SUMMER INTERNSHIP PROJECT report On MARKET REASEARCH ON CAR RENTAL INDUSTRY INKOLKATA & Comparative FINANCIAL ANALYSIS OF ...
AcknowledgementWith immense pleasure, I would like to present this project report for Market Research onCar Rental Industr...
Approval of Industry GuideThis is to certify that Mr Debasish Dutta, a student of GLOBSYN BUSINESS SCHOOL,Kolkata, bearing...
Approval of Academic MentorThis is to certify that Mr Debasish Dutta, bearing enrolment No. 010110095, has carriedout the ...
DeclarationI do hereby declare that this project entitled with “Market Research on Car Rental Industryin Kolkata & Compara...
Table of ContentsINTRODUCTION ...............................................................................................
IntroductionCar Rental Industry In India“The booming economy has led to a considerable growth of corporate business. Also,...
Company ProfileRuia Car Rental is an ISO 9001:2000 certified company which comes under Narayani Group.Narayani Group was s...
Fortuner, Honda Accord, Toyota Camry, Mercedes Benz E Class and BMW 5 Series. The fleetmix however may vary at each locati...
Objectives of The ProjectThis project consists of two parts: Market Research on Car Rental Industry and ComparativeFinanci...
Market ResearchResearch DesignResearch Objectives:The project includes primary and secondary research activities on Car Re...
Presentation & Analysis of DataCase 1: H0: Servicing time period is independent of company type.Chi-Square Contingency Tab...
Case 2: H0: Maximum number of years that a particular car is used is independent of companytype.Chi-Square Contingency Tab...
Case 3: H0: Type of services provided is independent of company type.Chi-Square Contingency Table of Company Type & Type o...
Case 5: H0: Car Chauffeurs Ratio is independent of company type              ANOVA Table of    Company Type & Car Chauffeu...
Here we will accept the null hypothesis since the p-value is greater than the significance level(5%).Case 7: H0: Hiring pr...
Case 9: H0: Type of training to the chauffeurs is independent of company type.Chi-Square Contingency Table of Company Type...
Case 11: H0: Chauffeurs’ ability to communicate in English is independent of company type.Chi-Square Contingency Table of ...
Case 13: H0: Minimum experience of the chauffeurs is independent of company type.Chi-Square Contingency Table of Company T...
Here we will accept the null hypothesis since the p-value is greater than the significance level(5%).Case 15: H0: Salary p...
Case 17: H0: Payment mode for customers is independent of company type.Chi-Square Contingency Table of Company Type & Paym...
Fig. Company Type & Impact Score of Fleet (Comparison of Groups)8.07.06.05.04.03.02.01.00.0            Small Companies    ...
Here we will accept the null hypothesis since the p value is greater than the significance level(5%).Case 19.3: H0: Impact...
Case 19.4: H0: Impact score of services is independent of company type.              ANOVA Table of Company Type &Impact S...
Source         SS         df       MS              F                            p-value Treatment      12.71      2       ...
Fig. Company Type & Impact Score of Business Process                                (Comparison of Groups)   7.0   6.0   5...
Tukey simultaneous comparison t-values (df. = 29)                            Small Companies        Large Companies       ...
Summary of The Primary ResearchCase 1: Servicing time period is independent of company type.Case 2: Maximum no. of years t...
19.4: Impact score of services is independent of company type.19.5: Impact score of chauffeurs is independent of company t...
Findings of Primary Research  1) Any company irrespective of its type cannot ignore the importance of servicing of its    ...
11)Chauffeurs’ ability to communicate in English considered during hiring is dependent of   company type (p= 0.0001). 80% ...
Average Impact Score(On A Scale of 7)Business Process                                3.84375     Chauffeurs               ...
Ruia Car Rentals In The Light of Porter’s Five ForcesCompetitive Rivalry: HighThere is a substantial amount of competitors...
meet their requirements or consumers can also utilize public transport like train, bus or semi-public transport like taxi,...
SWOT Matrix For Ruia Car RentalsOne of the objectives of this project is to develop a SWOT matrix for Ruia Car Rentals bas...
Service        Quality Quality Standards of     Ruia Car Rentals         CommentsComponents             The Industry / Lar...
Service        Quality Quality Standards of Ruia Car Rentals                                         CommentsComponents   ...
Weaknesses:  1. Low visibility on web: In today’s business world, it is very important to be visible in the     internet; ...
2. No presence of garage in Salt Lake/ Rajarhat: Ruia Car Rentals has two garages in the       city but it does not have a...
Year    Foreign Exchange Earning From Tourism (in INR Crores)              % Change Over                                  ...
c. According to a WTTC report, India’s travel and tourism industry will directly           contribute INR 3,345 billion (U...
Comparative Financial AnalysisRatio Analysis1. Current Ratio: It gives us an idea about the capability of the company to p...
Current Ratio of Ruia Car rentals has decreased gradually throughout the 4 years and it is lessthan Avis and ITC Travel Ho...
3. Debt To Equity Ratio: It gives us the idea about the amount of Debt a company is having   compared to its Equity. Highe...
4. Debt To Total Asset Ratio: It gives us an idea about how much of the asset is funded by   debt.Debt To Total Asset Rati...
5. Cash Turnover Ratio: It reflects the companys ability to finance current operations, the   efficiency of its working ca...
6. Interest Coverage Ratio: It gives us an idea about how many times the company can pay   off its interest through its pr...
As On 31st March As On 31st March Increase / DecreaseParticulars              2009             2010             (%)Bank   ...
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS
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MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS

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This project consists in to two parts:
1. Market Research on Car Rental Industry in Kolkata which deals with 25 hypothesis testing to find out the benchmarks of service quality standards of the industry
2.Comparative Financial Analysis of Ruia Car Rentals which include Ratio Analysis, Du-Pont Analysis, Comparative Financial Statement Analysis etc.

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MARKET REASEARCH ON CAR RENTAL INDUSTRY IN KOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS

  1. 1. SUMMER INTERNSHIP PROJECT report On MARKET REASEARCH ON CAR RENTAL INDUSTRY INKOLKATA & Comparative FINANCIAL ANALYSIS OF RUIA CAR RENTALS Undertaken AtSubmitted For Partial Fulfilment of Award of Post Graduate Program in Management SUBMITTED BY DEBASISH DUTTA (Enrolment No: 010110095) of
  2. 2. AcknowledgementWith immense pleasure, I would like to present this project report for Market Research onCar Rental Industry in Kolkata & Comparative Financial Analysis of Ruia Car Rentals. Ithas been an enriching experience for me to undergo my summer training at RUIA CARRENTALS, which would not have possible without the goodwill and support of the peoplearound. As a student of GLOBSYN BUSINESS SCHOOL, KOLKATA I would like to express mysincere thanks to all those who helped me during my summer internship program.Words are insufficient to express my gratitude toward Mr ABHISHEK RUIA, the ManagingDirector, RUIA CAR RENTALS, Kolkata for giving me the opportunity to do my project workin the organization. I would like to give my heartily gratitude to the organization guide, MrDIGVIJAY SINGH, the Marketing Manager, RUIA CAR RENTALS, Kolkata for enlightening myway of progress with his guidance.Special thanks to Mr AVIK MUKHERJEE, Assistant Professor of Finance, Mr PRITHIRAJBANERJEE, Assistant Professor of Finance, Mr DEBRAJ DUTTA, Assistant Professor ofMarketing and all faculty members of GLOBSYN BUSINESS SCHOOL, KOLKATA for all theguidance given in executing the project as per requirements.However, I accept the sole responsibility for any possible error of omission and would beextremely grateful to the readers of this project report if they bring such mistakes to mynotice.Debasish Dutta6th July, 2012
  3. 3. Approval of Industry GuideThis is to certify that Mr Debasish Dutta, a student of GLOBSYN BUSINESS SCHOOL,Kolkata, bearing Enrolment No. 010110095 was a summer trainee at our organization fora period of eleven weeks starting from 9th April, 2012 to 23rd June, 2012.His project entitled “Market Research on Car Rental Industry in Kolkata & ComparativeFinancial Analysis of Ruia Car Rentals” was done under my guidance.The project is submitted in partial fulfilment of the requirements for the award of the degreeof POST GRADUATE PROGRAM IN MANAGEMENT to GLOBSYN BUSINESS SCHOOL,Kolkata is a record of bona-fide training carried out by him.Signature: Seal of the company:Mr Digvijay SinghMarketing ManagerRuia Car Rentals, Kolkata
  4. 4. Approval of Academic MentorThis is to certify that Mr Debasish Dutta, bearing enrolment No. 010110095, has carriedout the project work presented in this project report entitled “Market Research on CarRental Industry in Kolkata & Comparative Financial Analysis of Ruia Car Rentals” for theaward of Post Graduate Program in Management from GLOBSYN BUSINESS SCHOOL,Kolkata under my supervision.The project report embodies results of original work and studies carried out by studenthimself and the contents of the project report do not form the basis for the award of any otherdegree to the candidate or to anybody else.Signature:Mr Avik MukherjeeAssistant Professor, FinanceGlobsyn Business School, Kolkata
  5. 5. DeclarationI do hereby declare that this project entitled with “Market Research on Car Rental Industryin Kolkata & Comparative Financial Analysis of Ruia Car Rentals” is my own and originalwork. This is for fulfilling the requirement of Post Graduate Program in Management as asummer internship project. It has never been submitted nor been published elsewhere.Signature:Debasish DuttaGlobsyn Business School, KolkataPGPM-10, Enrolment No: 010110071
  6. 6. Table of ContentsINTRODUCTION .......................................................................................................................................................... 2 CAR RENTAL INDUSTRY IN INDIA............................................................................................................................................. 2 COMPANY PROFILE .............................................................................................................................................................. 3 OBJECTIVES OF THE PROJECT ................................................................................................................................................. 5MARKET RESEARCH .................................................................................................................................................... 6 RESEARCH DESIGN ............................................................................................................................................................... 6 PRESENTATION & ANALYSIS OF DATA ...................................................................................................................................... 7 SUMMARY OF THE PRIMARY RESEARCH ................................................................................................................................. 23 FINDINGS OF PRIMARY RESEARCH ......................................................................................................................................... 25 RUIA CAR RENTALS IN THE LIGHT OF PORTER’S FIVE FORCES ..................................................................................................... 28 SWOT MATRIX FOR RUIA CAR RENTALS ............................................................................................................................... 30COMPARATIVE FINANCIAL ANALYSIS.........................................................................................................................37 RATIO ANALYSIS ................................................................................................................................................................ 37 FREE CASH FLOW .............................................................................................................................................................. 50 DU-PONT ANALYSIS ........................................................................................................................................................... 51 COMPARATIVE FINANCIAL STATEMENTS ................................................................................................................................. 53 COMMON SIZE FINANCIAL STATEMENTS ................................................................................................................................ 63RECOMMENDATIONS ................................................................................................................................................68 IMPROVING VISIBILITY ON THE WEB ..................................................................................................................................... 68 BETTER CONTROL OVER FINANCIAL SITUATIONS ...................................................................................................................... 69 GARAGE IN SALT LAKE SECTOR V OR RAJARHAT ...................................................................................................................... 70 MAINTAINING INDUSTRY STANDARDS OF CAR-CHAUFFEURS RATIO ............................................................................................. 70 EXPLORING NEW AVENUES FOR EXPANDING .......................................................................................................................... 70KEY LEARNINGS FROM THE PROJECT .........................................................................................................................71LIMITATIONS OF THE PROJECT...................................................................................................................................72BIBLIOGRAPHY ..........................................................................................................................................................73APPENDIX ..................................................................................................................................................................74 QUESTIONNAIRE FOR MARKET RESEARCH .............................................................................................................................. 74 FINANCIAL STATEMENTS OF RUIA CAR RENTALS ...................................................................................................................... 82 FINANCIAL STATEMENTS OF INTERNATIONAL TRAVEL HOUSE ..................................................................................................... 84 FINANCIAL STATEMENTS OF AVIS BUDGET GROUP INC.............................................................................................................. 87 Page |1
  7. 7. IntroductionCar Rental Industry In India“The booming economy has led to a considerable growth of corporate business. Also, therehas been an increase in the number of overseas visitors to India for both leisure and work,which has boosted business.’’ -------Jehangir J. Ghadiali, Managing Director, International Travel House (ITH)Huge infrastructure development, rigorous effort from Ministry of Tourism to project India astravel destination and emergence of BPO industry has given a huge push to the car rentalindustry in India. Unorganized operators dominate about 85% of the market. But growthfigures are impressive. The car rental industry grew from Rs. 3000 crore in 2003 to Rs. 10,000crore (US$ 2.10 billion) in 2007 notching up an annual average growth of 30%. Big name inthis industry includes Avis, Hertz India (Carzonrent, the master franchisee for Hertz in India).Carzonrent was initially launched in 2000 as the master licensee for Hertz for India — butHertz pulled out of the country in 2008. Carzonrent has grown from being a single servicecompany catering to just corporate chauffeur-driven cars with a fleet of 30 cars and aturnover of Rs 20 lakh per month in Delhi/Mumbai/Pune, into a complete mobility solutionscompany operating out of 34 locations in 13 cities. Carzonrent zips around with over 6,400cars through the country, while the other big players include Avis with its 1,400 cars, ITH witha fleet of 600 and ECO Rent A Car with another 800. Till now the normal protocol for almostall the car rental companies in India had been to rent cars with chauffeurs. Relateddiversification could be wedding car rental services (foreigners love to get married in anIndian style), car rental services for NRI tourists, self-drive car rental services. People arewilling to shell out anything in the range of Rs 1,300 to Rs 1,400 for a Swift daily. And nonewinces to pay over Rs 5,000 for a Ford Endeavour or a robust Rs 10,000 to Rs 15,000 for aMercedes Benz for just eight hours of self-drive. Most of the major car rental companies of areworking on setting up self-drive offices in major cities and on setting up desks in airports andhotels of India. They are also trying to set up fleet management and chauffeur driven cars forcorporate. They have even gone to the extent of offering holiday packages to their customersas they have tie ups with hotels throughout the country. The organized car rental industry,which is just 20% of the total rental market in India, constitutes a mere 3% or a fleet size of6,000 cars and contributes to about 7% or Rs 400 crore to the total revenue. Of this, a mere10% is currently contributed by the self-drive business, 20-25% by leasing of cars and therest come from chauffeur-driven cars that are largely used by corporate houses. Moreover,legislation that mandate a minimum of 75 cars and a presence in at least five cities for gettinga license to offer self-drive services is also restricting growth of this segment. However, theentry of new players like SIXT, Euro car, Thrifty and Dollar over the last one-and-a-half yearsis expected to bring about a further consolidation in the organized segment. Page |2
  8. 8. Company ProfileRuia Car Rental is an ISO 9001:2000 certified company which comes under Narayani Group.Narayani Group was started by Mr. Pasupati Ruia 16 long years back. It is mainly in to twobusinesses: Car Rental Services in the name of Ruia Car Rentals (Jodpur Park, Kolkata) and a 3star hotel business in the name of Hotel Narayani Enclave (Kasba, Kolkata).Company Introduction:This is a venture by a team of professionals from the car rental industry having over 16years of experience in the industry. They have understood the requirements of corporateworld; have an in-depth knowledge of the operation and a wide exposure to the working ofglobal car rental brands, products and professional practices. Courteous service andpunctuality has earned them the respect of a very reliable car rental company in India. Theteam of Ruia Car Rentals has worked in the branded car rental industry since its inception inIndia. The organization mission is “To provide world class Branded Car On Rental Basisconsistently.” To facilitate its corporate clients, they offer instant reservation at the cost of alocal call for all their network locations with the facility of centralized billing. They areaccessible to clients 24 Hours 365 Days.Company Hierarchy:Service Coverage:Ruia Car Rental is aggressively expanding themselves as a Pan India player. In Kolkata theyhave been in Car Rental Business for more than 16 long years. They have already expandedbusiness to Delhi. There they have their own office and own fleet. Right now they are alsooperating in Mumbai, Bangalore, Pune, Hyderabad, Ahmadabad, Chennai, Cochin, Jaipur,Vadodara, Patna, Bhubaneswar and Goa through their associates.Fleet:In Kolkata they have very large fleet of 117 self-owned cars and in Delhi they have a fleet of 50self-owned cars. The fleet mix comprises of Tata Indigo, Maruti Dzire, Toyota Innova, FordIcon, Ford Fiesta, Maruti SX4, Honda City, Toyota Corolla, Honda Civic, Toyota Altis, Toyota Page |3
  9. 9. Fortuner, Honda Accord, Toyota Camry, Mercedes Benz E Class and BMW 5 Series. The fleetmix however may vary at each location. To cater more efficiently to their clients this year theyhave introduced new generation cars of Ford Fiestas, Maruti SX4, Hyundai Verna, Honda Civic,Toyota Camry, instead of same old Mitsubishi Lancer, Honda City to our valuable Clients.Technological Initiatives:They are using software to ensure front end and back end integrated operations. This wouldensure timely and accurate billing and generation of client account statements.Corporate Fleet Management:Fleet management is a service which takes care of the entire organizations’transportation needs and has options of administration, maintenance and chauffeur servicesin addition to use and lease of the cars. Monthly MIS is provided which facilitates analysesfor better cost control, optimum utilization and corporate transportation planning. Theyhave developed their work culture perfectly from point of receiving a booking from a client tofinal bill settlement, they have complete group of efficient staffs who do their work verysincerely.Garage:In Kolkata, they have garages in two strategic locations (1) near Ruby Hospital & (2) JodhpurPark (South Kolkata), so having 2 different locations they can cater to clients more efficiently.Chauffeurs:Chauffeurs are the most important assets for Ruia Car Rentals. They have a team of expertwho scrutinize, interviews and chauffeurs undergo an intensive training program, whichcovers safe driving skills, grooming and appearance, good etiquette and emergency handlingskills. Minimum 6-7 years of experienced is must for chauffeurs to get selected. The chauffeursare smartly attired in uniform and carry mobile phones for easy accessibility with STD &Roaming facilities. Several of Ruia’s clients have appreciated the dedication of theirchauffeurs; they are able to work longer than others. The reason they can attribute for this isthat their chauffeurs team which are amongst the highly skillful and trained in Kolkata. Someof their clients from other parts of India and even abroad, while placing booking request forparticular driver whose service was very satisfying. Recurring business from a client is a signof a satisfied customer. But, request for the same chauffeurs is doubly satisfying. Moreover allchauffeurs are hired from Security Agencies, so that they are more reliable & serious in theirwork.Govt. Statutory Regulations:In the private sector they are the only car rental company to wholly comply with the Govt.Statutory regulations of paying ESI, PF, Gratuity, Bonus, etc. since these involve great deal ofpaper work and timely submission with several govt. agencies as such all the paper work isdone through the Security Agencies from whom they have hired the drivers. Copies of therelated documents can be submitted on request. Page |4
  10. 10. Objectives of The ProjectThis project consists of two parts: Market Research on Car Rental Industry and ComparativeFinancial Analysis of Ruia Car Rentals. Detailed objectives of each segment are given below.Market Research on Car Rental Industry 1. The project includes primary and secondary research activities on Car Rental industry in Kolkata to find out the recent trends in service quality standards and to set qualitative and or quantitative industry benchmark on parameters of service quality. 2. It also includes comparing Ruia Car Rentals with the industry benchmark to understand a competitive strength of the business and to develop a SWOT Matrix for them. 3. At the last the project includes developing concrete business recommendations for Ruia Car Rentals based on the outcome of the market research.Comparative Financial Analysis on Ruia Car Rentals 1. The project entitles to do an in-depth analysis of balance sheets & income statements of Ruia Car Rentals to understand the true financial position of the company. 2. It also includes comparative financial analysis of the company with respect to global player like AVIS Budget Group Inc. and national player like ITC’s International Travel House. 3. At the last the project includes making financial recommendations for Ruia Car Rentals based on the outcome of the analysis. Page |5
  11. 11. Market ResearchResearch DesignResearch Objectives:The project includes primary and secondary research activities on Car Rental industry inKolkata to find out the recent trends in service quality standards and to set qualitative and orquantitative industry benchmark on parameters of service quality.Research Methodology:Descriptive Research methodology is used in this research. In descriptive research both theprimary and secondary data is used.Data Collection Instrument: 1. Primary data is collected through personal interview and mail survey with a well- structured questionnaire consists of both open-ended and closed-ended questions to get information based on the objective of the research. 2. Secondary data is collected from InternetSample Design:Sample design is the method of how the sample will be collected. This method consists ofdetermination of followings: 1. Population: The survey population is the population we can observe. This is different from target population. The target population is the population we want to observe. In this case the survey population is Car Rental Companies which are currently operating in Kolkata. 2. Sampling Frame: The procedure for listing all the accessible members of the population is called the sampling frame. In this case the sampling frame is a list of names and communication addresses of 120 car rental companies in Kolkata, collected from internet. 3. Sample Units: Entire sample frame is divided into three sample units i.e. Small Companies, Medium Companies and Large Companies. 4. Sampling Technique: A probabilistic sampling technique is used as every unit has a chance of being selected, and that chance can be quantified. 5. Sampling Method: Stratified Random Sampling method has been used here. 6. Sample Size: 32 (Personal Interview: 24, Mail Survey: 8)Assumptions: 1. It is assumed that the chosen sample is the representation of whole population. 2. It is assumed that information provided by the samples is accurate and best of their knowledge. Page |6
  12. 12. Presentation & Analysis of DataCase 1: H0: Servicing time period is independent of company type.Chi-Square Contingency Table of Company Type & Service Time Period 0 To 2 3 To 4 5 To 6 7 To 12 After 1 Only After Total Months Months Months Months Year Encountering Major ProblemsSmall 0 7 6 0 0 0 13Medium 2 6 1 0 0 0 9Large 0 5 4 1 0 0 10Total 2 18 11 1 0 0 32Cannot calculate chi-square because one or more expected values = 0Here we cannot calculate chi-square since there is 0 value in two columns. So in order to getthe chi-square we are eliminating those two columns which contains only 0 values. 0 To 2 Months 3 To 4 Months 5 To 6 Months 7 To 12 Months TotalSmall 0 7 6 0 13Medium 2 6 1 0 9Large 0 5 4 1 10Total 2 18 11 1 32 9.60 chi-square 6 df 0.1425 p-valueHere we will accept the null hypothesis since the p-value is greater than the significance level(5%). Page |7
  13. 13. Case 2: H0: Maximum number of years that a particular car is used is independent of companytype.Chi-Square Contingency Table of Company Type & Maximum Years of Usages Between Between 3 Between 5 Between 7 To More Than 10 Total 0 To 2 To 4 Years To 6 Years 10 Years Years YearsSmall 0 2 11 0 0 13Medium 0 7 2 0 0 9Large 0 7 3 0 0 10Total 0 16 16 0 0 32Cannot calculate chi-square because one or more expected values = 0Here we cannot calculate chi-square since there is 0 value in three columns. So in order to getthe chi-square we are eliminating those three columns which contain only 0 values. Between 3 To 4 Years Between 5 To 6 Years TotalSmall 2 11 13Medium 7 2 9Large 7 3 10Total 16 16 32 10.61 chi-square 2 df 0.0050 p-valueHere we will reject the null hypothesis since the p-value is less than the significance level(5%). Page |8
  14. 14. Case 3: H0: Type of services provided is independent of company type.Chi-Square Contingency Table of Company Type & Type of Service Provided On Call Call Centre Fixed Airport Leased Self- Total Service Pick and Monthly Pick And Cars Driven drop Duty Drop CarsSmall 13 4 4 13 4 0 38Medium 9 6 3 8 1 1 28Large 10 3 6 9 2 2 32Total 32 13 13 30 7 3 98 6.77 chi-square 10 df 0.7467 p-valueHere we will accept the null hypothesis since the p-value is greater than the significance level(5%).Case 4: H0: Accessories kept in cars are independent of company type.Chi-Square Contingency Table of Company Type & Accessories Kept in Car English Magazines Mineral First Seat STD Others* Total Daily Waters Aid Belt Enabled Newspapers Box Cell PhonesSmall 7 1 7 12 13 11 4 55Medium 9 7 8 9 9 9 5 56Large 10 9 10 10 10 10 10 69Total 26 17 25 31 32 30 19 180 10.06 chi-square 12 df 0.6109 p-value*other accessories include fire extinguisher, tissue papers, torch, and umbrellaHere we will accept the null hypothesis since the p-value is greater than the significance level(5%). Page |9
  15. 15. Case 5: H0: Car Chauffeurs Ratio is independent of company type ANOVA Table of Company Type & Car Chauffeurs Ratio Mean n Std. Dev. 1.01572 13 0.114119 Small 0.87516 9 0.120172 Medium 0.92348 10 0.208274 Large 0.94736 32 0.158172 TotalSource SS df MS F p-valueTreatment 0.113365 2 0.0566823 2.48 0.1011Error 0.662210 29 0.0228348Total 0.775574 31 Fig. Company Type & Car Chauffeurs Ratio(Comparison of Groups)1.400001.300001.200001.100001.000000.900000.800000.700000.600000.500000.40000 Small Medium LargeHere we will accept the null hypothesis since the p-value is greater than the significance level(5%).Case 6: H0: Payroll process of chauffeurs is independent of company type.Chi-Square Contingency Table of Company Type & Payroll Process of Chauffeurs Yes No TotalSmall 7 6 13Medium 6 3 9Large 6 4 10Total 19 13 32 .36 chi-square 2 df 0.8333 p-value P a g e | 10
  16. 16. Here we will accept the null hypothesis since the p-value is greater than the significance level(5%).Case 7: H0: Hiring process of the chauffeurs is independent of company type.Chi-Square Contingency Table of Company Type & Hiring Process of Chauffeurs Through Own Selection Process Hire From Agencies TotalSmall 6 9 15Medium 5 5 10Large 9 3 12Total 20 17 37 3.38 chi-square 2 df 0.1846 p-valueHere we will accept the null hypothesis since the p-value is greater than the significance level(5%).Case 8: H0: Training process of chauffeurs is independent of company type.Chi-Square Contingency Table of Company Type & Training Process of Chauffeurs In House Training Training Is outsourced No Training Provided TotalSmall 5 5 5 15Medium 2 6 1 9Large 7 7 0 14Total 14 18 6 38 7.84 chi-square 4 df 0.0976 p-valueHere we will accept the null hypothesis since the p-value is greater than the significance level(5%). P a g e | 11
  17. 17. Case 9: H0: Type of training to the chauffeurs is independent of company type.Chi-Square Contingency Table of Company Type & Training Type of The Chauffeurs Defensive Soft Skills Etiquette Motor Repairing Disaster Total Driving Training Management Training TrainingSmall 6 4 3 2 2 17Medium 8 7 7 2 4 28Large 6 6 3 4 3 22Total 20 17 13 8 9 67 2.45 chi-square 8 df 0.9639 p-valueHere we will accept the null hypothesis since the p-value is greater than the significance level(5%).Case 10: H0: Regulation to maintain uniform for chauffeurs is not independent of companytype.Chi-Square Contingency Table of Company Type & Maintain Uniform Of the Chauffeurs Yes No TotalSmall 8 5 13Medium 9 0 9Large 10 0 10Total 27 5 32 8.66 chi-square 2 df 0.0132 p-valueHere we will reject the null hypothesis since the p-value is less than the significance level(5%). P a g e | 12
  18. 18. Case 11: H0: Chauffeurs’ ability to communicate in English is independent of company type.Chi-Square Contingency Table of Company Type & Ability To speak In English of Chauffeurs Yes No TotalSmall 0 13 13Medium 7 2 9Large 8 2 10Total 15 17 32 19.33 chi-square 2 df 0.0001 p-valueHere we will reject the null hypothesis since the p-value is less than the significance level(5%).Case 12: H0: Minimum education qualification of chauffeurs is independent of company type.Chi-Square Contingency Table of Company Type & Minimum education quality of Chauffeurs 10th Standard 12th Standard Graduation TotalSmall 13 0 0 13Medium 7 2 0 9Large 2 8 0 10Total 22 10 0 32Cannot calculate chi-square because one or more expected values = 0Here we cannot calculate chi-square since there is 0 value in one column. So in order to getthe chi-square we are eliminating that column which contains only 0 values. 10th Standard 12th Standard GraduationSmall 13 0 13Medium 7 2 9Large 2 8 10Total 22 10 32 17.31 chi-square 2 df 0.0002 p-valueHere we will reject the null hypothesis since the p-value is less than the significance level(5%). P a g e | 13
  19. 19. Case 13: H0: Minimum experience of the chauffeurs is independent of company type.Chi-Square Contingency Table of Company Type & Minimum Experience of Chauffeurs 0 To 2 3 To 4 5 To 6 7 To 10 More Than 10 Total Years Years Years Years YearsSmall 0 8 5 0 0 13Medium 0 4 4 1 0 9Large 0 5 5 0 0 10Total 0 17 14 1 0 32Cannot calculate chi-square because one or more expected values = 0Here we cannot calculate chi-square since there is 0 value in two columns. So in order to getthe chi-square we are eliminating those columns which contains only 0 values. 3 To 4 Years 5 To 6 Years 7 To 10 Years TotalSmall 8 5 0 13Medium 4 4 1 9Large 5 5 0 10Total 17 14 1 32 3.05 chi-square 4 df 0.5498 p-valueHere we will accept the null hypothesis since the p-value is greater than the significance level(5%).Case 14: H0: Other parameters considered during hiring of chauffeurs are independent ofcompany type.Chi-Square Contingency Table of Company Type & Other Parameters Consider DuringHiring of Chauffeurs His Smoking, His His Familiarity To Total Drinking And Attitude Neatness Roads of The Chewing City HabitsSmall 9 8 5 12 34Medium 5 8 6 8 27Large 7 10 8 9 34Total 21 26 19 29 95 1.97 chi- square 6 df 0.9225 p-value P a g e | 14
  20. 20. Here we will accept the null hypothesis since the p-value is greater than the significance level(5%).Case 15: H0: Salary package is independent of company type.Chi-Square Contingency Table of Company Type & Salary Package of Chauffeurs Less than Rs. 5001 – Rs. 8001 – Greater Than Rs. Total Rs. 5000 Rs. 8000 Rs. 12000 12000Small 3 9 1 0 13Medium 0 5 4 0 9Large 0 8 2 0 10Total 3 22 7 0 32Cannot calculate chi-square because one or more expected values = 0Here we cannot calculate Chi-square since there is 0 value in one column. So in order to getthe Chi-Square we are eliminating the column that contains 0 values. Less than Rs. 5000 Rs. 5001 – Rs. 8000 Rs. 8001 – Rs. 12000 TotalSmall 3 9 1 13Medium 0 5 4 9Large 0 8 2 10Total 3 22 7 32 8.10 chi-square 4 df 0.0878 p-valueHere we will accept the null hypothesis since the p value is greater than the significance level(5%).Case 16: H0: Booking process is independent of company type.Chi-Square Contingency Table of Company Type & Booking Process of The Company Telephone Email Online Fax Travel Agents TotalSmall 12 8 5 2 8 35Medium 8 9 6 2 9 34Large 10 10 8 0 9 37Total 30 27 19 4 26 106 3.66 chi-square 8 df 0.8863 p-valueHere we will accept the null hypothesis since the p value is greater than the significance level(5%). P a g e | 15
  21. 21. Case 17: H0: Payment mode for customers is independent of company type.Chi-Square Contingency Table of Company Type & Payment Mode For Customers Cash Cheques/Drafts Online Payments(NEFT/RTGS) Credit Cards TotalSmall 13 13 4 0 30Medium 9 9 9 3 30Large 8 10 7 3 28Total 30 32 20 6 88 6.93 chi-square 6 df 0.3275 p-valueHere we will accept the null hypothesis since the p value is greater than the significance level(5%).Case 18: H0: Credit period given to customers is independent of company type.Chi-Square Contingency Table of Company Type & Credit Period of Customer 0-15 Days 16-30 Days 31-45 Days TotalSmall 5 7 1 13Medium 1 7 1 9Large 1 6 3 10Total 7 20 5 32 5.22 chi-square 4 df 0.2653 p-valueHere we will accept the null hypothesis since the p value is greater than the significance level(5%).Case 19.1: H0: Impact score of fleet is independent of company type. ANOVA Table of Company Type &Impact Score of Fleet Mean n Std. Dev. 4.7 13 1.75 Small Companies 3.6 9 1.33 Medium Companies 3.6 10 1.58 Large Companies 4.0 32 1.64 TotalSource SS df MS F p-valueTreatment 9.58 2 4.789 1.89 0.1689Error 73.39 29 2.531Total 82.97 31 P a g e | 16
  22. 22. Fig. Company Type & Impact Score of Fleet (Comparison of Groups)8.07.06.05.04.03.02.01.00.0 Small Companies Medium Companies Large CompaniesHere we will accept the null hypothesis since the p value is greater than the significance level(5%).Case 19.2: H0: Impact score of pricing is independent of company type. ANOVA Table of Company Type &Impact Score of Pricing Mean n Std. Dev. 2.5 13 1.13 Small Companies 3.1 9 1.17 Medium Companies 2.9 10 1.20 Large Companies 2.8 32 1.15 TotalSource SS df MS F p-valueTreatment 1.86 2 0.928 0.69 0.5099Error 39.02 29 1.346Total 40.88 31 Fig. Company Type & Impact Score of Pricing (Comparison of Groups) 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Small Companies Medium Companies Large Companies P a g e | 17
  23. 23. Here we will accept the null hypothesis since the p value is greater than the significance level(5%).Case 19.3: H0: Impact score of garages is independent of company type. ANOVA Table of Company Type &Impact Score of Pricing Mean n Std. Dev. 1.6 13 1.04 Small Companies 1.6 9 1.01 Medium Companies 1.3 10 0.67 Large Companies 1.5 32 0.92 TotalSource SS df MS F p-valueTreatment 0.60 2 0.300 0.34 0.7125Error 25.40 29 0.876Total 26.00 31 Fig. Company Type & Impact Score of Garages (Comparison of Groups) 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Small Companies Medium Companies Large CompaniesHere we will accept the null hypothesis since the p value is greater than the significance level(5%). P a g e | 18
  24. 24. Case 19.4: H0: Impact score of services is independent of company type. ANOVA Table of Company Type &Impact Score of Services Mean n Std. Dev. 6.5 13 0.97 Small Companies 6.6 9 0.53 Medium Companies 6.7 10 0.48 Large Companies 6.6 32 0.72 TotalSource SS df MS F p-valueTreatment 0.32 2 0.161 0.30 0.7429Error 15.55 29 0.536Total 15.88 31 Fig. Company Type & Impact Score of Services (Comparison of Groups)7.57.06.56.05.55.04.54.03.53.0 Small Companies Medium Companies Large CompaniesHere we will accept the null hypothesis since the p value is greater than the significance level(5%).Case 19.5: H0: Impact score of chauffeurs is independent of company type. ANOVA Table of Company Type & Impact Score of Chauffeurs Mean n Std. Dev. 4.2 13 1.48 Small Companies 2.8 9 1.20 Medium Companies 4.1 10 1.85 Large Companies 3.8 32 1.62 Total P a g e | 19
  25. 25. Source SS df MS F p-value Treatment 12.71 2 6.353 2.68 0.0856 Error 68.76 29 2.371 Total 81.47 31 Fig. Company Type & Impact Score of Chauffeurs (Comparison of Groups)8.07.06.05.04.03.02.01.00.0 Small Companies Medium Companies Large Companies Here we will accept the null hypothesis since the p value is greater than the significance level (5%). Case 19.6: H0: Impact score of business process is independent of company type. ANOVA Table of Company Type & Impact Score of Business Process Mean n Std. Dev. 3.7 13 1.49 Small Companies 4.1 9 1.45 Medium Companies 3.8 10 1.23 Large Companies 3.8 32 1.37 Total Source SS df MS F p-value Treatment 0.96 2 0.480 0.24 0.7856 Error 57.26 29 1.974 Total 58.22 31 P a g e | 20
  26. 26. Fig. Company Type & Impact Score of Business Process (Comparison of Groups) 7.0 6.0 5.0 4.0 3.0 2.0 1.0 Small Companies Medium Companies Large CompaniesHere we will accept the null hypothesis since the p value is greater than the significance level(5%).Case 19.7: H0: Impact score of customer relationship is independent of company type. ANOVA Table of Company Type & Impact Score of Customer Relationship Mean n Std. Dev. 4.7 13 1.93 Small Companies 6.3 9 0.71 Medium Companies 5.5 10 1.18 Large Companies 5.4 32 1.56 Total p-Source SS df MS F valueTreatment 14.45 2 7.225 3.42 0.0464Error 61.27 29 2.113Total 75.72 31Post hoc analysis p-values for pair wise t-tests Small Companies Large Companies Medium Companies 4.7 5.5 6.3Small Companies 4.7Large Companies 5.5 .1968Medium Companies 6.3 .0144 .2221 P a g e | 21
  27. 27. Tukey simultaneous comparison t-values (df. = 29) Small Companies Large Companies Medium Companies 4.7 5.5 6.3Small Companies 4.7Large Companies 5.5 1.32Medium Companies 6.3 2.60 1.25 critical values for experiment wise error rate: Fig. Company Type & Impact Score2.48 0.05 of Customer Relationship 0.01(Comparison of Groups) 3.16 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Small Companies Medium Companies Large CompaniesHere we will reject the null hypothesis since the p value is greater than the significance level(5%). P a g e | 22
  28. 28. Summary of The Primary ResearchCase 1: Servicing time period is independent of company type.Case 2: Maximum no. of years that a particular car is used is dependent of company type.Case 3: Type of service (i.e. on call, call center pick and drop, airport and station pick and dropetc.) is independent of company type.Case 4: Accessories supplied to the car during service is independent of company type.Case 5: Car Chauffeurs Ratio is independent of company type.Case 6: Payroll process to chauffeurs is independent of company type.Case 7: Hiring Process of chauffeurs is independent of company type.Case 8: Training process of chauffeurs is independent of company type.Case 9: Type of training (i.e. defensive driving, soft skill, motor repairing etc.) to chauffeurs isindependent of company type.Case 10: Regulation to maintain uniform for chauffeurs dependent of company type.Case 11: Chauffeurs ability to communicate in English is dependent of company type.Case 12: Minimum educational qualification for chauffeur’s dependent of company type.Case 13: Minimum work experience required for chauffeurs is independent of company type.Case 14: Other parameters (i.e. smoking and drinking habits, attitude, familiarity to roads etc.)considered during hiring of a chauffeurs is independent of company type.Case 15: Salary package is independent of company type.Case 16: Booking process is independent of company type.Case 17: Payment mode is independent of company type.Case 18: Credit period given to customers is independent of company type.Case 19: 19.1: Impact score of fleet is independent of company type. 19.2: Impact score of pricing is independent of company type. 19.3: Impact score of garages is independent of company type. P a g e | 23
  29. 29. 19.4: Impact score of services is independent of company type.19.5: Impact score of chauffeurs is independent of company type.19.6: Impact score of business process is independent of company type.19.7: Impact score of customer relationship is dependent of company type. P a g e | 24
  30. 30. Findings of Primary Research 1) Any company irrespective of its type cannot ignore the importance of servicing of its cars. 56.25% companies service their cars in between 3 to 4 months. So we can take this as an industry benchmark. 2) According to our research the maximum usage of car is dependent on company size (p= 0.0050). Our research shows that 70% of the large companies are using a car for 3 to 4 years. So if we take this as benchmark for large car. 3) Most of the car rental companies are operating into on call service and Airport and Station pick & drop segment. Leased car market and self-driven car market is mostly untouched by present players. 4) A standard car rental company provides English Daily Newspaper, Magazines, Mineral water, First Aid Box, Seat Belts, cell phones for chauffeurs etc. So we can take this as an industry benchmark. 5) Car Chauffeurs ratio signifies the no. of chauffeurs allotted for a particular car. Our study reveals that Car Chauffeurs Ratio is independent of company type. This industry has the mean Car Chauffeurs Ratio of 0.94736, which signifies 1.05 no. of chauffeurs are allotted to a particular car. So, we can take this an industry benchmark. 6) Our study reveals that payroll process of chauffeurs is independent of company type. Chauffeurs are in direct payroll in 59.3% car rental companies and 40.7% car rental companies pay their chauffeurs through agencies. Some of these companies are flexible and pay their chauffeurs directly and during huge requirements they hire chauffeurs from agencies and pay them through agencies. 7) Our study reveals that hiring process of chauffeurs is independent of company type. This industry has the trend of hiring chauffeurs through their own selection process (62.5% of companies do that) and as well as from agencies (53.2% of companies do that). Some of these companies are flexible and hire their chauffeurs directly and during huge requirements they hire chauffeurs from agencies. 8) Our study reveals that training process of chauffeurs is independent of company type. In this industry, chauffeurs are properly trained as 43.75% companies train its chauffeurs itself and training is outsourced by 56.25%. Some of these companies are flexible and train their chauffeurs directly and during huge requirements they train chauffeurs from agencies. 9) Our study reveals that type of training given to chauffeurs is independent of company type. This industry gives more emphasis on training their chauffeurs in defensive driving, soft skills and etiquette. So we can take this as an industry benchmark. 10)Regulation to maintain uniform for chauffeurs is dependent of company type (p= 0.0132). All the large companies have the regulation to maintain uniform for chauffeurs. So we can take this as benchmark for large companies. P a g e | 25
  31. 31. 11)Chauffeurs’ ability to communicate in English considered during hiring is dependent of company type (p= 0.0001). 80% of large companies hire chauffeurs who can communicate in English. So we can take this as benchmark for large companies.12)Our study reveals that minimum educational qualification of chauffeurs is dependent of company type (p= 0.0002). 68.75% car rental companies in this industry are looking for minimum educational qualification of 10th standard for chauffeurs before hiring. But 80% large car rental companies are looking for minimum educational qualification of 12th standard. So we can take this as benchmark for large companies.13)Our study reveals that minimum work experience of chauffeurs required for hiring is independent of company type. 53.12% of the companies hire chauffeurs with 3-4 years of experience, while 43.75% companies hire chauffeurs with 5-6 years of experience. So 3-4 years of work experience can be taken as a benchmark for the industry.14)Our study reveals that other parameters like smoking, chewing and drinking habits of chauffeurs, their neatness, their attitude and familiarity to roads of the city considered during hiring is independent of company type. This industry gives proper importance of all these additional parameters.15)Salary package of chauffeurs is independent of company type. 68.75% car rental companies provide salary in the range of Rs. 5001-Rs. 8000.16)Booking process in this industry is independent of company type. Telephone is mostly accepted medium of booking followed by email, travel agents and online. Fax is used rarely.17)Mode of accepting payments from customers is independent of company type in this car rental industry. Cheque/Draft is mostly accepted mode of payments followed by cash, and online transfer (NEFT/RTGS). Credit cards are used rarely.18)Credit period given to customers is independent of company type. 62.5% car rental companies provides credit period of 16-30 days. So we can take this as industry benchmark.19)A. Impact scores of fleet, pricing, garages, services, chauffeurs, business process are independent of company type. Our study reveals that Service is the most important parameter that impacts businesses of car rental companies in this industry. It is followed by fleet, business process, chauffeurs, pricing and garages. So, we will recommend Ruia to give proper emphasis on these parameters. P a g e | 26
  32. 32. Average Impact Score(On A Scale of 7)Business Process 3.84375 Chauffeurs 3.78125 Services 6.5625 Garages 1.5 Pricing 2.8125 Fleet 4.03125 0 1 2 3 4 5 6 7 B. Customer relationship is dependent of company type (p= 0.0464). While in this industry, customer relationship is having a mean impact score of 5.4 out of 7, small companies are less impacted by customer relationship (mean impact score of 4.7 out of 7) and medium companies are hugely impacted by customer relationship (mean impact score of 6.3 out of 7). Large companies are maintaining industry average impact score. P a g e | 27
  33. 33. Ruia Car Rentals In The Light of Porter’s Five ForcesCompetitive Rivalry: HighThere is a substantial amount of competitors like ITC Travel House, Avis, Orix, NTL, InfinityEnterprise, Kolkata Cabs, Grewal Enterprise, Lemon, Infinity, Gujral, Lopon, Pearl, Savaari,Autoriders etc. operating within the Rental industry in Kolkata. The fight for consumer marketshare has forced these companies to differentiate themselves through price and their level ofcustomer service. Unfortunately, because the intensity of this industry is so high, manycompeting companies offer similar prices, features and benefits to consumers. As a resultcompanies lose potential profits as they compete in price-wars to gain consumer marketshare. Per Hr. Rate(in INR)*Cars (A.C.) Kolkata Grewal Gujral Lopon Pearl Lemon Autoriders CabsTata Sumo 140 120 100Tata Indica 90 95 120 100Tata Indigo 130 130 130 140 125 125Maruti Suzuki Swift 140 165 140 130 150 155 155DzireMahindra Scorpio 140 140 150 165Chevrolet Tavera 130 140 140 155Ford Fiesta 180 180Honda City 250 250 260 210 300 230Hyundai New Verna 300 300Toyota Innova 160 200 180 180 220 190 185Toyota Fortuner 500 520 525Toyota Camry 600 700 640Mercedes E 320 850 900 1200 1200 1200 720 1100BMW Series 5 1200 1600 1500 1200 *Data collected from websites of respective companies.Threat of New Entrants: LowTo start a rental service company, an individual needs to have an extensive amount offinancial resources. The likelihood of achieving profitability in a highly competitive industryserves as a barrier for new entrants.Threat of Substitutes: HighThere are a lot of competitors within the Car Rental industry. This has caused consumers toview the products and services offered by car rental service companies as commoditiesbecause of their similar features and prices. Corporate customer can have their own fleet to P a g e | 28
  34. 34. meet their requirements or consumers can also utilize public transport like train, bus or semi-public transport like taxi, shuttle services etc.Bargaining Power of Buyers: HighRuia Car Rentals operates on premium car rental segment and all of its clients are fromcorporate. Their clients have huge financial strength to create their own fleet to meet theirrequirements. Presence of lot car rental service providers has also given high bargainingpower to buyers of car rental services.Bargaining Power of Suppliers: LowIf Ruia Car Rentals feels that the price bracket of a particular brand of cars is too high whichmight cut down the revenue, they might avoid buying cars of that brand. So, bargaining powerof suppliers is low. P a g e | 29
  35. 35. SWOT Matrix For Ruia Car RentalsOne of the objectives of this project is to develop a SWOT matrix for Ruia Car Rentals based onprimary and secondary research.Strengths: 1. Large Fleet: In car rental industry service quality can be kept high only if a company has its own cars. The primary research reveals Ruia Car Rentals has the largest fleet of self-owned cars in Kolkata. Self-owned Cars NTL 15 Grewal 38 Lemon 40 Savaari Car Rental 45 IB Cabs 45 Self-owned Cars Pearl 55 Gujral 70 Lopon Car rental 80 Megacabs 100 Ruia Car Rentals 117 0 20 40 60 80 100 120 2. Service Quality Standards: One of the objectives of this primary research was to set some industry benchmark on service quality standards and compare Ruia Car Rentals with that benchmark. A detailed comparison about the same is given below: P a g e | 30
  36. 36. Service Quality Quality Standards of Ruia Car Rentals CommentsComponents The Industry / Large Companies *How frequently cars 3-4 months 2- 3 months Better than theare serviced industryMaximum no. of years 3-4 years 2 years Better than thea car is used industryAccessories kept in 1. Daily English news 1. Daily English news At par with thecars during service paper paper industryduty 2. Magazines 2. Magazines 3. Mineral water 3. Mineral water 4. First aid box 4. First aid box 5. Seat belts 5. Seat belts 6. Cell phones to 6. Cell phones to chauffeurs chauffeurs 7. Others 7. Tissue papersCar Chauffeurs Ratio 0.947 (1.05 no. of 1.23 (0.81no. of Below the chauffeurs per car) chauffeurs per car) industry standardsPayroll process of 1. Direct payroll 1. Direct payroll Quality will varychauffeurs 2. Security agencies with requirementsHiring process of 1. Own selection 1. Own selection Quality will varychauffeurs process process with 2. Security agencies requirementsTraining process of 1. Own selection 1. Own selection Quality will varychauffeurs process process with 2. Outsourcing requirementsType of training to 1. Defensive training 1. Defensive training Better than thechauffeurs 2. Soft skill 2. Soft skill industry 3. Etiquette 3. Etiquette 4. Disaster managementRegulation to maintain Yes Yes At par with theuniform for chauffeurs industryIs during hiring of Yes Yes At par with thechauffeurs, his ability standard of largeto communicate in companies andEnglish considered better than the industry P a g e | 31
  37. 37. Service Quality Quality Standards of Ruia Car Rentals CommentsComponents The Industry / Large Companies *Minimum educational 12th Standard 12th Standard At par with thequalification required standard of largefor chauffeurs companies and better than the industryMinimum work 3-4 years 6-7 years Better than theexperience required industryfor chauffeursOther parameters 1. Smoking, drinking 1. Smoking, drinking At par with theconsidered during and chewing habits and chewing habits industryhiring 2. Neatness 2. Neatness 3. Attitude 3. Attitude 4. Familiarity to roads 4. Familiarity to roads of the city of the citySalary package of Rs. 5001-8000 Depends upon Datachauffeurs company and security insufficiency agenciesBooking process (in 1. Telephone 1. Telephone At par with theorder of frequently 2. E-mail 2. E-mail industryused to least used) 3. Travel Agents 3. Travel Agents 4. OnlineMode of payments for 1. Cheque/Draft 4. Cheque/Draft At par with thecustomers (in order of 2. Cash 5. Cash industryfrequently used to 3. NEFT/RTGS 6. NEFT/RTGSleast used)Credit period given to 16-30 days 16-30 days At par with thecustomers industry*Please refer Finding of Primary Research section for any clarificationsSo we can see that Ruia Car Rentals is either better or at par with the industry in most of theservice quality standards. 3. Long list of corporate clients: Due to its presence of 16 long years in the industry, Ruia Car Rental today is doing business with almost 330 satisfied corporate clients. To name a few Reserve Bank of India, UNICEF, Samsung, LG, Rediff, ABB, Shell India, Bluestar, Cipla, Ranbaxy, Dr.Reddys Lab, Pfizer, Mearks India, Dabur, Emami, Times Of India group, Caterpillar India, Appejay Group, SREI Group, Essar Group, HDFC Bank, United bank of India, UCO Bank, Reliance Industries, Indian Oil Corporation, Lafarge, GlaxoSmithKline, ESAB India and many more. P a g e | 32
  38. 38. Weaknesses: 1. Low visibility on web: In today’s business world, it is very important to be visible in the internet; mere presence in the web world will not meet the organization’s objectives. For example, a person from New Delhi seeking a car rental service in Kolkata will obviously go to internet and search for car rental service providers in Kolkata. If search engine do not show the page of Ruia Car Rentals then the ultimate aim of creating a web site is totally useless. The Secondary research is showing Ruia Car Rentals’ visibility on internet is very low. P a g e | 33
  39. 39. 2. No presence of garage in Salt Lake/ Rajarhat: Ruia Car Rentals has two garages in the city but it does not have any garage in Salt Lake or Rajarhat Areas. As a result, company has to charge more to some of its clients whose offices are in Salt Lake Sector V. Because billing is done on garage in and garage out basis in this industry. It is also creating barriers to developing new clients. Company Names Garage Locations In Kolkata* Kolkata Cabs Bhawanipore NTL Salt Lake Grewal Enterprise Bhawanipore Orix Auto Infrastructure Salt Lake Gujral Park Street, Ballygaunj Pearl Bhawanipore Lopon Garcha 1st Lane *Information collected from primary research 3. Pan India Operations: Ruia Car Rentals has their own fleet in Kolkata and Delhi and operates in Pan India basis through their associates in other cities. So, maintaining high service quality standards in other cities except Kolkata and Delhi is a big issue. This might hamper Ruia’s brand equity. 4. Declined Net Profit: Though car rental income is increasing over last four years but net profit margin has decreased hugely. For detailed clarification refer Ratio Analysis of Comparative Financial Analysis section.Opportunities: 1. Boom of Travel and Tourism Industry: According to the World Tourism Organization, by the year 2020, it is expected that India will become the leader in the tourism industry in South Asia, with about 8.9 million arrivals. Of late the Indian tourism economy has been deemed as the second-most rapidly increasing (8.8 %) tourism economy in the world, by World Travel and Tourism. The RNCOS-formulated report titled "Indian Tourism Industry Forecast (2007- 2011)” which reveals following findings: P a g e | 34
  40. 40. Year Foreign Exchange Earning From Tourism (in INR Crores) % Change Over Previous Year2000 15626 20.72001 15083 -3.52002 15064 -0.12003 20729 37.62004 27944 34.82005 33123 18.52006 39025 17.82007 44360 13.72008 51294 15.62009 54960 7.12010 64889 18.12011 35163 12.1Year No. of Domestic Tourist Visits (in million) to States / % change over the previous Union Territories year2000 220.11 15.42001 236.47 7.42002 269.6 142003 309.04 14.62004 366.27 18.52005 391.95 72006 462.31 182007 526.43 13.92008 563.03 72009 668.8 18.82010 740.21 10.7 2. Government policy about Travel & Tourism: a. Many states such as Tamil Nadu, Kerala, Uttar Pradesh, West Bengal, Arunachal Pradesh, Uttarakhand, and UTs of Daman & Diu, Dadar & Nagar Haveli have already granted ‘Industry Status’ to tourism. It is proposed that tourism should be included in Schedule 1 of the Industries Development Act 1951. b. Under Section 80 IA of the Income tax Act, 1961, similar to airports, seaports and railways, all new hotel projects can avail the benefit of 100% deductions with respect to profits and gains, for a period of 10 years. This is expected to boost investments in this sector. Section 80 HHD of the Income Tax Act 1961, which was discontinued after 2005-06, to be revived and ‘Export Industry Status’ to be conferred to this industry so that it can claim deductions on foreign exchange earnings. This would boost growth. P a g e | 35
  41. 41. c. According to a WTTC report, India’s travel and tourism industry will directly contribute INR 3,345 billion (USD 61 billion) to the GDP by 2019, allowing 100% foreign direct investment in hotel infrastructure development. This will prove to be a major growth driver for the industry.Threats: 1. Intense competition: Presently Ruia Car Rental is facing intense competition from brand, product and generic competitors. A. Brand competitors: ITC Travel House, Orix Auto Infrastructure, Avis B. Product competitors: Grewal, Gujral, Lemon, NTL, Lopon, Pearl C. Generic competitors: Kolkata Cabs, Mega Cabs 2. Inflation rate 3. Increasing fuel price P a g e | 36
  42. 42. Comparative Financial AnalysisRatio Analysis1. Current Ratio: It gives us an idea about the capability of the company to pay off its short term liabilities and obligations.Current Ratios 2008 2009 2010 2011Ruia 1.07 1.02 0.63 0.15ITH 1.87 1.64 1.72 1.75Avis 1.19 1.43 1.76 1.06 Current Ratios 2.00 1.87 1.72 1.76 1.75 1.80 1.64 1.60 1.43 1.40 1.19 1.20 1.07 1.02 1.06 Ruia 1.00 ITH 0.80 0.63 Avis 0.60 0.40 0.15 0.20 0.00 2008 2009 2010 2011 1. In the year 2010, Cash & Bank Balance has decreased by 60.80% and Loans & Advances has decreased by 26.05%. Due to these, Total Current Assets has decreased by 33.71%. At the same time company’s Loan has increased by 45.26%. Due to this, Total Current Liabilities has increased by 6.95%. These are the reasons why Current Ratio of Ruia Car Rentals has decreased hugely to 0.63 in the year 2010 from 1.02 in the year 2009. 2. In the year 2011, company’s Loan has increased by 522.74%. Due to this, Total Current Liabilities has increased by 156.19%. At the same time, Cash & Bank Balance has decreased by 60.91% and Loans & Advances has decreased by 100%. Due to these, Total Current Assets has decreased by 39.45%. These are the reasons why Current Ratio of Ruia Car Rentals has decreased hugely to 0.15 in the year 2011 from 0.63 in the year 2010. P a g e | 37
  43. 43. Current Ratio of Ruia Car rentals has decreased gradually throughout the 4 years and it is lessthan Avis and ITC Travel House. On the other hand Current Ratios of ITH and Avis are stablecompared to Ruia Car Rentals and up to the standard that a bank will look for before givingloans to the company. It will make tough for Ruia Car Rentals to apply for loans as banks willbe looking for current ratio of 1.33.2. Cash Assets Ratio: It measures the company’s ability to pay its short term obligations. It is the strictest measure of company’s liquidity position.Cash Assets Ratio 2008 2009 2010 2011Ruia 0.19 0.22 0.08 0.01ITH 0.20 0.15 0.11 0.11Avis 0.28 0.37 0.98 0.36 Cash Assets Ratios 0.98 1 0.8 Ruia 0.6 0.37 0.36 ITH 0.4 0.28 Avis 0.19 0.2 0.22 0.15 0.2 0.08 0.11 0.11 0.01 0 2008 2009 2010 2011 1. In the year 2009, Cash & Bank Balances has increased by 12.49% but Current Liabilities has decreased by 2.32%. This is the reason why Cash Assets Ratio has increased from 0.19 in the year 2008 to 0.22 in the year 2009. 2. In the year 2010, Cash & Bank Balances has decreased by 60.8% but in respect to that Current Liabilities has increased by 6.95%. This is the reason why Cash To Total Assets Ratio has decreased from 0.22 in the year 2009 to 0.08 in the year 2010. 3. In the year 2011, Cash & Bank Balances has again decreased by 60.91% but Current Liabilities has increased by 156.19%. This is the reason why Cash Assets Ratio has again decreased from 0.09 in the year 2010 to 0.01 in the year 2011.On the other hand Cash Assets Ratio of ITH is decreasing gradually throughout 4 years, andfor Avis it has increased in the period of 2008-2010 but it has decreased in 2011. Presently,Ruia Car Rentals’ Cash Assets Ratio is less than ITH and Avis, which is signifying low degree ofsafety from a creditors viewpoint. P a g e | 38
  44. 44. 3. Debt To Equity Ratio: It gives us the idea about the amount of Debt a company is having compared to its Equity. Higher Debt To Equity signifies the risk arising from the use of debt capital as the company has to pay its Debt first.Debt To Equity Ratio 2008 2009 2010 2011Ruia 13.92 59.49 NA 7.50ITH 0.15 0.08 0.03 0.01Avis 110.90 38.54 21.91 26.83 Debt To Equity Ratios 120.00 110.90 100.00 80.00 Ruia 59.49 60.00 ITH 38.54 Avis 40.00 26.83 21.91 20.00 13.92 7.50 0.15 0.08 0.00 0.03 0.01 0.00 2008 2009 2010 2011 1. In the year 2009, Equity has decreased by 77.14% whereas total debt has decreased by only 2.32%. This is the reason why Debt To Equity Ratio of Ruia Car Rentals has increased from 13.92 in the year 2008 to 59.49 in the year 2009. 2. In the year 2010, Ruia Car Rentals encountered only 0.07% net profit growth but its drawings increased by 9.80%. Due to this huge Drawings Ruia’s equity has decreased by 692.77%. But in the year 2011 the company has introduced fresh capital which has increased Equity by 466.59%. In comparison to that debt has only increased by 156.19%. As a result Debt To Equity Ratio had come down to 8.50 in the year 2011.In case of ITH, the Equity has increased as the company has issued more and more share andit has paid off its Debt. As a result Debt To Equity Ratio of ITH is very low. In case of Avis,Equity of the company has increased but not as much as the Debt as a result the ratio hascontinued to be high. Debt To Equity ratio of Ruia is higher than ITC Travel House throughoutthe 4 years and less than Avis in most of the years. So it indicates high risk. P a g e | 39
  45. 45. 4. Debt To Total Asset Ratio: It gives us an idea about how much of the asset is funded by debt.Debt To Total Asset Ratios 2008 2009 2010 2011Ruia 0.93 0.98 1.10 0.88ITH 0.12 0.07 0.02 0.01Avis 0.91 0.85 0.87 0.85 Debt To Total Asset Ratios 1.20 1.10 0.98 0.93 0.91 1.00 0.87 0.88 0.85 0.85 0.80 Ruia 0.60 ITH Avis 0.40 0.20 0.12 0.07 0.02 0.01 0.00 2008 2009 2010 2011 1. In the year 2009, Total Assets has decreased by 7.34% whereas Debt has also decreased by only 2.32%. This is the reason why Debt To Total Asset Ratio of Ruia Car Rentals has increased marginally from 0.93 in the year 2008 to 0.98 in the year 2009. 2. In the year 2010, Debt of Ruia Car Rentals has increased by 6.95% but Total Assets has decreased by 4.62%. As a result Debt To Total Asset Ratio had come up to 1.10 in the year 2010from 0.98 in the year 2009. 3. In the year 2011, Debt of Ruia Car Rentals has increased by 156.19% but Total Assets has increased by 220.18%. As a result Debt To Total Asset Ratio had gone down to 0.88 in the year 2011.In case of ITC company’s maximum assets are funded by its Equity. It has a very small amountof Debt, so Debt to Total Asset Ratio is also very low. Since Ruia is a proprietorship businessits amount of capital is less and most of its assets are funded by debts. So its Debt to assetratio is high. Like Ruia Avis is also having high amount of Debt to fund its assets, and compareto its Equity, Debt is very high so its Debt to Asset ratio is also very high. Debt To Asset ratio ofRuia Car Rental is fluctuating. It has increased in the year 2009 and 2010 but has decreased in2011, which is a positive thing for the company though it has been higher than ITC TravelHouse and at par with Avis. P a g e | 40
  46. 46. 5. Cash Turnover Ratio: It reflects the companys ability to finance current operations, the efficiency of its working capital employment, and the margin of protection for its creditors. A high cash turnover ratio may leave the company vulnerable to creditors, while a low ratio may indicate an inefficient use of working capital. In general, sales five to six times greater than working capital are needed to maintain a positive cash flow and finance sales.Cash Turnover Ratio 2008 2009 2010 2011Ruia 24.92 114.49 -5.93 -1.52ITH 2.16 5.18 3.03 3.67Avis 34.37 8.97 7.31 71.95Particulars % Increased In 2009 % Increased In 2010 % Increased In 2011Sales -4.59% 35.96% 50.87%Working Capital -79.24% -2725.02% 488.12% Cash Turnover Ratios 114.49 120.00 100.00 80.00 71.95 Ruia 60.00 ITH 34.37 Avis 40.00 24.92 20.00 5.18 8.97 7.31 2.16 -5.93 3.03 -1.52 3.67 0.00 2008 2009 2010 2011 -20.00 1. In the year 2009, Sales has decreased by 4.59% but Working Capital has decreased by 79.24%. As a result Cash Turnover Ratio has increased from 24.92 in the year 2008 to 114.49 in the year 2009. 2. In the year 2010, Sales has increased by 35.96% but Working Capital has decreased by 2725.02%. This is due to huge drawings. Company’s working capital became negative. As a result Cash Turnover Ratio has decreased from 114.49 in the year 2009 to -5.93 in the year 2010. 3. In the year 2011, fresh capital was induced which gave 488.12% hike in working capital but its working capital was still in negative figures. Increase in Sales of 50.87% has improved the situation. P a g e | 41
  47. 47. 6. Interest Coverage Ratio: It gives us an idea about how many times the company can pay off its interest through its profit before interest and taxes.Interest Coverage Ratio 2008 2009 2010 2011Ruia 7.01 4.68 3.56 1.78ITH 12.50 12.03 1.53 1.56Avis -1.98 0.83 1.15 1.07 Interest Coverage Ratio 14.00 12.50 12.03 12.00 10.00 8.00 7.01 Ruia ITH 6.00 4.68 3.56 Avis 4.00 1.53 1.15 1.78 1.56 2.00 0.83 1.07 0.00 2008 2009 2010 2011 -2.00 -1.98 As On 31st March As On 31st March Increase / DecreaseParticulars 2008 2009 (%)Bank Charges &Interest Rs. 5,96,253.34 Rs. 11,24,164.42 88.54%Rates & Taxes Rs. 0.00 Rs. 53,232.00 UndefinedInterest On Car Loan Rs. 0.00 Rs. 0.00 UndefinedInterest Rs. 5,96,253.34 Rs. 11,77,396.42 97.47%Net Profit Transferred Rs. 35,84,464.74 Rs. 43,28,891.20 20.77%PBIT Rs. 41,80,718.08 Rs. 55,06,287.62 31.71%In the year 2009, Interest paid by Ruia Car Rentals has increased by 97.47% but PBIT has onlyincreased by 31.71%. As a result Interest Coverage Ratio has decreased from 7.01 in the year2008 to 4.68 in the year 2009. P a g e | 42
  48. 48. As On 31st March As On 31st March Increase / DecreaseParticulars 2009 2010 (%)Bank Charges &Interest Rs. 11,24,164.42 Rs. 14,50,490.49 29.03%Rates & Taxes Rs. 53,232.00 Rs. 1,04,377.00 96.08%Interest On Car Loan Rs. 0.00 Rs. 1,32,556.84 UndefinedInterest Rs. 11,77,396.42 Rs. 16,87,424.33 43.32%Net Profit Transferred Rs. 43,28,891.20 Rs. 43,31,983.41 0.07%PBIT Rs. 55,06,287.62 Rs. 60,19,407.74 9.32%In the year 2010, Interest paid by Ruia Car Rentals has increased by 43.32% but PBIT has onlyincreased by 9.32%. As a result Interest Coverage Ratio has again decreased from 4.68 in theyear 2009 to 3.56 in the year 2010. As On 31st March As On 31st March Increase / DecreaseParticulars 2010 2011 (%)Bank Charges &Interest Rs. 14,50,490.49 Rs. 14,51,304.44 0%Rates & Taxes Rs. 1,04,377.00 Rs. 0.00 -100%Interest On Car Loan Rs. 1,32,556.84 Rs. 10,58,826.99 699%Interest Rs. 16,87,424.33 Rs. 25,10,131.43 49%Net Profit Transferred Rs. 43,31,983.41 Rs. 19,55,848.40 -55%PBIT Rs. 60,19,407.74 Rs. 44,65,979.83 -26%In the year 2011, Interest paid by Ruia Car Rentals has increased by 49% and PBIT has onlydecreased by 26%. As a result Interest Coverage Ratio has again decreased from 3.56 in theyear 2010 to 1.78 in the year 2011.The Fixed assets have increased by 124%, 17358% and 808% during 2009, 2010 and 2011respectively and as the maximum assets of the company is funded by loans, the amount ofloans have increased with increased fixed assets from 2009 to 2010. As a result the amount ofinterest payable increased continuously. On the other hand the profit of the company has notincreased that much. In the year 2009 it has increased by 20% compared to 2008 and in theyear 2010 it has increased by only .07 % compared to 2009.In the year 2011 the profit of Ruiahas taken a dip, due to increasing operating expenses. It has decreased by 54% compared to2010. As a result interest coverage ratio has decreased that much.ITH’s the profit has increased over the years and the amount of interest was less in the year2008 and 2009 but it has increased a lot in the year 2010 and 2011. As a result interestcoverage ratio has decreased. In case of Avis interest coverage ratio is very low since as it ishaving negative profit, and the amount of loan of the company is high. P a g e | 43

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