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First Review Synopsis

A PROJECT REPORT ON

A STUDY ON EQUITY ANALYSIS WITH


REPECT TO BANKING SECTOR

INTRODUCTION

INTRODUCTION TO THE STUDY

What is Equity?
Equity is the ownership interest of investors in a business firm. Investors can own
equity shares in a firm in the form of common stock or preferred stock. Equity
ownership in the firm means that the original business owner no longer owns 100%
of the firm but shares ownership with others.On a company's balance sheet, equity is
represented by the following accounts: common stock, preferred stock, paid-in
capital, and retained earnings. Equity can be calculated by subtracting total liabilities
from total assets.

EQUITY ANALYSIS:Stock analysis is a term that refers to the evaluation of a particular trading
instrument, an investment sector or the market as a whole. Stock analysts attempt to
determine the future activity of an instrument, sector or market. There are two basic
types of stock analysis: fundamental analysis and technical analysis. Fundamental
analysis concentrates on data from sources including financial records, economic
reports, company assets and market share. Technical analysis focuses on the study
of past market action to predict future price movement.
Equity Analysis on Banking Sector
The main aim of this project is to analyze current growth trend of scripts of
banking in equity market. Based on the study of Indianeconomy.Research studies
have proved that investments in some shares with a longer tenure of
investment have yielded far superior returns than any other investment.
However, this does not mean all equity investments would guarantee similar high
returns. Equities are high-risk investments. One needs to study them carefully
before investing.

Since 1990 till date, Indian stock market has returned about 17% to
investors on an average in terms of increase in share prices or capital appreciation
annually. Besides that on average stocks have paid 1.5 % dividend annually.
Dividend is a percentage of the face value of a share that a company returns to its

shareholders from its annual profits.Compared to most other forms of


investments, investing in equity shares offers the highest rate of return, if invested
over a longer duration.
Each investment alternative has its own strengths and weaknesses. Some options
seek to achieve superior returns (like equity), but with corresponding higher risk.
Other provide safety (like PPF) but at the expense of liquidity and growth. Other
options such as FDs offer safety and liquidity, but at the cost of return. Mutual funds
seek to combine the advantages of investing in arch of these alternatives while
dispensing with the shortcomings. Indian stock market is semi-efficient by nature
and, is considered as one of the most respected stock markets, where information is
quickly and widely disseminated, thereby allowing each securitys price to adjust
rapidly in an unbiased manner to new information so that, it reflects the nearest
investment value. And mainly after the introduction of electronic trading system, the
information flow has become much faster. But sometimes, in developing countries
like India, sentiments play major role in price movements, or say, fluctuations, where
investors find it difficult to predict the future with certainty.
Banks are the major part of any economic system. They provide a strong base to
Indianeconomy as well. Even in the share markets, the performance of banks shares
is ofgreat importance.
Thus, the performance of the share market, the rise and the fall of market is greatly
affected by the performance of the banking sector shares and this report revolves
around all factors, their understanding and a theoretical and technical analysis

NEED FOR THE STUDY

Financial performance of an enterprise will affect other types of performance and also
the productivity of finances is good, the productivity of men and material would be good.
Moreover the study of non-economic and qualitative performance, which studies the non
economic factors like customer satisfaction, citizen satisfaction etc.

SCOPE OF STUDY
The scope and period of the study is being restricted to the following.
1. The scope is limited to the operations of the Pallava Granites.
2. The information is obtained from the primary and secondary data was limited to the
Pallava Granites.
3. The profit and loss, the balance sheet was on the last five years.
4. Comparison analysis was done by comparison of sister units.

LIMITATIONS

As the study is based on secondary data, the inherent limitation of the secondary data
would have affected the study.
The figures in a financial statements are likely to be a least several months out of date, and
so might not give a proper indication of the companys current financial position.
This study need to be interpreted carefully. They can provide clues to the companys
performance or financial situation. But on their own, they cannot show whether performance
is good or bad. It requires some quantitative information for an informed analysis to be made.

OBJECTIVES OF THE STUDY

1 Primary Objective:
To evaluate the financial efficiency of PALLAVA GRANAITS .
3.2 Secondary Objectives:
i.

To analyse the liquidity solvency position of the firm.

ii.

To study the working capital management of the company.

iii.

To understand the profitability position of the firm.

iv.

To assess the factors influencing the financial performance of the organisation.

v.

To understand the overall financial position of the company.

METHODOLOGY
RESEARCH DESIGN
Research design is the arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with the economy in
procedure. It is the blueprints for collection, measurement and analysis of data.
Type of Research used: Analytical Research
Under this research, the researcher has to use facts or information already available and
analyze the facts and information to make a critical evaluation of the material.
DATA COLLECTION
1. PRIMARY DATA
These include the survey or questionnaire method, telephonic interview as well as the
personal interview methods of data collection
2. SECONDARY DATA
The secondary data as it has always been important for the completion of any report provides
a reliable, suitable, adequate and specific knowledge. The standard cost reports, working
sheets provide the knowledge and information regarding the relevant subjects.
Secondary data is a data, which is collected from various sources. Secondary data is not a
fresh data so it has its own limitations like: Time Constraints, Accuracy and Applicability.
RESEARCH METHODOLOGY
METHODOLOGY:
The project evaluates the financial performance one of the company with help of the most
appropriate tool of financial analysis like ratio analysis and comparative balance sheet.
Hence, it is essentially fact finding study.

Tools used in analysis:

Ratio analysis

Comparative balance sheet

Period of study:
The study covers the period of 2011-2012 to 2015-2016 in Pallava granaits .

INDUSTRY PROFILE
Mining for granite is done manually. For drilling and channelling hand chisels and hammers
are used. There are very few quarries that have mining machinery, such as compressors and
drilling machines for drilling and blasting, cranes for lifting big blocks, and dampers and
trucks for transport.
There are, four operations that are involved in the processing of granite. They are:

Dressing

Cutting/Sawing

Surface Grinding and Polishing

Edge-Cutting-Trimming.

Granites are now mined in most of the Indian states for use as construction material and road
metal but production of dressed granite blocks and slabs from Andhra Pradesh, Karnataka,
Rajasthan and Tamil Nadu are highly priced. In India there are 43 granite processing units of
which 12 are in Andhra Pradesh, 13 in Karnataka, 3 in Rajasthan, 14 in Tamil Nadu and 1 in
Orissa.
The recovery of marketable grade granite is reported to be 32 to 40 per cent in Karnataka, 25
to 75 per cent in four quarries around Jalore, the main granite mining centre of Rajasthan, and
20 to 40 per cent in Tamil Nadu.
There is nothing more alluring than the beauty of the natural stone. A continuous increase can
be seen in the demand of these stones, leading to a tremendous increasing their business
across the globe. Modern technology is being used to offer superior processes and finishing
to these stones. Various natural stones trade shows, sandstone expos, heavy stone machinery
trade fairs etc., are being conducted to attract various natural stone specialists, machinery and
equipment developers etc. India is one of the largest processor of various kinds of stone that
cater to the construction needs globally. From Rs. 12,845.1 million export in 1996- 97, we
now have an export revenue of over Rs. 26,146.0. India produces / processes over 27% of the

stone produced in the world and export over 11% of the world stone exports. Indian is
primarily known for it's vast resources of natural stones spread across the length & breadth of
the country's geography.
Latest developments

India has one of the largest reserves of granite in the world and exported Rs 2,600
core (Rs 26 billion) worth of the stone in the past years. Granite exports this fiscal are
expected to touch Rs 2,800 core (Rs 28 billion) and nearly one-fourth of these exports
is accounted for by monument stones.

About 85-90 % of the total granite production in the country is for exports. So after
the recession period is over the industry will again regain its demand .This is the best
time for an entrepreneur to venture into this sector.

Last fiscal, the total exports of granite and marble from India had crossed the Rs
4,000 core marks with the US accounting for the bulk of the consumption (40%).

The All India Granite and Stones Association (AIGSA), which estimated a 10 %
increase in overseas sales for 2014-15, found the export market no more lucrative.

The granite industry in Rajasthan has been growing at 50% annually. But this growth
has serious social and environmental costs. As the water sources are being depleted,
forcing farmers to become labourers in the granite industry.

Rajasthan Granite mining is an approximately Rs 800 core industry today; it forms


95% of India's dimension stone exports.

COMPANY PROFILE
PALLAVA GRANITE INDUSTRIES, the flagship firm of the Pallava group was floated in
1972 and the quarrying operations were commenced in Karsanoor in Tamil Nadu and
expanded to other Southern states of India viz. kerala, Andhra and Karnataka. The Karsanoor
black granite quarry was adjudged as the best mine and bagged several awards for safety and
security. It is the deepest and well developed granite mine in India and one can drive an
expensive car up to the pit mouth. Even today is being visited by many mine owners as it is
viewed as a model mine.
In the year 1983 Dr. K Subba Reddy took over the leadership consequent of a major
reconstitution of partnership structure. There began the success story of Pallava, which
resulted in emergence of the associate companies for business needs of the group.
Products

Blocks

Big Slabs

Short Slabs

Cut To Size

Monuments
Infrastructure
Pallava Group attained its Brilliance like a Diamond by setting up of three Granite Processing
Units to add value to the Indian Granites. All the following Units have the state of the Art
Machines and with the talent pool of skilled manpower, the products acclaim International
recognition especially for the Monuments.
100% EOU Granite Monuments Unit in Pondicherry
100% EOU slab in Manubolu, Andhra Pradesh
100% EOU Cutter Slab Unit in R.L.Puram, Ongole
AWARDS
In Recognition of our constant endeavor to promote the industry for the last four
decades, the Company has been awarded the following:

CAPEXIL Awards for Export Performance continuously for more than a decade.
FIMI Model Award
Considered as Export House
Quality Crown Award from Business Initiative Directions(BID),London,UK
Company was specialized in Premium Black, Reagal Black and Vizag Blue Monuments
in the following countries.
Russia
UK
Poland
Germany
Japan