ICICI BANK

Karnataka University Dharwad

Global College of Business Management & IT Akshay colony, Hubli.

An empirical study on

TAX-PLANNING OF SALARIED PERSONS

HUBLI Guide Prof. Jayshree K. Submitted by Mr. Pandurang K.Hanamasagar URN: 09B11822 BBA VI SEMESTER 2011-2012
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GLOBAL COLLEGE OF BUSINESS MANAGEMENT & IT Akshay colony, Hubli. (Affiliated to Karnataka University, Dharwad and recognized by Govt. of Karnataka)

CERTIFICATE This is to certify that Mr. Pandurang K.Hanamasagar URN:09b11822 has satisfactorily completed his project entitled TAX-PLANNING OF SALARIED PERSONS, HUBLI. In the partial fulfillment of the requirement of bachelor of business administration, during the academic year 2011-12.

Internal Guide Prof. Jayshree K.M.com

External Guide Mr. Anand.Shenoy

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DECLARATION

I hereby affirm that this project report A Project on A Study on the Customer relationship Management Adopted By ICICI Prudential Insurance Company Ltd HUBLI has been under taken by me during the period 1st December 2011 to 30th December 2011 as a part of my academic curriculum.

I further declare that, this project report is the result of my own efforts and has not been submitted earlier to any other college/university for award of any other degree.

DATE:

_________

Bhramkumar.S.K

Reg.no: 08b14803

PLACE: HUBLI

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ACKNOWLEDGEMENT
The successful accomplishment of any task is incomplete without acknowledging the personalities who have contributed, assisted and inspired me. I would like to thank my parents for supporting me in doing this project. I would like to thank KARNATAK UNIVERSITY DHARWAD for giving an opportunity to work on a valuable project. At the outset I would like to acknowledge my sincere gratitude to ICICI life insurance pvt ltd for allowing me to take my implant training at their in the same. I express my sincere thanks to Prof.Ravikumar.Kabbinad for rendering her kind cooperation and help without which my project would have been incomplete. At the same time I would like to take this opportunity to thank our beloved Principal Prof.Ravikumar.Kabbinad and BBA Co-ordinator Dr.Mahesh.Deshpande who supported me and for their guidance of this project. I would like to express my gratitude to all those who directly and indirectly assisted me in completing the project report.

Bhramkumar.S.K Reg.no: 08b14803

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EXECUTIVESUMMARY

In any organization, the two important financial statements are the Balance sheet & Profit and loss account of the business. Balance sheet is a statement of the financial position of an enterprise at a particular point of time. Profit and loss account shows the net profit or net loss of a company for a specified period of time. When these statements of the last few year of any organization are studied and analyzed, significant conclusions may be arrived regarding thechanges in the financial position, the important policies followed and trends in profit and loss etc. Analysis and interpretation of the financial statement has now become an important technique of credit appraisal. The investors, financial experts, management executives and the bankers all analyze these statements. Though the basic technique of appraisal remains the same in all the cases butt h e a p p r o a c h a n d t h e e m p h a s i s i n a n a l y s i s v a r y . A b a n k e r i n t e r p r e t s t h e financial statement so as to evaluate the financial soundness and stability, the liquidity position and the profitability or the earning capacity of borrowingc o n c e r n . A n a l y s i s o f f i n a n c i a l s t a t e m e n t i s n e c e s s a r y b e c a u s e i t h e l p i n depi c t i n g t he f i n an ci al po si t i o n o n t h e b a si s o f p a st an d cu r r ent r e co r ds .A n a l y s i s o f f i n a n c i a l s t a t e m e n t h e l p s i n m a k i n g t h e f u t u r e d e c i s i o n a n d s trategies. Therefore, it is very necessary for every organization whether it is a financial or manufacturing etc. to make financial statement and to analyze it.

INTRODUCTION Objective of Study

The main objectives of this project are the following: To Study About Fundamental Analysis of ICICI Bank. Company Profile
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ICICI BANK: ICICI Bank is Indias second-largest bank with total assets of 363866.83 Crores at March 31, 2010.and profit after tax of Rs. 41.58 billion for the year ended March 31, 2010 . ICICI Bank is the most valuable bank in India in terms of market capitalization and is ranked second Amongst all the companies listed on the Indian stock exchanges. In terms of free float market capitalization*.The Bank has a network of about 1308 Branches and 3,950 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customer through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Center and representative offices in the UnitedStates, United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. UK subsidiary has established a branch in Belgium.ICICI Bank's Equity shares are listed in India on Bombay Stock Exchange ( B S E ) an d th e Na ti on al S t oc k E x c h an g e ( NS E ) of In d i a L i mi t ed an d i ts American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

HISTORY:

ICICI Bank was originally promoted in 199 4 b y I CI CI L i mi t ed , an In di an financial institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all Stock amalgamation i n f i s c a l 2 0 0 1 , a n d s e c o n d a r y m a r k e t s a l e s b y I C I C I t o institutional investors in fiscal 2001
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and fiscal 2002. ICICI was formed in 1955at the initiative of the World Bank, the Government of India and representatives of I n d i a n i n d u s t r y . T h e p r i n c i p a l o b j e c t i v e w a s t o c r e a t e a d e v e l o p m e n t fina ncial institution for providing medium-term and long-term project financingt o In di an bu s i ne ss es . In t h e 1 99 0s , IC IC I t ra ns fo rm ed i t s bu si n e s s f ro m a d evelopment financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimals t rat e gi c a l t er nat i v e fo r bo t h e nt i t i es , an d wo ul d cr e at e t h e o pt i m a l l e gal str ucture for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning feebased income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments,h i gh e r m a r ket s ha r e i n v ar i ou s bu si n es s s e gm ent s, pa rt i c ul ar l y f e eba s e d services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Citst of Gujarat at Ahmedabad in March2002, and by the High Cost of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees

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Economic Analysis The Level of economic Activity has an impact on investment in many ways. If the economy grows rapidly, the industry can also be expected to show rapid growth and vice versa. When the level of economic activity is low, stock prices are low, and when the level of economic activity is high, stock prices are high reflecting the prosperous outlook for sales and profits of the firms. The analysis of macroeconomic environment is essential to understand the behavior of the stock prices .The commonly analyzed Macro economic factors are as follows A) Gross Domestic product ( GDP ) GDP indicates the rates of growth of the economy. GDP represents the aggregate value of the goods and services produced in the economy. GDP consists of personal consumption expenditure, gross private domestic investment and government expenditure on goods and services and net export of goods and services. The estimates of GDP are available on an annual basis. The rate of growth of GDP is around 6% in the nineties. The GDP growth in 2001-02 accelerated to 4.4% compared to 4% of the previous year despite of drought in the country. In the fiscal year Agricultural growth has been reduced from 5.3% to 3.7% whereas Industrial growth has been increased to 6.1% to 3.3%.

Introduction to Banking Sector The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories, non-scheduled banks and scheduled banks. Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership, commercial banks can be further grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old/ new domestic and foreign). These banks have over 67,000 branches spread across the country.

The industry is currently in a transition phase. On the one hand, the PSBs, which are the mainstay of the Indian Banking system are in the process of shedding their flab in terms of excessive manpower, excessive non Performing Assets (Npas) and excessive governmental equity, while on the other hand the private sector banks are consolidating themselves through mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking industry assets are saddled
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with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues from traditional sources, lack of modern technology and a massive workforce while the new private sector banks are forging ahead and rewriting the traditional banking business model by way of their sheer innovation and service. The PSBs are of course currently working out challenging strategies even as 20 percent of their massive employee strength has dwindled in the wake of the successful Voluntary Retirement Schemes (VRS) schemes. The private players however cannot match the PSBs great reach, great size and access to low cost deposits. Therefore one of the means for them to combat the PSBs has been through the merger and acquisition (M& A) route. Over the last two years, the industry has witnessed several such instances. For instance, HDFC Banks merger with Times Bank ICICI Banks acquisition of ITC Classic, Anagram Finance and Bank of Madura. Centurion Bank, IndusInd Bank, Bank of Punjab, Vysya Bank are said to be on the lookout. The UTI bank- Global Trust Bank merger however opened a Pandoras box and brought about the realization that all was not well in the functioning of many of the private sector banks.

Aggregate Performance of the Banking Industry Aggregate deposits of scheduled commercial banks increased at a compounded annual average growth rate (Cagr) of 17.8 percent during 1969-99, while bank credit expanded at a Cagr of 16.3 percent per annum. Banks investments in government and other approved securities recorded a Cagr of 18.8 percent per annum during the same period.

In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP) growth of only 6.0 percent as against the previous years 6.4 percent. The WPI Index (a measure of inflation) increased by 7.1 percent as against 3.3 percent in FY00. Similarly, money supply (M3) grew by around 16.2 percent as against 14.6 percent a year ago.

The growth in aggregate deposits of the scheduled commercial banks at 15.4 percent in FY01 percent was lower than that of 19.3 percent in the previous year, while the growth in credit by SCBs slowed down to 15.6 percent in FY01 against 23 percent a year ago.
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The industrial slowdown also affected the earnings of listed banks. The net profits of 20 listed banks dropped by 34.43 percent in the quarter ended March 2001. Net profits grew by 40.75 percent in the first quarter of 2000-2001, but dropped to 4.56 percent in the fourth quarter of 2000-2001.

Interest Rate Scene The two years, post the East Asian crises in 1997-98 saw a climb in the global interest rates. It was only in the later half of FY01 that the US Fed cut interest rates. India has however remained more or less insulated. The past 2 years in our country was characterized by a mounting intention of the Reserve Bank Of India (RBI) to steadily reduce interest rates resulting in a narrowing differential between global and domestic rates.

The RBI has been affecting bank rate and CRR cuts at regular intervals to improve liquidity and reduce rates. The only exception was in July 2000 when the RBI increased the Cash Reserve Ratio (CRR) to stem the fall in the rupee against the dollar. The steady fall in the interest rates resulted in squeezed margins for the banks in general.

Governmental Policy After the first phase and second phase of financial reforms, in the 1980s commercial banks began to function in a highly regulated environment, with administered interest rate structure, quantitative restrictions on credit flows, high reserve requirements and reservation of a significant proportion of lendable resources for the priority and the government sectors. The restrictive regulatory norms led to the credit rationing for the private sector and the interest rate controls led to the unproductive use of credit and low levels of investment and growth. The resultant financial repression led to decline in productivity and efficiency and erosion of profitability of the banking sector in general.

This was when the need to develop a sound commercial banking system was felt. This was worked out mainly with the help of the recommendations of the Committee on the Financial System (Chairman: Shri M. Narasimham), 1991. The resultant financial sector reforms called for interest
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rate flexibility for banks, reduction in reserve requirements, and a number of structural measures. Interest rates have thus been steadily deregulated in the past few years with banks being free to fix their Prime Lending Rates(PLRs) and deposit rates for most banking products. Credit market reforms included introduction of new instruments of credit, changes in the credit delivery system and integration of functional roles of diverse players, such as, banks, financial institutions and nonbanking financial companies (Nbfcs). Domestic Private Sector Banks were allowed to be set up, PSBs were allowed to access the markets to shore up their Cars.

Indian Banking Sector Analysis (2006-2007), provides extensive research and objective analysis on the growing banking industry, their product quality, and their services in India. This report helps clients to analyze the leading-edge opportunities critical to the success of the banking Industry in India. Detailed data and analysis helps an investor, financial service providers, and global banking players navigate the evolving market of banks in India.

Key Findings: -The nationalized banks have more branches than any other types of banks in India. Now there are about 33,627 Branches in India, as on March 2005. -Investments of scheduled commercial banks (SCBs) also saw an increase from Rs 8,04,199 crore in March 2005 to Rs 8,43,081 crore in the same month of 2006. -India's retail-banking assets are expected to grow at the rate of 18% a year over the next four years (2006-2010). -Retail loan to drive the growth of retail banking in future. -Housing loan account for major chunk of retail loan

BOARD OF DIRECTORS MR. N.Vaghul (CHAIRMAN) MR. Sridar Iyengar

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MR. Lakshmi N. Mittal MR. Narendra Murkumbi MR. Anupam Puri Mr. Arun Ramanathan MR. M. K. Sharma MR. P.M. Sinha Prof. Marti G. Subrahmanyam MR. T. S. Vijaya MR. V. Prem Wasta MR. K. V. Kamath (MANAGING DIRECTOR & CEO) MR. Chanda Kochhar (JOINT MANAGING DIRECTOR) MR. V. Vaidyanathan, (EXECUTIVE DIRECTOR) Ms. Madhabi Puri-Buch, Executive Director MR. Sonjoy Chatterjee (EXECUTIVE DIRECTOR)

Board Committees

Audit Committee

Board Governance, Remuneration & Nomination Committee

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Mr. Sridar Iyengar, Chairman Mr. Homi Khusrokhan, Mr. M.S. Ramachandran Mr. V. Sridar Corporate Social Responsibility Committee Customer Service Committee Mr. Sridar Iyengar, Chairman Mr. K.V. Kamath Mr. Homi Khusrokhan

Mr. M.S. Ramachandran, Chairman Mr. K.V. Kamath, Chairman Mr. Arvind Kumar Dr. Tushaar Shah Ms. Chanda Kochhar Mr. M.S. Ramachandran Mr. V. Sridar Ms. Chanda Kochhar

Credit Committee Mr. K.V. Kamath, Chairman Mr. M.S. Ramachandran Mr. Homi Khusrokhan Ms. Chanda Kochhar

Fraud Monitoring Committee Mr. V. Sridar, Chairman Mr. K.V. Kamath Mr. Homi Khusrokhan Mr. Arvind Kumar Ms. Chanda Kochhar Mr. Rajiv Sabharwal

Information Technology (IT) Strategy Committee Mr. Homi Khusrokhan, Chairman

Risk Committee

Mr. K.V. Kamath, Chairman

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Mr. K.V. Kamath Mr. Sridar Iyengar Ms. Chanda Kochhar Mr. Sridar Iyengar Mr. Arvind Kumar Mr. V. Sridar Ms. Chanda Kochhar Share Transfer & Shareholders'/ Investors' Grievance Committee Mr. Homi Khusrokhan, Chairman Mr. V. Sridar Mr. N.S. Kannan Committee of Executive Directors Ms. Chanda Kochhar, Chairperson Mr. N.S. Kannan Mr. K. Ramkumar Mr. Rajiv Sabharwal

VISION AND MISSION

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Vision To be the leading provider of financial services in India and major global bank.

Mission

We will leverage our people, technology, speed and financial capital to: B e t h e ba nk e r of f i r st ch oi ce fo r ou r cu st om e rs b y d el i v eri n g high quality, worldclass products and services. Expand the frontiers of our business globally. Play a proactive role in the full realization of Indias potential. Maintain a healthy financial profile and diversify our earnings across businesses and geographies. Maintain high standards of governance and ethics. C ont ri but e po si t i ve l y t o t he v a ri o us c ou nt r i e s an d m a rk et s i n which we operate. Create value for our stakeholders.

RISK ASPECTS OF ICICI BANK

RISK MANAGEMENT

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Risk is an integral part of the banking business and bank aim at delivering superior shareholder value by achieving an appropriate trade-off between risk and returns. Bank is exposed to various risks, including credit risk, market risk an d op er at i o na l ri s k . Ba nk s r i sk m a na ge m e nt st r at e g y i s b as e d o n a cl e a r un derstanding of various risks, disciplined risk assessment and measurement procedures and continuous monitoring. The policies and procedures established for this purpose are continuously benchmarked with international best practices. Bank has two dedicated groups, the RISK MANAGEMENT GROUP (RMG) a n d C O M P L I A N C E & A U D I T G R O U P ( C A G ) w h i c h i s r e s p o n s i b l e f o r ass essment, management and mitigation of risk in ICICI Bank. These groups from parts of the corporate center are completely independent of all business operations and are accountable to the Risk and Audit committees of the Board of directors. RMG is further organized into the Credit Risk Management group, M a r k e t R i s k M a n a g e m e n t g r o u p , a n d R e t a i l R i s k M a n a g e m e n t g r o u p a n d Operational Risk Management group. CAG is further organized into the Credit Policies, RBI Inspection & Anti-Money Laundering Group and the Internal Audit Group.

CREDIT RISK Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender. Bank measure, monitor and manage credit risk for each borrower and also at the portfolio level. Bank has standardized credit-approval processes, which include a well-established procedure for comprehensive credit appraisal and rating. ICICI Bank has well developed internal credit rating methodologies for rating obligors. The rating factors in quantitative, qualitative issues and credit enhancement features specific to the transaction. The rating serves as a key input in the approval as well as post-approval credit processes. Industryk n o wl ed ge i s con st ant l y up da t e d t h r ou gh fi el d v i si t s and i n t e r a ct i ons wi t h clients, regulatory bodies and industry experts. In retail credit operations, the Board or a Board Committee approves all products, policies and authorizations Credit approval authority lies only with the credit officers who are distinct from
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the sales team. Credit scoring models are used in the case of certain products like credit cards. External agencies such as field investigation agenciesand c re di t p ro c essi n g a gen ci es ar e us ed t o fa ci l i t at e a com p re h ens i v e du e diligence process including visits to offices and homes in the case of loans to individual borrowers.

MARKET RISK

Market risk is the risk of loss resulting from changes in interest rates, foreign currency exchange rates, equity prices and commodity prices. The objective of market risk management is to minimize the impact of losses on earnings and equity capital due to market risk. Market risk policies include the Investment Policy and the Asset-Liability Management (ALM) Policy. The policies are approved by the Board of Directors. The Asset Liability Management Committee (ALCO) of the Board of Directors stipulate liquidity and interestrate risk limits, monitors adherence to limits, articulates the organisationsi nt e r e s t ra t e v i e w a nd d et e rm i n es t he st r at e g y i n l i ght of t he cu rr ent and ex p e ct ed e nv i ro nm ent . Th es e pol i ci es a nd p ro c ess e s a r e ar t i cul at e d i n t he ALPM policy. The investment policy addresses issues related to investment in various trading products. RMG exercises independent control over the processo f m a r k e t r i s k m a n a g e m e n t a n d r e c o m m e n d s c h a n g e s i n p r o c e s s a n d methodologies for measuring market risk Interest rate risk is measured throught h e u s e o f r ep ri ci n g ga p an al ys i s an d d u ra t i o n an al ys i s. Li q ui d i t y r i s k i s m e as u r ed t h r ou gh ga p a na l ys i s. B an ks e ns u r e a de qu at e l i q ui d i t y at al l t i m ethrough systematic funds planning and maintenance of liquid investment as well as focusing on more stable funding sitsces such as retail deposits. ICICI Bank limit exposure to exchange rate risk by stipulating position limits. The treasury Middle Office Group monitors the asset-liability position underthe supervisionof t he A LC O. Th e T r ea sur y M i d dl e Of fi c e Gr ou p i s al s o r es p o n s i bl e f or p r o c e s s i n g t r e a s u r y t r a n s a c t i o n s , t r a c k i n g t h e d a i l y f u n d s p o s i t i o n a n d complying wi t h al l t r e as ur y r e l at e d m an a ge m e nt a nd r e gul at o r y r e po rt i n g requirements.
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OPREATIONAL RISK Operational risk is the risk of loss that can result from a variety of factors , i n c l u d i n g f a i l u r e t o o b t a i n p r o p e r i n t e r n a l a u t h o r i z a t i o n s , i m p r o p e r l ydoc um e nt ed t ra ns a ct i on s, f ai l ur e o f o p er at i on al an d i n fo rm at i o n s e cu ri t y p r o ce du r es , com put e r s ys t e m s, so ft w ar e o r eq ui p m ent , f r aud , i n ad eq u a t e training and employee errors. Banks approach to operational risk managements designed to mitigate operational risk by maintaining comprehensive systemof internal controls, e s t a b l i s h i n g s y s t e m s a n d p r o c e d u r e s t o m o n i t o r transactions, maintaining key back-up procedures and undertaking regular contingency planning. Effective operational risk management system would ensure that bank has sufficient information to make appropriate decisions about additional controls, adjustments to controls, or other risk responses. Operational risk management policy aims at minimizing losses and customer dissatisfaction due to failure in processes, focusing on flaws in products and their design that can expose the bank to losses due to fraud, analyzing the impact of failures in systems, developing mitigants to minimize the impact and developing plans to m e et ex t er n al sho c k s t h at ca n ad v er s el y i m p a ct c ont i nu i t y i n t h e b an k s operations.

SUBSIDIARY COMPANIES

DOMESTIC SUBSIDIARIES ICICI Home Finance Company Limited

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ICICI Investment Management Company Limited

ICICI Lombard General Insurance Company Limited

ICICI Prudential Life Insurance Company Limited

ICICI Securities Limited

ICICI Trusteeship Services Limited

ICICI Venture Funds Management Company Limited

ICICI Securities Primary Dealership Limited

ICICI Prudential Asset Management Company Limited

ICICI Prudential Trust Limited

INTERNATIONAL SUSIDIARIES ICICI Bank Canada

ICICI Bank Eurasia Limited Liability Company

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ICICI International Limited

ICICI Securities Holding Inc

ICICI Securities Inc

ICICI Bank Uk Limited

ICICI PRUDENTIAL INSURANCE COMPANY

ICICI Life continued to maintain its market leadership among private sector life insurance companies with a market share of 12.71% on the basis of weighted received premium. Life insurance companies worldwide make losses in the initial years, in view of business set-up and customer
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acquisition costs in the i ni t i al ye a r s as w el l a s r es er vi n g fo r a ct ua ri al l i abi l i t y. W hi l e t h e gr ow i n gop e r a t i ons o f IC IC I Li fe h ad a n e ga t i v e i m p a c t o f R s. 10 .3 1 b i l l i o n o n t h e Banks consolidated profit after tax in FY2008 on account of the above reasons, the companys unaudited New Business Achieved Profit (NBAP) for FY2008was Rs. 12.54 billion as compared to Rs. 8.81 billion in fiscal 2007.

ICICI LOMBARD GENERAL INSURANCE COMPANY

ICICI Lombard General Insurance Company (ICICI General) enhanced itsleadership position with a market share of about 29.8% among private sector general insurance companies and an overall market share of about 11.9% during fiscal 2008. ICICI Generals gross written premium grew by 11.4% from Rs.30.03 billion in fiscal 2007 to Rs. 33.45 billion in fiscal 2008. ICICI General is required to expense upfront, on origination of a policy, all sitscing expenses related to the policy. While ICICI Generals profit after tax for Rs. 1.03 billion in fiscal 2008, a growth of 50.5% over fiscal 2007.The combined ratio is the sum of n et cl ai m s a nd ex pe ns es a s a pe r c ent a ge o f pr em i um s a nd i nd i ca t e s t he surplus generated on an annualized basis from the business written during a period (excluding investment income).

ICICI PRUDENTIAL AMC & TRUST

ICICI Prudential Asset Management Company (ICICI AMC) was the secondl a r g e s t a s s e t m a n a g e m e n t c o m p a n y i n I n d i a w i t h a v e r a g e a s s e t s u n d e r management of Rs. 543.55 billion for March 2008. ICICI AMC achieved a profit after tax of Rs. 0.82 billion in fiscal 2008, a growth of 69.7% over fiscal2007.

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ICICI SECURITIES LIMITED

The securities and primary dealership business of the ICICI group have been reorganised. ICICI Securities Limited has been renamed as ICICI SecuritiesP ri m ar y D e al e rshi p Li m i t e d. IC IC I B r o ke r a ge S e r vi c es Li m i t e d h as b ee n renamed as ICICI Securities Limited and has become a direct subsidiary of ICICI Bank. ICICI Securities achieved a profit after tax of Rs. 1.50 billion and ICICI Securities Primary Dealership achieved a profit after tax of Rs. 1.40 billion, in fiscal 2008.

ICICI VENTURE FUNDS MANAGEMENT COMPANY LIMITED

IC IC I V e nt u r e F un d s M an a ge m e nt C om pa n y Li m i t ed ( IC IC I V e nt ur e ) s t re n gt h e n ed i t s l e a de rs hi p p os i t i on i n p ri va t e eq ui t y i n In di a, wi t h f un ds und e r m an a ge m e nt o f ab o ut R s. 95.50 billion at year-end fiscal 2008. ICICI Venture achieved a profit after tax of Rs. 0.90 billion in fiscal 2008 compared to Rs. 0.70 billion in fiscal 2007
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Awards in the Year 2011:

ICICI Bank was ranked 12th in the list of 500 largest companies by Fortune India. The Bank was also ranked 18th in Twitter and 17th in Linked in list of India's top 25 companies leveraging social media by Fortune India Ms. Chanda Kochhar, Managing Director & CEO, received the "Corporate Social Responsibility Award", at the 10th Asia Business Leaders Awards (ABLA) by CNBC
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ICICI Bank awarded "House Of The Year (India)", by Asia Risk magazine, for eighth time in a row since 2004 For second year in a row, ICICI Bank was awarded the "Most Tech-Friendly Bank", by Business world Mr. N. Vaghul, Former Chairman, ICICI Bank, received the "Lifetime Achievement Award", by Business world

TOOLS & ANALYSIS Ratio Analysis

1) Liquidity Ratio
Current Ratio = Current Asset Current Liability

2) Turn Over Ratio

Fixed Asset Turn Over Ratio = Net Sale F.A Total Asset Turn Over Ratio = Net Sales Total Assets

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3) Leverage Ratio
Debt to Asset Ratio = Total Debt Total Assets

Debt to Equity = Total Debt Net Worth Interest Coverage ratio = EBIT Interest

4) Profitability Ratio
Net Profit Ratio = PAT X 100 Sales Returns on Assets = Net Income X 100 Total Assets

Return on Equity = Net Income Net worth

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5) Valuation Ratio
Book Value of share = Net worth No. of Equity Share

6) Intrinsic Value of Share = P/E ratio over the Years X EPS

Balance Sheet
Balance Sheet of ICICI Bank Mar '11 12 mths Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 1,151.82 1,151.82 0.29 0.00 53,938.82 0.00 55,090.93 225,602.11 109,554.28 335,156.39 15,986.35 406,233.67 Mar '11 12 mths Assets Cash & Balances with RBI ------------------- in Rs. Cr. ------------------Mar '10 12 mths 1,114.89 1,114.89 0.00 0.00 50,503.48 0.00 51,618.37 202,016.60 94,263.57 296,280.17 15,501.18 363,399.72 Mar '10 12 mths Mar '09 12 mths 1,463.29 1,113.29 0.00 350.00 48,419.73 0.00 49,883.02 218,347.82 67,323.69 285,671.51 43,746.43 379,300.96 Mar '09 12 mths Mar '08 12 mths 1,462.68 1,112.68 0.00 350.00 45,357.53 0.00 46,820.21 244,431.05 65,648.43 310,079.48 42,895.39 399,795.08 Mar '08 12 mths Mar '07 12 mths 1,249.34 899.34 0.00 350.00 23,413.92 0.00 24,663.26 230,510.19 51,256.03 281,766.22 38,228.64 344,658.12 Mar '07 12 mths

20,906.97

27,514.29

17,536.33

29,377.53 18,706.88

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Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs) 13,183.11 216,365.90 134,685.96 9,107.47 4,363.21 4,744.26 0.00 16,347.47 406,233.67 883,774.77 47,864.06 478.31 11,359.40 181,205.60 120,892.80 7,114.12 3,901.43 3,212.69 0.00 19,214.93 363,399.71 694,948.84 38,597.36 463.01 12,430.23 218,310.85 103,058.31 7,443.71 3,642.09 3,801.62 0.00 24,163.62 379,300.96 803,991.92 36,678.71 444.94 8,663.60 225,616.08 111,454.34 7,036.00 2,927.11 4,108.89 0.00 20,574.63 399,795.07 18,414.45 195,865.60 91,257.84 6,298.56 2,375.14 3,923.42 189.66 16,300.26 344,658.11

371,737.36 177,054.18 29,377.55 22,717.23 417.64 270.37

Profit & Loss A/c

Profit & Loss account of ICICI Bank Mar '11 12 mths Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses 25,974.05 7,108.91 33,082.96 16,957.15 2,816.93 3,785.13 562.44 3,809.93 0.00 8,594.16 2,380.27 27,931.58 Mar '11 12 mths Net Profit for the Year Extraordionary Items Profit brought forward 5,151.38 -2.17 3,464.38 25,706.93 7,292.43 32,999.36 17,592.57 1,925.79 6,056.48 619.50 2,780.03 0.00 10,221.99 1,159.81 28,974.37 Mar '10 12 mths 4,024.98 -0.09 2,809.65 31,092.55 8,117.76 39,210.31 22,725.93 1,971.70 5,977.72 678.60 4,098.22 0.00 10,795.14 1,931.10 35,452.17 Mar '09 12 mths 3,758.13 -0.58 2,436.32 30,788.34 8,878.85 39,667.19 23,484.24 2,078.90 5,834.95 578.35 3,533.03 0.00 10,855.18 1,170.05 35,509.47 Mar '08 12 mths 4,157.73 0.00 998.27 22,994.29 6,962.95 29,957.24 16,358.50 1,616.75 4,900.67 544.78 3,426.32 0.00 8,849.86 1,638.66 26,847.02 Mar '07 12 mths 3,110.22 0.00 293.44 ------------------- in Rs. Cr. ------------------Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths Mar '07 12 mths

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Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves Proposed Dividend/Transfer to Govt Balance c/f to Balance Sheet Total 8,613.59 0.00 1,612.58 202.28 44.73 140.00 478.31 1,780.29 0.26 1,814.86 5,018.18 8,613.59 6,834.54 0.00 1,337.86 164.04 36.10 120.00 463.01 1,867.22 1.04 1,501.90 3,464.38 6,834.54 6,193.87 0.00 1,224.58 151.21 33.76 110.00 444.94 2,008.42 0.01 1,375.79 2,809.65 6,193.87 5,156.00 0.00 1,227.70 149.67 37.37 110.00 417.64 1,342.31 0.01 1,377.37 2,436.32 5,156.01 3,403.66 0.00 901.17 153.10 34.59 100.00 270.37 1,351.12 0.00 1,054.27 998.27 3,403.66

Yearly Results
Yearly Results of ICICI Bank ------------------- in Rs. Cr. -------------------

Mar '11 Sales Turnover Other Income Total Income Total Expenses Operating Profit Profit On Sale Of Assets Profit On Sale Of Investments Gain/Loss On Foreign Exchange VRS Adjustment Other Extraordinary Income/Expenses Total Extraordinary Income/Expenses Tax On Extraordinary Items Net Extra Ordinary Income/Expenses Gross Profit Interest PBDT Depreciation Depreciation On Revaluation Of Assets PBT Tax Net Profit Prior Years Income/Expenses Depreciation for Previous Years Written Back/ Provided 25,974.05 6,647.90 32,621.95 8,904.09 17,069.96 --------23,717.86 16,957.15 6,760.71 --6,760.71 1,609.33 5,151.38 ---

Mar '10 25,706.93 7,477.65 33,184.58 10,246.69 15,460.24 --------22,937.89 17,592.57 5,345.32 --5,345.32 1,320.34 4,024.98 ---

Mar '09 31,092.55 7,603.72 38,696.27 10,853.37 20,239.18 --------27,842.90 22,725.93 5,116.97 --5,116.97 1,358.84 3,758.13 ---

Mar '08 30,788.34 8,810.77 39,599.11 11,058.77 19,729.57 --------28,540.34 23,484.24 5,056.10 --5,056.10 898.37 4,157.73 ---

Mar '07 22,994.29 5,929.17 28,923.46 8,916.92 14,077.37 --------20,006.54 16,358.50 3,648.04 --3,648.04 537.82 3,110.22 ---

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Dividend Dividend Tax Dividend (%) Earnings Per Share Book Value Equity Reserves Face Value ---44.72 -1,151.82 53,938.83 10.00 ---36.10 -1,114.89 50,503.48 10.00 ---33.76 -1,113.29 48,419.73 10.00 ---37.37 -1,112.68 45,357.53 10.00 ---34.58 -899.34 23,413.92 10.00

Liquidity Ratio Current Ratio = Table Particulars/Year Current Assets Current Liabilities Ratio 2007 37121.33 51256.03 0.724 2008 38041.13 65648.43 0.579 2009 29966.56 67323.69 0.445 2010 38873.69 94263.57 0.412 2011 34090.08 109554.28 0.311 Current Asset Current Liability

Table No:

5 4 3 2 1 2004

2011 2010 2009 2008 2007 2006

0.311 0.412 0.445 Year Ratio

0.579 0.724 2008 2010 2012

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Interpretation: Current Ratio shows the ability of the companys payback ability, the higher the current ratio more capable is the company to payback its short term liabilities. The above graph shows that the companys ability to payback has come down gradually.

Turn Over Ratio Fixed Asset Turn Over Ratio = Net Sale F.A Particulars/Year Net Sales Fixed Assets Ratio 2007 22994.29 325951.23 0.070 2008 30788.34 370417.54 0.083 2009 31092.55 361764.63 0.085 2010 25706.93 335885.42 0.076 2011 25974.05 385326.7 0.067

5 4 3 2 1 0

1.398 1.303 1.225 1.215 1.223 500 1000 1500

2011 2010 2009 2008 2007 2000 2500 Ratio Year

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Interpretation: This ratio helps to measure the ability to generate the net sales by investing in fixed asset, higher the ratio more capable is the company to generate the net sales. From the above graph it can be observed that the company has a fluctuating ratio which means its efficiency is varying.

Total Asset Turn Over Ratio = Net Sales Total Assets

Particulars/Year Net Sales Total Assets Ratio

2007 22994.29 344658.11 0.066

2008 30788.34 399795.07 0.077

2009 31092.55 379300.96 0.081

2010 25706.93 363399.71 0.070

2011 25974.05 406233.67 0.063

5 4 3 2 1 0

1.398 1.303 1.225 1.215 1.223 1000

2011 2010 2009 2008 2007 2000 3000 Ratio Year

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Interpretation: This ratio measures the firms efficiency to use the assets in generating sales, companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover from the above graph it can be observed that the company has performed well in the year 2009 and rest of the years its fluctuating.

Leverage Ratio Debt to Asset Ratio = Total Debt Total Assets

Particulars/Year Total Debt Total Assets Ratio

2007 281766.22 344658.11 0.817

2008 310079.48 399795.07 0.775

2009 285671.51 379300.96 0.753

2010 296280.17 363399.71 0.815

2011 335156.39 406233.67 0.825

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5 4 3 2 1 0 1.398 1.303 1.225 1.215 1.223 500 1000 1500 2011 2010 2009 2008 2007 2000 2500 Ratio Year

Interpretation: This ratio is used to measure a company's financial risk by determining how much of the company's assets have been financed by debt. By the above calculation it can be noted that the ratio is fluctuating, higher the ratio more is the company having debt. The company was good enough in the year 2008 and 2009.

Debt to Equity = Total Debt Net Worth

Particulars/Year Total Debt Net Worth Ratio

2007 281766.22 24663.26 11.424

2008 310079.48 46820.21 6.622

2009 285671.51 49883.02 5.726

2010 296280.17 51618.37 5.739

2011 335156.39 55090.93 6.083

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5 4 3 2 1 2004 2011 2010 2009 2008 2007 2006 1.398 1.303 1.225 1.215 1.223 2008 2010 2012 2014 Year Ratio

Interpretation: It indicates what proportion of equity and debt the company is using to finance its assets. A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. The ideal ratio for this is more than 5, from the above observation it can be noted that the company had a good result in the year 2007 and it gradually went on decreasing, but in the year 2011 its in a uptrend.

Interest Coverage ratio = EBIT Interest

Particulars/Year EBIT Interest Ratio

2007 20006.54 16358.50 1.223

2008 28540.34 23484.24 1.215

2009 27842.90 22785.93 1.225

2010 22937.89 17592.57 1.303

2011 23717.86 16957.15 1.398

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5 4 3 2 1 2004

2011 2010 2009 2008 2007 2006

1.398 1.303 1.225 Year Ratio

1.215 1.223 2008 2010 2012 2014

Interpretation: This ratio is used to determine how easily a company can pay interest on outstanding debt. The lower the ratio, the more the company is burdened by debt expense. When a company's interest coverage ratio is below 1 the company is not generating sufficient revenues to satisfy interest expenses. From the graph it can be noted that the company is generating sufficient revenues and it is improving year on year.

Profitability Ratio Net Profit Ratio = PAT X 100 Sales

Particulars/Year PAT Sales

2007 3110.22 22994.29

2008 4157.73 30788.34

2009 3758.13 31092.55

2010 4024.98 25706.93

2011 5151.38 25974.05

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Ratio 13.526 13.504 12.086 15.657 19.832

5 4 3 2 1 0

478.294 462.99 448.068 420.787 274.237 500 1000 1500

2011 2010 2009 2008 2007 2000 2500 Ratio Year

Interpretation: This ratio measures the managements ability to operate the business with sufficient success and to leave a margin of reasonable compensation to the owners. Higher the net profit margin, adequate is the return to the owners, from the above graph it can be seen that it has a gradual increase in all the years except in the year 2009.

Returns on Assets = Net Income X 100 Total Assets

Particulars/Year Net Income Total Assets

2007 28923.46 344658.11

2008 39599.11 399795.07

2009 38696.27 379300.96

2010 33184.58 363399.71

2011 32621.95 406233.67

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Ratio 8.391 9.904 10.201 9.131 8.030

5 4 3 2 1 0

2011 2010 2009 2008 2007 1000

478.294 462.99 448.068 420.787 274.237 2000 3000 Year Ratio

Interpretation: This ratio used to compare a businesss performance among other industry members, the higher the ratio, the more cash the company has available for reintegration into the company, whether it be in upgrades, replacements or other areas. The study reveals that the company had a good returns on asset ratio in the year 2009 but in general its fluctuating.

Return on Equity = Net Income Net worth

Particulars/Year Net Income

2007 28923.46

2008 39599.11

2009 38696.27

2010 33184.58

2011 32621.95
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Net Worth Ratio 24663.26 1.172 46820.21 0.845 49883.02 0.775 51618.37 0.642 55090.93 0.592

5 4 3 2 1 0 500

2011 2010 2009 2008 2007 1000 1500

478.294 462.99 448.068 420.787 274.237 2000 2500 Year Ratio

Interpretation: Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. The graph shows that the company was much profitable in the year 2007 and less in the year 2011 with the shareholders money.

7) Valuation Ratio
Book Value of share = Net worth No. of Equity Shares Particulars/Year Net Worth 2007 24663.26 2008 46820.21 2009 49883.02 2010 51618.37 2011 55090.93
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89.934 No. of Equity Shares Ratio 274.237 111.268 420.787 111.329 448.068 111.489 462.990 115.182 478.294

5 4 3 2 1 0

478.294 462.99 448.068 420.787 274.237 500 1000 1500

2011 2010 2009 2008 2007 2000 2500 Ratio Year

Interpretation: By the above graph we can understand that the ratio has increased year on year and a positive sign to the company.

8) Intrinsic Value of Share = P/E ratio over the Years X EPS

Year 2007 2008 2009 P/E Ratio 270.37 417.64 444.94
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2010 2011 463.01 478.31

5 4 3 2 1 0

478.31 463.01 444.94 417.64 270.37 500 1000 1500

2011 2010 2009 2008 2007 2000 2500 P/E Ratio Year

Interpretation: By the above graph it can be noted that the ratio has gradually increased every year and a positive sign to the company.

Industry Analysis INTRODUCTION TO THE STEEL INDUSTRY Indias economic growth is contingent upon the growth of the Indian steel industry. Consumption of steel is taken to be an indicator of economic development. While steel continues to have a stronghold in traditional sectors such as construction, housing and ground transportation, special
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steels are increasingly used in engineering industries such as power generation, petrochemicals and fertilisers. India occupies a central position on the global steel map, with the establishment of new state-of-the-art steel mills, acquisition of global scale capacities by players, continuous modernisation and upgradation of older plants, improving energy efficiency and backward integration into global raw material sources. Steel production in India has increased by a compounded annual growth rate (CAGR) of 8 percent over the period 2002-03 to 2006-07. Going forward, growth in India is projected to be higher than the world average, as the per capita consumption of steel in India, at around 46 kg, is well below the world average (150 kg) and that of developed countries (400 kg). Indian demand is projected to rise to 200 million tonnes by 2015. Given the strong demand scenario, most global steel players are into a massive capacity expansion mode, either through brownfield or greenfield route. By 2012, the steel production capacity in India is expected to touch 124 million tonnes and 275 million tonnes by 2020. While greenfield projects are slated to add 28.7 million tonnes, brownfield expansions are estimated to add 40.5 million tonnes to the existing capacity of 55 million tonnes. Steel is manufactured as a globally tradable product with no major trade barriers across national boundaries to be seen currently. There is also no inherent resource related constraints which may significantly affect production of the same or its capacity creation to respond to demand increases in the global market. Even the government policy restrictions have been negligible worldwide and even if there are any the same to respond to specific conditions in the market and have always been temporary. Therefore, the industry in general and at a global level is unlikely to throw up substantive competition issues in any national policy framework. Further, there are no natural monopoly characteristics in steel. Therefore, one may not expect complex competition issues as those witnessed in industries like telecom, electricity, natural gas, oil, etc.
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This, however, does not mean that there is no relevant or serious competition issue in the steel industry. The growing consolidation in the steel industry worldwide through mergers and acquisitions has already thrown up several significant concerns. The fact that internationally steel has always been an oligopolistic industry, sometimes has raised concerns about the anticompetitive behavious of large firms that dominate this industry. On the other hand the set of large firms that characterize the industry has been changing over time. Trade and other government policies have significant bearing on competition issues. Matters of subsidies, non-tariff barriers to trade, discriminatory customs duty (on exports and imports) etc. may bring in significant distortions in the domestic market and in the process alter the competitive positioning of individual players in the market. The specific role of the state in creating market distortion and thereby the competitive conditions in the market is a well-known issue in this country. This report proceeds as follows. Section 2 of the report provides a brief over view of the performance and structure of the Indian steel industry by analysing published secondary time series data on certain key indicators. Market structure is analyzed using indicators such as number of players and their respective shares in total production, share of public and private players in the total production/sales, production capacity of major players, etc. Given the heterogeneous nature of the product this analysis is done for the various segments of steel that constitute the relevant market. This analysis is a precursor in identifying segments where competition may be an issue of concern to allow for a pointed analysis. Section 3 of the report documents policy and institutional structure governing the steel industry in India and the role played by the Government in the development of this industry. Section 4 of the report examines issues of competition of steel industry in India, by identifying the structurally inherent and the market determined positions of various steel firms specifically to see their market power, vis--vis both their final consumers as also those within the steel industry.
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The issues emerging out of the size and market shares, specifically taking into consideration the investment aspects are also discussed in this section. The other issue of significant importance in the context of competition is the command over natural resources that a few players possess and 2 that enable a significant cost advantage over the rest in the market. These are the result of government policies of the past, to support growth of a particular industry. These preferential policies and their impact on competition are also analysed in this section. Section 5 concludes with a discussion on state of the competition in the Indian steel sector pointing to a few key recommendations for the Competition Commission of India. Appendix I, II, III and IV provide data on the sector, and briefly discuss international conditions, and provide an historical overview. This study finds little evidence of any cartelization or joint pricing behaviour on the part of the incumbents. It finds that government intervention, and slow responsiveness to changing conditions has contributed to shortages in the past, which in turn leads to action by the incumbents that look like, but is not, anti-competitive behaviour. Unequal access to raw material, as well as export/import curbs, are the key issues affecting the creation of a level playing field. It is the last two as well as ready availability of information on costs and prices across the value Chain that could warrant some action by the regulator.

Economic Analysis Steel prices expected to decline further: Due to the downturn in the global economy and the slowdown in credit growth, infrastructure development activities and consumer spending have been adversely affected. The construction and automobile sectors, which are major consumers of steel, have witnessed a significant decline in activity, thus leading to a slowdown in the demand for steel. International steel HRC prices have plunged 4050% from their highs to USD 600700 per ton. With the advanced economies going into a
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Recession and the emerging economies slowing down, demand for steel is not expected to improve in the near term. As a result, we expect steel prices to fall further in the coming months. However, we believe the decline in realizations will be restricted for JSPL as it stays focused on value-added products.

Jindal Steel and Power Ltd. Future Plans:

As a forward integration, JSP is setting up a Railway and Universal Beam Mill (RUBM) to produce the worlds longest (120 mtrs) rails. The project should translate into significant gains for JSPL as demand for rails is expected to rise by 2,50,000 tpa for next 5 years. This steep rise in demand would be driven by setting up the Rs 170 bn Railway Safety Fund, and renewed thrust to clear the 12,500 kms (3000 kms p.a) backlog of track renewal. Diamond Exploration:

JSPL has applied for reconnaissance permit for undertaking exploration for diamonds in the state of Chhattisgarh. It is carrying out a survey, and only after detailed investigation whether the deposits are commercially viable, the company will take up mining of diamonds and enter into JV agreement. Foreign giants De Beers and BHP has shown keen interest in joining hands with the company for a JV deal. It is proposing to invest Rs 50-60 crore in a phased manner for establishing the reserve position before making any commitments towards production of the precious stone. Investment in Orissa:

In order to maintain leadership in the field of sponge iron, power and steel, the company plans to invest in the State of Orissa, which has adequate reserves of iron ore and coal. In this connection, it plans to sign MOU with Government of Orissa. Company Profile Jindal Steel and Power Limited (JSPL) is one of Indias major steel producers with a significant presence in sectors like Mining, Power Generation and Infrastructure. With an annual turnover of over US $2.9 billion, JSPL is a part of the about US $ 15 billion diversified O.P Jindal Group and is consistently tapping new opportunities by increasing
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production capacity, diversifying investments, and leveraging its core capabilities to venture into new businesses. Jindal Steel and Power Limited is the third largest steel producer in India. The company manufactures and sells sponge iron, mild steel slabs, ferro chrome,iron ore, mild steel, structural, hot rolled plates and coils and coal based sponge iron plant. The company is also involved in power generation.

Jindal Steel and Power is a part of the Jindal Group, founded by O. P. Jindal (19302005). In 1969, he started Pipe Unit Jindal India Limited, one of the earlier incarnations of his business empire. After Jindal's death in 2005, much of his assets were transferred to his wife, Savitri Jindal. Jindal Group's management was then split among his four sons with Naveen Jindal as the Managing Director of Jindal Steel and Power Limited. His elder brother, Sajjan Jindal, is currently the head of ASSOCHAM, an influential body of the chambers of commerce, and the head of JSW Group, part of O.P. Jindal Group.

The company produces economical and efficient steel and power through backward integration from its captive coal and iron-ore mines. From the widest flat products to a whole range of long products, JSPL today sports a product portfolio that caters to varied needs in the steel market. The company also has the distinction of producing the worlds longest 121 metre rails and introducing large size parallel flange beams in India.

JSPL operates the largest coal - based sponge iron plant in the world and has an installed capacity of 3 MTPA of steel at Raigarh in Chhattisgarh. With a 0.6 MTPA wire rod mill and a one million tone capacity bar mill at Patratu, Jharkhand and a one million tone capacity bar mill, Jharkhand and a medium and light structural mill at Raigarh, Chhattisgarh.

The enterprising spirit and the ability to discern future trends have been the driving force behind the companys remarkable growth story. The company has scaled new heights with the combined force of innovation, adaptation of new technology and the collective skills of its 15,000 strong, committed workforce. And the recognition it has received only further
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lends credence to this. JSPL has recently been rated as the second highest value creator in the world by Boston Consulting Group; 11th fastest growing company in India by Business World; included in one of the Fab 50 Companies by Forbes Asia, 2009 and 2010. JSPL endeavors to strengthen Indias industrial base by aiding infrastructural development, through sustainable development approaches and inclusive growth. The company deploys its resources to improve infrastructure, education, health, water, sanitation, environment etc. in the areas it operates in. The company has won several awards for its innovative business practices. As JSPL contributes to Indias growth, it has also set in place a global expansion plan in order to become one of the most prestigious and dynamic business groups in the World. The company continues to capitalize on opportunities in high growth markets, expanding its core areas and diversifying into new businesses. The future is studded with challenges and JSPL is taking them on with vigor and courage. On June 3, 2006, Bolivia granted development rights for one of the world's largest iron ore reserves in the El Mutn region to Jindal Steel. With the development rights for 20 billion tonne of El Mutun Iron Ore Reserves in Bolivia, JSPL plans to invest US$ 2.1 billion in the next few years on mining and on setting up an integrated 1.7 MTPA Steel Plant, 6 MTPA Sponge Iron plant, 10 MTPA Iron Ore Pellet Plant and 450 MW power plant in the South American nation. Savitri Jindal, the widow of O. P. Jindal, is ranked as the 19th richest Indian person according to Forbes.

VISION, MISSION AND VALUES VISION To be globally admired organization that enhances the quality of life of all stakeholders through sustainable industrial and business development.
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MISSION The spirit of entrepreneurship and innovation Optimum utilization of resources. Sustainable environment friendly procedures and practices The highest ethics and standards. Hiring, developing and retaining the best people. Maximization returns to stakeholders. Positive impact on the communities we touch.

VALUES Passion for people. Business excellence Integrity, ownership and sense of belonging Sustainable development

PRESENT MARKET POSITION OF JINDAL STEEL AND POWER LIMITED Jindal Steel and Power Limited is the third largest steel producer in India. Operating profit decreased 9.9% quarter-on-quarter to Rs9.6bn, marginally lower than our estimate of Rs9.9bn.The underperformance in operating profit was on account of lower than expected steel sales volume. Operating Profit Margin decreased 86bps quarter-on-quarter to 38% in first quarter of financial year 2011 on account of higher coal cost and subdued long steel prices. On a segmental basis, EBIT margins for the steel business increased from 31.1% in fourth quarter of financial year 2011 to 31.8% in first quarter of financial year 2012 and that of the power division declined sharply from 46.4% to 36.4%.

GLOBAL COLLEGE OF MANAGEMENT & IT, HUBLI

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