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Summer Internship report on
TAMIL NADU STATE TRANSPORT CORPORATION LIMITED - KANCHEEPURAM
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Contents
EMERGENCE OF KANCHEEPURAM SUB DIVISION ............................................................................... 4 AWARDS AND RECOGNITION............................................................................................................. 5 MANAGEMENT HIERARCHY ............................................................................................................... 6 FINANCIAL PERFORMANCE REPORT ................................................................................................... 7 AREA OF FOCUS............................................................................................................................... 13 SITUATION ANALYSIS ............................................................................................................... 14 RESEARCH UNDERTAKEN ................................................................................................................. 14 RECOMMENDATION ........................................................................................................................ 15 MY EXPERIENCE............................................................................................................................... 17 CONCLUSION ................................................................................................................................... 18 BIBLIOGRAPHY ................................................................................................................................ 19
INTRODUCTION:
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VITAL ROLE OF TRANSPORT:
Transport Department is essential convenience with which people not just connect but progress. Throughout history, people’s progress has been sustained on the convenience, speed and safety of the modes of transport. Road Transport occupies a primary place in today’s world as it provides a reach unparalleled by any other contemporary mode of transport. Road transport still remains the most potent method when it comes to convenience with respect to various aspects.
HISTORY AND BACKGROUND OF TNSTC:
Till 1971, State Transport Operations were under the control of Tamil Nadu Government. After 1971, this was entrusted to various Transport Corporations registered under the Companies Act, 1956. The Pattabiraman Committee in 1976 and the Thillainayagam Committee in 1990 gave various recommendations for the improvement of the State Transport Undertakings and they were implemented wherever possible.
OVERVIEW OF TNSTC:
Tamil Nadu State Transport Corporation (TNSTC) is the Government public transport bus operator in Tamil Nadu, India. TNSTC is the second largest and most profitable transport in India and it is well known for its route coverage almost to every remote area within Tamil Nadu. TNSTC bus fare is the lowest in the country. TNSTC comprises of six major divisions and they are as follows Chennai Villupuram Kumbakonam Salem Coimbatore Madurai There are also sub divisions which are sliced based the geography.
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EMERGENCE OF KANCHEEPURAM SUB DIVISION:
Based on the recommendations of Expert Committee on Transport Sector, the Government ordered the formation of “Puratchi Thalaivar MGR Transport Corporation Ltd with headquarters at Kancheepuram bifurcating the Thanthai Periyar Transport Corporation Ltd., and the Pattukottai Azhagiri Transport Corporation Limited. The Puratchi Thalaivar MGR Transport Corporation Limited started functioning with effect from 01.04.92 with a fleet strength of 639. The fleet strength of the Corporation as on 31.03.2003 was 753. PTMGR Transport Corporation Ltd was renamed as Tamil Nadu State Transport Corporation, (Villupuram Division-III) Ltd Kancheepuramon 01.07.97and its operational jurisdiction covers Kancheepuram and Thiruvallur districts.
STATISTICAL HIGHLIGHTS:
TNSTC (Villupuram division-III) with its headquarters at Kancheepuram binds 192 routes in which 8 routes are denoted as “Revenue flood” routes which contributes around 32.5 % of total revenue. The Revenue flood routes along with the details are as follows,
S.No
Route number
From- To
No. Services
Of Fare In Rs.Ps
1 2 3 4 5 6 7 8
76B 76C 80 108 108B 121 151 202N
KANCHEEPURAM - CHENNAI KANCHEEPURAM - CHENNAI CHENGALPET - KANCHEEPURAM CHENNAI (K.B.S) - KALPAKKAM CHENNAI (K.B.S) – MAMALLAPURAM TAMBARAM - TINDIVANAM CHENNAI (K.B.S) - VILLUPURAM TRICHY - CHENNAI (K.B.S)
14 12
20.00
22.50
2 11 4 8 4 6
16.50 25.00 24.50 28.00
45.00 93.00
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AWARDS AND RECOGNITION:
The details of Region-wise award particulars for the best vehicle productivity, best Lub-oil usage etc. from the year 1982 is enclosed. VILLUPURAM REGION Year of Awards Awards given for Awards given for Sl. No Awards given by Received the year 1. 1982 1981 – 82 Vehicle Productivity at National level N.P.C. 2. 1983 1982 – 83 Vehicle Productivity at National level N.P.C. 3. 1984 1983 – 84 Vehicle Productivity at National level N.P.C. 4. 1987 1985 – 86 Vehicle Productivity at National level N.P.C. 5. 1988 1987 – 88 Best vehicle performance 2nd Prize A.S.R.T.U. 6. 1990 1988 – 89 Best vehicle performance 2nd Prize A.S.R.T.U. Best usage of Lub-oil performance – 7. 1993 1991 – 92 A.S.R.T.U. 2nd Prize Best employer Award for employment National Award by 8. 1993 1991 – 92 to physically Handicapped. President of India 9. 1994 1993 – 94 Best employer Nimbkar Award Govt.of Tamilnadu 10. 1994 1992 – 93 Best vehicle productivity 1st Prize A.S.R.T.U 11. 1994 1992 – 93 Best usage of Lub-oil performance A.S.R.T.U 12. 1997 1995 – 96 Best vehicle productivity performance A.S.R.T.U Merit certificate for the best 13. 1999 1997 – 98 A.S.R.T.U performance Best vehicle productivity performance 14 2002 2000 – 01 A.S.R.T.U – 1st Prize Best vehicle productivity performance 15. 2004 2002 – 03 A.S.R.T.U – 2nd Prize Maximum improvement in vehicle 16. 2004 2002 – 03 A.S.R.T.U productivity 17. 2006 2004 – 05 Vehicle Productivity at National level A.S.R.T.U 18. 2007 2005 – 06 Vehicle Productivity at National level A.S.R.T.U Best vehicle productivity performance 19. 2007 2005 – 06 A.S.R.T.U – 2nd Prize Maximum improvement in tyre life 1st 20. 2008 2006 – 07 A.S.R.T.U Prize Best vehicle productivity performance 21. 2008 2006 - 07 A.S.R.T.U 2nd Prize
KANCHEEPURAM REGION 1. 2000 1998 – 99
Best vehicle productivity performance
A.S.R.T.U.
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MANAGEMENT HIERARCHY:
CHAIR MAN
MANAGING DIRCTOR mmama
CAO
SECRETARY
G.M (VPM)
G.M (KPM)
G.M (VLR)
F.A & C.A.O
GENERAL MANAGER
D.M (A/C)
D.M (C)
D.M (TEC)
D.M (P)
D.M (WRKS)
D.M (P)
A.M
A.M (O)
A.M (P)
A.M (T)
DISP
MACH
I.R
A.M (TYR)
A.M (F.C)
A.M (WRK
A.M (B.B)
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FINANCIAL PERFORMANCE REPORT: Financial report for NOV’ 08
(Amount Rs in lakhs) FOR THE MONTH OF NOV ‘08’
BUDGET
AMOUNT PPKM 1290 1505 4.00 1461 0.00 8.00 7.00 7.00 124.00 331.2 1330.02 5.OO 166.14 0.20 9.35 7.75 8.10 141.35
SL.NO
A. 1.
DESCRIPTION
REVENUE Operational revenue TOWN MOFUSSIL OTHERS TOTAL
ACTUAL
AMOUNT 288.50 1228.05 3.59 1520.14 0.00 0.00 0.88 7.06 141.35 PPKM 1153 1433 3.00 1373 0.00 0.00 1.00 6.00 128.00
2. 3. 4. 5. 6.
Contract carriage hire charges Profit on sale of buses Sale of scraps Other non operation revenue Reimbursement of loss on sale of SCT
TOTAL ****A****
b. 1. 2. 3. 4. 5. 6. 7. 8. VARIABLE H.S.D.OIL Lubricants New tyres ,tubes&flaps Re trading charges Springs Spares and accessories COST
1832.89
1607
1669.43
1500
811.18 7.12 37.49 19.81 3.59 25.15
711.00 6.00 33.00 17.00 3.00 22.00 3.00 4.00
764.19 6.09 50.26 16.11 4.52 25.80 1.59 4.14
690.00 6.00 45.00 15.00 4.00 23.00 1.00 4.00
Major body repairs & body renovation 3.42 (only cost of materials) Repairs (includes only labour charge paid 4.56 to outsiders)
TOTAL ****B**** 912.32 CONTRIBUTION(A-B)
920.57
800.00 807.00
872.70 796.73
788.00 720.00
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SL.NO
c. 1.
DESCRIPTION
FIXED COST: ESTABLISHMENT a. Salaries & wages b. P.F Contribution c. Gratuity & Pension d. Bonus & Exgratia e. Canteen f.Batta/collection batta/incentive g. other welfare expenditure TOTAL****C****
FOR THE MONTH OF NOV ‘08’
BUDGET
AMOUNT PPKM
ACTUAL
AMOUNT PPKM
606.72 612.26 18.75 32.25 6.25 50.73 27.50
532.00 54.00 16.00 28.00 5.00 44.00 24.00
667.86 59.76 18.75 32.25 6.64 52.15 27.51
603.00 54.00 17.00 29.00 6.00 47.00 25.00
803.46
84.84 121.38 37.48 100.00
705.00
74.00 106.00 33.00 88.00
864.92
82.90 121.38 32.92 83.95
781.00
75.00 110.00 30.00 76.00
2. 3. 4. 5.
M.V TAX Depriciation Interest Other charges TOTAL****D**** PROFIT/LOSS (A-B-D)
1147.16 -226.59
1006.00 -199 -92 ------
1186.07 -389.34 -267.96 110.69
1072.00 -352 -242.00 ------
CASH GENERATION -105.21 EARNING IN KILOMETERS(in lakhs) 114.04
DESCRIPTION Sundry debtors Sundry creditors
GOVT 237.12 0.00
OTHER CORPN. 283.33 24.33
SUPPLIERS 0.00 0.00
OTHERS 0.00 0.00
TOTAL 520.45 24.33
DESCRIPTION INVENTORY PER BUS
OPTIMUM LIMIT 7500.00
ACTUALS 4219.11
TOTAL(RS. in LAKHS) 36.20
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FINANCIAL PERFORMANCE REPORT FOR DEC ‘08’
SL.NO
A. 1.
DESCRIPTION
REVENUE Operational revenue TOWN MOFUSSIL OTHERS TOTAL
FOR THE MONTH OF DEC‘08’
BUDGET
AMOUNT 344.60 1352.28 5.00 1701.88 0.20 9.35 7.75 8.10 141.35 PPKM 1299 1491 4.00 1452.00 0.00 8.00 7.00 7.00 121.00
ACTUAL
AMOUNT 342.63 1338.99 6.13 1687.75 0.00 19.91 16.46 9.66 141.35 PPKM 1186 1469 5.00 1406.00 0.00 17.00 14.00 8.00 118.00
2. 3. 4. 5. 6.
Contract carriage hire charges Profit on sale of buses Sale of scraps Other non operation revenue Reimbursement of loss on sale of SCT
TOTAL****A****
b. 1. 2. 3. 4. 5. 6. 7. 8. VARIABLE H.S.D.OIL Lubricants New tyres ,tubes&flaps Re trading charges Springs Spares and accessories COST
1868.63
1594.00
1875.13
1562.00
834.33 7.20 38.61 20.37 3.69 25.84
710.00 6.00 33.00 17.00 3.00 22.00 3.00 4.00
788.39 6.54 46.67 18.06 6.33 30.50 1.99 4.83
657.00 5.00 39.00 15.00 5.00 25.00 2.00 4.00
Major body repairs & body renovation 3.52 (only cost of materials) Repairs (includes only labour charge paid 4.69 to outsiders)
TOTAL ****B****
CONTRIBUTION(A-B)
938.25 930.38
801.00 794.00
903.31 971.82
752.00 809.00
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SL.NO
c. 1.
DESCRIPTION
FIXED COST: ESTABLISHMENT a. Salaries & wages b. P.F Contribution c. Gratuity & Pension d. Bonus & Exgratia e. Canteen f.Batta/collection batta/incentive g. other welfare expenditure
FOR THE MONTH OF DEC ‘08’
BUDGET
AMOUNT PPKM
ACTUAL
AMOUNT PPKM
596.19 61.18 18.75 32.25 6.25 51.76 27.50
509.00 52.00 16.00 28.00 5.00 44.00 23.00
631.66 60.91 18.75 32.25 5.48 51.70 29.86
526.00 51.00 16.00 27.00 5.00 43.00 25.00
TOTAL****C****
2.
793.88
85.04 121.38 36.58 100.00
677.00
73.00 104.00 31.00 85.00
830.61
80.64 121.38 36.50 85.82
692.00
67.00 101.00 30.00 71.00
M.V TAX Depriciation Interest Other charges
TOTAL****D****
PROFIT/LOSS (A-B-D) CASH GENERATION
1136.85 -206.47 -85.09
972.00 -176.00 -73.00 --------
1154.95 -183.13 -61.75 120.07
962.00 -153.00 -51.00 --------
EARNING IN KILOMETERS(in lakhs) 117.20
DESCRIPTION Sundry debtors Sundry creditors
GOVT 237.12 0.00
OTHER CORPN. 283.33 24.33
SUPPLIERS 0.00 0.00
OTHERS 0.00 0.00
TOTAL 520.45 24.33
DESCRIPTION
FOR THE MONTH
PREV MONTH
FOR THE MONTH PREV YEAR 16757.06
CASH GENERATION/BUS -7025.03
-31230.77
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FINANCIAL PERFORMANCE REPORT FOR JAN ‘09’
SL.NO
A. 1.
DESCRIPTION
REVENUE Operational revenue TOWN MOFUSSIL OTHERS TOTAL
FOR THE MONTH OF JAN ‘09’
BUDGET
AMOUNT 341.89 1439.06 5.00 1785.95 0.20 9.35 7.75 8.10 141.35 PPKM 1289.00 1529.00 4.00 1480.00 0.00 8.00 6.00 7.00 117.00
ACTUAL
AMOUNT 354.12 1341.14 5.38 1700.64 0.10 0.00 6.08 7.39 141.35 PPKM 1194.00 1470.00 4.00 1406.00 0.00 0.00 5.00 6.00 117.00
2. 3. 4. 5. 6.
Contract carriage hire charges Profit on sale of buses Sale of scraps Other non operation revenue Reimbursement of loss on sale of SCT
TOTAL ****A****
b. 1. 2. 3. 4. 5. 6. 7. 8. VARIABLE H.S.D.OIL Lubricants New tyres ,tubes&flaps Re trading charges Springs Spares and accessories COST
1952.70
1618.00
1855.56
1534.00
858.82 7.29 39.88 20.97 3.80 26.61
712.00 6.00 33.00 17.00 3.00 22.00 3.00 4.00
769.35 8.20 25.51 16.54 6.52 27.08 1.76 4.28
636.00 7.00 21.00 14.00 5.00 22.00 1.00 4.00
Major body repairs & body renovation 3.62 (only cost of materials) Repairs (includes only labour charge paid 4.83 to outsiders)
TOTAL ****B****
CONTRIBUTATION (A-B)
965.82 986.88
800.00 818.00
859.24 996.32
711.00 824.00
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SL.NO
c. 1.
DESCRIPTION
FIXED COST: ESTABLISHMENT a. Salaries & wages b. P.F Contribution c. Gratuity & Pension d. Bonus & Exgratia e. Canteen f.Batta/collection batta/incentive g. other welfare expenditure
FOR THE MONTH OF JAN’09’
BUDGET
AMOUNT PPKM
ACTUAL
AMOUNT PPKM
616.39 61.28 18.75 32.25 6.28 54.19 27.50
511.00 51.00 16.00 27.00 5.00 45.00 23.00
656.09 61.99 18.75 32.25 6.23 53.80 32.17
543.00 51.00 16.00 27.00 5.00 44.00 27.00
TOTAL****C****
2.
816.64
85.32 121.30 36.70 100.00
677.00
71.00 101.00 30.00 83.00
861.28
81.26 121.38 35.53 73.19
712.00
67.00 100.00 29.00 61.00
M.V TAX Depriciation Interest Other charges
TOTAL****D****
PROFIT/LOSS (A-B-D)
1160.04 -173.16
961.00 -143.00 -43.00 ------
1172.64 -176.32 -54.94 120.93
970.00 -146.00 -45.00 -------
CASH GENERATION -51.78 EARNING IN KILOMETERS(in lakhs) 120.67
DESCRIPTION INVENTORY PER BUS
OPTIMUM LIMIT 7500.00
ACTUALS 2757.33
TOTAL(RS. in LAKHS) 23.52
DESCRIPTION Sundry debtors Sundry creditors
GOVT 237.12 0.00
OTHER CORPN. 283.33 24.33
SUPPLIERS 0.00 0.00
OTHERS 0.00 0.00
TOTAL 520.45 24.33
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AREA OF FOCUS:
FINANCE
Financial management seeks to plan for the future such that a personal or business entity has a positive flow of cash. The process of financial management may also include identifying and trying to work around the various risks to which a particular project may be exposed. From an organizational standpoint, the process of financial management is the process associated with financial planning and financial control. Financial planning seeks to quantify various financial resources available and plan the size along with the timing of expenditures. Financial decision-making is also an important part of the modern day financial management process. The particular entities involved in financial management also need to be able to take the financial decisions that are intended to benefit them in the long run and achieve their financial aims, which is the basic premise of financial management.
KEY FACTORS:
TNSTC is a service oriented organisation and does not keen on profits. The motive is to reduce the expense and to increase the revenue without causing any damage to regular service to commuters. The study is compelled under a typical circumstance of making profits either by minimizing the operational cost or choosing a right alternative. Hence the objective is to choose the right alternative that should have the right impact without any flaws. The alternative is chosen in such a way that benefits both the organization and people.
SPOTLIGHT:
The fact prevailed in that area was, during the peak hours (8.30 am to 9.30am) people preferred mini buses and private buses than government transport. It’s because of the student population who are having free bus passes crowded the government buses. It made the other people to choose private transport as they want to have fast and crowd less means of transport. So private buses used this mentality of the people and increased their buses during peak hours. It caused transport corporation immense loss as most part of the commuters used free service.
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SITUATION ANALYSIS:
According to the research undertaken, the major student population using free bus passes are from the routes of 76 B, 76C, 79. There are around 6 schools and a polytechnic college in these routes and they issued free bus passes. These routes are from Kancheepuram to Chennai through Kancheepuram bypass. Many people use the buses of these routes to Chennai for trade and business purposes in the morning session Hence there is a clash in the peak hours (8.30 am to 9.30 am) between the people and the students. The business people and traders carry heavy baggage that lead to discomfort in travelling amidst the student population.
RESEARCH UNDERTAKEN:
The routes were tracked continuously for a week to estimate the amount of losses incurred. It’s found that the losses incurred are larger numbers than expected. At an average, 70 people were travelling during the peak hours of which nearly 60% were students. So the transport corporation is able to collect the charges from the remaining 40%. The calculations are as follows. ANALYSIS: Total members travelling in the bus Student population Possible ticket buyers Possible lost passengers in a bus = 70 = 42 = 28 (70 - 42) = 22
(The figure is achieved as a minimum average value since the bus holds the strength of 50) Average revenue lost in a bus (A) = 22 *15.50= Rs 341
(The average ticket rate in this route is Rs 15.50 for paid passengers) Loss to TNSTC by free pass (B) = Rs 1.76*42= Rs 73.92
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(Government reimburses only 56% to TNSTC for the loss incurred due to free bus pass and the rest 44% is bore by TNSTC) Total loss incurred per bus (A+B) Total buses in peak hours Total loss incurred per day Minimum number of working days in a month Total loss incurred in a month Academic months in schools Total loss incurred in a year = Rs 414.92 = 10 = Rs 4149.20 (10*414.92) = 22 = Rs 91,282.40 (22*4149.20) = 10 months = Rs 9, 12, 824 (10*91,282.40)
If this loss is overcome by any alternatives it would result in a huge revenue generation. This revenue would really gear up the assets of the TNSTC and it certainly move to the number one spot in India.
RECOMMENDATION:
The possible way to overcome the losses without harming the society would be introduction of separate buses for the free bus pass holders. The justification is employed with the help of the following calculations. Student population per day Number of students likely to be travel in a bus Number of buses required for a day Diesel required for the student special buses per day = 420 = 70 = 6 (420/70) = 24litres
[A bus can travel 5 kilometres per litre. The schools are likely to be located in a radius of 10 kilometres. Hence a bus consumes 4litres (up & down). So 6 buses consume 24 litres (6*4)] Cost of diesel per litre = Rs 34
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Total cost of diesel for students special buses per day (A) = Rs 816 (34 * 24) Total cost reimbursed by the government (Government reimburses 56% to TNSTC) Total expense for student special buses per day (A – B) Minimum number of working days in a month Total cost for student special buses per month Academic months in schools Total cost for student special buses per year (E) Average additional revenue per day from 6 buses = Rs 76.80 (816 - 739.20) = 22 = Rs1689.60 (22*76.80) = 10 months = Rs 16,896 (1689.60*10) = Rs 480 (B) = Rs 739.20(1.76*420)
(A return bus from the school is likely to carry an average of 20 people at an average rate of Rs 4 per head. Hence 6 buses likely to carry 120 passengers per day and that is the additional revenue) Average additional revenue per month from 6 buses Academic months in schools Average additional revenue per year from 6 buses (R1) = Rs10560 (480*22) = 10 months = Rs1, 05,600 (10560 *10)
Revenue gained through 30 passengers who are likely to board the peak hour bus in the absence of bus pass holders per bus in a day = Rs 465 (30*15.50) (The average ticket rate in this route is Rs 15.50 for paid passengers) Revenue gained by 10 peak hour buses per day Revenue gained by 10 peak hour buses in a month Academic months in schools Revenue gained by 10 peak hour buses in a year (R2) = Rs 4650 (465*10) = Rs 1, 02,300 (22* 4650) = 10 months = Rs 10, 23,000(10*1, 02,300)
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Total revenue in a year R (R1+R2)-E = (Rs 1, 05,600 + Rs 10, 23,000)-Rs 16896 Total revenue generated in a year through student special buses by TNSTC = Rs11, 11,704
LIKELY NET PROFIT FOR TNSTC
= 1, 98,880 PER YEAR (Rs11, 11,704 - Rs 9, 12, 824)
MY EXPERIENCE:
My summer internship begun with the presentation given by Mr.Radhakrishnan, Deputy Manager of Kancheepuram division. He explained briefly about the organization structure, financial status, man power, fleet management and also about the diesel consumption. I and my team mate decided to focus on the financial performance as it would help in the future carrier. We found a key issue that was found to incur huge loss. The recommendation given by us did not get approved at the initial stage. After undergoing several researches we remodelled our recommendation and presented to them. Our report drew the attention of the higher officials and the proposal was accepted. I had a wonderful experience with the staffs as they furnished me with all the details. It was a new experience to me to work in a public sector as they had a different type of work culture. I found a good harmony with the staffs working there and the relationship between the top level management with the workers found to be too good as they shared their opinions explicitly. I had great opportunity to work with the higher officials and it paved me to learn the organization culture. Their way of handling the situation, communication and their management ethics helped me to understand various work pressures in the organization.
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CONCLUSION:
The summer internship gave me an experience of issues happening in the organization and the process of decision taking and the steps to success. It provided me the essential of organization learning and ethics. This experience gave a great exposure of learning both theoretically and practically. The analysis gave an overview about the importance of “Finance Department” in an organization and its vital role in the growth of the organization.
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BIBLIOGRAPHY:
www.tnstc.in www.tnstcvpm.org www.google.com
Annual report of TNSTC, Kancheepuram.
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