DISSERTATION REPORT

ON

“A STUDY ON FINANCIAL STATEMENT ANALYSIS”

AT
REPLICON SOFTWARE (INDIA) Pvt. Ltd. Bangalore

SUBMITTED TO
BANGALORE UNIVERSITY

As per the partial fulfillment of the requirements for the award of

“Master of Business Administration”

BY
NASIR KHAN S
Reg No. : 05ACCM6046

IV Semester MBA
2005 – 07

Under the guidance of

Mr. M. R. SREEPATHY RAO

AL-AMEEN INSTITUTE OF MANAGEMENT STUDIES

BANGALORE-560 027
 CONTENTS

Srl. No. CHAPTER TITLE Page No

1 INTRODUCTION 1-22

2 RESEARCH DESIGN 23-30

 Title of the Study
 Statement of the problem
 Objectives of the study
 Methodology

3 COMPANY PROFILE 33-55

 Introduction
 Background of the company
 Board of Directors

4 DATA ANALYSIS & INTERPRETATION 56-100

5. SUMMARY OF FINDINGS,

SUGESSION & CONCLUSIONS 102-106

6. BIBLIOGRAPHY 108
 Company Profile
Replicon Software India Pvt. Ltd
About Replicon

Founded in 1996, Replicon is the world leader in web-based time and expense
management solutions, and the innovator in productivity software. Thanks to
Replicon’s flagship application Web Timesheet, professional services
organizations now have quantitative, real-time analysis of workforce productivity
and a way to set meaningful productivity goals for employees that are tied directly
to bottom line revenues. Replicon launched version 1.0 in 1998 and has grown
revenues in excess of 250 percent for the last two years. Replicon has grown its
total user base to more than 5,200 customers worldwide..

The company has been recognized by Profit Magazine as one of the fastest
growing companies in Canada for 2004 and by Alberta Venture Magazine/Grant
Thornton Chartered Accountants as one of the fastest growing company in Alberta
the last 4 consecutive years. Most recently it was selected as a finalist for Ernst &
Young's Entrepreneur of the Year Award and was also recognized as one of
Canada’s top exporters by the Department of Foreign Affairs and International
Trade. Replicon is a privately held company.
Team
Management Team
Raj Narayanaswamy (Co-founder & Co-Chief Executive Officer)
As Chief Executive Officer, Raj Narayanaswamy is responsible for executing the
company's strategic goals and leading corporate initiatives. With more than 15 years
of software development and senior management experience, Mr. Narayanaswamy
is widely recognized for his visionary approach in developing innovative software
applications that meet the needs of leading enterprise organizations. Mr.
Narayanaswamy has a Bachelor of Computer Science degree from the Indian
Institute of Technology, Chennai-India, and is an active member of the high-tech
business community.

Lakshmi Raj (Co-Founder & Co-Chief Executive Officer)

In her position as Co-Chief Executive Officer, Ms. Raj is focused on strategic
initiatives for Replicon's global operations, including market share expansion,
revenue generation and worldwide sales activities. Ms. Raj has extensive experience
in web-based marketing. She was instrumental in providing global visibility for
Replicon's product. Prior to starting Replicon, she worked as a software engineer for
Verity (formerly known as FTP Canada). Ms. Raj holds degrees in Computer
Science and Electrical Engineering.

Peter Kinash (Chief Financial Officer)

With over 20 years of experience as a Chartered Accountant, Mr. Kinash offers a
wealth of experience in the fields of mergers and acquisitions, corporate financing,
and securities filings. He specializes in guiding growing high-tech companies to
maturity, an ability that led him to great success as the former leader of the
Information, Communication, and Entertainment practice of KPMG.

Board of Directors
Maury Parsons (Chairman)
As Managing Partner of PaCT, (Partnerships for Commercialization of Technology),
Mr. Parsons brings to Replicon's Board of Directors a wealth of experience in the
investment and management of technology and commercialization projects. This
experience is augmented by his position as Executive-in-Residence at the Banff
School of Management, as well as positions with the Alberta Executive MBA
Program, and the University of Calgary's Faculty of Management. He is also
currently Chairman of the Power Pool of Alberta, Chairman of the National
Technology Advisor Committee to the Canadian Venture Exchange, and Director to
a number of software development ventures.

Raj Narayanaswamy (Director)

Lakshmi Raj (Director)

Marcel A. Jacques (Director)

With over 35 years of information systems experience, Mr. Jacques' interest in
technology has revolved around the introduction of leading edge technologies such
as supercomputers (managed four installations in Calgary) and fiber optics (co-
founder of OilNet). His entrepreneurial career includes co-founding several
ventures, most notable of which are, MetroNet Communications (sold to AT&T
Canada) and International Productivity Solutions Inc., known as PreferSoft Inc. that
was sold to Pangaea Inc. Mr. Jacques was Chairman for PreferSoft Inc. and
currently holds a board position with Replicon Inc. As a private consultant, Mr.
Jacques advises, directs and mentors numerous small Alberta and B.C. companies.
Formerly, Mr. Jacques has held various positions with ACTC Technologies Inc.,
Control Data Canada Ltd., and Fujitsu Canada.

Replicon’s Products
Timesheet and Project Management Application
 Automated for fast and accurate data entry
 Accelerated adoption with a simple and intuitive interface
 Highly configurable to meet your organization’s unique needs

Timesheet and Project Management Application Service Provider

 Hosted Web TimeSheet time tracking tool for those not ready to make the initial
investment
 Replicon supports, maintains, secures, and performs upgrades for you from our data
center
 Gain the benefits of cutting edge technology without the responsibility of running a
computer center

Vacation, Sick Leave, and Paid Time Off Tracking Application

 Manage absences easier with at-a glance master calendar views
 Automated, centralized system to track scheduled and unscheduled absences
 Rapid approval cycles with automatic e-mail notifications
 Designed for use by employees, managers, and human resources administrators
Resource and Project Scheduling Application
 Simple and easy-to-use
 Designed specifically for resource and project managers
 Optimizes employee management, skills assignment, and project tracking
 Facilitates resource and project forecasting

Replicon Customers

With more than 5,200 customers worldwide, Replicon, Inc. is the industry leader of web-based
time and expense management solutions. Founded in 1996, Replicon, Inc. powers companies of
all sizes to maximize profitability and productivity. Replicon's product suite of Web TimeSheet,
Web Resource, and Web TimeOff facilitates a myriad of front and back office solutions,
including billing, resource planning, budgeting and control, and employee time and expense.
Replicon's clients include Ernst & Young, Sony Music Entertainment, Charles Schwab, and
Volvo. Replicon, http://www.replicon.com is based in Calgary, Alberta, Canada.

The following companies are some of our customers:

Replicon Partner

Partner with a world leader in web-based time and expense tracking solutions. If you are a
company focused on bringing proven solutions to your customers, we want to speak with you.

Reseller Partners

Reseller Partners have trusted relationships with companies around the world and have the
knowledge to know when Replicon Web TimeSheet will meet a business's needs. Replicon has
two categories of Reseller Partners:

 Referral Partners are able to introduce Replicon’s industry-leading Time and Expense
tracking solutions to their customers and transfer these leads to Replicon in exchange for
a referral fee.
 Business Partners help our customers quickly implement Replicon Web TimeSheet and
successfully adapt it to their specific business needs.

Microsoft Business Solution Partners

Replicon’s easy integration with MS Project, Microsoft SQL Server, and the MBS family of
products makes it an ideal solution for Microsoft Business Solution Partners to add to their
existing product offerings. Benefits

 Accelerated cash flow. Quick sales cycle.

 Dedicated partner contacts.
 Winning product solution. Replicon provides a flexible, robust, and easy to use product
that can be implemented within days.
 No partner start-up costs
  Sustainable Return-on-Investment. Grow with us as we continue to develop innovative,
market ready solutions.

In the Media

Nove
mber
2006
Replicon
Web
TimeShe
et Wins
Prestigio
us 2006
Alberta
Science
and
Technolo
gy
Award

The
ASTe
ch
Leade
rship
Found
ation
award
s
Replic
on,
Inc.
for
Outsta
nding
Com
merci
al
Achie
vemen
t.

November 2006
Replicon, Inc. Named to Software Magazine's 24th Annual Software 500

Software Magazine ranks Replicon as one of the world's largest software

companies.

October 2006
PROFIT W100 Overview: Big is beautiful

Female entrepreneurship is thriving, both globally and nationally. The

number of women-owned businesses in Canada is rising 60% faster than
those run by men. Read on to find out who’s who on the 2006 PROFIT
W100: Canada’s Top Women Entrepreneurs and see what it’s like to be a
woman running the show.

October 2006
Co-founder of Replicon, TimeSheet Software Provider, Honoured on the 8th Annual PROFIT W100
Ranking of Canada’s Top Women Entrepreneurs

Lakshmi Raj, Co-founder and Co-CEO of Replicon, Inc., achieves

distinguished recognition as one of Canada’s Top Women Entrepreneurs for
the third consecutive year.
October 2006
Replicon, the Market Leader in Timesheet Tracking Software, Announces the Release of Web TimeOff
version 2.1.

Web TimeOff version 2.1, the newly enhanced employee time off tracking
software solution, is designed to manage employee absenteeism easily,
efficiently and effectively.
September 2006
Tracking and Invoicing Billable Hours Without Wasting Time

Turning in time sheets typically isn’t a priority with lawyers, consultants,

accountants and others in professional services. Their employers are always
seeking simpler ways to measure billable hours and expenses.

August 2006
Replicon, Inc. Earns Top Scores in TopTenREVIEWS 2006 Review of Time and Billing Software

Replicon, Inc. receives 4 1/2 out of 5 stars for Web TimeSheet, the leading
Web-based time and expense business management solution.
August 2006
Replicon, Inc. Launches Customer Support Forums

Replicon's Customer Support Forum is where more than 4,200 customers

from around the world come to discuss and share ideas, best practices, and
solicit help relating to the company's line of products—Web TimeSheet,
Web Resource, and Web TimeOff. Discussions include suggestions panel,
product support issues panel, and many more.

July 2006
Replicon, Inc. Announces its 1,000th Web TimeOff Online Seminar Attendee

After only eight months since launching Web TimeOff 1.0, the company
receives overwhelming traffic from prospects attending online seminars.
Nine out of ten attendees choose Web TimeOff as they discover the time-
saving and cost-saving benefits.

July 2006
The Finance Project Streamlines Timesheet and Time Off Processes with Replicon’s Web TimeSheet

Employees at The Finance Project needed a centralized, automated timesheet

and time off tracking solution to eliminate manual processes. They found the
answer in Web TimeSheet, Replicon's flagship product.

July 2006
TruStar Federal Credit Union Exclaims Time-Saving Benefits with Replicon’s Web TimeOff

Employees at TruStar Federal Credit Union needed a centralized, automated

time off tracking system to help remove frustrations of manually tracking a
“valued employee benefit,” or Paid Time Off. Six months after deployment,
employees, managers, and administrators at TFCU are enjoying a multitude
of benefits with Web TimeOff.

July 2006
ASPs Offer the Best of Both Worlds

Proponents say that outsourcing back-end applications increases efficiency

while cutting operating costs. If you think that far-fetched, think again. The
online approach may be right for your business.

July 2006
TopTenReviews Give Replicon's Web TimeSheet Top Scores for Ease of Use

Replicon’s Web TimeSheet receives outstanding scores for ease of use, ease
of implementation, features, time tracking capabilities, and reporting
capabilities from reviewers at TopTenReviews.

July 2006
Catalyst for Action: New Wave of Lawsuits for Unpaid Overtime or Unpaid Leave

Employers are being hit with hardline claims for violating labor codes and
are paying a harsh price. Recent cases throughout the United States are
showing courts to be unforgiving when it comes to unpaid overtime and
unpaid leave. If practices don’t change, many other employers will soon find
themselves facing similar court battles. To avoid potential risk, many
employers are scrambling to find a solution.

June 2006
Replicon, Inc: A Decade of Leading Productivity Software Solutions

The World Wide Web is a dog-eat-dog world and Replicon, Inc. entered the
cutthroat arena at a time of bubble and boom. While a flood of dot-com
companies collapsed under the bust, Replicon flourished. Ten years later, the
company continues to successfully prosper as it surpasses industry standards
and meet customer needs around the world.
June 2006
Preventative Measures: Outsourcing Your Proprietary Data

In today’s interconnected economy, businesses are more vulnerable than ever

to the possibility of disasters disrupting business. Successful business
continuity requires a disaster recovery plan as well as a disaster recovery
service provider.

June 2006
Replicon, Inc Supports Children with Special Needs in the 2006 Calgary Easter Seals 24-Hour Relay

Ranking third in the corporate category, Replicon corporate team members

geared up in rain coats and running suits to partake in the 2006 Easter Seals
24-Hour Relay, a national fundraising event that helps fund equipment and
activities for children with disabilities and serious illnesses.

June 2006
Replicon’s Web TimeSheet Acclaimed as Easiest to Use Project Management Software

PM Network magazine named Replicon's Web TimeSheet as the most user-

friendly web-based timesheet application.

June 2006
Replicon, Inc. Named Among PROFIT 100 Ranking of Canada's Fastest-Growing Companies

Company lands on the PROFIT 100 profiles of the country’s most successful
growth companies.
June 2006Washington Post Newsweek Interactive Turns to Replicon’s Web TimeSheet for Visibility
into Project and Resource Management

Employees at the Washington Post Newsweek Interactive needed an efficient

project and resource management solution to eliminate manual processes of
administering time and expense reporting. Web TimeSheet is their business
solution of choice.

May 2006
Timesheets in Compliance with SOX

The criminalization of corporate fraud has America’s corporate community

scrambling to find Web-based enterprise solutions that are SOX compliant.
Accounting for financial reporting can only be facilitated with a suitable time
and expense solution.

May 2006
1-800-GOT-JUNK? Selects Replicon’s Web TimeOff to Streamline Time Off Processes

Web TimeOff is designed to accurately chart employee time off requests,

balances and accruals to help alleviate the pains arising from error-prone
paper trails and manual processes.

May 2006
Web TimeOff 1.6 Brings Businesses Heightened Functionality

Web TimeOff 1.6--designed for employees, managers, and human resources

alike--augments rapid company growth and improves workflow processes by
simplifying the employee time off route to another unrivaled level.

May 2006
TANDBERG Television Earmarks Replicon, Inc. as their Employee Tracking Provider

TANDBERG Television rolled out Web TimeOff to automate their UK-

based employee time off processes and accurately record paid employee time
off requests, attendance and balances.

April 2006
Replicon, Inc. Announces Record Fiscal First Quarter Results

Financial results from the first quarter of 2006 exceed expectations and break
records.

February 2006
U.S. Government Employees Can Now Take Advantage Of Replicon's Productivity Software Listed On The
GSA Schedule

The GSA has recognized Replicon's expertise and overall impact on the
technological marketplace and has made Replicon's software available to be
purchased for all levels of government.
July 2005
Canada's premier business award announces Prairie finalists

The 12th annual Ernst & Young Entrepreneur Of The Year® awards move
into full swing with the naming of regional finalists

November 2005
Replicon Co-founder Honored on the PROFIT W100 Ranking of Canada's Top Women Entrepreneurs

Lakshmi Raj, co-founder and co-CEO, climbs up over 20 spots on the

Annual PROFIT W100 list.

November 2005
Replicon Attains Gold Certified Partner Status in Microsoft Partner Program

Replicon further distinguishes itself by earning two Microsoft Competencies:

ISV/Software solutions and Information Worker Productivity solutions.
July 2005
Replicon Co-founders Named Finalists for Ernst & Young Entrepreneur Of The Year Award

Raj Narayanaswamy and Lakshmi Raj, co-founders of Replicon Inc., have

been named as finalists for the Ernst & Young Entrepreneur of The Year
Award 2005 Prairies.

July 2005
Replicon Inc. Honored on the PROFIT 100 Ranking of Canada's Fastest-Growing Companies

Replicon Inc. once again joins the ranks on the PROFIT 100 list with a 719%
increase in profit.

May 2005
Web Resource 1.1, Replicon's Resource Scheduling Solution, now Integrates With Web TimeSheet

Projects and resources can now be transferred between Web Resource and
Web TimeSheet.

April 2005
Replicon Surpasses 1.1 Million User Mark With Latest Version of its Market Leading Timesheet Software

Web TimeSheet 6.1 offers multi-client billing, online time-off requests, an

‘extreme makeover’ to its interface, and many more.
 April 2005
Web-based Timesheet Provider Replicon Inc. Launches Web-based Resource Scheduling Software

Replicon’s Web Resource to replace the use of traditional spreadsheets for

employee project scheduling.

February 2005
Replicon Announces Beta Release of Resource Management Software

Replicon provides an opportunity to preview their latest workforce

productivity tool.

Awards
October 25, 2006
Co-founder of Replicon, TimeSheet Software Provider, Honoured on the 8th Annual
PROFIT W100 Ranking of Canada’s Top Women Entrepreneurs
Lakshmi Raj, Co-founder and Co-CEO of Replicon, Inc., achieves distinguished
recognition as one of Canada’s Top Women Entrepreneurs for the third consecutive
year.

August 9, 2006
Replicon, Inc. Earns Top Scores in TopTenREVIEWS 2006 Review of Time and
Billing Software
Replicon, Inc. receives 4 1/2 out of 5 stars for Web TimeSheet, the leading Web-
based time and expense business management solution.
June 15, 2006
Replicon, Inc. Named Among PROFIT 100 Ranking of Canada's Fastest-Growing
Companies
Company lands on the PROFIT 100 profiles of the country's most successful growth
companies.
July 7, 2005
Canada's premier business award announces praire finalists
The 12th annual Ernst & Young Entrepreneur Of The Year® awards move into full
swing with the naming of regional finalists
June 20, 2005
Replicon Co-founders Named Finalists for Ernst & Young Entrepreneur Of The
Year Award
Raj Narayanaswamy and Lakshmi Raj, co-founders of Replicon Inc., have been
named as finalists for the Ernst & Young Entrepreneur Of The Year Award 2005
Prairies.

January 4, 2005
Replicon Ranked as Alberta's Fastest Growing Company
Timesheet Software Provider Replicon Inc., Places First on Alberta Venture
Magazine's Ranking of the Fastest Growing Companies

December 3, 2004
Replicon Co-founder Lakshmi Raj Ranks on PROFIT W100 List
PROFIT's 6th Annual Ranking of Top Woman Entrepreneurs Recognizes Replicon
Co-founder Lakshmi Raj

November 19, 2004

Replicon Inc. Recognized on Deloitte Technology's Fast 500 List
Replicon ranks in the top 500 with 532% growth over the past 5 years.

October 29, 2004

Replicon Inc. Named to Software Magazine's Annual Software 500
Replicon, the world leader in web-based timesheet and expense management
software, announced today its inclusion on the Software 500.

August 13, 2004

Replicon Named to 2004 Deloitte Fast 50
Replicon, the world leader in web-based timesheet and expense management
software, announced today that it has been recognized as one of the Deloitte
Technology Fast 50.

June 14, 2004

Replicon Named to PROFIT 100 ranking of Canada’s Fastest Growing Companies
Replicon recognized as the eleventh fastest growing company on the prestigious
PROFIT 100 list of Canada's fastest growing companies.

January 23, 2004

Replicon Named Second Fastest Growing Company
Replicon, the world leader in web-based timesheet and expense management
software, announced today that for the fourth consecutive year they have been
recognized as one of the Fastest Growing Companies in Alberta by Alberta Venture
Magazine and Grant Thornton LLP.

September 17, 2003

Replicon Recognized as One of the Top 25 Exporters
Replicon, the world leader in web-based timesheet and expense management
solutions announced today that they have been named as one of the top 25 exporters
for the 2003 Canadian Export Awards.

July 28, 2003

Replicon Founders Selected as Finalists For Ernst & Young 2003 Entrepreneur of
the Year Award
Replicon, the world leader in web-based timesheet management software,
announced today that their co-founders Raj Narayanaswamy and Lakshmi Raj have
been selected as finalists for the Ernst and Young Entrepreneur of the Year award.
July 21, 2003
Replicon Wins InfoTech Alberta Hero Award
Replicon, the world leader in web-based timesheet management software,
announced today that it has been recognized as the winner of the InfoTech Alberta
Hero Award for Entrepreneurship. The award recognizes companies who continue
to best demonstrate significant growth in the information technology industry and
are a testament to quality leadership.

February 19, 2003

Replicon Named As One Of Alberta’s Fastest Growing Companies
Replicon, the world leader in web-based timesheet and expense management
software, announced today that for the third consecutive year they have been
recognized as one of the Fastest Growing Companies in Alberta by Alberta Venture
Magazine and Grant Thornton LLP.

November 5, 2002
Replicon Founders Selected as Finalists For Ernst &Young 2002 Entrepreneur of the
Year Award
Replicon, the world leader in web-based timesheet management software,
announced today that their co-founders Raj Narayanaswamy and Lakshmi Raj have
been selected as finalists for the Ernst and Young Entrepreneur of the Year award.

January 21, 2002

Replicon Named Second Fastest Growing Company In Alberta
Replicon, the world leader in web-based timesheet management software,
announced today that it has been recognized as the second fastest growing company
by Alberta Venture Magazine and Grant Thornton Chartered Accountants. The
award recognizes the growth in categories including sales, profitability, product
development, investment in research and export activity.

January 5, 2001
Replicon Wins Fastest Growing Company Award
Replicon Inc., the global leader in web-based workforce optimization applications,
announced today that it is proud to be honored as the second fastest growing
company in Alberta.

August 29th, 2000

Replicon Wins National Award
Replicon Inc., a leading global provider of web time sheets and solutions to optimize
workforce productivity, announced today that it has been ranked as one of the top 15
Hottest Startups in Canada by PROFIT magazine.

July 2001
Great Ideas Endure: Ernst & Young's Entrepreneur Of The Year(R) 2001 Prairies'
Finalists

Corporate Headquarters USA Regional Office India Regional Office

Suite 800 3636 Executive Center Drive #35, Mirage point, 3rd Floor
910 - 7th Avenue SW Suite 268 80 Ft Road, 1st Block,
Calgary, Alberta, Canada Austin, Texas Koramangla, Bangalore
T2P-3N8 78731 560095
Tel: 403-262-6519 Tel: 1-877-737-5420 Tel: +91 80 4013 0444
Fax: 403-233-8046 Fax: +91 80 4013 0445

Toll-Free
North America: 1-877-737-5420
Europe: 00-800-7375-4266
Australasia: 0011-800-7375-4266
Inquiries
General: [email protected]
Sales: [email protected]
Support: [email protected]
Media: [email protected]
Careers: [email protected]
Partners: [email protected]
Website: [email protected]
 BIBLIOGRAPHY

Book Title: Business Research Methods

Author: Donald.S.Cooper & Pamela.S.

Book Title: Financial Management

Author: Sharma and Gupta.

Book Title: Business Finance

Author: Reddy, Appannaihh and Srivastava

Book Title: Financial Management

Author: Khan and Jain

Book Title: Financial Accounting

Author: R. Narayanaswamy.

Book Title: Management Accounting

Author: B.S. Raman