INTRODUCTION

Divya Swaroopa Financial Services Pvt. Ltd is in the service of investing public in and around
Chennai for more than two decades. The company was promoted and is run by a group of
Chartered Accountants, with a unified vision to offer consulting services to the investing public.
Divya Swaroopa Financial Services Pvt. Ltd entered into business partnership with Kotak
Securities Ltd, dealing in Cash and Derivatives Market of National Stock Exchange and Cash
Market of Bombay Stock Exchange and Demat Services. The Company serves small, medium
and high net worth clients.
The Company offers varied services like On-line Trading, Equity Research and Futures and
Options services. The On-line trading facility is connected through VSAT to enable faster
updating and execution of orders and uninterrupted trading. As part of its service, the Company
conducts regular workshop on trading for its clients and to the general public.
In addition to the Equity and Derivatives, the Company is offering Trading on Commodity in
association with Kotak Commodity Services Ltd, trading and clearing member of NCDEX and
MCX.
The Company has got representative offices at Mumbai and in Singapore, to cater NRI clients.
ABSTRACT
I did my internship in the company named Divya Swaroopa Financial Services Limited. Duration
of my internship training was one month and working hours was 7 hours. In this company I have
got trained in a financial department. The areas which I covered during my training were;
Equities
Share Market
Banking
Tally
Investment Services
Derivatives
This internship training tells more about learning experience and gaining of more knowledge on
finance. Here I have presented the report of my internship training in Divya Swaroopa Financial
Services Limited company.

INDUSTRY PROFILE
The financial services industry covers a broad range of business organizations including banks,
credit card companies, insurance companies, stock brokerages and investment fund corporations.

Banking
Banking is composed of three different subfields including commercial banks, savings banks,
and credit unions. Commercial banks represent the largest portion of the industry. Not only do
these banks save and invest money but also are involved in international trading and lending.
Savings banks primarily serve their clients in lending and saving of money. Banks are required
under regulation to hold a percentage of deposits as required reserves equal to the federal funds
rate. Excess reserves beyond the required reserve rate are used by banks in investment
opportunities, loans, mortgages, or exchanged among banks that are in need of reserves. The
difference between commercial banks and savings banks is seen in the types of clients and
consumers they do transactions with and the amount of services they provide. People that in one
way or another had a "bond", such as members of a labor union, originally created credit unions,
today anyone can join a credit union.

The Foreign Exchange Market (ForEx)
Bloomberg and its competitors all follow the foreign exchange market closely for their clients.
The foreign exchange market (forex) is simply the market in where currencies from all over the
world are traded. The forex market is the largest financial market in the world. The forex market
see's over $2 trillion in daily trades. This market, with the help of companies such as Bloomberg,
is expected to grow rapidly as businesses become more aware and informed. The forex market
involves the buying of one currency from all over the world, while at the same time selling
another. As global currencies are valued against one another buyers look for currencies on the
rise and try to sell those that are weak. As one might assume, the most often traded currencies are
the U.S. Dollar, the Euro, the British Pound, the Swiss Franc, and the Japanese Yen.
Investment Services
The investment service industry involves the investment of money into securities. These
securities include stocks, bonds, or mutual funds. Securities are bought and sold daily on the
market by investment service agencies for clients all over the world.

Insurance
The insurance business involves insurance carriers, brokerages and agencies. Insurance
companies charge premiums to cover the risks of their clients. The premium that the insurance
company charges is based directly on the likelihood that a client will suffer a financial loss. The
insurance companies use formulas and algorithms to determine the risk of their clients. Insurance
companies use underwriters to measure risk and price the policy accordingly. The premiums that
customers pay are invested in order to build a strong portfolio to cover client losses. Life
insurance, property and casualty insurance, reinsurance, health insurance, and liability insurance
are the main fields within the insurance industry.

COMPETITORS OF COMPANY

SBI Capital Markets Limited
This happens to be the oldest organizations in the sphere of capital markets in India. Established
in 1986 in the form of an ancillary of SBI, they have ranked second in Asia's Project Advisory
services. The company is a traiblazer in privatization and securitization. The subsidiaries of SBI
Capital Markets are SBICAPs Ventures Ltd., SBICAP Trustee Co.Ltd. and many others.

DSP Merrill Lynch Limited
A major player in the equity and debt market in India, DSP Merrill Lynch offers financial
advises to varied corporations and institutions. With an array of wealth management and investor
services, their services are customized in a manner that they meet every investor requirement.



Birla Global Finance Limited
The subsidiary of Aditya Birla Nuvo Ltd., this company has operations in the corporate finance
and capital market arena. An alliance with Sun Life Financial of Canada, they have given birth to
Birla Sun Life Insurance Co Ltd., Birla Sun Life Distribution Co. and alike.

Housing Development Finance Corporation
A best financial solution for home loans, NRI loans, HDFC is the one stop destination for
personal finance. With overseas branches in Singapore, Kuwait, Qatar, Saudi Arabia and many
others, HDFC has been going great guns every year.

PNB Housing Finance Limited
This company offers premium solutions for relieving the borrower segment. The Home Loan
Life Insurance Plan of this has come in conjunction with TATA AIG, with the lowest premium
when compared to the peers.

ICICI Group
Wide arena of financial products and services, ICICI Group has solutions like InstaBanking,
Online Trading, Insta Insure, ICICI Bank imobile etc. Providing high class financial services in
all segments of the society, ICICI Group deals with Mutual Fund, Private Equity, Securities, and
Life Insurance etc.

LIC Finance Limited
It is the biggest Housing Finance Company in India, providing finance to individuals for repair
or construction or renovation of any old or new apartment or house.

L & T Finance Limited
Established in 1994 by the Larsen and Turbo group, this has become a significant name in the
financial sector. Funds for automobiles, Agricultural Instruments, secured loans; they have all
types of loans for a long tenure.

COMPANY PROFILE
Divya Swaroopa Financial Services Pvt. Ltd is in the service of investing public in and around
Chennai for more than two decades. The company was promoted and is run by a group of
Chartered Accountants, with a unified vision to offer consulting services to the investing public.
Divya Swaroopa Financial Services Pvt. Ltd entered into business partnership with Kotak
Securities Ltd, dealing in Cash and Derivatives Market of National Stock Exchange and Cash
Market of Bombay Stock Exchange and Demat Services. The Company serves small, medium
and high net worth clients.
The Company offers varied services like On-line Trading, Equity Research and Futures and
Options services. The On-line trading facility is connected through VSAT to enable faster
updating and execution of orders and uninterrupted trading. As part of its service, the Company
conducts regular workshop on trading for its clients and to the general public.
In addition to the Equity and Derivatives, the Company is offering Trading on Commodity in
association with Kotak Commodity Services Ltd, trading and clearing member of NCDEX and
MCX.
The Company has got representative offices at Mumbai and in Singapore, to cater NRI clients.
BOARD OF DIRECTORS
Dr. Shankar Acharya, Non-Executive Chairman
Dr. Shankar Acharya, B.A. (Hons.) from Oxford University and Ph.D. (Economics) from
Harvard University, aged 68 years, has considerable experience in various fields of economics
and finance. He is a Honorary Professor at the Indian Council for Research on International
Economic Relations (ICRIER) and a Member of the Court of Governors at the Administrative
Staff College of India (ASCI). He was Chief Economic Adviser, Ministry of Finance, Member,
Securities and Exchange Board of India (SEBI) and Member, Twelfth Finance Commission.

He has held several senior positions in the World Bank, including Director of World
Development Report (1979) and Research Adviser. He was re-appointed as the Non-Executive
Chairman of the Bank at the Annual General Meeting held on 19th July 2012 for a period of
three years with effect from 20th July 2012.
He is on the Board of Eros International Media Ltd. and South Asia Institute for Research and
Policy (Private) Limited, Sri Lanka. During 2013-14, Dr.Acharya was the Chairman of the Audit
Committee of the Bank, Member of the Audit Committee of Eros International Media Limited
and the Chairman of the Shareholders' Grievance/Investors' Relations Committee of Eros
International Media Ltd.

Mr. Uday Kotak, Executive Vice-Chairman and Managing Director
Mr. Uday Kotak, aged 55 years, holds a Bachelors degree in Commerce and an MBA from
Jamnalal Bajaj Institute of Management Studies, Mumbai. He is the Executive Vice-Chairman
and Managing Director of the Bank and its principal founder and promoter. Under Mr. Kotak's
leadership, over the past 28 years, Kotak Mahindra group established a prominent presence in
every area of financial services from stock broking, investment banking, car finance, life
insurance and mutual funds. Mr. Kotak is the recipient of several prestigious awards. He is a
member of the Government of India's high level committee on Financing Infrastructure, the
Primary Market Advisory Committee of SEBI, Member of the Board of Governors of Indian
Council for Research on International Economic Relations, National Institute of Securities
Markets and National Council of CII.

Mr. C. Jayaram, Joint Managing Director
Mr. C. Jayaram, B. A. (Economics), PGDM-IIM, Kolkata, aged 58 years, is Joint Managing
Director of the Bank and currently heads the wealth management business and international
operations for Kotak Mahindra group. He also oversees the alternative investments business
which includes private equity funds and real estate funds, as well as the institutional equities
business. He has varied experience of over 36 years in many areas of finance and business and
was earlier the Managing Director of Kotak Securities Limited. He has been with the Kotak
Group for 24 years and has been instrumental in building a number of new businesses at Kotak
Group. Prior to joining the Kotak Group, he was with Overseas Sanmar Financial Ltd.
Mr. Dipak Gupta, Joint Managing Director
Mr. Dipak Gupta, B.E. (Electronics), PGDM-IIM, Ahmedabad, aged 53 years, is the Joint
Managing Director of the Bank and has over 28 years of experience in the financial services
sector, 22 years of which have been with the Kotak Group. He is responsible for Group HR,
administration, infrastructure, operations and IT. He is also responsible for asset reconstruction
business of the Bank. Mr. Dipak Gupta was responsible for leading the Kotak Group's initiatives
into the banking arena. He was the Executive Director of Kotak Mahindra Prime Limited. Prior
to joining the Kotak Group, he was with A. F. Ferguson & Company for approximately six years.

Mr. Asim Ghosh
Mr. Asim Ghosh, aged 66 years, is the President and Chief Executive Officer of Husky Energy
Inc. He has a B.Tech, IIT Delhi and MBA from the Wharton School, University of Pennsylvania.
Mr. Ghosh commenced his career in consumer goods marketing with Procter & Gamble in the
U.S. and Canada and worked subsequently with Rothmans International as a Senior Vice
President of Carling O'Keefe Breweries, then one of Canada's major breweries. He moved to
Asia in 1989 as CEO of the Frito Lay (Pepsi Foods) start up in India. Thereafter, he was in
executive positions with Hutchison in Hong Kong and India for 16 years. He continued as the
CEO of the predecessor company of Vodafone India Limited till 31st March 2009 and as a Non-
Executive Director till 9th February 2010. He serves on the Board of Husky Energy Inc., other
Husky Group Companies, some Hutchison Whampoa Group Companies and the Canadian
Council of Chief Executives.

Mr. Prakash Apte
Mr. Prakash Apte, B.E. (Mechanical), aged 59 years, is presently the Chairman of Syngenta
India Limited, one of the leading agri business companies in India. Mr. Apte, in a career
spanning over 36 years has considerable experience in various areas of management and
business leadership. During more than 16 years of very successful leadership experience in agri
business, he has gained varied knowledge in various aspects of Indian Agri Sector and has been
involved with many initiatives for technology, knowledge and skills up gradation in this sector,
which is so vital for India's food security.
He was instrumental in setting up the Syngenta Foundation India which focuses on providing
knowledge and support for adopting scientific growing systems to resource poor farmers and
enabling their access to market. He is a Director of Syngenta Foundation India and Kotak
Mahindra Old Mutual Life Insurance Limited. Mr. Apte is a member of Audit Committee of
Bank and Syngenta India Limited.

Mr. Amit Desai
Mr. Amit Desai, B.Com, LLB, aged 55 years, is an eminent professional with 33 years of
experience. He is also on the Board of Kotak Mahindra Trustee Company Limited and Terra
DeKM Pvt. Ltd

Mr. Narendra P. Sarda
Mr. N.P. Sarda, B.Com, F.C.A., aged 68 years, is a Chartered Accountant for more than 40
years. He is a former partner of M/s. Deloitte Haskin & Sells, Chartered Accountants, the past
President of the Institute of Chartered Accountants of India (in 1993) and was a public
representative Director of the Stock Exchange, Mumbai (BSE).

Prof. Mahendra Dev
Prof. S. Mahendra Dev, PhD from the Delhi School of Economics, aged 56 years is currently
Director and Vice Chancellor, Indira Gandhi Institute of Development Research (IGIDR),
Mumbai, India. He was Chairman of the Commission for Agricultural Costs and Prices (CACP),
Govt. of India, Delhi. He was Director, Centre for Economic and Social Studies, Hyderabad for 9
years during 1999 to 2008. He has done his Post-doctoral research at Yale University and was
faculty member at the Indira Gandhi Institute of Development Research, Mumbai for 11 years.
He has been a member of several government committees including the Prime Minister's Task
Force on Employment and Rangarajan Commission on Financial Inclusion. He has received
honors for eminence in public service. He is the Chairman of the Committee on Terms of Trade
on agriculture constituted by the Ministry of agriculture, Govt. of India. He is also member of the
newly constituted Expert Panel on poverty estimates chaired by Dr. C. Rangarajan.


BUSINESS OPERATIONS
Our Finance and Business Operations teams forecast future revenues and analyze trends, while
managing costs, minimizing risk and staying focused on the bottom line. They're people like you,
working throughout the company, looking closely at each business area and delivering on smart
financial strategies.
The division of Finance & Business Operations supports the teaching, learning and research
mission of the University by providing a wide range of services.
The division, led by Vice President Shauna Ryan King, is responsible for all financial support
services, including budget; investments; information technology; dining and student financial
services; procurement, research, business transformation and internal auditing.
We strive always to do the right thingright the first time! We operate with honesty, integrity
and in a manner that celebrates all of our contributions. Our values encourage people to develop
and operate as empowered leaders.
The women and men of Finance & Business Operations are passionate about our work, and we
take great pride in knowing that, by providing the best support services, we are strengthening the
work of finance.
PRODUCTS AND SERVICES
Demat Services

Demat services, presents you a convenient and efficient way to manage your securities (shares,
bonds, etc). Demat accounts are very much similar to normal bank accounts. In a bank account
you deposit and withdraw your money. In a Demat account you deposit and withdraw your
securities. The securities in the Demat account are kept in.
Nri Services

As an NRI you may have invested in the stock market back home. Demat of course remains the
ideal option if you want to avoid the hassles of fake certificates, lost certificates, damage, theft
etc. What's more, when you open a demat account with us, you can view your Demat balances
from anywhere in the world, through net.
For NRI who wish to deal in shares in the secondary market, we can open the NRE (Repatriation
basis) or NRO (Non-Repatriation basis) accounts without your visiting India. If you are surprised
how, please call or mail us, we will surprise you more.

Share Clinic


Share clinic is another department, which handles physical share transfer, helping investors to
demat their scrips into electronic form, transmission of shares and revalidating the time barred
tds and dividend warrants.

Derivatives
The term Derivatives indicates that it has no independent value that is its value is entirely derived
from the value of the underlying asset. The underlying asset can be securities, commodities,
bullion, currency, or anything else. In other words, derivative means a forward, future, option or
any other hybrid contract of pre determined fixed duration, linked for the purpose of contract
fulfillment to the value of a specified real or financial asset or to an index of securities.

The four main types of derivatives traded today are:

Forward Contracts:
A Forward contract is a transaction in which the buyer and the seller agree upon the delivery of a
specified quality (if commodity) and quantity of underlying asset at a predetermined rate on a
specified future date.

Futures Contracts:
A Future is a firm contractual agreement between a buyer and seller for a specified asset on a
fixed date in the future. The contract price will vary according to the market place but it is fixed
when the trade is made. The contract also has a standard specification so both parties know
exactly what is being traded.

Options Contracts:
An Options contract confers the right, but not the obligation to buy (call) or sell (put) a specific
underlying instrument or asset at a specific price up until or on a specific future date the
expiry date.

Swap transactions:
A Swap transaction is the simultaneous buying and selling of a similar underlying asset or
obligation of equivalent capital amount where the exchange of financial arrangement with more
favourable conditions that they would otherwise expect.

Equities
The Equities are traded in two major exchanges in India, Bombay Stock Exchange (BSE)
and National Stock Exchange (NSE). Kotak Securities are the members of both the
exchanges.
About Bombay Stock Exchange
Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage.
Popularly known as BSE, it was established as The Native Share & Stock Brokers
Association in 1875. It is the first stock exchange in the country to obtain permanent
recognition in 1956 from the Government of India under the Securities Contracts
(Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development of
the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide.
Earlier an Association of Persons (AOP), the Exchange is now a demutualised and
corporatised entity incorporated under the provisions of the Companies Act, 1956, pursuant
to the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified by the Securities
and Exchange Board of India (SEBI).
About National Stock Exchange
The National Stock Exchange of India Limited has genesis in the report of the High Powered
Study Group on Establishment of New Stock Exchanges, which recommended promotion of
a National Stock Exchange by financial institutions (FIs) to provide access to investors from
all across the country on an equal footing. Based on the recommendations, NSE was
promoted by leading Financial Institutions at the behest of the Government of India and was
incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the
country.
On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956
in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment
in June 1994. The Capital Market (Equities) segment commenced operations in November
1994 and operations in Derivatives segment commenced in June 2000.




ORGANISATIONAL STRUCTURE

OBJECTIVES OF INTERNSHIP
An internship provides a variety of benefits for young workers who want to broaden their
chances for landing a job and jump-starting their careers. Internships give you a taste of what a
profession is like, help you build your resume and let you meet people who can help you in your
career. Dont be passive during an internship and miss opportunities to expand your business
background. Take advantage of the many benefits of holding an internship.
One of the main objectives of an internship is to expose you to a particular job and a profession
or industry. While you might have an idea about what a job is like, you wont know until you
actually perform it if its what you thought it was, if you have the training and skills to do it and
if its something you like. For example, you might think that advertising is a creative process that
involves coming up with slogans and fun campaigns. Taking an internship at an advertising
agency would help you find that advertising includes consumer demographic research, focus
groups, knowledge of a clients pricing and distribution strategies, and media research and
buying.
Another benefit of an internship is developing business contacts. These people can help you find
a job later, act as references or help you with projects after youre hired somewhere else. Meet
the people who have jobs you would like some day and ask them if you can take them to lunch.
Ask them how they started their careers, how they got to where they are now and if they have
any suggestions for you to improve your skills.

If you like your internship, you have the opportunity to excel and possibly land a job with the
company. Employers have an easier time hiring a person they know because they can get a feel
for that persons work ethic, skills, creativity, ability to work with others and overall fit with a
company. Do more than youre required to do, learn the office politics and make friends with key
people to increase your chances of landing a job with the company.

FINANCIAL OBJECTIVES

Setting financial goals and objectives for your business is one of the most important parts of the
planning process. Your goals and objectives are central to your operational success as they mark
critical milestones in each year for the business to achieve. They also help you to determine what
actions you will need to take to make your business successful.

Different businesses aim for different financial objectives depending on their needs, their
available resources and the opportunities that exist in the marketplace. For example, a business
may have objectives such as:

To achieve a gross profit margin of $250,000 before the end of the financial year.
To increase net profit by 20% each year for the first five years of operation.
To achieve a 30% return on the capital invested by the end of first year of operation.
To increase the size of operation from $100,000 in the first year to $200,000 in the next.
There are several important factors to take into account when establishing your businesss
financial objectives, including:
Sales revenue/ turnover
Cost of goods/services sold
Expenses relating to selling, distribution, administration and finance
Personal drawings
Break-even point
Gross/ net profit
Return on investment
Retaining profit for future growth
When setting financial objectives for your business, you should apply the SMART approach:
Specific specify what is to be achieved.
Measureable express objectives in measurable terms
Action-oriented state which actions need to be taken and who will take them.
Realistic ensure objectives are achievable with the resources available.
Time Specific set specific time frames for achieving objectives.

FACTORS THAT INFLUENCE A COMPANY'S CAPITAL-STRUCTURE DECISION

The primary factors that influence a company's capital-structure decision are as follows:
Business Risk
Excluding debt, business risk is the basic risk of the company's operations. The greater the
business risk, the lower the optimal debt ratio. As an example, let's compare a utility company
with a retail apparel company. A utility company generally has more stability in earnings. The
company has less risk in its business given its stable revenue stream.
However, a retail apparel company has the potential for a bit more variability in its earnings.
Since the sales of a retail apparel company are driven primarily by trends in the fashion industry,
the business risk of a retail apparel company is much higher. Thus, a retail apparel company
would have a lower optimal debt ratio so that investors feel comfortable with the company's
ability to meet its responsibilities with the capital structure in both good times and bad.
Company's Tax Exposure
Debt payments are tax deductible. As such, if a company's tax rate is high, using debt as a means
of financing a project is attractive because the tax deductibility of the debt payments protects
some income from taxes.
Financial Flexibility
Financial flexibility is essentially the firm's ability to raise capital in bad times. It should come as
no surprise that companies typically have no problem raising capital when sales are growing and
earnings are strong. However, given a company's strong cash flow in the good times, raising
capital is not as hard. Companies should make an effort to be prudent when raising capital in the
good times and avoid stretching their capabilities too far. The lower a company's debt level, the
more financial flexibility a company has.
Let's take the airline industry as an example. In good times, the industry generates significant
amounts of sales and thus cash flow. However, in bad times, that situation is reversed and the
industry is in a position where it needs to borrow funds. If an airline becomes too debt ridden, it
may have a decreased ability to raise debt capital during these bad times because investors may
doubt the airline's ability to service its existing debt when it has new debt loaded on top.
Management Style
Management styles range from aggressive to conservative. The more conservative a
management's approach is, the less inclined it is to use debt to increase profits. An aggressive
management may try to grow the firm quickly, using significant amounts of debt to ramp up the
growth of the company's earnings per share(EPS)

Growth Rate
Firms that are in the growth stage of their cycle typically finance that growth through debt by
borrowing money to grow faster. The conflict that arises with this method is that the revenues of
growth firms are typically unstable and unproven. As such, a high debt load is usually not
appropriate.
More stable and mature firms typically need less debt to finance growth as their revenues are
stable and proven. These firms also generate cash flow, which can be used to finance projects
when they arise.
Market Conditions
Market conditions can have a significant impact on a company's capital-structure condition.
Suppose a firm needs to borrow funds for a new plant. If the market is struggling, meaning that
investors are limiting companies' access to capital because of market concerns, the interest rate to
borrow may be higher than a company would want to pay. In that situation, it may be prudent for
a company to wait until market conditions return to a more normal state before the company tries
to access funds for the plant.
SOURCES FOR PROCUREMENT OF FUNDS
The three main funding sources are:
State funds come from the Commonwealth of Virginia and all state limitations apply.
Local funds come from non-state sources such as alumni donations. In some cases, local
funds may be used somewhat more flexibly than state funds.
Sponsored Programs are defined as "programs funded by revenue derived from grants
and contracts." State limitations apply unless the grant or contract specifies otherwise.
Finance is required in order to maintain an adequate cash flow to keep the business operating and
also for development. For the latter, the right amount is required at the right time and at the right
cost. So the first question here is about deciding the capital structure of a company, which refers
to the kind and proportion of different securities for raising long term finance. It involves
decisions regarding the form of capitalization, the sum total of all long term securities issued by
the company, equity as well as debt and the surplus not meant for distribution.
It deals with some questions such as what is the total capital required? What should be the mix
of equity i.e. owners capital and debt in the total capital.
There should be a healthy mix of equity and debt in a companys capital structure in order to
maximize returns to its owners. At the same time it should neither be over capitalized nor under
capitalized. A company is said to be over capitalized when its earnings are not large enough to
yield a fair return on the amount of stocks and bonds that have been issued or when the amount
of securities outstanding exceeds the current value of the assets. A company may be under
capitalized when the rate of profit it is making is exceptionally high in relation to the return
enjoyed by similarly situated companies in the same industry or when it has too little capital with
which to conduct its business. If a business is under capitalized it may remain still born. On the
other hand, if a business is over capitalized it runs the risk of being crushed under its own
weight.

A company has many alternatives while raising funds such as equity shares, term loans from
financial institutions, debentures, fixed deposits and bank finance for working capital
requirements. All these funds carry a cost either explicit interest on loans, debentures, deposits
etc. or implicit as in the case of dividend on equity. The weighted average cost of all the funds
garnered should be kept as low as possible. If the cost of financing becomes very high, the
companys profitability and hence growth prospects suffer. The time factor while mobilizing
funds should also be kept in mind. A business should not be started for want of timely infusions
of required cash. Capital markets as a rule go through a cyclical pattern boom, recession and
recovery. During a boom period, investors passionately embrace equity. During a recession,
bond markets outperform equity markets. The right timing of capital issue, therefore becomes
crucial while raising funds from various sources.

The company should normally, strike a fine balance between paying reasonable amounts to
investors who are looking for a steady income on their equity investment and those investors
who would want the company to invest the surplus generated by the company in projects having
great growth potential. Every company should have a healthy dividend policy whether to pay
dividends or retain the surplus for expansion, modernization etc. to satisfy the need for cash
within the company as also to satisfy the expectations of the investors.
Experts, generally arrange for a stable dividend policy wherein dividends are declared every year
as a sort of reward for loyal shareholders. The reason is that some shareholders rely on dividend
income and are willing to pay a higher price for less risky shares. Earning and dividends often
affect the readiness of shareholders to offer funds in times of necessity.

Utilization of funds
The amounts raised through various sources, at the right cost, at the right time should be put to
good use. A proper balance should be maintained while investing in fixed assets and current
assets. Fixed assets involve investment of funds (in land and buildings, plant and machinery,
furniture and fittings, office equipment etc.) over a fairly long period of time. Such investment
costs- money either in the form of interest on borrowed funds or imputed cost on own funds
(depreciation, operating expenses etc.). To the extent of possible investment in fixed assets
should be minimized in tune with business requirements. One should also carefully evaluate
whether fixed assets should be owned or leased. Leasing would be advantageous when the assets
in question are sparingly used balancing material handling and drilling equipment , diesel
generating sets, and the assets are subjected to rapid technological obsolescence (computing,
electronic, telecom hardware) .

On the negative side, lease rentals are generally high and the leased assets are not available for
use whenever the company requires them ( especially during a boom phase). When fixed assets
are bought on the other hand there is an assurance of their uninterrupted availability for use by
the company. When assets are purchased one should look at crucial issues such as wear and tear,
obsolescence rate, ability, for company to earmark sums for major capital expenditure (without
impacting profitability during a period), the depreciation policy that provides for timely
replacement of worn out assets etc. Also, proper schedules for preventive maintenance and
breakdown maintenance should be drawn up in advance. All spares should be stocked in
sufficient quantities. Looking after fixed capital requirements is only part of the story. The other
important issue is that of managing working capital requirements.



CONTROL OF FUNDS
The company provides clients with a full range of public finance and fund management services,
enabling donors to focus on their strategic goals, confident that their funds will be administered
effectively.
The companys performance-based payment approach ensures compliance with donor
guidelines, a supportive structure for implementing partners, and helps counterparts achieve
continuous funding for their programming. Our public finance and fund management services
include:
Establishing Operational and Financial Policies: Company uses best practices to establish
financial policy guidelines, create tailored funds management manuals, design internal
controls, and set up financial information systems.
Ensuring Fiscal Accountability: It acts as a trusted agent in carrying out all aspects of
grants and financial management. They implement accounting and budgeting systems,
apply internal controls and fraud protection mechanisms and provide reports to donors
and/or recipients.
Building Local Capacity: They assist donor organizations in identifying and selecting
local grant recipients, including government institutions, non-governmental organizations
and private sector firms. Also, then support these organizations to strengthen local
networks and build sustainability.
Monitoring and Evaluating Results: It provides robust monitoring and evaluation services
to ensure that funds are spent appropriately and that expected results are achieved.






FINANCIAL POSITION OF THE COMPANY
CONSOLIDATED FINANCIAL HIGHLIGHTS 2012-2013

`

FINANCIAL HIGHLIGHTS


FY
2009


FY
2010


FY
2011


FY
2012


FY
2013

Advances


22,49
8


29,72
4


41,24
2


53,14
4


66,25
8

Investments*


10,22
0


14,76
2


18,27
9


23,26
1


31,34
0

Total Assets


40,65
8


56,67
7


73,68
1


92,34
9


115,83
5

Net Prot


652


1,30
7


1,56
7


1,83
2


2,18
8

* Excludes Policyholders investments

KEY FINANCIAL INDICATORS


FY20
09


FY20
10


FY
2011


FY
2012


FY
2013

Net Interest Margin (NIM)


5.8
%


5.8
%


5.2
%


4.8
%


4.7
%

Return on Average Assets (RoAA)


1.6
%


2.7
%


2.4
%


2.2
%


2.1
%

Book Value Per Share (`)


94


114


149


174


204

Earnings Per Share (EPS) Face Value ` 5 per
share


9.4


18.
6


21.
6


24.
7


29.
3

Return on Equity (RoE)


10.5
%


18.2
%


16.4
%


15.4
%


15.6
%

Capital Adequacy Ratio


22.5
%


19.3
%


19.5
%


17.9
%


17.0
%

Gross NPA (` cr)*


506


647


469


561


720

Net NPA (` cr)*


262


338


178


260


353

Gross NPA Ratio*


2.3
%


2.2
%


1.1
%


1.1
%


1.1
%

Net NPA Ratio*


1.2
%


1.1
%


0.4
%


0.5
%


0.5
%

* Excludes stressed assets acquired from other Banks and NBFCs

MARKET RELATED RATIOS


FY20
09


FY20
10


FY
2011


FY
2012


FY
2013

Market Price (`)


141


375


457


54
5


653

Market Capitalization (` cr)


9,75
5


26,04
6


33,73
8


40,39
4


48,75
4

Price to Book Ratio


1.5


3.3


3.1


3.1


3.2

Price to Earnings Ratio


15.
0


20.
1


21.
2


22.
0


22.
3



CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH 2013



(` in thousands)


Schedule


As
at 31st
March 2013


As
at 31st
March 2012

CAPITAL AND LIABILITIES


Capital

1

3,733,0
45


3,703,4
48

Reserves and Surplus

2

148,764,9
42


125,307,0
15

Minority Interest

2A

2,087,1
74


1,600,5
57

Employees' Stock Options (Grants) Outstanding


175,3
36


348,2
07

Deposits

3

493,891,4
07


364,607,3
03

Borrowings

4

361,719,6
35


291,946,8
52

Policyholders Funds


100,772,7
17


90,115,3
40

Other Liabilities and Provisions

5

47,202,3
50


45,865,2
16

Total


1,158,346,
606


923,493,9
38

ASSETS


Cash and Balances with Reserve Bank of India

6

22,207,5
52


20,306,3
20

Balances with Banks and Money at Call and Short Notice

7

22,974,9
10


15,452,0
15

Investments

8

409,072,3
87


316,584,3
26

Advances

9

662,576,5
42


531,436,0
91

Fixed Assets

10

6,164,7
66


6,118,7
45

Other Assets

11

35,316,2
55


33,562,2
47

Goodwill on Consolidation


34,19
4


34,19
4

Total


1,158,346,
606


923,493,9
38

Contingent Liabilities

12

420,669,7
21


406,452,8
17

Bills for Collection


19,134,8
11


15,766,5
92













CONSOLIDATED PROT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST
MARCH 2013





Schedule

Year
ended
31st March
2013

Year
ended
31st March
2012

I. INCOME



Interest earned

13

108,378,
650


84,704,1
98

Other Income

14

51,124,0
53

45,433,9
75

Total


159,502,
703

130,138,
173

II.

EXPENDITURE


Interest expended

15

60,244,9
39

45,419,5
68

Operating expenses

16

65,984,2
86

57,166,2
45

Provisions and Contingencies (Refer Note 6 - Schedule
17)


11,231,3
52


9,047,0
71

Total


137,460,
577

111,632,8
84

III. PROFIT


Net Prot for the year


22,042,1
26


18,505,2
89

Less: Share of Minority Interest


493,3
20


528,4
45

Add: Share in pro t / (loss) of Associates


335,8
18

345,5
09

Consolidated Prot for the year attributable to
the Group


21,884,6
24

18,322,3
53

Add : Balance in Pro t and Loss Account brought
forward from previous
year



62,961,7
39



49,626,1
68

Total


84,846,3
63

67,948,5
21

IV. APPROPRIATIONS


Transfer to Statutory Reserve


3,401,8
00


2,712,7
00

Transfer to Special Reserve u/s 45 IC of RBI Act, 1934


928,6
00


800,3
52

Transfer to Special Reserve u/s 36(1)(viii) of Income Tax
Act, 1961


285,0
00


250,0
00

Transfer to General Reserve


683,9
00


1,630,1
03

Transfer to Capital Reserve


-


20
0

Transfer to Capital Redemption Reserve


6,80
0


-

Transfer to Debenture Redemption Reserve


25
0


-

Transfer from Debenture Redemption Reserve


-


(1,087,5
03)

Transfer (from) / to Investment Reserve Account


105,2
00


145,2
00

Proposed Dividend


523,7
54


444,9
29

Corporate Dividend Tax


90,40
1


90,80
1

Balance carried over to Balance Sheet


78,820,6
58


62,961,7
39

Total


84,846,3
63

67,948,5
21

V. EARNINGS PER SHARE [ Refer Note 9 - Schedule
17 ]


Basic (`)


29.4
4


24.8
1

Diluted (`)


29.3
3


24.6
7

Face value per share (`)


5.0
0


5.0
0





CONCLUSION
This internship experience was really great, helpful, useful and enjoyable. Through this working
experience I have become better to be confident and bold to face the outside people. I have learnt
many things from this training. I was motivated to opt for corporate companies and set many
goals in my future life. I will use this internship experience in my future career, so that, it will
make my life better to lead. On the whole I learnt a lot from this internship and enjoyed this
internship training and it was a nice experience.
GENERAL OBSERVATION
In my internship training people working in company were well intelligent and working hard for
their achievements. This Internship gave me more knowledge in the area of finance and had a
great experience with the company. I was given a great opportunity to better my future career
plans. I am really thankful to my faculties for giving me such a great opportunity. Therefore I am
motivated to achieve towards my future career goals.