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CHAPTER - IV

TECHNOPARK

Introduction

Object~ves and Basic Ph~losophy of the Society

Manayemenr of the Society

Construction Work in the Campus

Grant-in-Aid

Status of Companies

International Affiliation and Collaborative Programmes

I S 0 Certification

Current Perfbmance

Incentives

Freezone Benefits

Financial Benefits

High Tech Business

Institutions that nurture excellence

Compreher~srve Business Facilities

Llfe Style Amenities

Water Supply System

Telephone and Data Com Facilities

Campus Services

Quality Policy

Promotional i Developmental and Marketing Activities

Companies I'unctioning at the Park.

The IT Policy 2001-2005.

Performance Evaluation

Level of Satisfaction of Entrepreneurs - TECHNOPARK

Level of Satisfaction of Park Authorities

Problems o:f TECHNOPARK

Projection c ~ f Activities of TECHNOPARK

Problems of Entrepreneurs - TECHNOPARK

Projection of Activities of Entrepreneurs

Conclus~on

CHAPTER-IV

TECHNOPARK

4.0 INTRODUCTION

A detailed analysis of the performance of TECHNOPARK is made in this chapter.

The study covers the operational, managerial and financial performance of TECHNOPARK,

the operational, managerial and financial level satisfaction of the entrepreneurs, the

problems of TECHNOPARK and of the entrepreneurs who have started enterprises in the

TECHNOPARK campus and their projection of activities.

Electronics Tec:hnology Parks - Kerala (ETPK) also known as Technopark is an

autonomous Society registered on 281h July 1990 under the Travancore - Cochin Literary,

Scientific and Charitable Societies Registration Act, 1955. It is India's first and one of the

most advanced Electronics Technology Parks. Technopark is an ambitious project of the

Government of Kerala to create business opportunities in these thrust sectors and to benefit

from its strengths in the global software and electronic markets.

The registered office of the Society is situated at Kariavattom, Thiruvananthapuram.

The specitic objectives and basic philosophy of the Society are given below:

4.1 Objectives and Basic Philosophy of the Society

1 . l o undertake in a time bound and a mission oriented basis the planning,

establishment and management of Electronics Technology Parks in Kerala so as to create

the infrastructure and environment required for setting up high technology Electronics

manufacturing unit and Research, Design, Development and training establishments.

2. To encourage local entrepreneurship and attract Non-Resident Indians and

Companies to set up Electronics manufacturing unit and research, design, development

and training establishments in Kerala.

3. To undertake a major initiative to assist in setting up of software development

units in Kerala.

4. To accelerate the upgradation of research and development facilities in Universities

and other lnst~tutions in Kerala to make them capable of canying out leading edge research

in Electronics. Telecommunications and Computer Science.

5 . 'To encourage and support production units to canyout continuous research for

develop~ng new products and senrlces.

With a vlew to attaining the above objectives, the Society may:

I . Directly plan, establish and manage Electronics Technology Parks in Kerala with

all necessary infrastructure and support facilities setting up of high technology electronic

units.

2. Set up R&D incubator and pilot production facilities to be utilised by entrepreneurs.

3. Support software developers by installing high performance computers and

advanced data communication facilities.

4. Set up information bureau, library, documentation centre and communication

facilities for use by entrepreneurs.

5 . Support entrepreneurs by setting up centralised Seminars, Conferences and

recreation facilities.

6. Contract project feasib~l~ty and product identification studies for electronic

products

7 Prov~de all necessary ass~stance for entrepreneurs to obta~n Government and

financ~al clearances

8. Ser up 1 assist joint ventures with Indian and Foreign Companies for the sening up

of high technology electronic units in Kerala.

9 . Conduct local, national, and international seminars, conferences, workshops,

training programmes, atudy tours and marketing campaigns in India and abroad.

10. Form marketing team to promote park facilities and attract entrepreneurs from

India and abroad

I 1 . Undertake publications in the form of papers, books, audio1 video cassettes and

journals.

12. Encourage and support continuous interaction between the Universities, Research

Organizations and Intiustry for product/se~ices oriented applied research.

13. Encourage sabbatical programmes between the universities and industry in Kerala

and those abroad.

4.2 Management of the Society

The Society shall be managed with an institutional framework with independent

and autonomous authonty, responsibility and flexibility for dynamic operation to achieve

the following:

1 . Competent people from within the country as well as expatriate Indians and others

are encouraged and attracted to participate in the activities of the Society.

2. Mobility of staff from other organisations including the various Govemment

Departments State I Central Public Sector Undertakings and Autonomous Organizations

and Societieh to the Society and back is made possible to ensure rapid build-up of trained

and skilled manpower to achieve the objectives of the Society.

3. Specla1 procedures are established to facilitate and enable smooth functioning of

the Society and various activities including matters relating to personnel, finance,

administration, purchase, travel, etc.

The management of the Society is vested with the Goveming Council constituted by

the Govemment tion1 tlme to time. The Minister for Industries and IT is the chairman of

the G o v e r n ~ ~ ~ g Counc~l. The COUIICII is the supreme policy making authority for the Society

and meets once in a year. At present there are 16 members in the Goveming Council

inclusive of the Chief Executive Officer of TECHNOPARK.

The Project Implernentation Board, which is responsible for the implementation,

assists the Governing Cuuncil, review and monitoring on a more frequent basis and has

Secretary (Industries) as Chairman. The Board meets once in every quarter. At present

there are I I members in the Project Implementation Board.

The day to day act~vities of the Society is regulated by the Chief Executive Officer,

who is ass~sted by a team of officers responsible for different functional areas. The

organisation has the following broad functional areas:

1. Administrative and Personnel

2 . Finance and Accounts

3. Buslness Promot~on and Project Support

4. Infrastl-ui:ture Development.

Ad~nin~stration and Personnel activities include general administration, personnel,

front office management, legal, human resources management, security, transport,

maintenance. hospitality, advertising, public relations, publications, estate management,

vigilance etc

F~nance and Accounts functions Include budgeting, financial planning and control,

pay roll and salary administration, payments, book-keeping, accounting, etc.

Business Promotion and Project Support are two closely related activities as project

developnient is responsible for promoting the Park, extending necessary supports to the

units, interact~ng witl-L Central and State Government Departments i Agencies to facilitate

fast start up of business units and providing access to the park facilities for the units.

Infrastructure Development comprises the following areas:

I . Civil lnirast~cture

2 Technical Infrastructure

3. Library and Information Bureau

4. Docurnentation Centre.

A local area net work (LAN) with distributed computers forms the life-blood of

informat~on flow in the organization. The network enhances the productive efficiency of

members and enables them to handle multiple responsibilities. A conscious effort is also

taken to reduce paperwork and multiplicat~on of paper in communication.

In line with the philosophy of a slim organisation, contract services are used wherever

possible. These include security, house- keeping, gardening, vehicle hire, etc. For direct

employment also. people are taken either on deputation or on contract to avoid a long-

term conimltment.

Conceived in 1990 Technopark started construction in 1992 and the first company

moved into the campus in 1994. In November 18,1995, the then Prime Minister Sri. P. V.

Narasimha Rao dedicated it for the Nation. Technopark has completed 10 years on 2Ph

July 2000. Currently there are 55 companies employing about 4800 people directly and

3000 people indirectly and this number is steadily increasing. Moreover, nearly 2000

software experts are engaged in training programmes at TCS (Tata Consultancy Services).

Investments have come to Technopark from all over the world. Technopark is India's

first successful experiment in the Science Park Movement, as a powerful tool for regional

economic development. bringing together industry, institute and Government.

In 1990. when ITechnopark was conceived, the closest model available in the country

was the Science and Technology Entrepreneur Park (STEP) programme of the UGC. The

STEP programme failed to take off in a significant way, primarily due to its dependence

on the University. Technopark deviated from this model in the sense that it was promoted

by the reg~onal (State) Government, creating at the same time, linkages with the Institute

and the industry.

Funded by the Government of Kerala, Technopark is India's first and one of the

most advanced technology parks. Technopark offers state-of-the-art rnfrastructure for

Information Technology Companies. Infrastructure includes built-up space in modules /

multiples of 2000 sq.ft., developed plots reliable power, water, telecom, convention

facilities, restaurant, guest house, club, bank, library, shopping centre, etc. in a self

contained campus. Bus~ness incubators are also available to facilitate a quick start-up.

The dedicated suppofl team at Technopark coordinates all Government level clearances.

The portfoho o-F physical facilities, promotional avenues and operational support

offered by Technopark creates significant synergy facilitating quick setting up and fast

growth ofcompanies. Technopark also shares excellent rapport with various professional

and trade bodies, opening up avenues for co-operation and networking by the companies.

Within a short span oftime, Technopark has developed into a highly functional facilitator,

nodal agency and forum for the State IT industry. Technopark also represents the single

largest collection of IT companies in Kerala State and personifies the IT industry in the

State.

For effective and reliable power distribution, Technopark has been made a licensee

during the year 199'1-2000. The ~ncoming 110 K.V. substation was inaugurated on 2"d

June 1'199. Technopark is meeting 50%of the cost of the Sub-station, hence Rs. 477.85

lakh has given as an advance to KSEB. One 12.5 MVA transformer has been dedicated

for use by Technopark at this Substation. The campus power distribution network has

presently ten I 1 KV 1440 Volt substations inter connected through under ground HT cables.

These cables would reduce the transmission loss of electricity to a greater extent. At

present there are 4 Feeders established in the Park and two more feeders are to be added

immed~ately. There 1s 100% ava~lability of quality power in the campus as well as the

nearby locat~ons all through out the year and there is no power cut in the campus.

4.3 Construction Work in the Campus

Techlopal-k has started its construction operations in the year 1992 by acquiring 50

acres of land from K.erala Un~versity at Kariavattom at a cost of Rs. 75 lakhs in

1991 .Subsequently i t has acquired 92.42 acres of land from Attipra, Kazhakkuttam and

Menamkulam Grama Panchayats at the land acquisition consideration, and 1.22 acres of

land for water resource. Thus the Technopark campus spreads over 143.64 acres. For

further expansion another 56.08 acres of land were acquired at Aakkulam in the year

1996; out of this15 acres of land has been transferred to 'NISH' (National Institute of

Speech and Hearing) as per Government instructions. Thus, the net land in possession of

Technopark 1s 184.72 acres.

The Park has by now, built- up space of 6,82,000 sq. ft. of which 4,91,324 sq. ft.

leasble and 3,50,000 sq.ft. is under construction, of which 3,66,000sq.ft. leasble as is

given in the following table. All the bulldings in Technopark are named after rivers.

Source: Technopark Records.

Table 4.1 Built-up Area and Leasable Area

The Park has additional built- up area of 1,41,500 sq.ft. as is given in the following

Table.

f'arnba

Periyar

Nila

C'handragi1.1

Gayatr~

6. Bhavanl

'1 able 4.2 Built-up area of Park Centre

and Other Common Facility Buildings

Built-up Area

in sq.ft.

36,000

36,000

4,00,000

60,000

1,50,000

4,50,000

Area (in sq.ft.)


Leasble Area

in sq.ft

30,000

30,000

2,82,000

53,324

96,000

2,60,000

Year of Completion

1. 2.

3. 4 5.

Years of

Completion

July 1994

July 1994

April 1997

Dec: 2000

200 1

Under constructior

Park Centre

Restaurant and Cafeteria

Guest Housi: Club House Utll~ty Complex

Total

60,000

17,000

16,000 25,000 23,500

141500

July 1994 Dec: 1995

March 1996 Dec. 1997 May 2000

Out ot the total holdings of 184.72 acres ofland, Technopark has disposed off 11.85

acres of land for various companies and some of them have constructed their own buildings

and started operations there, the details of which is given in the following table:

Built-up Module Leased out

Table 4.3 Land Leased out

The following table reveals the total built-up space available, the total area allotted

Sl No

1

2

3

4

5

6

7

8

9

and the percentage of utilization of space in TECHNOPARK

Table 4.4 : Built-up Space in TECHNOPARK

Source: TECHNOPARK Records

- Budding

- Amstor lnfom~ation Tech

Tata Consultaricy Sewices

Dataware Des~gn Labs

Softex Compter Consultants

Case Consult India P.Ltd

Pen pol

NEST

M Software& Development Expo

Toroid India Pvt. Ltd.

Total -

Source : Economic Review, 2002

Year of

completion

1996

1998

200 1

Construction

not started

fear

1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-0 1

200 1-02 2002-03 Total

Leased out

land in Acres

0.80

2.15 0.95

0.70

1 .OO 1.40

0.75

2.00

2.10

11.85

Total Space

available (sq. ft)

70963 70!)611 70963

363563 ?63!;6?, 363563 407563 536563 866563 866463

Area Constructed

in sq.ft

12,200

57,500

37,000

Construction not

started

Percentage of

utilization

17.89 47.79 78.72 20.88 24.46 44.60 76.10 68.68 60.32 60.32

Total area alloned (sq.ft)

12696 33912 55860 75924 88924

162156 310126 368531 522749 522749

Balance area unallotted (sq.ft)

58267 3705 1 15103

287639 274639 201407

97437 168032 343814 343814

220

From the above table it is clear that by the end of 2000-01, TECHNOPARK has a

total actual built-up space of 407563 sq. ft available for allotment out of which, 310126

sq.ft were allotted and the balance area unallotted were 97437 sq. ft. The percentage

utilization oibuilt-up space rose up to 78.72% in 1996-97; the next highest percentage has

been found in 2000-01, i.e., 76.10% and the next highest percentage of 68.68% in 2001-

02. In the year 2002-03, the built up space available has increased by 330000 sq. ft, the

corresponding increase in total area allotted was 1542 18 sq.ft; the percentage ofutilization

has slightly reduced 1.0 60.32%.

Technopark hais been receiving Grant-in-aid from the Government of Kerala since

its inception, the details of which are given in the following table.

Table 4.5 Grant-in-Aid received from Government of Kerala


4.5. Status of Companies

Y edr

1990-9 1

199 1-92

1992-93

1993-94

1994-95

1995-96 1996.97

1997-98

1908-99

1999-00

2000-0 I Total

Out ot the 55 companies in Technopark 3 are Hardware companies, 3 are Data

Capture Companies, 45 are Software design1 development Companies, 3 are Internet

Companies and 1 Nat~onal Software Training Centre of Tata Consultancy Services. Of

Amount of Grant-in-Aid

- (Rs in Lakhs) 150

100

1070

1450

1500

200 1300

660

700

500 450

- 8080

- Year of utilisat~on

1990-9 1

1991-92

1992-93

1993-94

1994-95

1995-96 1996-97

1997-98

1998-99

1999-00

2000-0 1

the 55 companies 25 are Fully Foreign Companies,9 are N.R.I. Companies and 21 are

Indian Companies. Most ofthe N.R.I. I Indian Companies are in joint venture with foreign

companies. The details of capital investment of the companies are given in the following

table:

Table 4.6 Capital Investment of Companies (Rs. in lakhs)

-- -


NRI Domestic

Software 5,355 5,550 2450

100 100

Total 6,555 5,650 2,550

4.6 International Aftiliation and Collaborative Programmes

Total

13,335

1,400

14,755

Technopark is an active member of the following two International Organisations

- I.A.S.l'.(lntematiorial Association for Science Parks) and A.U.R.R.P. (Association of

University Related liesearch Parks). It has also been successfully introducing various

novel projects in collaboration with UNIDO (United Nations Industrial Development

Agency), SIDA (Swedish International Development Agency). Moreover, Technopark is

a member of the following Organisations:

(1) ELCINA- Electronics Component Industr~es Association

(11) C11- Confederat~on of Indian Industries.

(Ill) IACC- Indo- American Chamber of Commerce

(1V)IGCC- Indo- German Chamber of Commerce

( V ) NASSCOM- National Association of Software and Services Companies

4.7 I S 0 Certification

On September 2 1, 2000, Technopark has received I S 0 9002Certificate. The I S 0

9002 model for quality assurance covers the areas of production and installation.

Technopark is humt, to ? companies, which have achieved the CMM Level 5 quality

evaluation

The new IT policy is the comer stone of the State's initiative to woo investment.

India's first tailor-made regulatory frame work for the IT and ITES industries provides

general permission for three - shift operations, women working in the night shift, flexi

time operation and public utility service status for IT/ ITES ~ndustry in the State. The

incentive schemes have set a benchmark among States by offering up to Rs.90 lakhs against

specified employment creation

4.8 Current Performance

The export performance of the park is around Rs. 225 crores. The park has recently

doubled the capacity and expects value addition to go up by at least 50%. At full capacity,

the Technopark should be generating an export revenue of about Rs. 700-750 crores. The

companies in TECHNOPARK could invest an amount of Rs. 177.45 crores as on date

with an export potential of 225 crores, the detailes which are given in the following table.

!s in TECHNOPARK

Export (Rs Lakhs)

Table 4.7 Investment and Export by companl

50

380

800

2700

5400

7000 14800 22500

Not available

Year

1994-05

1995-'96

1906-'37

1997-08

1 998-139

1999- 2000 2000-0 1

200 1-02

2002-03

Total 1 17745 I

Total investment

by companies (Rs Lakhs)

350

980

1335

1025 600

3865 4000 1995

3565

Source : Economic Review, 2002

4.9 Incentives

From the perspective of the State Government, Information Technology is leading

the way to Kerala's future and government agencies have geared up to encourage new

ventures in this sector. 'The Kerala Goverment's IT Industry Incentive Scheme 2001-2003

encompasses a unique and comprehensive package of incentives and policies for IT

products, Software and Information Technology Enabled Services (ITES) Industry.

4.10 Free-zone Benefits

'Two tiee-zones In Technopark - the Software Technology Park (STP) Scheme and

the Electronics Hardware Technology Park (EHTP) Scheme - offer tremendous benefits

to 100U/13 EOUs (Export Oriented Units):

( I ) Duty frec: lrnports

(ii) Up to 100% foreign ownership.

( i l l ) L)omestic market access

(11) Corporate Income tax holiday for 10 years

(v ) Supports from domest~c area to free zones treated as deemed exports.

4.1 1 Financial Benefits

( i j Outright grant of 20% of Fixed Capital Investment subject to a ceiling of Rs. 2.5

million per project.

( 1 1 ) kxempt~on from tax for the first 7 years

( i ~ i ) Grant of 50% of the cost of project feasibility studies for medium and large-

scale industries.

(I\,) Duty free imports and income tax exemption for EOUs.

4.12 High Tech Business

Technopark i s the hub of a wide spectrum of innovative, technology- intensive

software development activities. Kerala has India's highest density of science and

technology people most of whom are highly resourceful, productive and committed. The

activit~es at Technopark include:

(I) Embedded software development;

(11) 1.1' enabled services;

(111) Smart card technology;

( i \ ) Process control software design;

( I Engineering CAD software development;

( V I ) I5.R.P:

( \ 1 1 ) Re-englneerlng;

( ~ 1 1 1 1 4nlmatlori software,

(x ) Medical transcription, etc

The export is mainly to European Countries, United States, Japan, South East Asian

Countries, Middle E<ast as most of the companies have their base in such countries.

4.13 Institutions that nurture excellence

The Indian lnist~tute for Information Technology and Management - Kerala (IIITM-

K) has been set up in the Park Centre at a cost of Rs. 30 crore. Grant by the State

Govenlmrnt. A pennanent campus for IIITM-K will be ready in the next few years

involvrng a cost of Ks.300 million. The fully air conditioned campus will provide world-

class educat~onal infrastmcture and facilities to the students. IIITM-K will promote research

in software development with the participation of faculty and experts from leading business

in the IT sector. The first post graduate diploma programme (1 112 year's programme,

with tluee semesters) is going on with the capacity of 60 students, and the number will

progressively be enhanced in the coming years.

Thc Corporate Academy of Tata Consultancy Services (India's largest exporter of

software) occupying 2.15 acres ofthe campus, built up their building in 57,500 sq.ft. area,

is the nerve centre of' all its educational and training programmes. Every year near about

3000 prt~fessionals are trained here.

4.14 C:omprehensive Business Facilities

(i) Auditorium (Travancore): With a seating capacity of 180, this is the best

auditorium for technical seminars in South India. The most advanced conferencing facilities

like multi lingual translation; modem congress system, video projection system, etc. are

available.

(ii) Two conference centres, Malabar, with a seating capacity of 40 and Cochin,

with a seating capacity of 20, are both fully equipped to handle seminars, training

sessions, Board meetings and business presentations.

(ill) Open air Theatre (Sangamam)

This large, sprawl~ng open air auditorium has a seating capacity of 2000

( iv) Exhibition space of 3000 sq.ft.

( b ) L~brary and Information Centre.

(vi) Business services like Internet access, E-mail, fax, telephones, photocopying,

computer requirements, etc.

4.15 Life Style Amenities

( i ) Club House with restaurant, swimming pool, fitness centre, table tennis, billiards,

tennis and badm~nton courts and putting green.

(ii) Party Zone (Sandhya): A 7000 sq.ft. Landscaped lawn overlooking the hillside

and the Arabian Sea in the horizon.

(111) Guest House that prov~des excellent accommodation options.

( I v ) Restaurants

(v) A commercial complex with a lot of services like bank, post office, shopping

centre and so on.

(v i ) In order ro have an exclusive township comprising residential buildings an

internat~onal standard school, a hospital, a five star hotel, etc. 56.08 acres of land has been

acquired at land acquistion consideration beside Aakkulam backwaters in the year 1996.

As per Government instructions 15 acres of such land has been handed over to NISH

(National Institute of' Speech and Hearing). The Park at Thimvananthapuram is being

designed on the lines of internationally reputed Science and Technology Parks like the

Singapore Science Park, Hsinchu Science Based Industrial Park and the Silicon Valley.

This ultramodern techno polis will offer facilities of international standards to high tech

ventures in electronics and software with emphasis on export orientation.

4.16 Water Supply System

Developing an additional water source of 1.22 acres at the southern side of the campus

has recently augmented the water supply system. Although comfortable at present, the

demand- supply position ofwater in the campus is likely to become adverse in the coming

years. Measures like rain water harvest, water recycling and barricading will need to be

adopted to ensure adequate supply in future. The campus authorities have also requested

Kerala Water Authority to make available 4 MLD of water from the Manvila Project. At

present the water is available from 3 ponds and treated in the Water Treatment Plant and

pumped to the tanks- Sump Tank and Overhead Water Tank. The present capacity of the

sump tank is 5.4 Lakh litres including the firewater storage of 1 Lakh litres. The sump

tank has an Inner chamber for the firewater storage and an outer one to cater to the water

requirement of the low lands. The capacity of the OH tank is 6 lakh litres for catering to

the water supply to the high land and the tank has at its top a viewing gallery to which

there is access through the central shaft.

4.17 Telecom and Datacom Facilities

Telecom and datacom networks in the campus are also performing well and to the

satisfaction of companies. BPL manages in the campus telephone exchange of 50011000

lines through Operation and Maintenance (O&M) contract. DOT lines are also available

from the Kariavattom Exchange Datacom services are provided by the STP (Software

Technology Park) and L'SNL has installed an earth station, which is linked to their Mumbai

gateway The IBS E3 Satellite Earth Station in the campus has been operational since

1994 and is a very vital infrastrcuture for software exporters and international data

comrnun~catlon. Optical Fibre links from VSNL gateways in Kochi and Chennai enhance

the capacity. The other service providers are BPL Net, Srishti and Kelnet, Asia net Datacom

and DDI. net.

4.18 Campus Services

The campus services play a v~tal role in the successful functioning of the companies.

In addition to power distribution and water supply system and communication net works,

the campus services include:

(i) Restaurant and Cafeteria -5 Nos.

(ii) Banks-2 Nos- SBI and Indus Ind Bank

( i i ~ ) ATMS-3 Nos- SBI, HSBC and Indus Ind Bank

(ib ) Post Offict:- l No.

(vj Health Club- I KO.,

(vi) Guest House- 1No.

The central area (atrium) bounded by 4 blocks has been covered at the roof level for

usuage of the area for dininglparties etc., in NILA building.

4.19 Quality Policy

The quality policy ofTechnopark is "to strive for sustainable growth and customer

prosperity through an enhanced business environment, synergic relationships and

continuous innovation". Promoting synergic relationships is core to the growth strategy

and in this process TECHNOPARK associates and works with various National and

International 0rgani;sations.

4.20 PromotionaU Developmental and Marketing Activities

The legal r~ght of the Land tor the proposed site could not be ascertained since the

valuation process by Special Thasildar (LA) was not yet over.

The legal right of the Land fbr the proposed site could not be ascerained since the

valuation process by speclal Thasildar (LA) was not over this year also.

The centeral theme to the project activities in the year has been the creation of civil

infrastructure for the Karlavattom Campus. This was the third phase of the project. In the

first phase, the conceptualisation, Society formation, project planning, strategy formulation,

etc. are done. In the second phase, the emphasis was on creating a high visibility for the

project through intensive promotional campaigns.

The civil infrastructure creation includes the following activities.

I ) Co~~stmction of two major roads within the campus

11 I Fencing

~ u ) Levell~ng and grading

i b ) Construction of industrial modules building

v ) Construction of the Park Support Facility Complex

There has been an avarage schedule delay of 3 to 4 monthss mainly due to:-

I ) Delay inland acqusition; and

l i ) In~tial local labour problems

Regardmg electnc power, dlscuss~ons were carried on with the KSEB for setting up

a 110 KV \ub-staton in the campus

1993-94

'I he infrastructure development in the campus started dunng 1992 and by 1994 the

first 3 bulld~ngs - Park Centre, Pamba and Penyar were completed. Works of filling and

levelling, construction of boundary fencmg, network of roads, land scaping works etc.

have been completed, Durlng the year TECHNOPARK made several promotional

presentalons at varlous fora. The Park also received a number of visitors from both within

the country and outside.

1994-95

The construction of the multistoried industrial building NILA was taken up during

1995.

'The Swedish International Development Agency (SIDA) has been assoicating with

TECHNOPARK and is carrying out a joint project for the development of electronics and

IT Industry in Kerala. The first programme in this regard was canied out during this year

and was participated by several leading Kerala based companies.

i ) Construct~on of the new multistoried industrial modules building (NILA) has been

completed.

i i ) During the :year, TECHNOPARK began construction work of the Club house and

Utility buildings targeted for completion by early 1998.

111) TLCHNOPARK recelved a large number of vlsltors from vanous contnes.

11,) The three day Asia Pacific Conference of the Intemational Association of Science

Parks (IASP) was held at TECHNOPARK in February 1997.

i I NILA was inagurated on 30th April 1997 by the Hon. Chief minister of Kerala,

Shri. E . K . Nayanar at a function presided over by the Hon. Minister for Industries, Smt.

Suseela Gopalar~.

i ~ ) Mr. John hlathai, Chairman, Project Implementation Board and Principal Secretary

(Industries), GOK attended the World Conference of International Association of Science

Parks (IASP) held at Trieste, Italy in June 1997.

1111 Shr~ Shymal Ghosh, Secretary, DOE (Department of Electronics) Go1 v~slted

TECHNOPARK dunng the year.

iv) The foundation stone of Electronic Nikethanam was laid down by Mrs. Suseela

Gopalan, Hon. Minsister for Industries and Social Welfare at TECHNOPARK on 28-07-

1997. This innovation centre is expected to synergise the efforts of the local universities,

other Central and state run research centres and the in house talents of the TECHNOPARK

industiral ventures

v) Thc International Business Incubation System (IBIS), promoted by UNIDO aims

at facilitat~ng new start-ups by providing physical and technical skills available in

developing conuntries which will be matched by the know-how and capital of SMEs

originat~ng from developed countries and interested in establishing their industrial activities

in developing countries. TECHNOPARK will play a non-commercial catalytic role of a

connterpart to UINDIC, to cooridinate its efforts in Trivandrum. The identified areas relate

to Information Technology, Food Processing, Space related Products, Fashion Garments,

Accessory Des~gn. A workshop was held in the first week of December 1997 at

TECHNOPARK.

V I ) IVL India Pvt. Ltd., a 100% software export unit in TECHNOPARK became the

first company in the country, engaged in SAP FU3 based development to be awarded the

prestigious IS0 9001 Certification. IS0 9001 is a model for quality assurance issued by

the International Organisation for Standardisation (ISO). The award is given to those

companies who can demonstrate to external auditors, their quality processes for design,

development, production, installation and servicing of sofivare solutions.

\ 11) NeST (Network Systems and Technologies Pvt. Ltd.), a unit in TECHNOPARK

has been assessed at the Defined Level (3) of the Capability Maturity Model (CMM) for

software by the Software Engineering Institute (SEI). The Company was also the first

software company In Kerala to achieve I S 0 9001 quality certification.

V I I I ) His Excellency Rlchard Celeste, the US Ambassador to India visited

231

TECHNOPARK on 4th Febmrary 1998. The Ambassador was accompanied by Michele

Sison, the Consul General of United States of Amrica in Chennai and Mr. Frank Ward,

Director, USIS, NewDelhi.

Technopark also received His Excellency Kaul G. Engstorm the Swedish

Ambassador to India on 22.12.1997.

ix) Amstor Information Technology was inaugurated by Sri. K. Mohandas, Secretary

(Industries) (3oK on ;!6- 12- 1997.

x) A delegation of Gennan companies led by Mr. Herbert Weber, Director, Fraunhofer

Institute for Software Systems Technology, Berlin visited TECHNOPARK and the various

software companies on 18th September 1997.

xi) TECHNOPARK participated in CeBIT '98 at Hannover, Germany which is the

world's largest show of companies involved in Information Technology.

xii) TECHNOPARK participated in IT COMDEX'97 (December 1997) and

WISITEX'YX (February 1998) at NewDelhi.

TECHNOPARK'S promotion was mainly through participation in Trade Fairs, direct

marketing, visits and d~rect interaction with prospective investors.

TkCHNOPAIIK participated in CeBIT '98 at Hannover, Germany. The

TECHNOPARK stall at CeBIT attracted many visitors and several ofthem envinced keen

interest in setting up operations iin the campus.

MBA students from Halmstad University, Sweden came down to TECHNOPARK

for undertaking a 6 weeks study as pan of their project work.

The foundation stone for the 110 KV electrical sub-station has been laid by Smt.

Suseela Gopalan, Honourable M~nister for Industries in July 1998 signifies another

progressive step in the growth and development of information technology based industries

in the State

TECHNOPAKK and IEEE (The Institute of Electrical and Electronics Engineers,

Kerala Sect~on jo~ntly organised a Product Design Contest on 18th July 1998, at the Park

Centre to promote innovativeness and spnt of enterprise among students.

TECHNOPAKK is association with IEEE, Kerala Section organised a National

Seminar on Virual Reality at TECHNOPARK International Convention Centre on July

28, 1998 in connection with the TECHNOPARK formation Day.

A team from ADB (Asian Development Bank) visited TECHNOPARK during their

visit to Kerala.

Britek India, a 100% export oriented software unit inaugurated at TECHNOPARK

by Hon. M~nister E. Chandrasekharan Nair at a function presided over by Sri. I.S. Gulati,

Vice-Cha~rman, Planning Board-Kerala.

Part~cipated in the US Investement Summit at Chennai, from January 20 to 21,1999.

Industries Minster Mrs. Suseela Gopalan inauguraed the Integrated Services Digital

Network (ISDN) at TECHNOPARK on January 5th 1999. (ISDN represents the latest

addition to the Stare's communication technology. It will facilitate high speed digital

connectivity to homes and small businesses at affordable prices.)

Dur~ng the current year Sun Tec Business Solutions India Private Ltd. has signed

Memorandum of Understanding with TECHNOPARK.

Mr. T. Sivadasa Menon, Hon. Minister for Finance, inaugruated the two day

conference on "Road Map to intelligent Kerala", Prof. G.K. Menon, Co-Chairman National

Task Force on lnfo~mation Technology and Software presided over the function.

The campus 1s bubbling w ~ t h activity. A new company starts every three weeks, on

the average, Most of the exist~ng companies are expanding. The space in the existing three

buildings- Pamba, I'eriyar and Nila - has been fully committed.

The fourth building Chandragiri, is under construction. Construction activities on

the fifth building, Bhavani, and the sixth one, named Gayatri was scheduled to commence

in the year 1999-2000. Bhavani will have 88 modules of 2000sq.ft. each and is about

70% of the size of NILA. Gayatri will have 96 modules of 1000 sq.ft. each. The total

Project Outlay of the two buildings comes to Rs. 30 crores.

The campus of'TECHNOPARK at Aakkulam which is being developed as support

campus has been undergoing some work of compound wall and peripheral road.

TECHNOPARK participated at the Indian IT and Software Expo organised by

NASSCOM & the Indian Business Council at Dubai in May 1999, thereby launching a

major promotional campaign in the Gulf.

TECHNOPARK also partlclpated at IT.Com at Bangalore, COMDEX '99 and IT

ASIA 2000 at New I)elh~.

A conference on IT Enabled Services was held in TECHNOPARK in October 1999

in assoclatlon w~th C11

In December, TECHNOPARK hosted the Annual Convention and Exhibition (ACE

99) of the Institute of Electrical and Electronics Engineers (IEEE).

In January a cross section of the present and future IT entrepreneurs assembled at

the Park Centre to interact with the TIE Group from California.

"A Week with the Masters- Animation Celebration", the global conference of

animation of experts was organised by Toonz Animation at TECHNOPARK. This will

be an annual event bringing in high profile guest to the campus.

In order to attract more and more entrepreneurs to the Park, Technopark has taken

the following activities in the last financial year:

I . Organised .'Investor Meets" at Bangalore and Mumbai,

2. Palticipated in the Meets conducted by KSIDC, KINFRA, and K- BIP at Delhi,

Pune and Chennai.

3 Partlclpdted in IT World /COMDEX; IT Asla, NASSCOM Annual Meet,

Intelligent Enterprise 2000;IT.Com Bangalore, etc.

4. Organised "A Week with the Masters-Animation Celebration", an international

animation fair at Technopark from October 30th to November 3,2000by Toonz Animation.

A number of famous veterans in the animation field have participated in such a fair.

5. IT Fair 2000 has been organised from November 23 to 26 at Technopark. A 3

days International Seminar on knowledge Industry has also been organised on such an

occasion.

6. Delegation of The IndUS Entrepreneurs (TiE) team from Silicon Valley visited

Technopark on lh.01.2000.

th 7 Part~c~pated 111 the Flower Show-2000 at Thiruvananthapuram from 24 to 30Ih

January, 2000.

8. Participated and Organised Seminar in the 'NASSCOM-2000' IT Exhibition at

Mumbai from February 2to 5. 2000.

9. Participated :along with KSIDC, IUNFRA, K-BIP, Mission Group and KELTRON

in the 11' Asla -2000Exh1bition organized jointly by CII and Kerala at New Delhi from

February 8 to I 1,2000. The CEO of Technopark has briefed the activities of Technopark

in the Executive of MAIT &CII, on such an occasion.

10. A 2 days Seminar - 'A Vision Beyond 2000'- has been organised jointly with

th the Department of Computer Science, University of Kerala on 8 and 9IhMarch, 2000.

4.21 Companies Functioning at the Park

Following are the companies which are functioning in the Technopark Campus

during the year 2000-01: The Capital invested (Rs. in Lakhs), employment (nos) and

sales (Rs In Lakhs) fbr the said period are included in the table.

235

Table 4.8 Companies Functioning at TECHNOPARK Campus as on 31-03-2001

SI. No: Name of the Company Capital Invested Employment Sales

(Rs.in Lakhs) (Nos.) (Rs.in Lakhs)

Ada Software and Services Pvt. Ltd.

B.P L.Systems and Projects Ltd.

Case Consult l n d ~ a Pvt. Ltd

Data Entry International Pvt. Ltd

IVL India Pvt. Ltd

Networks Systems And Technologies

Transmatics Systems Pvt. Ltd

Visionics l n d ~ a Pvt. Ltd

9 Amstor lnfonnation Technology Pvt. Ltd

10 Terumo Penpol Limited

11 Srishti Open Systems Private Limited

12 Tata Consultancy Services Private Limited

13 B.P L.Telecom L:~mlted

14 Toroid lndia Private Limited

15 Sea view Support Systems Private Limited

16 S.D S.lnfotech Limited

17 Dataware Deslgns Labs Private Limited

18 International Business Services Group

19 Sun Tec Software Solutions

20 Fischer Systems lndia Private Limited

21 GADCO Software And Services Private Ltd

22 Gemin] Software Solutions Prlvate Ltd

23 Geosoft Technolc~g~es Private Limited

24 Geologik G .h lB .H

25 lntsyx Technologies Private L~rn~ ted

26 Healthcare Media Incorporated

27 Britek Technologies Private L ~ m ~ t e d

28 Softcx Computer Consultants

29 Painar- 'fransmed~a Services

30 lndmft lnfotck Services Private Limited

31 Square Deal Eng~neers Tooling Pvt.Ltd.

32 Toonz lndia Private Limited

33 Enter Technologies Private Limited

34 U.S.Software Private Limited

-

20

50 +ZOO0

Software

trainees

5

450

100

40

150

500

200

25

15

50

100

10

10

90

25

10

20

50

20

360

160

500

236

35 Claas software Solutions 200.00 35 150.00

36 Inaap information Technologies 60.00 25 50.00

37 Swamy Cyber Solutions Limited 80.00 25 50.00

38 Jai Infosystems Private Limited 30.00 30 -

39 M Square Software Limited 40.00 6 - 40 B.F.L.Sofiware Limited 20.00 5 -

41 Ushus Technologies Private Limited 100.00 50 10.00

42 Softlution Web Technologies 350.00 45 10.00

43 Cosmornart.com 30.00 25 10.00

44 Entercom Technologies - 5 -

45 M.Y.M.Technologies Private Limited 6.00 - -

46 Dimensions Cybertechs Private Limited 60.00 30 10.00

47 PIT Solut~ons Private Limited 40.00 30 5.00

48 Softexcel Technologies and Services Pvt.Ltd 20.00 5 10.00

49 Kelnet Communications and ServicesPvt.Ltd 20.00 5 5.00

50 S.G.SPrivate Limited 50.00 40 25.00

51 Arackal D~gital Solutions 200.00 30 -

52 Datec Systems Private Limited 100.00 2 -

53 Toroid Asia Private Limited 20.00 3 - 54 A.R.S.Technologies 20.00 5 - 55 Tata Elexi Limlted 4.00 20 -

Total 14755.00 6815 14855.00

4.22 The IT Industry Policy, 2001-2005

The IT Industry Policy announced on December 5,2001 incorporates the first tailor-

made regulatory framework for the IT industry wherein software companies would be

deemed as establishments under the "Kerala Shops and Commercial Establishments Act,

1960". Further, IT Industry has been deemed a Public Service Utility under the lndustrial

Disputes Act, 1943. Kerala also sets a new benchmark by permitting Self- certification in

respect of the following 9 Acts:

(1) Payment of Wages Act

(ii) Minimum Wages Act

(iii) Contract Labour (Regulation & Abolition) Act

(iv) Workmen':; Compensation Act

jv) Employees State Insurance Act

(VI) Employment Exchanges Compulsory Notification of Vacancies Act

(VII) Kerala Shops and Commerc~al Establishments Act

(vlii) Payment of Gratuity Act

(ix) Kerala Casual, Temporary, Badli Workers' (Wages) Act.

Kerala is the first State in the country to implement these measures.

4.23 Performance Evaluation

In order to rvaiuate the performance effectiveness of Technopark three bases have

been selected and appl~ed

( I ) Operat~onal Perfromance Effectiveness

jii) Managerial Performance Effectiveness

( l i ~ ) Financial Performance Evaluation

A. Operational Performance Evaluation.

In assessing the operational performance effectiveness, the following scheme has

been prepared as shown in the diagram

Operat~onal Performance Evaluation

Buildings i. Establ~shment of' ii Employment ii i Fulfillment of iv. Adherence to v. Adherence to

Generation Objectives Time Schedule Cost Estimates

1. Establishment of Buildings

Technopark has envisaged constructing 11 buildings in the campus for its

administrative office, utility complex, guest house, club house, restaurant and cafeteria,

built-up modules, etc. The actual construction is also 11 buildings because the Society

could complete the construction of 10 buildings in full and the 1 lth one i.e. Bhavani is in

the final stage of construction. This building will be completed 3 months aheadof schedule

and the contractor may be eligible to enjoy the incentive fixed up at the time of contract to

the tune of Rs. 80 laldis. All the buildings have been constructed much below the estimated

value 1.e at a lower tender value which always lies in between 80% and 90%. Thus there

is operat~onal efficiency as to the establishment of the buildings.

2. Generation of Employment

As per the project report, the Society envisaged to give employment to 1000 persons

directly and to 2000 persons indirectly, but it had provided direct employment to the

extent of 68 15 and indirect employment to 3000 persons as on 3 1.3.2001. Thus it proves

to he very efficient in providing employment to both skilled I professional people. In the

coming years on completion of new buildings and by the occupancy of those buildings too

by new entrepreneurs within and out side of Kerala inclusive of overseas entrepreneurs, it

will be possible to generate additional thousands of employment.

3. Fulfillment of objectives as laid down in the Memorandum of Association

The main objectives as laid down in the Memorandum of Association are:

(i) To undertake in a time bound and a mission oriented basis the planning,

establishment and management of Electronics Technology Parks in Kerala so as to create

the ~nfrastructure ar~d environment required for setting up high technology Electronics

Manufacturing unit and Research, Design, Development and training establishments.

Electronics Technology Parks - Kerala has been established in 1990 by the Special

initiative oi'the Government of Kerala. It has acquired a total land of 184.72 acres in two

compounds, one with a total area of 143.64 acres and the other with a total area of 41.08

acres (after the transfer of land to NISH). It has developed the land, mainly in two areas-

high le\ el area and lower level area, made roads of 4 kms, and blackened it with tar, etc.

It has brought power by building a Power Station in coalition with the KSEB and has

spent all amount of Rs. 478 lakhs for this purpose.

In the campus it has 10 11KVl440 volt feeders and 4 transformers and quality power

is available round- the: - clock and there is no transmission loss due to the transmission of

electricity through underground cables. There is no question of any power shortage or

load shetiding

It has constructed a total number of 11 buildings inclusive of administrative block

or Park Centre, other common facility buildings and built-up modules (Table 4.1 and 4.2)

and leased out 5 buildings already- Pamba, Periyar, Nila, Chandragiri and Gayatri. One

another building viz. Bhavani 1s under construction and is finishing its construction

expeditiously so as tu lease it out in the first quarter of 2002-03.

In the campus MIS Tata Consultancy Services has built up a Training Centre in 2.15

acres of land and it is providing training facilities to above 2000 software professionals

every year. In addition to it, IIITM-K (Indian Institute of Information Technology and

Management - Kerala) has also started its training programmes on 15 March 1991 and it

is in the process of' imparting IT education to 60 pupils every 18 months. Thus, the

researcher conforms to the Park authorities that they have almost fulfilled the first objective.

(ii) Its second objective is to encourage and attract Non-Resident Indians and

cornparlies to set up Electronics manufacturing units, and research, design, development

and training establishments in Kerala.

As on 3 1.03.>!001, 55 companies (Table 4.6) are functioning in Technopark and of

whlch 25 are foreign companies, 9 are NRI companies and the balance 21 are Indian

companies and most of the companies are run by Non- Resident Indians in joint venture

with Foreign Entrepreneurs. They set up Electronics Manufacturing, Design, Development

and Trainlng establishments in Kerala. Thus, the second objective is also fulfilled.

( l i i ) The third objective is to undertake a major initiation to assist in the setting up of

software development units in Kerala.

Out of the 5 5 companies functioning in Technopark 45 companies are setup for the

purpose of designing and developing software

Thus, with the initiation ofTechnopark large number of software development units

were established in the Campus; the third objective of Technopark is also fulfilled.

(iv) The fourth objectlve is to accelerate the up gradation of research and development

facilities in Universities and other Institutions in Kerala to make them capable of carrying

out leading edge research in Electronics, Telecommunications and Computer Science.

Towards this end, on 8 I h March 2000 Technopark in collaboration with the Computer

Science Department of Kerala University organised a 2days Seminar "A Vision Beyond

2000". The 'Technopark companies actively participate in the implementation of the IT

Policy of the State Government by sitting in various committees including the IT Advisory

Council. A Centre for Training in software Engineering has been started at the College of

Engineering, Thiruvananthapuram, funded by the Directorate of Industries and Commerce

and supported by Technopark Companies.

Thus the fourth objective is also hlfilled

(v) The fifth objective is to encourage and support production units to carryout

continuous research for developing new products and services.

The setting up of K&D Incubators and Pilot Production facilities in the Park can be

utilised by the units in developing new products and services. The various units functioning

in the Parks now resort to their own research facilities.

Thus, the fifth ob~ective is also accomplished.

4. Adherence to Time Schedule

In developtng land, in making roads, in constructing buildings, in arranging

infrastructure other facilities and common facilities Technopark has attained more than

100% efficiency, as 11: has been able to finish the construction works much ahead of the

scheduled dates. This has been evidenced by the Society Records. For example, as per

the Annual Report 1992 - 1993, the complete infrastructure is expected to be in place by

the end of 1993-94 the Infrastructure development in the campus started during 1992 and

by 1994, the first three buildings - Park Centre, Pamba and Periyar were completed as was

originally planned. Thus, there IS cent percent performance effectiveness as to the

adherence oi' time schedule in fulfilling the targets of the Society.

5. Adherence to Cost Estimates

In constructmg buildings, water tank, sump tank, in making roads, in blackening the

roads, fencing, in setting up infrastructure, common facilities, other facilities, etc.

Technopark has been able to llmit the expenditure much below the budgeted cost. This

has also been evidenced by the Society Records. For example, As per the Annual Report

1999-2000, the incorn~ng 110 KV substation was inaugurated on 2nd June 1999 and an

amount of Us . 97,04,632 has spent for the completion of the same. An amount of Rs.

1,00,00,000 was rec~eved fim KSEB in this behalf. Thus, there is cent percent performance

effectiveness as to the adherence of cost estimates.

B. Managerial Performance Effectiveness.

In assessing tho n~anagerial performance effectiveness of the Society, the researcher

has taken 5 criteria as below : ( I ) Organizational Structure; (ii) Communication System;

(iii) Reporting System; (iv) Co-ordination Mechanism and (v) Control Techniques, as it

is given in the following diagram

i.Organisation Structure v. Control Techniques

iv. Coordination Mechanism

1 iii. Reporting System I i. Organization Structure of TECHNOPARK

The organlratlon chart of rECHNOPARK 1s glven in the next page

Organization Chart of Technopark

CEO (Chief Executive Officer)

COO - Chief Operating Officer

I GM (Technical )

I Senior Manager (Admin & 1 Manager

I Manager

Personal (Business Development) (Finance ) Or Chief

I I Finance fficer I' - m

Senior Engineer~roject~ssociates~~ecutive Systems Executive Executive 1

Senior Executive (Infrastructure) (Front 0fice)i~ecretary to CEO) (Librarian) Senior Executive Execuitve Execb've

(Relations) (Finance) (Purchase and , . Costing)

The follow~ng table discloses the rating of the parameters under Mangerial

Performance Effectiveness of TECHNOPARK by its officials

Source : Primary Data

Table 4.9 Managerial Performance Effectiveness

Parameters Performance Effectiveness

As the Organisation Structure has only limited layers, the executives can execute

very

effective

J - -

J J -

~ i i . J J J

iv. J J J

V. J - J

their functions in the desirable manner; there is no confusion as to who should report to

whom.

(ii) The Communication System installed in the Park is assessed to be efficient and

Not very

effective

- J J

- - J - - - - - -

- J -

it fully meets the requirements of the Park Centre and of the Entrepreneurs though it is

little bit costlier for the entrepreneurs.

(iii) The Reporting System introduced in the Society is very effective as it generally

ensures reliable information to and fro officials at the various levels of the organization.

There is no delay as to the conveyance of information from one official to another official

and from one level to another level in the Society.

Effective

- - - - - - - - - - - - - - -

(iv) The Co-ordination Mechanism within the organization is very effective; as

there is proper and effectlve integration of the efforts of the individuals and departments

and divisions within the organization.

Less effective

- - - - - - - - - - - - - - -

(v ) '[he Control Techniques applied within the organization for following up the

programmes implemented and being implemented are intact with the requirements of the

organization. Similarly, there is no non-availability of personnel, no deficiency of genuine

entrepreneurs for allotting land built-up modules, etc. The attitude of Government officials

is very pleasant and inspiring, but the Park Authorities lacks autonomy in the performance

of its actjv~ties

C. Financial Performance Effectiveness

Profitability of a concern is generally taken as a yardstick for measuring the financial

performance effectiveness of an organisation. As far as Technopark is concerned it is a

society and hence the profitability cannot be taken as a suitable criteria for measuring its

financial performance effectiveness.

The following schemes have been prepared for analysing the financial performance

effectiveness of TECHNOPARK.

Scheme I

1.i lnvestment in land and land development

Financial Performance Effectiveness

The following table reveals the budgeted and actual figures of investment in land

1.Investments in varjous assets

and land development in Technopark for the years 1990-91 to 2000-01.

8. Revenue and Government Grant

Based on Technopark Records

Table 4.10 Investment in Land and Land Development (Rs. in Lakhs)

2. Investment in Promotion Expenses -

3. Analysis of other expenses

Budgeted Amount 1990-9 1 199 1-92 600.00 1992.93 420.00 1993-94 200.00 1994-95 3 15.00 1995-96 10.00 1996-97 165.00 1997-98 300.00 1998-99 560.00 1999-2000 630.00 2000-200 1 430.00

Total 3630.00

-

- - 7. Fixed Assets and Capital Employed

6. Corpus Fund

14.7 -

Actual Amount 50.00 50.00

188.66 79.64

328.14 252.78 192.76 521.38 69.94

104.24 98.96

1936.50

5 . Capital Structure

Cumulative Total 50.00

100.00 288.66 368.30 696.44 949.22

1141.98 1663.36 1733.30 1837.54 1936.50

From the above table it is realised that the total budgeted cost of land and land

development is Rs.36.30 crores, whereas the actual cost is only19.365 crores, which is

only 55.35% of the budgeted cost. In the years 1994-95 to 1997-98 the actual expenditure

on land and land development have far exceeded the budgeted cost, in all the other years

of study the situation IS vice versa. It is advisable that the budget figures should be

reasonable and the sources of finance should commensurate with that of budget figures

and should spend i t in the year of budget itself.

The following figure represents the investment in Land and Land Development by

TECHNOPARK.

Figure 4.1 Investment in Land and Land Development

600 .. . . . ... .-

c

/-' 4 i o n

1990- 1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 91 92 93 94 95 96 97 98 99 2000 01

Year

(I. ii) Investment in Building

Investment in building is an important aspect of expenditure in Technopark.

Construction of Park Centre, Common Facilities Building, Built-up- Modules, Restaurant,

Guest House, etc., is an essential requirement for providing the needed/ requisite

requirements of the existing entrepreneurs in the Park and prospective entrepreneurs. The

follow~ng table reveals the budgeted and actual investment in buildings for the years 1990-

91 to 2000-0 1 .

246

Table 4.11 Budgeted and Actual Investment in Buildings (Rs. in Lakhs)

Year

1990-9 1

1991-92

1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99

1999-2000 2000-200 1 -. Total


Figure 4.2 Budgeted and Actual Investment in Buildings

Budgeted Investment

Year

1 - - -+ - - . Budgeted amunt -Actual amunt I

Actual Investment

Out of the total budgeted investment for buildings Rs. 6,558 lakhs, the Park has

been able to make an actual investment of Rs. 4,321.41 lakhs only ie.65.90% of the budgeted

figures. As a the prospective entrepreneurs try to have built-up modules for their immediate

operations in bulk, the Park authorities shall arrange more and more space by constructing

new buildings in various phases. In addition to the buildings, the Park authorities should

Cumulative

Investment

arrange for Techn1ca:l lrifrastructure and support infrastructure as well.

(1.iii) Investment in Technical Infrastructure

The Technical Infrastructure consists of investment in Plant and Machinery, Generator

Set, etc. The following table reveals the budgeted and actual investment in Technical

infrastructure and support infrastructure for the period 1990-9 1 to 2000-0 1.

Figure 4.3 Investment in TechnicaU Support Infrastructure

Table 4.12 Investment in TechnicaU Support Infrastructure(Rs. in Lakhs)

r r - - Budgeted Investment -Actual hvestmentl

Cumulative

Investment

3.73 24.13 32.86

57.94 368.83

496.38

606.85 832.43

994.03 1033.06 1212.13

Year

1990-9 1

1991-92 1992-93 1993-94 1994-95

1995-96

1996-97 1997-98

1998-99 1999-2000 2000-200 1

Total


Budgeted Investment

260.00 43.00 95.00

820.00

350.00 150.00 125.00 150.00 150.00

2,143.00

Actual Investment

3.73 20.40

8.73

25.08 3 10.89

127.55 110.47 225.58 161.60 39.03

179.07

1212.13

The total budget for 1 lyears from 1990-91 to 2000-01 in respect of Technical and

Support Infrastructure was Rs.2143.00 lakhs whereas the actual cost / investment came to

Rs. 12 12. i 3 lakhs i.e. only 56.56% of the budgeted amount. In the year of inception &the

Park, Technopark has spent Rs.3.73 lakhs for Technical Infrastructure. Similarly, in 1995-

96 it has spent an amount of Rs. 127.55 lakhs for Technical and Support Infrastructure. IR

the years 1990-91, 92-93,93-94,96-97,1999-2000, Technopark has spent only less than

that of its budgeted figures, whereas, in the years 1997-98, 1998-99 and 2000-01, it has

spent more than that of the budgeted figures. Here also the budgeting should be reasonable.

(I.iv) Investment in Library and lnformation Bureau

In order to keep pace wlth the world, Technopark has set up the state-of-the-art

library and ~nformation bureau in its Park Centre, Ground Floor. The budgeted and actual

investment in Library and lnformation bureau is given below:

Table 4.13 Budgeted and Actual Investment


in Library and Information Bureau. (Rs. in Lakhs)

From the above table it is clear that Technopark has spent a total amount of Rs. 15.05

lakhs (i.e. 5.66%)as compared to the budgeted figure of Rs. 266.00 lakhs for the period

Year

1990-9 1 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-200 1

Total

1990-91 to 2000-01. Here the budgeted amount is very much inflated as compared to its

Actual(Rs.)

0.03 0.20 1.46 1.05 0.43 4.12 0.34 0.49 2.94 2.50 1.49 15.05

Budget (Rs.)

-- 25.00 10.00 20.00 46.00 25.00 25.00 25.00 30.00 30.00 30.00 66.00

real investment. Here also the budget figure should be reasonable.

Cumulative Investment

0.03 0.23 1.69 2.74 3.17 7.29 7.63 8.12 11.06 13.56 15.05

(11) Investment in Promotional Expenses

Promotional Expense is an inevitable item in the expenditure of any industrial

promotional agency. Technopark is also not an exception to this rule. Technopark since

its inception had spent and has been spending huge sum as promotional expenses. The

following table shows the investment in promotional expenses budgeted and actuals

Table 4.14 Budgeted and Actual Investment in Promotional Expenses (Rs. in Lakhs)

Figure 4.4 Budgeted and Actual Investment in Promotional Expenses

Total 1 530.00

Year

Cumulative Actuals (Rs.)

19.39 32.35 69.62 94.50

131.13 194.31 211.91 236.20 308.07 393.41 482.76

Budgeted Amount (Rs )

1990-91 1991-92 25.00 1992-93 45.80 1993-94 15.00 1994-95 35.00 1995-96 50.00 1996-97 75.00 1997-98 50.00 1998-99 60.00 1999-2000 75.00 2000-2001 100.00

482.76

. . .r . . . Budgeted lnves tmnt -Actual h v e s t m n t 1

Actual Amount (Rs.)

19.39 12.96 37.27 24.88 36.63 63.18 17.60 24.29 71.87 85.34 89.35

- Based on Technopark Records

From the above table it has been ascertained that Technopark has spent a total of

Rs.482.76 lakhs as promotional expenses, which is 91.09% ofthe budgeted figure of Rs.530

lakhs. Technopark had been able to spend more than 90% of the budgeted figure.

Technopark has been reasonable in fixing the budgeted figures except in the year 1996-97,

in which year it could spent only Rs. 17.60 lakhs as compared to the budgeted figure of Rs.

75.00 lakhs i e . only 23.46% of the budgeted figure. In the years 1993-94, 1994-95, 1995-

96 and in 1998-99 it could spend more than that of the budgeted figures. The amount spent

in1998-99is much ahead to the amount in the two preceding years.

The promotional expenses met by the Park enabled it to attract more and more

entrepreneurs into the Park. Now, a new company starts every three weeks, on an average,

and most of the existing companies are expanding and diversifying their activities. It is a

green signal for prospective entrepreneurs to enter in to the Park for starting their companies.

(111) Analysis of Other Expenses

In addition to the analysis of investment in land and land development, building,

technical and support infrastructure, library and information bureau and promotional

expenses, the analysis of (a) travelling expenses, (b) salary and staff benefits and (c)

overheatis are also inebitable.

(a) Travelling Expenses

The following table shows the budgeted and actual expenses on travelling during the

period under study.

Table 4.15 Budeeted and Actual expenses on ~ r a v e i i n e (Rs. in Lakhs)

( Year 1 Budgeted Amount I Actual Amount I Cumulative I


1991-92 15.00 1992-93 14.60 1993.94 5.00 1994.95 8.00 1995-911 15.00 1996-9 7 20.00 1997.98 25.00 1998-90 30.00 1999-2000 25.00

25.00

202.60

3.16 2.4 3.50 4.84 6.13

11.13 9.40

10.25 8.53 4.85 4.77

68.96

Actuals . 3.16 5.56 9.06

13.90 20.03 31.16 40.56 50.81 59.34 64.19 68.96

Figure 4.5 Budgeted and Actual expenses on Travelling

"1 - - -

---__________1__1

Yea

From the above table, it is ascertained that the total actual travelling expenses of Rs.

68.96 is only 34.04% of the budgeted figure of Rs. 202.60 lakhs. Technopark has spent the

highest amount of travelling expenses in the year 1995-96 i.e.Rs. 11.13 Lakhs followed by

Rs.10.25 lakhs in 1997-98. The actual expenses on travelling have been much below the

budgeted tigures in all the years under study except in 1993-94, in which year the excess

budget IS only Rs.0.16 lakhs. Hence the budgeted figures should be reasonable.

(b) Salary and Staff benefits

The following table shows the budgeted and actual expenses of salary and staff

benefit5 in Technopark for the period 1990-91 to 2000-01.

I t is ascertained that Technopark has spent a total of Rs. 138.76 lakhs as salary and

staff benefits. It has been steadily increasing in all the years under study with the exception

of 1997-98 in which year; the amount has declined by 0.25 lakhs. The actual expenses in

1992-93 i.e. Rs. 7.15lakhs was slightly higher than the budgeted figure of Rs.7.10 l abs .

In all the other years the actual expenses are much below the budgeted figures. The total

expenses of R s 138.76 Lakhs are only 53.35% of the budgeted figure of Rs.260.10 lakhs.

The budgeted figures Should be reasonable.

Table 4.16 Salary and Staff Benefits (Rs. in Lakhs)


Figure 4.6 Salary and Staff Benefits

Cumulative Actuals

1.39 6.44

13.59 22.95 34.40

48.97 64.46 79.70

96.29 115.60 138.76

45 ; .

4 0 1 L.. . .. .:i. - I 35 .. 301 . . . . . . 4

= 26

3 15

5

0 --

Actual Amount

1.39 5.05 7.15 9.36

11.45

14.57 15.49

15.24 16.59 19.38 23.09

138.76

Year

1990-9 1

199 1-92 1992-91 1993-94 1994-95 1995-96 1996-97 1997-98

1998-99 1999-2000 2000-200 1

Total

1990- 1991- 1992- 1993- 1994- 1995- 1998- 1997- 1998- 1999- 2000- 91 92 93 94 95 96 97 98 99 2000 01

Year

Budgeted Amount

20.00 7.10

15.00 18.00 25.00 40.00

35.00 40.00

30.00 30.00

260.10

Executives in TECHNOPARK

'The fol low~ng table shows the number of executives who are working in

TECHNOPARK for the penod 1990-91 to 2000 - 01

From the above table, it is clear that in the initial year, 1990-91, the society had 4

executives in total. Subsequently the number has doubled in 1991-92 and became 3 times

in 1994-95 and in 2000-0 1 it came to 14 in total and all of them are regular officials of the

park. All other employees who are working in the organization are appointed on contract

basis.

(IV). Overheads

Table 4.17 Number of Executives working in TECHNOPARK Total

4 8 8 9 12 12 12 12 12 13 14

The following table shows the budgeted and actual expenses on overheads of

Technopark for the years 1990-9 1 to 2000-01.

Table 4.18 Budgeted and Actual Overheads (Rs. in Lakhs)

Source . Primary Data

Senlor Executives

1 1 1 1 I 1 1 1 1 1 1

Year

1990-9 1 199 1-92 1992-93 1993-94 1994-95 1995-9f1 1996-9' 1997-98 1998-99 1999-2000 2000-0 1

Year

1990-9 1

1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-200 1

Total

Execut~ves

3 7 7 8 1 1 1 1 11 I I 1 I 12 13

Based on TECHNOPARK Annual Reports

Budgeted Amount

25.00 28.50 15.00 30.00 50.00 50.00 75.00 80.00

120.00 120.00

593.50

Actual Amount

8.27 9.88

16.98 21.44 26.70 36.58 52.13 75.48 71.67 97.7 1

127.98

544.82

Cumulative Actuals

8.27 18.15 35.13 56.57 83.27 19.85

171.98 247.46 319.13 416.84 544.82

From the above table it is ascertained that TECHNOPARK has spent a total amount

of Rs.544.82 lakhs (i.e. 91.80%)out ofthe budgeted figure of Rs.593.50 l a b s as overheads.

The budgeted figures are seemed to be reasonable. It has spent above the budgeted figures

in the years 1993-94, 1996-97,1997-98 and 2000-01. In all the remaining years under

study, the actual expenses are much below the budgeted figures. The actual overheads

have been steadily increasing in all the years under study with the exception of 1998-99 in

which year the overhead has been less byRs.3.81 lakhs as compared to the just previous

year. The budgeted overheads also show a steady increase in all the years under study

except iii 1996-97 and in 2000-01, in those years the budgeted figures conform to the

budgeted figures of the just previous years. Both the budgeted and actual overheads show

an upward diagonal .trend.

The amount spent on various items of expenditure, whether it is capital or revenue is

mainly out of the grants received from the Govemment from year to year based on the

requirements projected by the Park.

V. Capital Structure o f Technopark

The Capital Structure of Technopark from the year of its inception is given below:

1990-91 :

11.1 the initial year of activity TECHNOPARK has received Rs. 1.5 crores from

Government of Kerala as Grant-in-aid. With this grant- in-aid, the park authorities made

assets creation to the extent of Rs. 1,32,95,883.78 of which Fixed Assets stood at

Rs.53,75,283.21 ie.35.84%of'cap1tal invested.

The Government grant during the year is amounted to Rs. 1001akhs. The cumulative

Grant-in-aid is 2.5 crores, with Balance Sheet total of Rs. 1,95,98,137.20 of which the

fixed assets is equal to Rs. 1,24,34,949.84 i.e. 49.74%of capital invested.

The Grant from Govemment during the year1992-93 is amounted to Rs. 10.70 crores.

The cumulative (jranl- in-aid is Rs. 13.2 crores; with Balance Sheet total of

Rs.12,39,72,887.20 ofwhichthe fixedassetsisamountedtoRs. 3,39,11,357.93 i.e. 25.69%

of capital invested.

The Grant-~n-Aid from the Government during this financial year is amounted to

Rs. 12.40 crores. The cumulative Grant-maid is 25.60 crores, but the capital fund stood at

the Balance Sheet on31.03.1994 is Rs. 25.75 crores, which is inclusive of the Corpus

Fund mob~l~zed by the Park. The fixed asset as on that date is Rs. 7,33,34,121.43 and the

Balance Sheet total 1s Ks.27, 85,00,000. Government of Kerala has extended a loan to the

extent of Ks. 2 IOcrores also dunng the same fiscal year. Thus, the capltal structure as on

3 1.03 L99.1 ib ds belob

Corpus Fund Rs. 15, 00,000.00

Grant-~n-Aid (till date) Rs. 25, 60,00,000.00

Government Loan Rs .2. 10.00.000.00

Total Rs. 27, 85,00,000.00

The Grant-in-aid for the current year stood at Rs. 15 crores. The cumulative Grant-

in-aid is Ks. 40.60 crores; the Capital Fund also stood at the very same figure as on

31.03.1995. I'he Balance Sheet total is Rs. 43,94,51,182.00 with Fixed Assets of

Rs.18,96,57,885.45. The capital structure as on the closing day of the fiscal year is as

below:

Cap~tal kund Rs. 40, 60,00,000.00

Corpus Fund Rs. 1,24,5 1,182.00

Government of Kerala Loan Rs. 2.10.00.000.00

rota1 Rs. 43, 94,51,182.00

The Grant-in-aid during the current fiscal year is amounted to Rs. 2 crores. The

cumulatrve Grant-in-aid is Rs.42.60 crores. The Balance Sheet total stood at

Rs.46,45.53,214.50 as on 31.03.1996 with Fixed Assets of Rs.30, 69,30,342.00, which is

inclusive of capital work-in-progress of Rs.21,03,01,382.86. The Capital Structure as on

the above dare is as below:

Capital Fund Rs. 42.60, 00,000.00

Corpus Fund Rs. 1,75,53,214.50

Government of Loan Rs. 2.10.00.000.00

Total Rs. 46,45,53,214.50

The Grant-in-aid during the financial year 1996-97 is amounted to Rs.13 crores.

The cumulative grant-in-aid is Rs.55.60 crores. The Balance Sheet total is

Rs.62,45,48,688.50 with Fixed Assets of Rs. 5 1,27,47,487,08,which is inclusive ofcapital-

Work-in-Progress of Rs.3 1,44,88,222.49. The Capital Structure as on 3 1.03.97is as below:

Capital Fund Rs. Rs.55, 60,00,000.00


Government Loan Rs. 2.10.00.000.00

Total Rs. 62, 45,48,668.50

The Grant-in-a~d received during the year 1997-98 is Rs.6.60 crores. The

Cumulative Capital Fund as on 3 1.03.1998 is RS.62.20 Crores. The Balance Sheet Total

as on the above date is Ks.70, 24,11,077.50 with Fixed Assets of Rs.62,64,86,207.41

that is inclusive of Capital-work-in-progress of Rs. 37,88,81,123.83. The Capital Structure

as on the date of Balance Sheet is as below:

Capital Fund Rs. 62, 20,00,000.00

Corpus Fund Rs. 5, 94,11,077.50

Government Loan Rs. .2.10,00.000.00

'I otal Rs. Rs.70, 24,11,077.50

The grant-in-aid received during the financial year 1998-99 from the Government

of Kerala is amounted to Rs. 7 crores. The cumulative capital fund of Technopark as on

31.03.99 is Rs.69.20 Crores. Government of Kerala Loan received during the financial

year is Rs.1,32,39,946.00 The Balance Sheet Total is Rs. 79,33,39,660.50, with Fixed

Assets of Rs.64,30,60,508.81 which is inclusive of Capital work-in-progress of

Rs.17,66,14,715.48

The Capital Strucrure as on 3 1.03.99 is as below:

Cap~tal Fund Rs. 69, 20,00,000.00

Corpus Fund Rs. 6, 70,99,714.50

Government Loan Rs. 3.42.39.946.00

Total Rs. 79, 33,39,660.50

1999-00

The Grant-~n-Aid received during the current fiscal year is Rs.5 crores. The

cumulative capital fund as on 3 1.03.2000 is Rs.74.20 crores. Government Loan received

during the current financial year is Rs.50,82,074.00 The Balance Sheet total as on 3 1.03.00

is Rs.85,5 1.7 1,515.50 with Fixed Assets ofRs. 64,79,27,185.31 which is inclusive ofthe

capital work-~n- progress of Rs. 16,30,21,640.13

The Capital Strucrure as on 3 1.03.2000 is as below:

Capital Fund Rs. 74, 20,00,000.00

Corpus Fund Rs. 7,38,49,495.50 '

Government of Kerala Loan Rs. 3. 93.22.020.00

'I'otal Rs 85, 51,71,515.50

2000-01

The Grant-~n-a~d received during the current financial year from the Government of

Kerala is amounted to Rs.4.50 crores. The cumulative Capital Fund as on 31.03.2001 is

Rs. 78.70 crores. Government of Kerala Loan received during the financial year ended on

31.03.2001 is Ks 59,58,419.00 The Balance Sheet total is Rs. 91,83,90,385.74 with Fixed

Assets of Ks.50,61,38,905.09 and Capital-work-in-progress of Rs. 21,19,92,566.46. The

total of F~xed Assets is Rs.71,81,3 1,47 1.55.

The Capital Structure as on 3 1.03.2001 is as below:

Capital Fund Rs. 78, 70,00,000.00


Government of Kerala Loan Rs. 4.52.80.439.0Q

Total Rs 91, 83,90,385.74

The following table shows the Capital structure of TECHNOPARK for the

period 1990-91 to 2000 - 01 in a condensed form.

Table 4.19 Capital Structure of TECHNOPARK for the period 1990-91 to 2000-01 (Rs)


Year

1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-9s 1998-99 1999-00 2000-01

The following figure represents the component bar diagram of Capital structure of

TECHOPARK for the period 1990-91 to 2000 - 01

- Cumulative Capital Fund

1,50,00,000.00 2,50,00,000.00 13,20,00,000.00 25,60,00,000.00 40,60,00,000.00 42,60,00,000.00 55,60,00,000.00 62,20,00,000.00 69,20,00,000.00 74,20,00,000.00 78,70,00,000.00

Cumulative Corpus Fund

-

15,00,000.00 1,24,51,182.00 1,75,53,214.50 4,75,48,668.50 5,94,11,077.50 6,70,99,714.50 7,38,49,495.50 8,61,09,946.74

Cumulative GoK Loan (Includive of Interest)

2,10,00,000.00 2,10,00,000.00 2,10,00,000.00 2,10,00,000.00 2,10,00,000.00 3,42,39,946.00 3,93,22,020.00 4,52,80,439.00

Grand Total

1,50,00,000.00 2,50,00,000.00 13,20,00,000.00 27,85,00,000.00 43,94,51,182.00 46,45,53,214.50 62,45,48668.50 70,24,11,077.50 79,33,39,660.50 85,51,71,515.50 91,83,90,345.74

Figure 4.7 Component Bar diagram of Capital Structure of TECHNOPARK

Years

b E & l a t i v e Capital Fund SCurmlative Corpus fund mCumrlatie GoK Loan /

The following figure represents the Pie-diagram of Capital Structure of

TECHNOPARK as on 3 1 --03-200 1

Figure 4.8 Pie Diagram of Capital Structure of TECHNOPARK as on 31-03-2001

- - . - ocurnulat$ve Capital Fund ICurnulatwe Corous fund mCurnuiative GoK Loan /

Contrast between Budgeted and Actual figures of Government Grants

In the table below the budgeted and actual figures of Government Grant has been

given.

Table 4.20 Budgeted and Actual Government Grant (Rs. in Lakhs)

Year Budgeted Amount Actual Amount Cumulative rang


Figure 4.9 Budgeted and Actual Government Grant

Year

261

It has been found that since 1991 -92 the Park has budgeted an amount of Rs. 16,977

l a b s as its requirements from the Government, whereas, it has received a total sum of

Rs.8,080.00 lakhs as Government Grant i.e.47.59% only. In the year of inception

TECHNOPAKK has received Rs. 150.00 lakhs as Government Grant to start with the

preliminary affairs of the Park. In the year1993-94 the Government Grant has been much

ahead of the budgeted figures i.e.Rs. 1,450.00 lakhs as compared to Rs.1,150.00 lakhs. In

the year 1994-95 both the budgeted figures and Government Grant has been equated. In

all the remain~ng years the Government Grant has been received much below the budgeted

figures. Hence, in order to find source for the completion of the newly built "Bhavani",

Technopark has resorted to borrow from Central Bank of India Rs.20.00 Crores at 12.75%

interest, in addition to the Corpus Fund of the Park.

Technopark can recover this loan interest by leasing the built up modules at Rs. 19.00

per sq.ft in the case of 'Bhavani 'which is totally air conditioned centrally and in case of

'Gayatrl' at Rs. 161-per sq.ft. as compared to the lease rent of 'NILA' building which has

been fully leased out at Rs. 12 per sq.ft. for commercial purposes and at Rs. 16 per sq.ft.

for HSBC (Hongkong Shanghai Banking Corporation) and for service institutions like

Amritha, Rangoli, etc. at Rs. 41- (Source : TECHNOPARK)

VI. Corpus Fund

Corpus Fdnd appears in the Balance Sheet since the financial year 1994-95. The

Corpus Fund is made up of interest rec~ived from banks, telephone down payment, land

lease down payment, Pamba Periyar module down payment, Nila module payment,

electricity service connection, water service connection, telephone service connection

charges, covered park area license, library membership fee, etc.

Corpus Fund is reduced when there is refund of the down payment, refund of excess

service charges. etc. if any. As the built-up modules/developed land were leased out to

entrepreneurs slnce 1994-95, the Corpus Fund has been steadily increasing every year.

This has been clear from the Table given below:

The following figure represents the Corpus fund and Capital invested and the

262

I'able 4.21 Corpus Fund of TECHNOPARK

pro port lor^ of Cap~tal Fund.

Figure 4.10 Corpus Fund, Capital Invested and Proportion of Corpus Fund

Year 7 Corpus h n d (Rs)

199,1-95 1995-96 1996-97 1997-96 1998-99 1999-2000 2000-01

Year


' Cap~tal Invested (Rs)

42,70,00,000.00

44,70,00,000.00

57,70,00,000.00 64,30,00,000.00

71,30,00,000.00

76,30,00,000.00

80,80,00,000.00

1994-95

1995-96 1996-97

1997-98

1998-99 1999-00

2000-01

-

rmcorpus Fund n c a p ~ t a l Invested +Proportton / L - - --

Pmport~on of Corpus

Fund to Capital

Invested

2.92%

3.93% 8.24% 9.24%

9.4 1 %

9.68%

10.66%

1,24,5 1,182.00

1,75,53,214.50 4,75,48,668.50 5,94,1 1,077.50

6,70,99,7 14.50

7,38,49,195.50

8,6 1,09,946.74

When there is deticient budget allocation, the Park authorities resorted to spend out

of the Corpus Fund. Hence the replen~shment of the depleted Corpus Fund has been

decided at the PIB (Prqject Implementation Board) meeting and has already been included

in the budget estimates for the years 2000-01 and 2001-02.

Since 1994-95, the Corpus Fund has been steadily increasing. The proportion of

Corpus Fund to Capital Invested (Grant-in-aid) also has been steadily increasing. It stands

at 10.66% in 2000-01. This may be treated as contribution to State Exchequer, though this

fund has not been remitted in the Treasury on Government Account. This Fund is maintained

for the purpose of further investment in the Park.

VII. Fixed Assets and Capital Employed

Fixed Assets created and Capital Employed in Technopark since 1990-91 has been

given in the table below:

I Year


Figure 4.1 1 Fixed Assets, Capital Employed and Proportion of Fixed Assets

Table 4.22 Fixed Assets and Capital Employed.

Proportion of Fixed

Assets to Capital

Employed

35.84% 49.74%

Fixed .Assets (Rs.)

(Curnulat~ve)

53,75:283.21

1,24,34.,949.84

Capital Employed (Rs.)

1,50,00,000.00 2,50,00,000.00

The above table reveals that the Flxed Assets created in the Park as well as Capital

employed in 'Technopark rs steadily increasing since its inception till 3 1" March 2001 .But

the proportlon oSFixed Assets to Capital Employed is merely 26%in 1992-93 and 1993-

94; in other years it is more than 113 of the Capital Employed. In 1996-97 it stands at the

peak figure of 89%, then it has slightly declined in 1997-98, 1998-99, 1999-00 and in

2000-01. The proportion is standing at 78% in 2000-01; this level can be treated as

favourable for the Organ~sation.

VIII. Revenue and Government Grant

The Revenue of Technopark in various years and its proportion based on Government

grant- in- a ~ d is as g~ven in the Table below:


Table 4.23 Revenue, Government Grant and the Proportion of Revenue

The absolute gross income of the Society has been steadily increasing during the

period of study with the exception of 1994-95,1995-96,1996-97 and 1997-98. It has been

Proportion of

to Grant- in-aid

0.18%

1.98%

1.97%

2.97%

0.52%

0.75%

0.94%

1.13%

1.39%

2.24%

5.98% d

Year

Revenue

1990-9 1 1991-92

1992-93 1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-0 1

increased to Rs.4,83,03,427.95 in 2000-01, which is 5.98% ofthe cumulative grant-in-aid

from the Government of Kerala; the figure is too meagre as far as the Society is concerned,

Income (Rs.)

27,014.57

4,94.795.92

26,04.,43 1.75

82,16,,236.17

22,09,927.02

33,68,380.75

54,78,208.28

72,79,623.65

98,82,948.87

1,70,77,263.28

4,83,03,427.95 -

but it stands at a favourable position as compared to the previous years. The following

Cumulative Government

Grant (Rs,)

1,50,00,000.00

2,50,00,000.00

13,20,00,000.00

27,70,00,000.00

42,70,00,000.00

44,70,00,000.00

57,70,00,000.00

64,30,00,000.00

7 1,30,00,000.00

76,30,00,000.00

60,80,00,000.00

figure depicts a clear picture as to the revenue, government grant and the proportion of

revenue to gcwemment grants.

Figure 4.12 Revenue, Government Grant and Proportion of Revenue

1990- 1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 91 9" 93 94 95 96 97 98 99 2000 01

Year

R e v e n u e Governmnt Grant t Roportlon

4.23 SCHEME 2

In order t o measure rhe financial performance effectiveness of TECHNOPARK, the

following scheme also has been prepared and applied .

( Financial Performance Effectivenss 1

v) Capital Structure and Reutrn on Investment

I I

and Allowances I

i) Tenns on Procurement of Funds I-

i) Terms on Procurement of Funds for Investment

TEC'HOPARK is a society formed by the Government of Kerala for providing IT

infrastructure to IT companies in India and abroad. Its main source of funds is the Grants

I - ! iv) Observance of long-term solvenc

266

received from the Government of Kerala from year to year. It is the Capital Fund of

TECHNOPARK. The terns on procurement of funds are fixed by the Governmnet itself.

The officials at the Park are bound to observe the conditions put forward by the Government

while making investment in the Park.

The Park is bound to prepare budget proposals and submit to the Government for

setting apart such an amount for running the affairs of the Park. The Government with in

its limitations and at the same time realising the requirements and emergency of funds in

the Park make allotments. Thus the terms on procurement of funds from outside financial

institut~ons are fixed by the Board of Soceity from time to time in consultation with the

creditors concerned. T'ECHNOP.4RK can mobilise loan also from Government of Kerala

as and u hen needed.

ii) Usage of Funds

The funds mobilised by TECHNOPARK has been applied for varied purposes as

listed below:.

i) Land and Land Development including making of roads.

ii) Construction of Building including Built-up modules

iiii Investment in Technical Infrastructure

I \ ) Investment in Library and Information Bureau

vj Provision of unintempted Power Supply.

V L ) Provision of unintempted Water Supply

vli j Provision of well-knit Communication System.

111 a d d ~ t ~ o n to the above, Technopark also meets recurring expenditure of vaned

types as l~sted beiou -

1) Promotional expenses

ii) Travelling expenses

iii) Salary and Staff benefits

iv) Overheads etc

'The usage of funds 1s aimed at the organisation of hassle free campus for locating IT

industr~es for rnak~ng Kerala a su~table and investor friendly State for IT Investments in

the Country

iii) Observance of Short-term Solvency

The short-term solvency can be ascertained by finding out Current Ratio and Absolute

Liquidity Ratlo. The following table reveals the Current Ratio and Absolute Liquidity

Ratio of l'echnopark fhr the period 1990-91 to 2000-01.

Table : 4.24 Current Ratio and Absolute Liquidity Ratio

C.R. I ALR


From the above table, it is ascertained that TECHNOPARK has maintained the

Current Ratio beyond the norm 2: 1, in all the years under study. The highest ratio 222.14: 1

has been found in the :year 1991-'92 followed by 187.96:l in 1994-95. The lowest ratio has

been found in 2000-01 (2.21:l) followed by 3.15:l in 1997-98.

The absolute llqurdty ratio in all the years under study are also beyond the norm.

0.5:l or 1.2. The highest ratio has been found in 1991-92 (219.24:l) followed by 164.1 1:l

in 1994-95lust as m tile case of Current Ratio. The lowest ratio has been found in 1997-98

(1.26: 1) and the next lowest 1.36: 1 in 2000-01.

Thus there is no question of short term solvency, the short term assets far exceeded

the short-term liab~lities. Similarly the absolute liquid assets also far exceeded the current

liabilities.

iv) Long-Term Solvetrcy

Long-term solven~y of Technopark has been ascertained by calculating Debt-Equity

Ratio: The following table reveals the debt equity ratio of Technopark for the period 1990-91

I Year

Table : 4.25 Debt-Equity Ratio

Ratio (i.e. Long Term Debts + Shareholder's Fund) I


From the table above, it is ascertained that the Debt-Equity Ratio has been the highest

in 1993-94 (0.082: 1). [t has slightly ~mproved consistently and reached at 0.031:l in 1997-

98; since then it has slightly enhanced and reached at 0.052: 1 in 2000-01

v) Rare of Salary and Allowances of Officers/Employees

The day to day act~vities of the society are regulated by the Chief Executive Officer,

who is assisted by a team of officers responsible for different functional areas. The rate of

salary and allowances to officers are the most competitive. They try to reap the advantages

of the "sun r~se" sector hy all mean>

In l ~ n e with the philosophy of a slim organisation, contract services are used wherever

possible. These include security, house keeping, gardening, vehicle hire, etc. So as to

avoid a long-term commitment, for direct employment also people are taken either on

deputation or on contract. The service charges to the contract labourers are also fair in

their angle

vi) Capital Structure and Return on Investment

The capital structure of TECHNOPARK consists of Capital Fund, Corpus Fund and

loan from Government of Kerala. Though it is a Society, the Society should earn some

excess of Income over expenditure in order to be self sufficient. The following table shows

capital employed and the excess of expenditure over income (Deficit) for the period 1990-

91 to 2000-01.

Table : 4.26 Capital Employed, Deficit and Cumulative Deficit/ Pre-operative

Expenses

Based on TECHNOPARK Records

Izroni the tablt: above, it is ascertained that the capital employed in TECHNOPARK

has been consistently increasing in all the years under study. It has enhanced from Rs.

118,06,160.40 in 1990-91 to Rs. 80,63,59,208.56 in 2000-01.

Year

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96 1996-97

1997-98

1998-99 1999-2000

2000-2001

Deficit (Rs.)

31,93,839.60

25,34,270.20

38,85,753.00

(-) 21,64,505.37

58,81,310.11 1,13,61,270.06

1,44,50,957.77

1,49,60,892.75

4,35,17,799.13

2,88,14,047.12

20,17,067.10

Capital Employed

1,18,06,160.40

1,95,65,890.20

12,2!3,86,137.20

27,10,50,642.57

42.10,22,210.46

42.46,98,804.59

59.86.02,254.67 66,14.70,279.92

70,92.49,299.8 1

74,28.18,428.67

80.63.59.208.56

Proportion

of Deficit

27.05%

12.95%

3.17%

-0.80%

1.40%

2.68%

2.41% 2.26%

6.14% 3.88%

0.25%

Cumulative

Deficit/ Pre-

operative Exps

3 1,93,839.60

57,28,109.80

96,13,862.80

74,49,357.43

184,28,971.54 388,54,409.91

259,46,413.83

409,40,797.58

840,90,360.71 1123,53,086.83

1120,31.177.18

The Deficit has been widely fluctuating in all the years under study except in 1993-

94, in that year, it has earned a surplus of Rs. 21.64,505.57. The highest deficit has been

found in 1997-98 (Rs. 4,35,17,799.13) followed by Rs. 2,88,14,047.12 in 1999-2000. In

the year 2000-01 the deficit has been the least i.e. Rs. 20,17,067.10. It is expected that in

the ensuing years the deficit may be turned into surplus.

The decrease in cumulative deficit in 1993-94 is due to the adjustment of excess of

income over expenditure of the year. The cumulative deficit in 1995-96 is inclusive of

excess of expenditure over income of the year. The cumulative deficit of 1996-97 represents

the excess of expenditure over income only. The decrease in cumulative deficit in 2000-

01 is due to the excess of credit of prior period adjustments as compared to thte just

pervious year. The cumulative deficit for the period 1990-91 to 1994-95 is treated as pre-

operative expenses.

4.24 LEVEL OF SATISFACTION OF ENTREPRENEURS-TECHNOPARK

I) Operational Level Satisfaction

For measuring the operational level satisfaction 10 parameters have been selected,

observed and analysed. 'The result of the study is as per the table below,

Table : 4.27 Operational Level Satisfaction

Source : Primary Data.

Parameters.

1

2

3

4 5

6 7

8 9

I0

Total I

Fully

20

16

16

19 11 23

22 2 1 20

19

187

Not-fully

10

14

13

11 10

5

7

8

8

8

94

Partially

1

1

2 1 8

3 1

2

1 -

20

Minimum

-

-

- -

2 -

1 -

2

4

9

Total

3 1

3 1

31

3 1 3 1 3 1

3 1

3 1

3 1 3 1

310

1 Adherence to Project time schedule

Regarding the adherence to project time schedule, 2013 1 ie (64.52%) enterpreneurs

are fully satisfied; 10131 (i.e 32.26%) entrepreneurs are not fully satisfied and only one

entrepreneur is partially satisfied. No one is having the minimum level of satisfaction.

2. Adherence to Project cost-estimats.

Regarding the adherence to project cost estimates 1613 1 Enterpreneurs (51.61%)

are fully satisfied, 1413 1 (i.e. 45.16%) enterpreneurs are not fully satisfied and only one

enterpreneur is part~ally satisfied.

3. Availability of Infrastructure facilities

Regardidng the availabil~ty of infrastructure facilities , 16131 (i.e. 51.61%)

Entreprenurs are fully satisfied 13/31 (i.e. 41.94%) entrepreneurs are not fully satisfied

and 313 1 (i e. 6.45%) entrepreneurs are only partially satisfied.

4. Availability of Common facilities

Regarding the availab~lity of common facilities in the campus, 1913 1 entrepreneurs

(i.e. 61.29% are fully sat~sfied, 11/31 entrepreneurs (i.e. 35.48%) are not fully satisfied

and only one entrepreneure is part~ally satisfied.

5. Availability of Other facilities

Regarding the availability of other facilities provided in the park, 1113 1 (i.e. 35.48%)

entrepreneurs are fully satisfied, 10i3 1 (i.e. 32.26%) entreprenurs are not fully satisfied,

813 1 (i.e. 25.8 1 %) entrepreneurs ae partially satisfied and 213 1 only (i.e. 6.45%) are having

a minimum level of sat~sfaction.

6 . Availability of Raw-rnaterials/cornponentslinputs

Regarding the level of satisfaction as to the availability of raw-materialslcomponentsl

inputs 2313 1 (1.e. 74.19%) entrepreneurs are fully satisfied, 513 1 (1.e. 16.13%) entrepreneurs

are not-fully sat~sfied and only 313 1 (1.e. 9.68%) entrepreneurs partially satisfied.

7. Availabiliy of Skilled labours

Regarding the availability of skilled labourers in the Technopark Campus, 2213 1

(i.e. 70.97%) entrepreneurs are fully satisfied; 7/31 (i.e. 22.58%) entrepreneurs are not

fully satisfied; and one entrepreneur each, is partially and to the minimum extent, is

satisfied as to this aspect..

8. Establishment of Machinery and Equipment

Regarding the delay in establishing machinery and equipment in the built-up module,

21131 (1.e. 67.74%) entrepreneurs experienced no delay, while 8131 (i.e. 25.81%)

entrepreneurs experienced slight delay and 213 1 entrepreneurs experienced more delay.

9. Adherence to Production Schedule

Regarding the adherence as to the production schedule in the factory, 20131 i.e.

(64.52%) entrepreneurs fully adhered to the production schedule; 8/31 (ie. 25.81%)

entrepreneurs did not fiilly adhere to the production schedule; one entrepreneur partially

adhered to the productio~i schedule and 2131 entreprenurs adhered to the production

schedule only to the miriinlum level.

10. Adherence of Sales schedule1Marketing schedule

Regarding the adherence as to the sales schedulelmarketing schedule, 19/3 1 (i.e.

61.29%) entrepreneurs fully adhered to the saleslmarketing schedule; 813 1 (i.e. 25.81%)

entrepreneurs did not h l ly adhere to the sales/marketing schedule and 413 1 entrepreneurs

adhered to the salestmarketing schedule to the minimum extent only.

Composite operational level satisfaction

Tak~ng the entire parameters for measuring the operational performance, majority

of the entrepreneurs i.e. 1871310 (60.32%) entrepreneurs are fully satisfied as to their

operational performance 94/310 (i.e. 30.32%) entrepreneurs are not fully satisfied as to

the operational level performance, 201310 (i.e. 6.46%) are partially satisfied as to the

operational performance and 9/31 (i.e. 2.90%) entrepreneurs are satisfied only to aminimum

level.

11) Managerial Level Satisfaction

Inordcr lo measure the managersal level satisfaction, 10 parameters are identified

Source : Primary Data.

1. Capacity Utilisation

and analysed. The result reveals that majority of the entrepreneurs are fully satisfied as to

the managerial level satisfaction. The ~ndividual score has been given in the table below:-

Table : 4.28 Managerial Level Satisfaction

26/31 0.e. 81.87%) entrepreneurs are utilsing 80%-100% of their capacity, 3131

(i.e. 9 .68%) entrepreneurs are not fully utilising their existing capacity and 2/31

entrepreneurs are very poor in utils~ng the capacity.

2. Availability of Managerial personnel

Total

3 1

3 1

3 1

3 1

3 1

3 1

3 1

3 1

3 1

3 1

310

Ava~lability of Managerial personnel is an essential requirement for the success of

any organisation. Here 2513 1 (i.e. 80.65%) entrepreneurs enjoy the benefits of ready

availability otmanagenal personnel. 513 1 (i.e. 16.13%) entrepreneurs opine that managerial

personnel are not readily available for them. 1131 entrepreneurs finds scarcity as to the

availabil~ty otqual~fied managerial personnel.

Minimum

2 -

- -

- -

1 2 -

-

5

3. Attitude of Executives to the organisation

Partially

.-

1 -

1 -

13 -

3 -

2

20

Parameters

I

:)

4

5 (1

'7

8

'4

10

7 otal

17i3 1 (1.e. 54.84%) entrepreneurs enjoy the most favourable attitude of executives

Fully

26

2 5

1'

13

6

IS 24

20

3 0

2 3

199

'Not-fully

3

5

14

17

25

3

6

6

I

6

86

for the efficiency of the organisation and the remaining 14131 (i.e. 45.16%) entrepreneurs

feel the favourable attitude of executives for the efficient managerial performance of their

organisatiorl.

4. Attitude of EmployeeslTrade Unions to the Organisation

1313 1 (i.e. 41.94%) entrepreneurs feel the most favourable attitude of employees

and their trade unions for the smooth running of the organisation. 1713 1 (i.e. 54.84%)

entrepreneurs le majority of entrepreneurs enjoy the favourable attitude of employees and

trade unions for the effective running of the organisation. Only 113 1 entrepreneurs is

indifferent as t c ~ the attitude of employeees and trade unions.

5. Attitude of Park AuthoritiesIGovernment

The atrilude of park authorities and government should be helpful for the

entrepreneurs. 'Their grievances shall be immediately cleared by the authorities concerned.

Recently, government itself takes every effon to attract more and more entrepreneurs to

the park and at. the same rime a most favourable helping hand to those who have already

started thelr activities in the park. Only 6131 (i.e. 19.35%) entrepreneurs enjoy the most

favourable attitude of park authoritieslGovemment and the majority of entrepreneurs i.e.

25131 (i.e. 80.65%) are of the opinion that the attitude ofpark authorities and Government

is favourahle for them.

6 . Co-ordination mechanism

Co-ordination is the integration of the efforts of all the personnel is an organisation

for the performance of activities in the various divisions and departments of an organisation.

The ultimate result of an organisation whether it is small, medium or large scale is the

result of the mechanism of the co-ordination prevalent in such an organisation. Here, 151

3 1 (i.e 48.39'>0) entrepreneurs agree that the co-ordination mechanism prevalent in their

organisation 1s very effective. 3131 (i.e. 9.68%) entrepreneurs feel that the co-ordination

mechan~sm 1s not very effective, but it is slightly below the very effective co-ordination

mechanism. The remaining entrepreneurs ie. 1313 1 (i.e. 4 1.93%) opine that the co-ordination

mechanism prevalent in the organisation is effective.

7. Commitment to the park

Commitment of the entrepreneurs to the park is very essential for the proper

functioning of a park. When there is a flop in the commitment of the entrepreneurs, the

park authorities find i t very difficult to cope with such entrepreneurs. The analysis of data

reveals that 2 4 3 1 ( i e . 77.42%) i.e., a lions share of entrepreneurs are fully committed to

the park. 613 1 j1.e. 19.3556) entrepreneurs are not fully committed to the park and 1/31

entrepreneurs is cominilted to the park only at a very low level.

8. Commitment to the Government

The enti-rpreneurs should be committed to the Government in the sense that they

should clear the dues to the government in time. Majority of the entrepreneurs ie. 20131

(i.e. 64.52%) are ofthe opinion that they are fully committed to the Government in remitting

their dues as to the Govemment, 613 1 (i.e 19.35%) entrepreneurs and not fully committed

to the Government; 3 i 3 I (i.e. 9.68%) entrepreneurs are partially committed to the

Government, whereas 2!3 1 entrepreneurs are committed to the Govemment only to a

minimum exten1

9. Committment to the Employees

Employees are the pillars of every organsiation. They create value for the products.

The fortune of an entrepreneur vests with the whole hearted co-operation and effort of

employees who are functioning in an enterprise. They should be fully committed to the

organisat~on ant1 the organlser himself has to be fully committed to the employees. Here

30131 ie (Yt1.77%) of entrepreneurs are fully committed to the employees and 1/31

entrepreneur is committed to the employees not fully but a bit less than that of it.

10. Committment to the Society

An organ~sation exists in a society. The repurcussions of the activities of the society

will be reflected in the organisation too. Thus, the entrepreneur and his organisation has

to be cotnmitted to the society. Here, majority of the entrepreneurs i.e. 23131 (i.e. 74.19%)

are fully coinmitted to the society, 6/31 (i.e. 19.35%) entrepreneurs are committed to the

society, but they are not fully committed and 213 1 entrepreneurs are committed to the

society only partially

Composite Managerial Level Satisfaction:

In analys~ng all the 10 parameters under this head managerial level satisfaction,

majority of the entrepreneurs i.e. 1991310 (64.19%) enterpreneurs i.e. near about 213 of

the entrepreneurs are fully satisfied as to the managerial aspect is concerned, 861310 i.e.

27.74% i.e. more than 114th of the entrepreneurs are not fully satisfied as to the managerial

performance, 2013 10 (i.e. 6.45%) enterpreneurs are partially satisfied as to the managerial

performance and only 51310 (i.e. 1.62%) entrepreneurs are satisfied only at a very low

level.

111) Financial Level Satisfaction

In assessing the financial level satisfaction of the entrepreneurs 7 parameters have

been identified and analysed. The result of analysis of each parameter is shown below.

1. Procurement of Funds for Investment

The procurement of funds for investment is an important parameter in measuring the

financial lebel satisfaction of entrepreneurs. Most of the Technopark firms are of foreign

origin. It is dn added advantage for procurement of finance on easy terms. The investors

are ready to prvide so rnuch of finance required for the effective functioning of their

enterprise in Kerala. The organisers of the enterprise in Technopark try to procure maximum

return out of the funds provided. The following table shows the financial level satisfaction

of entrepreneurs based on various parameters.

Table : 4.29 Financial Level Satisfaction


Not-fully

I 6

8

13 9

15

2 1

Total 115 69

Partially

-

-

1 1

1 6

3

12

Very low

-

5

2 2

8 4 -

2 1

Total

3 1 3 1

3 1

3 1

3 1 3 1 3 1

217

277

25/3 I ( i 2. 80.65%) entrepreneurs functioning in the Techcopark campus procured

funds on easy terms; and as such they are fully satisfied as to this parameter is concerned.

The remaining 5/31 ii.e. 19.35%) entrepreneurs procured funds for investment not on

easy terms but a bit tougher terms. When the terms are not easier, the level of exertion on

the part of entrepreneurs should be comparatively higher, then only the requisite percentage

of return on investment (RoI) can be had.

2. Usage of funds

Usage of funds in the proper direction and in suitable proportion would entail

discrepancies 111 the perfbrmance of activities of an enterprise. The usage of funds as per

strict schedule is highly essential for the financial discipline of any organisation.

2413 1 (i.e. 77.42%) entrepreneurs use their funds strictly as per schedule and enjoys

financial level satisfiiction fully in respect of this aspect. 2131 entrepreneurs apply the

finance not strictly as per schedule and hence their financial level satisfaction is slightly

less than that ol' the entrepreneurs who apply their finance strictly asper schedule. 513 1

(i.e. 16.13%) enterpreneurs apply their finance not as per schedule but based on necessity

only. Hence their financial level satisfaction is very low.

3. Return on lnvestment

Nearly 213 of the entrepreneurs are fully satisfied as to the financial performance by

considering the parameter, return on investment i.e. 20131 (i.e. 64.52%) enterpreneurs are

in receipt of return of investment at the desired level. 813 1 (i.e. 25.81%) entrepreneurs are

not earning return on investment at the desired level but at slightly less than that of it and

hence they are not fully satisfied as to the financial level performance. 1/31 entrepreneur

is at the break even, while 213 1 entrepreneurs are at a level below the break even level.

4. Observing the short-term solvency

Short-term liquidity is ascertained by applying the formula current assets +current

liabilities. The standard for this ratio is 2: 1 . Here, 2013 1 (i.e. 64.52%) entrepreneurs are

observing the short-term solvency and hence they are fully satisfied as to the financial

performance level satisfaction. 8/31 (i.e. 25.81%) entrepreneurs are observing the short

term solvency but not strictly. 113 1 entrepreneur are observing the short term solvency

occas~onally and 213 1 entrepreneurs are not very particular in observing the short-term

solvency

5. Observing the long-term solvency

Long term solvency refers to a firm's ability to meet the long-tenn debts with the

help of long-term assets. A firm which has sufficient credit worthiness may enjoy the

advantages of long-term debt to a certain extent. Only 13/31 (i.e. 41.94%) entrepreneurs

are observtng the long-term solvency strictly, while 9/31 (i.e. 29.03%) entrepreneurs are

not strictly observing the long-term solvency. One entrepreneur observes long-term

solvency inc~dentally, while 813 1 ( ie . 25.8 1 %) entrepreneurs are not very particular in

observing the long-tenn solvency.

6. Availing the incentives of the Government.

Kerala (;ovemmenr has promulgated certain incentives to the entrepreneurs so as to

boost up production of the existing entrepreneurs and at the same time to attract prospective

entrepreneurs to Kerala for making their investment in Kerala. For availing the incentives

some little eftbrt on the part of the entrepreneurs is inevitable, the requirements for availing

such incentives must be fulfilled Here, 613 1 ( i t . 19.35%) entrepreneurs are fully availing

the incentives offered by the government, while nearly half of the entrepreneurs i.e. 1513 1

(i.e. 48.39%) are not fully availing the incentives offered by the government. 6131 ( i s .

19.35%) entrepreneurs are availing the incentives partially where as 4/31 (i.e. 12.90%)

are not very Interested in availing the incentives from the government.

7. Rate of salary and allowances to employees

The entrepreneurs should offer competitive rate of salary and allowance to its

employees, so as to get their maximum co-operation and to exploit their maximum potential

for their benefits as well as for the benefit of the employees themselves. The labour turnover

can also be reduced to a certain extent by this. Here only 7131 (i.e. 22.58%) entrepreneurs

provide the most competitive rate of salary and allowances to employees, while 21131

(i.e. 67.74: 0) I e , morethan 213 of the entrepreneurs offer competitive rate of salary and

allowances to employees so as to put their effort consistently for the benefit of the

organisation. 3131 (i.e. 9.68%) entrepreneurs offer salary and allowances in parity with

similar organ~sations so that employees do not feel any frustration in regard to salary and

allowances

Composite financial level satisfaction

By taking all the 7 parameters under study together, it is observed that more than

50% of the entrepreneurs 1.e. 1151217 (i.e. 53%) are fully satisfied as to the financial

performance of the~r concerns and another 3 1.80% i.e. 6912 17 entrepreneurs are not fully

satisfied but a little hit less than that of the above said group. Both these group constitute

more than 80% of the entrepreneurs. 121217 (1.e. 5.53%) entrepreneurs are only partially

satisfied as to the financial performance and the remaining 211217 entrepreneurs (9.67%)

are satisfied only at a very low rate as to their financial performance. They are taking

every effort to improve their financial perfomance.

1V) Composite Level of Satisfaction

The following table reveals the composite level of satisfaction of entrepreneurs by

considering all the parameters under operational, managerial and financial level satisfaction

taken together


Table : 4.30 Composite Level of Satisfaction

S1. No.

1.

2.

Parameters

Operational

Managerial

Fully

187

(60.32%)

199

(64.19%)

Not-fully

94

(30.32%)

86

(27.74%)

Partially

20

(6.46%)

20

(6.46%)

Minimum

9 (2.90%)

5

(1.61%)

Total

310

(100%)

310

(100%)

280

From the above table it is clear that 64.19% entrepreneurs are fully satisfied as to the

managerial performance where as the corresponding percentages are 60.32% in operational

performance and only 53% in financial performance. As regards composite level of

satisfaction 59 86% of entrepreneurs are fully satisfied as to the operational, managerial

and financ~al perfomlance taken together. Similarly, another 29.75% of entrepreneurs are

not fully, but a little bit lesser than that of the first group, satisfied on a composite basis.

The remaining entreprenerus are having only partial and low level of satisfaction as to

their performance.

V) Individual Score of Entrepreneurs in respect of Operational, Managerial and

Financial Performance in Percentage.

The following table gives the lndividual score of entrepreneurs in TECHNOPARK

in their opel-at~cbnal managerial and financial performance.

Table : 4.31 Individual Score of Entrepreneurs

SI.

No. -.

1

2.

3.

4. 5.

6.

7.

8.

9.

10. 11 .

12.

13.

14.

15.

16.

17. 18. 19.

Operational

level satisfact~on

90.00

100.00

h7.50

95.00

95.00

95.00

97.50

75.00

82.50

6t7.50 ;0.00

h5.00

97.50

75.00

40.00

9 5 .OO

97.50 77.50 87.50

Managerial

level satisfacion

Financial

level satisfactio~

Composite

Satisfaction

94.44

96.30

87.04

92.59

97.22

92.59

95.37

75.00

76.85

74.07 75.00

84.26

95.37

75.00 94.44

9 1.67

86.1 1

82.4

87.96

Rank

5.5

2

17

8.5 1

8.5

3.5

27.5

25 30.5 27.5

19

3.5

27.5

5.5 11.5

18 22

16


From the above table it has been ascertianed that 213 1 entrepreneurs have secured

100% in operational level satisfaction, where as 413 1 entrepreneurs have attained 100% in

managerial level satisfaction and none of the enterpreneurs has attained cent percent

financial level satisfaction; there the highest score is 96.43 which has been attained by 3

entrepreneurs at a time,

Whlle assessing the three set of variables together none of the enterpreneurs has

attained 1000/0 level of satisfaction; the highest score is 97.22 and that has been secured by

a single entrepreneur only; the second rank goes to an entrepreneur who has secured 96.3%

score on ;I ccrrnposite basis. But on detailed analysis it has been found that 71% of the

entrepreneurs under study have secured a composite score in between 80% and 100% in

operational, managerial and financ~al level satisfaction, attamed excellent performance

and the remaining 29% of entrepreneurs have been functioning on very good operational,

managerial and financ~al level sat~sfaction.

'Thus the hypothesis that "All the firms working in the Technopark campus

are at very good and excellent operational, managerial and financial level satisfaction"

is accepted.

VI) Mean or Average Performance

The mean or average performance of entrepreneurs in their operational, managerial

and financial level is given below

1) Average Operational Performance

.. x = 87.98% (Refer Appendix 4.1)

Slnce the average of operational performance is higher than 80%, it is presumed that

all the firms are operat~ng on an excellent manner.

2. Average Managerial Performance

Z = 89.1 1%) (Refer Appendix 4.2)

Since the average of managerial performance is higher than 80%, it is presumed that

all the entrepreneurs are functioning on an excellent basis.

3. Average Financial Performance

.. x = 8 1 69Y0 (Refer Appendix 4.3)

Since the average level financial performance is higher than 80% it is presumed

that the entire enterprises are running, on an excellant basis in the TECHNOPARK

campus.

Out of the three averages, the average of managerial performance is the highest,

which stands at 89.1 1 %, followed by operational performance at 87.98% and financial

performance at 8 1.69%, it is concluded that managerial performance level satisfacion is

far more excellent than operational and financial performance level satisfaction.

VII) Level of Satisfaction of Entrepreneurs and their Percentage

Based on the lndiv~dual score of the entrepreneurs in respect of their operational

n~anager~al and financ~al performance and the composite performance of each individual

entrepreneur tile following tables have been prepared.

1. Operational level satisfaction

The following rable reveals the score of the entrepreneurs in operational performance

and their pecentage.

283

Table : 4.32 Operational Performance

Scorz (U/I~) I No. of Entrepreneurs I % of Entrepreneurs


h5-7(1 2

70-75 I 75-80 4

80-85 3

85-90 5 90-95 7

95- 100 9

Total 3 1

Since 77.42% of entrepreneurs have scored in between 80% to 100% in operational

performance l~ons share of entrepreneurs are in excellent performance; 5 entrepreneurs

(16.13%) scored in between 70% to 80%, they too are in very good performance, and the

remaining 0.45%(2/3 I) of entrepreneurs scored only in between 65% to 70%, they are in

good perfo~mance.

6.45) 6.45

3'23 } 16.13 12.90

16.13 77.42

22.58

29.03

100.00

2. Managerial Level Satisfaction

The following table reveals the score ofthe entrepreneurs in managerial performance

and their percentage.

Table : 4.33 Managerial Performance

The r~urnber of entrepreneurs who have scored in between 80% to 100% in managerial

Score (YO)

75-80

80-85

85 Y O

90-95

95 100

T<>tdl

performance are 87.10% they are in excellent performance and the remaining 12.90% of

the entrepreneurs have scored in between 75% to 80% in managerial performance, they

Source Primary Data

- No of Entrepreneurs

4

6

7

4

10

Zf =31

are in very good performance.

% of Entrepreneurs

12.9%) 12.90

19.36%

22.58% 12.90% I 87.10

32.26%

100 00%

3. Financial Level Satisfaction

The tbllowing table reveals the score of the entrepreneurs and their percentage in

respect of financial performance.

Table : 4.34 Financial Performance

Frotn the above table it is ascertained that 61.29% of entrepreneurs (19131) have

secured srore in between 80%-loo%, they are in excellent financial performance, 22.59%

of entrepreneurs (7/3 I) have attained score in between 70% to 80% they are in very good

% of Entrepreneurs

6'45) 6.45 - 9.67) 9.67

3 2 3 ) 22.59 19.36

12.90

19.36 1 61.29 19.36

9.67

100%

-- Score (%)

W.55

55-60 60-65

65-70

70-75

75-80

80-85

85-90

90-95

95.100

Total

performance; 3 entrepreneurs (9.67%) have secured in between 60% to 70% in financial


No. of Entrepreneurs -

2

3

1

6

I

6 6

3

Cf=3 1

performance, they are in good performance and the remaining entrepreneurs 2131 (i.e.

6.45V0) have scored only in between 50% to 60% they are in average performance. None

is found in poor pctrtbrmance.

Composite Score of Level of Satisfaction

I'he following table reveals the composite score of the entrepreneurs in percentage

as *ell ds the~r percentage m each score range.

It 1s ascerta~ned that 70.96% of Entrepreneurs (2213 1) have secured score in between

80% ant1 100%: they are in excellent performance and the remaining entrepreneurs 913 1

(29.04) have scored in between 70% and 80%, they too are in very good performance.

- 1 -- --

I -

-

Tutal Xf=3 1 100.00 I

Table : 4.35 Composite Score of Level of Satisfaction


Hence the hypothesis that, "all the firms working in TECHNOPARK are at

very good and excellent operational, managerial and financial level satisfaction", is

% of Entrepreneurs Score of range (%,I

accepted.

-- No. of Entrepreneurs

4.24.8.1. Correlation between Managerial Level Satisfaction and Financial Level

Satisfaction

In order to prove that there is no considerable difference in respect of the operational,

rnanager~al and iinancial level satisfaction of entrepreneurs, correlation of grouped data

has been ascertatned

Grouped data of Managerial level satisfaction and Financial level satisfaction is

given helo>& -

Table : 4.36 Managerial and Financial Level Satisfaction


1 he correlation coeffictent and the probable error of correlation coefficient of the

above data is glven below.

- - 1:tnanclal level sat~sfactton ('$6)

H e l o ~ 70

'0-80

80-90

90-100 -

Managerial level satisfaction (%)

Below 70 70-80

1

1

I 1

80-90

3

5 2 3

90-100

1

1

7 5

r == 0.29 (Refer Appendix 4.4)

'There is only Ion positive correlat~on between the scores as to the managerial and

financial level satisfaction of the entrepreneurs in Technopark. It means that when the

entrepreneurs are satisfied as to anyone of the parameters in managerial level satisfaction

there is a tendancy present in them to have financial level satisaction too. In other words

the parameters are complementary and supplementary to each other.

S~nce the value of 'r' is less than 6 times to its probable error, the coefficient of

4.24.8.2 Correlation between operational level satisfaction and managerial level

satisfaction

Grouped data of operational level satisafaction and managerial level satisfaction is

given below

Table : 4.37 Operational and Managerial Level Satisfaction

Operational level satisfaction (%)

Satisfaction (YO) Below 70 70-80 80-90 90-100 Total

Below 70

70-80 I 2 1 4

1 2 6 4 13

9O- I UO I 1 12 14

Total - 'I 5 8 16 3 1

Source : Primary Dara.

Thc cunelat~un coefficient and the probable error of correlation coefficient of the

above data I \ given bt:low.

r = 0.63 (Refer Appendix 4.5)

287

'J'hus there is high positive correlation between the percentage score in respect of

the operat~onal level satisfaction and managerial level satisfaction of entrepreneurs. It

means that clperatlonal efficiency would lead to managerial efficiency and vice versa.

As the valuc of 'r' is more than six times to its probable error, the corelation co-

efficient is practically certain, therefore the value of 'r' is significant.

4.24.8.3 Correlation between Operational Level Satisfaction and Financial Level

Satisfaction

The grouped data of operat~onal level satisfaction and financial level satisfaction is

glven be l~~w

Table : 4.38 Operational and Financial Level Satisfactions:

Financial level


Operational Level satisfaction(%)

Below 70 70-80 80-90 90-100

3 2

70-XO 3 2

80-00 1 2 7

90- 100 1 I 7

Total 2 5 8 16

The correlation coefficient and the probable error of correlation coefficient of the

above data is given below.

r = 0.49 (Refer Appendix 4.6)

P.Ei- - 0.0966

Thus, the percentage score of operational level satisfaction is postively correlated to

the percentage of scorc of financial level satisfaction to a higher degree. It means that

operational level efficiency would lead to financial level efficiency to a great extent and

versa.

As the value of 'r' is less than six times to its probable error, the co-efficient of

correlation is not significant.

Total

5 7

10

9

31

On the basis uftlie above correlation analysis, the following points are worth noted

here : I ) The correlation between managerial level and financial level satisfaction among

the entrepreneurs in TECHNOPARK is positive but not significant. ii) the correlation

between operational and managerial level satisfaction among the entreprenerus in

TECHNOPAKK is h~ghly positive and significant and iii) the correlation between

operational and financ~al level satisfaction among the entrepreneurs in TECHNOPARK is

positive but not significant.

For calculating the ANOVA of operational level satisfaction of entrepreneurs,

the table 4.27 has been rearranged in the following manner

Table 4.39 ANOVA Table of Operational Level Satisfaction

RESULT

Level 01

Satisafctlon

Fully

Notfully

Partiall) Mln~~nun~

I Within Groups 1 2269.51 30 1 75.65 1 I I I

--

Parameters of Perfomance

Between Groups

I

20

10

1

0

Total , 31

From the single factor ANOVA table, it is acesertained that the critical values

2.210697 and F value is 0. There is no significant difference between the entrepreneurs in

respect of tht: level of satisfaction with regard to operational performance.

d/'

9

I I I I 1 I

2

16

14

I

0

31

MS

0

39 Total

4

19

I I

1

0

3 1

3

16

13

2

0

3 1

2269.5

F

0

31 31 1

5

1 1

10

8

2

P-value

1

6

23

5

3

0

F crit

2.210697

10

19

8

0

4

3 1

7

22

7

I

1

31

8

21

8

2

0

31

9

20

8

1

2

3 1

4.24.9.2 ANOVA of Managerial Level Satisfaction

hor calculat~ng the ANOVA of Managerial Level Satisfaction of entrepreneurs,

the Table 4 28 has been rearranged in the following manner.

Table 4.40 ANOVA of Managerial Level Satisfaction

L Z G ~ Parameters of Performance

RESULT

Satlsfact~on

Fully

Not full!

Part~ally

Minnnum

Total

( Total 1 3477.5 ( 39 1

Source of hriation

Between Groups

Within Groups

From the above single factor ANOVA Table, it is acertained that the critical value is

2.210697 and F value is 0. Since the F Value is zero, there is no significant difference

9

30

1

0

0

31

I

26

3

U

2

3 1

SS

0

3477.5

between the sntreprerleurs in respect of the level of satisfaction with regard to managerial

10

23

6

2

0

31

3

17

14

0

0

31

2

25

5

1

0

31

performance

d

9

30

4.24.9.3 N O V A of Financial Level Satisfaction

13

17

1

31

For calcut~ng the financial level satisfaction of entrepreneurs, the Table 4.29 has

MS

0

115.9167

bee rearranged in the following manner.

4 5 6

6

25

0 0 0

31

F

0

'Table 4.41 ANOVA of Financial Level Satisfaction

8

20

6

31

15

3

0 1 3 0 3

31

P-value

I

Level of

Satisfaction Full

Not 1-'u11

Partial

Low Total

7

24

6

1 2

31

F crit

2.210697

Parameters of Performance

25

6

0

0

31

1 2

24 2 0

5

31

3

20

8 1

2

3 1

4 20

8

1

2

3 1

5

13

9 I

8

3 1

6 6 15

6

4

3 1

7 7

21

3 0

3 1

--

tram the above Single factor ANOVA table, it is ascertained that the critical value

is 2.572712 and F value is 0. There is no significant difference between the entrepreneurs

in respect of the level of satisfaction with regard to financial performance.

RESULT

On the basis of the above analysis, the hypothesis that, "there is no significant

difference between the level of satisfaction among the entrepreneurs in respect of

their operational, managerial and financial performance", is accepted.

- Sour.cr, of Variation

Between Groups

Withln Groups

4.25 LEVEL OF SATISFACTION O F PARK AUTHORITIES

The level of satisfaction of park authorities can also be studied under three heads.

SS

0

1649.25

1. Operational Performance Effectiveness

In analysing the operational level satisafaction, 5 parameters have been selected.

The parameters art.

df

6

21

I) t,stdbllsh~llent of build~ngs in Technopark campus

ii) Employment generation through the operation of TECHNOPARK

MS

0

78.53571

i i i ) Fulfilment of objectives as Iald down in the Memorandum of Association

I V ) Adherence of time schedule in the matters of constructing buildings, arranging

infrastructure: facilities, common facilities and other facilities; and

F

0

v) 4dherence to cost estimation in the matters of purchasing land, constructing

buildings, arranging infrastructure facilities, common facilities and other facilities.

The result of the analysing 1s as per the following table:

P-value

1

F crit

2.572712

291

'Table : 4.42 Operational Level Satisfaction


Level of satisfaction of officials (Score)

Nole : I. I1 and 111 represent the officials of TECHNOPARK and 1, 2, 3 and 4

represent the level of satisfaction of officials - fully, not fully, paritally and minimum -

with the scores 4, 3, 2 and 1 respect~vely,.

As per the schedule answered by the TECHNOPARK officials, it enjoys 96.67%

operational cffect~veness.

Grand Total

12

12 10

12

12

58(96.67%)

2) Managerial Performance Effectiveness

Total

1 2 3 4

1 2 - - -

4 6 - -

1 2 - - -

1 2 - - -

52 6 - -

1 I1

1 2 3 4 1 2 3 4

- - 4

4 . .~ - 3 .

iv . .

v 4

Total 2 0 - - - 16 3 - -

In analysing the managerial level satisfaction, 5 parameters have been selected. The

five parameters are :

111

1 2 3 4

4 - 4 . . 4 . . - 4 - - - 1 2 - - -

3 4 4

4 4

16 3 - -

i ) Organisation structure for fulf lling the objectives of Technopark as laid down in

the Menlorandum of' Association.

11) Usage of funds especially in various forms of infrastructure.

i i i ) Effectiveness of Reporting System

i v ) Effectiveness Co-ordination Mechansim and

v I Eit'ecti\eness of Control Techniques.

The result of the analysis is as per the table below

Source : Primaty Data

Table : 4.43 Managerial Level Satisfaction


Here also the TECHNOPARK authorities are almost fully sat~sfied as to the

managerla1 performance by securing the score 93.33%.

Grand Tota

10

11

12

12

11

56(93.33%)

3. Financial Performance Effectiveness

Total

1 2 3 4

6 - -

3 - - 12 - - -

12 - - -

8 3 - -

44 12 - -

In analysing the financial performance effectiveness the following parameters are

111

1 2 3 4 1 ' 2 3 4

3 . 3 4

3 8 4 - - -

4 - - -

3 . 4 - - -

12 6 - -

I

1 2 3 4

4 . .

4 . 4 4 . . .

4 -

3

Total 0 .- - - -

considered.

I1

- . - .

4

4 - -

-

12 6 - -

i) Terms on procurement of funds for investment in the park,

ii) IJsage of funds especially in various forms of infrastructure;

111) Ob:,erva~lce of'short-term solvency ratios;

I V ) Observaiice of long-term solvency ratios;

V ) ('ap~tal structure and return on investment; and

v l ) Rate of salary and allowances of officerslemployees.

It is seen that the park authorities are not fully satisfied as to the financial performance,

it has attained only 86.11% score in financial aspects, as per the following table.

Overall Performance

Table : 4.44 Financial Level Satisfaction

The overall perfomlance is calculated as below:.

Parameters

i

The overall effic~ency is 9 1.67%. As the score exceeds 80% it enjoys excellence

in overall performance.


Composite Level of Satisfaction of Park Authorities

1

- 3 . 4 -

4 . 4

4 - - 3 . . - 3 - -

vi - 3 4

Total 12 9 - -

'The following table reveals the composite level of satisfaction of park authorities.

Source : Primaiy Data

11

1 2 . i 4 1 - 7 3 4

4 . 4 - - 3

4 . -

20 3 - -

From the table above, i t is clear that the composite score is 91.67%. As the score

Table : 4.45 Composite Level of Satisfaction of Park Authorities

exceeds 80% the performance level satisfaction of TECHNOPARKis excellent.

111

1 2 3 4

- 3 -

- 3 - - 3 - - - 3 - - - 3 -

- 18 - -

%of Score

Operat~onal Performance 96.67

Managerial Pertbm~ance 93.33

Financ~al fJerfonnance 86.1 1

Total

1 2 3 4

4 6 - -

8 3 - -

8 3 - - 8 3 - .

- 9 - -

4 6 - -

32 30 - -

Source : Primaly Data

Rank of

%of Score

I

2

3

Grand Total

10

11 11 11 9

10

62(86.11%)

Composite Score

91.67

4.26. PROBLEMS O F TECHNOPARK

In orde:r to examine the problems faced by TECHNOPARK certain questions have

been included in the Schedule. These questions were placed under three heads:- i)

Operational Problems, ii) Manager~al Problems and (iii) Financial Problems.

i) Operational Problems

The querles relatlng to operational problems were responded to in the following

manner -

Problems

a) Delay 111 establishing new Parks I Buildings

b) Delay 111 locat~ng projects for the existing land available

Responses

Yes No

1 2

- 3

c) Inordinate delay in arranging infrastructure common facilities

and other fac~lities 1 2

d) Delay i n arranging single w~ndow clearances - 3

e) Actual cost exceeds the envisaged cost 3

At the initial stage of the Park the officers experienced some slight problems from

the local people and by negotiation such problems were solved. At present there are no

specific operational problems in TECHNOPARK as to the establishment of new buildings,

arrangement of infrastructure hcilities, common facilities and other facilities in the Park

Area. The actual time and cost for establishing new buildings and facilities are within the

envisaged tlrne and cost.

ii) Managerial Problems

The queries related to managerla1 problems were responded to by the officials in

TECHNOPARK in the follow~ng ways:

295

Problenls Responses

Yes No

a) Nori- availability of Qualified Personnel - 3

b) Deficiency of' genuine entrepreneurs for allotting land/built-up

modules 1 2

c) Unpleasant attitude of government officials 3

d) Lack of' autonon~y 2 1

Therr 1s no scarcity as to the availability of qualified personnel for appointment at

the Park.

All the entrepreneurs who have started industrial units at the Park are genuine

entrepreneurs, but the slackness of the Information Technology sector disrupted the work

of certaln units and the recovery has led some others to rush in this field.

The government officials are well pleased as to the activities in the Park. They lend

their wholehzarted support for the growth and development of the Park. But the budget

constraints create certain problems in speeding up the perfomance of the Park. It has to

depend on borrowed finds for the completion of new built-up modules.

There 1s lack of autonomy as to the management of the Park is concerned. The Park

is functioning under the Department of Information Technology, and it has to consult all

developniental activities with the Department. At times the park authorities have

experienced some difficulty due to the lack of autonomy in their part. It has to depend on

other Go~erninent Departments for land acquisition and related matters.

iii) Financial Problems:

The quzries related to financial problems were responded to by the officials of

TECHNOPARK in the following manner.

Problems Responses

Yes No

a) Deficient budget allocation by Government 3

b) Delay ~n transmission of funds by the Governments 3 -

c) Delay in remitting the dues of the organisation 3

d) Defic~ent Revenue Receipts 2 1

e) Aburr~dar~t Revenue Expenditure 1 2

The budget allocat~ons are much below the requirements of the Park. If the

government had allocated more fund for the development of the Park the facilities that

would have been arranged in the Park would be much above the present level.

Similarly, the transmission of funds by the Governments has also been delayed on

may occasions. The mobilisation of revenue of the Government is usually at the peak

position at the end ofthe financial year as compared to its earlier part. Hence, the government

transmlsslons are also high at that period.

The delayed transmission from the government would naturally delay the remittances

from the Organisation to the cred~tors. But in Technopark almost all payments are on

advance bas~s

Due ru market fluctuat~ons there were defic~ent revenue receipts. If the dullness in

the market 1s over more scale of built-up modules can be effected on lease basis, this

would result in abundant revenue receipts.

The revenue expenditure of Technopark is strictly within the budgeted figures.

4.27 Projection of Activities of TECHNOPARK

While enqu~red about the projection of activities, the park authorit~es responded to

the querles in the foliow~ng ways:

Queries

a) Strengthening the ex~sting parks by widening the facilities

b) Diversifying the activities of the Organisation

c) Establishment of new Bulldings

d) Obta~nlng IS0 Certification for facilities

e) Attracting new entrepreneurs

f) R e v ~ s ~ o n of Lease Rent

g) Reb~s~on of ternis and conditions of Lease Agreement

Responses Yes No

3

1 2

3 -

3 - 3 -

3 - 2 1

The ficilities in the park area have been widening by the construction of new

297

building:. I t pro~ects to widen the facilities in the existing parks by entering into the Phase

I1 construction works. Whatever it be the space available in the campus, it may be depleted

by leasing out to new entreprenures within a short span of time.

The oYficials of TECHNOPARK do not wish to diversify the activities of the

Organisation. They prefer to have more and more facilities in the campus. They intend the

Park to be a Total S e ~ v ~ c e Provider (TSP), self contained and self governed.

The Park authorit~es have specific plans for the construction ofnew buildings as and

when the existing surplus facilities are almost utilised or leased out. It also prefers to have

private sector partlc~pation (PSP) for the creation of infrastructure facilities.

TECHNOPARK is now an IS0 9002 Certified Organisation. This certification itself

is an added ;attractlori. This cert~fication itself is an added attraction for ensuing the

infrastrucrure, common facilities and other facilities envisaged by it.

In order to industralise Kerala at a faster pace more and more new entrepreneurs

should be attracted. When the present entrepreneurs are satisfied as to the facilities available

and Return 017 Investment as expected by them, new entrepreneurs shall enter into the

industrial sector.

Period~c:al revision of lease rent is highly essential when additional amenities are

provided with the built-up modules. With the increasing dosage of amenities provided to

the entrepreneurs their Investment can be diverted for other purposes will entail saving of

fixed cost to a certam extent, The mild increase in lease rent may be acceptable to the

enreprenerurs.

The Rev~sion ofthe terms and cond~tions ofthe Lease Agreement is also an essential

thing to avold the loop holes in the present agreements. Clear and concise agreement

between the park authorities and the entrepreneures will certainly avoid confusion and

chaos in the terms and conditions embodied in the agreement.

4.28 PROBLEMS OF ENTREPRENEURS - TECHNOPARK

In order to assess the magnitude of problems faced by the entrepreneurs in

TECHNOPARK, the researcher has included certain questions in the schedule. The

prominent questions were placed under three heads: (i) Operational Problems; (ii)

Manager~al I'roblems; and (iii) F~nancial Problems.

i) Operational Problems

The operat~onal problems faced by the entrepreneurs have been studled under the

following 7 heads

i) Actual cost ot'laying projects exceeds envisaged costs;

ii) Actual time in laying projects exceeds evisaged time;

iii) Insufficient [nfrastmcture facilities

iv ) Insufficient Common facilities

v) Insufficie~lt Other faciliies

vi) Locational disadvantages

vii) Production targets could not be fulfilled.

The repondents have answered the above questions properly and the results of such

questions. i.r the agreement or disagreement have been outlined in the following table:-

Table : 4.46 Operational Problems.

Source : Primaly Data

Frorn the above rable it is ascertained that on an average 213rd of the entrepreneurs

Parameters

I J

11) 111)

I V )

V )

VI)

V I I ) -

Total

-

Response

Total

3 1

3 1

3 1

3 1 3 1

3 1

3 1

217

Favourable

13

12

9

1 0 4

12

I0

70

Porportion of

Unfavourable

58.07

61.29

70.97

67.74 87.10

61.29

67.74

67.74

(Average)

Unfavourable

18

19

22

2 1 27

19

2 1

147

are unfavourable as to the operational problems and that means they are very positive as to

the operational performance.

ii) Managerial Problems

In assessing the managerial problems faced by the entrepreneurs the following four

parametel-s hdve been applied :.-

i) Non-availlbility of requisite employees

iii Lnd~fferent att~tude of park authorities

111) Ind~fferent attitude of local people

I \ ) Indifferent att~tude of employeesltrade unlons.

The tbllowing table reveals the response.

Table : 4.47 Managerial Problems


Fro~i-I the above table, it I S ascertained that on an average nearly 88% of the

entrepreneurs are agalnst managerla1 problems. T h ~ s means that they are satisfied as to

the performance at the managerla1 level.

iii) Financial Problems

In order to assess the financ~al problems, the following five parameters have been

selected arid appl~ed for enquiry:-

Proport~on of

Unfavourable

83.87

90.32

83.87

93.55

87.90

(Average)

i) Availability of funds not on easy terms

Total

3 1

3 1

3 1

3 1

124

-- Response

r a i S Favourable Unfavourable

Total

-- -

5

3 5 2

15

26

28

26

29

109

11) kxorbita~u rare of lease premlum

111) Sales Schedule could not be fulfilled

iv) Defic~ent Revenue Rece~pts

v) Abundant Revenue Expend~ture.

The following table reveals the response.

Table : 4.48 Financial Problems


From the above table it is ascertained that 261155 (i.e. 16.77%) respondents were

not responded as to the financial problems; 151155 respondents (9.68%) were favourable

to the financlai problems and the majority of the respondents (73.55%) were unfavourable

as to the financ~al problems, that they were running their organisation in conformity with

the plans.

The above analysis reveals that majority of the entrepreneurs have no problems as

lo their operat~onal, managerial and financial performance in attaining the objectives and

goals of their enterpr~se.

iv) The Problems located

The Entrepreneurs opine that they face the following difficulties:.

i) Non-availability of' stationery and fT related materials:

As Technopark has been locared at the outskirts of the city there is non-availability

301

of stat~onery and 1'1' related mater~als. The entrepreneurs have to go to the city for getting

such stationery and IT materials that are not available at Kazhakkuttam.

The better solution is to have the shopping malls with almost all materials needed

for the industry as well as for social life at the immediate viscinity of the Park. This will

further develop the location into a business centre.

ii) Deficiency of Transportation and Conveyance

The (con\.eyance to and fro Technopark is really a problem. The entrepreneurs can

apply the~r own veh~cles ior conveyance and transportation, where as, the visitors have to

depend more and more on autorikshaw, which is little bit costlier when their arrival to the

Park becomes frequent. Adequate transportation facility may be arranged by the Govt. of

Kerala to overcome this difficulty, circular transport services may be operated through

TECHNOPARK.

Regarding trains, not all the trains are stationed at the Kazhakkutam Railway Station.

As the importance of TECIINOPARK is ever increasing it is of utmost importance to

allow each and every train to be stationed at Kazhakkuttam at least for one minute. The

State Government has to initiate every step necessary for this end.

Regar-d~ng air-l~nes, the importance of Trivandrum International Airport should not

be undenn~ned

iii) Cost Overrun and Time Overrun

Some of the entrepreneurs feel delay in implementing their projects by the locational

disadvantages The local labour which is primarily head load workers unionised under 3

or 4 banners had created some problems during the initial months of the project.

Subsequent1 y a1 the initiative of the Minister for Industries, a Police Aid Post was installed

at the site and this has greatly helped in controlling problems. Still then the problem of

unloading perslsts and the labour unions demand exorbitant rate for loading, unloading

etc.

302

The recent Bill - The Kerala Loading and Unloading (Regulation of Wages and

Restriction of Unlawful Practices Act - for preventing the excessive muscle power of the

loading and unloading workers may be expected to be helpful to the present as well as

prospective entrepreneurs to a certaln extent, the cost overrun and time overrun may be

avoided. 'The work culture of the labourers may be improved as to reduce the cost and

time overrun.

iv) Exorbitant Rate o f l ease Premium

Some entrepreneurs expressed their view that the Park authorities charge exorbitant

rate of lease prem~um as compared to the prevailing rates in Trivandrum; it is at higher

side. Internet connection is not upto the standard as the internet bandwidth is low and the

leased line is expensive. Other facilities available in the Park are standardized; but such

facilities are not affordable to a few. The proper management of the things can reduce the

individual contribution to an affordable level.

v) Market Fluctuation

IT and lTES can not be discribed as an ever flourishing field. It is certainly a

knowledgt. based industry, it is subject to market fluctuations. There has been some

sluggishness by September 1 1,2001, incident. Some of the entrepreneurs did not overcome

the situat~on, while many of them resorted to varied techniques and improved gradually.

Since most u t the un~ts functioning in the TECHNOPARK Campus are Export Oriented

Units, the lntemational sluggishness and the subsequent recovery has been reflected in

the activities of such enterprises. The grabbing of new markets by new and new products

and services and the improved versions of existing products and services will energise the

IT and ITES Industry.

vi) Non-A vailubility of Funds

It is already seen that most ofthe companies working in the TECHNOPARK campus

are NRIs and Foreign Collaboratives in nature. Funds for investment were easily available.

303

But due to econornlc slow down some of the parent companies exercised some control,

this has resulted in deceleration of production for few months. Procedural delays and

formalities in getting loans from financial institutions would also exacerbate the financial

problem.

The (Iioodwill of TECHNOPARK and the enterprises functioning in the Campus

would mitigate the financial problem to a great extent. The facilities available in the

campus should also be enhanced. The idea of the Park authorities is to make a self-

sufficient and self reliant compact campus for all.

vii) Non-avuilability of'Skilled Personnel

Some of the entrepreneurs experienced the non-availability of sufficient number of

skilled personnel for their organisation. They are of the contention that the experienced

cadre a\a~labillty I S low, because people would not shift from Cosmopolitan and

Metropoiltar~ cities to i l l tieveloped and less developed regions.

Availability of skilled personnel locally would allteviate the problem to a certain

extent. The training facilities provided by Tata Consultancy Services (TCS) and IIITM-

K (Indian institute of Information Technology and Management - Kerala) are aimed at

this. The proper functioning of such institutions would create quality and skilledpersonnel

for ample local supply as well as for other agencies outside Kerala, India, etc.

viii) No Locul Sales

Local Sales from the units functioning at the TECHNOPARK is practically

insignificant. The enhancement of local sales by the organisation of new 33%% EOUs

but w~thout I O U 5 6 would ensure local sales, and their products would improve the quality

of services available locally in future. Commitment to the local people and community

can be possible oniy to a limited extent when the units are 100% EOUs. When the share

is reduced by a limited percentage the commitment to the society can be enhanced to

such an extent. There is positive correlation between increase in local sales and

304

commitntent to the society. Amacting local personnel for employment would also enhance

the commitment to the society.

ix) Lack ofSocial lnfrastructure

Social Lnfrastructure refers to the availability of Hospitals, Good Hotels, Schools of

Intematlonal Standards, etc. There are provisions for such facilities and a plot has been

acquired beside AaMtulam hack waters. But such infrastructure have not been arranged so

far. Executives employed in TECHNOPARK from overseas feel the deficiency of such

infrastructul-e. If so much of facilities are arranged in the plot intended, more foreigners

can be attracted with their family members. Their life style must be coherent with that of

their home countries. More money invested in social infrastructure can attaract more

investment outlay

x) Indqferent attitude of Local People

Some entrepreneurs experience the indifferences of local people. Normally local

people should support any institution formed on any location, because they will be benefited

in many ways. Their plots will get better prices, new roads may be constructed, power

supply may bt: uninterrupted, conlmunication system may be improved and the like. Direct

and indirect employment opportunities are also created.

4.29 Projection of Activities of Entrepreneurs

Through the schedule, projection of activities are also enquired into and the following

parameters have been chosen, and responded by the entrepreneurs.

i) tIxp;insion uf activities

ii) L>ivt.rsificat~on of activities

iii) Obtaining I S 0 Certification

tv) tnhancement of Social Comm~ttment

i) Expansion qfActivities

The following table reveals the response of the entrepreneurs regarding expansion


Table : 4.49 Projection of Activities

From the table above, it is clear that 2013 1 (64.52%) entrepreneurs favour expansion;

5131 (i.e. 16.1 301u) entrepreneurs are not in favour of expansion, whereas 6131 (i.e. 19.35%)

are not responded thls question.

Parameters

i i )

I V : '

Total

The expansion is for 11-~eeting business demand; for developing the existing package

further, for more busmess and more business means more money, for penetrating in new

market, and so on.

ii) Diversification o f Activities

Favourable

20

9

14

17

19

- 79

From the table above, it is ascertained that 9/31 (i.e. 29.03%) entrepreneurs are in

favor of d~versification; 15/31 (i.e. 48.39%) entrepreneurs are unfavourable for

diversification of activities; where as the remaining 713 1 (i.e. 22.58%) entrepreneurs did

not respond the question of diversification of activities.

The diverslficat~on IS needed for fully utilising men, machine etc; for facing the

dullness in IT field, to have more stable domain, for securing more markets etc.

Unfavourable

5

15

7

6

5

3 8

iii) Obtaining I S 0 Certification

From the table above, it is ascertained that 14/31 (i.e. 45.16%) entrepreneurs are in

No Response

6

7

10

8

7

38

Total

3 1

3 1

3 1

3 1

31

155

306

favour of IS0 Cert~tication; 71:; 1 (i.e. 22.58%) entrepreneurs did not prefer to have I S 0

Certification; whereas 10131 (32.26%) entreprenerus did not respond the question of I S 0

Certification.

Quality assurance 1s an essent~al factor for survival and existence of any institution.

Thus, the entrepreneur-s should take every effort to have I S 0 Certification for their units,

if not received already

iv) Enhancement of Social Commitment

Soc~al commitment can be referred to as a social objective of any organisation.

Without servlng any community, no business can earn reputation. Social commitment

can be enhanced by quality products, assistance to downtrodden, providing educational

facilities tor economically backward students, contribution for charities, for orphanages

etc. 1713 1 (1.e. 54.84%) entrepreneurs are infavour of enhancing social commitment, 613 1

(i.e. 19.36%) entrepreneurs are not in favour of social commitment and the remaining

entrepreneurs, 8131 (i.e. 25.80%) did not respond the question. One thing is clear that

social conirnlmmnt cannot be ignored as an enterprise is directly or indirectly realted to

the society. By prowding at least a single employement would reduce the social problem

of unemployment to that extent.

Popularistion of the Organisation is aimed at the following.

a) To attract the best talented personnel

b) 70 improve the market hold by selllng more products

C) To create publ~c awareness

d) To sell products internally too.

1 9 3 1 (1.e. 61 .?9%i of entrepreneurs are in favour of popularising the organisation,

5/31 ( i .e 16.13%) are not in favour of, whereas the remaining 7/31 (i.e. 22.58%) did not

answer the question. As some ofthe units are 100% EOUs, the entrepreneurs do not have

any inchnation to populanse the organlsat~on locally.

Popularisation of an organisation means creation of awarenss of an organisation

and its products. A minimum percentage of the products must be sold locally so as to get

the benefit of any products in the place of origin itself.

IT and ITES are touchlng the human belngs for their very existence itself. A rational

outlook 15 needed for this. The new products in the IT field can change the human life

exped~tiously than any other products.

Awzireness, Accessability, Adequacy, Availability, Acceptance and Adaptability of

IT products to everybody, any time and everywhere is the need of the present.

4.30 Conclusion

Technopark 1s one of the most important and investor-friendly IT Park in South

India and it has attracted more than 55 IT companies into the campus. Its operational,

managerial and financial perforrnance provide excellent level of satisfaction to the Park

authorities (Tables 4.42, 4.43 and 4.44). Similarly, all the firms working in the

TECHNOPARK campus are having very good and excellent operational, managerial and

financial level satisfaction (Table 4.31). It is also proved that there is no considerable

difference In respect of the operational, managerial and financial level satisfaction of the

entreprenriirs (Appendix 4 4,4.5 and 4.6). In spite of the above, the Park authorities and

the entrepreneurs in TECHNOPARK face certain problems. They are taking every steps

to resolve the problems.

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