...portfolio. (10 marks) Share Beta Investment Alpha 0.9 Rs.12, 00,000 Beta 1.5 Rs. 3, 50,000 Carrot 1.0 Rs. 1, 00,000 What is the expected rate of return on his portfolio, if the risk rate is 7 per cent and the expected return on the market portfolio is 16 per cent? (A). (2). A share is selling for Rs.60 on which a dividend of Rs.4 per share is expected at the end of the year. The expected market price after dividend declaration is to be Rs.70. Compute the following: - (10 marks) i) The return on investment ® in shares. ii) Dividend yield iii) Capital Gain Yield (B) DIC Ltd. provides the following data: (20 marks) Comparative trial balance March 31 year 2 March 31 year 1 Increase(Decrease) Debit Balance 20 10 10 Cash Rs.190 Rs. 90 Rs.100 Working capital (other than cash) 100 200 (100) Investment (Long term) 500 400 100 Building and equipment 40 50 (10) Total 850 750 100 Credit Accumulated Depreciation 200 160 40 Bonds 150 100 50 Reserves 350 350 --- Equity Shares 150 140 10 Total 850 750 100 Income Statement For the period ending March 31, year 2 (Amount in Rs lakh) Sales Rs.1000...
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...4 Financial evaluation of a merger/acquisition 1.5 Financing techniques in merger/Acquisition 1.5.1 Financial problems after merger and acquisition 1.5.2 Capital structure after merger and consolidation 1.6 Regulations of mergers and takeovers in India 1.7 SEBI Guidelines for Takeovers 1.8 Summary 1.9 Keywords 1.10 Self assessment questions 1.11 Suggested readings 1.0 OBJECTIVES After going through this lesson, the learners will be able to • Know the meaning and acquisition. 1 advantages of merger and • Understand the financial evaluation of a merger and acquisition. • Elaborate the financing techniques of merger and acquisition. • Understand regulations and SEBI guidelines regarding merger and acquisition. 1.1 INTRODUCTION Wealth maximisation is the main objective of financial management and growth is essential for increasing the wealth of equity shareholders. The growth can be achieved through expanding its existing markets or entering in new markets. A company can expand/diversify its business internally or externally which can also be known as internal growth and external growth. Internal growth requires that the company increase its operating facilities i.e. marketing, human resources, manufacturing, research, IT etc. which requires huge amount of funds. Besides a huge amount of funds, internal growth also require time. Thus, lack of...
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...investing?......................................................................8 What is meant by Interest?......................................................................................................8 What factors determine interest rates?...............................................................................8 What are various options available for investment?......................................................9 What are various Short-term financial options available for investment?.............9 What are various Long-term financial o ptions available for investment?............10 What is meant by a Stock Exchange?................................................................................11 What is an ‘Equity’/Share?......................................................................................................11 What is a ‘Debt Instrument’?.................................................................................................12 What is a Derivative?................................................................................................................12 What is a Mutual Fund?............................................................................................................12 What is an...
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...while investing?......................................................................8 What is meant by Interest?......................................................................................................8 What factors determine interest rates?...............................................................................8 What are various options available for investment?......................................................9 What are various Short-term financial options available for investment?.............9 What are various Long-term financial o ptions available for investment?............10 What is meant by a Stock Exchange?................................................................................11 What is an ‘Equity’/Share?......................................................................................................11 What is a ‘Debt Instrument’?.................................................................................................12 What is a Derivative?................................................................................................................12 What is a Mutual Fund?............................................................................................................12 What is an...
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...to benefit from stock futures You are bullish on a stock say Satyam, which is currently quoting at Rs 280 per share. You believe that in one month it will touch Rs 330. Question: What do you do? Answer: You buy Satyam. Effect: It touches Rs 330 as you predicted – you made a profit of Rs 50 on an investment of Rs 280 i.e. a Return of 18% in one month – Fantastic!! Wait: Can it get any better? Yes!! Question: What should you do? Answer: Buy Satyam Futures instead. Effect: On buying Satyam Futures, you get the same position as Satyam in the cash market, but you pay a margin and not the entire amount. For example, if the margin is 20%, you would pay only Rs 56. If Satyam goes upto Rs 330, you will still earn Rs 50 as profit. Now that translates into a fabulous return of 89% in one month. Unbelievable!! But True nevertheless!! This is the advantage of ‘leverage’ which Stock Futures provide. By investing a small margin (ranging from 10 to 25%), you can get into the same positions as you would be able to in the cash market. The returns therefore get accordingly multiplied. Question: What are the risks? Answer: The risks are that losses will be get leveraged or multiplied in the same manner as profits do. For example, if Satyam drops from Rs 280 to Rs 250, you would make a loss of Rs 30. The Rs 30 loss would translate to an 11% loss in the cash market and a 54% loss in the Futures market. Question: How can I reduce such losses? Answer: It is very easy to...
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...material has not been specifically discussed by the Council of the Institute or any of its Committees and the views expressed herein may not be taken to necessarily represent the views of the Council or any of its Committees. Permission of the Institute is essential for reproduction of any portion of this material. © The Institute of Chartered Accountants of India All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form, or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior permission, in writing, from the publisher. Revised Edition Website E-mail Committee/ Department ISBN No. Price Published by : : : : : : : July, 2011 www.icai.org bosnoida@icai.org Board of Studies 978-81-8441-130-0 ` 200/Rs. 250/The Publication Department on behalf of The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi 110 002, India. Sahitya Bhawan Publications, Hospital Road, Agra 282 003. July/2011/45,000 Copies (Revised) Printed by : A WORD ABOUT STUDY...
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...to conquer. We make our own uncontested space which others follow. And create new pathways where no one exists. Dr. Lalit Khaitan - Chairman & Managing Director Abhishek Khaitan - Managing Director Dear Shareholders, I write this at a time when the world has begun to heave a sigh of relief as the first sign of the end of recession start appearing on the horizon. With this positive transformation taking place at the macro level, your company too has started gearing itself to reach new heights of business success. It will be our endeavor to take advantage of the emerging optimism in the global as well as Indian economy in the larger interest of our stakeholders. India today is at the cusp of a major growth era that may last for a very long time. Your company is well poised, after emerging relatively well from the recessionary period, to ride the rising curve of Indian growth story. While we intend to retain the ‘old is gold’, we are fully conscious to grab the new business opportunities that synthesize well with the growth pattern of the Indian economy. Year 2009-10 was indeed a fruitful year as we achieved an overall 23% net revenue growth. Our total volume stood at 14.6 mn c/s. Our brands like Magic Moments Vodka, 8 PM Whisky and Old Admiral Brandy were top earners and our new brand last year, Morpheus, struck a chord with our esteemed consumers. I assure you that your company will continue to gain significant market share in the Brown Spirits and the fastest growing White...
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...an excellent time to assemble the best talent that wants to be part of a profitable whole. With some diligence, its not difficult to get a model act together in terms of a mix of optimal goals and objectives for individuals, the team and the organization; set up systems for open and frequent communication, peer accountability; and create a culture that appreciates and bonds the team for best results. However, even in prosperous times things are never THAT perfect… and exceptional organizations more often than not, tend to get built by less than exceptional teams. And then there are times when the economy is less than booming. The times when businesses have to take tough calls. Are these a good time for building the finest teams? The last year demonstrates resoundingly that these are indeed great times to build excellent teams and very nimble teamwork. Periods when resources aren’t available for the asking, force organizations and teams to roll up their sleeves and develop REAL PEOPLE POWER. These are times when wise organizations leave behind any misguided reluctance to focus on teams and grapple squarely with the realization that without the right teams and work methods, the organization will not effectively identify and implement new ways to survive and thrive. Resource-scarce situations force huge efficiencies. They ensure that much more is achieved with less. Flatter organization structures, greater inter-dependence… these enable a diversity of skills that deliver quick turnaround...
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...Contents: Vision, Culture and values Financial highlights Profile of the Directors Chairman’s review Corporate Governance Audit Committee Report Remuneration Committee Report Risk Management Report of the Board of Directors Statement of Directors’ Responsibility Independent Auditors’ Report Income Statement Balance Sheet Statement of Changes in Equity Cash Flow Statement Notes to the Financial Statement Segmental Report Details of Real Estate Five Year Summary Shareholder Information Notice of Annual General Meeting Proxy Enclosed Corporate Information ( inner back cover) 1 2 3 4 5-7 8 9 10 - 12 13 - 16 17 18 19 20 21 22 23 - 47 48 49 50 51 - 53 54 Vision To be a leading investment trust in Sri Lanka Culture and Values Renuka’s culture reflects more than just structure. It is statement of values. Our commitment to a responsive, enterprising, nurturing, unrelenting, knowledgeable and accountable workplace enables us to build our relationships, with clients and with colleagues, on honesty and trust. It drives our ability to deliver great products and services and to generate superior long term financial performance for our shareholders. The 6 letters of our Group name symbolizes the 6 core values that make up our culture. The stylized shape of Sri Lanka is also reminiscent of pods or coconuts, with the letter “R” embedded representing Renuka in Sri Lanka. Our corporate motto is “World Class Possibilities” reflecting...
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...Workbook for NISM-Series-V- A: Mutual Fund Distributors Certification Examination National Institute of Securities Markets www.nism.ac.in This workbook has been developed to assist candidates in preparing for the National Institute of Securities Markets (NISM) Certification Examination for Mutual Fund Distributors. Workbook Version: July 2011 Published by: National Institute of Securities Markets © National Institute of Securities Markets, 2010 Plot 82, Sector 17, Vashi Navi Mumbai – 400 705, India All rights reserved. Reproduction of this publication in any form without prior permission of the publishers is strictly prohibited. Disclaimer The contents of this publication do not necessarily constitute or imply its endorsement, recommendation, or favoring by the National Institute of Securities Market (NISM) or the Securities and Exchange Board of India (SEBI). This publication is meant for general reading and educational purpose only. It is not meant to serve as guide for investment. The views and opinions and statements of authors or publishers expressed herein do not constitute a personal recommendation or suggestion for any specific need of an Individual. It shall not be used for advertising or product endorsement purposes. The statements/explanations/concepts are of general nature and may not have taken into account the particular objective/ move/ aim/ need/ circumstances of individual user/ reader/ organization/ institute. Thus NISM and SEBI do not assume any...
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...Chapter 17 Distributions to Shareholders: Dividends and Repurchases ANSWERS TO BEGINNING-OF-CHAPTER QUESTIONS 17-1 Investors who prefer a high payout policy would generally (a) need current cash income and (b) be in a low income tax bracket. Those who prefer a low payout would not need cash currently and would be in a high tax bracket. Universities and other tax-exempt institutions, and many retirees, are examples of those who prefer cash dividends, while people in their peak earning years often prefer low payouts. If someone holds a low payout stock and wants more cash income, he or she can sell the stock and buy a high payout stock, but that would result in brokerage costs and possibly capital gains taxes. If you owned a high payout stock and wanted less dividends, you could (1) sell out and switch to a low dividend stock, (2) try to get the company to lower its payout (while possibly starting a stock repurchase program), or (3) join a dividend reinvestment plan. Selling would involve brokerage costs and possibly capital gains taxes. The dividend reinvestment plan would avoid brokerage fees, but you would have to pay taxes currently even if you reinvest the dividends. You would have a good chance of getting the company to follow your advice under Point 2 if your name were Warren Buffett. 17-2 Here are the three theories, which are illustrated in the BOC model. They should be thought of as applying to investors in the aggregate and not to each...
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...C O N T E N T S 10 Years’ Financial Highlights Strong Fundamentals Notice to Members Directors’ Report Management Discussion and Analysis Report on Corporate Governance Auditors’ Report Balance Sheet Profit and Loss Account Cash Flow Statement Schedules to Accounts Consolidated Financial Statements – Auditors’ Report – Balance Sheet – Profit and Loss Account – Cash Flow Statement – Schedules to Accounts Balance Sheet Abstract 3 4 5 8 11 23 33 36 37 38 40 63 64 65 66 68 86 Annual Report 2008-09 1 C O R P O R AT E BOARD OF DIRECTORS A Vellayan Chairman K Balasubramanian Director B V R Mohan Reddy Director R A Savoor Director (from 18.03.2009) M K Tandon Director D E Udwadia Director M M Venkatachalam Director S Viswanathan Director (Upto 23.12.2008) V Ravichandran Managing Director I N F O R M AT I O N BANKERS State Bank of India HDFC Bank Limited IDBI Bank Limited ICICI Bank Limited Hongkong and Shanghai Banking Corporation Limited AUDITORS Price Waterhouse 8-2-293/82/A/1131A Road No. 36, Jubilee Hills Hyderabad - 500 034 COST AUDITORS Mr V Kalyanaraman Mr Dantu Mitra MANAGEMENT TEAM V Ravichandran Managing Director P Nagarajan Sr Vice President & Chief Financial Officer G Ravi Prasad Sr Vice President - Sales & Marketing (Fertilisers) P Gopalakrishna Sr Vice President - Retail Harish Malhotra Sr Vice President - Commercial G Veera Bhadram Sr Vice President - Pesticides SBU Arun Leslie George Sr Vice President & Head of HR S Govindarajan Sr...
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...Communications Annual Report 2009-10 (28th December, 1932 - 6th July, 2002) Reliance Group - Founder and Visionary Dhirubhai H. Ambani Profile Reliance Communications Limited is the flagship Company of Reliance Anil Dhirubhai Ambani Group, India’s third largest business house. Reliance Communications is India’s foremost and truly integrated telecommunications service provider. The Company, with a customer base of 109 million including over 2.5 million individual overseas retail customers, ranks among the Top 4 Telecom companies in the world by number of customers in a single country. Reliance Communications corporate clientele includes 2,100 Indian and multinational corporations, and over 800 global, regional and domestic carriers. Reliance Communications has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire communications value chain, covering over 24,000 towns and 600,000 villages. Reliance Communications owns and operates the world’s largest next generation IP enabled connectivity infrastructure, comprising over 2,77,000 kilometers of fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region. Mission: Excellence in Communication Arena To attain global best practices and become a world-class communication service provider – guided by its purpose to move towards greater degree...
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...LIVING COMMONPLACE ABOUT HUL OUR PURPOSE TO MAKE SUSTAINABLE LIVING COMMONPLACE. We work to create a better future every day, with brands and services that help people feel good, look good and get more out of life. Our first priority is to our consumers – then customers, employees, suppliers and communities. When we fulfil our responsibilities to them, we believe that our shareholders will be rewarded. EXAMPLES OF OUR PURPOSE-DRIVEN BRANDS In 2012, over 60% of tomatoes used in Kissan Ketchup in India were from sustainable sources. Significant progress made in reducing the amount of salt, calories and trans fat in our portfolio. By the end of 2012, 66% of our Foods portfolio (by volume) was compliant with the 5 g per day salt target. More than 60% of our children’s ice cream portfolio in India contains 110 kilocalories or fewer per portion. More than 45 million people gained access to safe drinking water from Pureit globally by end of 2012. About 47 million people reached through Lifebuoy hand washing programmes by end of 2012. OUR BRANDS IN ACTION HINDUSTAN UNILEVER IS KNOWN FOR SOME OF THE MOST LOVED BRANDS. TO FIND OUT MORE, GO TO WWW.HUL.CO.IN/BRANDS-IN-ACTION/ CONTENTS OVERVIEW 02 04 05 06 07 08 09 10 12 14 16 18 20 Operational Highlights Financial Performance Performance Trends Chairman’s Letter Board of Directors Management Committee Our Business Model Unilever Sustainable Living Plan Winning with Brands and Innovation Winning in the Marketplace Winning through...
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...Workbook for NISM-Series-VIII: Equity Derivatives Certification Examination National Institute of Securities Markets www.nism.ac.in 1 This workbook has been developed to assist candidates in preparing for the National Institute of Securities Markets (NISM) NISM-Series-VIII: Equity Derivatives Certification Examination (NISM-Series-VIII: ED Examination). Workbook Version: April 2014 Published by: National Institute of Securities Markets © National Institute of Securities Markets, 2012 Plot 82, Sector 17, Vashi Navi Mumbai – 400 703, India All rights reserved. Reproduction of this publication in any form without prior permission of the publishers is strictly prohibited. 2 Disclaimer The contents of this publication do not necessarily constitute or imply its endorsement, recommendation, or favouring by the National Institute of Securities Market (NISM) or the Securities and Exchange Board of India (SEBI). This publication is meant for general reading and educational purpose only. It is not meant to serve as guide for investment. The views and opinions and statements of authors or publishers expressed herein do not constitute a personal recommendation or suggestion for any specific need of an Individual. It shall not be used for advertising or product endorsement purposes. The statements/explanations/concepts are of general nature and may not have taken into account the particular objective/ move/ aim/ need/ circumstances of individual user/...
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