A PROJECT REPORT ON MARKETING

STRATEGIES AND FINANCIAL RATIO

ANALYSIS OF OLA CABS

Institute of Innovation in Technology and Management

Submitted in partial fulfilment of the requirements

for the award of the degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Dr. Priyanka Murria Submitted By:

Aman Kumar

Roll No: 05590301721

Institute of Innovation in Technology& Management,

New Delhi– 110058

Batch (2021-2024)
 Certificate

I, Mr. Aman Kumar, Roll No. 05590301721 certify that the Project Report (BBA-

114) entitled “A PROJECT REPORT ON MARKETING STRATEGIES AND

FINANCIAL RATIO ANALYSIS OF OLA CABS” is done by me and it is an

authentic work carried out by me at Institute of Innovation in Technology &

Management. The matter embodied in this project work has not been submitted earlier

for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Project Report (BBA-311) entitled “A PROJECT REPORT ON

MARKETING STRATEGIES AND FINANCIAL RATIO ANALYSIS OF OLA

CABS” is done by Mr. Aman Kumar, Roll No. 05590301721 is completed under my

guidance.

Signature of the Guide

Name of the Guide:

Designation:

Date:

Countersigned

(Director/Project Coordinator)
 CONTENTS

S No Topic Page No

1 Certificate (s) -

2 Chapter-1: Company Profile 1-10

3 Chapter-2: Marketing Strategies of The 11-22

Company

4 Chapter-3: Financial Ratios 23-33

5 Chapter-4: CSR initiatives and Unique Practices 34-40

6 Chapter-5: Conclusion and Suggestions 41-45

7 References 46-47

8 Appendices 48-50
 LIST OF FIGURES

S No Topic Page No

1 Investment In OLA 03

2 OLA Milestones 05

3 Change in OLA’S organisational structure over 07-08

the years

4 Market Share of Indian Taxi Market 11

5 Market Share of OLA and Competition 14

6 Social media buzz trend of radio taxi service 22

providers

7 OLA Financials FY19-FY21 29

8 OLA Revenue Breakdown 30

9 OLA Expenses Breakdown 31

10 OLA Financials FY19-FY21 32

 Chapter-I
COMPANY PROFILE

Introduction:

Managing and growing a successful startup is ripe with challenges from all sides –

from keeping employees and investors happy, to raising money and constantly

improving your bottom line. Not every start-up is bound for success. In actuality,

getting money from an investor is no easy feat, but when you know what states are the

most investor friendly, what investors are looking for and how to build a powerful

team around your organization -- then you are much more likely to find start-up

success. Ola Cabs, more popularly known as Ola, is just like any other marketplaces

online, but more specifically into providing Taxi services. Ola, which started as an

online cab aggregator in Mumbai, now resides in the Silicon Valley of India a.k.a.

Bangalore, and is also known to be one of the fastest growing businesses in India, out-

beating its competitors Uber & Meru. Coming back to the man behind Ola; simple yet

charming Bhavish, with the success of his prodigy has certainly become the talk of the

town. But even after becoming a millionaire, he still prefers to not buy a car and take

a cab to set an example, we presume.

Taxi Services in India:

The middle-class population in India rose from 15 million in 1991 to160 million in

2011. This segment with its increasing disposable income started demanding and has

been willing to pay for better services across sectors including private and public

transportation. Rapid economic growth coupled with huge infrastructure development,

1
rigorous effort from Ministry of Tourism to project India as travel destination and

emergence of Business Process Outsourcing (BPO)industry has given a huge push to

the car rental industry in India. Till2003, the point-to-point taxi market in India’s big

metropolitan cities was completely unorganized. It was served either by unorganized,

inconsistent and somewhat expensive private operators or by state government

controlled prepaid taxis offering a standardized but low-quality service. But in 2003

the Radio cabs business emerged as one of the fastest growing businesses in the

Indian transportation sector with Delhi-based Mega Corp setting the wheels rolling

under the Mega Cabs brand in cities such as Bangalore, Mumbai, Calcutta,

Chandigarh, Ludhiana and Amritsar. Today, 15,000 plus professionalized air-

conditioned taxis are available to customers in 6 big cities in a largely reliable,

convenient and affordable manner

About the Company:

Ola initially started off as Olatrip.com a small website venture that offered weekend

trip packages. It was started as a startup business by two IIT Mumbai graduates

Bhavish Aggarwal and Ankit Bhati. Bhavish worked for Microsoft after college for

almost two years and then started a small website to sell online tour packages. Due to

a bad experience during a car rental situation they decided to mend the system of car

rental and this became the basis for the initiation of ola cabs. Ola cabs are now

referred as Ola. Ola is a Spanish term which means hello! This indicates that hiring a

cab at Ola as well as the services provided are easy and friendly as conveying hello.

Ola cabs were founded on 3 December 2010 by Bhavish Aggarwal and Ankit Bhati.

Initially Ola operated from Mumbai as a taxi aggregator service. Now it has shifted its

2
head office at Bengaluru and works efficiently from there. Since Ola received its first

investment there has been no looking backward for this initiative venture. Until the

year 2014, the company had expanded to a widely distributed network which

comprised of 200,000 cars across 85 cities. These 85 cities include all the

metropolitan cities and various important cities in it. During November 2014, along

with car rental scheme Ola also tried to incorporate autos on trial basis in Bengaluru.

After its success there it initiated the same idea in Delhi, Pune and Chennai by

December 2014. In the year 2015 Ola also started its auto services in Chandigarh,

Indore and Jaipur. In March 2016, Ola started its two-wheeler services in Bengaluru

as a trial venture. Until September 2015 Ola was valued at around $5 billion market.

Taxi for sure as acquired by ola in march 2015 for $200 million. The company

averages a total of about 150,000 bookings per day and has the highest market share

in India of 60%.

Figure No-1: Investment In OLA

3
Taxi market in India is seeing a sensational development in the previous six years.

$400 million (Rs 2400 crore) of investment is pumped in the most recent four years

(2010-2014). The significant player in the taxi aggregator space is Ola cabs and is

now threatened by entry of uber.

Major Milestones:

In March 2015, Ola Cabs acquired Bangalore-based taxi service Taxi for Sure for

approximately ₹12.37 billion (US$160 million). June 2015 onwards, Ola users gained

access to TFS cabs via the Ola mobile application. Later in the year in November, Ola

further acquired Geotagg, a trip-planning applications company, for an undisclosed

sum. In a move to expand beyond cab aggregation, Ola acquired struggling foodtech

company Foodpanda India with an eye on leveraging the growing food delivery

segment business in December 2017. In April 2018, Ola made its second acquisition

with Ridlr (formerly Traffline), a public transport ticketing app. Later in August 2018,

Ola financed Series A funding of the scooter rent startup Vogo, and again in

December, invested another $100 million.

In March 2019, the Karnataka state transport department suspended Ola's operating

license for six months for violation of license conditions and violation

of Karnataka On-Demand Transportation Technology Aggregator Rules, 2016. This

was on account of Ola running bike taxi services though it only had license for four-

wheeler taxi operations. The company termed the order unfortunate and was looking

at working with driving partners to continue functioning. They also claimed to be in

touch with authorities to sort things out. In 2019, more than 10,000 drivers applied

both in online and offline mode, ahead of its launch in London.

4
In February 2020, Ola launched its taxi-hailing services in London with over 25,000

drivers registered.

Ola posted its first-ever operating profit of ₹90 crore (US$12 million) in the financial

year 2021-21

5
 Figure No-2: OLA Milestones

Organisational Structure:

Aggarwal has come a long way since the early days of Ola, when he was a green-

behind-the-ears, rookie founder. In many ways, his earliest meetings with potential

investors helped shape him into a tough-as-nails, no-nonsense, thick-skinned founder,

say people aware of his thinking. Many valuable lessons were gleaned from those

meetings. A particular one from 2012 stands out – one where Aggarwal found himself

on the backfoot stumped by an innocuous question. Ola then was moving to Mumbai

and Aggarwal had decided it was time to bring some new names to the company’s cap

table. He needed to expand the 20-member team and get a bigger office. After all, he

often had to man calls to Ola’s service desk from customers, according to an early

employee. Aggarwal, along with Bhati started approaching a number of potential new

backers, including the likes of Matrix Partners.

In one such meeting Aggarwal found himself in an awkward position, unable to

answer a seemingly straightforward question from a potential investor.

“What is Ola’s current org structure? How many people do you have reporting into

you,” asked the investor? Aggarwal, as the story was recounted, didn’t know what

“org structure” meant. Till that point, he had run Ola as a typical small business –

with no formal structures and processes in place. He quickly Googled what “org

structure” meant when the investor was distracted taking a call, a person presents at

the meeting, requesting anonymity, told FactorDaily.

Cut to 2019. The Ola Group now has a sprawling, so-called group structure in place,

with six key elements: the core cab business, the food delivery unit of Foodpanda,

6
Ola’s fintech services, cab leasing services, an international business, and the electric

vehicle unit.

HOW OLA’S ORGANISATIONAL STRUCTURE

HAS CHANGED OVER THE YEARS

7
 Figure No-3: Change in OLA’S organisational structure over the years

Subsidiaries and services:

Apart from the ride-hailing business Ola Cabs, the holding company ANI

Technologies operates Ola Fleet, Ola Financial Services, Ola Foods, Ola Dash and

Ola Cars. As of September 2019, it also owns a 6% stake in the electric scooter

manufacturing company Ola Electric.

Ride hailing

Ola Cabs offers different levels of service, ranging from economic to luxury travel.

The cabs are reserved through a mobile app and also through their website and the

8
service accepts both cash and online payments. It claims to clock an average of more

than 150,000 bookings per day and commands 60% of the market share in India as of

2014. As of 2019, the company has expanded to a network of more than 1.5 million

drivers across 250 cities.

In November 2014, Ola diversified to incorporate auto rickshaws on a trial basis in

Bengaluru. After the trial phase, Ola Auto expanded to other cities like Delhi, Pune,

Chennai and Hyderabad starting in December 2014.

In March 2016, it introduced bike taxi service on its platform. Ola has faced legal

troubles in many states where operating bike taxis is illegal.

Ola Fleet

In January 2015, Ola acquired radio taxi company GCabs for an undisclosed amount

and renamed it as Ola Fleet Technologies. Ola Fleet is engaged in leasing of cabs to

partnered drivers.

Ola Foods

Ola entered food delivery segment in March 2015 under the name Ola Cafe, but

stopped the services in March 2016. It began offering food delivery services again in

December 2017 with the acquisition of Foodpanda's Indian subsidiary for an

undisclosed sum. Ola also announced that it would infuse up to $200 million in the

food delivery unit. While the number of users and orders went up in 2018 due to

discounts and offers, the numbers dropped sharply in early 2019. In June 2019, it

stopped food delivery service and laid off most of its 1,500 delivery executives.

However, it continued to operate Foodpanda's cloud kitchen business. As of 2021, Ola

Foods operates more than 50 cloud kitchens, including its flagship brand called

Khichdi Experiment, in six cities.

9
Ola Dash

In July 2015, Ola launched Ola Store, a grocery delivery service in Bangalore, before

shutting it down in March 2016. In November 2021, Ola Store returned with quick

delivery of grocery and essentials, starting with a pilot launch in Bangalore. By

January 2022, Ola set up 200 dark stores across 9 cities, and rebranded the service as

Ola Dash.

Ola Financial Services

In November 2015, Ola launched its mobile payments and wallet product called

OlaMoney. OlaMoney is owned by Ola Financial Services, which also offers financial

products such as insurance, credit cards and vehicle loans.

Ola Cars

In October 2021, Ola launched its new and pre-owned car marketplace called Ola

Cars in 30 cities. The online platform is also expected to sell new vehicles of Ola

Electric and other brands.

10
 Chapter-II
Marketing Strategies of the Company

Indian Taxi Market:

The taxi market scenario in India is hugely fragmented. The taxi market in India is

divided into two major segments which are the organized and unorganized markets.

The unorganized market has a market value of $8.5 billion and the organized market

holds a market value of almost $500 million. The organized sector is the recently

emerged segment in the market scenario. It is further classified into owners, affiliators

and aggregators. The owned vehicle segment is inclusive of the pure car rental

companies like meru. The affiliators are accomplished with multiple car rental

agencies and they are known to provide different tour packages or deals. Whereas the

aggregator are the newest phenomenon which are driven by start-ups like ola cabs.

Figure No-4: Market Share of Indian Taxi Market

11
Due to the increase in competition and a steep rise in public demand due to the quality

and comfort of service provided by these taxi services there has been an increase in

the investment activity for the same. In the interim, big cash is making this fight worth

battling for. As indicated by the Association of Radio Taxi India, the taxi business in

the nation is developing at 20 to 25 for each penny a year. The sorted-out taxi area

represents only four to five for every penny of the business and sums $800 million. It

is relied upon to develop to $7 billion by 2020.The central government, vide its

budget 2015-16 has now clearly defined the term aggregator: “Aggregator means a

person, who owns and manages a Web-based software application, and by means of

the application and a communication device, enables a potential customer to connect

with persons providing service of a particular kind under the brand name or trade

name of the aggregator;” Indian taxi market is assessed to be around $8 billion (Rs

48,000 crore) at this moment, out of which just 5% is being overseen under sorted out

area; which implies that the market is completely open right at this point. It is being

anticipated that in the following 5 years, sorted out players, for example, Uber, Meru

and Ola will catch 15% of this market, which is developing at an astonishing rate of

45% every year. The Indian cab market has seen a lot of traction, with over INR 600

crores being raised by the leading players in the sector. While this has been a very

competitive market, the organized sector forms a small percentage of the overall

market. It is estimated that the radio taxi market in India is $6-9 billion dollars

growing at 17-20%. It is also estimated that the number of taxis in the organized

sector will reach 30,000 by 2017. The sector has in the past few years seen

tremendous growth with nearly 10 fairly large companies operating in various models.

But even in this clutter, three companies stand out in their product uniqueness,

customer service responsiveness, driver behaviour and timely arrivals – Olacabs,

12
TaxiForSure and the global sharing economy pioneer, Uber. Other companies that are

operating include Meru, Easy Cabs, Savaari and BookMyCab. The market made a

transition from owned fleet to a fleet aggregator model where anyone could own a car

and become an entrepreneur – in fact, Ola Cabs conducted a Driver Mela in Pune and

Bangalore to get vehicles at a discount to potential drivers. As well as aggregators are

coming up with lots of attractive schemes and plans for drivers and to lure their

customers by getting different schemes to drivers from the manufacturers like Ola

Cabs did Driver Mela in Pune and Bangalore, TaxiForSure came up with Magic Trip

on their Mobile Application, Uber comes up with different promo code from time to

time.

Market Share of OLA and Competition:

As previously mentioned, Ola has a market share potential of 60% in India. The other

contenders in the market which fall under the organized segment include Taxiforsure

(14%), meru cabs (16%), uber (5%) and others (5%). Taxiforsure was acquired by Ola

which further increases its market share to about 74%. Being a part of the organized

taxi market in the country which has the maximum potential for growth in near future,

it then becomes a fact that Ola is indeed faced by many competitions in this sector.

The major competitor of Ola is Uber. Meru and other are not well designated

competitors as the price criteria offered by Ola and the range of car available for rent

is far better and well accepted by the customer. Uber being at a position of 5% market

share holds tough competition for Ola as the future prospects of Uber are to penetrate

deep into the Indian market with an investment of over $400 million to take on Ola.

13
 Figure No-5: Market Share of OLA and Competition

SWOT Analysis of OLA:

A brief idea about the position of the company in the market can be estimated from

the SWOT analysis which indicates the respective strengths, weaknesses,

opportunities and threats faced by the company.

 STRENGTHS:

1. First mover as a taxi aggregator in India:

Ola was started back in 2010 and had a first-mover advantage in comparison to its

competitors which were started very late. Though other taxi services were already

existing like Meru and Ola targeted a new segment and is currently targeting the mass

segment owing to the low prices it offers.

14
2. Technology: 

Ola makes use of state-of-the-art technology with strong data analytics which helps it

to forecast the demand in any geographic region accurately to provide a

balanced supply of cars for the commuters. The more availability the more it will be

used by the customers.

3. Product Line:

It provides a wide product line which starts from offering services using bikes,

different types of cars and also the auto and it also offers more services like local

commuting, outstation, and rentals and also share cabs. Therefore, it offers a complete

package of services to its users which gets fixed with different segments according to

their usage. This is the reason why Ola is popular in India. 

4. Low investment: 

Ola, an aggregator (service provider) does not have to own a fleet of cars to run a

business. Drivers from all the regions collaborate to meet the demand from the

consumers and therefore, there is always Cash Surplus.

5. Dynamic Pricing: 

Ola has been using a dynamic pricing model to rate the ride according to the demand

of the rides in a particular region or during bad weather conditions. This helps to

manage the supply efficiently and at the same time adds to the bottom line.

15
WEAKNESSES:

1. No Control over Drivers:

The business model that Ola has leaves itself with no control over the drivers. Drivers

play an important role in making the brand name of Ola and hence any misbehaviour

of the driver with the customers directly reduces the brand image in the market.

2. Fake Riders:

There have been incidents wherein Ola drivers have started to ask riders to book fake

rides just to increase their ride counts for the day. This tends to result in a loss of

revenue as the drivers are grossly paid for nothing.

3. Weak Support:

The customer relations services offered by Ola are not up to the mark and customers

are always regretting and carping over the support they receive from the brand.

4. Dependence on the Internet:

Customers are only able to book rides if they are connected to the internet. As in

India, connectivity is an issue and hence customers are not able to book rides. Though

they have started with offline booking it is not yet very helpful and appropriate.

5. Market Segment: 

Ola markets themselves as mass segment usage people who are tech-savvy can use the

services in India, the ratio of tech-savvy people is very non-technology users.

16
OPPORTUNITIES:

1. Wider Market: 

Ola shall attract non-tech-savvy customers, ola has to rethink its business model

where such segments can also make use of their services and it shall help Ola in a big

breakthrough as it helps to enhance the customer base to a great on a roader prospect

with good margins of profit.

2. Increasing Internet Penetration: 

The increase of the initiative taken by the government to make smart cities and

penetrate the internet to remote places as well provides Ola with an opportunity to

focus on these regions and expand their services to another level as well. Above all

Ola shall make use of old-school marketing.

3. Poor Government Transport: 

In Tier 2 and 3 cities, there has been a lack of proper government transport service

and hence this can knock the door of opportunities for Ola to look into those cities and

capitalize on the opportunity.

THREATS:

1. Government Regulations:

Government regulations about the taxi service industry have several uncertainties at

the hand. Taxi service providers are changing being threatened by the changing norms

and regulations.

17
2. Customer Satisfaction:

Ola has gross customer service and failed to deliver likely worthy customer service

thereby the presence of Uber in the market relies on the customers to switch the

brands in an open market.

3. Competition: 

Lately, there has been an increase in competition inside the market due to the presence

of Uber and other local taxi service providers.

How is Ola superior to other aggregator taxi service?

Establishing a number 1 position in the taxi market and maintaining it indicates that

Ola has services to offer to the market which are better than other service providers

from the same segment. Ola is different from other aggregator service provider or

other segments in the way that they themselves are the marketplace. This is because

they list the rates and cars in their system. This leads to price transparency and

enables them to achieve customer trust. Another feature that makes Ola superior is

that they do not limit their services to the city boundary. They offer car rental facility

for outstation trips as well. Also, the ride later option available with Ola makes it

more customer friendly service. Ola also takes into account the safety of the customer

and thus has a 24*7 customer care service. The attractive price package and variety in

the fleet of cars target the moderate-income segment which increases their customer

base. The GPs tracker in all the cabs to monitor the activity of the vehicle and high

visibility in terms of logo contribute in the success of the cab company.

18
Business model:

Ola taxicabs go about as a facilitator in giving taxicab booking administrations to

clients through numerous channels. Prior, clients could book their taxicabs through

the site, call centre or the application. But later on Ola reconsidered their methodology

and made appointments just through the application. The drivers have an adaptability

to choose their own particular time to login to OLA Application and acknowledge

demands for rides from clients. They may remain logged out of the framework

according to their need. The source of income for OLA is the commission for every

drive and the costs they bring about are additionally low as they significantly need to

contribute just on the technological innovation. Ola has turned out to be an awesome

innovation stage for transportation and offers simple alternatives of booking a taxi

through an application and offers adaptability to the driver as far as readiness to work.

The individuals who work more get incentives. These companies don’t own cars nor

do they employ the drivers, they simply connect with the drivers through the

application. They are the technology driven market place. The company thus began to

grow at a speed of light due to accomplishment of ahead of its time strategies.

Promotional and marketing strategy of Ola:

At Ola the strategy was to leave no stone unturned. They at Ola did everything from

attending the calls of the customer to providing driving facility to desired destination.

All this was done to sustain the market leadership in their hands. To achieve these

various strategies and promotional activities were adopted by the company. Some of

them are discussed below.

19
EMPOWERING THE DRIVERS:

They offered micro entrepreneurship for the drivers by helping the drivers buy their

own cars at huge discounts and affordable repayment scheme as they collaborated

with leading car manufacturers.

OLA MINI:

One of the most successful marketing campaigns launched by Ola is OLA MINI. The

feature f this strategy was that the price of this service was equal to the auto fares. The

idea worked well and got accepted by the public when they offered cab rides at auto

fare price on auto strike days in 2012 and 2013. Because Ola Cabs is having deep

pocketed investors and can burn money such services can be launched to cater the dire

needs.

STRATEGIC PARTNERSHIP WITH MAKE MY TRIP:

In the year 2013, la cabs launched its partnership with make my trip. Under this

partnership the customers of make my trip would receive rental car facility for pick up

and drop at desired destination. This move by Ola helped acquire large customer base

as people became more aware about the brand.

TREATING CUSTOMER WITH CARE:

Customer is at the centre in marketing. The main purpose of all these promotional

activities is to build customer loyalty. Thus, when it comes to taking care of the

customer, Ola leaves n stone unturned. Ola makes sure that all the customers who use

the service of Ola are well satisfied. If at all any mistake occurs by the system Ola

makes sure to provide extra credit to the customer’s account and also apologize for

20
that matter. In this way it makes sure that the customer base developed should not be

hampered.

ADVERTISING PARTNERSHIP WITH TVF:

Ola has created partnership with TVF (The viral Fever) which is an Indian online

web series platform. TVF has a strong fan base and Ola has tried to take advantage of

this situation. Ola gets to acquire customers from TVFs existing fan base while on the

other hand even TVF gets to reach out to Ola’s customers.

OLA BOATS DURING CHENNAI FLOODS:

During Chennai floods when people were stuck in their offices or other areas Ola had

launched its ferry service. Ola had developed this service so as to help stranded people

reach home and also to deliver essential material including food, water, etc. The

ferries had professional rowers. Each ferry could accommodate 5 to 9 people per trip.

The start up by Ola was initially meant to be for three days but later they agreed to

provide the service as per the demand of the situation. The start-up came up for much

praise on social networks with one Twitter user cheekily describing the service as

“uber cool”.

ECONOMIC STRATEGY:

Ola focuses on target marketing by segregating its fleet into different models which

are suitable for the demand of the customer and also fits their budget. This includes

Ola mini, Ola sedan, Ola micro, Ola prime, Ola pink, carpooling for corporate, etc.

Ola micro offers a base fare of rupees 40 with charges of rupees 6 per km. whereas

Ola sedan and mini have different package ranging between rupees 80 to 100 base

fare. These are suitable for customers planning long distance journey. Ola pink

focuses on women safety and is introduced for the women.

21
SOCIAL MEDIA:

These include other means of promotion used by Ola to promote the brand in the

market. Ola cabs have used channels such as banner ads, newspaper ads, television

ads on a large scale as well as online marketing channel on Facebook, twitter as a part

of its campaign. From the online marketing tool Ola chose Facebook to run its first

campaign as the number of users is high over it. It enabled Ola to target right people

at the correct time. The campaign over Facebook which was termed as the

#chaloniklo campaign was a huge success. Various video ads featured content of

#chaloniklo over Facebook including call to action by which people would be

propelled to download Ola app. It increased the popularity of Ola apps with Facebook

campaign, the consumer acquisition rate increased and searches concerning Ola cabs

also increased, sales boost up by 60% as a result.

Figure No-6: Social media buzz trend of radio taxi service providers

22
 Chapter-III
Financial Ratios

Important Financial ratios:

1) Quick Ratio:

The quick ratio is an indicator of a company’s short-term liquidity position and

measures a company’s ability to meet its short-term obligations with its most liquid

assets.

Since it indicates the company’s ability to instantly use its near-cash assets (assets that

can be converted quickly to cash) to pay down its current liabilities, it is also called

the acid test ratio. An "acid test" is a slang term for a quick test designed to

produce instant results.

⮚ Formula: Quick Ratio = Current Assets - Inventory / Current Liabilities

Particulars March 31 2021

Current Assets 218189

⮚ Calculation:
Inventory 72421

Current Liabilities 46423

Quick Ratio 3.14

*All monetary values are in Lakhs of

INR

23
Interpretation: A Quick ratio of 3.14 means the business is healthy and can pay its

liabilities. The greater the number, the better it is for the business.

A high quick ratio means the business is financially secure in the short-term future. It

also means the business has good growth and sales, and it is collecting the accounts

receivable.

2) Current Ratio:

The current ratio is a liquidity ratio that measures a company’s ability to pay short-

term obligations or those due within one year. It tells investors and analysts how a

company can maximize the current assets on its balance sheet to satisfy its current

debt and other payables.

A current ratio that is in line with the industry average or slightly higher is generally

considered acceptable. A current ratio that is lower than the industry average may

indicate a higher risk of distress or default. Similarly, if a company has a very high

current ratio compared with its peer group, it indicates that management may not be

using its assets efficiently.

The current ratio is called current because, unlike some other liquidity ratios, it

incorporates all current assets and current liabilities. The current ratio is sometimes

called the working capital ratio.

⮚ Formula: Current Ratio = Current Assets / Current liabilities

24
 Particulars March 31 2021

Current Assets 218189

 Calculation:
Current Liabilities 46423

Current Ratio 4.7

Interpretation: A ratio of 4.7 indicates that the company’s debts due in a year or less

are greater than its assets—cash or other short-term assets expected to be converted to

cash within a year or less.

3) Debt-to-Equity (D/E) Ratio:

The debt-to-equity (D/E) ratio shows the proportions of equity and debt a company is

using to finance its assets and it signals the extent to which shareholder's equity can

fulfil obligations to creditors, in the event a business declines.

A low debt-to-equity ratio indicates a lower amount of financing by debt via lenders,

versus funding through equity via shareholders. A higher ratio indicates that the

company is getting more of its financing by borrowing money, which subjects the

company to potential risk if debt levels are too high.

⮚ Formula: Debt to Equity Ratio = Debt / Total Shareholder’s Equity

25
 Particulars March 31 2021

Debt 63253
⮚ Calculation:
Total Shareholder’s Equity 451809

Debt to Equity Ratio 0.14

Interpretation: A D/E ratio below 1.0 would be seen as relatively safe, which

means that the enterprise is depending more on Shareholder’s funds than the external

equities. In effect lenders are at a lower risk and have higher safety cover.

Some industries, such as banking, are known for having much higher D/E ratios than

others. Also, a D/E ratio that is too low may actually be a negative signal, indicating

that the firm is not taking advantage of debt financing to expand and grow.

4) Total-Debt-to-Total-Assets Ratio:

The total-debt-to-total-assets ratio analyses a company's balance sheet by including

long-term and short-term debt (borrowings maturing within one year), as well as all

assets—both tangible and intangible, such as goodwill. It indicates how much debt is

used to carry a firm's assets, and how those assets might be used to service debt. It,

therefore, measures a firm's degree of leverage.

Debt servicing payments must be made under all circumstances, otherwise, the

company would breach its debt covenants and run the risk of being forced into

bankruptcy by creditors. While other liabilities such as accounts payable and long-

term leases can be negotiated to some extent, there is very little “wiggle room” with

debt covenants.

26
 ⮚ Formula: Total debt to total asset ratio = Debt / Total asset

Particulars 31 March 2021

⮚ Debt 63253

Calculation:
Total Asset 533857

Debt to Asset Ratio 0.12

Interpretation: A ratio of less than one (<1) means the company owns more assets

than liabilities and can meet its obligations by selling its assets if needed. The lower

the debt to asset ratio, the less risky the company.

5) Shareholder Equity Ratio:

The shareholder equity ratio indicates how much of a company's assets have been

generated by issuing equity shares rather than by taking on debt. The lower the ratio

result, the more debt a company has used to pay for its assets. It also shows how much

shareholders might receive in the event that the company is forced into liquidation.

The shareholder equity ratio is expressed as a percentage and calculated by dividing

total shareholders' equity by the total assets of the company. The result represents the

amount of the assets on which shareholders have a residual claim.

Formula: Shareholder Equity Ratio = Total Shareholder Equity / Total Assets

27
 Particulars 31 March 2021

Total Shareholder Equity 451809

⮚ Calculation:

Total Assets 533857

Shareholder Equity Ratio 0.85

Shareholder Equity Ratio in 85

%
Interpretation:

When a company's shareholder equity ratio approaches 100%, it means that the

company has financed almost all of its assets with equity capital instead of taking on

debt. Equity capital, however, has some drawbacks in comparison with debt

financing. It tends to be more expensive than debt, and it requires some dilution of

ownership and giving voting rights to new shareholders.

28
Ola Financial Analysis (2021):
Transportation business was hit hard by the pandemic globally and it had strangulated

growth and revenue for the ride-hailing major Uber India and Ola. Uber suffered over

47% decline in operating revenue in FY21, but Ola’s collections also faced a much

higher erosion of 63%, amounting to Rs 983.2 crore during the fiscal ended in March

2021.

During the preceding fiscal (FY20), its operating revenue had grown 4.7% YoY to Rs

2662.63 crore, according to the company’s annual financial statement with the RoC.

Figure No-7: OLA Financials FY19-FY21

29
Ride-hailing was the largest operating segment for the Bengaluru based company,

accounting for 90% of the revenue during FY21. This segment suffered enormously:

it saw a 57.8% drop in collections, reducing to Rs 884.3 crore in FY21 as compared to

Rs 2,096.1 crore in FY20.

The company also collects lease rentals from drivers on its platform who lease out the

cars from Ola’s own fleet of vehicles. Revenue from this segment also saw a

significant decline, dropping by a whopping 93.2% YoY to Rs 33.3 crore in FY21.

Figure No-8: OLA Revenue Breakdown

Its cloud kitchen and financial services business collectively generated Rs 65.6 crore

in FY21. 

The infographic shows how Ola’s operating segments fared during the pandemic hit

financial year (FY21).

30
Ola made a loss of Rs 982 crore on ride-hailing and cab-leasing business

Ola lost Rs 328 crore on its ride-hailing business and Rs 653.5 crore on the cab-

leasing segment during FY21. The financial services and cloud kitchen segment also

lost Rs 48.3 crore and Rs 77.4 crore respectively during the same period.

Employee benefits payments made up nearly 22% of Ola’s annual costs and there has

been a downturn in these expenses over the last three years. The company had laid off

over 1,400 employees in FY21 and its employee costs were reduced by 27.4% YoY to

Rs 436.3 crore in the last fiscal (FY21). These expenses had dropped by 20.55% to Rs

600.8 crore in FY20.

Ola’s marketing spends shrank 72% in FY21

Ola has put in place cost reduction measures to control the cash burn and marketing

spend was one cost centre where these measures are clearly visible. Ola’s expenditure

on advertising and promotion contracted by 72.1% to Rs 135.4 crore in FY21 from Rs

485 crore spent in FY20. Information technology expenses also reduced by 26.4%

YoY to Rs 196.3 crore in FY21.

31
 Figure No-9: OLA Expenses Breakdown

As mentioned earlier, the company’s fleet operations were curtailed during FY21 and

resulted in heavy losses for the company. Ola’s vehicle running expenses were also

reduced by 96.2% to only Rs 9.33 crore during FY21.

Finance and depreciation costs make a large part of Ola’s expenses sheet due to

vehicle loans and booking of depreciation on its fleet of cars. These costs formed

nearly 27% of annual costs and stood at Rs 538.1 crore in FY21 

The curious case of “Miscellaneous Expenses”

Importantly the company booked “Miscellaneous Expenses” of Rs 428.2 crore in

FY21 Rs 2,116.84 crore in FY20 and Rs 2,363.7 crore in FY19. These mostly

constituted driver-related payments, cost of stock options given to certain

shareholders and manpower expenses incurred by the company. 

Fintrackr could not get further details related to this line item due to discrepancies in

Ola’s annual financial statements with the RoC and the company refused to provide

further details regarding these miscellaneous expenses.

Figure No-10: OLA Financials FY19-FY21

32
Ola’s annual burn was reduced by 60.3% YoY to Rs 2007.1 crore during FY21

primarily due to the reduced scale of operations during the pandemic hit year. Annual

losses were also reduced by 49.4% YoY to Rs 1,116.6 crore during FY21 while

EBITDA margins stood -21.17% for the same period. 

Bottomline: Ola’s outstanding losses stood at Rs 17,453 Cr

While the company is looking to improve its margins before its much-awaited initial

public offering (IPO), all of its operating segments continue to lose money despite

austerity measures and its balance sheet sported colossal outstanding losses

amounting to Rs 17,452.61 crore as of 31st March 2021.

The company is set to make its debut in the public market by the end of FY22, but it’s

still to hit profitability in any segment. The financial performance of Ola is far from

being healthy in its 10th year of operations. Since the company had claimed to surpass

pre-covid peak in September, its collection may improve in FY22. The company

also forayed into the used car retailing segment in the ongoing fiscal and this could

potentially help improve revenue figures.

The standalone balance sheet of ANI Technologies sported EBITDA of Rs 89.82

crore during FY21 before considering an “exceptional expense” of Rs 1,402.4 crore.

These were the loans provided to other supporting subsidiaries of ANI during the year

which are now being written off. The company has written off Rs 2,309.3 crore in the

last two years as “exceptional expenses”.

That said, given that Ola’s co-founder and chief executive Bhavish Aggarwal has

been prioritising Ola Electric (they launched a massive manufacturing plant in Tamil

33
Nadu), it’s unclear whether the company’s decade-old business (ride-hailing) may

grow as significantly in FY22 as it did in the past. 

Chapter-IV:

CSR Initiatives and Unique Practices

CORPORATE SOCIAL RESPONSIBILITY POLICY (CSR Policy):

Corporate social responsibility is not a choice these days but it is company’s

obligation to allocate a specific amount of money which is 2 percent of their annual

profit into their CSR activities. Companies launching CSR projects have especial

place in the market and they enjoy some extra respect among the people, even

companies in most of the cases use their CSR activities as a best marketing strategy in

order to gain more costumers towards their productions and services. Today, many

multinational corporations and big Indian origin companies are widely engaged in to

certain CSR activities; however, there are lots of national and international companies

which are very less into CSR practices in spite of having huge profit and sales. A

bunch of previous studies revealed that there are plenty of constructive studies

discussing CSR activities of multinational corporations and big Indian origin

companies such as Wipro, TATA and etc. but unfortunately CSR activities with

reference to Indian Startups in particular booming startups have been not studied

almost at all which creates a new area of study in this field of research. There are

many Indian origin successful startups like OLA, OYO rooms, Paytm and many more

in the country which are actively into some CSR projects these days. For instance,

OLA is one of the Indian leading startups into CSR activities in India and cleanliness

drive to support Swachh Bharat campaign can be one of those needful CSR activities

34
which the company runs in the country. This study is concern with Indian origin

successful startups which are into CSR practices and it is a qualitative study based on

secondary data. Above all, the present study is a need of the time and it also furnishes

a foundation for further studies which can be taken ahead.

Policy Introduction:

OLA is committed to operate and grow its business in a socially responsible way. Our

vision is to grow our business whilst reducing the environmental impact of our

operations and increasing our positive social impact.

OLA’s cornerstone vision is to be a socially conscious business and it has always

displayed the highest Standards of corporate citizenry. Apart from continuously

fulfilling all its regulatory requirements related to the laws of land, the Company

believes in a well-structured corporate social responsibility (CSR) culture. This policy

outlines our CSR agenda, activities and geographical area in which the Company will

focus. Based on this thought process, the CSR Policy has been framed to drive

planning, implementation and evaluation of initiatives and resources.

Objective:

The main objectives of the CSR Policy are to:

● Honour the spirit of law and be a responsible corporate citizen.

● Strive for Sustainable development for economic growth.

● Positively impact the society at large with minimal resource footprint.

● Adopt an approach that aims at achieving a greater balance between social and

economic development.

● Creating shared prosperity, sustainable for the Company’s actions.

● Encouraging positive impacts through its activities.

35
 ● Enhance and implement the society welfare measures in a well-structured

manner on short as well as long term basis with a vision of making the

Company a Good Corporate Citizen.

CSR Activities:

In accordance with Section 135(5) of the Companies Act, 2013 (the Act) or any

amendments thereto, the Company is committed to spend at least 2% of its average

net profits made during the three immediately preceding financial years in some of the

identified activities that are listed in Schedule VII (as amended) to the Act.

Execution/Implementation and Reporting of CSR Activities:

● OLA shall undertake CSR activities either by itself or through trusts or NGOs

or any other body setup duly established or recognised by Government of

India, as per the provisions of the Act.

● The expenditure on CSR activities shall be project based, as may be decided

by the CSR committee, from time to time, in consultation with the Board of

Directors of the Company.

● The Board of Directors of the Company will allocate the budget for CSR

activities to be undertaken during the year subject to financial performance,

operations of the Company and statutory requirement/ limits. The CSR

Committee will formulate and recommend to the Board the activities to be

undertaken by the Company as specified in Schedule VII to the Act.

● The Company will spend on activities as specified in Schedule VII to the Act

at any location as decided by the CSR Committee.

36
 ● The constitution of CSR Committee and activities undertaken by the Company

will be reflected in the Annual Report of the Company for the respective

financial year.

Composition of CSR Committee:

The CSR Committee consists of the following members:

● Mr. Bhavish Aggarwal - Chairman and Member

● Mr. Ankit Bhati - Member

● Mr. Anvish Bajaj - Member

● Mr. Sandeep kumar Singh will act as Secretary to the CSR Committee.

Responsibilities of the CSR Committee:

The responsibilities of the CSR Committee include:

● Formulating and recommending to the Board of Directors the CSR Policy and

indicating activities to be undertaken.

● Recommending the amount of expenditure for the CSR activities.

● Monitoring CSR activities from time to time.

Governance Policy:

The CSR Policy will be governed by the Companies Act, 2013 and Rules made

thereunder and any other modification or enactment as notified by the Central

Government from time to time.

37
OLA CORPORATE SOCIAL RESPONSIBILITY PROGRAMME:

Ola is one of the leading startup with having major corporate social responsibility

programmes in India. The company is keen to launch many corporate social

responsibility programmes in the near future however it has launched many corporate

social responsibility programmes as it has been mentioned earlier as well. Below are

some major Ola corporate social responsibility programmes started by the company.

1. Ola’s ambulance campaign

Ola is running the PSA across the key social media platforms to create awareness on

the issue. The idea of giving way to transient ambulances will also be integrated in the

training Programme provided to drivers at the time of on boarding as well as regular

training through driver training device on how to acknowledge and act during

emergencies.

2. Ola initiatives cleanliness drive to support Swachh Bharat

With a strength of over 5.5 lakh driver partners on India’s roads. Ola initiates

cleanliness drive to support Swachh Bharat Ola, a transportation platform, flagged off

a cleanliness drive to create awareness and encourage citizens to do their bit for

‘Swachh Bharat’ on 1st October. The on-ground cleanliness drive was carried out in

Kochi, Thiruvananthapuram and Mangaluru. More than 300 Ola employees and driver

partners participated in the drive at The High Court Junction in Kochi, Thycaud

Women & Children Hospital in Thiruvananthapuram and Wenlock Govt Hospital in

Mangaluru.

38
3. Ola boats deployed to support flood relief efforts in Varanasi and Allahabad

In an endeavour to help thousands of citizens affected by the floods and water logging

in Varanasi and Allahabad, Ola, India’s popular mobile app for transportation, today

announced that it has deployed boats to help people in affected areas across the two

cities in Uttar Pradesh. Manned by professional rowers, these boats will help rescue

citizens from flooded zones to safer areas and in distribution of relief material like

food items, drinking water and medicines.

4. Shared mobility solutions from Ola help create a greener

Ola, India’s most popular mobile app for transportation, shared details on how its

shared mobility solutions are making a significant contribution towards reducing

vehicular pollution and addressing traffic congestion in cities across India. As per

latest statistics put together by the Company, Ola Share, India’s first social ride-

sharing platform helped keep 3,75,090 vehicles off the road in Mumbai, since its

launch in February 2016. Apart from lowering the number of cars hitting the road, Ola

Share also helped bring down CO2 emission levels by 7,05,660 kilograms as well as

saving 2,94,024 litres of fuel because of users opting for shared rides on the Ola

platform across the city.

5. CSR arm of Ola has provided 1 crore meals during the pandemic

As part of its nationwide CSR initiative, ‘Drive the Driver’ Fund, Ola Foundation, the

social arm of Ola, has partnered with Robin Hood Army to deliver over 25 lakh free

meals to driver-partners and their families across 20 cities. The meal distribution drive

has so far provided 1 crore meals for this community thereby benefiting thousands of

households across the country.

39
HOW OLA HELPED ITS DRIVERS IN CRISIS:

● INR 20 crore relief fund for driver-partners

● Crowdsourcing platform ‘Drive the Driver’ for drivers across platforms

● Launched ‘Ola Sahyog’ an interest-free micro-credit program for its drivers

● Free masks and sanitizers for drivers-partners

● Issued mandatory safety guidelines for drivers and riders

● Lease commission rebates for driver-partners

● Medical support & covered income loss of up to Rs. 30,000 for infected

driver-partners in India

● Up to 14 days of financial assistance for affected drivers in Australia

OLA initially was a startup which constantly worked on their growth as well as

enhancing customer relations, OLA experimented with many different business

strategies and took every opportunity given to them. A very big part of their success

was focused on user experience which helped them becoming a multibillion-dollar

brand.

40
 Chapter-V:

Conclusions and Suggestions

CONCLUSION:

Ola has seen a tremendous growth in the taxi market sector. There is surely no

looking back for Ola as it is improving day by day in every prospect. Revenue of Ola

has increased almost 10 folds over the past four years. Today, it is the largest cab

service provider in the country. Ola has successfully achieved public support and has

created a buzz about its brand in the market. Furthermore, if some more technological

advancement is done at Ola, then the customer base can be increased by providing

better experience to the customer. Ola now has shifted its focus on target markets and

is focused on providing desired service to the people in the target market. The

economic segregation depending upon the income group and requirement of the

people is well appreciated. On one hand Ola promotes its brand by traditional

methods and on the other hand it also uses the modern techniques of promotion. At

the same time, it does not forget to highlight its name in social safety, creating social

awareness and promoting acts of humanity. The key element in making Ola a

successful brand is the efficient and quick accessibility which is offered by the firm.

The firm not only improves through its intense promotional activities but also due to

the services and comfort offered to users and employees. Ola is making you sluggish.

A single tick gets you a taxicab. Habits are less demanding to develop when the

change required in conduct is minor. What's more, once a habit is shaped, it’s difficult

to backtrack So OLA has been and will be a great technology platform for

transportation and offering flexible options of booking and payment to customers and

41
flexible timings and facilities to drivers. And shortly, we are going to experience a big

boom and great facility of getting our grocery delivered to us with ease. Kudos to the

idea of the founders and something more to make us proud is that it has been started

in India by two genius Indians.

Therefore, by the analysis we conclude that:

● The services offered by Ola are convenient and safe at any time.

● This will also reduce the use of auto rickshaws and people need not worry of

parking as they would reduce using their own personal cars. Hence,

● Such services like Ola/Uber are coming up and will only increase its use in the

future with more advancement using technology and other internet savvy

techniques.

SUGGESTIONS:

With the scarcity of new funds, subsidizing rides will get tougher for Ola and to

remain competitive Ola must improve its ride experience. Ola needs to give urgent

attention towards technology, trust and training to improve ride experience.

Technology:

Ola app is user friendly and intuitive. However, there is a flaw in tracking (GPS

tracking) and as per my experience it is not accurate, there is about 2 min lag. Cab

location on the app is 2 min behind(approx.). I have always experienced this while

waiting for my ride. Anyone can argue that if there is a lag in tracking how does that

impact ride experience. For individual rides (micro, mini, prime etc.) this might not be

a serious issue, however for share rides this is a serious issue. As share rides are

42
becoming quite popular and both Ola & Uber have been aggressively promoting ride-

sharing facilities. Accurate tracking is becoming more and more important.                 

lag in tracking not only hurts the ride experience but it’s a pain for drivers as well.

Most of the co passenger I have shared ride with always take few minutes to board the

cab and this is due to the lag. The app displays that your ride will reach your pickup

location in X min when the cab has already reached the location and then suddenly

app prompt you that your ride is waiting for you. Assume you have taken a share ride

and your cab has reached the pickup location for the second passenger. Your cab has

to wait for the passenger. 

The worst experience and quite frequent one are U turn. Many times, my share ride

had to take a u turn for the next pick up. These types of pickups are patched as the

location of the cab at the application level is behind the pickup location. However, in

real time the cab is ahead of pick-up location. I never had this U turn experience with

Uber and the ride tracking is quite accurate. Pick up locations involving U turn is

quite annoying for the existing passengers and the drivers in a city like Bangalore.

Things become more bitter for driver if the ride is cancelled after taking the U turn.

The driver has wasted time and money (in form of gas) for cancelled pick up and

gained nothing. Ola does not pass on the cancellation fee (As per the information

provided by few drivers) to drivers. Wastage of time hurt both the passengers and

drivers, who always seems to struggle to meet the target of minimum ride for

incentives. 

Fixing lag will help Ola to provide a better ride experience for passengers as well as

drivers.

43
Second technology issue with Ola is its routing algorithm. Ola's routing algorithm

needs improvement. At times Ola adds two passengers on some ride when the

destination of both is in different direction. Once Ola shared a ride to Indiranagar in

Bangalore from Bellandur with a co-passenger who was heading towards silk board

(one of the most congested junctions). This ride took almost double time than usual in

peak hours. Driver agreed with that this route is a detour but he can't help. Current

routing algorithm is giving rise to customer dissatisfaction. Per Ola a deviation of 20

min is permissible in share ride, however this 20 min doesn't not consider the current

traffic situation. A generic routing algorithm is not an ideal solution. Ola must add

some local flavour of traffic situations. Improved routing is not my wish list, with

Uber I experienced a routing issue only once.

Trust:

If anyone has used Ola will have experienced that while booking a cab the app shows

cab few minutes away from your location, however once booking is confirmed you

would have found that the nearest available cab is not allocated to you for your ride.

This is quite unusual for individual rides (micro, mini, prime etc.) and tough to

understand why the cab just opposite to me (that app was mentioning) is not deployed

for me. I have a habit of discussing with drivers to understand their experiences. I

queried a few drivers about this, they told me that to restrict fake booking Ola do not

deploy a cab in proximity up to a certain distance. In case of Uber this is not the

experience. I am sure Uber must have fake booking issues too, and they would have

used some other methods to tackle fake booking. I think Ola must get away with this

functionality to manage fake booking. Ola must trust the integrity of its

drivers/partners and to handle few dishonest partners, if any, must deploy some other

technique.

44
Training:

When you book an Ola ride the chances of driver calling and asking you about your

pick up and drop location are high and this is still common. Whereas with Uber rides

this experience is comparatively less. Querying about location can be very annoying

for passengers sometimes, why to ask about location when the same is already

available on the device. Ola must improve is drivers' training and make them more

aware about the features of driver application. 

Ola must work on the training of its support staff, though interacting with support

staff is rare. I didn't found support to be consistent, for same issue different support

agent communicated different information. Average issue resolution takes more time

too. I found a bit disconnect between marketing and support function as well. 

45
 References

[1]. https://www.olacabs.com/info/about_us

[2]. https://archive.factordaily.com/bruised-weaker-but-olas-bhavish-aggarwal-stands-

almost-tall/

[3]. https://iide.co/case-studies/swot-analysis-of-ola/

[4]. https://www.linkedin.com/pulse/major-strategies-olas-success-edify-accelerators

[5]. http://www.ciim.in/ola-cabs-business-strategy-case-study

[6]. https://yourstory.com/2014/06/ola-taxiforsure-uber/

[7]. https://techstory.in/olacabs/

[8]. http://www.themultiplier.in/2016/02/the-secret-behind-ola-cabs-marketing.html

[9]. https://plus.tofler.in/company/U72900KA2010PTC086596/vitals

[10]. https://entrackr.com/2021/11/ola-losses-accumulate-to-rs-17453-cr-as-revenue-

shrinks-63-in-fy21/

[11]. https://indiacsr.in/tag/csr-of-ola/

[12]. https://www.olacabs.com/info/csr

[13]. https://www.linkedin.com/pulse/major-strategies-olas-success-edify-accelerators

[14]. https://gocardless.com/guides/posts/top-7-financial-ratios/

[15]. http://www.business.com/starting-a-business/key-factors-that-determine-startup-

success/

[16]. http://www.businessinsider.com/5-keys-to-startup-success-2011-5?IR=T

46
[17]. http://www.estartups.co.in/ola-success-story/

[18]. http://taxguru.in/finance/ola-success-story-business-model-future.html

[19]. https://www.linkedin.com/pulse/3-improvements-make-ola-more-competitive-

tapan-dantre

[20]. https://plus.tofler.in/company/U72900KA2010PTC086596/vitals

47
 APPENDIX A: BALANCE SHEET

31/03/20 31/03/20 31/03/20

21 20 19
Balance sheet [Abstract]
Assets [Abstract]
Non-current assets [Abstract]
Property, plant and equipment 895 1,816 5,025
Capital work-in-progress 4,054 0
Investment property 0 0
Goodwill 14,872 14,872 36,736
Other intangible assets 50,100 27,207 29,772
Intangible assets under development 0 355
Non-current financial assets [Abstract]
Non-current investments 2,16,394 2,67,605
Trade receivables, non-current 0 0
Loans, non-current 8,320 530
Other non-current financial assets 15,322 12,318
Total non-current financial assets 2,40,036 2,80,453
Other non-current assets 5,711 8,777
Total non-current assets 3,15,668 3,33,480
Current assets [Abstract]
Inventories 0 0
Current financial assets [Abstract]
Current investments 1,33,064 7,356
Trade receivables, current 8,834 7,152
Cash and cash equivalents 3,889 24,431
Bank balance other than cash and cash equivalents 42,637 2,21,909
Loans, current 484 2,958
Other current financial assets 25,935 33,376
Total current financial assets 2,14,843 2,97,182
Other current assets 3,346 2,223
Total current assets 2,18,189 2,99,405
Total assets 5,33,857 6,32,885
Equity and liabilities [Abstract]
Equity [Abstract]
Equity attributable to owners of parent [Abstract]
Equity share capital 301.6 301.6 240.09
Other equity 4,51,508 5,76,963
Total equity attributable to owners of parent 4,51,809.6 5,77,264.6
Non-controlling interest 0 0
Total equity 4,51,809.6 5,77,264.6
Liabilities [Abstract]
Non-current liabilities [Abstract]
Non-current financial liabilities [Abstract]
Borrowings, non-current 1,288 0
Other non-current financial liabilities 33,467 1,048
Total non-current financial liabilities 34,755 1,048
Provisions, non-current 869 554
Other non-current liabilities 0 0
Total non-current liabilities 35,624 1,602
Current liabilities [Abstract]
Current financial liabilities [Abstract]
Borrowings, current 0 0
Trade payables, current 17,828.4 25,542.4
Other current financial liabilities 23,268 24,301
Total current financial liabilities 41,096.4 49,843.4
Other current liabilities 4,583 3,119
Provisions, current 744 1,056
Total current liabilities 46,423.4 54,018.4
Total liabilities 82,047.4 55,620.4
Total equity and liabilities 5,33,857 6,32,885

APPENDIX B: STATEMENT OF PROFIT AND LOSS

48
 01/04/20 01/04/20
20 19
to to
31/03/2 31/03/2
021 020
Statement of profit and loss [Abstract]
Income [Abstract]
Revenue from operations 68,961 1,98,987
Other income 21,602 26,942
Total income 90,563 2,25,929
Expenses [Abstract]
Cost of materials consumed 0 0
Changes in inventories of finished goods,
0 0
work-in-progress and stock-in-trade
Employee benefit expense 26,102 35,934
Finance costs 1,706 970
Depreciation, depletion and amortization expense 12,942 37,410
Other expenses 42,184 2,32,386
Total expenses 82,934 3,06,700
Profit before exceptional items and tax 7,629 -80,771
Exceptional items before tax -1,40,237 -90,691
Total profit before tax -1,32,608 -1,71,462
Tax expense [Abstract]
Deferred tax 0 0
Total tax expense 0 0
Total profit (loss) for period from continuing operations -1,32,608 -1,71,462
Tax expense of discontinued operations 0 0
Total profit (loss) from discontinued operations after tax 0 0
Total profit (loss) for period -1,32,608 -1,71,462
Comprehensive income OCI components presented net of tax [Abstract]
Whether company has other comprehensive
Yes Yes
income OCI components presented net of tax
Other comprehensive income net of tax [Abstract]
Components of other comprehensive
income that will not be reclassified to
profit or loss, net of tax [Abstract]
Other comprehensive income, net of
-516 -467
tax, gains (losses) on
remeasurements of defined benefit
plans
Other comprehensive income, net of
2,685 34,116
tax, gains (losses) from investments in
equity instruments
Other comprehensive income that will
0 0
not be reclassified to profit or loss, net
of tax, others
Total other comprehensive income that
2,169 33,649
will not be reclassified to profit or loss,
net of tax
Other comprehensive income that will
0 0
be reclassified to profit or loss, net of
tax, others
Total other comprehensive income that
0 0
will be reclassified to profit or loss, net
of tax
Total other comprehensive income 2,169 33,649
Total comprehensive income -1,30,439 -1,37,813
Comprehensive income OCI components presented before tax [Abstract]
Whether company has comprehensive income OCI
No No
components presented before tax
Other comprehensive income before tax [Abstract]
Components of other comprehensive
income that will not be reclassified to
profit or loss, before tax [Abstract]
Other comprehensive income, before
2,685 34,116
tax, gains (losses) from investments in
equity instruments

49
 Other comprehensive income, before
-516 -467
tax, gains (losses) on
remeasurements of defined benefit
plans
Other comprehensive income that will
2,169 33,649
not be reclassified to profit or loss,
before tax
Total other comprehensive income, before tax 2,169 33,649
Total other comprehensive income 2,169 33,649
Total comprehensive income -1,30,439 -1,37,813
Earnings per share explanatory
Earnings per share [Abstract]
Earnings per share [Line items]
Basic earnings per share [Abstract]
Basic earnings (loss) per share from continuing operations [INR/shares] -609 [INR/shares] -825
Total basic earnings (loss) per share [INR/shares] -609 [INR/shares] -825
Diluted earnings per share [Abstract]
Diluted earnings (loss) per share from continuing operations [INR/shares] -609 [INR/shares] -825
Total diluted earnings (loss) per share [INR/shares] -609 [INR/shares] -825

50