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VOLUME 1 ISSUE 3 APR-JUNE 2016

VISHLESHAN INTERNATIONAL JOURNAL OF

ENGINEERING & MANAGEMENT

(VIJEM)

(AN OPEN ACCESS QUARTLY JOURNAL)

EDITOR-IN-CHIEF

SUNITA RAMCHANDANI

ASSOCIATE EDITOR

DEEPAK MOTWANI

PROMOTED BY

VISHLESHAN EDUCATIONAL & SOCIAL WELFARE SOCIETY

(VESWS) BHOPAL

CALL – 0755-4273272 (O)

E-mail: [email protected], [email protected]

Website: www.vijem.com

ISSN (ONLINE):

2455-524X

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Vishleshan International Journal of Engineering and Management (VIJEM) Volume 1, Issue 3 (Apr.-June, 2016)

ISSN (Online): 2455 – 524X Website: www.vijem.com Ph. (0755) 4273272 E-mail: [email protected]

Patron Prof. (Dr.) Anoop Swarup

Chairman, Global Knowledge Alliance, Melbourne, Australia Vice Chancellor, Jagran Lakecity University, Bhopal

Advisors

Dr. Ashish Dongre Director Technical Education, Government of M.P.

Chairman, Indian Society of Technical Education, M.P. & C.G. Formerly Vice Chancellor, RKDF University, Bhopal

Dr. Justin Paul

Associate Professor, University of Puerto Rico Ex. Prof. Indian Institute of Management (IIM), Indore

Editor-in-Chief

Ms. Sunita Ramchandani

Associate Editor Mr. Deepak Motwani



Editorial Board Members

Prof. (Dr.) C. M. Sadiwala

Principal, RKDF CTR, Bhopal

Ex. Prof. Maulana Azad National Institute of Technology (MANIT),

Bhopal

Prof. (Dr.) Atul Mehrotra

Director, School of Management (SoM)

Jagran Lakecity University, Bhopal

Prof. (Dr.) K. B. L. Shrivastava

Principal Vedica Institute of Technology,

Bhopal

Prof. (Dr.) Y. M. Dubey

Principal Vindhya Institute of Technology &

Science, Jabalpur

Dr. Tarun Kushwaha

Associate Professor Prestige Institute of Management &

Research (PIMR), Indore Ex. Associate Professor, Symbiosis

Institute of Business & Management (SIBM), Pune

Dr. Shilpa Jain

Assistant Professor Maulana Azad National Institute of

Technology (MANIT), Bhopal

Dr. Pooja Gupta

Assistant Professor School of Management (SoM)

Jagran Lakecity University, Bhopal

Dr. Geetanjali Nilesh Bendale

Ex. Research Analyst, Nielsen India Pvt. Ltd., Vikroli

Ex. Lectrurer Yadavrao Tasgaonkar Institute of Management Studies &

Research, Mumbai

Dr. Shikha Bhargava

Head of the Department - MBA Oriental College of Management,

Bhopal

Dr. Priyanka Nema

Assistant Professor School of Management (SoM)

Jagran Lakecity University, Bhopal Ex. Samsung C&T, Seoul South

Korea



Reviewer Committee Members

Dr. Ravindra Tiwari

Head of Department – MBA Patel Group of Institutions

Bhopal

Ms. Charu Modi

Lecturer, Bangalore International College

Bangalore

Mr. Lokesh Payasi Assistant Professor

Lakshmi Narain College of Technology – MBA

Bhopal

Mr. Bhuvanesh K. Sharma Assistant Professor

Balaji Institute of Modern Management

Sri Balaji Society, Pune

Mrs. Sakshi Kamdar Lecturer, School of Management

(SoM) Jagran Lakecity University,

Bhopal

Ms. Komal Taneja Assistant Professor,

Jeev Sewa Sansthan Group of Institutions for Women-

Faculty of Management, Bhopal

Mr. Amitesh Paul

Assistant Professor, RKDF University, Bhopal

Mr. Aditya Gupta

Assistant Professor, Vedica Institute of Technology,

Bhopal

Mr. S. K. Tiwari

Assistant Professor, RKDF University, Bhopal

Mr. Ranjit Nikose

Assistant Professor, Bhabha College of Engineering,

Bhopal



Message from Chief Editor’s Desk

Today, with emerging advancements in research & technology, entire world has got connected through boundary-less networks of knowledge and information. Vishleshan International Journal of Engineering and Management is an attempt to document relevant and practical research work in wide range of areas from various parts of the world in which any specific domain of these areas can be taken into consideration for research paper. Practical applicability of research and empirical findings are required to be the most important feature of each article/research paper to be published in the journal. The basic intent of this journal is to bring about revolutionary change in achieving professional and academic excellence through action and applied research approach.

We have tried to carefully put together range of research areas for the first issue and categorized specific articles/research papers in separate sections. I acknowledge the involvement of number of people whose contribution made this publication possible-Author who submitted articles/research papers, Distinguished Promoters, Managing Editor, Patrons, Advisors, and Members of Editorial Board, Members of Reviewer Committee.

We hope to be the first choice of top rated research work with high quality submissions, strategic review and the most invigorated Advisory Board.

Sunita Ramchandani



CONTENTS

S. No.

Title

Page No.

1

Tax Incentives And Growth of Cement Industry in India Punam Sachdeva, Dr. Hem Chand Jain

1-12

2

A Study on Affordable Construction (By Pet Bottles) Kratika Kumawat, Shraddha Sethiya, Parul Soni

13-17

3

A Brief Study on Data Mining Aayush Mehta, Akriti Saxena, Aishwarya Thanna

18-26

4

A Study on Working Capital Management in Public Enterprise Special Reference to GAIL (India) Ltd. Through Working Capital Leverage and Net Operating Cycle

Dr. Purnima Joshi

27-42

5

Hydrogen: As A Future Fuel Rohit Satidasani, Shubham Shrivastava, Sameer Hussain Pathan

43-49

6

Influence of Out of Stock Condition on Baby Diapers on Stores’ Loyalty,

Brand Loyalty and Product Category Loyalty

Dr. Geetanjali Nilesh Bendale, Deepak Motwani

50-58

7

Impact of Information Technology and Management Education on Today’s

Generation

Prof. Pooja Vaidya, Dr. G. Y. Pathrikar

59-66

Vishleshan-International Journal of Engineering and Management (VIJEM) Volume 1, Issue 3 (Apr.-June, 2016)

ISSN (Online): 2455 - 524X

Website: www.vijem.com Ph. (0755) 4273272 E-mail: [email protected]

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TAX INCENTIVES AND GROWTH OF CEMENT INDUSTRY IN INDIA

Punam Sachdeva*, Dr. Hem Chand Jain**

Associate Professor, Commerce, University of Delhi

Kalindi College*, Deen Dayal Upadhyaya College**

[email protected]*, [email protected]**

Abstract

Fiscal policy plays an important role by introducing suitable corporate tax incentives and

motivating industries to grow, to accord higher priority to certain industrial sectors in India.

Any tax incentive scheme of Government influences tax liability of companies, its financial

performance and amount of reserves and stimulates investment in companies. The present work

analysis attempts to know how corporate tax incentives influence growth of cement industry and

also to highlight their relationship. But in this study the industrial growth is measured in terms

of the growth of five financial variables only. These variables selected are profit after tax, gross

fixed assets, capital employed, reserves and surplus and shareholder’s equity which signify

industrial growth. During the period from the financial year 2005-2006 to 2014-2015 the data of

these variables is collected and compiled on average basis for selected companies. The results

of the data reveal that the values of the variables are increasing throughout the decade. This

trend is indicative of growth of cement companies during the period under review. A linear

regression analysis technique is also used in the study. This analysis explains the relationship

between tax incentives and the increase in values of selected financial variables annually. The

data analysis through ‘b’ co-efficient, standard error, ‘T’ value and R2 value is shown in the

tables. The results witness that these variables are significant contributors to the growth of the

industry. A size wise analysis of the companies also confirms favorable growth with varying

values. Corporate tax incentives have been an important element of fiscal system leading to a

positive impact on the growth of cement industry.

Keywords: Fiscal policy, Tax incentives, Tax burden, Linear regression analysis, Industrial

growth.




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Introduction

India ranks second in global cement industry. The demand of cement is growing at 8 per cent and

is expected to grow higher. Domestic consumption of cement in 2011 was 165.63 MT and likely

to reach 324 MT in 2015. The cement production is expected to reach 550 MT by 2020. The

demand of cement is growing in India and likely to reach 421 MT by the year 2017 due to

infrastructure investments in Government‟s XII Plan 2012-2017 amounting to US $ 1 trillion.

Further about 100 smart cities and infrastructure opportunities particularly in eastern states of

India will further boost its demand. Cement industry in India includes cement and its products,

cement sheets. There are approximately 81 actively listed public limited companies in cement

industry on Bombay Stock Exchange. This industry has generated numerous employment

opportunities for rural as well as urban workforce. There are many tax incentives available to

industries depending upon the nature of manufacturing activity and the eligibility norms. These

incentives are based either on the investment made or expenditure incurred. Sometimes

incentives are available as deduction from income from business or profession. But the nature

and quantum of incentives available at a particular time, nature of industry, period of benefit will

determine the effect on industrial growth. The various tax incentives available to industries are

depreciation allowance under Sec.32, and Sec.32AC provides for Investment allowance,

investment allowance in notified backward area in Andhra Pradesh, Bihar, Telangana and West

Bengal under Sec.32AD, deduction under Sec.35 for expenditure on scientific research,

amortization of preliminary expenses under Sec.35 D, the family planning expenditure under

Sec.36 (1)(ix) and many more.

Objective

Corporate tax incentives benefit the taxpayer companies in many ways. There may be a

reduction in the amount of tax payable, increase in the volume of fixed assets, capital

composition etc. Therefore every year corporate tax incentives are reviewed to give benefits to

industries for accelerating their growth. The objective of this article is to test empirically the

impact of corporate tax incentives on the growth of cement Industry. As corporate tax incidence




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reflects the benefits of tax incentives available to the industry, there is a need to study the

relationship between tax incentives and growth of cement industry in India.

Review of literature

The following researchers have made contributions on this subject:

In 1961 Ambirajan analyzed the evolution, structure and future prospects of corporate tax in

India. In 1971 Singh studied the provisions of depreciation of Income tax act with special

emphasis on corporate financial decisions. In 1980 Rao made some studies on the corporate tax

system and opined that corporate tax rate was the highest in India. In 1983 Vinay D. Lall made

some contributions on the subject of tax savings due to fiscal incentives granted to companies

and observed those companies large in size and some new companies availed significant

quantum of tax relief. In 1985 Dr. Devender Singh tested the hypothesis that corporate income

tax does not adversely affect the growth of industry. Some of the other researchers have also

reviewed the corporate tax structure in India. In 2004 Sarkar studied some issues related to tax

incentives in India and compared them with that of U.K., USA etc. and opined that the tax

incentive schemes had been successful in mobilizing savings and capital formation in India.

Methodology

The present study covers a period of ten years beginning from financial year 2005-2006 to 2014-

2015 with a sample of 20 selected companies of the cement industry. Tax incentives available to

companies are taken as independent variable affecting the growth of industry. Further the

dependent variables selected as indicative of industrial growth are profit after tax (PAT), gross

fixed assets (GFA), capital employed (CE), reserves and surplus (RES.&SUR), and

shareholder‟s equity (SH.EQ). The data of these variables is collected over a period of ten years.

The values of each variable for this period are compiled to observe their respective trend.

Besides this a statistical tool applied for data analysis is linear regression model to know the

relationship between tax incentives and dependent variables leading to Industrial growth. This

relationship will further highlight how corporate tax incentives influence the values of variables




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every year during the decade. For further analysis all the companies of cement Industry are

classified on the basis of their size as Large, Medium and Small as under:

1. Large: Companies with an investment in Fixed Assets Rs.25001 Millions and above.

2. Medium: Companies with an investment in Fixed Assets Rs.10001- to Rs.25000 Millions.

3. Small: Companies with an investment in Fixed Assets Rs.1001- to Rs.10000 Millions.

The explanation of variables selected is as follows:

1. PAT: Represents profits before tax after deduction of provision for direct taxes.

2. CE: Refers to total capital with reserve fund and borrowings.

3. GFA: Represents net fixed assets including cumulative depreciation, arrears, provision

for impairments less lease reserve adjustment.

4. RES.& SUR.: Refers to appropriation of profits meant for future contingencies.

5. SH.EQ.: Refers to equity of ordinary shareholders only.

Source of data

In this article data of twenty actively traded cement companies on Stock exchanges has been

selected and compiled from CMIE PROWESS database, CMIE (Centre for Monitoring Indian

Economy Pvt. Ltd.) Mumbai. The figures for the five selected variables have been obtained from

the financial data as appearing in the financial statements published in CMIE PROWESS

database. The database includes data sourced from the Stock exchanges duly revised by the

PROWESS.

Results and Discussion

In this section the effect of tax incentives on the growth of cement Industry for 10 years period is

shown in following three parts:

PART -1: Data analysis of average growth of selected variables for period of 10 years.

PART-2: Data of all selected companies during the period under research.




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PART-3: Analysis on the basis of size of companies under review.

PART-1

In this part data compiled depicts the growth of variables selected under the study for cement

Industry. The data of variables for a period of 10 years for twenty selected companies is

presented below:

TABLE-1: GROWTH DATA OF VARIABLES (in millions)

FY PAT GFA CE RES. & SUR. SH.EQ.

2005-6 1812.99 14828.78 14697.18 8466.91 8510.94

2006-7 2939.96 16148.77 18475.66 10835.01 11470.05

2007-8 4018.15 18233.85 22460.53 14333.19 14865.81

2008-9 3402.62 22354.54 27359.53 16696.46 17238.89

2009-10 3908.90 25592.93 30514.03 21254.16 21728.83

2010-11 3070.76 35712.70 37889.13 27087.79 27435.37

2011-12 4530.35 39761.55 43953.92 30358.05 30672.68

2012-13 4962.69 42943.03 48888.38 34076.63 34176.84

2013-14 3849.59 46413.12 53983.51 36940.67 37087.06

2014-15 4176.69 52848.41 58202.00 38677.10 39137.71

It is observed from values given in Table-1 that profit after tax (PAT) is increasing year after

year. The value of 1812.99 millions in 2005-2006 has increased to 4176.69 millions in 2014-

2015. This increase is significant during the period under study. Thus a comparison of figures

during the decade witnesses growth in profits. Similarly there is an increasing trend in values of

Gross fixed assets, capital employed during this period. This rise in data can also be attributed to

growth of industry. The reserves and surplus were amounting to 38677.10 millions in 2014-2015




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as compared to 8466.91 millions in 2005-2006 indicate growth of industry. A similar trend is

observed in the variable shareholders equity which was 8510.94 millions in 2005-2006 and

touched 39137.71 millions in 2014-2015. Hence it can be derived that corporate tax incentives

positively affect the growth of cement Industry.

PART-2

Regression Analysis Results and Discussion

In this part the results of the impact of tax incentives on all the selected variables

mentioned above are shown in Table-2 with their detailed analysis.

TABLE-2

ANALYSIS FOR TEN YEARS

CEMENT INDUSTRY- TWENTY COMPANIES.

REGRESSION RESULTS OF IMPACT OF TAX INCENTIVES ON DIFFERRENT

VARIABLES

DEPENDENT

INDEPENDENT PAT GFA CE RES.& SUR. SH. EQ

b b b b b

TAX

INCENTIVE

0.410 8.695 9.688 6.403 6.513

(0.651) (1.873) (1.293) (1.309) (1.242)

T 0.630 4.641* 7.489* 4.889* 5.243*

R2 0.04 0.72 0.87 0.74 0.77

Notes: 1. Figures in parenthesis below the 'b' coefficients represents the S.E. of 'b'

2. Regression coefficients with no asterisk mark are insignificant at 5 % level.

3. *indicates significant at 5%




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The data analysis of Table-2 indicates that the „b‟ coefficient value is positive. So during a

period of 10 years under consideration gross fixed assets (GFA), capital employed (CE),

reserves and surplus (R&S), shareholders equity (SE) are all favorably influenced by

independent variable i.e. tax incentives . The standard error value indicates the reliability of

results derived. The T values at five per cent level of significance (risk of being wrong) with

asterisk mark are significant except for profit after tax. Even R2 values also depict that except

profit after tax a strong relationship exists between tax incentives and different variables

explaining industrial growth. These results are conclusive evidence of cement industry‟s growth.

As a consequence tax incentives have had a positive effect on the growth of cement industry at

five per cent level of significance. There is an important observation that the industrial growth is

influenced by non tax considerations also, but in this study the aspect of non tax considerations

has not been taken into account. Tax incentive is the sole variable considered to have an impact

on industrial growth.

PART 3

Size wise analysis

In this part the twenty selected companies of the cement Industry are classified on the basis of

their size as already mentioned in the Research Methodology above. Their data analysis results

are shown in part 3. The data analysis of the impact of tax incentives on growth of eleven large

sized, four medium sized and five small sized companies in cement Industry is presented through

Table-3, Table-4 and Table-5 respectively.




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TABLE-3


CEMENT INDUSTRY- LARGE SIZED ELEVEN COMPANIES.


VARIABLES

DEPENDENT


b b B b b

TAX

INCENTIVE 0.404 8.355 9.570 6.298 6.413

(0.632) (1.889) (1.246) (1.270) (1.196)

T 0.639 4.422* 7.678* 4.956* 5.361*

R2 0.04 0.70 0.88 0.75 0.78




The data analysis of large sized companies in Table-3 highlights that any change in tax

incentives (independent variable) results in favorable changes in the PAT, GFA, CE,

RES.&SUR., SH.EQ. i.e. (dependent variables) signifying the growth of industry. At five per

cent level of significance, except for profit after tax, a higher „b‟ co-efficient values, T values

and R2 values show that there is a strong relationship between tax incentives and the dependent

variables explaining growth of cement industry. Hence an overall impact is that tax incentives

positively affect industrial growth.




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TABLE-4


CEMENT INDUSTRY-MEDIUM SIZED FOUR COMPANIES


VARIABLES

DEPENDENT

INDEPENDENT

PAT GFA CE RES.& SUR. SH. EQ

b b B b b

TAX

INCENTIVE 0.596 14.910 8.571 6.101 6.070

(1.324) (3.863) (3.134) (2.208) (2.228)

T 0.450 3.858* 2.734* 2.763* 2.723*

R2 0.02 0.65 0.48 0.48 0.48




It is observed from the above table that when the results are analysed for a period of ten years for

the medium sized companies, the values indicate that tax incentives continue to remain

significant. At five per cent level of significance, although all the variables are positivetly

affected but gross fixed assets are strongly affected by the independent variable i.e. tax

incentives. R2 values indicate that tax incentives strongly affect the variable gross fixed assets as

compared to other dependent variables. Thus in case of medium sized companies of the cement

industry, tax incentives do positively affect industrial growth.




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TABLE-5


CEMENT INDUSTRY-SMALL SIZED FIVE COMPANIES.


VARIABLES

DEPENDENT


b B b B b

TAX

INCENTIVE 0.674 7.877 10.033 10.223 10.383

(1.545) (5.561) (7.865) (6.276) (6.460)

T 0.436 1.416 1.275 1.628 1.607

R2 0.02 0.20 0.16 0.24 0.24




In Part-3 of the study, data analysis of small size companies in Table-5 depicts that during the

financial years 2005-06 to 2014-15, „b‟ values indicate that tax incentives positively influence

the dependent variables signifying growth. But the other values namely T values, R values are

not indicating a significant relationship. This indicates that there are other non tax factors

affecting the variables depicting industrial growth.

Conclusion

Tax incentives are significant tool of the industrial growth. The changing tax provisions in the

last decade are justifying industrial growth. The increasing values of variables namely profit after

tax, gross fixed assets, capital employed, reserves and surplus, shareholders equity of twenty

selected companies throughout the period of study is attributed to the growth of cement industry.

Hence overall the tax incentives positively affect the growth of cement Industry.




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Further linear regression analysis of the twenty cement companies indicates that tax incentives

significantly affect each of the variables except profit after tax. The values at five percent level

of significance confirm that tax incentives prove to be significant variable affecting industrial

growth except profit after tax. Hence the overall impact of tax incentives on industrial growth in

cement industry is favorable.

A size wise analysis concludes that in case of large and medium sized companies, the effect of

tax incentives on variables responsible for industrial growth is significant. However in case of

small sized companies, although taxes affect the variables indicative of growth but not

significantly. The overall impact is that corporate tax incentives do not adversely influence the

industrial growth.

Despite the fact that tax incentives significantly affect the growth of industry, it is not the only

variable leading to industrial growth. There are other predominant non tax considerations than

tax considerations affecting industrial growth. However, in the present study this aspect of non

tax considerations has not been taken into account. Tax incentive is the only variable considered

to examine its impact on industrial growth in cement industry.

Hence this research paper concludes that tax incentives positively affect the different variables

leading to industrial growth in cement industry.

References

Forbes N., (2002) „Doing Business in India‟ A. Krueger (ed.) Economic Policy Reforms

and the Indian Economy, pp 129-68 New Delhi: Oxford University Press.

Balakrishnan.P, and M Parmeshwaran, (2007) „Understanding Economic growth in India:

A prerequisite” Economic and Political weekly 42(7):2915-22

C R Kothari, G Garg (2014) 3rd Ed. on “Research Methodology, Methods and

Techniques” New Delhi. New Age International Pvt. Ltd. Publishers




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David M. Levine, David F. Stephen, Kathryn A. Szabat,(2014) 7th Ed. on “Statistics for

Managers”,-using Microsoft Excel PHI Learning Pvt. Ltd.

www.prowess.com CMIE PROWESS database, CMIE (Centre for Monitoring Indian

Economy Pvt. Ltd.) Mumbai.

www.ibef.org /industry/CEMENT-India.aspx




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A STUDY ON AFFORDABLE CONSTRUCTION (BY USING PET BOTTLES)

Kratika Kumawat*, Shraddha Sethiya** ,Parul Soni***

Civil Department, Mandsaur University, Mandsaur (M.P.)

[email protected]*, [email protected]**, [email protected]***

Abstract

PET stands for polyethylene terephthalate and PET bottles occupying an indispensable position

in the world are using PET bottles as effective containers for common man’s life. Food

processing industries across storing juice, beer, carbonated and non carbonated drinks. The

different parameters which determine the form of PET bottles during designing, manufacturing

and production phases are cost per unit, need, volume, color, intrinsic velocity, size, shape etc.

Irrespective of a wide range of applications, initiatives in recycling post consumer PET is

sporadic. The disposal of PET bottles in the environment, significantly contributes to ecological

imbalance. Interpreting the negative impacts and adopting the principles of Reuse in

construction nowadays. In construction industry, hybrid actors are using PET bottles as moulds

for developing alternative blocks. Technocrats are recycling PET products physically in to

fibers, pellets and flakes for partial replacement of fine and coarse aggregates in conventional

building materials. This paper intends to consolidate such initiatives addressing building

systems, materials and artifacts. It discusses an overview of such applications and other intuitive

trends which are emerging in Indian context.

Keywords

Plastic waste PETE bottle, sustainable material, urban wastage, construction material,

Innovative wall construction, SM-SW soil as filler material.

Introduction

Plastic bottles are increasingly becoming a menace to the environment due to the chemicals used

in the manufacture, improper use and disposal. As noted by Plastics Industry (2011) reusing

plastic bottles may seem safe, but a chemical found in reusable plastic bottles, known as




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Biphenyl A, is suspected of posing a health risk to human beings. As only regional products are

used the houses are cheap and can be afforded even by poor families. Additionally the method

has so far proven to be earthquake resistant and allows short construction periods. It also

mentions some ways for self-standing and insulating them in thermal and sound points of views

and some positive points which this material have versus others.

Pet bottle classroom: Kishangarh

Affordable Construction - New Delhi

A classroom was constructed at Kishangarh Primary School and Tuition Centre utilising PET

bottle bricks filled with waste mud.

Samarpan Foundation has applied for and is in the process of registering its patent for Nylon-6

Fish Net and PET Bottle Construction under the Patents Act, 1970, with the Controller of

Designs under the Design Act, 2000 and under the Copyrights Act, 1957.

Samarpan School after finishing work




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Reason of using PET Bottles

PET bottles have become the bane of modern civilization. Due to the poor quality of drinking

water, mineral water packaged in PET bottles abounds our cities & towns. In addition,

aerated drinks & sodas have added a profusion of discarded, unwanted PET bottles.

PET bottles are a menace because of their longetivity. They do not degrade and hence pose a

disposal problem. Plastic makes up much of street litter in urban and rural areas. It is rapidly

filling up landfills and chocking water bodies.

We have taken this negative aspect of the PET bottles i.e. its longevity and converted it into

positive. We found that when a pet bottle is filled with mud or sand and recapped, it can be

used as a solid, everlasting brick.

We have successfully replaced steel RCC slab but Nylon- 6 fish net at a mere 1% of the cost

of steel, utilising its high tensile strength.

Building wall constructed by using plastic bottle

Conclusion

One of the main disadvantages in constructing houses is high cost of the building. High

cost is primary requirement for constructing the house in places where people are below

poverty line, is becoming one of the most significant problem of peoples.




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On the other hand, urbanization growth will increase rubbish especially non-renewable

ones. Eco friendly architectural principles are being incorporated into more buildings

every day in the world but they are still out of reach of many people due to lack of

knowledge and awareness.

In this paper we implemented strategies and systems based on Eco-friendly environment

that could still be built at very low costs, with waste materials that is plastic bottle,

providing adequate thermal comfort while being sustainable.

At the end, it was concluded that in different factors such as time of execution, load

capacity, flexibility, reducing waste, cost and energy efficiency, plastic bottles can be

more effective compared to some conventional building materials such as brick, concrete

and ceramic blocks.

References

Adams, E. A. and Agib, A. R. A. (2001), “Compressed Stabilised Earth Blocks

Manufacture in Sudan, UNESCO”, Paris: 522/RAB/11,

http://tscglobal.net/wpcontent/uploads/2010/12/CEB-in.

Andreas Froese (2001), “Plastic bottles in construction who is the founder of „ECO-

TEC‟, http://www.eco-tecnologia.com.

Andrew Kibuuka, “Capacity Building of JEEP Folke Center, Uganda”, The information

officer of Joint Energy and Environment Project (JEEP), Uganda.

ENSO Bottles (2009), “Plastic Bottles Environmental Impact”,

http://www.ensobottles.com/FAQ/FAQ Environmental-Impact.html.

Kalumirekusimwiragi (June 2011), “Investigating the compressive strength of plastic

bottles as masonary”, Uganda Martyrs University.




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Mojtaba V. S., Masoud V. S., Azim S. B. (2013), “ Investigating the Application of

Plastic Bottle as a Sustainable Material in the Building Construction”, International

Journal of Science, Engineering and Technology Research, Vol.2, Issue I, pp. 28-34.

Samarpan foundation, “House construction with plastic bottles, New Delhi”,

www.samarpanfoundation.org.




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A BRIEF STUDY ON DATA MINING

Aayush Mehta*, Akriti Saxena**, Aishwarya Thanna***

CSE, Mandsaur Institute of Technology, Mandsaur (M.P.)


Abstract

Data Mining is the process of analyzing data from different perspectives and summarizing it into

useful information - information that can be used to increase revenue, cuts costs, or both. The

main aim of this paper is to expound about the knowledge discovery and data mining. Data

mining software is one of a number of analytical tools for analyzing data. It allows users to

analyze data from many different dimensions or angles, categorize it, and summarize the

relationships identified. Technically, data mining is the process of finding correlations or

patterns among dozens of fields in large relational databases. For processing the data now there

are many traditional and statistical methods of data analyses and spreadsheets are used to

obtained informative reports from data but they can’t give the knowledge from data.

Index Term: Data, Information, Knowledge, Data Mining, Data Warehouse

Introduction

Nowadays, automation of many financial, retail and government transactions related activities

and decisions generates huge amount of data to be stored in databases, data warehouses and other

information repositories by large and simple transaction i.e. tax returns, telephone calls, business

trips, performance tests and product warranty registration which are being handled through

computer. So, in order to maintain the large amount of information (knowledge) we need some

technique which could help humans to reduce their efforts so that they can accomplish their

requirements of keeping data safe and accessible with an ease. A data warehouse is a subject-

oriented, integrated, time-variant, and nonvolatile collection of data in support of management’s

decision-making process.




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The warehouse usually resides on its own server and is separate from the transaction-processing

or “run-the-business” systems. We are drowning in data, but starving for knowledge! So, we

extract interesting knowledge from data in large databases which is known as data mining.

Before going deep into data mining and data warehouse we should firstly know about some

terminologies which are interrelated.

Data: Data is raw or unorganized form of facts and figures that refer to, or represent, conditions,

ideas, or objects. It is limitless and present everywhere in the universe.

Information: Data that is accurate and timely, specific and organized for a purpose, presented

within a context that gives it meaning and relevance, and can lead to an increase in

understanding and decrease in uncertainty.

Information= Data + Context + Meaning

Knowledge: Awareness or understanding of a circumstance or fact, gained

through association or experience. Facts, information, and skills acquired through experience or

education; the theoretical or practical understanding of a subject:

Intelligence: The ability to apply knowledge to manipulate one's environment or to think

abstractly as measured by objective criteria, also we can say to learn or understand or to deal

with new or trying situations. In order to understand data mining and warehouse in an efficient

manner we should take an overview of some following given topics.

Stages of Information System:

STAGE 0: Manual Information System

o Example: Records, Files, etc.

STAGE 1: Sequential Information System

o Example: Tapes, Files, etc.

http://www.businessdictionary.com/definition/form.html

http://www.businessdictionary.com/definition/represent.html

http://www.businessdictionary.com/definition/condition.html

http://www.businessdictionary.com/definition/idea.html

http://www.businessdictionary.com/definition/object.html

http://www.businessdictionary.com/definition/universe.html

http://www.businessdictionary.com/definition/accurate.html

http://www.businessdictionary.com/definition/organized.html

http://www.businessdictionary.com/definition/context.html

http://www.businessdictionary.com/definition/sales-lead.html

http://www.businessdictionary.com/definition/awareness.html

http://www.businessdictionary.com/definition/fact.html

http://www.businessdictionary.com/definition/association.html




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STAGE 2: File based Information System

o Example: Disk, Application program, etc

STAGE 3: DBMS based Information System

o Example: Generalized data management software.

Among the above stages, DBMS based Information System is the most efficient stage among all.

But the approach which is followed by DBMS is as follows:

Integration

Efficient Storage/Access

Provides Simple view

Transaction Management

A DBMS (Database Management System) is a complete system used for managing digital

databases that allows storage of database content, creation/maintenance of data, search and other

functionalities.

Data Mining

Data Mining is a field in computer science, which deals with the extraction of previously

unknown and interesting information from raw data. Usually, the data used as the input for the

Data mining process is stored in databases. Users who are inclined toward statistics use Data

Mining. They utilize statistical models to look for hidden patterns in data. Data miners are

interested in finding useful relationships between different data elements, which is ultimately

profitable for businesses.

Data mining is also known as Knowledge Discovery in Data (KDD). Due to the exponential

growth of data, especially in areas such as business, data mining has become very important tool

to convert this large wealth of data in to business intelligence, as manual extraction of patterns

has become seemingly impossible in the past few decades.




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Why Data Mining?

Main reasons to use data mining are:

Amount of data is more and the information is less.

Due to above there is a need to extract useful information from the data and to interpret it.

Data mining can automate the process of finding relationships and patterns in raw data and the

results can be either utilized in an automated decision support system or assessed by a human

analyst. This is why to use data mining, especially in science and business areas which need to

analyze large amounts of data to discover trends which they could not otherwise find.

If we know how to reveal valuable knowledge hidden in raw data, data might be one of our most

valuable assets. While data mining is the tool to extract diamonds of knowledge from your

historical data and predict outcomes of future situations.

Areas of data to be mined

Different kinds of data that data mining is usually applied on could be structured, unstructured or

mixed and some of them are:

Flat files: Flat files are simple text files that are in binary or text format and the structure of

these files would already be known so that data mining algorithm can be easily applied.

World Wide Web: Data could be saved in web in the form of text, video, audio, raw data or

applications. Data mining in World Wide Web consists of three different types; web content

mining, web structure mining and web usage mining.

Relational Databases: Relational database consists of different tables that are required to

contain data. These data are stored in tables in the form of attributes and their values.

Different query languages are used for relational databases and some of them are SQL, MS

Access, and Oracle etc. These languages are used to store, retrieve and manipulate data in form




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of tables. Data mining algorithms are applied on relational databases in order to analyze and

summarize data making the best use of the structure innate to relational databases.

Way data is extracted:

KNOWLEDGE

PATTERN

DATA MINING

TASK RELEVANT

DATA WAREHOUSE

DATA CLEANING

DATABASE

Difference between DBMS and Data mining

DBMS is a full-fledged system for housing and managing a set of digital databases. However

Data Mining is a technique or a concept in computer science, which deals with extracting useful

and previously unknown information from raw data. Most of the times, these raw data are stored

in very large databases. Therefore Data miners use the existing functionalities of DBMS to

handle manage and even preprocess raw data before and during the Data mining process.




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However, a DBMS system alone cannot be used to analyze data. But, some DBMS at present

have inbuilt data analyzing tools or capabilities.

Data Warehouse

Data warehousing can be said to be the process of centralizing or aggregating data from multiple

sources into one common repository.

It is simply a single, complete and consistent store of data obtained. It was needed in mining for

unified access data. Data Warehouse is:

Non-Volatile

Time Varying

Integrated

Subject Oriented

Large volume of data

It was introduced to overcome the problems of database which was unification of data.

Functions or Techniques of Data Mining:

Following are the techniques of data mining

Classification (Attribute)

Estimation (Regression)

Prediction (Time series)

Association (Cross selling)

Clustering (Segmentation)

Classification

The clustering techniques analyze a set of data and generate a set of grouping rules that can be

used to classify future data. The mining tool automatically identifies the clusters, by studying the




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pattern in the training data. Once the clusters are generated, classification can be used to identify,

to which particular cluster, an input belongs.

Association

An association rule is a rule that implies certain association relationships among a set of objects

in a database. In this process we discover a set of association rules at multiple levels of

abstraction from the relevant sets of data in a database. For example, one may discover a set of

symptoms often occurring together with certain kinds of diseases and further study the reasons

behind them.

Clustering

Clustering is a data mining technique that makes meaningful or useful cluster of objects which

have similar characteristics using automatic technique. The clustering technique defines the

classes and puts objects in each class, while in the classification techniques, objects are assigned

into predefined classes

Prediction

The prediction, as it name implied, is one of a data mining techniques that discovers relationship

between independent variables and relationship between dependent and independent

variables. For instance, the prediction analysis technique can be used in sale to predict profit for

the future if we consider sale is an independent variable, profit could be a dependent variable.

Then based on the historical sale and profit data, we can draw a fitted regression curve that is

used for profit prediction.

Data warehousing versus Data mining:

Data warehousing is a process that must occur before any data mining can take place. In other

words, data warehousing is the process of compiling and organizing data into one common

database, and data mining is the process of extracting meaningful data from that database. The

data mining process relies on the data compiled in the data warehousing phase in order to detect

meaningful patterns.




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Advantages of Data Mining

Marketing / Retail: Data mining helps marketing companies build models based on

historical data to predict who will respond to the new marketing campaigns such as direct

mail, online marketing campaign etc.

Finance / Banking: Data mining helps banks detect fraudulent credit card transactions

to protect credit card’s owner.

Manufacturing: By applying data mining in operational engineering data, manufacturers

can detect faulty equipments and determine optimal control parameters.

Governments: Data mining helps government agency by digging and analyzing records

of financial transaction to build patterns that can detect money laundering or criminal

activities.

Disadvantages of data mining

Privacy Issues: The concerns about the personal privacy have been increasing

enormously recently especially when internet is booming with social networks, e-

commerce, forums, blogs. However businesses don’t last forever, some days they may be

acquired by other or gone. At this time the personal information they own probably is

sold to other or leak.

Security issues: Security is a big issue. Businesses own information about their

employees and customers including social security number, birthday, payroll and etc.

However how properly this information is taken care is still in questions.

Conclusion

Data mining is an iterative process of extracting interesting knowledge from data in large

databases. KDD is the overall process of finding and interpreting knowledge from data. It helps

the workers in their everyday business activity and improve their productivity and also helps for

knowledge workers like executives, managers, analysts to make faster and better decisions .So

knowledge should be valid and potentially useful and then the hidden information in the

database will be useful.




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Data mining brings a lot of benefits to businesses, society, governments as well as individual.

However privacy, security and misuse of information are the big problems if they are not

addressed and resolved properly.

References

Data Mining http://storm.cis.fordham.edu/~gweiss/papers/data-mining-chapter-2010.pdf.

Introduction to Data mining. http://www

users.cs.umn.edu/~kumar/dmbook/dmslides/chap1_intro.pdf.

A survey on Data mining Techniques. http://www.issr-

journals.org/links/papers.php?journal=ijisr&application=pdf&article=IJISR-14-223-03.

http://storm.cis.fordham.edu/~gweiss/papers/data-mining-chapter-2010.pdf




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A STUDY OF WORKING CAPITAL MANAGEMENT IN PUBLIC ENTERPRISE –

SPECIAL REFERENCE TO GAIL (INDIA) LTD. THROUGH WORKING CAPITAL

LEVERAGE AND NET OPERATING CYCLE

Dr. Purnima Joshi

Joint HOD Commerce, Sri Sathya Sai College for Women, Bhopal

[email protected]

Abstract

As we know that working capital is required to meet the day to day operating expenses and for

holding stocks of raw materials, spare parts, consumables, work in progress and finished goods

and book debts. Here, an attempt has been made to study the working capital leverage and net

operating cycle in Gail (India) Ltd. It was found that both leverage and net operating cycle the

Gail (India) Limited has maintained its position quite well.

Keywords: Working Capital, Leverage, Net Operating Cycle.

Introduction

Working Capital Management means planning, organizing, directing and controlling of working

capital. Basically, it is needed because of the existence of operating cycle. Operating cycle is the

duration of time between acquisition of supplies and the collection of cash from receivables.

Working Capital is required to finance operations during operating cycle for the business to run

smoothly. Whereas, Leverage analysis is a technique which is used to quantify risk return

relationship of different alternatives of capital structure.

Investors within the Oil and Gas Industry should keep an eye of the debt levels of the balance

sheet. It is such a Capital intensive industry that high levels of debt can put a strain on a

company’s credit ratings, weakening their ability to purchase new equipment or finance other

capital projects.




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About Gail (India) Limited

Presently Gail (India) Limited is a fully fledged global energy company listed in fortune 2000

companies. It has its presence in five countries namely, China, Egypt, Mynmar, Oman and

Singapore.

It is dealing in the business of Citi Gas Distribution (CGD) and Compressed Natural Gas (CNG)

in different countries. Further, it is also participating in an onshore pipeline project for

transportation of gas from Mayanmar to China.

Gail (India) Limited started its business in natural gas areas in 1984. Later on it progressed as a

leading integrated energy Company having its presence in a number of energy areas.

Objectives of the Study

To know the performance of Gail (India) Limited by working capital leverages.

To know the operating cycle means to know the conversation of cash into inventory,

conversion of inventory into debtors and conversion of debtors into cash.

Research Methodology

Research is commonly known as search for knowledge. It is a movement from know to

unknown.

Data Collection

The search for answers to research questions is called collection of data. Data are facts, and other

relevant materials, past and present, serving as bases for study and analyses.

There are two methods of data collection they are:-

Primary Data Collection.

Secondary Data Collection.




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This project is based on Primary as well as Secondary Data. The Primary Data collected through

interview of Head of Finance department and Head of Statistical department of Gail (India)

Limited.

The Secondary Data collected from the Annual Reports of Gail (India) Limited.

Limitations of the Study

The study is limited up to three years (2010-11 to 2012-13) performance of the company.

This study is conducted for a short period. Because of limited period of time, the study

may not be retained fully fledged and utilization in all aspects.

Tools for the Analysis

Working Capital Leverage.

Net Operating Cycle.

Working Capital Leverage

Leverage Analysis

Leverage Analysis is a technique, which is used to quantity risk return relationship of different

alternatives of capital structure. Risk exists because of lack of certainty.

Leverage means use of sources of funds bearing fixed financial payments like debt in the capital

structure.

Investors within the oil and gas industry should keep an eye on the debt levels on the balance

sheet. It is such a capital intensive industry that high levels of debt can put a strain on a

company’s credit ratings, weakening their ability to purchase new equipment or finance other

capital projects.

For analyzing the working capital leverage, we have taken the four measures:-

Debt/EBITDA (Earnings before Interest, Tax, Depreciation and Amortization).

EBIT/Interest Expense.




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Debt/Capital.

Debt/Equity.

Debt Ratios

This is where analysts, to give a better idea of how these companies face against the competition,

use specific leverage ratios in assessing the financial health of a company. With a basic

understanding of these ratios in oil and gas, investors can better understand the fundamentals of

oil and gas stocks.

It is important to note that debt is not inherently bad. Using leverage can increase shareholders

returns, as the cost of debt is lower than the cost of equity. Since it is important to know how

well a business is managing its dept, the following leverage ratios are used:-

Debt/EBIDA (Earnings before Interest, Tax Depreciation and Amortization).

EBIT/Interest Expense.

Debt/Capital.

Debt/Equity.

Debt to EBITDA

The Debt to EBITDA leverage ratio measures a company’s ability to pay off its incurred debt.

Since oil and gas companies typically have a lot of debt on their balance sheets, this ratio is

useful in determining how many years of EBITDA would be necessary in order to pay back all

the debt. Typically, it can be alarming if the ratio is over three, but this can vary depending on

the industry.

A low ratio indicates that the company will be able to pay back its debts faster. Along with that,

Debt/EBITDA multiples can vary depending on the industry. This is why it is important to only

compare companies within the same industry such as oil and gas.




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Table 1: Debt/EBITDA

(Rs. in Crores)

Year 2010-11 2011-12 2012-13

Debt 6904.10 9697.48 13918.20

EBITDA 5798.95 6354.84 6557.85

Ratio 1.19 1.53 2.12

Source: Compiled from Annual Report of Gail (India) Ltd.

Observation

It was observed that debt during the study period is in increasing way. In the year 2010-11, it was

Rs. 6904.10 crores while in the subsequent years it was increased by 40.46% and 101.59% in

2011-12 and 2012-13 financial year respectively

Whereas earning before. Interest, Tax, Depreciation and amortization also in an increasing way

but the percentage of increment as compared to 2010-11 is not that much in case of Debt. In the

year 2010-11, the EBITDA was Rs. 5798.95 crores. This amount was increased by 9.59% in the

year 2011-12 and 13.09% in 2012-13. The ratio between the two also in an increasing way. In all

the three years, the ratio is below 3.

(ii) Interest Coverage Ratio

EBIT

Interest Coverage Ratio = ––––––––––––––––

Interest Expense

The interest coverage ratio is used by oil and gas analysts to determine a firm’s ability to pay

interest on outstanding debt. The greater the multiple, the less risk to the lender and typically, if

the company has a multiple higher than one, they are considered to have enough capital to pay

off its interest expense an oil and gas company should cover their interest and fixed charges by at

least a factor of two, or even more ideally, 3:1.




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An interest – coverage ratio below 1 is an immediate indication that the company, regardless of

its industry, is not generating sufficient cash to cover its interest payments.

Table 2: EBIT/Interest Expense

(Rs. in Crores)

Year 2010-11 2011-12 2012-13

EBIT 5798.95 6354.84 6557.85

Interest Expense 463.00 680.45 993.62

Ratio 12.52:1 9.34:1 6.60:1

Source: Compiled Annual Report of Gail (India) Ltd.

Observation

It has been seen that EBIT and Interest Expense, both as compared to 2010-11, increased. The

interest expense is increased by 46.97% and 114.60% in 2011-12 and 2012-13 respectively.

In all the three years, the ratio between EBIT and Interest Expense are in descending order. In

2010-11 it is 12.52, in 2011-12 it is 9.34 and in 2012-13 it is 6.60. During the study period the

interest coverage is above 1. It means the Gail (India) Ltd. generating the sufficient cash to cover

the interest.

(iii) Debt to Capital = Debt /Capital

Debt

Debt to Capital = –––––––––––––

Capital

The debt to capital ratio is a measurement of a company’s financial leverage. It is one of the

more meaningful debt ratios because it focuses on the relationship of debt liabilities as a

component of a company’s total capital base. Debt includes all short term and long term

obligations. Capital includes the company’s debt and shareholder’s equity.




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The ratio is used to evaluate a firm’s financial structure and how it’s financing operations.

Typically, if a company has a high debt to capital ratio amongst its peers, then it may have an

increased default risk due to the effect the debt has on its operations.

Table 3: Debt to Capital

(Rs. in Crores)

Year 2010-11 2011-12 2012-13

Total Debt 6904.10 9697.48 13918.13

Total Capital 1268.48 1268.48 1268.48

Ratio 5.44:1 7.64 10.97


(iv) Debt to Equity = Debt/Equity

Debt

Debt to Equity = ––––––––––

Equity

The debt/equity ratio, probably one of the most common financial leverage ratios, is calculated

by dividing total liabilities by shareholders equity. Typically, only interest bearing long term

debt & short term debt is used as the liabilities in this calculation. However, analyst may make

adjustments to include or exclude certain items. The ratio indicates what proportion of equity and

debt a company uses of finance its assets. It is important to note, however, that this ratio can

widely vary between oil and gas firms, depending on their size.




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Table 3: Debt/ Equity

(Rs. in Crores)

Year 2010-11 2011-12 2012-13

Debt. 6904.10 9697.48 13918.13

Equity (Shareholder’s Fund) 21213.87 24913.18 28794.66

Ratio 0.33 0.39 0.48


Observation

It has been seen that the debt equity ratio is just under one during the study period. In the year

2010-11, the debt was Rs. 6904.10 crores and it was raised by 40.46% in the year 2011-12 and

101.59% in the year 2012-13. While the equity was raised by 17.44% in the year 2011-12 and

35.74% in the year 2012-13 as compared to 2010-11.

In finance, leverage (also known as gearing) refers to the use of debt capital to supplement equity

capital. Companies usually, use leverage to attempt to increase returns on equity capital, as it can

increase the scope for gains or losses. The term working capital leverage refers to the impact to

level of working capital management should improve the productivity of investment in current

assets and ultimately it will increase the return on capital employed. Working capital leverage

measures the responsibilities of ROCE (Return on Capital Employed) for changes in current

assets. We can apply the following formula for calculating working capital leverage.

Working Capital Leverage = % Changes in ROCE % Changes in Current Assets.

EBIT x 100

Return on Capital Employed (ROCE) = ––––––––––––

Total Assets




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Table 4: Calculation of Working Capital Leverages.

Years 2010-11 2011-12 2012-13

ROCE 19.08% 12.45% 10.97%

WC Leverage 1% 38% 31%


Observation

It was observed that the return on capital employed declining in a study period. In the first year

of the study period it was 19.08%, in 2011-12 it comes down to 12.45% and in 2012-13, it is

10.97%. While working capital leverage, it was just 1% in 2010-11 and increased in a rapid way

in 2011-12 by 38% and in 2012-13 by 31%.

Operating Cycle Analysis or Working Capital Cycle

Working Capital is also known as revolving capital. Every business, regardless of what they do

operates this cycle. To start any business cash is required. This cash is then used to purchase

stock in order to generate a sale. When the stock is sold it is either by way of cash or is charged

to an amount, creating a debtor. The operating cycle is the length of time between the company’s

outlay on raw materials, wages and other expenses and inflow of cash from sale of goods.

Thus, a revolution or cycle from cash to raw materials, to work in progress, to finished goods, to

debtors and back to cash takes place. This revolution is called as operating cycle.

Further, following formula can be used to determine the conversion periods. Each of the

components of the operating cycle can be calculated as follows:-

Average Stock of Raw Material

RMCP= –––––––––––––––––––––––––––––

Raw Material Consumption per day




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Average Stock of Finished Goods

FGCP= –––––––––––––––––––––––––––––

Total Cost of Goods Sold per day

Average Accounts Receivables

RCP= –––––––––––––––––––––––––––––

Net Credit Sales per day

Average Trade Creditors

CPP= –––––––––––––––––––––––––––––

Average Credit Purchase per day

After computing the period of one operating cycle, the total number of operating cycles that can

be computed by dividing 365 days with number of operating days in a cycle. The total

expenditure in the year when divided by the number of operating cycles in a year will give the

average amount of the working capital requirement.

In other words, operating cycle refers to the number of days taken for the conversion of cash to

inventory through the conversion of accounts receivable to cash. It indicates towards the time

period for which cash is engaged in inventory and accounts receivable. If an operating cycle is

long, then there is lower accessibility to cash for satisfying liabilities for the short term.

Table 5: Operating Cycle (No. of Days)

Year 2010-11 2011-12 2012-13

Days Debtors 23.07 18.74 19.76

Days Inventory 11.62 14.25 13.55

Days Payable 34.06 22.14 24.42

Source: Compiled from the annual report of Gail (India) Ltd.




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Observation

It has been seen that receivables collection period are in descending order. It was 23.07 in 2010-

11, 18.74 in 2011-12 and 19.76 in 2012-13 while Inventory conversion period are in increasing

order. 11.62 in 2010-11 14.25 in 2011-12 and 13.55 in 2012-13. As far as creditors payment

period is concerned it was 34.06 days, 22.14 days and 24.42 days in 2010-11, 2011-12 and 2012-

13 respectively.

Table 6: Impact of the components of the operating cycle

Year 2010-11 2011-12 2012-13

RMCP 4.57 7.82 13.20

FGCP 5.39 5.91 6.57

RCP 19.83 18.06 17.9

PCP 45.50 36.02 31.78

Source: Compiled from the annual report of Gail (India) Ltd.

Net Operating Cycle

The difference between gross operating cycle and payables deferral period is called net operating

cycle. Generally, a company may resources (raw materials) on credit and temporarily postpones

payment of certain expenses. If net operating cycle of a firm increases it means further need for

negotiated working capital.

The calculation of Net Operating Cycle helps to know the exact period of working capital

turnover i.e. how long it takes to convert cash again into cash? Through this calculation we can

ascertain the working capital period.

Net Operating Cycle = TOCP – Accounts Payable Period.

Here, TOCP means Total Operating covers in period i.e. Raw Material Conversion Period +

Finished Goods Conversion Period + Receivables Collection Period.




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Table 7: Net Operating Cycle (NOC)

Year 2010-11 2011-12 2012-13

TOCP 35.03 32.47 37.76

PCP 34.06 22.14 24.42

NOC 0.97 10.33 13.34

Source: Compiled from the Annual Report of Gail (India) Ltd.

Observation

From the above table, it was observed that the total operating covers in period in 2011-12 is little

bit earlier as compared to 2010-11 and 2012-13. Same in the year 2011-12 the payment made

earlier as compared to 2010-11 and 2012-13. In 2011-12, the company made the payment within

22 days, in 2012-13 the time taken for payment is 24 days while 34 days time taken for payment

to creditors in 2010-11.

As far as Net operating cycle is concerned. It is increasing way throughout the study period. In

2010-11, 2011-12 and 2012-13 the NOC is 0.97 days, 10.33 days and 13.34 days respectively. It

means the company gets its cash back in the year 2010-11 0.97 days, 10.33 days in 2011-12 and

13.34 days in 2012-13.

Conclusion and Suggestion

Working capital management is given higher priorities by the corporate world. Companies which

are effectively using their working capital components are likely to have competitive advantages

over their competitors. It is a lifeline of every industry, irrespective of whether it’s a

manufacturing industry or service industry. It is the prime and most important requirement for

carrying out the day to day operations of the business.

The company is performing not so well during the study period. Though the prices of oil & gas

rising in the global market as well as in domestic market. Not all the areas but in some areas, the




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company’s operations were quite good. The company is using some innovative schemes for

improving its operations.

After the calculation of Debt to EBITDA leverage, the researcher is able to know that in

all the three years of the study period, though the ratio is in increasing way but it is lower

ratio. And the lower ratio indicates that the company will be able to pay back its debts

faster. During the study period the ratio is below 3. This indicates that this is not the

alarming situation for the company.

It has been seen that the leverage ratio between EBIT/Interest expense is above one, so

the company is able to pay off its interest expenses as it has enough capital to pay off its

interest expenses. Though the ratio is declining during the study period but the company

has maintained its position as compare to ideal ratio i.e. 3:1.

While evaluating the financial leverage it has been seen that the ratio is moving towards

higher trend that indicates that company may have a risk to pay off its debts.

The debt equity ratio shows to which debt financing has been used the extent in the

business. It was found that during the study period though the ratio shows the increasing

trend but it is kept under one. It means company is using its debts in the business very

soundly. This represents that the outsiders or creditors will be in satisfactory condition as

their money is utilizing in a proper way.

The working capital leverage refers to this statement that how the funds are invested in

current assets and ultimately it will increase the return on capital employed. Here, the

return on capital employed is little bit declining way as the total assets of the company is

in growing stage. While working capital leverage suddenly boom in 2011-12 and 2012-

13 as compared to 2010-11. The reason behind that is there is change in current assets

during the three years of the study. Hence, return on capital employed in fallen way as the

current assets fall.

The net operating cycle helps to know how fast a company converts its finished goods

into cash. Here, in very first year of the study i.e., 2010-11, the Net operating cycle is just

0.97 but later of the years it shows the growth tendency. It means the conversion of cash

of raw materials consumed and finished goods in later period takes much time. One of the




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reasons for late conversion of cash is that the payable deferral period is down as

compared to total operating covers in period.

For analyzing the movement of funds from different uses or sources of funds during a

particular accounting period, the researcher have made the statement of changes in

working capital. Here, in Gail (India) Limited, we have seen that during the study period

i.e., 2010-11 and 2011-12, and 2011-12 & 2012-13, there is decrease in working capital.

The Gail (India) Ltd. should little bit think to increase its working capital from par level.

This can be possible when company invest their funds more in working capital.

The net operating cycle also indicates company has an ability to convert their finished

products into cash. Here, Gail (India) Ltd. have a sound position because between 10 to

13 days company easily able to convert the raw material, finished goods, receivables

collections into cash after paying the payables. The company has to maintain this in along

period also.

The Debt equity ratio also highlighted that company has enough equity to meet its debt.

The company should maintain it with ideal ratio. Overall, the liquidity position of the

company demands more attention towards it. The Gail (India) Ltd. had par level of

working capital during the study period. Company became little bit unconservable as

concerned the financial policy and thus maintaining less current assets balance. But sales

volume of the company increases during 2010-11 to 2012-13 financial year.

References

Annual reports of Gail (India) Ltd.

Financial management, Khan and Jain – 2011 Edition

Bond, S. (2002). Dynamic Panel data models: a guide to micro data methods and

practice.

Peterson, B (1993). Working capital and fixed investment: New evidence on financing

constraints. The Rand Journal of Economics, volume-24 (3) 328

Lukman, Susanto. (2003). Change Management and ERP Implementation: side by side.




41 | P a g e

Chowdhury, A. and Amin, M.M. (2007). “Working capital Management Practiced in

Pharmaceutical Companies Listed in Dhaka Stock Exchange”. Brac University Journal,

Vol. iv, No. 2, PP. 75-86.

Deloof, M. (2003). “Does Working Capital Management Affect Profitability of Belgian

Firms”? Journal of Business Finance & Accounting, Vol. 30, No. 3 & 4 PP. 573-587.

Salauddin, D.A. (2001). “Profitability of Pharmaceutical companies of Bangladesh”. The

Chittagong University Journal of Commerce, Vol. 16, PP. 54

Smith, K. (1980). “Profitability Versus Liquidity Tradeoffs in Working Capital

Management”, in readings on the Management of working capital. West Publishing

Company, PP. 549-562.

Books

Advanced Management Accounting, Prop. Jawahar lal – 2014 Edition, Published by – S.

Chand & Company Pvt. Ltd., Ram Nagar, New Delhi.

Working Capital Management, V.K. Bhalla, 2014 - Edition, Published by – S. Chand &

Company Pvt. Ltd., Ram Nagar, New Delhi.

Financial Management, Dr. P.C. Tulsian, 2014 – Edition, Published by – S. Chand &


International Financial Management, V.K. Bhalla 2014 – Edition, Published by – S.

Chand & Company Pvt. Ltd., Ram Nagar, New Delhi.

Management Statistics, P.N. Arora, Sumeet Arora, Amit Arora, 2009 – Edition,

Published by – S. Chand & Company Pvt. Ltd., Ram Nagar, New Delhi.

Business Ethics and Corporate Social Responsibility, Dr. S.S. Khanka, 2014 – Edition,

Published by – S. Chand & Company Pvt. Ltd., Ram Nagar, New Delhi.

Investment Management, V.K. Bhalla, 2014 – Edition Published by – S. Chand &


Working Capital Management – A conceptual Approach, Dhiraj Sharma, 2014 – Edition,

Published by Himalaya Publication House, Mumbai.




42 | P a g e

Business research methodology, J.K. Sachdeva, 2014 – Edition, Published by Himalaya

Publication House, Mumbai.

Internet sites:- www.google.com




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HYDROGEN: AS A FUTURE FUEL

Rohit Satidasani*, Shubham Shrivastava**, Sameer Hussain Pathan***

Mechanical Engineering, Mandsaur University, Mandsaur (M.P.)


Abstract

Hydrogen is a fuel of future which is transforming today fossil fuel dependent economy into a

hydrogen economy by providing a emission free transportation fuel .Hydrogen is available in

abundant quantity in nature &the production of hydrogen from water which could lead to a new

era of cheap, clean and renewable energy. The use of the pure hydrogen as the fuel significantly

simplifies the vehicle design & provides greater fuel economy & environmental benefits.

Although hydrogen storage & transport are issues of intense research due to hydrogen’s

characteristic “low density”. Hydrogen is easily produced by electrolysis, a process which uses

electricity to break the bonds between water’s constituent elements hydrogen & oxygen.

Introduction

Hydrogen is a chemical element with chemical symbol H and atomic number 1. With an atomic

weight of 1.00794 u, hydrogen is the lightest element on the periodic table. Its monatomic form

(H) is the most abundant chemical substance in the Universe. At standard temperature and

pressure, hydrogen is a colourless, odourless, tasteless, non-toxic, non-metallic, highly

combustible diatomic gas with the molecular formula H2. Since hydrogen readily forms covalent

compounds with most non-metallic elements, most of the hydrogen on Earth exists in molecular

forms such as water or organic compounds.

Hydrogen can be used as a transportation fuel; whereas neither nuclear nor solar energy can be

used directly. It has good properties as a fuel for internal combustion engines in automobiles.

Hydrogen can be used as a fuel directly in an internal combustion engine not much different

from the engines used with gasoline.




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Hydrogen is easily produced from water by electrolysis, a process which uses electricity to break

the bonds between water’s constituent elements, hydrogen and oxygen, and releases them as gas.

Hydrogen gas can be burned to produce power with no negative impact on the environment,

unlike power produced by burning fossil fuels .One of the problems of generating electricity via

renewable power is that the output either needs to be used immediately or stored. Using

renewable power to produce hydrogen allows the capture of electricity in an environmentally-

friendly state which is easily stored and distributed.

Currently, industrial production of hydrogen relies overwhelmingly on fossil fuels to power the

electrolysis process.

Hydrogen production and storage is currently undergoing extensive research. A solar-hydrogen

system can provide the means of a totally emissions-free method of producing hydrogen.

Although steam reformation of methane is currently the major route to hydrogen production, the

emissions involved can also be controlled much more efficiently than our current system of

transportation fuel. Climate change is a serious issue becoming increasingly evident to much of

the population. Rising CO2 levels have directly contributed to the global warming phenomenon.

As shown in Figures 1 and 2, the CO2 levels have rising dramatically in the past 200 years, along

with the global average temperature.




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Materials and Methods

This research is based on independent research and literature reviews. The various sources of

research include recent journal articles from opposing sides of the hydrogen economy. The

United States Department of Energy website was referenced for current statistics relating to the

transportation sector and the various alternative energy sources being researched.

Table 1 - Use of Hydrogen as a Transportation Fuel

Advantages Disadvantages

High energy yield (122 kJ/g) Low density (large storage areas)

Most abundant element Not found free in nature

Produced from many primary energy

sources

Low ignition energy (similar to

gasoline)

Wide flammability range (hydrogen

engines operated on lean mixtures)

Currently expensive

High diffusivity

Water vapour is major oxidation product

Most versatile fuel




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Materials used are as follows –

Aluminium wire

Stainless steel plates

Water (H2O)

Baking soda ( NaHCO3)

Solar plates

One container for production

One container for storage

Pipes for connection & as a carriers

Nozzle for outlet of flame

Working & Research

Initially aluminium wire and stainless steel plates is taken, aluminium wire is wounded over the

stainless steel plates and then a cell is made out of it, then this arrangement is kept inside the

production container after that water is filled with few amount of baking soda (NaHCO3) as a

catalyst to initiate the production rate of hydrogen from water & steel plates are connected with

anode & aluminium wire connected with cathode.

When we supply the electricity directly from the solar panel , then reaction take place by

supplying electricity –

2H2O H2 + 2OH

Then produced HOH is store in a storage container for future use & then from the outlet nozzle ,

the produced gas is ignited & flame is generated.




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Analysis

We observed that when we use the same material to make the cell of stainless steel then

production of hydrogen was at moderate rate and on the other hand, when we used

aluminium metal wire as a cathode and stainless steel plate as a anode then we observed

that the rate of production of hydrogen was comparatively faster .

When we did this experiment with the help of storage container and passing the gas

through the nozzle from the container, we observed that the pressure in the container

went down and came to equilibrium stage. The flame produce at nozzle blasts the storage

container within a few seconds.

Again we did the same experiment on the balloon as a storage container then we

observed that the flame was continuously ignited uniformly.

Results

A gas as a alternate fuel is produced by this apparatus but it is difficult to control and

handle

Research is under process




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Conclusion

On the technology front, hydrogen, a clean energy carrier that can be produced from any primary

energy source fuel cell which are very efficient energy conversion devices are attracting the

attention of public and private authority. HYDROGEN and fuel cells, by enabling the so called

hydrogen economy, hold great promise for meeting in a quite unique way our concerns over

security of supply and climate change

Hydrogen are seen by many as key solution for 21st century enabling clean efficient production

of power and heat from a range of primary energy source. The paper highlights the need for

strategic planning and increased effort on research, development and deployment of hydrogen

and fuel cell technologies. It also makes wide ranging recommendations for a more structured

approach to Indian energy policy and research, for education and training, and for developing

political and public awareness.

References

United States Department of Energy. Annual Energy Review 2007.

http://www.eia.doe.gov/emeu/aer/contents.html (October 20, 2008).

Veziroglu TN, Sahin S. 21st Century’s energy: Hydrogen energy system. Energy

Conversion and Management. 2008, 49, 1820-1831.

Balat M. Potential importance of hydrogen as a future solution to environmental and

transportation problems. International Journal of Hydrogen Energy. 2008, 33, 4013-

4029.

Dougherty W, Kartha S, Rajan C, Lazarus M, Bailie A, Runkle B, Fencl A. Greenhouse

gas reduction benefits and costs of a large-scale transition to hydrogen in the USA.

Energy Policy (2008), doi:\10.1016/j.enpol.2008.06.039

Baschuk JJ, Li X. A comprehensive, consistent and systematic mathematical model of

PEM fuel cells. Applied Energy, 2009, 86, 181-193.

Gasification Technologies Council. http://www.gasification.org (October 20, 2008)




49 | P a g e

Committee on Alternatives and Strategies for Future Hydrogen Production and Use,

National Research Council. The Hydrogen Economy: Opportunities, Costs, Barriers, and

R&D Needs. Washington, D.C.: The National Academy Press. 2004.

Kelly, N.A.; Gibson, T.L.; Ouwerkerk, D.B.; A solar-powered, high-efficiency hydrogen

fueling system using high-pressure electrolysis of water: Design and initial results. Int. J.

of Hydrogen Energy. 2008, 33, 2747-2764.

Kim J, Lee Y, Moon I. Optimization of a hydrogen supply chain under demand

uncertainty. Int. J. of Hydrogen Energy. 2008, 33, 4715-4729.




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INFLUENCE OF OUT OF STOCK CONDITION ON BABY DIAPERS ON STORES’

LOYALTY, BRAND LOYALTY AND PRODUCT CATEGORY LOYALTY

Dr. Geetanjali Nilesh Bendale*, Mr. Deepak Motwani**

Research Scholar, Jaipur National University, Jaipur**

[email protected]*, [email protected]**

Abstract

Today customer retention is a big challenge for firms, retail outlets and other products or service

providers. Market players have increased to a greater extent and so is the competition for them

to strive better and better. Researchers has made an attempt to study the customer loyalty of

Huggies wonder pants customers towards the medical store which they usually prefer

purchasing from, as well as their loyalty towards the brand and the product category in three

conditions. Study reveals that customer lay more stress on brand availability instead of being

loyal to the store.

Key Words: Customer, loyalty, brand, product, Business lost and business regained

Introduction

In this research paper author has tried to study the impact of out of stock situation on customers

store loyalty, brand loyalty and product category loyalty. The product selected for survey is

Huggies diapers - pant style. Reason behind selecting baby diapers is the researcher’s intention

to study a psychological approach of customers who in most cases are parents of babies in the

age group of 2 to 3 years.

Review of Literature

Customer loyalty is journey and not destination. Every consumer has a different way to look at

store images and to evaluate it. Department stores and supermarkets focus more on building store

image and attracting loyal customers. Retailers prefer giving more importance to customer

service than on focusing on price promotions. Customer’s loyalty is strongly associated with




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customer satisfaction. A satisfied customer will keep coming back for consistent and desired

service or value worth his hard earned money. Store loyalty is explained as the outcome of

several customer processes: as a 'time-saver' effect – a rational allocation of effort given

available time and money, control by the environment, attitude to the store and a propensity for

routine. The first was not well supported; there was evidence in favour of the last three.

Binninger in her research states that store loyalty is influenced by retail brand satisfaction.

Satisfaction and loyalty share a moderate effect relationship as attitude towards retail brand

products. This moderate relationship is greater for strongly established brands as compared to

that of weakly place brands.

Thus there’s a severe competition amongst similar kind of service providers, brands and products

to give their best so as to survive in their industry domains with excellence. Customer loyalty can

be classified towards brand, product or service category and the store or retail outlet. Customers

get influenced by number of factors in making their purchasing decisions. One amongst this is

the store loyalty. Customers look for convenience in shopping and their overall shopping

experience keeping mind that their most valued time is less consumed in the whole process.

Customers prefer shopping certain things from their fixed shops or retail outlets only, this may

be due to fair prices, quality of product or service or it may be due to the friendly and prompt

way of handling customers and their payments by the stores. This study considers store loyalty,

brand loyalty and product category loyalty as dimensions to be analyzed when the desired

product is out of stock at the store where customer usually shops, meaning he gives preference to

the shop store over others. In this research the brand is Huggies diapers and its categories are

pant style diapers and taped diapers. Only those customers are targeted who purchases Huggies

diapers pant style diapers as our sample for study.

Objectives of the Study

To study the impact of customers’ needs urgency levels on their store loyalty in out of

stock situation.




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To identify whether parents are ready to compromise on their baby’s sanitary wares and

hygiene and if so to what extent.

Research Methodology

Hypothesis

1. Brand loyalty is more with respect to product category loyalty in urgency states.

2. Brand loyalty is less than store loyalty in convenience state.

3. Store loyalty is high as compared to product category loyalty in convenience state backed

by emergency.

Sample Selection – Random sample of 100 is taken

Data Collection

Primary Source: Questionnaires filled in person with customers arriving at Medical

Store in residential locality in Navi Mumbai, Maharashtra.

Secondary Source: Internet and Published – Electronic / Printed

Period of Study

Actual survey was undertaken in the month of January - May, 2016.

Tools used

Survey Monkey is used foe data collection,

Microsoft Excel is used to generate graphs and other data entries.

Limitations of the study

Sample was taken on a random basis and was not stratified sampling which could have given

more precise results. There is a possibility of error in results based on this. Also the sample was

confined to Navi Mumbai only, thus it is location specific as well.




53 | P a g e

Analysis and Interpretations

CASE I: EXTREME EMERGENCY

You do not have even a single diaper at home for your baby.

Out of Stock at Store 1

85% Huggies diapers customers will switch store for purchase of diapers if it is out of stock at

regular store, 4 % customers will switch the Huggies diapers product category from wonder

pants to taped diapers.11 % customers will switch the brand all together. None of the customers

from our sample size was ready to postpone their purchase from the same store even by a single

day.


Out of 85 % customers who switched to store 2, 60 % purchased from store 2 while remaining

25 % customers returned back to store 1, out of which 18 % customers switched to taped

Huggies diapers product category and 7 % switched the brand all together. (Refer figure 1)

Figure 1: Percentage distribution of Customers for Case I (HGD*- Huggies Diapers, OFS*- Out

of Stock situation)

Inference

In extreme urgency case, store loyalty does not weigh much as compared to the brand

loyalty backed up with the preference to desired product category.

85%

4%11%

EMERGENCY

Store Switching - HGD customers will switch store in case of OFS at store 1

Switch of Product Category -HGD pant style customers will switch to HGD taped diaper




54 | P a g e

If Huggies diapers are out of stock at store 2 then greater number of customers prefer

switching to brand category than to switch to other brand completely.

Almost 60 % of customer business is lost if Huggies diapers are out of stock at other

store as well which is a significantly high figure as compared to the customers who return

back to store 1 which is just 25 %.

Since, brand loyalty is given greater preference as compared to product category loyalty we

accept the null hypothesis as Brand loyalty is more with respect to product category loyalty

in urgency states.

CASE II: CONVENIENCE

You have one to two diapers at home and can wait for another day to purchase.

In this case due to customer’s state of convenience, the percentage of people postponing their

Huggies diapers purchase from the same store is extremely high, i.e. 76 % while, 0 % of the

customers will switch to product category and 21 % customers will switch the store for purchase

although there is no urgency of the diapers. (Refer Figure 2)

Figure 2: Percentage distribution of Customers for Case II (HGD*- Huggies Diapers, OFS*-

Out of Stock situation)

21%

2%

76%

1%

CONVENIENCE



Postponing Purchase - HGD customers will postpone their purchase from the same store

(Brand Loyalty) > (Product Category Loyalty) > (Store Loyalty)




55 | P a g e

Inference

Store loyalty peaks up when a customer can wait for a day in case of out of stock

situation.

None of the Huggies diapers customers is ready to switch to other brand.

Since, store loyalty is given greater preference as compared to brand loyalty we accept the null

hypothesis as Brand loyalty is less than store loyalty in convenience state.

CASE III: CONVENIENCE BACKED BY EXTREME EMERGENCY

You have one to two diapers at home but do not have time to make the purchase in coming 2-3

weeks due to some reasons.


93 % Huggies diapers customers will switch store for purchase of diapers if it is out of stock at

regular store. 5 % customers will switch the Huggies diapers product category from wonder

pants to taped diapers. 2 % customers will switch the brand all together. None of the customers

from our sample size was ready to postpone their purchase from the same store even by a single

day.


Out of 93 % customers who switched to store 2, 75 % purchased from store 2 while remaining

18 % customers returned back to store 1, out of which 10 % customers switched to taped

Huggies diapers product category and 8 % switched the brand all together. (Refer Figure 3)

(Store Loyalty) > (Brand Loyalty) > (Product Category Loyalty)




56 | P a g e

Figure 3: Percentage distribution of Customers for Case III (HGD*- Huggies Diapers, OFS*-

Out of Stock situation)

Inference

In convenience backed by extreme urgency case, store loyalty does not weigh much as

compared to the brand loyalty backed up with the preference to desired product category.

If out of stock situation is at store 2 then greater number of customers prefers switching

to brand category than to switch to other brand completely.

Almost 75 % of customer business is lost if Huggies diapers is out of stock at other store

as well which is a significantly high figure as compared to the customers who return back

to store 1 which is just 18 %.

Since, store loyalty is given lower preference as compared to product category loyalty in

convenience state backed by emergency we reject the null hypothesis and accept the alternate

hypothesis as Store loyalty is low as compared to product category loyalty in convenience

state backed by emergency.

Interpretation of regained & lost business

Research figures (Refer Figure 4 and 5) show that in case of emergency the business lost by the

store is 60% while regained business is just 25 % out of which 18 % customers change their

95%

3% 2%

CONVENIENCE BACKED BY EXTREME EMERGENCY



(Brand Loyalty) > (Product Category Loyalty) > (Store Loyalty)




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brand category i.e. from pant style to taped diaper and 7% switch to another brand. In case of

Convenience there is no lost business and store marks 100 % customer loyalty. In case of

convenience backed by emergency the business lost by the store is 75 % while regained business

is just 18 % out of which 10 % customers change their brand category i.e. from pant style to

taped diaper and 8 % switch to another brand.

Figure 4: Regained Business by initial store

Figure 5: Lost Business by initial store

Conclusion

Generally, in out of stock circumstances customers tend to show loyalty towards brand first, then

product category and at last towards store. Customers show high store loyalty levels only when

their need is not influenced much by time constraint.

01020

EMERGENCYCONVENIENCE

CONVENIENCE BACKED

BY …

Product Category Switch 18 0 10

Brand Switch 7 0 8

180

107 0 8

Customers Returning to Previous Store

Product Category Switch Brand Switch

020406080

EMERGENCY CONVENIENCE CONVENIENCE BACKED BY EXTREME

EMERGENCY

60

0

75

BUSINESS LOST BY STORE




58 | P a g e

Scope for further research

Further research can be carried out considering some brand of use to adults along with baby

diaper and a comparative analysis of baby diaper customer loyalty and adult product customer

loyalty with respect to store, brand and product category. This kind of research attempt will let

the researcher to study and differentiate key reasons behind the customer’s psychology of

purchase.

References

Anne S.B, 2008, Exploring Relationships between retail brands and consumer loyalty,

International Journal of Retail & Distribution Management, pp. 94-110

Muhammad J., and Abdul R.K., 1999, Store Image and Store Choice Decision: An

Investigation of Consumer’s Shopping Behavior in Malasiya, AAM Journal, 4 (2), p. 70

Robert E., Kathy H., Patricia H., Wendy L., 2010, First Store Loyalty and Retention,

Journal of Marketing and Management, 16(4), p307.

Sara G., and Erica L., 2005, Customer Loyalty, http://epubl.ltu.se/1404-

5508/2005/184/LTU-SHU-EX-05184-SE.pdf. Accessed 20 May 2016




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IMPACT OF INFORMATION TECHNOLOGY AND MANAGEMENT EDUCATION

ON TODAY'S GENERATION

Prof. Pooja Vaidya*, Dr. G. Y. Pathrikar**

MGM Organization, Aurangabad

[email protected]*

Abstract

The field of information technology and management education has experienced many successes

over the years. Most schools have computers and Internet access for both students and faculty.

However, the faltering economy and a series of "no significant difference" research studies have

caused the public and educational policy makers to question the advisability of continued

investment in educational technology. The article suggests that one reason for less-than-

encouraging to find too many ideas that have improved different level in different sectors.

The part of Information Technology and other part Management have played their individual

roles in the development of education of today’s generation.

Introduction

Education is related to learning which includes the knowledge, skills, and habits of a group of

people are transferred from one generation to the next through teaching, training, or research, as

we say generation to generation it means from ages...!

As we are moving towards next generation both Information technology (IT) and Management

Education is keeping us on changing and updating our future to reach our goal easier.

Technology is usually referred as a study of making, modification, usage, and knowledge

of tools, machines, techniques, crafts, systems, and methods of organization, in order to solve a

problem and also to improve a pre-existing solution to a problem so that, goals can be achieved

where as Information is message that is to be conveyed.




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So, Information Technology is an application of computers and telecommunications

equipment to store, retrieve, transmit and manipulate data, often in the context of a business or in

other enterprise.

There are several industries that are associated with information technology, such as computer

hardware, software, electronics, semiconductors, internet, telecom equipment, and e-

commerce and computer services. They have also introduced two different streams or

components in Information technology i.e. IT services and Business Process Outsourcing (BPO)

including Knowledge Process Outsourcing (KPO).

Management is mostly related to business and organizations that means to coordinate the efforts

of people to accomplish goals and objectives using available resources efficiently and

effectively. Resourcing encompasses the deployment and manipulation of human resources,

financial resources, technological resources, and natural resources Management comprises of

planning, organising, staffing, leading or directing, and controlling an organization or initiative

to accomplish a goal.

During a very short span of time it has acquired an important place in almost all aspects of

human life and particularly in the field of education and management. At the same time

globalization has opened the doors wider to alien influence. This has intended to involve all

walks of life e.g. industry and commerce, banking and insurance, finance, revenue,

communication, media, human resource development, defence etc.

Here, we can say that both Management and Information Technology go hand in hand to achieve

the goals for the future through different ways by having knowledge of technology, skills of

using gadgets which are being introduced by scientists and inventors.




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Impact of Information Technology in Educational sector in today’s generation

During this time, proponents of information technology have experienced many successes.

Across the globe, computers are ubiquitous in nearly every walk of life. The Internet and the

World Wide Web have revolutionized communication and made it simple, also complex

information are instantly available to the millions of people. The efforts were seen only when the

technology was introduced in the educational field, which was began almost at the same time

when the small computers began to appear. It was also the time to explore the potential of

technology to redefine the terms of teaching and learning, which has been used by the tools of

technology to break the barriers to educational field.

They introduced technology to the people of different fields from education sector to service

sector like schools, institutes, colleges, companies, banking etc., which was started with basic

knowledge of computer and their related technologies that was started from country – country,

state –state, town –town and village –village to upgrade skills of professional to non-professional

people.

Now a day’s in educational sector we are using different ways to learn and teach ourselves new

things. In schools, colleges they are teaching about the latest technology and gadgets which

being used in day to day life like electricity, fan, refrigerator, washing machine, air conditioner,

microwave, heater, television, computer or laptop, mobile phones and iPods etc.

If we consider one by one of above gadgets which are been used regularly in our day to day life

like,

Electricity – it is a very important on which gadgets works and also the human requirement

works.

Fan – fan is a gadget which gets us air inside room or hall. The fans are fitted on roof or placed

on side wall. They are useful for people to live in very hot. Whenever you feel hot you just need




62 | P a g e

to switch on the fan. Fans are even made portable. Portable means you can carry away fans with

you anywhere. Fans can even be fitted in cars.

Refrigerator – refrigerator is used to make the eating things cold. If vegetables and fruits are

stored in refrigerator then it keeps your fruit and vegetables healthy for some more few days.

You can keep water, juices, drinks etc in it to make it cold. There is deep freezer allocated with it

which makes eatery things or liquid things ice. Getting cold things or drinks in summer is

extremely necessary.

Washing machine – It is used to minimize the work of ladies. They need to wash clothes daily

of all family members. In today’s world it is quite a common thing that ladies or women are

working or doing job so they don’t get time to wash clothes or they get tired of lots of work.

Washing machine helps them wash their clothes. They just need to make some command

selection on it and then it washes the clothes. You need not to stand there, you order they

complete their work. You can get other works till then.

Air conditioner – air conditioner are also known as AC. It is used to make the place cold. You

just need to get it fitted properly. Once you get it fitted it makes that place cool or cold whenever

you start it.

Microwave – a gadget again for ladies use but, now a day’s it’s also been used by males. It is

used to make eatery things get hot. The improved or new microwaves even help making you the

food. You just need to make some command selection and then it starts working.

Heater – they are of two types one, it is normally getting fitted in bathrooms. It is used to make

cold water hot. Whenever it is winter season, it is impossible to get a bath with cold iced water.

So starting of heater leads you to get a bath with hot water. Heater converts cold water to hot

water and other which are used as room heaters where room temperature can be warm during

winter seasons automatically.




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Television – it was a box in early days which used to get people knows through the news of the

world. Now the television boxes had got slimmer and are known as LCD and LED. It works

same but got better. There are HD visions available now. HD means high definition. It gives you

the best clarity for seeing channels. The television includes watching news, serials, movies,

reality shows, cookery shows and lot more.

Computer or laptop – computer is a gadget used for many purposes. Initially it was the gadget

which was used for some specific works done at particular place only. But now it is something

which is expanded a lot. We can almost do anything in it. We can contact people sitting far away

from us by internet. Keep records of almost everything going in world? Computers are not

portable. Laptop an expanded version of computer having everything same but the difference is

laptops are portable. Laptops are even smaller in size then Computer does not have CPU

connected with it. CPU is just an inbuilt functionality in laptop.

Mobile phones – it is rapidly updating gadget. A mobile too is getting updating with all features

in it. You can make calls, send messages, listen to radio or downloaded songs, use internet, can

operate lots of different accounts, play games, watch videos etc. It’s a mini computer. The

question is what cannot be done on mobile and the answer never ends.

IPod – IPod a gadget that is used to hear music. You just need to download your favourite songs

and music on it. It is a portable gadget and also very small in size. You can carry it away with

you in your pocket only. Ear phones are used to hear songs from it. A lot of different ranges are

available. The storage capacity depends on your purchasing instrument.

These are some gadgets which made many changes in our day to day life. As this only one part

of life and other if we speak it is none other than about education, its lots more because of

scientists and inventors who have invented the above gadgets they have told us go on learning

about new technology which made us easier to understand.




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With technology and the availability of Internet with 3 W’s in the educational sectors, an entire

world of information is opened for the students. There is No longer restricted to outdated

textbooks or the knowledge of the teacher, the students have access to the world's most up-to-

date and relevant information from diverse global sources. They also have access to sources with

a more exciting or interactive approach to the subject by using required gadgets which are

available on the cheaper rates. With experience, students learn to quickly distinguish between

reputable and non-reputable sources, enabling them to glean large amounts of information in a

short time. Having a mobile phone and other gadgets has eased the communication between the

teachers and the students. If the teacher is absent, the students can easily ask other teachers to

teach them during the free period or they can learn from e-book, the internet or educational

software. Thus we can say that students will make full use of their time instead of wasting it. The

constantly evolving nature of technology encourages students to work collaboratively to find

information and complete projects. It also facilitates peer tutoring, with the quicker and more

adept students taking over a teaching role to help the weaker students. The vast amount of

information and possibilities in technology invites students for discussion, who are quick to

comment on others’ work and ask for feedback on their own. Technology in the classroom

encourages the sharing of knowledge and skills among students with disparate backgrounds and

abilities, and thus has a unifying effect on classmates.

The Department of Education study on technology and education reform found that mastery of

technology is a significant source of increased self-esteem and self-confidence, particularly when

students use their knowledge to help other students. Students realize how important technology is

to future success; thus, technical aptitude can become a crucial motivator. It has also noted

among students a stronger tendency to stay on task and reduced behavioural problems when

students are engaged in an activity that utilizes technology. Technology has none of the barriers

of traditional teaching methods, such as lecturing, which is typically structured toward a specific

learning style. It caters to virtually every learning style. With technology, students have the

option of learning visually, textually, through auditory means or even with a hands-on approach,

manipulating physical objects instead of simply watching or reading about them. One student




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may extract understanding from a well-written article online, while another may get the same

information from a YouTube video. Teachers now have far more flexibility in their lesson plans

along with resources for reaching and engaging every student. With so many technological

options available to accommodate different learning styles, the chances for student success

increases significantly by managing them.

Impact of Management Education in today’s generation

As we say management, then in every walk of life management plays an important role. Where

management is needed every where whether its business or any goal to be achieved by any one.

If we talk about goal or an achievement it is to be achieved by some proper management. We

have learnt about management from the first step of our life and will be learning till the end of

our life.

Management is observed in studying any subject or any simple novel or project, to retrieve any

information of business, or any inventory of a factory. Management can be use in different

phases i.e., forecasting, planning, organising, staffing, leading or directing, and controlling.

Forecasting – it can be past and future of organisation or life.

Planning – It can be studying any project or having new firm in some location.

Organising – it can be resources required for the achieving the goal of organisation or life.

Staffing – people who support in organisation or life to achieve the goal.

Direction – the way to reach the destination.

Controlling – this can be ups and downs of organisation or life.

Management education is going through changes. It is been used in factory operations, quality

control, inventory control, looming planning, human resources, sales and orders. So, the

changing scenario of world, it has offered students more openings, greater self- confidence and

also out of the box ways to better hone their skills. The current trends include internationalisation

with increased focus on international partnerships, international internships, student exchange




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programs, joint degrees etc. Also, the use of new technologies in management teaching is a trend

that is catching up fast. Greater use of the social media to establish connection with students is

on the rise.

Here we can whether it is organisation or life, management is necessary to reach any goal.

So, that if we look back we also find some positive energy.

Conclusion

To conclude here I can say that both Information Technology and Management are moving to

high point in the educational sector and also making many changes in life to achieve the goal.

Both professional and non-professional people are learning and teaching themselves both

Information Technology and Management. This has made the graph to rise up so that people of

every corner is well known to latest technology.

Here in Educational Sector the students are moving faster to achieve the goal and most important

they do not stop for anyone to reach their goals. The students are placed at the highest position as

per their talents shown by them at each and every level of life.

Reference

DR. B. Rathan Reddy, Effective Human resource Training & Development strategy

Davis L Michael W. A Management Approach

Impact Of Information Technology On Management education Through Distance Mode

by Dr. Kapil Dev sharma

Information technology in day to day life by Kiran R.

Information Technology in Education: The Need for Skepticism Mr. Cleborne D.

Maddux.

Human Resource of Planning and Development by Dr. L.M Prasad, Human Resource

Management

Wikipedia of Education, Technology, and Management.

VISHLESHAN INTERNATIONAL JOURNAL OF ENGINEERING & MANAGEMENT

(VIJEM), ISSN (ONLINE): 2455-524X

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