| Net Profit After Interest ;amp; Tax| Share Holder’s Fund| Return on Shareholder Funds Ratio| 2010-2011| 239. 00| 917. 11| 26. 06| 2009-2010| 171.
18| 780. 08| 21. 94| 2008-2009| 192. 88| 694. 02| 27. 79| 2007-2008| 65.
10| 601. 31| 10. 80| 2006-2007| 92. 97| 569. 85| 16.
31| SOURCE: ANNUAL REPORTS SIGIFICANCE: This ratio indicates that how profitability of owners fund have been utilized by the firm. RETURN ON SHARE HOLDERS FUND OPERATING RATIO Operating ratio measures the amount of expenditure incurred in production sales and distribution of output.It indicates operational efficiency of the concern . OPERATING RATIO=Cost Of Goods Sold + Operating ExpensesNet Sales? 100 (Rs in Crores) Year| Cost Of Goods Sold +Operating Expenses| Sales| Operating Ratio| 2010-2011| 2358. 94| 1407.
88| 167. 55| 2009-2010| 1931. 59| 1143. 48| 168. 92| 2008-2009| 1994. 17| 1171.
34| 170. 24| 2007-2008| 1687. 73| 938. 02| 179. 92| 2006-2007| 1538.
29| 904. 30| 170. 10| SOURCE: ANNUAL REPORTS SIGIFICANCE: This ratio indicates the relationship between total operating expenses and sales. This ratio indicates operational efficiency of the concern. Lower the ratio more is the efficiency. OPERATING RATIO CONCLUSIONThe main aim of the training was to analyze and learn more about the office organization and the management of POLARIS SOFTWARE LAB LIMITED, and to bridge the gap between theory and practical knowledge. This training creates an interest and courage. The company’s objectives of production of certain products have been strictly adhered to. The project was also useful in learning the principles of the company and its working style. The functions of various department of the company has also been highlighted to me during my project period and have a unique feature of CORPORATE SECRETARYSHIP COURSE, develops the students to face their future with utter courage and desire. I am sure that this will lead to a great success for me. Thus, the training gave me a good practical knowledge about Public Limited Company and its functions. ANNEXURES OF