SUMMER TRAINING REPORT

ON

“Investment Simplified: Speed Matters”

Submitted in partial fulfillment of

MASTER OF BUSINESS ADMINISTRATION (MBA)

Conducted by
DR APJ AK TECHNICAL UNIVERSITY, LUCKNOW
Under the guidance of Under the guidance of
(Prathana Sahi)

Submitted By
Anupriya Rupam

MBA III Semester

Enrolment No.1674870004

SESSION- 2017-18

ANSAL TECHNICAL CAMPUS,

LUCKNOW
SECTOR-C, POCKET-9, SUSHANT GOLF CITY, SHAHEED PATH, LUCKNOW

www.aitmlucknow.edu.in
 ACKNOWLEDGEMENT

Any fruitful work is in complete without a word of thanks to those involved directly

or indirectly in its completion. With my sincere gratitude I would like to thanks

everyone who has supported me in my project.

I would like to extend my sense of acknowledgement to learning Experience. I would

like to thanks my HOD for their support of Ansal Technical Campus, Lucknow for

their blessings which always gave me courage to face all challenges and made my

path easier.

Their insight as well as guidance helped me understand the essentials of the report I

would like to thanks for their support college Guide of Ansal for their immense help

and guidance that they have provided during the research report .The present work has

taken its sharp largely to their wise counsels, concrete and constructive suggestions.

Anupriya Rupam
 Table of Content
ii Certificate from the College
iii Declaration
iv Acknowledgement
v Preface
1. Introduction to the Topic 1-30
2. Company Profile 31-44
3. Research Methodology 45-47
4. Data Interpretation & Analysis 48-57
5. Findings 58-59
6. Suggestion & Recommendations 60-61
7. Conclusion 62-63
8. Limitations 64-65
9. Bibliography 66-67
Annexure 68-71
Introduction

1
 Introduction
Savings form an important part of the economy of any nation. With the savings

invested in various options available to the people, the money acts as the driver for

growth of the country. Indian financial scene too presents a plethora of avenues to the

investors. Though certainly not the best or deepest of markets in the world, it has

reasonable options for an ordinary man to invest his savings.

The money you earn is partly spent and the rest saved for meeting future expenses.

Instead of keeping the savings idle you may like to use savings in order to get return

on it in the future, this is called Investment.

One needs to invest and earn return on your idle resoures and generate sum of money

for a specific goal in life and make a provision for an uncertain future .One of the

important reason why people needs to invest wisely is to meet the cost of inflation.

Inflation is the rate at which the cost of living increases.

The cost of living is simply what it costs to buy the goods and services you need to

live. Inflation causes money to lose value because it will not buy the same amountof a

good or service in the future as it does now or did in the past. The sooner one starts

investing the better. By investing early you allow your investments more time to

grow, whereby the concept of compounding increases your income, by accumulating

the principal and the interest or dividend earned on it, year after year. Tha three

golden rules for all investors are :

 Invest Early

 Invest regularly

 Invest for long term and not for short term

2
INVESTMENTS

The dictionary meaning of investment is to commit money in order to earn a

financial return or to make use of the money for future benefits or advantages.

People commit money to investments with an expectation to increase their future

wealth by investing money to spend in future years. For example, if you invest Rs.

1000 today and earn 10 %over the next year, you will have Rs.1100 one year from

today.

An investment can be described as perfect if it satisfies all the needs of all investors.

So, the starting point in searching for the perfect investment would be to examine

investor needs. If all those needs are met by the investment, then that investment can

be termed the perfect investment. Most investors and advisors spend a great deal of

time understanding the merits of the thousands of investments available in India.

Little time, however, is spent understanding the needs of the investor and ensuring

that the most appropriate investments are selected for him.

The Investment Needs of an Investor

By and large, most investors have eight common needs from their investments:

1. Security of Original Capital;

2. Wealth Accumulation;

3. Comfort Factor;

4. Tax Efficiency;

5. Life Cover;

6. Income;

3
7. Simplicity;

8. Ease of Withdrawal;

9. Communication.

Security of original capital: The chance of losing some capital has been a primary

need. This is perhaps the strongest need among investors in India, who have suffered

regularly due to failures of the financial system.

Wealth accumulation: This is largely a factor of investment performance,

including both short-term performance of an investment and long-term performance

of a portfolio. Wealth accumulation is the ultimate measure of the success of an

investment decision.

Comfort factor: This refers to the peace of mind associated with an investment.

Avoiding discomfort is probably a greater need than receiving comfort. Reputation

plays an important part in delivering the comfort factor.

Tax efficiency: Legitimate reduction in the amount of tax payable is an important

part of the Indian psyche. Every rupee saved in taxes goes towards wealth

accumulation.

4
 Life Cover: Many investors look for investments that offer good return with

adequate life cover to manage the situations in case of any eventualities.

Income: This refers to money distributed at intervals by an investment, which are

usually used by the investor for meeting regular expenses. Income needs tend to be

fairly constant because they are related to lifestyle and are well understood by

investors.

Ease of withdrawal: This refers to the ability to invest long term but withdraw

funds when desired. This is strongly linked to a sense of ownership. It is normally

triggered by a need to spend capital, change investments or cater to changes in other

needs. Access to a long-term investment at short notice can only be had at a

substantial cost.

Communication: This refers to informing and educating investors about the

purpose and progress of their investments. The need to communicate increases

when investments are threatened.

 Security of original capital is more important when performance falls.

 Performance is more important when investments are performing well.

 Failures engender a desire for an increase in the comfort factor.

5
Perfect investment would have been achieved if all the above-mentioned needs had

been met to satisfaction. But there is always a trade-off involved in making

investments. As long as the investment strategy matches the needs of investor

according to the priority assigned to them, he should be happy.

The Ideal Investment strategy should be a customized one for each investor

depending on his risk-return profile, his satisfaction level, his income, and his

expectations. Accurate planning gives accurate results. And for that there must be an

efficient and trustworthy roadmap to achieve the ultimate goal of wealth

maximization.

Choosing the Right Investment Options

After understanding the concept of investment, the investors would like to know

how to go about the task of investment, how much to invest at any moment and

when to buy or sell the securities, This depends on investment process as investment

policy, investment analysis, valuation of securities, portfolio construction and

portfolio evaluation and revision. Every investor tries to derive maximum economic

advantage from his investment activity.

For evaluating an investment avenues are based upon the rate of return, risk and

uncertainty, capital appreciation, marketability, tax advantage and convenience of

investment. The following Table should give the clear picture relating to the

investors’ investment decisions in various financial market instruments. The choice

of the best investment options will depend on personal circumstances as well as

6
general market conditions. For example, a good investment for a long-term

retirement plan may not be a good investment for higher education expenses. In

most cases, the right investment is a balance of three things: Liquidity, Safety and

Return.

Investment Options in India

7
Some of the most preferred Investment Avenues

Non-Marketable Financial Assets

A good portion of the financial assets of individual investors is held in the form of

non-marketable financial assets like bank deposits, post office deposits, company

deposits, provident fund deposits. The main feature of these assets is that they

represent personal transactions between the investor and the issuer. For

Example, when you open a saving bank a/c , you deal with bank personally. In

contrast, When you buy equity shares in the stock market you do not know who is the

seller.

 Bank Deposits

Bank deposit simply refers to opening a bank a/c & depositing money in it. There are

various kind of bank A/C’s: current A/c, saving a/c, Fixed deposit a/c. While a deposit

in current A/c does not earn any interest, deposits in other bank a/c earn Interest.

 Company Deposits

Many companies, large and small, solicit fixed deposits from the public.Fixed

deposits mobilized by manufacturing companies are regulated by RBI. Key feature of

co. deposits are as :

8
 1. For a manufacturing co. the term of deposits can be one to three

years, whereas for a non-banking finance co. it can vary between 25

months to 5 years.

2. The interest rate on it are higher than those on bank deposits.

3. Company deposit represent unsecured loans.

4. It offers the facility for premature withdrawal to attract deposits.

5.

 Public provident fund scheme

Individuals & HUFs can participate in this scheme. A PPF a/c may be opened at

any branch of the SBI or its subsidiaries or at specified branches of other

nationalized banks. The subscriber to a PPF a/c is required to make a min. deposit

of rs.100 per year. The max. permissible deposit per year is rs.70000/-.PPF

currently earn a compound interest rate of 8% p.a. which is totally exempt from

taxes.

Fixed Income SECURITIES

It includes the following:

 Government Securities

 Saving Bonds

 Private sector Debentures

 Public sector undertaking bonds

 Government Securities

Debt securities issued by the central government, state government and

quasi-government agencies are referred to as govt. securities or gilt-edged

9
 securities. Govt. securities have maturities ranging from 3-20 years and carry

interest rates that usually vary between 8 and 10 %.

 RBI Savings Bonds

Individuals, HUFs, and NRIs can invest in these bonds. The minimum

amount of investment is rs.1000/-. There is no upper limit. The maturity

period is 5 years from the date of issue. The interest rate is 8% p.a., payable

half-yearly. These bonds can be offered as security to banks for availing

loans.

 Private sector debenture

Akin to promissory notes, debentures are instruments meant for raising

Long-term debt. The obligation of a co. towards its debenture holders is

similar to that of a borrower who promises to pay interest and principal at

specified times.

When a debenture issue is sold to the investing public, a trustee is appointed

through deed. The trustee is usually a bank or financial institution.

 Public Sector Undertaking Bonds

PSUs issue debentures that are referred to as PSU bonds. There are two

broad varieties of PSU bonds: taxable bonds and tax-free bonds. There is no

deduction of tax at source on the interest paid on these bonds. They are

10
 transferable by mere endorsement and delivery. There is no stamp duty

applicable on transfer. They are traded on stock exchanges.

Fixed Deposits

It same as a term or time deposit. Money may be placed with a bank, merchant bank,

building society or credit union for a fixed term at a fixed rate of interest which

remains unchanged during the period of the deposit. Depositors may have to accept an

interest penalty if they break the deposit, ie, ask to take the money out before the

agreed period has expired.

Few points which FD investors must consider at the time of investment,

1. Safety

FDs have conventionally been the premier choice for investors with a low risk

appetite; assured returns is the key factor which attracts investors towards deposits.

Stick to FDs of the highest credit rating i.e. those with a “AAA” rating even if their

rates seem modest vis-à-vis those offered by company deposits.

2. Tenure

Short tenured fixed deposits continue to be your best bet. With interest rates on the

ascent, a further hike in rates offered by fixed deposits cannot be ruled out. Locking

your investments in longer tenured instruments may lead to an opportunity loss.

11
3. Liquidity

Find out how FD fares on the pre-mature encashment front i.e. how easily can your

investment be liquidated. Also enquire about the penalty clauses, e.g. do you suffer a

loss of interest and/or principal amount. Compare how various FDs rank on this

parameter and pick the best deal; thereby try to minimise the impact of illiquidity

which is typically associated with FDs.

4. Additional benefits

Fixed deposits from reputed entities offer additional benefits, e.g. they can be used as

collateral against which loans can be raised. Select a fixed deposit scheme which

scores favourably on such parameters-

Any investment portfolio should comprise the right mix of safe, moderate and risky

investments. While mutual funds and stocks are the favorite contenders for moderate

and risky investments, fixed deposits, government bonds etc. are considered safe

investments. Fixed deposits have been particularly popular among a large section of

investors in India as a safe investment option for a long period.

With fixed deposits or FDs as they are popularly known, a person can invest an

amount for a fixed duration. The banks provide interest rates depending on this loan

amount and the tenure of deposit. Here are the benefits, drawbacks of fixed deposits

and precautions one should take while making such investments.

12
 Mutual funds

A Mutual Fund is a trust that pools the savings of a number of investors who share a

common financial goal. The money thus collected is then invested in capital market

instruments such as shares, debentures and other securities. The income earned

through these investments and the capital appreciation realized is shared by its unit

holders in proportion to the number of units owned by them. Thus a Mutual Fund is

the most suitable investment for the common man as it offers an opportunity to invest

in a diversified, professionally managed basket of securities at a relatively low cost.

The flow chart below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart

13
ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the organizational

set up of a mutual fund:

Mutual fund units are Issued and redeemed by the Fund Management Company based

on the fund's net asset value (NAV), which is determined at the end of each trading

session. NAV is calculated as the value of all the shares held by the fund, minus

expenses, divided by the number of units Issued. Mutual Funds are usually long term

investment vehicle though there some categories of mutual funds, such as money

market mutual funds which are short term instruments.

14
 A) Equity Funds

Equity funds are considered to be the more risky funds as compared to other fund

types, but they also provide higher returns than other funds. It is advisable that an

investor looking to invest in an equity fund should invest for long term i.e. for 3 years

or more. There are different types of equity funds each falling into different risk

bracket. In the order of decreasing risk level, there are following

Types of equity funds:-

 Aggressive Growth funds

15
  Growth Funds

 Equity income /Dividend yield

 Diversified equity funds

 Equity Index Funds

 Value Funds

B) Money Market/Liquid Funds

Money market / liquid funds invest in short-term (maturing within one year) interest

bearing debt instruments. These securities are highly liquid and provide safety of

investment, thus making money market / liquid funds the safest investment option

when compared with other mutual fund types. However, even money market / liquid

funds are exposed to the interest rate risk. The typical investment options for liquid

funds include Treasury Bills (issued by governments), Commercial papers (issued by

companies) and Certificates of Deposit (issued by banks).

C) HYBRID FUNDS

As the name suggests, hybrid funds are those funds whose portfolio includes a blend

of equities, debts and money market securities. Hybrid funds have an equal proportion

of debt and equity in their portfolio. There are following types of hybrid funds in

India:

16
  Balanced Funds

 Growth-and-Income Funds

 Asset Allocation Funds

D) GILT FUNDS

Also known as Government Securities in India, Gilt Funds invest in government

papers (named dated securities) having medium to long term maturity period. Issued

by the Government of India, these investments have little credit risk (risk of default)

and provide safety of principal to the investors. However, like all debt funds, gilt

funds too are exposed to interest rate risk. Interest rates and prices of debt securities

are inversely related and any change in the interest rates results in a change in the

NAV of debt/gilt funds in an opposite direction.

Pros & cons of investing in mutual funds:

For investments in mutual fund, one must keep in mind about the Pros and cons of

investments in mutual fund.

Advantages of Investing Mutual Funds:

A. Professional Management - The basic advantage of funds is that, they are

professional managed, by well qualified professional. Investors purchase funds

because they do not have the time or the expertise to manage their own portfolio. A

mutual fund is considered to be relatively less expensive way to make and monitor

their investments.

17
B. Diversification - Purchasing units in a mutual fund instead of buying individual

stocks or bonds, the investors risk is spread out and minimized up to certain extent.

The idea behind diversification is to invest in a large number of assets so that a loss in

any particular investment is minimized by gains in others.

C. Economies of Scale - Mutual fund buy and sell large amounts of securities at a

time, thus help to reducing transaction costs, and help to bring down the average cost

of the unit for their investors.

D. Liquidity - Just like an individual stock, mutual fund also allows investors to

liquidate their holdings as and when they want.

E. Simplicity - Investments in mutual fund is considered to be easy, compare to other

available instruments in the market, and the minimum investment is small. Most

AMC also have automatic purchase plans whereby as little as Rs. 2000, where SIP

start with just Rs.50 per month basis.

Disadvantages of Investing Mutual Funds:

A. Professional Management- Some funds doesn’t perform in neither the market, as

their management is not dynamic enough to explore the available opportunity in the

18
market, thus many investors debate over whether or not the so-called professionals are

any better than mutual fund or investor him self, for picking up stocks.

B. Costs – The biggest source of AMC income is generally from the entry & exit load

which they charge from investors, at the time of purchase. The mutual fund industries

are thus charging extra cost under layers of jargon.

C. Dilution - Because funds have small holdings across different companies, high

returns from a few investments often don't make much difference on the overall

return. Dilution is also the result of a successful fund getting too big. When money

pours into funds that have had strong success, the manager often has trouble finding a

good investment for all the new money.

D. Taxes - when making decisions about your money, fund managers don't consider

your personal tax situation. For example, when a fund manager sells a security, a

capital-gain tax is triggered, which affects how profitable the individual is from the

sale. It might have been more advantageous for the individual to defer the capital

gains liability

Equity Market

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

at an agreed price; these are securities listed on a stock exchange as well as those only

traded privately.

19
Indian stock markets particularly the BSE and the NSE, had been a preferred

destination not only for the Indian investors but also for the Foreign investors.

Although Indian Markets had been through tough times due to various scams, but

history shows that they recovered very fast. Many types of scrip had been value

creators for the investors. People have earned fortunes from the stock markets, but

there are people who have lost everything due to incorrect timings or selection of

fundamentally weak companies.

Equity shares

At the most basic level, stock (often referred to as shares) is ownership, or equity, in a

company. Investors buy stock in the form of shares, which represent a portion of a

company's assets (capital) and earnings(dividends). As a shareholder, the extent of

your ownership (your stake) in a company depends on the number of shares you own

in relation to the total number of shares available For example, if you buy 1000 shares

of stock in a company that has issued a total of 100,000 shares, you own one per cent

of the company.

While one per cent seems like a small holding, very few private investors are able to

accumulate a shareholding of that size in publicly quoted companies, many of which

have a market value running into billions of pounds. Your stake may authorize you to

vote at the company's annual general meeting, where shareholders usually receive one

vote per share.

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In theory, every stockholder, no matter how small their stake, can exercise some

influence over company management at the annual general meeting. In reality,

however, most private investors' stakes are insignificant. Management policy is far

more likely to be influenced by the votes of large institutional investors such as

pension funds.

a) STOCKS SYMBOLS

A stock symbol, or 'Epic' symbol, is the standard abbreviation of a stock's name. You

can find stock symbols wherever stock performance information is published - for

example, newspaper stock listings and investment websites. Company names also

have abbreviations called ticker symbols. However, it's worth remembering that these

may vary at the different exchanges where the company is quoted.

b) PERFORMANCE INDICATORS

Here is a list of the standard performance indicators

Performance Indicator Definition

Closing price: The last price at which the stock was bought or sold

High and low : The highest and lowest price of the stock from the previous trading

day

52 week range: The highest and lowest price over the previous 52 weeks

21
Volume: The amount of shares traded during the previous trading day High

and low

Net change: The difference between the closing price on the last trading day and

the closing price on the trading day prior to the last.

THE STOCK EXCHANGES

A marketplace in which to buy or sell something makes life a lot easier.

The same applies to stocks. A stock exchange is an organization that provides a

marketplace in which investors and borrowers trade stocks. Firstly, the stock

exchange is a market for issuers who want to raise equity capital by selling shares to

investors in an Initial Public Offering (IPO). The stock exchange is also a market for

investors who can buy and sell shares at any time.

a) Trading shares on the stock exchange

As an investor in the INDIA, you can't buy or sell shares on a stock exchange

yourself. You need to place your order with a stock exchange member firm (a

stockbroker) who will then execute the order on your behalf. The NSE AND BSE are

the leading stock exchange in the INDIA. Trading is done through computerized

systems.

b) The trading process

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If you decide to buy or sell your shares, you need to contact a stockbroker who will

buy or sell the shares on your behalf. After receiving your order, the stockbroker will

input the order on the SETS or SEAQ system to match your order with that of another

buyer or seller. Details of the trade are transmitted electronically to the stockbroker

who is responsible for settling the trade. You will then receive confirmation of the

deal.

c) Types of shares available on the stock exchange

You cannot trade all stocks on the stock exchange. To be listed on a stock exchange, a

stock must meet the listing requirements laid down by that exchange in its approval

process. Each exchange has its own listing requirements, and some exchanges are

more particular than others. It is possible for a stock to be listed on more than one

exchange. This is known as a dual listing.

Derivative Market

Is a product whose value is derived from the value of one or more basic variables,

called underlying. The underlying asset can be equity, index, foreign exchange

(forex), commodity or any other asset. Derivative products initially emerged as

hedging devices against fluctuations in commodity prices and commodity-linked

derivatives remained the sole form of such products for almost three hundred years.

The financial derivatives came into spotlight in post-1970 period due to growing

instability in the financial markets. However, since their emergence, these products

23
have become very popular and by 1990s, they accounted for about two thirds of total

transactions in derivative products.

24
Types of derivatives

The most commonly used derivatives contracts are forwards, futures and options,

which we shall discuss in detail later. Here we take a brief look at various derivatives

contracts that have come to be used.

A. Forwards: A forward contract is a customized contract between two entities,

where settlement takes place on a specific date in the future at today's pre-agreed

price.

B. Futures: A futures contract is an agreement between two parties to buy or sell an

asset at a certain time in the future at a certain price. Futures contracts are special

types of forward contracts in the sense that the former are standardized exchange-

traded contracts.

C. Options: Options are of two types - calls and puts. Calls give the buyer the right

but not the obligation to buy a given quantity of the underlying asset, at a given price

on or before a given future date. Puts give the buyer the right, but not the obligation to

sell a given quantity of the underlying asset at a given price on or before a given date.

25
D. Swaps: Swaps are private agreements between two parties to exchange cash flows

in the future according to a prearranged formula. They can be regarded as portfolios

of forward contracts. The two commonly used swaps are:

 Interest rate swaps: These entail swapping only the interest related cash

flows between the parties in the same currency.

 Currency swaps: These entail swapping both principal and interest

between the parties, with the cash flows in one direction being in a

different currency than those in the opposite direction.

Insurance

People need insurance in the first place. An insurance policy is primarily meant to

protect the income of the family’s bread earners. The idea is if any one or both die

their dependents continue to live comfortably. The circle of life begins at birth

follower by education, marriage and eventually after a

Life time of work we look forward to life of retirement. Our finances too tend to

change as we go through the various phases of life. In the first twenty of our life,

we are financially and emotionally dependents on our parents and their are no

financial commitments to be met. In the next twenty years we

gain financial independence and provide financial independence to our families.

This is also the stage when our income may be unable to meet the growing

expenses of a young household. In the next twenty as we see our

26
 Investments grow after our children grow and become financially independent.

Insurance is a provision for the distribution of risks that is to say it is a financial

provision against loss from unavoidable disasters. The protection which it affords

takes form of a guarantee to indemnify the insured if certain specified losses occur.

The principle of insurance so far as the undertaking of the obligation is concerned

is that for the payment of a certain sum the guarantee will be given to reimburse

the insured. The insurer in accepting the risks so distributes them that the total of

all the amounts is paid for this insurance protection will be sufficient to meet the

losses that occur. Insurance then provide divided responsibility. This principle is

introduced in most stores where a division is made between the sales clerk and the

cashiers department the arrangement dividing the risks of loss. The insurance

principle is similarly applied in any other cases of divided responsibility. As a

business however insurance is usually recognized as some form of securing a

promise of indemnity by the payment of premium and the fulfilment of certain

other stipulations

Types of insurance

A) Term insurance plans

Term insurance is the cheapest form of life insurance available. Since a term

insurance contract only pays in the event of eventuality the life cover comes at low

premium rates. Term insurance is a useful tool to purchase against risk of early death

and protection of an asset.

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 B) Endowment plans

Endowment plans are savings and protection plans that provide a dual benefit of

protection as well as savings. Endowment plans pay a death benefit in the event of an

eventuality should the customer survive the benefit period a maturity benefit is paid to

the life insured.

C) Whole of life plans

A whole of life plan provides life insurance cover to an individual up to a specified

age. A whole of life plan is suitable for an individual who is looking for an extended

life insurance cover and /or wants to pay premium over as long as tenure as possible

to reduce the amount of upfront premium payment.

D) Pension plans

Pension plans allow an individual to save in a tax deferred manner. An individual can

either contribute through regular premiums or make single premium investments.

Savings accumulate over the deferment period. Once the contract reaches the vesting

age , the individual has the option of choosing an annuity plan from a life insurance

company. An annuity is paid till the life the lifetime of the insured or a predetermined

period depending upon the annuity option chosen by the life insured.

E) Unit Linked Insurance Plans

Unit linked insurance plan (ULIP) is life insurance solution that provides for the

benefits of risk protection and flexibility in investment. The investment is denoted as

28
units and is represented by the value that it has attained called as Net Asset Value

(NAV). The policy value at any time varies according to the

value of the underlying assets at the time. In a ULIP, the invested amount of the

premiums after deducting for all the charges and premium for risk cover under

all policies in a particular fund as chosen by the policy holders are pooled together to

form a Unit fund. A Unit is the component of the Fund in a Unit Linked Insurance

Policy. The returns in a ULIP depend upon the performance of the fund in the capital

market. ULIP investors have the option of investing across various schemes, i.e.,

diversified equity funds, balanced funds, debt

funds etc. It is important to remember that in a ULIP, the investment risk is generally

borne by the investor.

In a ULIP, investors have the choice of investing in a lump sum (single premium) or

making premium payments on an annual, half-yearly, quarterly or monthly basis.

Investors also have the flexibility to alter the premium amounts during the policy's

tenure. For example, if an individual has surplus funds, he can enhance the

contribution in ULIP. Conversely an individual faced with a liquidity crunch has the

option of paying a lower amount (the difference being adjusted in the accumulated

value of his ULIP). ULIP investors can shift their investments across various

plans/asset classes (diversified equity funds, balanced funds, debt funds) either at a

nominal or no cost.

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 Expenses Charged in a ULIP

 Premium Allocation Charge

A percentage of the premium is appropriated towards charges initial and renewal

expenses apart from commission expenses before allocating the units under the

policy.

 Mortality Charges

These are charges for the cost of insurance coverage and depend on number of factors

such as age, amount of coverage, state of health etc.

 Fund Management Fees

Fees levied for management of the fund and are deducted before arriving at the NAV.

 Administration Charges

This is the charge for administration of the plan and is levied by cancellation of units.

 Surrender Charges

Deducted for premature partial or full encashment of units.

 Fund Switching Charge

Usually a limited number of fund switches are allowed each year without charge, with

subsequent switches, subject to a charge.

 Service Tax Deductions

Service tax is deducted from the risk portion of the premium.

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COMPARATIVE ANALYSIS of investment avenues

Return  Safety  Volatilit Liquidity  Convenien

y  ce 

Equity  High  Low  High  High  Moderate 

Bonds  Moderate  High  Moderat Moderate  High 

e 

Co. Debentures  Moderate  Moderate  Moderat Low  Low 

e 

Co. FDs  Moderate  Low  Low  Low  Moderate 

Bank Deposits  Low  High  Low  High  High 

PPF  Moderate  High  Low  Moderate  High 

Insurance  Low  High  Low  Low  Moderate 

Mutual Funds  High  High  Moderat High  High 

e 

31
Company
Profile

32
 Company Profile

Aditya Birla Finance Limited, an Aditya Birla Capital Company

Aditya Birla Finance Limited (“ABFL”) is among the leading well-diversified

financial services company in India offering end-to-end lending, financing and wealth
management solutions to a wide range of customers across the country. ABFL is
registered with RBI as a systemically important non-deposit accepting non-banking
finance company (“NBFC”) and ranks among the top five largest private diversified
NBFCs in India based on AUM as of March 31, 2017 (source: CRISIL).

For the quarter ended June 30, 2017, the loan book was at Rs. 362 billion. Along with
its growth, ABFL has maintained healthy asset quality with GNPA at 0.5% on 90
DPD as of June 30, 2017. This is reflected in its short term credit rating of A1+ by
ICRA, long term credit rating of AA+ (with stable outlook) by ICRA and perpetual
debt credit rating of AA (with stable outlook) by ICRA and India Ratings.

ABFL caters to the varied needs of diverse set of customers ranging across retail,
HNI, ultra HNI, micro enterprises, SME, mid and large corporates. ABFL offers
customized solutions in areas of personal and business loans, corporate finance,
mortgages, capital market based lending, project loans, structured finance, wealth
management and digital lending, debt capital markets and syndication.

Aditya Birla Capital Limited (ABCL), the holding company, is a Universal Financial
Solutions Provider and one of the largest financial services players in India. It is
committed to serving the end-to-end financial needs of its retail and corporate
customers under a unified brand — Aditya Birla Capital. Delivering a wide range of
money solutions for protecting, investing and financing, Aditya Birla Capital serves
millions of customers across the country.

Apart from NBFC, ABCL has a significant presence across several business sectors
including asset management, life insurance, health insurance, housing finance, private
equity, general insurance broking, wealth management, broking, online personal
finance management and pension fund management.

Aditya Birla Capital, through its subsidiaries and joint ventures, manages aggregate
assets worth Rs. 2,613 billion and has a lending book of Rs. 411 billion as of June
30th, 2017.

he Aditya Birla Group: A Premium Global Corporation

A US $41 billion (Rs. 2,50,000 crore) corporation, the Aditya Birla Group is in the
League of Fortune 500. Anchored by an extraordinary force of over 120,000
employees, belonging to 42 nationalities. Over 50 per cent of its revenues flow from
its overseas operations spanning 36 countries.

33
The Aditya Birla Group has been ranked fourth in the world and first in Asia Pacific

in the ‘Top Companies for Leaders’ study 2011, conducted by Aon Hewitt, Fortune

Magazine and RBL (a strategic HR and leadership Advisory firm). The Group has

topped the Nielsen's Corporate Image Monitor 2014-15 and emerged as the Number

one corporate, the 'Best in Class', for the third consecutive year.

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 three biggest producers of primary aluminium in Asia, with the

largest single location copper smelter

 No.1 in viscose staple fibre

 No.1 in carbon black

 The fourth-largest producer of insulators

 The fifth-largest producer of acrylic fibre

 Among the top 5 cement producers globally

 Among the best energy-efficient fertiliser plants

 The largest Indian MNC with manufacturing operations in the USA, wherein

95 per cent of the workforce comprises of Americans

Aditya Birla Group – The Indian Scenario

 A top fashion (branded apparel) and lifestyle player

 The second-largest player in viscose filament yarn

 The largest producer in the chlor-alkali sector

 Among the top three mobile telephony companies

 A leading player in life insurance and asset management

34
  Among the top two supermarket chains in the retail business

Aditya Birla Group – Beyond Business

 Reaches out annually to 7.5 million people through the Aditya Birla Centre for

Community Initiatives and Rural Development, spearheaded by Mrs.

Rajashree Birla.

 Works in 5,000 villages globally.

 Focuses on: health-care, education, the girl child, sustainable livelihood,

women empowerment projects, infrastructure and espousing social reform.

 Runs 42 schools which provide quality education to 45,000 children. Of these

18,000 students belong to the underprivileged segment. Merit Scholarships are

given to 24,000 children from the interiors.

 Its 18 hospitals tend to more than a million villagers.

 Ongoing education, healthcare and sustainable livelihood projects in

Philippines, Thailand, Indonesia, Egypt, Korea and Brazil, lift thousands of

people out of poverty.

 Set up the Aditya Birla India Centre at the London Business School.

The Aditya Birla Group transcends conventional barriers of business because we care.

We believe it is our duty to facilitate inclusive growth as well.

Vision and Values

Our Vision

To be a premium global conglomerate, with a clear focus on each of the businesses.

Our Mission

To deliver superior value to our customers, shareholders, employees and society at

large.

35
 Our Values

 Integrity : Acting and taking decisions in a manner that is fair and honest.

Following the highest standards of professionalism and being recognised for

doing so. Integrity for us means not only financial and intellectual integrity,

but encompasses all other forms as are generally understood.

 Commitment : On the foundation of Integrity, doing all that is needed to

deliver value to all stakeholders. In the process, being accountable for our own

actions and decisions, those of our team and those in the part of the

organisation for which we are responsible.

 Passion : An energetic, intuitive zeal that arises from emotional engagement

with the organisation that makes work joyful and inspires each one to give his

or her best. A voluntary, spontaneous and relentless pursuit of goals and

objectives with the highest level of energy and enthusiasm.

 Seamlessness : Thinking and working together across functional groups,

hierarchies, businesses and geographies. Leveraging diverse competencies and

perspectives to garner the benefits of synergy while promoting organisational

unity through sharing and collaborative efforts.

 Speed : Responding to internal and external customers with a sense of

urgency. Continuously striving to finish before deadlines and choosing the

best rhythm to optimise organisational efficiencies.

Experience the 'Power of 5'

In 2014 we celebrated a decade of our Values. All our Businesses and all our people

have adopted these Values with understanding and enthusiasm. All of them have

made a consistent effort to make our Values, the heartbeat of our existence. In doing

36
so, not only the Values flourished but also our people and our Businesses. As we look

back, we have every reason to celebrate and every person to salute.

The “Power of 5” is our unique way of saluting, celebrating and cheering the

inspirational act of integrity, commitment, passion, seamlessness and speed by our

people, over the last decade. Through this platform we bring to you 25 inspiring

stories of our people who have exemplified living the values, which whilst selected at

random tell a powerful story of our voyage with Values. 

37
Our Corporate Logo. A brand new journey: A new mark for new

milestones
A major step that our iconic Group has taken under the stewardship of our

Chairman, Mr. Kumar Mangalam Birla, is to introduce a brand new avatar of our

Aditya Birla logo. To set the context, one thought it worthwhile to bring you

excerpts from our Chairman's address to all of us – 120,000 colleagues globally,

given that the new mark is reflective of his vision, first and foremost, and from

there it plays down the organization.

"Our new mark, for new milestones - It's all about us, our glorious past, our

unmatchable legacy, our ongoing success and our exciting journey into the

future. Our Aditya Birla logo in its brand new avatar that crystalizes our

fascinating story of change and transformation. We have changed and how.

What we were two decades ago when we launched our first Aditya Birla logo

and what we are today, is phenomenal. These 20 years have seen us evolve and

scale new heights. It has been truly a transformative journey. We have grown –

 FROM US $2 BILLION TO $41 BILLION

 FROM 8 COUNTRIES TO 36 COUNTRIES

 FROM 60,000 TO 120,000 COLLEAGUES

 FROM 8 NATIONALITIES TO 42 NATIONALITIES

 FROM AN AVERAGE AGE OF 56 YEARS TO 36 YEARS

 FROM 0.4% WOMEN IN THE MANAGERIAL CADRE TO 14%

TODAY

In essence, we are a much more dynamic, vibrant, youthful Group across five

continents. In keeping with this change, I felt the need to refresh our earlier logo.

Contemporising it made sense. It has served its time and helped build our Group

38
identity and lent heft to our Group's business identity.

Our new corporate mark is a fine blend of continuity and change. So it admirably

captures our legacy and moves on with modernity. 

Our energy derives from the sun, termed Aditya in our mythology, and so

closely linked with the name of our legendary leader and my father, Aditya

Vikram Birla. His persona evoked all that is positive in business and in life" 

– Mr. Kumar Mangalam Birla, Chairman.

The name Aditya Birla exemplifies integrity, quality, performance, perfection

and above all character. Our logo is the symbolic reflection of these traits. It is

the cornerstone of our Corporate Identity. It helps us leverage the unique Aditya

Birla brand and endows us with a distinctive visual image.

On the imagery and the nuances of the new mark: The bright colourful sun at the

base forms its solid foundation in a bolder and more forceful global version. The

crisscrossing sunbeams connote the vibrant internal and external movement of

energy. Like a prism, it refracts the multi-dimensional facets of our Group. A

deep sense of simplicity, solidity, permanence. Vim and vigour. Hope. Our

timeless values. Our boundless optimism. And all these culminate in the

dramatic ascension of our Group, rising in perpetuity, reaching higher peaks.

To sum up, our new mark embeds a sense of pride, unity and belongingness in

all of us. In our Chairman's words again: "I look upon it as our best calling card

as we move onto a brave new horizon, big on growth, based on strong

fundamentals, and as OneABG family". 

- Dr. Pragnya Ram, as the Chief Custodian of the Aditya Birla logo

39
Milestones 

Established in 1857 in the tiny village of Pilani, Rajasthan, the Aditya Birla Group

took shape when Seth Shiv Narayan Birla ventured into cotton trading. Today, with

operations across 36 countries revenues of US$41 billion, the Group is a leading

player in aluminium, cement manufacturing, viscose staple fibre, chemicals, copper,

insurance services, telecom, branded apparels, fertilisers, software, viscose staple

yarn, carbon black and insulators. We trace the highlights of this remarkable journey,

starting from the present:

2016

Business

 Novelis was recently recognised among the best companies in Brazil by Época

magazine. The special edition of the magazine, called Época Negócios 360°,

ranked Novelis in the top five in four categories – HR practices, innovation,

vision of the future and social responsibility.

 Novelis was named a Top Supplier in 2015 by both Automotive News’ Global

and North American lists for supplying flat-rolled aluminum sheet for multiple

automotive applications, including vehicle structures and body panels.

 AV Cell and AV Nackawic (Pulp & Fibre business) have emerged among the

top 25 employers.

Corporate Social Responsibility

 Mrs. Rajashree Birla honoured with the Lifetime Achievement Award 2015-

2016 by the Ladies’ Wing of the Indian Merchants’ Chamber Mrs. Rajashree

Birla honoured with the Lifetime Achievement Award 2015-2016 by the

Ladies’ Wing of Indian Merchants’ Chamber

40
Awards

 Mr. Kumar Mangalam Birla named the Chairman of the Board of Governors

of the prestigious Indian Institute of Management Ahmedabad (IIMA).

 Indian Rayon, a division of Aditya Birla Nuvo, bagged the coveted Asian CSR

Award in the category of poverty alleviation.

 Indo Gulf Fertilisers (a division of Aditya Birla Nuvo) bags the Indian

Chemical Council’s Award for Social Responsibility.

 abof.com wins debutant e-retailer 2015 at the Indian Retail Congress 2016.

 abof.com emerges as the winner in the top 5 impactful debut brands category.

 abof.com wins Customer Intimacy and Service Excellence Company of the

Year 2016 at the 10th Express Logistics & Supply Chain Awards.

 Aditya Birla Retail Limited won the ‘hypermarket chain of the year’ award at

the Images Retail Awards for the second year in a row.

 Aditya Birla Financial Services Group (ABFSG) received a Certificate of

Achievement from the Society for Human Resource Management (SHRM) in

the category of ‘Excellence in Developing Leaders of Tomorrow’.

 Aditya Birla Financial Services Group’s Mutual Fund won Silver at Maddy’s

2016 in the category ‘In-App advertising’ for their investor empowerment

campaign, ‘Jaanoge Tabhi Toh Maanoge’.

 Birla Carbon was awarded Gold Recognition Level in sustainability

performance pursuant to the survey conducted by EcoVadis.

 “#UnboxWithLiva” won a silver in the 'Best use of blogs' at the Indian Digital

Media Awards, 2016, given by Exchange 4 Media.

41
  Grasim’s Harihar plant received the Frost & Sullivan Sustainability 4.0

Challengers Award in the large business category while the Kharach unit was

recognised with the “Certificate of Merit”.

 Manufacturing Today bestowed its Excellence in Technology Award on

Grasim’s Kharach plant.

 Thai Rayon’s plant at Saraburi received an overwhelming applause from the

Thailand Institute of Occupational Safety and Health for its outstanding

performance in safety.

 General Motors won the 2016 Altair Enlighten Award for Innovation in

Automotive Vehicle Lightweighting for the Cadillac CT6. The automobile,

which achieved 220 lbs in weight savings, is 62 per cent aluminum, and this

has been supplied by Novelis North America and Novelis Asia.

 Birla Carbon is credited for publishing ‘Asia’s Most Transparent Report’ and

‘Asia’s Best Materiality Report’. Birla Carbon also received commendation

certificates for ‘Asia’s Best Supply Chain Reporting’, ‘Asia’s Best

Community Reporting’ and ‘Asia’s Best Environment Reporting’ at the Asia

Sustainability Reporting Awards, organised by CSRWorks Events, an arm of

CSRWorks International.

2015

Business

 Aditya Birla Nuvo Limited consolidates its Branded Apparels Businesses

under listed subsidiary — Pantaloons Fashion & Retail Limited (PFRL). The

Board of PFRL approves PFRL to be renamed as ‘Aditya Birla Fashion &

Retail Limited’ (“ABFRL”).

42
Mergers and Acquisitions

 The Board of Directors of Grasim Industries Limited approves the proposed

merger of Aditya Birla Chemicals (India) Limited, an Aditya Birla Group

company, with Grasim.

Corporate Social Responsibility

 ‘Champion of Humanity’ award bestowed upon Mrs. Rajashree Birla by the

Hindustan Chamber of Commerce

Awards

 Under the aegis of Egypt’s Prime Minister, The Federation of Egyptian

Industries - Environmental Compliance Office and Sustainable Development

(ECO FEI), conferred the ‘Pioneer Businesses to Achieve Sustainable

Development 2015 Award’ upon Birla Carbon’s Alexandria Carbon Black.

 For being an exemplar in energy efficiency, Birla Carbon’s Tiszaújváros plant

in Hungary was accorded the Werner von Siemens Efficiency award.

 The Minister of Industry of Thailand honours Thai Carbon Black with the

'National QC Promotion Award 2015' in recognition of its outstanding

commitment to quality.

 Birla Carbon’s Korean plant was hailed by the Korean Employment and Labor

Minister, Mr. Lee Ki-Kweon as 'The Distinguished Contributor of Industrial

Accident Prevention Award.'

 Idea Cellular wins Silver and Bronze for Idea’s ‘No Ullu Banaoing’ campaign

at the Asian Marketing Effectiveness Awards 2015 in Singapore.

 Idea wins ‘Mobile Data Service Provider of the Year and Most Innovative

Telecom Service Provider of the Year’ award at Frost & Sullivan Asia Pacific

ICT Awards 2015.

43
 Birla Sun Life Asset Management Company wins ‘Best Fund House – Debt

category’ and ‘Best Intermediate Bond Fund' award for 'Birla Sun Life

Dynamic Bond Fund’ at the Morningstar Awards 2015. Morningstar is a

leading global investment research and investment management firm.

 Birla Sun Life Insurance Company’s ‘Khud Ko Kar Buland’ marketing

campaign wins the ‘Best Screenplay’ award at the 5th Dadasaheb Phalke Film

Festival 2015.

 Mr. Kumar Mangalam Birla is bestowed with 'Global Leadership Award' of

the US India Business Council (USIBC), at the 39th Anniversary Leadership

Summit at Washington DC.

 Mr. Kumar Mangalam Birla is awarded with 'Hello Hall of Fame Award –

Business Leader of the Year' by the World Wide Media Group (WWM), a

joint venture between the Times Group and BBC Worldwide.

 Aditya Birla Group – Indonesia (Fibre and Spinning Business) is named one

of the 'Best Employers in Indonesia, 2015' in the 8th edition of Aon Hewitt’s

Best Employers study in Asia.

 Mr. Himanshu Kapania, Managing Director, Idea Cellular, is named

'Outstanding CEO of the Year' in Master Category at CEO India Awards 2015.

 UltraTech’s Vikram Cement (Madhya Pradesh) wins the prestigious IMC

Ramkrishna Bajaj National Quality Performance Excellence Trophy.

 Aditya Birla Nuvo’s Indian Rayon wins Golden Peacock Award for HR

Excellence and Golden Peacock Environmental Management Award;

GreenTech Silver Award for Outstanding Achievement for Best Strategy in

HR and GreenTech Silver Award for Outstanding Achievement in Safety.

44
 Idea Cellular wins three awards at the Effies — 2 gold and a silver — Gold in

the Services category (Telecom) for 'No Ullu Banaoing', Gold For Best

Ongoing Campaign – 'An Idea can change your life' and Silver in the category

– Integrated Advertising Campaign (for a 360 approach on the campaign

across all media). It also won ET Telecom Award for the Best Marketing

Campaign of the year for “No Ullu Banaoing”.

 Idea Cellular wins award in 'Analytics' category for the implementation of

end-to-end Campaign Management solution at Business Technology IT

Awards.

 Aditya Birla Financial Services wins CIO Impact Award 2015 from Frost &

Sullivan USA and Best in Class – Cloud Computing category for 2015; wins

two Midas Awards 2014; Silver at Emvies from the Advertising Club, India;

three Bronze medals at Goafest Creative & Media Abby Awards; two Bronze

and one Silver at DMAi Award and Silver for its marketing campaign at

Effies.

 Aditya Birla Money wins Best Performing National Financial Advisors award

at the CNBC TV 18 Financial Advisor Award.

 Birla Sun Life Insurance’s 'My Solutions' wins at the Celent Model Insurer

Asia Awards in Digital and Omni-channel category; Golden Peacock Award

for Business Excellence.

 Birla Sun Life Mutual Fund wins Morningstar Award 2015 for the ‘Best Fund

House – Debt' and 'Best Intermediate Bond Fund'; the Asset Management –

House of the Year at Money Today, FPCIL Awards.

45
2014

Business

 Aditya Birla Group is ranked number 1 in the Nielsen Corporate Image

Monitor 2013-14, for the second year in a row, across the six pillars of

corporate performance – products and services, vision and leadership,

workplace environment, financial performance, operating style and social

responsibility.

Mergers and Acquisitions

 The Board of Directors of UltraTech Cement, the largest cement company in

India, approves the acquisition of cement units of Jaiprakash Associates

Limited in Madhya Pradesh in December. The enterprise value of this

acquisition was agreed at Rs.5,400 crore.

 Aditya Birla Chemicals (India) Limited (ABCIL) acquires the chlor-alkali

division of Jayshree Chemicals Limited in September.

 Birla Sun Life Asset Management, joint venture between Aditya Birla Group

and Sun Life Financial Inc., acquires Mutual Fund Assets of ING Investment

in May.

CSR

 Mrs. Rajashree Birla accorded the CSR Leader award — a Jury award — at

the CEO India Awards 2014.

 The Fine Arts Society (FAS), Mumbai, confers the 'FAS Stree Ratna Award

2014' on Mrs. Rajashree Birla.

 Mrs. Rajashree Birla receives the 'Exceptional Leader – Social and Rural

Development' award from the ASSOCHAM Ladies League

46
  The Corporate Social Responsibility (CSR) team at Grasim Industries Limited

(Grasim), a global leader in viscose staple fibre manufacturing, wins the first

'CSR Activist of the Year Award' instituted by the Federation of Madhya

Pradesh Chamber of Commerce & Industries for its work in uplifting the

marginalised.

 Vikram Woollens, a unit of Grasim Industries Limited, is named the overall

winner at the 'Amity CSR Conclave 2013'.

 Novelis is honoured with 'Best Report' award in PR Daily's 2013 CSR

Awards.

 The CSR team at Indian Rayon, Veraval is recognised with the 'Greentech

CSR Award' for a sustainable development project empowering 400

marginalised women through extensive training in tailoring.

Awards

 Idea Cellular wins ET Telecom award 2014 in Enterprise category for the

second year in succession for smart cab solution.

 Birla Carbon (Brazil) is named 'Best Carbon Black Supplier Company', by

virtue of which it was received 'The Top Rubber 2014', title by Borracha

Atual, a key trade magazine in the rubber industry.

 Novelis is honoured as the winner of the Minister of Environment Award at

the 2014 Korea Lifestyle of Health and Sustainability (LOHAS) Awards.

 Novelis wins Edison Green Award Silver Trophy (April 2014); Aluminium

Industry Leadership Award at Platts Global Metals Awards (May 2014) and

Clean Tech Innovation Award at Metro Atlanta Chamber E3 Awards (May

2014).

47
 Aditya Birla Money Mart wins Best Financial Advisor (Retail) award at

CNBC TV18 Financial Advisor Award 2013-14.

 Novelis, a leading producer of rolled aluminium, is honoured with Industry

Leadership award - Aluminum at Platts Global Metals Awards 2014. The

award recognises Novelis' decisive action to transform its business,

demonstrated leadership as a first-mover and willingness to take risks by

making fundamental changes in the way it operates.

 Dr. Santrupt Misra is awarded 'Global Leader of the Year' at the CEO India

awards 2014.

 The American Chamber of Commerce in Thailand (AMCHAM) bestows the

'AMCHAM Award' on the Aditya Birla Knowledge Centre, the first centre of

its kind set up by the Group in South East Asia to provide community service

through vocational training.

 Birla White (UltraTech), the largest cement company in India wins the

'Golden Peacock Innovation Management Award 2013'.

 Novelis is awarded the 'Climate Leadership Award' by the US Environmental

Protection Agency for exemplary leadership in reducing carbon pollution and

addressing climate change.

 Aditya Birla Financial Services (ABFS), one of India’s reputed non-banking

financial companies, is given the 'Excellence Award' by the Institute of

Internal Auditors India – Bombay Chapter, for use of the most innovative

processes in conducting branch internal audit.

 Birla Sun Life Asset Management Company is recognised as the 'Most

Admired AMC of the Year' in the BFSI Category by Star of India Awards.

48
  ABFS wins the 'Best Marketing Campaign Birla Sun Life Insurance' at the

Effies, the Indian chapter of Effies International, which recognises marketing

campaigns for their effectiveness in the market.

 ABFS wins four Gold Midas awards between Birla Sun Life Insurance, Birla

Sun Life Mutual Fund and Aditya Birla Money at the Midas Awards, New

York, the only international platform that recognises excellence in financial

advertising and marketing. The company's insurance business bags the Grand

Midas at the event.

 more.Megastore is chosen as the winner under the 'Food & Grocery Retailer'

category - 'Images Most Admired Food & Grocery Retailer of the Year, Large

Format' at the 7th edition of the Coca Cola Golden Spoon Awards 2014.

2013

Business

 Aditya Birla Group tops Nielsen's Corporate Image Monitor 2012-13 that

measures the reputation of 40 leading corporates in the country across sectors.

The Group emerged 'Best in Class' across the six pillars of corporate image

comprising product and service quality, vision and leadership, workplace

management, financial performance, operating style and social responsibility.

 Birla White cement, an UltraTech brand, completes 25 years of operations.

 The Government of India releases a commemorative postage stamp honouring

the visionary Mr. Aditya Vikram Birla as India's 'First Global Industrialist'.

The special stamp is released by the President of India, Mr. Pranab Mukherjee,

at Rashtrapati Bhavan in New Delhi on 14th January.

49
Mergers and Acquisitions

 Aditya Birla Chemicals (Thailand) Limited acquires 100 per cent equity stake

in two epoxy companies based in Germany, i.e., Chemicals & Technologies

for Polymers (CTP GmbH) and 50 per cent equity stake in Chemicals &

Technologies for Polymers Advanced Materials (CTP AM GmbH) in

Germany through its 100 per cent owned German subsidiary Aditya Birla

Chemicals (Europe) GmbH.

 UltraTech Cement acquires the Gujarat Cement Unit of Jaypee Cement

Corporation.

 Aditya Birla Chemicals (India) Limited acquires the chlor-alkali and

phosphoric acid divisions of Solaris Chemtech Industries through ABCIL for

Rs.153 crore in May.

 The chlor-alkali and phosphoric acid divisions of Solaris Chemtech Industries

are acquired by the Aditya Birla Group through ABCIL in May. The

acquisition makes ABCIL the largest producer of chlor-alkali in India.

Corporate Social Responsibility

 Aditya Birla Nuvo Ltd.- Madura Clothing- wins the 2013 Golden Peacock

Award for Corporate Social Responsibility.

 UltraTech wins the Intel-AIM Corporate Responsibility Award — Governance

and Society: Asian CSR Awards 2013, for its work among the underprivileged

and highest standards of governance.

 Mrs. Rajashree Birla is awarded the Godfrey Phillips 'Social Lifetime

Achievement Award' in April.

 Mrs. Rajashree Birla is conferred with the Giants International 'Lifetime

Achievement Award' in April.

50
Awards

 Mr. Kumar Mangalam Birla is chosen 'Business Leader of the Year' at the

Economic Times Awards for Corporate Excellence 2012-13, becoming, in the

process, the first corporate leader to win the award twice in 10 years. His

previous win was in 2003.

 Mr. Kumar Mangalam Birla, Aditya Birla Group Chairman, is presented with

the "Most Inspiring Leader Award 2012" by NDTV.

 UltraTech's Birla White (Jodhpur) receives the IMC Ramkrishna Bajaj

National Quality Award – Performance Excellence Trophy 2012.

 Aditya Birla Nuvo's Indo Gulf wins the Platinum Award for Excellence in

Manufacturing Processes in the Medium Business Sector at the Economic

Times India Manufacturing Excellence Awards (IMEA).

 UltraTech Cement wins three awards at the Economic Times India

Manufacturing Excellence Awards (IMEA) — Vikram Cement Works (Khor)

won the Gold award; Rawan Cement Works (Raipur) bagged the

 Gold Certificate of Merit; and Awarpur Cement Works (Maharashtra)

received the Silver Certificate of Merit.

 Hindalco Industries (Hindalco), the world’s largest aluminium rolling

company, receives the Golden Peacock National Quality Award for 2012.

 ABFS receives the Bronze award at the International ECHO Awards 2012 in

Las Vegas – equivalent to the Oscars of Direct Marketing – and a Gold, Silver

and Merit certificate at the Midas Awards 2012, New York. The Midas

Awards honours the world's best financial marketing and advertising

campaigns. The company also wins a Bronze at Effie 2012 for its effective

marketing campaign.ABFS wins the Silver award at the Emvies 2012. The

51
 Emvies honour measurable and significant contributions in the field of Indian

media.

 For the second year in a row, Idea wins the 'The Best Brand Campaign' award

at the World Communications Awards 2012 in London for its 'Population

Control' (3G pe busy) campaign. The same campaign wins Gold at APPIES

2012 in Singapore.

 The mobile number portability campaign - No Idea, Get Idea - wins the award

for 'Excellence in Marketing' at the Economic Times Telecom Awards 2012.

 Aditya Birla Minacs wins Bronze in the 'Most Customer Friendly Company of

the Year' category at the Best in Biz awards from among more than 400

companies from nearly every major industry.

 For the second time in a row, Aditya Birla Minacs' finance and accounting

team wins the Asian Leadership Award for 'Quality and Operations

Excellence' for its innovative Q-Score Model.

 The NDTV Profit Business Leadership Award jury rates Idea Cellular as the

'Best in Class' telecom company.

 'Asian Centre Awards 2012 – Awards for Corporate Governance,

Sustainability & Leadership' commends the Aditya Birla Group as the

'Company with Best CSR and Sustainability Practices'.

2012

Business

 Aditya Birla Group makes a financial investment of 27.5 per cent in Living

Media India Limited (India Today Group) through a private investment

company in May.

52
  Aditya Birla Group is at the top of the league among 'most loved companies' at

the 11th edition of Business Today's Best Companies survey. The survey,

conducted online by Indicus Analytics from 6 September to 14 November,

2011, drew 6,176 responses from 323 cities. More than 80 per cent of the

respondents were between 24 and 35 years of age.

Mergers and Acquisitions

 Aditya Birla Group acquires Terrace Bay Pulp Mill in North Western Ontario

in July 2012. Terrace Bay is considered an anchor mill due to its location and

its significant consumption of residual chips produced by regional sawmills.

 Aditya Birla Nuvo Limited (ABNL), largest manufacturer of linen fabric in

India, acquires Future Group's Pantaloon format, a part of Pantaloon Retail

(India) Limited (PRIL). The acquisition is in line with the Group's strategic

intent to create the largest integrated branded fashion player in the country.

Awards

 Aditya Birla Group Chairman, Mr. Kumar Mangalam Birla presented with

Forbes India Leadership Awards' flagship award – 'Entrepreneur of the Year'

in October.

 Aditya Birla Group Chairman, Mr. Kumar Mangalam Birla is honoured with

the 'NASSCOM Global Business Leader Award, 2012' at the NASSCOM

India-Global Leadership Forum held in Mumbai.

 The Asian Centre for Corporate Governance and Sustainability bestowed the

'Transformational Leader Award' upon Aditya Birla Group Chairman, Mr.

Kumar Mangalam Birla in recognition of his extraordinary contribution

towards setting up corporate governance standards in India, for authoring the

53
 first ever SEBI-initiated Corporate Governance Report in India and for

benchmarkable governance standards in the Aditya Birla Group companies.

 Aditya Birla Group wins the Economic Times Corporate Citizen Award —

2011-12. The award honours the contribution to public good through

commitment to critical social causes that influence the lives of thousands of

needy Indians. The Group had won this coveted award for the first time in

2002.

 Novelis is accorded with the American Metal Market Environmental

Responsibility and Stewardship Award 2012; three European Aluminium

Awards for Innovation at the world's biggest Aluminium Trade Show; a Jury

Prize for the Titanic Belfast aluminium facade panels; and a Special Prize,

Surface Treatment for its anti-graffiti aluminium surface – Clearky 105.

 The Novelis Global Automotive team receives a Special Prize, rolling, for its

three-piece tailored welded blank for Mercedes SL.

 The Aditya Birla Memorial Hospital is received recognition for

'Performance/Excellence Trophy for its Compassionate Quality Healthcare' by

the Indian Merchant Chambers' Ramkrishna Bajaj National Quality Awards

Committee in Mumbai, India.

 Birla White, a division of UltraTech Cement – the largest cement company in

India, is presented with the ASSOCHAM CSR Excellence Award.

 CNBC TV18, one of the top business TV Channels in India, chooses the deal

between the Aditya Birla Group and Columbian Chemicals as the 'Best deal in

the M&A category'.

54
2011

Business

 Aditya Birla Group is ranked No.4 in the list of global top companies for

leaders and No.1 in Asia Pacific for 2011 in a study conducted by Aon Hewitt,

Fortune magazine and RBL, a strategic HR and leadership advisory firm.

Mergers and Acquisitions

 Aditya Birla Group acquires Domsjö Fabriker, a leading Swedish speciality

pulp and biorefinery company. Domsjö, with its cutting-edge technology and

production process coupled with a state-of-the-art biorefinery, adds significant

value to the Group's pulp and fibre operations.

 Birla Carbon, a manufacturer and supplier of high-quality carbon black,

acquires Atlanta-headquartered Columbian Chemicals Company, thereby

becoming the world’s largest carbon black manufacturer by volume.

 ABCIL acquires the Chloro Chemicals Division (CCD) of Kanoria Chemicals

& Industries Limited in April. The acquisition strengthens Aditya Birla

Group's position as the country's largest producer of chlor-alkali.

CSR

 The Government of India 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

bestowed upon on Mrs. Birla at a special ceremony on 1 April.

 The 'Corporate Citizen of the Year' award is presented to the Aditya Birla

Group by the Public Relations Council of India for "its work amidst the rural

poor in the country and for setting a fine example for other corporates". Mrs.

55
 Rajashree Birla receives the award from Mr. H. K. Dua, Member of

Parliament and one of the most distinguished editors of the country.

 Mrs. Rajashree Birla is presented the All India Management Association

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

Awards

 Vikram Cement Works, a division of UltraTech Cement, wins the IMC

Ramkrishna Bajaj National Quality Award for 2010-11.

2010

Business

 Hindalco is ranked ninth across industries on Forbes Asia's 'Fab 50

Companies' list.

Mergers and Acquisitions

 UltraTech Cement acquires a majority stake and management control in

Dubai-based Star Cement Company, LLC (Star Cement). Star Cement owns

cement plants in UAE, Bahrain and Bangladesh with a total capacity of three

million tonnes annually. This acquisition gives the Aditya Birla Group a

strong foothold in the Middle East.

Corporate Social Responsibility

 Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community

Initiatives and Rural Development receives the 'Hello Hall of Fame' award for

'Exemplary Philanthropist of the year' from Worldwide Media Group's 'Hello'

celebrity journal.

 UltraTech Cement's 'Concern for Health' project is awarded the Asian

Corporate Social Responsibility award by the Asian Institute of Management

Centre for Corporate Social Responsibility.

56
  Hindalco and Birla White are declared winners at the Golden Peacock Awards

for Corporate Social Responsibility 2010.

 Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community

Initiatives and Rural Development, receives the Global Golden Peacock Life

Time Achievement Award for Community Development 2010 for

'Outstanding Contribution towards Community Development and Social

Welfare'.

 The Aditya Birla Centre for Community Initiatives and Rural Development

teams up with Columbia University's research centre — the Columbia Global

Centres' 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 the Amity International Business School's 'Amity Corporate

Excellence Award for Corporate Social Responsibility'.

Awards

 Aditya Birla Group Chairman, Mr. Kumar Mangalam Birla wins the AIMA

Managing India Award 2010 for 'Business Leader of the Year'. AIMA confers

these awards to "exemplary leaders who have made a fundamental difference".

 Indian Rayon, Veraval, (a division of Aditya Birla Nuvo) receives The Rajiv

Gandhi Environment Award for clean technologies by the Ministry of

Environment and Forests, Government of India.

 Vikram Cement Works wins the National Award for Prevention of Pollution

for 2009-2010 under the cement category for meeting pollution prevention

goals and taking substantial and consistent steps for environmental

improvement. The company also wins the Rajiv Gandhi Environment Award

57
 for Clean Technology for 2009-2010 and the State Level Environment Award

(Plant) for 2009-2010.

2009

Mergers and Acquisitions

 Aditya Birla Financial Services Group (ABFSG acquires Apollo Sindhoori

Capital, a leading brokerage firm in India.

Corporate Social Responsibility

 Mrs. Rajashree Birla is conferred with The Rajiv Gandhi Award for Eminence

in Social Field by Mr. Jyotiraditya Scindia, Union Minister of State —

Commerce and Industry, on 19 August. The award recognises Mrs. Birla's

path-breaking work for the poor, more so in India's villages, carried out

through the Aditya Birla Centre for Community Initiatives and Rural

Development.

 Grasim's pulp and fibre division wins the Asian CSR award, Asia's Premier

CSR Awards programme. The awards is a project of the Asian Institute of

Management, Manila.

 Hindalco is accorded with the Reader's Digest Pegasus Star Award in

recognition of the company's corporate leadership for social responsibility and

sustainable development initiatives. Mrs. Rajashree Birla, who spearheads all

the social projects of the Aditya Birla Group, receives the coveted award on

behalf of Hindalco from Mr. Arun Jaitley, Member of Parliament, Rajya

Sabha, on 21 January in Delhi.

Awards

 Idea Cellular wins the Economic Times' 'Emerging Company of the Year

Award for 2009'.

58
  The Ministry of Labor and Social Welfare, Government of Thailand, confers

the 'Best Labor Relations and Welfare Award, 2009' on Indo Thai Synthetic

Company Limited.

 Birla Sun Life Mutual Fund, a part of ABFS, is named 'The Asset

Management Company of the Year, India, by the Hong Kong based magazine

The Asset in the country awards category of their Triple A Investment

Performance Awards 2009.

 CNBC TV18 Crisil recognises Birla Sun Life Mutual Fund as 'The Mutual

Fund House of the Year' in 2008 and 2009 (for 2007 and 2008), creating

history as the only fund house to have won this recognition for two

consecutive years.

 The Birla Sun Life Equity-Linked FMP wins the 'Best Local Currency

Structured Product – India' at the Triple A Investment Performance Awards

2009.

 Birla Sun Life Mutual Fund is named the best 'Onshore Fund House — India'

by Hong Kong-based magazine The Asian Investor at the Investment

Performance Awards 2009.

 Vikram Cement and Aditya Cement win the 'Social Awareness Award 2008-

09' from the Federation of Indian Mineral and Industries.

 The State Level Environment Award for mines was won by Vikram Cement

Works for the year 2008-09.

2008

Mergers and Acquisitions

 Aditya Birla Group acquires a 100 per cent stake in Birla Jingwei Fibres

Company Limited.

59
  Aditya Birla Group acquires Spice Communications for US$1.8 billion.

Corporate Social Responsibility

 Mrs. Rajashree Birla is awarded with the 'Rotary International Polio

Eradication Champion Award' by the President of India, Mrs. Pratibha Patil at

a function at Rashtrapati Bhavan in New Delhi.

2007

Mergers and Acquisitions

 Hindalco acquires Atlanta-headquartered Novelis Inc (Novelis). With the

addition of Novelis, Hindalco becomes the world's largest aluminium rolling

company, one of the biggest producers of primary aluminium in Asia and a

leading copper producer in India.

 Aditya Birla Group acquires a majority shareholding in Trinethra Superretail

Limited.

Corporate Social Responsibility

 Aditya Birla Group is honoured with India Today Group's Reader's Digest

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

society. The award is received by Mrs. Rajashree Birla, Chairperson, Aditya

Birla Centre for Community Initiatives and Rural Development, at the Pegasus

Corporate Social Responsibility Awards 2007

Awards

 Hindalco is awarded the CII-Sorabji Green Business Centre 'National Award

for Excellence in Water Management 2007'.

2006

Business

 Hindalco enters into a joint venture with Almex USA Inc.

60
  Grasim, India; Thai Rayon Public Company Limited, Thailand; and P.T. Indo

Bharat Rayon, Indonesia, form a joint venture with Hubei Jing Wei Chemical

Fibre Company, China, for manufacturing viscose staple fibre

Mergers and Acquisitions

 TransWorks Information Services, a subsidiary of ABNL, acquires Canada's

leading BPO provider, Minacs Worldwide.

Awards

 Hindalco is awarded the Greentech Safety Silver Award for its outstanding

safety performance during 2005-06.

2005

Business

 Indian Rayon is re-christened Aditya Birla Nuvo.

 Aditya Birla Group sets up a world-class aluminium project in Orissa.

 Aditya Birla Group signs a framework agreement to acquire St Anne

Nackawic Pulp Mill, Canada.

Mergers and Acquisitions

 Aditya Birla Group acquires Philippines-based Pan Century Surfactants in

September.

2004

Business

 Aditya Birla Group Board is reconstituted with Mr. Kumar Mangalam Birla

taking over as Chairman.

 A scheme of arrangement is announced to merge Indal with Hindalco.

 Indian Rayon completes its brownfield expansion of 40,000 tpa at Hi-Tech

Carbon, Gummidipundi, taking its total capacity to 1,60,000 tpa.

61
Mergers and Acquisitions

 The process of demerging L&T's cement business is completed. Grasim

acquires a controlling stake in the newly-formed company — UltraTech after

its open offer is taken up.

Corporate Social Responsibility

 Grasim, Nagda receives the FICCI Annual Award 2003-2004 for corporate

initiative in rural development.

 ABCIL, Rehla, Jharkhand, receives the FICCI Annual Award 2003-2004 for

its corporate initiatives in family welfare.

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

Development'.

Awards

 Hindalco receives the India CFO Award 2004 for excellence in finance in a

large corporate.

 Indo Gulf wins the Deming Award.

2003

Business

 Aditya Birla Group Board is reconstituted with Mr. Kumar Mangalam Birla

taking over as Chairman.

 Mr. Kumar Managalam Birla was earlier chosen The Economic Times'

Business Leader of the Year.

 Aditya Birla Group is ranked 16th in India's first ever 'Great Places to Work'

survey published in Businessworld magazine. The Group's joint venture

company, Birla Sun Life Insurance, is ranked 9th in the same study.

62
  Liaoning Birla Carbon, Aditya Birla Group's first carbon black company in

China, is incorporated.

 Aditya Birla Group is ranked 20th in a study on the 'Best Employers in India'

conducted by Hewitt Associates and Business Today.

 Indian Rayon launches a joint venture with Japan-based NGK Insulators

Limited christening it 'Birla NGK Insulators Private Limited'.

 Birla Copper, a strategic business unit of Hindalco, is accorded London Metal

Exchange (LME) registration. Its copper cathodes are approved as 'Grade A'

by LME.

Mergers and Acquisitions

 Aditya Birla Group acquires Indonesia-based PT Indo Raya Kimia in January.

 Aditya Birla Group acquires the Mount Gordon Copper mines in Australia,

another strategic step in becoming a globally competitive copper player.

 Indian Rayon acquires TransWorks, a leading Indian ITES / BPO company.

 The board of engineering major Larsen & Toubro Limited (L&T) decide to

demerge its cement business into a separate cement company (CemCo). L&T

will retain 20 per cent of its equity in the newly formed company and the

balance will be distributed to its shareholders in proportion to their

shareholding in L&T. Consequently, Grasim would acquire an 8.5 per cent

equity stake from L&T and then make an open offer for 30 per cent of the

equity of CemCo to take over the management control of the company.

 Aditya Birla Group divests its entire 37.38 per cent equity stake in Mangalore

Refineries and Petrochemicals Limited (MRPL) to the Oil and Natural Gas

Corporation.

63
  Birla Copper acquires Nifty Copper Mines in Australia as part of a strategic

plan to make the company an integrated copper producer, and source raw

material for its copper smelter at Dahej, Gujarat.

Corporate Social Responsibility

 Hindalco receives the Asian CSR Award for its 'Rural Poverty Alleviation

Programme'. The Asian CSR Awards are Asia's premier awards programme

on corporate social responsibility.

2002

 Aditya Birla Group receives the Corporate Citizen of the Year award from

The Economic Times.

 Grasim board approves an open offer for purchase up to 20 per cent of L&T’s

equity in accordance with the provisions and guidelines issued by the

Securities & Exchange Board of India Regulations, 1997.

 Grasim increases its stake in L&T to 14.15 per cent (351.84 lakh shares).

 Aditya Birla Group undertakes corporate restructuring of Hindalco and Indo

Gulf. The fertiliser business of Indo Gulf is demerged into a separate company

called Indo Gulf Fertilisers. Indo Gulf's copper business is merged with

Hindalco, creating a non-ferrous metals powerhouse.

 Grasim divests its Gwalior unit to Melodeon Exports Limited, and

consolidates its textile operations at a single location in Bhiwani, MP, to

manufacture both 'Grasim' and 'Graviera' brands.

 PSI Data Systems acquires Birla Technologies Limited, bringing the Group IT

services business under one umbrella.

64
  Indal acquires a controlling stake in Anapurna Foils Limited (AFL) to

augment its position in the foil and packaging sectors. Subsequently AFL is

merged with Indal.

2001

 Grasim acquires 2.50 crore shares – representing just over 10 per cent of the

equity – in L&T from Reliance Industries Limited.

 Birla Consultancy & Software Services is spun off into a separate entity called

Birla Technologies Limited.

 Indian Rayon acquires a stake in PSI Data Systems in one of the largest cash

transactions in the Indian technology sector.

 Grasim closes its pulp plant at Mavoor as part of its restructuring initiatives.

2000

 Indian Rayon acquires Madura Garments and selected overseas brand rights,

taking the Aditya Birla Group to the top of the league in the branded apparels

sector.

 The Group forays into e-business through a strategic alliance of its software

arm — Birla Consultancy Software and Services (BCSS) with Lawson

Software (USA).

 'Gyanodaya', the Institute of Management Learning of the Aditya Birla Group,

is inaugurated.

 Hindalco acquires Indal. Indal’s board is reconstituted with Mr. Kumar

Mangalam Birla becoming its new Chairman. The Group holding goes up to

74.6 per cent and further increases to 96 per cent in FY03.

 The Insurance Regulatory Development Authority (IRDA) grants registration

in principle to Birla Sun Life Insurance Company.

65
  Indian Rayon acquires major world rights for international apparel brands

Louis Philippe, Allen Solly and Peter England.

 Aditya Birla Group announces its intention to launch a 450 MW 'Green Power

Project' in Karnataka.

 The merger of Birla AT&T and Tata Cellular is completed.

1999

 Aditya Birla Group inks a joint venture with Canada-based financial services

major Sun Life as part of the overall restructuring of the Group's financial

services business.

1998

 Aditya Birla Group forms a 50:50 joint venture company with Canada-based

Tembec Inc. called A.V. Cell Inc to supply pulp for the Group's VSF

operations.

 Grasim acquires Dharani Cement and Shree Digvijay Cement to consolidate

the Group's leadership position in cement.

 The cement businesses of Indian Rayon and Grasim are consolidated into a

single division of Grasim – the biggest restructuring ever by any corporate

entity in India.

 The Group forays into copper with the commissioning of Indo Gulf's copper

smelter – the largest of its kind in India.

 Thai Organic Chemicals begins commercial operations of chlor-alkali and

epichlorohydrin.

1996

 Aditya Birla Group launches a new corporate logo – Aditya, the rising sun – to

honour the memory of the late Aditya Birla.

66
  All Group companies are consolidated under the umbrella of the Aditya Birla

Group, led by Mr. Kumar Mangalam Birla.

 P.T. Indo Liberty Textiles is incorporated to manufacture yarn in Indonesia.

1995

 Aditya Birla Group enters the telecommunications sector through a joint

venture with AT&T (USA).

 Thai Sulphites & Chemicals is incorporated to manufacture sodium sulphite

and sodium metabisulphite.

1994

 The Birla Growth Fund is renamed Birla Global Finance Limited as its span of

operations expands.

 Alexandria Carbon Black, the Group's first joint venture with the Egyptian

government, is established.

1992

 Thai Epoxy and Allied Products commences production of epoxy resins in

Thailand.

1991

 Pan Century Oleo chemicals commences production of fatty acids and

glycerine in Malaysia.

1990

 Mr. Kumar Mangalam Birla gets actively involved in the Group's operations.

1989

 Thai Peroxide commences manufacturing of hydrogen peroxide solutions in

Thailand.

67
1988

 The government liberalises the petroleum industry. Aditya Birla Group enters

into a joint venture with Hindustan Petroleum Corporation Limited to set up a

three million tonne refinery Mangalore Refineries and Petrochemicals Limited

in Mangalore, Karnataka.

1987

 Indian Rayon is renamed Indian Rayon and Industries Limited (IRIL) to

reflect its wide span of activities.

 Thai Acrylic Fibre is incorporated to produce fibre and tow.

1986

 Birla Growth Fund is set up to finance industrial equipment, plants and

machinery, and consumer durables, as well as for stock market operations.

1985

 India's first gas-based fertiliser plant in the private sector – Indo Gulf – goes

on stream at Jagdishpur, UP.

1984

 Thai Polyphosphates and Chemicals commences production of sodium

phosphates in Thailand.

1982

 P.T. Indo Bharat Rayon is established. It is the first producer of viscose staple

fibres in Indonesia.

1978

 Thai Carbon Black, the Group's first carbon black company, is incorporated in

Thailand.

68
1977

 Pan Century Edible Oils is incorporated in Malaysia. The company goes on to

become the world's largest single-location palm oil refinery.

1975

 Indo Phil Group of Companies, the first Indo-Filipino joint venture,

commences production of spun yarn.

1974

 Thai Rayon, the Group's viscose rayon staple fibre business, is incorporated in

Thailand.

1973

 P.T. Elegant Textiles is established to manufacture spun yarn. It marks the

Group's first venture in Indonesia.

1969

 Mr. Aditya Birla sets up Indo Thai Synthetics Company Limited, the Group's

first overseas company.

1967

 Hindalco sets up a captive power plant at Renusagar – a significant strategic

move.

1966

 Indian Rayon Corporation Limited is acquired.

1965

 Mr. Aditya Birla, , starts the Eastern Spinning Mills & Industries.

1962

 Hindalco commences production at its aluminium complex in Renukoot, UP.

69
 1958

 Hindalco is incorporated.

1947

 Grasim is incorporated. The company commences its operations with a small

rayon weaving unit at Gwalior, MP.

1919

 Mr. Ghanshyamdas Birla, grandson of Mr. Shiv Narayan Birla, sets up the first

Birla jute mill, marking his entry into the manufacturing sector. Rapid

business expansion follows.

1857

 The foundation of the Birla Group of Companies is laid by Mr. Seth Shiv

Narayan Birla – cotton trading operations commences at Pilani, Rajasthan.

ALSO OF INTEREST

 Mr. Kumar Mangalam Birla, Chairman

 All Our Companies

 Our Sectors

 Mr. Aditya Vikram Birla's Speeches

 Our Heritage

 Leadership Team

 Careers

FACTS

 The world's largest aluminium rolling company

No.1 in viscose staple fibre

Amongst the largest producers of primary aluminium in Asia

Among the top 5 cement producers globally

70
 The No.1 producer of carbon black in the world

Fourth-largest producer of insulators in the world

Fifth-largest producer of acrylic fibre in the world

Among the best energy efficient fertiliser plants

71
 Research
Methodology

72
 Research Objectives

 To Study all about the perception of investors towards the equity futures as an

investment avenues in India.

 To Study how the investors get information about the various financial

instrument

 To Study the saving habits of the different customers and the amount they

invest in various financial instruments.

 To Study which type of financial instrument they like to invest.

 To give a recommendation to the investors that where they should invest.

73
 Research Methodology

RESEARCH DESIGN

A Research design is purely and simply the framework of plan for a study that

guides the collection and analysis of data. The study is intended to find the investors

preference towards various investment avenues. The study design is descriptive in

nature.

DESCRIPTIVE RESEARCH

Descriptive study is a fact-finding investigation with adequate interpretation. It is the

simplest type of research and is more specific. Mainly designed to gather descriptive

information and provides information for formulating more sophisticated studies.

METHODS OF DATA COLLECTION

Primary data : Telephonic survey, Questionnaire

Secondary data : Newspapers, Websites

Sample Size : 100

Research Area : Lucknow

Sampling Technique

Convenience method of sampling is used to collect the data from the respondents.

Researchers or field workers have the freedom to choose whomever they find, thus

the name “convenience”. About 100 samples were collected from Lucknow city.

74
 Data
Analysis

75
 Data Analysis & Interpretation

Que. 1. Do you investing in Equity Market?

Particulars Investing Percentage

Yes 119 68%

No 56 32%
Total 175 100%

Investing In Equity Market

140
119
120
100
Inv
80 esti
56 ng
60
40
20
0
Yes No

Interpretation:

According to the above chart we can see that:

68% of investors (119) are investing in Equity Market.

While 36% of investors (56) are not investing in Equity Market.

76
Que. 2. If you want to invest, which investment option will provide the
best returns?

Investment option Investors in Percentage

Equity Share 53%

IPO 18%

Mutual Funds 8%

Bonds 7%

Fixed Deposits 4%

Other 10%

Investors are investing in

various Investment option
(Investors
10% in Percentage)
4% Equity Share
7% IPO
Mutual
Funds
8% Bonds
53% Fixed
Deposits
Other
18%

Interpretation:
According to the previous chart:
According to 53% of investors, Equity market will provide the best returns
in compare to other investment option.

18% of investors believe that IPO (Primary Market) will provide the best
returns.

8% of investors think that Mutual Funds will provide the best returns.

7% of investors believe that Bonds Market will provide the best returns.

4% of investors trust that Fixed Deposits will provide the best returns.

According to 10% of investors, other investment option will provide the

best returns.

77
Que.3. Which factors motivate you for investing in Equity Market?

Motivation Factors Investors in Percentage

Return 49%

Liquidity 26%

Safety 7%

Capital Appreciation 17%

Other 1%

Motivating factors for Investors to

invest in Equity Market
(Investors in5%Percentage)
16%
Return
6% 48% Liquidity
Safety
Capital
Appreciation
25% Other

Interpretation:

According to the Previous Figure:

49% of investors are motivated by Return to invest in Equity market.

26% of investors are motivated by Liquidity to invest in Equity market.

6% of investors are motivated by Safety to invest in Equity market.

16% of investors are motivated by Capital Appreciation to invest in Equity

market.

While 5% of investors are motivated by other factors like-Investment,

Profit etc. to invest in Equity market.

78
Que. 4. How much percentage of your income you invest in
Equity Market?

Percentage of Income Investors in Percentage

Less than 5% 23%

5%-10% 45%

10%-15% 17%

15%-20% 7%

20%- 25% 5%

More than 25% 3%

Percentage of income investors are investing in

Equity Market
5% 3%
(Investors
7% in Percentage)
23%
Less than 5%
5%-10%
17% 10%-15%
15%-20%
20%- 25%
More than 25%

45%

Interpretation:
According to the Previous Figure:

23% of the investors are investing Less than 5% of their income in Equity Market.

45% of the investors are investing 5%-10% of their income in Equity Market.

17% of the investors are investing 10%-15% of their income in Equity Market.

7% of the investors are investing 15%- 20% of their income in Equity Market.

5% of the investors are investing 20%-25% of their income in Equity Market.

While 3% of the investors are investing More than 25% of their income in Equity
Market.

79
Que. 5. How do you trade in Equity Market?

Types of Trade Investors in Percentage

Intraday 13%

Delivery 31%

Speculation 26%

Arbitragers 17%

Hedging 11%

Other 2%

Investors are Trade in

Equity Market
(Investors in Percentage)

2% Intraday
11% 13%
Delivery

Speculation
17%
Arbitragers

31% Hedging

Other

26%

80
 Interpretation:
According to the Previous Figure:

13% of the investors are doing Intraday trading in Equity Market.

“Intraday Trading is trading for that one day only. Means any securities are
purchase & sell “within the day.”

31% of the investors are investing in Equity Market as a Delivery base Trading.
“Delivery based trading is normally considered as a safer approach for
trading in shares when compared to day trading. Delivery based trading
involves buying shares on a market day and selling them only after receiving
the delivery of those shares in demat account.”

26% of the investors are trading in Equity Market as a Speculator.

“Speculators are those classes of investors who willingly take higher-than-
average risk in return for a higher-than-average profit potential in future.
Speculators aim primarily at quick profit from a short-term acquisition of
assets.”

17% of the investors are Arbitragers in Equity Market.

“Arbitrager means who purchases securities in one market for immediate
resale in another in the hope of profiting from the price differential”

11% of the investors are trading in Equity Market as Hedgers.

“Hedging means reducing or controlling risk. Hedgers wish to eliminate or
reduce the price risk to which they are already exposed.”

While 2% of the investors are trade in Equity Market for Other Purpose.

81
 Que.6. What is the time horizon for investing in Equity Market?

Time Horizon Investors in Percentage

Less than 1 Months 14%

1 to 3 Months 28%

3 to 6 Months 15%

6 to 12 Months 18%

More than 12 Months 25%

Investors Time Horizon for investing

in Equity Market
(Investors in Percentage)
30% 28%
25%
25%

20% 18%
14% 15%
15%

10%

5%

0%
Less than 1 1 to 3 Months 3 to 6 Months 6 to 12 Months More than 12
Months Months

Interpretation:
According to the Previous Figure:

14% of investors invest in Equity market for Less than 1 Months.

28% of investors invest in Equity market for the period of 1

to 3 Months.

15% of investor’s time horizon for in Equity market is 3 to 6 Months.

18% of investor’s time horizon for in Equity market is 6 to 12 Months.

25% of investors invest in Equity market for more than 12 Months.

82
Que.7. What is the rate of return expected by you from Equity Market
in a year?
Rate of Return Investors in Percentage

5% – 10 % 12%

10% – 15 % 18%

15% – 20% 32%

20% – 25% 26%

25% –30% 8%

30% and above 4%

Rate of Return
4% 12%
8%

5% – 10 %

18% 10% – 15 %

26% 15% – 20%

20% – 25%

25% –30%

30% and above

32%

Interpretation:
According to the above Figure:
12% of investors are expects 5%-10% return from Equity market.
18% of investors are expects 10%-15% return from Equity market.
32% of investors are expects 15%-20% return from Equity market.
26% of investors are expects 20%-25% return from Equity market.
Here, above two cases investors are more expects from Equity market.
8% of investors are expects 25%-30% return from Equity market.
While 4% of investors are expects more than 30% return from Equity
market.

83
Que.8. Are you satisfied with the current performance of the Equity Market in
terms of expected return?

Rate of Return No. of Investors Percentage

Fully Satisfied 30 17%

Satisfied 73 42%
Neutral 49 28%
Unsatisfied 18 10%
Fully Unsatisfied 5 3%
Total 175 100%

Investors satisfaction level From

Equity Market
(Investors in Numers)(Total 175)
80 73
70
60
49
50
40
30
30
20 18
10 5
0
Fully Satisfied Neutral Unsatisfied Fully
Satisfied Unsatisfied

Interpretation:
According to the Previous Figure:
30 investors are Fully Satisfied from current performance of
Equity market.
73 investors are Satisfied from Equity market.
49 investors are Neutral with current performance of Equity market.
18 investors are Unsatisfied from Equity market.
While 5 investors are Fully Unsatisfied from Equity market.

Que. 9. Who advise you to enter in Equity Market?

84
 Particulars Investors in Percentage

Friends 28%

Relatives 12%

Advisers 25%

Media 17%

Research Report 10%

Magazines 5%

Other 3%

Investor's Referance for enter into

Equity Market
(Investors in Percentage)
5% 3%
Friends
10% 28% Relatives
Advisers
Media
17% Research
Report
Magazines
12%
Other
25%

Interpretation:
According to the Above Figure:
Friends motivate 28% of the investors to enter into the equity market.
Relatives motivate 12% of the investors to enter into the equity market.
25% of investors enter in Equity market by the Advise of Financial
Advisor.
Media motivate 17% of the investors to enter into the equity market.
Magazines motivate 10% of the investors to enter into the equity market.
5% of investors are motivates by Reading Magazines to enter in Equity
market.
While other factors like self-Study, their own View etc. motivate 3%
of the investors to enter into the equity market.

85
Que.10. Which Factors do you consider most important while selecting the
Sectors?

Particulars Percentage

Market Trend 29%

Profitability 23%
Economic Condition 14%
Industry Condition 16%
Existence of well established Companies
12%
under Sectors
Government Policy 5%
Any Other 1%

Factors Consider by Investors while

selecting sector
(Investors in Percentage)
Market Trend
5%1%
12% Profitability
29%
Economic Condition

Industry Condition
16%
Existence of well established
Companies under Sectors

14% 23% Government Policy

Any Other

Interpretation:
According to the Previous Figure:

29% of the investors have considered Market Trend as a most important

factor while selecting the Sector.

23% of the investors have considered Profitability as a most important

factor while selecting the Sector.

14% of the investors have considered Economic Condition as a most

important factor while selecting the Sector.

16% of the investors have considered Industry Condition as a most

important factor while selecting the Sector.

86
12% of the investors have considered Existence of well established
Companies under Sectors as a most important factor while selecting the
Sector.

5% of the investors have considered Government Policy as a important

factor while selecting the Sector.

While 1% of the investors have considers Other Factor like

Global Position of the company and etc. important factor while selecting the
Sector.

87
 Que.11. Which Sectors do you prefer the most?
(Give 1 to 5 Orders in given boxes)
Here, I have decided to study only these five sectors.

Oil & Gas Sector

Banking Sector
IT Sector
Infrastructure Sector
Automobile Sector

Orders(Ranks) Given by Respondents

Sectors
1 2 3 4 5 Total

Oil & Gas Sector 44 30 49 21 31 175

Banking Sector 26 24 53 42 30 175

IT Sector 20 40 47 35 33 175

Infrastructure Sector 37 32 33 28 45 175

Automobile Sector 35 30 28 52 30 175

Total 162 156 210 178 169 875

88
 100% 20 1st Rank
26 35
44 37
90%
24
2nd
80% 40 Rank
32 30
70% 30
3rd
60% 53 28
47 33 Rank
50% 49
40%
4th
28 52 Rank
42 35
30% 21
20% 5th
45 Rank
31 30 33 30
10%
0%
Oil & Gas Banking IT Sector Infrastructure Automobile
Sector Sector Sector Sector

On the basis of above chart:

How many investors given 1st to 5th Rank to which sector?

Sectors Investors Rank

Oil & Gas Sector 44 1st

IT Sector 40 2nd

Banking Sector 53 3rd

Automobile Sector 52 4th

Infrastructure Sector 45 5th

89
 Interpretation:
On the basis of Previous Figures:
Oil & Gas Sector:
 44 Investors gave 1st rank, 30 Investors gave 2nd rank, 49 investors gave 3rd
Rank, 21 Investors gave 4th Rank, & 31 Investors gave 5th Rank to this sector.
 Here, over all 44 investors have selected oil & gas sector as a First Rank in
comparison with First Rank of all sectors.

IT Sector:
 20 Investors gave 1st rank, 40 Investors gave 2nd rank, 47 investors gave 3rd
Rank, 35 Investors gave 4th Rank, & 33 Investors gave 5th Rank to this sector.
 Here, over all 40 investors have selected IT sector as a 2nd Rank in
comparison with 2nd Rank of all sectors.

Banking Sector:
 26 Investors gave 1st rank, 24 Investors gave 2nd rank, 53 investors gave 3rd
Rank, 42 Investors gave 4th Rank, & 30 Investors gave 5 th Rank to
this sector.
 Here, over all 53 investors have selected Banking sector as a 3nd Rank in
comparison with 3nd Rank of all sectors.

Automobile Sector:
 35 Investors gave 1st rank, 30 Investors gave 2nd rank, 28 investors gave 3rd
Rank, 52 Investors gave 4th Rank, & 30 Investors gave 5th Rank to this sector.
 Here, over all 52 investors have selected Automobile sector as a 4th Rank in
comparison with 4th Rank of all sectors.

Infrastructure Sector:
 37 Investors gave 1st rank, 32 Investors gave 2nd rank, 33 investors gave 3rd
Rank, 28 Investors gave 4th Rank, & 45 Investors gave 5th Rank to
this sector.
 Here, over all 45 investors have selected Infrastructure sector as a
5nd Rank in comparison with 5nd Rank of all sectors.

90
Que. 12. Mention the most important factors for selecting a company of
your choice.

Factors affect for Investors in

selecting company Percentage

Earning Per Share 19%

Dividend 17%

Broker’s advise 15%

Market capitalization 7%

Performance of company 16%

P.E. Ratio 24%

Other 2%

Factors affect to Investors for for selecting

company
(Investors in2%Percentage)
19%
24% Earning Per Share
Dividend
Broker’s advise
17% Market capitalization
Performance of company
16% P.E. Ratio
Other
7% 15%

Interpretation:
On the basis of above Figures:

19% of the investors have considered Earning Per Share as a most important
factor to select a Company under the sector of their Choice.

17% of the investors have considered Dividend as a most important factor to

select a Company under the sector of their Choice.

While 15% of the investors are select a company under the sector of their choice
on the basis of Broker’s advises.

91
7% of the investors have considered Market capitalization by the company as a
important factor to select a company under the sector.

16% of the investors have considered as a Performance of company most

important factor to select a company under the sector of their choice.

24% of the investors have considered Price Earning Ratio as a most important
factor select a company under the sector of their choice.

At last 2% of the investors have considered Other Factors like

Suggestion from reference group, External advisors, Stakeholders, Growth of
Company, Market Trend, Profitability and their own view etc. to select a
company under the sector.

92
FINDINGS

93
 FINDINGS

1. The study reveals that male investors dominate the investment market in India.

2. Most of the investors possess higher education like graduation and above.

3. Majority of the active and regular Investors belong to accountancy and related

employment, non-financial management and some other occupations are very

few.

4. Most investors opt for two or more sources of information to make investment

decisions.

5. Most of the investors discuss with their family and friends before making an

investment decision.

6. Percentage of income that they invest depend on their annual income, more

the income more percentage of income they invest.

7. The investors’ decisions are based on their own initiative.

8. The investment habit was noted in a majority of the people who participated in

the study.

9. Most Investors prefer to park their funds in avenues like Life insurance, FD,

Gold and Real Estate.

10. Most of the investors get their information related to investment

through electronic media (TV) next to print media (News paper/ Business

news paper/ Magazines)

11. Most of the investors are financial illiterates.

12. Increase in age decrease the risk tolerance level.

94
13. Women are attracted towards investing gold than any other investment

avenue.

95
Suggestions

96
 Suggestions
From my research, I found that only 68% of investors are investing in equity

market, so more focus should on 32% of investors who are not investing in equity

market.

Broking firms or companies should promote Equity investment aggressively for long

term investment purpose.

Majority of investors (53%) are investing secondary market (equity market) and

very few (18%) investors are investing in Primary Market. So, here broking firm

should promote to their client for investing in Primary Market also.

Company should have to concentrate on those people who are not investing in

Equity Market because of High risk than convert them in investing other security

like-Mutual Fund, Bonds, and Insurance etc. which also provides moderate return.

The Stock Broking firm should also provide better services to the investor to increase

the satisfaction level of the investors.

Company should focus on students also because equity market has risk and the

younger generation likes to take risk.

Majority investors are investing in Oil & gas sector and IT sector. So, Company

should also suggest to investors for investing other sector which is also profitable

97
Conclusion

98
 Conclusion

From the survey I found that major people are investing in equity market only

due to Earn High Return and Hedge the Risk by investing their major proportion

of income in Equity Market. Here, the most of people are trade in equity market as a

speculation and they are invests for one to three months. Generally, the investors who

are invest for long period more than year they are surely beneficial in equity market.

Majority of people are motivated by their friends & medias advise to enter into equity

market. Majority people are expecting something more from the equity market. So,

finally some are satisfied and some are not satisfy with equity market.

Major investors prefer the Oil & gas sector as a first rank on the basis of

Market trend, Profitability, industry condition and economic condition also important

factor while selecting the Sector and investors have also considered Price Earnings

Ratio, Earning per Share and Dividend as a most important factor while selecting a

company under these selected sectors.

In the current scenario, investing in stock markets is a major challenge ever for

professionals. Derivatives acts as a major tool for reducing the risk involved in

investing in stock markets for getting the best results out of it. The investors should

be aware of the various hedging and speculation strategies, which can be used for

reducing their risk. Awareness about the various uses of derivatives can help

investors to reduce risk and increase profits. Though the stock market is subjected to

high risk, by using derivatives the loss can be minimized to an extent.

This study confirms the earlier findings with regard to the relationship between Age

and risk tolerance level of individual investors. The Present study has important

implications for investment managers as it has come out with certain interesting facets

99
of an individual investor. The individual investor still prefers to invest in financial

products which give risk free returns. This confirms that Indian investors even if they

are of high income, well educated, salaried, independent are conservative investors

prefer to play safe. The investment product designers can design products which can

cater to the investors who are low risk tolerant and use TV as a marketing media as

they seem to spend long time watching TVs.

100
Limitations
of the study

101
 Limitations of the study

1. The sample size was restricted to 100 customers.

2. Resources like time and cost was a constraint.

3. The study was conducted in Lucknow city.

4. So the findings and conclusion drawn are applicable to Lucknow only.

5. The methods used for analysis and interpretation purpose may have some

limitations of their own and some errors can always creep in.

6. The sample size is small; hence the result cannot be generalized.

102
Bibliography

103
 Bibliography

Books:

 Marketing Research by G C Beri- third edition – © 2000, Tata McGraw-Hill

Publishing Company Ltd.

 Marketing Research by Rajendra Nargundkar- 2nd edition 2006, Tata McGraw-

Hill Publishing Company Ltd.

 Options, Futures & Derivatives – 6th Edition , John C. Hull

 Introduction to Future & Options – Franklin R Edward, Tata McGraw-Hill

Websites:

http://www.smcindiaonline.com/

https://en.wikipedia.org/wiki/SMC_Global_Securities_Limited

http://www.smctradeonline.com/

http://www.moneycontrol.com/

104
Questionnaire

105
 Questionnaire
Name:

Contact No:

E mail id:

1. What is your age ?

(a) 20-30 [ ] (b) 31-40 [ ] (c) 41-50 [ ] (d) 51 & above [ ]

2. Gender
(a) Male [ ] (b) Female [ ]

3. Occupation
(a) Student [ ] (b) Entrepreneur [ ] (c) Working [ ]

(d) Professional [ ] (e) Retired [ ]

4. Do you know about the following investment options

available in financial market?

Mutual Fund Yes No

Fixed deposits Yes No

Derivatives Yes No

Equity Yes No

Insurance Yes No

106
 5. How do you get information regarding these financial instruments?
Advertisement [ ] Media [ ] Newspaper [ ]

Co.’s Sales force [ ]

6. Please rate the following investment options as per your preference :

Mutual Fund [ ] Fixed Deposits [ ] Derivatives [ ]

Equity [ ] Insurance [ ]

7. How often you invest in these investment avenues?

Regularly As per mkt. cond. Speculation

9. What is your Annual Income ?

A. 1 to 3 lacs [ ] B. 3-5 lacs [ ]

C. 5-10 lacs [ ] D. More [ ]

10. What % of Income you invest in these financial instrument ?

A. Below 5% [ ] B. 5 – 10 % [ ]
C. 10 – 20% [ ] D. Above 20% [ ]

11. On what basis you invest in any particular investment option :

Past performance Market Sentiments

Fundamental/tech. analysis others

107
12. What are the factors you consider while investing in any of the financial
instrument?
Max. return Tax saving

Safety Regular income flow

13. How long you prefer to keep your money invested in any financial
instrument?
Less than 3 years

3 to 5 yrs. More than 5 yrs.

14. Are you satisfied with your investment decision, please rate :

Highly satisfied Satisfied

Less Satisfied Not satisfied

 Name: _______________________________________________
 Address: _______________________________________________
_______________________________________________

 E-mail ID: …………………………………..………………………………

 Contact No.: …………………………………..
 Gender [ ] Male [ ] Female

 Age:

[ ] Below 20 Years [ ] 21 TO 30 Years [ ] 31 TO 40

Years

[ ] 41 TO 50 Years [ ] 51 TO 60 Years [ ] Above 60

Years

 Occupation:
[ ] Business [ ] Service [ ] Employee

108
 [ ] Student [ ] Other please specify _____________

 Income (Yearly):
[ ] Less than 100000 Rs. [ ] 100000 to 200000 Rs. [ ] 200000 to

300000 Rs.

[ ] 300000 to 400000 Rs. [ ] 400000 to 500000 Rs. [ ] Above

500000 Rs.

109