Padmini 10XQCMA067 AdityaBirlaFinance Internship Report

AN ORGANIZATION STUDY

AT

Aditya Birla Finance

Bangalore

Submitted in partial fulfillment of the requirement of the

Bangalore University for the forward of degree in

Master of Business Administration

Submitted by

PADMINI M S

REG NO: 10XQCMA067

Under the Guidance of

DR. NAGESH MALLAVALLI

M. P Birla Institute of Management

Associates of Bharatiya Vidya Bhavan

No.43, Race Course Road

Bangalore 1

DECLARATION

I, Padmini M S (Reg. No. 10XQCMA067) hereby declare that the internship report, an

Organizational study conducted at Aditya Birla Finance Corporate Office Bangalore submitted in

partial fulfillment of the requirements of the Bangalore University for the award of degree in Master

of Business Administration is a bona fide work carried out by me under the guidance of Dr. Nagesh

Mallavalli, MPBIM, Bangalore.

This report has not been submitted earlier to any university or institution for the award of any

degree/diploma.

The content of this report are based on the data collected by me at Aditya Birla Finance,

Bangalore under the guidance of Arun Bhat Relationship Manager.

Place:

Date:

Padmini.M.S

Reg. No. 10XQCMA067

ACKNOWLEDGEMENT

This project is a product of the invaluable insights, facts and experience I had with the

industry people. The learning experience was more than what was visualized as.

I would like to express my sincere gratitude to Mr. Arun Bhat Relationship Manager of

Aditya Birla Finance for giving me the opportunity to be a part of the Capital Market

department.

I would like to express my sincere thanks to Mr. Rakesh Singh my project guide in Aditya

Birla Finance for extending his Support in making my internship a knowledgeable

experience.

I would also like to thank all those who have directly and indirectly helped me in completion

of the project.

I would also like to thank my project guide Dr. Nagesh Mallavalli, who guided me through

the entire project.

I am indebted to my parents. They have been my guiding light in my passage of this mortal

world.

Above all I would like to thank all my friends and also my college who have helped me in

completing this project.

Padmini M S

CONTENTS

Sl no Index Pg no

Executive Summary 1

1 Introduction 2

1.1 Background of the study 4

1.2 Industry Profile 5

1.3 Company Profile 8

1.4 Corporate Social Responsibility 10

1.5 Vision, Mission and Value 14

2 Organizational Structure 15

2.1 Corporate Organizational Structure 16

2.2 Departmental Organizational Structure 16

2.3 Authority and Responsibility relationship 17

3 Functional Areas 22

3.1 HR Department 23

3.2 Capital Market Department 23

3.3 Corporate Finance Department 23

3.4 Risk Management Group 24

3.5 Mid Office Group 24

3.6 Finance 24

3.7 Information Technology 24

4 SWOT Analysis 38

4.1 Strengths and Weakness 39

4.2 Opportunities and Threats 41

5 Observation, Suggestions and Conclusions 42

5.1 Suggestions 42

Annexure 58

Bibliography 65

Padmini.M.S. ----M.P. Birla Institute of Management----Organizational Study at Aditya Birla 1

Executive Summary

Aditya Birla Finance Ltd. (ABFL), formerly known as Birla Global Finance, is one of

India's leading non-banking financial companies. The company is also such an entity

consisting of people with rich and varied skills, experience and areas of expertise

working together harmoniously to deliver quality outputs.

The organization study helps to understand and make factual observation about the

functioning of an organization. The organization study helps to have the firsthand feel

of the corporate environment.

Organization study helps to know about the following:

Learn about the working environment

To understand the organization hierarchy

To know the functions and activities of various employees

To get an insight about the vision, mission values, etc. of the organization.


Chapter 1

INTRODUCTION


1. INTRODUCTION

The Aditya Birla Financial Services Group (ABFSG) has built a significant presence

across its verticals, viz. life insurance, asset management, NBFC, private equity,

broking, wealth management & distribution and general insurance advisory services

The seven companies representing Aditya Birla Financial Services Group are Birla

Sun Life Insurance Company Ltd., Birla Sun Life Asset Management Company Ltd.,

Aditya Birla Finance Ltd., Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla

Money Ltd., Aditya Birla Money Mart Ltd, and Aditya Birla Insurance Brokers Ltd.

ABFSG is committed to being a leader and role model in a broad based and integrated

financial services business. Its 7 lines of businesses, with about 5.5 million customers

manages assets worth USD 18 billion approximately and prides itself for having a

talent pool of about 15,000 committed employees. ABFSG has its wings spread across

more than 500 cities in India through over 1600 points of presence and about 200,000

channel partners. This allows ABFSG to offer its customers virtually anything under

financial services except a savings or current account. With revenue of over USD 1.25

billion (in 2009-2010) ABFSG is a significant non bank player.

ABFSG is a part of Aditya Birla Nuvo Ltd (ABNL), a USD 3.5 billion conglomerate

having leadership position across its manufacturing as well as services sector

businesses. ABNL is a part of the Aditya Birla Group, a USD 30 billion Indian

business house operating in 27 countries across the globe.

Aditya Birla Finance Ltd. (ABFL), formerly known as Birla Global Finance, is one of

India's leading non-banking financial companies (NBFCs). Incorporated in 1991, the

company has been rated as A1+ by ICRA, for its short-term borrowings, which

indicates highest-credit-quality

ABFL offers specialized solutions in areas of Capital Markets, Corporate Finance and

Project Finance. It is one of the largest players in security based lending and the

pioneer of IPO Financing in India.


1.1 BACKGROUND OF THE STUDY

This report is the result of 5 weeks of internship program at Aditya Birla Finance.

During this internship it was required to study the organization, working of the

various departments, creation of broker and client database and fixing up client

meetings.

The motive behind considering Aditya Birla Finance as the organization for study was

to have a thorough understanding of the Finance sector.

The finance sector of this company is into Secured loans and Unsecured Loans,

Aditya Birla has built a strong brand recognition and have established themselves as a

strong brand in this sector.

OBJECTIVE OF THE STUDY

To analyse how the various functional departments work.

Have a balance between the theoretical and practical world of the organisation.

Perform SWOT analysis and understand the core competencies of the

organisation.

To understand Capital Market and Corporate finance, procedures


1.2 INDUSTRY PROFILE

Finance Companies of India

The top finance companies are playing a key role in the huge growth of the

economy of India. The sector of finance is passing through a rapid phase of

alteration. The sustenance of the growth of economy is the primary factor for the

development of the India's financial sector.

List of Top Finance Companies of India

SBI Capital Markets Limited

It is one among the oldest organizations in the capital markets sector of India. It was

established in the year 1986 as an ancillary of SBI. It ranks second in Asia's Project

Advisory services. The company is a trailblazer in privatization and securitization.

The company’s subsidiaries are SBICAPs Ventures Ltd., SBICAP Trustee Co.Ltd.

And many others.

Bajaj Capital Limited

The company offers best investment advisory and financial planning. It provides

institutional investors, NRIs, corporate houses, individual investors , high network

clients with investment advisory and financial planning services. It is also the

largest provider of finance products offered by public and private organizations,

several government bodies, investment products like bonds, mutual funds, general

insurance etc.


DSP Meriyll Lynch Limited

It is the key player of equity and debt securities in India. It renders financial advises

to many corporations and institutions. It also offers a wide array of wealth

management and investor services along with customized advices related to

financial matters. This company is the pioneer to form research facility to research

in financial products and services, improvements and innovations. The company

also has its hand in the Government securities and holds an eminent position in the

market of equity and debt in India.

Birla Global Finance Limited

It is a subsidiary of Aditya Birla Nuvo Ltd. Their motto is to be the first choice of

the customers as a major provider of financial services through technology and

value creation. The primary activities of the company are Corporate Finance and

Capital Market. Aditya Birla Nuvo has also formed alliance with Sun Life Financial

of Canada which has given rise to the following financial services companies like

Birla Sun Life Insurance Co Ltd., Birla Sun Life Distribution Co. and many others.

Housing Development Finance Corporation

This company offers the best financial solutions and guidance for home loans,

property related services, loans for NRIs etc. in India. The one stop destination for

comprehensive information on personal finance is HDFC. The company has a wide

network in India and abroad. HDFC overseas offices are in Singapore, Kuwait,

Qatar, Saudi Arabia and many others.

PNB Housing Finance Limited

This is completely owned by PNB and offers premium solutions to relieve the

borrowers. This subsidiary of the PNB has recorded a growth a 73% and is a

leading finance company of India. The Home Loan Life Insurance Plan of this

company in association with TATA AIG offers the lowest premium in compare to

others. The chart for loans of 5 lacks and tenure of 15 years is just premium. It

renders other services like Deposit schemes, Loan schemes and many others.


ICICI Group

ICICI offers a wide spectrum of financial products and services in India. The

company provides solutions for all needs like Instant Banking, Online Trading,

Insta Insure, ICICI Bank immobile etc. The company keeps up the financial profile

healthy and diversifies earnings across geographies and businesses. The company's

philosophy is to deliver high class financial services for all the cross sections of the

society. Their products are Mutual Fund, Private Equity Practice, Securities, Life

Insurance etc.

LIC Finance Limited

It is the leading player in the finance sector of India being the biggest Housing

Finance Company of India. The function of the company is to provide finance to

individuals for repair or construction or renovation of the old or new apartment or

house. It also offers finance on the existing property for personal or business

matters. The company has 14 back offices, 6 regional offices and 126 units of

marketing in India.

L & T Finance Limited

This company was established in the year 1994 by the Larsen and Turbo group and

now it is a significant name in the financial sector. The company offers schemes

like funds for automobiles, funds for Agricultural Instruments, secured loans, funds

for automobiles and many others. It offers loans for a long tenure and the loans are

given in exchange of valuable items.

Karvy Group

The company has about 575 offices in 375 destinations in India. It offers services

like the Mutual Funds Services, Depository Services, Debt Market Services,

Investment Banking and many others.


1.3 COMPANY PROFILE

A US$ 35 billion corporation, the Aditya Birla Group is in the League of Fortune 500.

It is anchored by an extraordinary force of 133,000 employees, belonging to 42

different nationalities. In the year 2009, the Group was ranked among the top six great

places for leaders in the Asia-Pacific region, in a study conducted by Hewitt

Associates, RBL Group and Fortune magazine. In India, the Group has been adjudged

the best employer in India and among the top 20 in Asia by the Hewitt-Economic

Times and Wall Street Journal Study 2007.

Over 60 per cent of the Group's revenues flow from its overseas operations. The

Group operates in 33 countries – Australia, Austria, Bahrain, Bangladesh, Brazil,

Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy, Japan,

Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines, Poland, Singapore,

Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, UAE, UK, USA and

Vietnam.

Globally, the Aditya Birla Group is:

:: A metals powerhouse, among the world's most cost-efficient aluminium and

copper producers. Hindalco-Novelis is the largest aluminium rolling company. It

is one of the biggest producer of primary aluminium in Asia, with the largest

single location copper smelter

:: The largest producer of viscose staple fibre

:: The fourth-largest producer of insulators

:: The No.1 producer of carbon black

:: The fifth-largest producer of acrylic fiber

:: The seventh-largest cement producer

:: Among the best energy-efficient fertilizer plants

http://www.hindalco.com/

http://www.novelis.com/

http://www.grasim.com/

http://www.adityabirlainsulators.com/

http://www.birlacarbon.com/

http://www.grasim.com/

http://www.adityabirlanuvo.com/indogulf/index.aspx


In India:

:: Largest cement player in India

:: The top fashion (branded apparel) and lifestyle player

:: The second-largest producer of viscose filament yarn

:: The largest producer in the chlor-alkali sector

:: Among the top three mobile telecom players

:: Among top 10 BPO companies

:: A leading player in life insurance and asset management

:: Among the top two supermarket chains in India

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success

does not come in the way of the need to keep learning afresh, to keep experimenting.

Beyond business

Transcending business for over 50 years now, the Group has been and continues to be

involved in meaningful welfare-driven initiatives that distinctly impact the quality of

life of the weaker sections of society in India, South-East Asia and Egypt.

In India, the Group's social projects span 3,000 villages. It reaches out to seven

million people annually through the Aditya Birla Centre for Community Initiatives

and Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is healthcare,

education, sustainable livelihood, infrastructure and espousing social causes.

The Group runs 42 schools, which provide quality education to over 45,000 children

in India's interiors. Of these, over 18,000 children receive free education. An

additional 8,500 students receive merit scholarships. Likewise at its 18 hospitals in

India, 500,000 patients are given extremely subsidized medical care. To embed

corporate social responsibility as a way of life in organizations, the Group has set up

the FICCI – Aditya Birla CSR Centre for Excellence, in Delhi.

The Group transcends the conventional barriers of business and reaches out to the

marginalized because of its conviction of bringing in a more equitable society.

http://www.adityabirlanuvo.com/maduragarments/index.aspx

http://www.adityabirlanuvo.com/indianrayon/index.aspx

http://www.ideacellular.com/

http://www.minacs.adityabirla.com/

http://www.birlasunlife.com/BirlaSunLife/Insurance/BSLI_MP/index5.aspx

http://www.adityabirla.com/social_projects/overview.htm




1.4 Corporate Social Responsibility

Corporate social responsibility is an integral part of the Aditya Birla Group's value

systems. Today, the footprint of the Group's social work spans 3,000 villages in India,

reaching out to seven million people annually.

2011

:: Mrs. Rajashree Birla was presented the All India Management Association

(AIMA) Managing India Award 2011 for 'Corporate Citizen of the Year'. The

award was presented by Mr. P. Chidambaram, India’s Union Minister for Home

Affairs.

:: The Government of India has bestowed the Padma Bhushan Award on Mrs.

Rajashree Birla for her exemplary contribution in the area of ‘Social Work’.The

Padma Bhushan is among the highest civilian awards in India and was conferred

on Mrs Birla at a special ceremony on 01 April 2011.

2010

:: Indian Rayon, Veraval (a division of Aditya Birla Nuvo) is awarded The Rajiv

Gandhi Environment Award for Clean Technologies by The Ministry of

Environment and Forests, Government of India.

:: Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives

and Rural Development receives 'Hello Hall of Fame' award for 'Exemplary

Philanthropist of the year' from Worldwide Media Goup's 'Hello' celebrity journal.

:: Ultratech's 'Concern for Health' project awarded the Asian Corporate Social

Responsibility Award by the Asian Institute of Management Centre for Corporate

Social Responsibility.

:: Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives

and Rural Development, awarded the Global Golden Peacock Life Time

Achievement Award for Community Development for the year 2010 for

"Outstanding Contribution Towards Community Development and Social

Welfare".


:: Hindalco and Birla White declared winners in the Golden Peacock Awards for

Corporate Social Responsibility 2010 by an eminent international jury, headed by

Justice P.M. Bhagwati, the erstwhile Chief Justice of India.

:: The Aditya Birla Centre for Community Initiatives and Rural Development teams

up with Columbia University's research centre, the Columbia Global Centers'

Earth Institute in Mumbai, to become its principal partner. The Earth Institute's

goal is to help achieve sustainable development primarily by expanding people's

understanding of the earth as one integrated system.

:: Hindalco wins Amity International Business School’s, ‘Amity Corporate

Excellence Award for Corporate Social Responsibility’

2009

:: Grasim's pulp and fibre division wins the highly prestigious Asian CSR Award.

The Asian CSR Awards, Asia's Premier CSR Awards program, is a project of the

Asian Institute of Management, Manila.

:: Rajiv Gandhi Award for Eminence in Social Field, 2009 conferred on Mrs.

Rajashree Birla by Mr. Jyotiraditya Scindia (Union Minister of State, Commerce

& Industry) on 19 August 2009. The award recognises Mrs. Birla's pathbreaking

work among the poor, more so in India's villages, carried out through the Aditya

Birla Centre for Community Initiatives and Rural Development.

:: Vikram Cement and Aditya Cement wins the Federation of Indian Mineral and

Industries' "Social Awareness Award for the year 2008-09".

:: Reader's Digest Pegasus Star Award conferred on Hindalco in recognition of work

that truly exemplifies the highest values of society and corporate leadership for

social responsibility and sustainable development initiatives. Mrs. Rajashree Birla,

who spearheads all the Group's social projects, received this much coveted award

on behalf of Hindalco from Mr. Arun Jaitley, MP, Rajya Sabha, on 21 January

2009 in Delhi.


2008

:: The President of India, Mrs. Pratibha Patil confers the much coveted Rotary

International Polio Eradication Champion Award on Mrs. Rajashree Birla in an

elegant function at the Rashtrapati Bhavan (Delhi), attended by the Chairman,

select Rotarians and WHO officials.

2007

:: The Aditya Birla Group honoured with the India Today Group's Readers Digest

Gold award in recognition of the work that truly exemplifies the highest values of

society as well as those of Reader's Digest. The award was received by Mrs.

Rajashree Birla, Chairperson, Aditya Birla Center for Community Initiatives and

Rural Development, at the Pegasus Corporate Social Responsibility Awards 2007

function.

:: Hindalco awarded the CII - Sorabji Green Business Centre "National Award for

Excellence in Water Management 2007".

2006

:: Hindalco awarded the Greentech Safety Silver Award for its outstanding safety

performance during 2005-06.

2004

:: Grasim, Nagda, receives the FICCI Annual Award 2003-2004 in recognition of

corporate initiaitve in rural development.

:: Aditya Birla Chemicals (India) Limited, Rehla, Jharkhand, receives the

FICCI Annual Award 2003-2004 in recognition of corporate initiative in family

welfare.

:: Indal wins FICCI Award 2002-2003 for 'Corporate Initiative in Rural

Development'.


2003

:: The Group is ranked 16th in India's first ever survey of 'Great places to work in',

published in Business World magazine. The Group's joint venture concern, Birla

Sun Life Insurance, is ranked 9th

in the same study.

:: The Group is ranked 20th in a study on the 'Best Employers in India', conducted

by Hewitt Associates and Business Today.

:: Hindalco receives the Asian CSR Award for its "Rural Poverty Alleviation

Program". The Asian CSR Awards are Asia's premier awards program on

corporate social responsibility.

2002

:: The Group receives The Economic Times' "Corporate Citizen" of the year award.

2000

:: The Group announces its intention to launch a 450 MW 'Green Power Project' in

Karnataka .

http://www.adityabirla.com/social_projects/awards_recognition.htm#top

http://www.adityabirla.com/social_projects/awards_recognition.htm#top


1.5 VISION, MISSION AND VALUE

ADITYA BIRLA

VISION

To be a premium global conglomerate

with a clear focus on each business.

MISSION

To deliver superior value to our customers,

shareholders, employees and

society at large.

VALUE

Integrity

Commitment

Passion

Seamlessness

Speed


Chapter 2

ORGANIZATIONAL STRUCTURE


2.1 CORPORATE ORGANIZATION STRUCTURE

2.2 DEPARTMENTAL ORGANIZATIONAL STRUCTURE


2.3 AUTHORITY AND RESPONSIBILITY RELATIONSHIP

ADITYA BIRLA GROUP

ABN

SECTORS: textiles, chemicals, agribusiness, carbon black, insulators,

telecommunications, financial services, IT-ITeS.

Products: Branded garments, Viscose filament yarn, carbon

black, fertilizers, insulators, textiles, life insurance, asset management,

non-banking financial services, distribution and wealth management,

broking, general insurance advisory and broking, private equity

investment, advisory and management services, cellular services, IT-

ITeS, branded apparel retailing.

Management

Name Designation

B L Shah Director

Devendra Bhandari Company Secretary & Compliance Officer

Sushil Agarwal Chief Financial Officer & Whole Timed Director

Dr. Rakesh Jain Managing Director


GIL

Sectors: Cement (grey and white), textiles, chemicals

Products:

Management

Cement, viscose staple fiber, rayon grade pulp, ready mix concrete,

chemicals, textiles

Name Designation

Kumar Mangalam Birla Chairman

Ashok Malu Company Secretary And Compliance Officer

Adesh Gupta Whole Director & Chief Financial Officer & Manager

HIL

Sectors: Non-ferrous metals, chemicals, mining, agribusiness

Products: Aluminum, copper, aluminum rolled products (sheet and foil), cans,

primary metal, recycling, caustic soda, aerospace alloys, alumina,

power generation and aluminum smelting

Management

Name Designation

Dr. Kumar Mangalam Birla Chairman

D Bhattacharya Managing Director

Jagdish Khattar Independent Director

Ram Charan Additional (Independent) Director

Anil Malik Asst. Vice-President & Company Secretary


ULTRA TECH CEMENT LTD

Sectors: Cement (grey and white)

Products:

Management

Cement, ready-mix concrete

Name Designation

Mr. Kumar Mangalam Birla Chairman

O P Puranmalka Whole Time Director

Sanjeeb Chatterjee Company Secretary

ADITYA BIRLA MINACS WORLWIDE LTD

Sectors: IT-ITeS

Products: IT-ITeS

COMES UNDER ABN

ADITYA BIRLA CHEMICALS (INDIA)LTD

Sectors: Chemicals

Products: Caustic soda

Management

Name Designation

Shyam Sundar Gupta Managing Director

Akash Mishra Company Secretary & Compliance Officer


ABML

Sectors: Financial services

Products: Broking

Management

Name Designation

Mr. S Balaji Company Secretary & Compliance Officer

Sudhakar Ramasubramanian Managaing Director

ADITYA ISPAT LTD

SECTOR & PRODUCT: Iron & Steel/Interm.Products

Management

Name Designation

S B Chachan Chairman

Mr. Alphonsa Domingo Compliance Officer

ADITYA FORGE LTD

SECTOR: Other Industrial Products

Management

Name Designation

Nitin Parekh Chairman & Managing Director

Yogesh S Pujara Compliance Officer


IDEA CELLULAR LTD.

SECTOR: Telecom Services

Management

Name Designation

Himanshu Kapania Managing Director

Pankaj Kapdeo Company Secretary & Compliance Officer


Chapter 3

Functional Areas


3. FUNCTIONAL AREAS

3.1 Human Resource Department

The Human Resources department manages the entire gamut of employee

management activities. This includes recruitments, training & development, change

management, compensation and benefits, employee engagement, performance

management & HR administration. The Admin department ensures the smooth

functioning of the business by maintaining the infrastructural services availability at

all times.

3.2 Capital Market Group

The Capital markets group is engaged in funding short term & medium term liquidity

requirement of its corporate and individual customers against collaterals of shares,

mutual fund units & other marketable securities. The product portfolio encompasses

the entire security based lending space including Loan against shares/bonds/securities

for HNIs & corporate, Promoter funding, Broker funding, IPO funding, ESOP

funding, syndication & cross selling of group financial services products.

3.3 Corporate Finance Group

The Corporate Finance Group (CFG) is engaged in lending business (assets) with its

target marketing being Large / mid corporate and SME’s. The division has suite of

products for meeting its customer’s short term and medium term needs. The product

portfolio includes Bill Discounting / Factoring, Channel Financing, Vendor

Financing, Bill discounting backed by letter of credit (LC)/BG, Term loans & LAP/

LRD .The division also works with the supply side and buy side customers of various

companies in the Aditya Birla ecosystem.


3.4 Risk Management Group (RMG)

The Risk Management group is engaged in formulating credit risk policies for all

ABFL businesses, carries out risk assessment of credit proposals, obtains credit

decisions from Credit Committees, monitors credit exposure and carries out recovery

of over dues.

RMG formulates risk policies in association with Central Risk, ABFSG for overall

risk management in ABFL.

3.5 Middle office group

The Mid Office Group (MOG) function is responsible for managing the post sanction

processes of all business transactions. The key functions are ensuring proper loan

documentation in compliance of approvals and credit policies, safe custody of

documents, activation of loan accounts, collateral management, and transaction

processing and account maintenance. Accuracy and timeliness are of paramount

importance for managing risks pertaining to the function and provide support to Sales

for enhanced client servicing.

3.6 Finance

Finance department deals with various functions such as treasury (including

availability of funds and efficient management of surplus funds), optimizing cost of

funds, accounts & taxation, managing regulatory compliance as per RBI guidelines,

upholding all legal checks and balances to safeguards interests of the company.

3.7 Information Technology

IT implements processes to ensure maintenance and high availability of software

business solutions & technology infrastructure within the organization, and also

drives effective and timely implementation of business solution system projects

within the organization, in line with the IT roadmap.


FINANCE DEPARTMWENT

Capital Market Solutions

The Capital Market Group offers its customers the best opportunity to meet their

liquidity requirements. It provides finance against the security of various investments

in the capital market. Some of the product offerings include:

Promoter Funding

Loan against security of equity shares/ mutual fund units and other marketable

securities

Line of Credit against securities

IPO Funding

ESOP Funding

LASi (Margin Financing)

Promoter Funding

This facility is offered to promoters against their share holding in their respective

company. It enables you, as a promoter of the company, to increase your share

holding or expand and diversify into other areas of business. With specialized value-

ads such as speed of transaction led by disciplined TAT-driven processes and strong

Chinese walls, you can be assured of quality service and utmost confidentiality.

Tenure Up to 365 days

Security

Shares held by promoter & holding

companies in promoter Group

Loan amount Minimum Rs. 1 Crore

Margin 30% & above

Interest rate Competitive

Documentation Standard Loan Documents with PDC l

Custodian charges At Actuals


Loan Against Shares (LAS)

Your investments in shares and other marketable securities are capable of offering

you much more than just returns. Loan Against Shares enables you to take a loan

against equity shares and other marketable securities such as life insurance policies,

mutual fund units etc. Simply pledge your shares to acquire a loan that will help you

take a financial leap.

So go ahead and extract the maximum out of your existing investments and use them

to fulfill your desired objectives in life.

Tenure

Up to 365 days with an option to

prepay with mutually agreed

repayment notice

Security As per list of approved shares

Loan amount Minimum Rs. 50 Lakhs

Margin 30% & above


Documentation Standard Loan Documents with

PDC


Benefits of Loan Against Shares

Get instant liquidity

Avail a minimum of Rs. 50 Lakhs

Repayment tenure ranges from 3 months – 12 months

Use this loan to fulfill business or any other financial objectives

You don't have to sell your shares or certificates

http://www.adityabirlafinance.com/Portals/0/downloads/Revised-approved-share-list.htm


Documents Required

In case of Individual borrower

Request Letter for Loan against Shares / Securities comprising Loan Amount,

Tenure, Securities, Purpose of Loan & Source of Payment

Last 2 years Income Tax Returns and financial statements duly self attested. (latest

financial should be for FY10, if not ready, provisional must be provided)

Latest borrowing details

PAN Card

Address Proof

2 Photographs

In case of Corporate borrower

Request Letter for Loan against Shares / Securities comprising Loan Amount,

Tenure, Securities, Purpose of Loan & Source of Repayment

Certified, updated true copy of MOA duly signed by Director/Company Secretary

Form 32

Latest share holding pattern

Latest borrowing details

Last 2 years audited financials and Income Tax Returns, duly self attested

List of directors with details of their PAN No, DOB, Residence Address with pin

code

KYC Docs of all signatories authorized by Board, duly self attested (PAN card,

address proof etc.)


Line of Credit Against Securities

In order to enable investors to take care of unscheduled financing needs, we provide

a line of credit against marketable shares and /or mutual fund units. The investors

can avail the disbursement and make the repayment as per their requirements.

Interest will be calculated only for the actual number of days of funds utilized. The

following terms would apply:


Security As per approved list of shares, and

mutual funds


Margin 25% and above


Custodian Charges As Applicable


PDC

Benefits

Liquidity without selling your long term investments

Maximize gains on your existing investments

Take advantage of investment opportunities

Easier and faster processing

Pay interest only for the period of actual funds utilizations


IPO Financing

This product offers an excellent opportunity to leverage your own funds in primary

markets and thereby increase the allotment quantum manifold. We provide loans for

subscription in the IPOs of equity / equity linked instruments. The investors have to

invest only the margin amount and the balance amount is financed by Aditya Birla

Finance. Our 'exclusive' IPO financing scheme provides a single window clearance

for application, banking and follow up.

Tenure 10-15 days



Margin Case to case basis depending upon

expected allotment of shares


PDC

Custodian Charges As applicable

Benefits

Maximize gains on your existing funds available for investments

Take advantage of investment opportunities

Procure higher allotments in IPO

Easier and faster processing

ESOP Financing

For the years of hard work and dedication you have put in to help your company

reach newer heights, you have been acknowledged with the much deserved ESOPs,

meant only for the chosen few. So don’t let this rewarding opportunity go by. You

have put in your efforts to get the ESOPs. Now it’s time to reap the benefits


Tenure 2-13 months

Security ESOPs




Documentation Standard Loan Documents with PDC

Custodian Charges At Actuals

Benefits of ESOP Financing

Specialized and Customized Solution for every company and employee

Speedy and hassle-free transfer of shares: We open up the De-mat account on your

behalf to facilitate a quick and seamless transfer of the allotted shares. This means

that you save both your time and energy. Just provide us with the required

documents and we will do the rest.

Flexible Options: You can either hold or sell your ESOPs depending on your

financial goals. In a fluctuating market, this is an advantage as it offers you the

flexibility to average out your earnings. You also have the option of paying

Documents Required

Address Proof (Passport OR Driving License OR Copy of Lease Agreement OR

Landline Telephone Bill OR Electricity Bill)

PAN card

Employee ID

Passport size photographs (signed across)

Form 16 Or ITR returns ( last 2 yrs)

Pay slip or Salary slip (last 2 months)

Cancelled cheque for demat account opening

(All the documents should be self-attested. All signatures should match the PAN

card signature)


LASi

LASi enables you to invest/leverage/trade in equity shares at a pre-defined margin.

You pay only a part of the total value of purchase with the rest being provided as a

loan. You can choose your own quantity to trade and can avail loan upto 10 times of

your gross annual income on fulfilling a few simple conditions. This financing

solution can be availed for up to 1 year. You can take advantage of the Buy Today

Sell Tomorrow (BTST) facility and maximize value. So go ahead take a step

towards creating wealth.


Security As per list of approved shares

Loan amount Minimum Rs. 2 Lakhs




PDC


Benefits of LASi

Leverage the power of your portfolio

Use your existing holding to buy more shares

Avail a minimum of Rs. 2 Lakhs

Margin can be paid in cash or in form of pre-approved shares

Interest is charged on the utilized loan amount only

http://www.adityabirlafinance.com/Portals/0/downloads/Revised-approved-share-list.htm


Documents Required

Income Tax Returns for the past 2 years

Net worth Certificate

PAN Card

Address Proof

Photographs


Corporate Finance Solutions

The Corporate Finance Group deals with SMEs and large corporate clients and aims

to provide innovative and customized solutions to meet their short term working

capital needs. Its strength lies in structuring complex deals for their clients. The

Corporate Finance group has developed significant domain expertise which is

reflected in its impressive record of no NPAs since inception along with a large,

diversified yet safe portfolio. While continuing to expand its footprint outside the

Aditya Birla Group, it also plans to increase its presence within the Aditya Birla

Group by driving synergies through specialized financing solutions to associated

vendors and customers. Its product offerings include:

Invoice Discounting

Channel Financing

Vendor Financing

Debt Syndication

Invoice Discounting/Bill Discounting

Working capital is one of the essentials for smooth running of your business. Our

constant endeavor is to provide you with innovative solutions designed to meet your

working capital needs.

Our Invoice Discounting facility includes finance against your domestic receivables

by discounting invoices. It helps you to convert your receivables into instant cash

which improves liquidity resulting into healthy and continuous cash flow of your

business.

Benefits

Instant conversion of your receivables into cash

Financing facility without any charge on assets

Provide hassle-free finance

Lower Margin requirements


Channel Financing

Channel Financing is an innovative product to extend working capital finance to

dealers having business relationships with large companies in India. Through this

product Dealers are able to leverage their relationship with reputed companies in

sourcing low cost funds. It aims to provide integrated financial solutions to the

distribution channels. This may be in the form of either invoice discounting or a bill

discounting line of credit.

The corporate provides services like Stop Supply Letter, Assistance in Recovery &

Resale. Facility can be structured as per the requirements to help the

dealers/franchises.

Benefits

Assure availability of Working Capital finance to their channel partners at lower

cost of credit

Acts as a marketing tool and helps in strengthening their relationship with Channel

Partners

Greater efficiencies in Receivables and Cash Management Process for corporate

Ability to introduce payment discipline with their Channel Partners

Steady and cheaper source of Working Capital financing for Channel Partners


Increased Sales through higher purchasing power for Channel Partners

Clean facility up to certain limits

Simplicity of documentation and approval procedures

High service and delivery standards compared to current neighborhood Banker /

Moneylender

Channel partners may be able to increase profitability by availing of cash discounts

from Corporate

Vendor Financing

ABFL understands that longstanding relationship with your vendors is an integral

part of your business. Under vendor financing, facilities are made available to

vendors of Large Corporate. These credit facilities would be granted against specific

transactions such as bill discounting or invoice discounting.

Unlike Corporate Bill discounting limit which is a limit to the corporate, this is a

limit to the vendor. Accordingly, limit is outside the banking arrangement of the

Corporate. Our team would also assist vendors in structuring finance against

confirmed purchase orders from their customers.

Benefits

Assured and continuous availability of Working Capital to vendors

Financing facility without any charge on assets

Improves liquidity of the vendors, which increases his ability to supply larger

volumes

Competitive Pricing

Debt Syndication Debt Syndication encompasses funding activities for diverse business requirements

of corporations. We assist corporate to leverage on debt as an instrument to raise

short-term and long-term capital through structured financial products. This could

be for various requirements including expansions, working capital and also for

structuring and syndicating funds for acquisitions.


Short term debt can be raised through:

Commercial Paper and Mibor-linked Paper - Placement of commercial

paper and short-term Mibor-linked papers with Mutual Funds/ Insurance

Companies/ Banks at fixed and floating rate.

Short Term Loans - Structuring and arranging Short Term Loans / FCNR (B)

from Banks for meeting working capital requirements

Inter-Corporate Deposits (ICD) - Private placement of Inter corporate

deposits.

Buyers / Suppliers Credit - Syndicates low cost borrowing for imports and

exports at Libor linked rates from overseas lenders

Working Capital Facilities - Arranges fund-based and non-fund based limits

for clients from Banks

Long term debt can be raised through:

Project Finance / Term Loans for Expansion - Arranges Long-term loans for

setting up new projects from Financial Institutions and Banks

External Commercial Borrowings - Arranges Libor-linked long-term loans

from overseas lenders in the form of ECBs


Project/ Structured Finance

With a view to capitalize on the opportunities in the infrastructure, core and emerging

sectors, ABFL has expanded its product suite to include project and structured finance

solutions catering primarily to the growing mid-market clients across the country.

Through this initiative, ABFL would not only provide finance but also syndication

and financial services leveraging on its synergies across businesses. The company

hopes to thus contribute to the development of infrastructure facilities of the country

which is a key driver for growth and development

Headquartered in Mumbai, Aditya Birla Finance has a wide network through its

branches and associates across the country.

Through our lending and financing solutions we enable you to pursue ambitious

growth strategies and execute value-creating transactions. Our aim is to open up a

world of opportunities for you and help you achieve your full potential.

Aditya Birla Finance is a part of Aditya Birla Financial Services Group.


Chapter 4

SWOT Analysis


4. SWOT

STRENGTHS:

Strong brand recognition: Aditya Birla is a successful corporate with

an enviable track record, both in India and overseas which has a caring

corporate citizen with benchmarked governance practices Anchored by 72,000

employees and trusted by 700,000 shareholders. As a result of which Aditya

Birla has built a brand image which is trusted and recognised by people

throughout the world.

Growing international presence: Aditya Birla operates globally in

over 25 different countries like India, USA, UK, Germany, Canada, Brazil,

Switzerland, Portugal, China, Australia etc. Overseas operations contribute

over 25% of Group revenues. Manufacturing across 9 countries in 3

continents.

Superior research and development department: Focus on improving

efficiency and returns by investing in research and development. . The

company aims to be a world-class organization that delivers innovative

solutions, continuously improves core competencies and executes effectively.

The centre is supported by state-of-the-art equipment set in a one-of-a-kind

brand new technology-led environment.

Strong sense of culture in the working environment: At the Aditya

Birla Group, opportunities are abundant, the environment warm and the people

friendly. Minds are constantly in motion researching, innovating and creating

ideas that push as many as 19 industries, forward. Aditya Birla Group

constantly strives to be and do better than the best. Aditya Birla Group

endeavour to create an ambience where people have the tools and the freedom

to deliver their commitments and take great pride in their work. In the fertile

ethos of Aditya Birla Group, they find a career that is personally rewarding

and professionally enriching.

Effective Leadership: In January 2007, we launched LEAD

(Leadership Program for the Experienced), an Aditya Birla Group Leadership

Program to groom exceptional individuals to be the future leaders of the

Aditya Birla Group. LEAD is an intensive six - month, on - the - job training


program. Individuals with at least four years of pre or post MBA experience

are eligible to apply for LEAD

Aditya Birla has also built a prestigious Client Base e also known for

their customer loyalty, Aditya Birla has achieved technological excellence

over diversified business

WEAKNESSES:

Complexity of operation

Financial innovation has over the last few decades allowed us to share risk more

effectively than before. At the same time, however, it has introduced a large number

of often complex securities, which investors and risk managers have to deal with. We

argue that while complexity is an important concept in financial markets with

bounded rational agents, it is surprisingly hard to find a workable definition of

complexity, posing a challenge for policy proposals that target complex securities.

We highlight three ways in which bounded rational investors can deal with

complexity:

(i) By dividing up difficult problems into smaller sub-problems or by

using separation results,

(ii) By using models, but keeping in mind potential modelling pitfalls,

(iii) Through standardization and commoditization of securities or investor

restrictions. We also point out that, simply increasing the quantity of information

disclosed to investors does not resolve complexity, since in the presence of

bounded rationality it leads to information overload.


OPPORTUNITIES:

Growth of core sector industries: Growth is something for which most companies,

large or small, strive. Small firms want to get big, big firms want to get bigger.

Indeed, companies have to grow

to survive in the market. Aditya Birla group can rapidly integrate with global

economy by targeting the booming construction business in Asia. Aditya Birla

Finance has immense opportunity in growing e-commerce’s business.

THREATS:

Competition persists in all and every field of business. There is always a risk of take

over

Political impact generally is an external factor which cannot be controlled by any

business.

The impact of foreign currency fluctuation and interest rates: For growing companies

that are early in their industry/business development lifecycle, currency management

should be a low-level concern. . As a company and/or its industry matures and

management becomes focused on "optimization" issues, then currency management

will rise in importance as a business factor. Since Aditya Birla is an established firm,

it has to concentrate on optimization and currency management.


Chapter 5

Conclusion and Suggestions


Conclusion:

This internship is the first major industrial exposure wherein we got an overall view

of the company. We found out about the management hierarchy, basic departments

and the layout which enhanced our managerial knowledge.

Organizational study of this organization has been fruitful.

Further it has also given me an opportunity to learn how each section within a

department functions and also how the corporate office coordinates with the various

divisions. It emphasises the interdependency and cross functionality among various

departments and divisions within the organization.

The study in this organization proved to be a platform for viewing the inputs gained in

the classroom being put into practice. It very well emphasizes the need for the study

of MBA.

Suggestions

• Must concentrate on the untapped market in order to be more competitive

• Aditya Birla Finance must provide training for all the employees on a regular basis

which can improve the performance and achieve higher productivity.

• The head count in each department must be analysed to suit the Organizational

requirement, along with reducing stress for all its employees.


Annexure

Aditya Birla Money

Balance sheet

------------------- in Rs. Cr. -------------------

Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 5.54 5.54 5.54

Equity Share Capital 5.54 5.54 5.54

Share Application Money 0 0 0

Preference Share Capital 0 0 0

Reserves 49.38 39.9 39.56

Revaluation Reserves 0 0 0

Networth 54.92 45.44 45.1

Secured Loans 5 0 40.3

Unsecured Loans 35 5 0.06

Total Debt 40 5 40.36

Total Liabilities 94.92 50.44 85.46


Mar '10 Mar '09 Mar '08


Application Of Funds

Gross Block 58.85 53.58 46.31

Less: Accum. Depreciation 24.34 18.87 14.28

Net Block 34.51 34.71 32.03

Capital Work in Progress 1.32 0.17 0

Investments 2.01 2.03 2.05

Inventories 0 0 0

Sundry Debtors 81.47 23.91 55.46

Cash and Bank Balance 23.29 13.85 47.09

Total Current Assets 104.76 37.76 102.55

Loans and Advances 32.93 24.92 30.66

Fixed Deposits 53.68 26.87 46.54

Total CA, Loans & Advances 191.37 89.55 179.75

Deferred Credit 0 0 0

Current Liabilities 132.41 74.64 115.24

Provisions 1.86 1.36 13.13

Total CL & Provisions 134.27 76 128.37

Net Current Assets 57.1 13.55 51.38

Miscellaneous Expenses 0 0 0

Total Assets

94.94 50.46 85.46

Contingent Liabilities 12.54 6.54 2.81

Book Value (Rs) 9.91 8.2 81.42


Profit & Loss account of Aditya Birla Money

------------------- in Rs. Cr. -----------------

Mar '10 Mar '09 Mar '08

Income 12 mths 12 mths 12 mths

Sales Turnover 97.7 67.82 119.59

Excise Duty 0 0 0

Net Sales 97.7 67.82 119.59

Other Income 2.92 2.86 3.22

Stock Adjustments 0 0 0

Total Income 100.62 70.68 122.81

Expenditure

Raw Materials 0 0 0

Power & Fuel Cost 0 0 0

Employee Cost 23.56 17.96 18.88

Other Manufacturing Expenses 0 1.01 0.66

Selling and Admin Expenses 14.47 11.65 14.11

Miscellaneous Expenses 38.78 27.12 40.74

Preoperative Exp Capitalized 0 0 0

Total Expenses 76.81 57.74 74.39


Mar '10 Mar '09 Mar '08


Operating Profit 20.89 10.08 45.2

PBDIT 23.81 12.94 48.42

Interest 2.61 5.53 8.31

PBDT 21.2 7.41 40.11

Depreciation 5.67 4.73 3.57

Other Written Off 0 0 0

Profit Before Tax 15.53 2.68 36.54

Extra-ordinary items 0 0 -0.55

PBT (Post Extra-ord Items) 15.53 2.68 35.99

Tax 6.05 2.05 14.39

Reported Net Profit 9.48 0.64 22.14

Total Value Addition 76.81 57.74 74.39

Preference Dividend 0 0 0

Equity Dividend 0 0 4.43

Corporate Dividend Tax 0 0 0.75

Per share data (annualized)

Shares in issue (Lakhs) 554 554 55.4

Earnings Per Share (Rs) 1.71 0.11 39.96

Equity Dividend (%) 0 0 80

Book Value (Rs) 9.91 8.2 81.42


Ratios

Key Financial Ratios

------------------- in Rs. Cr. -------------------

Mar '10 Mar '09 Mar '08

Investment Valuation Ratios

Face Value 1 1 10

Dividend Per Share -- -- 8

Operating Profit Per Share (Rs) 3.77 1.82 81.59

Net Operating Profit Per Share (Rs) 17.64 12.24 215.87

Free Reserves Per Share (Rs) 8.71 6.99 69.33

Bonus in Equity Capital 50 50 50

Profitability Ratios

Operating Profit Margin (%) 21.38 14.86 37.79

Profit Before Interest And Tax Margin

(%)

15.06 7.55 33.88

Gross Profit Margin (%) 15.57 7.88 34.8

Cash Profit Margin (%) 15.35 7.78 20.96

Adjusted Cash Margin (%) 15.35 7.78 20.96

Net Profit Margin (%) 9.38 0.89 18.02

Adjusted Net Profit Margin (%) 9.38 0.89 18.02

Return On Capital Employed (%) 19.49 16.56 52.52

Return On Net Worth (%) 17.25 1.39 49.08

Adjusted Return on Net Worth (%) 17.91 1.71 49.17


Return on Assets Excluding

Revaluations

9.91 8.2 81.42

Return on Assets Including

Revaluations

9.91 8.2 81.42

Return on Long Term Funds (%) 30.87 18.38 52.52

Liquidity And Solvency Ratios 1.13 1.11 1.4

Current Ratio 1.43 1.18 1.4

Quick Ratio 0.73 0.11 0.89

Debt Equity Ratio 0.09 -- 0.89

Long Term Debt Equity Ratio

Debt Coverage Ratios 10.44 2.04 5.46

Interest Cover 0.73 0.11 0.89

Total Debt to Owners Fund 9.25 2.37 5.83

Financial Charges Coverage Ratio 6.8 1.97 4.09

Financial Charges Coverage Ratio Post

Tax

Management Efficiency Ratios -- -- --

Inventory Turnover Ratio 1.85 1.71 2.22

Debtors Turnover Ratio -- -- --

Investments Turnover Ratio -- -- --

Fixed Assets Turnover Ratio -- -- 1.57

Total Assets Turnover Ratio 2.2 1.6 3.24

Asset Turnover Ratio

-- -- --

Average Raw Material Holding -- -- --


Average Finished Goods Held 210.34 71.89 154.66

Number of Days In Working Capital -- -- --

Profit & Loss Account Ratios -- -- --

Material Cost Composition 0.52 1.1 0.91

Imported Composition of Raw

Materials Consumed

-- -- --

Selling Distribution Cost Composition

Expenses as Composition of Total Sales -- -- 23.42

Cash Flow Indicator Ratios -- -- 20.16

Dividend Payout Ratio Net Profit 100 100 76.63

Dividend Payout Ratio Cash Profit 100 100 79.87

Earning Retention Ratio 2.58 0.91 1.57

Cash Earning Retention Ratio

Adjusted Cash Flow Times

Mar '10 Mar '09 Mar '08

Earnings Per Share 1.71 0.11 39.96

Book Value 9.91 8.2 81.42


Aditya Birla Chemical

Balance Sheet

------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09

Sources Of Funds 12 mths 12 mths 12 mths



Share Application Money 0 0 0

Preference Share Capital 0 0 0

Reserves 328.66 265.97 216.57


Networth 352.05 289.36 239.96

Secured Loans 26.05 43.8 45.76

Unsecured Loans 0.1 0.26 0.41

Total Debt 26.15 44.06 46.17

Total Liabilities 378.2 333.42 286.13


Mar '11 Mar '10 Mar '09

Application Of Funds 12 mths 12 mths 12 mths

Gross Block 384.17 379.19 374.34

Less: Accum. Depreciation 143.45 125.57 105.82

Net Block 240.72 253.62 268.52

Capital Work in Progress 14.13 2.72 1.4

Investments 46.02 30.94 0.3

Inventories 19.56 20.81 11.13

Sundry Debtors 25.36 24.95 20.55


Total Current Assets 107.94 49.02 32.7


Fixed Deposits 0 41.99 28.95

Total CA, Loans & Advances 136.11 115.85 94.35

Deffered Credit 0 0 0

Current Liabilities 53.67 59.37 70.88

Provisions 5.11 10.35 8.2

Total CL & Provisions 58.78 69.72 79.08

Net Current Assets 77.33 46.13 15.27

Miscellaneous Expenses 0 0 0.61

Total Assets

378.2 333.41 286.1

Contingent Liabilities 79.72 74.54 72.27

Book Value (Rs) 150.53 123.73 102.6


Profit & Loss account

------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09

Income


Sales Turnover 262.65 243.55 231.58

Excise Duty 24.82 19.17 26.56

Net Sales 237.83 224.38 205.02

Other Income 15.2 4.46 5.45

Stock Adjustments 0.11 -0.75 -0.05

Total Income 253.14 228.09 210.42

Expenditure

Raw Materials 113.37 104.46 97.16

Power & Fuel Cost 19.52 17.47 9.04

Employee Cost 13.22 13.25 13.17

Other Manufacturing Expenses 4.13 3.08 2.83

Selling and Admin Expenses 0 6.81 5.41


Preoperative Exp Capitalised 0 0 0

Total Expenses 158.7 147.28 130.56


Mar '11 Mar '10 Mar '09


Operating Profit

79.24 76.35 74.41

PBDIT 94.44 80.81 79.86

Interest 2.64 3.57 5.58

PBDT 91.8 77.24 74.28

Depreciation 20.36 20.04 18.71

Other Written Off 0 0.57 0.55


Extra-ordinary items -0.41 7.34 1.16


Tax 8.74 10.48 9.53


Total Value Addition 45.32 42.81 33.41


Equity Dividend 1.17 3.51 3.51

Corporate Dividend Tax 0.19 0.58 0.6

Per share data (annualized)

Shares in issue (Lakhs) 233.87 233.87 233.87

Earnings Per Share (Rs) 26.81 25.97 19.7

Equity Dividend (%) 5 15 15

Book Value (Rs) 150.53 123.73 102.6



------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09


Face Value 10 10 10

Dividend Per Share 0.5 1.5 1.5



Bonus in Equity Capital -- -- --


Operating Profit Margin(%) 33.32 34.02 36.28

Profit Before Interest And Tax Margin(%) 23.27 24.6 26.39

Gross Profit Margin(%) 24.76 25.09 27.16

Cash Profit Margin(%) 32.83 29.18 30.9

Adjusted Cash Margin(%) 32.83 29.18 30.9

Net Profit Margin(%) 24.78 26.53 21.84

Adjusted Net Profit Margin(%) 24.78 26.53 21.84

Return On Capital Employed(%) 19.58 18.07 21.33

Return On Net Worth(%) 17.81 20.99 19.25

Adjusted Return on Net Worth(%) 17.81 15.96 19.18

Return on Assets Excluding Revaluations 150.53 123.73 102.34

Return on Assets Including Revaluations 150.53 123.73 102.34


Return on Long Term Funds(%) 19.58 18.65 21.41

Liquidity And Solvency Ratios


Quick Ratio 1.98 1.35 1.04

Debt Equity Ratio 0.07 0.15 0.19

Long Term Debt Equity Ratio 0.07 0.12 0.19

Debt Coverage Ratios




Financial Charges Coverage Ratio Post Tax 32.47 23.77 12.71

Management Efficiency Ratios


Debtors Turnover Ratio 9.45 9.86 11.46

Investments Turnover Ratio 13.43 13.05 26.19

Fixed Assets Turnover Ratio 0.62 0.59 0.55


Asset Turnover Ratio 0.62 0.59 0.55

Average Raw Material Holding -- 63.03 22.02

Average Finished Goods Held -- 3.15 5.88

Number of Days In Working Capital 117.06 74.02 26.84

Profit & Loss Account Ratios


Imported Composition of Raw Materials

Consumed

-- -- --

Selling Distribution Cost Composition -- 1.88 1.32


Expenses as Composition of Total Sales 0.2 0.22 0.38

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 2.16 6.73 8.9

Dividend Payout Ratio Cash Profit 1.63 5.02 6.28


Cash Earning Retention Ratio 98.37 93.88 93.71

Adjusted Cash Flow Times

0.31 0.66 0.71

Mar '11 Mar '10 Mar '09


Book Value 150.53 123.73 102.6


Aditya Birla Nuvo

Balance Sheet

------------------- in Rs. Cr. -------------------

Mar '10 Mar '09 Mar '08


Sources Of Funds



Share Application Money 142.07 377.41 377.41

Preference Share Capital 0.1 0 0

Reserves 4,416.33 3,649.24 3,551.32


Net worth 4,661.51 4,121.66 4,023.74

Secured Loans 2,067.38 2,217.07 1,856.72

Unsecured Loans 1,568.27 2,282.14 886.7

Total Debt 3,635.65 4,499.21 2,743.42

Total Liabilities 8,297.16 8,620.87 6,767.16


Mar '10 Mar '09 Mar '08


Application Of Funds

Gross Block 3,564.71 3,290.16 3,111.78

Less: Accum. Depreciation 2,012.49 1,813.95 1,680.89

Net Block 1,552.22 1,476.21 1,430.89

Capital Work in Progress 263.06 128.78 70.73

Investments 5,435.85 5,712.39 4,054.17

Inventories 876.34 747.6 776.6

Sundry Debtors 693.33 887.23 760.98


Total Current Assets 1,582.85 1,670.88 1,593.77


Fixed Deposits 1.13 53.76 40.96

Total CA, Loans & Advances 2,268.38 2,282.34 2,136.84

Deferred Credit 0 0 0

Current Liabilities 1,104.09 882.41 791.99

Provisions 118.26 96.44 133.48

Total CL & Provisions 1,222.35 978.85 925.47

Net Current Assets 1,046.03 1,303.49 1,211.37

Miscellaneous Expenses 0 0 0

Total Assets

8,297.16 8,620.87 6,767.16

Contingent Liabilities 809.65 991.33 810

Book Value (Rs) 438.73 394.09 383.79


Profit & Loss account

------------------- in Rs. Cr. -------------------

Mar '10 Mar '09 Mar '08


Income

Sales Turnover 4,981.85 4,997.21 4,145.75

Excise Duty 160.4 211.08 212.8

Net Sales 4,821.45 4,786.13 3,932.95

Other Income -64.69 60.24 69.94

Stock Adjustments -3.16 17.89 83.17

Total Income 4,753.60 4,864.26 4,086.06

Expenditure

Raw Materials 2,577.99 2,749.62 2,236.86

Power & Fuel Cost 431.57 537.38 359.66

Employee Cost 347.63 287.91 258.2

Other Manufacturing Expenses 117.12 115.43 115.89

Selling and Admin Expenses 493.13 463.92 367.72


Preoperative Exp Capitalised 0 0 0

Total Expenses 4,058.70 4,239.44 3,431.36


Mar '10 Mar '09 Mar '08


Operating Profit 759.59 564.58 584.76

PBDIT 694.9 624.82 654.7

Interest 334.1 290.64 204.47

PBDT 360.8 334.18 450.23

Depreciation 180.1 165.96 141.1

Other Written Off 0 0 0


Extra-ordinary items 4.25 29.23 41.18


Tax 41.15 60.02 107.24


Total Value Addition 1,480.71 1,489.82 1,194.50


Equity Dividend 51.51 38 54.63

Corporate Dividend Tax 7.95 4.43 9.28

Per share data (annualised)

Shares in issue (lakhs) 1,030.10 950.09 950.08

Earning Per Share (Rs) 27.51 14.46 25.58

Equity Dividend (%) 50 40 57.5

Book Value (Rs) 438.73 394.09 383.79



------------------- in Rs. Cr. -------------------

Mar '10 Mar '09 Mar '08


Face Value 10 10 10

Dividend Per Share 5 4 5.75



Free Reserves Per Share (Rs) 393.52 378.8 370.52

Bonus in Equity Capital 22.68 24.59 24.59


Operating Profit Margin(%) 15.75 11.79 14.86

Profit Before Interest And Tax

Margin(%)

11.85 8.22 11.17

Gross Profit Margin(%) 12.01 8.32 11.28

Cash Profit Margin(%) 9.23 5.62 7.8

Adjusted Cash Margin(%) 9.23 5.62 7.8

Net Profit Margin(%) 5.79 2.83 6.12

Adjusted Net Profit Margin(%) 5.79 2.83 6.12

Return On Capital Employed(%) 7.79 5.3 7.1

Return On Net Worth(%) 6.27 3.67 6.66

Adjusted Return on Net Worth(%) 6 2.84 4.63

Return on Assets Excluding

Revaluations

438.73 394.09 383.79

Return on Assets Including

Revaluations

438.73 394.09 383.79

Return on Long Term Funds(%) 8.95 7.13 8.75


Liquidity And Solvency Ratios


Quick Ratio 1.11 1.54 1.44

Debt Equity Ratio 0.8 1.2 0.75

Long Term Debt Equity Ratio 0.6 0.71 0.5

Debt Coverage Ratios




Financial Charges Coverage Ratio Post

Tax

2.39 2.04 2.88

Management Efficiency Ratios


Debtors Turnover Ratio 6.1 5.81 5.8

Investments Turnover Ratio 6.41 7.51 5.99

Fixed Assets Turnover Ratio 1.44 1.55 1.35


Asset Turnover Ratio 1.44 1.55 1.35

Average Raw Material Holding 68.37 49.72 70.15

Average Finished Goods Held 24.93 23.87 28.62

Number of Days In Working Capital 78.1 98.05 110.88


Profit & Loss Account Ratios


Imported Composition of Raw

Materials Consumed

56.59 61 59.49

Selling Distribution Cost

Composition

7.02 6.69 6.48

Expenses as Composition of Total

Sales

13 13.39 16

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 20.98 30.87 26.29

Dividend Payout Ratio Cash Profit 12.82 13.98 16.63


Cash Earning Retention Ratio 86.84 84.42 79.39

AdjustedCash Flow Times 8.05 16.52 8.85

Mar '10 Mar '09 Mar '08


Book Value 438.73 394.09 383.79


Bibliography/ Webliography

http://www.adityabirla.com/

http://www.adityabirlafinance.com/

http://www.moneycontrol.com/stocksmarketsindia/

http://www.adityabirla.com/

http://www.adityabirlafinance.com/

http://www.moneycontrol.com/stocksmarketsindia/

Padmini 10XQCMA067 AdityaBirlaFinance Internship Report

Documents

Transcript of Padmini 10XQCMA067 AdityaBirlaFinance Internship Report