Shivaraj Final Report

7/30/2019 Shivaraj Final Report

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ICICI BANK

GLOBAL COLLEGE OF MANAGEMENT & IT, HUBLI Page 1

Karnataka University Dharwad

Global College of Business Management & IT

Akshay colony, Hubli.

An empirical study on

HUBLI

Guide

Prof. Jayshree K.

Submitted by

Mr. Pandurang K.Hanamasagar

URN: 09B11822

BBA VI SEMESTER

2011-2012


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GLOBAL COLLEGE OF BUSINESS MANAGEMENT & IT

Akshay colony, Hubli.

(Affiliated to Karnataka University, Dharwad and recognized by Govt. of

Karnataka)

CERTIFICATE

This is to certify that Mr. Pandurang K.Hanamasagar URN:09b11822 has

satisfactorily completed his project entitled TAX-PLANNING OF SALARIED

PERSONS, HUBLI.In the partial fulfillment of the requirement of bachelor of

business administration, during the academic year 2011-12.

Internal Guide External Guide

Prof. Jayshree K.M.com Mr. Anand.Shenoy


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DECLARATION

I hereby affirm that this project report A Project on A Study on the Customer

relationship Management Adopted By ICICI Prudential Insurance Company Ltd

HUBLI hasbeen under taken by me during the period 1st December 2011 to 30th December2011 as a part of my academic curriculum.

I further declare that, this project report is the result of my own efforts and has not

been submitted earlier to any other college/university for award of any other degree.

DATE: _________ Bhramkumar.S.K

Reg.no: 08b14803 PLACE: HUBLI


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ACKNOWLEDGEMENT

The successful accomplishment of any task is incomplete without

acknowledging the personalities who have contributed, assisted and inspired

me.

I would like to thank my parents for supporting me in doing this project.

I would like to thank KARNATAK UNIVERSITY DHARWAD for giving an

opportunity to work on a valuable project.

At the outset I would like to acknowledge my sincere gratitude to ICICI life

insurance pvt ltd for allowing me to take my implant training at their in the

same.

I express my sincere thanks to Prof.Ravikumar.Kabbinad for rendering her

kind cooperation and help without which my project would have been

incomplete.

At the same time I would like to take this opportunity to thank our

beloved Principal Prof.Ravikumar.Kabbinad and BBA Co-ordinator

Dr.Mahesh.Deshpande who supported me and for their guidance of this

project.

I would like to express my gratitude to all those who directly and

indirectly assisted me in completing the project report.

Bhramkumar.S.KReg.no: 08b14803


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EXECUTIVESUMMARY

In any organization, the two important financial statements are the

Balance sheet & Profit and loss account ofthe business. Balance sheet is a statement of the

financial position of an enterprise at a particular point of time. Profit and loss account shows the net

profit or net loss of a company for a specified period of time. When these statements of the last few

year of any organization are

studied and analyzed, significant conclusions may be arrived regarding thechanges in the

financial position, the important policies followed and trends in profit and loss etc. Analysis and

interpreta tion of the financia l statement has now become an important technique of credit appraisal.

The investors, financial experts, management executives and the bankers all analyze these statements.

Though the basic technique of appraisal remains the same in all the cases

butt h e a p p r o a c h a n d t h e e m p h a s i s i n a n a l y s i s v a r y . A b a n k e r i n t e r p r e t s t h

e financial statement so as to evaluate the financial soundness and stability, the liquidity position

and the profitability or the earning capacity of

borrowingc o n c e r n . A n a l y s i s o f f i n a n c i a l s t a t e m e n t i s n e c e s s a r y b e c a u s e i t

he lp in depic ting the f inancia l pos i t ion on the bas i s of pas t and cur rent r ecords

. A n a l ys i s o f f i n a n c i a l s t a t e m e n t h e l p s i n m a k i n g t h e f u t u r e d e c i s i o n a n d s

trategies. Therefore, it is very necessary for every organization whether it is a financial or manufacturing

etc. to make financial statement and to analyze it.

INTRODUCTION

Objective of Study

The main objectives of this project are the following:

To Study About Fundamental Analysis of ICICI Bank.

Company Profile


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ICICI BANK:

ICICI Bank is Indias second-largest bank with total assets of363866.83 Crores at March 31,

2010.and profit after tax of Rs. 41.58 billion for the year ended March 31, 2010

. ICICI Bank is the most valuable bank in India in terms of market capitalization and is ranked second

Amongst all the companies listed on the Indian stock exchanges.

In terms of free float market capitalization*.The Bank has a network of about 1308

Branches and 3,950 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of

banking products and financia l services to corporate and re tail customer through a variety

of delivery channels and through its specialized subsidiaries and affiliates in the areas of

investment banking, life and non-li fe insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore,

Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Center and representative

offices in the

UnitedStates, United Arab Emirates, China, South Africa, Bangladesh, Thailand , Malaysia

and Indonesia. UK subsidiary has established a branch in Belgium.ICICI Bank's

Equity shares are listed in India on Bombay Stock Exchange (BSE) and the

Nation al Sto ck Ex chang e (NSE) of Ind ia Limi ted an d its American Depositary

Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

HISTORY:

ICICI Bank was originally promoted in 1994 by ICICI Limited , an Indian

financial institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was

reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in

the form of ADRs li st ed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura

Limited in an all Stock amalgamation i n f i s c a l 2 0 0 1 ,

a n d s e c o n d a r y m a r k e t s a l e s b y I C I C I t o institutional investors in fiscal 2001


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and fiscal 2002. ICICI was formed in 1955at the initiative of the World Bank, the Government of India and

representatives

of I n d i a n i n d u s t r y . T h e p r i n c i p a l o b j e c t i v e w a s t o c r e a t e a d e v e l o p m e n t fina

ncial institution for providing medium-term and long-term project

financingto Indian businesses.In the 1990s, ICICI transformed its business from ad

evelopment financial institution offering only project finance to a diversified financial services group

offering a wide variety of products and services, both directly and through a number of subsidiaries

and affiliates like ICICI Bank. In1999, ICICI become the first Indian company and the first

bank or financial institution from non-Japan Asia to be listed on the NYSE.After consideration of various

corporate structuring alternatives in the context of the emerging competitive scenario in the

Indian banking industry, and the move towards universal banking, the managements of

ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the

optimalstrategi c a l ternat ive for both enti t i es , and would create the optim al l egalstr

ucture for the ICICI group's universal banking strategy. The merger would enhance value for ICICI

shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-

based income and the ability to participate in the payments system and provide transaction-banking

services. The merger would enhance value for ICICI Bank shareholders through a large capital base

and scale of operations, seamless access to ICICI's strong corporate relationships built up over five

decades, entry into new business

segments,higher market share in var ious bus iness segments , par t icular ly fe e-

ba se dservices, and access to the vast talent pool of ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI

and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited

and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by

shareholders of ICICI and ICICI Bank in January 2002, by the High Citst of Gujarat at

Ahmedabad in March2002, and by the High Cost of Judicature at Mumbai and the Reserve Bank

of India in April 2002. Consequent to the merger, the ICICI group's financing and banking

operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank has

formulated a Code of Business Conduct and Ethics for its directors and employees


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Economic Analysis

The Level of economic Activity has an impact on investment in many ways. If the economy grows

rapidly, the industry can also be expected to show rapid growth and vice versa. When the level of

economic activity is low, stock prices are low, and when the level of economic activity is high, stock

prices are high reflecting the prosperous outlook for sales and profits of the firms. The analysis of

macroeconomic environment is essential to understand the behavior of the stock prices .The

commonly analyzed Macro economic factors are as follows

A) Gross Domestic product ( GDP )

GDP indicates the rates of growth of the economy. GDP represents the aggregate value of the goods

and services produced in the economy. GDP consists of personal consumption expenditure, gross

private domestic investment and government expenditure on goods and services and net export of

goods and services. The estimates of GDP are available on an annual basis. The rate of growth of

GDP is around 6% in the nineties. The GDP growth in 2001-02 accelerated to 4.4% compared to 4%

of the previous year despite of drought in the country. In the fiscal year Agricultural growth has been

reduced from 5.3% to 3.7% whereas Industrial growth has been increased to 6.1% to 3.3%.

Introduction to Banking Sector

The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949 can

be broadly classified into two major categories, non-scheduled banks and scheduled banks.

Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership,

commercial banks can be further grouped into nationalized banks, the State Bank of India and its

group banks, regional rural banks and private sector banks (the old/ new domestic and foreign).

These banks have over 67,000 branches spread across the country.

The industry is currently in a transition phase. On the one hand, the PSBs, which are the mainstay of

the Indian Banking system are in the process of shedding their flab in terms of excessive manpower,

excessive non Performing Assets (Npas) and excessive governmental equity, while on the other hand

the private sector banks are consolidating themselves through mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking industry assets are saddled


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with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues from traditional sources, lack

of modern technology and a massive workforce while the new private sector banks are forging ahead

and rewriting the traditional banking business model by way of their sheer innovation and service.

The PSBs are of course currently working out challenging strategies even as 20 percent of their

massive employee strength has dwindled in the wake of the successful Voluntary Retirement

Schemes (VRS) schemes.

The private players however cannot match the PSBs great reach, great size and access to low cost

deposits. Therefore one of the means for them to combat the PSBs has been through the merger and

acquisition (M& A) route. Over the last two years, the industry has witnessed several such instances.

For instance, HDFC Banks merger with Times Bank ICICI Banks acquisition of ITC Classic,

Anagram Finance and Bank of Madura. Centurion Bank, IndusInd Bank, Bank of Punjab, Vysya

Bank are said to be on the lookout. The UTI bank- Global Trust Bank merger however opened a

Pandoras box and brought about the realization that all was not well in the functioning of many of

the private sector banks.

Aggregate Performance of the Banking Industry

Aggregate deposits of scheduled commercial banks increased at a compounded annual average

growth rate (Cagr) of 17.8 percent during 1969-99, while bank credit expanded at a Cagr of 16.3

percent per annum. Banks investments in government and other approved securities recorded a Cagr

of 18.8 percent per annum during the same period.

In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP) growth of only 6.0

percent as against the previous years 6.4 percent. The WPI Index (a measure of inflation) increased

by 7.1 percent as against 3.3 percent in FY00. Similarly, money supply (M3) grew by around 16.2

percent as against 14.6 percent a year ago.

The growth in aggregate deposits of the scheduled commercial banks at 15.4 percent in FY01

percent was lower than that of 19.3 percent in the previous year, while the growth in credit by SCBs

slowed down to 15.6 percent in FY01 against 23 percent a year ago.


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The industrial slowdown also affected the earnings of listed banks. The net profits of 20 listed banks

dropped by 34.43 percent in the quarter ended March 2001. Net profits grew by 40.75 percent in the

first quarter of 2000-2001, but dropped to 4.56 percent in the fourth quarter of 2000-2001.

Interest Rate Scene

The two years, post the East Asian crises in 1997-98 saw a climb in the global interest rates. It was

only in the later half of FY01 that the US Fed cut interest rates. India has however remained more or

less insulated. The past 2 years in our country was characterized by a mounting intention of the

Reserve Bank Of India (RBI) to steadily reduce interest rates resulting in a narrowing differential

between global and domestic rates.

The RBI has been affecting bank rate and CRR cuts at regular intervals to improve liquidity and

reduce rates. The only exception was in July 2000 when the RBI increased the Cash Reserve Ratio

(CRR) to stem the fall in the rupee against the dollar. The steady fall in the interest rates resulted in

squeezed margins for the banks in general.

Governmental Policy

After the first phase and second phase of financial reforms, in the 1980s commercial banks began to

function in a highly regulated environment, with administered interest rate structure, quantitative

restrictions on credit flows, high reserve requirements and reservation of a significant proportion of

lendable resources for the priority and the government sectors. The restrictive regulatory norms led

to the credit rationing for the private sector and the interest rate controls led to the unproductive use

of credit and low levels of investment and growth. The resultant financial repression led to decline

in productivity and efficiency and erosion of profitability of the banking sector in general.

This was when the need to develop a sound commercial banking system was felt. This was worked

out mainly with the help of the recommendations of the Committee on the Financial System

(Chairman: Shri M. Narasimham), 1991. The resultant financial sector reforms called for interest


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rate flexibility for banks, reduction in reserve requirements, and a number of structural measures.

Interest rates have thus been steadily deregulated in the past few years with banks being free to fix

their Prime Lending Rates(PLRs) and deposit rates for most banking products. Credit market

reforms included introduction of new instruments of credit, changes in the credit delivery system and

integration of functional roles of diverse players, such as, banks, financial institutions and non-

banking financial companies (Nbfcs). Domestic Private Sector Banks were allowed to be set up,

PSBs were allowed to access the markets to shore up their Cars.

Indian Banking Sector Analysis (2006-2007), provides extensive research and objective analysis on

the growing banking industry, their product quality, and their services in India. This report helps

clients to analyze the leading-edge opportunities critical to the success of the banking Industry in

India. Detailed data and analysis helps an investor, financial service providers, and global banking

players navigate the evolving market of banks in India.

Key Findings:

-The nationalized banks have more branches than any other types of banks in India. Now there are

about 33,627 Branches in India, as on March 2005.

-Investments of scheduled commercial banks (SCBs) also saw an increase from Rs 8,04,199 crore in

March 2005 to Rs 8,43,081 crore in the same month of 2006.

-India's retail-banking assets are expected to grow at the rate of 18% a year over the next four years

(2006-2010).

-Retail loan to drive the growth of retail banking in future.

-Housing loan account for major chunk of retail loan

BOARD OF DIRECTORS

MR. N.Vaghul (CHAIRMAN)

MR. Sridar Iyengar


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MR. Lakshmi N. Mittal

MR. Narendra Murkumbi

MR. Anupam Puri

Mr. Arun Ramanathan

MR. M. K. Sharma

MR. P.M. Sinha

Prof. Marti G. Subrahmanyam

MR. T. S. Vijaya

MR. V. Prem Wasta

MR. K. V. Kamath (MANAGING DIRECTOR & CEO)

MR. Chanda Kochhar (JOINT MANAGING DIRECTOR)

MR. V. Vaidyanathan, (EXECUTIVE DIRECTOR)

Ms. Madhabi Puri-Buch, Executive Director

MR. Sonjoy Chatterjee (EXECUTIVE DIRECTOR)

Board Committees

Audit CommitteeBoard Governance, Remuneration &

Nomination Committee


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Mr. Sridar Iyengar, Chairman

Mr. Homi Khusrokhan,

Mr. M.S. Ramachandran

Mr. V. Sridar

Mr. Sridar Iyengar, Chairman

Mr. K.V. Kamath

Mr. Homi Khusrokhan

Corporate Social Responsibility

CommitteeCustomer Service Committee

Mr. M.S. Ramachandran, Chairman

Mr. Arvind Kumar

Dr. Tushaar Shah

Ms. Chanda Kochhar

Mr. K.V. Kamath, Chairman


Mr. V. Sridar

Ms. Chanda Kochhar

Credit Committee Fraud Monitoring Committee

Mr. K.V. Kamath, Chairman


Mr. Homi Khusrokhan

Ms. Chanda Kochhar

Mr. V. Sridar, Chairman

Mr. K.V. Kamath

Mr. Homi Khusrokhan

Mr. Arvind Kumar

Ms. Chanda Kochhar

Mr. Rajiv Sabharwal

Information Technology (IT)

Strategy Committee

Risk Committee

Mr. Homi Khusrokhan, Chairman Mr. K.V. Kamath, Chairman


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Mr. K.V. Kamath

Mr. Sridar Iyengar

Ms. Chanda Kochhar

Mr. Sridar Iyengar

Mr. Arvind Kumar

Mr. V. Sridar

Ms. Chanda Kochhar

Share Transfer & Shareholders'/

Investors' Grievance CommitteeCommittee of Executive Directors

Mr. Homi Khusrokhan, Chairman

Mr. V. Sridar

Mr. N.S. Kannan

Ms. Chanda Kochhar, Chairperson

Mr. N.S. Kannan

Mr. K. Ramkumar

Mr. Rajiv Sabharwal

VISION AND MISSION


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Vision

To be the l eading provider of financial services in India and major global bank.

Mission

We will leverage our people, technology, speed and financial capital to:

Be the ban ker of firs t c hoi ce for our cus tom ers by del ive rin g high quality, world-

class products and services.

Expand the frontiers of our business globally.

Play a proactive role in the full realization of Indias potential.

Maintain a healthy financial profile and diversify our earnings across businesses

and geographies.

Maintain high standards of governance and ethics.

Con tri but e po siti vel y to the var iou s c oun trie s an d ma rket s in which we operate.

Create value for our stakeholders.

RISK ASPECTS OF ICICI BANK

RISK MANAGEMENT


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Risk is an integral part of the banking business and bank aim at delivering superior

shareholder value by achieving an appropriate trade-off between risk and returns. Bank is exposed to

various risks, including credit risk, market

risk and operational risk. Banks r i sk management s t rategy is based o n a clear un

derstanding of various risks, disciplined risk assessment and measurement procedures and

continuous monitoring. The policies and procedures established for this purpose are continuously benchmarked with

international best practices. Bank has two dedicated groups, the RISK MANAGEMENT

GROUP (RMG)

a n d C O M P L I A N C E & A U D I T G R O U P ( C A G ) w h i c h i s r e s p o n s i b l e f o r a ss

essment, management and mitigation of risk in ICICI Bank. These groups from parts of

the co rporate center are completely independent of al l business operations and are

accountable to the Risk and Audit committees of the Board of directors. RMG is further organized

into the Credit Risk Management group, M a r k e t R i s k M a n a g e m e n t g r o u p , a n d

R e t a i l R i s k M a n a g e m e n t g r o u p a n d Operational Risk Management group. CAG is

further organized into the Credit Policies , RBI Inspection & Anti -Money Laundering Group

and the Internal Audit Group.

CREDIT RISK

Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender. Bank

measure, monitor and manage credit risk for each borrower and also at the portfolio level. Bank has

standardized credit-approval processes, which include a well-established procedure for comprehensive

credit appraisal and rating. ICICI Bank has well developed internal credit rating methodologies fo r

rating obligors. The rating factors in quantitative, qualitative issues and credit

enhancement features specific to the transaction. The rating serves as a key input in the approval

as well as post-approval credit processes.

Indust ryknowledge is cons tant ly updated through f ield vis i t s and interact ions

with clients, regulatory bodies and industry experts. In retail credit operations, the Board or a Board

Committee approves all products, policies and authorizations Credit approval authority lies only

with the credit officers who are distinct from


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the sales team. Credit scoring models are used in the case of certain products like credit cards.

External agencies such as field investigation

agenciesand credit processing agencies are used to facilitate a comprehensive

due diligence process including visits to offices and homes in the case of loans to individual

borrowers.

MARKET RISK

Market risk is the risk of loss resulting from changes in interest rates, foreign currency exchange

rates, equity prices and commodity prices. The objective of market risk management is to

minimize the impact of losses on earnings and equity capital due to market risk. Market risk

policies include the Investment Policy and the Asset-Liabil ity Management (ALM) Pol icy.

The policies are approved by the Board of Directors. The Asset Liability Management Committee

(ALCO) of the Board of Directors stipulate liquidity and

interestrate risk limits, monitors adherence to limits, articulates the organisationsintere

s t rate view and determines the s t rategy in l ight of the current andexpected envi

ronment. These policies and processes are articulated in theALPM policy. The

investment policy addresses issues related to investment in various trading products. RMG exercises

independent control over the

processo f m a r k e t r i s k m a n a g e m e n t a n d r e c o m m e n d s c h a n g e s i n p r o c e s

s a n d methodologies for measuring market risk Interest rate risk is measured

throughthe use of repricing gap analysis and duration analysis . Liquidity r isk ism

easure d thro ugh gap a nalysi s . Ban ks ens ure ad equat e l iqu idit y at al l t imethrough

systematic funds planning and maintenance of liquid investment as well as focusing on more stable funding

sitsces such as retail deposits. ICICI Bank limit exposure to exchange rate risk by stipulating

position limits. The treasury Middle Office Group monitors the asset-liability position

underthe supervisionof the ALC O. The Tre asu ry Mid dle Offi ce Grou p is als o resp on

s ib le f or p r o c e s s i n g t r e a s u r y t r a n s a c t i o n s , t r a c k i n g t h e d a i l y f u n d s p o s i t i

on andcomplying with al l t reasury related management and regulatory report ing

requirements.


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OPREATIONAL RISK

Operational risk is the risk of loss that can result from a variety of factors,

i n c l u d i n g f a i l u r e t o o b t a i n p r o p e r i n t e r n a l a u t h o r i z a t i o n s , i m p r o p e r l y do c

umented t ransact ions , fai lure of operat ional and informat ion secur i ty procedu res

, com put er sys tems , soft war e or equ ipm ent , frau d, in ade qua tetraining and employee

errors. Banks approach to operational riskmanagements designed to mitigate operational risk by

maintaining comprehensive

systemof internal controls, e s t a b l i s h i n g s y s t e m s a n d p r o c e d u r e s t o m o n i t o r

transactions, maintaining key back-up p rocedures and undertaking regular contingency

planning. Effect ive opera tio nal risk management sys tem would ensure that bank has sufficient

information to make appropriate decisions about additional controls, adjustments to controls, or other risk responses.

Operational risk management policy aims at minimizing losses and customer dissatisfaction due to

failure in processes, focusing on flaws in products and their design that can expose the bank to losses

due to fraud, analyzing the impact of failures in systems, developing mitigants to minimize the

impact and developing plans to

meet external shocks that can adversely impact cont inui ty in the banks operations.

SUBSIDIARY COMPANIES

DOMESTIC SUBSIDIARIES

ICICI Home Finance Company Limited


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ICICI Investment Management Company Limited

ICICI Lombard General Insurance Company Limited

ICICI Prudential Life Insurance Company Limited

ICICI Securities Limited

ICICI Trusteeship Services Limited

ICICI Venture Funds Management Company Limited

ICICI Securities Primary Dealership Limited

ICICI Prudential Asset Management Company Limited

ICICI Prudential Trust Limited

INTERNATIONAL SUSIDIARIES

ICICI Bank Canada

ICICI Bank Eurasia Limited Liability Company


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ICICI International Limited

ICICI Securities Holding Inc

ICICI Securities Inc

ICICI Bank Uk Limited

ICICI PRUDENTIAL INSURANCE COMPANY

ICICI Life continued to maintain its market leadership among private sector life insurance companies with a

market share of 12.71% on the basis of weighted received premium. Life insurance companies

worldwide make losses in the initial years, in view of business set-up and customer


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acquisition costs in the

ini t ial years as wel l as reserving for actuar ial l iabi l i ty . W hi le the growingoperat

ions of ICICI Life had a negat ive impact of Rs . 10.31 bi l l ion on t he Banks

consolidated profit after tax in FY2008 on account of the above reasons, the companys unaudited New

Business Achieved Profit (NBAP) for FY2008was Rs. 12.54 billion as compared to Rs. 8.81 billion in fiscal

2007.

ICICI LOMBARD GENERAL INSURANCE COMPANY

ICICI Lombard General Insurance Company (ICICI General) enhanced itsleadership

position with a market share of about 29.8% among private sector general insurance companies and an

overall market share of about 11.9% during fiscal 2008. ICICI Generals gross written premium

grew by 11 .4% from Rs.30.03 billion in fiscal 2007 to Rs. 33.45 billion in fiscal 2008. ICICI

General is required to expense upfront, on origination of a policy, all sitscing expenses

related to the policy. While ICICI Generals profit after tax for Rs. 1.03 billion in fiscal 2008, a growth

of 50.5% over fiscal 2007.The combined ratio is the sum o f net claims and expenses as a

per cen tag e o f pr emi ums and ind ica tes the surplus generated on an annualized basis

from the business writ ten dur ing a period (excluding investment income).

ICICI PRUDENTIAL AMC & TRUST

ICICI Prudential Asset Management Company (ICICI AMC) was the

secondl a r g e s t a s s e t m a n a g e m e n t c o m p a n y i n I n d i a w i t h a v e r a g e a s s e t s u n

der management of Rs. 543.55 billion for March 2008. ICICI AMC achieved a profit after

tax of Rs. 0.82 billion in fiscal 2008, a growth of 69.7% over fiscal2007.


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ICICI SECURITIES LIMITED

The securities and primary dealership business of the ICICI group have been

reorganised. ICICI Securities Limited has been renamed as ICICI

Securi t iesPrimary Dealership Limited. ICICI Brokerage Services Limited has bee

nrenamed as ICICI Securities Limited and has become a dir ect subsidiary of ICICI Bank.

ICICI Securities achieved a profit after tax of Rs. 1.50 billion and ICICI Securities Primary

Dealership achieved a pro fit after tax of Rs. 1.40 billion, in fiscal 2008.

ICICI VENTURE FUNDS MANAGEMENT COMPANY LIMITED

ICICI Venture Funds Management Company Limited ( ICICI Venture) s t rengthened i t s leadership pos i t ion in pr ivate equi ty in India, wi th funds under

man ag em en t of ab ou t R s. 95.50 billion at year-end fiscal 2008. ICICI Venture

achieved a profit after tax of Rs. 0.90 billion in fiscal 2008 compared to Rs. 0.70 billion in

fiscal 2007


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Awards in the Year 2011:

ICICI Bank was ranked 12th in the list of 500 largest companies by Fortune India. The Bank was

also ranked 18th in Twitter and 17th in Linked in list of India's top 25 companies leveraging socialmedia by Fortune India

Ms. Chanda Kochhar, Managing Director & CEO, received the "Corporate Social Responsibility

Award", at the 10th Asia Business Leaders Awards (ABLA) by CNBC


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ICICI Bank awarded "House Of The Year (India)", by Asia Risk magazine, for eighth time in a row

since 2004

For second year in a row, ICICI Bank was awarded the "Most Tech-Friendly Bank", by Business

world

Mr. N. Vaghul, Former Chairman, ICICI Bank, received the "Lifetime Achievement Award", by

Business world

TOOLS & ANALYSIS

Ratio Analysis

1)Liquidity Ratio

Current Ratio = Current Asset

Current Liability

2)Turn Over Ratio

Fixed Asset Turn Over Ratio = Net Sale

F.A

Total Asset Turn Over Ratio = Net Sales

Total Assets


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3)Leverage Ratio

Debt to Asset Ratio = Total Debt

Total Assets

Debt to Equity = Total Debt

Net Worth

Interest Coverage ratio = EBIT

Interest

4)Profitability Ratio

Net Profit Ratio = PAT X 100

Sales

Returns on Assets = Net Income X 100

Total Assets

Return on Equity = Net Income

Net worth


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5)Valuation Ratio Book Value of share = Net worth

No. of Equity Share

6)Intrinsic Value of Share = P/E ratio over the Years X EPS

Balance Sheet

Balance Sheet of ICICI Bank ------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08 Mar

12 mths 12 mths 12 mths 12 mths 12 m

Capital and Liabilities:

Total Share Capital 1,151.82 1,114.89 1,463.29 1,462.68 1,249Equity Share Capital 1,151.82 1,114.89 1,113.29 1,112.68 899

Share Application Money 0.29 0.00 0.00 0.00 0

Preference Share Capital 0.00 0.00 350.00 350.00 350

Reserves 53,938.82 50,503.48 48,419.73 45,357.53 23,413

Revaluation Reserves 0.00 0.00 0.00 0.00 0

Net Worth 55,090.93 51,618.37 49,883.02 46,820.21 24,663

Deposits 225,602.11 202,016.60 218,347.82 244,431.05 230,510

Borrowings 109,554.28 94,263.57 67,323.69 65,648.43 51,256

Total Debt 335,156.39 296,280.17 285,671.51 310,079.48 281,766

Other Liabilities & Provisions 15,986.35 15,501.18 43,746.43 42,895.39 38,228

Total Liabilities 406,233.67 363,399.72 379,300.96 399,795.08 344,658

Mar '11 Mar '10 Mar '09 Mar '08 Mar

12 mths 12 mths 12 mths 12 mths 12 m

Assets

Cash & Balances with RBI 20,906.97 27,514.29 17,536.33 29,377.53 18,706


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Balance with Banks, Money at Call 13,183.11 11,359.40 12,430.23 8,663.60 18,414

Advances 216,365.90 181,205.60 218,310.85 225,616.08 195,865

Investments 134,685.96 120,892.80 103,058.31 111,454.34 91,257

Gross Block 9,107.47 7,114.12 7,443.71 7,036.00 6,298

Accumulated Depreciation 4,363.21 3,901.43 3,642.09 2,927.11 2,375

Net Block 4,744.26 3,212.69 3,801.62 4,108.89 3,923Capital Work In Progress 0.00 0.00 0.00 0.00 189

Other Assets 16,347.47 19,214.93 24,163.62 20,574.63 16,300

Total Assets 406,233.67 363,399.71 379,300.96 399,795.07 344,658

Contingent Liabilities 883,774.77 694,948.84 803,991.92 371,737.36 177,054

Bills for collection 47,864.06 38,597.36 36,678.71 29,377.55 22,717

Book Value (Rs) 478.31 463.01 444.94 417.64 270

Profit & Loss A/c

Profit & Loss account of ICICI Bank ------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08 Ma

12 mths 12 mths 12 mths 12 mths 12

Income

Interest Earned 25,974.05 25,706.93 31,092.55 30,788.34 22,99

Other Income 7,108.91 7,292.43 8,117.76 8,878.85 6,96Total Income 33,082.96 32,999.36 39,210.31 39,667.19 29,95

Expenditure

Interest expended 16,957.15 17,592.57 22,725.93 23,484.24 16,35

Employee Cost 2,816.93 1,925.79 1,971.70 2,078.90 1,61

Selling and Admin Expenses 3,785.13 6,056.48 5,977.72 5,834.95 4,90

Depreciation 562.44 619.50 678.60 578.35 54

Miscellaneous Expenses 3,809.93 2,780.03 4,098.22 3,533.03 3,42

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00

Operating Expenses 8,594.16 10,221.99 10,795.14 10,855.18 8,84

Provisions & Contingencies 2,380.27 1,159.81 1,931.10 1,170.05 1,63

Total Expenses 27,931.58 28,974.37 35,452.17 35,509.47 26,84

Mar '11 Mar '10 Mar '09 Mar '08 Ma

12 mths 12 mths 12 mths 12 mths 12

Net Profit for the Year 5,151.38 4,024.98 3,758.13 4,157.73 3,11

Extraordionary Items -2.17 -0.09 -0.58 0.00

Profit brought forward 3,464.38 2,809.65 2,436.32 998.27 29


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Total 8,613.59 6,834.54 6,193.87 5,156.00 3,40

Preference Dividend 0.00 0.00 0.00 0.00

Equity Dividend 1,612.58 1,337.86 1,224.58 1,227.70 90

Corporate Dividend Tax 202.28 164.04 151.21 149.67 15

Per share data (annualised)

Earning Per Share (Rs) 44.73 36.10 33.76 37.37 3

Equity Dividend (%) 140.00 120.00 110.00 110.00 10

Book Value (Rs) 478.31 463.01 444.94 417.64 27

Appropriations

Transfer to Statutory Reserves 1,780.29 1,867.22 2,008.42 1,342.31 1,35

Transfer to Other Reserves 0.26 1.04 0.01 0.01

Proposed Dividend/Transfer to Govt 1,814.86 1,501.90 1,375.79 1,377.37 1,05

Balance c/f to Balance Sheet 5,018.18 3,464.38 2,809.65 2,436.32 99

Total 8,613.59 6,834.54 6,193.87 5,156.01 3,40

Yearly Results

Yearly Results of ICICI Bank ------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08

Sales Turnover 25,974.05 25,706.93 31,092.55 30,788.34 22

Other Income 6,647.90 7,477.65 7,603.72 8,810.77 5

Total Income 32,621.95 33,184.58 38,696.27 39,599.11 28

Total Expenses 8,904.09 10,246.69 10,853.37 11,058.77 8

Operating Profit 17,069.96 15,460.24 20,239.18 19,729.57 14

Profit On Sale Of Assets -- -- -- -- Profit On Sale Of Investments -- -- -- --

Gain/Loss On Foreign Exchange -- -- -- --

VRS Adjustment -- -- -- --

Other Extraordinary Income/Expenses -- -- -- --

Total Extraordinary Income/Expenses -- -- -- --

Tax On Extraordinary Items -- -- -- --

Net Extra Ordinary Income/Expenses -- -- -- --

Gross Profit 23,717.86 22,937.89 27,842.90 28,540.34 20

Interest 16,957.15 17,592.57 22,725.93 23,484.24 16

PBDT 6,760.71 5,345.32 5,116.97 5,056.10 3

Depreciation -- -- -- --

Depreciation On Revaluation Of Assets -- -- -- --

PBT 6,760.71 5,345.32 5,116.97 5,056.10 3

Tax 1,609.33 1,320.34 1,358.84 898.37

Net Profit 5,151.38 4,024.98 3,758.13 4,157.73 3

Prior Years Income/Expenses -- -- -- --

Depreciation for Previous Years Written Back/Provided

-- -- -- --


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Dividend -- -- -- --

Dividend Tax -- -- -- --

Dividend (%) -- -- -- --

Earnings Per Share 44.72 36.10 33.76 37.37

Book Value -- -- -- --

Equity 1,151.82 1,114.89 1,113.29 1,112.68

Reserves 53,938.83 50,503.48 48,419.73 45,357.53 23

Face Value 10.00 10.00 10.00 10.00

Liquidity Ratio

Current Ratio = Current AssetCurrent Liability

Table

Particulars/Year 2007 2008 2009 2010 2011

Current Assets 37121.33 38041.13 29966.56 38873.69 34090.08

Current Liabilities 51256.03 65648.43 67323.69 94263.57 109554.28

Ratio 0.724 0.579 0.445 0.412 0.311

Table No:

2004 2006 2008 2010 2012

1

2

3

4

5

2007

2008

2009

2010

2011

0.724

0.579

0.445

0.412

0.311

Year

Ratio


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Interpretation: Current Ratio shows the ability of the companys payback ability, the higher the

current ratio more capable is the company to payback its short term liabilities. The above graph

shows that the companys ability to payback has come down gradually.

Turn Over Ratio

Fixed Asset Turn Over Ratio = Net Sale

F.A

0 500 1000 1500 2000 2500

1

2

3

4

5

2007

2008

2009

2010

2011

1.223

1.215

1.225

1.303

1.398

Ratio

Year


Net Sales 22994.29 30788.34 31092.55 25706.93 25974.05

Fixed Assets 325951.23 370417.54 361764.63 335885.42 385326.7

Ratio 0.070 0.083 0.085 0.076 0.067


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Interpretation: This ratio helps to measure the ability to generate the net sales by investing in fixed

asset, higher the ratio more capable is the company to generate the net sales. From the above graph it

can be observed that the company has a fluctuating ratio which means its efficiency is varying.

Total Asset Turn Over Ratio = Net Sales

Total Assets

0 1000 2000 3000

1

2

3

4

5

2007

2008

2009

2010

2011

1.223

1.215

1.225

1.303

1.398

Ratio

Year


Net Sales 22994.29 30788.34 31092.55 25706.93 25974.05

Total Assets 344658.11 399795.07 379300.96 363399.71 406233.67

Ratio 0.066 0.077 0.081 0.070 0.063


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Interpretation: This ratio measures the firms efficiency to use the assets in generating sales

companies with low profit margins tend to have high asset turnover, while those with high profit

margins have low asset turnover from the above graph it can be observed that the company has

performed well in the year 2009 and rest of the years its fluctuating.

Leverage Ratio

Debt to Asset Ratio = Total Debt

Total Assets


Total Debt 281766.22 310079.48 285671.51 296280.17 335156.39

Total Assets 344658.11 399795.07 379300.96 363399.71 406233.67

Ratio 0.817 0.775 0.753 0.815 0.825


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Interpretation: This ratio is used to measure a company's financial risk by determining how much

of the company's assets have been financed by debt. By the above calculation it can be noted that the

ratio is fluctuating, higher the ratio more is the company having debt. The company was good

enough in the year 2008 and 2009.

Debt to Equity = Total Debt

Net Worth

0 500 1000 1500 2000 2500

1

2

3

4

5

2007

2008

2009

2010

2011

1.223

1.215

1.225

1.303

1.398

Ratio

Year


Total Debt 281766.22 310079.48 285671.51 296280.17 335156.39

Net Worth 24663.26 46820.21 49883.02 51618.37 55090.93

Ratio 11.424 6.622 5.726 5.739 6.083


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Interpretation: It indicates what proportion of equity and debt the company is using to finance its

assets. A high debt/equity ratio generally means that a company has been aggressive in financing its

growth with debt. The ideal ratio for this is more than 5, from the above observation it can be noted

that the company had a good result in the year 2007 and it gradually went on decreasing, but in the

year 2011 its in a uptrend.

Interest Coverage ratio = EBIT

Interest

2004 2006 2008 2010 2012 2014

1

2

3

4

5

2007

2008

2009

2010

2011

1.223

1.215

1.225

1.303

1.398

Year

Ratio


EBIT 20006.54 28540.34 27842.90 22937.89 23717.86

Interest 16358.50 23484.24 22785.93 17592.57 16957.15

Ratio 1.223 1.215 1.225 1.303 1.398


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Interpretation: This ratio is used to determine how easily a company can pay interest on

outstanding debt. The lower the ratio, the more the company is burdened by debt expense. When a

company's interest coverage ratio is below 1 the company is not generating sufficient revenues to

satisfy interest expenses. From the graph it can be noted that the company is generating sufficient

revenues and it is improving year on year.

Profitability Ratio

Net Profit Ratio = PAT X 100

Sales

2004 2006 2008 2010 2012 2014

1

2

3

4

5

2007

2008

2009

2010

2011

1.223

1.215

1.225

1.303

1.398

Year

Ratio


PAT 3110.22 4157.73 3758.13 4024.98 5151.38

Sales 22994.29 30788.34 31092.55 25706.93 25974.05


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Interpretation:This ratio measures the managements ability to operate the business with sufficient

success and to leave a margin of reasonable compensation to the owners. Higher the net profit

margin, adequate is the return to the owners, from the above graph it can be seen that it has a gradual

increase in all the years except in the year 2009.

Returns on Assets = Net Income X 100

Total Assets

2007

2008

2009

2010

2011

274.237

420.787

448.068

462.99

478.294

0 500 1000 1500 2000 2500

1

2

3

4

5

Ratio

Year

Ratio 13.526 13.504 12.086 15.657 19.832


Net Income 28923.46 39599.11 38696.27 33184.58 32621.95

Total Assets 344658.11 399795.07 379300.96 363399.71 406233.67


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Interpretation: This ratio used to compare a businesss performance among other industry

members, the higher the ratio, the more cash the company has available for reintegration into the

company, whether it be in upgrades, replacements or other areas. The study reveals that the company

had a good returns on asset ratio in the year 2009 but in general its fluctuating.

Return on Equity = Net Income

Net worth

2007

2008

2009

2010

2011

274.237

420.787

448.068

462.99

478.294

0 1000 2000 3000

1

2

3

4

5

Year

Ratio

Ratio 8.391 9.904 10.201 9.131 8.030


Net Income 28923.46 39599.11 38696.27 33184.58 32621.95


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Interpretation: Return on equity measures a corporation's profitability by revealing how

much profit a company generates with the money shareholders have invested. The graph shows tha

the company was much profitable in the year 2007 and less in the year 2011 with the shareholders

money.

7)Valuation Ratio Book Value of share = Net worth

No. of Equity Shares

0 500 1000 1500 2000 2500

1

2

3

4

5

2007

2008

2009

2010

2011

274.237

420.787

448.068

462.99

478.294

Year

Ratio

Net Worth 24663.26 46820.21 49883.02 51618.37 55090.93

Ratio 1.172 0.845 0.775 0.642 0.592


Net Worth 24663.26 46820.21 49883.02 51618.37 55090.93


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Interpretation: By the above graph we can understand that the ratio has increased year on year and

a positive sign to the company.

8)Intrinsic Value of Share = P/E ratio over the Years X EPS

Year P/E Ratio

2007 270.37

2008 417.64

2009 444.94

2007

2008

2009

2010

2011

274.237

420.787

448.068

462.99

478.294

0 500 1000 1500 2000 2500

1

2

3

4

5

Ratio

Year

No. of EquityShar 89.934 111.268 111.329 111.489 115.182

Ratio 274.237 420.787 448.068 462.990 478.294


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2010 463.01

2011 478.31

Interpretation: By the above graph it can be noted that the ratio has gradually increased every year

and a positive sign to the company.

Industry Analysis

INTRODUCTION TO THE STEEL INDUSTRY

Indias economic growth is contingent upon the growth of the Indian steel industry. Consumption

of steel is taken to be an indicator of economic development. While steel continues to have a

stronghold in traditional sectors such as construction, housing and ground transportation, special

2007

2008

2009

2010

2011

270.37

417.64

444.94

463.01

478.31

0 500 1000 1500 2000 2500

1

2

3

4

5

P/E Ratio

Year


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steels are increasingly used in engineering industries such as power generation, petrochemicals

and fertilisers. India occupies a central position on the global steel map, with the establishment of

new state-of-the-art steel mills, acquisition of global scale capacities by players, continuous

modernisation and upgradation of older plants, improving energy efficiency and backward

integration into global raw material sources.

Steel production in India has increased by a compounded annual growth rate (CAGR) of 8

percent over the period 2002-03 to 2006-07. Going forward, growth in India is projected to be

higher than the world average, as the per capita consumption of steel in India, at around 46 kg, is

well below the world average (150 kg) and that of developed countries (400 kg). Indian demand is

projected to rise to 200 million tonnes by 2015. Given the strong demand scenario, most global

steel players are into a massive capacity expansion mode, either through brownfield or greenfield

route. By 2012, the steel production capacity in India is expected to touch 124 million tonnes and

275 million tonnes by 2020. While greenfield projects are slated to add 28.7 million tonnes,

brownfield expansions are estimated to add 40.5 million tonnes to the existing capacity of 55

million tonnes.

Steel is manufactured as a globally tradable product with no major trade barriers across national

boundaries to be seen currently. There is also no inherent resource related constraints which

may significantly affect production of the same or its capacity creation to respond to demand

increases in the global market. Even the government policy restrictions have been negligible

worldwide and even if there are any the same to respond to specific conditions in the market and

have always been temporary. Therefore, the industry in general and at a global level is unlikely to

throw up substantive competition issues in any national policy framework. Further, there are no

natural monopoly characteristics in steel. Therefore, one may not expect complex competition

issues as those witnessed in industries like telecom, electricity, natural gas, oil, etc.


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This, however, does not mean that there is no relevant or serious competition issue in the steel

industry. The growing consolidation in the steel industry worldwide through mergers and

acquisitions has already thrown up several significant concerns. The fact that internationally steel

has always been an oligopolistic industry, sometimes has raised concerns about the anticompetitive

behavious of large firms that dominate this industry. On the other hand the set of

large firms that characterize the industry has been changing over time.

Trade and other government policies have significant bearing on competition issues. Matters of

subsidies, non-tariff barriers to trade, discriminatory customs duty (on exports and imports) etc.

may bring in significant distortions in the domestic market and in the process alter the competitive

positioning of individual players in the market. The specific role of the state in creating market

distortion and thereby the competitive conditions in the market is a well-known issue in this

country.

This report proceeds as follows. Section 2 of the report provides a brief over view of the

performance and structure of the Indian steel industry by analysing published secondary time

series data on certain key indicators. Market structure is analyzed using indicators such as

number of players and their respective shares in total production, share of public and private

players in the total production/sales, production capacity of major players, etc. Given the

heterogeneous nature of the product this analysis is done for the various segments of steel that

constitute the relevant market. This analysis is a precursor in identifying segments where

competition may be an issue of concern to allow for a pointed analysis. Section 3 of the report

documents policy and institutional structure governing the steel industry in India and the role

played by the Government in the development of this industry.

Section 4 of the report examines issues of competition of steel industry in India, by identifying the

structurally inherent and the market determined positions of various steel firms specifically to see

their market power, vis--vis both their final consumers as also those within the steel industry.


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production capacity, diversifying investments, and leveraging its core capabilities to venture

into new businesses. Jindal Steel and Power Limited is the third largeststeelproducer

inIndia. The company manufactures and sellssponge iron, mild steel slabs, ferro

chrome,iron ore, mild steel, structural, hot rolled plates and coils and coal based sponge iron

plant. The company is also involved inpower generation.

Jindal Steel and Power is a part of the Jindal Group, founded byO. P. Jindal(19302005). In

1969, he started Pipe Unit Jindal India Limited, one of the earlier incarnations of his business

empire. After Jindal's death in 2005, much of his assets were transferred to his wife, Savitri

Jindal. Jindal Group's management was then split among his four sons withNaveen Jindalas

the Managing Director of Jindal Steel and Power Limited. His elder brother,Sajjan Jindal, is

currently the head ofASSOCHAM, an influential body of the chambers of commerce, and

the head of JSW Group, part of O.P. Jindal Group.

The company produces economical and efficient steel and power through backward

integration from its captive coal and iron-ore mines. From the widest flat products to a whole

range of long products, JSPL today sports a product portfolio that caters to varied needs in

the steel market. The company also has the distinction of producing the worlds longest 121

metre rails and introducing large size parallel flange beams in India.

JSPL operates the largest coal - based sponge iron plant in the world and has an installed

capacity of 3 MTPA of steel at Raigarh in Chhattisgarh. With a 0.6 MTPA wire rod mill and

a one million tone capacity bar mill at Patratu, Jharkhand and a one million tone capacity bar

mill, Jharkhand and a medium and light structural mill at Raigarh, Chhattisgarh.

The enterprising spirit and the ability to discern future trends have been the driving force

behind the companys remarkable growth story. The company has scaled new heights with

the combined force of innovation, adaptation of new technology and the collective skills of

its 15,000 strong, committed workforce. And the recognition it has received only further
http://en.wikipedia.org/wiki/Steelhttp://en.wikipedia.org/wiki/Steelhttp://en.wikipedia.org/wiki/Steelhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Sponge_ironhttp://en.wikipedia.org/wiki/Sponge_ironhttp://en.wikipedia.org/wiki/Sponge_ironhttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Power_generationhttp://en.wikipedia.org/wiki/Power_generationhttp://en.wikipedia.org/wiki/Power_generationhttp://en.wikipedia.org/wiki/O._P._Jindalhttp://en.wikipedia.org/wiki/O._P._Jindalhttp://en.wikipedia.org/wiki/O._P._Jindalhttp://en.wikipedia.org/wiki/Naveen_Jindalhttp://en.wikipedia.org/wiki/Naveen_Jindalhttp://en.wikipedia.org/wiki/Naveen_Jindalhttp://en.wikipedia.org/wiki/Sajjan_Jindalhttp://en.wikipedia.org/wiki/Sajjan_Jindalhttp://en.wikipedia.org/wiki/Sajjan_Jindalhttp://en.wikipedia.org/wiki/ASSOCHAMhttp://en.wikipedia.org/wiki/ASSOCHAMhttp://en.wikipedia.org/wiki/ASSOCHAMhttp://en.wikipedia.org/wiki/ASSOCHAMhttp://en.wikipedia.org/wiki/Sajjan_Jindalhttp://en.wikipedia.org/wiki/Naveen_Jindalhttp://en.wikipedia.org/wiki/O._P._Jindalhttp://en.wikipedia.org/wiki/Power_generationhttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Sponge_ironhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Steel


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lends credence to this. JSPL has recently been rated as the second highest value creator in the

world by Boston Consulting Group; 11th fastest growing company in India by Business

World; included in one of the Fab 50 Companies by Forbes Asia, 2009 and 2010.

JSPL endeavors to strengthen Indias industrial base by aiding infrastructural development,

through sustainable development approaches and inclusive growth. The company deploys its

resources to improve infrastructure, education, health, water, sanitation, environment etc. in

the areas it operates in. The company has won several awards for its innovative business

practices.

As JSPL contributes to Indias growth, it has also set in place a global expansion plan in

order to become one of the most prestigious and dynamic business groups in the World. The

company continues to capitalize on opportunities in high growth markets, expanding its core

areas and diversifying into new businesses. The future is studded with challenges and JSPL

is taking them on with vigor and courage.

On June 3, 2006,Boliviagranted development rights for one of the world's largestiron

orereserves in theEl Mutnregion to Jindal Steel. With the development rights for 20

billion tonne of El Mutun Iron Ore Reserves in Bolivia, JSPL plans to invest US$ 2.1 billion

in the next few years on mining and on setting up an integrated 1.7 MTPA Steel Plant, 6

MTPA Sponge Iron plant, 10 MTPA Iron Ore Pellet Plant and 450 MW power plant in theSouth American nation. Savitri Jindal, the widow of O. P. Jindal, is ranked as the 19th richest

Indian person according to Forbes.

VISION, MISSION AND VALUES

VISION

To be globally admired organization that enhances the quality of life of all stakeholders

through sustainable industrial and business development.
http://en.wikipedia.org/wiki/Boliviahttp://en.wikipedia.org/wiki/Boliviahttp://en.wikipedia.org/wiki/Boliviahttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/El_Mut%C3%BAnhttp://en.wikipedia.org/wiki/El_Mut%C3%BAnhttp://en.wikipedia.org/wiki/El_Mut%C3%BAnhttp://en.wikipedia.org/wiki/El_Mut%C3%BAnhttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Bolivia


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MISSION

The spirit of entrepreneurship and innovation

Optimum utilization of resources.

Sustainable environment friendly procedures and practices

The highest ethics and standards.

Hiring, developing and retaining the best people.

Maximization returns to stakeholders.

Positive impact on the communities we touch.

VALUES

Passion for people.

Business excellence

Integrity, ownership and sense of belonging

Sustainable development

PRESENT MARKET POSITION OF JINDAL STEEL AND POWER LIMITED

Jindal Steel and Power Limited is the third largeststeelproducer in India. Operating profitdecreased 9.9% quarter-on-quarter to Rs9.6bn, marginally lower than our estimate of

Rs9.9bn.The underperformance in operating profit was on account of lower than expected

steel sales volume. Operating Profit Margin decreased 86bps quarter-on-quarter to 38% in

first quarter of financial year 2011 on account of higher coal cost and subdued long steel

prices. On a segmental basis, EBIT margins for the steel business increased from 31.1% in

fourth quarter of financial year 2011 to 31.8% in first quarter of financial year 2012 and that

of the power division declined sharply from 46.4% to 36.4%.
http://en.wikipedia.org/wiki/Steelhttp://en.wikipedia.org/wiki/Steelhttp://en.wikipedia.org/wiki/Steelhttp://en.wikipedia.org/wiki/Steel

Shivaraj Final Report

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Transcript of Shivaraj Final Report