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1

SUMMER INTERNSHIP REPORT

ON

Portfolio Management
AT

JINDAL STAINLESS STEEL Ltd. HISAR
A ReportSubmitted in Partial fulfillment of the requirementsFor the Award of the degree of POST GRADUATE

DIPLOMA IN BUSINESS MANAGEMENTFromJ K Business School , GurgaonAcademic Session 2008-2010

Project Guide:Submitted by:2

Mr.M.P.Gupta NARESH KUMARHead of Department JKBS 083077(Accounts &

Finance ) MBA IInd Sem.Hisar DECLARATION I Naresh Kumar II nd semester student of Post Graduate Diploma in BusinessManagement .Jindal Stainless Limited.

This information is true to the best of my knowledge. Naresh Kumar PGDBMIISem. . which is collected from variouslocations.from J K Business School hare by declare that all information andfacts and figures in this report are original in nature.

3 ACKNOWLEDGE MENT The expression of words lose significance.I at the very onset express my gratitude to . when I turnover the pages of mymental encyclopedia to make an appealing forward of gratitude and obligation.

Hisar who has always inspiredme and shown his keen interest for the completion of my project.Mr.Abhishek my project guideat Jindal Stainless Steel Ltd.Gupta( Accounts & Finance). Jindal Stainless Steel Ltd.I wish to express my sincere gratitude to Mr.M.P. Hisar for the .

4 July 2009 Naresh Kumar INDEX C O N T E N T .conceptual guidance and encouragingsupport.

......... Declaration........ ...2 .....P G ....... N O ....... ............. ..........

Acknowledgem ent…………… …………......…. ....3 Preface……… ………………… ………….......… ...5

Company Profile………… ………………... ...…....6 Objective of the Study………… ………….....….. 14

Research Methodology… ………………... ..…....16 Suggestion…… ………………… ……….....…..... 75

... ...76 ..Bibliography… ………………… …………….

.

5 PREFACE Summer training is one of the most vital and active part for the life of managementstudents.D.G.M course. The basis idea behind this is to give the practical traning to the student andmake them acquainted with actual method and procedures.B.As a part of P. I .

HISARI did the work as a management trainee at JINDAL STAINLESS Ltd.underwent two months summer training at JINDALSTAINLESS Ltd. HISAR at thetime company gave me project entitled “Portfolio Management” Made an extensiveresearch and efforts has been made .

for successful fulfilment of on the trainingreport
.

6

COMPANY PROFILEThe Group
Jindal Organization, set up in 1970 by the steel visionary Mr. O.P. Jindal, has grownfrom an indigenous singleunit steel plant in Hisar, Haryana to the present multi-billion, multinational and multi-

integrating. The organization is stillexpanding.product steel conglomerate. of its people and thecommunities in which it operates.The group places its commitment to sustainable development. at the heart of its strategy . amalgamating and growing.

.The Jindal Organization today is a global player.and aspires to be abenchmark for players in the industry the world over. It's relentless quest for excellencehas reaped rich benefits and it is today one of the world‟s most admired andrespected groups within the steel fraternity.

bright. strong andunrelenting in its operations. Likestainless steel the company is versatile in its thought process. environment friendly in its manufacturing process. shining .Jindal Stainless Jindal Stainless is in many ways very much like the material it produces.

just as our values are all encompassing.Jindal Stainless has always been committed to innovation and progression.and beautiful in its community support activities. The list of theproperties of stainless steel is endless. researchand development. Our .

Our achievements narrate a story of our determination to succeed and our passionto win. No wonder we are the strategic partners of global leaders by choice. We will continue to leverage .innovations are admired beyond the geographical boundariesof our country.

our opportunities in creating excellence that theworld cannot even think about. Today we are the largest integrated stainless steelproducer in India. tomorrow we will rule the world. .

.

has come a long way from a singlefactory establishment. The company today. started in 1970.7 Jindal Stainless is a ISO: 9001 & ISO: 14001 company is the flagship company of the Jindal Organization. As the numero uno it has taken on the task of making .

Our Main Facilities • Steel Making .stainless steel a part of everybody's life by taking a 360 degrees approachfrom production of raw materials to supply of architecture and lifestyle relatedproducts.

Major equipmentProcess • Hot Rolling Finishing (HR Product)Processing of Hot Rolled Products • Cold Rolling Coil Build up lineSkin Pass MillSlitting LineStrip Grinding LineShearing LineBright Annealing line .

• Razor and Surgical Blade Steel .

.

8 • Coin Blanks Production ProcessCupro-Nickel Complex .

.

Hisar plays a pivotal rolein . Blooms. India At Hisar.60% of which are exported worldwide.9 Hisar Plant. Hot rolled and Cold Rolled Coils. Jindal Stainless has India's only composite stainless steel plant for themanufacture of Stainless Steel Slabs.The R&D division at JSL.

Cross-fertilization of knowledgebetween . and innovating development strategies to come upwith new products with cost competitiveness. process and services.retaining and consolidatingcompany' s leadership role in stainless steel business by continuous up gradation of quality.

quality control and commercial units in order to maintain worldclass standard has been the guiding principle of R&D functions. Major tasks of Jindal Stainless 1. Developments of high value products to serve niche market.2. Quality up gradation of .production.

optimization and refinement to improvecompetitive edge4.5.3. Cost reduction by process development. Technology enhancement to increase the quality production. Market segment improvement by interacting and .existing products enabling global acceptance.

In addition to the above.sharing knowledge withcustomers and assisting them in trouble shooting operation. R&D division closely interacts with reputed national andinternational laboratories/scientific institution/universities to avail expert services for critical investigation .

These strips are produced in narrow 20-Hi mills in the precision cold rollingunit. • Blade Steel The Company is the exclusive producer of stainless steel strips for .• Precision Strips The company produces stainless steel precision strips in various grades.

the plant at Hisar houses a coin blanking line for supply of coin blanks to the Indian Mint andMints in the global markets. • Coin Blanks Besides supplying CR Strips to the Government of India.makingrazor and surgical blades in India. .

.

Kothavasala.Andhra Pradesh. the . The installed capacity is 40.000 metric tonnes per annum of highCarbon Ferro Chrome. Distt.India The Ferro Alloys plant is situated at Jindal Nagar.10 Vizag . Vizianagaram. Besides supplying to the domestic market.

Orissa Project India Jindal Stainless is setting up a Greenfield . The plant is also equippedwith an ultra modern testing laboratory to ensure world-class quality standards.company alsoexports Ferro Chrome to various developed countries.

integrated Stainless Steel project in thestate of Orissa which would involve mining of Iron. Tomeet the full requirement of power. Manganese & chrome ore for production of ferroalloys and Stainless Steel in the melt shop and rolling mills. Jindal Stainless will also be setting up a 500 MWcaptive power .

JSL expects to start the xx125 MWpower plants soon followed up by setting .plant. The operation of XX 60 MVA ferro-chrome furnace havealready started and the production has stabilised. This stainless steel plant will ultimately have a capacity of 1.6million tones per annum.

up of other ferro alloys units of ferromanganese and silicomanganese. Subsidiary Companies of Jindal Stainless PT Jindal Stainless Indonesia Jindal Stainless has acquired Stainless Steel Cold Rolling plant in Indonesia .

in . another feather . customized.time service instainless .Jindal Stainless Limited has taken a leading stepforward to bring convenient. just .fromMaspion Stainless Steel. Jindal Stainless Steel way Limited Another first. world class.

cut-tosize.The company has partnered with a leading Italian company in business of distribution and processing of steel. coils and blanks in .l.r. to service its customers withexact slit. polished stainless steel sheets. Steel way s.steel to doorsteps of its valued customers.

high end precisionSlitting.differentgrades with highest standards of processing tolerance. blanking and polishing lines which are supplied by theleading steel finishing . cutting to length. 11 The facilities in Gurgaon (Haryana) include state of the art.

inventory managementservices. . technical value engineering services. FIMI & IMEAS. Italy.equipment manufacturers. warehousing and material testing.Some of the services offered are customized products.

The name translates into 'the artof stainless steel'. Setup with the objective of creating exclusive .Austenitic Creations Private Limited Art d'inox is the exciting new form of ultimate style. And that's precisely what it is. Works of art in stainless steel.

stainless steel lifestyle products. The productrange is a celebration of both form and function. these aresynonymous with quality. beauty and functionality. The range encompasses . The professionally qualified in-house design team is dedicated to exploring the frontiers of design.

Jindal Architecture Limited Stainless steel is a material par excellence.tableware. which now seeks to permeate throughIndian Architecture. home accessories and office accessories. The Architectural Division . gifts.serving ware.

The Architectural Division of Jindal Stainless is .launched by Jindal Stainless Ltd hastaken the initiative to promote Stainless steel products and technology solutions tocater to the emerging market of Stainless Steel for Architecture. Building andConstruction (ABC) in India.

engineeringwork. The division has completed many projects specially that of streetfurniture.capableof providing a full range of technical support services including design. cafeteria furniture. . fabrication of quality material and finishes. and job site supervision by trainedpersonnel.

12 .Besides these other companies are as follows : Jindal Stainless UK Limited. LondonJindal Stainless FZE.r.lighting and signages apart from other architecturalrequireme nts.l. DubaiJindal Stainless Italy S.

Corporate Social Responsibility Shri OP Jindal. Jindal Stainless constantlyechoes those thoughts and takes its .a state where men and womenworked shoulder to shoulder towards a happier tomorrow. had a vision of a progressive state .

Schools at various levels have been set up to educate the specifiers of the future. Giving back to the community at large has been an objective from the verybeginning.role as a responsible corporate citizen veryseriously.The Vidya Devi Jindal and The Jindal Modern School. is fully child . at Hisar.

NC JIM .orientedand ensures „holistic development‟ of a student‟s mental and physical potential.Adopting villages and thus contributing to the development of a region has also beenpart of the overall Jindal plan. Improving of medical facilities is yet another field of endeavor.

Care. Eco Friendliness . at Hisar offers the entire range of diagnostic. Immunization drives and free healthcare camps on differentmedical aspects are also conducted from time to time. treatment andsurgical facilities.

At our Stainless Steel plants. Jindal Stainless has a formalenvironmental protection program in place since inception. the challenge faced is to make and process stainlesssteel without adversely impacting the environment. We recognize theimportance of protecting our .

environment. complies with the requirements of the State Pollution ControlBoard. and that of our children and our commitment is unwavering in this respect.Jindal Stainless Ltd. the company has a fullfledgedenvironment department that . Having received the ISO 14001 certification.

With greater effortsbeing made to achieve low long-term maintenance costs.It has a sewage treatment plant for domestic affluent whose treated water is reusedfor horticulture purposes as well as in industrial applications. less environmental .manages the existing facilities for pollution control.

the market for stainless steel continues toimprove. 13 Vision “The seed of change is condensed in one single moment that heralds tomorrow‟shope and way into newer horizons” .impactand greater concern with life cycle costs.

Product innovation andCustomer Satisfaction • To be admired as a socially responsible .Vision-2010 • To be amongst the top 10 stainless steel producers in the world • To gain international recognition for cost leadership.

Jindal Stainless Ltd.Corporate and a sustained valuecreator for all its stakeholders Jindal Stainless (JSL) was established in 1970 and is under the Jindal Group. has expanded since its establishment from a steel plant of asingle unit to become a multiproduct and multinational steel .

Jindal Stainless Company supplies to theIndian government CR strips. the company is the only manufacturer of strips of stainless steel which areused for making surgical and razor blades. InIndia. It also supplies coin .The Jindal Stainless Company's main business is to produce stainless steel.company.

and customized products. The various other services offered by the Jindal Stainless Ltd. areservices in inventory management.warehousing. engineering services in technical value.blanks to the mint in India as wellas in the world.Jindal Stainless Company is . material testing.

The total income of the Jindal Stainless .The company has a 40% market share in the stainless steel sector in India.the biggest producer of stainless steel in the country. Thecompany has subsidiary companies which are Jindal Stainless > Steelway and PTJindal Stainless.

The net profit of thecompany amounted to Rs. 12. 8.9 million.amounted to Rs.598.2006 and the next year the amountincreased to Rs.2 million in 20052006 and the next year the figure stood at Rs. 826 million.014. 507.9 million in 2005. Jindal Stainless Company is planning to establish .

Jindal Stainless has become the leading company in the stainless steel sector inIndia.6 million tons per year.astainless steel plant in Orissa with the production capacity of 1. The company will make an investment of around Rs. 56 billion in setting up thisplant. As it plans to expand in the near .

the company is sure to become one of the leading stainless steel companies in the world. 14 Jindal Stainless is in many ways very much like the material it produces. strong andunrelenting in its . Likestainless steel the company is versatile in its thought process.future.

shiningand beautiful in its community support activities.bright. environment friendly in its manufacturing process.operations. just as our values are all encompassing. The list of the properties of stainlesssteel is endless. Jindal Stainless hasalways been committed to .

Nowonder we are the strategic partners of global leaders by choice. Our achievementsnarrate a story of our determination to .innovation and progression.Our innovations are admired beyond the geographical boundaries of our country. research and development.

Today we are the largest integrated stainless steel producer inIndia. tomorrow we will rule the world. We willcontinue to leverage our opportunities in creating excellence that the world cannoteven think about.succeed and our passion to win. Jindal Stainless. a $780 .

started in 1970. The companytoday has come a long way from a single factory establishment.million plus ISO:9002 & ISO: 14001 is the flagship company of the Jindal Organization. Asthe numerounoit has taken on the task of making stainless steel a part of everybody's life by .

Hisar plays a . Research & Development activities At JSL.taking a360 degrees approach from production of raw materialsto supply of architecture and lifestyle related products. Hisar The R&D division at JSL.

pivotal role in retaining and consolidatingcompany' s leadership role in stainless steel business by continuous up gradation of quality. Cross-fertilization of . process and services. and innovating development strategies to come upwith new products with cost competitiveness.

Quality up gradation of . quality control and commercial units in order to maintain worldclass standard has been the guiding principle of R&D functions. Major tasks 1. Developments of high value products to serve niche market.knowledgebetween production.2.

Technology enhancement to increase the quality production.existing products enabling global acceptance.3. Cost reduction by process development. Market segment improvement by interacting and .5. optimization and refinement to improvecompetitive edge4.

In addition to the above.sharing knowledge withcustomers and assisting them in trouble shooting operation. R&D division closely interacts with reputed national andinternational laboratories/scientific institution/universities to avail expert services for .

Themain objective of the study of Portfolio Management is to suggest to the companyabout the .15 critical investigation. OBJECTIVE OF THE STUDY I did the Project on PORTFOLIO MANAGEMENT in JINDAL STAINLESS LTD.

The executives or the official responsible for the project can make use of theportfolio management for critically reviewing the entire portfolio.various Investment option through which company can earn more profit byreducing risk factor. appropriatelyallocate and spread the .

available resources. Further . and make changes in projects so as toreap maximum department based returnsIn any product development the Portfolio Management is very useful in selecting aportfolio for the proposed new product and to maximize the portfolio value or theprofitability.

support and theneeded strategies for the enterprise.As the name goes the job of a project portfolio management group is to plan or devise a strategy with which the portfolio can be managed much similar to anyinvestor‟s managing activities .it can also be made use for providing balance.

. secured fixeddeposits. and bonds. mutual funds.involving various stocks. The main purpose or the aim of any portfolio investment 16 will be on the lines of increasing profits or returns with reduced risks andwithin a limited period.

project managers can effectively use thetools of the project portfolio management in identifying the redundancies or superfluous processes.In the world of Information Technology. and to evenly distribute resources so as to keep a closewatch over the progress and to direct the progress in .

the right and desired directionin case of need. Majority of the investments made in the IT scenario in the last tenyears actually are aimed to determine the nature of returns from the investmentsmade and the possible expected results in the future . 17 .

RESEARCH METHODOLOGY Portfolio Management Portfolio In finance. a portfolio is an appropriate mix of or collection of investments held byan institution or a private individual.Holding a portfolio is part of an .

By owning several assets.investment and risklimiting strategy calleddiversification. gold certificates. bonds. certain types of risk (in particular specificrisk) can be reduced. productionfacilities. The assets in the portfolio could include stocks.options. futures contracts. or . real estate. warrants.

In building up an investment portfolio a financial institution will typically conduct itsown investment analysis. whilst a private individual may make use of the services of a financial advisor or a financial institution which offers portfolio managementservices .any other item that is expected to retain its value.

Portfolio management involves deciding what assets to include in the portfolio. how many to purchase. when to 18 purchase them. . and what assets to divest. Selectioninvolves deciding what assets to purchase.given the goals of the portfolio owner and changing economic conditions.

Typicallythe expected return from portfolios of different asset bundles are . andthe risk associated with this return (i. the standard deviation of the return).e.These decisions always involve somesortof performance measurement. most typically expected return on the portfolio.

Someinvestors are more risk averse than others.compared.Mutual funds have developed particular techniques to optimize their portfolioholdings.The unique goals and circumstances of the investor must also be considered. . See fund management for details.

equally-weighted portfolio capitalization-weighted portfolio price-weighted portfolio optimal portfolio (for which the Sharpe ratio is highest) Some of the financial models used in the process of Valuation. • • • • .Many strategies have been developed to form a portfolio.

• • • • . and management of portfolios include: Maximizing return. Capital asset pricing model. given an acceptable level of risk.stockselection. The single-index model of portfolio variance. Modern portfolio theory— a model proposed by Harry Markowitz among others.

• The Sharpe Diagonal (or Index) model.19 • Arbitrage pricing theory. • Value at risk model. • The Jensen Index. A traditionalmethod has been using quarterly or . There are many different methods for calculating portfolio returns. • The Treynor Index.

As portfolio returns actually fluctuatedaily. moneyweighted returns may only provide an approximation to a .monthly moneyweighted returns. A money-weighted return calculated over a period such as a month or a quarter assumes thatthe rate of return over that period is constant.

the timing of the cash flows within the measurement period. and the volatility of theportfolio. These errors happen because of cash flows during the measurementperiod.A more .portfolio‟sactual return. The size of the errors depends on three variables: the size of the cash flows.

Performan ce Attribution explains . and then compounding together the dailyreturns.accurate method for calculating portfolio returns is to use the true time-weighted method. This entails revaluing the portfolio on every date where a cashflow takes place (perhaps even every day).

Result 00 of 00 00 results for result for  p.. . a particular portfolio might bebenchmarked against the S&P 500 index.. For example. the benchmarkrelativeperformance) of a portfolio.e.the active performance (i. If the benchmark return over some period Search Search History: Searching.

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