TABLE OF CONTENTS

CHAPTER I:INTRODUCTION:
Advertising has always been criticized. The critics are very skeptical about the
manipulative effect of advertising; that it can control the minds of the audience
and can drive them to a particular way of thinking. However, there is another
group who disagrees. It believes that advertising truly reflects a culture. People of
this group believe that:
You can tell the ideals of a nation by its advertisements
(Norman Douglas)
Thus, if one wants to have a true picture of a nation, their ads should be viewed,
i.e., the ads reflect the culture. The following text is an attempt to solve this
controversy.
To find out whether advertising reflects the trends or creates them, a
representative sample of about 150 respondents was taken. The respondents
belonged to youth of age group 18-25. Their responses were recorded on a selfadministered questionnaire.
The results are, however, not completely in any sides favor. The respondents
have agreed that advertising has more benefits than drawbacks. They further agree
that advertising has the driving power to make the audience act in a particular
way, and spend in a particular pattern, i.e. advertising does have manipulative
power. Thus, the ads that we view do have impact on the viewers. One particular
thing that is note worthy is the type of ads that respondents like. The initial results
might not clearly be on any one side, but in this regard, the results show that
irrelevant, obscene, and ads that do not conform to our culture have no space in
the audiences diary of likeable ads.

Thus, a safe conclusion would be that the line cannot be drawn whether the
advertising is inherently good or bad. It does have impact, either positive or
negative, it does reflect our culture. The need of the hour is to channel the
energies of ads to constructive impact.

Advertising
When Semenik (2002, 10) defines advertising, he does so in a very concise
fashion: A paid, mass mediated attempt to persuade A more elaborate definition
of advertising states:
Advertising is the structured and composed, non personal communication of
information, usually paid for and usually persuasive in nature, about products
(goods, services, and ideas) by identified sponsors, through various mass media.
Arens (2002, 7)
This detailed definition has several terms asking for an explanation, that wont go
unattended.First, there is structured and composed, which means that the
advertising follows a definite pattern and that all the areas in an advertisement are
organized. Not only organized, they are all coordinated towards a common goal.
Selling can be done in two ways: Personal, where the seller and the buyer interact
face-to-face, together at the same place; Non-personal, which doesnt require a
face-to-face contact between the buyer and the seller. Advertising is non-personal
way of communication because both the parties are not present face-to-face
together, at the same time. Rather, advertisements use mass media which is
directed at a larger audience.

Communication is defined by Sharma and Singh (2006, 10) as a mean by which

a person can pass information, ideas or feelings to another through speech or
pictures. We communicate through our five senses. But in the world of
advertising, only two senses are required; Sound and Sight. Sound means words
that are uttered. They can be used in a variety of media to create a theatre of the
mind, where the audience can imagine themselves, enjoying the advertised
product. Sight is the visual display of the advertised product. A picture is still
worth a thousand words and no matter how many words are used, some details
will be left out that are visible at a glance, Sharma and Singh (2006,
12)Information is knowledge, facts, or views. However, the information can be
complete or incomplete, biased or unbiased. The commonly held concept is that
advertisers present incomplete and biased information that favor the advertisers.
And, thinking from the advertisers point of view, it is quite logical. No advertiser
would want the audience to know the harmful aspects of its product, at any cost.
This is also discussed in the conclusions and recommendations section.The media
charges the advertisers for the time and space it provides to the advertisers, thus
advertising is always paid for, except for the Public Service AnnounPaintss
(PSAs) that are shown free of cost and the cost is borne by the media.
Being Persuasive in nature is the basic idea of advertising. All the pain that is
taken to make an ad is only to differentiate the product from that of the
competitors so as to convince people to act in the desired way.
Advertising can be about product, service, or ideas. As already explained, the
product comes in tangible goods, while the other two are intangible. When Honda
advertises its automobiles, its a product, when it mentions the sales and after
sales services, that is service, and finally when it advertises about the benefits of
wearing seat belts while driving, thats an idea.

What is the advertising all about? Its all about getting people to know about the
company, to identify the sponsor. Without this, the advertiser is likely to be less
successful.
Mass Media are used to reach the target audience. Mass media used can be of
various kinds depending on the target audience and the desired result. The most
commonly used media are TV, radio, newspaper, magazines, billboards. Since
innovation is taking place everywhere, the advertisers have also found innovative
ways to advertise. Interactive advertising, sky-writing, air balloons, and electronic
hoardings are some of the recent innovations.

1.2.1 Classification of Advertising:

It depends on the marketing strategy of the company which type of advertising it

wants to adopt. But generally the advertising is classified in the following heads:
By Target audience:
Just as marketing mix is directed towards a target market, advertising strategies
are directed towards a target audience. It includes:

Consumer advertising:
Consumers are people who buy a product for their own personal consumption.
Most of the advertisements that we see daily belong to this category. Nestle and
Unilever products, Honda cars, Nokia cell phones are all consumer products.
Business advertising:
This advertising is targeted to audience who buy the product for all purposes other
than personal or family satisfaction. It is further classified as:
Trade advertising: advertising aimed at the intermediaries of the channel of
distribution, i.e. the wholesalers and the retailers.
Professional advertising: advertising aimed at specific professions that require
specific needs to be fulfilled, like lawyers, doctors, engineers.
Agriculture advertising: directed at agri-business, and includes mainly
agricultural input/products. Pakistani media shows a lot of ads for this category.
Commonly seen ads are Engro and

FFC fertilizers,

tractors, and other

insecticides and pesticides.

Industrial advertising: these ads are directed at the manufacturers of other
products, as machineries, spark plugs etc.

By Geographic area:
Geography determines the type of advertising the company will devise. It
includes:
Local (retail) advertising:
When local stores inform the local audience about the availability of products or
for making any other announPaints, its called local advertising. For example, RSheen, or Servis, or Wadud Sons announcing a Sale.

Regional advertising:
When a product that is sold in a specific region is advertised, it will be called as
regional advertising. For example Punjab has many specialties that are not
available in other provinces of Pakistan.
National advertising:
In this type of advertising, the products are advertised throughout the country. For
example, any new model of Honda or Toyota is advertised nationally in Pakistan.
International advertising:
It can also be called Global Advertising. A product available globally with no or
minimum variations is advertised through global advertising. Pepsi and Coke use
this strategy.

By Medium:
Print media: newspapers, magazines, journals.
Broadcast/electronic media: TV, radio.
Out-of-home advertising: billboards, transit, posters, banners, electronic
billboards.
Direct-mail advertising: sent through postal services or e-mails.
Interactive advertising: internet, kiosks.

By purpose:
Product/Non-Product:
When the company wants to advertise a product (including service), that is called
product advertising. On the other hand, if the company wants to improve its
image, create goodwill, wants the people to know that it exists, then its called
non-product advertising.
Commercial/Non-commercial:

When the purpose of the advertising is to earn profit, irrespective of it being

product or non-product, it is called commercial advertising. Any advertisement
not for this purpose may be called as non-commercial advertising.
Primary/selective demand:
Advertising a whole class of products is advertising for primary demand. For
example, when advertising is done for the benefits of using internet, it will be
included in primary demand advertising. If the advertising is able to create a
demand, the specific ads of specified company providing internet connections will
be shown.
Direct action/indirect action:
If the advertiser is seeking an immediate response from the audience, by giving a
toll free number or announcing any free gifts, lets say, for the first 100 customers,
that is called direct action advertising. If the advertising is done just to create
awareness for future transactions, that is an indirect action advertising.

PP
PP C
PP
PP

Figure 1: Diagram showing the relation of Customer C with the 4 Ps of the marketing Mix.
(Source: Perreault, William D. and Jerome McCarthy, 2005, 38)

The Two aspects of Advertising

Advertising is the granddaddy of all the promotional tools. Its the most
conspicuous, the most scrutinized, and the most controversial. Semenik (2002,
265)
Just like anything else, advertising also has its opponents and proponents. But the
difference of the advertising dilemma from others is that both the sides are true
and nones view point can be denied. Thus, the advertising industry lies in a
delicate balance of to be or not to be.
The opponents of advertising say that it plays a manipulative role on its target
audience. It has the power to control the choices that the consumers make. It often
portrays such glamorous images that aspires the audience to act in their desired
way, to buy a certain brand of car, wear specific designers clothes, use a
particular cell phone, join a specific fan-club, and visit the advertised location.
Failure to do so can result in dire consequences, ranging from simple inferiority
complex to outright rejection by the society. It is this philosophy that makes the
audience think that advertisers would do whatever they want, to get a bucket full
of cash, and would make the advertisers least concerned with the welfare of the
audience that becomes the customers of the product. This thinking has always
been haunting the advertisers, lest their advertising campaigns might be rejected
on these grounds, altogether.
On the far side there are the proponents of advertising who give hope to the
advertisers. They believe that although the advertising has the power to attract the
audience, but the real power lies with the audience. The audience can only be
attracted to that image which is already embedded in their minds. Remember
when the last time you saw an advertisement after which your response was

pathetic! This is because probably the ad wasnt directed towards you and you
didnt fall in the target audience. The advertisements then, only act as a stimulus,
a catalyst. They argue that how could a person ever be induced to buy something
that he/she doesnt want! The famous saying that Advertisements can sell a
refrigerator to Eskimos is then an exaggeration! And answering to the other
controversy, they say that since advertisers personal image, the companys
reputation, and both of their futures are at stake, therefore, no advertiser and
company would ever want to use dirty tricks in the bag to sell substandard,
harmful products to the customers. Consequently, the buyers can be confident in
buying the advertised products since the company has put its own reputation at
stake.

History of Advertising
Advertising as a discrete form is generally agreed to have begun with
newspapers, in the seventeenth century, which included line or classified
advertising. Simple descriptions, plus prices, of products served their purpose
until the late nineteenth century, when technological advances meant that
illustrations could be added to advertising, and color was also an option.
An early advertising success story is that of Pears Soap. Thomas Barratt
married into the famous soap making family and realized that they needed to be
more aggressive about pushing their products if they were to survive. He launched
the series of ads featuring cherubic children which firmly welded the brand to the
values it still holds today. he took images considered as "fine art" and used them
to connote his brand's quality, purity (i.e. untainted by commercialism) and
simplicity (cherubic children). He is often referred to as the father of modern
advertising.

World War I saw some important advances in advertising as governments

on all sides used ads as propaganda. The British used advertising as propaganda to
convince its own citizens to fight, and also to persuade the Americans to join. No
less a political commentator than Hitler concluded that Germany lost the war
because it lost the propaganda battle: he did not make the same mistake when it
was his turn. One of the other consequences of World War I was the increased
mechanization of industry - and hence increased costs which had to be paid for
somehow: hence the desire to create need in the consumer which begins to
dominate advertising from the 1920s onward.

1.2. Need of the study:

This study is about advertising in L & T finance Ltd.
These studies to know the impact of L & T finance Ltd advertising and the
brand image created by the L & T finance among competitor.
Findings of the study helps their satisfaction level at L & T finance

SCOPE OF THE STUDY

This study undertaken for The L & T finance aims to study and identify
the potential customers.

This has been done by preparing a questionnaire which contains questions

put forth to the respondents which would help is analyzing advertisement
management in L & T finance.
All this would help in giving suggestion to The L & T finance
improving L & T finance thereby satisfying their corporate and retail clients

1.4 Objective of the study:

To study the brand image created by L & T finance among

competitor.

To find out the reason for choosing L & T finance

To Create New marketing Strategies in Broking Companies

1.5 RESEARCH METHODOLOGY:

INTRODUCTION:
Research methodology is a way to systematically solve the research
problem is to how research is done scientifically. It consists of the different
steps that are generally adopted by the researcher to the study his research
problem along with logic behind them. It is necessary to the researcher to
develop certain tests.

1.5.1 RESEARCH DESIGN:

Research design is a plan to answer whom, when, where, and how the
subject under investigation conceived so as to obtain answers to research

in

questions. The type of research design involved in this study is descriptive

research studies.

DESCRIPTIVE RESEARCH STUDIES:

Descriptive research studies are those studies, which are concerned with
describing the characteristics of a particular individual, or of a group, where as
diagnostic research study determine the frequency with which something occurs
or its association with something else. The studies concerning whether certain
variables are associated are example of diagnostic research studies. As against
this, study concerned individual, group or situation are all example of descriptive
research studies. Most of the social research studies come under this category
from the point of view of the research design.

1.5.2 DATA COLLECTION METHOD:

The required data was collected by both the primary and secondary
sources.
The data objective are describe from the research objectives and their
determination rests mainly on the research to translate what the decision marker
wants into specific descriptive of the needed data.

Primary:
The primary data was collected from the, L & T finance., users at
HYDERABAD. The Respondents were met personally at their
establishments and questionnaire has been given to them and answered
questionnaires were collected back.
Primary data is the data gathered for the first time by the researcher by
using questionnaire.

Secondary data:

Secondary data, on the other hand, is those which have already been
collected by someone else and which already been passed through the
statistical process.

Secondary data pertaining to this study was obtained from company

documents, broachers, departmental informations websites etc.

1.5.3 RESEARCH INSTRUMENTS:

Instrument

: Questionnaires (personal administered)

Instrument Design

: Both open end enclose ended

Question and used in questionnaires.

Questionnaire Design
A well structured questionnaire was used for this study. The types
of questions used in the questionnaire were open-ended, multiple-choice
and Dichotomous questions.
1. Open-end questions are questions, which are entitled to give a
free response to their choice.

2. Multiple-choice questions are question, which contain a list of

answer and permit the subject to select the best answer.

1.5.4 SAMPLING:
Sampling is the process of selecting a sufficient number of elements
from the population, so that a study of sample and an understanding of its
properties or characteristics would make it possible for us to generalize such
properties or characteristics to the population elements.

SAMPLEING PLAN:
Sampling technique : Cluster sample
Sample size

: Sample size chosen here for this study

was 100 as suggested by the company

SAMPLE DESIGN:
A Sample design is a definite plan for obtaining a sample from given
population. It refers to the technique or the procedure the researcher would adopt
in selection items for the sample. Sample may as well lay down the number of
items to be included in the sample namely, the size of the sample.

Probability sampling:
Make a specific mention of it in the thesis. So that the conclusions would
be evaluated accordingly. Probability sampling refers to the sampling process in
which the samples are selected for a specific purpose with a pre-determined basis
of selection. This type of samples is also required at times when random selection
may not be possible. Therefore the reliability of conclusions based on this type of
sampling is less. Whenever a researcher uses this type of sampling.

Cluster Sampling:
Cluster sampling method suggests, the samples are selected at different
stages. In this method, the population is first divided into different stages. Then
from the first stage, a few items are selected at random based on a specific feature
or characteristic. From these in the second stage, a few elements are selected at
random possessing, he characteristic. From which in the third stage a few are
selected at random satisfying the characteristic and so on to finally make the
necessary selection of samples. All the samples selected at random at different
stages will posses the common characteristic or will be homogeneous on some
basis.

Cluster sampling involves arranging elementary items in a population into

heterogeneous subgroups that are representative of the overall population. One
such group constitutes a sample for study.

SAMPLING SIZE:
The total numbers of respondents are termed as sample size. The
sample size for this analysis is 100 respondents.

Percentage Analysis:
Percentage refers to a special kind of ratio. It is used to make
comparison between two or more series of data. They can be used to
compare the relative items, the distribution of two or more series of data
since the percentage reduce everything as common base and allow the
meaningful comparisons to be made.
Percentage refers to the special kind of ratio percentage are used in
making comparison between two or more series of data. Percentages are
used to describe relationship.

FORMULA:
No. of respondents
Percentage (%) = _________________________

100

Total respondents
Bar chart and Pie charts are used to explain the tabulation clearly.

Company Profile
COMPANY PROFILE
L&T Finance is one of the leading NBFCs in the country and offers a wide spectrum of financial
products and services for trade, industry and agriculture.

Overview
L&T Finance Limited (LTF) is a subsidiary of Larsen and Toubro. It was incorporated as a Non
Banking Finance Company in November 1994. Through LTF, L&T aims at making a strong foray in
the ever-expanding financial services sector.
As a business philosophy, we fund income generating assets/activities while maintaining a clear
focus on returns.
LTF offers a spectrum of financial products and services for trade, industry and agriculture. The
company's focus segments are corporate products, construction equipment, CVs and tractors.
Despite the turbulence in the financial services markets over the past few years, L&T Finance has
adapted well to the changing market dynamics to remain consistently profitable.

Like the rest of the companies in L&T group, LTF is also professionally managed. LTF shares the
professional values and ethos of its parent company, and has acquired and maintained a reputation
for reliability, transparency of operations and absolute integrity. A steady growth rate validates the
trust that industry has reposed in the company.

Mission :
Our Aim : To be a strategic business partner and a solution provider.
Our Purpose : To nurture human capital and develop leadership for professional excellence
through meritocracy and continuous learning environment.
Our values : Customer orientation, teamwork, trust and transparency.

Vision :
"To be a dominant player in financial services, committed to constant innovation and sustained
customer service to enhance shareholder's wealth. LTF will foster trust, uphold integrity and radiate
positive energy."

About L&T Group

Larsen & Toubro Ltd is a USD 9.8 billion technology, engineering and construction group with
operations spread across the globe. It was ranked as 14th by the Economic Times in their survey of
the Top 500 Companies in India. Another feather in its cap was added when L&T was ranked 47th
in the world in the June 2009 issue of Forbes-Reputation Institutes Worlds Most Reputable
Companies survey. In this survey, L&T was the only engineering and construction company in the
world to have made it to the top 200.
Having established its foothold in engineering and construction, electrical and electronics, industrial
products and information technology, L&T forayed into the financial services space. Financial
Services has been identified as a strategically important business for L&T Group. It has been L&Ts
vision to become a wholesome player in this area of business. With an entire range of products
and service offerings, L&Ts Financial Services initiative will cater to an entire spectrum of
customers, and their various financial needs.

Management

Chief Executive
Mr. Dinanath Dubhashi holds a B.E. (Mechanical) and has completed his PGDM from IIM,
Bangalore. He has been with L&T finance from April 2007. Prior to taking over as Chief Executive he
occupied various senior level positions in the organization and has been responsible in leading L&T
Finances foray in Retail Finance including Microfinance. He comes with almost 20 years of
experience in various fields of financial services like Retail Financial Services, Corporate Banking,
Cash Management and Trade, Credit Rating and Project Finance from various reputed Indian and
International organizations. Immediately prior to joining L&T Finance, he worked with BNP Paribas
for 10 years in India and abroad heading various important verticals like Cash Management, Trade
Services and Corporate Banking Products. His assignments previous to this were with Birla Sunlife,
Care Ratings and SBI Capital Markets.

Board of Directors
Y. M. Deosthalee, Whole-time Director and CFO, Larsen & Toubro Ltd.

Mr. Deosthalee, aged 64, is the chief financial officer and member of the board of L&T. He is a
chartered accountant by profession. He has a degree in law. He is also a member on the board of
several subsidiary and associate companies of the L&T group. He has been with L&T for the past 36
years. In addition to the finance function, he is also responsible for personnel and human resource
functions, risk management, mergers and acquisitions, concessions business, shared services centre,
providing strategic inputs and helps in business-building of L&T Infotech, amongst other things. He
has been instrumental in promoting the Financial Services business of L&T group.
In 2008, he was appointed as a member on the Advisory Committee for liquidity management set up by
the Finance Ministry. In 2009, he was appointed as a member of the Takeover Regulations Advisory
Committee which has been constituted by SEBI to examine the regulations and suggest amendments.
He is the Co-Chairman of FICCI's Corporate Finance Committee, member of the National Council on
Infrastructure of the Confederation of Indian Industry and a member of the National Council on
Corporate Governance of the Confederation of Indian Industry. He has also won several awards
including the-Best CFO of the Year and also Best CFO in the Capital Goods Sector at the CNBC TV18
Business Leaders Awards in 2009. He has over 40 years of work experience.
N. Sivaraman, Senior Vice President, Financial Services, Larsen & Toubro Ltd.

Mr. Sivaraman, aged 52, is the president and whole-time director of our Company. He has a
bachelors degree in commerce from Madras University. He is a chartered accountant by profession
and is a fellow member of the Institute of Chartered Accountants of India. He has an overall experience
of approximately 28 years with L&T. He has varied experience in all aspects of finance and accounts,
mergers and acquisition and investor relations. Currently, he is heading the financial services business
of L&T. As the head of financial services business he is responsible for and oversees the following
entities L&T Finance Limited, L&T Infrastructure Finance Company Limited, L&T Investment
Management Limited and L&T General Insurance Company Limited. During his career at L&T, Mr.
Sivaraman played a key role in structuring the demerger of the cement business of L&T and inducting
private equity investors in L&T Infrastructure Development Projects Limited.
R. Shankar Raman, Senior Vice President, Finance & Legal, Larsen & Toubro Ltd.

Mr. R. Shankar Raman,aged 52, is the senior vice president (finance and legal) at L&T. He is a
nonexecutive director on the board of our Company and L&T Finance. Mr. Shankar Raman has a
bachelors degree in commerce from Madras University. He is a Chartered and Cost Accountant by
profession. He has approximately 27 years of experience in the field of finance. He has experience in
other varied areas such as audit, accounts, treasury, capital markets, corporate finance, project finance
and general management. He joined L&T group in 1994 for setting up L&T Finance. After six
successful years with L&T Finance, he moved to L&T to oversee the Finance & Accounting functions.
He is on the board of several companies including international subsidiaries within the L&T group. Mr.
Shankar Raman is a member of Western India Regional Council of Confederation of Indian Industries.
Mr. Shankar Raman has participated and presented papers in several conventions / seminars including
international conferences.
Mr. Subramaniam N., Independent Director, Finance & Legal, Larsen & Toubro Ltd.
Mr. Subramaniam N., aged 49, is an independent director on the board of our Company. Mr. Subramaniam N. has a degree

in management and business administration from the Indian Institute of Management, Ahmedabad. He is a fellow of the
Institute of Chartered Accountants of India, an FCS and ICWA. He has over two decades of experience in the areas of
private equity, investment management, banking, finance, accounts, risk management, system implementation and corporate
governance, MIS and human resource management. He is the founder and managing partner of MCAP Fund Advisors. He is
also a teacher at top tier business schools and professional institutes.
Mr. P. V. Bhide, Independent Director, Finance & Legal, Larsen & Toubro Ltd.
Mr. P. V. Bhide, aged 61, is an independent director on the Board of our Company. Mr.Bhide is a retired IAS Officer and
holds degrees in MBA, L.L.B and B.Sc. During his career spanning about four decades he held various positions, including
the Secretary, Department of Revenue, Ministry of Finance, Government of India, Secretary and Joint Secretary, Department
of Disinvestment, Ministry of Finance, Government of India, Additional Secretary/Spl. Secretary, Ministry of Home Affairs,
Government of India, Deputy Secretary/Director in the Department of Economic Affairs, Ministry of Finance, Government of
India, Director Fund-Bank Division of the Department and Advisor to Indias Executive Director to the International Board for
Reconstruction and Developemnt, Washington D.C, Secretary, Department of Finance, Government of Andhra Pradesh,
Secretary, Department of Energy, Government of Andhra Pradesh and Managing Director, Godavari Fertilisers and
Chemicals Limited.

Corporate Governance

Code of Conduct
L&T Finance Limited (LTF/the Company) is a professionally managed Company, having its vision
statement committed to constant innovation and sustained customer service to enhance
shareholders wealth.
The Company's philosophy on corporate governance is built on a rich legacy of fair and transparent
governance and disclosure practices. This includes respect for human values, individual dignity,
and adherence to honest, ethical and professional conduct. This Code of Conduct ensures
compliance with the provisions of Clause 49 of the Listing Agreement with Stock Exchanges.

This Code of Conduct is applicable to the:

Members of the of the Company; and Senior Management, defined as members of Core
Management Team excluding and one level below the Executive Directors including Functional
Heads
The above Senior Managerial Personnel are hereinafter referred to in this Code of Conduct as
"Senior officers".
The Senior officers shall confirm that they have received, read and understood the Code of
Conduct, and agree to comply with the Code in the format specified on an annual basis.
The Senior officers are expected to comply with all applicable laws, rules and regulations and all
applicable policies and procedures adopted by the Company.
The Senior officers should adhere to and facilitate effective functioning of the Company's
mechanism for redressal of complaints of sexual harassment.
Senior officers will ensure proper usage of authority as delegated to them as per the Company's
rules.
Every Senior officer has to secure, preserve, safeguard and use discreetly, confidential information
in the best interest of the Company. He should not divulge or communicate such information to third

parties except when authorized for the business reasons. In this regard, Corporate Communication
Department has identified spokespersons authorized to deal with the media.
Senior officers are expected to devote their full attention with integrity and honesty to the business
interests of the Company and are prohibited from engaging in any activity that interferes with their
proper discharge of responsibilities of the Company, or is in conflict with or prejudicial to the
interests of the Company.
Senior officers should avoid conducting Company business in any significant way with a relative (as
defined in the Companies Act, 1956), or with a business in which a close relative is associated.
The Senior officers are responsible for effective control and appropriate use of all Company's
resources entrusted to them in the official discharge of their duty.
The Senior officers should abide by 'LTF Securities Dealing Code' in compliance with the SEBI
(Prohibition of Insider Trading) Regulations 1992, as adopted by the of the Company.

Fair Practices Code

Investors Corporate Governance Fair Practices

Code

Pursuant to Reserve Bank of India (RBI) s Circular DNBS (PD) CC No.80/03.10.042 /2005-06 of
28 September 2006, issued to Non-Banking Financial Companies (NBFCs), we the Board of
Directors have adopted a Fair Practices Code.
The Fair Practices Code, as adopted herein below, is in conformity with the Guidelines on Fair
Practices Code for NBFCs as contained in the aforesaid RBI Circular.

Fair Practices Code

The Companys business would be conducted in accordance with prevailing statutory and
regulatory requirements, with due focus on efficiency, customer-orientation and corporate
governance principles all of which form part of L&T FINANCE LIMITED approved Investment and
Credit Policy.
In addition, the Company would adhere to the Fair Practices Code in its functioning, the key
elements of which are as follows:
Applications for Loans and their Processing
Loan application forms shall include necessary information, which affects the interest of
the borrower, so that a meaningful comparison with the terms and conditions offered by
other NBFCs can be made and the borrower can take an informed decision. The loan
application form may also indicate the documents required to be submitted with the
application form.
The Company shall devise a system of giving acknowledgement for receipt of all loan
applications. Further, generally, the time frame within which the loan application will be
disposed of would also be indicated in the acknowledgement.
Loan Appraisal and Terms/Conditions
The Company shall convey in writing to the borrower by means of approval letter or
otherwise, the amount of loan approved - along with the terms and conditions, including
the annualized rate of interest and method of application thereof. It would keep the
acceptance of these terms and conditions by the borrower on the Companys files.
Disbursement of Loans including Changes in Terms and Conditions

The Company shall give notice to all its borrowers of any change in the terms and
conditions - including disbursement schedule, interest rates, service charges, prepayment
charges etc. The Company shall also ensure that changes in interest rates and charges
are effected only prospectively. A suitable provision in this regard shall be incorporated in
the loan agreement.
Decision to recall / accelerate payment or performance under the agreement shall also be
in consonance with the loan agreement.
The Company shall release all securities on repayment of its full dues or on realization of
the outstanding amount of loan subject to any legitimate right or lien for any other claim
the Company may have against its borrowers. If such right of set off is to be exercised, the
borrower shall be given notice about the same with full particulars about the remaining
claims and the conditions under which the Company is entitled to retain the securities till
the relevant claim is settled/paid.

General
The Company shall refrain from interference in the affairs of the borrower except for the
purposes provided for in the terms and conditions of the loan agreement (unless new
information, not earlier disclosed by the borrower, has come to the notice of the
Company).
In case of receipt of request from the borrower for transfer of borrowal account, the
consent or otherwise - i.e., objection of the Company, if any - shall be conveyed to the
borrower within 21 days from the date of receipt of any request. Such transfer shall be as
per transparent contractual terms in consonance with law.
In the matter of recovery of loans, the Company shall not resort to any harassment such
as persistently bothering the borrowers at odd hours, use of muscle power for recovery of
loans, etc.

The Company shall have a Grievance Redressal Forum comprising senior

management team namely, the Manager Under Companies Act,
Company Secretary AND one Director from the board - to resolve
disputes arising, if any, in this regard. The said forum will meet within a
period of 3 weeks from the date of receiving any grievance intimation. (It
shall ensure that all disputes arising out of the decisions of lending by the
Company's functionaries are suitably heard and disposed of at least at the
next higher level.) The said forum shall provide the highlights of the
issues and redressal if any to the for their review and compliance at each
subsequent meeting

Contact Us
Registered office
L&T House,
Ballard Estate,
Mumbai - 400 001.
Tel: +91-22 6752 5656
Fax: +91-22 6752 5893

Administrative office
The Metropolitan
8th Floor,
C-26/27, E-Block, Bandra - Kurla complex,
Bandra (East),
Mumbai - 400 051
Tel.: +91-22 6737 2951
Fax: +91-22 6737 2900

MARKET PROFILE

NATIONAL STOCK EXCHANGE

The National Stock Exchange of India (NSE) situated in Mumbai - is the
largest and most advanced exchange with 1016 companies listed and 726 trading
members. Capital market reforms in India and the launch of the Securities and
Exchange Board of India (SEBI) accelerated the incorporation of the second

Indian stock exchange called the National Stock Exchange (NSE) in 1992. After a
few years of operations, the NSE has become the largest stock exchange in India.
Three segments of the NSE trading platform were established one after another.
The Wholesale Debt Market (WDM) commenced operations in June 1994 and the
Capital Market (CM) segment was opened at the end of 1994. Finally, the Futures
and Options segment began operating in 2000. Today the NSE takes the 14th
position in the top 40 futures exchanges in the world.
In 1996, the National Stock Exchange of India launched S&P CNX Nifty and
CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a
diversified index of 50 stocks from 25 different economy sectors. The Indices are
owned and managed by India Index Services and Products Ltd (IISL) that has a
consulting and licensing agreement with Standard & Poor's.
In 1998, the National Stock Exchange of India launched its web-site and was the
first exchange in India that started trading stock on the Internet in 2000. The NSE
has also proved its leadership in the Indian financial market by gaining many
awards such as 'Best IT Usage Award' by Computer Society in India (in 1996 and
1997) and CHIP Web Award by CHIP magazine (1999).
The NSE is owned by the group of leading financial institutions such as Indian
Bank or Life Insurance Corporation of India. However, in the totally demutualised Exchange, the ownership as well as the management does not have a

right to trade on the Exchange. Only qualified traders can be involved in the
securities trading.
The NSE is one of the few exchanges in the world trading all types of securities
on a single platform, which is divided into three segments: Wholesale Debt
Market (WDM), Capital Market (CM), and Futures & Options (F&O) Market.
Each segment has experienced a significant growth throughout a few years of
their launch. While the WDM segment has accumulated the annual growth of over
36% since its opening in 1994, the CM segment has increased by even 61%
during the same period. The National Stock Exchange of India has stringent
requirements and criteria for the companies listed on the Exchange. Minimum
capital requirements, project appraisal, and company's track record are just a few
of the criteria. In addition, listed companies pay variable listing fees based on
their corporate capital size.
The National Stock Exchange of India Ltd. provides its clients with a single, fully
electronic trading platform that is operated through a VSAT network. Unlike most
world exchanges, the NSE uses the satellite communication system that connects
traders from 345 Indian cities. The advanced technologies enable up to 6 million
trades to be operated daily on the NSE trading platform.
NSE Nifty:
The S&P CNX Nifty (nicknamed Nifty 50 or simply Nifty), is the leading index
for large companies on the National Stock Exchange of India. S&P CNX Nifty is

a well diversified 50 stock index accounting for 22 sectors of the economy. It is

used for a variety of purposes such as benchmarking fund portfolios, index based
derivatives and index funds.
Nifty was developed by the economists Ajay Shah and Susan Thomas, then at
IGIDR. Later on, it came to be owned and managed by India Index Services and
Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is
India's first specialised company focused upon the index as a core product. IISL
have a consulting and licensing agreement with Standard & Poor's (S&P), who
are world leaders in index services.
CNX stands for CRISIL NSE Indices. CNX ensures common branding of indices,
to reflect the identities of both the promoters, i.e. NSE and CRISIL. Thus, 'C'
stands for CRISIL, 'N' stands for NSE and X stands for Exchange or Index. The
S&P prefix belongs to the US-based Standard & Poor's Financial Information
Services.

NSE other indices:

S&P CNX Nifty
CNX Nifty Junior
CNX 100

 S&P CNX 500

CNX Midcap
S&P CNX Defty
CNX Midcap 200

BOMBAY STOCK EXCHANGE:

The Bombay Stock Exchange Limited (formerly, The Stock Exchange, Mumbai;
popularly called The Bombay Stock Exchange, or BSE) is the oldest stock
exchange in Asia. It is located at Dalal Street, Mumbai, India.
Bombay Stock Exchange was established in 1875. There are around 5,600 Indian
companies listed with the stock exchange, and has a significant trading volume.
As of October2006, the market capitalization of the BSE was about Rs. 33.4
trillion (US $ 730 billion). The BSE SENSEX (SENSitive indEX), also called the
BSE 30, is a widely used market index in India and Asia. As of 2005, it is among
the 5 biggest stock exchanges in the world in terms of transactions volume.
History:
An informal group of 22 stockbrokers began trading under a banyan tree opposite
the Town Hall of Bombay from the mid-1850s, 1875, was formally organized as
the Bombay Stock Exchange (BSE).In January 1899, the stock exchange moved
into the Brokers Hall after it was inaugurated by James M MacLean. After the
First World War, the BSE was shifted to an old building near the Town Hall. In
1956, the Government of India recognized the Bombay Stock Exchange as the
first stock exchange in the country under the Securities Contracts (Regulation)
Act.1995, when it was replaced by an electronic (eTrading) system named BOLT,
or the BSE Online Trading system. In 2005, the status of the exchange changed
from an Association of Persons (AoP) to a full fledged corporation under the BSE
(Corporatization and Demutualization) Scheme, 2005 (and its name was changed
to The Bombay Stock Exchange Limited).

BSE Sensex:
The BSE SENSEX (also known as the BSE 30) is a value-weighted index
composed of 30 scrips, with the base April 1979 = 100. The set of companies
which make up the index has been changed only a few times in the last 20 years.
These companies account for around one-fifth of the market capitalization of the
BSE.
SENSEX, first compiled in 1986 was calculated on a "Market CapitalizationWeighted" methodology of 30 component stocks representing a sample of large,
well-established and financially sound companies. The base year of SENSEX is
1978-79. The index is widely reported in both domestic and international markets
through print as well as electronic media. SENSEX is not only scientifically
designed but also based on globally accepted construction and review
methodology. From September 2003, the SENSEX is calculated on a free-float
market capitalization methodology. The "free-float Market CapitalizationWeighted" methodology is a widely followed index construction methodology on
which majority of global equity benchmarks are based.
The growth of equity markets in India has been phenomenal in the decade gone
by. Right from early nineties the stock market witnessed heightened activity in
terms of various bull and bear runs. More recently, the bourses in India witnessed
a similar frenzy in the 'TMT' sectors. The SENSEX captured all these happenings
in the most judicial manner. One can identify the booms and bust of the Indian
equity market through SENSEX.

The values of all BSE indices are updated every 15 seconds during the market
hours and displayed through the BOLT system, BSE website and news wire
agencies.
SENSEX calculation:
SENSEX is calculated using a "Market Capitalization-Weighted" methodology.
As per this methodology, the level of index at any point of time reflects the total
market value of 30 component stocks relative to a base period. (The market
capitalization of a company is determined by multiplying the price of its stock by
the number of shares issued by the company). An index of a set of combined
variables (such as price and number of shares) is commonly referred as a
'Composite Index' by statisticians. A single indexed number is used to represent
the results of this calculation in order to make the value easier to work with and
track over time. It is much easier to graph a chart based on indexed values than
one based on actual values.
The base period of SENSEX is 1978-79. The actual total market value of
the stocks in the Index during the base period has been set equal to an indexed
value of 100. This is often indicated by the notation 1978-79=100. The formula
used to calculate the Index is fairly straightforward. However, the calculation of
the adjustments to the Index (commonly called Index maintenance) is more
complex.
The calculation of SENSEX involves dividing the total market capitalization of
30 companies in the Index by a number called the Index Divisor. The Divisor is

the only link to the original base period value of the SENSEX. It keeps the Index
comparable over time and is the adjustment point for all Index maintenance
adjustments. During market hours, prices of the index scrips, at which latest
trades are executed, are used by the trading system to calculate SENSEX every 15
seconds and disseminated in real time.During market hours, prices of the index
scrips, at which trades are executed, are automatically used by the trading
computer to calculate the SENSEX every 15 seconds and continuously updated
on all trading workstations connected to the BSE trading computer in real time.
BSE - other Indices:
Apart from BSE SENSEX, which is the most popular stock index in India, BSE
uses other stock indices as well:
BSE 500

BSE PSU

BSE MIDCAP

BSE SMLCAP

BSE BANKEX

THORETICAL FRAME WORK

EQUITY MARKET
In financial markets, stock is the capital raised by a corporation through the
issuance and distribution of shares. A person or organization which holds shares
of stocks is called a shareholder. The aggregate value of a corporation's issued
shares is its market capitalization. When one buys a share of a company he
becomes a shareholder in that company. Shares are also known as Equities.
Equities have the potential to increase in value over time. It also provides the
portfolio with the growth necessary to reach the long-term investment goals.
Research studies have proved that the equities have outperformed than most other

forms of investments in the long term. Equities are considered the most
challenging and the rewarding, when compared to other investment options.
Research studies have proved that investments in some shares with a longer
tenure of investment have yielded far superior returns than any other investment.
However, this does not mean all equity investments would guarantee similar high
returns. Equities are high-risk investments. One needs to study them carefully
before investing. Since 1990 till date, Indian stock market has returned about 17%
to investors on an average in terms of increase in share prices or capital
appreciation annually. Besides that on average stocks have paid 1.5 % dividend
annually. Dividend is a percentage of the face value of a share that a company
returns to its shareholders from its annual profits. Compared to most other forms
of investments, investing in equity shares offers the highest rate of return, if
invested over a longer duration. The first company to issue shares of stock was the
Dutch East India Company, in
1602. The innovation of joint ownership made a great deal of Europe's economic
growth
possible following the Middle Ages. The technique of pooling capital to finance
the
building of ships, for example, made the Netherlands a maritime superpower.
Before
adoption of the joint-stock corporation, an expensive venture such as the building
of a

merchant ship could only be undertaken by governments or by very wealthy

individuals
or families. Equity markets, the world over, grew at a great speed in the decade of
the nineties. After the bear markets of the late eighties, the world markets saw one
of the largest ever bull
markets of more than ten years. The opening up of Indian economy in the 1990's
led to a

series of financial sector reforms, prominent being the capital market reforms.
These reforms have led to the development of the Indian equity markets to t
standards of the major global equity markets. All this started with the abolition of
Controller of Capital Issues and subsequent free pricing of shares. The
introduction of dematerialization of shares, leading to faster and cheaper
transactions and introduction of derivative products and compulsory rolling
settlement
has followed subsequently. Despite a series of stock market scams and crises
beginning from 1992 Harshad Mehta's scam to the Ketan Parekh's 2001 scam, the
Indian equity markets have transformed themselves from a broker dominated
market to a mass market. The introduction of online trading has given a muchneeded impetus to the Indian equity markets. However, over the years, reforms in
the equity markets have brought the country on par with many developed markets
on several counts. Today, India boasts of a variety of products, including stock
futures, an instrument launched only by select markets. The introduction of rolling
settlement is the latest step in the direction of overhauling the stock market. The
equity market of the country will most likely be comparable with the world's most
advanced secondary markets with regard to international best practices. The
market moved to compulsory rolling settlement and now
all settlements are executed on T+2 basis and market is gearing up for moving to
T+1
settlement in 2004 while the Straight Through Processing (STP) is in place from
December 2002.

The importance of equity market is increasing. Rightly, realizing the advantages

of
resource allocation through market, Government of India and Reserve Bank of
India have
been pushing reforms in equity markets. Series of steps are being taken to remove

hurdles, increase market efficiency and to make it attractive for the retail investors
to take
part in the equity market. It may not be an exaggeration to say that the Indian
markets are
resourceful to put themselves on par with the markets of the developed countries.
The
Indian markets have assimilated in a relatively lesser time, many a developments
that
took long time in the developed markets.

DEVELOPMENTS IN EQUITY MARKET

The Government of India has been trying to improve market efficiency, enhance
transparency and bring the Indian Equity Market up to international standards.
Many reform measures have been initiated in the 90s. The principal ones are the
formation of Securities Exchange Board of India (SEBI), repeal of the Capital
Issues (Control) Act, 1947, introduction of screen-based trading, shortening of
trading cycle, demutualization of stock exchanges, establishment of depositories
disappearance of physical share certificates and better risk management systems
in stock exchanges. The formation of SEBI was the first attempt towards
integrated regulation of the securities market. SEBI regulates all market
intermediaries and has the powers to impose monetary penalties for misconduct of
any intermediary. One of the major stumbling blocks in fair pricing of capital
issues has been the Capital Issues (Control) Act, 1947. The issuers were denied
the opportunity to economically raise money from the capital market. This is now
a matter of the past thanks to the repeal of the Act itself. SEBI has also issued
Disclosure and Investor Protection (DIP) guidelines to ensure fair prices

the investors, though however, many issuers in the 90s could unfairly price their
capital issues at the cost of the poor common investors.
The introduction of Screen Based Trading Systems (SBTS) by NSE is a major
development in the capital market. This made the markets more efficient. The
geographical barriers to trade were dismantled resulting in increased trading
volumes. This was possible due to the great advancements in the area of
information technology. SBTS electronically matches orders cutting down time,
cost and errors, and minimizing the chances of fraud. Very long settlement cycle
was another major hindrance in effecting deliveries in the equity market. Often
the securities were delivered after 30 days or more due to weekly/fortnightly
settlements and carry forward transactions. Sebi has enforced the discipline to
compulsorily settle trades in T+3 days since April 2002. This is slated to reduce to
T+2 days from April 2003. All scrips are now under rolling settlement since
December 2001.
The Equity Market is incomplete without products to manage risks in portfolio
values. At long last, derivatives trading appeared on Indian exchanges in June
2000. While the product range in derivatives is still limited (futures and options
on stocks and stock indices), it is certainly a major step forward in broadening the
financial markets. NSE was established as a demutualized structure separating the
roles of ownership, management and trading to eliminate any conflict of interest
among the stakeholders to improve market efficiency and to focus on investor
interest. Another notable development in the Indian equity market has been the
introduction of depositories to dematerialize the share certificates. This avoids
physical movement of certificates, bad deliveries and quicker transfer of
ownership of shares. Presently all actively traded shares are held, traded and
settled in demat form. The setting up of National Securities Clearing Corporation
Ltd., (NSCCL) in April 1996 has been a major development in managing
counterparty risks in the equity market. This has helped in increasing trading
volumes

since traders are now more confident about default-free settlements. While most
of the
above measures have helped in reinforcing confidence in the Indian equity market
by
providing more transparent and efficient buying, selling and transfer of shares.
International Scenario:
Global integration, the widening and intensifying of links, between high-income
and developing countries, have accelerated over the years. The correlation of
global
markets over a period of time is presented in (Table 1- 2).
Over the past few years, the financial markets have become increasingly global.
The descriptive statistics of the major markets in terms of daily returns is
presented in
(Table 1-3), which shows that the markets are increasingly getting interlinked.
Cross border capital flows have shifted from public transfers to primarily private
sector flows. Indian market has gained from foreign inflows through investment
of
Foreign Institutional Investors (FIIs) route. During 2006-07, cumulative net
investments
by FIIs amounted to US $ 51,967 million.
Following the implementation of reforms in the securities industry in the past
years, Indian stock markets have stood out in the world ranking. As may be seen
from
(Table 1-4), India posted a turnover ratio of 93.1 %, which was quite comparable
to the
other developed markets. As per Standard and Poor's Fact Book 2007, India
ranked 15th

in terms of market capitalization (18th in 2004 and 17th in 2005) and 18th in
terms of
total value traded in stock exchanges and 21st in terms of turnover ratio as of
December
2006.
A comparative study of concentration of market indices and index stocks in
different
world markets is presented in the (Table 1-5). It is seen that the index stocks share
of total
market capitalization in India is 81.6% whereas US index accounted for 89.5%.
The ten
largest index stocks share of total market capitalization is 32.2% in India and
13.4% in
case of US.
The stock markets worldwide have grown in size as well as depth over the years.
As can
be observed from (Table 1-6), the turnover of all markets taken together have
grown from
US $ 39.61 trillion in 2004 to US $ 67.91 trillion in 2006. It is significant to note
that US
alone accounted for about 48.99 % of worldwide turnover in 2006. Despite having
a large
number of companies listed on its exchanges, India accounted for a meager 0.94%
in total
world turnover in 2006. The market capitalization of all listed companies taken
together
on all markets stood at US $ 54.19 trillion in 2006 (US $ 43.68 trillion in 2005).
The
share of US in worldwide market capitalization decreased from 38.85 % as at end2004

to 35.84 % as at end 2006, while Indian listed companies accounted for 1.51% of
total
market capitalization in 2006.
According to the 'World Development Indicators 2007, World Bank' there has
been an
increase in market capitalization as percentage of Gross Domestic Product (GDP)
in
some of the major country groups. The increase, however, has not been uniform
across
countries. The market capitalization as a percentage of GDP was the highest at
112.9%
for the high income countries as at end 2005 and lowest for middle income
countries at
49.5%. Market capitalization as percentage of GDP in India stood at 68.6 % as at
end
2005. The turnover ratio, which is a measure of liquidity, was 122.2 % for highincome
countries and 96.6 % for low-income countries. The total number of listed
companies
stood at 28,733 for high-income countries, 11,141 for middle-income countries
and 6,177
for low-income countries as at end 2006.

EQUITY AS AN INVESTMENT
Equity is:
1. Stock or any other security representing an ownership interest.
2. On the balance sheet, the amount of the funds contributed by the owners (the

stockholders) plus the retained earnings (or losses), also referred to as

"shareholder's
equity".
3. In the context of margin trading, the value of securities in a margin account
minus
what has been borrowed from the brokerage.
Equity is a term whose meaning depends very much on the context. In general,
one can think of equity as ownership in any asset after all debts associated with
that asset are paid off. For example, a car or house with no outstanding debt is
considered the owner's equity since he or she can readily sell the items for cash.
Stocks are equity Because they represent ownership of a company, whereas bonds
are classified as debt because they represent an obligation to pay and not
ownership of assets. The ability of equities to deliver over longer time frames and
even outperform other investment avenues like gold, property and bonds is an
often chronicled fact. However, over shorter time frames, equities also hold the
potential to be a very risky asset class and expose the portfolio to high levels of
volatility. This is the primary reason why any fund
manager worth his salt always recommends a sufficiently long (at least 3 years)
time frame for an equity-oriented investment. Similarly financial planners
advocate pruning of the equity holdings with advancement in the investors age,
when the investor is typically closer to retirement (shorter investment horizon)
and has a lower risk appetite as well.

INVESTING PRINCIPLES
1. Invest for Real Returns
2. Keep an Open Mind
3. Never Follow the Crowd
4. Everything Changes
5. Avoid the Popular
6. Learn from your Mistakes

7. Buy during Times of Pessimism

8. Hunt for Value and Bargains
9. Search Worldwide
10. No-one Knows Everything
Equity Markets in India An Overview
If you buy the same securities as other people, you will have the same results as
other people. It is impossible to produce a superior performance unless you do
something different from the majority. To buy when others are despondently
selling and to sell when others are greedily buying requires the greatest fortitude
and pays the greatest reward. Bear markets have always been temporary. And so
have bull markets. Share prices usually turn upward from one to twelve months
before the bottom of the business cycle and vice versa. If a particular industry or
type of security becomes popular with investors, that popularity will always prove
temporary and, when lost, may not return for many years.
The investor should bear in mind that while he makes investment decision, he
should have idea of the companys break-even point and companys position in
the stock exchange. For this EQUITY RESEARCH is done. Equity Research does
the research of companys income and growth. In the process, it uses the various
sources of financial information available in the country and accordingly advises
in which company an investor should invest.

FUNDAMENTAL ANALYSIS
The investor while buying stock has the primary purpose of gain. If he invests for
a short period of time it is speculative but when he holds it for a fairly long period
of time the anticipation is that he would receive some return on his investment.
Fundamental analysis is a method of finding out the future price of a stock, which

an investor wishes to buy. The method for forecasting the future behavior of
investments and the rate of return on them is clearly through an analyze of the
broad economic forces in which they operate. The kind of industry to which they
belong and the analysis of the company's internal working through statements like
income statement, balance sheet and statement of changes of income.

ECONOMIC ANALYSIS
Investors are concerned with those forces in the economy, which affect the
performance of organizations in which they wish to participate, through purchase
of stock. A study of the economic forces would give an idea about future
corporate earnings and the payment of dividends and interest to investors. Some
of the broad forces within which the factors of investment operate are:
1. POPULATION: Population gives an idea of the kind of labor force in a country. In some countries
the population growth has slowed down whereas in India and some other third
world countries there has been a population explosion. Population explosion will
give demand for more industries like hotels, residences, service industries like
health, consumer demand like refrigerators and cars. Likewise, investors should
prefer to invest in industries, which have a large amount of labor force because in
the future such industries will bring better rates of return.

2. RESEARCH AND TECHNOLOGICAL DEVELOPMENTS: The economic forces relating to investments would be depending on the amount
of resources spent by the government on the particular technological development
affecting the future. Broadly the investor should invest in those industries which
are getting a large amount of share in the funds of the development of the country.
For example, in India in the present context automobile industries and spaces
technology are receiving a greater attention. These may be areas, which the
investor may consider for investments.
3. CAPITAL FORMATION: -

Another consideration of the investor should be the kind of investment that a

company makes in capital goods and the capital it invests in modernization and
replacement of assets. A particular industry or a particular company which an
investor would like to invest can also be viewed at with the help of the economic
indicators such as the place, value and property position of the industry, group to
which it 110ngs and the year-to-year returns through corporate profits.
4. NATURAL RESOURCES AND RAW MATERIALS: The natural resources are to a large extent responsible for a country's economic
development and overall improvement in the condition of corporate growth. In
India, technological discoveries recycling of materials, nuclear and solar energy
and new synthetics should give the investor an opportunity to invest in untapped
or recently tapped resources which would also produce higher investment
opportunity.

SECTOR ANALYSIS
The industry has been defined as homogeneous groups of people doing a similar
kind of activity or similar work. In India, the broad classification of industry is
made according to stock exchange list, which is published. This gives a distinct
classification to industry to industry in different forms such as:
(A) Engineering,
(B) Banking and Insurance,
(C) Textiles,
(D) Cement,
(E) Steel Mills and Alloys,
(F) Chemicals and Pharmaceuticals,
(G) Retail,
(H) Sugar,
(I) Information Technology,
(J) Automobiles and Ancillary,
(K) Telecommunications,
(L) FMCG,

(M)Miscellaneous.
Industry should also be evaluated or analyzed through its life cycle. Industry life
cycle may also be studied through the industrial life cycle state. There are
generally three stages of an industry. These stages are pioneering stage, expansion
stage and stagnation stage.
1. THE PIONEERING STAGE: The industrial life cycle has a pioneering stage when the new inventions and
technological developments take place. During this time the investor will notice
great increase in the activity of the firm. Production will rise and in relation to
production, there will be a great demand for the product. At this stage, the profits
are also very high as the technology is new. Taking a look at the profit many new
firms enter into the same field and ill; market becomes competitive. The market
competitive pressures keep on increasing with the en" of new-firms and the prices
keep on declining and then ultimately profits fall. At this stage all firms compete
with each other and only a few efficient firms are left to run the business and most
of the other firms are wiped out in the pioneering stage itself.
2. THE EXPANSION STAGE: The efficient firms, which have been in the market now, find that it is time to
stabilize them. Although competition is there, the, number of firms have gone
down during ill pioneering stage itself and there are a large number of firms left to
run the business in the industry. This is the time when each one has to show
competitive strength and superiority. The investor will find that this is the best
time to make an investment. At the pioneering stage it was difficult to find out
which of the firm to invest in, but having waited for the stability period there has
been a dynamic selection proces and a few of the large number of firms are left in
the industry. This is the period of security and safety and this is also called period
of maturity for the firm. This stage lasts from five years to fifty years of a firm
depending on the potential and productivity and policy to meet the change of

competition and rapid change in buyer and customer habit. After this stage
develops the stage of stagnation or obsolescence.
3. THE STAGNATION STAGE: During the stagnation stage the investor will find that although there is increase in
sales of an organization, this is not in relation to the profits earned by the
company. Profits are also there but the growth in the firm is lower than it was in
the expansion stage. The industry finds that it is at a loss of power and cannot
expand. During most of the firms who have realized the competitive nature of the
industry and the arrival of the stagnation stage, begin to change their course of
action and start on a new venture should make a continuous evaluation of their
investments. In firms in which they have received profits for large number of
years and have reached stagnation they can plan to their investments and find
better avenues in those firms where the expansion stage has set in.

COMPANY ANALYSIS
Company analysis is a study of the variables that influence the future of a firm
both qualitatively and quantitatively. It is a method of assessing the competitive
position of a firm earning and profitability, the efficiency with which it operates
its financial position and its ful1l with respect to the earning of its shareholders.
The fundamental nature of this analysis is that each share of a company has an
intrinsic value, which is dependent on the company's financial performance,
quality of management and record of its earnings and dividend. They believe that
the market price of share in a period of time will move towards its intrinsic value.
If the market price of a share is lower than the intrinsic value, as evaluated by the
fundamental analysis, then the share is supposed to be undervalued and it should
be purchased but if the current market price shows that it is more than intrinsic
value then according to the theory the share should be sold. This basic approach is
analyzed through the financial statements of an organization. The basic financial
statements, which are required as tools of the fundamental analyst, are the income
statement, the balance sheet, and the statement of
changes in financial position. These statements are useful for investors, creditors
as well as internal management of a firm and on the basis these statements the

future course of action may be taken by the investors of the firm. While
evaluating a company, its statement must be carefully judged to find out that they
are:
(a) Correct,
(b) Complete,
(c) Consistent and
(d) Comparable

TECHNICAL ANALYSIS
Technical analysis is simply the study of prices as reflected on price charts.
Technical analysis assumes that current prices should represent all known
information about the markets. Prices not only reflect intrinsic facts, they also
represent human emotion and the pervasive mass psychology and mood of the
moment. Prices are, in the end, a function of supply and demand. However, on a
moment to moment basis, human emotionsfear, greed, panic, hysteria, elation,
etc. also dramatically effect prices. Markets may move based upon peoples
expectations, not necessarily facts. A market "technician" attempts to disregard
the emotional component of trading by making his decisions based upon chart
formations, assuming that prices reflect both facts and emotion. Analysts use their
technical research to decide whether the current market is a
BULL MARKET or a BEAR MARKET.

1. STOCK CHARTS
A stock chart is a simple two-axis (X-Y) plotted graph of price and time. Each
individual equity, market and index listed on a public exchange has a chart that
illustrates this movement of price over time. Individual data plots for charts can
be made using the CLOSING price for each day. The plots are connected together
in a single line, creating the graph. Also, a combination of the

OPENING, CLOSING, HIGH and/or LOW prices for that market session can be
used for
the data plots. This second type of data is called a PRICE BAR. Individual price
bars are
then overlaid onto the graph, creating a dense visual display of stock movement.
Stock charts can be drawn in two different ways. An ARITHMETIC chart has
equal vertical distances between each unit of price. A LOGARITHMIC chart is a
percentage growth chart.

2. TRENDS
The stock chart is used to identify the current trend. A trend reflects the average
rate of change in a stock's price over time. Trends exist in all time frames and all
markets. Trends can be classified in three ways: UP, DOWN or RANGEBOUND.
In an uptrend, a stock Equity Markets In India An Overview 21 rallies often
with intermediate periods of consolidation or movement against the trend. In
doing so, it draws a series of higher highs and higher lows on the stock chart. In
an
Uptrend; there will be a POSITIVE rate of price change over time. In a
downtrend, a stock declines often with intermediate periods of consolidation or
movement against the trend. In doing so, it draws a series of lower highs and
lower lows on the stock chart. In a downtrend,
there will be a NEGATIVE rate of price change over time. Range bound price
swings back and forth for long periods between easily seen upper and lower
limits. There is no apparent direction to the price movement on the stock chart and
there will be LITTLE or NO rate of price change. Trends tend to persist over time.
A stock in an uptrend will continue to rise until some change in value or a
condition occurs. Declining stocks will continue to fall until some change in value
or conditions occur. Chart readers try to locate TOPS and BOTTOMS, which are
those points where a rally or a decline ends. Taking a position near a top or a
bottom can be very profitable. Trends can be measured using TRENDLINES.
Very often a straight line can be drawn UNDER three or more pullbacks from
rallies or OVER pullbacks from declines. When price bars then return to that

trend line, they tend to find SUPPORT or RESISTANCE and bounce off the line
in the opposite direction.

3. VOLUME
Volume measures the participation of the crowd. Stock charts display volume
through individual HISTOGRAMS below the price pane. Often these will show
green bars for up days and red
Equity Markets In India An Overview 22 bars for down days. Investors and
traders can measure buying and selling interest by watching how many up or
down days in a row occur and how their volume compares with days in which
price moves in the opposite direction. Stocks that are bought with greater interest
than sold are said to be under ACCUMULATION. Stocks that are sold with great
interest than bought are said to be under DISTRIBUTION. Accumulation and
distribution often LEAD price movement. In other words, stocks under
accumulation often will rise some time after the buying begins. Alternatively,
stocks under distribution will often fall some time after selling begins. It takes
volume for a stock to rise but it can fall of its own weight. Rallies require the
enthusiastic participation of the crowd. When a rally runs out of new participants,
a stock can easily fall. Investors and traders use indicators such as ON
BALANCE
VOLUME to see whether participation is lagging (behind) or leading (ahead) the
price action. Stocks trade daily with an average volume that determines their
LIQUIDITY. Liquid stocks are very easy for traders to buy and sell. Liquid stocks
require very high SPREADS (transaction costs) to buy or sell and often cannot be
eliminated quickly from a portfolio. Stock chart analysis does not work well on
illiquid stocks.

4. PATTERNS AND INDICATORS

How can one organize the endless stream of stock chart data into a logical format?
Charts allow

investors and traders to look at past and present price action in order to make
reasonable predictions and wise choices. It is a highly visual medium. This one
fact separates it from the colder world of value-based analysis. The stock chart
Equity Markets In India An Overview 23
activates both left-brain and right-brain functions of logic and creativity. So it's no
surprise that over the last century two forms of analysis have developed that focus
along these lines of critical examination. The oldest form of interpreting charts is
PATTERN ANALYSIS. This method gained popularity through both the writings
of Charles Dow and Technical Analysis of Stock Trends, a classic book written on
the subject just after World War II. The newer form of interpretation is
INDICATOR ANALYSIS, a math-oriented examination in which the basic
elements of price and volume are run through a series of calculations in order to
predict where price will go next. Pattern analysis gains its power from the
tendency of charts to repeat the same bar formations over and over again. These
patterns have been categorized over the years as
having a bullish or bearish bias. Some well-known ones include HEAD and
SHOULDERS, TRIANGLES, RECTANGLES, DOUBLE TOPS, DOUBLE
BOTTOMS and FLAGS. Also, chart landscape features such as GAPS and
TRENDLINES are said to have great significance on the future course of price
action. Indicator analysis uses math calculations to measure the relationship of
current price to past price action. Almost all indicators can be categorized as
TREND-FOLLOWING or OSCILLATORS. Popular trend-following indicators
include MOVING AVERAGES, ON BALANCE VOLUME and MACD.
Common oscillators include STOCHASTICS, RSI and RATE OF CHANGE.
Trend-following indicators react much more slowly than oscillators. They look
deeply into the rear view mirror to locate the future. Oscillators react very quickly
to short-term changes in price, flipping back and forth between OVERBOUGHT
and OVERSOLD levels. Equity Markets In India An Overview 24
Both patterns and indicators measure market psychology. The core of investors
and traders that make up the market each day tend to act with a herd mentality as
price rises and falls. This "crowd" tends to develop known characteristics that

repeat themselves over and over again. Chart interpretation using these two
important analysis tools uncovers growing stress within the crowd that should
eventually translate into price change.

REASONS FOR TRANSITING IN SECONDARY MARKET

There are two main reasons why individuals transact in the secondary market:
1. INFORMATION MOTIVATED REASONS: Information motivated investors believe that they have superior information about
a particular security than other market participants. This information leads them to
believe that the security is not being correctly priced by the market. If the
information is good, this suggests that the security is currently under-priced, and
investors with access to such information will want to buy the security. On the
other hand, if the information is bad, the security will be currently overpriced and
such investors will want to sell their holdings of the security.
2. LIQUIDITY MOTIVATED REASONS: Liquidity motivated investors, on the other hand, transact in the secondary market
because they are currently in a position of either excess or insufficient liquidity.
Investors with surplus cash holdings (e.g., as a result of an inheritance) will buy
securities, where as investors with insufficient cash (e.g., to purchase a Car) will
sell securities.

FUNCTION OF THE SECONDARY MARKET

1. To facilitate liquidity and marketability of the outstanding equity and debt
instruments.
2. To contribute to economic growth through allocation of funds to the most
efficient Channel through the process of disinvestments to reinvestment.
3. To provide instant valuation of securities caused by changes in the internal
environment (that is, company-wide and industry wide factors). Such valuation
facilitates the measurement of the cost of capital and the rate of return of the
economic entities at the micro level.
4. To ensure a measure of safety and fair dealing to protect investors interest.

To induce companies to improve performance since the market price at the stock
exchanges reflects the performance and this market price is readily available to
investors.

INTROUCTION
EQUITY
Meaning:
Equity is a term whose meaning depends very much on the context. In
general you can think of equity as ownership in any asset after all debts associated
with that are paid off.
Stocks are equity because they represent ownership of a company, whereas bonds
are classified as debt because they represent on obligations to pay and not
ownership of assets.
In a brokerage account the market value of security amount borrowed equity is
particularly important for margin accounts for which minimum standards must
met.
SHARE
Meaning;
Any business has a lot of assets: The machinery, buildings, furniture,
stock-in-trade, cash, etc. It will also have liabilities. This is what the company
owes other people.
Banks loans, money owed to people from whom things have been bought on
credit, are examples of liabilities.
Take away the liabilities from the total assets, and you are left with the capital.
Capital = Assets - Liabilities.

Equity shares
By investing in shares, investors basically buy the ownership right to the
company. When the company makes profits, shareholders receive their share of
the profits in the form of dividends. In addition, when company performs well and
the future expectation from the company is very high, the price of the companys
shares goes up in the market. This allows shareholders to sell shares at a profit,
leading to capital gains.
Investors can invest in shares either through primary market offerings or in the
secondary market.
The primary market has shown abnormal returns to investors who subscribed for
the public issue and were allotted shares.
CAPTIAL MARKET
INTRODUCTION:
Companies raise long term funds from the capital markets. Finance
managers should, therefore, know the ways in which securities are traded and
pried in the capital markets. They should also know the procedures to be followed
in issuing securities. Securities will be fairly priced in the capital markets if they
are efficient.
CAPITAL MARKET EFFICENCY :
Capital markets facilitate the buying and selling of securities such as
shares and bonds. They perform two valuable functions: liquidity and pricing
securities.
Liquidity means the convenience and speed of transforming assets into
cash, or transferring assets from one person to another without any loss of value.
Cash in the most liquid asset as it can be readily converted into any other asset, or
transferred to another person without any decline in value.
Capital markets make securities liquid. They facilitate the buying and selling of
securities by a large number of investors continuously and instantaneously
without incurring significant cost. They help to reduce, if not eliminate,

transaction costs. For ensuring the liquidity, capital markets do require certain
investors who are always ready to buy or sell securities. These market makers
enhance liquidity and reduce transaction cost.
In the capital markets hundred of investors make several deals a day.
These deals are made known to all in the capital markets. Thus, a large number of
buyers and sellers interact in the capital markets. The demand and supply forces
help in determining the prices. Since all information is publicly available and
since investor is large enough to influence the security prices, the capital markets
provide a measure of fair price of securities.
If capital markets are efficient than the current share price of a company is
fair. There is no question of the share price being under or over-valued. The
phenomenon of under or over-valuation of share is possible only in an inefficient
capital market.

STRUCTURE OF THE CAPITAL MARKET

SPECIALFEATURESOFTHEINDIANCAPITALMARKET
The capital market in India has exhibited some special features in the recent
years which are noting here.
1. Greater reliance on debt instruments as against equity and in particular,
borrowing from financial institutions.
2. Issue of debentures, particularly convertible debentures with automatic or
compulsory conversion into equity without the normal option given to
investors.
3. Floatation of mega issues for the purpose of take over amalgamation, etc.
and avoidance of borrowing from financial institutions for the fear of their
discipline and conversion clause by the bigger companies, which has now
become optional.
4. Avoidance of underwriting by some companies to reduce the costs.
5. Fast growth of mutual funds and subsidiaries of banks for financial
services leading to larger mobilization of saving from the capital market.
There are a number of other features of the capital market which are relatively
unhealthier and are brought out in the authors study on ownership and
Distribution pattern of shareholdings of companies. Published in the stock
exchanges review of March 1930. The share of small shareholders up to Rs.10,
000 has declined proportionately as compared to five years ago, while the relative
share of large shareholders increased. His pattern of allotment is, therefore
regressive in nature.

The results of the study also showed that the share of the corporate units increased
while that of individuals declined which is again unhealthy due to the fast the real
net savings emanate in India only from individual and households and not from
companies.
SECURITIES MARKET
MEANING OF SECURITIES
The definition of Securities as per the Securities Contracts Regulation
Act (SCRA), 1956, includes instruments such as shares, bonds, scrips, stocks or
other marketable securities of similar nature in or of any incorporate company or
body corporate, government securities, derivatives of securities, units of collective
investment scheme, interest and rights in securities, security receipt or any other
instruments so declared by the Central Government.
FUNCTION OF SECURITIES MARKET
Securities Markets is a place where buyers and sellers of securities can
enter into transactions to purchase and sell shares, bonds, debentures etc. Further,
it performs an important role of enabling corporate, entrepreneurs to raise
resources for their companies and business ventures through public issues.
Savings are linked to investments by a variety of intermediaries, through a range
of financial products, called Securities.
WHICH ARE THE SECURITIES ONE CAN INVEST IN?

Shares

Government Securities

Derivative products

Commodities.

LITERATURE REVIEW
Advertising has always hung in a delicate balance of acceptance and criticism. In
an article Doing Well By Doing Good: Case Study of Fair & Lovely Whitening
Cream (karnani 2007), the author has presented two views about the famous
Fair & Lovely cream in India, where the opponents are of the view that the ads
of the product are doing good for the society, as it is empowering women, making
them make the right choices, giving them self confidence, and helping them shape
their own lives. This is what was depicted in their ads, where usually a dark
complexion woman is shown to have made improvement in her complexion by
using the product. But, the same strategy that they used as an appeal backfired,
when the opponents such as the Department of Dermatology India, Department of
Pharmaceutical Technology India, and All India Democratic Womens Congress
(AIDWC) raised their voices about the controversial ads and the product as a
whole. The institutes related to health said that since the product is not included in
the medicine category, its effectiveness cannot be determined, and hence, it
cannot be charged for the contents. The societal groups claim that the ads are
being racist against those of dark complexion and by influencing children of
young ages, 12-14, that fall outside their target audience, i.e., 18-35, which made
them conclude that the advertising company doesnt care about the society as a
whole; rather they are only interested in hitting the big buck.
In their article (Franses & Vriens 2004, p.6) Advertising effects on awareness,
consideration and brand choice using tracking data say that advertising has
three types of effects: i) cognitive effect (brand awareness) that makes the
audience aware of the existence or introduction of a brand, ii) affective effect
(consideration or liking), that make the advertised product stand superior to the

product of the competitors, and iii) behavioral effect (brand choice) that finally
make the audience take a step and buy the advertised product. Advertising is
intended to address any or all the three or some combination of the three effects.
The contents of advertising have always been a controversial issue. From time-totime, history has witnessed various critical writings, agitated rallies, news items,
law suits, or strict bans against controversial contents in advertising. In Pakistan,
although the rules have been laid, yet the contents are not regulated accordingly.
In an article about the contents of advertising, the writer says that the firms
strictly want to restrict the information they give in the advertisements, either it be
about the price, the contents, or both. Ironically, if the firm is forced to disclose
critical information, the product rarely improves performance. Conversely, even if
the information is restricted, the performance of the product is hurt. (Anderson &
Renault 2004)
(Clark, R. C., Ulrich Doraszelski, & Michaela Draganska, 2007, p.4) writes in his
article, Information or Persuasion? An Empirical Investigation of the Effect of
Advertising on Brand Awareness and Perceived Quality using Panel Data that the
advertising has two purposes; informative and persuasive. The purpose of
persuasive advertisingis to shape consumers' attitudes towards new brands and
alter their tastes for established brands. This type of advertising encourages
buyer inertia and brand loyalty by building up a stock of goodwill towards a
brand. It allows brand differentiation, thereby creating an image in the minds of
the audiences, and hence reduces the elasticity of demand. This is done by putting
entry barriers for the new products. It is also said that the more advertised
products are considered to be more prestigious and preferred over those brands
that are not advertised much. The idea is that advertising can in itself create
prestige or image by associating the brand with someone or something (Clark,
R. C., Ulrich Doraszelski, & Michaela Draganska, 2007, p.4).

A very significant finding in this research is that advertising budgets dont have
any significant impact in the perceived quality of the product being advertised,
however, it helps in creating awareness. He concluded that advertising is not
likely to be persuasive in nature, at least not when it comes to altering consumers
quality perceptions (Clark, R. C., Ulrich Doraszelski, & Michaela Draganska,
2007, p.8)and based on this we conclude that providing basic information is
the dominant role of advertising (Clark, R. C., Ulrich Doraszelski, & Michaela
Draganska, 2007, p.26)

60
1) How do you know about L & T finance ltd
TV- Advertisement
SMS Advertisement
News Paper Advertisement
Online-Advertisement

2) WHAT IS THE OPNION ON L & T finance ltd ADVERTISMENT

Responses
motivating
Colorfully
Music is very good
Presentation is good
Attractive

3) Based on advertisements made by company, would you like to go for product for
you or your family in future?
Yes
No

4. Perception of L & T finance ltd advertisement?

Responses
Great product
The right fit
A new trend wave
Informative
Another supplement

5: How is the News paper/magazine advertisement of L & T finance ltd?

61

Responses
Excellent
Very good
Informative
Colorful & interesting
Captures the changes

6: L & T finance ltd need to more concentrate on its advertisement from

its competitor?

Yes
No

7: Which company is the competitor in L & T finance ltd advertising?

Broking Companies
India Infoline
Motilal Oswal
Share Khan
India Bulls
L & T finance
8: Recently which product seen in L & T finance ltd advertising
Product name

India Infoline
Motilal Oswal
Share Khan
L & T finance

62

9: Like to Refer L & T finance to your friends and relations

Responses
Yes
No

10: Satisfied with L & T finance products?

Responses
Yes
No

11: Would like to continue with L & T finance

Responses
Yes
No

12: How is the presentation of L & T finance Advertising logo?

Response
Attractive
Not attractive
13: How memorable did you find the L & T finance advertisement?
memorable

Un-decided
Not memorable

63

14: Did you find that the advertisement is creative?

Creative
Not creative
Creative
Not creative
Total

15: How would you rate this L & T finance advertisement?

Rate
Excellent
Fair
Poor

64

CHAPTER-4 DATA ANALYSIS AND INTERPRETATION:

4.1 PERCENTAGE ANALYSIS:
TABLE NO. 4.1:
How do you know L & T finance ltd
Responses

Respondents

percentage

TV- Advertisement

12

40

SMS Advertisement

12

40

News Paper Advertisement

16.5

Online-Advertisement

3.5

TOTAL

30

100

TV

Radio

News Paper

On friend suggestion

INFERENCES:
From the above table it is found that 40% of customer know about L & T finance
ltd remains through TV advertisement from the new paper advertisement of the L & T
finance ltd whereas another 40% reminds from the SMS advertisement, 16.5% people
know from news paper advertisement and remaining of 3.5% of remains from the friend
suggestion

65

TABLE NO:4.2 :
WHAT IS THE OPNION ON L & T finance ltd ADVERTISMENT

Responses
motivating
Colorfully
Music is very good
Presentation is good
Attractive
TOTAL

Respondents
6
4
2
11
7
30

Percentage
10
23
8
40
19
100

motivating A
Colorfully B
Music is very good- C
Presentation is good-D
Attractive -E

INFERENCES:
From the above table it is found that 36.5% people is like of advertisers of L & T
finance ltd Presentation is good and also 20% people is telling very motivation L & T
finance advertisement

66

TABLE NO: 4.3:

Based on advertisements made by company, would you like to go for product for
you or your family in future?
Yes

12

43%

No

11

30%

Not Decided

27%

INFERENCES:
From the above table it is found that 43% of advertisers perceive L & T finance ltd as a
new trend wave for Broking industry , 7% of advertisers perceived as just an another
supplement.

TABLE NO: 4.4:

Perception of L & T finance ltd advertisement

67

Responses
Great product
The right fit
A new trend wave
Informative
Another supplement
TOTAL

Respondents
5
15
8
70

Percentage
16.6
50
26.6
6.6
100

INFERENCES:
From the above table it is found that 49% of advertisers perceive L & T finance ltd as a
new trend wave for, 7% of advertisers perceived as just an another supplement.

TABLE NO:4.5 :
How is the News paper/magazine advertisement of L & T finance ltd?

68

Responses
Excellent

Respondents
0

Percentage
0%

Very good

20%

Informative

30%

Colorful & interesting

23.3%

Captures the changes

26.7%

TOTAL

30

100

INFERENCES:
From the above table it is found that maximum of 30% of advertisers opinion
about the look and content of the supplement is as informative. L & T finance ltd
needs to improve the News paper/magazine advertisement quality so that most people
following news papers

TABLE NO: 4.6:

L & T finance ltd need to more concentrate on its advertisement from its

competitor?

69

Responses
Yes

Respondents
8

Percentage
26.6%

No

16

53.4%

20%

30

100

TOTAL

INFERENCES:
I computation world to advertising is very important to improve company sales
and company growth and need to keep observation on competitors advertising ways and
53% people are L & T finance ltd to advertising is good to

TABLE NO: 4.9:

70

Like to Refer L & T finance ltd to your friends and relations

Responses

Respondents

Percentage

Yes

25

83

No

17

TOTAL

30

100

INFERENCES:
From the above table it is found that 83.3% of people are not willing to refer L & T
finance ltd product s to friend relatives

TABLE NO: 4.10:

71

Satisfied with L & T finance ltd products

Responses

Respondents

Percentage

Yes

14

46.6%

No

16

53.3%

TOTAL

30

100

INFERENCES:
From the above table it is found that 53.3% of clients are not satisfied with L & T
finance ltd services

TABLE NO: 4.11: Would like to continue with L & T finance ltd

72

Responses

Respondents

Percentage

Yes

14

46.6%

No

16

53.3%

TOTAL

30

100

INFERENCES:
From the above table it is found that 53.3% of advertisers are not willing to continue
Witch L & T finance ltd

TABLE NO: 4.12:

73

How is the presentation of L & T finance ltd Advertising logo

Response

responds %

Attractive 25

83

Not
attractive

17

30

INFERENCES:
From the above table it is found that 83.3% of customers are attractive about L & T
finance ltd log looking good

TABLE NO: 4.13:

74

How memorable did you find the L & T finance ltd advertisement?
MEMORABLE

50%

15

UNDECIDED

27%

NOTMEMORABLE

23%

100%

30

INFERENCES:
From the above table it is found that 50% of customers are memorable about L & T
finance ltd log looking good

75

TABLE NO: 4.14:

Did you find that the advertisement is creative?

Creative

28

93%

Not creative

7%

Total

30

100%

INFERENCES:
From the above table it is found that 93.3% of customers are creative advertisement
of L & T finance ltd in competitive world creativeness is very important

TABLE NO: 4.15:

How would you rate this L & T finance ltd advertisement?
Rate

Response

76
Excellent

18

67%

Fair

23%

Poor

10%

INFERENCES:
From the above table it is found that 93.3% of customer are using creative
advertisement of L & T finance ltd in competitive world creativeness is very important

CHAPTRER
CONCLUSION
5.1 FINDINGS

5:

FINDINGS

AND

SUGGESTION

AND

77
1. 40% of customer know about L & T finance ltd remains through TV
advertisement from the new paper advertisement of the L & T finance ltd
whereas another 40% reminds from the Mobile SMS advertisement , 16.5%
people know from news paper advertisement and remaining of 3.5% of remains
from the friend suggestion
2. From the above table it is found that 36.5% people is like of advertisers of L & T
finance ltd Presentation is good and also 20% people is telling very motivation
L & T finance advertisement
3. From the above table it is found that 49% of advertisers perceive L & T finance
ltd as a new trend wave for Chennai market, 7% of advertisers perceived as just
an another supplement.
4. From the above table it is found that maximum of 30% of advertisers opinion
about the look and content of the supplement is as informative. L & T finance
ltd need to improve the News paper/magazine advertisement quality so that most
people following news papers
5. I computation world to advertising is very important to improve company sales
and company growth and need to keep observation on competitors advertising
ways and 53% people are L & T finance to advertising is good
6. From the above table it is found that maximum of 40%of people says that Infoline
advertisement is very competitors for L & T finance ltd advertisement of the
supplement need to be improved whereas 40% of advertisers says layout need to
be improved.
7. 53.3% of clients are not not satisfied with L & T finance ltd services
8. it is found that 53.3% of advertisers are not willing to continue Witch L & T
finance ltd
9. 93.3% of customer are creative advertisement of L & T finance ltd in
competitive world creativeness is very important

5.3 LIMITATION OF STUDY

The data for the project was conducted from the opinion of customers in
market. Any bias in the opinion of false will impact on the findings of the
study.

78
The sample size was large as the advertiser markets were to be
interviewed while at work.
Some of the answer given by the respondents may be biases.
Few respondents were reluctant while answering the question due to their
busy schedule.
Time is a constraint because duration of project is one month.

Some of the customers were hesitating to give whole- hearted opinions

due to fear.

5.4 SUGGESTIONS:

79

In this study observed that half and above of the respondents are
mentioned that the improvement have to be made in advertisement of L &
T finance ltd, so the company can take effort to improve the
advertisements.

A customer feels that product quality can be increased in the L & T

finance ltd.

Availability of the product is scarce, so the company can improve its

product advertising

In competitive world L & T finance ltd need to concentrate on online

advertising like Google and yahoo Ad-sance ad-words

5.5 Conclusion:
The informative and interesting analysis of advertising management in L
& T finance ltd, advertise management provides media company executives insight
necessary for increasing product sales, market position and competitive advantage. And
it helps to make more benefits to customers. To give good quality and service
automatically company and customer benefit from that

80
It is concluded that advertisers perception are the basic things, which could helpful to the
company. Some suggestions are given in this project, where the company could look into
the grey areas and try to rectify them, so that customer could be highly satisfied.