Companies in Delhi

There are variety of companies in Delhi ranging from trading, construction, business services, real estate, etc. to manufacturing, transport, social services, etc. As of March 2015, there were 272,369 companies registered in Delhi state (this doesn’t include companies in NCR). Not surprisingly, more than 33% of these companies belongs to service sector. Thanks to the fact that India has one of the fastest growing service sector, this number is going to increase further. Number of service oriented companies was as large as three times the next category of trading companies. An infographic below shows the percentage of companies by the type of business they were involved in, as of March 2015.

Companies in delhi (by business activity - Percentage)
Companies in Delhi (by business activity – Percentage)

What was surprising to me was fact that there were a significant number of social services companies in the state, which outnumbered financial companies, machinery manufacturing companies and transportation companies. This might be due the fact that a significant number of NGOs registered in Delhi are used as money laundering devices. [http://www.hindustantimes.com/delhi/99-ngos-are-fraud-money-making-devices-hc/story-2AMyh5VMGA0edUtvtRnAMP.html]

Further, if we look at data pertaining to number of companies by Paid-up Capital, we can find that most of the companies have exactly the bare minimum paid-up captal of Rs 100,000. This could be because a lot of companies are setup as dummy just to exploit tax laws and government schemes. Below is the data shown for companies in Delhi (by paid up capital)

Companies in Delhi (by paid up capital - March 2015)
Companies in Delhi (by paid up capital – March 2015)

The status of various companies as of March 2015 is listed below:

Status Number of companies
Active 197,051
Active (in progress) 27
Amalgamated 3,078
Converted to LLP 189
Converted to LLP and Dissolved 532
Dissolved 109
Dormant 28,168
Dormant (u/s 455 of CA 2013) 65
Liquidated 54
Strike Off 40,966
Under Liquidation 689
Striking Off (under process) 1,441

Other facts about companies in Delhi:

  • The top four companies (by paid up capital) in Delhi were Air India, BSNL, DMRC, and ONGC.
  • Among 272,369 companies registered in Delhi, more than 72% were active companies, 15% were struck off from register and 10% were deemed as dormant as of March 2015.
  • Number of publicly listed companies were 19,231, while number of private companies in Delhi was 252,738 as of March 2015; remaining 400 were One Person Companies

Significance of Chronbach Alpha

To fulfill my objective of having an MBA degree, I had to do a lot of research. However impractical it may seem but my college demands 4-5 research projects to be done either as assignments or for the fulfillment of course in duration of 2 years. The quality of my research might not have been at fullest level of professionalism, partly because of research bias in data collection. But still, I have learned the most adored skill of data analysis.

I enjoy analyzing data and make meaningful conclusion out of it, but for some people it might be a daunting task to do. So, I would like to put some things in most simplistic matter to help you learn more about it. Here I am trying to explain a reliability measure, Chronbach Alpha in simple terms.

What is Chronbach’s Alpha?

Chronbach’s Alpha is one of the most widely used test to check the internal consistency of any data collected for marketing research, this is an extension to “KR-20” test which is used over dichotomous items for testing internal consistency or reliability of data collected.

What does it measure?
Chronbach’s Alpha measures the similarity of responses to individual items measuring same construct in a scale for a given case. This might be a difficult sentence to digest, so I would like to put up an example in the end to show, What it measures and how to draw conclusions from its value.

What is the significance of value of Chronbach’s Alpha?
Value of Chronbach’s Alpha is generally between 0 to 1, it might be negative sometimes. But it happens generally when the data is not re-coded properly. Thus, it is absolutely important to re-code the data measuring a particular construct and then apply the reliability test (Cronbach Alpha). Further, it should be only applied to variables measuring a particular construct. There is no use of applying it to demographics data of sample.
Values of Alpha close to 1 means there is more similar responses to various items in questionnaire. However, values close to 0 means there is very less correlation among responses of individual questions. This can be better explained through an example as shown below-

Example-
In the end, I would like to share a simple example using SPSS for data analysis, to show how Chronbach’s Alpha is calculated and interpreted. Here I first create a sample file in excel to be used for Reliability analysis in SPSS.

Let me know if this explains everything through you comments, also post some suggestions/corrections (if required).