Jindal Stainless Ltd2123

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SUMMER INTERNSHIP REPORT ON

Portfolio Management AT

JINDAL STAINLESS STEEL Ltd. HISAR

A Report Submitted in Partial fulfillment of the requirements For the Award of the degree of POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT From J K Business School , Gurgaon Academic Session 2008-2010

Project Guide:-

Submitted by:-

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Mr.M.P.Gupta Head of Department (Accounts & Finance ) Jindal Stainless Limited, Hisar

NARESH KUMAR JKBS 083077 MBA IInd Sem.

DECLARATION

I Naresh Kumar IInd semester student of Post Graduate Diploma in Business Management from J K Business School hare by declare that all information and facts and figures in this report are original in nature, which is collected from various locations. This information is true to the best of my knowledge.

Naresh Kumar PGDBM- II Sem.

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ACKNOWLEDGEMENT

The expression of words lose significance, when I turnover the pages of my mental encyclopedia to make an appealing forward of gratitude and obligation. I at the very onset express my gratitude to Mr.M.P.Gupta ( Accounts & Finance), Jindal Stainless Steel Ltd, Hisar who has always inspired me and shown his keen interest for the completion of my project. I wish to express my sincere gratitude to Mr.Abhishek my project guide at Jindal Stainless Steel Ltd, Hisar for the conceptual guidance and encouraging support.

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July 2009

Naresh Kumar

INDEX CONTENT

PG.NO.

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Declaration...........................................................2

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Acknowledgement………………………......….....3

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Preface…………………………………….......…...5

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Company Profile…………………………......…....6

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Objective of the Study…………………….....…..14

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Research Methodology………………….....…....16

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Suggestion……………………………….....….....75

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Bibliography…………………………………........76

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PREFACE Summer training is one of the most vital and active part for the life of management students. The basis idea behind this is to give the practical traning to the student and make them acquainted with actual method and procedures. As a part of P.G.D.B.M course, I underwent two months summer training at JINDAL STAINLESS Ltd. HISAR I did the work as a management trainee at JINDAL STAINLESS Ltd. HISAR at the time company gave me project entitled “Portfolio Management” Made an extensive research and efforts has been made for successful fulfilment of on the training report.

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COMPANY PROFILE

The Group Jindal Organization, set up in 1970 by the steel visionary Mr. O.P. Jindal, has grown from an indigenous single-unit steel plant in Hisar, Haryana to the present multibillion, multi-national and multi-product steel conglomerate. The organization is still expanding, integrating, amalgamating and growing. The group places its commitment to sustainable development, of its people and the communities in which it operates, at the heart of its strategy and aspires to be a benchmark for players in the industry the world over. The Jindal Organization today is a global player. It's relentless quest for excellence has reaped rich benefits and it is today one of the world’s most admired and respected groups within the steel fraternity.

Jindal Stainless Jindal Stainless is in many ways very much like the material it produces. Like stainless steel the company is versatile in its thought process, strong and unrelenting in its operations, environment friendly in its manufacturing process, bright, shining and beautiful in its community support activities. The list of the properties of stainless steel is endless, just as our values are all encompassing. Jindal Stainless has always been committed to innovation and progression, research and development. Our innovations are admired beyond the geographical boundaries of our country. No wonder we are the strategic partners of global leaders by choice. Our achievements narrate a story of our determination to succeed and our passion to win. We will continue to leverage our opportunities in creating excellence that the world cannot even think about. Today we are the largest integrated stainless steel producer in India, tomorrow we will rule the world.

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Jindal Stainless is a ISO: 9001 & ISO: 14001 company is the flagship company of the Jindal Organization. The company today, has come a long way from a single factory establishment, started in 1970. As the numero uno it has taken on the task of making stainless steel a part of everybody's life by taking a 360 degrees approach from production of raw materials to supply of architecture and lifestyle related products.

Our Main Facilities

• Steel Making Major equipment Process

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Hot Rolling Finishing (HR Product) Processing of Hot Rolled Products

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Cold Rolling Coil Build up line Skin Pass Mill Slitting Line Strip Grinding Line Shearing Line Bright Annealing line

• Razor and Surgical Blade Steel

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Coin Blanks Production Process Cupro-Nickel Complex

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Hisar Plant, India At Hisar, Jindal Stainless has India's only composite stainless steel plant for the manufacture of Stainless Steel Slabs, Blooms, Hot rolled and Cold Rolled Coils, 60% of which are exported worldwide. The R&D division at JSL, Hisar plays a pivotal rolein retaining and consolidating company's leadership role in stainless steel business by continuous up gradation of quality, process and services, and innovating development strategies to come up with new products with cost competitiveness. Cross-fertilization of knowledge between production, quality control and commercial units in order to maintain world class standard has been the guiding principle of R&D functions.

Major tasks of Jindal Stainless 1. Developments of high value products to serve niche market. 2. Quality up gradation of existing products enabling global acceptance. 3. Cost reduction by process development, optimization and refinement to improve competitive edge 4. Technology enhancement to increase the quality production. 5. Market segment improvement by interacting and sharing knowledge with customers and assisting them in trouble shooting operation. In addition to the above, R&D division closely interacts with reputed national and international laboratories/scientific institution/universities to avail expert services for critical investigation

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Precision Strips The company produces stainless steel precision strips in various grades. These strips are produced in narrow 20-Hi mills in the precision cold rolling unit. Blade Steel The Company is the exclusive producer of stainless steel strips for making razor and surgical blades in India. Coin Blanks Besides supplying CR Strips to the Government of India, the plant at Hisar houses a coin blanking line for supply of coin blanks to the Indian Mint and Mints in the global markets.

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Vizag - India The Ferro Alloys plant is situated at Jindal Nagar, Kothavasala, Distt. Vizianagaram, Andhra Pradesh. The installed capacity is 40,000 metric tonnes per annum of high Carbon Ferro Chrome. Besides supplying to the domestic market, the company also exports Ferro Chrome to various developed countries. The plant is also equipped with an ultra modern testing laboratory to ensure world-class quality standards.

Orissa Project - India Jindal Stainless is setting up a Greenfield integrated Stainless Steel project in the state of Orissa which would involve mining of Iron, Manganese & chrome ore for production of ferroalloys and Stainless Steel in the melt shop and rolling mills. To meet the full requirement of power, Jindal Stainless will also be setting up a 500 MW captive power plant. This stainless steel plant will ultimately have a capacity of 1.6 million tones per annum. The operation of XX 60 MVA ferro-chrome furnace have already started and the production has stabilised. JSL expects to start the xx125 MW power plants soon followed up by setting up of other ferro alloys units of ferromanganese and silico- manganese.

Subsidiary Companies of Jindal Stainless PT Jindal Stainless Indonesia Jindal Stainless has acquired Stainless Steel Cold Rolling plant in Indonesia from Maspion Stainless Steel.

Jindal Stainless Steel way Limited Another first, another feather - Jindal Stainless Limited has taken a leading step forward to bring convenient, customized, world class, just - in - time service in stainless steel to doorsteps of its valued customers. The company has partnered with a leading Italian company in business of distribution and processing of steel, Steel way s.r.l. to service its customers with exact slit, cut-to-size, polished stainless steel sheets, coils and blanks in different grades with highest standards of processing tolerance.

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The facilities in Gurgaon (Haryana) include state of the art, high end precision Slitting, cutting to length, blanking and polishing lines which are supplied by the leading steel finishing equipment manufacturers, FIMI & IMEAS, Italy. Some of the services offered are customized products, inventory management services, technical value engineering services, warehousing and material testing.

Austenitic Creations Private Limited Art d'inox is the exciting new form of ultimate style. The name translates into 'the art of stainless steel'. And that's precisely what it is. Works of art in stainless steel. Set up with the objective of creating exclusive stainless steel lifestyle products, these are synonymous with quality, beauty and functionality. The professionally qualified inhouse design team is dedicated to exploring the frontiers of design. The product range is a celebration of both form and function. The range encompasses tableware, serving ware, gifts, home accessories and office accessories.

Jindal Architecture Limited Stainless steel is a material par excellence, which now seeks to permeate through Indian Architecture. The Architectural Division launched by Jindal Stainless Ltd has taken the initiative to promote Stainless steel products and technology solutions to cater to the emerging market of Stainless Steel for Architecture, Building and Construction (ABC) in India. The Architectural Division of Jindal Stainless is capable of providing a full range of technical support services including design, engineering work, fabrication of quality material and finishes, and job site supervision by trained personnel. The division has completed many projects specially that of street furniture, cafeteria furniture, lighting and signages apart from other architectural requirements.

Besides these other companies are as follows :

Jindal Stainless UK Limited, London Jindal Stainless FZE, Dubai Jindal Stainless Italy S.r.l.

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Corporate Social Responsibility Shri OP Jindal, had a vision of a progressive state - a state where men and women worked shoulder to shoulder towards a happier tomorrow. Jindal Stainless constantly echoes those thoughts and takes its role as a responsible corporate citizen very seriously. Giving back to the community at large has been an objective from the very beginning. Schools at various levels have been set up to educate the specifiers of the future. The Vidya Devi Jindal and The Jindal Modern School, at Hisar, is fully child oriented and ensures ‘holistic development’ of a student’s mental and physical potential. Adopting villages and thus contributing to the development of a region has also been part of the overall Jindal plan. Improving of medical facilities is yet another field of endeavor. NC JIM Care, at Hisar offers the entire range of diagnostic, treatment and surgical facilities. Immunization drives and free healthcare camps on different medical aspects are also conducted from time to time.

Eco Friendliness At our Stainless Steel plants, the challenge faced is to make and process stainless steel without adversely impacting the environment. Jindal Stainless has a formal environmental protection program in place since inception. We recognize the importance of protecting our environment, and that of our children and our commitment is unwavering in this respect. Jindal Stainless Ltd. complies with the requirements of the State Pollution Control Board. Having received the ISO 14001 certification, the company has a full-fledged environment department that manages the existing facilities for pollution control. It has a sewage treatment plant for domestic affluent whose treated water is reused for horticulture purposes as well as in industrial applications. With greater efforts being made to achieve low long-term maintenance costs, less environmental impact and greater concern with life cycle costs, the market for stainless steel continues to improve.

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Vision “The seed of change is condensed in one single moment that heralds tomorrow’s hope and way into newer horizons”

Vision-2010 • • •

To be amongst the top 10 stainless steel producers in the world To gain international recognition for cost leadership, Product innovation and Customer Satisfaction To be admired as a socially responsible Corporate and a sustained value creator for all its stakeholders

Jindal Stainless (JSL) was established in 1970 and is under the Jindal Group. Jindal Stainless Ltd. has expanded since its establishment from a steel plant of a single unit to become a multi-product and multi-national steel company. The Jindal Stainless Company's main business is to produce stainless steel. In India, the company is the only manufacturer of strips of stainless steel which are used for making surgical and razor blades. Jindal Stainless Company supplies to the Indian government CR strips. It also supplies coin blanks to the mint in India as well as in the world. The various other services offered by the Jindal Stainless Ltd. are services in inventory management, engineering services in technical value, warehousing, material testing, and customized products. Jindal Stainless Company is the biggest producer of stainless steel in the country. The company has a 40% market share in the stainless steel sector in India. The company has subsidiary companies which are Jindal Stainless> Steelway and PT Jindal Stainless. The total income of the Jindal Stainless amounted to Rs. 8,598.2 million in 20052006 and the next year the figure stood at Rs. 12,014.9 million. The net profit of the company amounted to Rs. 507.9 million in 2005- 2006 and the next year the amount increased to Rs. 826 million. Jindal Stainless Company is planning to establish a stainless steel plant in Orissa with the production capacity of 1.6 million tons per year. The company will make an investment of around Rs. 56 billion in setting up this plant. Jindal Stainless has become the leading company in the stainless steel sector in India. As it plans to expand in the near future, the company is sure to become one of the leading stainless steel companies in the world.

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Jindal Stainless is in many ways very much like the material it produces. Like stainless steel the company is versatile in its thought process, strong and unrelenting in its operations, environment friendly in its manufacturing process, bright, shining and beautiful in its community support activities. The list of the properties of stainless steel is endless, just as our values are all encompassing. Jindal Stainless has always been committed to innovation and progression, research and development. Our innovations are admired beyond the geographical boundaries of our country. No wonder we are the strategic partners of global leaders by choice. Our achievements narrate a story of our determination to succeed and our passion to win. We will continue to leverage our opportunities in creating excellence that the world cannot even think about. Today we are the largest integrated stainless steel producer in India, tomorrow we will rule the world. Jindal Stainless, a $780 million plus ISO: 9002 & ISO: 14001 is the flagship company of the Jindal Organization. The company today has come a long way from a single factory establishment, started in 1970. As the numerounoit has taken on the task of making stainless steel a part of everybody's life by taking a360 degrees approach from production of raw materials to supply of architecture and lifestyle related products.

Research & Development activities At JSL, Hisar The R&D division at JSL, Hisar plays a pivotal role in retaining and consolidating company's leadership role in stainless steel business by continuous up gradation of quality, process and services, and innovating development strategies to come up with new products with cost competitiveness. Cross-fertilization of knowledge between production, quality control and commercial units in order to maintain world class standard has been the guiding principle of R&D functions.

Major tasks 1. Developments of high value products to serve niche market. 2. Quality up gradation of existing products enabling global acceptance. 3. Cost reduction by process development, optimization and refinement to improve competitive edge 4. Technology enhancement to increase the quality production. 5. Market segment improvement by interacting and sharing knowledge with customers and assisting them in trouble shooting operation. In addition to the above, R&D division closely interacts with reputed national and international laboratories/scientific institution/universities to avail expert services for

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OBJECTIVE OF THE STUDY I did the Project on PORTFOLIO MANAGEMENT in JINDAL STAINLESS LTD. The main objective of the study of Portfolio Management is to suggest to the company about the various Investment option through which company can earn more profit by reducing risk factor. The executives or the official responsible for the project can make use of the portfolio management for critically reviewing the entire portfolio, appropriately allocate and spread the available resources, and make changes in projects so as to reap maximum department based returns In any product development the Portfolio Management is very useful in selecting a portfolio for the proposed new product and to maximize the portfolio value or the profitability. Further it can also be made use for providing balance, support and the needed strategies for the enterprise. As the name goes the job of a project portfolio management group is to plan or devise a strategy with which the portfolio can be managed much similar to any investor’s managing activities involving various stocks, mutual funds, secured fixed deposits, and bonds. The main purpose or the aim of any portfolio investment

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will be on the lines of increasing profits or returns with reduced risks and within a limited period. In the world of Information Technology, project managers can effectively use the tools of the project portfolio management in identifying the redundancies or

superfluous processes, and to evenly distribute resources so as to keep a close watch over the progress and to direct the progress in the right and desired direction in case of need. Majority of the investments made in the IT scenario in the last ten years actually are aimed to determine the nature of returns from the investments made and the possible expected results in the future.

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RESEARCH METHODOLOGY

Portfolio Management Portfolio

In finance, a portfolio is an appropriate mix of or collection of investments held by an institution or a private individual. Holding a portfolio is part of an investment and risk-limiting strategy called diversification. By owning several assets, certain types of risk (in particular specific risk) can be reduced. The assets in the portfolio could include stocks, bonds, options, warrants, gold certificates, real estate, futures contracts, production facilities, or any other item that is expected to retain its value. In building up an investment portfolio a financial institution will typically conduct its own investment analysis, whilst a private individual may make use of the services of a financial advisor or a financial institution which offers portfolio management services Portfolio management involves deciding what assets to include in the portfolio, given the goals of the portfolio owner and changing economic conditions. Selection involves deciding what assets to purchase, how many to purchase, when to

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purchase them, and what assets to divest. These decisions always involve some sort

of performance measurement, most typically expected return on the portfolio, and the risk associated with this return (i.e. the standard deviation of the return). Typically the expected return from portfolios of different asset bundles are compared. The unique goals and circumstances of the investor must also be considered. Some investors are more risk averse than others. Mutual funds have developed particular techniques to optimize their portfolio holdings. See fund management for details. Many strategies have been developed to form a portfolio. •

equally-weighted portfolio

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capitalization-weighted portfolio

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price-weighted portfolio

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optimal portfolio (for which the Sharpe ratio is highest)

Some of the financial models used in the process of Valuation, stock selection, and management of portfolios include: •

Maximizing return, given an acceptable level of risk.

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Modern portfolio theory—a model proposed by Harry Markowitz among others.

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The single-index model of portfolio variance.

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Capital asset pricing model.

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Arbitrage pricing theory.

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The Jensen Index.

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The Treynor Index.

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The Sharpe Diagonal (or Index) model.

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Value at risk model.

There are many different methods for calculating portfolio returns. A traditional method has been using quarterly or monthly money-weighted returns. A moneyweighted return calculated over a period such as a month or a quarter assumes that the rate of return over that period is constant. As portfolio returns actually fluctuate daily, money-weighted returns may only provide an approximation to a portfolio’s actual return. These errors happen because of cash flows during the measurement period. The size of the errors depends on three variables: the size of the cash flows, the timing of the cash flows within the measurement period, and the volatility of the portfolio. A more accurate method for calculating portfolio returns is to use the true timeweighted method. This entails revaluing the portfolio on every date where a cash flow takes place (perhaps even every day), and then compounding together the daily returns. Performance Attribution explains the active performance (i.e. the benchmark-relative performance) of a portfolio. For example, a particular portfolio might be benchmarked against the S&P 500 index. If the benchmark return over some period

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was 5%, and the portfolio return was 8%, this would leave an active return of 3% to be explained. This 3% active return represents the component of the portfolio's return that was generated by the investment manager (rather than by the benchmark).

There are different models for performance attribution, corresponding to different investment processes. For example, one simple model explains the active return in "bottom-up" terms, as the result of stock selection only. On the other hand, sector attribution explains the active return in terms of both sector bets (for example, an overweight position in Materials, and an underweight position in Financials), and also stock selection within each sector (for example, choosing to hold more of the portfolio in one bank than another). An altogether different paradigm for performance attribution is based on using factor models, such as the Fama-French three-factor model. Modern portfolio theory Modern portfolio theory (MPT) proposes how rational investors will use diversification to optimize their portfolios, and how a risky asset should be priced. The basic concepts of the theory are Markowitz diversification, the efficient frontier, capital asset pricing model, the alpha and beta coefficients, the Capital Market Line and the Securities Market Line.

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MPT models an asset's return as a random variable, and models a portfolio as a weighted combination of assets so that the return of a portfolio is the weighted combination of the assets' returns. Moreover, a portfolio's return is a random variable, and consequently has an expected value and a variance. Risk, in this model, is the standard deviation of return.

The model assumes that investors are risk adverse, meaning that given two assets that offer the same expected return, investors will prefer the less risky one. Thus, an investor will take on increased risk only if compensated by higher expected returns. Conversely, an investor who wants higher returns must accept more risk. The exact trade-off will differ by investor based on individual risk aversion characteristics. The implication is that a rational investor will not invest in a portfolio if a second portfolio exists with a more favorable riskreturn profile – i.e., if for that level of risk an alternative portfolio exists which has better expected returns

It is further assumed that investor's risk / reward preference can be described via a quadratic utility function. The effect of this assumption is that only the expected return and the volatility (i.e., mean return and standard deviation) matter to the investor. The investor is indifferent to other characteristics of the distribution of returns, such as its skew (measures the level of asymmetry in the distribution) or kurtosis (measure of the thickness or so-called "fat tail"). Note that the theory uses a parameter, volatility, as a proxy for risk, while return is an expectation on the future. This is in line with the efficient market hypothesis and

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most of the classical findings in finance such as Black and Scholes European Option Pricing (martingale measure: shortly speaking means that the best forecast for tomorrow is the price of today). Recent innovations in portfolio theory, particularly under the rubric of Post-Modern Portfolio Theory (PMPT), have exposed several flaws in this reliance on variance as the investor's risk proxy: •

The theory uses a historical parameter, volatility, as a proxy for risk, while return is an expectation on the future. (It is noted though that this is in line with the Efficiency

Hypothesis and most of the classical findings in finance such as Black and Scholes which make use of the martingale measure, i.e. the assumption that the best forecast for tomorrow is the price of today). •

The statement that "the investor is indifferent to other characteristics" seems not to be true given that skewness risk appears to be priced by the market

Investment management Investment management is the professional management of various securities (shares, bonds etc.) and assets (e.g., real estate), to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds) .

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The term Asset Management is often used to refer to the investment management of collective investments, whilst the more generic Fund Management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as Wealth Management or Portfolio Management often within the context of so-called "private banking". The provision of 'Investment Management Services' includes elements of financial analysis, asset selection, stock selection, plan implementation and ongoing

monitoring of investments. Investment management is a large and important global industry in its own right responsible for caretaking of trillions of dollars, euro, pounds and yen. Coming under the remit of financial services many of the world's largest companies are at least in part investment managers and employ millions of staff and create billions in revenue. Fund manager (or investment advisor in the U.S.) refers to both a firm that provides investment management services and an individual(s) who directs 'fund management' decisions Industry Scope The business of investment management has several facets, including the employment of professional fund managers, research (of individual assets and asset classes), dealing, settlement, marketing, internal auditing, and the preparation of

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reports for clients. The largest financial fund managers are firms that exhibit all the complexity their size demands. Apart from the people who bring in the money (marketers) and the people who direct investment (the fund managers), there are compliance staff (to ensure accord with legislative and regulatory constraints), internal auditors of various kinds (to examine internal systems and controls), financial controllers (to account for the institutions' own money and costs), computer experts, and "back office" employees (to track and record transactions and fund valuations for up to thousands of clients per institution)

Philosophy, process and people The 3-P's (Philosophy, Process and People) are often used to describe the reasons why the manager is able to produce above average results. •

Philosophy refers to the over-arching beliefs of the investment organization. For example: (i) Does the manager buy growth or value shares (and why)? (ii) Does he believe in market timing (and on what evidence)? (iii) Does he rely on external research or does he employ a team of researchers? It is helpful if any and all of such fundamental beliefs are supported by proof-statements.

•

Process refers to the way in which the overall philosophy is implemented. For example: (i) which universe of assets is explored before particular assets are chosen as suitable investments? (ii) How does the manager decide what to buy and when? (iii) How does the manager decide what to sell and when? (iv) Who takes the decisions and are they taken by committee? (v) What controls are in place to ensure

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that a rogue fund (one very different from others and from what is intended) cannot arise? •

People refers to the staff, especially the fund managers. The questions are, Who are they? How are they selected? How old are they? Who reports to whom? How deep is the team (and do all the members understand the philosophy and process they are supposed to be using)? And most important of all, How long has the team been working together? This last question is vital because whatever performance record was presented at the outset of the relationship with the client may or may not relate to (have been produced by) a team that is still in place. If the team has changed greatly (high staff turnover or changes to the team), then arguably the performance record is completely unrelated to the existing team (of fund managers).

Asset Management can refer to: •

Financial Asset Management: o

Investment management - the sector of the financial services industry that manages collective investment schemes.

o

Global assets under management

o

Fixed assets management - An accounting process that seeks to track fixed assets for the purposes of financial accounting.

•

Infrastructure Asset Management - the practice of managing (operating, maintaining, repairing, replacing) physical infrastructure assets such as roading, water supply, wastewater, storm water, power supply, flood management, recreational and other assets.

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•

Enterprise Asset Management - sometimes referred to as Strategic Asset Management - the practice of managing an organization’s assets, both physical (such as buildings) and non-physical such as: o

IT asset management - the set of business practices that join financial, contractual and inventory functions to support life cycle management and strategic decision making for the IT environment. This is also one of the processes defined within IT Management Service

o

Digital asset management – A form of electronic media content management that includes digital assets

Investment managers and portfolio structures

At the heart of the investment management industry are the managers who invest and divest client investments.

A certified company investment advisor should conduct an assessment of each client's individual needs and risk profile. The advisor then recommends appropriate investments. Asset allocation

The different asset classes are stocks, bonds, real-estate and commodities. The exercise of allocating funds among these assets (and among individual securities within each asset class) is what investment management firms are paid for. Asset classes exhibit different market dynamics, and different interaction effects; thus, the

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allocation of monies among asset classes will have a significant effect on the performance of the fund. Some research suggests that allocation among asset classes has more predictive power than the choice of individual holdings in determining portfolio return. Arguably, the skill of a successful investment manager resides in constructing the asset allocation, and separately the individual holdings, so as to outperform certain benchmarks (e.g., the peer group of competing funds, bond and stock indices). Long-term returns

It is important to look at the evidence on the long-term returns to different assets, and to holding period returns (the returns that accrue on average over different lengths of investment). For example, over very long holding periods (eg. 10+ years) in most countries, equities have generated higher returns than bonds, and bonds have generated higher returns than cash. According to financial theory, this is

because equities are riskier (more volatile) than bonds which are themselves more risky than cash. Diversification

Against the background of the asset allocation, fund managers consider the degree of diversification that makes sense for a given client (given its risk preferences) and construct a list of planned holdings accordingly. The list will indicate what percentage of the fund should be invested in each particular stock or bond. The theory of portfolio diversification was originated by Markowitz and effective diversification

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requires management of the correlation between the asset returns and the liability returns, issues internal to the portfolio (individual holdings volatility), and crosscorrelations between the returns. Investment Styles There are a range of different styles of fund management that the institution can implement. For example, growth, value, market neutral, small capitalisation, indexed, etc. Each of these approaches has its distinctive features, adherents and, in any particular financial environment, distinctive risk characteristics. For example, there is evidence that growth styles (buying rapidly growing earnings) are especially effective when the companies able to generate such growth are scarce; conversely, when such growth is plentiful, then there is evidence that value styles tend to outperform the indices particularly successfully.

Performance measurement Fund performance is the acid test of fund management, and in the institutional context accurate measurement is a necessity. For that purpose, institutions measure the performance of each fund (and usually for internal purposes components of each fund) under their management, and performance is also measured by external firms that specialize in performance measurement. The leading performance measurement firms (e.g. Frank Russell in the USA) compile aggregate industry data, e.g., showing how funds in general performed against given indices and peer groups over various time periods.

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In a typical case (let us say an equity fund), then the calculation would be made (as far as the client is concerned) every quarter and would show a percentage change compared with the prior quarter (e.g., +4.6% total return in US dollars). This figure would be compared with other similar funds managed within the institution (for purposes of monitoring internal controls), with performance data for peer group funds, and with relevant indices (where available) or tailor-made performance benchmarks where appropriate. The specialist performance measurement firms calculate quartile and decile data and close attention would be paid to the (percentile) ranking of any fund. Generally speaking, it is probably appropriate for an investment firm to persuade its clients to assess performance over longer periods (e.g., 3 to 5 years) to smooth out very short term fluctuations in performance and the influence of the business cycle. This can be difficult however and, industry wide, there is a serious preoccupation with short-term numbers and the effect on the relationship with clients (and resultant business risks for the institutions).

An enduring problem is whether to measure before-tax or after-tax performance. After-tax measurement represents the benefit to the investor, but investors' tax positions may vary. Before-tax measurement can be misleading, especially in regimens that tax realised capital gains (and not unrealised). It is thus possible that successful active managers (measured before tax) may produce miserable after-tax results. One possible solution is to report the after-tax position of some standard taxpayer.

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Absolute versus relative performance

In the USA and the UK, two of the world's most sophisticated fund management markets, the tradition is for institutions to manage client money relative to benchmarks. For example, an institution believes it has done well if it has generated a return of 5% when the average manager (usually culled from amongst its peer class) generates a 4% return. Risk-adjusted performance measurement

Performance measurement should not be reduced to the evaluation of fund returns alone, but must also integrate other fund elements that would be of interest to investors, such as the measure of risk taken. Several other aspects are also part of performance measurement: evaluating if managers have succeeded in reaching their objective, i.e. if their return was sufficiently high to reward the risks taken; how they compare to their peers; and finally whether the portfolio management results were due to luck or the manager’s skill. The need to answer all these questions has led to

the development of more sophisticated performance measures, many of which originate in modern portfolio theory. Modern portfolio theory established the quantitative link that exists between portfolio risk and return. The Capital Asset Pricing Model (CAPM) developed by Sharpe (1964) highlighted the notion of rewarding risk and produced the first performance indicators, be they risk-adjusted ratios (Sharpe ratio, information ratio) or differential

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returns compared to benchmarks (alphas). The Sharpe ratio is the simplest and best known performance measure. It measures the return of a portfolio in excess of the risk-free rate, compared to the total risk of the portfolio. This measure is said to be absolute, as it does not refer to any benchmark, avoiding drawbacks related to a poor choice of benchmark. Meanwhile, it does not allow the separation of the performance of the market in which the portfolio is invested from that of the manager. The information ratio is a more general form of the Sharpe ratio in which the risk-free asset is replaced by a benchmark portfolio. This measure is relative, as it evaluates portfolio performance in reference to a benchmark, making the result strongly dependent on this benchmark choice. Portfolio alpha is obtained by measuring the difference between the return of the portfolio and that of a benchmark portfolio. This measure appears to be the only reliable performance measure to evaluate active management. In fact, we have to distinguish between normal returns, provided by the fair reward for portfolio exposure to different risks, and obtained through passive management, from abnormal performance (or outperformance) due to the manager’s skill, whether through market timing or stock picking. The first component is related to allocation and style

investment choices, which may not be under the sole control of the manager, and depends on the economic context, while the second component is an evaluation of the success of the manager’s decisions. Only the latter, measured by alpha, allows the evaluation of the manager’s true performance.

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Portfolio normal return may be evaluated using factor models. The first model, proposed by Jensen (1968), relies on the CAPM and explains portfolio normal returns with the market index as the only factor. It quickly becomes clear, however, that one factor is not enough to explain the returns and that other factors have to be considered. Multi-factor models were developed as an alternative to the CAPM, allowing a better description of portfolio risks and an accurate evaluation of managers’ performance. For example, Fama and French (1993) have highlighted two important factors that characterize a company's risk in addition to market risk. These factors are the book-to-market ratio and the company's size as measured by its market capitalisation. Fama and French therefore proposed a three-factor model to describe portfolio normal returns. Carhart (1997) proposed to add momentum as a fourth factor to allow the persistence of the returns to be taken into account. Also of interest for performance measurement is Sharpe’s (1992) style analysis model, in which factors are style indices. This model allows a custom benchmark for each portfolio to be developed, using the linear combination of style indices that best replicate portfolio style allocation, and leads to an accurate evaluation of portfolio alpha.

Education or Certification Increasingly, international business schools are incorporating the subject into their course outlines and some have formulated the title of 'Investment Management' conferred as specialist bachelors degrees (e.g. Cass Business School, London).

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Due to global cross-recognition agreements with the 2 major accrediting agencies AACSB and ACBSP which accredit over 560 of the best business school programs, the Certification of MFP Master Financial Planner Professional from the American Academy of Financial Management is available to AACSB and ACBSP business school graduates with finance or financial services-related concentrations. For people with aspirations to become an investment manager, further education may be needed beyond bachelors in business, finance, or economics. A graduate degree or an investment qualification such as Chartered Financial Analyst (CFA) may help in having a career in investment management. There is no evidence that any particular qualification enhances the most desirable characteristic of an investment manager, that is the ability to select investments that result in an above average (risk weighted) long-term performance. The industry has a tradition of seeking out, employing and generously rewarding such people without reference to any formal qualifications Global assets under management Global asset allocation or Global assets under management consists of pension funds, insurance companies and mutual funds. Other funds under management include private wealth and alternative assets such as hedge funds and private equity. Institutional clients generate the majority of funds. Assets of the global fund management industry increased 15% in 2006 and nearly doubled from 2002, to reach a record $61.9 trillion. Growth in recent years has largely been due to rising net flow of investment and strong

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performance of equity markets. Part of the reason for the increase, in dollar terms, has also been the decline in the value of the dollar against a number of currencies.

Fixed assets management Fixed assets management is an accounting process that seeks to track fixed assets for the purposes of financial accounting, preventive maintenance, and theft deterrence. Many organizations face a significant challenge to track the location, quantity, condition, maintenance and depreciation status of their fixed assets. A popular approach to tracking fixed assets utilizes serial numbered Asset Tags, often with bar codes for easy and accurate reading. Periodically, the owner of the assets can take inventory with a mobile barcode reader and then produce a report. Off-the-shelf software packages for fixed asset management are marketed to businesses small and large. Some Enterprise Resource Planning systems are available with fixed assets modules. Some tracking methods automate the process, such as by using fixed scanners to read bar codes on railway freight cars or by attaching a radio-frequency identification (RFID) tag to an asset. Fixed Asset Tracking Software

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Tracking assets is an important concern of every company, regardless of size. Fixed assets are defined as any 'permanent' object that a business uses internally including but not limited to computers, tools, software, or office equipment. While employees may utilize a specific tool or tools, the asset ultimately belongs to the company and must be returned. And therefore without an accurate method of keeping track of these assets it would be very easy for a company to lose control of them. With advancements in technology, asset tracking software is now available that will help any size business track valuable assets such as equipment and supplies. According to a study issued in December, 2005 by the ARC Advisory Group, the worldwide market for Enterprise Asset Management (EAM) was then at an estimated $2.2 billion and was expected to grow at about 5.0 percent per year reaching $2.8 billion in 2010. Asset tracking software allows companies to track what assets it owns, where each is located, who has it, when it was checked out, when it is due for return, when it is scheduled for maintenance, and the cost and depreciation of each asset. The reporting option that is built into most asset tracking solutions provides pre-built reports, including assets by category and department, check-in/check-out, net book value of assets, assets past due, audit history, and transactions. All of this information is captured in one program and can be used on PCs as well as mobile devices. As a result, companies reduce expenses through loss prevention and improved equipment maintenance. They reduce new and unnecessary

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equipment purchases, and they can more accurately calculate taxes based on depreciation schedules. The most commonly tracked assets are: •

Office Equipment

•

Evidence

•

Medical Equipment

•

IT Equipment, for example laptops.

•

Vehicles

•

Files

•

Maintenance supplies

•

Educational materials

•

Software licenses

•

Videos

•

Tools

Infrastructure Asset Management

Infrastructure Asset Management is the discipline of managing infrastructure assets that underpin an economy, such as roading, water supply, wastewater, stormwater, power supply, flood management, recreational and other assets. In the past these assets have typically been owned and managed by local or central government. Investment in these assets is made with the intention that dividends will accrue through increased productivity, improved living conditions and greater

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prosperity. A well-defined Standard of service (SOS) is the foundation of Infrastructure Asset

Management. The SOS states, in objective and measurable terms, how an asset will perform, including a suitable minimum condition grade in line with the impact of asset failure. There are two main objectives of Infrastructure Asset Management relating to standard of service: A) Sustain SOS (System Preservation): to sustain or deliver an agreed standard of service in the most cost-effective way through the operation, maintenance, refurbishment, and replacement of assets. Management of this objective is the focus of Asset Management Plans. B) Change SOS (Capacity Expansion): to make strategic changes and improvements to the standard of service of the asset portfolio through the creation, acquisition, improvement and disposal of assets. Changes to the SoS are usually managed as a programme based on strategic objectives regarding the asset portfolio. Sustain SOS (System Preservation) The key components of the sustain SOS objective are: •

a defined standard of service o

measurable specification of how the asset should perform

o

minimum condition grade

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•

a whole-life cost approach

•

asset management plan

Defined standard of service Without a defined standard of service (SoS) there is no means of knowing what service level customers can expect, and no effective control on the whole-life cost. With a clearly defined SOS, the asset manager is clear about how success or failure will be measured, and the customer understands what to expect in return for the expenditure on the asset system. There are two parts of a well-defined Standard of Service: the minimum condition grade and a specified performance standard. By managing against a defined SoS, which couples the performance specification with the condition grade as a measure of reliability, Asset Managers avoid the considerable complication of trying to optimise maintenance over short timeframes, or the need to determine the outcome or benefit associated with each individual intervention. Asset Management takes a whole-life cost approach to decisions regarding operation, maintenance, refurbishment and replacement of assets..

Asset Management Plan Asset Management Plans (AMP) are tactical plans for managing an organisation's infrastructure and other assets in order to achieve strategic objectives. Usually an Asset Management Plan will cover more than a single asset, taking a system

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approach - especially where a number of assets must work together in order to deliver an agreed standard of service. It is in the Asset Management Plan that the standard of service is recorded and compared against current standard, along with a long-term plan that shows how an

organisation will deliver the defined standard of service for the minimum whole-life cost. Priority in investment decision It is typical in an Asset Management setting that Sustain SOS (system preservation) "comes off the top" of the available funding Change SOS (Capacity Expansion) Asset portfolio strategy An Asset portfolio strategy revolves around meeting customer needs in the most effective and efficient way. Key asset portfolio strategy questions include: •

Is the need for the service real?

•

What standard of service is required?

•

Are the long-term costs of the current asset portfolio affordable?

•

Have non-asset solutions been explored?

•

What standard of service should new assets provide?

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This result of an Asset Portfolio Strategy often involves making strategic changes to the portfolio of assets in order to achieve strategic objectives, including whether of which some may be achievable without the use of infrastructure assets. This can be a combination of creation or acquisition of new assets or the disposal or improvement of existing assets. Depending on the drivers for change, this may be to

meet new demand (e.g. extending power supply to a planned development) or to relieve bottlenecks (e.g. providing additional roading capacity), or in response to reduced demand (e.g. disposal or abandonment of roads which are no longer in use) or where investment policy has changed (e.g. flood defences protecting low-value agricultural land from sea-level rise). In managing the asset portfolio, the long-term financial sustainability is an important boundary condition. Over-extending the asset portfolio beyond what will be affordable for future generations to maintain and operate is not sustainable. Social and environmental costs and benefits should also be considered carefully. To determine long-term sustainability a good understanding of the long-term costs of sustaining the asset portfolio is required. .

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JINDAL STAINLESS STEEL LTD. Can use his Money or grow his money to invest in these Sectors 1. To Invest In Derivatives Market 2. To invest in Mutual Funds 3. To Real Estate Business But The Company Is Not Listed In Bombay Stock Exchange and National Stock Exchange. So the company has only a single source to generate the money is to save the money in production and selling of the finished products. For Making Portfolio Of the Company the main part is of Working Capital Management. Because Company Do not invest in Derivatives market, Mutual Fund and Real Estate Business.

Investment management is the professional management of various securities (shares, bonds etc.) and assets (e.g., real estate), to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via

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investment contracts and more commonly via collective investment schemes e.g. mutual funds) . The term Asset Management is often used to refer to the investment management of collective investments, whilst the more generic Fund Management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to

their services as Wealth Management or Portfolio Management often within the context of so-called "private banking". The provision of 'investment management services' includes elements of financial analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Investment management is a large and important global industry in its own right responsible for caretaking of trillions of dollars, euro, pounds and yen. Coming under the remit of financial services many of the world's largest companies are at least in part investment managers and employ millions of staff and create billions in revenue. Fund manager (or investment advisor in the U.S.) refers to both a firm that provides investment management services and an individual(s) who directs 'fund management' decisions DERIVATIVES

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Derivatives are financial instruments whose value changes in response to the changes in underlying variables. The main types of derivatives are futures, forwards, options, and swaps. The main use of derivatives is to reduce risk for one party. The diverse range of potential underlying assets and pay-off alternatives leads to a wide range of derivatives contracts available to be traded in the market. Derivatives can be based on different types of assets such as commodities, equities (stocks), bonds, interest rates, exchange rates, or indexes (such as a stock market index, consumer price

index (CPI) — see inflation derivatives — or even an index of weather conditions, or other derivatives). Their performance can determine both the amount and the timing of the pay-offs. One use of derivatives is to be used as a tool to transfer risk by taking the opposite position in the underlying asset. For example, a wheat farmer and a wheat miller could enter into a futures contract to exchange cash for wheat in the future. Both parties have reduced a future risk: for the wheat farmer, the uncertainty of the price, and for the wheat miller, the availability of wheat. Over-The-Counter and Exchange-Traded

Broadly speaking there are two distinct groups of derivative contracts, which are distinguished by the way they are traded in market: •

Over-the-counter (OTC) derivatives are contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other

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intermediary. Products such as swaps, forward rate agreements, and exotic options are almost always traded in this way. The OTC derivatives market is huge. According to the Bank for International Settlements, the total outstanding notional amount is USD 516 trillion (as of June 2007)[ •

Exchange-traded derivatives (ETD) are those derivatives products that are traded via specialized derivatives exchanges or other exchanges. A derivatives exchange acts as an intermediary to all related transactions, and takes Initial margin from both sides of the trade to act as a guarantee. The world's largest[derivatives exchanges (by number of transactions) are the Korea Exchange (which lists KOSPI Index Futures & Options), Eurex (which lists a wide range of European products such as

interest rate & index products), and CME Group (made up of the 2007 merger of the Chicago Mercantile Exchange and the Chicago Board of Trade). According to BIS, the combined turnover in the world's derivatives exchanges totalled USD 344 trillion during Q4 2005. Some types of derivative instruments also may trade on traditional exchanges. For instance, hybrid instruments such as convertible bonds and/or convertible preferred may be listed on stock or bond exchanges. Also, warrants (or "rights") may be listed on equity exchanges. Performance Rights, Cash xPRTs and various other instruments that essentially consist of a complex set of options bundled into a simple package are routinely listed on equity exchanges. Like other derivatives, these publicly traded derivatives provide investors access to risk/reward and volatility characteristics that, while related to an underlying commodity, nonetheless are distinctive

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Types

There are three major classes of derivatives: •

Futures/Forwards, which are contracts to buy or sell an asset at a specified future date.

•

Optionals, which are contracts that give a holder the right to buy or sell an asset at a specified future date.

•

Swappings, where the two parties agree to exchange cash flows.

Valuation Two common measures of value are: •

Market price, i.e. the price at which traders are willing to buy or sell the contract

•

Arbitrage-free price, meaning that no risk-free profits can be made by trading in these contracts; see rational pricing

For exchange-traded derivatives, market price is usually transparent (often published in real time by the exchange, based on all the current bids and offers placed on that particular contract at any one time). Complications can arise with OTC or floor-traded contracts though, as trading is handled manually, making it difficult to automatically broadcast prices. In particular with OTC contracts, there is no central exchange to collate and disseminate

46

prices. The arbitrage-free price for a derivatives contract is complex, and there are many different variables to consider. Arbitrage-free pricing is a central topic of financial mathematics. The stochastic process of the price of the underlying asset is often crucial. A key equation for the theoretical valuation of options is the Black–Scholes formula, which is based on the assumption that the cash flows from a European stock option can be replicated by a continuous buying and selling strategy using only the stock. A simplified version of this valuation technique is the binomial options model.

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Total world derivatives from 1998-2007 compared to total world wealth in the year 2000

Derivatives are often subject to the following criticisms: •

The use of derivatives can result in large losses due to the use of leverage. Derivatives allow investors to earn large returns from small movements in the underlying asset's price. However, investors could lose large amounts if the price of the underlying moves against them significantly. There have been several instances of massive losses in derivative markets, including: •

The Nick Leeson affair in 1994.

•

The bankruptcy of Orange County, CA in 1994, the largest municipal bankruptcy in U.S. history. On December 6, 1994, Orange County declared

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Chapter 9 bankruptcy, from which it emerged in June 1995. The county lost about $1.6 billion through derivatives trading. Orange County was neither

bankrupt nor insolvent at the time; however, because of the strategy the county employed it was unable to generate the cash flows needed to maintain services. Orange County is a good example of what happens when derivatives are used incorrectly and positions liquidated in an unplanned manner; had they not liquidated they would not have lost any money as their positions rebounded. Potentially problematic use of interest-rate derivatives by US municipalities has continued in recent years. See, for example: •

The bankruptcy of Long-Term Capital Management in 2000.

•

The loss of $6.4 billion in the failed fund Amaranth Advisors, which was long natural gas in September 2006 when the price plummeted.

•

The loss of $7.2 Billion by Société Générale in January 2008 through mis-use of futures contracts.

•

Derivatives (especially swaps) expose investors to counter-party risk. For example, suppose a person wanting a fixed interest rate loan for his business, but finding that banks only offer variable rates, swaps payments with another business who wants a variable rate, synthetically creating a fixed rate for the person. However if the second business goes bankrupt, it can't pay its variable rate and so the first business will lose its fixed rate and will be paying a variable rate again. If interest rates have increased, it is possible that the first business may be adversely affected, because it may not be prepared to pay the higher variable rate. Different types of derivatives have different levels of risk for this effect. For example, standardized stock options by law require the party at risk to have a certain amount deposited with the exchange,

49

showing that they can pay for any losses; Banks who help businesses swap variable for fixed rates on loans may do credit checks on both parties. However in private

agreements between two companies, for example, there may not be benchmarks for performing due diligence and risk analysis. •

Derivatives pose unsuitably high amounts of risk for small or inexperienced investors. Because derivatives offer the possibility of large rewards, they offer an attraction even to individual investors. However, speculation in derivatives often assumes a great deal of risk, requiring commensurate experience and market knowledge, especially for the small investor, a reason why some financial planners advise against the use of these instruments. Derivatives are complex instruments devised as a form of insurance, to transfer risk among parties based on their willingness to assume additional risk, or hedge against it.

•

Derivatives typically have a large notional value. As such, there is the danger that their use could result in losses that the investor would be unable to compensate for. The possibility that this could lead to a chain reaction ensuing in an economic crisis, has been pointed out by legendary investor Warren Buffett in Berkshire Hathaway's annual report. Buffet stated that he regarded them as ‘financial Weapons of Mass

Destruction. The problem with derivatives is that they control an increasingly larger notional amount of assets and this may lead to distortions in the real capital and equities markets. Investors begin to look at the derivatives markets to make a decision to buy

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or sell securities and so what was originally meant to be a market to transfer risk now becomes a leading indicator.

•

Derivatives massively leverage the debt in an economy, making it ever more difficult for the underlying real economy to service its debt obligations and curtailing real economic activity, which can cause a recession or even depression. In the view of Marriner S. Eccles, U.S. Federal Reserve Chairman from November, 1934 to February, 1948, too high a level of debt was one of the primary causes of the 1920s30s Great Depression.

Nevertheless, the use of Derivatives has its benefits: •

Derivatives facilitate the buying and selling of risk, and thus have a positive impact on the economic system. Although someone loses money while someone else gains money with a derivative, under normal circumstances, trading in derivatives should not adversely affect the economic system because it is not zero sum in utility.

•

Former Federal Reserve Board chairman Alan Greenspan commented in 2003 that he believed that the use of derivatives has softened the impact of the economic downturn at the beginning of the 21st century.

•

Bilateral Netting: A legally enforceable arrangement between a bank and a counterparty that creates a single legal obligation covering all included individual contracts. This means that a bank’s obligation, in the event of the default or insolvency of one of the parties, would be the net sum of all positive and negative fair values of contracts included in the bilateral netting arrangement.

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•

Credit derivative: A contract that transfers credit risk from a protection buyer to a credit protection seller. Credit derivative products can take many forms, such as credit default swaps, credit linked notes and total return swaps.

•

Derivative: A financial contract whose value is derived from the performance of assets, interest rates, currency exchange rates, or indexes. Derivative transactions include a wide assortment of financial contracts including structured debt obligations and deposits, swaps, futures, options, caps, floors, collars, forwards and various combinations thereof.

•

Exchange-traded derivative contracts: Standardized derivative contracts (e.g. futures contracts and options) that are transacted on an organized futures exchange.

•

Gross negative fair value: The sum of the fair values of contracts where the bank owes money to its counter-parties, without taking into account netting. This represents the maximum losses the bank’s counter-parties would incur if the bank defaults and there is no netting of contracts, and no bank collateral was held by the counter-parties.

•

Gross positive fair value: The sum total of the fair values of contracts where the bank is owed money by its counter-parties, without taking into account netting. This represents the maximum losses a bank could incur if all its counter-parties default and there is no netting of contracts, and the bank holds no counter-party collateral.

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•

High-risk mortgage securities: Securities where the price or expected average life is highly sensitive to interest rate changes, as determined by the FFIEC policy statement on high-risk mortgage securities.

•

Notional amount: The nominal or face amount that is used to calculate payments made on swaps and other risk management products. This amount generally does not change hands and is thus referred to as notional.

•

Over-the-counter (OTC) derivative contracts: Privately negotiated derivative contracts that are transacted off organized futures exchanges.

•

Structured notes: Non-mortgage-backed debt securities, whose cash flow characteristics depend on one or more indices and/or have embedded forwards or options.

•

Total risk-based capital: The sum of tier 1 plus tier 2 capital. Tier 1 capital consists of common shareholders equity, perpetual preferred shareholders equity with noncumulative dividends, retained earnings, and minority interests in the equity accounts of consolidated subsidiaries. Tier 2 capital consists of subordinated debt, intermediate-term preferred stock, cumulative and long-term preferred stock, and a portion of a bank’s allowance for loan and lease losses.

MUTUAL FUND

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To protect the interest of the investors, SEBI formulates policies and regulates the mutual funds. It notified regulations in 1993 (fully revised in 1996) and issues guidelines from time to time. MF either promoted by public or by private sector entities including one promoted by foreign entities is governed by these Regulations.

SEBI approved Asset Management Company (AMC) manages the funds by making investments in various types of securities. Custodian, registered with SEBI, holds the securities of various schemes of the fund in its custody.

According to SEBI Regulations, two thirds of the directors of Trustee Company or board of trustees must be independent. The Association of Mutual Funds in India (AMFI) reassures the investors in units of mutual funds that the mutual funds function within the strict regulatory framework. Its objective is to increase public awareness of the mutual fund industry. AMFI also is engaged in upgrading professional standards and in promoting best industry practices in diverse areas such as valuation, disclosure, transparency etc.

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Working of Mutual Fund

A mutual fund is a professionally managed firm of collective investments that collects money from many investors and puts it in stocks, bonds, short-term money market instruments, and/or other securities. The fund manager, also known as portfolio manager, invests and trades the fund's underlying securities, realizing

capital gains or losses and passing any proceeds to the individual investors. Currently, the worldwide value of all mutual funds totals more than $26 trillion. Since 1940, there have been three basic types of investment companies in the United States: open-end funds, also known in the US as mutual funds; unit investment trusts (UITs); and closed-end funds. Similar funds also operate in Canada. However, in the rest of the world, mutual fund is used as a generic term for various types of collective investment vehicles, such as unit trusts, open-ended

55

investment companies (OEICs), unitized insurance funds, and undertakings for collective investments in transferable securities (UCITS). Usage Since the Investment Company Act of 1940, a mutual fund is one of three basic types of investment companies available in the United States. Mutual funds can invest in many kinds of securities. The most common are cash instruments, stock, and bonds, but there are hundreds of sub-categories. Stock funds, for instance, can invest primarily in the shares of a particular industry, such as technology or utilities. These are known as sector funds. Bond funds can vary according to risk (e.g., high-yield junk bonds or investment-grade corporate bonds), type of issuers (e.g., government agencies, corporations, or municipalities), or maturity of the bonds (short- or long-term). Both stock and bond funds can invest in primarily U.S. securities (domestic funds), both U.S. and foreign securities (global funds), or primarily foreign securities (international funds). Most mutual funds' investment portfolios are continually adjusted under the supervision of a professional manager, who forecasts cash flows into and out of the fund by investors, as well as the future performance of investments appropriate for the fund and chooses those which he or she believes will most closely match the fund's stated investment objective. A mutual fund is administered under an advisory contract with a management company, which may hire or fire fund managers. Mutual funds are subject to a special set of regulatory, accounting, and tax rules. In the U.S., unlike most other types of business entities, they are not taxed on their

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income as long as they distribute 90% of it to their shareholders and the funds meet certain diversification requirements in the Internal Revenue Code. Also, the type of income they earn is often unchanged as it passes through to the shareholders. Mutual fund distributions of tax-free municipal bond income are tax-free to the shareholder. Taxable distributions can be either ordinary income or capital gains, depending on how the fund earned those distributions. Net losses are not distributed or passed through to fund investors Net asset value The net asset value, or NAV, is the current market value of a fund's holdings, less the fund's liabilities, usually expressed as a per-share amount. For most funds, the NAV is determined daily, after the close of trading on some specified financial exchange, but some funds update their NAV multiple times during the trading day. The public offering price, or POP, is the NAV plus a sales charge. Open-end funds sell shares at the POP and redeem shares at the NAV, and so a process order only after the NAV is determined. Closed-end funds (the shares of which are traded

by investors) may trade at a higher or lower price than their NAV; this is known as a premium or discount, respectively. If a fund is divided into multiple classes of shares, each class will typically have its own NAV, reflecting differences in fees and expenses paid by the different classes. Some mutual funds own securities which are not regularly traded on any formal exchange. These may be shares in very small or bankrupt companies; they may be

57

derivatives; or they may be private investments in unregistered financial instruments (such as stock in a non-public company). In the absence of a public market for these securities, it is the responsibility of the fund manager to form an estimate of their value when computing the NAV. How much of a fund's assets may be invested in such securities is stated in the fund's prospectus Types of mutual funds Open-End Fund

The term mutual fund is the common name for what is classified as an open-end investment company by the SEC. Being open-ended means that, at the end of every day, the fund issues new shares to investors and buys back shares from investors wishing to leave the fund. Mutual funds must be structured as corporations or trusts, such as business trusts, and any corporation or trust will be classified by the SEC as an investment company if it issues securities and primarily invests in non-government securities. An investment company will be classified by the SEC as an open-end investment

company if they do not issue undivided interests in specified securities (the defining characteristic of unit investment trusts or UITs) and if they issue redeemable securities. Registered investment companies that are not UITs or open-end investment companies are closed-end funds. Neither UITs nor closed-end funds are mutual funds (as that term is used in the US).

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Exchange-traded funds

A relatively recent innovation, the exchange-traded fund or ETF, is often structured as an open-end investment company. ETFs combine characteristics of both mutual funds and closed-end funds. ETFs are traded throughout the day on a stock exchange, just like closed-end funds, but at prices generally approximating the ETF's net asset value. Most ETFs are index funds and track stock market indexes. Shares are issued or redeemed by institutional investors in large blocks (typically of 50,000). Most investors purchase and sell shares through brokers in market transactions. Because the institutional investors normally purchase and redeem in in kind transactions, ETFs are more efficient than traditional mutual funds (which are continuously issuing and redeeming securities and, to effect such transactions, continually buying and selling securities and maintaining liquidity positions) and therefore tend to have lower expenses. Exchange-traded funds are also valuable for foreign investors who are often able to buy and sell securities traded on a stock market, but who, for regulatory reasons, are limited in their ability to participate in traditional U.S. mutual funds.

Equity funds

Equity funds, which consist mainly of stock investments, are the most common type of mutual fund. Equity funds hold 50 percent of all amounts invested in mutual funds in the United States. Often equity funds focus investments on particular strategies and certain types of issuers.

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Capitalization Fund managers and other investment professionals have varying definitions of midcap, and large-cap ranges. The following ranges are used by Russell Indexes: •

Russell Microcap Index - micro-cap ($54.8 - 539.5 million)

•

Russell 2000 Index - small-cap ($182.6 million - 1.8 billion)

•

Russell Midcap Index - mid-cap ($1.8 - 13.7 billion)

•

Russell 1000 Index - large-cap ($1.8 - 386.9 billion)

Growth vs. Value Another distinction is made between growth funds, which invest in stocks of companies that have the potential for large capital gains, and value funds, which concentrate on stocks that are undervalued. Value stocks have historically produced higher returns; however, financial theory states this is compensation for their greater risk. Growth funds tend not to pay regular dividends. Income funds tend to be more conservative investments, with a focus on stocks that pay dividends. A balanced fund may use a combination of strategies, typically including some level of

investment in bonds, to stay more conservative when it comes to risk, yet aim for some growth.

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Index funds versus active management An index fund maintains investments in companies that are part of major stock (or bond) indices, such as the S&P 500, while an actively managed fund attempts to outperform a relevant index through superior stock-picking techniques. The assets of an index fund are managed to closely approximate the performance of a particular published index. Since the composition of an index changes infrequently, an index fund manager makes fewer trades, on average, than does an active fund manager. For this reason, index funds generally have lower trading expenses than actively managed funds, and typically incur fewer short-term capital gains which must be passed on to shareholders. Additionally, index funds do not incur expenses to pay for selection of individual stocks (proprietary selection techniques, research, etc.) and deciding when to buy, hold or sell individual holdings. Instead, a fairly simple computer model can identify whatever changes are needed to bring the fund back into agreement with its target index. Certain empirical evidence seems to illustrate that mutual funds do not beat the market and actively managed mutual funds under-perform other broad-based portfolios with similar characteristics. One study found that nearly 1,500 U.S. mutual funds under-performed the market in approximately half of the years between 1962 and 1992. Moreover, funds that performed well in the past are not able to beat the

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market again in the future (shown by Jensen, 1968; Grimblatt and Sheridan Titman, 1989). Bond funds

Bond funds account for 18% of mutual fund assets. Types of bond funds include term funds, which have a fixed set of time (short-, medium-, or long-term) before they mature. Municipal bond funds generally have lower returns, but have tax advantages and lower risk. High-yield bond funds invest in corporate bonds, including high-yield or junk bonds. With the potential for high yield, these bonds also come with greater risk. Money market funds

Money market funds hold 26% of mutual fund assets in the United States. Money market funds entail the least risk, as well as lower rates of return. Unlike certificates of deposit (CDs), money market shares are liquid and redeemable at any time. Funds of funds

Funds of funds (FoF) are mutual funds which invest in other underlying mutual funds (i.e., they are funds comprised of other funds). The funds at the underlying level are typically funds which an investor can invest in individually. A fund of funds will typically charge a management fee which is smaller than that of a normal fund because it is considered a fee charged for asset allocation services. The fees charged at the underlying fund level do not pass through the statement of operations, but are usually disclosed in the fund's annual report, prospectus, or

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statement of additional information. The fund should be evaluated on the combination of the fund-level expenses and underlying fund expenses, as these both reduce the return to the investor. Most FoFs invest in affiliated funds (i.e., mutual funds managed by the same advisor), although some invest in funds managed by other (unaffiliated) advisors. The cost associated with investing in an unaffiliated underlying fund is most often higher than investing in an affiliated underlying because of the investment management research involved in investing in fund advised by a different advisor. Recently, FoFs have been classified into those that are actively managed (in which the investment advisor reallocates frequently among the underlying funds in order to adjust to changing market conditions) and those that are passively managed (the investment advisor allocates assets on the basis of on an allocation model which is rebalanced on a regular basis). The design of FoFs is structured in such a way as to provide a ready mix of mutual funds for investors who are unable to or unwilling to determine their own asset allocation model. Fund companies such as TIAA-CREF, American Century Investments, Vanguard, and Fidelity have also entered this market to provide investors with these options and take the "guess work" out of selecting funds. The allocation mixes usually vary by the time the investor would like to retire: 2020, 2030, 2050, etc. The more distant the target retirement date, the more aggressive the asset mix.

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Hedge funds

Hedge funds in the United States are pooled investment funds with loose SEC regulation and should not be confused with mutual funds. Some hedge fund managers are required to register with SEC as investment advisers under the Investment Advisers Act.The Act does not require an adviser to follow or avoid any particular investment strategies, nor does it require or prohibit specific investments. Hedge funds typically charge a management fee of 1% or more, plus a "performance fee" of 20% of the hedge fund's profits. There may be a "lock-up" period, during which an investor cannot cash in shares. A variation of the hedge strategy is the 130-30 fund for individual investors. Mutual funds vs. other investments Mutual funds offer several advantages over investing in individual stocks. For example, the transaction costs are divided among all the mutual fund shareholders, which allows for cost-effective diversification. Investors may also benefit by having a third party (professional fund managers) apply expertise and dedicate time to manage and research investment options, although there is dispute over whether professional fund managers can, on average, outperform simple index funds that mimic public indexes. Whether actively managed or passively indexed, mutual funds are not immune to risks. They share the same risks associated with the investments made. If the fund invests primarily in stocks, it is usually subject to the same ups and downs and risks as the stock market.

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WORKING CAPITAL MANAGEMENT Introduction Capital required for a business can be classified under two main categories i.e. 1. Fixed Capital 2. Working Capital Every business needs funds for two purposes-for its establishment and to carry out day to day operation. Long term funds are required to create production facilities through purchase of fixed assets such as plant and machinery, land building, furniture etc. investment in these assets represent that part of firm’s capital, which is blocked on a permanent or fixed basis is called fixed capital. Funds are also needed for short-term purpose of raw materials, payment of wages and other day to day expenses etc. these funds are known as working capital.

MEANING OF WORKING CAPITAL Working capital refers to that part of firm’s capital, which is required for financing short term or current assets such as cash, marketable securities, debtors and inventories.

DEFINITIONS OF WORKING CAPITAL In the words of Shubin, “working capital is the amount of funds necessary to cover the cost of operating the enterprise.”

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According to Genestenberg, “Circulating capital means current assets of a company that are changed in ordinary course of business from one form to

another, as from example, from cash to inventories, inventories to receivables, receivables into cash.”

NATURE OF WORKING CAPITAL Working capital management is concerned with the problems that arise in attempting to manage the current assets, the current liabilities and the inter-relationship that exists between them. The term current assets refers to these assets which in the ordinary course of business can be, or will be, Converted into Cash within one year without undergoing the diminution in value and without disrupting the operating of the firm, whereas the current liabilities are those liabilities which are intended, at there inception, to be paid in the ordinary course of business, within a year out of current assets or earning of the concern. Thus the goal of working capital management is to manage the firm’s assets and liabilities in such a way that a satisfactory level of working capital is maintained. The interaction between current assets and liabilities in such a way that optimum level of current assets, the trade off between profitability and risk which is associated with the level of current liabilities and assets, better financing mix strategies and other short term goals are attained. There are two concepts of working capital: Gross and Net 1. The term gross working capital, also referred to as working capital, means the total current assets. 2. The term net working capital can be defined in two ways. Difference between current assets and current liabilities.

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The task of the financial manager in managing working capital efficiency is to ensure efficiency liquidity in the operation of the enterprise. The basic three measures of a firm’s

overall liquidity are: Current ratios, Acid test ratio, Net working Capital. For the purpose of working capital management therefore, NWC can be said to measure the liquidity of the firm. In other words, the goal of working capital management is to manage the current assets and liabilities in such a way that an acceptable level of NWC is maintained.

IMPORTANCE OF ADEQUATE WORKING CAPITAL Working capital is very essential to maintain the smooth running of the business. It is lifeblood and nerve centre of a business. No business can run successfully with out adequate amounts of working capital. 1. Adequate of working capital helps in maintaining solvency of the business by providing uninterrupted flow of production. 2. it also enables a concern to avail each discount on the purchases and hence it reduces casts 3. Sufficient working capital enables a business to makes prompt payments and helps in creating and maintaining goodwill. 4. A concern having adequate working capital enables and high solvency can average loans from banks and others on easy and favorable terms. 5. Adequate working capital ensures regular supply of raw materials. 6. A concern can also pay quick and regular dividends to its investors, as there may not be much pressure to plough back profits because of adequacy of working capital. 7. Sufficiency of working capital creates an environment of security, confidence, and high morale and creates overall efficiency of a business.

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8. Adequacy of working capital also enables a firm to make regular payments of salaries, wages and other day-to-day commitments, which raises the morale of its employees, increase their efficiency reduces wastages and costs and enhances production and profit.

Working capital requirements “WORKING CAPITAL IS THE LIFE BLOOD AND CONTROLLING NERVE CENTRE OF a BUSINESS,” No business can be successfully run without an adequate amount of working capital. To avoid the shortage of working capital at once, an estimate of working capital requirements is not an easy task and a large number of factors have to be considered before starting this exercise. The following factors have to be considered for this:1. The length of sales cycle during which inventory is to be kept waiting for sales. 2. The average period of credit allowed to customers. 3. The amount of cash required paying day-to-day expenses. 4. The average amount of cash required making advance payments, if any. 5. The average credit period expected to be allowed by suppliers. 6. Time lag in payment in wages and in other expenses. From the total amount blocked in current assets estimated on the basis of first for items given above, the total current liability i.e. the last two items is deducted. In order to provide for contingencies, some extra amount calculated as a fixed percentage of WC may be added as safety margin.

NEED OF WORKING CAPITAL

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The need for the working capital (gross) or current assets cannot be overemphasized. Given the objective of financial decision making to maximize the shareholder’s wealth, it is necessary to generate profits. The extent to which profits can be earned will naturally depend, among other things, open the magnitude of sales. A successful sales program is

necessary for earnings profits by any business enterprise. There is a need of working capital in firm of current assets to deal with the problem arising out of the lack of immediate of cash against goods sold. Thus sufficient working capital is necessary to sustain sales activity. Technically, this is referred to as the operating or cash cycle.

CONCEPT OF WORKING CAPITAL There are two concepts of working capital: 1. Gross Working Capital: In the broad sense, the term working capital refers to the gross working capital and represents the amount of funds invested in current assets. Thus, gross working capital is the capital invested in the total current assets of the enterprise. Current assets are those assets, which in the ordinary course of business can be converted in to cash with in a short period of normally one accounting year. Constitutes of current assets are:

1. Cash in Hand 2. Cash at Bank 3. Bills Receivables 4. Sundry Debtors

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5. Short term loans & advances 6. Inventories (Stocks) 7. Raw Materials

8. Work in Progress 9. Stores & Spares 10. Finished Goods 11. Temporary investments of surplus funds 12. Prepaid Exp. 13. Accrued Income. 2. Net working Capital: In a narrow sense, the term working capital refers to the net working capital. Net working capital is the excess of current assets over current liabilities. So, Net working capital = Current assets – Current liabilities Net working capital may be positive or negative. When the current assets exceed the current liabilities the working capital is positive and the negative working capital results when the current liabilities are more than current assets. Current liabilities are those liabilities, which are intended to be paid in the ordinary course of business with in a short period of normally one accounting year out of the current assets or the incomes of the business.

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Constitutes of current liabilities are:

1. Bills Payable 2. Sundry Creditors or accounts payable 3. Accrued or outstanding exp.

4. Short term loans, advances and deposits 5. Dividend payable 6. Bank overdraft 7. Provision for taxation Classification of working capital:KINDS OF WORKING CAPITAL

ON THE BASIS OF CONCEPT

GROSS WORKING CAPITAL

NET WORKING CAPITAL

ON THE BASIS OF TIME

FIXED WORKING CAPITAL

VARIABLE WORKING CAPITAL

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SEASONAL W.C

s PECIAL W.C

.

Concept: - On the basis of concept Working Capital may be divided into two parts i.e. A) Gross Working Capital: - G.W.C. is the capital invested in total current assets of the enterprise. B) Net Working capital:- N.W.C. is the excess of current assets over current liabilities so, Net Working capital = Current Assets - Current Liabilities

1. On the Basis Of Time:- it may be classified as: A) Fixed Working Capital: - it is the minimum amount, which is required to ensure effective utilization of fixed facilities and for maintaining the circulation of current assets. There is always a minimum level of current assets, which is continuously required by the enterprise to carryout its normal business operations. For exampleEvery Firm has to maintain a minimum level of raw material, work-in-process, finished goods and cash balance. This minimum level of current assets is called fixed working capital as this part of capital is permanently blocked in current assets. As a

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business grows the requirements of permanent working capital also increase due to the increase in current assets. It can be further divided into two parts: Regular Working Capital: it is that part of the working capital which is required to ensure the circulation of current assets from cash to inventories, from inventories to receivables and from receivable to Cash and so on.

Reserve Working Capital: it is the excess amount over the requirement for regular working capital, which may be provided for contingencies that may arise at unstated periods such as strikes, rise in prices, depression. B) Temporary or Variable Working Capital: it is the amount of working capital which is required to meet the seasonal demands and some special exigencies. Variable Working capital can be further divide into two: Seasonal Working Capital: It is that part of working capital which is required to meet the seasonal needs of the enterprise. Special Working Capital: It is that part of the working capital which is required to meet special exigencies such as launching of extensive marketing campaigns for conducting research.

Importance or advantages of adequate working capital 1. Solvency of Business 2. Goodwill 3. Easy Loans

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4. Cash Discounts 5. Regular Supply of Raw Materials 6. Regular

Payment

Of

Salaries

and

Wages

Commitments 7.

Exploitation of favorable market condition

8. Ability to face crisis 9. Quick and regular return on investment 10. High Morale Financing of temporary variable or short term working capital

1. Indigenous 2. Trade Credit 3. Installment Credit 4. Advances 5. Factoring or Account Receivable Credit 6. Accrued Expenses 7. Differed Incomes 8. Commercial paper 9. Working capital Financed by Commercial banks a) loans b) Cash Credits c) Overdrafts d) Purchasing and Discounting of Bills

How to Finance Fixed Assets or Working Capital.? There are Three Approaches for this:

and

Other

Day-to-Day

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1. Matching Approach: The Firm can adopt a financial plan, which matches the expected life of assets

with

the expected life of the sources of funds raised to finance assets. Thus a ten year loan may be raised to finance a plant with an expected life of ten years. The justification for the exact matching is that, since the purpose of financing is to pay for assets, the source of financing and the assets should be relinquished simultaneously.

When the firm follows matching approach (also known as Hedging Approach), long term Financing will be needed to finance fixed assets and permanent current assets and short term financing to finance temporary current assets. It is shown in the diagram:2) Conservative Approach:A Firm in practice may adopt a conservative approach in financing its currents and fixed assets. The financing policy of the firm is said to be conservative, when it depends more on long term funds for financing needs. Under this policy, the firm finances its permanent assets and also a part of temporary current assets with long term financing. In the periods when the firm has no need for temporary current Assets, the idle long term funds can be invested in the tradable securities to conserve liquidity. This is shown in the following figure:3) Aggressive Approach:-

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Under this approach the firm finances a part of its permanent current assets with short term financing. It means under this approach rely more on short term financing. Short Term Financing may be preferred over Long Term Financing for two reasons:1. The Cost Advantage 2. Flexibility But Short term financing is more risky than long term financing. Thus there is conflict between long term and short term financing. Short Term Financing is less expensive then Long Term Financing, but at the same time Short term Financing involves greater risk then long Term Financing. The choice between Long Term and Short Term Financing involves a tradeoff between risk and return.

JINDAL STAINLESS LTD. O.P.Jindal Marg,Hisar-125005(Haryana) Financial Result For The Year Ended 31st March 2007

Income from Operations : Gross Sales - Domestic - Export

2962.35 2405.56

Total Sales

5367.91

Less: Excise Duty on Sales

389.93

Net Sales

4977.98

Other Income

18.47

Total Income

4996.45

Total Expenditure (a) (Increase)/Decrease in Stock-in-Trade

(207.72)

(b) Consumption of Raw Materials

3110.30

76 (c) Goods purchased for sale

130.74

(d) Stores & Spares

225.92

(e) Power & Fuel

453.69

(f) Staff Cost

90.06

(g) Other Expenditure

327.85

Operating Profit before Interest, Depreciation & Tax

865.61

Less: Interest Expense(Net)

81.66

Cash profit

783.95

Depreciation /Amortisation

230.26

Loss on transfer of Divisions

------

Profit Before Tax

553.69

Provision for Current Tax

89.81

Fringe Benefit Tax

1.06

Provision for Deferred Tax

119.58

Previous Year Taxation Adjustment

5.31

Profit After Tax

337.11

Minority Interest

0.82

Net Profit

337.11

Paid-up Equity Share Capital - Face value Rs.2/- each

27.64

Reserves excluding revaluation reserve

1355.17

Earning Per Share (EPS) - Basic (Rs.)

25.56

- Diluted (Rs.)

22.30

Aggregate of Non-promoter Shareholding - Number of Shares

61706212

- Percentage of Shareholding

44.64

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JINDAL STAINLESS LTD. O.P.Jindal Marg,Hisar-125005(Haryana) Financial Result For The Year Ended 31st March 2008 Income from Operations : Gross Sales - Domestic - Export

400890 186675

Total Sales

587565

Less: Excise Duty on Sales

53985

Net Sales

533580

Other Income

2945

Total Income

536525

Total Expenditure (a) (Increase)/Decrease in Stock-in-Trade

(78137)

(b) Consumption of Raw Materials

389403

78 (c) Goods purchased for sale

2041

(d) Stores & Spares

23526

(e) Power & Fuel

57958

(f) Staff Cost

13021

(g) Depreciation/Amortisation

26750

(g) Other Expenditure

32133 475695

Interest Expense(Net)

17371

Profit from Ordinary Activities before Tax

43459

Tax Expense Provision for Taxation –Current Tax

4747

Fringe Benefit Tax

132

Deferred Tax

9426

MAT Credit Entitiement

(1089)

Previouw year Taxation Adjustments ---Net Profit from Ordinary Activites after tax

30243

Extraordinary Items (net of tax expense)

3613

Profit After Tax

26631

Minority Interest

(24)

Net Profit

26654

Paid-up Equity Share Capital - Face value Rs.2/- each

3092

Reserves excluding revaluation reserve and balancesheet of previous accouting year

176130

Earning Per Share (EPS) before Extraordinary item - Basic (Rs.)

20.96

- Diluted (Rs.)

18.46

79 Earning Per Share (EPS) after Extraordinary item - Basic (Rs.)

18.82

- Diluted (Rs.)

16.57

EPS for the quarter (not annualized) Public Shareholding - Number of Shares

70063663

- Percentage of Shareholding

45.32

SUGGESTION a. Company Should Advertise the Product. b. Company Should Arrange Warehousing Facility In Delhi NCR Regions.

c. Working Capital Management Should properly Utilize i. Control On the Wastage ii. Use Japanese Total Quality Management Techniques

d. Search More Supplier (Who Provide Same Quality of Material in Lesser Cost).

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BIBLIOGRAPHY

1. FINANCIAL MANAGEMENT (I M PANDEY)

2. CORPORATE FINANCE (DAMODARAN ASWATH)

3.PORTFOLIO MANAGEMENT(BARUA K SAMIR, VERMA J R, RAGHUNATHAN V)

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4 JINDAL STAINLESS STEEL LTD. ANNUAL REPORT.

5. WIKIPEDIA