CONTINUOUS EVALUATION COMPONENT (CEC)

1. 1
A
Project Report
Of
CONTINUOUS EVALUATION COMPONENT (CEC)
-: Submitted by:-
STREAM
MBA SEM – 2
GUIDED BY
Asst. Prof. Hiren Mehta (LAB)
Asst. Prof. Paras Parmar (SM)
Asst. Prof. Vaishali Nindroda (SFM)
Asst. Prof. Hetal Rupareliya (NEIM)
Asst. Prof. Hetal Rupareliya (SAPM)
Asst. Prof. Ayubkhan (MFS)
COLLAGE
SHREE H.N.SHUKLA COLLAGE OF MANAGEMENT & STUDIES
SUBMITTED
GUJARAT TECHNOLOGICAL UNIVERSITY, AHEMADABAD
NAME ENROLLMENT NO.
Akshay D. Rajvir 157590592071
Dharmesh R.Chotaliya 157590592109

2. 2
SR. PARTICULARS PAGE
NO.
1 E-I-C ANALYSIS (SAPM)
2 LEVERAGE ANALYSIS (SFM)
3 E-COMMERCE & PLASTIC MONEY (MFS)
4 ENTREPRENEUR & IT’S QUALITIES (NE&IM)
5 CONSUMER PROTECTION ACT, 1986 (LAB)
6 MERGER OF VODAFONE AND HUTCH (SM)

3. 3

4. 4
In security selection process, a traditional approach of Economic
Industry Company analysis is employed. EIC is the abbreviation of economic,
industry and company. The person conducting EIC analysis examines the
conditions in the entire economy and then ascertains the most attractive
industries in the light of the economic conditions. At last the most attractive
companies within the attractive industries are pointed out by the analyst.
Levels of E-I-C Analysis
The
Organizatio
n
Competitors
Markets
Industry
Economy

5. 5
Every common stock is susceptible to the market risk. This feature of almost
all types of common stock indicates their combined movement with the
fluctuations in the economic conditions towards the improvement or
deterioration.
Stock prices react favorably to the low inflation, earnings growth, a better
balance of trade, increasing gross national product and other positive
macroeconomic news.
Indications that unemployment is rising, inflation is picking up or earnings
estimates are being revised downward will negatively affect the stock prices.
This relationship is reasonably reliable that the US economy is better
represented by the Standard & Poor 500 stock index, which is famous market
indicator.
The stock market will forecast an economic boom or recession properly from
the signs in front of average citizen. The Federal bank of New York has
conducted a research that describes that the slope of the yield curve is the
perfect indicator of the economic growth more than three months out.
Recession is indicated by negative slope while positive slope is considered as
good one. The implications of market risk should be clear to the investor.
When there is recession in the economy, the prices of stocks moves
downward.
All the companies suffer the effects of recession despite of the fact that these
are high performing companies or low performing ones. Similarly the stock
prices are positively affected by the boom period of the economy.

6. 6

7. 7
The Five Forces model of Porter is an outside-in business unit strategy tool that
is used to make an analysis of the attractiveness (value...) of an industry
structure.
It captures the key elements of industry competition.
BUYERS
- Face Competition
- Consumer Demand (more features, minutes and text, less money)
- Switching Cost
- Maturing Urban Market
SUPPLIERS
- Network Infrastructure provider
- Information technology support
- Passive infrastructure providers
- Telecom equipment manufacturers-including handset manufacturers
Competitive
rivalry
within an
industry
threats of
new
entrants
bargaining
power of
Buyers
threats of
substitute
products
bargaining
power of
suppliers

8. 8
RIVALRY
- Idea
- Telefónica
- T- Mobile
- Airtel
- Orange
SUBSTITUTES
- Fixed Mobile Line Conversion
- Internet Calling Services, VOIP ( Skype, Messengers)
- Email
- Satellite Phones
- Unlicensed frequency options (ex: Wi-Fi, UWB, Walkie Talkie)
NEW ENTRANTS
- Brands
- Economies of Scale
- Spectrum Availability
- Service Licensing
- Technology Retaliation
- Rivalry among competing firms
- Price wars
- Fixed Cost
- Strategic stakes

9. 9
STRENGTH
- Brand Image
- Global Presence
WEAKNESS
- Grew through the acquisition
For ex. Czech mobile, Hutch
- It’s increase the subscriber
- Centralized operational structure
OPPORTUNITIES
- Different Strategies
- Simple phones and simplify pricing system
- Expanding boundaries in the market
THREATS
- Existing high level of competition
- Substitute Products

10. 10

11. 11
- Leverage means use of assets and sources of funds having fixed costs in
order to increase the potential returns to shareholders.
- The term leverage means in general refers to the relationship between two
interrelated variables. In financial matters one financial variable influence
another variable.
- Those financial variables may be cost, sales revenue, earnings before
interest and tax (EBIT), output, earnings per share etc.
-
- In the leverage analysis, the emphasis is on the measurement of the
relationship of the two variables, rather than on measuring the variables.
-
- Leverage = %change in dependent variable/% change in independent
variables
-
- “Leverage may be defined as percentage return equity to percentage return
on capitalization.”
Types of leverage
Operating
Leverage
Financial
Leverage
Combined
Leverage

12. 12
- DEGREE OF OPERATING LEVERAGE
Operating leverage measure the relationship between the sales revenue
and the EBIT or in other word it measures the effect of change in sales
revenue on the level of EBIT. The operating leverage is calculated by
dividing the % change in EBIT by the % change in sales revenue.
= % change in EBIT / % change in sales revenue
- Degree of financial leverage
“Financial leverage may be defined as percentage return on the equity
to the percentage return on capitalization.”
Degree of financial leverage may be defined as the percentage change in
taxable profit as a result of percentage change in “operating profit”
= % change in EBIT / % change in EBT
- Combined Leverage
It expresses the relationship between revenue on account of sales and
the taxable income. It helps in finding out the resulting percentage
change in taxable income on account of percentage change in sales.

13. 13
Fiscal year ends in March. EUR in millions
except per share data.
2012-03 2013-03 2014-03 2015-03 2016-03
Revenue 55710 52704 46409 57742 51955
Cost of revenue 37862 36173 33817 42229 38593
Gross profit 17848 16530 12592 15513 13363
Operating expenses
Sales, General and administrative 9964 10028 8808 12582 11007
Other operating expenses -5543 895 8519 242 610
Total operating expenses 4422 10924 17327 12824 11616
Operating income 13427 5607 -4736 2690 1746
Interest Expense 2118 1997 674 2412 217
Other income (expense) 152 250 -968 1220 -2099
Income before taxes 11461 3860 -6378 1497 -569
Provision for income taxes 3056 3062 -20069 -6516 4272
Other income 0
Net income from continuing operations 8405 798 13690 8013 -4841
Net income from discontinuing ops 58223 78
Other -55 -289 -201 -213 -261
Net income 8350 509 71713 7878 -5103
Net income available to common
shareholders
8350 509 71713 7878 -5103
Earnings per share
Basic 3.02 0.19 27.09 2.97 -1.91
Diluted 3 0.19 26.88 2.96 -1.91
Weighted average shares outstanding
Basic 2762 2683 2647 2649 2669
Diluted 2780 2696 2668 2663 2669
EBITDA 23012 14988 3446 16989 11691

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Fiscal year ends in March. EUR in
millions except per share data.
2012-03 2013-03 2014-03 2015-03 2016-03
Assets
Current assets
Cash
Cash and cash equivalents 8567 9039 12265 9411 12957
Short-term investments 1588 6344 5348 5271 5351
Total cash 10155 15384 17613 14682 18308
Receivables 4663 4737 4390 5393 5581
Inventories 583 534 534 659 716
Prepaid expenses 4551 3797 1319
Other current assets 8633 6960 2833 2608 9764
Total current assets 24034 27614 29920 27139 35687
Non-current assets
Property, plant and equipment
Gross property, plant and equipment 57931 61482 60766 75343 77081
Accumulated Depreciation -35541 -37373 -33110 -38966 -41472
Net property, plant and equipment 22390 24109 27656 36377 35609
Equity and other investments 43086 46732 4438 5133 4540
Goodwill 46028 36016 28217 30817 28897
Intangible assets 25401 26118 28287 28651 30406
Deferred income taxes 2364 3463 24940 32606 28381
Prepaid pension benefit 37 62 42 231 224
Other long-term assets 4179 5101 3958 6652 5808
Total non-current assets 143486 141599 117538 140469 133865
Total assets 167521 169214 147458 167608 169552
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 7511 14572 9376 17261 20314
Accounts payable 5432 5132 5700 6911 7440
Taxes payable 3568 3798 2324 2225 2003
Accrued liabilities 10755 11779 10771 11036 7636
Deferred revenues 1972
Other current liabilities 1569 1744 2132 2081 2981
Total current liabilities 28835 37026 30304 39514 42346
Non-current liabilities
Long-term debt 34040 34517 25965 30678 37181
Deferred taxes liabilities 7918 7943 904 814 566
Accrued liabilities 428 381 552 388 183
Deferred revenues 165

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Pensions and other benefits 404 746 707 775 567
Minority interest 1521 1199 1185 2171 1816
Other long-term liabilities 2036 2644 2153 2820 3185
Total non-current liabilities 46347 47429 31466 37646 43662
Total liabilities 75182 84455 61769 77161 86008
Stockholders' equity
Common stock 4589 5185 4808
Additional paid-in capital 184980 182947 141568 160062 152069
Retained earnings -101039 -105283 -62241 -67647 -71781
Treasury stock -9411 -10707 -8698 -9633 -8800
Accumulated other comprehensive
income
17808 17801 10471 2482 7248
Total stockholders' equity 92338 84759 85689 90448 83544
Total liabilities and stockholders' equity 167521 169214 147458 167608 169552

16. 16
PARTICULAR Mar-12 Mar-13 Mar-14 Mar-15 Mar-16
Revenue 55710 52704 46409 57742 51955
Cost of revenue 37862 36173 33817 42229 38593
Gross profit 17848 16531 12592 15513 13362
Operating expenses
Sales, General and administrative 9964 10028 8808 12582 11007
Other operating expenses -5543 895 8519 242 610
Total operating expenses 4421 10923 17327 12824 11617
Operating income(EBIT) 13427 5608 -4735 2689 1745
Interest Expense 2118 1997 674 2412 217
Other income (expense) 152 250 -968 1220 -2099
EBT 11461 3861 -6377 1497 -571
Tax 3056 3062 -20069 -6516 4272
EAT 8405 799 13692 8013 -4843
EPS 3.02 0.19 27.09 2.97 -1.91
Operating leverage -58% -184% -157% -35%
Change in EPS -0.94 141.58 -0.89 -1.64
Change in EBIT -0.58 -1.84 -1.57 -0.35
Financial Leverage 161% -7676% 57% 468%
Combine Leverage -93.71% 14157.89% -89.04% -164.31%

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18. 18
ATM cards
Debit Cards
Store Cards
Credit card
Smart card
Cash Card
Prepaid Cash Card
Loyalty Card

19. 19
1. Debit Cards - When a person uses a debit card, the money is directly
debited from the person’s bank account. Thus, a person can use the
debit card till he has sufficient balance in his bank account as there is no
deferred payment. Debit cards can also be used in Automated Teller
Machines (ATMs) to withdraw cash.
2. Credit cards - A credit card is a type of plastic money using which a
person can purchase now and pay later. When the person swipes his
credit card for making payment, the amount does not get debited to his
bank account. It is paid by the credit card company and comes to the
person in the form of a monthly statement.
3. Smart Cards - A smart card consists of an electronic chip used to store
cash. While making a payment, the exact amount is deducted from the
smart card. This card does not require any authorization like signature or
identification.
4. Cash Cards - These cards cannot be used to make payments or buying
things. They are only useful for withdrawing cash from machines, known
as ATMs.
5. Prepaid Cash Cards - These cards are similar to credit cards except that
there are no monthly statements. It can be used till there is credit in the
card but does not need a bank account.
6. Store Cards - Some stores have their own cards which can be used at
that particular store or group of stores. They can be used like credit
cards in the particular stores but are accompanied with high interest
rates.
7. Loyalty Cards - Loyalty cards are issued by retailers as a reward to
frequent buyers. It entitles the cardholders to a certain percentage of
discounts every time they purchase from that retailer.

20. 20
What is E-commerce, how banking sector play an importance role of e-
commerce and also discuss the advantages of E-commerce.
The buying and selling of products and services by businesses and consumers
through an electronic medium, without using any paper documents. E-
commerce is widely considered the buying and selling of products over the
internet, but any transaction that is completed solely through electronic
measures can be considered e-commerce. E-commerce is subdivided into
three categories: business to business or B2B (Cisco), business to consumer or
B2C, and consumer to consumer or C2C (eBay).

21. 21
VODAFONE
SERVICE
Get Started
Overview
Prepaid
Connection
Postpaid
Connection
Vodafone FLEX
Vodafone U
Switch to
Vodafone
Mobile Internet
Overview
Vodafone
SuperNetTM 4G
Advantage
4G User Guide
New to mobile
internet?
Dongles &
Mobile WiFi
Music, Videos &
more
Overview
Callertunes &
Tones
Music
Videos
Games & Apps
Health
Roaming
Overview
National
Roaming
International
Roaming
Save with
Vodafone
Recharge while
roaming
Things to
Remember

22. 22

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24. 24
erghiese Kurien known as the father of the white
revaluation in india was a social entrepreneur
whose "billion-litre idea"., Operation Flood - the
world's largest agricultural dairy development
programme, made India the world's largest milk
producer, surpassing the United States of America
by 1998, with about 17 percent of global output in
2010–11, from a milk-deficient nation, which
doubled milk available per person within 30 years,
and which made dairy farming India's largest self-
sustaining industry, with benefits of employment,
incomes, credit, nutrition, education, heath,
gender parity & empowerment, breaking down
caste barriers and grassroots democracy and
leadership.
Co-founder of Amul
Anand
Milk
Union
Limited
Founder of NDDB
National
Dairy Development
Board
Founder of IRMA
Institute
of
rural management
anand
V
26 November 1921
Kozokode, Kerela
09 September 2012
Nadiad, Gujarat

25. 25
Ramon Magsaysay Award for Community Leadership (1963)
Padma Shri (1965)
Padma Bhushan (1966)
Krishi Ratna Award (1986)
Godfrey Philips bravery award
Wateler Peace Prize Award of Carnegie Foundation (1986)
World Food Prize Laureate (1989)
International Person of the Year(1993) by the World Dairy Expo,
Madison, Wisconsin, USA
Padma Vibhushan (1999)

26. 26
Father of the white revolution in india.
Architect behind the success of the largest dairy development programe in
the world.
Chairman of the gujarat co-operative milk marketing federation ltd.
(gcmmf).
His name was synonymous with the amul brand.
Under dr. Kurien's stewardship india became the as the largest producer of
milk in the world.
Kurien was committed to promoting cooperatives to empower the indian
farmer.
Dr. Norman borlaug has called him “one of the world’s great agricultural
leaders of this century”.
 Clarity of vision and ability to share it with others.
 Real passion and pride in what they believe.
 Ability to inspire and motivate others
 Willingness to take (calculated) risks
 Lateral thinking and ability to find innovative ideas and solutions to
problems.
 Positive attitude at all times and an innate ability to be diplomatic in any
circumstances
 Respect for all (team members, temps, customers, suppliers and directors
alike)
 Committed to making a significant difference
 Clear standards of ethics and integrity; openness and honesty
 Ability to drive, inspire and embrace change and continuous improvement

27. 27

28. 28
CASE
Holding Vodafone India guilty of deficiency in service, Maharashtra State
Consumer Disputes Redressal Forum has upheld a lower court order which
asked the service provider to pay Rs 20,000 compensation and Rs 5,000 costs
to a doctor for failing to stop unsolicited commercial communications.
"Vodafone had failed to discharge its obligation and acted with imperfection,
shortcoming or inadequacy in the nature and manner of purpose, which is
required to be maintained by it under the regulations," observed SR Khanzode
and DhanrajKhamatkar in their order yesterday.
"Thus, deficiency in service within the meaning of section 2(1)(g) of the Act is
well established as against Vodafone," the forum members further said while
dismissing an appeal filed by Vodafone against the consumer court judgement.
Dr Ashish Gala, who practices in suburban Mulund, had registered with
Vodafone on the "Do not Call list". Yet, he got calls from various companies
following which he filed a complaint with the service provider on August 30,
2008, saying Vodafone should have ensured that he did not get the calls.
Vodafone argued that it was not deficient in service as under Telecom and
Solicited Commercial Communications Regulations, 2007, there is no positive
obligation on them to stop unsolicited commercial calls.
In fact, Vodafone said, Telephone Regulatory Authority of India did not
contemplate and acknowledge the fact that such communication or unsolicited
communication calls cannot be stopped entirely.
Vodafone further contended that as per explanatory memorandum issued to
clause 16 of the Regulations, 15 days time is provided for a subscriber for
making the complaint to his service provider in respect of unsolicited
commercial communications. However, the complainant, Dr Gala, had failed to
make any such complaint within a fortnight.

29. 29
Complainant : - Dr Ashish Gala
Complaint :-Dr Ashish Gala, who practices in suburban Mulund, had registered
with Vodafone on the "Do not Call list". Yet, he got calls from various
companies following which he filed a complaint with the service provider on
August 30, 2008, saying Vodafone should have ensured that he did not get the
calls
Deficiency :-
Section 2(1)(g) in the Consumer Protection Act, 1986
(g) “deficiency” means any fault, imperfection, shortcoming or inadequacy in
the quality, nature and manner of performance which is required to be
maintained by or under any law for the time being in force or has been
undertaken to be performed by a person in pursuance of a contract or
otherwise in relation to any service;
"Thus, deficiency in service within the meaning of section 2(1)(g) of the Act is
well established as against Vodafone," the forum members further said while
dismissing an appeal filed by Vodafone against the consumer court judgment.
Judgment
Holding Vodafone India guilty of deficiency in service, Maharashtra State
Consumer Disputes Redressal Forum has upheld a lower court order which
asked the service provider to pay Rs 20,000 compensation and Rs 5,000 costs
to a doctor for failing to stop unsolicited commercial communications.

30. 30

31. 31
MERGER OF VODAFONE AND HUTCH
Background – Vodafone (Voice Data Fone)
 Founded : 1983 as Racal Telecom, independent 1991
 Group : Vodafone Plc
 Headquarters : Berkshire, UK
 Key People : Vittorio Colao, CEO & Sir John Bond, Chairman
 Industry : Mobile Telecommunications.
 Presence : Equity Interest in 25 Countries & Network Partner in 42
 Strength : 2,30,000 (Employees)
 Revenue : £ 35,478 Million(14.1% Growth)
 Net Income : £ 10,047 Million(10.1% Growth)
 EPS : 7.51 Pence Dividend Per Share(11.1% Growth)
Background – Hutch –Essar
 Operations : 1992
 Circles : 16 + license for 6 circles
 Revenue : $ 1,282 Million
 EBITDA : $ 415 Million
 Operating Profit : $ 313 Million
 Subscriber Base : 29.2 Million
 ARPU : Rs. 340.15

32. 32
Vodafone – Hutchison Deal
 Vodafone acquired HTIL (Hutchison Telecom International)’s 67% stake
in Hutchison-Essar.
 Relations between Hutchison Telecom and the Essar group of India will
be key to the sale of Hutch's 67% stake in Hutch-Essar.
 Deal size and stake Fourth largest deal of the year 2007 (to date) at
$13.3 bn ($11.1 bn plus $2 bn debt). Hutchison Essar valued at $18.8 bn.
Reasons for Hutchison’s Exit
 Urban markets in the country had become saturated.
 Future expansion would have had to be only in the rural areas, which
would lead to falling average revenue per user (ARPU) and consequently
lower returns on its investments.
 HTIL also wanted to use the money earned through this deal to fund its
businesses in Europe.
 The sale of its interests in India will enable Hutchison Telecom to
become one of Asia’s best capitalized companies.
Principal Benefits for Vodafone
 Accelerates Vodafone’s move to a controlling position in a leading
operator in the attractive and fast growing Indian mobile market.
 India is the world’s 2nd most populated country with over 1.1 billion
inhabitants.
 India is the fastest growing major mobile market in the world, with
around 6.5 million monthly net adds in the last quarter.
 India benefits from strong economic fundamentals with expected real
GDP growth in high single digits
 Increases Vodafone’s presence in higher growth emerging markets.