G.L.

BAJAJ
INSTITUTE OF MANAGEMENT AND RESEARCH
Approved by A.I.C.T.E., & Affiliated to Dr.A.P.J. Abdul Kalam Technical University

Plot No. 2, Knowledge Park III, Greater Noida, Distt. G.B.Nagar, U.P., India Pin-201306

RESEARCH PROJECT REPORT

ON
“FINANCIAL DERIVATIVES IN INDIAN FIANACIAL MARKET”

Submitted For

THE PARTIAL FULLFILLMENT OF THE AWARD OF DEGREE OF MASTER OF

BUSINESS ADMINISTRATON (MBA)

From A.K.T.U. LUCKNOW

Under the Guidance of: Submitted By:

Dr. Shivi Mitttal Himanshu Shekhar Singh
Professor Roll No- 1780170074
Department of Management Studies Session: 2017-2019
 DECLARATION

I hereby declare that the dissertation titled “RESEARCH ON FINANCIAL DERIVATIVES IN

INDIAN FINANCIAL MARKET” Submitted for the Award of Master of Business
Administration (MBA) at Dr. A.P.J. Abdul Kalam Technical University, Lucknow is my
original work and the dissertation has not formed the basis for the award of any degree, associate
ship, fellowship or any other.

The material borrowed from similar titles other sources and incorporated in the dissertation has
been duly acknowledged.

I understand that I myself could be held responsible and accountable for plagiarism, if any,
detected later on.

The research papers published based on the research conducted out of the course of the study are
also based on the study and not borrowed from other sources.

Date: Signature of the student

Roll No- 1780170074

 ACKNOWLEDGEMENT

I am thankful to Dr. A.P.J. Abdul Kalam Technical University, Lucknow for giving me an
opportunity to pursue MBA.

I would also like to thank my guide and my perpetual source of inspiration Dr. Shivi Mittal.
for his valuable mentoring and inputs. His constant support and invaluable advice has always
guided me towards the right direction. He helped me to know various phenomena related to the
research practices which further gave an impetus to channelize my study in an appropriate way. I
sincerely thank him for his treasured guidance without which this dissertation would have never
been possible.

I won’t miss this opportunity to give credit to the sources both primary & secondary for adding
valuable inputs to my dissertation. I also thank the administrative staff, the library staff & the
computer lab staff of Dr. A.P.J. Abdul Kalam Technical University, Lucknow for providing
reference material required in my research work.

Lastly, I express my deep sense of gratitude to the almighty, my family, friends & colleagues
who have directly and indirectly helped me in this dissertation.

--------------------------

Signature of Student
 PREFACE
Whenever you're thinking of investing in a company it is vital that you understand what it does,
its market and the industry in which it operates. You should never blindly invest in a company. 

One of the most important areas for any investor to look at when researching a company is
the financial statements. It is essential to understand the purpose of each part of these statements
and how to interpret them. 

Fundamental analysis is the cornerstone of investing. In fact, some would say that you aren't
really investing if you aren't performing fundamental analysis. Because the subject is so broad,
however, it's tough to know where to start. There are an endless number of investment strategies
that are very different from each other, yet almost all use the fundamentals.

The goal of this tutorial is to provide a foundation for understanding fundamental analysis. It's
geared primarily at new investors who don't know a balance sheet from an statement. While you
may not be a "stock-picker extraordinaire" by the end of this tutorial, you will have a much more
solid grasp of the language and concepts behind security analysis and be able to use this to
further your knowledge in other areas without feeling totally lost.

The biggest part of fundamental analysis involves delving into the financial statements. Also
known as quantitative analysis, this involves looking at revenue, expenses, assets, liabilities and
all the other financial aspects of a company. Fundamental analysts look at this information to
gain insight on a company's future performance. A good part of this tutorial will be spent
learning about the balance sheet, income statement, cash flow statement and how they all fit
together.

But there is more than just number crunching when it comes to analyzing a company. This is
where qualitative analysis comes in - the breakdown of all the in tangible, difficult-to-measure
aspects of a company. Finally, we'll wrap up the tutorial with an intro on valuation and point you
in the direction of additional tutorials you might be interested in.

Fundamental analysis seeks to determine the intrinsic value of a company's stock. But since
qualitative factors, by definition, represent aspects of a company's business that are difficult or
impossible to quantify, incorporating that kind of information into a pricing evaluation can be
quite difficult. On the flip side, as we've demonstrated, you can't ignore the less tangible
characteristics of a company. 
 Business Model 

Even before an investor looks at a company's financial statements or does any research, one of
the most important questions that should be asked is: What exactly does the company do? This is
referred to as a company's business model – it's how a company makes money. You can get a
good overview of a company's business model by checking out its website or reading the first
part of its 10-K filing (Note: We'll get into more detail about the 10-K in the financial statements
chapter. For now, just bear with us). 

Sometimes business models are easy to understand. Take McDonalds, for instance, which sells
hamburgers, fries, soft drinks, salads and whatever other new special they are promoting at the
time. It's a simple model, easy enough for anybody to understand. 
 TABLE OF CONTENT
Chapters Topic Page No.
1 Executive summary 8-9

2 Introduction 10-24

3 Company Overview 25-62

4 Financial Analysis 63-97

5 Literature Review 98-103

6 Research Objective 104-105

7 Research Problem 106-107

8 Research Methodology 108-111

9 Analysis and Interpretation 112-113

10 Findings and Conclusion 114-116
11 Recommendation and 117-118

suggestion
12 Annexure and Questionnaire 119-123

INTRODUCTION
SUMMARY OF INDUSTRY
The Indian economy has advanced at the rate of 7.1% during FY 2017. However, the
Agricultural Growth of the country for FY 2017 was 4.1% as compared to 1.2% of FY 2016, as a
result of good monsoon. In a surprising move Government of India had announced withdrawal of
high-value currency on 8 November, 2016, the full economic impact of which is yet to be
thoroughly ascertained. Demonetisation has had short-term costs in the form of slow growth but
holds the potential for long term benefits. Long term benefits include reduced corruption, greater
digitalisation of the economy, increased flows of financial savings and greater formalisation of
the economy, all of which could eventually lead to higher GDP growth, better tax compliance
and greater tax revenues. The Asian Development Bank (ADB) in April, 2017 said India’s
economy is set to grow at 7.4% in Financial Year 2017-18 against 7.1% the Previous Year, on
the back of a pick-up in consumption demand and higher public investment. IMF’s projection
makes India the fastest growing major economy in 2016-17, with China estimated to have grown
at 6.7% during 2016. China’s economy is expected to steadily slow down to 6.6% in 2017 and
6.2% in 2018 due to the “complex process of rebalancing”by reorienting demand from exports
and investment & consumption. Further, GST implementation is also believedto be a short term
disruptive force but is going to result in good growth going forward. The GST will create a
common Indian market, improve tax compliance and governance, and boost investment and
growth; it is also a bold new experiment in the governance of India’s cooperative federalism.
Global growth has been raised marginally to 3.5% inFY 2017 from the January 2017 estimate of
3.4% due to a “long-awaited cyclical recovery in investment, manufacturing and trade” that may
take it to 3.8% by 2022, driven by an “acceleration of activity in India resulting from the
implementation of important structural reforms, and a successful rebalancing of China’s
economy to lower, but still high, trend growth rates.”The outlook said India’s economy has
grown at a strong pace in recent years owing to the implementation of critical structural reforms,
favourable terms of trade, and lower external vulnerabilities.

Parameter 2016-17 2015-16

GDP Growth % 7.1 7.6
CPI Inflation (Average %) 4.7 5.7
10- year G-sec (year end %) 6.5 7.1

RS./US$ (year-end) 64.8 66.3

Fiscal Deficit (of GDP %) 3.5 3.9

1) Overview of Business
Jain Irrigation Systems Limited (JISL) is the flagship Company with operating subsidiary
companies (Includingfellow subsidiaries) and diverse businesses across the globe and aggregate
revenues of over ` 69 billion. The Company is a leading agribusiness enterprise, present in the
entire value chain. It is the second largest micro irrigation Company globally, and is the largest
manufacturer of micro irrigation systems in India. It is also the largest manufacturer of Mango
pulp, puree and concentrate in the world, and the third largest manufacturer of dehydrated
onions. JISL is also India’s largest manufacturer of polyethylene pipes, leading PVC pipe
manufacturer, and is also the world's largest manufacturer of Tissue Culture banana plants in the
world. The Company is additionally into hybrid & grafted plants; greenhouses, poly and shade
houses, bio- fertilizers, biogas and green energy (solar), solar water heating systems, solar
panels, solar water pumps and plastic sheets. Many of it's plants are ISO 50000 and HACCP
certiofied and meet International FDA statute requirements. JISL renders consultancy for
complete or partial project planning and implementation, e.g. watershed or wasteland and/or crop
selection, and rotation. Over the preceding few years, the Company has concluded a few of
acquisitions and merged some companies. Last year the Company separated its food business.
All acquisitions and mergers have been a strategic fit , in order to strengthen the business and
increase reach in every segment. The acquired companies have done well within 3 to 5 years
after acquisition and are performing well in the countries where they operate. Each of the
Company's products is an outcome of an effort to conserve nature’s precious resources, through
substitution or value addition. This is the legacy of a deliberate and conscious endeavour that
stems from adeep-rooted concern for nature with a consistent focus for development and growth
of agriculture, resulting in higher income for farmers.
Meaning:
Derivatives are contracts between two parties that specify conditions (especially the dates,
resulting values and definitions of the underlying variables, the parties' contractual obligations,
and the notional amount) under which payments are to be made between the parties. [6][7] The
assets include commodities, stocks, bonds, interest rates and currencies, but they can also be
other derivatives, which adds another layer of complexity to proper valuation. The components
of a firm's capital structure, e.g., bonds and stock, can also be considered derivatives, more
precisely options, with the underlying being the firm's assets, but this is unusual outside of
technical contexts.
From the economic point of view, financial derivatives are cash flows, that are conditioned
stochastically and discounted to present value. The market risk inherent in the underlying asset is
attached to the financial derivative through contractual agreements and hence can be traded
separately.[8] The underlying asset does not have to be acquired. Derivatives therefore allow the
breakup of ownership and participation in the market value of an asset. This also provides a
considerable amount of freedom regarding the contract design. That contractual freedom allows
to modify the participation in the performance of the underlying asset almost arbitrarily. Thus,
the participation in the market value of the underlying can be effectively weaker, stronger
(leverage effect), or implemented as inverse. Hence, specifically the market price risk of the
underlying asset can be controlled in almost every situation.
There are two groups of derivative contracts: the privately traded over-the-counter (OTC)
derivatives such as swaps that do not go through an exchange or other intermediary, and
exchange-traded derivatives (ETD) that are traded through specialized derivatives exchanges or
other exchanges.
Derivatives are more common in the modern era, but their origins trace back several centuries.
One of the oldest derivatives is rice futures, which have been traded on the Dojima Rice
Exchange since the eighteenth century.[9] Derivatives are broadly categorized by the relationship
between the underlying asset and the derivative (such as forward, option, swap); the type of
underlying asset (such as equity derivatives, foreign exchange derivatives, interest rate
derivatives, commodity derivatives, or credit derivatives); the market in which they trade (such
as exchange-traded or over-the-counter); and their pay-off profile.
Derivatives may broadly be categorized as "lock" or "option" products. Lock products (such as
swaps, futures, or forwards) obligate the contractual parties to the terms over the life of the
contract. Option products (such as interest rate swaps) provide the buyer the right, but not the
obligation to enter the contract under the terms specified.
Derivatives can be used either for risk management (i.e. to "hedge" by providing offsetting
compensation in case of an undesired event, a kind of "insurance") or for speculation (i.e.
making a financial "bet"). This distinction is important because the former is a prudent aspect of
operations and financial management for many firms across many industries; the latter offers
managers and investors a risky opportunity to increase profit, which may not be properly
disclosed to stakeholders.
Types of Derivatives in Indian Financial Market :
 CHAPTER -1

COMPANY OVERVIEW
1) Brief about of the company :
2) Jain Irrigation Systems Ltd is a diversified entity with turnover in excess of one billion
dollars. We have a global presence with 30 manufacturing bases spread over four
continents. Our products are supplied to 126 countries with able assistance from 6700
dealers and distributors worldwide. We have reached over 4.5 million farmers.
3) We are the second largest Micro-Irrigation company in the world. The Micro-Irrigation
Division manufactures a full range of precision-irrigation products. Jain irrigation
provides services from soil survey, engineering design to agronomic support. It nurtures a
sprawling 2000 acre Hi-Tech Agri Institute; a Farm Resource R&D, Demo, Training &
Extension Centre. We also undertake turnkey projects for agricultural and irrigation
development with holistic & integrated approach. Over 1500 agri and irrigation scientists,
engineers and technicians are engaged in offering services for complete or partial project
planning and implementation e.g Watershed Development through Wasteland
Transformation, including crop agronomy, protected cultivation etc.
4) Jain Irrigation is also the largest manufacturer of plastic pipes in India covering a wide
range of pipes and fittings. We annually process over 300,000 MT of various polymers.
We extrude pipe/sheet and inject the molds of PVC, PE, PP & CPVC along with other
engineering polymers like Polycarbonate, Polyamide, PBT, ABS etc. We are a Total
Solution Provider for various plastic piping systems that are used in conveyance of fluids,
semisolids, gases and cables.

PVC : Polyvinyl Chloride (PVC), a major plastics material which finds widespread use
in building, transport, packaging, electrical/electronic and healthcare applications. PVC
is a very durable and long last construction material, which can be used in a variety of
applications, either rigid or flexible, white or black and a wide range of colours in
between.

PP : Polypropylene (PP), also known as polypropene, is a thermoplastic polymer used

in a wide variety of applications. An addition polymer made from the monomer
propylene, it can be produced in a variety of structures giving rise to a variety of
applications including packaging and labeling, textiles, plastic parts and reusable
containers of various types, laboratory equipment, automotive components, and medical
devices
 CPVC : Chlorinated polyvinyl chloride (CPVC) is a thermoplastic produced by
chlorination of polyvinyl chloride (PVC) resin which is significantly more flexible and
can withstand higher temperatures than standard PVC.Uses include hot and cold water
pipes, and industrial liquid handling

POLYAMIDE : A polyamide is a macromolecule with repeating units linked by amide

bonds.

Polyamides occur both naturally and artificially. Examples of naturally occurring

polyamides are proteins, such as wool and silk. Artificially made polyamides can be
made through step-growth polymerization or solid-phase synthesis yielding materials
such as nylons, aramids, and sodium poly(aspartate)

PBT : Polybutylene terephthalate (PBT) is a thermoplastic engineering polymer that is

used as an insulator in the electrical and electronics industries. It is a thermoplastic
(semi-)crystalline polymer, and a type of polyester. PBT is resistant to solvents, shrinks
very little during forming, is mechanically strong, heat-resistant up to 150 °C (or 200 °C
with glass-fibre reinforcement) and can be treated with flame retardants to make it
noncombustible.

5) The Tissue Culture Division can produce 80 million plantlets of banana at full capacity
and has established matching primary and secondary hardening facilities as well as
independent R&D and virology labs. Similarly, a modern Bio- tech lab equipped with all
modern and state–of–the–art facilities meet the needs of continuous genetic improvement
and validation program in cultivators of onion, banana, mango, pomegranate etc.

TISSUE CULTURE : A tissue culture is the cultivation of a plant through the use of a
cutting or other plant tissue. Tissue culturing is the most common form of plant
reproduction

6) We also process tropical fruits like mango, banana, pomegranates into purees,
concentrates, juices and IQF products. The Dehydration Facility dehydrates onions &
vegetables. The Spray Drying Unit processes gooseberry and other fruit purees into
powders.
7) Agricultural and fruit processing waste is converted into biogas to generate power of 1.6
MW capacity along with waste heat for refrigeration and soil conditioner. We care for
 sustainable farming, a system we profess and practice under the aegis of JAINGAP. In
the first year of operation, our non-banking finance corporation SAFL has disbursed
more than 30 million USD for small holders to adopt agriculture inputs including micro
irrigation.
8) Jain Irrigation is the only company in India which is not only a pioneering manufacturer
of hi-tech agricultural inputs but aIso a Total Agri-Service provider, Training and
Extension Institute, large farm cultivator and an Agricultural Consultancy organization. It
is through such multi-dimensional activities that Jain Irrigation nurtures the complete agri
value chain and has become a One-Stop Hi-tech Agri Shop.
9) Our other businesses include, PVC sheets, Solar Water Heaters, Solar Water Pumps, PV
Panels, and Solar Lighting appliances, where the emphasis is on the conservation of
scarce natural resources like forest and energy. PVC sheets can replace wood as a
substitute for building material and save our forests. Similarly Solar Water Heaters and
Photovoltaic Lighting systems use the abundant Solar Energy available for free and save
natural sources of energy like coal which is used to produce electricity etc.
10) Our unflinching efforts in pursuit of excellence, appropriately blended with on going
Research and Development efforts have earned the company, the highest R&D awards of
the country and numerous other awards and recognition for outstanding performance in
Exports, Fair Business Practices, Quality, Excellence etc.
11) A lifetime commitment to introduce modern, yet affordable, and viable technologies in
all our product offerings has compelled us to be creative and innovative.
12) The reward has been over millions of satisfied farmers and scores of happy customers
globally.
A) YEAR OF INCORPORATION :
b) Name of all the promoters , entry , exit of
promoters
c) product line in detail , names of all the brands of
the company

DRIP LINE :
EMITTING PIPE : Emitting Pipe play a key role in drip irrigation systems. Jain Emitting pipes
are manufactured from virgin special grade polyethylene. Resistant to Ultra Violet (UV)
radiation and other environmental effects. Jain Emitting Pipe passes through stringent quality
tests confirming to Indian and International Standards .The nominal diameter ranges from 12 mm
 to 25 mm.

JAIN TURBO EXCEL PLUS :

 Recommended for irrigation of closely spaced row crops like sugarcane, cotton, banana,

strawberry, vegetables, spices and floriculture, etc.

 Suitable for surface as well as sub surface installations.

 Recommended to use in greenhouses and nurseries.
 Used for widely spaced horticultural plants like mango, citrus, guava, apple etc. in group

Spacings.

J-TURBOLINE SUPER :

 Ideal for irrigation of multi seasonal closely spaced row crops like sugarcane, cotton,

banana, vegetable, strawberry, spices, floriculture, etc.

 Suitable for surface as well as sub-surface irrigation.

 Recommended to use in greenhouses and nurseries.
 JAIN TURBO CASCADE PC , PCNL & PCAS :

 All purpose versatile product.

 Pulse irrigation for greenhouse, vegetables and orchards.(PCNL)
 Suitable for surface as well as subsurface applications.(PCAS)
 Large fields with long rows (reduced filling time).

TURBOLINE PC :

 Ideal for irrigation of closely spaced row crops like sugarcane, cotton, banana,

strawberry, floriculture, vegetables and spices.

 Suitable for surface as well as sub–surface irrigation.

 Recommended for undulating terrain & steep slopes and where longer lateral running

length is necessary.

JAIN TURBO TOP PC & PCAS :

 All purpose versatile product.

 Pulse irrigation for greenhouse, vegetables and orchards
 Suitable for surface as well as subsurface applications.
 Large fields with long rows (reduced filling time).

DRIP TAPE :
Drip tape is a thin walled drip line used in drip irrigation. Drip tape is made of Special grade polyethylene
material. It is also called as collapsible hose, once pressurized it becomes round and collapses on
depressurizing. Being a flat tube it can be supplied on reels containing several thousand feet. The nominal
diameter ranges from 12 to 25 mm. It can be used for surface and subsurface applications. Thin walled
tapes are suitable for 2-3 seasons but can be used for longer period if used subsurface. Drip tape helps in
reduction of initial investment of drip irrigation.

DRIP TUBES : Drip Hose and PE tubes are used as a submain/lateral pipe in micro irrigation
system. These hose and tubes are UV stabilized and are able to withstand environmental effects.
Jains Hose and Tubes are manufactured from virgin special grade polyethylene. Jain Polyethylene hose
and tubes are tested in accordance to Bureau of Indian Standards (BIS), American Society of Agriculture
Engineer (ASAE), and American Standard for Testing and Materials (ASTM). Jain products passes
through stringent quality tests in our advance ultra modern laboratory before it reaches you.
DRIPPERS : Drippers are used for online drip irrigation system. Each of our Dripper is
designed to suit difficult soil conditions, water needs of various crops, difficult water quality and
numerous requirements of agriculture.

Innovative design, precision molding, use of quality raw material and stringent quality tests are
the key factors behind the sustainable and efficient performance of our online dripper for Drip
Irrigation. Narrow cross shaped inlet acts as a filter and colored cap represents flow rate and
facilitates easy identification. Manufactured from virgin plastic for stable performance. These
devices are UV stabilized and are able to withstand environmental effect. Recommended for
orchards, fruit crops, vegetables, nurseries & flowers.
DRIP KIT : "Jain DripKit" will address all these constraints and will empower the small farmers
with a scientific, durable and simple-to-operate Irrigation System. "Drip Irrigation System which operates
on gravity pressure". Jain DripKit helps to maintain favourable soil moisture conditions to the plants
which results in good growth & bumper yields.
JAIN DRIP KIT WITH FOOT PUMP : Foot Pump is a foot operated water lifting
device that can pump water to fill tanks to irrigate small plots of small land holders. A low cost system,
simple in design and easily manageable. For the poor farmers constrained by the small size of the
landholdings, Foot pump technology acts as a land augmenting intervention. Capable of pumping water
from 5000 litres of water per hour.

DRIP KIT – SOLAR PUMP : A revolution is taking place in how water is being
pumped in remote locations beyond the reach of electric power lines. Solar power has proven to
be an ideal way to lift water for drinking, sanitation, stock tanks, and irrigation.

Solar Photovoltaic (PV) panel is one of the the simplest possible way to generate electricity
beyond the reach of power lines. It has no moving parts and last for decades with virtually no
maintenance. Solar power is no longer an expensive, experimental energy source.

Jain Irrigation Systems Ltd. offers an effective solution: “Jain Solar Powered Drip irrigation
system” especially designed for farmers, who do not have access to conventional power and has
small land holding. The solar pumps have Brushless DC motors which receives power from the
PV panels. This system does not have any batteries. Hence the solar pumps start early in the
morning & continue to work till late evening.
DRIP KIT WITH HYDRAULIC RAMP PUMP : Pumping water without
use of electricity especially in hilly areas. The Hydraulic Ram uses the force of flowing water to
pump water uphill to desired point without using any additional source of energy. What you need
is only suitable site location for Hydraulic Ram Pump.

With a Hydraulic Ram and a suitable stream, spring or artesian well nearby, you can supply your
homestead’s water needs, irrigate your garden or water your orchard...all without the use of any
outside source of energy with Jain DripKit.

FILTERS : Water is not found in its purest form in nature. It is always contaminated with physical,
chemical & biological impurities. Proper filtration is of much importance to prevent low pressure diffuser
like emitters from clogging. Our wide range of water filters are standing like watchdogs to protect your
system from clogging hazards. Sand Separators to remove silt, sand from your water, media filters to
remove organic impurities like algae, trash, leaves etc. from water and complete range of screen filters to
remove any physical impurities from water are available in our filtration range. Stable performance
maximum filtration efficiency and minimum maintenance are some of the common features of our filters.
PLASTIC CONTROL AND SAFETY VALVES :
We provide complete solution for Control and Safety Valves. Our high performance valves are
with manual and or automatic control. Our Plastic valves are cost effective, easy to install &
maintain, value driven and customized for specific requirement. We also provides turnkey
services for survey, designing & installation.

POLYFITTINGS AND ACESSORIES : Poly fittings are manufactured from

reinforced PPCP,the provide excellent chemical and weather resistance. Jain Poly Fittings and
Accessories help you to obtain a most reliable irrigation system. Leak proof, snap proof fittings. Jains
poly fittings and accessories are made from the best materials under strict quality control. They are made
for long term reliable service, easy to assemble and disassemble.
e) Share price of the company, capture current
price and 52 week high and low for the
company
g) Latest corporate announcements made in last
one year about the company
d) The Shareholders of the Company approved in the 24th AGM held on 30th September, 2011 a new
Employees Stock

i) The total number of options that may in the aggregate be granted to the Eligible Employees of the
Company shall be 43,56,000 Ordinary Equity Shares of face value ` 2/- each.

ii) The total number of options that may in the aggregate be granted to the Eligible Employees of the
subsidiaries of the Company shall be 10,00,000 Ordinary Equity Shares of face value ` 2/- each.

e) In terms of EGM resolution dated 3rd December, 2015 u/s 62 of the Act, the Company has issued
3,62,00,000 Compulsorily Convertible Debentures (CCDs) of ` 80/- each on 11th March 2016 on
preferential basis to Mandala Rose Co-Investment Limited. The CCDs shall be convertible into one
Equity Share of nominal value of ` 2/- each at a premium of ` 78/- per Share. The CCD’s shall be
exercisable at the option of the holder, in such number of options,in one or more tranches at any time with
in the exercise period which shall not exceed 18 months from the date of allotment of CCDs.
h) brief on business model of the company
i) brief on distribution network of the company, states in
which comapany has presence
 CHAPTER- 2
FINANCIAL ANALYSIS
FINANCIALS OF THE COMPANY:
ENTERPRISE VALUE : 9046.678 CR
BOOK VALUE : 90.03
PRICE/BOOK VALUE : 5882.85/4315.05= 1.36
RETURN ON CAPITAL EMPLOYED : 3.066
RETURN ON ASSET = 2.14
Sales, EBITA,PAT,EPS, Debt Equity Ratio, Current
Ratio with all calculations for last 4 years quarter
wise
b) Brief on Debts taken by the company with name of the banks
and exposure with all of them mentioned separately
c) Brief on contingent liablities for the company

Note: Analysis of financial data is attached in Annexure.

 CHAPTER – 3
LITERATURE REVIEW
2.1. Dividend Discount Models (DDM):

The dividend model depends on a basic assumption which is: the stock value is determined by
discounting the expected dividends future cash (Subramanyam and Venkatachalam, 2007).Thus,
the real value of the shares is determined by the present value of the cash dividend, which is
expected to be generated as a result of the ownership of the stock (Bodie, et al., 2009). Therefore,
we will explain common models and their assumptions as follows:

General Model for the DDM:

Where; V0: Value per share of stock, D: Expected dividend per share, K: required return rate on
the stock or discount rate. Model assumptions: ƒ The company continues to infinity. ƒ
Continuation of dividends at a fixed rate means that the distribution policy is fixed for the
company at a certain amount so that it can be correctly predict. ƒ The required return rate on the
stock or discount rate "K" in the model remains constant because the discount rate depends on
the market for the implementation of the investment and is likely to change dramatically over
time. ƒ This model requires the availability of financial market efficiency.

2.2. Models that depend on Multiples:

The multiples that determine equity value are more widely used, right down to the market value
per share, which is based on the analysis of market data, and we will illustrate the most common
ratio in this category is: Earning Multiplier Model (P/E Ratio): Referred to Multiplier model or
what is called price to earnings ratio, as it is known practical or pragmatic model, upon which
fundamental analysts, and its models more commonly used by securities analysts, compared to
dividends model (Reilly and Brown, 2002; Faerber, 2008). This ratio is the simplest form of the
multiplier model, the most common and widely used among securities analysts, and Faerber
(2008) believes that it may be considered through this model to the stock value as equivalent to
several times the earnings. This means that stock price is just a multiple of earnings per share,
and can be expressed as follows:

Where; P/E ratio = Market price of the stock / Earnings per share,EPS1: Expected earnings per
share for the next period. Model assumptions: ƒ Continuity of the firm in make profits, and in the
case of the opposite (to achieve loss) cannot be applied to the model. ƒ The availability of
developed financial market (where at least a weak form of efficiency) for the predictability of
future value of earning per share.

2.3. Discounted Cash Flow (DCF) Models:

Using Free Cash Flow Firm Statement (FCFF), which is calculated as follows

FCFF = EBIT × (1 – Tax Rate (Tc)) + Depreciation and Amortization – Change in Working
Capital – Capital Expenditure

To get Firm Value, the net present value of free cash flow firm is calculated using an appropriate
discount rate (Weighted Average Cost of Capital WACC), and Present Value of Terminal
Value1 using the same discount rate (WACC), to become the Firm Value as shown:

To reach the Value of Equity, we follow this equation; (5) Hence, the Equity Value will be
divided by the number of shares, to reach Fair Value per Share, as in equation no. 6, the
following; Fair Value per Share = Equity Value / Number of Shares (6) Model assumptions: ƒ
The required rate of return on the stock or the discount rate in the model remains constant;
because the discount rate depends on the market for the implementation of the investment, and
likely is changing dramatically over time. ƒ Requires the availability of financial market
efficiency for application of the model to calculate the present value of Terminal Value (VT).

3. Literature Review

Bauman (1996) believes that the real start of the research studies in the stock valuation using the
fundamental analysis return for three main articles: The first study by Lev and Ohlson (1982)
who identified the need to "create a stock valuation models to complement and expand the
traditional correlation studies for accounting research based on the market". The second article
was a stated study by Lev (1989) that our understanding of the process of financial statement
analysis "not exceeding much from the list of financial ratios, which is supposed to be used by
investors", and discussed the need to change capital market research to measure and evaluate
issues. Finally, the third article by Bernard (1994) criticized the empirical research regarding the
role of accounting data in valuation stock, among his suggestions for future research calling for
more of the methodology modeling and the studies that use samples of firms within particular
industry or economic sector, thus allows researchers to exploit their knowledge of the detailed
944 Ahmed S. Wafi et al. / Procedia Economics and Finance 30 ( 2015 ) 939 – 947 disclosures
and institutions. After these three leading researches, a number of researchers began to test the
analytical and experimental relation for the accounting data and non-accounting data related to
the valuation equity firm. We will clarify many of the empirical studies, which focused on
studying the relationship between the various fundamental analysis models, and show how its
predictive ability of future stock value in different financial markets; developed and emerging as
follows.
 CHAPTER – 4
RESEARCH OBJECTIVES
Objective of the study :
1)To analyze individual company scrips by considering the factors relating to the economy,
industry and the respective company.

2)To know the future trend of Stock Prices of Jain Irrigations. incapital market.

3)To know which securities to be bought and which securities not to be bought and also which
securities to be sold and which securities not to be sold.

4)To predict the period for holding the stock for profit booking.
 CHAPTER-5
RESEARCH PROBLEM
Research problem

1)Fundamental analysis can be valuable, but it should be approached with caution. if you are
reading research written by a sell-side analyst, it is important to be familiar with the analyst
behind the report. we all have personal biases and every analyst some sort bias. there is nothing
wrong this and the research can still be of great value.
2)The problem in valuation is not that there are not enough model to value an assets, it is that
there are too many, choosing the right model to use in valuation is as critical to arriving at a
reasonable value as understanding how to use the model. Analyst use a wide variety of model
from simple to the sophisticated. These models often different assumption about pricing; but they
do share some common characteristics so in the study i try to use
price earning multiple,
Return on equity,
Return on capital employed,
debt equity ratio,
earnings per share, and projection made
competitors
government policy
global impact
 CHAPTER-6
RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY
Primary data
Primary data is collected through direct interactions with the Branch Manager, management of
the company through make a call

Secondary data
The Secondary data is collected from the annual reports of the company, relevant text books on
the subject matter and company’s official website. YouTube, IIFL etc.

Research Instruments
Financial calculation: -
This was done to find the various valuation ratios and necessary calculations to find the intrinsic
value of the company.
Cost of Equity: -
Cost of equity (also known as cost of common stock and referred to as Ke) is the minimum rate
of return which a company must generate in order to convince investors to invest in the
company's common stock at its current market price. It is alternatively referred to as required rate
of return.
Cost of equity is an important input in common stock valuation under different models.
Definition of 'Debt Equity Ratio’: -
Definition: The debt-equity ratio is a measure of the relative contribution of the creditors and
shareholders or owners in the capital employed in business. Simply stated, ratio of the total long-
term debt and equity capital in the business is called the debt-equity ratio.
It can be calculated using a simple formula: total liability / Equity
Dividend payout Ratio: -
The dividend payout ratio is the amount of dividends paid to stockholders relative to the amount
of total net income of a company. The amount that is not paid out in dividends to stockholders is
held by the company for growth. The amount that is kept by the company is called retained
earnings.
it is calculated as: dividend / net profit
Asset turnover ratio
Asset turnover ratio is the ratio between the value of a company’s sales or revenues and the value
of its assets. It is an indicator of the efficiency with which a company is deploying its assets to
produce the revenue. Thus, asset turnover ratio can be a determinant of a company’s
performance. The higher the ratio, the better is the company’s performance. Asset turnover ratio
can be different from company to company. Usually, it is calculated on an annual basis for a
specific financial year.
Asset turnover = Net sales value/average of total assets
The market capitalization
The market capitalization calculation is an important and useful stock valuation formula for
investment analysis. Market capitalization (a.k.a. market cap) is the total market value of all the
company’s outstanding equity shares. This represents the total value the market has placed on the
value of a company’s common stock.
Market Capitalization = Number of shares outstanding multiplied by the price of the stock
Price Earnings Ratio
The Price Earnings Ratio (P/E Ratio) is the relationship between a company’s stock price and
earnings per share (EPS). It is a popular ratio that gives investors a better sense of the value of
the company. The P/E shows the expectations of the market and is the price you must pay per
unit of current earnings (or future earnings, as the case may be).
Earnings are important when valuing a company’s stock because investors want to know how
profitable a company is and how profitable it will be in the future. Furthermore, if the company
doesn’t grow and the current level of earnings remains constant, the P/E can be interpreted as the
number of years it will take for the company to pay back the amount paid for the share.
P/E ratio = share price/EPS
The Return On Equity ratio
Definition: The Return On Equity ratio essentially measures the rate of return that the owners of
common stock of a company receive on their shareholdings. Return on equity signifies how good
the company is in generating returns on the investment it received from its shareholders.
Return on Equity = Net Income or Profits/Shareholder’s Equity.
Sample Size – 100 Respondents
Research Design – Descriptive Research design
 CHAPTER SCHEME

1.THEORITICAL BACKGROUND OF THE STUDY: -

This chapter mainly deals with secondary data collected to support the study and the reason to
problem of the study

2.RESEARCH DESIGN
A research design serves as a bridge between what has been done in the conduct of the study to
realize the specified objectives. it is an outline of the project working

3.PROFILES
This chapter include the profile of the industry as well as company in which study is conducted.
this is also try to deal with trend and prospect of the industry and company.
 CHAPTER-7
ANALYSIS AND
INTERPRETATION
1. I own the following assets
1) Bank deposits 2) Shares
3) Mutual funds 4) Insurance Policies

bank deposit; 10; 10%

insurance policies; 20; 20%

bank deposit
shares
mutual funds
shares; 50; 50% insurance policies
mutual funds; 20; 20%

INTERPRETATION:
From the above Diagram it is clearly depicted that 10 % people favours bank deposites , 50 % of
the people invest in shares , 20% in mutual funds and 20% in Insurance policies
2. My investments in capital market are
1) All in demat form 2) Mostly in demat form
3) All in physical form 4) Mostly in physical form

mostly in physical form; 20; 20%

all in demat form; 30; 30%

all in demat form

all in physical form; 10; 10% mostly in demat form
all in physical form
mostly in physical form

mostly in demat form; 40; 40%

INTERPRETATION:
From the above picture it is depicted that 30% people keep their shares in all demat form , 40%
people mostly in demat form , 10% people in physical form and 20% mostly in physical form
3.Which technique is most preferable to invest and make money
1)Fundamental 2) Technical

technical; 10; 10%

fundamental
technical

fundamental ; 90; 90%

INTERPRETATION:
From the above picture it is depicted that 90% people invest money in stock market through
fundamental and remaining through technical.
4. The sectors which are represented in my portfolio are (Please tick whichever is
applicable)
1) Banking 2) Auto
3) steel 4) All

Banking; 25; 25%

Banking
All; 50; 50% Auto
Auto; 15; 15% Steel
All

Steel; 10; 10%

INTERPRETATION:
From the above picture it is depicted that 25 % people people portfolio has banking shares , 15%
in Auto shares, 10% in steel and 50% in All category.
5. I prefer to do the investment transactions
1) Through my broker/financial advisor 2) On my own using internet

on my own using Internet; 30; 30%

Through my
broker/financial advisor
on my own using Internet
Through my broker/financial advisor; 70; 70%

INTERPRETATION:
From the above picture it is depicted that 70% people invest money through broker/ financial
advisor and 30% people through by using their own internet.
6. The time I spend for investing activities is
1) 2 to 5 hrs. per week 2) 2 to 5 hrs. per month
3) 2 to 5 hrs. per year 4) Most of my spare time

2 to 5 hrs. per week ; 30; 30%

Most of my spare time ; 40; 40% 2 to 5 hrs. per week
2 to 5 hrs. per month
2 to 5 hrs. per year
Most of my spare time

2 to 5 hrs. per month; 20; 20%

2 to 5 hrs. per year ; 10; 10%

INTERPRETATION:
From the above picture it is clearly depicted that 30 % people spend time 2 to 5 hours a week ,
20 % people spend 2 to 5 hours a month , 10% people spend 2 to 5 hours a year and 40% people
spend most of the spare time.
7. I borrow and invest in stock market
1) Yes 2) No
ANS-2

Yes; 20; 20%

Yes
No

No; 80; 80%

INTERPRETATION:
From the above picture it is depicted that 80% people invest money in stock market by not
borrowing money and remaining 20% people through borrowing money.
8. The average rate of earnings on my investment for the past five years is
1) Below 10 percent 2)10 to 20 percent
3) Above 20 percent 4) Net loss

Net loss; 15; 15% Below 10 percent; 10; 10%

10 to 20 percent; 15; 15%

Below 10 percent
10 to 20 percent
Above 20 percent
Net loss

Above 20 percent; 60; 60%

INTERPRETATION:
From the above picture it is depicted that 10% people earn below 10 percent , 15 % people earn
10 to 20 percent , 60% people earn above 20 percent and 15% people earn a net loss.
9. My experience in the stock market is
1) Less than 5 years 2) 5 – 10 years
3) Above 10 years

Above 10 Years; 20; 20%

Less than 5 years

Less than 5 years; 50; 50% 5-10 Years
Above 10 Years

5-10 Years ; 30; 30%

INTERPRETATION:
From the above picture it is depicted that 50% people have their experience in stock market for
less than 5 years , 30% people have 5-10 years experience and 20% people have above 10 years
experience
10. Do you like to invest in Jain Irriogation Company?

1) Yes 2) No

No; 25; 25%

yes
No

yes; 75; 75%

INTERPRETATION:
From the above picture it is clearly depicted that 75% people wants to invest in jain irrigation
company and 25% people do not want to invest.
 CHAPTER-8
FINDINGS & CONCLUSION OF THE
STUDY:
 FINDINGS OF THE STUDY:

In case of Jain Irrigation company, the best time to sell the stock was between November 2018 to
February 2018 and due to there is seasonal product make an organization profitable and will
reached its peak level. The best time to buy the stock was in the month of march between 10-25
march, just because of bearish market take turn around with global effect of Donald trump
decision made on hike the steel and aluminum import duty by 21% & 12 % respectively which
gave the indication of Trade war.
According to my study on the basis of projection made above the financial statement with the
analysis of the financial position i.e., Increase in revenue year on year on the compounded
growth of 6.5%. where EPS is calculated on the profit made, whereas P/E of the company are
calculated on the basis of current market price.
It is concluded that Jain Irrigation will hike its price on the average of 6-month investment
purpose.
 Analyzing and interpretation

In this chapter using the Analyses data we have tried to find out the intrinsic value of the
company.
hypothesis test is done to find weather the value of the company is under or overvalued.

calculation of target price

*current market price = 112

1.Target price = p/E on money control*projected EPS of FY-18

=26.89*5= 134.45

NOTE: - P/E on money control = 26.89

projected EPS fy-2018 = 5.5

interpretation: -
here the target price is set on the basis of projection made FY-18, CMP is 112 where target price
is set for investment purpose to make the gain 0f 20.04 % for the term of three month.

2.Target price = projected P/E FY-2018* Projected EPS FY-2018

=33.23*5=166.15

NOTE: - Projected P/E= CMP/FY-17 EPS

projected EPS fy-2018 = 33.23

interpretation:
here the target price is made on the basis of calculation made through projected P/E of FY-2018
And Projected EPS of FY-2018.

Where we get share price after 6-month Rs 166.15 where investor could gain the profit of
48.34%
 CONCLUSION OF THE STUDY:

India has the fourth largest economy in the world by purchasing power parity .Against a
background of global instability, India registered a growth of 7.6% during the financial year
2016, becoming the fastest growing major economy in the world. During the same period,
macroeconomic parameters such as inflation, fiscal deficit and current account balance all
exhibited signs of improvement. The financial year 2016 has also witnessed the launch of several
government programs and initiatives designed to boost manufacturing, industrial growth, foreign
direct investment and ease of doing business. At the sectoral level, growth of agriculture and
allied sectors improved significantly in the financial year 2017, following the normal monsoon in
the current year. Favorable weather and moisture conditions suggest an increase in production of
wheat and pulses. The growth rate for agriculture and allied sectors is estimated to be 4.1% for
the financial year 2018. (Source: Economic Survey 2016-17, available at indiabudget.nic.in)
We conclude from the foregoing that the various valuation models for predicting stock prices
using the fundamental analysis approach, differed in its accuracy and credibility, from a financial
market to another, we find that the Distributions Discounted Models (DDM) proved more useful
than the Discounted Cash Flow Models (DCFM) in developed financial markets, this is the
finding of the study by Penman and Sougiannis (1998) and Subramanyam and Venkatachalam ,
(2007), also Copeland, et al. (1990) confirmed that the DCFM is not characterized by high
credibility when predicting the future stock value, and when comparing between DDM and RIM,
studies it has been shown the most credible model is that model which is based on accounting
data (Residual Income "RI" Model) and this was confirmed by Fung, et al. (2010). On the other
hand, in the emerging financial markets, we find that it is difficult to use both DDM, and DCFM,
because of the difficulty in calculating the Terminal Value (VT) for future periods extending to
the next three years (Subramanyam and Venkatachalam, 2007), so the best models to predict
stock prices in those markets, are the models that rely on financial ratios (e.g., Cheang, et al.,
1997; Chung, et al., 1999 and Chung and Kim, 2001), but these models presuppose that the
existence of financial efficiency is at least a weak efficiency form, so several studies found that
the RIM, which rely on the historical accounting data: the book value and earnings per share,
have proved their usefulness in emerging markets, specifically in the Egyptian financial market
(Ragab and Omran, 2006 and Wafi,et al., 2015). From the above, we reach the result that the best
model that can be relied upon to predict stock prices, is that which proved useful in both the
emerging and developed financial markets, because of its high credibility in both of them, and
does not require efficient market to implement it, this model is Residual Income "RI" Model.
 CHAPTER-9
RECOMENDATIONS & SUGGESTIONS
 Recommendation & suggestion:

1.Before going to invest, an investor should have clear and adequate knowledge of capital
market.
2.It is better to go for Long Term Investment rather than the Short-Term Investment. Because it
is less risky and also provides sufficient return.
3.The investors should know the value of money.
4.Practically, stock market activities are very risky. So, investors should be careful while
investing.
5.In case of half knowledge about stock market is very dangerous. So, whenever a person wants
to invest in stock market he should take necessary tips from the experts or Technical Analysts.
6.Investors should also look into global pressure and market movement in order to look for
avenues of investing in different stocks and to take position; some of the sources for
understanding global pressure are CNBC TV18, News Paper, Economy watch etc.
7. 10 % people favours bank deposites, 50 % of the people invest in shares , 20% in mutual funds
and 20% in Insurance policies
8. 30% people keep their shares in all demat form , 40% people mostly in demat form , 10%
people in physical form and 20% mostly in physical form
9. 80% people invest money in stock market by not borrowing money and remaining 20% people
through borrowing money.
10. 50% people have their experience in stock market for less than 5 years , 30% people have 5-
10 years experience and 20% people have above 10 years experience
11. 75% people wants to invest in jain irrigation company and 25% people do not want to invest.

12. 30% people keep their shares in all demat form , 40% people mostly in demat form , 10%
people in physical form and 20% mostly in physical form
 CHAPTER-10
ANNEXTURE
BIBLIOGRAPHY
 BIBLIOGRAPHY

BOOKS REFERRED:

1.Security Analysis & Portfolio Management, By, Punithavathy Pandian.

2.Investment Analysis & Portfolio Management, By Prasanna Chandra
3.Financial Markets & Institutions, By, Dr. S. Guru Swamy
4.Security Analysis And Portfolio Management, By, Donald Fisher And Ronald J.Jordan,

WEB SITES:

1.www.bseindia.com
2.www.nseindia.com
3.www.stockchart.com
4.www.iifl.com
5.www.investopedia.com
6.www.moneycontrol.com
7.www.equitymaster.com

MAGZINES AND JOURNALS:

1.Annual Reports of Companies

2. Investor Presentation
ANNEXURE
 9 MFY 18 9 MFY17 YOYG
Domestic Revenue = 2,366.7 CR 2,222.8 CR 143.9 CR
Export Revenue = 353.67 CR 219.8 CR 133.87 CR
DOMESTIC REVENUE :
HI – TECH AGRI INPUTS- 1230.68 CR 1155.85 CR 74.83 CR
PLASTIC DIVISION - 1041.34 CR 978.03 CR 63.31 CR
OTHERS - 94.66 CR 88.91 CR 5.75 CR
EXPORT REVENUE :
HI – TECH AGRI INPUTS- 233.42 CR 145.06 CR 88.36 CR
PLASTIC DIVISION - 116.71 CR 72.53 CR 44.18 CR
OTHERS - 3.53 CR 2.198 CR 1.33 CR
 3 QFY18 3QFY17 YOYG
Domestic Revenue = 893.57 CR 701.11 CR 192.46 CR
Export revenue = 133.52 CR 86.65 CR 46.87 CR
DOMESTIC REVENUE :
HI – TECH AGRI INPUTS – 464.65 CR 364.57 CR 100.08 CR
PLASTIC DIVISION - 402.10 CR 315.49 CR 86.61 CR
OTHERS - - 26.80 CR 21.03 CR 5.77 CR
EXPORT REVENUE :
HI – TECH AGRI INPUTS- 102.81 CR 66.72 CR 36.09 CR
PLASTIC DIVISION -29.37 CR 19.92 CR 9.45 CR
OTHERS -0 0
ENTERPRISE VALUE : 12,055.59 CR , BOOK VALUE = 86.71,
PRICE/BOOK VALUE = 5882.85/4157.31= 1.41
RETURN ON CAPITAL EMPLOYED = 2.48
RETURN ON ASSET = 1.57
 9 MFY18 9 MFY17 YOYG
India Revenue = 2,636.24 CR 2,416.32 CR 219.92CR
Rest of World Revenue = 2,532.85 CR 2,142.77 CR 390.08CR
DOMESTIC REVENUE :
HI-TECH AGRI PRODUCTS 1423.56 CR 1304.81 CR 118.75CR
PLASTIC DIVISION 1107.22 CR 1014.85 CR 92.37CR
OTHERS 105.44 CR 96.65 CR 8.79CR
REST OF WORLD :
HI-TECH AGRI PRODUCTS 1287.16 CR 1092.81 CR 194.35CR
PLASTIC DIVISION 630.96 CR 535.69 CR 95.27 CR
AGRO PROCESSING 531.89 CR 449.98 CR 81.91CR
OTHERS 75.71 CR 64.28CR 11.43CR
3 QFY18 3 QFY17 YOYG
India Revenue = 963.69 CR 751.34 CR 212.35Cr
Rest of World Revenue = 925.90 CR 693.55 CR 232.35Cr
DOMESTIC REVENUE :
HI-TECH AGRI INPUTS 539.66 CR 420.75 CR 118.91Cr
PLASTIC DIVISION 404.74 CR 315.56 CR 89.18cr
OTHER 19.27 CR 15.02CR 4.25cr
EXPORT REVENUE :
HI-TECH AGRI INPUTS 481.46 CR 360.64 CR 120.82cr
PLASTIC DIVISION 231.47 CR 173.38 CR 58.09cr
AGRO PROCESSED 185.18 CR 138.71 CR 46.47cr
OTHER 27.77 CR 20.80 CR 6.97cr
Jain Irrigation bags Bhusawal Water Supply project of
Rs 84.5 cr (India Infoline News Service | Mumbai | October 09, 2017 14:28 IST)
.The work involved in this project is intake structures, water treatment plant, a
220km pipeline which includes raw water, pure water main pipelines &
distribution system, 11 Nos of RCC elevated storage tanks. This scheme will
take care of water supply to Bhusawal city (Maharashtra) for the next 30 years.
Under the project, water will be delivered from the Tapi River to the people
staying in the Bhusawal (Maharashtra) city. The project will be implemented in
24 months.

Jain Irrigation bags Amrut Water Supply Project

worth Rs 183 cr (India Infoline News Service | Mumbai | November 14, 2017
09:47 IST)

Jain Irrigation has been awarded a contract of Jalgaon City Water Supply
Scheme under the Amrut Abhiyan Yojana. The project involves design &
construction of 661Km of pipeline and required elevated storage reservoirs and
pump houses.

The project completion time is 24 months

 CHAPTER-11
QUESTIONAIRE
DETAILS OF INVESTMENT PREFERENCES
1. I own the following assets
1) Bank deposits 2) Shares
3) Mutual funds 4) Insurance Policies
ANS- 2
2. My investments in capital market are
1) All in demat form 2) Mostly in demat form
3) All in physical form 4) Mostly in physical form
ANS-2
3.Which technique is most preferable to invest and make money
1)Fundamental 2) Technical
ANS-1
4. The sectors which are represented in my portfolio are (Please tick whichever is
applicable)
1) Banking 2) Auto
3) steel 4) All
ANS-4
5. I prefer to do the investment transactions
1) Through my broker/financial advisor 2) On my own using internet

ANS-1
6. The time I spend for investing activities is
1) 2 to 5 hrs. per week 2) 2 to 5 hrs. per month
3) 2 to 5 hrs. per year 4) Most of my spare time
ANS-4
7. I borrow and invest in stock market
1) Yes 2) No
ANS-2
8. The average rate of earnings on my investment for the past five years is
1) Below 10 percent 2)10 to 20 percent
3) Above 20 percent 4) Net loss
ANS-3
9. My experience in the stock market is
1) Less than 5 years 2) 5 – 10 years
3) Above 10 years
ANS-1
10. Do you like to invest in Jain Irrigation Company?

1) Yes 2) No

ANS-1