RESEARCH REPORT

A STUDY ON IMPACT OF SHOPPING MALL ON UNORGANIZED RETAIL SECTOR WITH SPECIAL REFERENCE TO MEERUT REGION
FOR THE PERIOD 2012-2013

TO BE SUBMITTED TO MAHAMAYA TECHNICAL UNIVERSITY, NOIDA U.P. IN THE PARTIAL FULFILLMRAENT OF THE REQUIREMENT FOR THE DEGREE

OF

MASTER OF BUSINESS ADMINISTRATION

Batch 2011-13

Name of the Supervisor:

Mrs. Soniya Chaudhary Asst. Prof.

Name of the Student

Mohit Tyagi

Roll No: 1122970017

VIDYA COLLEGE OF ENGINEERING Baghpat Road, Meerut, Uttar Pradesh 250005

Certificate by Head of the Institute

It is certified that the Research Project Report entitled A STUDY ON IMPACT OF SHOPPING MALL ON UNORGANIZED RETAIL SECTOR WITH SPECIAL REFERENCE TO MEERUT REGION to be submitted in partial fulfillment of the requirement for the degree of Master of Business Administration, Mahamaya Technical University, NOIDA, is original Work of Mr./Ms (Mohit Tyagi Asst. Prof. Roll No: 1122970017) carried out under the Guidance of Prof. (Mrs. Soniya Chaudhary ) as Faculty Mentor. The report is original and complete in all respect and fulfills necessary requirements of the
University.

Faculty Mentors Name and Signature

Dr. R.C SINGH (Director) Date:

DECLARATION
I Mohit Tyagi, do hereby declare that the Summer Internship Project Report entitled A STUDY ON IMPACT OF SHOPPING MALL ON UNORGANIZED RETAIL SECTOR WITH SPECIAL REFERENCE TO MEERUT REGION is the original work carried out by me Under the Faculty Mentor Mrs. Soniya Chaudhary The information provided here is genuine and True to best of my knowledge. Any part or as a whole Report has not been presented or submitted in any other institution/University for any Diploma or Degree here before. A company's ability to turn short-term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.

Date: Place: Meerut Session: 2012-13

Name: Mohit Tyagi Roll No:1122970017

ACKNOWLEDGEMENT It gives me immense pleasure to express my indebtedness and deep sense of gratitude to my Faculty Mentor Mrs. Soniya Shaudhary. Vidya COLLEGE Of engineering, Meerut for his valuable and scholarly guidance. His sympathetic and helpful attitude and motivation helped me to work on this dissertation. I am extremely grateful to Dr. Satish Kumar, Director, Vidya COLLEGE of engineering, Meerut for having extended his guidance during the course of this Poject work. I wish to express my sincere regards and heartful thanks to Mr Aniruddh ghosh. Class

Coordinator and Prof. ANUBHA RASTOGI, Cordinator , Research Internship, Vidya COLLEGE of ENGINEERING, for their Guidance and cooperation that enabled me to complete this Summer Internship. I am extremely thankful to Mr P.K Pathak, Librarian, & Ms. Pawan Kumar, Asstt. Librarian of this college for gracious cooperation in making this Summer Internship Project Work a Meaningful. This acknowledgement would be incomplete without grateful mention of all the people who provided various information as when required and I had approached to them. I also express my heartfelt gratitude towards all my classmates who have helped, assisted, and motivated me time to time during my Internship period. Last but not the least; I thank ALMIGHTY for His blessings. Name of the student: Mohit Tyagi Roll No:1122970017

Introduction of Book Publishing Industry

The publishing industry in India is defined by a vast set of variables. To understand its intricacies, one cannot simply come up with a figure for market size and growth rate. In fact, for such precise figures one needs sufficient customer data. At this point, such data is missing and in reality the book publishing sector alone might be much bigger than the current estimates of Rs 80 billion. This is one of the reasons why John Makinson, a former journalist with The Financial Times, Chief Executive of Penguin group since 2002, calls publishing in India a step in the dark.

Like most industries, publishing is also driven by its customers. Research about what the readers like, how they make their buying decisions and how much theyre willing to pay for a book are questions a publisher in India cannot avoid. The publishing industry in India is largely reader driven. The good news is that the reader base in India is growing. However, the pool of established writers is still limited. Those new on the horizon are finding it difficult to go beyond selling a few hundred copies. Only a handful of titles such as Chetan Bhagats book and Gregory David Roberts Shantaram go beyond the 3 lakh copies sold mark. There are also others in the category of 1 lakh copies, such as The World is Flat, Freakonomics etc.

In the past decade, publishers have directed their efforts to target the mass audiences, the common Indian reader who likes it simple and cheap. What the Indian reader is reading is a question to ponder on. A recent survey by NBT / NCAER Survey, of readers between the ages of 13 35 years of age in India finds that of the 83 million youth readers (comprising 25% of the youth population), fiction is the most preferred genre among 42% of the youth followed by nonfiction for 24%. Fantasy, comics and classics are the three most preferred genres of fiction, and the least preferred are romance and graphic novels. When it comes to non-fiction, religious/spiritual texts and biographies/autobiographies are the most preferred.

In this first micro-book in the series, Britanie Wilson and Jeremy Lucyk flesh out a comprehensive picture of the development of the book-publishing history in English, the world over. A super-compressed history of the industry, an introduction to the evolving book-consuming culture, and a tour of work in this ever-vibrant field, A Very Brief History equips students with a practical understanding of how book publishing has been and is being done. .

Starting from the buying and publishing patterns since before World War II, the authors trace the development of corporate houses and multinationals, the birth of new formats, from paperbacks and trade paperbacks to ebooks, and the rebirth of indie publishing houses. In this treatment, the authors distill a tremendous amount of research and arrive at an exciting conclusion: that no single sector of publishing--corporate or independent, educational or trade--can prophesize much less decide the new forms that the book, the reading culture, and the industry will take.

This book, along with others in this series, is essential reading for anyone considering a career in the book-publishing industry. And it will upgrade the understanding of those currently working or training to work in the industry.

Book publishing has been defined and discussed by various authors. Granis (1967), defined it making public-to send forth among the people-the words and pictures the creative minds have produced, that editors have worked over, that printers have reproduced. He further explained it as a formidable succession of activities no one of which can by itself, be called publishing. It is only when a manuscript has been transformed into a book and then distributed to its intended market place, that the process of publishing is complete. Lee (1979) defined publishing using its characteristics. According to him, there are three crucial components of book publishing. They are: book editing, book design and book production. Methodology This research consists of secondary (internal files and reports, lists and catalogues of publications) and primary data (interviews asking open-ended questions). Early History of Book Publishing The very first printing press was established in Calabar in 1846 by Rev. Hope Waddell of the Presbyterian church of Scotland Mission. The press was used to print Bible lessons and later arithmetical books for COLLEGEs. (Ajibade 2003) In 1854 another missionary based in Abeokuta, Rev Henry Townsend of the Church Missionary Society (CMS), established a press. Five years later, (1859) he used it to print the

very first newspaper Iwe Irohin. From that effort grew what we know today as the CMS Press, which has published thousands of books in Nigeria. Background to the Study Onibonoje Publishers is located at Felele layout, Molete area Ibadan. Onibonoje was established in 1958 by Mr. Gabriel Omotayo Onibonoje. The company celebrated her 50th anniversary in 2009. It was started as a family venture, one man business otherwise known as sole proprietorship (Company owned, financed and managed by an individual. The person decides on everything. This company is likely to have limited funds and personnel); with eight (8) persons and later grew to one hundred and fifty workers (150). Due to the politics of neo-colonial publishing, Onibonoje Publishers philosophy is to promote indigenous authors and talents. To provide reading materials relevant to the Nigerian context; reading materials that enhances our curriculum, cultural values and indigenous language. The country's 1989 constitution, deals with the educational objectives of state policy. The sub-section 19(4), says simply that "Government shall encourage the learning of indigenous languages." The policy mandated the teaching at the Primary and Junior Secondary COLLEGE levels of the child's mother tongue or, in the alternative, some indigenous language of wider communication in his place of domicile The company publishes educational books to cover: Pre primary, Primary and Post primary levels of education. Books to assist in both teaching and learning process; covering the entire curriculum .The company usually strives to identify Nigerians who are highly skilled and talented writers. Onibonoje has devoted both time and resources in publishing mostly COLLEGE books. The company has only one office in Nigeria. It has a chief executive officer CEO, who is in charge of all operations; technical and administrative. All other persons report to him. Apart from the managing director (MD), who acts in the absence of the CEO. Other units include technical services, personnel, editorial and accounts. The company has since inception to date published about eight hundred (800) titles in subjects like Accounts and Book keeping, Business studies, Commerce, Economics, Home economics, Civics, Citizenship education, Geography, Government, History, Social studies, Agricultural Science, Biology, Chemistry, Mathematics, Statistics, Physics, Creative Writing, Literatures, Yoruba, Creative arts, Christian Religion Knowledge (CRK), Education, Social Studies, Health Education, Family living, English, and junior African Literature. Attached are comprehensive copies of the companys publications The company has produced textbooks which has and still supports the educational curriculum of the country. Considering when it was established, at the time when the Nigerian child had to make do with foreign or totally Christian literature. Onibonoje came up with literature with African aesthetics. In this regard, Onibonoje can be said to have promoted and still promotes literacy since it can boast of 60% output of publishing, in indigenous languages.

Challenges A SWOT analysis will enable us to identify (at a glance) basic problems and possible opportunities. The SWOT (strengths, weaknesses, opportunities and threats) analysis is a technique used by organizations to appraise in details, its internal working in order to come up with ways to improve its operations by building on its strengths, eliminating its weaknesses, exploiting the opportunities and avoiding the threats. In doing so, it would identify critical factors that can affect its operations and will be able to plan for the future. Strengths Weaknesses Severe infrastructural problems Undercapitalilised Inadequate knowledge about the local syllabus No clear objectives of the type of Qualified and highly experienced staff publications office equipment and space No marketing programme No clear cut budgeting Insufficient staff Too few titles published The company is old but not widely known Threats

Opportunities

Law to teach vernacular in COLLEGEs in all primary and secondary COLLEGEs Proliferation of primary, secondary and tertiary institutions in the country. Advocacy of reading culture

The problem of bribery before getting books recommended by ministry of Education Bookshops are not willing to stock nonrecommended books Piracy Preference for imported textbooks

Problems of Book Publishing

Severe infrastructural problems:

At the time of this research, there was no stable electricity; the interviews disclosed that they could not even remember the last time there was power supply from the Power Holdings Company of Nigeria (PHCN). From observations, the only surviving generator they have may soon pack up due to age and over use. Power cuts are rampant in all urban centres, and several non-metropolitan areas lack electricity supply entirely. While examining the problems of Nigerian publishing with special focus on NEPA, NITEL, and NIPOST. Adesanoye (1995) has named the three as partners in inefficiency. Nigerian government promise to generate 6,000 megawatts of electricity by December 2009, is still an illusion for now and Nigerians still dont enjoy electricity supply. In 2009 several industries had to move out of the country to other neighboring countries for reasons bothering on

this issue. Publishers are therefore are faced squarely with the high cost of running generators for its day to day activities.
Lack of a marketing programme:

There is the problem of information on books published in the continent. Adebisi (2009) stated with disappointment that the main challenge facing the publishing industry in almost all African countries was the dearth of information on whats being produced. Lack of reliable data on a number of titles published annually in different categories was also identified as one of the factors not helping the industry to advance for a larger share of the market in educational books. He charged APNET to take this up as an urgent responsibility to build the expected capacity. If book sellers and buyers are not aware of the existence of a particular book, how can such a book be stocked and bought. The internet which is now been used widely in developed countries to advertise and sell books is still a luxury item which is out of reach of the majority in African countries.
Self Publishing:

The self-publishing option is one in which the author manages the overall publishing, distribution and marketing processes him/herself. This option gives the author much more personal control of the whole process and allows him/her to earn more money per copy than through a commercial publisher. It also involves a lot of work by the self-publisher who is responsible for performing all of the functions and services that a commercial publisher would normally look after. This model is normally less time-consuming in terms of elapsed time, since there is no manuscript submission and approval process involved. On average, the self-publishing process can save 6 to 12 months over the commercial publisher model. Self publishing leads to too many mediocre books being published and Minimal marketing support for the vast majority of books being published
Undercapitalilization:

Onibonoje book publishing company opens only between Monday-Wednesday (three days), as a measure to cut cost.As at the time the time of this research, the company has only twelve 12 staff, compared to its initial start off of 350 members of staff. There was staff downsizing; also a measure to cut cost.Owing largely to the drastic devaluation of the naira.. The purchasing power of the majority of consumers has fallen drastically. Nwankwo (1993), states that crisis and business do not go together, more so when the economic environment is already traumatized. Crisis is the situation in which Nigeria has been. Business, particularly that of publishing had anything but fun since then. Odozi (2009) observed that when faced with the large problem of financing a major book project, the publisher cannot but apply to banks for loan; in a depressed economy like Nigerias, the chargeable interest is fixed at 17% . Due to undercapitalization, Okilagwe (1996) foresees that the book publishing industry will continue to record stunted growth.

Substandard production:

It is no longer news that publishers in Nigeria have resorted to the use of low-grade materials (e.g.newsprint instead of high grammage wood-free paper) in book production while editorial and design proficiency have declined drastically due to inadequate training facilities. There are now many instances of books published in the country, even those produced by some of the major publishing houses, where pages are not straight and are smudged with large blobs of ink. Uneven print density and print images, barely legible half-tones, poor finishing/binding and various other production flaws are now common in Nigeria . The majority of books produced in the country do not meet internationally acceptable standards in physical and visual quality, or in the quality of content.( Ifaturoti, 1997)
Inadequate productivity in paper mills:

There are three pulp and paper mills in Nigeria with a total installed pulp capacity of 102,000 mt per annum and a paper capacity of 207,000 mt per annum. Since 1990, the production of newsprint had been declining from 31,000 mt out of an installed capacity of 100,000 mt per annum, to only 3,000 mt, in 1993. The Nigerian Newsprint Manufacturing Company (NNMC) had remained shut since 1994, due to problems of spare parts and other logistic problems. The Nigerian Paper Mill (NPM) at Jebba produces industrial grade paper, specifically kraft and kraft linerboard. The old paper machine had a capacity of 12,000 mt but since 1994, a new machine with capacity of 65,000 mt has gone on stream. Production of paperboard in 1990 was 12,498 mt and declined progressively to 2313 mt in 1992 from where a gradual up turn began. Paperboard production by 1996 was 19,744 mt and production had remained at this level. The third mill is the Nigerian National Paper Manufacturing Company Ltd (NNPMC) Iwopin with a proposed installed capacity of 100,000 mt/yr of printing and writing paper. After a protracted history of delays only 30,000 mt/yr of printing and writing paper was installed by 1995. Test production with imported pulp resulted in 2,500 mt of printing and writing paper in 1995 and 966 mt in 1996. Production has not increased appreciably from this mill ever since. The production in the pulp and paper industry has been constrained by inadequate working capital, spare parts and long fiber availability.
Book reading culture:

Atinmo (1998) traces the cultural and linguistics factors responsible for lack of reading for leisure among the neo-literates. She attributed the poor reading habits of such people to the entrenched oral forms of social communication, and noted that even such people wanted to read, it would be difficult for publishers to meet the reading materials needs of small populations whose local languages might not exist in written forms. Adegoke (2001), observed "that the majority of people who are literate hardly read for pleasure. Students for example, tend to read just to pass their examinations, many hardly read books outside their disciplines. Nigerian graduates of all levels are often not really information literate and /or sophisticated

Okwilagwe (2001), disagrees with all the afore mentioned. He says, "Nigeria has a good reading culture and Nigerians buy books." he further buttressed that Nigerians are mostly utilitarian users of book. Piracy and copyright in the electronic age: Echebiri A. (2005) says there is an alarming growth of book pirates in Nigeria. He went ahead to say that "Nigerian book pirates are even now known to employ sales representatives of their own and often time succeed in selling books to, and oftentimes unsuspecting or willfully colluding COLLEGE officials." Okwilagwe (2001) opines that books are not adequately available for purchase in Nigeria and that this is the genesis of book piracy and photocopy activities in the country. Recommendations and Conclusion In view of all identified challenges and considering the prospects of book publishing in Nigeria, the following is recommended: Paper mill: Government should establish other paper mill other than the three mills in Nigeria (Jebba for industrial paper, Oku-Iboku for newsprint and Iwopin for wood free paper) are facilitated to produce to their full capacity. Possibly, these three paper mills should be privatized.

INFRASTRUCTURAL DEVELOPMENT: The infrastructure in Nigeria should be developed to the level required to sustain the publishing houses. In the meantime, governments and policymakers in these countries should be putting in place an environment to enable their local book publishing industries recover from the recession. ADOPT NEW TECHNOLOGIES: Many of the established publishing houses in African publishers should turn to the new technologies on the internet for their publications. It is unwise to wait for nine to twelve months for a book to be published. This undue delay can lead many to self publishing since it is easy to publish on the web without delay. BOOK EXPOSITIONS AND READING CAMPAIGNS: There is high need to regularly organize book expositions and reading campaigns. Governments in Nigeria should create favourable book publishing atmosphere which will impact meaningfully on book development.financial support should also be be given to publishers.

In conclusion, this paper has highlighted the pivotal challenges faced by book publishers in Nigeria. To contend with these problems, publishers need to make serious commitment to invest and develop the indigenous book market; the government needs to attach more strides to support small and struggling publishers with financial subsidies, it also needs to apply more efforts at promoting literacy and the reading culture. Until then, book publishing will continue to face hardships.

Introduction of National Book Trust, India

Established in 1957, the National Book Trust, India, an autonomous organisation under the Ministry of Human Resource Development, Government of India is a highly professional multilingual publishing house working towards the promotion of books and developing reading habit among the masses.

Publishing forms a major activity of the Trust. It publishes a wide variety of reasonably priced quality books ranging from works of fiction to books on Medical Sciences and cutting edge technology for all segments of the society and for all age groups, including a wide variety of illustrated books for children. Over the years, the Trusts determined efforts in developing a strong and inclusive policy towards publishing is also apparent in the variety of books published for visually handicapped and the neo-literates.

The Trust publishes books in 18 major Indian languages, which includes Asamiya, Bangla, English, Gujarati, Hindi, Kannada, Kashmiri, Malayalam, Manipuri, Maithili, Marathi, Nepali, Odiya, Punjabi, Sindhi, Tamil, Telugu and Urdu. In addition to this, the Trust has also published books in Bhojpuri, Himachali, Kokborok, Khasi, Garo, Lepcha, Bhutia, Mising Limboo, Mizo, Newari, Bodo, among others.

During the period under review 2314 titles were published by the Trust. These included 148 originals, 168 translations, 1996 reprints and 2 revised edition. Besides, 240 Braille editions were published in Hindi, English, Marathi, Malayalam, Kannada, Tamil and Gujarati.

Over the years, the Trusts publications have earned a distinctive name both for their content and quality of production. This is reflected in the number of awards and distinctions, which the Trust receives from time to time. This year too, two of its publications were awarded the best in their respective categories at an Award Ceremony for Best Publications organised by the Federation of Indian Publishers at Pragati Maidan. These included Learning Science III in Hindi (Second prize in College Textbooks category) and Catalogue: Golden Jubilee Anthologies (Second prize in Price List, Catalogue & Brochure category).

The Trust organises book fairs/exhibitions throughout the country at regional, national and international levels. NBT has so far organised 19 World Book Fairs, 38 National Book Fairs and around 220 Regional Books Fairs.

During the period from April 2010 to March 2011, the Trust organised Amritsar Book Fair (3-11 April 2010); Solan Book Fair (8-16 May 2010); Mysore Book Fair (29 May to 6 June 2010); Indore Book Fair (18-26 September 2010); Bilaspur Book Fair (25 September-3 October 2010); National Childrens Book & Activity Fair (14-20 November 2010); Khammam Book Fair (14-21 November 2010); Rajkot Book Fair (1-9 January 2011); Bathinda Book Fair (1- January 2011); 36th National Book Fair, Ranchi (15-23 January 2011); Digboi Book Festival (22-30 January 2011); 37th National Book Fair, Lucknow (5-13 February 2011); Sivasagar Book Festival (6-14 February 2011), Itanagar Book Festival (19-27 February 2011); Cuttack Book Fair (5-13 March 2011); Dimapur Book Fair (14-20 March 2011); Ambassa Book Festival (14-20 March 2011); 38th National Book Fair, Patna (21-29 March 2011) and Delhi Weekend Book Bazaar (25-27 March 2011).

The Trust also stepped-up its book promotional activities in the North-east through a number of book fairs, literary activities and special sales drive. During the year under review the Trust organized 5 book fairs and participated actively in 7 book fairs held in the region.

In order to promote Indian publishing abroad, the Trust participates in various International books fairs by displaying a cross section of representative Indian publications brought out by various Indian publishers. Since 1970, the Trust has participated in about 317 International book fairs. During the period under review the Trust participated in 7 such International Book Fairs, including the prestigious 14th Nepal Education & Book Fair (6-14 August 2010); Beijing International Book Fair (30 August-3 September 2010); Sharjah International Book Fair (26 October-6 November 2010); Dhaka International Book Fair (1-16 December 2010) Cairo International Book Fair (26 January-6 February 2011); Jerusalem International Book Fair (20-25 February 2011); and Bologna Childrens Book Fair (28-31 March 2011).

One of the significant international events, which the Trust organised, was the Presentation of India as the Country of Honour at the Beijing International Book Fair, held during 30 August to 3 September 2010 in Beijing. The presentation included a special exhibit of over 3500 titles published by more than 26 publishers, as well as panel discussions and cultural programmes. The special exhibit included books on Buddhism, books on and by Rabindranath Tagore, and books on and by Jawaharlal Nehru. In all, nearly 100 member, strong delegation from India comprising some of the major publishers, eminent creative writers from different Indian languages, authors, editors, publishing professionals etc participated in the special presentation by India at BIBF.

The Trust has been trying to make the books available to the people at their doorsteps through mobile exhibitions. So far it has organised more than 11,000 mobile exhibitions throughout the country including the North-eastern states. During the period under report, the Trust organised mobile book exhibitions at about 1662 places in and around Delhi, Haryana, Uttarakhand, Karnataka, Uttar Pradesh, Maharashtra, Gujarat, Orissa, Himachal Pradesh, Madhya Pradesh, Kerala, Assam, Rajasthan, Goa, Punjab, Tamil Nadu, Andhra Pradesh, Bihar, and Tripura. National Book Trust, (NBT) is an Indian publishing house, founded in 1957 as an autonomous body under the Ministry of Education within the Government of India.

Jawaharlal Nehru envisioned that the NBT would be a bureaucracy-free structure that would publish low-cost books.[1] They publish a monthly Newsletter about recent publications. The activities of the Trust include publishing, promotion of books and reading, promotion of Indian books abroad, assistance to authors and publishers, and promotion of childrens literature. NBT publishes reading material in several Indian languages for all age-groups, including books for children and neo-literates. NBT's children's books are known for their illustrations, by illustrators such as Pulak Biswas, Jagdish Joshi, Mrinal Mitra, Subir Roy, Atanu Roy, Manjula Padmanabhan, Mickey Patel and Suddhasattwa Basu. Painters Jatin Das and Krishen Khanna have also illustrated books for the Trust.

Book Publishing Business

A modern book or periodical publishing company (or publisher) is usually involved in buying or commissioning content, editing it, and preparing it for printing. It usually also controls the advertising and other marketing tasks. However, it is usually not directly involved in retail sale of the product.

It is usual for publishing companies to subcontract various aspects of the process. Book publishers rarely own printing presses and binderies, although newspaper and magazine companies still often do. Book editing, proof-reading and layout might be done by freelancers, and the finished product sold to a distributor. If the entire process up to the stage of printing is handled by an outside company or individuals, then sold to the publishing company, it is known as book packaging.

the recent acquisition of the outsourcing works of Macmillan Publishers by Indias publishing major Repro India drives home an important point that the publishing industry in the country is far from being dormant and is growing at a pace that was never seen before. India today stands as the third largest publishing country in the English-speaking world and seventh largest in the whole world. There are two factors aiding the flourishing T publishing industry. First, a large proportion of the countrys population comprises of the youth. Second, increasing literacy rate of the country, which at present is around 65%, is aiding the publishing industry. Currently, Indias publishing industry is valued at Rs.10,000 crore. The industry publishes over 80,000 titles. Of these, 60% are educational, 40% trade, folk, religious and spiritual. Today, the country boasts of not only homegrown large publishing companies such as Rupa, Penguin, Navneet, Jagran, and Chetna, but also of renowned international publishers such as Oxford, Longman, McGraw-Hill, and Cambridge. So as these companies chalk out their expansion plan, what are the challenges and opportunities for them? What category of publishing has a bright future? And is publishing at all a viable business venture? We present to you a low-down on Indias publishing industry. UMBLE BEGINNINGS For a long time in India, the publishing industry has been dominated by British publications. McGraw-Hill has been in India even before independence. Then as years flew, it collaborated with one of the largest companies in India, the Tatas. This association served as a prime example for Indiancompanies to explore the viability of the publishing business in India. One of the chief entrepreneurs from the Indian publishing domain was the then home minister of India, VK Krishna Menon. He along with Sir Allen Lane founded Penguin Books in 1935. However, post-independence, foreign publishing companies were not allowed to operate as individual companies. They were allowed to secure a minority stake in Indian publishing companies. In the meantime, many Indian companies sprung up in the publishing business. Publications such as Jeevan Prakashan, Chetna, and Rupa, among others began establishing a strong base by foraying into different languages, right from Hindi to English. In such a booming situation, the only problem the publishing industry faced was the export of books. There were no clear rules as regards international sale of Indian books. This deprived Indian publishers of vast opportunities of investment and lucrative businesses outside India. It also prevented the rising population of Indians outside the country immediate access to vast treasure of Indian books.

Then the laws were relaxed. Post-liberalization, the government allowed foreign publishing companies to set up a representative company in India instead of being just a minority stakeholder. Due to this law, foreign publishing houses, which served as distributors of books in India, became publishers.

CHALLENGES In this situation where the substantial section of the population is youth and educated, there are quite a few obstacles for the publishing industry. One big obstacle is talent across various roles in the industry. This could be passionate editors, marketing professionals, and more importantly entrepreneurs, who are passionate about content reaching the reader and would scale up the business to a larger degree. A lot of people in the industry who work in various roles such as editors, marketing professionals are accidental workers. One of the primary reasons why young professionals do not keep the publishing industry as a professional option is due to relatively low remuneration in comparison with the possibility of working for a newspaper or a magazine. This preference has robbed the publishing industry of many talented young people. And even if one chooses the publishing industry as a profession the fact that recruitments are so erratic, discourages many a young professional from coming into this field. Another major challenge that continues to beset the publishing industry is infrastructure. According to industry experts, there is lack of synchronization in distribution, retail and marketing of books. This has led to low penetration and availability of books in tier-II and tierIII cities of the country. It is estimated that organized retail accounts for just 7% of book sales, while the rest comes from the unorganized sector. This includes supermarkets, university bookstores, textbook stores, railway-station stalls, door-to-door sales agents, and footpath sales. This is the reason one sees the mushrooming of online retail stores such as Flipkart, and other ecommerce web sites. Flipkart, in particular, claims to have four million titles readily available to its six million visitors and 5,00,000 registered users. Its book sales have reached 7,50,000 in just over two years of its existence, with half of its buyers returning to make additional purchases from them. To deal with these challenges publishing companies are adopting new measures to win buyers.

NEW OPPORTUNITIES

New business models have emerged in the publishing industry where publishing companies are adopting measures to maximize their revenues. A case in point is distributing books not only of ones own but also those of competitors. Besides this, publishing a material in collaboration with another publishing company not only saves costs but also ensures capping of any downside in such a venture. Or jointly doing both things, that is, distributing books as well as publishing. In the coming years, experts believethat the industry is slated for greater consolidation. Consolidation wouldensure high revenues, gooddistribution network and eventually, afar better content to the reader. Publishing companies are also targeting young readers and pricingbooks economically. A recent survey by NBT/NCAER of readers between the ages of 13 years and 35 years of age in India shows that of the 83 million youth readers, fiction is the most preferred genre among 42% of the youth, followed by24% for non-fiction. Fantasy, comics and classics are thethree most preferred genres of fictionand the least preferred are romance and graphic novels. When it comes to non-fiction, religious/spiritual texts and biographies/autobiographies are the most preferred. Take for instance, author Chetan Bhagat. The strategy of publishers to target young readers works best here. Right from the content, pricing, packaging and visuals, Chetan Bhagats books cater to that young reader who has low appetite for dense reading. This serves the purpose of the publishers who intend to play onthe volume game. Typically, two factors have a strong bearing on Indian publishing companies decision to focus on the volumes game. First, it is highly inelastic pricing, termed as pull driven. Second is value addition. In the publishing industry, it is the reader who demands the books for his or her needs. Marketing professionals cannot push a reader to read a book. Owing to this, the industry is highly price inelastic and provides a good margin for every player in the value chain. This further ensures that there is enough room for new entrants and no price competition. Secondly, it is observed that it is the publisher who adds over 55% of the value in the complete value chain. However, in return, the publishers get 12.5% of the profits. At the end of the value chain, it is the retailers who usually benefit the most since they bear the risk of the sale of the book.

Another major opportunity for Indian publishing companies is e-publishing. E-publishing in India is set to grow at around a rate of 35% per annum. This offers a wide scope for outsourcing of different activites. Even in the e-books segment worldwide, India, China and the European Union are expected to be the growth leaders. At present, the US is the biggest market for e-readers and e-books. Hence, Indian publishing companies would continue to get business for companies based in the US, and other parts of the West.

Scope of Books Publications in India

Abbreviations
Works consisting of lists of shortened forms of written words or phrases used for brevity. Acronyms are included here.

Abstracts
Works consisting of lists of publications on a subject and that provide full annotated bibliographical information together with substantive summaries or condensations of the facts, ideas, or opinions presented in each publication listed. (From LC Subject Cataloging Manual)

Academic Dissertations
Works consisting of formal presentations made usually to fulfill requirements for an academic degree.

Account Books
Books in which personal or commercial accounts of financial transactions are recorded. (From Random House Unabridged Dictionary, 2d ed)

Addresses
Works consisting of speeches, orations, or written statements, usually formal, directed to a particular group of persons. These are different from LECTURES that are usually delivered to classes for instructional purposes.

Advertisements
Works consisting of publicly distributed notices, usually as paid announcements in mass media such as newspapers, magazines, or on billboards. They include those in motion picture, television advertising, or electronic media.

Animation

A film or video wholly or partially created by photographing drawings, sculptures, or other inanimate things in sequence to create the illusion of motion. Animations are also generated by computers. (From Moving Image Materials: Genre Terms, 1988)

Annual Reports
Works consisting of annual statements concerning the administrative and operational functions of an institution or organization.

Architectural Drawings
Works consisting of drawings of architecture and architectural projects, whether the project was executed or not.

Autobiography
Works consisting of self-described accounts.

Bibliography
A work consisting of a list of books, articles, documents, publications, and other items, usually on a single subject or related subjects.

Book Illustrations
Works consisting of photographs, prints, drawings, portraits, plates, diagrams, facsimiles, maps, tables, or other representations or systematic arrangements of data designed to elucidate or

decorate the contents of a publication. (From The ALA Glossary of Library and Information Science, 1983, p114)

Book Reviews
Works consisting of critical analyses of books or other monographic works.

Bookplates
Works consisting of book owner's identification labels. They are usually intended for attaching inside a book or similar object.

Cartoons
Works consisting of humorous, satirical, or ridiculing images executed in a broad or abbreviated manner.

Case Reports
Clinical presentations that may be followed by evaluative studies that eventually lead to a diagnosis.

Catalogs

Works consisting of bibliographic records, created according to specific and uniform principles of construction and under the control of an authority file, which describe the materials contained in a collection, library, or group of libraries. Catalogs include also lists of materials prepared for a particular purpose, such as exhibition catalogs, sales catalogs, garden catalogs, medical supply catalogs. (From The ALA Glossary of Library and Information Sciences, 1983)

Charts
Information presented in graphic form, for example, graphs or diagrams.

Collected Correspondence
Works consisting of collected letters by or about a person or on a subject.

Collected Works
Works consisting of collections of previously published works.

Collections
Works that consist of collections of objects.

Comment
Work consisting of a critical or explanatory note written to discuss, support, or dispute an article or other presentation previously published. It may take the form of an article, letter, editorial, etc.

It appears in publications under a variety of names: comment, commentary, editorial comment, viewpoint, etc.

Comparative Study
Comparison of outcomes, results, responses, etc for different techniques, therapeutic approaches or other inputs.

Database
Work consisting of a structured file of information or a set of logically related data stored and retrieved using computer-based means.

Diaries
Works consisting of records, usually private, of writers' experiences, observations, feelings, attitudes, etc. They may also be works marked in calendar order in which to note appointments and the like. (From Random House Unabridged Dictionary, 2d ed)

Dictionary
A reference book containing a list of words - usually in alphabetical order - giving information about form, pronunciation, etymology, grammar, and meaning. A foreign-language dictionary is an alphabetical list of words of one language with their meaning and equivalents in another language.

Directory
Work consisting of an alphabetical or classified list of names, organizations, subjects, etc., giving usually titles, addresses, affiliations, and other professional data.

Documentaries and Factual Films

Works consisting of films, videos, and programs which depict actual persons or actual events. They do not include frank historical re-creations and do not attempt to judge the truth of the depiction in a film purporting to be factual or documentary in character. (From Moving Image Materials: Genre Terms, 1988)

Drawings
Works consisting of graphic representations of objects or ideas by lines.

Main Players of Book Publication in India

1. Gyan Books Pvt. Ltd.

Gyan a leading publisher, publishes scholarly books on humanities, social science, information technology, education, defence, encyclopaedia, political science, anthropology, art, biography, history, music, environment, philosophy etc. All Knowledge under one roof sobriety and maturity do not come through years. These come with wisdom and knowledge. Gyan may be young by way of age but it is rich enough by way of treasuring knowledge.

2. Academic Publishers Kolkata, India

Academic Publishers was founded in 1958. Since then it has been publishing scholarly books specializing in scientific, technical and medical fields. In addition, Academic also publishes books in other areas including Management, Sociology, Economics, and Political Science. Over the years, Academic has emerged as one of the leaders in textbook publishing nationwide and has been growing rapidly. It has formed partnerships and alliances with leading distributors and various organizations worldwide.

Mission

Our mission is to publish books of highest quality, dissemination of scholarly work through various publications and nurturing talented authors so that their work gets full recognition.

3. Allied Publishers Mumbai, India

Established in 1934 by M. Graham Brash, the Company was acquired by the late Mr. R.N.Sachdev, founder Chairman of Allied Publishers in 1947. A wholly Indian management, under his inspiring stewardship, and began The journey of thousands miles

Step by step, from humble beginnings, grew an elaborate network of nine branch offices situated in all the metro cities and state capitals, supported by Resident Marketing Executives in major University town-all equipped with fully computerized systems to offer prompt and efficient services.

Objective

To provide all types of information published around the world to the Indian customers (both booksellers and end users) as importers, distributors and stockists of foreign publishers.

To publish and market quality academic (text books and reference books) books for COLLEGEs, colleges and higher academic institutes. As professionals equipped to service the ever expanding needs of the Indian research community through the marketing of specialised information products, through our Specialised Agency Division (Chennai).

As quality printers of all book related products, through our own Printing Press in New Delhi.

To distribute Indian publishers and Indian priced books throughout India. To promote Indian publications abroad as leading Exporters, through our Export Division ( New Delhi).

ARIHANT PRAKASHAN
The first enterprise, started in the year 1997, and which has been constantly redefining itself with value-added books since then, has more than 800 popular titles with a large number of 5 stars (*****). Its primary focus is to publish cutting - edge books for engineering and medical entrances. ITI course books also come under this purview. The no. of books under its umbrella is going to increase manifold with Arihant planning to enter text and interactive resource books market for COLLEGE students (K-12) very soon.

ARIHANT PUBLICATIONS (INDIA) LIMITED

Incorporated in the year 2011, from Arihant Publications (I) Pvt. Ltd. which began its journey in the year 2005 as a window for books related to IAS, PCS, NDA, CDS, CAT, MAT, Bank PO, GATE/PSU/ IES, job recruitments, ESL, personality development, and general reading books. On the average, on each of the day of a year at least one new title goes to the market from this Division. It is no wonder APIL now boasts of more than 1000 active titles, some of which are super-sellers. With this Arihant catapulted to No. 1 position in India in publication of books for competitive recruitment and entrance exams.

Chitra Prakashan

The plinth of Chitra Prakashan was kept in Bulandshahar (U.P) in the year 1969 with its single title Kavya Shaastra. Then it started the publication of Chitra Ek Adhyayan. Slowly and steadily the firm started to expand its wings, and with the same vision, it got shifted to Meerut in the year 1975. The firm started publication of Junior, High COLLEGE & Intermediate books from Meerut. Incepted in the year 2004 as Chitra Prakashan (I) Pvt. Ltd. Is a name to reckon with spite for none but charity for all.

The company has its empowered network throughout Uttar Pradesh & Uttarakhand, with its corporate office at Meerut. It is one of the most renowned publishing house of the state which specializes in publishing COLLEGE and university books. It publishes around 1000 titles and is marching ahead every day to bridge the gap between knowledge and a students intellect i.e. Literacy is defeating illiteracy from masses. It has expanded its resources and has successfully served large number of customers. CPIPL is a star publishing group with a strong distribution channels. To add, we are the only distributor of Rajluxmi Publications & Master Mind Publications India Pvt. Ltd.

Chapter 2- Introduction about Organization and Topic General introduction of the organization

Vidya Prakashan Mandir Limited with a back drop of three decades of quality publication of children books have been positioned as pioneers in terms of techno-managerial acumen and quality of content in the publication domain. The quality orientation of

VPML has been of the global benchmarks and is evident from the products that are published at the state of the art production facility at Meerut.

The most striking feature of our books has been that the books are prepared by the domain experts of the respective fields and are in perfect alignment with the curriculum and syllabus prescribed by the Educational Boards. The overall layout, usage of lively colours and latest trends of design make learning more conducive and interesting for the children.

We stand a class apart from other players in the publication industry in terms of impeccable resources employed and the indigenous state of the art machinery and production facility employed by us for quality products.

Mission
To be the best educational publisher with innovative and quality contents and compliance with the publication ethics. Vidya Prakashan Mandir Limited is dedicated towards informing, educating and enlightening, accurately and openly, for a better world.

Vision
Vidya Prakashan Mandir Limited aspires to be the top of the choice publisher and provider of highly customised educational products that are in sync with the changing

paradigms of the education arena. We engage, employ and expertise in state of the art publishing facilities for generation of world class products.

Market growth of publication industry

According to a recent survey by US-based consultancy firm Pira International, the size of Indian book printing is about Rs 7,000 crore. This is predicted to reach Rs 10,000 crore by 2016. Furthermore, India is also fast becoming a hub for the outsourcing of publishing and printing services. In the case of business process outsourcing services in publishing, analysts believe globally the value of the industry will be $1.2 billion in 2012. Currently, India has a share of 60 per cent of global publishing outsourcing. The main areas of work are colour management, image editing, traditional typesetting services and page layouts. A fact corroborated by legendary publisher, Andre Schriffin when he was visiting India earlier this month. According to him, the global publishing industry has been working with Indian printers for a long time now.

It is within this context that the opportunities and challenges in printing and publishing were the central points of discussion at the first National Book Printer's Conference held during 17-19 November 2011 in Thiruvananthapuram, Kerala. It was organised by book maker and binder Welbound Worldwide and printing industry publication PrintWeek.

Some of the statistics that emerged were that the size of the Indian publishing and printing industry is estimated to be of $1.9 billion or about 9,500 crore and $ 25 billion (about Rs 1,25,000 crore), respect Ranked as the sixth-largest publishing industry in the world, India has its entire gamut of publishing activities and services available in-house. An annual output of 90,000 books, with 19,000 publishers publishing them, has put the book market in India in the spotlight over the last few years.

The combined advantage of being the third-largest publisher of books in English and having competitive rates for publishing and printing technologies has made India a formidable player in the international publishing scene. The industry has been boosted by an infusion of capital since the year 2000, when the government of India allowed 100% equity in the publishing industry. The result has been several new opportunities and challenges for the Indian publishing industry.

With literacy rates improving each year (currently the rate is 65% out of a population of 1.1 billion people) and with the expansion of the middle class, Indians are reading more than ever, with a particular focus on skill development and self improvement.

Market size of publication industry Publishing in India Today: 19,000 Publishers, 90,000 Titles, Many Opportunities:

The publishing industry in South Asia as a whole, and India in particular, has never seen better times. There has been an astounding increase in the number of titles originating from and being produced in the region, in addition to large-scale investment in retail, fresh marketing tools and increasing standards of book production.

The Indian scenario is particularly unique. With a whopping 550 million people below the age of 30, and with a significant and consumerist middle class, book sales in the country could well surpass all expectations there are numerous associations, representing an estimated 19,000 publishers, although no single association has more than 1,000 members. This indicates a vibrant yet scattered industry.

Through the end of 2007, the total number of publishers registered with the India office of the International Standard Book Number (ISBN) agency was 12,375. However, given the fact that many publishers still do not register ISBNs for their books, this number is merely indicative at best.

It is further estimated by the various associations that a total of 90,000 titles are produced every year, while the potential growth is pegged at an optimistic 30% per year. The complexities notwithstanding, publishers have been trying new and innovative ways to tap into this huge market.

Literary Agents Enter the Market

In this vibrant atmosphere comes the next interesting player: the agent. Until just a few years ago, barely one or two literary agents were operating out of India. Jacaranda, run by Jayapriya Vasudevan and Priya Doraiswamy, was the pioneer in the field.

As seen in mature markets, agents play a crucial role in identifying, nurturing and exposing new talent in ways that publishers tend to find difficult to do, preoccupied as they are with other matters. Mita Kapur, who runs the literary consultancy Siyahi, says, Our agency works at helping our writers hone their manuscripts to a level where acceptance levels with publishers becomes higher and smoother.

We have a sense as to which publisher is building up what kind of list, and we work according to that. The quality of writing rises because of that, and publishers also find it easier to work with such books.

Even larger publishers, including Penguin and HarperCollins India, have chosen to take a look at commissioning books in this almost indefinable genre of popular writing. As a result, one has seen books such as Johnny Gone Down by Karan Bajaj or the Metro Reads series from Penguin India.

In this scenario, the new editor also finds a special role. As Chiki Sarkar of Random House India points out, Half of my list consists of subjects that I think would make a good book and then finding the writer who might be suitable for it.Whether the new reader is following or setting trends is an interesting question, if market forces are defining much of the commissioning that is being done.

History of the Organization

Established in 1979, Vidya Prakashan Mandir Ltd., is an ISO 9001 certified company actively engaged in publication and printing of books. The company publishes educational and general books for COLLEGE students. Vidya Prakashan Mandir Ltd. is now a well known publishing house in India, Which established by Late Sh. Sukhbeer Singh Jain and now run by Surendra Kumar Jain (Chairman) & Pradeep Kumar Jain (Managing Director) has a niche for itself in the industry as one of the leading publisher of the quality educational books in India for nursery to intermediate students. Vidya Prakashan Mandir Ltd. is publishing over 1,500 titles. It also publishes a monthly Educational Journal of Vidya Megh. Vidya Prakashan Mandir Ltd., remarkable initiative has been taken by solving a problem of lessening the COLLEGE children heavy weight of bag and this help in reducing the weight of COLLEGE bags of children. Presently they started a unique novel scheme known as Vidya Shekshik Prosthan Yojna2007 for all the students passing from U.P. Board.

There are various departments in Vidya Prakashan Mandir Ltd.

1. 2. 3. 4. 5. 6. 7. Editorial & DTP Human Resources Finance & Accounts Marketing Sales & Distribution Printing & Binding Security

The Vidya Prakashan Mandir Ltd has a marketing division who is responsible for marketing strategy, advertising, researching, promoting, conducting customer surveys, branding, public relations and creating of corporate style. All these responsibilities can be gathered in several main functions of the marketing department. These functions are as follows:

Development of marketing goals and strategy Conducting marketing researches and monitoring customer needs Promotion and advertisement

Vidya Prakashan Mandir Ltd. has opened a profession college to give higher education to enhance and update upgrade knowledge of upcoming generation named Vidya Knowledge Park it includes:

1. 2. 3. 4. 5.

Vidya Global COLLEGE Vidya College of Engineering Vidya COLLEGE of Business Vidya College of creative Teaching Vidya Institute of Fashion Technology

Administrative Structure

FULL NAME Pradeep Kumar Jain Surendra Kumar Jain Saurabh Jain Madhur Jain Ritu Jain Shilpi Jain

DESIGNATION Director Director Director Director Director Additional Director

Various sample of books in vidya prakashan

Achievements of the Vidya Prakashan Mandir Ltd. Meerut

His Excellency, Dr. A.P.J. Abdul Kalam, The President of India honouring Mr. Surendra Kumar Jain, Chairman, Vidya Prakashan Mandir Limited with the National Award Dr. Anil Wilson, Vice-Chancellor, Himachal Pradesh University presenting Excellence in Book Production Award bestowed by Federation of Education Publishers of India to Shri Pradeep Jain, Managing Director Vidya Prakashan Mandir Ltd

Shri Pradeep Jain, Managing Director Vidya Prakashan Mandir Ltd. receiving Excellence in Book Production Award conferred by Federation of Indian Publishers from the hands of Hon'ble Smt. Sheila Dixit, Chief Minister of Delhi.

COMPANIES SERVICES

They offer their clients book printing service, that are performed under the strict supervision of their team of qualified and experienced professionals. Their customers can choose the font style, the color and design of the cover page and they assure that the final product is sure to match up to their imagination. They offer book printing & publishing services like book publishing services, hardcover binding, academics book printing, novels printing, student exercise books, story books printing, book printing services, book binding services, law books printing and children books printing.

SERVICES OF THE ORAGANISATION DIVIDED IN THE FOLLOWING TYPES:

Book Publishing Services

They are among the well recognized names in the industry offering a wide variety of book publishing services. Their book printing service and publishing services are reckoned for being qualitative and can be customized as per the specific requirements of their clients.

Book Printing Services

They print a lot of books of various publishing companies as well as institutional organisations of repute. From typesetting, proofreading, prepress, printing and binding, they do every thing under their roof. Books are center stitched or side stitched or perfect bound or spiral bound or

 Academics Book Printing

They are among the well recognized names in the industry offering a wide variety of Academics book publishing services. Our Academics book printing service and publishing services are reckoned for being qualitative and can be customized as per the specific requirements of our clients. Mostly academic books are perfect bound.

 Book Binding Services

There are many choices in book binding options, here are a few:

Comb Binding: to bind by inserting the teeth of a flexible plastic comb through holes
punched along the edge of a stack of paper. Also called plastic bind and GBC bind (a brand name).

Case Binding: to bind using glue to hold signatures (printed sheet folded at least once,
possibly many times) to a case made of binder board covered with fabric, plastic or leather. Also called cloth bind, edition bind, hard bind and hard cover. Examples include coffee table books, high COLLEGE yearbooks, leather or cloth bound books.

Double Loop Wire: to bind using a spiral of continuous wire or plastic looped
through holes. Similar to Spiral binding but double wire ... Also called coil bind.

Lay Flat Bind: method of perfect binding that allows a publication to lie fully open.
(Also known as Lay Flat Perfect Binding.)

Perfect Binding: to bind sheets that have been ground at the spine and are held to the
cover by glue. Also called adhesive bind, cut-back bind, glue bind, paper bind, patent bind, perfecting bind, soft bind and soft cover. Standard paperback books use this type of binding. You always have a spine with both perfect binding and case bound books.

Branches of vidya prakashan

Corporate office Vidya prakashan mandir ltd. ,Vidya estate,baghpat road Meerut-250002(NCR) India

Delhi office vidya prakashan mandir ltd. 312 awadh complex,D-5 luxmi nagar New delhi-110092 India

Corporate office Vidya prakashan mandir ltd. 3rd floor Stanmore house,15/19church road Stanmore Middlesex HA7 4ARUnited kingdom

STRUCTURE OF ACCOUNTS DEPERTMENT AT VIDYA PRAKASHAN MANDIR:

COMMERCIAL MANAGER

ACCOUNTS HEAD

ACCOUNTS HEAD

JUNIOR OFFICER

JUNIOR OFFICER

JUNIOR OFFICER

Sections in Accounts Department at VIDYA PRAKASHAN MANDIR:

Financial:

Funds are arranged from head office for the payment of expenses, engineering bills, transportation bills etc. Reports are maintained related to operating expenses that means total expenses during the month like, salary, wages, freight, welfare etc.

The various duties and responsibilities of Accounts department in VIDYA PRAKASHAN MANDIR:

1. Recording day-to-day operating expenses 2. Excise duty analysis 3. Transportation bill passing 4. Book bill passing 5. Day-to-day cash transactions

NEED FOR THE STUDY

The study has great significance and provides benefits to various parties whom directly or indirectly interact with the company.

It is beneficial to management of the company by providing crystal clear picture regarding important aspects like liquidity, leverage, activity and profitability.

The study is also beneficial to employees and offers motivation by showing how actively they are contributing for companys growth.

The investors who are interested in investing in the companys shares will also get benefited by going through the study and can easily take a decision whether to invest or not to invest in the company

OBJECTIVES OF STUDY

The major objectives of the resent study are to know about financial strengths and weakness of VIDYA PRAKASHAN MANDIR through LIQUIDITY ANALYSIS.

The main objectives of resent study aimed as:

1. To evaluate the performance of the company by using ratios as a yardstick to measure the efficiency of the company. 2. To understand the liquidity, profitability and efficiency positions of the company during the study period. 3. To evaluate and analyze various facts of the financial performance of the company. To make comparisons between the ratios during different periods.

Secondary Objectives:

1. To study the present financial system at VIDYA PRAKASHAN MANDIR.

2. To determine the Profitability, Liquidity Ratios. 3. To simplifies and summarizes a long array of accounting data and makes them understandable.

RESEARCH METHODOLOGY

Research in common refers to a search for knowledge. The Advanced Learners Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry specially through search for new facts in any branch of knowledge. Acc. To Redman and Mory research is a systematized effort to gain new knowledge.

According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.

Other words, The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

OBJECTIVES OF RESEARCH

The purpose of research is to discover answers to questions through the application of scientific procedures. To gain familiarity with a phenomenon or to achieve new insights into it. To determine the frequency with which something occurs or with which it is associated with something else. To test a hypothesis of a causal relationship between variables.

TYPES OF RESEARCH:

Conceptual Research : Conceptual research is that related to some abstract idea(s) or theory. It is generally used by philosophers and thinkers to develop new concepts or to reinterpret existing ones.

Empirical Research: It relies on experience or observation alone, often without due regard for system and theory. It is data-based research,coming up with conclusions which are capable of being verified by observation or experiment . Historical research: is that which utilizes historical sources like documents, remains, etc. to study events or ideas of the past, including the philosophy of persons and groups at any remote point of time.

Descriptive Research : Descriptive research includes surveys and fact-finding enquiries of different kinds.

Analytical Research: In analytical research,the researcher has to use facts or information already available, and analyze these to make a critical evaluation of the material.

Applied Research: Applied research aims at finding a solution for an immediate problem facing a society or an industrial/business organization

Quantitative Research: It is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity.

Qualitative Research: It is concerned with qualitative phenomenon, i.e., phenomena relating to or involving quality or kind. For instance, when we are interested in investigating the reasons for human behaviour

CRITERIA OF GOOD RESEARCH:

The purpose of the research should be clearly defined and common concepts be used.

The research procedure used should be described in sufficient detail to permit another researcher to repeat the research for further advancement, keeping the continuity of what has already been attained.

The procedural design of the research should be carefully planned to yield results that are as objective as possible.

The analysis of data should be sufficiently adequate to reveal its significance and the methods of analysis used should be appropriate. The validity and reliability of the data should be checked carefully.

Conclusions should be confined to those justified by the data of the research and limited to those for which the data provide an adequate basis.

Research Process

Step 1: Identify the Problem

Step 2: Review the Literature

Step 3: Clarify the Problem

Step 4: Clearly Define Terms and Concepts

Step 5: Define the Population

Step 6: Develop the Instrumentation Plan

Step 7: Collect Data

Step 8: Analyze the Data

FINANCIAL RATIO ANALYSIS:

Financial Analysis: Financial analysis is the process of identifying the financial strengths and weaknesses of the firm and establishing relationship between the items of the balance sheet and profit & loss account. Financial ratio analysis is the calculation and comparison of ratios, which are derived from the information in a companys financial statements. The level and historical trends of these ratios can be used to make inferences about a companys financial condition, its operations and attractiveness as an investment. The information in the statements is used by Trade creditors, to identify the firms ability to meet their claims i.e. liquidity position of the company.

Investors, to know about the present and future profitability of the company and its financial structure.

Management, in every aspect of the financial analysis. It is the responsibility of the management to maintain sound financial condition in the company.

RATIO ANALYSIS:

The term Ratio refers to the numerical and quantitative relationship between two items or variables. This relationship can be exposed as Percentages Fractions Proportion of numbers Ratio analysis is defined as the systematic use of the ratio to interpret the financial statements. So that the strengths and weaknesses of a firm, as well as its historical performance and current financial condition can be determined. Ratio reflects a quantitative relationship helps to form a quantitative judgment.

Ratios Are Useful For Several Parties Such As: Investors, both present as well as potential investors. Financial analyst. Mutual funds. Government. Tax department. Competitors. Research analysts and students. Companys management Creditors and Suppliers Lending Institutions Banks and Financial Institutions Financial Manager

Nature of Ratio Analysis

Ratio analysis is a technique of analysis and Interpretation of financial statements. It is the process of establishing and interpreting various ratios for helping in making certain decisions. It is only a means of understanding of financial strengths and weaknesses of a firm. There are a number of ratios which can be calculated from the information given in the financial statements, but the analyst has to select the appropriate data and calculate only a few appropriate ratios. The following are the four steps involved in the ratio analysis.

Selection of relevant data from the financial statements depending upon the objective of the analysis. Calculation of appropriate ratios from the above data. Comparison of the calculated ratios with the ratios of the same firm in the past, or the ratios developed from projected financial statements or the ratios of some other firms or the comparison with ratios of the industry to which the firm belongs

Classification of Ratios: (A)

Liquidity Ratio:
Current Ratio Quick Ratio

(B)

Profitability Ratios:

(a) Related To Sales: Gross Profit Ratio Operating Profit Ratio Net Profit Ratio

(b) Related To Investment Of Capital Employed: Return On Investment Return On Net Worth Or Proprietors Funnd

(C)

Financial Leverage Ratio:

Debt Equity Ratio Debt Asset Ratio Long Term Debt to Total Capitalization Interest Coverage Ratio

(D)

Dividend Ratio:
Earnings per Share

Liquidity Ratios: It is also known as liquidity ratios. it includes the following 1) Measures ability of a company to meet its current obligations. 2) Indicates short term financial stability of a company. 3) Indicates present cash solvency and ability to remain solvent in times of adversities. To measure the liquidity of a firm the following ratios can be calculated Current ratio Quick (or) Acid-test (or) Liquid ratio

(a) Current Ratio: Current ratio is useful to find out solvency of the company. High current ratio indicates that company be able to pay its debt maturity within a year. Low current ratio indicates that company will not be able to meet its short term debts. Minimum standard current ratio is 2:1. Current ratio= Current asset

ADVANTAGE OF CURRENT RATIO: Current ratio helps to measure the liquidity and solvency of a firm. It represent general picture of the adequacy of the woking capital position of a company. It represent a margin of safety. It help to measure the short term financial position of a firm. It evaluates the operational efficiency of a concern. It disclose the over trading or under capital.

(b) Quick Ratio: Quick ratio is also known as acid test ratio. It indicates immediate ability of a company to pay off its current obligations. And also shows the solvency and financial soundness of the business. Greater the ratio stronger the financial position of the company. The standard quick ratio should be 1:1 Quick = Quick Assets Quick Liabilities Advantage of Quick ratio: It used as a complementary to the current ratio Quick ratio helps to measure liquidity position of a firm. It is used to remove inherent defects of current ratio. It is used as a tool to evaluate the solvency of a concern. It gives the correct picture about the firm ability to meet its immediate obligation Higer quick ratio indicates sound liquidity position. It is more rigorous test of liquidity than the current ratio.

Absolute liquid ratio: Absolute liquidty ratio is also called as cash position ratio or over due liability ratio. This ratio establish the relationship between the absolute liquid asset and current liabities. Absolute liquid asset include cash in hand, cash at bank and maketable securities or temporary investment. both the sundry debtors and bills are excluded as thare ia always un certainty with respect to their realization.

Absolute liquid ratio=

absolute liquid asset Current liabilties

B) Profitability Ratios: The primary objectives of business undertaking are to earn profits. Because profit is the engine, that drives the business enterprise. It measures the overall efficiency of the business. It indicates utilization of business assets and funds are done efficiently and best way or not, so as to generate adequate profits or returns. Profitability ratios fall in two categories: a) Related To Sales: 1) Gross Profit Ratio: It shows the operating efficiency of the business. It measures the efficiency of production as well as pricing. Decrease in the ratio indicates reduction in selling price or increase in the cost of production or decline in the business activity. Increase in the ratio indicates increase in the selling price or reduction in the cost of production Gross Profit Ratio= Gross Profit Sales *100

2) Operating Profit Ratio: It indicates profitability of entire business after meeting all operating cost including direct and indirect cost of administrative and distribution expenses. Operating Profit ratio= Operating Profit X 100 Sales 3) Net Profit Ratio:

It shows the overall efficiency of the business. Higher the ratio indicates higher efficiency of business and better utilization of total resources. In addition it indicates efficiency of financing operations as well as tax management.

Net Profit Ratio= Net profit after tax X 100 Sale

c) Financial Ratio
1) Capital Gearing Ratio: This ratio indicates the relationship between preferential capital, debenture. Term loan and capital which does not carry fixed rate of interest or dividend. When the ratio is more than one then the capital is said to be highly geared that mean slow equity share capital and greater amount of preference share capital, debenture, long-term loan. When the ratio is less than one then the capital is said to be very lowly geared that means low earning per share. Equity shareholder will control the company. It results in over capitalization.

2) Proprietary Ratio It measures the relationship between funds invested in business by the owners with the total funds invested in business. It indicates long run solvency of the business. High ratio means company is less dependent on outside funds and company is quite solvent. Low ratio indicates company is more dependent on outside funds solvency and solvency may be danger.

Proprietary Ratio= Proprietary Fund

Total Assets

3) Stock Working Capital Ratio: It indicates weightage of stock in the current assets or in the working funds. It indicates strength and weaknesses of working capital; high ratio indicates slow movement in stock and also reflects better management of inventory as well as working capital. Stock Working Capital Ratio= Stock Working Capital

E) Financial Leverage Ratio

It indicates financial structure of the organization that is proportion of debts as compare to owners fund.

1) Debt Equity Ratio: Higher the ratio less secured is the creditors, lower the ratio creditors enjoy higher degree of safety. Debt Equity Ratio= Debt Equity

2) Debt Asset Ratio: It indicates the percentage of the total asset created by the company through short term and long term debt. Higher the ratio less safe is the creditors and vice versa.

Debt Asset Ratio= Debt Total Assets 3) Long Term Debt to Total Capitalization: It explains the relationship between long term debts borrowed from outsiders with owners contribution. Lower the ratio better is the solvency of the business and safer is the creditor so far as his repayment.

Long Term Debt to Total Capitalization= Long Term Debt Total Capital Employed

4) Interest Coverage Ratio This indicates earning capacity of the business to pay its interest burden. Higher the ratio business can easily pay the interest.

Interest Coverage Ratio= Earnings before Interest and Tax Interest

Interpretation of the Ratios:

The Interpretation of ratios is an important factor. The inherent limitations of ratio analysis should be kept in mind while interpreting them. The impact of factors such as price level changes, change in accounting policies, window dressing etc.

Guidelines or Precautions for Use of Ratios:

The calculation of ratios may not be a difficult task but their use is not easy. Following guidelines or factors may be kept in mind while interpreting various ratios is Accuracy of financial statements Objective or purpose of analysis Selection of ratios Use of standards should also be kept in mind when attempting to interpret ratios

CHAPTER-4 DATA ANALYSIS AND INTERPRETATION

Balance sheet as on 31ist march 2012

Note Figures as at the end of FY 2011-2012 i. Equity and liabilities Figures as at the end of FY 2010-2011

Particular

No.

A. Share holder fund 1. Share capital

2.1 2.2 2.3 2.4 2.5 2.6

96,163,300.00 167,522,240.56 . 16,786,313.54 2,732,528.44 1,313,661.00

96,163,300.00 153,110,185.17 . 33,484,468.04 2,029,628.44 . .

2. Reserve and surplus

B. Share application money pending allotment C. Noncurrent liabilities 1. Long term borrowings 2. Deferred tax liabilities(net) 3. Other long term liabilities 4. Long term provision

D. Current liabilities
1. Short term borrowings 2. Trade payable 3. Other current liabilities 4. Short term provision

2.7 2.8 2.9 2.10

118,806,338.80 64,293,040.30 6,146,561.02 1,007.756.00 474,771,739.66

112,079665.95 62,068,407.69 4,385,887.86 3,496,214.00 ..

Suspense

Total

466,817,757.15

Assets 1.Non current assets

a) Fixed assets I. II. III. Tangible Intangible Capital work in progress Intangible assets under development

IV.

144,920,265.36

149,650,003.66

b.Non current investment c.Deferred tax asset

d. Long term loans and advances e. Other noncurrent assets under development

2.11 2.12

1,399,866.20 .. 1,604,127.00

1,399,866.20 .. 1,604,127.00 .

2.Current assets
a) b) c) d) e) f) Current investment Inventories Trade receivable Cash and cash equivalents Short term loans and advances Other current assets

2.13 2.14 2.15 2.16 2.17

Total

108,754,283.86 175,571,644.78 16,409,358.21 2,611,595.09 10,816,858.35

90,041,940.00 212,330,805.63 16,493,307.12 .. 7,981,408.35

474,771,739.66

466,817,757.15

0.00

0.00

Profit and loss account as on 31st march 2012 Note Particulars no. Figure for the current 2011-2012
1.Revenue from operations 2.Other income

Figure previous

for

the year

year

2010-2012 338,894,678.00 1,535,612.09 340,430,290.09

2.18 2.19

394,212,146.00 674,068.00 394,886,214.00

Total revenue

3.Expenses
A. Cost of material consumed B. Change in stock of FG/stock in trade C. Employee benefits expenses D. Financial costs E. Depreciation expenses F. Other expenses and

2.20 2.21

218,781,683.07 18,712,343.86

238,346,967.18 29,114,454.96

amortization 2.23

2.22 2.24 2.25

12,155,652.00 16,924,250.59 14,630,647.30 98,566,681.79 379,771,258.61 379,771,258.61 15,114,955.39 . 15,114,955.39 15,114,955.39

9,365,677.00 14,403,553.15 9,458,459.19 83,721,596.37 326,181,797.93 326,181,797.93 14,248,492.16 . 14,248,492.16 14,248,492.16

Total expenses Expenses transferred to closing stock 4.Profit before exceptional and extraordinary Items and tax 5.Exceptional items 6.Profit before extraordinary Items and tax 7.Extraordinary Items 8.Profit before tax(6-7)

Cont.. Note Figure for the Particular No. current 2011-2012 9.Tax expenses:
1. Current tax(provision for tax) Less: MAT credit receivable Total

Figure previous

for

the year

year

2010-2012

. . .. 702,900.00 14,412,055.39 .. .. ..

3,496,214.00 . 3,496,214.00 1,135,267.00 66,828.00 9,683,839.16 . . .

2. Deferred tax 3. Income tax refund 10. Profit(loss) for the from discontinuing operations (8-9)

11.Profit(loss) from discontinuing operations

12.Tax expenses of discontinuing operations 13.Profit (loss) from discontinuing

operations.(11-!2) 14.Profit (loss) for the period(10-13)

14,412,055.39

9,683,839.16

15.Earing per equity share: 1. Basic 2. Diluted

.. ..

YEAR
PROFIT

2010-2011
9,683,839.16

2011-2012
14,412,055.39

PROFIT
16,000,000.00 14,000,000.00 12,000,000.00 Axis Title 10,000,000.00 8,000,000.00 6,000,000.00 4,000,000.00 2,000,000.00 0.00 PROFIT 2010-2011 9,683,839.16 2011-2012 14,412,055.39

YEAR SALES

2010-2011 338,894,678

2011-2012 394,212,146

SALES
SALES

394,212,146

338,894,678

2010-2011

2011-2012

CALCULATION OF RATIOS IN VIDYA PRAKASHAN MANDIR LTD.

CURRENT RATIO:
YEAR 2010-2011 2011-2012 CURRENT ASSETS 301452144.11 326847461.10 CURRENT LIABILITIES 208472362 189245939.82 RATIO 1.45 1.73

350000000 300000000 250000000 200000000 150000000 100000000 50000000 0 CURRENT ASSETS CURRENT LIABILITIES RATIO 2010-2011 2011-2012

INTERPRETATION: the ideal current ratio is 2:1. It indicate good position of the company. The higher the current ratio represent that more fund and firm has ability to meet its cueeent liabilities. In 2011 the current asset ratio of the company is 1.45:1. Which indicate company has no so good postion to meet his liabities and in 2012 the current ratio is 1.72:1,which show company also so in good position

QUICK RATIO:

YEAR 2010-2011 2011-2012

QUICK ASSETS 192697860.25 236805521.1

CURRENT LIABILITIES 208472362 189245939.82

RATIO .92 1.25

INTERPRETATION: the ideal quick ratio of 1:1 is considerd to be satisfactory. if the quick asset are to current liabities then the firm can easily meet all current obligation. If the ratio is more than 1:1 indicates that the firm has sound liquidity position.In year 2010-2011 the quick ratio is less than 1:1 ratio. so it indicate company has poor liquidity position. in 2012 the quick ratio is more than 1:1.it indicate company has sound liquidity position

250000000 200000000 150000000 2010-2011 100000000 50000000 0 QUICK ASSETS CURRENT LIABILITIES RATIO 2011-2012

AVERAGE COLLECTION PERIOD:

Year Accounts receivable Credit sales Ratio

2010-2011 2011-2012

175571644.78 212330805.63

332516374 389424603

192.72 199.01

450000000 400000000 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0 Accounts Year receivable Credit sales Ratio Series1 Series2 Series3 Series4

Interpretation: this ratio show that in how much time company collect money from its creditors. This ratio show that company has good collection policy to collect the money from its creditors.

TOTAL ASSETS TURNOVER RATIO:

YEAR 2010-2011 2011-2012 SALES 338894678 394212146 TOTAL ASSETS 466817757.15 474771739.66 RATIO .73 .83

500000000 450000000 400000000 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0 SALES TOTAL ASSETS RATIO 2010-2011 2011-2012

Interpretation: this ratio represent that company sales inceasing year to year and company totals assets ratio in 2011 is .73. in 2012 the total asset ratio is 83. it show that company has increasing the profit and also increasing the total assets.

NET PROFIT RATIO:

YEAR 2010-2011 2011-2012 NET PROFIT 9683839.16 14412055.39 SALES 338894678 394212146 RATIO 2.85% 3.65%

450000000 400000000 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0 YEAR NET PROFIT SALES RATIO Series1 Series2 Series3

Interptation: net profit ratio represent that company profit ratio increasing year to year. In 2011 the profit ratiom is 2.85% and in 2012 the profit ratio is 3.65% .it shows company has increasing its sale year to year.

Chapter-5

Findings and Recommandation

1. Liquidity ratio of vidya prakashan mandir was increasing and showing positive working capital per year. 2 Sales of vidya prakashan mandir is increasing from 2010-2011 to 2011-2012

3 Company has good liquidity position.

4 Financial position of the company is also improving.

5 Total assets inceasing of the cureompany in fut

6 Credit sales are greater than cash sales

7 Liabilities of the company is increasing in the year 2011-2012 in compare of year 20102011

8 Liquidity position of the company is better than in the year 2011-2012 in compare of the year 2011-2012.

SUGGESTIONS AND RECOMMENDATION

1) Suggested the company should follow the present working capital.

2) The company spends reasonable amount on inventory so that it should be followed.

3) The current ratio is maintained at a satisfied level. So that company peruses this much of current assets to meet the objective of the firm. 4) Company is maintaining high quick assets to overcome current liabilities for better results. 5) For better results company has to maintain cash inflows to overcome current liabilities of the firm. 6) To gain good profits company has to improve the sales through inventory management. 7) The company should try to reduce external liabilities, having pay high EPS & DPS. 8) The company should make arrangement of receivables and cash company. 9) Profit figure of the company is increasing in current year. 10) Company is making proper utilization of borrowed money.

CONCLUSION
The study on liquidity analysis conducted in vidya prakashan mandir to analyze the financial position of the company. The companys financial position is analyzed by using the tool of annual reports The financial status of vidya prakashan mandir is good. In the last year the inventory turnover has increased, this is good sign for the company.

The companys liquidity position is very good. With regard to the investments in current assets there are adequate funds invested in it. Care should be taken by the company not to make further investments in current assets, as it would block the funds, which could otherwise be effectively utilized for some productive purpose. On the whole, the company is moving forward with excellent management

LIMITATIONS
Following Limitations faced by me during the Study of the Project as: 1. Time Limitations. 2. Lack of Guidance 3. Organizational Restrictions

An Explanation of the Above: -

Time Limitation
The time was a limitation during completion of the report. The time was not enough to cover all the points about the topic. Also it was a tough job to understand all the recruitment and selection in this short period. It brings the eagerness in completion of the report. The time raise as a big difficulty in the preparation of the report. This time limitation enables to better understanding the policies of the company.

Lack Of Guidance
There was lack of guidance at some of the stages. The supervisors sometimes were notable to give proper guidance because of his own job responsibilities and lack of time. So it was a little lack of guidance.

Organizational Restrictions
There were restrictions on the supervisor and on the respondents to very much clear all the policy and process. No organization discloses all the recruitment and selection policy to the outsides. Nobody in the organization is authorized to disclose all the policies it is because of some certain principles made by the top management of the organization

BIBLIOGRAPHY

The Reference Books a. I M Pandey, Financial Management, Ninth Edition, Vikash Publishing House Pvt Ltd. b. Dr.S.N. Maheshwari, Financial Management, Second Edition, Sultan Chand & Sons. c. Ravi M. Kishore, Cost Accounting,2008 Edition, Taxmann Allied Services Pvt. Ltd d. C.R. Kothari, Research Methodology, new age international ltd. e. D.p. periasamy, working capital management ,first edition, Himalaya publication house f. Naresh k malhotra, financial management,ninth edition, Pearson publication. g. R.p. rastogi, fundamental of financial management , third edition. h. Khan m.y and p.k jain, financial management, hill publication company ltd. i. Jaek shim, financial management, second edition.

Website: www.google.com www.vidyaprakashan.com www.vidya.in www.ask.com