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Ipm report

  1. 1. PROJECT REPORT OF IPM On Investment Presented to:- Prof. hitendra lachhwani PGDM Programme (2010-12) Prepared by:- Komal pandya(10074) Rina prajapati(10081) Karuna soni(10103) Shivangi patel(10078) Manali thacker(10111) Meghna thacker(10108) Jalpa maheshwari(10061) Shruti thacker(10115)Tolani Institute of Management Studies Page 1
  2. 2. INDUSTRY OVERVIEW ABOUT NBFCA non-banking financial company (NBFC) is a company registered under theCompanies Act, 1956 which is primarily engaged in the business activities likeloans and advances, acquisition of shares/stock/bonds/debentures/securities issuedby government or local authority or other securities of like marketable nature,leasing, hire-purchase, insurance business. It bars any institution whose principalbusiness is that of agriculture activity, industrial activity,sale/purchase/construction of immovable property. Sundaram Finance is a strongplayer in the commercial vehicle and car finance segments. Housing finance sectorbenefited from realty boom since 2002-03. RBI RULES FOR NBFCThe Reserve Bank of India has issued know your customer guidelines for non-banking financial companies, which are similar to those for commercial banks.The board of directors of NBFCs have been advised to formulate policies andprocedures to operationalise and ensure the observance of these guidelines, whichcome into immediate effect, in respect of all new customers, the bank said.NBFCs have also been asked to complete the identification process in respect ofthe existing customers by June 30, 2004.These guidelines, the RBI said, would be applicable to all NBFCs, includingMiscellaneous Non-Banking Companies (chit fund companies) and ResiduaryNon-Banking Companies.The RBI said that the guidelines have been reviewed in the context of theprovisions of the Prevention of Money Laundering Act, 2002 and the need to put inplace systems and procedures to help control financial frauds, identify moneylaundering and suspicious activities.Tolani Institute of Management Studies Page 2
  3. 3. These guidelines aim at safeguarding NBFCs from being unwittingly used fortransfer or deposit of funds derived from criminal activity or for financing ofterrorism. The guidelines are also applicable to deposits accepted from NRIs.Guidelines for new deposits Customer identification: Know Your Customer (KYC) should be the key guiding principle for identification of an individual / corporate customer (depositor or borrower). Accordingly, the KYC framework should have two-fold objective, (i) to ensure customer identification and verifying his identity and residential address; and (ii) to monitor transactions of a suspicious nature. NBFCs should ensure that the identity of the customer, including beneficial owner is done based on disclosures by customers themselves. Typically easy means of establishing identity would be documents such as Permanent Account Number (PAN), ration card, driving licence, Election Commissions identity card, passport, et cetera in case of individuals and registration certificate, partnership deed/agreement, et cetera and other reliable documents in respect of companies, firms and other bodies. Verification through such documents should be in addition to the introduction by a person known to the NBFC.Procedures for existing customers In respect of existing customers, NBFCs should ensure that gaps and missing information in compliance of KYC guidelines on customer identification procedure is filled up and completed before June 30, 2004.Ceiling and monitoring of cash transactions NBFCs would normally not have large cash withdrawals and deposits. However, wherever transactions of Rs 10 lakh (Rs 1 million) and above are undertaken, they should keep record of these transactions in a separate register maintained at branch, as well as at Registered Office. Such information should be made available to regulatory and investigating authorities, when demanded.Tolani Institute of Management Studies Page 3
  4. 4. Guidelines and monitoring procedures The board of directors of NBFCs should formulate policies and procedures to operationalise the guidelines and put in place an effective monitoring system to ensure compliance by their branches. Early computerisation of branch/office reporting will facilitate prompt generation of such reports and monitoring.Internal control systems Duties and responsibilities should be explicitly allocated among the staff for ensuring that policies and procedures are managed effectively and that there is full commitment and compliance to an effective KYC programme in respect of both existing and prospective customers/clients.Internal audit/inspection Internal auditors must specifically scrutinise and comment on the effectiveness of the measures taken by branches / offices of NBFC in adoption of KYC norms and steps towards prevention of money laundering. Specific cases of violation should be immediately brought to the notice of head / controlling / registered office.Record keeping NBFCs should prepare and maintain proper documentation on their customer relationships and cash transactions of Rs 10 lakh and above. The records of all such transactions should be retained for at least ten years after the transaction has taken place and should be available for perusal and scrutiny by audit functionaries as well as regulators and law enforcement authorities; as and when required, at the branch as well as at registered office.Training of staff and managementTolani Institute of Management Studies Page 4
  5. 5. It is important that all the operating and management staff is made fully aware of the implications and understand the need for strict adherence to KYC norms. NBFCs may take suitable steps to impart training to their operational staff on anti-money laundering measures.These guidelines have been issued under Sections 45K and 45L of the RBI Act,1934 and any contravention of the same will attract penalties under the relevantprovisions of the Act, the RBI said. MACROECONOMIC ANALYSIS OF NBFCYear 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Int.rate 7.9 6.5 5.5 4.5 4.75 5.3 6.00 6.00 4.00 3.2Here interest rates of banks are going down that means people will investin stock market. And also, if interest rate is going down, it is profitable toget money from the suppliers.Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010inflation 3.77 4.31 3.81 3.77 4.25 5.79 6.39 8.32 10.83 12.11Here, if inflation increases, purchasing power decreases so people haveno extra saving to invest. So people are reluctant to invest in stockmarket.Tolani Institute of Management Studies Page 5
  6. 6. FIVE FORCE MODEL OF NBFC1.Barriers to entryIn this industrybarriers to entry is high. Because to entre in this industry, acompany have to aquire licence from RBI, which is very difficult to get. To get thelicence, you have to fulfil all the capital requirement as given by RBI. Anotherreason which can become barrier is product differentiation. In this industry you cannot give extra ordinary or innovative product to your customer.2.Threat of competitorIn non banking financial sector, threat of competitors is high. There are very largenumber of banks and they are established from years. And the switching cost ofcustomer is very low. Customer can switch over to bank when he get some morebenefit from bank.3.Bargaining power of CustomerBargaining power of customer is high because there are various alternatives forcustomer to take loan. And there is not much differentiation in the products socustomer can switch over to other when he get low rate. Customer has fullinformation regarding the alternatives in the market.4.Bargaining power of supplierBargaining power of suppliers is high because there are various altenatives toinvest in. RBI also has mantion some rules and regulations which every NBFChave to fulfil which cause benefit to supplier not the financial company.5.Threat from substituteThere are various alternatives available with customer other than NBFC. Customercan invest in Post Office saving, stock market or take loan from bankinginstitutions.Tolani Institute of Management Studies Page 6
  7. 7. SWOT ANALYSIS OF NBFCStrenghtsThe main strengths of NBFC are: Strong customer relationship Good understanding of regional dynamics Ability to reach to those customers who are ignored by banksWeaknessesThe main weaknesses of NBFC are: Growth of banking industry Decreasing profit due to high competitionOpportunityThe main opportunities for NBFC are: Innovation throgh vergin segments Going forward by doubling up with banksThreatThe main threats for NBFCs are: Competitive cost of funds and the ability to capitalize at every regular intervals are key requirement to maintain competitive position Slowly and steadily NBFC are loosing grounds to bank and it only way out is go for partnership.Tolani Institute of Management Studies Page 7
  8. 8. ETOP ABOUT NBFCEnvironmental Nature of impact Impact of each sectorsectorEconomical NBFC is a rising business and education & standard of living are also risingMarket Market is growing and consumers are increasing.Regulatory RBI has made strict rule for NBFC than Bank Transfer of money,Social easily availability of loan.Supplier Investors do more access in banking to protect their money. Credit card, debit card,Technology online payment. But not that much facility a bank has.Tolani Institute of Management Studies Page 8
  9. 9. FUTIRE OF NBFC The RBI announced in its latest budget that will give additional branch licenses to private sector banks and NBFCs that meet the central banks eligibility criteria. These new licenses should be awarded shortly. A number of NBFCs, microfinance companies and industrial houses are planning to opt for the same. According to the recommendations of the Usha Thorat committee, the core Tier-1 capital ratio for NBFCs needs to reach 12% over the next three years. Thus if these recommendations are accepted, companies will have to shore up their capital sufficiently to account for growth as well as regulatory requirements. Provisioning and other norms may also be brought similar to that of banks in a phased manner. As per the committee, risk weights for NBFCs not sponsored by banks or that do not have any bank as part of the group may be raised to 150% for capital market exposures and 125% for commercial real estate exposures. Thus, there are a number of regulatory concerns that still need to be ironed out with regards to this space. However the prospects of certain players receiving a banking license, and limits on risky exposures, and maintaining capital buffers are welcome reforms. COMPANY SELECTION AND CUTOFFTo make optimum portfolio we have consider 4 parameters. They are net sales, netprofit, EPS and total assets. By comparing the companies we have selected 10 bestcompanies. They are: Relience Cap OscarTolani Institute of Management Studies Page 9
  10. 10. Bajaj Finserve Bajaj Holdings Shree Global TR Tata Investment Corporation Religare India Bulls JM Finance L & T FinanceFrom these 10 companies, we have made calculation of cutoff and we get 4companies in cutoff calculation. They are: Shree Global TR Bajaj Finserve Tata Investment Bajaj HoldingsTo get one company we had done fundamental analysis. By comparing ratios andgiving weightage we have selected “L & T Finance” in our portfolio. COMPANY OVERVIEWShree Global TR1980 - Founded in 1980 as Benson Steels Ltd by Kenneth Benson andMerilyn Benson and is finance business..1981 - Paul Benson Become a part of Benson Steel as President.1994 - Paul Benson retired in 1994.Tolani Institute of Management Studies Page 10
  11. 11. 1995 - Ken Benson appointed as president and CEO. 2005 - Shree Global Tradefin Ltd. acquired Sanford Steel Pvt Ltd. - Shree Global Tradefin Ltd has informed that the Board of Directorsof the Company on October 21, 2005, has decided that for consideration of Scheme of Amalgamation of M/s Harold International Ltd, M/s. TrumpInvestments Ltd, M/s. Tradition Exim Ltd, M/s. Sanford Steel Pvt Ltdand M/s. Salvador Steel Pvt Ltd with the Company, and reduction ofshare capital of the Company. For this the Board will meet again onOctober 26, 2005. - There was a plant expansion of 13000 square feet at Bolton headquarters, which allowed Benson Steel to service customers betterand faster. 2006 - Mumbai High Court had approved the scheme of amalgamation of four companies with Shree Global Tradefin Ltd. 2007 - There was a re-appointment of Shri. Prashant Puri, as Director of the Company. Financial Ratios of Shree Global TR Mar 11 Mar 10 Mar 09Investment Valuation RatiosDividend Per Share -- -- --Net Operating Profit Per Share (Rs) 33.98 17.13 14.94Profitability RatiosNet Profit Margin(%) -0.48 0.34 0.02Return On Capital Employed(%) -- 0.16 -- Tolani Institute of Management Studies Page 11
  12. 12. Return On Net Worth(%) -- 0.56 --Adjusted Return on Net Worth(%) -1.56 0.56 0.03Return on Long Term Funds(%) -0.44 0.16 0.04Liquidity And Solvency RatiosCurrent Ratio 1.79 2.22 0.89Long Term Debt Equity Ratio 2.50 2.47 --Management Efficiency RatiosAsset Turnover Ratio 5,230.55 564.92 474.62Number of Days In Working Capital 159.96 429.12 117.07Cash Flow Indicator RatiosDividend Payout Ratio Net Profit -- -- --Dividend Payout Ratio Cash Profit -- -- --Earnings Per Share -0.16 0.06 --Book Value 10.48 10.65 10.59 Bajaj Holdings Bajaj Holdings & Investment Limited [(BHIL) – erstwhile Bajaj Auto Limited ] was de-merged as per Order dated 18 December 2007 of the Hon‟ble Bombay High Court, whereby its manufacturing undertaking has been transferred to the new Bajaj Auto Limited (BAL) and its strategic business undertaking consisting of wind farm business and financial services business has been vested with Bajaj Finserv Limited (BFS). All the businesses and all properties, assets, investments and liabilities of erstwhile Bajaj auto Ltd, other than the manufacturing undertaking and the strategic business undertaking, now remain with BHIL. (For details of the scheme refer Demerger News) . Post-demerger, BHIL holds more than 30% shares each in BAL and BFS. Going forward, BHIL will focus on new business opportunities. BAL and BFS will be able to tap (on an arm‟s length basis) into BHIL‟s cash pool to support future growth opportunities. BHIL by having 30% stake in both BAL and BFS will Tolani Institute of Management Studies Page 12
  13. 13. benefit from the future growth of these companies.BHIL has been registered as a Non-Banking Financial Company (NBFC) under theRegistration No. N-13.01952 dated 29 October 2009 with Reserve Bank of India(RBI). The Company is classified as a „Systemically Important Non-deposit takingNBFC‟ as per RBI Regulations. .Financial ratios Particular 2011 2010 2009Liquidity RatiosDebt/Equity Ratio 0.00 0.00 0.00Current Ratio 0.75 0.91 0.96Turnover RatiosInventory Turnover Ratio 0.00 0.00 0.00Fixed Assets Turnover Ratio 10.49 7.96 2.17Debtors Turnover Ratio 0.00 0.00 0.00Interest Coverage Ratios 0.00 0.00 663.00Profitability RatiosOperating Profit Margin 99.52 99.39 89.87PAT/Total Income 92.91 94.82 82.91NPM (Net Profit Margin) 93.07 94.98 88.47Return on Capital Employed 25.39 22.97 6.28Return on Networth 23.75 21.96 6.19News regarding Bajaj Holding Bajaj Holdings has reported a net profit of Rs 58.82 crores for the quarter ended June 30,2011 down by 54.91%, 130.44 crores.Tolani Institute of Management Studies Page 13
  14. 14. Tata InvestmentTata Investment Corporation Limited was promoted by Tata Sons Ltd., in 1937,under the name The Investment Corporation of India Limited. The Companyremained a closely held company till 1959, when it became one of the few publiclyheld investment companies listed on the Stock Exchange, Mumbai. During the1960s and 1970s the Company‟s activities underwent a gradual transformationfrom assisting in the establishment of new ventures, to acting as an investmentcompany with a diversified portfolio of investments.The original inspiration for launching Tata Investment Corporation Limited (TICL)was to help set up and nurture small and medium-sized enterprenuers and theircompanies.The Company‟s activities comprises primarily of investing in long terminvestments in equity shares, listed and unlisted, and equity related securities ofcompanies in a wide range of industries. The major sources of income of theCompany consist of dividend income and profit on sale of investments. Over theyears, through a gradual and judicious portfolio management Tata Investment hasbuilt up a portfolio of investments which had a book value of over Rs.1305.52crores with an approximate market value of Rs.3638.07 crores as at 31st March,2010 spread over 197 companies in various industries.Financial Ratios Particular 2011 2010 2009Liquidity RatiosDebt/Equity Ratio 0.00 0.00 0.47Current Ratio 38.54 27.88 3.58Turnover RatiosInventory Turnover Ratio 0.00 0.00 0.00Tolani Institute of Management Studies Page 14
  15. 15. Fixed Assets Turnover Ratio 0.00 0.00 0.00Debtors Turnover Ratio 37.31 128.29 59.26Interest Coverage Ratios 258.21 0.00 0.00Profitability RatiosOperating Profit Margin 95.11 - -NPM (Net Profit Margin) 80.61 - -Return on Capital Employed 14.24 - -Return on Networth 12.11 - -Future news about Tata InvestmentTata Investment Corporation has recently increased its stake in Tata Elxsi to 2.04%holding 6.34 lakh shares. The company will continue investing is variouscompanies in future.Bajaj FinserveBajaj Finance Ltd. (BAFL) was incorporated as a Private Limited Company on25th March, 1987. It became a deemed Public Limited Company by virtue ofSection 43(A) of the Companies Act, 1956 w.e.f., 20th October, 1987.Bajaj Finance Ltd was promoted by erstwhile Bajaj Auto Limited and Bajaj AutoHoldings Limited. Bajaj Auto Limited is one of the leading manufacturers of twowheelers & three wheelers in the country and Bajaj Auto Holdings Limited is aninvestment company that is a wholly owned subsidiary company of Bajaj Holdings& Investment Limited. As per the Scheme of Demerger of erstwhile Bajaj AutoLimited, the shareholding of Bajaj Auto Limited in BAFL has now been vestedwith Bajaj Finserv Limited.Tolani Institute of Management Studies Page 15
  16. 16. Bajaj Finance Ltd is engaged primarily in the business of financing of twowheelers, consumer durables, personal loans, small business loans, mortgages,construction equipment, and loan against securities. Bajaj Finance Ltd made aPublic Issue of Equity Shares in 1994 and its Equity Shares are listed on BombayStock Exchange Limited and National Stock Exchange of India Limited.Bajaj Finance Ltd made a Preferential Issue of Equity Shares to the Promoters anda few foreign corporate bodies and also warrants to the Promoters in 2006. BajajFinance Ltd made a Rights Issue of Equity Shares and Non-ConvertibleDebentures with detachable warrants to the existing shareholders in 2006-07.The present Paid-up Capital of the Company is Rs. 365,960,760. Bajaj FinanceLtd. has its headquarters at Pune and has more than 63 branches spread across thecountry.Financial Ratios Mar Mar 10 Mar 09 11Profitability RatiosOperating Profit Margin(%) -- -- 81.61Profit Before Interest And Tax Margin(%) -- -- 54.23Gross Profit Margin(%) -- -- 55.03Cash Profit Margin(%) -- -- 62.54Adjusted Cash Margin(%) 46.69 39.55 62.54Net Profit Margin(%) 150.39 26.18 36.38Adjusted Net Profit Margin(%) -- -- 36.38Return On Capital Employed(%) -- -- 4.17Return On Net Worth(%) -- -- 3.43Liquidity And Solvency RatiosTolani Institute of Management Studies Page 16
  17. 17. Current Ratio 0.15 0.79 1.17Quick Ratio 0.15 0.72 0.91Debt Equity Ratio -- 0.26 0.26Long Term Debt Equity Ratio -- 0.26 0.26Debt Coverage RatiosInterest Cover -- -- 6,331.00Total Debt to Owners Fund -- 0.26 0.26Management Efficiency RatiosInventory Turnover Ratio -- -- --Debtors Turnover Ratio 112.50 68.33 38.76Investments Turnover Ratio -- -- --Fixed Assets Turnover Ratio -- -- --Cash Flow Indicator RatiosDividend Payout Ratio Net Profit 8.62 49.64 40.93Dividend Payout Ratio Cash Profit 8.19 30.15 23.80L & T FinanceL&T Finance Limited (LTF) is a subsidiary of Larsen and Toubro. It wasincorporated as a Non Banking Finance Company in November 1994. ThroughLTF, L&T aims at making a strong foray in the ever-expanding financial servicessector.As a business philosophy, we fund income generating assets/activities whilemaintaining a clear focus on returns.LTF offers a spectrum of financial products and services for trade, industry andagriculture. The companys focus segments are corporate products, constructionequipment, CVs and tractors. Despite the turbulence in the financial servicesmarkets over the past few years, L&T Finance has adapted well to the changingmarket dynamics to remain consistently profitable.Tolani Institute of Management Studies Page 17
  18. 18. Like the rest of the companies in L&T group, LTF is also professionally managed.LTF shares the professional values and ethos of its parent company, and hasacquired and maintained a reputation for reliability, transparency of operations andabsolute integrity. A steady growth rate validates the trust that industry has reposedin the company.Financial ratioPerticulars 2011Investment ValuationRatiosFace Value 10.00Dividend Per Share --Operating Profit Per Share 0.04(Rs)Net Operating Profit Per 0.04Share (Rs)Free Reserves Per Share 2.57(Rs)Bonus in Equity Capital --Profitability RatiosOperating Profit Margin(%) 88.83Profit Before Interest And 88.83Tax Margin(%)Gross Profit Margin(%) 88.83Cash Profit Margin(%) 81.40Adjusted Cash Margin(%) 81.40Net Profit Margin(%) 2.37Adjusted Net Profit 2.37Margin(%)Return On Capital 0.23Employed(%)Return On Net Worth(%) --Tolani Institute of Management Studies Page 18
  19. 19. Adjusted Return on Net 0.2Worth(%)Future PlansEstablish a global standards forum for bench marking global projects.Create a repository of project management cases for the benefit of future learning.Create a core group focused on project management research.Create an innovation hub in project managementEstablish L&T BOK in project management.ReligareStarting as a pure-play retail broking operation, Religare has evolved into anintegrated financial services group in less than a decade. Religare has a presenceacross the Indian financial services spectrum – it offers an integrated suite ofproducts and services comprising broking, distribution, lending, asset management,wealth management and insurance. Anchored in India, they are now building anemerging markets financial services business.The Religare name is ubiquitous in the financial services space in India. Religare‟snetwork of 2,209 business locations in 579 towns and cities (as of 31st March,2011) gives its presence across the length and breadth of the country. Religaretouches the lives of over a million people, be it providing small investors access toprofitable opportunities in the capital markets, linking agriculturists and traders inthe mandis of India to global commodity markets, assisting the young and old aliketo accumulate savings to achieve their life goals, helping entrepreneurial dreamscome to life by funding thousands of micro, small and medium enterprises orTolani Institute of Management Studies Page 19
  20. 20. providing savings and protection options to deal with the uncertainties of life.Financial Ratios Particular 2011 2010 2009Liquidity RatiosDebt/Equity Ratio 0.02 0.04 -quick Ratio 0.49 97.38 2.01Turnover RatiosInventory Turnover Ratio - 155.54 882.68Fixed Assets Turnover Ratio 0.00 0.00 0.00Debtors Turnover Ratio 22.02 25.49 248.66Interest Coverage Ratios 4.43 0.55 6.78Profitability RatiosOperating Profit Margin 59.68 -28.09 85.83NPM (Net Profit Margin) 41.1 -58.15 73.49Return on Capital Employed 3.47 0.43 4.91Return on Networth 12.11 - -JM FinanceJM Financial Ltd is one of the leading players in the financial services sector withbusiness interests in investment banking, equity broking, wealth management,lending, asset management and alternative asset management. These diversifiedofferings have helped JM Financial establish itself as a one stop financial shop anddevelop strong relations with clients. Accordingly, we maintain the fundamentalgrade of „4/5‟, indicating that JM Financial‟sFundamentals are ‘superior’ relative to other listed securities in India. JMFinancials is focusing on the high yield cash segment which should help it reportstable yields going forward. Further, its emphasis on expanding its businessthrough a cost-effective franchise-based model should help it to report strongoperational performance.Tolani Institute of Management Studies Page 20
  21. 21. Expect two-year revenue CAGR of 11%CRISIL Equities expects the company‟s revenue to grow at a CAGR of 35.9% toRs 11 bn during FY10 to FY12, buoyed by the expected strength in the capitalmarkets. PAT is expected to increase at a CAGR of 30.5% to Rs 1.9 bn over FY10to FY12. EPS is expected to be Rs 1.8 in FY11 and Rs 2.6 in FY12.JM Financial Limited is an investment holding company and is engaged in variousfinancial services businesses through its subsidiaries and associate companies forming afinancial services group, JM Financial. The Company operates in four segments:Investment banking and securities business, securities funding and fund-based activities,alternative asset management and asset management. Investment banking and securitiesbusiness includes advisory and execution services. Securities funding and fund basedactivities include providing finance against securities to a diverse range of corporatesand non-corporate clients. Alternative asset management includes managing funds ofinstitutional and large non-institutional investors. Assets management includesmanaging mutual fund assets through several schemes offering a range of investmentoptions to a large number of investors. In April 2010, it acquired the remaining 50%interest in Infinite India Investment Management Pvt. Ltd.JM Financial Asset Management- This company offers mutual fund business that hasdistributor network of 10,000 spread across in 52 locations in India. It offers 30 productsto more than 4 lakh investors that comprise institutional and individual.Financial Ratio Particular 2011 2010 2009Liquidity RatiosDebt/Equity Ratio 0.00 0.00 0.00Current Ratio 1.65 1.51 1.9Turnover RatiosInventory Turnover Ratio - - -Fixed Assets Turnover Ratio - - -Debtors Turnover Ratio - - -Tolani Institute of Management Studies Page 21
  22. 22. Interest Coverage Ratios 807.15 1221.38 392.04Profitability RatiosOperating Profit Margin 46.92 50.65 62.12NPM (Net Profit Margin) 22.82 49.65 32.45Return on Capital Employed 1.24 2.87 0.91Return on Networth 0.62 2.86 0.48OscarOscar investment Ltd.was incorporated on january 25, 1978 as a public limitedcompany in mumbai. Subsequantly, registered office of the company was shiftedfrom mumbai ti delhi.The company is promoted by Mr. Malvinder Mohan Singh and Mr. ShivinderMohan Singh, promoters of Renbaxy Laboratories Limited, India‟s largestpharmaceuticle xompany.The company is a non banking finance company registered with RBI as Loan andInvestment company. The company is a part of Ranbaxy Promoter Group andholds a significant stake in Ranbaxy and other companies promoted by promotersof Ranbaxy.Financial Ratios Particular 2011 2010 2009Liquidity RatiosDebt/Equity Ratio 0.04 0.34 0.05Current Ratio 0.89 4.49 4.31Turnover RatiosInventory Turnover Ratio 0.00 0.00 0.00Fixed Assets Turnover Ratio 0.00 0.00 0.00Tolani Institute of Management Studies Page 22
  23. 23. Debtors Turnover Ratio 2660.06 1037.81 15152.20Interest Coverage Ratios 987.17 - 59.58Profitability RatiosOperating Profit Margin 96.97 - 99.06NPM (Net Profit Margin) 63.78 79.45 86.95Return on Capital Employed 4.62 - 81.25Return on Networth 3.18 - 73.72Relience CapReliance Capital, a constituent of CNX Nifty Junior and MSCI India, is a part ofthe Reliance Group. It is one of Indias leading and amongst most valuablefinancial services companies in the private sector.Reliance Capital has interests in asset management and mutual funds; life andgeneral insurance; commercial finance; equities and commodities broking;investment banking; wealth management services; distribution of financialproducts; exchanges; private equity; asset reconstruction; proprietary investmentsand other activities in financial services.Reliance Mutual Fund is amongst top two Mutual Funds in India with over sevenmillion investor folios. Reliance Life Insurance and Reliance General Insurance areamongst the leading private sector insurers in India. Reliance Securities is one ofIndia‟s leading retail broking houses. Reliance Money is one of India‟s leadingdistributors of financial products and services.Reliance Capital has a net worth of Rs. 7,844 crore (US$ 2 billion) and total assetsof Rs. 33,356 crore (US$ 7 billion) as on September 30, 2011.Financial RatiosTolani Institute of Management Studies Page 23
  24. 24. Mar 11 Mar 10 Mar 08Profitability RatiosOperating Profit Margin(%) 76.20 72.59 79.74Profit Before Interest And Tax Margin(%) 73.30 71.63 77.95Gross Profit Margin(%) 75.42 71.82 79.02Cash Profit Margin(%) 11.91 14.52 34.83Adjusted Cash Margin(%) 11.91 14.52 34.83Net Profit Margin(%) 12.10 14.30 32.48Adjusted Net Profit Margin(%) 12.10 14.30 32.48Return On Capital Employed(%) 5.64 9.02 11.48Return On Net Worth(%) 3.29 4.92 14.45Liquidity And Solvency RatiosCurrent Ratio 6.50 2.48 1.57Quick Ratio 13.81 7.43 26.31Debt Equity Ratio 2.63 1.72 2.02Long Term Debt Equity Ratio 2.50 1.49 1.26Debt Coverage RatiosInterest Cover 1.16 1.35 1.91Management Efficiency RatiosInventory Turnover Ratio -- -- --Debtors Turnover Ratio 26.69 23.35 22.05Asset Turnover Ratio 13.75 12.54 8.79Average Raw Material Holding -- -- --Average Finished Goods Held -- -- --Number of Days In Working Capital 2,755.29 1,216.93 1,412.84Cash Flow Indicator RatiosDividend Payout Ratio Net Profit 70.32 55.03 19.29Dividend Payout Ratio Cash Profit 66.18 52.24 18.88India BullsTolani Institute of Management Studies Page 24
  25. 25. Indiabulls Financial Services Ltd, one of Indias leading non-banking financialcompanies (NBFCs) is leading provider of lending and other financial productsincluding home loans, loans against property, commercial vehicle loans, andcommercial credit to prime corporates.Indiabulls Housing Finance Ltd, a SARFAESI notified Housing Finance Companyis a wholly owned subsidiary of Indiabulls Financial Services Ltd; providescompetitively priced home loans to both self employed & salaried segment clients.With dedication to serve the customers at maximum possible locations, IndiabullsFinancial Services has a wide network of 170 branches spread over 87 cities acrossIndia. Indiabulls Housing Finance has one of the fastest Home Loan deliverysystems in India. Easy & convenient online access of Indiabulls‟ Home Loanaccount saves time, efforts & money wasted in visiting offices of home loanproviders for every single query or requirement. All the security measures foronline account access are taken care of at Indiabulls Housing Finance.Indiabulls Home Loans is emerging as the most preferred brand in housing finance.Indiabulls Financial Services has over 3,00,000 satisfied customers & cumulativedisbursements of loan amount over Rs.50,000 Cr. Indiabulls believes in forging adeep personal bond with each of its valued customers. At Indiabulls HousingFinance, Customer care is of utmost importance. At Indiabulls all the customersfeel privileged as they get guidance in all aspects of home buying such as selectingthe suitable property, checking approvals of the project, filing documents,registration of the property, choosing EMI & tenure of their loan to accommodateTolani Institute of Management Studies Page 25
  26. 26. their financial resources etc. Indiabulls team always tries to help customers evengoing beyond the call of duty.Indiabulls Financial Services enjoys AA+ rating and has one of the lowest leverageand highest net worth among the peer group. Indiabulls has very stable long termfinancing from leading Indian and international banks and financial institutions.Indiabulls is serving its customers over a decade with passion & commitment.Fancial Ratio Mar 11 Mar 10 Mar 09Face Value 2.00 2.00 2.00Dividend Per Share 10.00 5.00 2.00Operating Profit Per Share (Rs) 49.03 29.94 47.66Net Operating Profit Per Share (Rs) 65.22 45.85 70.22Free Reserves Per Share (Rs) 118.78 121.10 110.91Bonus in Equity Capital 24.73 24.82 30.33Profitability RatiosOperating Profit Margin(%) 75.16 65.30 67.87Profit Before Interest And Tax Margin(%) 74.66 64.76 67.46Gross Profit Margin(%) 74.70 64.78 67.49Cash Profit Margin(%) 28.10 18.56 11.45Adjusted Cash Margin(%) 28.10 18.56 11.45Net Profit Margin(%) 29.99 18.58 10.67Adjusted Net Profit Margin(%) 29.99 18.58 10.67Return On Capital Employed(%) 7.31 8.37 12.55Return On Net Worth(%) 14.66 6.32 5.72Adjusted Return on Net Worth(%) 13.51 6.13 5.95Return on Assets Excluding Revaluations 133.50 130.83 120.26Return on Assets Including Revaluations 133.50 130.83 120.26Return on Long Term Funds(%) 8.76 13.00 18.17Liquidity And Solvency RatiosTolani Institute of Management Studies Page 26
  27. 27. Current Ratio 3.13 1.97 2.07Quick Ratio 18.38 10.11 20.20Debt Equity Ratio 4.00 1.71 2.14Long Term Debt Equity Ratio 3.17 0.75 1.17Debt Coverage RatiosInterest Cover 1.98 1.76 1.30Total Debt to Owners Fund 4.00 1.71 2.14Financial Charges Coverage Ratio 1.97 1.74 1.27Financial Charges Coverage Ratio Post Tax 1.80 1.51 1.21Management Efficiency RatiosInventory Turnover Ratio -- -- --Debtors Turnover Ratio 274.36 196.21 446.79Asset Turnover Ratio 39.25 29.92 40.23Number of Days In Working Capital 3,059.35 2,523.02 1,650.10Cash Flow Indicator RatiosDividend Payout Ratio Net Profit 59.42 71.00 35.54Tolani Institute of Management Studies Page 27