CHAPTER-I

TATA ELXSI LIMITED

INTRODUCTION OF THE COMPANY
Introduction to company:
Tata Elxsi Limited is engaged in the design and development of computer
hardware and software. The Company operates in two segments: System integration &
support, and Software Development & Services. Its system integration & support
segment is engaged in implementing and integrating systems and solutions for
computing, broadcast, virtual reality, storage, and disaster recovery. Its software
development & services segment comprises three business divisions: Embedded
Product Design, which provides technology consulting, new product design,
development, and testing services for the broadcast, consumer electronics, healthcare,
telecom and transportation industries; Industrial Design (ID), which services a range
of industries, including automotive, consumer electronics, retail and consumer goods
and healthcare, and Visual Computing Labs (VCL), which provides three dimensional
(3D) animation services, addressing content development for feature films, television
and advertising commercials.

Tata Elxsi also provides solutions and services for emerging technologies such
as IoT (Internet of Things), Big Data Analytics, Cloud, Mobility, Virtual Reality and
Artificial Intelligence. This is supported by a network of design studios, development
centers, and offices worldwide. Tata Elxsi is a listed company and headquartered
in Bangalore, India. It has various business units like broadcast, transport,
communication, industrial design, medical etc. Apart from Bangalore, it also has
offices in Mumbai, Pune, Chennai, Trivandrum, Kolkata and Chandigarh.

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 NEED FOR THE STUDY:

The need of the study is to know about the industry which has well
reputation in the market, and to know about management, manpower, resources
as well as to know about the maintenance of the quality and quantity of the
products in the market and to analyze social corporate reasonability of the
company towards to society and marketing strategy and hr strategy used in
company. And complete details of the company.

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 OBJECTIVES OF THE STUDY

To study the all Tata Elxsi products and also customers intention needs in the products.
To know the growth rate of the company.
To studied the functional areas and there performance.
To know the company social responsibilities towards to the society.
To know the companys position in the Indian and international market environment.

METHODOLOGY OF THE STUDY

To analyze the data i use both qualitative tools like graphs, pie, charts, and
SWOT analysis.
The study is based on the
Annual report
Company websites
Industry web sites
The study was conducted on the primary source of data collection and
secondary source of the data collection.

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Primary data collection: The data which are collected from the field under the
control and supervision of an investigator Primary data means original data that has
been collected specially for the purpose in mind This type of data are generally afresh
and collected for the first time It is useful for current studies as well as for future
studies For example: your own questionnaire.
Secondary data collection: Data gathered and recorded by someone else prior to and
for a purpose other than the current project Secondary data is data that has been
collected for another purpose. It involves less cost, time and effort Secondary data is
data that is being reused. Usually in a different context. For example: data from a
book.

SCOPE OF THE STUDY

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 The scope of the study is to deal and discuss about the growth of Tata
Elxsi ltd in India and its diversifications and recent developments. It also helps to
analyze present and future trends along with the companys market size and
impacts on the Indian economy.

LIMITATIONS OF THE STUDY

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 This study is not based on the direct customer interactions.
Information gathered was mainly from secondary data, i.e.., from different
website sources.
As the information is based on secondary data, slight variations may occur.
The findings and suggestions are taken only secondary data source.
There is no accuracy
The statistical data is collected from secondary source and hence the
validity of the data may be subjected to certain error

PLAN OF THE STUDY

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Chapter-1: deals with introduction and methodology of the company tata elxsi

Chapter-2: present the profile of animation industry India

Chapter-3: present the detailed overview of the company tata elxsi

Chapter-4: present the detail overview of the functional areas of the company
tata elxsi

Chapter-5: give the findings, suggestions and conclusion of the company tata
elxsi

CHAPTER-II

7
 PROFILE OF ANIMATION INDUSTRY
INDIA
Introduction
Technological revolutions sometimes bring unexpected opportunities for countries.
India, a relative laggard among developing countries in terms of economic growth,
seems to have found such an opportunity in the IT revolution as an increasingly
favoured location for customized software development. Indias success at software
has led to speculation about whether other developing countries can emulate its
example, as well as whether this constitutes a competitive challenge to software
industries in the developed world.

In this essay, we focus on the Indian software export sector. After briefly describing
the main features of the industry, we analyze the major challenges it faces and its
prospects for the future. We also briefly discuss the implications of the Indian
experience for other developing regions and for software industries in the developed
world. Our analysis is based on field visits to over 40 Indian firms in Bangalore,
Bombay, Hyderabad and Delhi, where we interviewed nearly 75 senior managers and
software professionals.1 These interviews were loosely structured around a
questionnaire that we developed in consultation with industry experts and were
followed by interviews with fifteen U.S. based firms that had outsourced software
development to these firms in India.2 We complemented the field research with
publicly availabledata on firms (NASSCOM, 1994-98), as well as information from a
questionnaire survey administered to over a hundred Indian software exporters.

The Indian software industry has attracted a disproportionate amount of interest as a

source of software. Its $4 billion software revenues in revenues in 1998-99 is just a
tiny fraction of the estimated world software market of over $300-500 billion.3 Most
of impressive of all, the industry has grown at over 50% per year over the last five or
six years, and if current trends persist, software exports may account for a full quarter
of Indian exports within the next five years4. Tables 1a and 1b describe the growth in
revenues and employment in the software industry. The Indian software industry faces
a number of challenges as the labour cost advantages diminish and competition from
other countries with supplies of educated and under-utilized workers increases.

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The Indian success story has, been a combination of resource endowments, a mixture
of benign neglect and active encouragement from a normally intrusive government,
and good timing. By the late 1980s, India was graduating approximately 150,000
English-speaking engineers and science graduates, with only a limited demand for
their services from the rest of the economy. By the late 1980s as well, Indias
economic liberalization was also well under way. Around this time, the information
technology revolution in the developed world had begun to take root and shortages of
skilled programmers and IT professionals were beginning to develop. By this time a
number of Indians were working in very substantial numbers in US firms. Some of
them played an important, although as yet undocumented role, in bridging the gap and
matching the buyers in the US with the suppliers in India. Responding quickly to the
growing demand, a number of Indian firms arose in quick time. The State encouraged
this growth by considerably simplifying the process for obtaining the numerous
clearances and permits that any firm in the organized sector in India typically needs.
Finally, given the many weaknesses in the Indian financial system, Indian
entrepreneurs greatly benefited from the low levels of initial investment required to
start a software services firm.

Section 2 places the development of the Indian software industry in an international

and historical context. Section 3 discusses the main features of the industry. Section 4
distills our findings on the supply of human capital, finance and infrastructure to the
Indian software industry. Section 5 describes how software outsourcing to India is
organized, and the following section tries to assess future prospects for the industry.
Section 7 summarizes the discussion and concludes.

Background
Software development can be broadly categorized into custom developed software and
packages or generic software products. Software companies providing customized
software concentrate on particular vertical market segments or domain areas, like
retail, banking, and manufacturing. Software products may be targeted to a vertical
segment or may cut across segments, but rarely to a specific user. Information
technology consultants, such as Anderson Consulting, provide solutions, which may
involve some combination of custom developed software and commercial off-the-
shelf software and hardware products.

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Software development involves a number of stages: Conceptualization, requirement
analysis, high-level design, lowlevel design, coding, testing and support. These stages
roughly correspond to stages described in the waterfall model of software
development (Fig. 1). The value added is typically greater in earlier stages of
development namely requirement analysis and high level design. As we discuss
Indian software firms largely provide services rather than products. Further, Indian
software exports consist largely of low-level design, coding, and maintenance
services.

The Indian software industry consists of a large and growing number of firms: Using
NASSCOM membership as a measure, the number of Indian software firms has grown
from around 430 in 1996-97 to over 620 in 1997-98. Many of these firms entered the
industry during or just before the economic liberalization in 1991.

The early entrants into the industry, had close links with computer hardware
development. Heeks (1996, p. 69) notes that Tata Consultancy Services, (TCS) was
the first firm to agree to export software in return for being able to import hardware, in
1974. TCS, currently the largest Indian software firm, employs around 9000 people.
Entry barriers were low because firms could start small, since initial investments
required were fairly small, little more than office space and communication facilities.
With the growing need for maintenance services many firms began by providing these
services, often by sending software programmers to the client on a temporary basis.

The entrants were of two types. The first type were existing firms diversifying into
software. These included computer hardware firms, such as HCL and Wipro. There
were others such as BFL, and Satyam that were, before their metamorphosis as
software firms, divisions of large and medium industrial groups. The other type of
entrants was new start-ups, such as PCS, Infosys and Silverline.

Entry strategies varied and not all firms entered to provide software export services.
Contrary to popular belief, as Table 2 shows, the industry is not concentrated in
Bangalore, although Bangalore is certainly a very prominent location for firms in the
industry. With the exception of the region around Delhi, there are no noticeable
clusters in the northern or the eastern regions of India. The distribution of engineering
colleges, concentrated in the western and southern regions, closely mirrors the
distribution of the software industry. As Table 3 shows, engineering colleges are

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heavily concentrated in these two regions, which also account for the greater part of
employment in the Indian software industry.

Indian Software: Potential and Prospects:

Supplying programmers or doing simple coding or code conversion does not require a
great deal of knowledge about the customers business domain or specialization in
specific technologies. Lacking such expertise and experience, Indian firms have been
willing to adapt to any new domain. The most important determinant of competitive
success appears to have been the ability to provide trained software programmers at
low cost upon demand. The expertise levels of Indian firms on UNIX and WinNT
platforms are considered to be on par with other US firms. There is evidence of long-
term relationships. Of the firms we surveyed, over 93% said that their most important
export contract involved work for a company they knew earlier or was part of an
ongoing relationship with the client.

The existing software service exporters face two major challenges that are closely
related. First, the difficulty in attracting and retaining talented software professionals,
and second, the challenge of developing beyond competing on low costs alone in an
environment with rapidly rising labor costs. Firms are moving up the value chain by
accumulating knowledge about the industry segments for which they currently
develop software. This can be understood by re-visiting the software development. At
present, Indian firms provide services for the lower portion of the waterfall model and
moving up the value chain involves providing conceptualization, requirement
analysis and design services as well. However, some believe that such a strategy,
which ultimately involves getting involved in business process reengineering for
overseas clients, is not feasible for most Indian firms. The better-established firms we
interviewed, however, seemed to believe that they could successfully develop the
ability and credibility for providing IT and business consulting services to clients
worldwide.

The strategies of accumulating domain knowledge and business expertise are not easy.
Firms will have to invest a great deal in hiring, training and retaining their employees,
in expanding overseas and establishing subsidiaries in countries such as the US and
Western Europe, as well as in acquiring the technological and business expertise
needed. These firms will also be able to execute large, complex projects on their own

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with little or no supervision from US clients. In time, they may even be able to
anticipate the business needs of their clients and offer them solutions. These firms can
acquire other Indian software firms (or their assets), or employ the latter as
subcontractors.

Programming Services

The first commercial electronic computersusually known as "mainframes" were

sold in the early 1950s. They were very expensive, typically renting for $100,000 a
year. Most computer-owning corporations undertook their own program development
and operations, for which they maintained a staff of up to thirty or forty individuals.
This was not a disproportionate expense in relation to the overall costs of running a
computer.

By the mid-1950s, however, mainframe prices had fallen significantly, and computer
use diffused rapidlythe national computer stock rising from 240 mainframes in 1955
to over four thousand by 1960. Owners of these more moderately priced computers
were often unwilling to recruit a permanent programming staff, preferring instead to
commission programs from software contractors. Many of the early programming
services firms were established by programming entrepreneurs to satisfy this demand.
The first such firm, the Computer Usage Corporation (CUC), was incorporated in
New York in 1955 by two former IBM programming employees, and the firm initially
specialized in developing technical applications for the oil and engineering industries.
The capital barriers to software contracting were (and remain) very low, and it was
often said that all one needed was "a coding pad and a pencil." The most important
capability was the technical knowledge of the principals, usually acquired through
working with a computer user or manufacturer. Several dozen firms entered the
programming services industry in the second half of the 1950s. In a majority of cases,
the firms specialized in particular technical applications, or within a vertical market
such as financial services, retail, or manufacturing.

A very different type of entrant came into programming services in the mid-1950s,
specializing in the construction of very large programs that were beyond the technical
capability of even the largest and most sophisticated users. The first firm of this kind
was the Systems Development Corporation (SDC), a subsidiary of the RAND

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Corporation, Santa Monica. SDC was incorporated in 1956 to develop the programs
for the giant SAGE air-defense system. The programs SDC developed for SAGE were
unprecedented in size, consisting of more than a million computer instructions. SDC
employed several hundred programmers, estimated at the time to be perhaps halfof the
nation's programming manpower. SDC also trained hundreds of individuals to become
programmers. There was, however, a rapid turnover of staff, as experienced
programmers left for more remunerative employment in the private sector. At the time,
SDC was hailed as the "university for programmers" and it was said that in the 1960s,
SDC alumni were to be found in almost every major software firm in the country.

SAGE was a "real-time" system, in which the computer lay at the heart of an
information system that responded instantaneously to external events. As the U.S.
government deployed more and more real-time defense systems in the late 1950s and
1960s, systems integrators such as TRW, MITRE, General Electric, Westing house,
Hughes Dynamics, and Lockheed began to develop expertise in software construction.
Real-time technologies were hugely expensive to innovate but once established by the
military, they quickly diffused into the civilian sector in applications such as airline
reservations and on-line banking. When Europe and the rest of the world began to
catch up in the 1960s, American independent software firms and the programming
services operations of computer manufacturers had a strong first-mover advantage.

Software as service: .
In the really old days, software was sold in a box, which the buyer would take home
(or to his or her office) and install on a computer. More recently, software consumers
have been able to forgo the trip to the store and download the software they want
directly to their computer systems. Today, more and more, software is being sold as a
service; in other words, the software is hosted on the software company's server, and
accessed via the Internet by the user, who pays a periodic subscription fee for that
access. Software companies of all kinds are experimenting with this model; indeed,
these days this new model is even being used with such software as word processing
and spreadsheet programs. One of its advantages is that improvements can be made to
existing software programs on an ongoing basis; if there's a bug in the program, you
can fix it now-today-rather than having to wait until your next official release to give
users the benefit of the improvement.

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Gaming:
Video games now take in more of Americans' money than movies on the big screen,
which are themselves less products of photography and more shifting digital displays
rendered with extremely powerful animation software. Video game giant Electronic
Arts had revenue in excess of $3 billion in 2005, and lots of other players in this space
are making a pretty penny. Meanwhile, sales of professional animation software,
which can cost thousands of dollars, continue to climb. And the growth in demand for
gaming software for non-computer platforms (such as cell phones) is giving a further
boost to this sector. Creative types who want to apply their talents to make games can
find plenty of opportunities with companies making software meant to entertain.

The computer software market is most commonly segmented according to the type of
work a product does. A few of the major market segments are listed below, along with
the names of a few companies that are active in each.

Productivity:
Productivity includes word processing, spreadsheets, presentations, database
management, graphic design, and other applications that help people do their jobs.
Key players: Adobe (Photoshop, Illustrator, InDesign), Microsoft (Word, PowerPoint,
Excel), Autodesk (computer-aided design applications).

Enterprise:
The term denotes the large and expensive software packages sold by the likes of
Oracle, SAP, and IBM that enable companies to organize the complex flow of
materials, payments, and data necessary for the vast cast of global operations that keep
the modern corporation working, as well as less expensive niche software packages
sold by smaller, niche players in the enterprise software space.

Education:
Educational software helps your kids learn to read, teaches you geography or a foreign
language, stimulates logical thinking, and so on. This category also comprises
children's educational games, the so-far slow-to-catch-on electronic-book industry,
teaching resources, and music instruction. Key players: Disney, Microsoft, Scholastic.

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Gaming:
A highly competitive and extremely broad market segment, this includes role-playing
software, auto and flight simulation, sports, strategy games such as chess, and
children's games. Key players: Electronic Arts, Activision, Take-Two, THQ. Also, note
that there are many small, thriving studios that use the bigger players for distribution
and marketing, as well as big-name individual designers who will work for game
companies on a project-by-project basis.

Don't count on the high salaries that were typical of the industry in the late 1990s.
Now that software development can be outsourced to many politically stable, English-
proficient countries with advanced communications infrastructures, the expanded
supply of technically skilled (and low-cost) workers has blunted demand. Still, don't
underestimate the power of the local. It's hard to efficiently collaborate with workers
many thousands of miles away; many software projects-especially those with tight
deadlines, rapidly changing requirements, and applications specific to American
regulations and culture-will stay in this country. Take heart from the Bureau of Labor
Statistics, which predicts that occupations in the computer software industry will be
one of the fastest growing between 2004 and 2014.

Much of the activity in computer software is happening in Silicon Valley, but you also
might check out opportunities in other high-tech regions including Boston, Austin,
Minneapolis, New York City, Denver, Dallas, Atlanta, Boca Raton, and the Research
Triangle region of North Carolina.

Successful software businesses are of course built on more than technical talent. Sales,
marketing, and customer service provide many jobs for those who prefer thinking and
talking about software to actually writing it. On the technical side, high-level software
architecture skills are likely to become more valuable as the nuts and bolts of software
projects are outsourced overseas.

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 CHAPTER-III

PROFILE OF TATA ELXSI

Company history-TATA ELXSI:

Tata Elxsi Ltd the product design arm of the multi-billion Tata Group is a
company focused on delivering outsourced product design and R&D services and
solutions to customers worldwide. The company provides systems integration and
software development services in the information technology field. The company is
having their state-of-the-art design centers in Bangalore Mumbai Pune Hyderabad
Coimbatore Chennai and Thiruvanathapuram. They have only one subsidiary namely
Tata Elxsi (Singapore) Pte Ltd.The Company operates in two segments namely
Software Development and Services and Systems Integration and Support. The
businesses constituting Software Development and Services segment are embedded
product design services (design and development of hardware and software)
innovation design engineering (mechanical design with a focus on industrial design)
and visual computing labs division. Systems Integration and Support offers a range of
technical computing solutions spanning high-end computing platforms networking
mechanical design automation tools enterprise storage solutions digital media and life
sciences solutions through their tie-ups with global leaders in these respective areas.

Board Of Directors (as on 28th April, 2016)

Annexure
Chairman Mr. N Ganapathy Subramaniam
Independent Non-Executive Director Mr. P McGoldrick

Terms of Appointment
Independent Non-Executive Director Mrs. S Gopinath

Terms of Appointment
Independent Non-Executive Director Prof. M S Ananth

Terms of Appointment
Non-Executive and Non Independent Dr. Gopichand Katragadda
Additional Director/ Independent Mr. Sudhakar Rao
DirectorTerms of Appointment
Managing Director Mr. Madhukar Dev
Committees

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Audit Committee Mrs. S Gopinath( Chairperson)
Mr. P McGoldrick
Prof. M.S. Ananth
Stakeholders Relationship Mr. P G Mankad( Chairman)
Committee Dr. Gopichand Katragadda
Nomination & Remuneration Mrs. S Gopinath (Chairperson)
Committee Mr. N.G. Subramaniam
Mr. P McGoldrick
Corporate Social Responsibility Mrs. S Gopinath (Chairperson)
Committee Mr. P G Mankad
Mr. Madhukar Dev
Company Secretary Mr. G Vaidyanathan

Type Public company

Industry Automotive, Aerospace, Broadcast &
Consumer Electronics, Networking &
Telecom, Semiconductor, OEM,
Medical Devices, Test & Measurement
Founded Bangalore, Karnataka (March 1989)
Headquarters India
Area served Worldwide
Services Research & Strategy, Branding &
Graphics, Product Design, Packaging
Design, UI Design, Retail Design &
Signage, Transportation design, Design
Engineering, Prototype Development,
Number of employees 5000 (April 2016)
Divisions Embedded Product Design, Industrial
Design, System Integration and
Professional Services, Visual
Computing Labs
Website www.tataelxsi.com

Vision and mission:

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 We will become the preferred partner for our customers by creating world-class
products & differentiated solutions through innovation and leading edge technology.
We will be an employer of choice, engaging a highly motivated and empowered
workforce

Values

Values form the foundation of business management, providing justification of

behavior and influencing how we conduct our business. Values do not drive the
business; they drive the people within the business. The five values that constitute the
acronym BRISK, express our understanding of what we believe, how we aim to
behave, and what we aspire to be as an organization, in todays business environment.

B - Benchmark to become the best

R - Recognize contribution fairly and transparently

I - Improve collaboration across teams to scale together

S - Satisfy customer needs, both external and internal

K - Keep pace with changes in the environment

Philosophy:

The five values that constitute the acronym BRISK, express our understanding of what
we believe, how we aim to behave, and what we aspire to be as an organization, in
todays business environment.

Benchmark to become the best

Recognize contribution fairly and transparently
Improve collaboration across teams to scale together
Satisfy customer needs, both external and internal
Keep pace with changes in the environment

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Corporate Social Responsibility Policy
Objective: To improve the quality of life of the communities we serve through long
term stakeholder value creation.
Purpose of our CSR activities Our CSR activities will be designed to:

Serve societal, local and national goals in all the locations where we operate

Create a significant and sustained impact on communities affected by our businesses.

Provide opportunities for Tata employees to contribute to these efforts through

volunteering.

Funds: At the minimum, what is required by law (e.g. 2% of average net profits of the
past 3 years as per Indias Companies Act 2013 for companies operating in India

Geographies: The geographical focus of the companys CSR activities will be where
we have a significant presence. These are the states of Karnataka (Bangalore), Kerala
(Thiruvananthapuram), Tamilnadu (Chennai) and Maharashtra (Pune and Mumbai).

Implementation mechanism: We will implement our CSR activities in a number of

ways through our in-house teams, (own trusts/societies if they have been set up),
Tata Trusts and organizations set up to implement Tata Group Focus Initiatives.

Monitoring Mechanism: Each of our CSR projects and programs would have process
indicators and clearly defined outcome which will be reported at specified
frequencies.

All projects and programs will be monitored either by the Company CSR team, based
on these reports and regular field visits or by an external agency.

Projects implemented by Company CSR team will be monitored by the MD. The
monitoring process will cover both program and financial reviews.

All projects and programs will be subject to an annual financial audit either by
internal audit team or by a third-party auditor.

The CSR Committee at the Board will receive quarterly progress reports of all CSR
activities of the company.

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 Composition of our CSR Committee:

The members of our CSR Committee at the Board are as follows:

1. Mrs. Shyamala Gopinath, Chairperson (Independent Director)

2. Mr. Piyush Mankad, Member, (Independent Director)

3. Mr. Madhukar Dev, Member, (Managing Director)

Areas of focus: CSR committee of the Board will recommend to the Companys
Board periodically the focus area out of the areas as given in schedule VII of
Companies Act 2013.

Quality Management System

Tata Elxsi has a very mature quality management system in place for a long time. At a
corporate level, we are ISO 9001:2000 and ISO 27001 certified. For avionics business,
we have a comprehensive quality system which conforms to the requirements of the
standards mandated by FAA/EASA. Our avionics engineering team has experience in
using various standards as part of the several development projects. We have built our
own repository of checklists, guidelines and templates for compliance to standards
such as DO 178B, DO 254 etc. Since the requirements of avionics engineering are
unique, there is a dedicated quality team which oversees the avionics projects to
ensure compliance with various standards and helps projects succeed.

Corporate governance:

Tata Elxsi embodies the Tata groups philosophy of building strong sustainable
businesses that are firmly rooted in the community and demonstrate care for the
environment. We believe in conducting our affairs with the highest levels of integrity,
with proper authorizations, accountability, and transparency. The base for the strong
corporate sustainability at Tata Elxsi stems from the following elements:

A fair, transparent and value-driven corporate governance

A strong strategy for longer-term business growth
Best-in-class HR processes

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 Initiatives for community betterment
Our stewardship of the environment
Compliance Report On Corporate Governance 2014-15

Code of Conduct: The values and principles which have governed the
manner in which the Tata Group of companies and their employees have
conducted themselves were first formally articulated as the Tata Code of
Conduct in 1998.This Code was intended to serve as a guide to each
employee on the values, ethics and business principles expected of him or
her in personal and professional conduct. on which the Tata Groups
reputation and respectability have been built over the past 130 years. It
also is intended to serve as a guideline to each employee on the values,
ethics, and business principles expected of him or her in personal and
professional conduct.

Code of Conduct for all Tata Elxsi Employees

Code of Conduct for Non-Executive Directors

The Company subscribes to the Tata Code of Conduct and upholds its ethical values,
if you come across any violation thereof in connection with this or any other
transaction

MILE STONES OF TATA ELXSI:

Being agile to the changing market needs and equip itself to snap the newly emerging
opportunities have been the winning formula for any technology player. And for a
design software and system integration players like Tata Elxsi, it is rather like life
blood. The company, which made strides in an ever changing global designs market,
continued adding clients and bagging new contracts.

Tata Elxsi, the design company of Tata Group, is now looking at accelerating revenue
from its existing operations as well as outside to touch its Rs 3000 crore sales target in
the next two years. While the companys performance in the last three years proves its
guidance quite realistic, the CEO Madhukar Dev always tries to achieve more.

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We had targeted growing upwards of 20 per cent year on year (YoY) and got quite
close to it. However, if you were to add that over the next few years, you will find that
organically we cannot get to Rs 3,000 crore from where we are. Obviously, there will
have to be other events that will help us achieve the milestone, Dev said during an
earnings call recently.

Tata Elxsi, which caters to the communications, consumer products, defence,

healthcare, media and entertainment, semiconductor and transportation sectors
currently, had an impressive growth during the last three years.

While its key client, another Tata Group company Jaguar Land Rover (JLR), remains
its largest business contributor providing at least one fifth of its revenues even today,
the auto sector in general stands more promising for the company in future too.

Analysts predict that automobile sector itself provide immense growth potential for
companies like Tata Elxsi.

Global R&D spends by auto sector stand at $120 billion annually, of which the
outsourcing proportion is about 10 per cent and offshoring to India is around 0.4 per
cent, providing immense growth potential, says a recent analyst report by brokerage
Motilal Oswal Securities. According to this report, software, which comprised 2 per
cent of total value of a vehicle in 2000, now comprises 15 per cent of the total value
and is expected to reach 20 per cent by 2020. With 40-50 per cent cost savings and
just 0.4 per cent penetration, offshoring to India is a multi-year growth story.

We expect Tata Elxsi to post secular growth led by automotive, broadcast and
consumer electronics divisions which together contribute about 75 per cent to its
revenues, it wrote.

The company has restructured its loss-making VCL business and has evolved into a
high quality business focused on niche software services, with minimal capital needs.

During the year 2015-16, Tata Elxsi crossed the Rs 1000 crore mark in turnover for
the first time. This was possible due to the concerted effort in scaling up the embedded
product design and industrial design services business coupled with better utilisation
of available resources, states the company annual report for the year. The total income

22
during fiscal year 2016 increased by 27 per cent to Rs 1087.07 crore from Rs 853.54
crore a year ago. The operating profit and net profit too grew substantially at 52 per
cent, 50 per cent respectively over the previous year. No doubt, Madhukar Dev has
played a key strategic role in delivering these impressive numbers.

Year Description
1989 The company was incorporated on 30th March, as a Public
Limited Company and obtained the Certificate of
Commencement of Business on 5th May. The Company
was promoted as a joint venture between Tata Industries,
Ltd. (TIL) and Tata Elxsi (Plc.), Ltd. (TEPL), Singapore. The
Company manufacture multi-processor based computer
systems and components.
The company entered into a collaboration agreement with
TEPL. Under the agreement, the Company was granted
exclusive right and licence by TEPL to manufacture and
sell the system 6400 in India.
1991 310 No. of equity shares at par subscribed for by the
signatories to the Memorandum of Association. 95,50,000
No. of equity shares issued at par of which the following
were reserved for allotment on firm basis: (i) 32,10,180
shares to Tata Industries, Ltd. its associates, and (ii)
20,64,820 shares to the foreign collaborators Tata Elxsi
(Pte) Ltd., Singapore. Of the remaining 34,75,000 shares,
4,77,500 shares reserved for allotment on a preferential
basis to the employees and the balance 29,97,500 shares
offered for public subscription (all were taken up).
Additional 14,32,500 shares allotted to retain over-
subscription. 46,00,000 shares issued at par on part
conversion of convertible debentures as on 29.1.1992.
1993 The Company sold and installed 32 systems and 24
systems by Silicon Graphics Pte Ltd. The Company
established a Software Technology Park at its premises
near white field, Bangalore.
A 64 KBPs Communication link has been set up connecting
the Company's facility with the Internet in USA. A separate

23
 group for marketing of complementary third party
hardware and software products was established.
1995 155,82,810 Right Equity shares issued at par in propn. 1:1.
1996 The Company's operations were visualised from two lines
of business viz. distribution, valve-added reselling and
provision of solution built around products from Silicon
graphics USA for domestic customers and Hardware and
Software design and development services both for
domestic and overseas customers.
The Company sold and installed 280 systems on Rupee
payment terms and 282 systems to customers who were
directly billed by Silicon Graphics Inc.
The Design and development group executed projects
both in India and abroad. The Company set up a dedicated
software development centre for Hitachi Ltd., Japan at
Bangalore.
The Company issued 20,00,000 - 12.5% partly convertible
debentures of Rs 50 each of which 1,00,000 debentures
were reserved for preferential allotment to the employees
on an equitable basis and the balance 19,00,000
debentures were offered for public subscription. All the
debentures offered to public were taken up but only
36,300 debentures were taken up out of the employees
quota. The unsubscribed 63,700 debentures of the
employee's quota were issued to public. Additional
2,00,000 debentures were allotted to public to retain
oversubscription.
Part A-convertible portion of Rs 20 each to be converted
into 2 equity shares of Rs 10 each on the date of the
allotment and Part B non-convertible portion of Rs 30 each
bearing an interest rate of 12.5% per annum to be
redeemed at par after seven years from the date of
allotment.
2,600 Right shares kept in abeyance were issued.
2000 ICRA has upgraded credit rating of the Rs 5-crore
commercial paper programme of the Company from A1 to
A1+.
Tata Elxsi Ltd. will launch Maya 3, the advanced version of

24
 Maya software of Alias Wavefront, in India. - Tata Sons Ltd.
an existing shareholder, acquired 14,00,000 No. of equity
shares of the company from Tata Engineering &
Locomotive Company Ltd. on September 29.
2001 Tata Elxsi has tied up with IBM as an e-biz solution partner.
Tata Elxsi has approved the resignation of S Devarajan as
managing director of the company with effective from 31st
March.
Tata Elxsi, the Bangalore-based systems integration,
design and development company has launched a four
semester MS degree in software engineering course, in
association with BITS-Pilani.
Tata Elxsi Ltd has informed the BSE that Mr D S Pendse
has resigned from its board of directors with effect from
June 1.
2002 Appoints Madhukar Dev as the CEO of the company.
-Company is appointed as the systems Integrator of Apple
for the film, video and broadcast market for apple .
Ties up with Enterasys to provide network design and
implementation services to the enterprise customer of
Enterasys.
Signs partnership agreement with Automotive Multimedia
Interface Collaboration (AMI-C) to give technology
expertise for proof of concept vehicles.
Prof. A Sadagopan, appointed as the additional director on
the board of the company.

2003
TCS joint venture with HDFC, makes TCS major in shareholder in
the equity.

Mr K M Chinnappa, resigns from the Directorship of the company.

Visual Computing Lab, subsidiary of TEL informs the execution of

visual effect for the bollywood multi starrer "Boom".

VCL creates a computer generated girl for a song sequence

including live characters to a film calle 'Boys'.

25
 Sasken Communication Technologies, S2 Engineering Design
Solution along with Tata Elxsi opens Sales and development
centres at Frankfurt.
2005
-Tata Elxsi unveils Chennai centre
2006
Tata Elxsi is at Booth C9849 showcasing three of the latest
Multimedia, IPTV and DTV technology products.

DMS Expo is the largest trade show and conference of Japan

focusing on the IT solutions for the manufacturing Industry.

Tata Elxsi is showcasing its semiconductor and embedded product

design services at Booth no. 3017.
2007
Mobile TV on PDA - Showcasing Tata Elxsis DVB-H stack &
application running on HP iPAQ PDA on Windows Mobile- 5.0.
This uses Dibcom's DVB-H USB-dongle for the TV reception.
2008
Tata Elxsi presents its line of game services and offerings at Booth
#6-C8 at Tokyo Game Show 2008, Makuhari Messe, 9th to 12th
October, 2008.

Tata Elxsi represented by its Industrial design division, IDE will

exhibit some of its innovative products designed for global clients ,
coupled by its unique offerings that provide solutions to the
challenges faced by global companies today in the area of
packaging.
2009
Tata Elxsi demonstrated technical competencies in Broadcast,
Wireless, Automotive, Consumer Electronics and Semiconductors.

Tata Elxsi demonstrated live Video streaming over WiMAX and

LTE eNodeB reference design

Tata Elxsi displayed the latest technology solutions in DTV, IP Set-

top boxes, Mobile TV, ATE (Automated Test Environment), H.264

26
 HP Endcoder and MHEG-5 & DVB-CI/CI+ solution.

Tata Elxsi showcased its range of Wireless competencies in

wireless infrastructure and mobile terminal solutions both for
commercial and non-commercial markets
2010
TATA ELXSI is a leading third party software provider and systems
integrator in the wireless infrastructure market

Tata Elxsi is the embedded Product design arm of the $70 billion
TATA Group.
2011
Tata Elxsi will be demonstrated its design and engineering
capabilities exclusively for the Metro rail industry

Tata Elxsi had attend the International Railway equipment

exhibition (IREE) organised by the Confederation of Indian
Industry (CII) in association with the Ministry of Railways

Tata Elxsi organised connect D - an annual event that endeavours to

create a platform to engage with future designers on the occasion of
'World Industrial Design Day' (WIDD).

Tata Elxsis product engineering expertise spans carrier-grade base

stations for Telecom operators and custom wireless solutions for ad
hoc networks and cognitive radio.

TATA ELXSI offers its best-of-breed engineering services and

proven protocol software on leading semiconductor platforms, and
to accelerate new product delivery for OEMs
2012
Tata Elxsi exclusively provides Design and Engineering Services to
all the major verticals of Transportation segment, namely-
Automotive, Aerospace, Marine and Rail by offering customized,
full lifecycle embedded system design services & solutions.

27
 Tata Elxsi is a leading provider of protocol stacks for LTE and
Mobile WiMAX.

Explore how Tata Elxsi is helping leading product companies and

service providers deliver innovative solutions, accelerating time to
market and competitive advantage
2013
Tata Elxsi, a Bangalore-based Rs 622-crore design services firm,
has taken a different route by setting up a business incubator.

Filmfare Best VFX has been awarded to Tata Elxsi for Dhoom 3.

The Company has recommended a dividend of 50% (Rs. 5 per

share of Rs. 10/-
2014
Tata Elxsi has been working on Telecom & Networking, delivering
innovative products and solutions.

Tata Elxsi is leveraging its digital signal processing to build a

presence in advanced driver assistance systems (ADASs)
development.

Bangalore-based Tata Elxsi, a part of the Tata Group. Through its

four divisions Embedded Product Design, Industrial Design,
Visual Computing Labs and System Integration it has designed
products for the automotive, consumer products, energy, wireless
communication, health care and defence sectors.

Tata Elxsi appoints Dr. Gopichand Katragadda as an Additional

Director (Non Executive and Non Independent) of the Board.

The Company has recommended a dividend of 90% (Rs. 9 per

share of Rs. 10/- each).

The Board as approved the appointment of Mr. N. G. Subramaniam

as an Additional director and the Chairman of the Company.

28
2015
Tata Elxsi Redefines Design this World Industrial Design Day -Tata
Elxsi Showcases Futuristic Automotive Solutions at Vdi-Eliv
(Electronics In Vehicles)

Tata Elxsi to showcase latest innovations in Broadcast, IoT and Big

Data Analytics

Tata Elxsi launches ACTIV@TE at SCT College -Tata Elxsi

announces the Winner of the 3rd Edition of IGNITE Design
Contest - Wearable Technology: Envisioning the future

Tata Elxsi joins the Frog by Wyplay community

Tata Elxsi Showcases Advanced Automotive Solutions at CES

Portfolio of Tata Elxsi:

MtreComm Technologies

Niramai Health Analytix

iSenses Inc

Sismatik Solutions Pvt Ltd

Street Smart

29
MtreComm Technologies:

MatreComm Technologies, is a startup focused on WiFi and IoT Platform

products and solutions, wherein the key focus is on an end-to-end multi-vendor WiFi
management platform comprising of Controller-NMS-OSS and BSS. The IoT Service
Delivery Platform comprises of an IoT Application Creator Studio. MatreComm
customers comprise of world's leading Internet Service Providers and Enterprises.

Niramai Health Analytix

Niramai Health Analytix is a Bangalore based startup founded by Ms. Geetha

Manjunath and Ms. Nidhi Mathur. It offers artificial intelligence led diagnostic
platform that helps detect early stage breast cancer. Niramai solution uses a regular
high resolution thermal camera as a device and cloud hosted analytics solution for
analysing the thermal images. Their SaaS solution uses big data analytics, artificial
intelligence and machine learning for reliable, early and accurate breast cancer
screening. Niramai analytics software uses patented machine learning algorithms,
requiring minimal human supervision. This disruptive solution is poised to address a
major gap in in todays cancer diagnosis.

iSenses Inc

iSenses Inc is a US & Bangalore based machine intelligence startup, founded

by Mr. Karan Behar and Mr. James Graham. iSenses provides real time Machine
Vision (MV) and Automatic System Recognition (ASR) and Speech Recognition
products to its customers. iSenses product Drishti incorporates features such as
detection, tracking, learning, classification, characterization, and recognition of
multiple obstructions in the path of a vehicle; during night time per se .

Sismatik Solutions Pvt Ltd

Sismatik solutions is a Bangalore based startup, founded by Mr. Vinay

Katwe(CEO) and Mr Ranjith Rao. Its developing an end to end solution for Smart
TVs including a cloud hosted service delivery platform called Nebula and CPE called
WizBox. WizBox add smartTV functionality to LCD/LED TVs that allows users to

30
play and view most videos, music, podcasts, games and other digital media files from
local, network storage media and the internet. Sismatiks product and solutions
roadmap includes aggregation of content from various online shared videos and
content providers along with interactive music, interactive games, Video Calling and
other Android based value-added applications.

Street Smart

Street Smart is a Chennai based Mobile Technology start-up , founded by

Mr.Prabhu SNM (CEO).Street Smart is a Personalized Shopping Companion Mobile
App for shopaholics who benefit from personalized micro & Geo location based push
notifications and actions when they walk on Streets, Areas, Malls Retail Stores using
Beacons Technology & discover deals for Ecommerce Shopping Websites on the Go.
Customized offers / Loyalty Credits / Exclusive Privileges for the shoppers can be
tailored by Retailers based on Shopping preferences , Liking , Geo fences, in-store
analytic, indoor navigation , leading to Instant Advertising for Increasing sales and
customer foot prints to the Retail Outlets.

Services in TATA ELXSI:

Automotive electronics:
We provide product development and engineering services for automotive
companies and equip clients with turn-key automotive electronics design solutions
needed to succeed. Our focus areas include embedded electronic controls, modeling
and simulation and telematics.
Styling and design:
Our ability to provide complete product development support to OEMs and
Tier 1 suppliers enables us to offer exclusive design and engineering services for the
automotive sector. We run Centers of Excellence (COE) in the areas of styling/
aesthetic design, Class A surfacing & Engineering.
Visualization
3D animation and photo-real CGI content for design reviews, product
launches, consumer studies and advertising
HMI design:

31
 Tata Elxsi brings together cross-technology expertise in multimedia, graphics,
and connectivity, a world-class User Experience design team, and system development
capability for HMI design
Advanced driver assistance:
Tata Elxsi brings together imaging, video, and signal processing technologies
with sensor integration and HMI expertise, to support Advanced Driver Assistance
features

AUTOSAR service and tools:

As a Premium Member of the AUTOSAR Consortium, enable our customers
in developing AUTOSAR compliant solutions for their next-generation automotive
electronic systems.
ISO26262-functional safety practice:
Tata Elxsi implements ISO 26262:2011 standard for the development of safety
critical systems across the automotive development lifecycle. We provide ISO 26262
compliant consultancy services including process definition and deployment

SWOT analysis and competitors of the company Tata Elxsi:

SWOT analysis
Strengths Experience
Micro environment
Business model
Resource and capabilities
Culture
Weakness value chain
distribution
macro environment
Opportunities Exports
New products
New markets
Acquisition & mergers
Threats Free market
Low barriers
Globalization and economy
Competitors
Competitors of tata Elxsi Bosch Ltd.

32
Oracle Financial Services Software
Ltd.
Tata Consultancy Services Ltd
Kale Consultants Ltd
Infosys Ltd.
Zensar Technologies Ltd.
HCL Technologies Ltd.
Mphasis BFL Ltd.
HTMT Global Solutions Ltd.
Hinduja Ventures Ltd.

33
 CHAPTER-IV

FUNCTIONAL AREAS OF TATA ELXSI

Accounting policies:.

1. Board of Directors

The Board comprises members having varied skills, experience and knowledge. The
Board has a mix of both Independent and Non-independent directors where
Independent directors constitute more than half the strength of the Board, which is in
conformity with Regulation 17 of the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015 (Listing Regulations) 2015, read with Section 149
of the Companies Act, 2013. The Chairman of the Company is Non-Executive, Non-
Independent. None of the Directors on the Board is a Member on more than 10
Committees and Chairman of more than 5 Committees as specified under Regulation
26 (1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
across all the companies in which they are Directors. Necessary disclosures regarding
Committee positions have been made by the Directors.

2. Audit Committee

The Audit Committee of the company constituted, is in line with the provisions of
Regulation 18 of SEBI (Listing Regulations) 2015, read with Section 177 of the
Companies Act, 2013.

1. Oversight of the company's financial reporting process and the disclosure of its
financial information to ensure that the financial statement is correct, sufficient and
credible;

2. Recommendation for appointment, remuneration and terms of appointment of

auditors of the company;

34
3. Approval of payment to statutory auditors for any other services rendered by the
statutory auditors;

4. Reviewing, with the management, the quarterly financial statements before

submission to the board for approval;

3. Nomination and Remuneration Committee

The Nomination and Remuneration Committee constituted is in line with the

provisions of Regulation 19 of SEBI (Listing Regulations) 2015, read with Section
178 of the Company's Act, 2013. The terms of reference of the Committee are as
under:

1. Formulation of the criteria for determining qualifications, positive attributes and

independence of a director. Recommend to the Board a policy, relating to the
remuneration of the directors, key managerial personnel and other employees;

2. Formulation of criteria for evaluation of Independent Directors and the Board;

3. Devising a policy on Board diversity;

The Board has also adopted a charter for the Nomination and Remuneration
Committee covering its rights, roles and responsibilities.

All Non-Executive Directors of your Company receive sitting fees for each meeting of
the Board or Committee thereof attended by them. The net profits of the Company, not
exceeding 1%, are distributable, as commission, amongst the Non-Executive Directors
considering the special services and efforts rendered.

4. Stakeholders' Relationship Committee

The Stakeholders' Relationship Committee constituted is in line with the provisions of

Regulation 20 of SEBI (Listing Regulation) 2015, read with Section 178 of the
Company's Act, 2013. The terms of reference of the Stakeholders' Relationship
Committee are as under:

35
 To look into the Redressal of grievances of shareholders, debenture holders and other
security holders; To expedite the process of share transfers;

To look into the complaints related to transfer of shares, non receipt of balance sheet,
non receipt of declared dividends.

5. Risk Management Committee

The Board has constituted a Risk Management Committee (RMC) in line with the
Provisions of Regulation 21 of SEBI (Listing Obligations) 2015, which is responsible
to provide oversight in achieving the Company's Enterprise Risk Management (ERM)
objectives. The ERM helps these objectives by creating a comprehensive approach to
anticipate, identify, prioritize and manage material risks attached to the Company's
operations.

The primary responsibility of the Committee is to ensure that sound policies,

procedures and practices are in place for the enterprise-wide management of the
Company's material risks and to report the results of the Committee's activities to the
Company's Audit Committee. The terms of reference of the Committee are as under:

1. Provide ongoing guidance and support for the refinement of the overall risk
management

2. Ensure that management understands and accepts its responsibility for identifying,
assessing and managing risk.

3. Determine which enterprise risks are most significant.

4. Assign risk owners and approve action plans.

5. Approve company-wide Risk Assessment & Risk Profile.

6. Update the leadership team from time to time on the on-going ERM
progress/changes.

HR strategies:

36
Performance Appraisal / Evaluation Process:

As a member of the Board, your performance as well as the performance of the entire
Board and its Committees shall be evaluated annually. Evaluation of each director
shall be done by all the other directors The criteria for evaluation shall be determined
by the Nomination and Remuneration Committee and disclosed in the Company's
Annual Report. However, the actual evaluation process shall remain confidential and
shall be a constructive mechanism to improve the effectiveness of the Board /
Committee. An indicative list of factors that may be evaluated as part of this exercise
is:

Participation and contribution by a director,

Commitment (including guidance provided to senior management outside of

Board Committee meetings),

Effective deployment of knowledge and expertise,

Effective management of relationship with stakeholders,

lntegrity and maintenance of confidentiality,

lndependence of behavior and judgment, and

lmpact and influence

Marketing stratagies:

As markets in industrialized economies have saturated, companies across the

domain are exploring emerging markets such as India and China, to market their
products and services. Our research and insights team equipped with strong
knowledge and experience constantly help these companies make sense of the local
users' lifestyles, their cultural and socio-economic issues, as well as their needs and

37
preferences. The activities include identification of opportunities for innovation and
design for local markets, decoding local environments and scenarios, proposing
product, service strategies and road maps for these markets, providing customization
and optimization of products based on local constraints and criteria among others.

Our work includes:

Our engagement with FritoLay a business unit within PepsiCo, to develop a

completely new range of crackers. The product aimed at addressing the local taste
palette of the Indian consumer and at the same time being healthy & fun to eat. We did
an extensive pan-India research, to understand consumers perception and preferences
for shapes, appearance, size, texture, look and feel of snacks for the given emotional
states. Packaging preferences, themes for snack design and finally the packaging
design was implemented.

We engaged with a leading Japanese company who wanted to launch innovative

medical products to help them understand the Indian market, what products are
required and can be innovated for the Indian market.

A Global leader in petrol pump/dispensing manufacturing company wanted to develop

products for emerging markets like India and China. We provided research data on the
dispensing operations, consumer insights, the different scenarios for Tier 1 vis--vis
rural areas etc.

Financial Reporting and Records

A Tata company shall prepare and maintain its accounts fairly and accurately in
accordance with the accounting and financial reporting standards that represent the
generally accepted guidelines, principles, standards, laws and regulations of the
country in which the company conducts its business affairs.

Internal accounting and audit procedures shall fairly and accurately reflect all of the
companys business transactions and disposition of assets. All required information
shall be accessible to company auditors and other authorized parties and government
agencies. There shall be no willful omissions of any company transactions from the

38
books and records, no advance income recognition and no hidden bank account and
funds.

Any willful material misrepresentation of and/or misinformation on the financial

accounts and reports shall be regarded as a violation of the code, apart from inviting
appropriate civil or criminal action under the relevant laws.

Financial Analysis:

2015-16 2014-15 Change Percentage of

over income
previous 2015-16 2014-15
year
Crores(Rs) % % %
Crores(Rs)
Sales and services 1075.21 849.40 26.58 98.91 99.51
Other income 11.86 4.14 186.47 1.09 0.49
Total revenue 1087.07 853.54 27.36 100.00 100.00
Cost of sales 69.98 75.21 -6.95 6.44 8.81
Personnel expenses 576.49 460.61 25.16 53.03 53.96
Financial expenses - - - - -
Depreciation/amortizatio 22.61 24.73 -8.57 2.08 2.90
n
Other expenses 181.65 137.01 32.58 16.71 16.05
Total expenditure 850.73 697.56 21.96 78.26 81.73
Profit before tax and 236.34 155.98 51.52 21.74 18.27
exceptional items
Tax 81.53 53.08 53.60 7.50 6.22
Profit after tax for the 154.81 102.90 50.45 14.24 12.06
year

Interpretation:

The above table is the comparison of the last two years 2014-2015 and 2015-2016.

In the year 2015-2016 the sales and services are increased and percentage of the
income will be decreased. And total revenue and tax(profit before tax and after tax)
are increased and the percentage of income also increased comparing to the previous
year 2014-2015.

At the same time the expenses(personal expenses),depreciation and cost of sales wil
be decreased and the percentage of income is also decreased. And the other expenses
are increased compared to the previous year.

39
Analysis of overheads:

Items 2015-16 2014-15 Variances

Crores(Rs) Crores(Rs) %
Operating lease rent 15.73 14.01 12.28
Communication expenses 9.70 9.07 6.95
Inland travel and conveyance 8.03 6.53 22.98
Overseas travel 50.23 41.29 21.65
Consultant fees for software 45.12 25.53 76.73
development
Provision for doubtful 0.82 0.49 67.35
debts/advances

Interpretation:

This table is also comparing the two previous years

in the year 2015-2016 the operating lease rent is increased and the % of
varience is 12.28.
communication expenses are increased comparing the previous year.
Inland traveland conveyance, overseas travel and provision for doubtful debts
asre also increased.
Consult fees for soft ware development is increased with the variance 76.73.

Significant ratio analysis:

Sl.n Particulars unit 31.03.16 31.03.15

o
1 Earnings before interest, % 24.08 21.27
depreciation and taxes/sales
2 Profit before taxes/sales % 21.98 18.36
3 Profit after taxes/sales % 14.39 12.11
4 Current ratio No. of 2.32 1.92
items
5 Debt equity ratio ratio - -
6 Earnings per share Rs 49.72 33.05

Interpretation:

This table shows the significant ratio analysis of the company tata elxsi

40
 This table clearly shows the sales, taxes, equity ratios and earning per share of
the company.
According to this table the sales and taxes of the compny is increased.
At that time the equity ratios are also increased comparing to the previous
years.

Product Engineering and R&D Services

Tata Elxsi has a proven experience in pioneering system developments for the defence
and homeland security verticals. We leverage our long standing ties with OEMs and
Tier 1 & 2 suppliers to provide innovative design & engineering solutions throughout
the product life cycle. We have been able to enhance our competencies with our global
customers, owing to our close relationships with defence bodies and agencies.

Our engineering services aim at the defence and homeland security market by catering
to avionics, networking, security & surveillance, battlefield management, and
hardware & mechanical design. Be it turnkey projects or mechanical engineering
solutions of existing products across platforms, or even enhanced communications
device solutions; we are equipped to provide mission-critical reliable innovations that
are not just industry compliant, but will also enhance your product offering.
We cater to the following segments:
Public Safety
Aerospace communications & navigation
Network management & security
Security & surveillance
Battlefield management
Hardware & Mechanical design

Balance sheet of Tata Elxsi:

Parameter MAR'16 MAR'15

( Cr.) ( Cr.)

EQUITY AND LIABILITIES

Share Capital 31.14 31.14

41
 Share Warrants & Outstandings
354.55 252.21
Total Reserves
Shareholder's Funds 385.69 283.35

Long-Term Borrowings 0.00 0.00

Secured Loans 0.00 0.00

Unsecured Loans 0.00 0.00

Deferred Tax Assets / Liabilities -1.27 -0.44

Other Long Term Liabilities 0.00 0.00

Long Term Trade Payables 0.00 0.00

Long Term Provisions 148.06 95.50

Total Non-Current Liabilities 146.80 95.06

Current Liabilities
Trade Payables 76.53 66.11

Other Current Liabilities 48.52 47.78

Short Term Borrowings 0.00 0.00

Short Term Provisions 140.51 97.36

Total Current Liabilities 265.56 211.26

Total Liabilities 798.05 589.67

ASSETS

Non-Current Assets 0.00 0.00

Gross Block 260.35 229.27

42
Less: Accumulated Depreciation 153.38 130.78

Less: Impairment of Assets 0.00 0.00

Net Block 106.97 98.49

Lease Adjustment A/c 0.00 0.00

Capital Work in Progress 1.88 2.59

Intangible assets under development 0.00 0.00

Pre-operative Expenses pending 0.00 0.00

Assets in transit 0.00 0.00

Non Current Investments 0.00 0.29

Long Term Loans & Advances 165.02 120.18

Other Non Current Assets 0.59 0.32

Total Non-Current Assets 274.45 221.86

Current Assets Loans & Advances

Currents Investments 0.00 0.00

Inventories 0.00 0.29

Sundry Debtors 215.21 154.08

Cash and Bank 182.45 132.80

Other Current Assets 43.26 34.98

Short Term Loans and Advances 82.68 45.66

Total Current Assets 523.60 367.81

Net Current Assets (Including Current
258.05 156.56
Investments)
Total Current Assets Excluding Current
523.60 367.81
Investments

43
Miscellaneous Expenses not written off 0.00 0.00

Total Assets 798.05 589.67

Contingent Liabilities 24.54 14.86

Total Debt 0.00 0.00

Book Value (in ) 123.86 91.00

Adjusted Book Value (in ) 123.86 91.00

CHAPTER-V

FINDINGS/SUGGESTIONS

Findings of the Tata Elxsi:

Tata Elxsi India, that made its beginnings with a small pharmacy..
I n this regard over the last few years, the Company has maintained a sharp focus on
upgrading technology and improving.
Low quality compared to the other products.
The tata elxsi company was invested low amount in the R&D area.

44
 Tata Elxsi worked as the 7 sectors.
Tata Elxsi covers the most of the countries in the world.
The Tata Elxsi success is strong brand equity, ability to understand customer
needs, wants and launch products accordingly.
The tata Elxsi company market stratagies objective is to achieve favorable
positioning while allocating financial,human and production resources to markets,
customers, and products as effectively and efficiently as possible.
Strong brand image and product development strength of Tata Elxsi

Suggestions:
So many of the people doesnt know the Tata Elxsi company. So the company
gives the advertisement, and implement image of the company in people minds.
These company supplier relations are week. so they can maintain a proper
relationship about suppliers.
Tata Elxsi company success only depends on the customer needs and willingness
not gives a preference to the customer satisfaction.
In present all people know the Tata Company, but major people dont know the
Tata Elxsi. For that the company mainly focuses and concentrates on the peoples.
I advice to the Tata Elxsi company, they have to increases advertisements and
promotions in the market then the customer got the awareness about the company
products.
Here the Tata Elxsi has to concentrate on promotional strategies.

45
Bibliography:
www.tata elxsi limited .com

www.money control .com

www.profit ndtv.com

www.tata elxsi.com

www.bseindia.com

46