Padmini 10XQCMA067 AdityaBirlaFinance Internship Report

AN ORGANIZATION STUDY AT
Aditya Birla Finance

Bangalore Submitted in partial fulfillment of the requirement of the Bangalore University for the forward of degree in
Master of Business Administration Submitted by PADMINI M S REG NO: 10XQCMA067 Under the Guidance of DR. NAGESH MALLAVALLI
M. P Birla Institute of Management Associates of Bharatiya Vidya Bhavan No.43, Race Course Road Bangalore 1
DECLARATION
I, Padmini M S (Reg. No. 10XQCMA067) hereby declare that the internship report, an Organizational study conducted at Aditya Birla Finance Corporate Office Bangalore submitted in partial fulfillment of the requirements of the Bangalore University for the award of degree in Master of Business Administration is a bona fide work carried out by me under the guidance of Dr. Nagesh Mallavalli, MPBIM, Bangalore. This report has not been submitted earlier to any university or institution for the award of any degree/diploma. The content of this report are based on the data collected by me at Aditya Birla Finance, Bangalore under the guidance of Arun Bhat Relationship Manager. Place: Date: Padmini.M.S Reg. No. 10XQCMA067
ACKNOWLEDGEMENT
This project is a product of the invaluable insights, facts and experience I had with the industry people. The learning experience was more than what was visualized as. I would like to express my sincere gratitude to Mr. Arun Bhat Relationship Manager of Aditya Birla Finance for giving me the opportunity to be a part of the Capital Market department. I would like to express my sincere thanks to Mr. Rakesh Singh my project guide in Aditya Birla Finance for extending his Support in making my internship a knowledgeable experience. I would also like to thank all those who have directly and indirectly helped me in completion of the project. I would also like to thank my project guide Dr. Nagesh Mallavalli, who guided me through the entire project. I am indebted to my parents. They have been my guiding light in my passage of this mortal world. Above all I would like to thank all my friends and also my college who have helped me in completing this project.
Padmini M S
CONTENTS
Sl no Index Executive Summary Introduction Background of the study Industry Profile Company Profile Corporate Social Responsibility Vision, Mission and Value Organizational Structure Corporate Organizational Structure Departmental Organizational Structure Authority and Responsibility relationship Functional Areas HR Department Capital Market Department Corporate Finance Department Risk Management Group Mid Office Group Finance Information Technology SWOT Analysis Strengths and Weakness Opportunities and Threats Pg no 1 2 4 5 8 10 14 15 16 16 17 22 23 23 23 24 24 24 24 38 39 41
1 1.1 1.2 1.3 1.4 1.5 2 2.1 2.2 2.3 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 4 4.1 4.2
5 5.1
Observation, Suggestions and Conclusions Suggestions Annexure Bibliography
42 42 58 65
Executive Summary
Aditya Birla Finance Ltd. (ABFL), formerly known as Birla Global Finance, is one of India's leading non-banking financial companies. The company is also such an entity consisting of people with rich and varied skills, experience and areas of expertise working together harmoniously to deliver quality outputs.
The organization study helps to understand and make factual observation about the functioning of an organization. The organization study helps to have the firsthand feel of the corporate environment. Organization study helps to know about the following: Learn about the working environment To understand the organization hierarchy To know the functions and activities of various employees To get an insight about the vision, mission values, etc. of the organization.
Padmini.M.S. ----M.P. Birla Institute of Management----Organizational Study at Aditya Birla
Chapter 1
INTRODUCTION
1. INTRODUCTION
The Aditya Birla Financial Services Group (ABFSG) has built a significant presence across its verticals, viz. life insurance, asset management, NBFC, private equity, broking, wealth management & distribution and general insurance advisory services
The seven companies representing Aditya Birla Financial Services Group are Birla Sun Life Insurance Company Ltd., Birla Sun Life Asset Management Company Ltd., Aditya Birla Finance Ltd., Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., Aditya Birla Money Mart Ltd, and Aditya Birla Insurance Brokers Ltd. ABFSG is committed to being a leader and role model in a broad based and integrated financial services business. Its 7 lines of businesses, with about 5.5 million customers manages assets worth USD 18 billion approximately and prides itself for having a talent pool of about 15,000 committed employees. ABFSG has its wings spread across more than 500 cities in India through over 1600 points of presence and about 200,000 channel partners. This allows ABFSG to offer its customers virtually anything under financial services except a savings or current account. With revenue of over USD 1.25 billion (in 2009-2010) ABFSG is a significant non bank player.
ABFSG is a part of Aditya Birla Nuvo Ltd (ABNL), a USD 3.5 billion conglomerate having leadership position across its manufacturing as well as services sector businesses. ABNL is a part of the Aditya Birla Group, a USD 30 billion Indian business house operating in 27 countries across the globe.
Aditya Birla Finance Ltd. (ABFL), formerly known as Birla Global Finance, is one of India's leading non-banking financial companies (NBFCs). Incorporated in 1991, the company has been rated as A1+ by ICRA, for its short-term borrowings, which indicates highest-credit-quality
ABFL offers specialized solutions in areas of Capital Markets, Corporate Finance and Project Finance. It is one of the largest players in security based lending and the pioneer of IPO Financing in India.
1.1 BACKGROUND OF THE STUDY

This report is the result of 5 weeks of internship program at Aditya Birla Finance. During this internship it was required to study the organization, working of the various departments, creation of broker and client database and fixing up client meetings.
The motive behind considering Aditya Birla Finance as the organization for study was to have a thorough understanding of the Finance sector.
The finance sector of this company is into Secured loans and Unsecured Loans, Aditya Birla has built a strong brand recognition and have established themselves as a strong brand in this sector.
OBJECTIVE OF THE STUDY

To analyse how the various functional departments work. Have a balance between the theoretical and practical world of the organisation. Perform SWOT analysis and understand the core competencies of the organisation. To understand Capital Market and Corporate finance, procedures
1.2 INDUSTRY PROFILE
Finance Companies of India

The top finance companies are playing a key role in the huge growth of the economy of India. The sector of finance is passing through a rapid phase of alteration. The sustenance of the growth of economy is the primary factor for the development of the India's financial sector.
List of Top Finance Companies of India SBI Capital Markets Limited

It is one among the oldest organizations in the capital markets sector of India. It was established in the year 1986 as an ancillary of SBI. It ranks second in Asia's Project Advisory services. The company is a trailblazer in privatization and securitization. The companys subsidiaries are SBICAPs Ventures Ltd., SBICAP Trustee Co.Ltd. And many others.
Bajaj Capital Limited

The company offers best investment advisory and financial planning. It provides institutional investors, NRIs, corporate houses, individual investors , high network clients with investment advisory and financial planning services. It is also the largest provider of finance products offered by public and private organizations, several government bodies, investment products like bonds, mutual funds, general insurance etc.
DSP Meriyll Lynch Limited

It is the key player of equity and debt securities in India. It renders financial advises to many corporations and institutions. It also offers a wide array of wealth management and investor services along with customized advices related to financial matters. This company is the pioneer to form research facility to research in financial products and services, improvements and innovations. The company also has its hand in the Government securities and holds an eminent position in the market of equity and debt in India.
Birla Global Finance Limited

It is a subsidiary of Aditya Birla Nuvo Ltd. Their motto is to be the first choice of the customers as a major provider of financial services through technology and value creation. The primary activities of the company are Corporate Finance and Capital Market. Aditya Birla Nuvo has also formed alliance with Sun Life Financial of Canada which has given rise to the following financial services companies like Birla Sun Life Insurance Co Ltd., Birla Sun Life Distribution Co. and many others.
Housing Development Finance Corporation

This company offers the best financial solutions and guidance for home loans, property related services, loans for NRIs etc. in India. The one stop destination for comprehensive information on personal finance is HDFC. The company has a wide network in India and abroad. HDFC overseas offices are in Singapore, Kuwait, Qatar, Saudi Arabia and many others.
PNB Housing Finance Limited

This is completely owned by PNB and offers premium solutions to relieve the borrowers. This subsidiary of the PNB has recorded a growth a 73% and is a leading finance company of India. The Home Loan Life Insurance Plan of this company in association with TATA AIG offers the lowest premium in compare to others. The chart for loans of 5 lacks and tenure of 15 years is just premium. It renders other services like Deposit schemes, Loan schemes and many others.
ICICI Group
ICICI offers a wide spectrum of financial products and services in India. The company provides solutions for all needs like Instant Banking, Online Trading, Insta Insure, ICICI Bank immobile etc. The company keeps up the financial profile healthy and diversifies earnings across geographies and businesses. The company's philosophy is to deliver high class financial services for all the cross sections of the society. Their products are Mutual Fund, Private Equity Practice, Securities, Life Insurance etc.
LIC Finance Limited

It is the leading player in the finance sector of India being the biggest Housing Finance Company of India. The function of the company is to provide finance to individuals for repair or construction or renovation of the old or new apartment or house. It also offers finance on the existing property for personal or business matters. The company has 14 back offices, 6 regional offices and 126 units of marketing in India.
L & T Finance Limited

This company was established in the year 1994 by the Larsen and Turbo group and now it is a significant name in the financial sector. The company offers schemes like funds for automobiles, funds for Agricultural Instruments, secured loans, funds for automobiles and many others. It offers loans for a long tenure and the loans are given in exchange of valuable items.
Karvy Group
The company has about 575 offices in 375 destinations in India. It offers services like the Mutual Funds Services, Depository Services, Debt Market Services, Investment Banking and many others.
1.3 COMPANY PROFILE

A US$ 35 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of 133,000 employees, belonging to 42 different nationalities. In the year 2009, the Group was ranked among the top six great places for leaders in the Asia-Pacific region, in a study conducted by Hewitt Associates, RBL Group and Fortune magazine. In India, the Group has been adjudged the best employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 60 per cent of the Group's revenues flow from its overseas operations. The Group operates in 33 countries Australia, Austria, Bahrain, Bangladesh, Brazil, Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy, Japan, Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines, Poland, Singapore, Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, UAE, UK, USA and Vietnam. Globally, the Aditya Birla Group is: :: A metals powerhouse, among the world's most cost-efficient aluminium and copper producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the biggest producer of primary aluminium in Asia, with the largest single location copper smelter :: The largest producer of viscose staple fibre :: The fourth-largest producer of insulators :: The No.1 producer of carbon black :: The fifth-largest producer of acrylic fiber :: The seventh-largest cement producer :: Among the best energy-efficient fertilizer plants
In India: :: Largest cement player in India :: The top fashion (branded apparel) and lifestyle player :: The second-largest producer of viscose filament yarn :: The largest producer in the chlor-alkali sector :: Among the top three mobile telecom players :: Among top 10 BPO companies :: A leading player in life insurance and asset management :: Among the top two supermarket chains in India
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting.
Beyond business
Transcending business for over 50 years now, the Group has been and continues to be involved in meaningful welfare-driven initiatives that distinctly impact the quality of life of the weaker sections of society in India, South-East Asia and Egypt. In India, the Group's social projects span 3,000 villages. It reaches out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is healthcare, education, sustainable livelihood, infrastructure and espousing social causes. The Group runs 42 schools, which provide quality education to over 45,000 children in India's interiors. Of these, over 18,000 children receive free education. An additional 8,500 students receive merit scholarships. Likewise at its 18 hospitals in India, 500,000 patients are given extremely subsidized medical care. To embed corporate social responsibility as a way of life in organizations, the Group has set up the FICCI Aditya Birla CSR Centre for Excellence, in Delhi. The Group transcends the conventional barriers of business and reaches out to the marginalized because of its conviction of bringing in a more equitable society.
1.4 Corporate Social Responsibility

Corporate social responsibility is an integral part of the Aditya Birla Group's value systems. Today, the footprint of the Group's social work spans 3,000 villages in India, reaching out to seven million people annually.
2011 :: Mrs. Rajashree Birla was presented the All India Management Association (AIMA) Managing India Award 2011 for 'Corporate Citizen of the Year'. The award was presented by Mr. P. Chidambaram, Indias Union Minister for Home Affairs. :: The Government of India has bestowed the Padma Bhushan Award on Mrs. Rajashree Birla for her exemplary contribution in the area of Social Work.The Padma Bhushan is among the highest civilian awards in India and was conferred on Mrs Birla at a special ceremony on 01 April 2011.
2010 :: Indian Rayon, Veraval (a division of Aditya Birla Nuvo) is awarded The Rajiv Gandhi Environment Award for Clean Technologies by The Ministry of Environment and Forests, Government of India. :: Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development receives 'Hello Hall of Fame' award for 'Exemplary Philanthropist of the year' from Worldwide Media Goup's 'Hello' celebrity journal. :: Ultratech's 'Concern for Health' project awarded the Asian Corporate Social Responsibility Award by the Asian Institute of Management Centre for Corporate Social Responsibility. :: Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development, awarded the Global Golden Peacock Life Time Achievement Award for Community Development for the year 2010 for "Outstanding Contribution Towards Community Development and Social Welfare".
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:: Hindalco and Birla White declared winners in the Golden Peacock Awards for Corporate Social Responsibility 2010 by an eminent international jury, headed by Justice P.M. Bhagwati, the erstwhile Chief Justice of India. :: The Aditya Birla Centre for Community Initiatives and Rural Development teams up with Columbia University's research centre, the Columbia Global Centers' Earth Institute in Mumbai, to become its principal partner. The Earth Institute's goal is to help achieve sustainable development primarily by expanding people's understanding of the earth as one integrated system. :: Hindalco wins Amity International Business Schools, Amity Corporate Excellence Award for Corporate Social Responsibility
2009 :: Grasim's pulp and fibre division wins the highly prestigious Asian CSR Award. The Asian CSR Awards, Asia's Premier CSR Awards program, is a project of the Asian Institute of Management, Manila. :: Rajiv Gandhi Award for Eminence in Social Field, 2009 conferred on Mrs. Rajashree Birla by Mr. Jyotiraditya Scindia (Union Minister of State, Commerce & Industry) on 19 August 2009. The award recognises Mrs. Birla's pathbreaking work among the poor, more so in India's villages, carried out through the Aditya Birla Centre for Community Initiatives and Rural Development. :: Vikram Cement and Aditya Cement wins the Federation of Indian Mineral and Industries' "Social Awareness Award for the year 2008-09". :: Reader's Digest Pegasus Star Award conferred on Hindalco in recognition of work that truly exemplifies the highest values of society and corporate leadership for social responsibility and sustainable development initiatives. Mrs. Rajashree Birla, who spearheads all the Group's social projects, received this much coveted award on behalf of Hindalco from Mr. Arun Jaitley, MP, Rajya Sabha, on 21 January 2009 in Delhi.
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2008 :: The President of India, Mrs. Pratibha Patil confers the much coveted Rotary International Polio Eradication Champion Award on Mrs. Rajashree Birla in an elegant function at the Rashtrapati Bhavan (Delhi), attended by the Chairman, select Rotarians and WHO officials.
2007 :: The Aditya Birla Group honoured with the India Today Group's Readers Digest Gold award in recognition of the work that truly exemplifies the highest values of society as well as those of Reader's Digest. The award was received by Mrs. Rajashree Birla, Chairperson, Aditya Birla Center for Community Initiatives and Rural Development, at the Pegasus Corporate Social Responsibility Awards 2007 function. :: Hindalco awarded the CII - Sorabji Green Business Centre "National Award for Excellence in Water Management 2007".
2006 :: Hindalco awarded the Greentech Safety Silver Award for its outstanding safety performance during 2005-06. 2004 :: Grasim, Nagda, receives the FICCI Annual Award 2003-2004 in recognition of corporate initiaitve in rural development. :: Aditya Birla Chemicals (India) Limited, Rehla, Jharkhand, receives the FICCI Annual Award 2003-2004 in recognition of corporate initiative in family welfare. :: Indal wins FICCI Award 2002-2003 for 'Corporate Initiative in Rural Development'.
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2003 :: The Group is ranked 16th in India's first ever survey of 'Great places to work in', published in Business World magazine. The Group's joint venture concern, Birla Sun Life Insurance, is ranked 9th in the same study. :: The Group is ranked 20th in a study on the 'Best Employers in India', conducted by Hewitt Associates and Business Today. :: Hindalco receives the Asian CSR Award for its "Rural Poverty Alleviation Program". The Asian CSR Awards are Asia's premier awards program on corporate social responsibility.
2002 :: The Group receives The Economic Times' "Corporate Citizen" of the year award.
2000 :: The Group announces its intention to launch a 450 MW 'Green Power Project' in Karnataka .
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1.5 VISION, MISSION AND VALUE ADITYA BIRLA VISION

To be a premium global conglomerate with a clear focus on each business.
MISSION
To deliver superior value to our customers, shareholders, employees and society at large.
VALUE
Integrity Commitment Passion Seamlessness Speed
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Chapter 2
ORGANIZATIONAL STRUCTURE
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2.1 CORPORATE ORGANIZATION STRUCTURE
2.2 DEPARTMENTAL ORGANIZATIONAL STRUCTURE
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2.3 AUTHORITY AND RESPONSIBILITY RELATIONSHIP
ADITYA BIRLA GROUP

ABN SECTORS: textiles, chemicals, agribusiness, carbon black, insulators, telecommunications, financial services, IT-ITeS.
Products:
Branded garments, Viscose filament yarn, carbon black, fertilizers, insulators, textiles, life insurance, asset management, non-banking financial services, distribution and wealth management, broking, general insurance advisory and broking, private equity investment, advisory and management services, cellular services, ITITeS, branded apparel retailing.
Management Name B L Shah Devendra Bhandari Sushil Agarwal Dr. Rakesh Jain Director Company Secretary & Compliance Officer Chief Financial Officer & Whole Timed Director Managing Director Designation
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GIL Sectors: Cement (grey and white), textiles, chemicals Cement, viscose staple fiber, rayon grade pulp, ready mix concrete, Products: chemicals, textiles
Management Name Kumar Mangalam Birla Ashok Malu Adesh Gupta Chairman Company Secretary And Compliance Officer Whole Director & Chief Financial Officer & Manager Designation
HIL Sectors: Products: Non-ferrous metals, chemicals, mining, agribusiness Aluminum, copper, aluminum rolled products (sheet and foil), cans, primary metal, recycling, caustic soda, aerospace alloys, alumina, power generation and aluminum smelting
Management Name Dr. Kumar Mangalam Birla D Bhattacharya Jagdish Khattar Ram Charan Anil Malik Chairman Managing Director Independent Director Additional (Independent) Director Asst. Vice-President & Company Secretary Designation
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ULTRA TECH CEMENT LTD Sectors: Products: Cement (grey and white) Cement, ready-mix concrete
Management Name Mr. Kumar Mangalam Birla O P Puranmalka Sanjeeb Chatterjee Designation Chairman Whole Time Director Company Secretary
ADITYA BIRLA MINACS WORLWIDE LTD Sectors: Products: IT-ITeS IT-ITeS
COMES UNDER ABN
ADITYA BIRLA CHEMICALS (INDIA)LTD Sectors: Products: Chemicals Caustic soda
Management Name Shyam Sundar Gupta Akash Mishra Managing Director Company Secretary & Compliance Officer Designation
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ABML Sectors: Products: Financial services Broking
Management Name Mr. S Balaji Sudhakar Ramasubramanian Designation Company Secretary & Compliance Officer Managaing Director
ADITYA ISPAT LTD SECTOR & PRODUCT: Iron & Steel/Interm.Products
Management Name S B Chachan Mr. Alphonsa Domingo Designation Chairman Compliance Officer
ADITYA FORGE LTD SECTOR: Other Industrial Products
Management Name Nitin Parekh Yogesh S Pujara Designation Chairman & Managing Director Compliance Officer
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IDEA CELLULAR LTD. SECTOR: Telecom Services
Management Name Himanshu Kapania Pankaj Kapdeo Managing Director Company Secretary & Compliance Officer Designation
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Chapter 3
Functional Areas
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3. FUNCTIONAL AREAS 3.1 Human Resource Department

The Human Resources department manages the entire gamut of employee management activities. This includes recruitments, training & development, change management, compensation and benefits, employee engagement, performance management & HR administration. The Admin department ensures the smooth functioning of the business by maintaining the infrastructural services availability at all times.
3.2 Capital Market Group

The Capital markets group is engaged in funding short term & medium term liquidity requirement of its corporate and individual customers against collaterals of shares, mutual fund units & other marketable securities. The product portfolio encompasses the entire security based lending space including Loan against shares/bonds/securities for HNIs & corporate, Promoter funding, Broker funding, IPO funding, ESOP funding, syndication & cross selling of group financial services products.
3.3 Corporate Finance Group

The Corporate Finance Group (CFG) is engaged in lending business (assets) with its target marketing being Large / mid corporate and SMEs. The division has suite of products for meeting its customers short term and medium term needs. The product portfolio includes Bill Discounting / Factoring, Channel Financing, Vendor Financing, Bill discounting backed by letter of credit (LC)/BG, Term loans & LAP/ LRD .The division also works with the supply side and buy side customers of various companies in the Aditya Birla ecosystem.
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3.4 Risk Management Group (RMG)

The Risk Management group is engaged in formulating credit risk policies for all ABFL businesses, carries out risk assessment of credit proposals, obtains credit decisions from Credit Committees, monitors credit exposure and carries out recovery of over dues.
RMG formulates risk policies in association with Central Risk, ABFSG for overall risk management in ABFL.
3.5 Middle office group

The Mid Office Group (MOG) function is responsible for managing the post sanction processes of all business transactions. The key functions are ensuring proper loan documentation in compliance of approvals and credit policies, safe custody of documents, activation of loan accounts, collateral management, and transaction processing and account maintenance. Accuracy and timeliness are of paramount importance for managing risks pertaining to the function and provide support to Sales for enhanced client servicing.
3.6 Finance
Finance department deals with various functions such as treasury (including availability of funds and efficient management of surplus funds), optimizing cost of funds, accounts & taxation, managing regulatory compliance as per RBI guidelines, upholding all legal checks and balances to safeguards interests of the company.
3.7 Information Technology
IT implements processes to ensure maintenance and high availability of software business solutions & technology infrastructure within the organization, and also drives effective and timely implementation of business solution system projects within the organization, in line with the IT roadmap.
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FINANCE DEPARTMWENT Capital Market Solutions

The Capital Market Group offers its customers the best opportunity to meet their liquidity requirements. It provides finance against the security of various investments in the capital market. Some of the product offerings include:

Promoter Funding Loan against security of equity shares/ mutual fund units and other marketable securities
Line of Credit against securities IPO Funding ESOP Funding LASi (Margin Financing)
Promoter Funding
This facility is offered to promoters against their share holding in their respective company. It enables you, as a promoter of the company, to increase your share holding or expand and diversify into other areas of business. With specialized valueads such as speed of transaction led by disciplined TAT-driven processes and strong Chinese walls, you can be assured of quality service and utmost confidentiality.
Tenure
Up to 365 days
Security Loan amount Margin Interest rate
Shares held by promoter & holding companies in promoter Group Minimum Rs. 1 Crore 30% & above Competitive
Documentation Custodian charges
Standard Loan Documents with PDC l At Actuals
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Loan Against Shares (LAS)

Your investments in shares and other marketable securities are capable of offering you much more than just returns. Loan Against Shares enables you to take a loan against equity shares and other marketable securities such as life insurance policies, mutual fund units etc. Simply pledge your shares to acquire a loan that will help you take a financial leap. So go ahead and extract the maximum out of your existing investments and use them to fulfill your desired objectives in life.
Up to 365 days with an option to Tenure prepay with mutually agreed
repayment notice Security Loan amount Margin Interest rate Documentation Custodian charges As per list of approved shares Minimum Rs. 50 Lakhs 30% & above Competitive Standard Loan Documents with PDC At Actuals
Benefits of Loan Against Shares

Get instant liquidity Avail a minimum of Rs. 50 Lakhs Repayment tenure ranges from 3 months 12 months Use this loan to fulfill business or any other financial objectives You don't have to sell your shares or certificates
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Documents Required
In case of Individual borrower Request Letter for Loan against Shares / Securities comprising Loan Amount, Tenure, Securities, Purpose of Loan & Source of Payment Last 2 years Income Tax Returns and financial statements duly self attested. (latest financial should be for FY10, if not ready, provisional must be provided) Latest borrowing details PAN Card Address Proof 2 Photographs In case of Corporate borrower Request Letter for Loan against Shares / Securities comprising Loan Amount, Tenure, Securities, Purpose of Loan & Source of Repayment Certified, updated true copy of MOA duly signed by Director/Company Secretary Form 32 Latest share holding pattern Latest borrowing details Last 2 years audited financials and Income Tax Returns, duly self attested
List of directors with details of their PAN No, DOB, Residence Address with pin code KYC Docs of all signatories authorized by Board, duly self attested (PAN card, address proof etc.)
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Line of Credit Against Securities

In order to enable investors to take care of unscheduled financing needs, we provide a line of credit against marketable shares and /or mutual fund units. The investors can avail the disbursement and make the repayment as per their requirements. Interest will be calculated only for the actual number of days of funds utilized. The following terms would apply:
Tenure Security
Up to 365 days As per approved list of shares, and mutual funds
Loan amount Margin Interest rate Custodian Charges Documentation
Minimum Rs. 1 Crore 25% and above Competitive As Applicable Standard Loan Documents with PDC
Benefits
Liquidity without selling your long term investments Maximize gains on your existing investments Take advantage of investment opportunities Easier and faster processing Pay interest only for the period of actual funds utilizations
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IPO Financing
This product offers an excellent opportunity to leverage your own funds in primary markets and thereby increase the allotment quantum manifold. We provide loans for subscription in the IPOs of equity / equity linked instruments. The investors have to invest only the margin amount and the balance amount is financed by Aditya Birla Finance. Our 'exclusive' IPO financing scheme provides a single window clearance for application, banking and follow up.
Tenure Loan amount Interest rate Margin
10-15 days Minimum Rs. 1 Crore Competitive Case to case basis depending upon expected allotment of shares
Documentation
Standard Loan Documents with PDC
Custodian Charges
As applicable
Benefits
Maximize gains on your existing funds available for investments Take advantage of investment opportunities Procure higher allotments in IPO Easier and faster processing
ESOP Financing
For the years of hard work and dedication you have put in to help your company reach newer heights, you have been acknowledged with the much deserved ESOPs, meant only for the chosen few. So dont let this rewarding opportunity go by. You have put in your efforts to get the ESOPs. Now its time to reap the benefits
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Tenure Security Loan amount Interest rate Margin Documentation Custodian Charges
2-13 months ESOPs Minimum Rs. 1 Crore Competitive 25% and above Standard Loan Documents with PDC At Actuals
Benefits of ESOP Financing

Specialized and Customized Solution for every company and employee Speedy and hassle-free transfer of shares: We open up the De-mat account on your behalf to facilitate a quick and seamless transfer of the allotted shares. This means that you save both your time and energy. Just provide us with the required documents and we will do the rest. Flexible Options: You can either hold or sell your ESOPs depending on your financial goals. In a fluctuating market, this is an advantage as it offers you the flexibility to average out your earnings. You also have the option of paying
Documents Required
Address Proof (Passport OR Driving License OR Copy of Lease Agreement OR Landline Telephone Bill OR Electricity Bill) PAN card Employee ID Passport size photographs (signed across) Form 16 Or ITR returns ( last 2 yrs) Pay slip or Salary slip (last 2 months) Cancelled cheque for demat account opening (All the documents should be self-attested. All signatures should match the PAN card signature)
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LASi
LASi enables you to invest/leverage/trade in equity shares at a pre-defined margin. You pay only a part of the total value of purchase with the rest being provided as a loan. You can choose your own quantity to trade and can avail loan upto 10 times of your gross annual income on fulfilling a few simple conditions. This financing solution can be availed for up to 1 year. You can take advantage of the Buy Today Sell Tomorrow (BTST) facility and maximize value. So go ahead take a step towards creating wealth.
Tenure Security Loan amount Margin Interest rate Documentation Custodian charges
Up to 365 days As per list of approved shares Minimum Rs. 2 Lakhs 25% and above Competitive Standard Loan Documents with PDC At Actuals
Benefits of LASi
Leverage the power of your portfolio Use your existing holding to buy more shares Avail a minimum of Rs. 2 Lakhs Margin can be paid in cash or in form of pre-approved shares Interest is charged on the utilized loan amount only
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Documents Required
Income Tax Returns for the past 2 years Net worth Certificate PAN Card Address Proof Photographs
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Corporate Finance Solutions

The Corporate Finance Group deals with SMEs and large corporate clients and aims to provide innovative and customized solutions to meet their short term working capital needs. Its strength lies in structuring complex deals for their clients. The Corporate Finance group has developed significant domain expertise which is reflected in its impressive record of no NPAs since inception along with a large, diversified yet safe portfolio. While continuing to expand its footprint outside the Aditya Birla Group, it also plans to increase its presence within the Aditya Birla Group by driving synergies through specialized financing solutions to associated vendors and customers. Its product offerings include:

Invoice Discounting Channel Financing Vendor Financing Debt Syndication
Invoice Discounting/Bill Discounting

Working capital is one of the essentials for smooth running of your business. Our constant endeavor is to provide you with innovative solutions designed to meet your working capital needs.
Our Invoice Discounting facility includes finance against your domestic receivables by discounting invoices. It helps you to convert your receivables into instant cash which improves liquidity resulting into healthy and continuous cash flow of your business.
Benefits
Instant conversion of your receivables into cash Financing facility without any charge on assets Provide hassle-free finance Lower Margin requirements
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Channel Financing
Channel Financing is an innovative product to extend working capital finance to dealers having business relationships with large companies in India. Through this product Dealers are able to leverage their relationship with reputed companies in sourcing low cost funds. It aims to provide integrated financial solutions to the distribution channels. This may be in the form of either invoice discounting or a bill discounting line of credit. The corporate provides services like Stop Supply Letter, Assistance in Recovery & Resale. Facility can be structured as per the requirements to help the dealers/franchises.
Benefits
Assure availability of Working Capital finance to their channel partners at lower cost of credit Acts as a marketing tool and helps in strengthening their relationship with Channel Partners Greater efficiencies in Receivables and Cash Management Process for corporate Ability to introduce payment discipline with their Channel Partners Steady and cheaper source of Working Capital financing for Channel Partners
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Increased Sales through higher purchasing power for Channel Partners Clean facility up to certain limits Simplicity of documentation and approval procedures High service and delivery standards compared to current neighborhood Banker / Moneylender Channel partners may be able to increase profitability by availing of cash discounts from Corporate
Vendor Financing
ABFL understands that longstanding relationship with your vendors is an integral part of your business. Under vendor financing, facilities are made available to vendors of Large Corporate. These credit facilities would be granted against specific transactions such as bill discounting or invoice discounting. Unlike Corporate Bill discounting limit which is a limit to the corporate, this is a limit to the vendor. Accordingly, limit is outside the banking arrangement of the Corporate. Our team would also assist vendors in structuring finance against confirmed purchase orders from their customers.
Benefits
Assured and continuous availability of Working Capital to vendors Financing facility without any charge on assets Improves liquidity of the vendors, which increases his ability to supply larger volumes Competitive Pricing
Debt Syndication
Debt Syndication encompasses funding activities for diverse business requirements of corporations. We assist corporate to leverage on debt as an instrument to raise short-term and long-term capital through structured financial products. This could be for various requirements including expansions, working capital and also for structuring and syndicating funds for acquisitions.
35
Short term debt can be raised through:

Commercial Paper and Mibor-linked Paper - Placement of commercial paper and short-term Mibor-linked papers with Mutual Funds/ Insurance Companies/ Banks at fixed and floating rate. Short Term Loans - Structuring and arranging Short Term Loans / FCNR (B) from Banks for meeting working capital requirements Inter-Corporate Deposits (ICD) - Private placement of Inter corporate deposits. Buyers / Suppliers Credit - Syndicates low cost borrowing for imports and exports at Libor linked rates from overseas lenders Working Capital Facilities - Arranges fund-based and non-fund based limits for clients from Banks
Long term debt can be raised through:

Project Finance / Term Loans for Expansion - Arranges Long-term loans for setting up new projects from Financial Institutions and Banks External Commercial Borrowings - Arranges Libor-linked long-term loans from overseas lenders in the form of ECBs
36
Project/ Structured Finance
With a view to capitalize on the opportunities in the infrastructure, core and emerging sectors, ABFL has expanded its product suite to include project and structured finance solutions catering primarily to the growing mid-market clients across the country. Through this initiative, ABFL would not only provide finance but also syndication and financial services leveraging on its synergies across businesses. The company hopes to thus contribute to the development of infrastructure facilities of the country which is a key driver for growth and development
Headquartered in Mumbai, Aditya Birla Finance has a wide network through its branches and associates across the country.
Through our lending and financing solutions we enable you to pursue ambitious growth strategies and execute value-creating transactions. Our aim is to open up a world of opportunities for you and help you achieve your full potential.
Aditya Birla Finance is a part of Aditya Birla Financial Services Group.
37
Chapter 4
SWOT Analysis
38
4. SWOT
STRENGTHS: Strong brand recognition: Aditya Birla is a successful corporate with an enviable track record, both in India and overseas which has a caring corporate citizen with benchmarked governance practices Anchored by 72,000 employees and trusted by 700,000 shareholders. As a result of which Aditya Birla has built a brand image which is trusted and recognised by people throughout the world. Growing international presence: Aditya Birla operates globally in over 25 different countries like India, USA, UK, Germany, Canada, Brazil, Switzerland, Portugal, China, Australia etc. Overseas operations contribute over 25% of Group revenues. Manufacturing across 9 countries in 3 continents. Superior research and development department: Focus on improving efficiency and returns by investing in research and development. . The company aims to be a world-class organization that delivers innovative solutions, continuously improves core competencies and executes effectively. The centre is supported by state-of-the-art equipment set in a one-of-a-kind brand new technology-led environment. Strong sense of culture in the working environment: At the Aditya Birla Group, opportunities are abundant, the environment warm and the people friendly. Minds are constantly in motion researching, innovating and creating ideas that push as many as 19 industries, forward. Aditya Birla Group constantly strives to be and do better than the best. Aditya Birla Group endeavour to create an ambience where people have the tools and the freedom to deliver their commitments and take great pride in their work. In the fertile ethos of Aditya Birla Group, they find a career that is personally rewarding and professionally enriching. Effective Leadership: In January 2007, we launched LEAD (Leadership Program for the Experienced), an Aditya Birla Group Leadership Program to groom exceptional individuals to be the future leaders of the Aditya Birla Group. LEAD is an intensive six - month, on - the - job training
39
program. Individuals with at least four years of pre or post MBA experience are eligible to apply for LEAD Aditya Birla has also built a prestigious Client Base e also known for their customer loyalty, Aditya Birla has achieved technological excellence over diversified business WEAKNESSES: Complexity of operation Financial innovation has over the last few decades allowed us to share risk more effectively than before. At the same time, however, it has introduced a large number of often complex securities, which investors and risk managers have to deal with. We argue that while complexity is an important concept in financial markets with bounded rational agents, it is surprisingly hard to find a workable definition of complexity, posing a challenge for policy proposals that target complex securities. We highlight three ways in which bounded rational investors can deal with complexity: (i) By dividing up difficult problems into smaller sub-problems or by using separation results, (ii) (iii) By using models, but keeping in mind potential modelling pitfalls, Through standardization and commoditization of securities or investor
restrictions. We also point out that, simply increasing the quantity of information disclosed to investors does not resolve complexity, since in the presence of bounded rationality it leads to information overload.
40
OPPORTUNITIES: Growth of core sector industries: Growth is something for which most companies, large or small, strive. Small firms want to get big, big firms want to get bigger. Indeed, companies have to grow to survive in the market. Aditya Birla group can rapidly integrate with global economy by targeting the booming construction business in Asia. Aditya Birla Finance has immense opportunity in growing e-commerces business.
THREATS: Competition persists in all and every field of business. There is always a risk of take over Political impact generally is an external factor which cannot be controlled by any business. The impact of foreign currency fluctuation and interest rates: For growing companies that are early in their industry/business development lifecycle, currency management should be a low-level concern. . As a company and/or its industry matures and management becomes focused on "optimization" issues, then currency management will rise in importance as a business factor. Since Aditya Birla is an established firm, it has to concentrate on optimization and currency management.
41
Chapter 5
Conclusion and Suggestions
42
Conclusion:
This internship is the first major industrial exposure wherein we got an overall view of the company. We found out about the management hierarchy, basic departments and the layout which enhanced our managerial knowledge. Organizational study of this organization has been fruitful. Further it has also given me an opportunity to learn how each section within a department functions and also how the corporate office coordinates with the various divisions. It emphasises the interdependency and cross functionality among various departments and divisions within the organization. The study in this organization proved to be a platform for viewing the inputs gained in the classroom being put into practice. It very well emphasizes the need for the study of MBA.
Suggestions
Must concentrate on the untapped market in order to be more competitive Aditya Birla Finance must provide training for all the employees on a regular basis which can improve the performance and achieve higher productivity. The head count in each department must be analysed to suit the Organizational requirement, along with reducing stress for all its employees.
43
Annexure
Aditya Birla Money
Balance sheet
------------------- in Rs. Cr. ------------------Mar '10 Mar '09 Mar '08
12 mths
12 mths
12 mths
Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 5.54 5.54 0 0 49.38 0 54.92 5 35 40 94.92 5.54 5.54 0 0 39.9 0 45.44 0 5 5 50.44 5.54 5.54 0 0 39.56 0 45.1 40.3 0.06 40.36 85.46
44
Mar '10
Mar '09
Mar '08
12 mths Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deferred Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses 58.85 24.34 34.51 1.32 2.01 0 81.47 23.29 104.76 32.93 53.68 191.37 0 132.41 1.86 134.27 57.1 0 94.94 Total Assets Contingent Liabilities Book Value (Rs) 12.54 9.91
12 mths
12 mths
53.58 18.87 34.71 0.17 2.03 0 23.91 13.85 37.76 24.92 26.87 89.55 0 74.64 1.36 76 13.55 0 50.46
46.31 14.28 32.03 0 2.05 0 55.46 47.09 102.55 30.66 46.54 179.75 0 115.24 13.13 128.37 51.38 0 85.46
6.54 8.2
2.81 81.42
45
Profit & Loss account of Aditya Birla Money

------------------- in Rs. Cr. -----------------
Mar '10 Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalized Total Expenses 0 0 23.56 0 14.47 38.78 0 76.81 12 mths 97.7 0 97.7 2.92 0 100.62
Mar '09 12 mths 67.82 0 67.82 2.86 0 70.68
Mar '08 12 mths 119.59 0 119.59 3.22 0 122.81
0 0 17.96 1.01 11.65 27.12 0 57.74
0 0 18.88 0.66 14.11 40.74 0 74.39
46
Mar '10
Mar '09
Mar '08
12 mths Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualized) Shares in issue (Lakhs) Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs) 554 1.71 0 9.91 20.89 23.81 2.61 21.2 5.67 0 15.53 0 15.53 6.05 9.48 76.81 0 0 0
12 mths 10.08 12.94 5.53 7.41 4.73 0 2.68 0 2.68 2.05 0.64 57.74 0 0 0
12 mths 45.2 48.42 8.31 40.11 3.57 0 36.54 -0.55 35.99 14.39 22.14 74.39 0 4.43 0.75
554 0.11 0 8.2
55.4 39.96 80 81.42
47
Ratios
------------------- in Rs. Cr. ------------------Key Financial Ratios
Mar '10 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin (%) Profit Before Interest And Tax Margin (%) Gross Profit Margin (%) Cash Profit Margin (%) Adjusted Cash Margin (%) Net Profit Margin (%) Adjusted Net Profit Margin (%) Return On Capital Employed (%) Return On Net Worth (%) Adjusted Return on Net Worth (%) 15.57 15.35 15.35 9.38 9.38 19.49 17.25 17.91 21.38 15.06 1 -3.77 17.64 8.71 50
Mar '09
Mar '08
1 -1.82 12.24 6.99 50
10 8 81.59 215.87 69.33 50
14.86 7.55
37.79 33.88
7.88 7.78 7.78 0.89 0.89 16.56 1.39 1.71
34.8 20.96 20.96 18.02 18.02 52.52 49.08 49.17
48
Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds (%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio
9.91
8.2
81.42
9.91
8.2
81.42
30.87 1.13 1.43 0.73 0.09
18.38 1.11 1.18 0.11 --
52.52 1.4 1.4 0.89 0.89
10.44 0.73 9.25 6.8
2.04 0.11 2.37 1.97
5.46 0.89 5.83 4.09
-1.85 ---2.2
-1.71 ---1.6
-2.22 --1.57 3.24
-Average Raw Material Holding --
---
---
49
Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales
210.34 --0.52 --
71.89 --1.1 --0.91 --
154.66 --
--
--
23.42
Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio
-100 100 2.58
-100 100 0.91
20.16 76.63 79.87 1.57
Adjusted Cash Flow Times Mar '10 Earnings Per Share Book Value 1.71 9.91 Mar '09 0.11 8.2 Mar '08 39.96 81.42
50
Aditya Birla Chemical Balance Sheet

------------------- in Rs. Cr. -------------------
Mar '11 Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 12 mths 23.39 23.39 0 0 328.66 0 352.05 26.05 0.1 26.15 378.2
Mar '10 12 mths 23.39 23.39 0 0 265.97 0 289.36 43.8 0.26 44.06 333.42
Mar '09 12 mths 23.39 23.39 0 0 216.57 0 239.96 45.76 0.41 46.17 286.13
51
Mar '11
Mar '10
Mar '09
Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses
12 mths 384.17 143.45 240.72 14.13 46.02 19.56 25.36 63.02 107.94 28.17 0 136.11 0 53.67 5.11 58.78 77.33 0 378.2
12 mths 379.19 125.57 253.62 2.72 30.94 20.81 24.95 3.26 49.02 24.84 41.99 115.85 0 59.37 10.35 69.72 46.13 0 333.41
12 mths 374.34 105.82 268.52 1.4 0.3 11.13 20.55 1.02 32.7 32.7 28.95 94.35 0 70.88 8.2 79.08 15.27 0.61 286.1
Total Assets Contingent Liabilities Book Value (Rs) 79.72 150.53 74.54 123.73 72.27 102.6
52
Profit & Loss account

12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 113.37 19.52 13.22 4.13 0 8.46 0 158.7 262.65 24.82 237.83 15.2 0.11 253.14
12 mths
12 mths
243.55 19.17 224.38 4.46 -0.75 228.09
231.58 26.56 205.02 5.45 -0.05 210.42
104.46 17.47 13.25 3.08 6.81 2.21 0 147.28
97.16 9.04 13.17 2.83 5.41 2.95 0 130.56
53
Mar '11 12 mths
Mar '10 12 mths
Mar '09 12 mths
79.24 Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) 94.44 2.64 91.8 20.36 0 71.44 -0.41 71.03
76.35
74.41
80.81 3.57 77.24 20.04 0.57 56.63 7.34 63.97
79.86 5.58 74.28 18.71 0.55 55.02 1.16 56.18
Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualized)
8.74 62.71 45.32 0 1.17 0.19
10.48 60.74 42.81 0 3.51 0.58
9.53 46.08 33.41 0 3.51 0.6
Shares in issue (Lakhs) Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs)
233.87 26.81 5 150.53
233.87 25.97 15 123.73
233.87 19.7 15 102.6
54
Key Financial Ratios

------------------- in Rs. Cr. -------------------
Mar '11 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations 33.32 23.27 24.76 32.83 32.83 24.78 24.78 19.58 17.81 17.81 150.53 150.53 10 0.5 33.89 101.7 --
Mar '10
Mar '09
10 1.5 32.65 95.94 --
10 1.5 31.81 87.67 --
34.02 24.6 25.09 29.18 29.18 26.53 26.53 18.07 20.99 15.96 123.73 123.73
36.28 26.39 27.16 30.9 30.9 21.84 21.84 21.33 19.25 19.18 102.34 102.34
55
Return on Long Term Funds(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax
19.58
18.65
21.41
2.32 1.98 0.07 0.07
1.28 1.35 0.15 0.12
1.16 1.04 0.19 0.19
28.06 0.07 35.77 32.47
16.87 0.15 22.64 23.77
10.94 0.19 14.39 12.71
Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio 13.43 9.45 13.43 0.62 0.63 0.62 13.05 9.86 13.05 0.59 0.68 0.59 26.19 11.46 26.19 0.55 0.72 0.55
Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition
--117.06
63.03 3.15 74.02
22.02 5.88 26.84
47.66 --
46.55 --
47.39 --
--
1.88
1.32
56
Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio
0.2
0.22
0.38
2.16 1.63 97.84 98.37 0.31
6.73 5.02 91.15 93.88 0.66
8.9 6.28 91.07 93.71 0.71
Adjusted Cash Flow Times Mar '11 Earnings Per Share Book Value 26.81 150.53 Mar '10 25.97 123.73 Mar '09 19.7 102.6
57
Aditya Birla Nuvo
Balance Sheet
------------------- in Rs. Cr. -------------------
Mar '10
Mar '09
Mar '08
12 mths
12 mths
12 mths
Sources Of Funds Total Share Capital Equity Share Capital Share Application Money 103.11 103.01 142.07 95.01 95.01 377.41 95.01 95.01 377.41
Preference Share Capital
0.1
Reserves Revaluation Reserves Net worth Secured Loans Unsecured Loans Total Debt Total Liabilities
4,416.33 0 4,661.51 2,067.38 1,568.27 3,635.65 8,297.16
3,649.24 0 4,121.66 2,217.07 2,282.14 4,499.21 8,620.87
3,551.32 0 4,023.74 1,856.72 886.7 2,743.42 6,767.16
58
Mar '10 12 mths
Mar '09 12 mths
Mar '08 12 mths
Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deferred Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses 3,564.71 2,012.49 1,552.22 263.06 5,435.85 876.34 693.33 13.18 1,582.85 684.4 1.13 2,268.38 0 1,104.09 118.26 1,222.35 1,046.03 0 8,297.16 Total Assets Contingent Liabilities Book Value (Rs) 809.65 438.73 991.33 394.09 810 383.79 3,290.16 1,813.95 1,476.21 128.78 5,712.39 747.6 887.23 36.05 1,670.88 557.7 53.76 2,282.34 0 882.41 96.44 978.85 1,303.49 0 8,620.87 3,111.78 1,680.89 1,430.89 70.73 4,054.17 776.6 760.98 56.19 1,593.77 502.11 40.96 2,136.84 0 791.99 133.48 925.47 1,211.37 0 6,767.16
59
Profit & Loss account

12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses 2,577.99 431.57 347.63 117.12 4,981.85 160.4 4,821.45 -64.69 -3.16 4,753.60
12 mths
12 mths
4,997.21 211.08 4,786.13 60.24 17.89 4,864.26
4,145.75 212.8 3,932.95 69.94 83.17 4,086.06
2,749.62 537.38 287.91 115.43
2,236.86 359.66 258.2 115.89
Selling and Admin Expenses
493.13
463.92
367.72
Miscellaneous Expenses Preoperative Exp Capitalised
91.26 0
85.18 0
93.03 0
Total Expenses
4,058.70
4,239.44
3,431.36
60
Mar '10 12 mths
Mar '09 12 mths
Mar '08 12 mths
Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised)
759.59 694.9 334.1 360.8 180.1 0 180.7 4.25 184.95 41.15 283.4 1,480.71 0 51.51 7.95
564.58 624.82 290.64 334.18 165.96 0 168.22 29.23 197.45 60.02 137.43 1,489.82 0 38 4.43
584.76 654.7 204.47 450.23 141.1 0 309.13 41.18 350.31 107.24 243.07 1,194.50 0 54.63 9.28
Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)
1,030.10 27.51 50 438.73
950.09 14.46 40 394.09
950.08 25.58 57.5 383.79
61
Key Financial Ratios

------------------- in Rs. Cr. -------------------
Mar '10 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) 8.95 438.73 12.01 9.23 9.23 5.79 5.79 7.79 6.27 6 438.73 15.75 11.85 10 5 73.74 468.06 393.52 22.68
Mar '09
Mar '08
10 4 59.42 503.75 378.8 24.59
10 5.75 61.55 413.96 370.52 24.59
11.79 8.22
14.86 11.17
8.32 5.62 5.62 2.83 2.83 5.3 3.67 2.84 394.09
11.28 7.8 7.8 6.12 6.12 7.1 6.66 4.63 383.79
394.09
383.79
7.13
8.75
62
Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio 1.94 0.8 2.47 1.57 1.2 2.14 2.35 0.75 3.04 0.97 1.11 0.8 0.6 0.71 1.54 1.2 0.71 1.04 1.44 0.75 0.5
Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital
2.39
2.04
2.88
6.41 6.1 6.41 1.44 0.6 1.44 68.37 24.93 78.1
7.51 5.81 7.51 1.55 0.57 1.55 49.72 23.87 98.05
5.99 5.8 5.99 1.35 0.6 1.35 70.15 28.62 110.88
63
Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times 20.98 12.82 78.1 86.84 8.05 Mar '10 30.87 13.98 60.1 84.42 16.52 Mar '09 26.29 16.63 62.18 79.39 8.85 Mar '08 13 13.39 16 7.02 6.69 6.48 53.46 56.59 57.44 61 56.87 59.49
Earnings Per Share Book Value
27.51 438.73
14.46 394.09
25.58 383.79
64
Bibliography/ Webliography
http://www.adityabirla.com/ http://www.adityabirlafinance.com/ http://www.moneycontrol.com/stocksmarketsindia/
65

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AN ORGANIZATION STUDY AT

Aditya Birla Finance

Observation, Suggestions and Conclusions Suggestions Annexure Bibliography

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

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

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

1.1 BACKGROUND OF THE STUDY

OBJECTIVE OF THE STUDY

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

1.2 INDUSTRY PROFILE

Finance Companies of India

List of Top Finance Companies of India SBI Capital Markets Limited

Bajaj Capital Limited

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

DSP Meriyll Lynch Limited

Birla Global Finance Limited

Housing Development Finance Corporation

PNB Housing Finance Limited

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

LIC Finance Limited

L & T Finance Limited

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

1.3 COMPANY PROFILE

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

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

1.4 Corporate Social Responsibility

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

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

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

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

1.5 VISION, MISSION AND VALUE ADITYA BIRLA VISION

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

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

2.1 CORPORATE ORGANIZATION STRUCTURE

2.2 DEPARTMENTAL ORGANIZATIONAL STRUCTURE

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

2.3 AUTHORITY AND RESPONSIBILITY RELATIONSHIP

ADITYA BIRLA GROUP

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

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

ADITYA BIRLA MINACS WORLWIDE LTD Sectors: Products: IT-ITeS IT-ITeS

COMES UNDER ABN

ADITYA BIRLA CHEMICALS (INDIA)LTD Sectors: Products: Chemicals Caustic soda

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

ABML Sectors: Products: Financial services Broking

ADITYA ISPAT LTD SECTOR & PRODUCT: Iron & Steel/Interm.Products

ADITYA FORGE LTD SECTOR: Other Industrial Products

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

IDEA CELLULAR LTD. SECTOR: Telecom Services

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

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

3. FUNCTIONAL AREAS 3.1 Human Resource Department

3.2 Capital Market Group

3.3 Corporate Finance Group

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

3.4 Risk Management Group (RMG)

3.5 Middle office group

3.7 Information Technology

FINANCE DEPARTMWENT Capital Market Solutions

Security Loan amount Margin Interest rate

Documentation Custodian charges

Standard Loan Documents with PDC l At Actuals

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