CHAPTER I

(INTRODUCTION)

INTRODUCTION

Cash management is also known as treasury management, refers to the process of

collection, management, and usage of cash flows for the purpose of maintaining a
decent level of liquidity, and it involves financial instruments such as treasury bills,
certificate of deposit, and money market funds making the same substance for not just
individuals but organizations too.

Types of Cash Management

1: Cash flows from operating activities
One of the most important forms of cash management. The cash flow statement of a
business is described here. It is illustrated where the money comes from and how it is
used in continuous, routine corporate operations. This is carried out for a specific fiscal
period. This indicates any adjustments to the company's operating capital. Additionally,
you can evaluate the financial health of your company here. You can also apply for cash
flow loans if you don't have enough money to handle other expenses on a daily basis
and search for lenders with cheap interest rates.

2: Free cash flow to equity

This is the amount of cash a company generates for cash management purposes. In the
event that business does well, this sum may be distributed to shareholders. This is

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crucial in figuring out your company's financial situation. This sum is derived by
subtracting the business's capital expenditures from the cash from operating activities.
To keep your business afloat, you should always have growing cash flows.

3: Free cash flow to the firm

The amount of cash flow from operations that is available for distribution after
depreciation costs, taxes, working capital, and investments are taken into account and
paid for is known as free cash flow to the firm (FCFF). After all costs and
reinvestments, FCFF is essentially a gauge of a company's profitability. It is one of the
many benchmarks that are used to evaluate and compare the financial stability of a
company. An organisation can determine the sums paid out to investors thanks to this
evaluation.

4: The net change in cash

The amount by which a company's cash balance rises or falls throughout an accounting
period is known as the net change in cash. It's crucial to keep an eye on a company's net
change in cash when you own or are thinking about purchasing stock in order to make
sure it doesn't run out. This form of cash management is equally crucial to understand.
It allows you to assess the performance of your revenue-generating methods. You can
then make the necessary adjustments as a result.

Meeting working capital needs, managing disorganised expenses, planning capital

expenditures, wisely using funds, planning capital expenditures, and starting
investments are some of the goals of cash management.

Different Types of Cash Management Methods:

 Short-term instruments such as Money Market instruments and mutual funds,
Treasury Bills, certificates of deposit (CD), etc.

 Checking account
 Savings account
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  Long term low-risk savings instrument

OBJECTIVES OF THE STUDY

 To study and understand the concepts of cash management at BAJAJ CAPITAL

LTD.
 To analysis the liquidity position of the company.
 Identify and examine the various methods adopted by the firm.
 To analysis the performance of cash management of the company.
 To make suggestion based on the finding of the study.

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NEED FOR THE STUDY

 The study is conducted to understand the concepts of cash management of

BAJAJ CAPITAL LTD. Evaluate the performance of the cash management.
 The study also involves the comparison of investment performance of cash
management.
 To focus on Cash flow prediction of Bajaj capital limited.
 To focus on Successful inflow and outflow collection of Bajaj capital Limited.

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SCOPE OF THE STUDY

 The study covers advances, loans, payables, receivables, income, and cash
management system of BAJAJ CAPITAL LTD and overall aspect of cash flow.
 The study covers cash size, components of cash balance, control of cash flows,
operating cash flow and cash flow statement of BAJAJ CAPITAL LTD.

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PERIOD OF THE STUDY

 The study on “cash management’ is confined to Bajaj Capital limited.

 The study period covers 45 days of data.
 The study consists of past 5 years of data of Bajaj Capital limited.

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LIMITATIONS OF THE STUDY

 The time period for the project is only 45 days.

 The data which is used for previous five years which is a limited data.
 It is based on the historical and secondary data.
 The detailed study could not be conducted on the topic.
 The complete information could not be provided by the company due to
confidentiality.

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 CHAPTER II

(REVIEW OF LITERATURE)

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REVIEW OF LITERATURE

Waltson and Head (2017) has described the notion of cash management, which focuses
on increasing the amount of cash accessible, increasing the interest gained on excess
money not immediately needed, and minimising losses brought on by delays in the
transmission of funds.

According to Zimmerer et al (215) Forecasting, gathering, disbursing, investing, and

planning for the cash a firm needs to run efficiently are all parts of cash management.
They continued by saying that managing cash is essential because it is the most
significant yet least productive asset a small organisation owns. A company must have
enough cash on hand to pay its debts or it will be deemed bankrupt. Cash is the only
acceptable form of payment, and all parties involved in the transaction expect to be paid
on time.

Zimmerer etal (2018) However, some businesses keep an excessive quantity of cash on
hand in case any unforeseen problems materialise. Owners are neglecting the income-
earning potential of this dormant wealth, which limits a company's growth and
diminishes its profitability.

Jeffrey P. Davidson etal (2019) Cash management is crucial for startups and expanding
businesses. stated in their book that a small firm might still experience cash flow issues
even if it has a large customer base, a top-notch product to sell, and a stellar reputation
in its field.

Westerfield etal (2020) It was noted that it is important to distinguish between actual
cash management and the more general idea of liquidity management. The distinction
could be unclear since the word "cash" is used in practise in two different ways.

Mwila Mulenga (2016) Based on the assertion made by the Financial Accounting Standard Board
(FASB), which states that earnings and its components have a better predictive power than cash
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flow itself, research on the relative ability of accounting information aims to examine the ability
of accounting information to predict future cash flow and earnings (FASB,1978 para 44).

Anton Stigo etal (2018) The goal of cash management, which is also known as
management of cash flow, is to accept inflows as soon as feasible and to
postponeoutflows for as long as possible without incurring additional costs. Without
cash, companies might not be able to pay for current expenses, which increases the risk
of non-payment. Therefore, the ability to handle cash flows effectively is fundamental
to any successful firm.

Filbeck G. etal. (2018) examined the data from 26 industries using information from
970 companies between 1996 and 1999. They discovered that by reducing the amount
of money tied to current assets, businesses can lower financing costs and/or increase the
funds available for development.

Sayaduzzaman MD. (2019) By analysing five years of data from 1999-2000 to 2002-
2003, it was determined that British American Tobacco's management is extremely
reasonable as a result of the positive cash inflows and intended method in running the
key components of working capital. Ganesan (2007) employed a sample of 349 telecom
equipment manufacturers for the years 2001–2007. Current ratio, day's receivable, day's
inventory, day's payable, day's working capital, and cash conversion efficiency were the
independent variables employed.

Lazaridis and Tryfonidis (2018) Accounts payable and relationships are good. There is
no disagreement between the authors regarding the negative association between debt
financing and leverage. The variable cash conversion efficiency, which was only
employed by one author (Ganesan, 2007), shows absolutely no correlation with
profitability. Raheman and Nasr (2007) chose a sample of 94 listed Pakistani businesses
from various economic sectors across an 8-year period, from 1999 to 2004.
Current ratio, day's receivable, day's inventory, day's payable, and cash conversion
cycle were the independent variables employed. The empirical association between the
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two variables was also presented by Teruel and Martinez-Solano (2007). They selected
8872 small to medium-sized Spanish businesses as their sample, which ranged in size
from 1996 to 2002.

In Christopher and Kamalavalli (2016) They used panel data analysis to look into a
sample of 14 corporate hospitals in India from 1996–1997 to 2005–2006. Current ratio,
quick ratio, inventory turnover ratio, working capital turnover ratio, debtor's turnover
ratio, ratio of current asset to total asset, ratio of current asset to operating income,
comprehensive liquidity index, size of net liquid balance, leverage, and growth were the
independent variables used.

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RESEARCH GAP

A review of literature indicates that cash management plays an important role in the
success and continuity. A number of research studies were undertaken in order to
explain the cash management in financial markets. Besides, the available literature on
cash management practices of financial markets in the local context has certain
limitations. Firstly, majority of these studies have focused on five common aspects such
as size of cash, components of cash balance, control of cash flows, operational
adequacy cash assessment, But in this project the researcher has identified cash
management as gap where no further studies were taken up. This study intends to
address the above potential research gaps by answering following research questions;

 How do the cash management systems of BAJAJ CAPITAL LTD work?

 Do the BAJAJ CAPITAL LTD effectively identify, assess, analyse, monitor and control
cash flow ?
 What are the cash management practices and techniques adopted by BAJAJ CAPITAL
LTD ?
CONCEPTUAL FRAMEWORK

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 CASH
FORECASTING

CASH COLLECTIONS PRODUCT/SERVICE

ACCOUNT
SALES
PAYABLES

ACCOUNTS CASH LIQUIDITY

RECEIVABLES MANAGEMENT MANAGEMENT

Cash management:-
Cash management is also known as treasury management, refers to the process of
collection, management, and usage of cash flows for the purpose of maintaining a
decent level of liquidity, and it involves financial instruments such as treasury bills,
certificate of deposit, and money market funds making the same substance for not just
individuals but organizations too.

Cash management includes:- Accounts Receivables:-

Accounts receivable (AR) is the balance of money due to a firm for goods or services
delivered or used but not yet paid for by customers. Accounts receivable are listed on
the balance sheet as a current asset. AR is any amount of money owed by customers for
purchases made on credit.
Accounts receivable, abbreviated as AR or A/R, are legally enforceable claims for payment held
by a business for goods supplied or services rendered that customers have ordered but not paid
for. These are generally in the form of invoices raised by a business and delivered to the customer
for payment within an agreed time frame. Accounts receivable is shown in a balance sheet as an
asset. It is one of a series of accounting transactions dealing with the billing of a customer for

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goods and services that the customer has ordered. These may be distinguished from notes
receivable, which are debts created through formal legal instruments called promissory notes.

Accounts payable:-
Accounts payable (AP) is an accounting term used to describe the money owed to vendors or
suppliers for goods or services purchased on credit.
Accounts payable (AP) is money owed by a business to its suppliers shown as a liability
on a company's balance sheet. It is distinct from notes payable liabilities, which are
debts created by formal legal instrument documents. An accounts payable department's
main responsibility is to process and review transactions between the company and its
suppliers and to make sure that all outstanding invoices from their suppliers are
approved, processed, and paid. Processing an invoice includes recording important data
from the invoice and inputting it into the company's financial, or bookkeeping, system.
After this is accomplished, the invoices must go through the company's respective
business process in order to be paid.

Cash collection:-
Cash collection is a function of[clarify] Accounts receivable. It is the recovery of cash from a
business or individual with which you have issued an Invoice.
It is the aim of the Cash collection function of a business to collect Monies for all
outstanding invoices before they become overdue and to mediate payment arrangements
to ensure that invoiced debts do not become doubtful or bad.

Cash forecasting:-
Cash flow forecasting is the process of obtaining an estimate or forecast of a company's
future financial position; the cash flow forecast is typically based on anticipated
payments and receivables. See Financial forecast for general discussion re
methodology.

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 CHAPTER III

(RESEARCH METHODOLOGY)

- 15
RESEARCH METHODOLOGY

For understanding the project, following research methodology are adopted:

Primary data
Primary data is the first hand information that the researcher collects. It helps in
collecting useful and most accurate information that is needed for the researcher to do
his research.

Sources:
 Questionnaires
 Interview schedule

Secondary data
Secondary data is what the researcher collects from the different sources like
Magazines, Annual reports, Internet, text books. It also helps researcher to get elaborate
information to do his research.

Secondary data sources

 Annual reports
 Company records
 Data published on websites
 Journals
 Websites
TOOLS AND TECHNIQUES

 Size of cash
 Components of cash balance
 Control of cash flow
• Cash to total current assets ratio
• Cash to sales ratio

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 • Cash to debt service ratio
• Cash to current liabilities ratio
 Operational adequacy of cash
• Interval measure ratio
• Cash turnover ratio
• Cash no of days holding period

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 CHAPTER-IV

(DATA ANALYSIS & INTERPRETATION)

DATA ANALYSIS & INTERPRETATION

1. SIZE OF CASH

FORMULA:

SIZE OF CASH: CURRENT ASSETS / TOTAL ANNUAL CASH*100

Current assets 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

Amount (Rs) % Amount (Rs) % Amount (Rs) % Amount (Rs) % Amount (Rs) %

Cash at bank 4650000 23.77 4285841 23.69 2396737 20.18 2715535 19.1 2423567(Rs) 18.96

Sundry creditors 8193631 41.89 6831412 37.8 5125948 42.75 8425023 59.13 6582462(Rs) 51.52

Cash at Bajaj 5274479 26.97 5713231 31.58 1736122 19.62 188750 13.25 1813566(Rs) 14.2
capital

Loans & advances 1437163 7.35 1256961 6.95 2665231 22.45 12211 8.56 1958125(Rs) 15.32

Total 19555273 18136940 11874038 14249137 12777720

SOURCE: From the annual report.

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 Interpretation: -
During the year 2016-2017 the sundry creditors is 41.89% and there is increasing in the year
2017-2018, 2018-2019, 2019-2020, 2020-2021.
2. COMPONENTS OF CASH BALANCE
FORMULA:
COMPONENTS OF CASH BALANCE: CURRENT ASSETS /TOTAL ANNUAL CASH*100

Cash and Bajaj 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

capital balances

Amount (Rs) % Amount (Rs) % Amount (Rs) % Amount (Rs) % Amount(Rs) %

Cash in hand 32424 0.61 62277 1.09 91498 5.12 112311 6.33 135624 7.48

Cash at scheduled 5242005 99.39 5650954 98.91 1694624 94.88 1775189 93.67 1677942 92.52
Bajaj capital
Total 5274479 5713231 1786122 1887500 1813566

SOURCE: - From Annual Reports.

Graph:

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 120 99.39 98.91 94.88 93.67 92.52

100

80

60

40

20

7.48
Cash in hand Cash at scheduled bajaj capital
0.61 1.09 5.12 6.33

2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

Interpretation; -
In the year 2016-2017 the Cash in hand was 0.61% and cash at scheduled Bajaj capital
was 99.39% . The cash in hand is increasing yearly wise and cash at scheduled bajaj
capital is decreasing yearly wise.
3. CONTROLS OF CASH FLOWS

The twin goals of cash management are to decrease cash moulding while also
maintaining liquidity. This suggests that cash holdings should be maximised without
compromising the company's overall liquidity requirements. By maintaining strict
control over monetary flows, this goal might be accomplished. The following ratios are
developed to determine how well cash controls are operating at the aforementioned
Bajaj Capital.

A. Cash To Total Current Asset Ratio.

B. Cash To Sales Ratio.

C. Cash To Debt Services Ratio.

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D. Cash To Current Liabilities Ratio.

- 21
A. CASH TO TOTAL CURRENT ASSETS RATIO: -

FORMULA:
Cash to total current assets = cash & Cash equivalents / total current assets * 100

YEAR CASH CURRENT ASSETS RATIO

2016-2017 52,74,479 1,95,55,273 26.97

2017-2018 57,13,231 1,80,86,940 31.59

2018-2019 17,86,122 1,18,74,039 15.04

2019-2020 18,87,500 1,42,49,137 13.25

2020-2021 18,13,566 1,56,47,173 11.59

Source: From the annual report.

Graph:

35 31.59
26.97
30
25
20 15.04
13.25
15 11.59

10

2016- 2017- 2018- 2019- 2020-

2017 2018 2019 2020 2021

RATIO

Interpretation: -

From the above graph the cash to current assets of Bajaj Capital Ltd. is good in the year
2017-2018 when compared with remaining four years.

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B. CASH TO SALES RATIO:-

FORMULA:
Cash to sales = cash & cash equivalents / net sales * 100

YEAR CASH SALES RATIO

2016-2017 52,74,479 3,40,79,578 15.476

2017-2018 57,13,231 2,55,36,847 22.372

2018-2019 17,86,122 2,32,16,172 7.48

2019-2020 18,87,500 3,64,28,502 5.18

2020-2021 18,13,566 3,56,45,503 5.09

Source: From annual Reports.

Graph:

25 22.372
20
15.476
15
10 7.48
5.18 5.09

2016- 2017- 2018- 2019- 2020-

2017 2018 2019 2020 2021

RATIO

Interpretation: -

From the above graph the cash to sale ratio of Bajaj Capital Ltd. is good in the year 2017-2018
when compared with remaining four years.

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C. CASH TO DEBT SERVICE RATIO:-

FORMULA:
Cash to Debt service = Annual cash flows before interest & tax / Interest

YEAR ANNUAL INTEREST RATIO

CASHFL
OW

2016-2017 13,85,238 10,58,838 1.3

2017-2018 7,89,654 6,44,878 1.22

2018-2019 3,83,813 6,58,196 0.58

2019-2020 17,43,125 8,94,856 1.94

2020-2021 23,36,853 9,34,635 2.6

Source: from the annual report.

Graph:

2.6

2.5
1.94

1.3 1.22
1.5

0.58
0.5
2016- 2017- 2018- 2019- 2020-
2017 2018 2019 2020 2021
RATIO

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Interpretation; -

From the above graph the cash to debt service ratio of Bajaj Capital Ltd. is good in the year
2020-2021 when compared with remaining four years.
D. CASH TO CURRENT LIABILITY RATIO:-

FORMULA:
Cash to current liability = Cash & cash equivalents / Total current liabilities
YEAR CASH CURRENT RATIO
LIABILITIES

2016-2017 52,74,489 75,04,216 0.70

2017-2018 57,13,231 48,41,553 1.18

2018-2019 17,86,122 55,76,428 0.31

2019-2020 18,87,500 65,03,122 0.29

2020-2021 18,13,566 68,45,287 0.26

Source: From the annual report Graph:

1.4 1.18
1.2

0.7
0.8
0.6
0.31 0.29 0.26
0.4
0.2

2016- 2017- 2018- 2019- 2020-

2017 2018 2019 2020 2021

RATIO

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Interpretation: -

From the above graph the cash to current liabilities of Bajaj Capital Ltd. is good in the year
2017-2018 when compared with remaining four years.
4. OPERATIONAL ADEQUACY OF CASH

The Operational adequacy of Cash Ratio, a liquidity ratio, is a measure of how well a
company can pay off its current liabilities with the cash flow generated from its core
business operations. These financial metric shows how much a company earns from its
operating activities, per rupee of current liabilities the following ratios are calculated.

A. Interval measure ratio

B. Cash turnover ratio

C. Cash no. of days holding period.

Quick or Liquid Assets

Interval measure = Average daily cash operating expenses

Average daily cash operating expenses= Total operating cash expenses for the year

No. of days in a year

Total operating expenses for the year = Cost of goods sold + Admin. exp & office exp + Sell
& Dis exp
Cost of goods sold = purchases + opening stock – closing stock – man. exp.

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 A. INTERVAL MEASURE RATIO
FORMULA:
Interval measure: liquid assets / Average daily cash operating expenses

YEAR LIQUID ASSETS A.D.C.O.E RATIO

Or (DAYS)
INTERVAL
MEASURE

2016-2017 1,34,68,110 88,799 152

2017-2018 1,25,44,138 68,196 184

2018-2019 68,12,120 64,261 111

2019-2020 1,03,12,523 76,713 134

2020-2021 1,43,56,746 86,457 166

SOURCE: from the annual report.

Graph:
200 184
180 166
152
160 134
140 111
120
100
80
60
40
20
2016- 2017- 2018- 2019- 2020-
2017 2018 2019 2020 2021

RATIO

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FORMULA:
Interpretation: -

From the above graph the interval measure ratio of Bajaj Capital Ltd. is good in the year
2017-2018 when compared with the remaining four years.
B. CASH TURNOVER RATIO
FORMULA:
Cash Turnover: Revenue (sales) / cash & cash equivalents
YEAR SALES CASH RATIO

2016-2017 3,40,79,578 52,74,479 6.46

2017-2018 2,55,36,847 57,13,231 4.47

2018-2019 2,32,16,172 17,86,122 13.37

2019-2020 3,64,28,502 18,87,500 19.30

2020-2021 3,56,45,503 18,13,566 19.65

Source: from the annual report.

Graph:

25
19.3 19.65
20
15 13.37

10 6.46
4.47

2016- 2017- 2018- 2019- 2020-

2017 2018 2019 2020 2021

RATIO

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Interpretation: -
From the above graph the cash turnover ratio of Bajaj Capital Ltd. is good in the year
2020-2021 when compared with remaining four years.
C. CASH NO OF DAY’S HOLDING PERIOD

Cash no. of days holding period = 360 / CASH TURNOVER RATIO

YEAR CASH TERNOVER 360/C.T CASH NO OF DAYS

HOLDINING

2016-2017 52,74,479 360/6.46 55.73

2017-2018 57,13,231 360/4.47 80.74

2018-2019 17,86,122 360/13.07 26.73

2019-2020 18,87,500 360/19.3 18.65

2020-2021 18,13,566 360/19.65 18.32

Source: From annual Reports.

Graph:

90 80.74
80
70 55.73
60
50
26.73
40 18.65 18.32
30
20
2016- 2017- 2018- 2019- 2020-
2017 2018 2019 2020 2021

CASH NO OF DAYS HOLDINING

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FORMULA:
Interpretation: -

From the above graph the Cash number of days holding period of Bajaj Capital Ltd.
Is good in the year 2017-2018 when compared with remaining four years.

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 CHAPTER-V

(FINDINGS, SUGGESTIONS & CONCLUSIONS)

- 31
FINDINGS

1. During the year 2016-2017 the sundry creditors is 41.89% and there is
increasing in the year 2017-2018, 2018-2019, 2019-2020, 2020-2021.
2. In the year 2016-2017 the Cash in hand was 0.61% and cash at scheduled Bajaj
capital was 99.39% . The cash in hand is increasing yearly wise and cash at
scheduled bajaj capital is decreasing yearly wise.
3. Cash to current assets of Bajaj Capital Ltd. is good in the year 2017-2018 when
compared with remaining four years.

4. Cash to sale ratio of Bajaj Capital Ltd. is good in the year 2017-2018 when
compared with remaining four years.
5. Cash to debt service ratio of Bajaj Capital Ltd. is good in the year 20202021
when compared with remaining four years.
6. Cash to current liabilities of Bajaj Capital Ltd. is good in the year 20172018
when compared with remaining four years.

7. Interval measure ratio of Bajaj Capital Ltd. is good in the year 2017-2018 when
compared with the remaining four years.
8. Cash turnover ratio of Bajaj Capital Ltd. is good in the year 2020-2021 when
compared with remaining four years.

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 9. The Cash number of days holding period of Bajaj Capital Ltd. Is good in the
year 2017-2018 when compared with remaining four years.
SUGGESTIONS

 The CASH TO TOTAL ASSETS RATIO has been declining over the years. So,
it helps with organisation.
 During the period 2010–2021, the cash to debt service ratio was 2.6.
 The CASH TURNOVER RATIO has been rising over the years. Therefore, it
benefits the organisation.
 The CASH TO CURRENTS LIABILITIES RATIO has been declining over the
years. As a result, the organisation suffers.
 Cash flow statements are an essential analytical tool in the hands of the financial
management, hence Bajaj Capital should generate them on a regular basis. It
aids management in carrying out efficient cash management.

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CONCLUSIONS

Cash Management is the prime & most important requirement for carrying out
day to day operations of the business. Cash Management gives much needed
liquidity to the business. Cash management reduces the overall fund
requirement, required to build up the Current Assets, which in turn help the
company to improve the turnover ratios. Hence, I conclude that Bajaj Capital
Limited is very good at managing its debts and maintaining its assets. It is also
focusing on investing in current assets, so that those assets generate returns
which will be helpful in controlling the cost of short term debts & also
meeting short term expenses.

- 34 -
 INDUSTYRY PROFILE INDUSTYRY
PROFILE
INTRODUCTION

A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks
(also called shares), which represent ownership claims on businesses; these may include
securities listed on a public stock exchange, as well as stock that is only traded privately, such as
shares of private companies which are sold to investors through equity crowdfunding platforms.
Investment is usually made with an investment strategy in mind.

- 35 -
SIZE OF THE MARKET

The total market capitalization of all publicly traded securities worldwide rose from US$2.5
trillion in 1980 to US$93.7 trillion at the end of 2020.
As of 2016, there are 60 stock exchanges in the world. Of these, there are 16 exchanges with a
market capitalization of $1 trillion or more, and they account for 87% of global market
capitalization. Apart from the Australian Securities Exchange, these 16 exchanges are all in
North America, Europe, or Asia.
By country, the largest stock markets as of January 2021 are in the United States of America
(about 55.9%), followed by Japan (about 7.4%) and China (about 5.4%).

HISTORY

- 36 -
The history of the share market of India dates back to 1875. The name of the first share trading
association in India was “Native Share and Stock Broker's Association” which later came to be
known as Bombay Stock Exchange (BSE). This association began with 318 members.

STOCK EXCHANGE

A stock exchange is an exchange (or bourse) where stockbrokers and traders can buy and sell
shares (equity stock), bonds, and other securities. Many large companies have their stocks listed
on a stock exchange. This makes the stock more liquid and thus more attractive to many
investors. The exchange may also act as a guarantor of settlement. These and other stocks may
also be traded "over the counter" (OTC), that is, through a dealer. Some large companies will
have their stock listed on more than one exchange in different countries, so as to attract
international investors.
Stock exchanges may also cover other types of securities, such as fixed-interest securities
(bonds) or (less frequently) derivatives, which are more likely to be traded OTC.

NSE (NATIONAL STOCK EXCHANGE OF INDIA)

National Stock Exchange of India Limited (NSE) is the leading stock exchange of India, located
in Mumbai, Maharashtra. It is the world’s largest derivatives exchange in 2021 by number of
contracts traded based on the statistics maintained by Futures Industry Association (FIA), a
derivatives trade body. NSE is ranked 4th in the world in cash equities by number of trades as
per the statistics maintained by the World Federation of Exchanges (WFE) for the calendar year
2021. It is under the ownership of some leading financial institutions, banks, and insurance
companies. NSE was established in 1992 as the first dematerialized electronic exchange in the
country. NSE was the first exchange in the country to provide a modern, fully automated
screenbased electronic trading system that offered easy trading facilities to investors spread
across the length and breadth of the country. Ashishkumar Chauhan is the Managing Director
and Chief Executive Officer of NSE. The Indian stock exchange BSE and NSE has been
engulfed in series of corruption scandals such as 1992 Indian stock market scam and others.

- 37 -
National Stock Exchange has a total market capitalization of more than US$3.4 trillion, making
it the world's 10th-largest stock exchange as of August 2021.NSE's flagship index, the NIFTY
50, a 50 stock index is used extensively by investors in India and around the world as a
barometer of the Indian capital market. The NIFTY 50 index was launched in 1996 by NSE.
However, Vaidyanathan (2016) estimates that only about 4% of the Indian economy / GDP is
actually derived from the stock exchanges in India.

BSE (BOMBAY STOCK EXCHANGE OF INDIA)

BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange
located on Dalal Street in Mumbai. Established in 1875 by cotton merchant Premchand
Roychand, a Jain businessman, it is the oldest stock exchange in Asia, and also the tenth oldest
in the world. The BSE is the 8th largest stock exchange with an overall market capitalisation of
more than ₹276.713 lakh crore, as of January 2022. The Indian stock exchange BSE and NSE
has been engulfed in series of corruption scandals such as 1992 Indian stock market scam and
others.
Unlike countries like the United States where nearly 70% of the country's GDP is derived from
large companies in the corporate sector, the corporate sector in India accounts for only 12–14%
of the national GDP (as of October 2016). Of these only 7,400 companies are listed of which
only 4000 trade on the stock exchanges at BSE and NSE. Hence the stocks trading at the BSE
and NSE account for only around 4% of the Indian economy, which derives most of its
incomerelated activity from the so-called unorganized sector and household spending.

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 COMPANY PROFILE COMPANY PROFILE

INTRODUCTION

Bajaj Group is an Indian multinational conglomerate founded by Jamnalal Bajaj in Mumbai in

1926. The group comprises 34 companies and its flagship company Bajaj Auto is ranked as the
world's fourth largest two- and three-wheeler manufacturer. Other notable group companies
include Bajaj Finance, Bajaj Finserv, Bajaj Electricals, Mukand, and Bajaj Holdings &
Investment.[6] The group has involvement in various industries that include automobiles (2- and
3-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.
Bajaj Capital Limited operates as an investment management company. The Company offers
wealth management, tax savings, mutual fund, bonds, fixed deposits, pension systems,
depository, and financial advisory services. Bajaj Capital serves customers in India.

Mission
Provide need-based solutions at the right value, gaining lifetime client relationships through a
happy team & service excellence.

Vision

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India's most admired & recommended wealth creation & protection brand.

History
The Bajaj Group of Companies was founded by Jamnalal Bajaj.
Kamalnayan Bajaj (1915–1972)
Kamalnayan Bajaj, the elder son of Jamanalal Bajaj, after completing his education from
University of Cambridge, England to assist his father both in business and in social service. He
expanded the business by branching into manufacture of scooter, three-wheeler, cement, alloy
casting and electricals. In 1954, Kamalnayan took over active management of the Bajaj Group
companies.

Ramkrishna Bajaj (1924–1994)

Ramkrishna Bajaj, the younger son of Jamanalal, took over after the death of his elder brother
Kamalnayan Bajaj in 1972. In addition to shouldering business responsibilities, Ramkrishna's
energies were largely directed towards the social service and social welfare programmes of the
Bajaj Group. He was elected as the Chairman of World Assembly for Youth (India) in 1961. He
also held the office of the Managing Trustee of the Indian Youth Centres Trust, which conceived
and created the Vishwa Yuvak Kendra in 1968, a youth development organisation.

Rahul Bajaj (1938–2022)

Rahul Bajaj, the chairman emeritus and former managing director (until 2005) of the Bajaj group
was the grandson of Jamnalal Bajaj. He completed his schooling from Cathedral, a school in
Bombay. Then he pursued his studies from St Stephen's College, Delhi, Government Law
College, Mumbai and Harvard University, USA. He took over control of the Bajaj Group in
1965 and established one of India's largest conglomerates. The President of India, presented CII
President's Award for Lifetime Achievement to Mr. Rahul Bajaj on 27 April 2017.

AWARDS

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Bajaj Capital Wins Indian Family Business Award 2021

Recently at the Indian Family Business Awards 2021, Bajaj Capital was conferred with the
honour of being the Most Innovative, Disruptive and Transformational Business, complementing
the organization for its contribution of being an Industry leader in the financial services arena
and coming up with need-based as well as time suitable solutions for the clients.

CNBC-TV18 Financial Advisors Awards 2012

CNBC-TV18 Financial Advisors Awards 2012 in association with UTI Mutual Fund were
instituted to honour and felicitate individuals and institutions that have worked silently behind
the scenes to ensure wealth creation for the Indian investor.

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Best Wealth Management Company 2009

Bajaj Capital has won prestigious Best Wealth Management Company award for the year
20082009 (Source: Business Sphere)

Great Places to Work (2008, 2009, 2010 and 2011)

Great Place to Work® Institute is a global research, consulting and training firm that helps
organisations identify, create and sustain great workplaces through the development of high-trust
workplace cultures. We serve businesses, non-profits and government agencies in 45 countries
on all six continents.

Some of the services that Bajaj Capital offers for securing the financial future of
millions of families are:
• Choose from the best Insurance Options- The Clients get to know the best Insurance
options that they can choose from and safeguard their Life, Health, and other important
assets. RM-assisted services are rendered to make the experience seamless.
• Online Mutual Funds Platform- Investment in Mutual Funds is made easy with a
convenient and easy-to-operate online platform where anyone can start with their
investment journey by opening a free account.
• Edge Report for Investments- Bajaj Capital offers the industry’s most comprehensive
Edge Reports that tracks and analyze an individual’s investment portfolio.
• NPS Dashboard for NPS Investments - The first of its kind platform to track your
Investment through a ‘Single View Dashboard.’

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• Retirement Plan for 100 Years of Life - Bajaj Capital is India’s first fully focused
retirement planning organization. Retirement is the most important of life goals is often
overlooked by most individuals. A 100-year Cash Flow Planning and Retirement Planning
is made possible through proper guidance of right investments to be done for the Golden
years.
• Investor Education- and awareness through The FINtastic Talks with Sanjiv Bajaj- A new
generation talk show hosted by Mr. Sanjiv Bajaj, Jt. Chairman & M.D. Bajaj Capital,
hosting the top voices in the finance sector.

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