PROJECT REPORT

ON
“MULTIPLE REGRESSION ANALYSIS OF TCS COMPANY”

SUBMITTED BY
CHANDA SHARMA (19202316)
DEEPAK KUSHWAHA (19202323)
SHYAM BINAY KUSHWAHA (19202325)

UNDER THE GUIDANCE OF

PROF. RABI NARAYAN SUBUDHI

SCHOOL OF MANAGEMENT
KIIT DEEMED TO BE UNIVERSITY
PATIA, BHUBANESHWAR
ODISHA - 751024
 ACKNOWLEDGEMENT

This report has been made with the help of many resources whom we wish to express our
gratitude and appreciation. We are very graceful to the people/resources who supported us to
transform the report in the materialistic form.
We are thankful to Prof. R.N SUBUDHI, faculty of KIIT School of Management, KIIT
deemed to be university, Patia, Bhubaneshwar for his gratitude during our project and giving
us full co-operation and also valuable information and guidance, without which it would not
be possible for us to complete the manuscript.
We would also like to thank the librarians and other staff members of KIIT School of
Management for providing us the required books/journals in this field and our friends who
were always there to assist us at odd hours.

- CHANDA SHARMA
- DEEPAK KUSHWAHA
- SHYAM BINAY KUSHWAHA

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 ABSTRACT
This study is basically to understand the effectiveness of the recruitment and
its process and organizational support for the better meant of the knowledge.
The effectiveness of recruitment has become increasingly popular as a measure
for identifying the Effectiveness and the process of recruitment in the
organization and as a tool for developing recruitment process. There is little
empirical research that substantiates the efficacy of recruitment in this
organization. Here the researchers have taken individual factor upon growing
up various variables and tried to find the relationship between the
demographic factors and the individual factors. The researchers have applied
some of the statistical tools like Percentage Analysis, Multiple Regression, and
Correlation. Keywords: Effectiveness, Recruitment, Support, Knowledge

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 TABLE OF CONTENT

1. INTRODUCTION
2. REVIEW OF LITERATURE
3. RESEARCH METHODOLOGY
4. DATA ANALYSIS AND INTERPRETATION
5. FINDINGS & CONCLUSION
References

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 INTRODUCTION

TCS is one of the topmost recruiters in India in the field of information technology,
therefore, it is imperative for the aspirants to know some basic yet important
information about the company before going in for the interview. This blog states some
basic information regarding TCS such as its history, organization heads, the tagline of
the company, products, and services offered etc., which should be kept in mind by the
candidates before going in for the interview. Freshers are generally offered the role of
'Software Engineer Trainee' at TCS.

Tata Consultancy Services Limited (TCS) is a subsidiary of the Tata Group, an Indian
information technology consulting and business solutions company which operates in
46 countries worldwide. TCS Limited was founded in 1968 by a division of Tata Sons
Limited. Its early contracts included punched card services to TISCO (now Tata Steel),
working on an Inter-Branch Reconciliation System for the Central Bank of India. In 1975
TCS made an electronic depository and trading system called SEMCOM for Swiss
company. TCS also established India's first software research and development center
called Tata Research Development and Design Centre in Pune, Maharashtra. On 25
August 2004, TCS became a Publicly Listed Company.

Some important aspects related to TCS are mentioned below.

 TCS is one of the largest employers of women with 35.3% of women employees.
 TCS became the first Indian IT company to reach $100 billion market
capitalization with a value of $102.6 billion in Bombay Stock Exchange and a second
Indian company ever after the Reliance industries that achieved the same in 2007.
 TCS is ranked 10th on the Fortune India 500 list in 2018.
 It is the world's 9th largest IT service provider by revenue.
 TCS is ranked 64th overall in Forbes World's most innovative company ranking,
making it the highest-ranked IT services company ever.
 In the latest, TCS, the biggest software services company, has added 12,000 jobs
in the first quarter of 2019 and sent offer letters to 30,000 fresh graduates building the
employment level in the country

Present age is the age of global competition. In this competitive environment the success or failure of
any business organisation depends upon effective use of financial resources. Consideration of non
financial activities like analysis of financial strengths, weaknesses, opportunities and threats is also
matter of importance. Thus SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a good

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technique for building a strong competitive position for any organisation. The concept of financial
SWOT was taken up to analyse the overall trends in operating and financial performances of TCS, by
appropriately linking up the relevant aspects of performance. The financial performance includes the
trends and the inter-relationships between different aspects of financial management and its overall
influence on profitability.

TCS Company Organization Heads

1) N.Chandrasekaran is the chairman of the Tata consultancy services.

2) Rajesh Gopinathan is the CEO and Managing Director of Tata Consultancy Services.

TCS Mission Statement

“To help customers achieve their business objectives by providing innovative, best-in-
class consulting, IT solutions and services & to make it a joy for all stakeholders to work
with us.”

Tagline Of The Company

Experience Certainty.

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Headquarters Of The Company

Mumbai, Maharashtra, India

LITERATURE REVIEW

[1]The aim of this report is to give an overall calculation of effectiveness of using

internet to recruit and select people with the case reference to Tesco. For this research
paper, empirical, theory building method is used. Online recruitment is effective in terms
of saving cost of recruitment and selection

[2] The purpose of this paper is to investigate the dynamic issue of managerial
recruitment for private industry. Personality and demographic variables and their
relations are to be examined to determine the extent they exclusively influence the
attraction of business professionals to managerial jobs in pretend position
advertisements.

[3] In the latest technology the web is an important section of the recruitment and job
search process. It is very little known about how companies and job seekers use the
web, and the ultimate effectiveness of this process.

[4] This study focuses on the method of recruiting the people with the help of modern
techniques. The main technique used in this paper is Internet of Things which is an
emerging technique that makes the recruitment process easier.

[5] indicates the Organization follows a glowingwell-defined recruitment policy. In

many cases the company does return the employees for the expenses earned by them. It
applied that the company has have all the databases fully computerized. All employees
said that the company hires consultancy firms or recruitment agency for hiring
candidates.

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OBJECTIVES OF THE STUDY
The study will be very useful not only to the corporate bodies but also to the parties related including
regulatory bodies, investors, academicians, planners, researchers etc. Thus the following were the
main objectives of the present research work.

1. To understand and analyse the external and internal financial strengths, weaknesses,
opportunities and threats related with TCS during the study period.

2. To evaluate the liquidity, solvency and profitability position of TCS.

3. To analyse asset management situation and Dividend assessment of TCS.

REASERCH METHODOLOGY
Methods of Data collection: -For collecting secondary data, annual reports of companies will be used
as well as financial reports available on various stock market websites are also used. No field work
has been done in order to collect primary data for the study and the study is entirely descriptive and
analytical. The secondary data, figure, facts and information has been collected from various
publications, trade publications, brochures, standard textbooks, internet journals, articles etc.

The secondary data are those which have already been collected by someone else and have
already been passed through the statistical process. Externally, these sources may include
books or periodicals reports, data services, social medias, YouTube videos, journals, research
papers and internet.

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DATA ANALYSIS AND INTERPRETATION
Collected data is analysed and interpreted with the help of accounting and statistical tools and
techniques which are as follows;

Time Period of the Study:-The study has been conducted from 2005 to 2019 ie. for 15 years

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 oprat
Year Revenue Emp cost cost investmnt
2005 146463 78246 28711 29330
2006 123104 66396 24192 36008
2007 117966 61621 24034 41980
2008 108646 55348 22621 22822
2009 94648 50924 19242 1662
2010 81809 40486 16170 3434
2011 62989 31922 13027 1897
2012 48894 24683 9776 1350
2013 37325 18806 7341 1763
2014 30029 15066 6268 3682
2015 27812.88 14483.2 6159.88 1614.41
2016 22619.52 11411.05 5497.09 2606.16
2017 18685.21 9001.39 4544.97 1256.87
2018 13263.99 6111.52 3468.17 704.62
2019 9748.47 4384.52 2550.12 421.54

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.999649
R Square 0.999298
Adjusted R
Square 0.999106
Standard
Error 1363.761
Observations 15

ANOVA
Significanc
df SS MS F eF
Regression 3 2.91E+10 9.7E+09 5216.465 1.28E-17
Residual 11 20458273 1859843
Total 14 2.91E+10

Coefficient Standard Upper Lower Upper

s Error t Stat P-value Lower 95% 95% 95.0% 95.0%
Intercept -825.554 973.874 -0.8477 0.414669 -2969.04 1317.928 -2969.04 1317.928
Emp cost 0.998558 0.219936 4.540228 0.000844 0.514483 1.482633 0.514483 1.482633
oprat cost 2.451378 0.610973 4.012249 0.002043 1.106634 3.796121 1.106634 3.796121
investmnt -0.04245 0.04416 -0.96136 0.357029 -0.13965 0.054741 -0.13965 0.054741

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OBSERVATION AND FINDINGS
Important observations and findings of the study covering different constituents of F-SWOT i.e.
financial strengths, weaknesses, opportunities and threats of TCS are given below. The average of
five years (Av5) was used most of the times for analysis in the study. Financial strengths :The
satisfactory current ratio (Av5 : 2.22 times) and quick ratio (Av5 :2.22 times) reflected good working
capital management and liquidity position. Satisfactory gross profit margin (Av5 : 27.084%) ,Net
Profit Margin (Av5 : 24.39%) &Operating Profit Ratio (Av5 :28.92%)revealed cost price effectiveness
of the operations. Debtors turnover (Av5 :6.02 times) of the company reflected strong trade credit
management. Good ROA (Av5 :121.00 times )depicted high returns on assets. Fixed Assets turnover
ratio(Av5 :5.10 times) indicated efficient management & utilisation of fixed assets. Dividend Payout
ratio(Av5 :49.85% )revealed financial strength because the firm retained 50% of the profits for future
investment & growth. combined leverage (Av5 : 0.94) analysis reflected that TCS was not a risky
company. Financial weaknesses : Total assets turnover ratio(Av5 :1.54 times) shows less frequency
with which the assets were realized .Dividend coverage ratio (Av5 :2.56 times) was low showing
inability of company to pay dividends on shares Financial opportunities : Financial opportunity for
better debt equity mix was shown by debtequity (Av5 : 0.01 times) and Total debt to owner’s fund
(Av5 : 0.01 times) ratios. Increasing ROCE in 2010- 11 (55.31%) shown opportunity to increase
productivity of long term funds. EBIT_EPS analysis revealed the direction of designing optimal capital
structure. Degree of operating leverage (Av5 : 0.94) reflected abundant financial opportunities for
tackling operating expenses of the TCS. Financial threats : There was financial threat of high interest
coverage ratio (Av5 : 649.91) and financial charges coverage ratio(Av5 : 684.97) shown inability to
pay fixed charges. Inventory Turnover ratio was very high reflected threat of inefficient
manangement of inventory(Av5 : 5439.384 times) decreasing gross profit margin in 2012-13.

CONCLUSION
On the basis of analysis of capital structure ratios, the solvency position of these corporations as a
whole could not be called sound. Moreover the policy of employing more borrowed funds as
compared to own funds could not be justified as financial expenses reduced the profits. The current
and quick ratio calculated have shown that the liquidity position was sound for these organisations

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.Trends of sales, PBIT, PAT and EPS justified financial strength of satisfactory profitability.Thus the
overall profitability of TCS measured with the help of different ratios can be said to be satisfactory
,they had financial opportunity to earn maximum or optimum profits for economic prosperity. total
assets turnover was very poor & on the contrary Fixed Assets turnover revealed financial strength of
sufficient assets held by the company. After conclusion of capital structure, profitability, working
capital, assets management and dividend decision, sustainable growth rate reflected financial SWOT
in an effective manner. The average growth rate of TCS indicated financial opportunity of better debt
equity mix and dividend payout.

REFERENCES

[1]. Bansal S.C.; "Financial Measures of Performance in Public Enterprises", Indian Journal of
Commerce, Lucknow, Vol. 141, No. 4, December, 1984, pp. 107-130.

[2]. Hansen Randall S. and Hansen Katherine; “Using a SWOT Analysis in Your Career Planning”,
Published by Quint Essential Careers, Deland, Florida, 1996, pp. 1-4.

[3]. BhattacherjeeSamata; "SWOT Analysis for Babhanan Sugar Mills Ltd.", Strategic Management :
Indian Experience, Gyan Publishing House, New Delhi, 1997, pp. 267-276.

[4]. Murugan M. Sakthivel; "Performance Evaluation of ONGC - A Case Study", Indian Journal of
Public Enterprise, Institute of Public Enterprise Research, Allahabad, Vol. 17, No. 31, Dec. 2001, pp.
83-91.

[5]. KhuranaAjeet; “Understanding and Using SWOT Analysis”, from businessmajors.about.com,

About, Inc., New York Time Co., 2005, pp 1-5.

[6]. Sisodiya Amit Singh and MannavarSailaja; "Balsara'sTurnaround :Dabur Delivers", Chartered
Financial Analyst, The ICFAI University Press, Hyderabad, Jan., 2006, pp. 62-65.

[7]. Gupta Santosh; "Research Methodology and Statistical Techniques", Deep & Deep Publications,
New Delhi, 2001, p. 105.

[8]. Kishore Ravi M.; "Management Accounting", Taxmann Allied Services Pvt. Ltd., New Delhi, 2000,
p. 26.

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[9]. Khan M.Y. and Jain P.K.; "Theory and Problems in Financial Management", Tata McGraw-Hill
Publishing Company Ltd., New Delhi, 2000, p 9.1. JOURNALS & PUBLICATIONS

[10]. Accounting Research, ICFAI University, Hyderabad.

[11]. Applied Finance, The ICFAI University. The Institute of Chartered Financial Journal Analysis of
India, Hyderabad.

[12]. Finance India, Indian Institute of Finance, Ashok Vihar-II, Delhi.

[13]. Indian Journal of Accounting, Journal of Indian Accounting Association, Publi

[14]. NSE News, National Stock Exchange of India Ltd. Mumbai.

INTERNET SITES

[15]. www. indiapublicsector.com

[16]. www.moneycontrol.com

[17]. ww.google.com

[18]. www.investopedia.com

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