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“A STUDY ON WORKING CAPITAL MANAGEMENT AND RATIO ANALYSIS OF TATASTEEL” Project submitted to S.A.V. ACHARYA INSTITUTE OF MANAGEMENT STUDIES in partial fulfilment of the requirements for Master in Management Studies By SANDIP A. RAUT Roll No: 30 SPECIALIZATION: FINANCE CLASS: MMS THIRD SEMESTER

Sandip Raut

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Page 1: Sandip Raut

“A STUDY ON WORKING CAPITAL MANAGEMENT AND

RATIO ANALYSIS OF TATASTEEL”

Project submitted to

S.A.V. ACHARYA INSTITUTE OF MANAGEMENT STUDIES

in partial fulfilment of the requirements for

Master in Management Studies

By

SANDIP A. RAUT

Roll No: 30

SPECIALIZATION: FINANCE

CLASS: MMS THIRD SEMESTER

Under the guidance of

PROF. PRITI BHUJBAL

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S.A.V ACHARYA INSTITUTE OF MANAGEMENT STUDIES

JUNE2015

Student’s Declaration

I hereby declare that this report submitted in partial fulfilment of the requirement of

MMS Degree of University of Mumbai to S.A.V ACHARYA INSTITUTE OF

MANAGEMENTSTUDIES. This is my original work and is not submitted for award of

any degree or diploma or for similar titles or prizes.

Place : Shelu Name : SandipRaut

Date : Class : MMS, Sem.-II

Roll No : 30

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CERTIFICATE

This is to certify that the dissertation submission in partial fulfilment for the

award of Master of Management Studies of S. A. V. Acharya Institute of Management

Studies is a result of the bonafide research work carried out by SANDIP ANANT RAUT

under the Supervision guidance of Prof. PRITI BHUJBAL. No part of this report has

been submitted for award of any othersimilar titles or prizes. The work has also not been

published in any Journals/Magazines.

Place : Shelu

Date :

Project Guide Director

(Prof. PritiBhujbal) (Dr. C. Satyanarayana)

Page 4: Sandip Raut

ACKNOWLEDGEMENT

I would like to give special acknowledgement to Dr. C. Satyanarayana Director of

S.A.V. Acharya Institute of Management Studies for his consistent support and

motivation.

I am grateful to Prof. Priti Bhujbal, my project guide, S.A.V. Acharya Institute of

Management Studies for their technical expertise, advice and excellent guidance. They

not only gave my report a scrupulous critical reading, but added many examples and

ideas to improve it.

I am indebted to my other faculty members who gave time and again reviewed portions

of this report and provide many valuable comments.

I would like to express my appreciation towards my friends for their encouragement and

support throughout this report.

Date: SANDIP RAUT

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TABLE OF CONTENT

Chapter

NumberChapter Name

Page

Number

Chapter-I 1.1 Executive Summary

1.2 Introduction to the Subject

1.3 Introduction to the Industry

1.4 Introduction to the company

1.5 Literature Review

Chapter –II

2.1 Research Methodology

2.2 Objectives of the Study

2.3 Importance of the Study

2.4 Data analysis and Interpretation

Chapter –III

3.1 Analysis Findings and conclusion

3.2 Suggestions and Recommendations

3.3Conclusion

3.4 Annexure

3.5 Bibliography

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Executive Summary

The project deals with understanding of mutual fund and analysis. During my project, I

got the opportunity to understand the concept, various AMC (Asset management

company) issuing various Mutual Fund according to the needs of the investors. During

my project, I came to know important regulations of SEBI for mutual fund operations.

Project deals with an analysis of RELIANCE AND TATA Mutual Funds various

schemes in which I tried to came out with a result which is best, for that purpose I

conducted a market research. During the project I suggested the investors how to invest

and in which fund they should invest.

During the project, I made an endeavor to understand the awareness of mutual funds

among the various classes of investors. The data collected mainly through fact sheets of

funds, broachers, and questionnaire and also from various sites of Reliance and Tata

mutual funds etc. the data analyzed and recommendation is given on the basis of the

conclusions.

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INTRODUCTION TO THE SUBJECT

MEANING OF MUTUAL FUND

Mutual funds are in the form of Trust (usually called Asset Management Company) that

manages the pool of money collected from various investors for investment in various

classes of assets to achieve certain financial goals. We can say that Mutual Fund is trusts

which pool the savings of large number of investors and then reinvests those funds for

earning profits and then distribute the dividend among the investors. In return for such

services, Asset Management Companies charge small fees. Every Mutual Fund /

launches different schemes, each with a specific objective. Investors who share the

same objectives invests in that particular Scheme. Each Mutual Fund Scheme is

managed by a Fund Manager with the help of his team of professionals (One Fund

Manage may be managing more than one scheme also).

A mutual fund makes money in several ways:

* By earning dividends or interest on the investments it owns 

* By selling securities that have appreciated in value.

Investors make money in the form of dividends and interest that are passed on to them

and the increase (or decrease) in the fund's value. The mutual fund manager keeps

constant watch on financial markets and adjusts the portfolio to achieve the highest

returns. By owning part of a fund, the hard work of selecting and monitoring stocks and

bonds is done for investors.

The majority of mutual funds available are open-ended funds. Open-ended funds can

have an unlimited number of investors or money in the fund. These funds are always

open to accept money from investors and to return the money back to investors. This

gives the investor the flexibility to enter into the scheme or to exit from the scheme or to

exit from the scheme as and when required as per their needs. Managers of closed-end

funds, on the other hand, decide upfront how many shares they will issue and when they

will sell them. The only way to purchase shares in a closed-end fund, once the original

shares have been sold, is to buy them from a current investor.

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The mutual fund industry of India is continuously evolving. Along the way, several

industry bodies are also investing towards investor education. Yet, according to a report

by Boston Analytics, less than 10% of our households consider mutual funds as an

investment avenue. It is still considered as a high-risk option.

DEFINITION OF 'MUTUAL FUND'

An investment vehicle that is made up of a pool of funds collected from many investors

for the purpose of investing in securities such as stocks, bonds, money market

instruments and similar assets. Mutual funds are operated by money managers, who

invest the fund's capital and attempt to produce capital gains and income for the fund's

investors. A mutual fund's portfolio is structured and maintained to match the investment

objectives stated in its prospectus.

NET ASSET VALUE

Net Asset Value (NAV) is the total asset value (net of expenses) per unit of the fund and

is calculated by the AMC at the end of every business day. In order to calculate the NAV

of a mutual fund, you need to take the current market value of the fund's assets minus the

liabilities, if any and divide it by the number of shares outstanding. NAV is calculated as

follows:

For example, if the market value of securities of a Mutual Fund scheme is   500 lakh and

the Mutual Fund has issued 10 lakh units of   10 each to investors, then the NAV per unit

of the fund is   50.

TYPES OF MUTUAL FUND

A) BASED ON THE MATURITY PERIOD

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Open-ended Fund 

An open-ended fund is a fund that is available for subscription and can be redeemed on a

continuous basis. It is available for subscription throughout the year and investors can

buy and sell units at NAV related prices. These funds do not have a fixed maturity date.

The key feature of an open-ended fund is liquidity.

Close-ended Fund

A close-ended fund is a fund that has a defined maturity period, e.g. 3-6 years. These

funds are open for subscription for a specified period at the time of initial launch. These

funds are listed on a recognized stock exchange.

Interval Funds

Interval funds combine the features of open-ended and close-ended funds. These funds

may trade on stock exchanges and are open for sale or redemption at predetermined

intervals on the prevailing NAV.

B) BASED ON INVESTMENT OBJECTIVES

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Equity/Growth Funds 

Equity/Growth funds invest a major part of its corpus in stocks and the investment

objective of these funds is long-term capital growth. When you buy shares of an equity

mutual fund, you effectively become a part owner of each of the securities in your fund’s

portfolio. Equity funds invest minimum 65% of its corpus in equity and equity related

securities. These funds may invest in a wide range of industries or focus on one or more

industry sectors. These types of funds are suitable for investors with a long-term outlook

and higher risk appetite.

Debt/Income Funds 

Debt/ Income funds generally invest in securities such as bonds, corporate debentures,

government securities (gilts) and money market instruments. These funds invest

minimum 65% of its corpus in fixed income securities. By investing in debt instruments,

these funds provide low risk and stable income to investors with preservation of capital.

These funds tend to be less volatile than equity funds and produce regular income. These

funds are suitable for investors whose main objective is safety of capital with moderate

growth.

Balanced Funds 

Balanced funds invest in both equities and fixed income instruments in line with the pre-

determined investment objective of the scheme. These funds provide both stability of

returns and capital appreciation to investors. These funds with equal allocation to equities

and fixed income securities are ideal for investors looking for a combination of income

and moderate growth. They generally have an investment pattern of investing around

60% in Equity and 40% in Debt instruments.

Money Market/ Liquid Funds

Money market/ Liquid funds invest in safer short-term instruments such as Treasury

Bills, Certificates of Deposit and Commercial Paper for a period of less than 91 days. The

aim of Money Market /Liquid Funds is to provide easy liquidity, preservation of capital

and moderate income. These funds are ideal for corporate and individual investors

looking for moderate returns on their surplus funds.

Gilt Funds

Gilt funds invest exclusively in government securities. Although these funds carry no

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credit risk, they are associated with interest rate risk. These funds are safer as they invest

in government securities.

Some of the common types of mutual funds and what they typically invest in:

Type of Fund Typical Investment

Equity or Growth Fund Equities like stocks

Fixed Income Fund Fixed income securities like government and corporate bonds

Money Market Fund Short-term fixed income securities like treasury bills

Balanced Fund A mix of equities and fixed income securities

Sector-specific Fund Sectors like IT, Pharma, Auto etc.

Index Fund Equities or Fixed income securities chosen to replicate a

specific Index for example S&P CNX Nifty

Fund of funds Other mutual funds

C) OTHER SCHEMES

Tax-Saving (Equity linked Savings Schemes) Funds

Tax-saving schemes offer tax rebates to investors under specific provisions of the Income

Tax Act, 1961. These are growth-oriented schemes and invest primarily in equities. Like

an equity scheme, they largely suit investors having a higher risk appetite and aim to

generate capital appreciation over medium to long term.

Index Funds

Index schemes replicate the performance of a particular index such as the BSE Sensex or

the S&P CNX Nifty. The portfolio of these schemes consist of only those stocks that

represent the index and the weightage assigned to each stock is aligned to the stock’s

weightage in the index. Hence, the returns from these funds are more or less similar to

those generated by the Index.

Sector-specific Funds

Sector-specific funds invest in the securities of only those sectors or industries as

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specified in the Scheme Information Document. The returns in these funds are dependent

on the performance of the respective sector/industries for example FMCG, Pharma, IT,

etc. The funds enable investors to diversify holdings among many companies within an

industry. Sector funds are riskier as their performance is dependent on particular sectors

although this also results in higher returns generated by these funds.

IMPORTANCE OF MUTUAL FUNDS :-

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Mutual fund is a single and large professionally managed investment organisation which

combines the funds of many individual investors having similar investment objectives.

They form an important part of capital market. The importance of mutual funds arise due

to its many benefits. Let us explain :-

1. Professional Management :-

Investors purchase units in mutual funds because they do not have time or expertise to

manage their own portfolio. Mutual funds are managed by professional managers who

have requisite knowledge and skill to make organised investmentstrategy.Thus small

investors invest in mutual funds to maximize their returns on investment.

2. Economies Of Scale :-

Mutual funds buy and sell large amount of securities at a time, this reduces,

transaction cost. Investors gain on account of low transaction costs.

3. Product Innovation :-

From time to time new products are introduced by mutual fund industry to its investors.

Schemes like children funds, commodity based funds, fixed maturity plans, exchange

traded funds hybrid funds(fund for funds) etc. all have attracted huge investments.

4. Safety And Liquidity :-

Mutual funds are controlled and regulated by SEBI hence they are safe. Further, investors

can easily encash their investments by selling their units to fund if it is an open-ended

scheme or selling them on stock exchange if it is a close-ended scheme.

5. Convenience And Flexibility :-

Mutual funds permit flexibility. If an investor is not satisfied with one mutual fund, he

can switch over to another. There are least formalities to invest in mutual funds.

6. Portfolio Diversification :-

Due to lack of resources an individual investor may not be able to invest in a diversified

portfolio of securities. Mutual funds invest in a number of companiesacrossvarious

sectors and industries. Currently there are about 38 mutual funds offering different

products. Thisdiversification reduces the risk of investment.

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7. Reduction In Risk :-

Mutual funds help to reduce risk through diversification and professional management.

All funds are not invested in same investment avenue. Holding a portfolio that is

diversified across investment avenues is a wise way to manage risk.

8. Transparency :-

There is greater transparency in investment in mutual funds. They declare their portfolio

of investment every month. The investors can know where their funds are invested. In

case they are not happy with the portfolio, of fund they can withdraw their money at a

short notice.

9. Services To Investors :-

Mutual funds offer systematic withdrawal plans which are convenient to retired people.

The dividend and capital gains are reinvested automatically. Automatic reinvestment is a

type of forced savings which brings cumulative benefits to investors.

10. Stability to stock Market :-

Mutual funds invest in huge amounts in securities. They can easily absorbcertainlosses in

stock market. They regularly invest in stock market, which provides stability to stock

market.

11. Equity Research :-

Mutual funds also invest in equity research. This gives a lot of information and data for

investments. They also helps them to get a good portfolio.

12. Ancillary Services :-

Mutual funds also provides ancillary services such as :-

Saving schemes for regular monthly investments in units. Life Insurance Schemes. Automatic reinvestment of dividend.

OBJECTIVE OF INVESTING IN MUTUAL FUNDS:

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1. Professional ManagementWhen you invest in a mutual fund, your money is managed by finance professionals. Investors who do not have the time or skill to manage their own portfolio can invest in mutual funds. By investing in mutual funds, you can gain the services of professional fund managers, which would otherwise be costly for an individual investor.

2. DiversificationMutual funds provide the benefit of diversification across different sectors and companies. Mutual funds widen investments across various industries and asset classes. Thus, by investing in a mutual fund, you can gain from the benefits of diversification and asset allocation, without investing a large amount of money that would be required to build an individual portfolio.

3. LiquidityMutual funds are usually very liquid investments. Unless they have a pre-specified lock-in period, your money is available to you anytime you want subject to exit load, if any. Normally funds take a couple of days for returning your money to you. Since they are well integrated with the banking system, most funds can transfer the money directly to your bank account.

4. FlexibilityInvestors can benefit from the convenience and flexibility offered by mutual funds to invest in a wide range of schemes. The option of systematic (at regular intervals) investment and withdrawal is also offered to investors in most open-ended schemes. Depending on one’s inclinations and convenience one can invest or withdraw funds.

5. Low transaction cost Due to economies of scale, mutual funds pay lower transaction costs. The benefits are passed on to mutual fund investors, which may not be enjoyed by an individual who enters the market directly.

6. Transparency Funds provide investors with updated information pertaining to the markets and schemes through factsheets, offer documents, annual reports etc.

7. Well regulatedMutual funds in India are regulated and monitored by the Securities and Exchange Board of India (SEBI), which endeavors to protect the interests of investors. All funds are registered with SEBI and complete transparency is enforced. Mutual funds are required to provide investors with standard information about their investments, in addition to other disclosures like specific investments made by the scheme and the quantity of investment in each asset class

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The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest

private sector enterprise, with businesses in the energy and materials value chain. Group's

annual revenues are in excess of US$ 66 billion. The flagship company, Reliance

Industries Limited, is a Fortune Global 500 company and is the largest private sector

company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of

Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of

backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals,

petroleum refining and oil and gas exploration and production - to be fully integrated

along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refining

and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals),

textiles, retail, infotel and special economic zones.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn and

fibre producer in the world and among the top five to ten producers in the world in major

petrochemical products.

Major Group Companies are Reliance Industries Limited, including its subsidiaries and

Reliance Industrial Infrastructure Limited.

Reliance Industries Limited (RIL) is an Indian conglomerate holding company

headquartered in Mumbai, Maharashtra, India. The company operates in five major

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segments: exploration and production, refining and marketing, petrochemicals, retail and

telecommunications.

The group is present in many business sectors across India including petrochemicals,

construction, communications, energy, health care, science and technology, natural

resources, retail, textiles, and logistics. RIL is the second-largest publicly traded company

in India by market capitalisation and is the second largest company in India by revenue

after the state-run Indian Oil Corporation. The company is ranked No. 99 on the Fortune

Global 500 list of the world's biggest corporations, as of 2013. RIL contributes

approximately 14% of India's total exports.

MAJOR SUBSIDIARIES AND ASSOCIATES

On 31 March 2014, the company had 123 subsidiary companies and 10 associate

companies.

RELIANCE RETAIL is the retail business wing of the Reliance Industries. In March

2013, it had 1466 stores in India. It is the largest retailer in India. Many brands like

Reliance Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance

Wellness, Reliance Trends, Reliance Autozone, Reliance Super, Reliance Mart, Reliance

iStore, Reliance Home Kitchens, Reliance Market (Cash n Carry) and Reliance Jewel

come under the Reliance Retail brand. Its annual revenue for the financial year 2012–13

was 108 billion (US$1.7 billion) with an EBITDA of 780 million (US$12 million).

RELIANCE LIFE SCIENCES works around medical, plant and industrial

biotechnology opportunities.

It specializes in manufacturing, branding, and marketing Reliance Industries' products in

bio-pharmaceuticals, pharmaceuticals, clinical research services, regenerative medicine,

molecular medicine, novel therapeutics, biofuels, plant biotechnology, and industrial

biotechnology sectors of the medical business industry.

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RELIANCE INSTITUTE OF LIFE SCIENCES (RILS), established by

DhirubhaiAmbani Foundation, is an institution offering higher education in various fields

of life sciences and related technologies.

Reliance Logistics is a single-window company selling transportation, distribution,

warehousing, logistics, and supply chain-related products, supported by in-house

telematics and telemetry solutions.

Reliance Logistics is an asset based company with its own fleet and infrastructure. It

provides logistics services to Reliance group companies and outsiders. Merged content

from Reliance Logistics to here. See Talk: RelianceIndustries Merge proposals.

RELIANCE CLINICAL RESEARCH SERVICES (RCRS), a contract research

organisation (CRO) and wholly owned subsidiary of Reliance Life Sciences, specialises

in the clinical research services industry. Its clients are primarily pharmaceutical,

biotechnology and medical device companies.

RELIANCE SOLAR, the solar energy subsidiary of reliance, was established to produce

and retail solar energy systems primarily to remote and rural areas. it offers a range of

products based on solar energy: solar lanterns, home lighting systems, street lighting

systems, water purification systems, refrigeration systems and solar air conditioners.

Merged content from Reliance Solar to here. See Talk: RelianceIndustries Merge

proposals.

RELICORD is a cord blood banking service owned by Reliance Life Sciences. It was

established in 2002. It has been inspected and accredited by AABB, and also has been

accorded a license by Food and Drug Administration (FDA), Government of India.

RELIANCE JIO INFOCOMM (RJIL), previously known as Infotel Broadband, is a

broadband service provider which gained 4G licences for operating across India. Now it

is wholly owned by RIL for 48 billion (US$750 million). Sandip Das, former ceo of

Maxis Malaysia, is the current group president of Reliance JioInfocomm.

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RELIANCE INDUSTRIAL INFRASTRUCTURELIMITED (RIIL) is an associate

company of RIL. RIL holds 45.43% of total shares of RIIL. It was incorporated in

September 1988 as ChemburPatalganga Pipelines Limited, with the main objective being

to build and operate cross-country pipelines for transporting petroleum products. The

company's name was subsequently changed to CPPL Limited in September 1992, and

thereafter to its present name, Reliance Industrial Infrastructure Limited, in March 1994.

RIIL is mainly engaged in the business of setting up and operating industrial

infrastructure. The company is also engaged in related activities involving leasing and

providing services connected with computer software and data processing. The company

set up a 200-millimetre diameter twin pipeline system that connects the Bharat Petroleum

refinery at Mahul, Maharashtra, to Reliance's petrochemical complex at Patalganga,

Maharashtra. The pipeline carries petroleum products including naphtha and kerosene. It

has commissioned facilities like the supervisory control and data acquisition system and

the cathodic protection system, a jackwell at River Tapi, and a raw water pipeline system

at Hazira. The infrastructure company constructed a 71,000 kilo-litre petrochemical

product storage and distribution terminal at the Jawaharlal Nehru Port Trust (JNPT) Area

in Maharashtra.

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INTRODUCTION TO THE INDUSTRY

Tata Industries was set up by Tata Sons in 1945 as a managing agency for the businesses

it promoted. Following the abolition of the managing agency system, Tata Industries'

mandate was recast, in the early 1980s, to promote Tata's entry into new and high-tech

businesses.

Tata Industries has initiated and promoted Tata ventures in several sectors, including

control systems, information technology, financial services, auto components, advanced

materials, telecom hardware and telecommunication services.

Tata Group is an Indian Multinational corporation conglomerate company headquartered

in Mumbai, Maharashtra, India. It encompasses seven business sectors: communications

and information technology, engineering, materials, services, energy, consumer products

and chemicals. Tata Group was founded in 1868 by Jamsetji Tata as a trading company.

It has operations in more than 80 countries across six continents. Tata Group has over

100 operating companies with each of them operating independently.

Out of them 32 are publicly listed. The major Tata companies are Tata Steel, Tata

Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global

Beverages, Tata Teleservices, Titan Industries, Tata Communications and Taj Hotels.

The combined market capitalisation of all the 32 listed Tata companies was INR 8.4

Trillion ($ 141.27 billion) as of July 2014. Tata receives more than 58% of its revenue

from outside India.

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The Tata Group is owned primarily by various charitable trusts (established by Jamsetji

Tata's sons at his behest) that maintain a majority stake in the holding company. The

current chairman of the Tata group is Cyrus PallonjiMistry, who took over from Ratan

Tata in 2012. Tata Sons is the promoter of all key Tata companies and holds the bulk of

shareholding in these companies. The chairman of Tata Sons has traditionally been the

chairman of the Tata group. About 66% of the Equity (finance)of Tata Sons is held by

philanthropic trusts endowed by members of the Tata family.

The Tata Group and its companies & enterprises is perceived to be India's best-known

global brand within and outside the country as per an ASSOCHAM survey. The 2009,

annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable

company in the world. The survey included 600 global companies. The Tata Group has

helped establish and finance numerous quality research, educational and cultural

institutes in India. The group was awarded the Carnegie Medal of Philanthropy in 2007 in

recognition of its long history of philanthropic activities.

AREAS OF BUSINESS

Tata Industries has two operating divisions which function as independent profit centres:

Tata Strategic Management Group: An independent management consulting division that

assists Tata as well as non-Tata companies in enhancing their competitive edge.

Tata Interactive Systems: Among the world's leading e-learning organisations, it offers

services such as project management, instructional design and graphics, and technical

know-how.

Tata Industries' main activities are:

To promote Tatas' entry into new businesses

To maintain shareholding in promoted companies

To invest in operating companies to facilitate growth

Head of group

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Jamsetji Tata (1868-1904)

Dorabji Tata (1904–1932)

NowrojiSaklatwala (1932–1938)

J. R. D. Tata (1938–1991)

Ratan Tata (1991–2012)

Cyrus PallonjiMistry (2012–Present)

This section lists the Tata companies and details their business:

Chemicals

Tata Chemicals

Rallis India

Tata Pigments Limited

General Chemical Industrial Products

Brunner Mond

Advinus Therapeutics

Magadi Soda Company

Consumer products

Tata Salt

I-shakti

Casa Décor

Tata Swach

Tata Global Beverages

Tata Tea Limited is the world's second largest manufacturer of packaged tea and

tea products.

Tata Starbucks, is a 50:50 joint venture company, owned by Starbucks

Corporation and Tata Global Beverages

Eight O'Clock Coffee

Tetley

Tata Coffee

Himalayan, Mount Everest Mineral Water’s natural mineral water brand

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Tata Ceramics

Infiniti Retail (Cromā)

Tata Industries

Titan Industries

Trent (Westside)

Landmark Bookstores

Tata Sky

Crossword

Voltas, consumer electronics company

Tata International Ltd.

Tanishq

Fastrack, Largest & Trendiest Youth Fashion Brand in India

Titan Eye+, World class Optical Stores from Titan Industries

Tata Refractories

Westland

Energy

Tata Power is one of the largest private sector power companies.

Tata Power Solar, a joint venture between Tata Power and BP Solar

Hooghly Met Coke and Power Company

Jamshedpur Utilities and Services Company

Tata Power Delhi Distribution Ltd (Formerly Known as North Delhi Power Ltd)

Powerlinks Transmission

Tata Power Trading

Tata Projects

Engineering

TAL Manufacturing Solutions

Tata AutoComp Systems Limited (TACO)

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Hispano Carrocera

Tata Motors, manufacturer of commercial vehicles (largest in India) and

passenger cars

Jaguar Land Rover (Manager of Tata's British brands Jaguar cars and Land

Rover)

Tata Daewoo Commercial Vehicle

Tata Projects

Tata Technologies Limited

Tata Marcopolo

Tata Consulting Engineers Limited

Tata Cummins

Telco Construction Equipment

TRF

Voltas Global Engineering Centre

Tata Advanced Materials

Tata Advanced Systems

Tata Motors European Technical Centre

Tata Petrodyne

Tata Precision Industries

Telcon Construction Equipment

Information systems and communications

Computational Research Laboratories

INCAT

Nelco

Nelito Systems

Tata Business Support Services

Tata Consultancy Services Ltd. (TCS) is one of the world's largest IT Services

companies.

Tata Elxsi

Neotel

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Tata Interactive Systems

Tata Teleservices

Tata Teleservices (Maharashtra)

Virgin Mobile India

Tata Communications

CMC Limited

VSNL International Canada

Tatanet, Managed connectivity and VSAT service provider

Services

Tata Sons

TajAir

AirAsia India

Air Asia India joint venture with Air Asia

The Indian Hotels Company

Taj Hotels

Vivanta By Taj

The Gateway Hotels & Resorts

Ginger Hotels

Roots Corporation

Tata Housing Development Company Ltd. (THDC)

Tata Limited

TATA AIG General Insurance

TATA AIA Life Insurance

e-Nxt Financials ltd.

TKM Global, Logistics and Supply Chain

Tata AG

Tata Asset Management

Tata Financial Services

Tata Capital

Tata International AG

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Tata Investment Corporation

Tata Advanced Systems Limited

Drive India Enterprise Solutions

Mjunction services

Tata Quality Management Services

Tata Realty and Infrastructure Limited

Tata Interactive Systems

Tata Africa Holdings

Tata AutoComp Systems

Tata Industrial Services

Tata NYK

Tata Services

Tata Strategic Management Group

Steel

Tata Steel

Tata Steel Europe

Tata Steel KZN

Tata Steel Processing and Distribution

JAMIPOL

NatSteel Holdings

Tata BlueScope Steel

Tata Metaliks

Tata Sponge Iron

Tayo Rolls

The Tinplate Company of India

Tata Bearings

TM International Logistics

Core sciences

Tata Institute of Fundamental Research

Page 27: Sandip Raut

Tata Institute of Social Sciences

Page 28: Sandip Raut

Reliance Mutual Fund, a part of the Reliance Anil DhirubhaiAmbani (ADA) Group, is

one of the fastest growing mutual funds in India. RMF offers investors a well-rounded

portfolio of products to meet varying investor requirements and has presence in 160 cities

across the country. RMF constantly endeavours to launch innovative products and

customer service initiatives to increase value to investors.

Reliance Mutual Fund (RMF) is one of India's leading mutual funds, with Average

Assets Under Management (AAUM) of ` 1,22,068 crore (as on 30th September, 2014)

and 52.58 lakh folios (as on 30th September, 2014)

Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act,

1882 with Reliance Capital Limited (RCL), as the Settler/Sponsor and Reliance Capital

Trustee Co. Limited (RCTC), as the Trustee.

Reliance Mutual Fund has been registered with the Securities & Exchange Board of India

(SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of Reliance

Capital Mutual Fund was changed to Reliance Mutual Fund effective March 11,2004

vide SEBI's letter no. IMD/PSP/4958/2004 dated March 11,2004. RMF was formed to

launch various schemes under which units are issued to the public with a view to

contribute to the capital market and to provide investors the opportunities to make

investments in diversified securities.

Page 29: Sandip Raut

KEY INFORMATION

Mutual Fund Reliance Mutual Fund

Setup Date Jun-30-1995

Incorporation Date Feb-24-1995

Sponsor Reliance Capital Limited

Trustee Reliance Capital Trustee Co. Ltd.

Chairman N.A

CEO / MD SundeepSikka

CIO N.A

Compliance Officer Mr. MuneeshSud

Investor Service Officer Mr. Bhalchandra Joshi

Assets Managed Rs. 126069.04 crore (Dec-31-2014)

THE MAIN OBJECTIVES OF RMF ARE

To carry on the activity of a mutual fund as may be permitted at law, and

formulate and devise various collective schemes of savings and investments for

people in India and abroad, and also ensure liquidity of investments for the unit

holders;

To deploy funds thus raised so as to help the unit holders earn reasonable returns

on their savings; and

To take such steps as may be necessary from time to time to realise the effects

without any limitation.

OUR SERVICE PROVIDERS

AUDITOR

1. Statutory Auditor to the Schemes of Reliance Mutual Fund

Haribhakti& Co.

Chartered Accountants

2. Internal Auditor to the Schemes of Reliance Mutual Fund

Page 30: Sandip Raut

Price Waterhouse Coopers

Chartered Accountants

3. Statutory Auditors for Reliance Capital Asset Management Limited

BSR & Co. LLP

Chartered Accountants

Statutory Auditor to the Reliance Capital Trustee Co. Limited

Chartered Accountants

CUSTODIAN

The Trustee has appointed Deutsche Bank, AG located at Kodak House, Ground

Floor, 222 Dr. D.N. Road, Mumbai 400 001, as the Custodian of the securities

that are bought and sold under the Scheme. A Custody Agreement has been

entered into with Deutsche Bank in accordance with SEBI Regulations. The

Custodian is approved by SEBI under registration no. IN/CUS/003 to act as

Custodian for the Fund.

REGISTRAR

Reliance Capital Asset Management Limited (RCAM) has appointed M/s. Karvy

Computershare Private Ltd. (KCL) to act as the Registrar and Transfer Agent to

the Schemes of Reliance Mutual Fund (RMF). KCL is a Registrar and Transfer

Agent registered with SEBI under registration no. INR000000221. KCL has its

office at Madhura Estate, Muncipal No 1-9/13/C, Plot No 13 & 13C, Survey No

74 & 75, Madhapur Village, SerlingampallyMandal&Muncipality R R District,

Hyderabad 500 081.

RCAM and the Trustee have satisfied themselves after undertaking appropriate

due diligence measures that KCL has adequate facilities, including systems

facilities and back up to provide the services required.

BANKERS

Bankers to the Schemes to be notified from time to time.

INTRODUCTION TO THE COMPANY

Page 31: Sandip Raut

Tata mutual fund, set up in 1995, is one of the leading private sector funds in the

country and is promoted by the Tata group. The sponsors of the fund are Tata Sons

Limited and Tata Investment Corporation Limited.

Tata Asset Management Limited is the investment manager of the mutual fund and has F

K Karavana of Tata Sons as its chairman. The management of the AMC is headed by

VedPrakashChaturvedi, managing director. Tata Sons holds a majority stake in the AMC

with the balance being held by Tata Investment Corporation.

Tata Mutual Fund offers a wide range of investment products for institutional and

individual investors and as of August 31, 2006, has assets of Rs. 12562.65 crores under

management.

In a financial scenario that sees a lot of volatility, the Tata name assures customers that

their money is in safe hands, that Tata Asset Management will act in their best interest

and that Tata Mutual Fund will resolve their financial needs

Tata Mutual Fund (TMF), a brand from Tata Asset Management, one of the oldest asset

management companies in India and one of India’s leading investment managers, is

based on the dictum that managing wealth is as important as creating it.

 

TMF is an Indian brand with a global network of

partnerships. The brand has established loyalty

Page 32: Sandip Raut

among its client base through product differentiation, branding activities, the confidence

of associates, performance of the funds and overall experience of the customers.

 

The brand enjoys a high equity in the country, thanks to its expertise, trustworthiness,

maturity and modern outlook. Its appeal lies in the unique combination of its features,

comprising expertise in fund management and best-in-class service and trust. Over the

years, award winning fund performances have reinforced the TMF brand image as expert

money managers.

 

The performance of the brand reaffirms the trust placed in the fund by the customers.

Customers look forward not only to high returns which are in line with their appetite for

risk, but also to peace of mind, knowing that their funds will not be mismanaged.

 

In a financial scenario that sees a lot of volatility, the Tata name assures customers that

their money is in safe hands, that Tata Asset Management will act in their best interest

and that TMF will resolve their financial needs.

Tata Mutual Fund has earned the trust of lakhs of investors with its consistent

performance and world-class service.

Tata Mutual Fund manages Rs. 23,022.48 crores (average AUM for the quarter of April -

June 2014) worth of assets across its varied offerings. Tata Mutual Fund offers an

investment option for everyone, whether you are a businessman or salaried professional,

a retired person or housewife, an aggressive investor or a conservative capital builder.

The Tata Asset Management philosophy is centred on seeking consistent, long-term

results. Tata Asset Management aims at overall excellence, within the framework of

transparent and rigorous risk controls.

KEY INFORMATION

Mutual Fund Tata Mutual Fund

Setup Date Jun-30-1995

Page 33: Sandip Raut

Incorporation Date Mar-15-1994

Sponsor Tata Sons Limited & Tata Investment Corp. Ltd.

Trustee Tata Trustee Company Pvt Limited

Chairman Mr. FarokhSubedar

CEO / MD Mr. ArvindSethi

CIO Mr. Ritesh Jain

Compliance Officer Mr. Upesh Shah

Investor Service Officer Ms. KashmiraKalwachwala

Assets Managed Rs. 24250.65 crore (Dec-31-2014)

We constantly benchmark our efforts against the following tenets of performance:

Consistency

We strive to deliver consistent results through our value-based investing methodology,

keeping alive the belief of the late doyen of the Tata Group, Mr. J.R.D. Tata, that money

received from the people should go back to them several times over.

Flexibility

We offer a broad range of investment products across various asset classes with varying

risk parameters that cater to needs of different customer segments. We also provide our

customers with operational flexibility to suit their different investment needs.

Page 34: Sandip Raut

Stability

Our commitment to the highest quality of service and our intense focus on integrity is a

key aspect of our business which has earned us the trust of our customers.

Services

We offer a wide range of services keeping in mind the challenges faced by the investors

with the aim to provide them a fulfilling and rewarding investing experience with us.

Page 35: Sandip Raut

LITERATURE REVIEW

A large number of studies on the growth and financial performance ofmutual funds have

been carried out during the past, in the developed and developing countries. Brief reviews

of the following research works reveal the wealth of contributions towards the

performance evaluation of mutual fund, market timing and stock selection abilities of

fund managers.

In India, one of the earliest attempts was made by National Council ofApplied Economics

Research (NCAER) in 1964 when a survey ofhouseholds was undertaken to understand

the attitude towards andmotivation for savings of individuals. Another NCAER study in

1996analyzed the structure of the capital market and presented the views and attitudes of

individual shareholders.

SEBI – NCAER Survey (2000) was carried out to estimate the number of households and

the population of individual investors, their economic and demographic profile, portfolio

size, and investment preference for equity as well as other savings instruments. Data was

collected from 30,00,000 geographically dispersed rural and urban households.

Some of the relevant findings of the study are : Households preference for instruments

match their risk perception; Bank Deposit has an appeal across all income class; 43% of

the non-investor households equivalent to around 60 million households apparently lack

awareness about stock markets; and, compared with low income groups, the higher

income groups have higher share of investments in Mutual Funds signifying that Mutual

funds have still not become truly the investment vehicle for small investors.

The review of earlier studies focuses mainly on subject of performance of Mutual Funds

and Portfolio of Mutual Fund. The existing “Behavioral Finance” studies are very few

and very little information is available about investor perceptions, preferences, attitudes

and behavior.

Page 36: Sandip Raut

Research Methodology

1. Research Design:

A research design is a pattern or an outline of a research project’s working. It is a

statement of only the essential element of a study, those that provide the basic guidelines

for the details of the project. It comprises a series of prior decision that taken together

provide master plans for executing a research projects.

A research design serves as a bridge between what has been established i.e., the research

objectives and what is to be done, in conduct of the study to relish those objectives. If

there were no research design, the research would have only foggy notions as about what

is to be done.

I have used of ‘Exploratory Type’. The research is of both qualitative as well as

quantitative type.

2. Unit of Analysis:

Investors

Characteristics of interest:

Client’s knowledge about Mutual Fund.

Client’s interest in getting knowledge of Mutual Fund.

Client’s willingness to deal in Mutual Fund with Reliance and Tata.

Client’s preference in selecting tax saving instrument of investment.

Client’s preference in selecting dealer.

3. Sources of Data:

Primary Source:

The primary data is collected using sampling method and by survey using questionnaire.

Secondary Source:

Page 37: Sandip Raut

Secondary data includes information regarding present market scenario, Information

regarding Mutual Funds and competitors are collected by internet, Magazines and

Newspaper and books.

4. Sample Planning:

Sample Size: 50 units.

Sample Extent: Mumbai city.

5. Sample design:

A sample design is a definite plan for obtaining a sample from a given population. It

refers to the technique or method the researcher would adopt in selecting items for the

sample.

I have used convenience sampling method

6. Data collection method:

I have used survey method to collect the data.

Questionnaire plan:I have used structured for gathering the required data

through contacting respondent personally

7. Type of information:

I have collected facts, awareness, attitude, future action plan and reason using

questionnaire.

8. Type of questions:

Close ended questions for dichotomous.

Multiple choice type

9. Data Analysis and Interpretation:

Data analysis is based on the data collected by way of questionnaires. The data is

tabulated and frequency distribution chart is prepared.

Page 38: Sandip Raut

OBJECTIVE OF THE STUDY

To study the mutual fund industry in detail.

To study the investment procedure in detail.

To find out the market risk of sip plan.

To aware the client about mutual fund investment.

To suggest better investment option according to market behavior to the client.

Expansion of mutual fund investment.

To remove the past image of mutual fund from the mind of investors.

To show the beneficiary aspect of mutual fund.

To give the updated information to the investors about the high return and less

risk fund.

Page 39: Sandip Raut

IMPORTANCE OF THE STUDY

Mutual funds offer inexperienced and experienced investors---who may not have

a lot of money to invest---the ability to invest in more than just one investment

tool without having to monitor or manage that investment personally and at a

reduced risk.

Every person who have no more knowledge about investment and he want to

invest anywhere so he can invest easily in mutual fund.

One of the mode to invest mutual fund that’s SIP (Systematic Investment Plan) is

less risky to invest and every investor want to invest in less price.

Mutual fund is totally depend upon the NAV value (Net Assets Value)

By purchasing a combination of Mutuals, bonds and other securities--rather than

just one single Mutual purchase--their risk is spread out over many fields and

companies, instead of just one.

Purchasing into a mutual fund automatically provides the investor with an

experienced investment manager to oversee their investment. This is because the

mutual fund is composed of different investment securities and requires a

competent professional to oversee it from the onset.

It is one of the easiest ways of investing your saving money

RESEARCH ANALYSIS AND INTERPRETATION

Page 40: Sandip Raut

REASONS FOR CHOOSING

RETURN RISK SAFETY TAX BENEFITS0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

TATARELIANCE

INTERPRETATION:

After analysis we have got that lots of investors want to invest just for security purpose.

because most of the investors want to secure or their money, so for holding the money

they want to invest in somewhere so that they can safe their money for future .and a

persons who have no knowledge about security market, they can also be invest in mutual

funds.

Page 41: Sandip Raut

MUTUAL FUND ADVISORS SUGGESTION ABOUT INVESTMENT

10%

55%

15%

20%

SHARESMUTUAL FUNDINSURANCEFD'S

INTERPRETATION:

Mutual fund advisor will suggest the investors to invest in mutual fund investment more

because it is les risky than any investment. In mutual fund the investor can invest in sip

(systematic investment plan) which is depend upon NAV (net asset value) which is less

risky and whenever investors want to close that scheme they can. And it is profitable

because its profit is based on average basis.

Page 42: Sandip Raut

INVESTORS WHO KNOW ABOUT THE MUTUAL FUND

SERVICES PROVIDED BY RELIANCE AND TATA

DON'T KNOW KNOW0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

RELIANCETATA

INTERPRETATION

After analysis we have known that most of the investors don’t know about the mutual

fund services which has been provided by Reliance and tata just because of publicity.

30% of people know about the reliance mutual fund and 70% people don’t know about it.

Various 20% of people know about the Tata mutual fund and 80% people don’t know

about it

Page 43: Sandip Raut

CLIENTS WANT TO GET ADVISORY SERVICES FROM RELIANCE AND TATA

YES NO0%

10%

20%

30%

40%

50%

60%

70%

80%

RELIANCETATA

INTERPRETATION

Investors who have already invested in mutual fund they all want advisory services from

Reliance and Tata, in advisory services; we can know NAV (net assets value) of each

fund on daily basis.

So investors want to get those services so that they can take right decision on right time,

if he sees that he is getting loss in investing fund so by this services he can switch from

loss fund to profitable fund

MARKET SHARE OF RELIANCE AND TATA

Page 44: Sandip Raut

16%

4%

80%

SHARE

RELIANCETATAOTHER

INTERPRETATION

Reliance market have a total share of 16% in the current market where as Tata constitute

of 4% of total market share and 80% of other mutual fund institute.

AVERAGE ASSETS UNDER MANAGEMENT IN BILLION

Page 45: Sandip Raut

AVG AUM0

200

400

600

800

1000

1200

RELIANCETATA

INTERPRETATION

Reliance mutual fund have a average asset of 952.28 billions and Tata mutual fund have a

average asset of 172.66 billions.

Page 46: Sandip Raut

WHICH TYPE OF INSTRUMENT CURRENTLY INVESTED IN

MUTUAL FUND(EQUTIES)

DEBT FUNDS

CURRENCY & COMMODITIES

OTHERS

0% 5% 10% 15% 20% 25% 30% 35% 40%

Series1

INTERPRETATION:

Now a day’s most of the investors want to invest in others funds such as:

FD’s

INSURANCE

Etc.

After that the investors mostly focus on to invest in debt market just for reducing the risk.

After that they want to invest in equity market for getting more profit.

Then investors want to invest in commodity market just for saving money in near future.

Page 47: Sandip Raut

A PERSON WANTS TO TAKE INFORMATION ABOUT MUTUAL

FUND

YES

NO

0% 10% 20% 30% 40% 50% 60% 70%

Series1

INTERPRETATION:

By above analysis we can know that most of the clients,

Persons or investors want to know about the mutual fund benefits, schemes, and

Each and every information, because now a days every persons or investors want to

Get information about everything so that on time he can utilize optimum utilization Of resources

in a right way and could get profit.

INVESTORS INTERESTED TO INVEST IN MUTUAL FUND

Page 48: Sandip Raut

INTERESTED NOT INTERESTED0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Series1

INTERPRETATION:

After analysis we have seen that most of the investors are not interested to invest in mutual fund

just because of:

Past image of mutual fund.

Because of unawareness.

They are unaware about the mutual fund benefits.

They don’t want to take risk

FINDINGS

Page 49: Sandip Raut

In Equity Schemes we have taken Reliance Vision Fund and Reliance growth

Fund . Both schemes are open ended but Reliance Growth fund is more valuable

for Reliance Mutual Fund than reliance vision Fund. InDeft scheme we have taken

Reliance money Manager Fund and Reliance Liquidity Fund .In it boths schemes

are open ended but reliance money manager is more beneficial

for reliance mutual fund .In sector specific scheme we have taken Reliance media

and entertainment fund and Reliance Parma fund scheme both is more efficient for

Reliance Mutual

Fund.Above all the schemes of Reliance Mutual Fund Debtschemes are best

schemes for Mutual Fund .There is a Good investment plan and saving scheme in

reliance Mutual Fund.

SUGGESTION AND RECOMMENDATION

Page 50: Sandip Raut

• Reliance Money have to add some extra features in itwith aggressive marketing

promotional strategy.

• Advertisement on television is the main source of attraction so the company must

advertise its products heavily.

• Product must be improved .

• There should be provision of complain suggestion boxes at each branch.

It was a gratifying experience to be in corporate and work as a trainee with the brand

name of Reliance Mutual Fund. During my Project I came to know much more about the

mutual funds, how they work, what are the norms of SEBI to to regulate the AMCs. I

have learnt so many things also which I cannot explain in my report. I got the opportunity

during my project to comparatively analyze two funds and give the recommendations

also.

Whatever I learnt during the completion of my project on behalf of that I am

recommending to the Reliance Mutual Funds

Asset management companies need to proper educate the investor to increase the

awareness and break the myths about mutual fund.

Mutual and distributors like Reliance Mutual Fund should start a campaign to

educate the investors: there is a need of advertisement also to attract the investor.

AMCs should target rural market as a potential hub of customer. In rural area

people are getting wealth gradually and need a guidance to shift their portfolio

from old sources to new and modern sources.

Sales force should be well educated about every aspect of mutual fund so that

they can solve the queries of the investors.

CONCLUSION

Page 51: Sandip Raut

Mutual Fund investment is better than other raising fund .Reliance Mutual Fund have

good returns in investment .A good brand is always welcomed over here people aremore

aware and conscious for the brand so they go for theyare ready to spend some extra bucks

for the quality .At last all con be concluded by that Reliance Money is stillgrowing

industry in India and is still exploring its potentialand prospects in here.

To conclude, I would like to say that studying on comparative analysis between Reliance

mutual funds and Tata mutual funds was a great experience and I have gained a lot of

practice knowledge and has added to my confidence level.

Page 52: Sandip Raut

ANNEXURE

NAME: ___________________________________

DESIGNATION/ADDRESS: ____________________________________________

EMAIL ID: ______________________

PHONE NO.:___________________

1) As a financial advisor which investment options you will suggest your

customers:

a) Shares ( )

b) Insurance ( )

c) Mutual fund ( )

d) Fixed deposit ( )

2) Please indicate reason for choosing above :

a) Return ( )

b) Risk ( )

c) Safety ( )

d) Tax benefit ( )

e) Others ( )

Page 53: Sandip Raut

3) Do you know about the mutual fund services provided by the Reliance :

a) Yes ( )

b) No ( )

4) Are you interested to invest in mutual fund :

a) Yes ( )

b) No ( )

5) Do you invest your money on which basis :

a) Return ( )

b) Safety ( )

c) Tax saving ( )

d) Others ( )

6) Do you want to collect information about mutual fund investment:

a) Yes ( )

b) No ( )

7) Will you like to work in Reliance Mutual Fund Ltd. , which deals with

mutual fund :

a) Yes ( )

b) No ( )

Page 54: Sandip Raut

8) In which co. you believe more :

a) Tata

b) Reliance

9) Do you want the advisory services of Reliance :

a) Yes ( )

b) No ( )

10) Which type of instrument are currently invested in :

a) Mutual fund (equities) ( )

b) Debt funds ( )

c) Currency & Commodities ( )

d) Others_____________________

Page 55: Sandip Raut

RELIANCE MUTUAL FUNDSBalance Sheet

PARTICULARSAs at

31 March 2015As at

31 March 2014EQUITY AND LIABILITIESShareholders' Funds :-(a)Share capital 112,700,000 114,699,900(b)Reserves and surplus 13,178,452,122 12,090,701,835

13,291,152,122 12,205,401,735Non Current Liabilities :-Long - term provisions 23,506,128 28,240,641

23,506,128 28,240,641Current Liabilities :-(a)Trade payables 730,429,292 502,690,676(b)Other current liabilities 332,506,316 347,207,150(c)Short - term provisions 2,053,775,247 1,918,590,737

3,116,710,855 2,768,488,563

TOTAL 16,431,369,105 15,002,130,939

ASSETSNon-current assets :-(a)Fixed assetsTangible assets 110,929,611 157,101,343Intangible assets 25,574,407 36,502,380(b)Non - current investment 3,240,049,934 3,135,684,150(c)Deferred tax assets 81,922,429 80,740,943(d)Long - term loans and advances

1,067,035,917 7,830,379,125

(e)Other non - current assets 36,635,340 34,189,8264,562,147,638 11,274,597,767

Current assets :-(a)Current investment 4,297,221,801 2,598,116,439(b)Trade receivables 87,515,490 121,525,379(c)Cash and bank balance 309,598,416 403,395,136(d)Short - term loans and advances

7,042,156,532 558,505,997

(e)Other current assets 132,729,228 45,990,22111,869,221,467 3,727,533,172

TOTAL 16,431,369,105 15,002,130,939

Page 56: Sandip Raut

TATA MUTUAL FUNDSBalance Sheet

PARTICULARSAs at

31 March 2015As at

31 March 2014EQUITY AND LIABILITIESShareholders' Funds(a)Share capital 5,509.53 5,509.53(b)Reserves and surplus 201,047.72 192,280.21

206,557.25 197,789.74Non Current LiabilitiesLong - term provisions 357.34 356.02

Current Liabilities(a)Trade payables 668.30 656.70(b)Other current liabilities 157.44 185.56(c)Short - term provisions 11,015.35 10.393.13

11,841.09 11,235.39

TOTAL 218,755.65 209,381.15

ASSETSNon-current assets(a)Fixed assetsTangible assets 18.72 24.34Intangible assets 0.54 0.94(b)Non - current investment 192,365.35 179,903.51(c)Deferred tax assets - -(d)Long - term loans and advances

311.51 317.59

192,696.12 180,246.34

Current assets(a)Current investment 21,796.19 14,257.02(b)Trade receivables 176.65 0.68(c)Cash and bank balance 1,150.85 4,224.30(d)Short - term loans and advances

621.65 8,449.88

(e)Other current assets 2,314.22 2,202.9326,059.56 29,134.81

TOTAL 218,755.68 209,381.15

Page 57: Sandip Raut

RELIANCE MUTUAL FUNDS

Statement of Profit and Loss

PARTICULARSFor the year ended

31 March 2015For the year ended

31 March 2014INCOMERevenue from operations - management fees

6,618,042,633 5,899,816,525

Other income 1,183,717,598 1,226,924,127

Total revenue 7,801,760,231 7,126,740,652

ExpenditureEmployee benefits expense 1,365,573,911 1,325,231,804Administrative and other expenses 1,530,660,681 1,176,233,865Marketing and publicity expenses 940,073,456 1,403,693,127Depreciation 71,734,396 78,417,643Diminution in value of long term investments

- 6,325,073

Total expenses 3,908,042,444 3,989,901,512

Profit before exceptional items and tax

3,893,717,787 3,136,839,140

Exceptional items 57,565,191 556,411,399Profit before tax 3,836,152,596 2,580,427,741

Income tax expenseCurrent tax (Net of MAT credit entitlement)

(797,000,000) (605,744,875)

Reversal of previous year provision

(910,196) 3,563,719

MAT credit asset 398,576,034 304,407,718MAT credit utilized (398,576,034) (304,407,718)Deferred tax credit 1,181,487 (2,864,663)Profit After Tax 3,039,423,887 1,975,381,922

Page 58: Sandip Raut

TATA MUTUAL FUNDS

Statement of Profit And Loss

PARTICULARSFor the year ended

31 March 2015For the year ended

31 March 2014INCOMERevenue from operations - management fees

12,674.35 14,081.46

Profit on sale of long term investment (net)

9,413.38 6,501.69

Other income 216.94 33.43

Total revenue 22,304.67 20,616.58

ExpenditureEmployee benefits expense 725.68 936.38Depreciation and amortization expenses

10.90 27.53

Other expenses 800.25 500.94

Total expenses 1,536.83 1,464.55

Profit before tax 20,767.84 19,152.03

Income tax expenseCurrent tax (Net of MAT credit entitlement)

2,900.00 2,438.11

Deferred tax credit - -Profit After Tax 17,867.84 16,713.92

Page 59: Sandip Raut

BIBLIOGRAPHY

https://www.reliancemutual.com

http://www.tatamutualfund.com

http://en.wikipedia.org/wiki/Mutual_funds_in_India

http://www.ril.com/html/aboutus/about_brands.html

http://www.tata.co.in/businesses/sectorsindex/Business-sectors