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A REPORT

ON

INVESTMENT OPPORTUNITY IN STOCK MARKET WITH RESPECT

TO MANUFACTURING SECTOR

By

Debabrata Bag

Enrollment No

(11BSPHH011149)

IBS HYDERABAD

ICFAI UNIVERSITY

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A REPORT

ON

INVESTMENT OPPORTUNITY IN STOCK MARKET WITH RESPECT

TO MANUFACTURING SECTOR

By

Debabrata Bag

Enrollment No

(11BSPHH011149)

A Report submitted in partial fulfillment

Of the requirements of

MBA Program of

IBS Hyderabad

Distribution List:

Prof. K. Rajyalakshmi Mr. P. Shashi Kumar

Professor Advisory Manager

IBS Hyderabad Sharekhan Ltd.

Date of Submission: 4th

June, 2012

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ACKNOWLEDGEMENTS

I express my sincere thank to Mr. P Shashi Kumar for giving me an opportunity to work as part

of his team through this summer project.

I would like to offer my sense of indebtedness towards my Company Guide Mr. P Shashi Kumar,

Advisory Manager, Sharekhan Ltd. for the continuous support and guidance extended towards

the completion of this project.

Gracious help from various sources have contributed tremendously to the completion of this

project work.

I am also grateful to my Faculty Guide, Prof. K. Rajyalakshmi, who has provided me with valuable

feedback at every stage of the project. His feedback has greatly helped me to learn about my

strengths and identify my weaknesses. He is available for help at every juncture of the project

and has provided us with his able guidance throughout the project.

Last but not the list, I am also grateful to all my colleagues at Sharekhan Ltd. who have gone out

of their way to help and support me on various assignments during my internship. It was a great

learning experience working as a part of the Business Performance Services team at Sharekhan

Ltd.

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CONTENTS

TOPIC PAGE NO.

1. EXECUTIVE SUMMARY..…………………………………………………….………6

2. INTRODUCTION OF THE STUDY

2.1 Introduction……………………………………….…………………………….…...7

2.2 Objective of the Project…………………………….……………………………......7

2.3 Research Methodology……………………………….……………………………...7

2.4 Data Collection…………………………………………………………………........8

2.5 Scope……………………………………………….………………………………..8

2.6 Limitations…………………………………………………….……………………..9

3. ECONOMY ANALYSIS

3.1 Introduction……………………………………….………………………………10

3.2 Growth Rate of India………………..…………………………………………....10

3.3 Development Indicators…………………………………………………………..11

3.4 GDP of India……………………………………………………………………...11

3.5 Inflation of India………………………………………………………………….12

3.6 Stock Market Trends……………………………………………………………...13

3.7 Currency System………………………………………………………………….14

3.8 Foreign Trade…………………………………………………………………......15

3.9 Foreign Direct Investment………………………………………………………..18

3.10 Foreign Exchange Reserve…………………...……………...……...…………...22

3.11 Trends in Exchange Rate……………………………………………...…………22

3.12 Key Industry check………………………………………………...…………….23

4 INDUSTRY ANALYSIS

4.1 Introduction………………………………………………………………...………26

4.2 India‟s Manufacturing Industry Scenario…………………………..………………26

4.3 Importance of Manufacturing Sector in India‟s Economic Growth……..…………27

4.4 Manufacturing Industry Structure in India…………………………………..……..27

4.5 Steps Taken by government………………………………………………..……….29

4.6 Govt. Policies for FDI………………………………………………………..……..30

4.7 Financial Year 2011-12 for Manufacturing Industry…………………………..…...31

4.8 Major Players in the Manufacturing Industry…………………………………..…..31

4.9 Prospects of Manufacturing Industry in India………………………………….…..33

4.10 Analysis of Manufacturing Industry under Porter‟s Five Forces Model…….…..35

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5 FINANCIAL SYSTEM OVERVIEW

5.1 Introduction………………………………………..……………….……………….37

5.2 Capital Formations and Economic Development……………….……….………….37

5.3 Indian Financial System…………………………………….….…………………...38

5.4 Financial Instruments in the Market………………………….………….………….38

5.5 Conceptual Framework of How the Financial System Works………….…………..40

5.6 Stock Market………………………………………….…………….………………41

5.7 Market Participants………………………………………………….……………...42

5.8 Importance of Stock Market……………………………………….……………….42

5.9 Impact of Stock Exchange in India………………………….…………………......42

5.10 Trading in India………………………………………….…………..……..…..43

6 COMPANY ANALYSIS

6.1 Introduction about Sharekhan……………………………………………………...45

6.2 Vision………………………………………………………………………………46

6.3 Mission……………………………………………………………………………..46

6.4 Reason to choose Sharekhan Ltd…………………………………………………..46

6.5 Management………………………………………………………………………..47

6.6 Product and Services of sharekhan…………………………………………………48

6.7 Types of Account…………………………………………………………………..48

6.8 Research section in Sharekhan…………………………………………………......52

7 PROJECT SPECIFIC ANALYSIS

7.1 Company Analysis………………………………………………………………….53

7.1.1 NTPC…………………………………………………………………...55

7.1.2 TATA POWER…………………………………………………………65

7.1.3 TATA STEEL………………………………………………………......73

7.1.4 JSW STEEL………………………………………………………..…...81

7.1.5 L&T……………………………………………………………………..87

7.1.6 BHEL………………………………………………………………..….96

7.2 Financials of Different Companies…………………………………………….…...104

7.3 Technical Analysis………………………………………………………………….108

7.4 Technical Analysis of Different Companies………………………………………..112

7.5 Peer Company Evaluation of Different Companies………………………………...128

8 CONCLUSION & RECOMMENDATION………………………………………………..130

9 ON-JOB TRAINING AND LEARNING FROM SIP……………………………………...136

10 REFERENCES……………………………………………………………………………..141

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Executive Summary

This project is an attempt to understand the basics of stock market. A project, which will make

me well, versed with the market happenings ups & downs in the stock market.

The first part will give a brief introduction about the study and its objective. Then it will

followed by methodology which will be followed here throughout the report and then scope and

limitation.

The second part gives the detail of fundamental analysis of manufacturing sector and how to

proceed further.

Next I have started with Economy of country which helps us to know the current scenario of our

country in terms of economy which taken into A/c GDP levels along with future predictions,

current inflation rate, currency of the country, service industry of the India & FDIs in India.

The next part talks about the Industry part and manufacturing Industry scenario in India, Govt.

Policies, FDIs for particular this sector etc.

Then I talked about Financial System Overview and Indian Financial System and about trading

part.

Then the company analysis comes. It started with introduction of Sharekhan Ltd, Vision,

Mission, Different Product and Services and the facilities of different types of product and

services.

Next I started with Project Specific Analysis for companies like NTPC, TATA POWER, TATA

STEEL, JSW STEEL, L&T and BHEL. These companies analysis comprise of Overview of the

company, Vision, Mission, Management, Shareholding Pattern, Projects and Investments,

Subsidiaries, Recognition, Prospects, Core Values, SWOT Analysis and Financials of

Companies.

The Conclusion & Recommendation based on Company‟s Financial Analysis and Technical

Analysis. It helps us take a prediction as to how strong the stock is for future investments.

Further it also helps the investors to be cautious in investing in the company by giving the risk

factors associated with the company.

Then I have written my contribution during my SIP project and my learning from SIP.

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INTRODUCTION OF THE STUDY

INTRODUCTION

The following project is a study of the Indian Stock Market & an investment opportunity with

respect to manufacturing sector in India.

The capital market (securities markets) is the market for securities, where companies and the

government can raise long-term funds. The capital market includes the stock market and the

bond market. A stock market is a market for the trading of company stock and derivatives.

The analysis of stock will give me the opportunity to understand broadly the behavioral pattern‟s

of different equity, to know the trading, clearing & settlement aspect of stock market. This

project will help me to understand the contribution of stock market in the Indian Economy. In a

single market day huge amount of money flows and millions of share exchange take place. This

share exchange leads to huge amount of money inflow and outflow from a firm. The company

whose shares are listed in stock exchange and the govt. plays a vital role through the policies

which had been formed in the market, helps them to raise long term funds which can be used for

benefit & the future growth of the companies and also give back some part of their profit to the

investor in the form of dividends.

Also through this project I will try to derive the analysis of the manufacturing sector concluding

with the opportunities of investing in the sector.

OBJECTIVE OF THE PROJECT

Gain practical knowledge in Share Trading and Familiarize with all the workings of

Online Trading.

Study the present behavior & predicting the future behavior of Equity in Stock Market.

Understand the activities of E-Broking Firm

Analyze the Financial Market & the share movements in order to study the prospects of

investing in a particular stock or sector.

RESEARCH METHODOLOGY

Research is an active, diligent and systematic process of inquiry aimed at discovering,

interpreting and revising facts. This intellectual investigation produces a greater understanding of

events, behavior or theories and makes practical applications through laws and theories. The

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term research is also describe as collection of information about a particular subject, and is

usually associated with science and scientific method.

My first task before starting the process was to understand what fundamental analysis is all about

& what the steps to achieve it are. For this my first step was going through various Internet sites

& reading about the methods of fundamental analysis & the usefulness of the whole process.

After reading through the whole data I then went about understanding fundamental analysis with

the help of Company Guide Mr. P Sashi Kumar and Faculty Guide Prof. K. Rajyalakshmi.

Once I got to know about Fundamental analysis, my task was to select companies in the

manufacturing sector so that I can conduct the analysis. After doing a thorough research on the

manufacturing sector I have chosen NTPC, BHEL, TATA POWER, TATA STEEL, JSW

STEEL, L&T and Govt. Infra Bonds for my research project.

The next step leads me to knowing the history about the companies along the growth prospects

for the future.

Once this was done I went ahead & started my analysis on the companies & concluded the

project with my say on the future investment prospects in those companies.

DATA COLLECTION:

Primary data for a project is the first hand information regarding the project being

studied. In this regard the primary data for this project would be getting the necessary

information from the company management by an interview, telephonic conversation or

direct mail.

Secondary data for a project would be the collection of information that has a bearing on

the outcome of the project from secondary sources like press release, internet, news etc.

The data collected for this project was from a secondary source. The data was compiled with the

help of sources like Internet, Press release, News articles etc. in this research project primary

data could not be gathered as the company officials could not be contacted for a one to one

interview or a telephonic interview.

SCOPE

The scope of this project is limited to only one sector i.e. manufacturing sector. The

manufacturing sector comprises of different sector like Power, Steel, Aluminum, Zinc,

Infrastructure, Automobile etc. In this project I have taken three sectors for my analysis.

Sectors are Power, Steel and Infrastructure. Within these three sectors I have chosen Six

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companies for my analysis – NTPC, TATA POWER, BHEL, TATA STEEL, JSW

STEEL and L&T.

This project is concern with only manufacturing sector and restricted to above those

companies. The project does not extend its scope to any other sector of companies.

Source of information for this project is only secondary data. The data about the

manufacturing sector, the Govt. Policies with respect to the sector, and the information

about the companies is all gathered from secondary sources, available on the websites,

annual reports, business magazine and journals.

LIMITATIONS

To understand the overall working of share market, the period of 12 weeks is not enough.

Moreover, very few investor and agents have a detail knowledge of the study.

The data provided by investor and agents can‟t be held true as 100% correct.

Primary data available but it is very much difficult to get because there is very little

possibility to interact with one to one management‟s people of different companies.

This field is requiring with very deep fundamental & technical knowledge

High risk involve while trading on behalf of the clients under the guidance of RM

Acquiring new clients it was the tough task to perform

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ECONOMIC ANALYSIS

Introduction

In a Top-Down approach first and foremost thing is overall evaluation of general economy. The

economy is like the tide and the various companies and industry groups are like boats. With the

expansion of economy most companies and industry groups expand and with the declination of

economy most companies and sectors usually suffer. So, it is very much important to study the

economy.

According to economic experts and various studies conducted across the globe envisage India

and China to rule the world in the 21st Century. For over a century the US has been the largest

economy in the world but major developments have taken place in the world economy since

then, leading to shift of focus from the US and the rich countries of Europe of the two Asian

giants- India and China. The European Union has seen the greatest decline in GDP share by

6.1%. Within Asia, the rising share of China and India has been increasing since 1990.

Since Independence Indian Economy has thrived hard for improving its pace of development. In

the past few years the cities in India have undergone tremendous infrastructure up-gradation but

the situation is not similar in most part of rural India. Similarly in the realm of health and

education and other human development indicators India‟s performance has been far from

satisfactory, but showing a wide range of regional inequalities with urban areas getting most of

the benefits. In order to attain the status that currently only a few countries in the world enjoy

and to provide a more egalitarian society to its mounting population, appropriate measures need

to be taken.

GROWTH RATE OF INDIA¹

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Development Indicators:

The productivity scenario of India‟s economy is experiencing a faster rate of growth in 2006-08

and 2010-11. Some of the development indicators of the India‟s economy are as follows:

Both the Savings and Investment rates in the country are experiencing a faster rate of

growth.

The age profile in India among the global population over the world is considered to be a

better dividend for the country‟s economy. Young population group of India‟s economy

has significantly added to country‟s growth.

Policy measures undertaken in India recently have helped a lot in the economic progress.

Economic growth has created huge employment opportunities on the one hand and

reduced poverty on the other. With manifold objectives in mind, the government has

come forward with high investments on social sector development particularly on health,

education and infrastructure related developments.

The Government of India in the same direction has undertaken many steps to train and

educate its masses for getting employment.

GDP of INDIA

India‟s GDP crossed the trillion-dollar mark and also joined the elite club of 12 countries with a

trillion dollar economy. Countries that have breached trillion dollar GDP level in the past are the

US, Japan, Germany, China, UK, France, Italy, Spain, Canada, Brazil and Russia.

The outlook for India‟s GDP growth changed substantially during the course of 2011-12. The

tone at the beginning of the year was that India has not only emerged relatively unscathed from

the global financial crisis of 2008, but has also returned to its trend growth rate of 8% plus.

However, as the year progressed, pressure points emerged on the domestic front, due to stubborn

inflation and policy logjam, and on the global font, due to the Euro zone debt crisis.

Consequently, market sentiments and economic growth took a beating and, as per CSO‟s

estimate growth in 2011-12 is 6.9%.

India‟s large Service Industry accounts for 57.2% of the country‟s GDP but it is expected to

come down from 9.4% in 2011-12 to 8.7% in 2012-13 due to lower growth in hotels, transport,

communication, community, social and personal services.

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Industrial sectors contribute 28.6% of the country‟s GDP. However, industrial growth is

expected to improve from the 2011-12 levels of 3.9% to 5.6% in 2012-13 due to low base and

monetary easing by RBI in view of moderation in inflation.

Agricultural sectors contribute 14.6% of the country‟s GDP. In the event of normal monsoon,

agriculture is expected to grow at 3% in 2012-13.

Inflation in INDIA

India faces a very high risk of a return to rising inflation with the government continuing with its

spending spree and the central bank easing liquidity. According to Morgan Stanley the recent

moderation was largely due to a delay in hike of administered product price.

As on report published from New Delhi on 16th

April, 2012, India‟s Wholesale Price Index based

Inflation rate eases lower to 6.89% in March2012.

Inflation rate in India decreased slightly to 6.89% in March 2012 from 6.95% in February 2012

based on 2004-05 base year. The rate of Inflation was 9.68% in March 2011.

Office of the Economic Adviser (OEA) of the Ministry of Commerce and Industry, Government

of India, released the latest monthly and annual Inflation rate data on Monday 16th

April, 2012.

WHOLESALE PRICE INDEX (WPI) Break-up for March 2012:

Primary Articles (Weight in WPI 20.11%): 9.62% Vs 6.28% Month on Month (MOM)

Food Articles (Weight in WPI 14.34%): 9.94% Vs 6.07% Month on Month (MOM)

Non-Food Articles (Weight in WPI 4.26%): -1.20% Vs -2.56% Month on Month (MOM)

Fuel and Power (Weight in WPI 14.91%): 10.41% Vs 12.83% Month on Month (MOM)

Manufacturing Products (Weight in WPI 64.97%): 4.87% Vs 5.75% Month on Month

(MOM)

The Inflation rate in India based on the WPI. In INDIA WPI is more closely observed than

Consumer Price Index (CPI), as it includes a higher number of Products. Manufactured products

have a weight of about 65% in the WPI basket.

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WHOSALE PRICE INDEX Based Inflation Rate in India:

Month April

‟11

May

‟11

Jun‟

11

July‟

11

Aug‟

11

Sep‟

11

Oct‟

11

Nov‟

11

Dec‟

11

Jan‟

12

Feb‟

12

March

‟12

Inflati

on

(%)

9.74 9.56 9.51 9.36 9.78 10.0 9.87 9.46 7.74 6.89 6.95 6.89

During most part of 2011-12, Inflation remained a major macroeconomic risk and policy

challenge for both RBI and the government. RBI continued with its monetary tightening

measure, which started in 2010-11. Although year-on-year Inflation has begun to ease since

December 2011, the moderation has been driven primarily by a seasonal drop in prices of food

items. The sustained firmness in oil prices- that limited its pass-through into retail prices-

continues to pose an upside risk to domestic Inflation. However, it is expected that WPI- based

inflation to average 6.2% in 2012-13 because of: (I) Low price power of corporate and (II) High

base of last year.

STOCK MARKET TRENDS

According to the Experts year 2012 stock market trend may be positive but they are also saying

that the impact of what all went wrong in 2011 may be felt this year too. In 2011, just when we

thought the 2008 global financial crisis was behind us – with stock markets rallying all through

2009 and 2010 – came another shocker, the European Debt crisis. After rising from 15,000 levels

in January 2009 to around 21,000 in November 2010, the BSE SENSEX has slipped to the

16,000 level. Although this is not as steep a fall as that in 2008, there‟s uncertainty over the

future.

According to Mr. Dipen Shah, head of Fundamental Research, Kotak Securities, “The issues

faced by the US and Europe, which have unsustainable debt levels, have pushed some countries

on the verge of bankruptcy. The European countries are making cosmetic changes that may not

solve their structural problems.”

Apart from Global Factors, “India is failure to solve its problems ensured its stocks

underperformed most markets in 2011. According to Mr. Lalit Thakkar, MD, Institutional

Broking, Angel Broking, “India is facing its own set of issues in the form of supply constraints

and policy paralysis that have brought fresh investments to a halt.” The scale of supply problems

in such important sectors as energy, food and mineral resources is mind-boggling. India has an

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issue on the food supply front due to structural problems such as small land holdings and lack of

corporatization of agriculture.

Another dark cloud on the horizon as we move into 2012 is the depreciation of the rupee against

the US dollar in the last few months. This had a big impact on companies that depend on imports

and a handful of large companies playing the interest arbitrage game between their domestic and

foreign loans. This can be another spoilsport in 2012.

Too much volatility in stock market is a serious concern for corporate as well as potential

investors.

Source: www.finance.yahoo.com

CURRENCY SYSTEM

The present currency system in India (i.e., after World War II) is managed by the RBI and is

based on inconvertible paper currency system. It has two aspects: (I) Internal Aspect and (II)

External Aspect.

The Internal Aspect deals with the circulation of coins and currency notes, while the external

aspect deals with the external value of currency and the way it is regulated.

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The main features of the present currency system in India are given below:

A. Coins

B. Currency Notes

FOREIGN TRADE

As per EXIM Bank India‟s total merchandise trade increased over three-fold from US$ 252

Billion in FY 2006 to US$ 792 Billion in FY 2012. Both exports and imports have trebled during

the period. Trade-GDP ratio increased from 30.2% in FY 2006 to 42.5% in FY 2012. Exports-

GDP ratio increased from 12.3% in FY 2006 to 16.3% in FY 2012.

If we see the current scenario of Export then we can say that the direction of Export is moving

towards the Southern Countries, particularly Asia and Africa region due to market volatility in

USA & EURO Zone. Share of Asia, Africa and LAC regions increased sharply from 45% in

2000-01 to 63.2% in 2011-12: of this, share of Asia region rose from 39% to 52% during this

period. It is expecting that Future trade flows to be geared towards the developing nation.

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India’s Major Trading Partners

India’s Trade Basket

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India’s Trade in Services

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FDI (Foreign Direct Investment)

In 1980s India was maintaining a selective approach towards Foreign direct Investment (FDI).

The selectivity in approach was governed principally by the then objective of technology transfer

and export promotion that the policy makers expected the foreign capital to meet. A number of

measures had been designed to maximize the perceived benefits from foreign investments while

simultaneously keeping the costs low.

In July 1991, the government introduced a number of changes in the country‟s regulatory

policies. To attract FDI the changes that had been made by Govt. of India are as follows:

Delicensing

De-reservation of many public sector reserved areas

Registration under the MRTPA

Removal of 40% ceiling of Foreign Equity under FERA

Lifting the restriction on of foreign brand names in the local market

Withdrawal of the restriction on entry into low technology consumer goods.

A number of studies in the recent past have highlighted the growing attractiveness of India as an

investment destination. According to Goldman Sachs (2003), the Indian economy is expected to

continue growing at the rate of 5% or more until 2050.

According to the A.T. Kearney (2007), India continues to rank as the second most attractive FDI

destination, between china at number one and the US at number three. In 2005 India displaced

the United States and gained the second position. FDI inflows in 2006 touched $ 19.6 Billion and

in 2007, total FDI inflows in India stood at $ 23 Billion, showing a growth rate of 43.2% over

2006. In 2008, total FDI inflows into India stood at $35 Billion.

Due to high market volatility in US and Euro Zone Debt crisis the investors now prefer India and

China. Apart from global crisis another reason for investment is highly skilled labor with

minimum wages.

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India’s Direct Investment Flows

FDI is prohibited in²:

Retail Trading (Except single brand product retailing)

Lottery Business including Govt. /Private lottery, online lotteries, etc.

Gambling and Betting including casinos etc.

Chit Funds

Nidhi Company

Trading in Transferable Development Rights (TDRs)

Real Estate Business or Construction of Firm Houses

Manufacturing of Cigars, cheroots, cigarolls, of tobacco or of tobacco substitutes

Activities / Sectors not open to private sector investment e.g. Atomic Energy and

Railway Transport ( other than Mass Rapid Transport Systems)

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FDI is permitted in:

Sl.

No. Sector/Activity

% of FDI Cap/Equity Entry Route

1 Agriculture& Animal Husbandry 100 Automatic

2 Tea Plantation 100 Government

3 Mining ( Metal & non-Metal, Coal

& Lignite, 100 Automatic

4

Mining and mineral seperation of

titanium bearing minerals and ores,

its value addition and integrated

activities

100 Government

5 Petroleum & Natural Gas 100 Automatic

6 FDI in MSEs (as defined under Micro, Small and Medium Enterprises Development Act, 2006

(MSMED, Act 2006) will be subject to the sectoral caps, entry routes and other relevant sectoral

regulations.

7 Defence 26 Government

8 Terrestrial Broadcasting FM (FM

Radio)

26 (FDI, NRI & PIO

investment and portfolio

investment)

Government

9 Cable Network 49 (FDI, NRI & PIO

investment and portfolio

investment)

Government

10 DTH

49 (FDI, NRI & PIO

investment and portfolio

investment) Within this limit,

FDI component not to exceed

20%.

Government

11 Newspaper & Magazine (News &

Current Affairs)

26 (FDI and investment by

NRIs/PIOs/FII)

Government

12 Magazine (Scientific &

Technical/Specially journals ) 100 Government

13 Airports (Greenfield projects)

100 Automatic

14 Airports (Existing projects) 100

Automatic upto 74%,

Government route

beyond 74%

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15 Construction Development:

Townships, Housing, Built-up

infrastructure

100 Automatic

16 Industrial Parks- new and existing

100 Automatic

17 Satellites- Establishment and

Operation as per ISRO gudielines 74 Government

18 Private Security Agencies 49 Government

19 Telecom Sevices 74

Automatic upto 49%,

Government route

beyond49% and upto

74%

20 ISP with gateways 74

Automatic upto 49%,

Government route

beyond49% and upto

74%

21 Cash & Carry Wholesale Trading/

Wholesale Trading (Including

sourcing from MSEs)

100 Automatic

22 E-commerce activities 100 Automatic

23 Single Brand Product Retail

Trading 100 Government

24 Banking-Private Sector

74 including investment by FIIs

Automatic upto 49%,

Government route

beyond49% and upto

74%

25 Banking-Public Sector 20 (FDI & Portfolio

Investment) Government

26 Credit Information Companies

49 (FDI & FII) Government

27 NBFC 100 Automatic

28 Phamaceuticals (Greenfield) 100 Automatic

29 Phamaceuticals (Existing) 100 Government

30

Source: Ministry of Commerce and Industry Government of India

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FOREIGN EXCHANGE RESERVE

India‟s Foreign Exchange Reserve rose by $ 758.3 million to $295.361 billion in the week ending

April 27 even as RBI sold dollars on May 05, 2012 to keep exchange rate volatility under leash.

Forex dealers said the central bank had intervened in the market selectively while the rupee closed

the week under review at 52.54 a dollar. Foreign currency assets rose by $736.4 million to $260.955

billion, the central bank said in its latest weekly statistical report. Foreign currency assets contribute

90% to the country‟s reserves, and the change reflects revaluation of overseas currencies including

dollar, euro and pound sterling.

Official data showed that the country‟s reserve position in the IMF rose $8.7 million to $2.913

billion and SDR rose $13.2 million to $4.470 billion while valuation of gold reserves remained

unchanged at $27.023 billion.

TRENDS IN EXCHANGE RATE

Rupees are used in a number of countries including India and Pakistan. The Indian Currency is

issued by the RBI. The Indian Rupee exchange rate is measured against six currency trade weighted

indices. These currencies belong to countries that have a strong relationship with India. Within these

mostly traded currencies are USD, GBP, EURO and YEN.

The Exchange Rate of the Indian Rupee (or INR) is determined by market conditions. However, in

order to maintain effective exchange rates, the RBI actively trades in the USD/INR currency market.

The rupee currency is not pegged to any particular foreign currency at a specific exchange rate. The

RBI intervenes in the currency markets to maintain low volatility in exchange rates and remove

excess liquidity from the economy.

Source: www.rbi.gov.in

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According to the graph we can say that Rupee is depreciating since April‟12. In 4th

May 2012 the

central bank is said to have sold heavily in the forex market to curb the Rupee‟s sharp fall after the

currency hit a fresh four month low of 53.92/$1 intraday.

The depreciation that the rupee has seen over the past few weeks has evoked several reactions from

different sector the economy. They claim that the industry will be affected at least at the two fronts.

Firstly they will not be able to meet their target. Secondly, the burden of rupee depreciation will be

borne by importer as they will be sufferer.

KEY INDUSTRY CHECK

a) MANUFACTURING SECTOR

Country‟s economic potentiality is truly reflected by the growth rate of its manufacturing sector.

Most of the developed countries are strong enough in their manufacturing sector. Though the

services sector in India has brought faster economic success, still the manufacturing sector plays an

important role on the ground of sustainability.

In India, though the manufacturing sector is growing at a faster pace still it has failed to some extents

with regards to its percentage share in the total GDP. The growth rate of manufacturing sector in the

country has reached at a two-digit percentage growth in the mid of year 2006-07.

Both Government as well as the private sectors has come forward for the development of the

manufacturing sector of the country. More investments are being proposed in the sector particularly

capital goods, consumer durables, and some non-durable goods.

Moreover, according to a study by ASSOCHAM, India will emerge as the fourth strongest economy

among the G-20 countries after China, Russia and South Korea from the global crisis, given its

robust forex reserves, high GDP growth rate and various fiscal and monetary measures taken to

tackle the downturn.

Industry body FICCI, in its latest quarterly survey, said 36% of the 336 manufacturing units and

associations who participated in it expected growth in manufacturing to revive in the last quarter.

The survey “projects a revival in the growth of the manufacturing sector in the fourth quart of 2011-

12 after the sector‟s growth almost bottomed out in the third quarter.

However, the growth is expected to be modest.”

b) SERVICE SECTOR

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The Service Sector of Indian Economy has brought much success in the recent years. It constitutes a

larger share in the total GDP. The growth rate of services sector in India is faster than any other

sectors. It constitutes more than 50% of the total GDP in the country.

In 2010, the share of services in the US$63 trillion world GDP was nearly 68%, as in 2001. India‟s

performance in terms of this indicator is not only above that of other emerging developing

economies, but also very close to that of the top developed countries. Among the top 12 countries

with highest overall GDP in 2010, India ranks 8 and 11 in overall GDP and services GDP

respectively. While countries like the UK, USA, and France have the highest share of services in

GDP at above 78%, India‟s share of 57% is much above that of China at 41.8%. In 2010 compared

to 2001, India is the topmost country in terms of increase in its services share in GDP (7% points)

followed by Spain and Canada (5.3% point each), the UK (4.5% points), and Italy (3.2% points). In

terms of Compound Annual Growth Rate for the period 2001-10, china at 11.3% and India at 9.4%

show very high services sector growth.

Performance in Services: International Comparison

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Growth rate of GDP and Service sector GDP

Share of different Services categories in GDP at factor cost (current prices)

The share of services in India‟s GDP at factor cost (at current prices) increased from 33.5% in 1950-

51 to 55.1% in 2010-11 and to 56.3% in 2011-12 as per Advance Estimates (AE). If construction is

also included, the service sector‟s share increases to 63.3% in 2010-11 and 64.4% in 2011-12. With

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a 16.9% share, trade, hotels, and restaurants as a group is the largest contributor to GDP among the

various services‟ sub-sectors followed by financing, insurance, real estate, and business services

with a 16.4% share. Community, social and personal services with a share of 14.3% is in third place.

Construction, a borderline service inclusion, is at fourth place with an 8.2% share.

INDUSTRY ANALYSIS

When stocks move, they usually move as groups; there are very few stocks which are out of this

rule. Many times it is more important to be in the right industry than in the right stock. To assess an

industry groups potential, it would be consider the overall growth rate, market size, and importance

to the economy. While the individual company is still important, its industry group is likely to exert

just as much or more influence on the stock price.

INTRODUCTION

Manufacturing can be defined as physical and/or chemical transformation of materials into products

on a large scale using machinery or capital equipment, in contrast to production of hand made goods

for personal use. The products provide utility or satisfaction to human/living beings. They may take

the form of final consumption goods, semi-finished goods (parts and raw materials) or capital goods

(used for making final products). Associated activities such as blending of materials, assembly of

components, and finishing (painting, heat-treating, packaging, etc.) are also treated as part of

manufacturing.

The traditional definition of manufacturing associates it with economies of scale, implying standard

parts. This is owing to the high cost of R&D, tooling and production facilities for a specific product,

which need to be amortized over a large number. Thus, exclusive and custom-made products are

expected to have high value and cost. This gap is asymptotically reducing to zero because of flexible

and direct manufacturing systems. Mass manufacturing is giving way to mass customization.

INDIA‟S MANUFACTURING INDUSTRY SCENARIO

The liberalization of the economy has opened new windows of opportunity for manufacturing sector.

Increasingly the success of manufacturing industry is dependent on innovations, research and

development. Tailoring the EXIM policy to promote exports and aligning the imports duties to meet

WTO commitments further contributed to this development. It is critical not only to remain

competitive but also, significant advantages can be gained by developing and commercializing new

technologies.

the size of this sector is US $ 792 Billion. The engineering manufacturing sector comprises of heavy

engineering (70%) and light engineering (30%).

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India‟s growing integration with the global economy and the government‟s recognition that

infrastructure needs to be overhauled are likely to ensure that the trend rate of growth increase in

next decade.

Importance of manufacturing sector in India’s economic growth

The structural transformation of Indian economy over the last three decades has been spectacular

growth of the services sector, which now accounts for about more than 55% of the GDP. However,

the rapid growth of the services sector much before the manufacturing sector attaining maturity is

not a healthy sign. A knowledge-based economy cannot be sustained in the long run unless it is

adequately supported by a growing manufacturing economy.

Some sector, such as IT, ITES and pharmaceuticals, will compete globally, employing perhaps 2-3%

of the population and bringing wealth to many parts of India. At the same time, around 60% of the

population will remain dependent on the agricultural sector, sharing less than one-quarter of India‟s

GDP. Without reform, the agriculture will continue to suffer from endemic underemployment, low

wages and monsoon dependency. This will result in continued urban migration, but without the

development of an industrial sector this will lead to rising unemployment in the cities.

Manufacturing Industry Structure in India

Manufacturing Industry is the largest sector in the overall industrial segments in India. It is a diverse

industry with a number of segments, and can be broadly categorized into two segments:

The Heavy Engineering Segment, and

The Light Engineering Segment

The sector is relatively less fragmented at the top, as the competencies required are high, while it is

highly fragmented at the lower end (e.g. unbranded pump for the retail segment) and is dominated by

smaller players.

The Heavy Engineering Segment

The heavy engineering goods accounts for bulk of the engineering goods production in India.

Most of the leading players are engaged in the production of heavy engineering goods and

mainly produces high-value products using high-end technology. Requirement of high level of

capital investment poses as a major entry barrier. Consequently, the small and unorganized firms

have a small market presence.

The Light Engineering Segment

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The light engineering goods segment, on the other hand, uses medium to low-end technology.

Entry barrier is low on account of comparatively lower requirement of capital and technology.

This segment is characterized by the dominance of small and unorganized players which

manufacture low value added products. However, there are few medium and large scale firms

which manufacture high-value added products. This segment is also characterized by small

capacities and high level of competition among the players.

The major end-user industries for heavy engineering goods are power, infrastructure, steel, cement,

petrochemicals, oil & gas, refineries, fertilizers, mining, railways, automobiles, textiles, etc. Light

engineering goods are essentially used as inputs by the heavy engineering industry.

Manufacturing Industry

Heavy Engineering

Segment

Light Engineering

Segment

Heavy Electrical

Industry

Heavy Non-electrical Industry

Turbine and

Generator Sets

Boilers

Transformers

Switchgear and

Control Gear

Shunting Locomotive

Electrical Furnaces

Textile Machinery

Cement Machinery

Rubber Machinery

Material Handling Equipment

Oil Field Equipment

Metallurgical and Mining Machinery

Diary Machinery

Machine Tool

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Steps taken by Government³

Government of India decided to bring out the National Manufacturing policy to bring about a

quantitative and qualitative change with the following six objectives:

Increase manufacturing sector growth to 12-14% over the medium term to make it the engine

of growth for the economy. The 2 to 4 % differential over the medium term growth rate of

the overall economy will enable manufacturing to contribute at least 25% of the National

GDP by 2022.

Increase the rate of job creation in manufacturing to create 100 million additional jobs by

2022.

Creation of appropriate skill sets among the rural migrant and urban poor to make growth

inclusive.

Increase domestic value addition and technological „depth‟ in manufacturing.

Light Engineering Segment

Medical and Surgical Instruments

Process Control Instruments

Antifriction Roller Bearing

Industrial Fasteners

Ferrous Castings

Steel Forgings

Seamless Steel Pipes & Tubes

ERW Steel Pipes & Tubes

SAW Pipes

Bicycle Industry

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Ensure sustainability of growth, particularly with regard to the environment including energy

efficiency, optimal utilization of natural resources and restoration of damaged/degraded eco-

systems.

Enhance Global competitiveness of Indian manufacturing through appropriate policy support.

In order to achieve these goals:-

Foreign Investments and technologies will be welcomed while leveraging the country‟s

expanding market for manufactured goods to induce the building of more manufacturing

capabilities and technologies within the country.

Compliance burden on industry arising out of procedural and regulatory formalities will be

reduced through rationalization of business regulations.

Competitiveness of enterprises in the country will be the guiding principle in the design and

implementation of policies and programmes.

Effective consultative mechanism with all stake holders will be instituted to ensure mid-

course corrections.

Innovation will be encouraged for augmenting productivity, quality and growth of

enterprises.

The following Industry verticals will be given special attention:

I. Employment Intensive Industries

II. Capital Goods

III. Industries with strategic significance

IV. Small and Medium Enterprise

V. Industries where India enjoys a competitive advantage

VI. Public Sector Enterprises

Govt. Policies for FDI

Government of India reviews its Foreign Direct Investment (FDI) policy regularly, in a bid to attract

more investment. Recently, the government permitted 100% FDI in construction and development

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projects. India has opened up to private sector participation and FDI in infrastructure projects for

power, roads, ports, mining sector, and pharmaceutical sector.

These initiatives of the government serve as a catalyst to further raise the demand for manufacturing

goods. Government has taken a decision to delicense the Heavy Electrical Industry and allowance of

100% FDI.

FDI in MSEs (as defined under Micro, small and Medium Enterprises Development Act, 2006

(MSMED, Act 2006)) will be subject to the sectoral caps, entry routes and other relevant sectoral

regulations. Any industrial undertaking which is not a Micro or Small Scale Enterprise, but

manufactures items reserved for the MSE sector would require Government route where foreign

investment is more than 24% in the capital. Such an undertaking would also require an Industrial

License under the Industries (Development & Regulation) Act 1951, for such manufacture.

Financial year 2011-12 for Manufacturing Industry

The manufacturing sector is likely to show a growth of 3.9% in GDP during 2011-12 as against the

growth of 7.6% during 2010-11. According to the latest estimates available on the Index of

Industrial Production (IIP), the index of manufacturing and electricity registered growth rates of

4.1% and 9.5%, respectively during April-November, 2011-12, as compared to the growth rates of

9% and 4.5% in these sectors during April-November, 2010-11.

MAJOR PLAYERS IN THE MANUFACTURING INDUSTRY

Bharat Heavy Electrical Ltd

BHEL was incorporated in 1971-72 and paying dividends since 1976-77. BHEL is India‟s largest

Engineering and Manufacturing enterprise. The company manufactures over 180 products under 30

major product groups and caters to core sectors of the Indian Economy viz., Power Generation &

Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc. The company

has 14 manufacturing divisions, four Power Sector regional centres, over 100 project sites, eight

service centres and 18 regional offices.

Hindustan Aeronautics Ltd (HAL)

HAL is a Public Sector enterprise. The company supplies/services are mainly to Indian Defense

Services, Coast Guard and Border Security Force. They supply transport aircraft and helicopters to

Airlines as well as State Governments of India. The company‟s facilities are located throughout

India including Nasik, Korba, Kanpur, Koraput, Lucknow and Hyderabad.

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Crompton Greaves

Crompton Greaves is a part of B.M.Thapar Group and was established in 1899. CG‟s business

operation consists of 22 manufacturing divisions spread across in Gujarat, Maharastra, Goa, Madhya

Pradesh and Karnataka supported by well knitted marketing and service network through 14

branches in various states under overall management of four regional sales offices located in Delhi,

Kolkata, Mumbai and Chennai. The company has a customer base, which includes State Electricity

Boards, Government Bodies and Large Companies in private and public sectors.

Elgi Equipment

Established in 1960, Elgi Equipments is one of Asia‟s renowned manufacturers of air compressors

and automobile service station equipment. The company‟s products have a range of applications in

areas ranging from mining, defense, transport, pharmaceuticals, power, oil, railways, chemicals,

textiles, printing to ship building, paper, electronics, telecommunications, medical, food&beverages

and plastics.

Kirloskar Oil Engines Ltd (KOEL)

Kirloskar Oil Engines Ltd is a part of the century old Kirloskar group and was incorporated in 1946.

The company has two segments of its manufacturing-Engines and Engine bearings & valves and also

in business of manufacturing gray iron castings and trading in oil, power generation. The company

has its manufacturing facilities in Pune, Nasik, Ahmednagar and Phursungi.

Larsen & Toubro Ltd (L&T)

Larsen & Toubro Ltd (L&T) is a part of L&T group. The company is India‟s largest Engineering and

Construction (E&C), Cement, Electrical and Electronics and Diversified business. It also has 19

subsidiaries. The manufacturing facilities of the company are located in Coimbatore in TamilNadu,

Kurnool District in Andhra Pradesh and Hassan in Karnataka.

Thermax Ltd

Originally Thermax Ltd was incorporated as Thermo-Dynamics Pvt. Ltd on 30th

June, 1980. On 1st

July, 1980 Wanson (India) Ltd. Along with Thermax India (Pvt) Ltd. Was amalgamated with the

Company and subsequently the name was handed to Thermax Pvt. The company has its 6 core

businesses – Boilers and Heaters, Absorption Cooling , Water and Waste Solutions, Chemicals for

Energy and Environment Applications, Captive Power and Cogeneration systems, Air Pollution and

Purification.

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Cummins India Ltd

Cummins India Ltd is a part of Cummins Inc. one of the world‟s largest designer and manufacturer

of diesel engines. The company was started in India at Pune in 1962 (as Kirloskaar Cummins Ltd)

and deals in Power generation, construction & mining, compressors, locomotives, marine, oilfields,

fire pumps & cranes, automotive and special applications. The company has its manufacturing

facilities in Nashik, Bardez, Sholapur, Pune, Bharuch.

Asea Brown Boveri Ltd (ABB)

Asea Brown Boveri Ltd (ABB) is a subsidiary of ABB ltd – Zurich which is a leader in Power and

Automation technologies. The company operates in around 100 countries. ABB India caters to

power and industry sectors. The company has its vast installed base, extensive local manufacturing

at 8 units and a nationwide marketing and service presence. ABB has also set up a global R&D

centre in Bangalore.

Siemens Ltd

Siemens Ltd has its flagship of the Siemens Group in India. Siemens AG, the parent company holds

53.63% in Siemens Ltd. The company mainly deals in power generation and distribution equipment,

industrial projects and equipment, transportation systems, communication and healthcare products

and has its manufacturing units in Aurangabad, Nashik, Goa, Thane and Parganas North.

PROSPECTS OF MANUFACTURING INDUSTRY IN INDIA

Economic Drivers

Globalization

Single large market

Source capital where it is cheapest, produce where it is efficient, sell where it

is most profitable.

Local markets integrated with global markets – larger size

Firms need to compete globally (in terms of price, quality, response)

Promoting factors

Capital mobility for investments (in addition to export earnings)

Labour mobility (Huge skilled labour)

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World Trade Organization

150 members accounting for 97% of world trade

Goal: help trade flow smoothly, freely, fairly and predictably

Through agreements negotiated and ratified by member countries

Intellectual Property Rights

Technological Drivers

Artificial Intelligence

Green materials

Direct manufacturing

Future Enablers

Bionics and Reverse Engineering

Knowledge Management

Product Lifecycle Engineering

Will lead to

New materials, processes and applications (Products)

New Paradigms of manufacturing and trade

Draft policies

Conventional policies

Essentially deal with the „operating system‟ for industry

Infrastructure: power, water, transportation, communication

Economic incentives: licensing, duties, taxes, subsidies, zones

Necessary, but insufficient for sustained competitiveness

Manufacturing competitiveness:

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Continuous improvement in price, quality and response

Government-Academic Interface

Create respect for manufacturing

Promote manufacturing knowledge workers through media

Academia-Industry Interface

Identify leaders for manufacturing

Generate ideas for further exploration

Industry-Government Interface

Commercially exploit innovative ideas

Build world class manufacturing firms

There are three national associations representing all type of industries, small and large. These are

„Federation of Indian Chambers of Commerce and Industries‟ (FICCI), Confederation of Indian

Industries (CII) and „Association of Chambers of Commerce and Industries‟ (ASSOCHAM).

Industrial production in India is divided into basic, capital, intermediate, consumer goods, and

consumer non-durable goods industries. Manufacturing growth has been led by the automotive,

machinery, textile, chemicals and metal industries. NMIZs have been set up to augment the industry

by increasing the contribution of manufacturing to 25% of GDP by 2022.

The budget 2012-13 also shown the positive sign for power, construction, infrastructure etc. which

will help to grow the manufacturing sector in future in India.

ANALYSIS OF MANUFACTURING INDUSTRY UNDER PORTER’S FIVE FORCES

MODEL

Bargaining Power of Buyers (Medium)

In India though the demand for manufacturing product is very much but the consumers bargaining

power is low in India as the number of good manufacturing companies to buy from is limited in

number. Hence, the manufacturing companies are in a better position. In case of power sector, Govt.

regulates the power sector to ensure supply of power at reasonable prices but this regulation is

limited. In case of metal sector, there are only few players in Indian market. So, the bargaining

power for the buyers is very less. Overall, power of buyers is medium.

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Bargaining Power of Suppliers (High)

Coal, Iron Ore, Bauxite, Zinc Oxide, Oil and Gas used as raw materials for Manufacturing Industry.

The supply of these raw materials in India is limited and hence Raw Materials Suppliers are in a

dominant position. Power Companies are required to import coal if the domestic supply is not

sufficient, which proves to be an expensive affair. Steel Companies are importing Coaking Coal on a

regular as there is non-availability of Coaking Coal in India. Infact Steel Companies are importing

Iron ore also. Aluminum Companies are importing Bauxite from outside as there is delaying in

decision of Bauxite mining project in India. These all options prove an expensive one. Hence, the

power of suppliers is high.

Competitive Rivalry (Medium)

Since, demand for Manufacturing Product is way above its supply, there is almost no competitive

rivalry in the Manufacturing Industry as all the production can be used up. However, with Govt.

encouragement, private participation (especially because of higher efficiency) is expected to increase

in the coming years to take advantage of the huge for Manufacturing Product. Hence, the

competitive rivalry is Medium.

Availability of Substitutes (Medium)

Power does not have a substitute but it can be generated from different sources of energy. Currently

Thermal Power is dominant in India, coal being the major raw material. Coal availability is limited

and there-fore, power from nuclear sources, Hydro sources and Renewable energy sources could be

used as substitutes for Thermal Power in future. Although demand for power outstrips its supply,

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going forward, thermal power companies have threat from non-thermal power generators. For Metal

sector there is no substitute. Hence, the threat of substitution is Medium for Power Sector and Low

for Metal Sector.

Threat of new Entrants (Medium)

The Manufacturing Industry is highly capital-intensive Industry and hence demands huge

investment. But now there lots of foreign company, NRI and private sectors want to invest in

Manufacturing Industry. Moreover, obtaining regulatory approvals in this sector is a difficult task.

Hence, the threat of new entrant appears to be medium.

FINANCIAL SYSTEM OVERVIEW

INTRODUCTION

In World of commerce, apart from money equally revolutionary concept was the concept of limited

liability. Before the industrial revolution economy was self-sufficient village economy. The artisans

produced goods and services on demand. It was industrial revolution, which paved the way for

production in anticipation of demand, and along with it came the economies of large-scale

production and to support this was needed huge finance. Innovative forms of business establishment,

incorporating the principle of Limited liability emerged. Form the highly imaginative world of

business, a novel form of business organization viz. Joint Stock Companies, with the features like

limited liability and the separation of ownership and management was born. Risk is an important and

inherent part of any business. Risk cannot be avoided. We can only try to manage it. This was the

best example of risk management by spreading it in small portions amongst the large number of

shareholders. This was achieved by a concept called shares or stock and the need for trading in these

stocks was felt.

CAPITAL FORMATIONS AND ECONOMIC DEVELOPMENT

Multiplicity of wants and scarcity of means to satisfy these unlimited wants has continued to be the

fundamental of economic problem. Money resources are required to move physical resources.

Mobilization of resources for economic for economic development was and continues to be the

major problem with all developing and developed nations. The capital might be from within the

country or outside the country. But one of the greatest challenges of nations today is creating

conditions conducive for capital formation as also for attracting capital from various countries. A

growing economy with vibrant capital and money market with rules and regulations in place is of

capital formation Prerequisite for attracting capital. Stock market plays a key role in the entire gamut

of financial system.

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Having broadly discussed the developments and the basic issues involved, we will now try to review

the Indian financial System. India has come a long way during the last decade of the 20th

Century.

With the path-breaking budget of 91-92 presented by Dr. Man Mohan Sing an era of globalization,

liberalization, decontrol and de-regulation was adhered in. Since then a lot of water has flown from

under the bridge and lot of Development has taken place. The focus all along has been to faster

economic development.

INDIAN FINANCIAL SYSTEM

The Financial system comprises a variety of intermediaries, markets and instruments. It provides the

principal means by which savings are transformed into investments.

The Indian Financial system broadly classified into the formal (organized) financial system and the

informal (unorganized) financial system.

The formal financial system comes under the preview of:

The Ministry of Finance (MOF)

Reserve Bank of India(RBI)

Securities and Exchange board of India (SEBI), and

Other regulatory bodies

The informal system consists of:

Groups of persons operating as “funds” or “associations.”

Individual money lenders such as neighbors, relatives, landlords, traders, and so on.

Financial intermediaries such as finance, investment, and chit-fund companies.

Partnership firms consisting of local brokers, pawnbrokers, and non-bank.

FINANCIAL INSTRUMENTS IN THE MARKET

The changes in the regulatory framework of the capital market & fiscal policies have also resulted in

newer kinds of financial instruments being introduced in the market. These instruments are depended

on period, interest rate, trading etc.

i) Equity Shares ii) Preference Share iii) Debentures iv) Bonds iii) Govt. Securities

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INDIAN FINANCIAL SYSTEM

Formal (organized)

Financial System

Informal (organized)

Financial System

Financial Markets

Capital Market Money Market

Equity/Stock

Market

Derivatives

Primary Market Secondary Market

Future

Option

Swap

Forward

Public Issue

Rights Issue

Private

Placement

Preferential

allotment

NSE

BSE

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Conceptual Framework of how the Financial System works

The Financial System

Funds Funds

Deposits/shares

Loans

Funds

Securities

Funds Funds

Securities Securities

A Financial System is a set of Institutional Arrangements, through which financial surpluses are

mobilized from the units generating surplus income to others in need of them. Financial markets,

Financial Instruments, Financial Services and Financial Institutions constitute the Financial

System. Financial Market provide channels for allocation of savings to investment, that is how

the savings are channelized into investments thus generating further income, cash or assets.

Financial market has two major components viz. money market and capital market. Money

market refers to the market where borrowers and lenders exchange short-term funds, to solve

their liquidity needs. Money market instruments have low default risk, maturities under one year

and high marketability (liquidity). Low default risk implies that generally the risk of non-

Financial

Institutions

Commercial Banks

Insurance

Companies

Mutual Funds

Providend Funds

NBFCs

Demand of Funds

Individual Business

Governments

Supplier of Funds

Individual

Business

Governments

Private

Placements

Financial Markets

Money Market

Capital Market

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payment of money is low. Maturities under one year imply that all contracts are of maximum one

year. Capital market comprises of institutions and mechanisms through which medium to long

term funds are pooled and made available to business, government and individuals. It facilitates

investment in fixed assets. Capital market consists of securities or stock market. Securities

market consists of Primary Market and Secondary Market.

Primary market consists of channel for sale of new securities, while Secondary market securities

already issued.

Secondary market enables those who already hold securities to adjust their investment in

response to change in their assessment of risk and return, the statement implies that those who

already holds the securities may want to sell them in case if those securities are not paying off, or

if he/she needs to adjust his liquidity or for any other reason. Secondary market refers to stock

exchanges, a stock exchange provides mechanism to buy and sell the securities already issues in

primary market. There are at present 23 stock exchanges in India.

STOCK MARKET

The term „Stock market‟ is a concept for the mechanism that enables the trading of company

stocks (collective shares) and other securities. The size of the „stock market‟ is estimated at about

3000 trillion. The stocks are listed and traded on stock exchanges which are entities specialized

in the business of bringing buyers and sellers of stocks and securities together.

Participants in the stock market range from small individual stock investors to large hedge fund

traders, who can be based anywhere. Their orders usually end up with a professional at a stock

exchange, who executes order.

Some exchanges are physical locations where transactions are carried out on a trading floor, by a

method known as open outcry (e.g.:- New York stock exchange). This type of auction is used in

stock exchanges and commodity exchanges where traders may enter “verbal” bids and offers

simultaneously. The other type of exchange is a virtual kind, composed of a network of

computers where trades are made electronically via traders at computer terminals (e.g.- Nasdaq).

Actual trades are based on an auction market paradigm where a potential buyer bids a specific

price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at

market means that investor will accept any bid price or ask price for the stock.) When the bid and

ask prices match, a sale takes place on a first come first served basis if there are multiple bidders

or askers at a given price.

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The purpose of a stock exchange is to facilitate the exchange of securities between buyers and

sellers, thus providing a market place (virtual or real). The exchanges provide real-time trading

information on the listed securities, facilitating price discovery.

Market participants

Many years ago, worldwide, buyers and sellers were individual investors, such as wealthy

businessmen, with long family histories (and emotional ties) to particular corporations. Over

time, markets have become more “institutionalized”; buyers and sellers are largely institutions

(e.g. - pension funds, insurance companies, mutual funds, index funds, exchange-traded funds,

hedge funds, investor groups, banks and various other financial institutions).

With the rise of the institutional investor market operation also improves. Thus, the government

was responsible for “fixed” (and exorbitant) fees being markedly reduced for the „small‟

investor, but only after the large institutions had managed to break the brokers‟ solid front on

fees.

Importance of Stock Market

Stock market is an important part of the economy of a country. The stock market plays a vital

role in the growth of the industry and commerce of the country that eventually affects the

economy of the country to a great extent. That is reason that the government, industry and even

the central banks of the country keep a close watch on the happenings of the stock market. The

stock market is important from both the industry‟s point of view.

The stock market is one of the most important sources for companies to raise money. This allows

business to go public, or raise additional capital for expansion. The liquidity that an exchange

provides affords investors the ability to quickly and easily sell securities. This is an attractive

feature of investing in stocks, compared to other less liquid investments such as real estate.

Exchanges act as clearing house for each transaction. The smooth functioning of exchanges

facilitate economic growth in that lower cost and enterprise risks promote the production of

goods and services as well as employment in this way the Financial system contributes to

increased prosperity.

IMPACT OF STOCK EXCHANGES IN INDIA

I. Increase in rate of return on investment

II. Availability of funds for growth of industries

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III. Mobilization of savings

IV. Increase in employment

V. Diversification of Industries

VI. Increase in GDP

VII. Increase in standard of living

VIII. Decrease in Trade Deficit

TRADING IN INDIA:-

The trading on stock exchange in India used to take place through open outcry without use of

information technology for immediate matching or recording of trades. This was time consuming

and inefficient. This imposed limits on trading volumes and efficiency. In order to provide

efficiency, liquidity and transparency, NSE introduced a nationwide online fully automated

screen based trading system (SBTS) where a member can punch into the computer quantities of

securities and the prices at which he likes to transact and the transaction is executed as soon as it

finds matching sale or buy order from a counter party. SBTS electronically matches order on

strict time/price priority and hence cuts down on time, cost and risk of error, as well as on fraud

resulting in improved operational efficiency. It allows faster incorporation of price sensitive

information into prevailing prices, thus increasing the information efficiency of markets. It

enables market participants, irrespective of their geographical locations, to trade with one

another simultaneously, improving the depth of liquidity market. It also provides a perfect audit

trail, which helps to resolve disputes by logging in the trade execution process in entirety. Today

India can boast that almost 100% trading take place through electronic order matching.

Technology was used to carry the trading platform from the trading hall of stock exchanges to

the premises of brokers. NSE carried the further platform further the PCs at the residence of

Clients through the Internet for Users in geographically vast country like India.

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Conceptual Framework

Trading Network

Source: nseindia

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INTRODUCTION ABOUT SHAREKHAN4

Sharekhan Ltd. Is one of the leading retail stock broking house of SSKI Group which is running

successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based SSKI

Group, which has over eight decades of experience in the stock broking business. Sharekhan

offer its customers a wide range of equity related services.

Sharekhan is India‟s leading online retail broking house. It is the retail broking arm of the

Mumbai-based SSKI( SHRIPAL SHRWANTILAL KANTILAL ISWARNATH LIMITED). It is

a brokerage firm which is established on 8th

February 2000. Sharekhan has toady a pan-India

presence with over 1,529 outlets serving 950,000 customers across 450 cities. It also has

International presence through its branches in the UAE and Oman.

Sharekhan is a member of the Bombay Stock Exchange, the National Stock Exchange and the

country‟s two leading commodity exchanges, the NCDEX and MCX. Sharekhan is also

registered as a depository participant with National Securities Depository and Central Depository

Services.

On April 17, 2002 Sharekhan launched Speed Trade, a net-based executable application that

emulates the broker terminals along with host of other information relevant to the Day Traders.

This was for the first time that a net-based trading station of this caliber was offered to the

traders. In the last six months Speed Trade has become a de facto standard for the Day Trading

community over the net.

Sharekhan has always believed in investing in technology to build its business. The company has

used some of the best-known names in the IT industry, like Sun Microsystems, Oracle,

Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India

Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The Morakhiya family

holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors.

With a legacy of more than 80 years in the stock markets, the SSKI group ventured into

institutional broking and corporate finance 18 years ago. Presently SSKI is one of the leading

players in institutional broking and corporate finance activities. SSKI holds a sizeable portion of

the market in each of these segments. SSKI‟s institutional broking arm is accounted for 7% of

the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional

portfolio investment in the country. It has 60 Institutional clients spread over India, Far East, UK

and US. Foreign Institutional Investors generate about 65% of the Organization‟s Revenue, with

a daily turnover of over US$ 2 million. The Corporate Finance section has a list of very

prestigious clients and has many „firsts‟ to its credit, in terms of the size of deal, sector tapped

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etc. the group has placed over US$ 1 billion in private equity deals. Some of the clients include

BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia and Shopper‟s Stop.

VISION

To be the Best Retail Brokering Brand in the Retail Business of Stock market.

MISSION

To educate and empower the individual investor to make better investment decisions through

quality advice and superior service.

Credential of Sharekhan:-

Among the top 3 branded retail service providers

No. 1 player in Online Business

Largest network of branded broking outlets in the country serving around 9,50,000

clients.

REASON TO CHOOSE SHAREKHAN LIMITED

Experience

SSKI has more than eight decades of trust and credibility in the Indian Stock market. In the Asia

Money broker‟s poll held recently, SSKI won the “India‟s Best Broking House for 2004” award.

Ever since it launched Sharekhan as its retail broking division in February 2000, it has been

providing Institutional Level Research and Broking Services to individual investors.

Accessibility

Sharekhan provides ADVICE, EDUCATION, TOOLS and EXECUTION Services for investors.

These Services are accessible through its centers across the country over the internet (through the

website www.sharekhan.com) as well as over the Voice Tool.

Knowledge

One can get right information at right time from Sharekhan Limited‟s content-rich portal. One

can also get a useful set of knowledge-based tools that will empower him to take informed

decisions.

47 | P a g e

Technology

With its online trading account one can buy and sell shares in an instant from anywhere. By its

powerful online trading tools one can full control over his/her investment in shares.

Customer Service

Customer Service team will assist one for any help that one may require relating to transactions,

billing, demat and other queries. Its customer service can be contacted via a toll free number,

email or live chat on www.sharekhan.com.

Convenience

For investment advice and transaction one can call its Dial-N-Trade number. Sharekhan Ltd. has

a dedicated call-centre to provide this service via a Toll Free Number 1800-22-7500 & 1800-22-

7050 from anywhere in India.

Investment Advice

It has dedicated research teams of more than 30 people for fundamental and technical researches.

The pulse of the market is continuously tracked by Sharekhan‟s analyst and provides timely

investment advice to its clients in the form of daily research emails, online chat, printed reports

and SMS alert.

MANAGEMENT5

Dinesh Murikya : Owner of the company

Tarun Shah : CEO of the company

Shankar Vailaya : Director (Operations)

Jaideep Arora : Director (Products & Technology)

Pathik Gandotra : Head of Research

Rishi Kohli : Vice President of Equity Derivatives

Nikhil Vora : Vice President of Research

Amit Arora : Head Operation

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Kalyan Raman : Vice President of Client Acquisition

PRODUCTS AND SERVICES OF SHAREKHAN LIMITED6

The different types of products and services offered by Sharekhan Ltd. are as follows:

Equity and Derivatives Trading, Depository Services, Online Services, Commodities Trading,

Dial-n-Trade, Portfolio Management, Share Shops, IPO & Bonds, Fundamental Research,

Technical Research, Spot Market, Currency Derivatives and Mutual funds.

Source: Sharekhan Ltd.

TYPES OF ACCOUNT IN SHAREKHAN LIMITED

Sharekhan offers two types of trading account for its clients

Classic Account (which include a feature known as Fast Trade Advanced Classic for the

online users) and

Speed Trade Account

CLASSIC ACCOUNT

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This is User Friendly Product which allows the client to trade through website

www.sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers to

invest in stocks or who does not trade too frequently. This account allow investors to buy and

sell stocks online along with the following features like multiple watch lists, Integrated Banking,

Demat and Digital Contracts, Real-time Portfolio Tracking with price alerts and Instant credit &

transfer.

This account comes with the following features:

i. Online Trading Account for investing in Equities and Derivatives

ii. Free Trading through Phone (Dial-n-Trade)

a. Two dedicated numbers (1800-22-7500 and 39707500) for placing the orders

using cell phones or landline phones.

b. Automatic funds transfer with phone banking facilities (for Citibank and HDFC

bank customers)

c. Simple and Secure Interactive Voice Response based system for authentication

d. Get the trusted, professional advice of Sharekhan limited‟s Tele Brokers

e. Before hours order placement facility between 8.00 am and 9.30 am.

iii. Integration of: Online Trading + Saving Bank + Demat Account

iv. Instant cash transfer facility against purchase & sale of shares

v. IPO investments

vi. Instant order and trade confirmation by E-mail

vii. Single screen interface for cash and derivatives

SPEED TRADE ACCOUNT

This is an Internet-based software application, which enables one to buy and sell in an instant. It

is ideal for active traders and employees who transact frequently during day‟s session to

capitalize on intra-day price movement.

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This account comes with the following features:

i. Instant order Execution and Confirmation

ii. Single screen trading terminal for NSE cash, NSE F&O & BSE

iii. Technical Studies

iv. Multiple Charting

v. Real-time streaming quotes

vi. Market Summary (Cost traded scrip, highest value etc.)

vii. Hot keys similar to broker‟s terminal

viii. Alerts and reminders.

ix. Back-up facility to place trades on Direct Phone lines

x. Live market debts

CHARGE STRUCTURE

Fee structure for General Individual:

Charge Classic Account(Rs.) Speed Trade Account(Rs.)

Account Opening 750/Nil 1000/Nil

Brokerage Intraday-.10

Delivery-.50

Intraday-.10

Delivery-.50

Depository Charges:

Account Opening Charges(Rs.) Nil

Annual Maintenance Charges(Rs.) 400

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HOW TO OPEN AN ACCOUNT WITH SHAREKHAN LIMITED?

For online trading with Sharekhan Ltd., investor has to open an account. Following are the ways

to open an account with Sahrekhan Ltd.:

One need to call them at phone number provided below and asks that he/she want to open

an account with them.

i. One can call on the Toll free Number: 1-800-22-7500 to speak a Customer

Service Executive

ii. Or if one stays in Mumbai, he can call on 022-66621111

One can log on to http://sharekhan.com/Locateus.aspx link to find out the nearest branch

and visit that branch.

One can send E-mail at info@sharekhan.com to know about their products and services.

One can visit the site www.sharekhan.com and click on the option “Open an Account” to

fill a small query form which will ask the individual to give details regarding his/her

name, city he/she lives in, his email address, phone number, pin code of the city, his

nearest Sharekhan Ltd. shop and preferences regarding the type of account he/she wants.

This information are compiled in the headquarter of the company that is in Mumbai from

where it is distributed through out the country‟s branches in the form of leads on the basis

of cities and nearest share shops. After that the executives of the respective branches

contact the prospective clients over phone or through E-mail and give them information

regarding the various types of accounts and the documents they need to open an account

and then fix appointment with the prospective clients to give them demonstration and

making them undergo the formalities to open the account. After that the forms that has

collected from the clients, is scrutinized in the branch and then it is sent to Mumbai for

further processing where after a few days the clients‟ account are generated and activated.

After the accounts are activated, a Welcome Kit is dispatched from Mumbai to the

clients‟ address mentioned in the documents provided by them. As soon as the clients

receive the Welcome Kit, which contains the clients‟ Trading ID and Trading Password,

they can start trading and investing in shares.

Apart from two passport size photographs, one needs to provide with the following documents in

order to open an account with Sharekhan Ltd.:

Photocopy of the clients‟ PAN Card which should be duly attached

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Photocopy of any of the following documents duly attached which will serve as

correspondence address proof:

i. Passport (valid)

ii. Ration Card

iii. Voter‟s ID Card

iv. Electricity Bill (should be latest and should be in the name of the client)

v. Driving License (valid)

vi. Flat maintenance Bill (should be latest and should be in the name of the client)

vii. Telephone Bill (should be latest and should be in the name of the client)

viii. Lease or Rent Agreement

ix. Insurance Policy (should be latest and in the name of the client)

x. Savings Bank Statement** (should be latest)

Two cheques drawn in favor of Sharekhan Ltd., one for the Account Opening Fees and

the other for the Margin Money (the minimum margin money is Rs. 5000)

** A cancelled cheque should be given by the client if he provides Saving Bank Statement as

a proof for correspondence address.

NOTE: Only Saving Bank Account cheques are accepted for the purpose of Opening an

account.

REASEARCH SECTION IN SHAREKHAN Ltd.

Sharekhan Ltd. has its own in-house Research Organization which is known as Valuline. It

comprises a team of experts who constantly keep an eye on the market and do research on the

various aspects of the share market. Generally the research is based on Fundamental and Technical

analysis of different companies and also taking into account various factors relating to the economy.

Sharekhan‟s Research on the volatile market has been found accurate most of the time. Sharekhan‟s

trading calls in the month of May 2012 has given….% strike rate.

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Out of … trading calls given by Sharekhan in the month of May 2012, … hit the profit target. These

exclusive trading picks come only to Sharekhan Online Trading Customer and are based on in-depth

Technical Analysis.

As a customer of Sharekhan Ltd., one receives daily 5-6 Research Reports on their E-mails which

they can use as tips for investing in the market. These reports are named as Pre-Market Report,

Eagle Eye, High Noon, Investors Eye, Daring Derivatives and Post-Market Report. Apart from

these, Sharekhan Ltd. issues a monthly subscription by the name of Valuline which is easily

available in the market.

Source: Sharekhan Ltd.

PROJECT SPECIFIC ANALYSIS

COMPANY ANALYSIS

Once the industry group is chosen, an investor would need to narrow the list of companies before

proceeding to a more detailed analysis. Investors are usually interested in finding the leaders and the

innovators within a group. The first task is to identify the current business and competitive

environment within a group as well as the future trends. How do the companies rank according to

market share, product position and competitive advantage? Who is the current leader and how will

changes within the sector affect the current balance of power? Success depends on an edge, be it

marketing, technology, market share or innovation. A comparative analysis of the companies within

a sector will help identify the company with an edge and those most likely to keep it.

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7

I have chosen three sectors under manufacturing for my analysis. Sectors and Companies are as

follows:

Power Sector

NTPC

Tata Power

Steel Sector

Tata Steel

JSW Steel

Infrastructure

L&T

BHEL

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8India‟s largest power company, NTPC was set up in 1975 to accelerate power development in

India. NTPC is emerging as a diversified power major with presence in the entire value chain of the

power generation business. Apart from power generation, which is the mainstay of the company,

NTPC has already ventured into consultancy, power trading, ash utilization and coal mining. NTPC

ranked 341st in the „2010, Forbes Global 2000‟ ranking of the World Biggest companies. NTPC

became a Maharatna company in May‟ 2010.

The total installed capacity of the company is 37,514 MW (including JVs) with 16 Coal based and &

7 Gas based stations, located across the country. In addition, under JVs, 7 stations are Coal based &

another station uses Naptha/LNG as fuel. The company has set a target to have an installed power

generating capacity of 1, 28,000 MW by the year 2032. The capacity will have a diversified fuel mix

comprising 56% Coal, 16% Gas, 11% Nuclear and 17% Renewable Energy Sources (RES) including

Hydro. By 2032, non fossil fuel based generation capacity shall make up nearly 28% of NTPC‟s

portfolio.

In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as fresh issue

and 5.25% as offer for sale by Govt. of India. NTPC thus became a listed company in

November‟2004 with the Govt. holding 89.5% of the equity share capital. In February 2010, the

shareholding of Govt. of India was reduced from 89.5% to 84.5% through further Public Offer. The

rest is held by Institutional Investors and Public.

At NTPC, People before Plant Load Factor is the mantra that guides all HR related policies. NTPC

has been awarded No. 1, Best Workplace in India among large Organizations and the best PSU for

the year 2010, by the Great Places to Work Institute, India Chapter collaboration with The Economic

Times.

VISION

“To be the World‟s largest and best power producer, powering India‟s growth.”

MISSION

“Develop and provide reliable power, related products and services at competitive prices, integrating

multiple energy sources with innovative and eco-friendly technologies and contribute to society.”

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MANAGEMENT

The Company is managed by the Board of Directors, which formulates strategies, policies and

reviews its performance periodically. The Chairman & Managing Director and six Whole Time

Directors manage the business of the company under the overall supervision and guidance of the

Board.

The Board has 21 members, comprising of 1 Chairman & Managing Director, 6 Whole Time

Directors, 4 Non Official Part Time Directors, 8 Independent Directors and 2 Nominee Directors.

NAME DESIGNATION

Arup Roy Choudhury Chairman and Managing Director

I J Kapoor Director (Commercial)

D K Jain Director (Technical)

N N Misra Director(Operations)

Rakesh Jain Nominee Director

Adesh Jain Independent Director

Santosh Nautiyal Independent Director

Rajib Sekhar sahoo Non Official Part Time Director

Ajit M Nimbalkar Non Official Part Time Director

Homai A Daruwalla Independent Director

Sushil Khanna Independent Director

A K Singhal Director (Finance)

B P Singh Director (Projects)

S P Singh Director (Human Resources)

I C P Keshari Nominee Director

Kanwal Nath Independent Director

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A K Sanwalka Independent Director

S B Ghosh Dastidar Non Official Part Time Director

M Govinda Rao Independent Director

S R Upadhyay Non Official Part Time Director

Anol Nath Chatterji Independent Director

Source: www.moneycontrol.com

Share Holding Pattern9

Share holding

Share holding pattern as on :

31/03/2012 31/12/2011 30/09/2011

Face value 10 10 10

No. Of Shares

% Holding

No. Of Shares

% Holding

No. Of Shares

% Holding

Promoter's holding

Indian Promoters 6967361180 84.5 6967361180 84.5 6967361180 84.5

Sub total 6967361180 84.5 6967361180 84.5 6967361180 84.5

Non promoter's holding

Institutional investors

Banks Fin. Inst. and Insurance 546548149 6.63 552125001 6.7 563605737 6.84

FII's 331346348 4.02 307924621 3.73 288895774 3.5

Sub total 962582636 11.67 962247333 11.67 961499023 11.66

Other investors

Private Corporate Bodies 145622674 1.77 143182739 1.74 141186021 1.71

NRI's/OCB's/Foreign Others 3856922 0.05 3985285 0.05 4062226 0.05

Direcctors/Employees 37263 - 37209 - 37637 -

Others 5360510 0.07 2371978 0.03 2672413 0.03

Sub total 154874686 1.88 149574528 1.81 147954614 1.79

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General public 160643215 1.95 166278676 2.02 168645900 2.05

Grand total 8245461717 100 8245461717 100 8245460717 100

PROJECTS AND INVESTMENTS

According to the NTPC Chairman and Managing Director Arup Roy Choudhury, “NTPC‟s

investment plan for this fiscal (2012-13) is Rs 20,900 crore where in last fiscal it was around Rs

11,000 crore.”

NTPC, which has installed generation capacity of 37,514 MW, is looking to increase the capacity in

coming years, especially with thermal power projects.

NTPC has formulated a long term Corporate Plan upto 2032. In line with the Corporate Plan, the

capacity addition under implementation stage is presented below:

PROJECT STATE MW

Coal

1 Indira Gandhi STPP –JV with IPGCL &HPGCL (500) Haryana 500

2 Sipat I (660) Chhattisgarh 660

3 Vallur I –JV with TNEB (500) Tamilnadu 500

4 Vallur Stage-I Phase-II –JV with TNEB (1 x 500) Tamilnadu 500

5 Simhadri II Unit – IV (500) Andhra Pradesh 500

6 Bongaigaon(3 x 250) Assam 750

7 Rihand III (2 x 500) Uttar Pradesh 1000

8 Mauda Maharashtra 500

9 Vindyachal-IV (2 x 500) Madhya Pradesh 1000

10 Nabinagar TPP –JV with Railways (4 x 250) Bihar 1000

11 Muzaffarpur Expansion (2 x 195) –JV with BSEB Bihar 390

12 Barh I (3 x 660) Bihar 1980

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13 Barh I (2 x 660) Bihar 1320

Hydro

1 Koldam HEPP (4 x 200) Himachal Pradesh 800

2 Tapovan Vishnugad HEPP (4 x 130) Uttarakhand 520

3 Singrauli CW Discharge(Small Hydro) Uttar Pradesh 8

Total 11,428

Source: www.ntpc.co.in

SUBSIDIARIES

NTPC Electric Supply Company Ltd. (NESCL)

NTPC Vidyut Vyapar Nigam Ltd. (NVVN)

NTPC Hydro Ltd. (NHL)

Kanti Bijlee Utpadan Nigam Ltd., (formerly known as Vaishali Power Generating Company

Ltd.)

Bharatiya Rail Bijlee Company Ltd (BRBCL)

RECOGNITION

HR Awards

NTPC awarded for Excellence in HR

NTPC ranked 19th

by the GPTW for 2011 amongst 25 top Best Companies in India

NTPC ranked 6th

amongst 25 top Best Employers in Country

NTPC win Star TV Talent Leadership and HR Award

Two Awards for NTPC at Asia Best Employer Brand Awards

Overall 7th

in „India‟s Best Companies to work 2010‟, 1st amongst the PSUs and 1

st in

Manufacturing & Production Industry Segment.

Great Place to Work Award 2010

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NCPEDP-Shell Helen Keller Award 2009

Vishwakarma Rashtriya Puraskar (VRP) – 2007

Safety Awards

National Safety Award 2008 & 2009

Safety Innovation Award

Best Environment Management Station Award for Safety

Environment Awards

Golden Peacock Environmental Management Award

CII Susutainability Award

3rd

Green Globe Foundation Award

Performance Awards

SCOPE Excellence Award to NTPC

PSU Excellence Award for NTPC

Top Liner Maharatna Award to NTPC

India Pride Awards – Energy and Power Category

CII-EXIM Excellence Award, 2010

National Awards for Meritorious Performance

Quality Awards

International Gold Star Award for Quality 2009

CSR Awards

NTPC Awarded for Corporate Social Responsibility & Responsiveness for 2010-11

CII ITC Sustainability Award

Corporate Governance Awards

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Golden Peacock Global Award and ICSI National Award for Excellence in Corporate

Governance 2009

PROSPECTS

As per new corporate plan, NTPC plans to become a 75 GW company by the year 2017 and

envisages to have an installed capacity of 128 GW by the year 2032 with a well diversified fuel mix

comprising 56% coal, 16% gas, 11% nuclear energy, 9% renewable energy and 8% hydro power

based capacity.

As such, by the year 2032, 28% of NTPC‟s installed generating capacity will be based on carbon

free energy sources. Further, the coal based capacity will increasingly be based on high-efficient-

low-emission technologies such as Super-critical and Ultra-Super-critical. Along with this growth,

NTPC will utilize a strategic mix of options to ensure fuel security for its fleet of power stations.

Looking at the opportunities coming its way, due to changes in the business environment, NTPC

made changes in its strategy and diversified in the business adjacencies along the energy value chain.

In its pursuit of diversification NTPC has developed strategic alliances and joint ventures with

leading national and international companies. NTPC also made long strides in developing its Ash

Utilization business.

Hydro Power: In order to give impetus to hydro power growth in the country and to have a

balanced portfolio of power generation, NTPC entered hydro power business with the 800

MW Koldam hydro project in Himachal Pradesh. Two more projects have also been taken up

in Uttarakhand. A wholly owned subsidiary, NTPC Hydro Hydro Ltd., is setting up hydro

projects of capacities up to 250 MW.

Renewable Energy: In order to broad base its fuel mix NTPC has plan of capacity addition

of about 1,000 MW through renewable resources by 2017.

Nuclear Power: A Joint Venture Company “Anushakti Vidhyut Nigam Ltd.” Has been

formed (with 51% stake of NPCIL and 49% stake of NTPC) for development of nuclear

power projects in the country.

Coal Mining: In a major backward integration move to create fuel security, NTPC has

ventured into coal mining business with an aim to meet about 20% of its coal requirement

from its captive mines by 2017. The Government of India has so far allotted 7 coal blocks to

NTPC, including 2 blocks to be developed through joint venture route.

Power Trading: „NTPC Vidyut Vypar Nigam Ltd.‟ (NVVN), a wholly owned subsidiary

was created for trading power leading to optimal utilization of NTPC‟s assets. It is the second

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largest power trading company in the country. In order to facilitate power trading in the

country, „National Power Exchange Ltd.‟ A JV of NTPC, NHPC, PFC and TCS has been

formed for operating a Power Exchange.

Ash Business: NTPC has focused on the utilization of ash generated by its power stations to

convert the challenge of ash disposal into an opportunity. Ash is being used as a raw material

input by cement companies and brick manufacturers. NVVN is engaged in the business of

Fly Ash export and sale to domestic customers. Joint ventures with cement companies are

being planned to set up cement grinding units in the vicinity of NTPC stations.

Power Distribution: „NTPC Electricity Supply Company Ltd.‟ (NESCL), a wholly owned

subsidiary of NTPC, was set up for distribution of power. NESCL is actively engaged in

„Rajiv Gandhi Gramin Vidyutikaran Yojana‟ programme for rural electrification.

Equipment Manufacturing: Enormous growth in power sector necessitates augmentation of

power equipment manufacturing capacity. NTPC has formed JVs with BHEL and Bharat

Forge Ltd. for power equipment manufacturing. NTPC has also acquired stake in

Transformers and Electricals Kerala Ltd. (TELK) for manufacturing and repair of

transformers.

Core Values – BE COMMITTED

B Business Ethics

E Environmentally & Economically Sustainable

C Customer Focus

O Organizational & Professional Pride

M Mutual Respect & Trust

M Motivating Self & Others

I Innovation & Speed

T Total Quality for Excellence

T Transparent & Respected Organization

E Enterprising

D Devoted

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SWOT ANALYSIS OF NTPC

Strengths

Largest Market share in the domestic power generation and a broad customer portfolio across

the country

Diversified thermal generation portfolio-multiple sizes and fuel types

Highly skilled and experienced Human Resources exposed to state-of-the-art technologies in

project execution and power generation

Excellent track record of performance in project implementation and plant operations

High Brand equity among stakeholders

Navratna Status

Strong Balance Sheet-ability to raise low cost debt

Engineering skills in project configuration and package design

High credit rating indicating the high confidence of leaders

Turnaround ability for old plants-demonstrated in the take-over plants at Talcher, Tanda and

Unchachar

In-house training facility PMI,CENPEEP,R&D etc that assists in development of the sector

Established systems and procedures to institutionalize excellence in business operations-

received ISO accreditation in several functions/areas.

Thrust on reducing social cost of capacity growth-strong execution of Resettlement &

Rehabilitation plans.

Weakness

Functional orientation hampering cross-functional perspective in decision making

Long and multi layered procurement process leading to long lead times process delays

Low risk-diversification of business portfolio: Consists primarily of generation of generation

assets

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Gaps in HR systems such as performance management, rewards and incentives and career

development

Fragmented IT architecture

Inadequate development of a strong knowledge management system that could assist in all

aspects of the business

Role ambiguity and dilution within different levels of the organization

Hierarchy for decision making that affects responsiveness

Opportunities

Broad base fuel mix by considering imported coal, gas, domestic coal, nuclear power etc

with a view to mitigate fuel risks and maintain long run competitiveness

Expand generation capacities by putting up thermal and hydro capacities, maintaining the

position of a dominant generating utility in the Indian Power Sector

Lead the development and commercial deployment of non-conventional energy sources

especially in the distributed generation mode

Execute increased number of power plants that classify for Mega Power Projects Status,

thereby reducing the cost of the projects and power and power generated

Improve collections by trading, direct sale to bulk customers and the active role in allocation

in new plants.

Forward integration into the distribution business in India

Threats

Entrance of private players in the Indian Power Sector

The existence of PSU culture affecting the organizational efficiency in comparison of the

private work culture

Low availability of fuel mix in India and high import prices might affect the cost of

electricity generation

Lack of commitment to be aware of the ever changing needs of the clients/customers

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Tata Power is India‟s largest integrated private power company with consolidated revenues of Rs.

19450.76 Crores for the fiscal year ended March 31, 2011. Inspired by a powerful vision, founders

of Tata Power pioneered the generation of electricity in India with the commissioning of India‟s first

large hydro-electric project in 1915. Today, Tata Power has an installed generating capacity of 5297

MW and a presence across the entire value chain in generation (thermal, hydro, solar and wind)

transmission, distribution and trading. The Company has emerged as a pioneer in the Indian Power

Sector, with a track record for performance and has been a frontrunner in introducing state-of-the-art

power technologies. Among its achievement the Company has to its credit the installation of India‟s

first 500 MW unit at Trombay, the first 150 MW pumped storage unit at Bhira, a Flue Gas De-

sulphurization plant for pollution control at Trombay and is now bringing the first 800 MW super-

critical unit at Mundra, Gujarat.

The Company has successful public-private partnerships in generation, transmission and distribution

– Tata Power Delhi Distribution Limited with Delhi Vidyut Board for Distribution in North Delhi,

‘Powerlinks Transmission Ltd.’ with Power Grid Corporation of India Ltd. for evacuation of

Power from Tala Hydro project in Bhutan to Delhi and ‘Maithon Power Ltd.’ with Damodar Valley

Corporation for a 1050 MW Mega Power Project at Jharkhand. It is one of the largest renewable

energy players in India and is developing country‟s first 4000 MW Ultra Mega Power Project at

Mundra (Gujarat) based on Super-critical technology.

Its International presence includes strategic investments in Indonesia through 30% stake in Coal

mines and a geothermal project; in Singapore through Trust Energy Resources to securitise coal

supply and the shipping of coal for its thermal power generation operations; in South Africa through

a joint venture called „Cennergi‟ to develop projects in South Africa, Botswana and Namibia; in

Australia through investments in geothermal and clean coal technologies and in Bhutan through a

hydro project in partnership with The Royal Govt. of Bhutan. With its track record of technology

leadership, project execution excellence, world class safety processes, customer care and driving

green initiatives, Tata Power is poised for a multi-fold growth and committed to „lighting up lives‟

for generations to come.

VISION

To be the most admired Integrated Power and Energy Company delivering sustainable value to all

stakeholders

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MISSION

We will become the most admired company delivering sustainable value by:

Being the supplier and partner of choice

Achieving excellence in safety, operations and project management

Focusing on the culture of sustainability

Ensuring growth and delivering value to the stakeholders

Caring for the community

MANAGEMENT

The Company is managed by the Board of Directors, which formulates strategies, policies and

reviews its performance periodically. The Chairman, Managing Director and seven Whole Time

Directors manage the business of the company under the overall supervision and guidance of the

Board.

The Board has 13 members, comprising of 1 Chairman/Chair Person, 1 Managing Director, 7 Whole

Time Directors, 2 Executive Directors, 1 Additional Director and 1 Nominee Director.

NAME DESIGNATION

R N Tata Chairman/Chairperson

Anil Sardana Managing Director

S Ramakrishnan Executive Director

S Padmanabhan Executive Director

R GopalaKrishnan Director

H S Vachha Director

A J Engineer Director

N H Mirza Director

D M Satwalekar Director

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P G Mankad Director

A K Basu Director

A K Singhal Additional Director

T Thomas Mathew Nominee Director

Source: www.moneycontrol.com

Share Holding Pattern

Share holding

Share holding pattern as on : 31/03/2012 31/12/2011 30/09/2011

Face value 1 1 1

No. Of Shares

% Holding

No. Of Shares

% Holding

No. Of Shares

% Holding

Promoter's holding

Indian Promoters 754792090 31.81 754816965 31.81 754740990 31.8

Sub total 754792090 31.81 754816965 31.81 754740990 31.8

Non promoter's holding

Institutional investors

Banks Fin. Inst. and Insurance 550579300 23.2 565531528 23.83 575867091 24.27

FII's 518998584 21.87 475470019 20.04 474797026 20.01

Sub total 1148527904 48.4 1153718568 48.62 1152934251 48.58

Other investors

Private Corporate Bodies 22437736 0.95 16021164 0.68 51565834 2.17

NRI's/OCB's/Foreign Others 442310 0.02 1700261 0.07 1238530 0.05

GDR/ADR 76718320 3.23 76718320 3.23 78542510 3.31

Govt 756050 0.03 882050 0.04 882050 0.04

Others 3447730 0.15 3294025 0.14 2995801 0.13

Sub total 103767386 4.37 98581060 4.15 135189965 5.7

General public 365950220 15.42 365921007 15.42 330172394 13.91

Grand total

2373037600

100 2373037600 100 2373037600 100

Source: www.money.rediff.com

68 | P a g e

PROJECTS & INNVESTMENTS

Tata Power is looking to aggressively expand its global operations and has already made its foray

into some key developing segments and markets. Here is a glimpse of its international portfolio:

Indonesia: Coal reserves and developing a geothermal project

South Africa: Exploring growth opportunities

Singapore: Coal Supply, shipping and trading

Nepal: Scouting Hydro prospects

Australia: Developing cutting edge technology

Tata Power has an investment of $50 million for a 10% stake in Australian Company-

Geodynamics. It has also entered into a partnership with Australian Solar power company

Sunengy Pty Ltd to build a pilot plant for low cost, floating on water, solar technology in

India. The company has also invested in Exergen, Australia for clean coal technologies.

Bhutan: Hydro Presence

The company is on a multi-fold growth path. Here‟s quick look at the projects that are under

implementation:

Developing India‟s first Ultra Mega Power Project (UMPP) at Mundra, Gujarat with an

investment of Rs. 17,000 crores (US$ 4.2 billion).

1050 MW Maithan Power Project which have already been commissioned and stabilized

236 MW Dugar Hydro Project in Himachal Pradesh which is being optimized for 500MW

1600 MW Coastal Maharashtra Project

1980 MW Tiruldih Power Project, Jharkhand

660 MW Naraj Marthapur, Orissa

Kalinganagar, Orissa 3X67.5 MW (Gas based) + 3X150 MW (Coal + Gas Based) Project

114 MW Dagachhu Hydro Project in Bhutan

240 MW Sorik Marapi Geothermal Project in Indonesia

69 | P a g e

Subsidiaries

Chemical Terminal Trombay Ltd.

Af-Taab Investment Co. Ltd.

Powerlinks Transmission Ltd.

Tata Power Trading Co. Ltd.

NELCO Ltd.

Tatanet Services Ltd.

Maithon Power Ltd.

Industrial Energy Ltd.

Industrial Power Utility Ltd.

Industrial Power Infrastructure Ltd.

Coastal Gujarat Power Ltd.

Veltina Holdings Ltd.

Bhira Investments Ltd.

Bhivpuri Investments Ltd.

Khopoli Investments Ltd.

Energy Eastern Pte Ltd.

Trust Energy Resources Pte Ltd.

Tata Power Delhi Distribution Ltd.

Vantech Investments Ltd.

Tata Power Green Energy Ltd.

Dugar Hydro Power Ltd.

70 | P a g e

Recognition

For Financial year 2012

Tata Power won three awards at the CMO Asia Awards 2011 for excellence in Brand and

Marketing in the following categories:

Best Marketing Campaign of the Year- Tata Power Energy Club

Best In-house Magazine- Transmission Lines, April 2011

Best In-house Technical Training

In June, 2011 Tata Power has been Ranked No 38 as India‟s Best Companies to work as per

the study done by Great Place to Work Institute

Tata Power was bestowed the prestigious “Vasundhara Award” in the Industry category,

given out to recognize exemplary work carried out by Industries, Urban Local Bodies,

Schools and Environmental Non Governmental Organizations (NGOs) towards protection of

environment in the state of Maharashtra by Maharashtra pollution Control Board (MPCB) on

the occasion of World Environment Day, 5th

June,2011.

Trombay Thermal Power Station has bagged the prestigious Greentech Safety Award 2011 in

the gold category (in thermal power sector) for outstanding achievement in safety

management.

Tata Power has been conferred the prestigious BML Munjal Award for Excellence in

Learning & Development for the year 2011 by Mr. Bhupinder Singh Hooda, Chief Minister

of Haryana on 21st April, 2011 at delhi. Tata Power got the award in Private sector category.

Prospects

Tata Power expects to have a capacity of 25,000 MW by 2017.

According to Managing Director Anil Sardana, Tata Power is becoming very active internationally,

both for projects as well as resources.

They have targeted South East Asia and SAARC as of their target markets. SAARC includes

Srilanka, Bangladesh, Nepal and Bhutan. Similarly they have targeted Arica, Turkey and Middle

East also.

Apart from these Tata Power is focusing on Clean Technologies which are as follows:

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Biomass Gasification: A 250KW system using rice husk will be installed at the Tata Hydro

Power plant near Karjat. If successful, this technology can be taken to hundreds of villages.

Concentrated Photovoltaic (C-PV): A 13.5 KW pilot unit is being developed in which

sunrays are concentrated on PV cells and the assembly floats on Walwhan lake (Maharastra)

in order to cool the cells. If successful, this technology can be scaled up across all the lakes

that provide hydro power to Tata Plants in West Maharashtra and thus generate about 1,000

MW.

Solar powered telecom towers: more than 600,000 telecom towers in India use diesel

generator sets to provide power to their antennas. Tata BP Solar is providing solar PV panels

that can replace the gensets on 25 such installations. This technology can be upgraded to

augment power to local grids.

High altitude wind: Tata Power will test a 35 KW turbine mounted on a blimp that will float

333m above the ground to catch winds that are more intense and sustained at that altitude.

Micro wind turbine: the company will test a 2 KW wind turbine that can be mounted on

roof tops and provide power to homes.

Core Values

Integrity: Honesty, fairness and transparency in our conduct and transactions

Trust: Faith and belief in each other

Care: Being concerned about the well being of all employees

Collaboration: Excellence through teamwork, within employees and partners

Agility: Speedy, responsive and proactive, achieved through empowering employees

Respect: Treat all stakeholders with respect and dignity

Excellence: Bettering standards continuously with passion and pride.

SWOT Analysis of Tata Power

Strength

Tata Power is India‟s largest integrated power company with a significant international

presence

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Diversified thermal generation portfolio-multiple sizes and fuel types

Highly skilled and experienced Human Resources exposed to state-of-the-art technologies in

project execution and power generation

Excellent track record of performance in project implementation and plant operations

High Brand equity among stakeholders

Engineering skills in project configuration and package design

Established systems and procedures to institutionalize excellence in business operations-

received ISO accreditation in several functions/areas.

Weakness

Low market share

Capacity creation time is very high

Promotion for employees not to good in compare to other privet power company

Functional orientation hampering cross-functional perspective in decision making

Long and multi layered procurement process leading to long lead times process delays

Role ambiguity and dilution within different levels of the organization

Hierarchy for decision making that affects responsiveness

Opportunities

Emerging markets and expansion abroad

Product and services expansion

Increasing demand

Alternative sources of power generation

Forward integration into the distribution business in India

Threats

External changes (government, politics, taxes, etc)

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Price wars

High capital intensive

Lack of commitment to be aware of the ever changing needs of the clients/customers

Low availability of fuel mix in India and high import prices might affect the cost of

electricity generation

Tata Steel has always believed that the principle of mutual benefit – between countries, corporations,

customers, employees and communities – is the most effective route to profitable and sustainable

growth.

Established in 1907, Tata Steel is among the top ten global steel companies with an annual crude

steel capacity of over 28 million tonnes per annum (MTPA). It is now one of the world‟s most

geographically-diversified steel producers, with operations in 26 countries and a commercial

presence over 50 countries.

The Tata Steel Group, with a turnover of US$ 26.13 Billion in FY‟12, has over 80,000 employees

across five continents and is a Fortune 500 company.

Tata Steel‟s larger production facilities include those in India, the UK, the Netherlands, Thailand,

Singapore, China and Australia. Operating companies within the group include Tata Steel Limited

(India), Tata Steel Europe Ltd. (formerly Corus), NatSteel, and Tata Steel Thailand (formerly

Millennium Steel).

VISION

Our vision is to be the global steel industry benchmark for value creation and corporate citizenship

GOALS

The Tata Steel Group is proud of its performance culture. We are committed to the pursuit of

challenging targets, and to safety, environmental protection, continuous improvement, openness and

social responsibility in every aspect of our business around the world.

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Four key corporate goals which will be achievable by Tata Steel by 2012 are as follows:

Value Creation: Deliver a 30% return on invested capital (ROIC)

Safety: Achieve an industry leadership position by driving down our lost time injury

frequency rate (LTIF) to a maximum of 0.4 incidents per million hours worked

Environment: reduce carbon dioxide (CO2) emissions to less than 1.9 tonnes per tone of

crude steel (t/tls)

People: Rank as an employer of choice in the top quartile across all industries

Management

The Company is managed by the Board of Directors, which formulates strategies, policies and

reviews its performance periodically.

The Board has 12 members, comprising of 1 Chairman, 1 Vice Chairman, 1 Managing Director, 7

Ind. Non-Executive Directors, 2 Additional Directors.

NAME DESIGNATION

Ratan N Tata Chairman

B Muthuraman Vice Chairman

H M Nerurkar Managing Director

Subodh Bhargava Ind. Non-Executive Director

Nusil N Wadia Ind. Non-Executive Director

Jacobus Schraven Ind. Non-Executive Director

S M Palia Ind. Non-Executive Director

Andrew Robb Ind. Non-Executive Director

Ishaat Hussain Non Exe. Non Ind.Director

Karl-Ulrich Koehler Non Exe. Non Ind.Director

Cyrus Pallonji Mistry Additional Director

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Mallika Srinivasan Additional Director

Source: www.moneycontrol.com

Shareholding Pattern

Share holding

Share holding pattern as on : 31/03/2012 31/12/2011 30/09/2011

Face value 10 10 10

No. Of Shares

% Holding

No. Of Shares

% Holding

No. Of Shares

% Holding

Promoter's holding

Indian Promoters 304514362 31.35 294675576 30.72 294619519 30.71

Sub total 304514362 31.35 294675576 30.72 294619519 30.71

Non promoter's holding

Institutional investors

Banks Fin. Inst. and Insurance 238552715 24.56 235786711 24.58 231010110 24.08

FII's 139439388 14.36 123625751 12.89 140604911 14.66

Sub total 414697768 42.7 399135384 41.61 406322273 42.36

Other investors

Private Corporate Bodies 29024559 2.99 34235991 3.57 31063806 3.24

NRI's/OCB's/Foreign Others 212797 0.02 575726 0.06 37397 -

GDR/ADR 18091089 1.86 20540793 2.14 24182668 2.52

Govt 121659 0.01 121659 0.01 121659 0.01

Sub total 47450104 4.89 55474169 5.78 55405530 5.78

General public 204552216 21.06 209929321 21.89 202867128 21.15

Grand total 971214450 100 959214450 100 959214450 100

Projects and Investments

The Tata Steel Group‟s growth and globalization strategy is driven by its business expansion while

maintaining profitability and mitigating risks. The Tata Steel Group over the years has focused on

enhancing raw material security and announced major joint ventures in various parts of globe.

Australia:

Bowen Basin Coking Coal Mine Project – 58 million tonnes of raw coal for 14 years

76 | P a g e

Canada:

Taconite Project and Direct Shipping Ore Project

India:

Seraikela Greenfield Project (12 Million Tonnes Integrated Steel Plant), Jharkhand

Brown Field Project (Extension of Jamshedpur Plant from 5MTPA to 10MTPA), Jamshedpur

Jagdalpur (Bastar) Project, Chhattisgarh

Kalinganagar Greenfield Project (6MTPA steel), Odisha

Port Project at Dhmra, Odisha

Haldia Plant, West Bengal

Tuticorin Mines (60,000 tonnes per annum of titanium di-oxide), Tamil Nadu

Ivory Coast:

Nimba Iron Ore Project

Mozambique:

Benga Coal Project

Netherlands

Ijmuiden Steel Works (7.52MTPA)

Oman

Limestone Project

Singapore

Tata NYK Shipping Pte Ltd.

Tata Steel will invest up to 250 million pounds (about Rs 2,000 crore) in its port Talbot facility in

the UK in the near term, including 185 million pounds for rebuilding a blast furnace.

According to Minister of Wales Carwyn Jones Tata Steel will invest 800 million pounds in Wales

over the next five years.

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Recognition

Over the years, Tata Steel has won many rewards and recognitions. Be it corporate excellence where

the company engages in best practices, its state-of-the-art products or its social endeavours, the

company has been rewarded in each sector over and over again

Year 2012

HM Nerurkar conferred with Corporate Leadership Award (7th

May,2012)

Tata Steel tops list of India‟s 50 most admired companies (22nd

April,2012)

B Muthuraman conferred Padma Bhushan by President Pratibha Patil(5th

April,2012)

Tata Steel among World‟s Most Ethical Companies (17th

March,2012)

Tata Steel acknowledged as the most admired Indian Company (13th

March,2012)

Tata Steel conferred with the prestigious CII-ITC sustainability Prize 2011 (10th

February,2012)

Tata Steel Bags Awards for „Best Sports Advertisement‟ and „Best Corporate Involvement in

Sports‟ at NDTV‟s „Marks for Sports‟ Campaign (6th

February,2012)

Tata Steel Bags Prime Minister‟s Trophy(20th

January,2012)

Tata Steel Bags CNBC Asia‟s Corporate Social Responsibility Award at „CNBC – TV 18

India Business Leader Awards 2012(IBLA)

Tata Steel bags award at “NDTV Profit Business Leadership Awards 2011”

Subsidiaries

Tata Steel‟s position has been strengthened over the years through meaningful acquisitions of

enterprises across the globe. These enterprises have individually emerged as leaders in their

respective industry segments leading to judicious investments, therefore facilitating growth.

Jamshedpur Injection Power Ltd (Jamipol)

Jamshedpur Utility and Services Company Ltd (JUSCO)

Lanka Special Steel Ltd

Rawmet Ferrous Industries

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Silla Eastern Company Limited

Tata Steel KZN

Tata Metaliks Ltd

Tata Pigments Ltd

TRL Krosaki Refractories Ltd

Tata Steel Processing and Distribution Ltd (TSPDL)

Tata Sponge Iron Ltd (TSIL)

Tayo Rolls Ltd

Tinplate Company of India Ltd (TCIL)

TRF Ltd

The Indian Steel and Wire Products Ltd (ISWP)

Prospect

Integration and growth are the new buzzwords in Tata Steel‟s corridors as the company looks at

global markets not just to sell steel, but also to acquire raw material assets to fuel further expansion.

Already, the consolidation of Corus‟s operations has catapulted Tata Steel to the position of the sixth

largest steelmaker in the world. The steel giant has set up joint ventures for the development of

limestone mines in Thailand and for procuring low-ash coal from Australia and Coaking Coal from

Mozambique. It is also putting up a deep-sea port in coastal Orissa and exploring opportunities in the

titanium dioxide business in Tamil Nadu.

Core Values of Tata Steel

Integrity: We must conduct our business fairly, with honesty and transparency. Everything

we do must stand the test of public scrutiny

Understanding: We must be caring, show respect, compassion and humanity for our

colleagues and customers around the world, and always work for the benefit of the

communities we serve

Excellence: We must constantly strive to achieve the highest possible standards in our day to

day work and in the quality of the goods and services we provide

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Unity: We must work cohesively with our colleagues across the group and with our

customers and partners around the world, building strong relationships based on tolerance,

understanding and mutual cooperation

Responsibility: We must be responsible and responsive to the countries, communities and

environments in which we work, always ensuring that what comes from the people goes back

to the people many times over

SWOT Analysis of Tata Steel

Strength

High Mineral Reserves

Highly credible management team who has displayed their skills in expanding the company

through inorganic route.

Highly sophisticated Information Technology – the entire mining operation of the Company

is safe guarded against accident occurrence.

Innovativeness of Tata Steel with respect to its competitors – Tata Steel has the lowest

operating cost for steel manufacture in the world. Further it has displayed effective means in

adopting and eco-friendly and sustainable approach towards the manufacture of steel.

High Brand Value

Corporate Governance – Tata Steel has an impeccable record for corporate governance.

Adaptability of the company in the fast change of the environment – Tata Steel has displayed

immense agility in the recent past during the global financial tsunami

Excellent procurement philosophy – Tata Steel has around 70% of its supplies through long

term contracts

Excellent integration with Corus – Corus has a great reserve of around 2000 metallurgists

and technology which could be exploited by Tata Steel on several fronts

Spawning upon opportunities – Tata Steel has been amongst the earliest to spot the escalation

in the demand for Steel in the forthcoming years. It has hence invested heavily in the

expansion of its existing facility at Jamshedpur and is setting up other green field projects at

Orissa, Jharkhand etc.

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Weakness

Huge debt burden – Tata Steel is having a total debt of more than 10 Billion USD

High attrition rate

Degradation in brand value owing to job losses

Products in the portfolio lacking demand – Aerospace steel

Low cost recovery

Opportunities

Competitive position of the Company- Tata Steel is the second largest producer in India and

the sixth largest producer in the world

Newer technologies

Opportunities in the field – India have geared up for rapid expansion in the field of

infrastructure.

Opportunities for demand of higher prices

The movement of Tata Steel in the value chain front

Improvement in the quality of operations, products, inventory management

Time for diversification

Threats

International Competition

Resources to cushion the from business environmental change

Adoptability of the company to technological changes

Global Financial Crises

Adverse effects of land acquisition picketing

Decrement in the sales volumes

Regulatory norms

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JSW is part of US $ 15 billion O.P. Jindal Group. It has grown to US $ 9 billion in little over a

decade and has presence across various sectors – Steel, Energy, Minerals, Port & Infrastructure,

Cement, and Aluminum.

JSW Steel, the flagship company of the JSW Group, is today an integrated steel manufacturer. JSW

Steel is the largest private sector steel manufacturer in terms of installed capacity.

The Group set up its first steel plant in 1982 at Vasind near Mumbai. Soon after, it acquired Primal

Steel Ltd., which operated a mini steel mill at Tarapur in Maharashtra.

In 1994, Jindal Vijaynagar Steel Ltd. (JVSL) was setup, with its plant located at Toranagallu in the

Bellary-Hospet area of Karnataka.

In 2005, Jindal Iron and Steel Co. Ltd. (JISCO) and JVSL merged to form JSW Steel Ltd.

JSW Steel has acquired a majority stake in Ispat Industries Ltd. making JSW Steel India‟s largest

steel producer with a combined capacity of 14.3 MTPA by March 2011. The Company has also

acquired mining assets in Chile, USA and Mozambique.

JSW Steel offers the entire gamut of steel products – Hot Rolled, Cold Rolled, Galvanized,

Galvalume, Pre-painted Galvanized, Pre-painted Galvalume, TMT Rebars, Wire Rods & Special

Steel Bars, Rounds & Blooms. JSW Steel has manufacturing facilities at Toranagallu in Karnataka,

Vasind & Tarapur in Maharashtra and Salem in Tamil Nadu.

By 2020, the Company aims to produce 34 Million tons of steel annually with Greenfield integrated

steel palnts coming up in West Bengal and Jharkhand.

VISION

Global recognition for Quality and Efficiency while nurturing Nature and Society

MISSION

Supporting India‟s growth in Steel Domain with speed & innovation.

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Management

The Company is managed by the Board of Directors, which formulates strategies, policies and

reviews its performance periodically.

The Board has 14 members, comprising of 1 Chairman Emeritus, 1 Chairman and Managing

Director, 1 Jt. Managing Director & Group CFO, 1 Director & CEO, 7 Directors and 3 Nominee

Directors.

NAME DESIGNATION

Savitri Devi Jindal Chairman Emeritus

Sajjan Jindal Chairman and Managing Director

M V S Seshagiri Rao Jt. Managing Director & CFO

Vinod Nowal Director & CEO

Jayant Acharya Director

Yasushi Kurokawa Nominee Director

Zarin Daruwala Nominee Director

S K Gupta Director

Anthony Paul Pedder Director

Vijay Kelkar Director

Uday M Chitale Director

Sudipto Sarkar Director

Kannan Vijayaraghavan Director

Rajneesh Goel Nominee Director

Source: www.moneycontrol.com

Shareholding Pattern

Share

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holding

Share holding pattern as on :

31/03/2012 31/12/2011 30/09/2011

Face value 10 10 10

No. Of Shares

% Holding

No. Of Shares

% Holding

No. Of Shares

% Holding

Promoter's holding

Indian Promoters 78840023 35.34 78440127 35.16 78440115 35.16

Foreign Promoters 5704612 2.56 5704612 2.56 5704612 2.56

Sub total 84544635 37.89 84144739 37.71 84144727 37.71

Non promoter's holding

Institutional investors

Banks Fin. Inst. and Insurance 9751526 4.37 9862290 4.42 9773830 4.38

FII's 45719425 20.49 45139387 20.23 47993890 21.51

Sub total 56235165 25.2 55584800 24.91 58187287 26.08

Other investors

Private Corporate Bodies 10358775 4.64 10671791 4.78 9758453 4.37

NRI's/OCB's/Foreign Others 44610913 19.99 44377093 19.89 44377718 19.89

GDR/ADR 2600938 1.17 3085814 1.38 3085814 1.38

Govt 1237500 0.55 1237500 0.55 1237500 0.55

Others 3224506 1.45 3224516 1.45 2687960 1.2

Sub total 62032632 27.8 62596714 28.06 61147445 27.41

General public 20304768 9.1 20790947 9.32 19637741 8.8

Grand total 223117200 100 223117200 100 223117200 100

PROJECTS AND INVESTMENTS

JSW group have lots of project in India and abroad. Few projects news is as follows:

Vijayanagar Steel Plant Capacity Expansion 10 MTPA to 12 MTPA

JSW Jharkhand Steel Project (Greenfield Project) 10 MTPA with Power Plant

JSW Bengal Steel Project (Greenfield Project) 3 MTPA in Phase I with Power Plant

(Investment Rs. 35,000 Crore)

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Ramp up of US coal Mines Capacity

Recognition

The Times of India Earth Care Award 2012

Corporate Sustainability Award 2009-2011

CII-EXIM Award 2011, 2009,2008,2007

Karnataka Chapter Safety Award 2009

Greentech Environment Excellence Award 2009,2008

ISO – 14001:2004 Certification

IMC Ramakrishna Bajaj National Quality Award 2009, 2008,2007

CII-ITC Sustainability Award 2008

Gold Award in Metal and Mining Sector 2007

Subsidiaries

Indian Subsidiaries

JSW Bengal Steel Ltd.

JSW Jharkhand Steel Ltd.

JSW Steel Processing Centres Ltd. (JSWSPCL)

JSW Building Systems Ltd.

Overseas Subsidiaries

JSW Steel (Netherlands) B.V. (JSW Netherlands)

JSW Steel Holding (USA) Inc. and its subsidiaries viz. JSW Steel (USA) Inc.

JSW Steel (UK) Ltd. and its subsidiaries namely Argent Independent Steel (Holdings)

Ltd. and JSW Steel Service Centre (UK) Ltd.

JSW Panama Holdings Corporation and its Chilean subsidiaries namely Inversiones

Eurosh Ltd. (IEL), Santa Fe Mining (SFM) and Santa Fe Puerto S.A (SFP)

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JSW Natural Resources Ltd (JSWNRL) and its subsidiaries JSW Natural Resources

Mozambique Lda (JSWNRML), JSW ADMS Carvao Lda

Apart from subsidiaries there are many no of Joint Ventures.

Prospects

Economic recovery is expected to continue its positive momentum across most of the economies.

China, with its 12th

Five Year Plan to commerce from 2011 onwards, is slated to shift focus from

growth to income distribution while encouraging Energy Efficiency, Emission Reduction, Resource

Conservation and Social aspects. China is also expected to intensify its focus on exploring domestic

demand and restructuring of steel industry coupled with elimination of inefficient and marginal

capacities. Rest of the world is also expected to witness improved growth led by expanding

Investments and consumption with an improving global trade, even though inflation is a challenge

that most of emerging economies needs to address while keeping the growth momentum intact.

Overall the Steel sector is expected to see a good demand and higher price realization driven mainly

by restocking and surging input cost.

Core Values of JSW Steel

Transparency

Strive for Excellence

Dynamism

Passion for Learning

SWOT ANALYSIS of JSW Steel

Strength

JSW is the first steel producer in this world to use Corex Technology

JSW operates in both the upstream and downstream sectors

Vijayanagar Steel Plant is a fully integrated steel plant

The company has recently launched GALVALUME, a revolutionary product in the steel

industry.

JSW is India‟s largest private steel maker

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The labor and conversion costs (these include labour cost, energy cost and other

manufacturing costs) per ton of steel are among the lowest in the industry (both domestically

and internationally)

Productivity per employee at JSW Steel is comparable to international standards

Weakness:

Inability to utilize 100% capacity

Low perception among investors about the company‟s management and ability to sustain

growth

It does not have own mines for some of its basic raw materials

R&D budget is very less compared to International competitors

Opportunity:

JSW steel has access to top talent from the country and that too at comparatively lower prices

than the competitor‟s price

JSW Steel is located in a fast growing country like India where the per-capita steel

consumption is still low but this means huge potential for growth

Threat:

The entry of the world biggest steel corporations (like Arcelor Mittal) into India will pose a

major threat to the company

The domestic competitors like Tata Steel are expanding rapidly and JSW Steel need to keep

up with the competition

The current economic scenario where steel demand is declining around the world is another

major area of concern for the organization. The company has already postponed and/or

delayed some of its projects which were in the pipeline

The cyclical nature of the Steel industry means that the company needs to control its cost and

have efficient production processes throughout

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The company also needs to manage its rapid growth effectively and not go off track. This is

another area which of concern and is likely to be the managements top priority

Fiscal incentives from the govt. might be another area of concern for the company because

some of these might be withdrawn anytime

7th

February, 1946 the Company was incorporated. Larsen & Toubro carries on business as civil,

mechanical, electrical, chemical & agricultural engineers as manufacturers as importers & exporters

& as contractors. The Company represents a large number of overseas manufactures, notably

manufacturers of tractors, agricultural machinery, dairy machinery, film cooling towers and general

industrial and engineering plants and coal mining machinery.

Larsen & Toubro is a USD 12.8 Billion technology, engineering, construction, manufacturing and

financial services conglomerate, with global operations.It is one of the largest and most respected

companies in India‟s private sector.

More than seven decades of a strong, customer-focused approach and the continuous quest for

world-class quality have enabled it to attain and sustain leadership in all its major lines of business.

L&T has an international presence, with a global spread of offices. A thrust on international business

has seen overseas earnings grow significantly. It continues to grow its overseas manufacturing

footprint, with facilities in China and Gulf Region.

The company‟s businesses are supported by a wide marketing and distribution network, and have

established a reputation for strong customer support.

L&T believes that progress must be achieved in harmony with the environment. A commitment to

community welfare and environmental protection are an integral part of the corporate vision.

In response to changing market dynamics, L&T has gone through a phased process of redefining its

organization model that facilitates growth through greater levels of empowerment. The new structure

is built around multiple businesses designated „Independent Companies‟ or „ICs‟.

VISION

L&T shall be a professionally-managed Indian multinational, committed to total customer

satisfaction and enhancing shareholder value.

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L&T-ites shall be an innovative, entrepreneurial and empowered team constantly creating value and

attaining global benchmarks.

L&T shall foster a culture of caring, trust and continuous learning while meeting expectations of

employees, stakeholders and society.

Management

The Company that we run has a strong heritage of professionalism that places the highest value on

merit and integrity. In the 70th

year of the existence of L&T, all the directors of L&T‟s board are

conscious of their responsibility in transforming the organization to make it truly world class, to

ensure its continued long term success and growth.

NAME DESIGNATION

A M Naik Chairman & Managing Director

K. Venkataramanan CEO & Managing Director

V.K. Magapu Whole-time Director & President

M.V. Kotwal Whole-time Director & President

Ravi Uppal Whole-time Director & President

S.N. Subrahmanyam Whole-time Director & Sr. EVP

R. Shankar Raman Whole-time Director & CFO

Shailendra Roy Whole-time Director & Sr. Executive Vice

President

S. Rajgopal Non-Executive Directors

S.N.Talwar Non-Executive Directors

M.M.Chitale Non-Executive Directors

Thomas Mathew T. Non-Executive Directors

N. Mohan Raj Non-Executive Directors

Subodh Bhargava Non-Executive Directors

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Mrs. Bhagyam Ramani Non-Executive Directors

A.K. Jain Non-Executive Directors

J.S. Bindra Non-Executive Directors

Source: www.moneycontrol.com

Shareholding Pattern

Share holding

Share holding pattern as on : 31/03/2012 31/12/2011 30/09/2011

Face value 2 2 2

No. Of Shares

% Holdin

g

No. Of Shares

% Holdin

g

No. Of Shares

% Holdin

g

Promoter's holding

Foreign Promoters - - 19399135 3.17 - -

Sub total - - 19399135 3.17 - -

Non promoter's holding

Institutional investors

Banks Fin. Inst. and Insurance 14314569

6 23.37 14705680

7 24.03 14972015

6 24.5

FII's 95638792 15.62 84700203 13.84 97404070 15.94

Sub total 31994968

5 52.25 31602138

0 51.65 31891830

5 52.18

Other investors

Private Corporate Bodies 43803839 7.15 45147667 7.38 40728318 6.66

NRI's/OCB's/Foreign Others 5581648 0.91 5647686 0.92 5294036 0.87

GDR/ADR 19099263 3.12 - - 25921934 4.24

Direcctors/Employees - - 2800694 0.46 2699194 0.44

Others 77240660 12.61 74404116 12.16 74404116 12.17

Sub total 14546652

2 23.75 12774127

5 20.88 14878871

0 24.35

General public 14672380

4 23.96 14842394

9 24.26 14319519

4 23.43

Grand total 61214001

1 99.96 61158573

9 99.96 61090220

9 99.96

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PROJECTS AND INVESTMENTS

L&T has strong presence in Indian market and also in foreign. Here are some highlights of those

National Projects:

Rs. 2,592 crore project for construction of residential and commercial buildings in major

cities

Hyderabad Metro Rail Project

Rs. 479 crore power transmission and distribution project

Rs. 265 crore water and solar business

RS. 26 Billion National Highway Project (NH 14 – 244-km between Beawar and Pindwara in

Rajasthan) on BOT DBFO (Design, Built, Finance and Operate) basis, with a concession

period of 23 years

Rs. 1,937 crore NHAI project (Shivpuri-Dewas section of NH-3)

Rs. 2,538 crore Amravati-Jalgaon NHAI Project

Railway Project for Sterlite Energy Ltd. 2400 MW Power Plant

Mono rail project in Mumbai

Rs. 1,047 Crore Indian Railway Cast Steel Wheel Manufacturing Plant in Chhapara, Saran

District of Bihar

Refinery Projects, Petrochemical Projects, Fertilizers, Gas processing project, Modular

process plants

Different Power Projects – Thermal, Hydal, Nuclear, Solar

Steel Plant

IT Project

Shipbuilding Project

Apart from these L&T wants to invest Rs. 10,000-Rs 11,000 crore for a 1600 MW (2x800)

power plant in West Bengal. Also they want to invest Rs. 83,000 crore in Orissa including a

2,000 MW thermal power plant.

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International Project:

L&T is globalizing its operations, with increasing focus on International Business opportunities.

Over the years, L&T has outgrown its national barriers and extended its activities into the

outstretched arms of the Indian Ocean Rim countries. L&T‟s international presence is increasing,

with worksites in 20 countries that encompass South Asia, South East Asia, the Middle East, Russia,

CIS countries including African countries,

UAE – Bridges between Islands, Multi – storied Residential complex, Commercial Complex,

International Airport Terminal, Electrical Substations, Radio Wave Towers, Submarine

Cable and Substation and Tunnel

Oman – Gas Based Power Plant, Tunnel, Transmission Line, Electrical Substations, Bridges

etc.

Qatar – Equipment erection, Process Piping, Office Space, Combined cycle Power plant etc.

Bahrain – Electrical Project, Substation, hotel etc.

Saudi Arabia – 100-200 Bed Hospitals, Substation, Transmission Line, Gas Supply project

etc.

Like these there are also different types of projects handled by L&T in Iraq, Kuwait, Sudan,

Srilanka, Yemen, Uzbekistan, Australia, Mozambique, Nepal, Malaysia, Mauritius,

Bangladesh, Maldives, Bhutan, Jordan, Kenya, Tanzania, Germany, West Indies and Russia.

Recognition

L&T wins ICC „Corporate Governance and Sustainability Vision Award 2012‟

L&T Ranks 3rd

in BSE Green Index

L&T Top Engineering Company in Business Today Listing of „Best Companies to Work

For‟

FICCI Awards for Excellence in Quality Systems

L&T Ranks Among Top 10 in S&P ESG India Index

L&T CMD Ranked One of India‟s Top Two CEOs from 1995 to 2011

L&T wins NDTV Profit Business Leadership Award

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Subsidiaries

L&T has a large number (119) of subsidiaries carrying out its business all over the world. Name of

some subsidiaries are as follows:

Larsen & Toubro Infotech Ltd.

L&T Infocity Ltd.

L&T Infrastructure Development Projects Ltd.

L&T Power Ltd.

Tractor Engineers Ltd.

L&T Urban Infrastructure Ltd.

L&T Tech Park Ltd.

L&T - MHI Boilers Private Ltd.

L&T – MHI Turbine Generators Private Ltd.

Offshore International FZC

L&T Power Development Ltd.

L&T Shipbuilding Ltd.

L&T Technologies Ltd.

L&T Solar Ltd.

L&T Metro Rail (Hyderabad) Ltd.

L&T Kobelco Machinery Private Ltd.

Prospects

L&T has diversified business. So, it is emerging in all the field and now huge prospects in many

areas. Some salient features are as follows:

Road Projects are offered on BOT DBFO basis and will follow new MCA.

Total coast line of over 7517 Kms shared by 9 states.

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12 Major Ports and 187 minor ports

CAGR (10yr period) Major ports – 6.20%; Minor Ports – 21.95%

CAGR proj. till 2012-13 7.7% overall and 15.5% containers

Terminal development in Major ports through bid route

Inland waterways development to supplement road/rail in internal logistics chain

Urban Infrastructure Development

Power Transmission Line

Railway Projects – Special Freight Corridor

Potential Airports Chennai & Kolkata

Non Metro airports – City Side Development

Emerging Opportunities in the Fertilizer Sector

Emerging Opportunities in Power Sector (Renewable & Non-renewable)

Shipbuilding

Aerospace

Industrial Machinery

By seeing these we can say that L&T has great future and it will grow continuous basis.

Core Competencies:

Process Technology

Modern R&D centre located at Powai Campus which support to all the business units for

successful implementation of large turnkey EPC Projects.

Highly talented Chemical Engineering group is responsible for offering complete process

engineering solution.

The Material Science & Corrosion Engineering group provides vital technology support

to all projects.

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The Rotating Machinery Group offers complete solutions for machinery-related

applications.

The Mechanical Engineering Group is engaged in: Theoritical and experimental stress

analysis for equipment, structures and piping systems.

The Ocean Engineering Group supports the L&T Hydrocarbon‟s efforts to develop

expertise in deep-water Exploration/Production projects in Upstream Hydrocarbon sector.

The Water Technology Group is providing necessary expertise to exploit the business

potential in water management and knowledge-based water treatment solutions.

Basic & Detailed Engineering

L&T Engineering

Engineering Support By Joint Venture Companies

Electrical & Instrumentation (E&I) Engineering Group

Front End Engineering and Design

Engineering Design & Research Centre

World-class Heavy Engineering workshops at Powai (Mumbai), Hazira, Kansbahal, Chennai,

Vadodara, Katupalli and in Oman.

Global Procurement supported by SAP R/3 ERP System.

Efficient Project Management

Largest Construction Organization

Highly Skilled Commissioning Team

SWOT ANALYSIS of L&T

Strength

Huge Order Book Position – L&T‟s current order book stands at Rs. 1.4 trillion

A big player in Power Sector

Dharma Port has started operation

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A leader in the city rail segment

Highly skilled manpower

Excellent in-house learning facility

Global Procurement System

Modular Fabrication Yard

Excellent R&D Facility

Front End Engineering

Diversified Business

Weakness

High attrition rate

Highrarchy system

Debt Burden

Slow decision making

Opportunity

Huge Investment in Infrastructure Sector

Emerging Power Sector(Renewable & Non-Renewable)

Value unlocking in the Company

Opportunities in the Middle East

Emerging growth Fertilizers Segment

Threat

Increase in Raw material cost

Slow decision making in the hydrocarbon space

Deacceleration of India‟s GDP growth rate

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Political situation of Middle East

Execution delays

BHEL is an integrated power plant equipment manufacturer and one of the largest Engineering and

Manufacturing Company in India in terms of turnover. It was established in 1964, ushering in the

indigenous Heavy Electrical Equipment industry in India – a dream that has been more than realized

with a well-recognized track record of performance. The company has been earning profits

continuously since 1971-72 and paying dividends since 1976-77.

BHEL is engaged in the design, engineering, manufacture, construction, testing, commissioning and

servicing of a wide range of products and services for the core sectors of the economy, viz. Power,

Transmission, Industry, Transportation, Renewable Energy, Oil & Gas and Defense. They have 15

manufacturing divisions, two repair units, four regional offices, eight service centers, eight overseas

offices and 15 regional centers and currently operate at more than 150 project sites across India and

abroad. BHEL places strong emphasis on innovation and creative development of new technologies.

BHEL‟s research and development (R&D) efforts are aimed not only at improving the performance

and efficiency of existing products, but also at using state-of-the-art technologies and processes to

develop new products. This enables them to have a strong customer orientation, to be sensitive to

their needs and respond quickly to the changes in the market.

The high level of quality & reliability of BHEL‟s products is due to adherence to international

standards by acquiring and adapting some of the best technologies from leading companies in the

world including General Electric Company, Alstom SA, Siemens AG and Mitsubishi Heavy

Industries Ltd., together with technologies developed in their own R&D centers. Most of their

manufacturing units and other entities have been accredited to quality Management Systems (ISO

14001:2004) and Occupational Health & Safety Management Systems (OHSAS 18001:2007).

BHEL have a share of around 59% in India‟s total installed generating capacity contributing 69%

(approx) to the total power generated from utility sets (excluding non-conventional capacity) as of

31st March, 2012. BHEL have been exporting their power and industry segment products and

services for approximately 40 years around 70 countries. They had cumulatively installed capacity of

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over 8,500 MW outside of India in 21 countries, including Malaysia, Iraq, the UAE, Egypt and New

Zealand. Their physical exports range from turnkey projects to after sales services.

VISION

A global engineering enterprise providing solutions for a better tomorrow

MISSION

Providing sustainable business solutions in the fields of Energy, Industry & Infrastructure

MANAGEMENT

The Company is managed by the Board of Directors, which formulates strategies, policies and

reviews its performance periodically. The Chairman & Managing Director and eleven Whole Time

Directors manage the business of the company under the overall supervision and guidance of the

Board.

The Board has 13 members, comprising of 1 Chairman & Managing Director, 11 Whole Time

Directors, 1 Non Official Part Time Directors.

NAME DESIGNATION

B Prasada Rao Chairman and Managing Director

Ashok Kumar Basu Director

Reva Nayyar Director

Trimbakdas S Zanwar Non Official PartTime Director

Atul Saraya Director

M K Dube Director

R Krishnan Director (Human Resources)

Ambuj Sharma Director

M A Pathan Director

V K Jairath Director

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S Ravi Director

O P Bhutani Director

P K Bajpai Director (Finance)

Source: www.moneycontrol.com

Shareholding Pattern

Share holding

Share holding pattern as on :

31/03/2012 31/12/2011 30/09/2011

Face value 2 2 10

No. Of Shares

% Holding

No. Of Shares

% Holding

No. Of Shares

% Holding

Promoter's holding

Indian Promoters 1657552000 67.72 1657552000 67.72 331510400 67.72

Sub total 1657552000 67.72 1657552000 67.72 331510400 67.72

Non promoter's holding

Institutional investors

Banks Fin. Inst. and Insurance 278981481 11.4 187045538 7.64 33608967 6.87

FII's 330058708 13.48 299370070 12.23 63016321 12.87

Sub total 644364302 26.33 630656798 25.77 128371135 26.22

Other investors

Private Corporate Bodies 69234164 2.83 91783409 3.75 17369532 3.55

NRI's/OCB's/Foreign Others 4739547 0.19 4479205 0.18 821633 0.17

Direcctors/Employees 3100 - 3100 - 620 -

Others 5937139 0.24 3219760 0.13 532898 0.11

Sub total 79913160 3.26 99484684 4.06 18724525 3.83

General public 65769748 2.69 59905728 2.45 10913782 2.23

Grand total 2447599210 100 2447599210 100 489519842 100

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PROJECTS AND INVESTMENT

Despite stagnation in the power sector and intense competitive pressure in domestic and overseas

markets, BHEL secured orders worth Rs. 22,096 Crore, during the year 2011-12. At the end of the

year, cumulative orders in hand for execution in 2012-13 and beyond, stand at about Rs. 1,34,681

Crore.

From being one of the most rapidly growing sectors till last year, the power sector in India has

witnessed a sharp slowdown during 2011-12. Project developers are facing numerous constraints

which have affected on-going as well as new projects due to factors like Coal allocation, Gas

allocation, Environmental clearance, Land acquisition, Financing, legal issues etc. As a result, the

bidding process of many projects was delayed and many projects, for which bids had been opened

more than a year ago, could not be concluded.

In the Power Sector business segment, BHEL continued to demonstrate its competitiveness by

bagging most of the Power plant & associated equipment orders placed during the year, in the

country. Orders worth Rs. 13,937 Crore were secured during the year 2011-12.

Significant orders received in the Power Sector include:

Main plant equipment package for 2x660 MW Singrauli Supercritical Power Project from

DB Power (MP) Ltd.

Main plant equipment package for 2x660 MW Singareni Thermal Power Project from

Singareni Collieries Co Ltd.

2x660 MW Steam Generator order for Mauda Supercritical Thermal Project of NTPC against

bulk tender

First ever order for new rating thermal set of 300 MW rating from Abhijeet Projects Ltd.

Significant orders received in the Industry Sector include:

Continued Customer Confidence – 4 STGs from Grasim Pulp & Fibre Division

Bagged Single largest Raw Material Handling System (RMHS) order worth Rs. 1,395 Crore

from NMDC for their 3 MTPA Integrated Steel Plant being set up at Nagamar, Chhattisgarh.

Bagged Single largest order for 85 sets 25 KV AC EMU (Conv.) from ICF, Chennai and for

870 sets Wheel and Axle assembly from the Railway Board

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Secured Major order for supply of 6 nos. state-of-the-art AC Drilling Rigs from ONGC,

received after a gap of 18 years.

Record orders for motors from CHP/AHP suppliers for 217 motors and for 15 nos. 980-6500

KW motors from Manikgarh Cement.

Secured orders for 765/400 KV substation at Raichur, 400/220 KV Aurangabad substation &

400 KV Wardha substation Extn.

Secured orders for 14 nos. 285 MVA, 400 KV Generator Transformers for KAPP and RAPP

nuclear power plants of NPCIL

Secured orders for 28 nos. Power Transformers from PSTCL of 100 MVA, 220/66 KV and

12 nos. 160 MVA, 220/66KV, 19 nos. 160 MVA, 220/132 KV Auto Transformers and 32

nos. 132 KV Transformers from MPPTCL

Significant orders received in International business include:

Ukraine – Entry into new market – BHEL made its maiden entry into Ukraine by securing an

order for a 27 MW Steam Turbine Generator (STG) package from the ArcelorMittal group.

Single largest export order for Transformers – BHEL secured the single largest export order

for transformers for Punatsangchhu - I Hydroelectric Project, Bhutan

Letter of Intent received for 6x170 MW Punatsangchhu – II Hydroelectric Project, Bhutan

Repeat order for Motors from Kenya

New product in existing market – Wellheads from Georgia

Footprints strengthened in 21 countries across the globe – Indonesia, Iraq, Bangladesh,

Yemen, Nigeria and UAE

Recognition (2011-12)

„SCOPE Meritorious Award for R&D, Technology Development and Innovation‟ presented

by Hon‟ble President of India, Smt. Pratibha Patil

„MoU Excellence Award 2009-10‟ as the Top Performing CPSE in „Industrial Sector‟

presented by Hon‟ble Prime Minister of India, Dr. Manmohan Singh

NDTV Business Leadership Award

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„ICWAI National Awards for Excellence in Cost Management‟

Essar Steel Infrastructure Excellence Award 2011

National Safety Award

Under the Rolta Corporate Awards 2010 of Dun & Bradstreet, BHEL was selected as the top

Indian Company under the „Engineering /Capital Goods‟ sector

The „Intellectual Property Award 2011‟ was conferred on BHEL by CII

BHEL also won the „Golden Peacock Award for Occupational Health & Safety 2011‟ and

„Golden Peacock Award for Innovation Management 2011‟ in the Manufacturing Sector

category

BHEL was awarded the „ EXIM Achievement Award‟ in the Import Category by the Tamil

Chamber of Commerce.

„Dainik Bhaskar India Pride Gold Award 2011‟, „Gentle Giant‟ Award from the Dalal Street

Investment Journal

„Enertia Award 2011‟

Top Export Award

BHEL was recognized as the „Best Engineering Company to Work For‟ in the Engineering &

Automotive category by Business Today magazine.

BHEL has been ranked the Ninth Most Innovative Company in the world by the renowned

US Business magazine Forbes

3 Quality Circles won Gold Medals for their case studies at the International Quality Circle

Conference (ICQCC – 2011) held in Yokohama, Japan.

8 Prime Minister‟s „Shram Awards‟ including 2 „Shram Bhushan‟ and 5 „Vishwakarma

Rashtriya Puraskars

PROSPECTS

BHEL is expected to grow 20-25 % year on year between 2012 and 2015, matching with the

country‟s next five year plan strategy for the power sector and this offered good growth prospects for

the vendors in the small and medium sectors.

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Strategic Plan 2012-17 crafted recently, attempts to steer the company with a vision of becoming a

global engineering enterprise. It comprises expanding our offerings in the power sector by building

EPC capability, focus on industry businesses, expansion of spares & services and adoption of a

collaborative approach.

In spite of the current stagnation in Power Sector, they believe that the power sector will continue to

remain a major contributor to their top line with transportation and transmission emerging as the

next big business verticals. BHEL will continue to strengthen their presence in the Nuclear,

Renewable and Water segments.

BHEL will continue to sustain their focus on innovation to develop strong capabilities in product

development and engineering. To uphold their reputation for excellence in their core capability of

„Engineering & Technology‟, they will continue to upgrade existing products and systems to

contemporary levels and develop new products through continuous in-house efforts as well as

through acquisition of new technologies.

In recent years, BHEL has expanded its manufacturing capacity. They are taking various initiatives

to streamline their manufacturing value chain for full exploitation of a strong manufacturing base.

Notwithstanding the uncertainties in the business environment and rising intensity of competition,

BHEL‟s aspire to reach a turnover level of US$ 20 Billion by 2017.

SWOT ANALYSIS of BHEL

Strength

BHEL‟s ability to acquire modern technology and make it suitable to Indian conditions has

been an exceptional strength of the Company

The Company has 180 products under 30 major product groups that cater to the needs of the

core sector like power, industry, transmission, transportation, defense, telecommunications

and oil business

Largest source of domestic business leading to major presence and influence in the market

Low labor cost

Sound Financial position in terms of profitability and solvency

Cost competitiveness

After sales service

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Superior Quality

R & D

Global Presence

Weakness

Difficulty in keeping up the commitments on the product delivery and desired sequence of

supplies

Larger delivery cycles in comparison with international suppliers of similar equipment

Lack of effective marketing infrastructure

Inability to provide supplier‟s credit, soft loans and financing of power projects

Due to poor financial position of state electricity boards, which are the major customers of

BHEL in India, liquidity position of BHEL is not satisfactory

Being a public sector company BHEL is suffering from sub optimality of control due to:

Direct political intervention in managerial decision over an arm length relationship that

would restrict government‟s task of setting appropriate managerial incentive structure

Displacement of social objectives by political objectives, which may lead to redundant

costs and also rising costs

Internal inefficiencies in bureaucratic activity

Private goals that lead to budget growth and employment growth

Opportunities

Private sector power plants to offer expanded market as utilities suffers resource crunch

Demand for power and hence plant equipment is expected to grow

Life expansion program for old power stations

Ageing power plants would give rise to more spares and services business

Easy processing of joint ventures/collaboration/import/acquisition of new technology

Export opportunities

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Financial and operational autonomy for profit making public sector enterprises

Threats

Multilateral agencies reluctant to lend to power sector because of poor financial management

of S.E.Bs

Increased competition both national and international

Level playing ground not available, foreign companies spending much more on business

promotion tactics

More concessions to private sector and not to government owned utilities like NTPC or

S.E.Bs, so future power projects would be opened up in private sector

FINANCIALS OF DIFFERENT COMPANIES

FINANCIALS OF NTPC

Results for FY’12, which signifiy as follows:

Highest ever turnover. Rs. 64832.00 Crore (Up 9.43% over FY‟11)

Highest ever net profit. Rs. 9,223.73 Crore (Up 1.33% over FY‟11)

Increase in EPS over FY‟11 due to increase in net profit.

Increase in Reserves and Highest ever. Rs. 65,045.71 Crore (Up more than 9% over FY‟11)

NTPC paid highest ever interim dividend of Rs. 2885.92 crore.

Highest ever generation in Unit :– 222.07 Billion and NTPC‟s overall PLF(85.00%) was far

better than total India‟s PLF(73.29%).

FINANCIALS OF TATA POWER10

Results for FY’12, which signifiy as follows:

Group‟s FY‟12 Consolidated Revenue crosses Rs. 25000 Crores. Revenue up by 34% at Rs.

25868.87 Crores due to strong Operational fundamentals; Operating Profit also up by 16% at

Rs. 5325 Crores;

Consolidated PAT stood at Rs. (1087.68) Crores as compared to Rs. 2059.60 Crores (due to

provisions made for Mundra impairment and deferred stripping costs)

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Crossed 5,000 MW mark, re-affirming its position as the largest integrated power company

in India

On a consolidated Financial Year Segment-wise performance, Net Revenue from Power

business was up by 31% Rs. 16169.59 Crores as compared to Rs. 12305.62 Crores and from

Coal Business was up by 44% at Rs. 9196.52 Crores as compared to Rs. 6400.47 Crores in

the last year. PBIT from Power Business was Rs. 2159.75 Crores as against Rs. 1942.94

Crores and PBIT from Coal Business was at Rs. 1988.05 Crores as compared to Rs. 1673.13

Crores reported last year

Decrease in EPS due to share split (1:10)

Decrease in Face Value

FINANCIALS OF TATA STEEL11

Results for FY’12, which signifiy as follows:

Tata Steel Group‟s PAT (after minority interest and share of profit of associates) during the

financial year 2011-12 (FY‟12) was Rs. 5,390 crores (US$ 1.06 Billion) compared to a profit

of Rs. 8,983 crores (US$ 1.77 Billion) in the financial year 2010-11 (FY‟11). The Group‟s

PAT for Q4 FY‟12 was Rs 433 crores (US$85 Million) compared to a loss of Rs. 603 crores

(US$118 Million) in Q3 FY‟12 and a profit of Rs. 4,176 crores (US$821 Million) in Q4

FY‟11.

Group EBITDA in FY‟12 was Rs. 13,533 crores (US$2.66 Billion) compared to Rs. 17,116

crores (US$3.35 Billion) in FY‟11. Group EBITDA in Q4 FY‟12 was Rs. 3,419 crores

(US$672 Million) compared to Rs. 2,023 Crores (US$398 Million) in Q3 FY‟12 and Rs.

4,782 crores (US$940 Million) in Q4 FY‟11.

Group consolidated turnover of Rs. 1, 32,900 Crores (US$26.13 Billion) in FY‟12 was

11.9% higher than the turnover of Rs. 1, 18,753 crores (US$ 23.34 Billion) in FY‟11. The

consolidated turnover of Rs. 33,999 crores (US$ 6.68 Billion) in Q4 FY‟12 was up by 2.7%

from Rs. 33,103 crores (US$6.51 Billion) in Q3 FY‟12 and by 0.55 from Rs. 33,824 crores

(US$6.65 Billion) in Q4 FY‟11.

The Group‟s Steel deliveries in FY‟12 fell marginally by 1.1% to 24.22 Million Tonnes

compared to 24.50 Million Tonnes in FY‟11. Q4 FY‟12 steel deliveries fell by 6.5% to 6.22

Million Tonnes compared to 6.65 Million Tonnes in Q4 FY‟11, but rose by 6.5% from 5.84

Million Tonnes in Q3 FY‟12.

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Net debt at the end of March 2012 increased slightly to Rs. 47,697 crores (US$ 9.38 Billion)

compared to Rs. 46,660 crores (US$9.17 Billion) at the end of March 2011.

Turnover at Tata Steel India in FY‟12 increased by 15.4 % to Rs. 33,933 Crores (US$6.67

Billion) from Rs. 29,396 crores (US$ 5.78 Billion) in FY‟11. Q4 FY‟12 sales of Rs. 9,479

crores (US$1.86 Billion) were up 13.7% from the Rs. 8,341 crores (US$1.64 Billion) of Q4

FY‟11 and up 13.1% from the Rs. 8,382 crores (US$1.65 Billion) of Q3 FY‟12.

Turnover in Tata Steel Europe in FY‟12 increased to Rs. 82,153 crores (US$16.15 Billion)

from Rs. 73,844 crores (US$14.52 Billion) in FY‟11. Q4 FY‟12 sales were Rs. 19,923 crores

(US$3.92 Billion) compared to Rs. 21,488 crores (US$4.22 Billion) in Q4 FY‟11 and Rs.

20,535 crores (US$ 4.04 Billion) in Q3 FY‟12. FY‟12 sales increased by 3.7% over FY‟11 as

per Tata Steel Europe‟s reporting currency.

The Board of Directors of the Company has recommended a dividend of RS. 12 per equity

share for the financial year ended March 2012.

FINANCIALS OF JSW STEEL12

PARTICULARS Q4 FY’12 FY’12

Crude Steel Production

Growth (YoY)

26% 16%

Saleable Steel Sales Growth

(YoY)

33% 28%

Net Sales Growth (YoY) 35% 39%

Operating EBITDA (Crores) 1,652 5,631

PAT (Crores) 752 1,626

Net Total Debt gearing 0.69

Crude Steel Production in FY‟12 and Q4 FY‟12 was 7.43 Million Tonnes and 2.07 Million Tonnes

respectively. Similarly Sales volume in Fy‟12 and Q4 FY‟12 was 7.82 Million Tonnes and 2.31

Million Tonnes respectively.

Results for FY’12, which signifiy as follows:

The Company‟s Gross Sales rose by 42 % to Rs. 36,720 crores as compared to FY‟11

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Net Sales increased by 43% to Rs. 34,124 crores as compared to FY‟11

Gross Sales increased by 40% to Rs. 10.930 crores compared to Q4 FY‟11

Net Sales increased by 41% to Rs. 10,153 crores as compared to Q4 FY‟11

Operating EBITDA for FY‟12 was Rs. 6102 crores and for Q4 FY‟12 is Rs. 1,887 crores

Dip in Net Profit by 19.13% over FY‟11 due to accounting of proportional losses of associate

Company viz. JSW Ispat Steel Limited around Rs. 1930 Crore.

Dip in EPS by 19.14 % over FY‟11 due to decrease in net profit

The Company‟s consolidated net debt gearing as on 31.03.2012 improved to 0.98 against

1.08 as on 31.12.2011

Dividend of Rs. 1 per share on 27, 90, 34,907 10% Cumulative Redeemable Preference

Shares (CRPS) of Rs. 10 each, for the year ended 31.03.2012 subject to approval of the

Members at the ensuing Annual general Meeting

The Board has, further, recommended dividend at Rs. 7.50 per equity share on the 22, 31,

17,200 equity shares of Rs. 10 each for the year ended 31.03.2012, subject to the approval of

the Members at the ensuing Annual General Meeting.

FINANCIALS OF L&T13

Results for FY’12, which signifiy as follows:

Gross Revenue for FY‟12 at Rs. 64,960 crore registered a growth of 23.8% over the previous

year.

Consolidated Group PAT for the year FY‟12 stood at Rs. 4649 crore recording an increase

of 20.1% over the previous year.

Order inflow for the year at Rs. 70,574 crore took the Company‟s Order Book to Rs. 1,

45,723 crore as on March 31, 2012.

Increase in EPS over FY‟11

The Board of Directors has recommended a Dividend of Rs. 16.50 per equity share.

The Company was able to garner sizeable new orders mainly from Building & Factories,

Infrastructure, Power Transmission & Distribution and Minerals & Metals sectors.

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FINANCIALS OF BHEL14

Results for FY’12, which signifiy as follows:

Highest ever turnover of Rs. 49,301 Crore, registering a growth of 19.4% over the previous

year. PBT surged 17.8% at Rs. 10,001 Crore, during the year, compared to Rs. 8,487 Crore in

the year before

PAT rose by 21.2% at Rs. 6,868 Crore against Rs. 5,665 Crore in the previous year. During

the year highest ever interim equity dividend of 136% was paid for 2011-12, maintaining the

track record of paying dividends uninterruptedly since 1976-77.

EPS stood at Rs. 28.06 an increase of 21.2% over that of 2010-11.

Net Asset Value per share stood at Rs. 101.9 reflecting the intrinsic strength of the company

Total export turnover (Physical + Deemed) touched Rs. 22,014 Crore

TECHNICAL ANALYSIS

Bollinger Bands:

Bollinger Bands is a versatile tool combining moving averages and standard deviations and is one of

the most popular technical analysis tools available for traders. There are three components to the

Bollinger Band Indicator:

Moving Average: By default, a 20-period simple moving average is used.

Upper Band: The Upper Band is usually 2 standard deviation above the moving average

Lower Band: The Lower Band is usually 2 standard deviations below the moving average

There are three main methodologies for using Bollinger Bands:

Playing the Bands

Bollinger Band Breakouts

Option Volatility Strategies

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Playing the Bands

Playing the bands is based on the premise that the vast majority of all closing process should be

between the Bollinger Bands. That stated, then a stock‟s price going outside the Bollinger Bands,

which occurs very rarely, should not last and should “revert back to the mean”, which generally

means the 20-period simple moving average.

Buy Signal

A trader buys or buys to cover when the price has fallen below the lower Bollinger Band.

Sell Signal

The sell or buy to cover exit is initiated when the stock, future, or currency price pierces outside

the Upper Bollinger Band.

Bollinger Band Breakouts

Bollinger Band Breakouts occur after a period of consolidation, when price closes outside of the

Bollinger Bands. Other indicators such as support and resistance lines can prove beneficial when

deciding whether or not to buy or sell in the direction of the breakout.

Bollinger Band Breakout through Resistance Buy Signal

Price breaks above the upper Bollinger Band after a period of price consolidation.

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Bollinger Band Breakout through Support Sell Signal

Price breaks below the lower Bollinger Band.

Option Volatility Strategy

There are two basic ways to trade volatility:

i) Buy options with low volatility in hopes that volatility will increase and then sell back

those options at a higher price

ii) Sell options with high volatility in hopes that volatility will decrease and then buy back

those same options at cheaper price

Candle Stick

A candlestick chart is a style of bar-chart used primarily to describe price movements of a security,

derivative, or currency over time.

It is a combination of a line-chart and a bar-chart, in that each bar represents the range of price

movement over a given time interval. It is most often used in technical analysis of equity and

currency price patterns.

The hollow or filled portion of the candlestick is called “the body” (also referred to as “the real

body”). The long thin lines above and below the body represent the high/low range and are called

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“shadows” (also referred to as “wicks” and “tails”). The high is marked by the top of the other

shadow and low by the bottom of the lower shadow.

If the stock closes higher than its opening price, a hollow candlestick is drawn with the bottom of the

body represents the opening price and the top of the body representing the closing price.

If the stock closes lower than its opening price, a filled candlestick is drawn with the top of the body

representing the opening price and the bottom of the body representing the closing price.

The main behavior levels could be found here:

Buy: - The candle is white, positive. There are much more buying pressure in specified

period and it moved price up. Buyers were in charge and it can confirm broader positive

situation.

Sell: - The candle is black, negative. Selling was in action and they pushed price down. It

could confirm negative chart situation.

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NIFTY CHART

TECHNICAL ANALYSIS OF DIFFERENT COMPANIES

Technical Analysis of NTPC

Bollinger Chart

The graph shows the market trend of NTPC stock price for last seven month (Nov‟11 – May‟12).

The graph shows the upper band, stock fluctuation line, moving average line and lower band for the

stock of NTPC. The green line in the top shows the upper band and red line at the bottom side shows

the lower band. When the price of the stock touches the upper band, the stock is said to be

overbought and there is some good news in the market. When the price of the stock touches the

lower band, the stock is said to be oversold and there is some bad news in the market.

For example, 4th

Nov‟11 the stock price was 179.92 and after that stock had started falling upto

155.45 still 22nd

Nov‟11 and that point of time NIFTY was also not doing well. From 8th

Nov‟11 –

21st Nov‟11 the NIFTY was also showing downtrend (5289.35 – 4778.35). 17

th Feb‟12 NTPC stock

price had crossed the upper bollinger band and the stock price set a high (187.96) within these 7

months. From 7th

Feb‟12 – 17th

Feb‟12 the stock was showing uptrend and there was huge buying

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pressure. On that time NIFTY market was also in uptrend (5564.30). As in 17th

February the stock

had crossed the upper band line so, it is the best time for the investors to sell the stock. So, they had

started of selling their stock.

Source: sharekhan ltd

The stock was also moving with the moving average line but in the month of Nov‟11 it had came

down side to the moving average due to market performance of NIFTY was not good. At that time

everyone was in selling mood.

The resistance level for NTPC is 187.96, 179.32, 175.75 and support level is 154.74, 140.88.

In 22nd

Nov‟11 the stock reaches the support level so; it was the best time to buy and after 22nd

Nov‟11 stock had started rising.

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In the month of Nov‟11 & Dec‟11 the market was volatile so the Bollinger Band width was wide and

from Jan‟12 the width reduced as the market was in uptrend. But after that the width had increased

due to fluctuation in Stock market. But last week of April‟12 the width reduced due to market got the

news of different annual performance report of the companies.

But from 30th

April‟12 towards the stock had started declining due to global economy problem and

rupee depreciation and the stock had reached to 141.05 on 16th

May‟12 and 23rd

May‟12. After that it

had started rising. So, it is the best time to buy the NTPC stock to get good return in future.

Candle Stick

Source: Sharekhan Ltd.

From the above graph we can say that the stock was showing down trend from 8th

Nov‟11 – 22nd

Nov‟11 as it is showing red and the selling pressure was high. In this time NIFTY market was not

performing well. But in 23rd

Nov‟11 the candle stick is showing hammer that means long declination

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period is over and it is time for reversal. After a long declination it is a bullish reversal. But 24th

Nov‟11 – 29th

Nov‟11 there was not much participation between buyers and sellers. But after that

candle stick is showing that buy was very high upto 5th

Dec‟11 and in this point of time NIFTY

market was also good. It had reached one resistance level so after that again there is time for selling.

On 20th

Dec‟11 the stock had reached to support level so now its again time for buying. But at that

time market was not volatile and little bit steady so there was no that much of movement of stock

(buying and selling) upto 5th

Jan‟12. On 6th

Jan‟12 candle stick shows the hammer formation that

means it‟s a bullish signal for the market. On 11th

Jan the stock was traded highest in volume within

these seven months. Up to 23rd

Jan‟12 market has shown the bullish trend and it touches the

resistance level. So, again the stock came little bit down the trend continue up to 30th

Jan‟12. Up to

2nd

Feb‟12 market was flat and stock movement was not that much. It had reached to another support

level (169.94). So, now again stock had shown the uptrend and there was huge buying pressure on 2nd

Feb‟12 and up to 17th

Feb‟12. The stock had reached its highest value (187.96) on that day. Now this

is the time to book profit for the investors. So, shareholders had started selling of their stocks. Up to

7th

March‟12 the stock had shown the declining trend and there was pressure in selling. On 7th

March‟12 the stock had reached the support level (169.94). So, now again this is the time for buyers

to buy the shares. Up to 15th

March‟12 the stock had shown the uptrend. It had touched another

resistance level (179.32). On 16th

March‟12 onwards the stock had started declining. From mid of

March‟12 to 3rd

week of April market was steady so there is not that much of movement of stock

between buyers and sellers. From April last week onwards due to market volatility, global economic

condition the stock had started declining and on 16th

May‟12 the stock had touched the lowest

support level of 140.88. So, this was time to buy the stock. From 23rd

May‟12 onwards the stock had

started increasing. So, this is the time buy NTPC stock and gets good return in future.

Technical Analysis of Tata Power

Bollinger Chart

The graph shows the market trend of Tata Power stock price for last seven month (Nov‟11 –

May‟12). The graph shows the upper band, stock fluctuation line, moving average line and lower

band for the stock of Tata Power. The green line in the top shows the upper band and red line at the

bottom side shows the lower band. When the price of the stock touches the upper band, the stock is

said to be overbought and there is some good news in the market. When the price of the stock touches

the lower band, the stock is said to be oversold and there is some bad news in the market.

Initially Tata Power stock was trading at 900-1400 range. But 26th

Sep‟11 Tata Power Management

had split their share at 1:10. They split the equity share of Rs. 10 each into equity shares of Rs. 1

each.

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Source: sharekhan Ltd.

Now Tata Power is trading between 80 – 120 range. After the spliting of share Tata Power share was

showing downtrend and it was moving along with the moving average line. In 20th

Dec‟11 the share

price touched lowest support level of 80.94 which is far below the lower band line because NIFTY

market was not performing well at that time. So, this was the time for buying the stock. The stock

started rising and cross the moving average line on 22nd

Dec‟11. From 2nd

Jan‟12 onwards the stock

was showing uptrend 17th

Feb‟12 and it touches the resistance level of 118.64 which was greater than

the upper band. This was the time to book the profit. So, the shareholders had started selling and 27th

Feb‟12 it touched the support level of 109.79 and again it had started rising as the buyers again

started buying and up to 1st March‟12 stock uptrend was there. From 3

rd March‟12 – 28

th March‟12 it

was in downtrend and it had reached one support level of 95.36. From 29th

March‟12 – 19th

April

stock was showing slightly uptrend but NIFTY market was less volatile. From 20th

April‟12 – 30th

April‟12 the stock was stock was trading very less. After 30th

April‟12 the stock started falling due to

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global economic scenario, rupee fall and NIFTY market fall. This trend was continue up to 25th

May‟12 and the price of the stock was below moving average line. From 26th

May‟12 onwards the

stock again started rising and cross the moving average line. So, this is the time for invest in Tata

Power stock and get good return in near future.

Candle Stick

Source: Sharekhan Ltd.

From the above graph we can say that the in the month of Nov‟11 the stock was showing downtrend

as the NIFTY was not performing well at that time and the selling pressure was high to stop further

loss. Then 2nd

Dec‟11 – 8th

Dec‟11 the stock was showing some trend of rising but it was very little

as there is little participation between buyers and sellers. From 9th

Dec‟11 – 20th

Dec‟11 there was

huge selling pressure and the stock had reached support level of 80.30 which is all time low. So, now

this was the time for buying the stock. From 21st Dec‟11 people had started buying of stock but the

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participation was less though NIFTY was performing well. From 2nd

Jan‟12 onwards the candle stick

is showing uptrend and upto 17th

Feb‟12 it had almost shown the continuous uptrend but the market

participation of buyers and sellers not that much. From 15th

Feb‟12 – 17th

Feb‟12 the buying pressure

was very high. On 17th

Feb‟12 it had touched the highest price. Now, this was the time for selling and

book the profit before Budget 2012-13. 20 & 22nd

Feb‟12 the selling pressure was there and it had

crossed one support level of 111.71. So, again there will be buying. 23-24th

Feb‟12 there was buying

but in less volume as the market was volatile. 27th

Feb‟12 again selling pressure and cross the support

level of 111.71. 28th

Feb‟12 – 1st March‟12 there was buying pressure of stock. From 5

th March‟12

onwards again there was selling pressure of stock and upto 28th

March the stock was downwards

trend as the NIFTY market was also not performing well. From 28th

March‟12 – 20th

April‟12 the

stock had shown uptrend that there is a particiaption between buyers and sellers and the volume is

less. From 2nd

May‟12 – 22nd

May‟12 the stock is showing due to NIFTY market, global economic

problem, rupee fall etc and the stock was performing below moving average line. So, from 23rd

May‟12 onwards it had started rising and there is buying tendency and 28th

May‟12 the stock had

crossed the moving average line. So, it is the time to invest in Tata Power stock and get good return

in future.

Technical Analysis of Tata Steel

Bollinger Chart

The graph shows the market trend of Tata Steel stock price for last seven month (Nov‟11 – May‟12).

The graph shows the upper band, stock fluctuation line, moving average line and lower band for the

stock of Tata Steel. The green line in the top shows the upper band and red line at the bottom side

shows the lower band. When the price of the stock touches the upper band, the stock is said to be

overbought and there is some good news in the market. When the price of the stock touches the

lower band, the stock is said to be oversold and there is some bad news in the market.

From the graph we can say that from 8th

Nov‟11 -15th

Nov‟11 the graph is showing down trend and

it touches the lower band. Next day it was increased little bit and again from 17th

– 21st Nov‟11

downtrend and we can say that upto 25th

Nov‟11 the graph had shown the down trend and also stock

price was below moving average line. It was due to volatility in the NIFTY market. From 28th

Nov‟11 – 6th

Dec‟11 it had shown some rising in stock price but volume was not that much. From 7th

Dec‟11 – 30th

Dec‟ 11 it had shown the downwards trend. In 19th

Dec‟11 the stock price had crossed

the lower band also. In 20th

Dec‟11 stock slightly increased. But after that again went down. In 30th

Dec stock had reached the lowest support level of 334.00. So, it was the time for buying the stock.

So, from 2nd

Jan‟12 – 2nd

Feb‟12 the stock had shown the increasing trend as NIFTY was doing well.

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Source: Sharekhan Ltd.

From 2nd

Feb‟12 – 8th

Feb‟12 the stock had reduced slightly and touched the moving average line.

But after that again it had started rising and on 15th

Feb‟12 the stock had reched the highest resistance

level of 494.75 and after that stock was fluctuating and bollinger band also narrow down but the

trading volume was not that much. In the end of April‟12 the bollinger band gap width reduced to

minimum level. This shows that the stock is steady now. But after 28th

April‟12 the stock had fallen

down again due to NIFTY fall, World stock market fall, Global Economic fall and rupee fall.

Candle Stick

From the graph we can say that from 9th

Nov‟12 onwards the stock had started declining and the

trend was upto 25th

Nov‟11 as the selling pressure was high to stop loss. From 28th

Nov‟12 – 2nd

Dec‟11 there was buying pressure but it was very little. From 7th

Dec‟11 – 30th

Dec‟11 the stock had

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shown declining trend and it had reached lower support level of 333.97. This is the time to buy the

stock. From 2nd

Jan‟12 – 1st Feb‟12 there was huge buying pressure and the stock had shown uptrend.

After that again selling pressure for few days and finally on 10th

Feb‟12 market participants buy the

highest volume of stock and 21st Feb‟12 the stock had reached the final resistance value of 501.59

highest within 7 month. This is the time to book the profit and sell the stock. From 22

nd Feb‟12 – 6

th

March‟12, the stock had started declining and showing down trend due to selling pressure. After that

the buying and selling participation in the market for this stock was not much. But after 2nd

May‟12

the selling pressure started increasing as the market condition was volatile and it was up to 22nd

May‟12. After that again the buying pressure started incraesing. But for last three days again the

stock had strted declining.

Source: Sharekhan Ltd.

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Technical Analysis of JSW Steel

Bollinger Chart

The graph shows the market trend of JSW Steel stock price for last seven month (Nov‟11 – May‟12).

The graph shows the upper band, stock fluctuation line, moving average line and lower band for the

stock of JSW Steel. The green line in the top shows the upper band and red line at the bottom side

shows the lower band. When the price of the stock touches the upper band, the stock is said to be

overbought and there is some good news in the market. When the price of the stock touches the

lower band, the stock is said to be oversold and there is some bad news in the market.

From 2nd

Nov‟11 – 04th

Nov‟11 the stock had shown the uptrend and touched the uper trend line and

after that the stock had shown downtrend. From 9th

Nov‟11 – 23rd

Nov‟11 the stock was operating

below moving average line. After that the stock had again started risisng and crossed moving average

122 | P a g e

line on 28th

Nov‟11 and upto 7th

Dec‟11 the stock was operating just above the moving average line.

On 8th

Dec‟11 onwards the stock had started declining and crossed the moving average line and was

operating below moving average line and up to 20th

Dec‟11. On 20th

Dec‟11 the stock had touched

the lowest support level of 470.14. This was the best time for buying this stock and from 21st Dec‟11

onwards the stock had strated rising and cross the moving average line and up to 30th

Dec‟11 the

stock was working along with the moving average line. From 2nd

Jan‟12 – 15th

Feb‟12 the stock had

shown the uptrend. Within this time the stock had touched the upper trend line twice. On 15th

Feb‟12

the stock had reached the resistance level of 868.53. this is the best time for selling and book the

profit for the investors. From 21st Feb‟12 – 11

th April‟12 the stock was declining and fluctuating very

much and stock was operating below moving average line. From 12th

April‟12 – 19th

April‟12 the

stock was showing uptrend and 13th

April‟11 the highest volume stock was traded in the market.

After that up to 4th

May‟11 again stock had shown the decline trend. From 7th

May‟12 – 25th

May‟12

the stock had shown the downtrend. After that again started rising. So, this is the time to invest in the

stock.

Candle Stick

From the graph we can say that from 8th

Nov‟11 – 23rd

Nov‟11 selling pressure was there to stop loss.

it was due to market condition. From 24th

Nov‟11 – 5th

Dec‟11 there was increase in trend due to

buying pressure. From 8th

Dec‟11 – 20th

Dec‟11 the stock had declined due to selling pressure and the

stock had reached the lower support level of 470.14. This is the time to buy a stock. From 2nd

Jan‟12

– 15th

Feb‟12 the stock had increased due to huge buying pressure and the NIFTY market was also

performing well at that time.

On 15th

Feb‟12 the stock had reached the resistance level of 868.53. this is the best time for selling

and book the profit. Then from 17th

Feb‟12 – 10th

April‟12 the stock was showing downtrend due to

huge selling pressure and the stock was operating below moving average line and the stock was

fluctuating. After 10th

April‟12 the stock had shown the uptrend and 13th

April‟12 it had shown the

highest volume market operation and up to 17th

April‟12 the stock had shown the uptrend due to

buying pressure. From 20th

April‟12 – 23rd

May‟12 the graph had shown the downtrend and

fluctuating due to selling pressure and the stock was operating below moving average line. After that

again there was a uptrend in the stock due to hammer shown in the candle stick after a long

declination. So, this is the right time to invest in this stock.

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Technical Analysis of L&T

Bollinger Chart

The graph shows the market trend of L&T stock price for last seven month (Nov‟11 – May‟12). The

graph shows the upper band, stock fluctuation line, moving average line and lower band for the stock

of L&T. The green line in the top shows the upper band and red line at the bottom side shows the

lower band. When the price of the stock touches the upper band, the stock is said to be overbought

and there is some good news in the market. When the price of the stock touches the lower band, the

stock is said to be oversold and there is some bad news in the market.

From 8th

Nov – 23rd

Nov‟11 the graph had shown the downtrend of the stock. The stock was

operating below moving average line and also crossed lower band line. This happened due to market

condition. From 24th

Nov‟11 – 7th

Dec‟11 the stock had shown the rising trend and it was operating

just above the moving average line. From 8th

Dec‟11 – 20th

Dec‟11 the stock had shown the

declination and it was operating with lower lower band line. On 2oth Dec‟11 the stock had reached

the support level of 980.97 and it is the right time to buy the stock. From 20th

Dec‟11 – 28th

Dec‟11

the stock was showing uptrend but still it was operating below the moving average line.

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From 28th

Dec‟11 – 30th

Dec‟11 again shown the declination. But from 2nd

Jan‟12 - 9th

Feb‟12 the

stock had shown the uptrend. After that up to 12th

Feb it had declined. From 13th

Feb‟12 it had started

increasing again and 15th

Feb‟12 it had reached the resistance level of 1458.76 and it had crossed the

upper band. This is the best time to sell the stock and book the profit. From 16th

Feb‟12 – 6th

Mar‟12

the stock had shown downtrend and it was operating below movng average line. From 7th

Mar‟12 –

14th

March‟12 the stock was showing uptrend and the that the stock was fluctuating not that much. It

was moving with the moving average line. This trend was from 15th

Mar‟12 – 19th

Apr‟12. From 20th

Apr‟12 – 11th

May‟12 the stock had shown the downtrend and it was operating below the moving

average line due to adverse global market condition. After that the stock price again shown

fluctuation with the moving average line and this condition is due to present global market and indian

stock market scenareo.

Candle Stick

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From the graph we can say that from 8th

Nov‟11 – 23rd

Nov‟11 the stock had shown the decline trend

due to huge selling pressure to stop loss. It was due to market condition. From 23rd

Nov‟11 – 7th

Dec‟11 the stock had shown uptrend due to buying pressure. After that from 8th

Dec‟11 – 20th

Dec‟11

the stock had shown downtrend and it was below moving average line. This was due to huge selling

pressure. On 20th

Dec‟11 the stock had reached it lowest support level of 980.97. So, it was the best

time to buy the stock. There was increase in buying pressure but volume was very less. So, up to 30th

Dec‟11 the stock price movement was not that much. But from 2nd

Jan‟12 – 15th

Feb‟12 the stock had

shown the uptrend due to huge buying pressure. On 15th

Feb‟12 the stock had reached the highest

resistance level of 1458.76. This is the best time to sell the stock and book the profit. From 17th

Feb‟12 – 6th

Mar‟12 the stock had shown declination due to high selling pressure and the stock was

also operating below the moving average line. Here it shows the hammer formation that means the

bullish period. After that the stock had started rising and buying pressutre also. From 15th

Mar‟12 –

18th

April there was not that much of participation of buyers and traders so, the stock movement was

along with the moving average line. But after that the stock had started declining due to huge selling

pressure. It was up to 11th

May‟12. After that on 14th

May‟12 the stock had traded of highest volume.

After that the stock was fluctuating in nature and it was fluctuating with the moving average line.

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Technical Analysis of BHEL

Bollinger Chart

The graph shows the market trend of BHEL stock price for last seven month (Nov‟11 – May‟12).

The graph shows the upper band, stock fluctuation line, moving average line and lower band for the

stock of BHEL. The green line in the top shows the upper band and red line at the bottom side shows

the lower band. When the price of the stock touches the upper band, the stock is said to be

overbought and there is some good news in the market. When the price of the stock touches the

lower band, the stock is said to be oversold and there is some bad news in the market.

Initially BHEL stock was trading at 1600 -2200 range. But 30th

Sep‟11 BHEL‟s Management had

split their share at 2:10. Now BHEL stock had traded between 200-350 range. After share split BHEL

stock perform along with the moving average line. From 8th

Nov‟11 – 23rd

Nov‟11 had shown the

declining trend and it was operating below the moving average line. After that the stock had started

rising and up to 29th

Nov‟11 the stock was showing up trend and then again little bit down and again

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uptrend upto 5th

Dec‟11. After that in the month of Dec‟11 the trend was downtrend. After that in the

month of Jan‟12 the trend was uptrend but it was fluctuating along with moving average line. From

25th

Jan‟12- 30th

Jan‟12 the stock had shown downtrend. From 31st Jan‟12 – 6

th Feb‟12 the stock was

showing uptrend. After that again fluctuation little bit for 2-3 days. Then from 10th

Feb‟12 it had

started rising and 17th

Feb‟12 the stock was traded highest by volume and the uptrend was continue

upto 21st Feb‟12. After that the stock had started declining. From 24

th Feb‟12 onwards the stock is

showing fluctuating trend and it is showing fluctuation along with the moving average line. In 18th

May‟12 it had reached its lowest support level of 199.76. So, it is the best time for investment in this

stockto get long term benefit.

Candle Stick

From the graph we can say that 9th

Nov‟11 – 23rd

Nov‟11 the stock had shown down trend due to

high selling pressure. From 24th

Nov‟11 – 30th

Nov‟11 the stock had shown buying pressure. From 7th

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Dec‟11 – 21st Dec‟11 the stock had shown down trend due to high selling pressure. In the month of

Jan‟12 the stock had shown uptrend due to high buying pressure. 24th

Jan‟12 – 30th

Jan‟12 had shown

downtrend due to selling pressure. 31st Jan‟12 – 21

st Feb‟12 the stock further shown the uptrend due

to high buying pressure. From 22nd

Feb‟12 – 6th

March‟12 the stock had shown the downtrend due to

selling pressure again after that little high in stock price. From 14th

March‟12 – 29th

March‟12 the

stock had shown downtrend due to huge selling pressure. From 30th

Mar‟12 – 4th

Apr‟12 the stock

shown again some uptrend due to buying pressure. From then onwards up to 18th

May‟12 the stock

had shown downtrend due to huge selling pressure and it had reached the lower level of seven month.

So, it is the best time for the investors to invest in the company.

PEER COMPANY EVALUATION

Peer Company Status for Power Sector

Few power company status as on 1st june‟12 are as follows:

Competition

Name Last Price

Market Cap.

Sales Net Profit

Total Assets

(Rs. cr.) Turnover

NTPC 145.1 119,641.69 62,053.58 9,223.73 111,572.36

Power Grid Corp 103.65 47,987.10 10,035.33 3,254.95 62,092.11

Reliance Power 89.15 25,007.70 66.12 310.86 17,450.60

NHPC 18.1 22,264.34 5,654.69 2,771.77 39,153.15

Tata Power 93.1 22,093.30 8,495.84 1,169.73 18,229.27

Neyveli Lignite 82.4 13,824.33 4,866.85 1,411.33 15,178.57

Reliance Infra 430.2 11,313.83 17,906.67 2,000.26 21,636.80

Adani Power 45.65 9,951.86 3,948.90 -293.92 23,668.77

Jaiprakash Pow 36.75 9,645.98 1,615.56 402.95 17,551.83

Torrent Power 195.6 9,241.09 7,917.82 1,237.46 7,846.63

SJVN 18.75 7,756.17 1,927.50 1,068.68 8,959.44

JSW Energy 42.1 6,904.63 5,016.42 234.64 11,494.45

CESC 266.15 3,353.49 4,669.00 565 8,585.82

IndiaBPower 12.05 2,683.92 1.15 52.42 4,829.01

KSK Energy Vent 51 1,900.42 67.52 0.54 3,559.82

GVK Power 11.7 1,847.68 27.6 -8.27 2,635.13

Schneider Elect 76.5 1,829.15 1,353.50 39.76 0.08

Source: www.moneycontrol.com

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Peer Company Status for Steel Sector

Few steel company status as on 1st June‟12 are as follows:

Competition

Name Last Price

Market Cap.

Sales Net Profit

Total Assets

(Rs. cr.) Turnover

Tata Steel 397.9 38,644.62 33,933.46 6,696.42 76,745.77

SAIL 91.4 37,753.00 46,341.79 3,542.72 57,234.96

JSW Steel 600.45 13,397.07 32,122.66 1,625.86 29,176.61

Visa Steel 50.95 560.45 1,365.91 -118.85 1,761.41

Source: www.moneycontrol.com

Peer Company Status for Infrastructure

Few infrastructure company status as on 1st June‟12 are as follows:

Competition

Name Last Price

Market Cap.

Sales Net Profit

Total Assets

(Rs. cr.) Turnover

Larsen 1,134.90 69,544.34 53,170.52 4,456.50 29,007.37

BHEL 206.85 50,628.61 47,978.89 7,039.96 20,317.19

Alfa Laval 3,946.95 7,167.85 1,154.17 130.54 489.67

AIA Engineering 363.45 3,428.07 1,272.56 150.91 842.24

Suzlon Energy 17.55 3,119.28 6,871.21 -505.38 13,471.81

BGR Energy 276.55 1,995.63 3,447.05 223.52 2,286.09

BEML 417.4 1,738.24 2,726.49 57.25 2,956.17

Triveni Turbine 42 1,385.50 631.88 91.08 91.06

TD Power System 296.8 986.49 625.21 49.82 263.08

Praj Industries 54.2 986.17 880.86 65.82 558.94

Tecpro Systems 154.6 780.32 2,529.66 124.93 1,425.21

Elecon Eng 53.4 495.88 1,331.67 69.6 924.94

Sanghvi Movers 106.6 461.45 450.47 101.77 1,180.09

TRF 252.35 277.7 802.31 15.58 404.5

Action Const 28.1 261.01 856.13 30.85 338.94

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Shriram EPC 58.2 258.08 1,382.20 25.51 1,700.20

Walchandnagar 67.1 255.45 963.23 12.8 562.51

TIL 233.85 234.56 238.23 52.98 266.44

Gujarat Apollo 126.15 209.09 216.06 16.77 196.62

Kabra Extrusion 32.05 102.25 192 10.01 114.36

Eimco Elecon 168.5 97.2 178.47 20.33 139.9

Windsor 12.6 81.81 229.56 15.44 20.28

UB Engineering 33.05 56.41 532.44 3.15 218.49

Source: www.moneycontrol.com

CONCLUSION & RECOMMENDATION

Power Sector

NTPC

From Company analysis we can conclude that

Company has lots of prospects in near future

Company has diversified portfolio

Company is recognized every where

Company has Navratna Status

High Brand equity among stakeholders

It is a good company and as it is Govt. Company it will give guaranted return in future. So,

investors should invest in this company

From Financial Result

Highest ever turnover Rs. 64,832 Crore ( 9.43% up over previous year )

Highest ever net profit

It is a profitable company. So, investors should invest in this company.

From Technical Analysis

The stock had perform along with the moving average line.

The stock had performed well.

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It is a good Company and profitable one. So, Govt. as well as general public should invest in this

stock to get good returns in future.

From Peer Company Evaluation

NTPC is the dominant and leading company in the power sector.

Highest Market Cap. Of Rs. 119, 641.69 Crore

Highest Sales Turnover of Rs. 62, 053.58 Crore

Highest Net Profit of Rs. 9, 223.73 Crore

Highest Total Asset Rs. 111, 572.36 Crore

It is a good company and profitable one in Power sector. So, investors money will be secured.

Investor should invest in this company to get good return on future term.

TATA POWER

From Company Analysis

Company has lots of prospects in near future

Company has diversified portfolio

High Brand equity among stakeholders

Excellent track record of performance in project implementation and plant operations

It is a good company for investment and to get good return.

From Financial

Highest ever Turnover

It is a profitable company and good option for investment for investors.

From Teechnical Analysis

Before stock split the firm had high share value range. But after the split the firm‟s stock

also performed well

The stock was moving along with the moving average line

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From last week of May‟12 the stock also showing uptrend and this is the time for

investment.

It is a good and value driven company and also good for investment and get good return on

future.

From Peer Company Evaluation

According to Market Cap. The company position is 5th

.

Sales turnover also good

Net profit also good

Total asset value also good.

It is a good company to invest and get decent return.

Steel Sector

TATA STEEL

From Company Analysis

High Brand Value Company

Excellent corporate governance

High Mineral Reserves

Company with massive expansion project

So, it is a value driven company and good for investment.

From Financials

Increased in turnover more than 15% in FY‟12 over FY‟11

Growth in sales

Dividend to shareholders

It is a profitable company and continuous dividend payed company. So, it is a good company for

investment.

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From Technical Analysis

The stock movement along with the moving average line and maximum time its above the

average line.

It is good for the company and as it is operating maximum time aove the average line so the

company was doing well. So, its a good option for investors to invest and get good return

From Peer Company Evaluation

It is is the leading and dominant company in the steel sector

Highest Market Cap. Of Rs. 38,644 Crore in steel sector

Highest net profit compare to competitors

Highest total asset compare to others

It is a good company to invest and get decent return

JSW STEEL

From Company Analysis

India‟s largest private steel maker

Lots of Project in future

Strong International Presence

Highly technology driven

Per Employee Productivity is comparable to International Standards

It is good, highly technology driven company. So, it is good option for investment for investors.

From Financials

Highest steel production in FY‟12

Growth in sales year on year basis

Dividend for shareholders

It shows that Company is doing well and it is good option for investment

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From Technical Analysis

The stock is volatile in nature

But the stock will give return in future as lots of projects are in pipeline. So, it is good opetion

for investors for investment.

From Peer Company Evaluation

As per Market Cap. It is in 3rd

no. among the steel sectors

Good sales turnover over other competitors

As per total assets value it is also in 3rd

position

So, it is a good option for investors to invest in the stock and get good return in the future.

Infrastructure Sector

L&T

From Company Analysis

High diversified portfolio

Strong International Presence

Excellent R&D facility, Front End Engineering

Leading conglomerate in Infrastructure

So, it is a good option for investors and to get good return in future

From Financial

Increase in revenue over year on year basis

Increased in EPS

Increase in Order book in FY‟12

Declaration of Dividend.

This means that company is doing well and it is good for investors. Investors should invest in the

company.

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From Technical Analysis

It shows that the stock moves along with the moving average line

Overall trend of the stock is uptrend but some times it had shown downtrend due to

overall market condition of India and abroad

So, it is a good option for investors to invest in the stock and get a decent return in future time.

From Peer Company Evaluation

It is one of the leading conglomerate and dominant firm in the manufacturing industry

As per Market Cap. It is the leading conglomerate

Highest sales over the other competitors

As per total assets value it has the highest over the competitors

So, it is a excellent stock and investors can invest in this stock.

BHEL

From Company Analysis

It has diversified portfolio

Huge project in pipeline

Highly skilled manpower

Huge prospects in Future

So, it is a good option for investment and to get decent return in future.

From Financials

Highest ever turnover in FY‟12

Increase in turnover year on year basis

Increase in EPS

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Increase in Dividend and record of providing dividend to its shareholders year on year

basis

So, it says that company is highly profitable company and it is a good options for the investors to

get an excellent return.

From Technical Analysis

Stock is fluctuating in nature due to market condition

But it is good stock. As the company has lots of project in pipeline so it will give good return in

future term.

From Peer Company Evaluation

According to Market Cap. It has Rs. 50,628.61 crore. It is in the 2nd

position

According to the Sales turnover the stock is in second position

According to the Net profit it is in the 1st position

According the Total assets turnover value it is in the 2nd

postion.

So, it is one of the conglomerate company in Infrastructure segment. It is good option for the

investment.

ON-JOB TRAINING AND LEARNING FROM SIP

Title - Working in Depository Participant

Introduction

Objective

Task Assigned

Achievements

Conclusion

INTRODUCTION

I have been done my summer internship in Sharekhan Limited to perform various activities

undertaken by an e-broking firm (Depository Participant).

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OBJECTIVE

Sharekhan Ltd. performs as intermediary between stock exchange and clients. Various task

related to e-broking has been assigned to me.

The main objectives are as follows:

To understand various activities in E-Broking firm. (DP)

To get familiar with the working of online trading

To gain practical knowledge in share trading

To get an exposure

TASK ASSIGNED

Market observation

Customer acquisition

Technical Issues

Administrative Tasks

Customer follow-up

Market Observation:

It was the basic task assign during the SIP. While working with an E-broking firm it very

essential to be aware about the current market issues like current news, Current market position,

stock watch, global market condition, past trend of the market etc.

It was also imperative to target particular stocks & track their daily movements. By targeting &

tracking individual stocks & scripts, it helped me understand the various factors that lead to

stocks price movements. Also taking with clients during market hours helped me to understand

psychology of the client.

Customer Acquisition:

To acquire new customers for the company it was the task given to me.

Strategy in acquiring new customers

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Reference by existing customers

Lead by company guide

Tele calling (by lead data)

Cold calling

Technical Tasks:

Various technical tasks has been performed like, software downloading, to give software

demonstration to the clients, solving various problems of the clients regarding software handling

etc.

Administrative Task:

These were the secondary task given bellow, which has been performed during the training

period.

Completion of Account opening form

Collection of requires documents from existing clients

Margin funding form

To transfer shares

Customer follow-up:

Follow-up has been given to newly acquire as well as existing clients for various issues.

Trading for offline clients under the relationship manager‟s guidance.

To give markets updates to newly acquire as well as existing clients in market duration,

etc.

Achievements:

Stock Market observation has been done during internship period.

8 new clients have been acquired

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Companies trading software has been downloaded.

Software demonstration has been given to newly acquire as well as existing clients.

Various administrative activities have been performed.

Follow-up to the customer has been given

Company generated brokerage from the newly acquired customer by me during the

period.

Offline customer‟s orders have been taken in regular market schedule.

CONCLUSION

Learning experience:

In my summer training, I knew about the stock market and its nitty-gritty. And now I am quite

confident about equity knowledge. Although nobody can claim complete expertise but there is a

little bit change at least from our point of view. I have learnt what are the various indices and

their significance in market. I have learnt about various fundamentals and technical aspects,

which affect the stock prices in short run and long run.

Selling Experience:

Apart from this my specific task is to sell the Demat accounts. During this period across many

people who came from different walks of life. I learnt how to deal with them, how to persuade

them and guide them in trading.

Selling an online trading account requires special focus on targeting the customers. Each and

every person does not trade / invest in the stock market. Actually what I had to do was to identify

the prospect and then convince them.

As I met more and more people, I came to know more about how to talk to them, how much time

be given to each person met. Even, by solving the customer queries, my own understanding was

enhanced.

While selling the product in the market, I also came to know more about the competitor‟s

product like, icicdirect.com, India bulls, karvy.com, edelweiss.com and their strategy of

marketing and the consumer‟s preference towards about the competitor‟s product.

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After sells services like customer queries, how to make a transaction and how to get access to the

terminal etc. also attend.

So, it was all a very good learning experience for me.

But investors need to be cautious on the following risk factors

Quantitative and Qualitative Market Risk Factors for Investors

Commodity Price Risk

The proces of oil, in particular, crude oil and value-added products are linked to the international

prices of such products. Once the commodity prices increase it effects whole manufacturing

industry. Thus the revenues are exposed to the risk of fluctuation in prices in the international

markets.

Operating Risk

The company is exposed operating risk, including raw material supply risk, risk of loss of market

due to competitor‟s entry, govt. policies and natural calamities risk in respect of all the installations

and facilities. But however the companies have insured their installation and facilities, which menas

that most replacement cost will be borne by the insurance company.

Exchange Rate Risk

The companies have substantial purchases of services and equipment in foreign currencies which are

traditionally denominated in U.S. Dollars. Thus the companies are exposed to risks relating to

exchange rate fluctuations. However, the risk involved in the required payments in foreign curencies

is offset to some degree by the revenues from sales of manufacturing industry products, which are

linked to the U.S. Dollar currency exchange rates and increase if the U.S dollar strengthens against

the Indian Rupee.

Interest Rate Risk

The interest rate risk results from changes in interest rates on foreign currency loans, which may

affect the financial expenses. Thus companies are exposed to interest rate risk on its earnings.

141 | P a g e

References

1. Growth Rate of India: http://www.tradingeconomics.com/india/gdp-growth-annual

2. FDI is Prohibited in: “Department of Industrial Policy and Promotion Ministry Of

Commerce and Government of India Consolidated FDI Policy (Effective from April 10,

2012)” by Anjali Prasad, Chapter-6, „Sector Specific Conditions on FDI‟, Page No. 41

3. Steps Taken by Government: “Government of India Ministry of Commerce & Industry

Department of Industrial Policy & Promotion (Manufacturing Policy Section), Press Note

No.2 (2011 Series)” by Anjali Prasad, „National Manufacturing Policy‟, Page No. 4

4. Introduction to Sharekhan: http://www.sharekhan.com/AboutUs/AboutUs.htm

5. Management: http://www.sharekhan.com/AboutUs/AboutUs.htm

6. Product and Services: http://www.sharekhan.com/AboutUs/AboutUs.htm

7. CompanyAnalysis:

http://www.google.co.in/imgres?q=company+analysis&hl=en&sa=X&biw=1366&bih=572&

tbm=isch&prmd=imvnsb&tbnid=qv6FfyI21aLZFM:&imgrefurl=http://www.final-

yearproject.com/2011/07/company-analysis-in-sugar-sector-

for.html&docid=nHNl6hy5KC7MDM&imgurl=http://2.bp.blogspot.com/-

jhWtuUlBdvE/Tg71QPxRHUI/AAAAAAAACo4/eLHVSsDa7Sk/s1600/FYP-

Company%25252BAnalysis%25252BIn%25252BSugar%25252BSector.jpg&w=586&h=55

6&ei=1P_LT_DfGY7NrQf_zJGaDg&zoom=1&iact=rc&dur=445&sig=10538833516001584

0509&page=3&tbnh=118&tbnw=123&start=52&ndsp=28&ved=1t:429,r:8,s:52,i:202&tx=5

1&ty=68

8. NTPC:

http://ntpc.co.in/index.php?option=com_content&view=article&id=42&Itemid=75&lang=en

9. NTPC Shareholding Pattern: http://money.rediff.com/companies/ntpc-ltd/15130025/share-

holding

10. FINANCIALS OF TATA POWER: http://www.tatapower.com/media-corner/pressrelease-

2012/press-release-22may12.pdf

11. FINANCIALS OF TATA STEEL: http://www.tatasteel.com/investors/pdf/Q4-FY12-press-

release.pdf

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12. FINANCIALS OF JSW STEEL:

http://jsw.in/media_zone/pdf/press_release_Q4_14_5_2012_final_after_dvnd.pdf

13. FINANCIALS OF L&T:

http://www.larsentoubro.com/lntcorporate/LnT_PRS/PDF/LTsAnnualResults2011-12.pdf

14. Financials of BHEL: BHEL_Performance Highlights 2011-12.pdf, Page No.4