XAVIER INSTITUTE OF SOCIAL SERVICE SYNOPSIS FOR THE SUMMER PROJECT TOPIC : FUNDAMENTAL ANALYSIS CASH MANAGEMENT AND

FOREX MANAGEMENT IN TATA FIAT PUNE COMPANY OPTED : FIAT INDIA AUTOMOBILE PRIVATE LIMITED GUIDE FOR THE PROJECT IN COLLEAGE : PROFF. ARUP MUKERJEE IN ORGANISATION :Mr. KRISHANA MOHAN SUBMITTED BY : PRIYADARSHINI JHA FINANCE I ROLL No. - 39 TOPIC : FUNDAMENTAL ANALYSIS, CASH MANAGEMENT AND FOREX MANAGEMENT IN TATA FIAT PUNE CHAP 1: INTRODUCTION about the company Fiat India Automobiles Limited is a 50-50 Industrial Joint Venture between Fiat Group Automobiles S. p. A., (Fiat) and Tata Motors Limited (Tata) originally inc orporated on January 02, 1997. The company presently employs about 600 employees and is located at Ranjangaon in the Pune District of Maharashtra. The definitiv e agreement of the Joint Venture was signed on October 19th 2007. The board of d irectors for this company comprises of five nominees each from Fiat and Tata. The state-of -the-art facility at Ranjangaon, will have an installed capacity to produce 100,000 cars and 200,000 engines, besides aggregates and components. Th e company plans to double the production capacity for both car units and engines in the next few years. This facility is currently manufacturing the Palio Stile 1.1 and 1.6 models, as well as premium Fiat cars such as the Grande Punto and L inea. The facility will also manufacture Fiats successful 1.3 litre Multijet dies el engines and 1.2 & 1.4 litre Fire gasoline engine. Apart from Fiat cars, the f acility will also produce Tata passenger and next generation cars with investmen t exceeding 650 Million. The plant is expected to provide direct and indirect em ployment to more than 4,000 people. Fiat, which holds a 50% stake in the Company, also owns and controls five intern ationally renowned brands:- Fiat Automobiles, Alfa Romeo Automobiles, Lancia Aut omobiles, Abarth and Fiat Light Commercial Vehicles, the makers of renowned cars such as the Ferrari, Maserati, Alfa Romeo and Lancia besides the Fiat branded c ars. Tata Motors Limited, the other partner to the Joint Venture, is the largest auto mobile company in India, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader in commercial vehicles in every segment and the secon d largest in the passenger vehicles market with winning products in the compact, mid-size car and utility vehicle segments. The company is the worlds fifth large st medium and heavy commercial vehicle manufacturer and the worlds second largest medium and heavy bus manufacturer Fundamental Analysis Need of study: In a business anything done financially affects cash eventually. Cash is to a bu siness is what blood is to a living body. A business cannot operate without its life-blood cash, and without cash management, there may remain no cash to operat e. Cash movement in a business is two- way traffic. It keeps on moving in and ou t of business. The inflow and outflow of cash never coincides. Important aspect which is unique to cash management is time dimension associated with the movemen t of cash. Due to non-synchronicity of cash inflow and outflow, the inflow may b e more than the outflow or the outflow may be more than the inflow at a particul ar point of time. This needs regulation. Left to itself cash flow is apt to foll ow monsoonic pattern, and showers of cash may be heavy, scanty or just normal. H

ence there is a dire need to control its movement through skillful cash manageme nt. The primary aim of cash management is to ensure that there should be enough cash availability when the needs arises, not too much, but never too little. Cash Management Services Generally offered The following is a list of services generally offered by banks and utilised by l arger businesses and corporations: Account Reconcilement Services: Balancing a checkbook can be a difficult process for a very large business, since it issues so many checks it can take a lot of human monitoring to understand which checks have not cleared and therefore what the c ompany s true balance is. To address this, banks have developed a system which a llows companies to upload a list of all the checks that they issue on a daily ba sis, so that at the end of the month the bank statement will show not only which checks have cleared, but also which have not. More recently, banks have used th is system to prevent checks from being fraudulently cashed if they are not on th e list, a process known as positive pay. Through this project we analyze the overall working of tata fiat. Tat a fiat an joint venture between tata and fiat. Tata fiat pune has basically thre e divisions namely: Power train: it mainly manufactures 1.3 litre Multijet diesel engines and 1.2 & 1.4 litre Fire gasoline engine. Cars : this division is engaged in manufacturing cars as Palio, Linea, Grande Pu nto ,manza ,indica Corporate: this division handles the above two division of power train and cars this division involves finance and supply chain management of tata fiat. My proj ects mainly restricts to corporate division of tata fiat with finance as core pa per Under my project the finance department will be followed with all the details of its working the cash management.cash position and foreign exchange of tata fiat

Technical Analysis This method analyses a companys stock price by using market data such as stock pr ice, volume of stock traded, stock price volatility and market trends. A person usin g technical analysis to value a stock does not look at company data at all. Instead they rel y upon market trends to determine how a stock price may change in the future. Using tec hnical analysis to value a stock will require the use of market data, financial charts and tables. By analyzing the data you will form an opinion about the sto ck price and market trend and make your decision accordingly. As you can see tec hnical and fundamental analysis are two very different ways of deciding whether a stock is under valued or over valued. Which one is better depends on many factors but the most important one is the person doing the investing. Fundamental or Technical Analysis? Fundamental and technical analysts have been arguing which is better since moder n stock markets emerged. There is no clear answer as to who is right. It seems that in vestors following either one can point to periods of investment success but over the lon ger term neither side can point to a definitive answer. Some of the issues to consider a re: If you are a long term investor looking for solid companies with good growth and

income potential and a good track record then fundamental analysis may be of interest. If you are a short-term investor looking for exciting growth stocks that are undervalued then a fundamental approach to analysis would be useful. If you are a short-term investor who thinks the market is undervalued and is looking for investor sentiment to change then technical analysis may be useful t o you. In practice the two techniques can be combined. In many cases experienced marke t investors may use fundamental analysis to identify undervalued companies and the n use technical analysis to time their entry into the market place. A serious investo r will familiarize themselves with both techniques and combine them to maximize their c hances of success in the market. INVESTMENT OPPURTUNITIES An asset management is the chance to make an exceptional return on a financial investment usually in companies in the early stages of their busine ss development. The chance of a significant return on the investment improves greatly with companies that have a dedicated management team, well thought out operations and various competitive advantages. Basically, these companies are ge ms waiting to be found. To uncover these business investment opportunities, you must do the proper research. To maximize your returns with these investment opportunities, you need to get in early before the investment community discovers them. Shares of young companies generally lack trading liquidity and it doesn t take a lot of buy orders before the share price starts climbing. That s when you start making an exceptional re turn on your investment RESEARCH METHADALOGY OBJECTIVE OF STUDY Analysis of fundamental to acquire a deep knowledge of the Electrical equipment Sector. To find out how the judgment is taken by the analyst on the basis of fundamental analysis of the company. To establish link between expected share price with the projected companys financ ial performance To relate the price of Steel and copper Price in the sector. To make projection on its business performance and in the bad condition to impro ve the performance of sector. To find out the threat from the other economies such as China and Korea To know about the government Future projections for power generation. To know about the margin of profit of different companies in the sector Investors may use fundamental analysis to determine future growth rates for buyi ng high priced growth stocks. NEED AND METHOD FOR THE STUDY Fundamental analysis is very helpful to the investor, which is reflected in the investment purpose. Fundamental analysis consist of three parts, they are econom ic, industry and company. Any investors who go to systematic investment, he/she would like to know, the complete scenario of the industry. It is interesting to know the how the fundamental analysis helps to forecast the price of equity. The fundamental analysis consists of three parts; they are economic, industry a nd company. All the factors which are involved in this analysis should be identi fied and studied carefully to identify the factors in the existing environment. The data or information collected should be based on the personal interaction wi

th the guide of the company. Economic analysis is a task to be studied as it affects the companys tax, and it will also effect on the revenue of the industry. Also other factors are consider ed in the economic analysis. And it should be interpreted for the fundamental an alysis. Industry analysis is a challenging factor for the research of the fundamental an alysis. All the sub-factors of the industry analysis should be taken up from the secondary source to analyses the each factor with the industry It also analyses the competitiveness of the each companys strength, like Quality, services, cost of R/m, etc. Company analysis is last factors of the fundamental analysis and it is one of th e most important parts of the company. An approach should be made to understand the existing company and its impact on companys market share and its performance. SCOPE OF THE STUDY To do the financial analysis and know the investment oppurtunities in anelectric al components sector. RESEARCH METHADOLOGY Research methodology is a way to systematically solve the research problem. The research methodology using for find out the solution of the research problem is analytical research methodology and some extend descriptive research methodology . Traditional method of data analysis and application of financial statement ana lysis tools as a technique will be used for doing the financial analysis and kno wing the investment oppurtunities in the electrical components sector . Primary Data To solve the problems on fundamental analysis on electrical component sector:Primary data collected by discussing with my guide and other staff member of the company Observation Secondary Data The sources of secondary data for solve the problems are:Company Annual Report Company Internal Data Internet-Websites PERIOD OF THE STUDY Six to Eight weak LIMITATIONS OF THE STUDY: The companies were chosen based on convenience and availability of secondary dat a. Very short time are available to study about Working Capital Management of such a big organization Financial analysis based on historic data and information EXPECTED OUTCOME From the given project we would be able to get to know the company with better investment oppurtunities. Also we would be able to conclude the name of the comp anies which are less volatile and have better scope for investments. COMPANYS PROFILE ABOUT NARNOLIA SECURITIES LIMITED (NSL) HEAD OFFICE 31-34 & 59, 2nd Floor, AC Market, GEL Church Complex, Main Road, Ranchi - 834 001 Phone - +91-651-2330701, 9334146728,9835158784 Fax - +91-651-2330699 Email : narnolia@narnolia.com The history of the company dates back to 1993. The brilliant academic track reco rd and a deep understanding of capital market of its founder CMD Mr. Krishna N N arnolia helped him to lay the solid foundation of Narnolia with well defined ph

ilosophies and core values. NSL has launched e-broking services. It reserves the right to decide the criteri a based on which customers would be allowed to avail of these services. NSL rese rves the right to make modifications and alterations to the content of the websi te VISION: We will be the most trusted, most knowledgeable, most understanding and most con cerned provider of value added and customer centric financial services in our st rategically chosen class and also mass market. MISSION: We commit ourselves both in thought and action to raise ourselves in the eyes of our true boss i.e., the investors from being a mere transaction broker to a tru e family financial doctor and a secretary to help them to protect and improve th eir financial health. We further resolve not to sell Daru (gambling) in the bott le of Dawa (investment) and will dare to tell them the difference between the tw o even if it results into low revenue in the short term. We shall invest most of our time, energy and resources to reduce gaps at each touch points with our exi sting investors and shall see our growth in their growth. Let us believe that qu antity follows quality. Company At A Glance In 1991 the company became the first in the area to open a self managed branches and franchisee outlets with both NSE & BSE terminals. In 2002 company entered into strategic tie up with premier house Motilal Oswal a s their exclusive regional partner for the states of Bihar, Jharkhand and parts of West Bengal & select towns. In 2004 and 2006 the company won the Best Franchisee Network of the Country Aw ard. In 2007 the company was converted in to Public Ltd Co. In 2009 the company was honored with Hall of Fame award at Singapore and again w ith prestigious Champion of the Champions Trophy of the country by MOSL. Also the organisation Created history by simultaneously opening 10 new branches in various locations of India on 14 Nov 2009. In 2010 the company Got ISO-9001: 2008 certification for Quality Management. NSL has got 7 Regional Offices situated at different locations It has also got more than 40 Head Offices and more than 60 Outlets all over the country PRODUCT AND SERVICES To earn is difficult but to save out of it is more difficult, but even more diffi cult is to invest such savings in the right avenue of investment .This is the thi nking of NSL employees.It requires an organized knowledge, latest information & conceptual imagination to arrive at such investment plan of an investor .This ca n be done on one s own or with the help of a financial adviser. They believe in providing all avenues of investment under one roof, but what differentiates us f rom others is the quality of each product in terms of suitability, speed, conven ience, transparency and above all, the empowering advice the bedrock of which is the WORLD CLASS research and analysis of each product by their team of investme nt experts in close association with Motilal Oswal Securities. All these facilit ies of trade execution & advisory services can be availed through any of our ove r 200 outlets in Jharkhand, Bihar & West Bengal having world class infrastructur e. And if someone is little computer savvy then even the trade execution can be done by them on their own either at a place of your convenience or at any of our offices using companys infrastructure throughtheir net trading platform . INVESTMENT & TRADING IN SHARES (STOCK MARKET) Cash Trading Margin trading Spot Payment BSPT Portfolio Management Services

INVESTMENT IN EQUITY DERIVATIVES INVESTMENT THROUGH MUTUAL FUNDS PRIMARY MARKET DEPOSITORY SERVICES COMMODITY INSURANCE INSURANCE NARNOLIA KNOWLEDGE CENTRE

CHAPTERISATION CHAPTER 1 Introduction CHAPTER CHAPTER CHAPTER Chapter Chapter About the Company(NSL) Problem statement 2 Electrical Sector Profile 3 Introduction about the Fundamental & Technical Analysis 4 Research Methodology 5 Analysis plan and Expected outcome 6 Company Profile