A STUDY ON QIP AS A FUNDING OPTION BY

INDIAN COMPANIES

INTRODUCTION
Qualified institutional placement (QIP) is a capital-raising tool, primarily used in India and
other parts of southern Asia, whereby a listed company can issue equity shares, fully and partly
convertible debentures, or any securities other than warrants which are convertible to equity
shares to a qualified institutional buyer (QIB).Apart from preferential allotment, this is the only
other speedy method of private placement whereby a listed company can issue shares or
convertible securities to a select group of persons. QIP scores over other methods because the
issuing firm does not have to undergo elaborate procedural requirements to raise this capital.
The Securities and Exchange Board of India (SEBI) introduced the QIP process through a
circular issued on May 8, 2006,[1] to prevent listed companies in India from developing an
excessive dependence on foreign capital. Prior to the innovation of the qualified institutional
placement, there was concern from Indian market regulators and authorities that Indian
companies were accessing international funding via issuing securities, such as American
depository receipts (ADRs), in outside markets. The complications associated with raising
capital in the domestic markets had led many companies to look at tapping the overseas markets.
This was seen as an undesirable export of the domestic equity market, so the QIP guidelines
were introduced to encourage Indian companies to raise funds domestically instead of tapping
overseas markets. In US US securities laws contain a number of exemptions from the
requirement of registering securities with the US Securities & Exchange Commission (SEC).
Pursuant to Rule 144A of the Securities Act of 1933, issuers may target private placements of
securities to QIBs. Although often referred to as Rule 144A offerings, as a technical matter,
transactions must actually involve an initial sale from the issuer to the underwriter and then a
resale from the underwriters to the QIBs.
Justification of the study

By their very mature, the capital markets world over are very moody. In the very short
term, they are given by public moved and sentiment. In the median term, they are driven by
liquidity and in the long term they always driven by strong fundamentals, so any effects to tap
the primary market for either equity or debt as to be well planned and properly timed. Sometimes
the timing and planning both be good but may see the market withdrawing in the shell. This may
lead to failures of primary market issues. It rises the lot of problems to the issuers. In search
eventually Qualified Institutional Placement (QIP) becomes a preferred option for the
companies. This was witness in 2008 and 2009 after the Global Financial crisis in the year 2007
& 2008, so hence many companies choose not to top the primary market and took the QIP root.

Scope of the Study

This study focuses on the evaluation of QIP and Global practices in using QIP. It
examines the QIP the top 5 issues, measured in terms of size, since 2007 & 2008. It tries to
evaluate the impact of QIP on capital structure and profitability.

Objectives of the Study

To graphically captured, the evaluation of QIP.

To understand the rational for taking the QIP root.

To critically examine the top 5 QIP issues since the Global Financial crisis and its impact
on capital structure and profitability.

To suggest measures to feasible access to funding through QIP.

Research Methodology

Research methodology is a process which is used to collect information and data for the purpose
of making business decisions. It includes publication research, interviews, surveys and other
research techniques. This methodology also includes both present and historical information.

Finance projects are purely based on secondary data. The secondary data are those that are
already collected by someone else and which have already been passed through the statistical
process. It is collected from company records, various magazines and websites.

In this project the data is collected from moneycontrol.com in which the profit and loss account
details of the top 5 indian public limited companies Indian Oil Corporation,Reliance
Industries,Tata Motors,State bank of india,Bharat Petroleum are collected. Here there shall be no
reference to sample size, primary data collection and a use of non-parametric tools for analysis
and interpretation.

The collected data are converted to graphical views such as line graphs and bar graphs.

Expected Outcome

It is Expected that it may the Share of Debt Equity may Come down after QIP if part of the
processed used for repayment of Debt.

It is Expected that the Debt Component in the Balance Sheet may come out Significantly after
the QIP.

It is Anticipated that there may be Lemparoly Decline in Earning Per Share after the QIP.

The Market Capitalisation of the company after QIP may stop Going up over the Period of
Time.
Limitation of the Study
 REVIEW OF LITERATURE
International journal of law and legal jurisprudence studies

ADITYA KHANDALWAL 24 JULY 2009

Aditya Khandalwal(2009) studied the trends in qualified Institutional Placement in india and the
united stated.The study covered a number of companies that took QIP . inspite of strict
regulatory positions governing the same,the study observed that QIP becames the preferred
alternative during periods of markets liquidity dry up and so a follow on public of may became a
difficult if not impossible alternative .Normally an initial public offer can be with a followed on
public offer itf the size of the company is more than 10,000 crores without any reqirement for
approach.However if the medium term outlook for the markrt is not encouraging because of
liquity ratios,the issue will be fully subcibe.on the other hand with the hard bargaining QIP may
be the answer to raise defence.The study also compares the practices in united state and india
during the period of 2008 &2009 that immediately follow the global financial crises
Evolution of QIP:

The Securities and Exchange Board of India(SEBI) introduced the QIP process through a
circular issued on May 8,2008, to prevent listed companies in india from developing an
excessive dependence on foreign capital .Qualified institutional placement of the prior to the
innovation,it was concern from indian market regulations and authorities that indian companies
were accessing international funding via issuing securities ,such as American depository
receipts(ADrs)in outside markets .The complications associated with raising capital in the
domestic markets had led many companies to took at tapping the overseas markets.This was seen
as an undesirable exports of the domestic equity market ,so the QIP guidelines were introduced
to encourage Indian companies to raise funds domestically instead of tapping overseas markets.
BREAKING DOWN Securities and Exchange Board of india-SEBI

The SEBI was established in 1988 but was only given regulatory powers on April
12,1992,through the Securities and Exchange Board of India Act,1992.It plays a key role in
ensuring the stability of the Financial Markets in India ,by attracting foreign investors and
protecting Indian investors.SEBI was build by the government of India.Its headquarters is
located at the Bandra kurla Complex Business District found in Mumbai.It also has Northern
,Eastern,southern and Western regional offices.SEBIs management is composed of its own
members .Its management team consists of its own members .Its management team consists of a
chairman nominated by the union Government of India,two Members who are officers from the
Union Finance Ministry ,one members from the Reserve Bank of India and five others members
who are also nominated by the Union Government of India.

The companies Have raised funds for Expansion ,refinancing od debt and to meet working
capital requirements:

Indian companies have raised over Rs 14,000,,crore through Qualified Institutional

Placement(QIP)route in the first ten months of the ongoing fiscal.The listed firms ha raised Rs
29,102 crore through QIP in the entire last fiscal.The funds have been raised for expansion
,refinancing of debt and to meet working capital requirements.The data available with the
Securities and Exchange Board of India(SEBI),listed companies have garnered Rs 14,438 crore
throught QIP route during the April-January period of 2015-2016.Markets experts attributed the
slump in fund raising through QIP route to volatile equity markets..

QIPs in india and US

In US securities laws contain a number of exemptions from the requirements of

requirements of registering securities with the US securities &Exchange Commission
(SEC).144A rule of the securities to Act of 1933,issues may target private placement of
securities to QIBs ,often referred to as rule 144A offerings ,as a technical matter ,transations
must actually involve an initial sale from the issuer to the underwriter and then a resale from
underwriters to the QIBs.A QIB is defines under rule 144A as having investment discretion of at
least $100 Million and includes institutions such as insurance agencies ,investment companies
,Banks etc.
Rule 1444A was adopted by the SEC in 1990 in order to make the US private placement market
more attractive to foreign issuers who may not wish to make more oneros direct US listings.To
encourage domestic securities placements(instead of foreign currency convertible bonds
(FCCBs) and global or American depository receipts(GDRs or ADrs)),the securities and
exchange board of india has with effect from may 8,2006 inserted to provide qualified
institutional placement .They are certain obligations which are to be undertaken by the merchant
banker.

SEBI plans to tweak IPO,QIP,rights issue norms

Reena Zachariah,ET Bureau,May 20,2009
Raising funds from simpler,shorter process as the market regulator plans an existing
norms,takking them closer to standard global practices.According toan official close to the
development ,the securities &Exchange board of India(SEBI)will rework the norms for
instruments such as Qualified Institutional Placement(QIPs),Initial public offers(IPOs) and rights
issues to enable companies to raise capital quickly ,mmitigating the risks arising out of sudden
changes in market sentiment. The proposals were discussed at a meeting of the primary market
advisory committee.According to the official ,the investor cannot be related to the promoter or
the promoter-group companies.It will also be no special pricing for the anchr shares.The regular
will also simplify the existing IPO application form making it easier for market intermediaries to
process the data once the issue closes for subscription.

Merchant bankers whom ET spoke to said they had suggested that there should more flexibility
in pricing a QIP.In a QIP we are making a private placement to institutional investors .so let
them decide on the market driven price ,argue that the move will lead to share prices being
manipulated in a short period of time.

Current trends on QIP and Issues involved

SEBI introduced QIP route on march 28,2006 through issuance of circular .The main purpose
behind using this tool was that the whole public hich involves huge expenses like advertisements
,appointment of underwriter etc.The present trends shows that the most of the real estate
companies came up with the QIPs as they suffered most due to crisis.Marico in year 2006 has
raised Rs150 crore through QIP route which become the first player in the FMCG sector.In 2007
public sector lender bank of india raised Rs.240 crore through QIP.Tata motors in 2010 also hike
the size of QIP to &750 million from $525 million sintex industries in year 2012 raised the QIP
upto Rs.200 crore.shriram transport finance company raised it raised Rs. 583.86 crore through
QIP, Shoppers Stop raised Rs. 130 crore through QIP. Various companies raises funds through
QIP for various reasonretire its Shree Renuka raised funds to expand the companys refining
capacity, Tech Mahindra raised it to retire its debt and various companies also raises funds to
meet their diversified needs based on their nature of business and kind of operations .

Hindalco to raise funds via QIP, sets floor price of Rs184.45 per share
Citigroup, JM Financial, Axis Capital Ltd, BofA-ML and SBI Capital Markets to manage
Hindalco QIP fundraising process,Mumbai: Hindalco Industries Ltd, Indias biggest aluminum
producer, has embarked on a fundraising process to raise around approximately Rs3,300 crore
through a qualified institutional placement (QIP), said three people aware of the development.
Hindalco has appointed Citigroup Global Markets India Pvt. Ltd, JM Financial Institutional
Securities Ltd, Axis Capital Ltd, Bank of America Merrill Lynch and SBI Capital Markets Ltd to
manage the QIP fundraising process, said one of the three persons cited above, requesting
anonymity, as he is not authorized to speak with the media.
Prime Focus raises $16m Through QIP(NOV 10,201

Mumbai-based visual entertainment services firm Prime Focus has raised $16 million via a
qualified institutional placement (QIP). The issue, which was priced at Rs 68.58 per share, saw
participation from leading Foreign Institutional Investors (FIIs).The pricing of the issue was
fairly attractive as compared to the current trading price of Prime Focus. The shares of the
company closed at Rs 77.15 today, up by 2.59%. The issue was managed by Centrum Capital
and Intensive Fiscal.Prime Focus has also followed an aggressive inorganic growth strategy by
buying and turning around companies in US and UK. Some of its major deals include North
America-based Post Logic Studios and Frantic Films VFX in November 2007 and UK-based
VTR in 2006.Existing investors of Prime Focus include Alchemy India Long term Fund and
billionaire investor Rakesh Jhunjhunwala

Recovery Propels Growth For Qualified Institutional Placement (QIP) Funding:

ASSOCHAM (june 28,2010)

Corporate India recorded an increase of over 14 times in their preference for Qualified
Institutional Placement (QIP) between calendar year 2008 and 2009 since economic recession
eased off and new instrument established its popularity as a great source of funding, say a joint
study of SMC capitals and ASSOCHAM released on June 28, 2010.

According to it, as many as 45 companies including names like Axis Bank, Unitech, HCL
Infosystems, Punj Lloyd and L & T made QIPs in 2009 with a total issue size of Rs 32,631 crore
as against just 4 companies that made QIPs in 2008 with a total issue size of Rs 2104.43 crore.

De-jargoned: Qualified institutional placement(june 27,2014)

It is a story that is true in every bull runeveryone wants a piece of it. During the bull
run in 2007-08, there was a slew of initial public offerings (IPOs) and new fund offerings. This
time, too, when the Sensex is trading around its all-time high of 25,000, there are a string of
companies ready to use this window of opportunity to raise money through the qualified
institutional placement (QIP) route. Many are slated to announce their issuances soon. According
to data with Prime Database, a primary market tracker, in 2014 till May, four companies have
raised money, a total of Rs.11,454 crore, through QIPs. In all of 2013, 10 companies had
raised Rs.8,075 crore, and 12 companies (Rs.4,704 crore) in 2012.

Simplifying Qualified Institutional Placements and Rights Issues(aug 18,2014)

The concept of Qualified Institutional Placements [QIP] was introduced in India, with effect
from May 8, 2006, by virtue of an amendment to the SEBI (Disclosure & Investor Protection
[DIP] Guidelines, 2000. [Economic Times, May 23, 2006] The object of this amendment was
to prevent the export of domestic equity markets, and encourage on-shore investment. Chapter
XIIIA, which was introduced, allowed QIPs to be made for securities which could be issued as
equity shares or other specified securities. The primary advantages of this introduction were
saving on time, avoiding regulatory hassles, and also cost efficiency. However, one drawback of
the system was the requirement that in determining the price of offering, the higher of the
average previous six months or 15 days price had to be taken. In comparison to the global
practice, which fixes prices as on the date of issue, this requirement resulted in a false price
being used as the price of issue.
One of the declinations reported in the newspaper on 27 July 2013 that:
Fund raising by Indian companies through issue of shares to institutional investors
declined by 65% to Rs.387 crore in April over the previous month. According to the latest data
available with the market regulator Securities and Exchange Board of India (Sebi), companies
raised Rs.387 crore through the qualified institutional placement (QIP) route in April, a slump
from Rs.1,110 crore mopped up in March. QIP is a capital raising tool whereby a listed firm can
issue equity shares, fully and partly convertible debentures, or other securities that are
convertible to equity shares to institutional investors. In 2010-11, Indian firms garnered
Rs.25,850 crore cumulatively through 59 issues via QIP route. The concept of Qualified
Institutional Placements [QIP] was introduced in India, with effect from May 8, 2006, by
virtue of an amendment to the SEBI (Disclosure & Investor Protection [DIP] Guidelines, 2000.
The object of this amendment was to prevent the export of domestic equity markets, and
encourage on-shore investment.
SEBI Plans Friendlier QIP Norms
By Pallavi S 8 years ago
Market regulator Sebi is reportedly working towards a series of important steps which would
impact fresh issue of shares in the stock market. These include tweaking the pricing norms of
qualified institutional placement(QIP), introducing the concept of an anchor investor during
the public float of a company as also easing disclosure norms while making a rights issue.
The most significant of these measures could be the anchor investor concept at the time of IPO.
The proposal which was discussed at a meeting of the Primary Market Advisory Committee of
Sebi on Monday, would allow a strategic investor to pick as much as 25% of the total
shares reserved for institutional investors during an IPO, according to a report in the Economic
Times.
QIP NORMS
Sebi is also looking at making the issue price of QIPs closer to the market price. As of now, QIP
pricing is based on the two-week average of the firms stock price. This may be brought down to
one week or ten days moving closer to the global practices by reducing the gap between the
market price and the issue price of stocks in such an issue. This however, runs the risk of
punters, some large institutional investors or even companies themselves manipulating the stock
prices to suit their requirement.
QIP in india from 2008(Dec 17-21,2007)

QIP 2008, to be held at the India international center, New Delhi, India, is being organized by
theIndian Association of Research in Computing Science with support from the Indian Institute
of Technology,New Delhi and theTata Institute of Fundamental Research,Mumbai.

Quantum information processing is the recasting of computer science in a quantum mechanical

framework. It improves on classical computers and classical complexity bounds by making use
of quantum mechanical phenomena.QIP 2008, like its previous editions, will feature invited
talks, contributed talks and a poster session. The invited talks will be chosen by the Steering
Committee, and the contributed talks by the program committee.
Other events:

QIP 2008 in New Delhi will immediately follow (the 27th Annual Foundations of Software
technology and Theoretical Computer Science Conference December 12-15,2007)which is being
organized by the Indian Association for Research in Computing Science at the same venue.
 OVERVIEW OF INDUSTRY AND COMPANY UNDER STUDY

Indian Oil Corporation (IndianOil) is India's Largest Commercial Enterprise, with a net profit
of 103.99 billion (US$1.6 billion) for the financial year 2015-16.[2]

In accordance with its corporate vision of being The Energy of India, IndianOil has been
successfully meeting the energy demands of India for more than five decades. It is the leading
Indian Corporate in Fortune's prestigious Global 500 listing of world's largest corporates at
161st position for the year 2016,[3] and has a 33,000 strong workforce.

IndianOil's business interests overlap the entire hydrocarbon value-chain, including refining,
pipeline transportation, marketing of petroleum products, exploration and production of crude
oil, natural gas and petrochemicals. Also, IndianOil has ventured into alternative energy and
globalisation of downstream operations. With subsidiaries in Sri Lanka, Mauritius and the UAE,
IndianOil is scouting for new business opportunities in the energy markets across Asia and
Africa. It has also formed about 20 joint ventures with reputed business partners from India and
abroad to pursue diverse business interests. ndianOil accounts for nearly half of India's
petroleum products market share, 35% national refining capacity (together with its subsidiary
Chennai Petroleum Corporation Ltd., or CPCL), and 71% downstream sector pipelines through
capacity. The IndianOil Group owns and operates 11 of India's 23 refineries with a combined
refining capacity of 80.7 MMTPA (million metric tonnes per annum).

IndianOil's cross-country pipeline network, for transportation of crude oil to refineries and
finished products to high-demand centres, spans over 11,220 km. With a throughput capacity of
80.49 MMTPA for crude oil and petroleum products and 9.5 MMSCMD for gas, this network
meets the vital energy needs of the consumers in an efficient, economical and environment-
friendly manner. With a portfolio that is bedecked with leading energy brands like
XTRAPREMIUM petrol, XTRAMILE diesel and PROPEL petrochemicals, IndianOil's SERVO
lubricants and Indane LPG have earned the coveted Superbrand status.

indian Oil Corporation (IndianOil) is India's largest commercial enterprise, with a sales turnover
of Rs. 3,99,601 crore (US$ 61 billion) and profits of Rs. 10,399 crore (US$ 1,589 million) for the
year 2015-16. IndianOil is ranked 161st among the world's largest corporates (and first among
Indian enterprises) in the prestigious Fortune Global 500 listing for the year 2016.
Reliance Industries Limited (RIL) is an Indian conglomerate holding company headquartered
in Mumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy,
petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is the third
most profitable company in India,[3][4] the second-largest publicly traded company in India
by market capitalization,[5] and the second largest company in India as measured by revenue after
the government-controlled Indian Oil Corporation.The company is ranked 215th on the Fortune
Global 500 list of the world's biggest corporations as of 2016. It is ranked 8th among the Top
250 Global Energy Companies by Platts as of 2016.

In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest
companies in terms of all major financial parameters.[15] In 200102, Reliance Petroleum was
merged with Reliance Industries.[10] In 2002, Reliance announced India's biggest gas discovery
(at the Krishna Godavari basin) in nearly three decades and one of the largest gas discoveries in
the world during 2002. The in-place volume of natural gas was in excess of 7 trillion cubic feet,
equivalent to about 1.2 billion barrels of crude oil. This was the first ever discovery by an Indian
private sector company.[10][16] In 200203, RIL purchased a majority stake in Indian
Petrochemicals Corporation Ltd.

(IPCL), India's second largest petrochemicals company, from Government of India. IPCL was
later merged with RIL in 2008.[18][19] In the years 2005 and 2006, the company reorganized its
business by demerging its investments in power generation and distribution, financial services
and telecommunication services into four separate entities.[20] In 2006, Reliance entered the
organised retail market in India[21] with the launch of its retail store format under the brand name
of 'Reliance Fresh'.[22][23] By the end of 2008, Reliance retail had close to 600 stores across 57
cities in India.[10] In November 2009, Reliance Industries issued 1:1 bonus shares to its
shareholders.

In 2010, Reliance entered Broadband services market with acquisition of Infotel Broadband
Services Limited, which was the only successful bidder for pan-India fourth-generation (4G)
spectrum auction held by Government of India.[24][25] In the same year, Reliance
and BP announced a partnership in the oil and gas business.
Tata Motors is an automotive manufacturing company based in India. Headquartered in
Mumbai, it was formerly known as TELCO, and its parent company is Tata Group. The
major products that the company deals in include trucks, passenger cars, vans, buses,
coaches, military vehicles and construction equipments. As of now, it is the 17 th biggest
motor vehicle production company in the world, 4 th biggest truck producer, and 2 nd biggest
bus manufacturer.

Tata Motors have assembly plants and auto manufacturing units in different cities of
India, including Sanand, Lucknow, Pantnagar, Jamshedpur, Pune and Dharwad. They have
facilities in Thailand, UK, South Africa and Argentina too. As far as their developme nt
and research centers are concerned, they are present in Lucknow, Jamshedpur, Pune and
Dharwad, in addition to South Korea, UK and Spain. The company has a joint venture for
manufacturing buses with Marcopolo, for construction equipments with Hitachi, an d for
automotive components with FiatChrysler.

The company was founded in 1945 as a branch of Tata Group to manufacture locomotives. It
collaborated with Daimler Benz AG, and constructed its first commercialized vehicle in 1954.
The collaborated ended in the year 1969, after which the company entered the market of
passenger vehicles in 1991.

With the launch of Tata Sierra in 1991, it became the 1st Indian company to manufacture a
competitive automobile on its own. In 1998, they launched Indica, and Tata Nano in 2008. In
2004, they acquired Daewoo Commercial Vehicles Company, and purchased the Jaguar Land
Rover in 2008 from Ford. In November 2015, Lionel Messi became the companys brand
ambassador to endorse and promote Tata Motors passenger vehicles on a global level.
State Bank of India goes back to the first decade of the nineteenth century with the
establishment of the Bank of Calcutta in 1806 in Calcutta. Three years later the bank received its
charter and was redesigned as the Bank of Bengal (2 January 1809). A unique institution, it was
the first jointstock bank of British India sponsored by the Government of Bengal. The Bank of
Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal.
These three banks remained at the apex of modern banking in India till their amalgamation as the
Imperial Bank of India on 27 January 1921.
Primarily AngloIndian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European commerce
and were not imposed from outside in an arbitrary manner to modernise India's economy. Their
evolution was, however, shaped by ideas culled from similar developments in Europe and
England, and was influenced by changes occurring in the structure of both the local trading
environment and those in the relations of the Indian economy to the economy of Europe and the
global economic framework.
The State Bank of India, the countrys oldest bank and a premier in terms of balance sheet size,
number of branches, market capitalization and profits is today going through a momentous phase
of change and transformation the two hundred year old public sector behemoth is today stirring
out of its public sector legacy and moving with an agility to give the private and foreign banks a
run for their money.
The bank is entering into many new businesses with strategic tie ups Pension Funds, General
Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant
Acquisition, Advisory Services, structured products etc each one of these initiatives having a
huge potential for growth.
Bharat Petroleum Corporation (BPCL) traces its history to 1928 when the Burmah Shell Oil
Storage & Distribution Company of India was incorporated in England to enter the petroleum
products business in India. The business of the Company grew substantially given the
international backing of Shell and it achieved the leadership position in India. In 1952, Shell and
Burmah Oil Company set up Burmah Shell Refineries to set up a refinery in Mumbai. The entire
operations of Burmah Shell in India were nationalised in 1976 and the Refinery and Marketing
Companies were merged to form BPCL.

The company had signed a memorandum of understanding recently with Apollo Tyres to provide
efficient air facility to customers through BPCL's retail network. - Sanghi Group of industries
has signed a Memorandum of Understanding with Bharat Petroleum Corporation Limited. Under
the agreement, BPCL will set up huge infrastructural facilities to ensure uninterrupted supply of
fuels for various mega projects being undertaken by the Sanghi group including a cement plant, a
petrochemical complex and a 100 per cent EOU spinning unit.

- Bharat Petroleum Corporation Ltd. (BPCL), is setting up a six million tonne per annum
refinery at Bina, in Madhya Pradesh. The corporation also envisages a single point mooring and
a crude oil terminal at Vadinar and a cross country crude oil pipeline from Vadinar to Bina. -
ONGC is joining hands with Bharat Petroleum Corporation Ltd (BPCL) for a Rs 2,552,-crore
petrochemical project in Hazira, Gujarat.

An agreement to supply around 80,000 tonnes of naphtha per annum for the 230-MW combined
cycle power project at Jegurupadu in East Godavari district of Andhra Pradesh, has been signed
between GVK Industries Ltd and Bharat Petroleum Corporation Ltd (BPCL). - The public sector
Bharat Petroleum Corporation Ltd (BPCL) proposes to lay a pipeline from Cochin to Karur via
Coimbatore to transport petrol, high speed diesel and kerosene.
 ANALYSIS OF DATA AND INTERPRETATION

PARTICULARS INDIAN OIL CORPORATION

YEARS 2010 2011 2012 2013 2014
Equity share Ratio 2427.95 2427.95 2427.95 2427.95 2427.95
Reserves And Surplus 48,124.88 52,889.72 55,435.26 58,679.27 63,540.79
Secured Loans 18,292.45 18,870.75 13,059.46 14,473.61 17,889.33
Unsecured Loans 26,273.80 31,452.86 57,277.96 63,868.68 62,733.13
Share of Debt Equity 0.8815 0.90971 1.21558 1.28204 1.22213
Share of Debt Total Capital 0.27622 0.47636312 0.52865113 5.6181458 0.67415044
EBIT 13,354.94 9,169.57 11,183.34 5,641.50 8,275.01
Earnings Per Share 42.1 30.67 16.29 20.61 28.91
Market Price Per Share 147.05 166.43 130.78 140.8 140.83
Market Capitalisation 347.03 404.08 317.52 341.85 340.95
Equity share ratio

Line Chart

Equity share Ratio

3000

2500 2427.95 2427.95 2427.95 2427.95 2427.95

2000

1500
Equity share Ratio
1000

500

0
2010 2011 2012 2013 2014

Bar graph
 Equity share Ratio
2014 2427.95

2013 2427.95

2012 2427.95
Equity share Ratio

2011 2427.95

2010 2427.95

0 500 1000 1500 2000 2500 3000

Interpretation

The Equity Share Capital is flat and remains unchanged over the last five years.This is the
indication that government is not interested na dilute the equity in any further.Hence all
movement of funds for expansion us essentially come either out of retain earnings or borrowing
from the market.The following Line chart and Bar Graph explains the Equity Share Capital of
Indian oil Corporation situation for issuing five years.

Reserves And surplus

Line Chart

Reserves And Surplus

70,000.00
63,540.79
60,000.00 58,679.27
55,435.26
52,889.72
50,000.00 48,124.88
40,000.00

30,000.00 Reserves And Surplus

20,000.00

10,000.00

0.00
2010 2011 2012 2013 2014

Bar graph
 Reserves And Surplus
2014 63,540.79

2013 58,679.27

2012 55,435.26
Reserves And Surplus

2011 52,889.72

2010 48,124.88

0.00 20,000.00 40,000.00 60,000.00 80,000.00

Interpretation

The Strengthening of 2010 Capital has mostly happened on an account of Considerable increases
in reserves and surplus of Indian oil corporation both statutory and otherwise. The following
Line chart and Bar Graph explains the Reserves and Surplus of Indian oil Corporation situation
for the issuing five years.

Secured Loans

Line Chart

Secured Loans
20,000.00
18,000.00 18,292.4518,870.75 17,889.33
16,000.00
14,000.00 14,473.61
13,059.46
12,000.00
10,000.00
Secured Loans
8,000.00
6,000.00
4,000.00
2,000.00
0.00
2010 2011 2012 2013 2014

Bar Graph
 Secured Loans
2014 17,889.33

2013 14,473.61

2012 13,059.46
Secured Loans

2011 18,870.75

2010 18,292.45

0.00 5,000.00 10,000.00 15,000.00 20,000.00

Interpretation

Secured Loans are those loans in 2010(18,292.45),2011(18,870.75) is Standard. The Product by

asset or collateral of some sort. The item purchased can be used as collateral ana a lien is places
on such items. The year of 2012 to 2014 is increased. The following Line chart and Bar Graph
explains the Secured Loans of Indian oil Corporation situation for the issuing five years.

Unsecured Loans

Line Chart

Unsecured Loans
70,000.00
63,868.6862,733.13
60,000.00
57,277.96
50,000.00

40,000.00

30,000.00 31,452.86 Unsecured Loans

26,273.80
20,000.00

10,000.00

0.00
2010 2011 2012 2013 2014

Bar Graph
 Unsecured Loans
2014 62,733.13

2013 63,868.68

2012 57,277.96
Unsecured Loans

2011 31,452.86

2010 26,273.80

0.00 20,000.00 40,000.00 60,000.00 80,000.00

Interpretation

Its Shows as study increases over the five years.The following Line chartand Bar Graph explains
the Unsecure Loans of Indian oil Corporation situation for the issuing years.

Share Of Dept Equity

Line Chart

Share of Debt Equity

1.4 1.28204
1.2 1.21558 1.22213

1
0.90971
0.8 0.8815

0.6 Share of Debt Equity

0.4

0.2

0
2010 2011 2012 2013 2014

Bar Graph
 Share of Debt Equity
2014 1.22213

2013 1.28204

2012 1.21558
Share of Debt Equity

2011 0.90971

2010 0.8815

0 0.5 1 1.5

Interpretation

Secured Loans +Unsecured Loans

Share of Debt Equity= ----------------------------------------------------

Equity Share Capital+ Reservesand Surplus

It is Calculated by using the formula from the Line Chart and Bar Graph, it is seen there is an
increase of Share of Debt Equity.

Share of Debt Total Capital

Line Chart

Share of Debt Total Capital

6
5.61814578
5

3 Share of Debt Total

Capital
2
0.47636312
1
0.52865113 0.67415044
0.27622
0
2010 2011 2012 2013 2014
Bar Graph

Share of Debt Total Capital

2014 0.67415044

2013 5.61814578

2012 0.52865113 Share of Debt Total

Capital
2011 0.47636312

2010 0.27622

0 1 2 3 4 5 6

Interpretation

Secured Loans +Unsecured Loans

Share of Debt Equity= -----------------------------------------------------

Equity Share Capital+ Reservesand Surplus

+Secured Loans +Unsecured Loans

It is Share of Debt Capital is Calculated by Adding Secured and Unsecured Loans to the
Addition of Equity share Capital, ReservesandSurplus, Secured Loans and Unsecured Loans. It
is seen from the Graph its Shows Consistent increases till 2012 with than rapidly to 5.618145 in
2013.

EBIT.

Line Chart
 EBIT
16,000.00
14,000.00
13,354.94
12,000.00
11,183.34
10,000.00
9,169.57
8,000.00 8,275.01
EBIT
6,000.00 5,641.50
4,000.00
2,000.00
0.00
2010 2011 2012 2013 2014

Bar Graph

EBIT
2014 8,275.01

2013 5,641.50

2012 11,183.34
EBIT

2011 9,169.57

2010 13,354.94

0.00 5,000.00 10,000.00 15,000.00

Interpretation

In Accounting And Finance, Earnings Before Interest And Taxes(EBIT)is a Measure of a firms
Profit that includes all Expenses except interest and Income Tax Expenses. It is the difference
between operating expenses. There is decreases in 2010(42.10) to 2014(28.91).The following
Line chart and Bar Graph explains the EBIT of Indian oil Corporation situation for the issuing
five years.

Earnings Per Share

Line Chart
 Earnings Per Share
45
42.1
40
35
30 30.67
28.91
25
20 20.61 Earnings Per Share
15 16.29

10
5
0
2010 2011 2012 2013 2014

Bar Graph

Earnings Per Share

2014 28.91

2013 20.61

2012 16.29
Earnings Per Share

2011 30.67

2010 42.1

0 10 20 30 40 50

Interpretation

Earnings Per Share (EPS) of Indian oil Corporation in the form of Line Chart And Bar Graph for
issued 5 years of 2010.If we consider issuing 5years of Earnings Per Share of Indian Oil
Corporation in the first 3 years the growth of EPS has been increasing ,if we consider Middle 2
years the EPS has been Decreasing And Increasing in the year 2011 and 2012.

Market Price Per share

Line Chart
 Market Price Per Share
180
160 166.43
147.05
140 140.8 140.83
130.78
120
100
80 Market Price Per Share
60
40
20
0
2010 2011 2012 2013 2014

Bar Graph

Market Price Per Share

2014 140.83

2013 140.8

2012 130.78
Market Price Per Share

2011 166.43

2010 147.05

0 50 100 150 200

Interpretation

There is an ups and down in the Market Price Per Share 166.43 Market Share being higher in the
2011 it than gradually decreases in the following Years.The following Line chart and Bar Graph
explains the Market Price Per share of Indian oil Corporation situation for the issuing five years.

Market Capitalisation

Line Chart
 Market Capitalisation
45000
40000 40408.4051
34185.564
35000 34703.0341 34095.729
31752.756
30000
25000
20000 Market Capitalisation
15000
10000
5000
0
2010 2011 2012 2013 2014

Bar Graph

Market Capitalisation
2014 34095.729

2013 34185.564

2012 31752.756
Market Capitalisation

2011 40408.4051

2010 34703.0341

0 10000 20000 30000 40000 50000

Interpretation

Market Capitalisation is calculated by the Multiplication of number of shares and market price of
the share. If we consider issuing five years of Market Capitalisation of Indian Oil Corporation in
the first 2 years the Growth of Market Capitalisation has been Decreasing, if we consider Middle
2 years the Market Capitalisation has been increasing.The following Line Chart and Bar Graph
explains the Market Capitalisation of Indian oil Corporation situation for issuing five years.
PARTICULARS RELIANCE INDUSTRIES
YEARS 2006 2007 2008 2009 2010
Equity share Ratio 1393.17 1393.21 1453.39 1573.53 3270.37
Reserves And Surplus 43,760.90 53,861.81 77,441.55 112,945.44 125,095.95
Secured Loans 7664.9 9569.12 6600.17 10697.92 11,670.50
Unsecured Loans 14,200.71 18,256.61 29,879.51 63,206.56 50,824.19
Share of Debt Equity 0.4842445 0.4542604 0.46238301 0.645347054 0.49
Share of Debt Total Capital 0.33 0.31 0.32 0.39 0.33
EBIT 100711.18 14,528.75 18,284.64 18,816.26 20,560.64
Earnings Per Share 65.08 85.71 133.86 97.28 49.64
Market Per Share 397.85 685.15 1,176.23 766.10 1,088.15
Market Capitalisation 55,440.72 95,476.20 170,982.56 120,568.66 355,865.75

Equity share Capital

Line Chart

Equity Share Capital

3500
3270.37
3000

2500

2000

1500 1573.53 Equity Share Capital

1393.17 1453.39
1000 1393.21

500

0
2006 2007 2008 2009 2010

Bar Graph
 Equity Share Capital
2010 3270.37

2009 1573.53

2008 1453.39
Equity Share Capital

2007 1393.21

2006 1393.17

0 1000 2000 3000 4000

Interpretation

The Equity Share capital is Flat in 2006 and 2007.The other year is increased in
2008(1453.39),2009(1573.53)and 2010(3270.37).The following Line Chart and Bar Graph
explains the Equity Share Capital of Reliance Industries situation for issuing five years.

Reserves And Surplus

Line Chart

reserves and surplus

140000

120000 125095.97
112945.44
100000

80000 77441.55
60000 59861.81 reserves and surplus

40000 43760.9

20000

0
2006 2007 2008 2009 2010

Bar Graph
 reserves and surplus
2010 125095.97

2009 112945.44

2008 77441.55
reserves and surplus

2007 59861.81

2006 43760.9

0 50000 100000 150000

Interpretation

In Reliance Industries,the Reserves and Surplus is increased for all five years.The following Line
chart and Bar Graph explains the Reserves And Surplus of Reliance Industries situation for
issuing five years.

Secured Loans

Line Chart

Secured Loans
14000

12000 11,670.50
10,679.92
10000
9569.12
8000 7664.9
6600.17 Secured Loans
6000

4000

2000

0
2006 2007 2008 2009 2010

Bar Graph
 Secured Loans
2010 11,670.50

2009 10,679.92

2008 6600.17
Secured Loans

2007 9569.12

2006 7664.9

0 5000 10000 15000

Interpretation

There is a Narrow increase of secured Loans during the year 2006 to 2007 the value should be
increased and in 2008 to 2010 is shows ups and down.The following Line Chart and Bar Graph
explains the Secured Loans of Reliance Industries situation for issuing five years.

Unsecured Loans

Line Chart

Unsecured Loans
70,000.00
63,206.56
60,000.00

50,000.00 50,824.19

40,000.00

30,000.00 29,879.51 Unsecured Loans

20,000.00 18,256.61
14,200.71
10,000.00

0.00
2006 2007 2008 2009 2010

Bar Graph
 Unsecured Loans
2010 50,824.19

2009 63,206.56

2008 29,879.51
Unsecured Loans

2007 18,256.61

2006 14,200.71

0.00 20,000.00 40,000.00 60,000.00 80,000.00

Interpretation

Its shows a study increases over the four years, the last year is decreases in 2010(50,824.19).The
following Line chart and Bar graph explains the Unsecured Loans of Reliance Industries
situation for issuing five years.

Share of Debt equity

Line Chart

Share of Debt Equity

0.7
0.645347054
0.6

0.5 0.4842445 0.486846396

0.46238301
0.4
0.4542604
0.3 Share of Debt Equity

0.2

0.1

0
2006 2007 2008 2009 2010

Bar Graph
 Share of Debt Equity
2010 0.486846396

2009 0.645347054

2008 0.46238301
Share of Debt Equity

2007 0.4542604

2006 0.4842445

0 0.2 0.4 0.6 0.8

Interpretation

Secured Loans +Unsecured Loans

Share of Debt Equity= --------------------------------------------------------

Equity Share Capital+ Reserves And Surplus

It is Calculated by using the formula from the line Chart and Bar Graph it is in the year of 2006
is 0.4842 and the middle three years is increased. The 5 years is come again 0.4868 the point
should be changed when the comparing to the first year .

Share Of Dept total Capital

Line Chart
 Share of Debt Total Capital
0.45
0.40 0.39
0.35
0.33 0.31 0.32 0.32
0.30
0.25
Share of Debt Total
0.20 Capital
0.15
0.10
0.05
0.00
2006 2007 2008 2009 2010

Bar Graph

Share of Debt Total Capital

2010 0.32

2009 0.39

2008 0.32 Share of Debt Total

Capital
2007 0.31

2006 0.33

0.00 0.10 0.20 0.30 0.40 0.50

Interpretation

Secured Loans +Unsecured Loans

Share of Debt Equity= --------------------------------------------------------

Equity Share Capital +Reservesand Surplus+Secured Loans +Unsecured Loans

In Share of Debt total capital is Calculated by adding secured Loans and unsecured Loans to the
addition of Equity Share Capital, Reserves and Surplus, Secured Loans and unsecured Loans. It
is seen from the Line Chart and Bar Graph it shows all the five years is increased.

EBIT

Line Chart

EBIT
25,000.00

20,000.00 20,560.64
18,284.64 18,816.26
15,000.00 14,528.75

10,711.18 EBIT
10,000.00

5,000.00

0.00
2006 2007 2008 2009 2010

Bar Graph

EBIT
2010 20,560.64

2009 18,816.26

2008 18,284.64
EBIT

2007 14,528.75

2006 10,711.18

0.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00

Interpretation

In Accounting And Finance, Earnings Before Interest And Taxes(EBIT)is a Measure of a firms
Profit that includes all Expenses except interest and Income Tax Expenses. It is increased all the
five years.The following Line chart and Bar graph explains the EBIT of Reliance Industries
situation for issuing five years.

Earnings Per Share

Line Chart

Earnings Per Share

160.00
140.00
133.86
120.00
100.00 97.28
80.00 85.71
Earnings Per Share
60.00 65.08
49.64
40.00
20.00
0.00
2006 2007 2008 2009 2010

Bar Graph

Earnings Per Share

2010 49.64

2009 97.28

2008 133.86
Earnings Per Share

2007 85.71

2006 65.08

0.00 50.00 100.00 150.00

Interpretation

Earnings Per Share (EPS) of Reliance Industries in the form of Line Chart And Bar Graph for
issued 5 years of 2006 to 2010.If we consider issuing 5years of Earnings Per Share of Reliance
Industries in the first 3 years the growth of EPS has been increasing, if we consider Middle years
of 2009(97.28)and the EPS has been Decreasing in the year of 2010 is (40.64).

Market Price Per Share

Line Chart

Market Price Per Share

1,400.00

1,200.00 1,176.23
1,088.15
1,000.00

800.00 766.10
685.15 Market Price Per Share
600.00

400.00 397.85

200.00

0.00
2006 2007 2008 2009 2010

Bar Graph

Market Price Per Share

2010 1,088.15

2009 766.10

2008 1,176.23
Market Price Per Share

2007 685.15

2006 397.85

0.00 500.00 1,000.00 1,500.00

Interpretation

There is increases in the first 3 years of Market Price Per share being in 2009(766.10) againits
come down.The following Line chart and Bar Graph explains theMarket Price Per share of
Reliance Industries situation for issuing five years.
Market Capitalisation

Line chart

Market Capitalisation
400000
350000 355865.74

300000
250000
200000
170982.55 Market Capitalisation
150000
120568.66
100000 95476.2
50000 55440.71

0
2006 2007 2008 2009 2010

Bar Graph

Market Capitalisation
2010 355865.74

2009 120568.66

2008 170982.55
Market Capitalisation

2007 95476.2

2006 55440.71

0 100000 200000 300000 400000

Interpretation

Market Capitalisation is calculated by the Multiplication of number of shares and market price of
the share. If we consider issuing all the five years is increased of Market Capitalisation of
Reliance industries. The following Line Chart and Bar Graph explains theMarket
Capitalisationof Reliance Industries situation for issuing five years.
PRTICULARS TATA MOTORS
YEARS 2009 2010 2011 2012
Equity share Ratio 514.05 570.6 637.71 643.75
Reserves And Surplus 11,855.15 14,208.55 19,351.40 18,967.51 18
Secured Loans 5251.65 7742.6 7708.52 6915.77 5
Unsecured Loans 7913.91 8883.31 6929.67 4095.86 8
Share of Debt Equity 1.0643825 1.12495712 0.732308241 0.5617531 0.74
Share of Debt Total Capital 0.5155936 0.52940227 0.422735529 0.3596939 0.42
EBIT 11,013.76 2,829.54 2,343.64 1,926.27
Earnings Per Share 19.48 39.26 28.55 3.91
Market Price Per Share 34.04 149.59 245.26 272.33
Market Capitalisation 1749.68 8534.97 15564.54 86425.20 83
Equity Share Capital

Line Chart

Equity share Ratio

700
637.71 634.75 638.07
600
570.6
500 514.05

400

300 Equity share Ratio

200

100

0
2009 2010 2011 2012 2013

Bar graph
 Equity share Ratio
2013 638.07

2012 634.75

2011 637.71
Equity share Ratio

2010 570.6

2009 514.05

0 200 400 600 800

Interpretation
The Equity Share Capital is flat in first 3 years and remains unchanged over the last 2 years. The
following Line chart and Bar Graph explains the Equity Share Capital of Tata Motors situation
for issuing five years.

Reserves and Surplus

Line Chart

Reserves And Surplus

25,000.00
19,351.40 18,967.51
20,000.00
18,473.46

15,000.00
14,208.55
11,855.15 Reserves And Surplus
10,000.00

5,000.00

0.00
2009 2010 2011 2012 2013

Bar Graph
 Reserves And Surplus
2013 18,473.46

2012 18,967.51

2011 19,351.40
Reserves And Surplus

2010 14,208.55

2009 11,855.15

0.00 5,000.0010,000.0015,000.0020,000.0025,000.00

Interpretation
In Reserves And Surplusthe year of 2009 to 2011 is increased ,in the 4th year(18,967.51) and 5th
year(18,473.46) is same but the point should be changed.The following Line Chart and Bar
Graph explains the Reserves and surplus of Tata Motors situation for issuing five years.

Secured Loans
Line Chart

Secured loans
9,000.00
8,000.00 7,742.60 7,708.52
7,000.00 6,915.77
6,000.00 5,877.72
5,000.00 5,251.65

4,000.00 Secured loans

3,000.00
2,000.00
1,000.00
0.00
2009 2010 2011 2012 2013

Bar Graph
 Secured loans
2013

2012

2011
Secured loans

2010

2009

0.00 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00

Interpretation
In secured Loans, there is a narrow increases during the year of 2009(5251.65) and
2010(7742.60)which than decreases in the following remaining three years .The following Line
Chart and Bar Graph explains the Secured Loans of Tata Motors situation for issuing five years.

Unsecured Loans
Line Chart

Unsecured Loans
10,000.00
9,000.00 8,883.32
8,390.97
8,000.00 7,913.91
7,000.00 6,929.67
6,000.00
5,000.00
Unsecured Loans
4,000.00 4,095.86
3,000.00
2,000.00
1,000.00
0.00
2009 2010 2011 2012 2013

Bar Graph
 Unsecured Loans
2013 8,390.97

2012 4,095.86

2011 6,929.67
Unsecured Loans

2010 8,883.32

2009 7,913.91

0.00 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00

Interpretation
It shows as study when all comes up and down over the five years in
2009(7913.91),2010(883.31),2011(6929.67),2012(4095.86),2013(8390.97) .The following Line
Chart and Bar Graph explains the Unsecured Loans of Tata Motors situation for issuing five
years.

Share of Debt Equity

Line Chart

Share of Debt Equity

1.20
1.12
1.06
1.00

0.80
0.73 0.75
0.60
0.56 Share of Debt Equity
0.40

0.20

0.00
2009 2010 2011 2012 2013

Bar Graph
 Share of Debt Equity
2013 0.75

2012 0.56

2011 0.73
Share of Debt Equity

2010 1.12

2009 1.06

0.00 0.20 0.40 0.60 0.80 1.00 1.20

Interpretation
Secured Loans +Unsecured Loans

Share of Debt Equity= ----------------------------------------------------

Equity Share Capital + Reservesand Surplus

It is Calculated by using the formula from the line Chart and Bar Graph it is in the year of 2009
and 2010 is flat (1.064382),(1.12495) and the last three years is decreased by zero.

Share of Debt Total Capital

Line Chart

Share of Debt Total Capital

0.60

0.52 0.53
0.50
0.42 0.43
0.40
0.36
0.30 Share of Debt Total
Capital
0.20

0.10

0.00
2009 2010 2011 2012 2013
Bar Graph

Share of Debt Total Capital

2013 0.43

2012 0.36

2011 0.42 Share of Debt Total

Capital
2010 0.53

2009 0.52

0.00 0.10 0.20 0.30 0.40 0.50 0.60

Interpretation
Secured Loans +Unsecured Loans

Share of Debt Equity= --------------------------------------------------------

Equity Share Capital+ Reservesand Surplus+Secured Loans +Unsecured

Loans

In Share of Debt total capital is Calculated by adding secured Loans and unsecured Loans to the
addition of Equity Share Capital, Reserves and Surplus, Secured Loans and unsecured Loans. It
is seen from the Line Chart and Bar Graph it shows all the four years is decreased, but the last
year 2013(0.4274) is increased.

EBIT
Line Chart
 EBIT
12,000.00
11,013.76
10,000.00

8,000.00

6,000.00
EBIT
4,000.00
2,829.54
2,000.00 2,343.64
1,926.27
591.13
0.00
2009 2010 2011 2012 2013

Bar Graph

EBIT
2013 591.13

2012 1,926.27

2011 2,343.64
EBIT

2010 2,829.54

2009 11,013.76

0.00 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00 12,000.00

Interpretation
In Accounting And Finance, Earnings Before Interest And Taxes(EBIT)is a Measure of a firms
Profit that includes all Expenses except interest and Income Tax Expenses. It is gradually
decreased all the five years.The following Line chart and Bar Graph explains the EBIT of Tata
Motors for issuing five years.

Earnings Per Share

Line Chart
 Earnings Per Share
45.00
40.00 39.26
35.00
30.00
28.55
25.00
20.00 19.48 Earnings Per Share
15.00
10.00
5.00 3.91
0.00 0.95
2009 2010 2011 2012 2013

Bar Graph

Earnings Per Share

2013 0.95

2012 3.91

2011 28.55
Earnings Per Share

2010 39.26

2009 19.48

0.00 10.00 20.00 30.00 40.00 50.00

Interpretation
Earnings Per Share (EPS) of Tata Motors in the form of Line Chart and Bar Graph for issued 5
years of 2009to 2013.If we consider issuing 5years of Earnings Per Share of Tata Motors in the
first 4 years the growth of EPS has been comes up down, if we consider the last years of
2013(0.95). So, the company of Tata Motors of QIP (Qualified Institutional Placement) should
be zero of 2013.

Market Price Per share

Line Chart
 Market Price Per Share
300.00
272.33 262.69
250.00 245.26

200.00

150.00 149.59
Market Price Per Share
100.00

50.00
34.04
0.00
2009 2010 2011 2012 2013

Bar Graph

Market Price Per Share

2013 262.69

2012 272.33

2011 245.26
Market Price Per Share

2010 149.59

2009 34.04

0.00 100.00 200.00 300.00

Interpretation
In Market Price Per share,there is increases in the first 4 years of Market share. But in the fifth
year 2013(262.69) is decreased.The following Line Chart and Bar Graph explains theMarket
Price Per share ofTata Motors situation for issuing five years.

Market Capitalisation
Line Chart
 Market Capitalisation
100,000.00
86,425.21
90,000.00
85,344.98 83,801.16
80,000.00
70,000.00
60,000.00
50,000.00
Market Capitalisation
40,000.00
30,000.00
20,000.00
15,564.54
10,000.00
0.00 1,749.68
2009 2010 2011 2012 2013

Bar Graph

Market Capitalisation
2013 83,801.16

2012 86,425.21

2011 15,564.54
Market Capitalisation
2010 85,344.98

2009 1,749.68

0.00 20,000.00 40,000.00 60,000.00 80,000.00100,000.00

Interpretation
Market Capitalisation is calculated by the Multiplication of number of shares and market price of
the share. If we consider issuing all the five years comes up and down of Market Capitalisation
of Tata Motors, the least proportion is 2009(1749.68). The following Line Chart and Bar
graphexplains theMarket Capitalisation of Tata Motors situation for issuing five years.
PARTICULARS STATE BANK OF INDIA
YEARS 2013 2014 2015 2016
Equity Share Capital 684.03 746.57 746.57 776.28
Reserves And surplus 98,199.65 1,17,535.68 1,27,691.65 1,43,498.16
Secured Loans 1,69,182.71 1,83,130.88 2,05,150.29 2,24,190.59
unsecured Loans 12,02,739.57 13,944,08.51 15,767,93.24 17,30,722.44
Share of Debt equity 13.87410218 13.3370767 13.87393511 13.54996096
Share of Debt Total Capital 0.93276905 0.930250772 0.932768296 0.931271293
EBIT 1,06,407.52 1,19,177.87 1,36,295.32 1,50,061.30
Earnings Per Share 206.2 145.88 17.55 12.82
Market Per share 205.03 189.37 273.45 197.55
Market Capitalisation 14,024.75 14,137.80 20,414.95 15,335.35

Equity Share Capital

Line Chart

Equity Share Capital

800
780 776.28
760
740 746.57 746.57

720
700 Equity Share Capital
680 684.03
660
640
620
1 2 3 4

Bar Graph
 Equity Share Capital

4 776.28

3 746.57

Equity Share Capital

2 746.57

1 684.03

600 650 700 750 800

Interpretation
In Equity Share Capital,the year of 2014 and 2015 is same but the first and last year will be
increased .so the state bank of india the company of following the Line chart and Bar Graph
explains theequity share capital of State Bank of India situation for issuing five years
Reserves and Surplus
Line Chart

Reserves And Surplus

300000

250000 246434.61

200000

150000
Reserves And Surplus
100000

50000
26435.61 21744.4 26435.6121744.4
0
2012 2013 2014 2015 2016

Bar Graph
 Reserves And Surplus
2016 21744.4

2015 26435.61

2014 21744.4
Reserves And Surplus

2013 246434.61

2012 26435.61

0 100000 200000 300000

Interpretation
The Strengthening of 2013 Capital has mostly happened on an account of Considerable increases
in reserves and surplus ofState Bank of India both statutory and otherwise. The following Line
chart and Bar Graph explains the Reserves and Surplus of State Bank of India situation for the
issuing five years.

Secured Loans
Line Chart

Secured Loans
250000
224190.59
200000 205150.29
183130.88
169182.71
150000

Secured Loans
100000

50000

0
2013 2014 2015 2016

Bar Graph
 Secured Loans

2016 224190.59

2015 205150.29

Secured Loans
2014 183130.88

2013 169182.71

0 50000 100000 150000 200000 250000

Interpretation
In secured Loans, there is a narrow increase during the year of 2013 to 2016.The following Line
chart and Bar Graph explains the Secured Loans of State Bank of India situation for issuing five
years.

Unsecured Loans
Line Chart

unsecured Loans
2000000
1800000
1730722.44
1600000 1576793.24
1400000 1394408.51
1200000 1202739.57
1000000
unsecured Loans
800000
600000
400000
200000
0
2013 2014 2015 2016

Bar Graph
 unsecured Loans

2016 1730722.44

2015 1576793.24

unsecured Loans
2014 1394408.51

2013 1202739.57

0 500000 1000000 1500000 2000000

Interpretation
It shows as study when all the five years is increased in 2013 to 2016.The following Line chart
and Bar Graph explains the Unsecured Loans of state Bank of India, situation for issuing five
years.

Share of Debt Equity

Line Chart

Share of Debt equity

14
13.9 13.87410218 13.87393511
13.8
13.7
13.6
13.54996096
13.5
Share of Debt equity
13.4
13.3 13.3370767
13.2
13.1
13
2013 2014 2015 2016

Bar Graph
 Share of Debt equity

2016 13.54996096

2015 13.87393511

Share of Debt equity

2014 13.3370767

2013 13.87410218

13 13.2 13.4 13.6 13.8 14

Interpretation
Secured Loans +Unsecured Loans

Share of Debt Equity= ----------------------------------------------------

Equity Share Capital + Reserves and Surplus

It is Calculated by using the formula from the line Chart and Bar Graph is in the year of 2013 to
2016 all should be same ,but the point is different.
Share of Debt Total Capital
Line Chart

Share of Debt Total Capital

0.933
0.93276905 0.932768296
0.9325
0.932
0.9315
0.931271293
0.931
Share of Debt Total
0.9305 Capital
0.930250772
0.93
0.9295
0.929
0.9285
2013 2014 2015 2016
Bar Graph

Share of Debt Total Capital

2016 0.931271293

2015 0.932768296
Share of Debt Total
Capital
2014 0.930250772

2013 0.93276905

0.928 0.929 0.93 0.931 0.932 0.933

Interpretation

Secured Loans +Unsecured Loans

Share of Debt Total Equity= --------------------------------------------------------

Equity Share Capital+ Reserves and Surplus+Secured Loans +Unsecured

Loans

In Share of Debt total capital is Calculated by adding secured Loans and unsecured Loans to the
addition of Equity Share Capital, Reserves and Surplus, Secured Loans and unsecured Loans. It
is seen from the Line Chart and Bar Graph it shows all the four years is comes up dowm ,from
2013 to 2016 the point should be vary.

EBIT
Line chart
 EBIT
160000
150061.3
140000 136295.32
120000 119177.87
106407.52
100000
80000
EBIT
60000
40000
20000
0
1 2 3 4

Bar Graph

EBIT

2016 150061.3

2015 136295.32

EBIT
2014 119177.87

2013 106407.52

0 50000 100000 150000 200000

Interpretation
In EBIT,the Accounting And Finance, Measure of a firms Profit that includes all Expenses
except interest and Income Tax Expenses. It is gradually increased all the five years.The
following Line chart and Bar graph explains the EBIT of State Bank of India for issuing five
years.

Earnings Per Share

Line Chart
 Earnings Per Share
250

200 206.2

150 145.88
Earnings Per Share
100

50
17.55 12.82
0
2013 2014 2015 2016

Bar Graph

Earnings Per Share

2016 12.82

2015 17.55

Earnings Per Share

2014 145.88

2013 206.2

0 50 100 150 200 250

Interpretation
Earnings Per Share (EPS) of State Bank of India in the form of Line Chart and Bar Graph for
issued 5 years ,If we consider issuing 5years of Earnings Per Share of State Bank of India in all
the four years the growth of EPS has been decreased.
Market Price Per Share
Line Chart
 Market Price Per share
300
273.45
250

200 205.03 197.55

189.37
150
Market Price Per share
100

50

0
2013 2014 2015 2016

Bar Graph

Market Price Per share

2016 197.55

2015 273.45

Market Price Per share

2014 189.37

2013 205.03

0 100 200 300

Interpretation
In Market Price Per share,the four years comes up and down of Market share.The following Line
chart and Bar graphexplains theMarket Price Per share of State Bank of India situation for
issuing five years.

Market Capitalisation
Line Chart
 Market Capitalisation
25,000.00

20,000.00 20,414.95

15,000.00 15,335.35
14,024.75 14,137.80
Market Capitalisation
10,000.00

5,000.00

0.00
2013 2014 2015 2016

Bar Graph

Market Capitalisation

4 15,335.35

3 20,414.95

Market Capitalisation
2 14,137.80

1 14,024.75

0.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00

Interpretation
Market Capitalisation is calculated by the Multiplication of number of shares and market price of
the share. If we consider issuing the first two years is stable of Market Capitalisation of state
Bank of India, the year of 2015 is 273.45 and the last years is 197.55. The following Line Chart
and Bar Graph explains theMarket Capitalisation of State Bank of India situation for issuing five
years.
Particulars BHARAT PETROLEUM
Years 2012 2013 2014 2015
Equity Share Capital 361.54 723.08 723.08 723.08
Reserves and surplus 26,435.61 2,46,434.61 21,744.40 2,64,35.61 21
Secured Loans 1424.87 1607.5 700 700
Unsecured Loans 12,260.82 10,129.51 11,108.36 4,808.37 2
Share of debt equity 0.51071439 0.0474879 0.5255756 0.202822 0.0
Share of debt Total Capital 0.34 0.0453351 0.34 0.168622
EBIT 5568.63 7787.08 9554.88 10,514.63 13
Earnings Per share 36.27 36.55 56.16 70.32
Market Per share 176.47 187.5 223.45 402.1
Market Capitalisation 6,380.13 13,557.82 16,157.31 29,075.20 31
Earnings Per share
Line Chart

Equity Share Capital

800
723.08
700 723.08 723.08 723.08

600
500
400
361.54 Equity Share Capital
300
200
100
0
2012 2013 2014 2015 2016

Bar Graph
 Equity Share Capital
2016 723.08

2015 723.08

2014 723.08
Equity Share Capital

2013 723.08

2012 361.54

0 200 400 600 800

Interpretation
In Equity Share Capital, the year of 2012 and 2016 is flat but the first year is remains changed
.so the Bharat Petroleum the company of following the Line chart and Bar Graph explains
theequity share capital of Bharat Petroleum situation for issuing five years
Reserves and Surplus
Line Chart

Reserves and surplus

250000
236434.61

200000

150000

Reserves and surplus

100000

50000
26435.61 21744.4 26435.6121744.4
0
2012 2013 2014 2015 2016

Bar Graph
 Reserves and surplus
2016 21744.4

2015 26435.61

2014 21744.4
Reserves and surplus

2013 236434.61

2012 26435.61

0 50000 100000 150000 200000 250000

Interpretation
In Reserves andSurplus, the year of 2012 to 2016 is same, in the 2thyear (236434.610is
increased.The following Line chart and Bar graph explains the Reserves and surplus of Bharat
Petroleum situation for issuing five years.

Secured Loans

Line Chart

Secured Loans
1800
1600 1607.5
1400 1424.87
1200
1000
800 Secured Loans
700 700
600
400
200
0 0
2012 2013 2014 2015 2016

Bar Graph
 Secured Loans
2016 0

2015 700

2014 700
Secured Loans

2013 1607.5

2012 1424.87

0 500 1000 1500 2000

Interpretation
In secured Loans, there is increases during the year of 2012 to 2016, but in 2014
,2015(700.00)and last year is zero .The following Line Chart and Bar Graph explains the
Secured Loans of Bharat Petroleum situation for issuing five years.

Unsecured Loans
Line Chart

Unsecured Loans
14,000.00

12,000.00 12,260.82
11,108.36
10,000.00 10,129.51

8,000.00

6,000.00 Unsecured Loans

4,808.37
4,000.00

2,000.00 2,159.09

0.00
2012 2013 2014 2015 2016

Bar Graph
 Unsecured Loans
2016 2,159.09

2015 4,808.37

2014 11,108.36
Unsecured Loans

2013 10,129.51

2012 12,260.82

0.00 5,000.00 10,000.00 15,000.00

Interpretation
It shows as study when all the five years come ups and down in 2012 to 2016.The following Line
chart and Bar Graph explains the Unsecured Loans of Bharat Petroleum, situation for issuing
five years.

Share of Debt Equity

Line Chart

Share of debt equity

0.6

0.510714385 0.525575632
0.5

0.4

0.3
Share of debt equity
0.2 0.202821638

0.1 0.096098449
0.047487941
0
2012 2013 2014 2015 2016

Bar Graph
 Share of debt equity
2016 0.096098449

2015 0.202821638

2014 0.525575632
Share of debt equity

2013 0.047487941

2012 0.510714385

0 0.1 0.2 0.3 0.4 0.5 0.6

Interpretation
Secured Loans +Unsecured Loans

Share of Debt Equity= ----------------------------------------------------

Equity Share Capital + Reserves and Surplus

It is Calculated by using the formula from the line Chart and Bar Graph is in the year of 2012 to
2016 all should be comes up and down.
Share of Debt Total Capital
Line Chart

Share of debt Total Capital

0.40
0.35 0.34
0.34
0.30
0.25
0.20 Share of debt Total
0.168621541 Capital
0.15
0.10
0.08
0.05 0.045335072
0.00
2012 2013 2014 2015 2016
Bar Graph

Share of debt Total Capital

2016 0.08

2015 0.168621541

2014 0.34 Share of debt Total

Capital
2013 0.045335072

2012 0.34

0.00 0.10 0.20 0.30 0.40

Interpretation
Secured Loans +Unsecured Loans

Share of Debt Total Equity= --------------------------------------------------------

Equity Share Capital+ Reserves and Surplus+Secured Loans

+Unsecured Loans

In Share of Debt total capital is Calculated by adding secured Loans and unsecured Loans to the
addition of Equity Share Capital, Reserves and Surplus, Secured Loans and unsecured Loans. It
is seen from the Line Chart and Bar Graph it shows all the four years is comes up dowm ,from
2012 to 2016 the point should be start with zero.

EBIT
Line Chart
 EBIT
14000
13,068.42
12000

10000 10,514.63
9554.88
8000 7787.08
6000 EBIT
5568.63
4000

2000

0
2012 2013 2014 2015 2016

Bar Graph

EBIT
2016 13,068.42

2015 10,514.63

2014 9554.88
EBIT

2013 7787.08

2012 5568.63

0 2000 4000 6000 8000 10000 12000 14000

Interpretation
In EBIT,the Accounting and Finance, Measure of a firms Profit that includes all Expenses except
interest and Income Tax Expenses. It is gradually increased all the five years.The following Line
Chart and Bar graph explains the EBIT of Bharat Petroleum for issuing five years.

Earnings Per Share

Line Chart

Earnings Per share

120.00

100.00 102.78

80.00
70.32
60.00
56.16 Earnings Per share
40.00 36.55
36.27
20.00

0.00
2012 2013 2014 2015 2016

Bar Graph

Earnings Per share

2016 102.78

2015 70.32

2014 56.16
Earnings Per share

2013 36.55

2012 36.27

0.00 20.00 40.00 60.00 80.00 100.00 120.00

Interpretation
Earnings Per Share (EPS) of Bharat Petroleum in the form of Line Chart And Bar Graph for
issued 5 years of 2012 to 2016.If we consider issuing 5years of Earings Per Share of Bharat
Petroleum in the five years the growth of EPS has been increasing.

Market Price Per Share

Line Chart
 Market Price Per share
500
450 436.80
400 402.1
350
300
250
223.45 Market Price Per share
200 187.5
176.47
150
100
50
0
2012 2013 2014 2015 2016

Bar Graph

Market Price Per share

2016 436.80

2015 402.1

2014 223.45
Market Price Per share

2013 187.5

2012 176.47

0 100 200 300 400 500

Interpretation
There is increased in all five years in the Market Price Per Share.The following Line chart and
Bar graph explains the Market Price Per share of Bharat Petroleum situation for the issuing five
years.

Market Capitalisation
Line Chart
 Market Capitalisation
35,000.00
31,584.30
30,000.00 29,075.20
25,000.00

20,000.00

15,000.00 16,157.31 Market Capitalisation

13,557.82
10,000.00
6,380.13
5,000.00

0.00
2012 2013 2014 2015 2016

Bar Graph

Market Capitalisation
2016 31,584.30

2015 29,075.20

2014 16,157.31
Market Capitalisation

2013 13,557.82

2012 6,380.13

0.00 10,000.00 20,000.00 30,000.00 40,000.00

Interpretation
Market Capitalisation is calculated by the Multiplication of number of shares and market price of
the share. If we consider issuing the five years is stable of Market Capitalisation of Bharat
Petroleum. The following Line chart and Bar Graph explains theMarket Capitalisation of Bharat
petroleum situation for issuing five years.
 FINDINGS
Equity Share Capital
After (QIP) in 2010 the Equity Share capital of Indian Oil Corporation remained
Constant and Unchanged over the next Fivve years until 2014.The Five years period
under observation revealed that the company did not go for any further equity issue either
through rights or follow on public offer(FPO).
Similarly,the Bharat Petroleum also disclosed similar Share Holder Pattern after the issue
of QIP in 2012.The Equity Capital remain unchanged till 2016.
The Analysis of the Secondary Data drawn from published reports has revealed some
interesting finding which are below summarized.
Reserves And Surplus
The Reserves And Surplus for four companies (Indian Oil Corporation ,Reliance
Industries, Tata Motors,State Bank of India)increases over the years but for Bharat
Petroleum,ts shows a decrease .
This shows that the Share holder belongs to the four Companies will get a profit when
compare with the Share Holder of Bharat Petroleum.
Secured Loans
A secured Loans is a loan in which the pledges some asset as collateral for a loan which
then becomes a secured loans debt owed to the creditor which gives the loan from the
analysis it is found that State Bank of India Has the Consistent increases in providing the
secured loans to the customers.
The remaining Four Companies Shows up and down in providing the secured loans .
This indicates a collateral asset for the loan is a variant.

Unsecured Loans
An unsecured Loans is one that is obtained without the use of property as collateral for
the loan.
A unsecured Loans is a loan in which the pledges some asset as collateral for a loan
which then becomes a unsecured loans debt owed to the creditor which gives the loan
from the analysis it is found that State Bank of India Has the Consistent increases in
providing the unsecured loans to the customers.
The remaining Four Companies Shows up and down in providing the unsecured loans.
This indicates a collateral asset for the loan is a variant.
Share of Debt Equity
The debt Capital how much debt of a company is using to Finance its asset relative to the
amount of value represented in Share holders Equity.
State Bank of India debt proportion remains same over this year .
 The highest proportion is found in the State Bant of India is 13.87410 in 2013.
The least Proportion is found in Reliance Industries with proportion of 0.4542604 in
2007.
Share of Debt Total capital
Share of Debt Total Capital Proportion is high in State Bank of India during
2015(0.93276)while the Low Proportion is founding in Reliance Industries in 2007(31.2).
Among the remaining three companies Bharat Petroleum the Proportion of 0.33806 in
2012,but in the same year Tata Motors has a proportion of 0.561753 in 2012.
Indian Oil Corporation has a proportion of 0.54865in 2012.This shows that the Debt of
the company has an impact towards the total capital.
EBIT
The Earnings Before Interest And Tax is high in reliance industries with the value of
20,560.64 in 2010 and it is low in Tata Motors 591.13 in 2013.
The remaining three companies has an intermediate EBIT value when compared with
Reliance Industries and Tata Motors.

Earnings Per Share (EPS)

Earnings Per Share indicates the earnings of an individual from the Analysis it is seen
that SBI provides the shareholders the maximum earnings of 203.03 in 2013, but in case
of Tata Motors the earnings per share is low (0.95).
The Earnings Per Share of remaining three companies shows the up and down which
clearly tells that earnings of an individual varies for every year.
Market Price Per share
The Market Price Per Share of Reliance Industries is high which tells us that the Share
Price of the Reliance company gives profit to the Share Holders. Tata Motors has Least
Market Price Per Share which indicates that the shareholders receive less profit.
The remaining Three Companies (Indian Oil Corporation, State Bank of India and Bharat
Petroleum) has Market Price Per Share which gives the shareholders a moderate profit.
Market capitalization
Market Capitalisation indicates the value of the company that is traded in the stack
Market from the analysis it is found that Reliance Industries has highest value in the
Market (170982.55) while Indian Oil Corporation has Least value.
The Remaining three companies share value shows up and down which indicates the
value of the company is in the flat state.
 SUGGESTIONS
The Data Analysis an interpretation and the findings that resulted from the same have been
Highly Enlightening and stimulating. Consequently it has set in motion a through process there is
reflected in some suggestions for the industry and the regulators .This Suggestions are
Summarized as follows Qualified Institutional Placement.
QIP (Qualified Institutional Placement) is one of the Greatest Innovation in the
Corporate Business history.It has Achieved the twin purposes of reducing Quatation cost
and Ensuring Substitution for the issue within a short period of time.The Attraction of
this has made many companies to take the root especially during the periods of a Barrish
,stack Market and Negative Public sentiment to Words Equity.It is suggested that the
norms for QIP should be more liberal then the exesting once.

QIP Should become the second option for companies after raise issue either in the case
of an IPO(Initial Public Offer) or FPO(Follow Public Offer).In the Eventof
disinvestment plan either by Public Sector or Private Sector companies,QIP should
become a Mandatury option with stibulated Quota before allotment to other category of
investors.The Norms for Regulatory Approval should removed completely and QIP
should be permitted to take outcomes root upto an 10,000 crores.As it exist in the case of
follow on Public Offer.

Qualified Institutional Buyers who are already registered with the regulators should
increased the Fund Allocation for qualified Institutional Placement. Subscribtion.

Public and Private Sector banks in India should also take up QIP investment by year
marketing a small position of there available funds.If there are already registered as
Qualified institutional Buyers otherwise ,there should be permitted to registered as
Qualified Institutional Buyers and advised invest in social responsible businesses such
as green energy or physical and Social infrastructure.

Mutual funds can also think of increasing their allocation to Qualified Institutional
Placement and continued to can has the same based on the performance of Qip
instruments.

The Strategic state the companies generally resolved to as refinded form of Qualified
Institutional Placement.These should be further encourage in schemes of expansion and
diversification before tapping the Primary Market.

Hybrid instruments that (debt today equity in the future)should also the QIP root to
ensure Minimize the flotation cost and full subscribtion for the issue.
 Qualified Institutional Buyers should be encouraged to follow concortiums to subscribe
for mega QIPs to minimize risk and make available funds as a one-stop-shop.

It may be a good idea to allow companies to add QIP has Another mode of retaining over
subscribtion has done green shown option.
 CONCLUSION
The Synergies of Primary Market and Secondary Market for the companies and the
investor invariably depend on Market sentiment.
This sentiment are driven by Public mood that reacts to information, Global clues
,Specific events and published results if the mood
is positive, the secondary markets take a Bullish turn and encourage the companies to tap
the primary market for better valuations.However the public mood is negative,market
state a down trend and become Barrish,this will discourage the companies to go to
primary market because,there is a risk of the issue failing has it happen in the case of
MRMF and Voccadrt Hospitals in febraury 2008.In order to carry out financial plans
companies may typically take the QIP root to raise Equity even if the valuations may be
slighty lesser.The Companies would have in any case ,Saved the passed of Flotation and
Underwritting and hence there is more less compensatory effect for lower valuations.

This Phenomenon was witnessed in the period after that follow a global financial crises
that followed that collapsed of lehman brothers in early 2008.As this the study revealed
many of the Indian Companies the QIP root to continue with there planned expansion.
This May probably be one of the reason that Indian could come out of the slagish
economic condition,faster than other countries,In 2010 QIP becomes the lender of the lost
resort when other revenue of funding become difficult are expansive .Hence,this
innovation and evolving tool for Financial Planning