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SUMMER TRAINING REPORT ON

ANALYSIS OF WORKING CAPTAL


Undertaken at

SHRIRAM PISTONS & RINGS LTD.

Submitted in partial fulfillment of the requirements


for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION


to

Guru Gobind Singh Indraprastha University, Delhi

Under the Guidance of Submitted by


Prof. Neha Gupta Khushi Chadha
Faculty Guide BBA-V Sem, 1st Shift
Enrollment No.:02980401715

Session: 2015-18

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To Whom It May Concern

I _______________________, Enrolment No. ______________from BBA-V Sem, Shift


________of the Tecnia Institute of Advanced Studies, Delhi hereby declare that the
Summer Training Report & Viva Voce (BBA-311)
entitled_______________________________________________________________________
______________________at ________________________________ is an original work and
the same has not been submitted to any other Institute for the award of any other degree. A
presentation of the Summer Training Report & Viva Voce was made on
_______________________ and the suggestions as approved by the faculty were duly
incorporated.

Date: Signature of the


Student

Certified that the Summer Training Report & Viva Voce submitted in partial fulfillment of
Bachelor of Business Administration (BBA) to be awarded by G.G.S.I.P. University, Delhi
by _________________________, Enrolment No. ________________ has been completed
under my guidance and is Satisfactory.

Date:

Signature of the Guide


Name of the Guide:
Designation:

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ACKNOWLEDGEMENT

I feel immense pleasure and privilege to express my sincere thanks to my project guide Prof.
Neha Gupta for her incessant invaluable and indispensable guidance throughout. At the same
time, I cannot forget the courtesy and timely help provided to me by the company itself and my
mentor.

I also express my sincere depth of gratitude to the Finance Department staff members in
providing me with all the necessary information in carrying out my project. I also extend my
appreciation towards my family who encouraged me and was by my side whenever I needed
them.

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CONTENTS
S No Topic Page No
1 Certificate 1
2 Summer Training Appraisal 2
3 Acknowledgement 3
4 Executive Summary 5
Chapter I: Introduction 8
Chapter II: Review of Literature 25
Chapter III: Research Methodology 30
Chapter IV: Data Reduction, Presentation & Analysis 33
Chapter V: Data Interpretation 45
Chapter VI: Summary & Conclusions 57
5 Bibliography 59
6 Appendices 60
- List of Tables 60
- List of Figures 61

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EXECUTIVE SUMMARY
Financial Analysis of Indiabulls Real Estate Ltd. and comparison with its competitors has been carried out
as the project based on the learnings and experiences of summer internship. The purpose of this project
was to study the financial health of Indiabulls Real Estate Ltd. as a company and thereby examine and
determine its Stability and Growth Opportunities for various stakeholders. The company is in business
for over a decade and is doing very well in its sector. It has come out with very strong projects in past
and is following the same path to a better and growing future. The real estate sector in India has yet to
reach its maturity, thus a better future prospect awaits for any company ready to take on the
opportunities that will be presented to them. Indiabulls Real Estate Ltd. with it’s headquarter in
Gurugram, is one of the major players in the sector with its roots deep in commercial, residential and
SEZs projects. Company recently also ventured into the international market by acquiring a well-
established building in London. The project was divided into three major parts, mainly classified as
analysis of the company before 2016, analysis of company after 2016 and analysis with the competitors
for the current year ending 2017. The reason behind dividing it on the time line of before 2016 and after
2016 was due to change in accounting standards. Further the projects moves towards horizontal
analysis of the company and vertical analysis of the company. Various ratios such as profitability ratios,
liquidity ratios, margins and growth ratios were considered while evaluating the company. The
completion included DLF Ltd, being the market leader, Oberoi Reality Ltd. and Godrej Properties Ltd.,
being the company under similar turnover and market capitalization was taken into consideration. As a
result of the same, it has been found out that the company has been and will be fundamentally strong
with strong financials to support its growth and profitability. It is strongly recommended that any
existing stakeholder to hold to their investments for a long duration and any new investors can add the
company to their portfolio. It is also recommended that the investment to be made for a long duration
to maximize their value gain, as the sector rewards are small but consistent over the time.

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CHAPTER-I

INTRODUCTION
1.1 INTRODUCTION
Understanding What Real Estate means:-
Land can be defined as “a property comprising of land and expanding it alongside its common assets,
for example, yields, minerals or water, that are resolute in nature. Any calling in nature of purchasing,
offering or leasing the above characterized land is named as Business of Real Estate.
Real Estate Sector

The land area is a standout amongst most of the perceived areas around. This field of real estate has
made outstanding progress by getting plainly to be one of the quickest developing business sectors on
the planet. It is effectively drawing in the local financial specialists as well as the remote speculators. The
development of the business is credited predominantly to a substantial populace base, rising wage level
and quick urbanization. In India, the land is the second biggest dominant field after farming and is slated
to develop at a rate of Rs. 30 for every penny the entire forthcoming decade. The land area involves
around five sub-segments –

1. HOUSING/RESIDENTIAL
2. RETAIL
3. HOSPITALITY
4. COMMERCIAL
5. SEZs

The development of this sector is very much supplemented by the development of the professional
workplace and the increasing requirement for office space and also urban and semi-urban lodging. This
business of development positions third amongst the fourteen noteworthy areas as far as immediate,
aberrant and prompted impacts are concerned in each and every area of the economy. Administrative
Authority:- This segment is regulated under the REAL ESTATE (REGULATION AND DEVELOPMENT) ACT,
2016. The body has been built up for control and advancement of the part concerning with land, to
guarantee plot offering, loft of working, by and large offering of land extend in a productive and
straightforward way, to secure the enthusiasm of the buyers in the land segment, to build up a
mediating system for rapid question redress, furthermore to set up the Appellate Tribunal to hear bids
from the choices, headings or request of the Real Estate Regulatory Authority and the settling officer
and for issues associated therewith or accidental thereto.
Indiabulls Group:-
Indiabulls is an Indian gathering with its Headquarters established in Gurugram and Corporate office in
Mumbai respectively. It is nearby to the areas with large dealings in Real Estate, Infrastructure, Housing
Finance and Securities.
It was established by Mr. Sameer Gehlaut (Chairman) in 1999, and works in segment spread crosswise
over lodging money, land and riches administration. The three primary freely recorded organizations of
the gathering are 1. Indiabulls Housing Finance Limited (IBHFL)
2. Indiabulls Real Estate Limited (IBREL)
3. Indiabulls Ventures Limited (IBVL)
All the gathering organizations are listed on the Bombay Stock Exchange and the National Stock
Exchange, with their consolidated market capitalization of around Rs 32,120.80 Cr.
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About INDIABULLS REAL ESTATE.
“The organization was consolidated in the year 2005 concentrating on land improvement predominantly
with their focus on Residential, Commercial and SEZ Projects crosswise over real Indian Metros.
Indiabulls Real Estate is India’s third largest land organization with a gross development value of Rs.
47,725 Cr and Net worth of Rs. 4,861 Cr. At present, there are 14-continuous Projects with add up to
saleable are of 35.5 million sq. ft. [www.indiabulls.com]. The organization has arranged four new tasks
with add up to saleable are of 8.95 million sq. ft. Furthermore the organization has a land bank of 1010
sections of land and has 2,588 sections of land of SEZ chap at Nasik, Maharashtra. To develop its
foothold universally, Indiabulls stretched out to London a few years back, procuring the prime Property,
22 Hanover Square in Central London for Rs. 1,630 Cr.

1.2 OBJECTIVE OF STUDY

Objective of the Study:-


The objective of the study is to analyze the financial statements of the company and comparison of the
performance of the company with its competitors.
Specific Objective of the study:-
1. To Analyze the Financial Statement for the year 2016-17 and comparison with 2015-16
2. Performance comparison with competitors
3. In depth ratio analysis of the books of accounts
Methodology:-
The primary source of data for the study is gathered from the company’s Audited Financial Statements
published by the company and their competitors on their official website, referring to India’s Companies
Act, 2013 and Indian Accounting Standards published by Institute of Chartered Accountants of India
(ICAI). As the project involves analyzing financial books, the research is self-explanatory in nature,
covering all financial parameters and important ratios which are important for the research. As per the
Indian Accounting Standards, aka, IND AS, the companies with net worth of more than Rs. 500 Cr. are
required to prepare their books of accounts as per the new rules which are in accordance with
International Financial Reporting Standards, AKA IFRS. As it can be seen that the company has a net
worth of Rs. 4861 Cr. which is above the prescribed limit the company follows the new reporting
standards. This rule is implacable from financial year ending 2016, so accordingly it should only consider
financial year 2015-16 and financial year 2016-17 for our study as it is not possible to compare financial
statements for years preceding 2015-16.

1.3 SCOPE OF THE STUDY

Working Capital Management is an important part of financial dept. of a company. It widens its
scope onto various elements like

 Solvency of the business

 Easy loans

 Goodwill

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 Cash discount

 Regular supply of raw material

 Quick and regular return on investment

1.4 COMPANY PROFILE

1.4.1 ADRESS DETAILS

Indiabulls

Type Public company

Traded as NSE: INDIABULLS


BSE: 532544

Industry Financial Services, Real


Estate, Securities

Founded Jan, 2000

Headquarters Gurgaon, India

Key people Sameer Gehlaut


(Chairman and Founder)

Products Securities, Consumer


Finance, Mortgages, Real
Estate, Housing
Finance, Mortgage Loans

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1.4.2 NATURE OF THE ORGANISATION

Indiabulls Group is one of the country's leading business houses with interests in housing
finance, real estate, securities, construction equipment leasing and facilities sector. The group
had combined revenues of Rs. 15,279.4 Cr. and PAT of 3,355.5 Cr. for the year ended 31st
March 2017. Various companies of Indiabulls Group are listed on Luxemburg Stock Exchange,
Bombay Stock Exchange, and the National Stock Exchange. The combined market
capitalization of these companies as on 30th June 2017 was Rs. 60,986.3 Cr.

GENESIS
In middle of 1999, when e-commerce was just about starting in India, Sameer Gehlaut bought a
defunct securities company with a NSE membership and started offering brokerage services.
By December 1999, the company embarked on its journey to build
one of the first online platforms in India for offering internet brokerage services. In January
2000, Indiabulls Financial Services was incorporated as the flagship company.
In late 2000, Indiabulls Securities, a subsidiary of Indiabulls
Financial Services started offering online brokerage services and simultaneously opened
physical offices across India. By 2003, Indiabulls securities had established a strong pan India
presence and client base through its offices and on the internet.
In September 2004, Indiabulls Financial Services went public with an IPO at Rs.19 a share. In
late 2004, Indiabulls Financial Services started it's financing business with consumer loans. In
March 2005, Indiabulls Properties Private Ltd, a subsidiary of Indiabulls Financial Services,
participated in government auction of Jupiter Mills, a defunct 11 acre textile mill owned by NTC
in Lower Parel, Mumbai. Indiabulls Properties Private Ltd. won the mill in auction and that
purchase started Indiabulls Real Estate business. A few months later, Indiabulls Real Estate
Company Pvt. Ltd. bought Elphinstone Mill in Lower Parel, another textile mill auctioned by
NTC.

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Solutions Beyond
Imagination
With real estate business gaining size, Indiabulls Financial Services demerged the real estate
business under Indiabulls Real Estate and each shareholder of Indiabulls Financial Services
received additional share of Indiabulls Real Estate through the demerger. Subsequently,
Indiabulls Financial Services also demerged Indiabulls Securities and each shareholder of
Indiabulls Financial Services also received a share of Indiabulls Securities. Today, Indiabulls
Group has a net worth of over Rs. 17,792 crore and the market capitalization stands at over
Rs.48,848 crore. Indiabulls Group has a strong presence in important sectors like financial
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services & real estate through independently listed companies and the group continues its
journey of building businesses with strong cash flows.

1.4.3 VISION & MISSION OF THE COMPANY

Indiabulls Real Estate follows an altogether different model of doing its business when compared to the
other significant players in this field. The model that IBRELs works under is known as "Unique Purpose
Entity". An exceptional reason element is an auxiliary organization with an advantage/risk structure and
lawful status that makes its commitments secure considering the possibility of the parent organization
going bankrupt. SPEs might be framed through restricted associations, put stock in, enterprises,
constrained risk partnerships or different elements. A SPE might be intended for free possession,
administration and financing of an organization; as security of a venture from operational or
indebtedness issues; or for making an engineered rent that is expensed on the organization's pay
explanation as opposed to recorded as an obligation on the monetary record. They help organizations
securitize resources, make joint endeavors, seclude corporate resources or perform other budgetary
exchanges.

1.4.4 Our Business

INDIABULLS
HOUSING FINANCE LTD.
Indiabulls Housing Finance Ltd. (IBHFL) is the 2nd largest private housing finance company in
India, regulated by the National Housing Bank (NHB). We are an ‘AAA’ rated company. We are
a part of one of India’s leading business conglomerates – ‘The Indiabulls Group’, which was
established in 1999 with business’ spread across housing finance, real estate and wealth
management.

Millions of Indians aspire to own a place that they can call home. At IBHFL, our collective efforts
are directed towards fulfilling these aspirations and dreams of our customers. We have serviced
more than 9.20 lakh customers and have cumulatively disbursed home loans of over Rs. 1.67
lakh crore as of the last financial year. We pride ourselves in having a workforce of over 6400
employees, more than half of which is dedicated to customers and sales, serving as the pillar on
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which we can meet the many needs of the segment.

Our constant endeavour is to ensure that the interest of all our key stakeholders – customers,
shareholders, investors, bankers & employees are taken care of. Imbibed in all business plans
and activities that we undertake is a strong focus on staying true to our core values and goals.
Our Core Values
- Customer First
- Transparency
- Integrity
- Professionalism
Our Goals
- To ensure utmost convenience in the home buying experience
- Making housing finance more affordable/viable by contributing towards the rganization of the
housing finance sector In keeping with the principle to continually working towards greater
‘customer convenience’, we are equipped to tend to you over our website and mobile
application with with e-Home Loans providing completely online home loans – from application
to disbursal. The entire gamut of our services will assist you in an all-inclusive home buying
experience is available for you to avail anytime and anywhere.

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Our Network
- Over 220 well-appointed and accessible branches in 110 towns and cities across India
- 2 representative offices in Dubai and London offering services to NRIs/PIOs

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Combining efficiencies in products, services and processes, we are committed to providing the
best home buying experience and be your perfect home loan partner.
We Welcome You Home!

INDIABULLS
REAL ESTATE
BUILDING LANDMARK EDIFICES,

Creating everlasting impressions!

Since its inception, Indiabulls Real Estate has earned a distinct reputation for building projects

that turn spaces into inspiring places. With prime focus on construction and development of

residential, commercial & SEZ projects across major Indian Metros & London, Indiabulls Real

Estate went on to expand its projects portfolio. Today it ranks third amongst the top Real Estate

companies with a total Gross Development value of INR 32,189 crores and net worth of

INR 5,480 crores as of June 30, 2017.

Indiabulls Real Estate’s strategic partnership with Farallon Capital Management LLC of USA

was instrumental in bringing the first FDI into real estate in India. Currently IBREL has 15 on-

going projects in India with total saleable area of 33.91 million sq.ft. The company has a fully

paid for land bank of 1,046 acres and also possesses 2,588 acres of SEZ land at Nashik,

Maharashtra.

IBREL is currently developing 33.91 million sq.ft. into premium quality, high-end commercial,

residential and retail spaces in the Metros- Mumbai, Delhi NCR & Chennai, apart from Tier I

cities. With its acquisition of the prime property, 22 Hanover Square in central London for INR

1,630 crores, IBREL is consolidating its presence internationally as well.

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Some of the iconic landmarks of IBREL that have redefined commercial spaces in Mumbai are
One Indiabulls Centre & Indiabulls Financial Centre with over 3 million sq.ft. of sprawling
commercial space. Indiabulls Real Estate has delivered a record 3.3 million sq.ft. developed
space valued at $ 1 billion (within 4 years of inception). This is fastest and largest delivery in
value of terms by any Indian real estate developer in the same time period.
IBREL has been assigned credit rating of AA- for long term debt and A1+ for short term loan by
CARE and International ratings of B1/B+ by Moody’s/Fitch respectively.

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INDIABULLS
VENTURES
Indiabulls Ventures Limited is one of India’s leading capital market companies providing

securities, commodities and currency broking services. Commodities services are being

provided through Indiabulls Commodities Ltd. A subsidiary of Indiabullls Ventures Limited. It is

listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock

Exchange. It was the first Company to be assigned the BQ-1 grading by CRISIL, which is the

highest broker quality grading, and is a reflection of the financial stability, strong fundamentals,

and stringent risk management controls that the Company possesses. Brickworks Ratings has

also assigned a strong credit rating of BWR A+ and BWR A1+ for it’s fund and non fund based

facilities.

The Company pioneered the on-line trading platform in the country. It has a client base in

excess of 6 lacs+ with 900+ direct sales across 18+ cities providing investment solutions to

retail investors across asset classes. Through its subsidiary the company is also engaged in the

marketing of non-discretionary wealth management products.

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Indiabulls Group is one of the country's leading business houses with interests in housing
finance, real estate, securities, construction equipment leasing and facilities sector. The group
had combined revenues of Rs. 15,279.4 Cr. and PAT of 3,355.5 Cr. for the year ended 31st
March 2017. Various companies of Indiabulls Group are listed on Luxemburg Stock Exchange,
Bombay Stock Exchange, and the National Stock Exchange. The combined market
capitalization of these companies as on 30th June 2017 was Rs. 60,986.3 Cr.

1.4.5 SIZE OF THE ORGANISATION

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KEY MILESTONES

IBHFL
2nd largest housing finance company
Part of the Nifty50 index
AAA rated by Credit Agencies
Servicing over 9 lakh customers

IBREL
3rd largest real estate company by net worth and assets
Delivered a record 4.7 million sq ft developed space
Credit rating of AA-, highest amongst Indian real estate developers

IVL
Fee based wealth management platform
Rated BQ1 by CRISIL - highest for any brokerage in India
Servicing over 7 lakh clients
1.4.6 ORGANISATIONAL STRUCTURE OF THE COMPANY
Financial Background of the company:-
In the mid-year 2006-07, Indiabulls entered in a 50:50 joint venture with DLF, Kenneth Builders
and Developers (KBD). KBD acquired 35.8 sections of land from Delhi Development Authority
through an aggressive offering process of Rs 450 Cr. to create private condos. Additionally, they
got an 'on a basic level endorsement' from Government of India for improvement of multi item
SEZ in the territory of Maharashtra. In the mid-year 2007-08, the organization broadened
essentially in the accompanying business verticals inside the land space specifically in Real
Estate Development, Project Advisory and Facilities Management: Residential, Commercial
(Office and Malls) and SEZ Development; Power: Thermal and Hydro Power Generation and
Retail Business: Department Stores, Hypermarket Stores, Daily Needs Neighborhood Stores. In
July 2007, the organization raised USD 400 million through Global Depositary Receipts. Amid
the year, the organization got formal endorsement from the Ministry of Commerce
(Government of India) for advancement of 3,000 sections of land of Multi Product SEZ in
Nashik, Maharashtra, situated on the Delhi-Mumbai modern hallway, being created as a major
aspect of Indo-Japan Economic Partnership Agreement. Likewise, they got formal endorsement
for 2 IT SEZs (25 sections of land each) situated in the Panvel zone of Mumbai Metropolitan
Region. Amid the final quarter, the organization propelled pre-deals at Castlewood Luxury
Apartments in South Delhi. By the mid-year, Indiabulls Power Generation Ltd, a 100% backup of
the organization, was granted the Letter of Intent for a 1320 MW Bhaiyathan Thermal Power

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Project (Bhaiyathan TPP) in Chhattisgarh by Chhattisgarh State Electricity Board. The venture
incorporates advancement of hostage mines containing demonstrated stores of 349 million
tons of coal. Amid the year, Indiabulls Wholesale Services Ltd, a 100% auxiliary of the
organization gained 63.92% value stake in Piramyd Retail Ltd through a Share Purchase
Agreement. Indiabulls Infrastructure Ltd, a 100% auxiliary of the organization obtained 100%
shareholding in Catherine Builders fit Developers Pvt Ltd from DLF Home Developers Ltd. In
December 27, 2007, Diana Buildwell Pvt Ltd, 100% backup of the organization sold their
complete holding in Victor Hotels And Motels Ltd. Amid the year 2008-09, the organization
obtained the whole paid-up capital of Dev Property Development Ltd, an organization joined
and enrolled in the Isle of Man, as per the game plan. They discarded interest in one of their
entirely possessed auxiliary, Shivalik Land Development Ltd. Likewise, Indiabulls Power Services
Ltd, a completely claimed auxiliary organization was converged with Sophia Power Company
Ltd, a lion's share possessed backup of theorganization now known as Indiabulls Power Ltd.
Amid the year, the organization marked an MOU with the Government of Madhya Pradesh for
setting up a 2640 MW control plant in the State and another MoU with the Government of
Jharkhand for a 1320 MW plant. In the Hydropower space, they marked an MOU with the
Government of Arunachal Pradesh for 167 MW of hydropower ventures. Amid the year 2009-
10, the organization has affirmed to the de-merger of the discount exchanging business of the
organization as an ongoing worry to Indiabulls Wholesale Services Ltd. They discarded one of
their completely possessed backup in the middle of the year. In June 2010, they discarded
seven completely claimed backups. The organization intends to attempt land improvement
thereby extending their past working range in Mumbai and Delhi over the business and private
parts considering its experience. Likewise, they intend to concentrate on the advancement of
mid to top of the line private ventures in Tire 2 areas, and there are chances of its building
townships on the edges of real urban communities.
CHAPTER- II

LITERATURE REVIEW

A financial marketing is a market in which


people trade financial securities, commodities, and value at low transaction
costs and at prices that reflect supply and demand. Securities include stocks and
bonds, and commodities include precious metals or agricultural products.
In economics, typically, the term market means the aggregate of possible buyers
and sellers of a certain good or service and the transactions between them.
The term "market" is sometimes used for what are more strictly exchanges,
organizations that facilitate the trade in financial securities, e.g., a stock
exchange or commodity exchange. This may be a physical location (like
the NYSE, BSE, LSE, JSE) or an electronic system (like NASDAQ). Much trading
of stocks takes place on an exchange; still, corporate actions (merger, spinoff)
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are outside an exchange, while any two companies or people, for whatever
reason, may agree to sell stock from the one to the other without using an
exchange.
Trading of currencies and bonds is largely on a bilateral basis, although some
bonds trade on a stock exchange, and people are building electronic systems for
these as well, similar to stock exchanges.

Types of financial markets[edit]


Within the financial sector, the term "financial markets" is often used to refer just
to the markets that are used to raise finance: for long term finance, the Capital
markets; for short term finance, the Money markets. Another common use of the
term is as a catchall for all the markets in the financial sector, as per examples in
the breakdown below.

 Capital markets which to consist of:


 Stock markets, which provide financing through the issuance of shares
or common stock, and enable the subsequent trading thereof.
 Bond markets, which provide financing through the issuance of bonds, and
enable the subsequent trading thereof.
 Commodity markets, which facilitate the trading of commodities.
 Money markets, which provide short term debt financing and investment.
 Derivatives markets, which provide instruments for the management
of financial risk.[1]
 Futures markets, which provide standardized forward contracts for trading
products at some future date; see also forward market.
 Foreign exchange markets, which facilitate the trading of foreign exchange.
 Spot market
 Interbank lending market
The capital markets may also be divided into primary markets and secondary
markets. Newly formed (issued) securities are bought or sold in primary markets,
such as during initial public offerings. Secondary markets allow investors to buy
and sell existing securities. The transactions in primary markets exist between
issuers and investors, while secondary market transactions exist among
investors.
Liquidity is a crucial aspect of securities that are traded in secondary markets.
Liquidity refers to the ease with which a security can be sold without a loss of
value. Securities with an active secondary market mean that there are many
buyers and sellers at a given point in time. Investors benefit from liquid
securities because they can sell their assets whenever they want; an illiquid
security may force the seller to get rid of their asset at a large discount.
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Derivative products[edit]
During the 1980s and 1990s, a major growth sector in financial markets was the
trade in so called derivatives.
In the financial markets, stock prices, bond prices, currency rates, interest rates
and dividends go up and down, creating risk. Derivative products are financial
products which are used to control risk or paradoxically exploit risk.[2] It is also
called financial economics.
Derivative products or instruments help the issuers to gain an unusual profit from
issuing the instruments. For using the help of these products a contract has to be
made. Derivative contracts are mainly 4 types:[3]

1. Future
2. Forward
3. Option
4. Swap
Seemingly, the most obvious buyers and sellers of currency are importers and
exporters of goods. While this may have been true in the distant past,[when?] when
international trade created the demand for currency markets, importers and
exporters now represent only 1/32 of foreign exchange dealing, according to
the Bank for International Settlements.[4]
The picture of foreign currency transactions today shows:

 Banks/Institutions
 Speculators
 Government spending (for example, military bases abroad)
 Importers/Exporters
 Tourists

Role in the economy[edit]


One of the important sustainability requisite for the accelerated development of
an economy is the existence of a dynamic financial market. A financial market
helps the economy in the following manner.

 Saving mobilization: Obtaining funds from the savers or surplus units such
as household individuals, business firms, public sector units, central
government, state governments etc. is an important role played by financial
markets.
 Investment: Financial markets play a crucial role in arranging to invest funds
thus collected in those units which are in need of the same.
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 National Growth: An important role played by financial market is that, they
contribute to a nation's growth by ensuring unfettered flow of surplus funds to
deficit units. Flow of funds for productive purposes is also made possible.
 Entrepreneurship growth: Financial market contribute to the development of
the entrepreneurial claw by making available the necessary financial
resources.
 Industrial development: The different components of financial markets help
an accelerated growth of industrial and economic development of a country,
thus contributing to raising the standard of living and the society of well-being.

Functions of financial markets[edit]


Intermediary functions: The intermediary functions of financial markets include
the following:

 Transfer of resources: Financial markets facilitate the transfer of real


economic resources from lenders to ultimate borrowers.
 Enhancing income: Financial markets allow lenders to earn interest or
dividend on their surplus invisible funds, thus contributing to the enhancement
of the individual and the national income.
 Productive usage: Financial markets allow for the productive use of the
funds borrowed. The enhancing the income and the gross national
production.
 Capital formation: Financial markets provide a channel through which new
savings flow to aid capital formation of a country.
 Price determination: Financial markets allow for the determination of price of
the traded financial assets through the interaction of buyers and sellers. They
provide a sign for the allocation of funds in the economy based on the
demand and to the supply through the mechanism called price
discovery process.
 Sale mechanism: Financial markets provide a mechanism for selling of a
financial asset by an investor so as to offer the benefit of marketability and
liquidity of such assets.
 Information: The activities of the participants in the financial market result in
the generation and the consequent dissemination of information to the various
segments of the market. So as to reduce the cost of transaction of financial
assets.

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Components of financial market[edit]
Based on market levels[edit]

 Primary market: Primary market is a market for new issues or new financial
claims. Hence it’s also called new issue market. The primary market deals
with those securities which are issued to the public for the first time.
 Secondary market: It’s a market for secondary sale of securities. In other
words, securities which have already passed through the new issue market
are traded in this market. Generally, such securities are quoted in the stock
exchange and it provides a continuous and regular market for buying and
selling of securities.
Simply put, primary market is the market where the newly started company
issued shares to the public for the first time through IPO (initial public offering).
Secondary market is the market where the second hand securities are sold
(securitCommodity Marketies).
Based on security types[edit]

 Money market: Money market is a market for dealing with financial assets
and securities which have a maturity period of up to one year. In other words,
it’s a market for purely short term funds.
 Capital market: A capital market is a market for financial assets which have a
long or indefinite maturity. Generally it deals with long term securities which
have a maturity period of above one year. Capital market may be further
divided into: (a) industrial securities market (b) Govt. securities market and (c)
long term loans market.
 Equity markets: A market where ownership of securities are issued and
subscribed is known as equity market. An example of a secondary equity
market for shares is the Bombay stock exchange.
 Debt market: The market where funds are borrowed and lent is known as
debt market. Arrangements are made in such a way that the borrowers
agree to pay the lender the original amount of the loan plus some
specified amount of interest.
 Derivative markets: A market where financial instruments are derived and
traded based on an underlying asset such as commodities or stocks.
 Financial service market: A market that comprises participants such as
commercial banks that provide various financial services like ATM. Credit
cards. Credit rating, stock broking etc. is known as financial service market.
Individuals and firms use financial services markets, to purchase services that
enhance the working of debt and equity markets.
 Depository markets: A depository market consists of depository institutions
that accept deposit from individuals and firms and uses these funds to
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participate in the debt market, by giving loans or purchasing other debt
instruments such as treasure bills.
 Non-depository market: Non-depository market carry out various functions
in financial markets ranging from financial intermediary to selling, insurance
etc. The various constituency in non-depositary markets are mutual funds,
insurance companies, pension funds, brokerage firms etc.

CHAPTER – III

RESEARCH METHODOLOGY

Research Methodology is the systematic, theoretical analysis of the methods applied to a field
of study. It comprises the theoretical analysis of the body of methods and principles associated
with a branch of knowledge.

Essentially, the procedures by which researchers go about their work of describing, explaining
and predicting phenomena are called research methodology. It is also defined as the study
of methods by which knowledge is gained. Its aim is to give the work plan of research.

The process used to collect information and data for the purpose of making business decisions.
The methodology may include publication research, interviews, surveys and
other research techniques, and could include both present and historical information.

IMPORTANCE OF RESEARCH

The purpose of research is to inform action. Thus, your study should seek to contextualize its
findings within the larger body of research. One problem that often plagues progress in global
health is the slow translation of research into practice.

The goal of doing market research is to equip yourself with the information you need to make
informed business decisions about start-up, innovation, growth and the 4 'Ps': product, price,
place and promotion. Product — Improve your product or service based on findings about what
your customers really want and need.

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UNIVERSE IN RESEARCH

The universe consists of all survey elements that qualify for inclusion in the research study. The
precise definition of the universe for a particular study is set by the research question, which
specifies who or what is of interest. The universe may be individuals, groups of people,
organizations, or even objects.

TYPES OF DATA

i. Primary Data
ii. Secondary Data
1. Primary data is the one collected by an individual for his own research. Raw information
that is new and self obtained.

2. Secondary data is the one that’s collected by someone other than the researcher. Common
sources could be books, journals, censuses, organizational records, data collected through
qualitative methodologies.

ABOUT THE REPORT

To carry out this project following ways were opted

i. Personal interviews of employees were taken

ii. Rest of the data was collected from the organizational records like annual reports, web
portal, journals, etc

A. Type of Study:
The study carried out here is basically analytical in nature. Analytic studies are then
undertaken to test specific hypotheses. Samples of subjects are identified and information
about exposure status and outcome is collected. The essence of an analytic study is that
groups of subjects are compared in order to estimate the magnitude of association
between exposures and outcomes. This type of study relies on data which is already available.

B. Type of Data used:

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The methodology involved for data collection was mainly through secondary data and
was obtained from the company’s financial statements and the company’s website. The
Balance Sheets and the Profit & Loss Accounts for the last 5 years was the source based
on which forecasting was done which was from the company’s archives. Extreme care was taken
in collecting the data from the financial statements and only relevant data was taken for
the analysis based on.

C. Sources of Data:
The source of data has been company’s Balance Sheet and Profit and Loss Accounts over a
period of past 5 years.

D. Tools used for Data Collection:


Appointment for interview was taken from few employees and data was collected on the
availability of employees and on the basis of interviews. The data has been collected
from the company’s Balance Sheet and Profit & Loss Account for the past 5 years, books
journals , and documents

E. Tools and techniques used for analysis:

Indiabulls Real Estate follows an altogether different model of doing its business when
compared to the other significant players in this field. The model that IBRELs works under is
known as "Unique Purpose Entity". An exceptional reason element is an auxiliary organization
with an advantage/risk structure and lawful status that makes its commitments secure
considering the possibility of the parent organization going bankrupt. SPEs might be framed
through restricted associations, put stock in, enterprises, constrained risk partnerships or
different elements. A SPE might be intended for free possession, administration and financing
of an organization; as security of a venture from operational or indebtedness issues; or for
making an engineered rent that is expensed on the organization's pay explanation as opposed
to recorded as an obligation on the monetary record. They help organizations securitize
resources, make joint endeavors, seclude corporate resources or perform other budgetary
exchanges.

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Methods adopted for Working Capital analysis:

The broad range of project management and financial advisory services include:

 Financial Ratio analysis for Financial Accounts


 Managing the components of Financial Accounts of INDIABULLS
 Determination of operating cycle of INDIABULLS
 Statement of change in Financial Accounts
 Trend Analysis of Financial Accounts

CHAPTER – IV

DATA ANALYSIS

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