Amity University Haryana

SYNOPSIS
ON
COMPARATIVE ANALYSIS OF FINANCIAL STATEMENTS
OF

SUMMER
PROJECT REPORT SUBMITTED TOWARDS PARTIAL
FULFILMENT
OF
MASRERS OF BUSINESS ADMINISTRATION PROGRAMME
(AMITY UNIVERSITY, HARYANA)
Guided by:
DR. SUNIL KUMAR
ASSISTANT PROFESSOR
AMITY UNIVERSITY

Submitted by:
JITENDER BHARDWAJ
M.B.A (B&F)
4TH SEM(5179644)

AMITY UNIVERSITY, HARYANA

(2013-2015)

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ACKNOWLEDGEMENT
As a part of curriculum at Amity University Haryana, the Program aims at
overall development of the students by providing them an opportunity to
gain

corporate

e x p o s u re

and

space

to

apply

their

t h e o re t i c a l

k n o w l e d g e i n p r a c t i c e . N o summer internship can be successful without the

support of the people who keep themselves closely involved with the student
undergoing the program.
I Jitender Bhardwaj, student of MBA-4th sem., Amity University Haryana, would
like to express my sincere thanks to India bulls Financial Services Ltd. for
giving me the opportunity to carry out the weekly industry interaction program in
their organization. The whole period spent with the organization has been of
immense learning experience.
Preparing a project of such a kind was not an easy task in itself and I am sincerely
thankful to all those people who help me lot, in preparing and completing this
project. I express my sincere gratitude to my industry guide Mr. Ashish Jain,
Vice President (Finance) at INDIABULLS FINANCIAL SERVICES LIMITED for
his able guidance, continuous support and cooperation throughout my project,
without which the present work would not have been possible. I would also like to
thank the entire team of India bulls Financial Services Limited: Mr.Santosh,

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Mr.Gaurav, Mr.Jaidev, Ms.Tarun, Mr.Rakib and Mr.Dheeraj for the constant

support and help in the successful completion of my project.
Also, I am thankful to my Faculty Guide, Dr. Sunil Kumar for her continued
guidance and invaluable encouragement.
Finally, I would like to thank everyone else who rendered their help in the
completion of the project.

Signature
(Student)

PROFORMA FOR APPROVAL OF PROJECT PROPOSAL

Name of Student:

Roll No.:

Name of University:

Title of the Project:

JITENDER BHARDWAJ

MBA-5179644

AMITY UNIVERSITY, HARYANA

COMPARATIVE ANALYSIS OF
FINANCIAL STATEMENTS OF
INDIA BULLS.

Subject Area:

ACCOUNTING & FINANCE

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Name and Designation of

The Supervisor:

Dr. SUNIL KUMAR, FACULTY, AUH

Signature of the Student

Supervisor

Signature of the

Date:

SYNOPSIS:
APPROVED

Date:

APPROVED

NOT

Comments/Suggestions for reformulating the project:

__________________________________________________________________
__________________________________________________________________
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__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
______________________________

Authorized Signatory
Date:

CERTIFICATE OF ORIGINALITY

This is to certify that the project report COMPARATIVE ANALYSIS OF

FINANCIAL STATEMENTS OF INDIABULLS is an original work of the student
and is being submitted to Amity University in partial fulfillment of the requirement
for the award of the degree of Masters of Business Administration (MBA).
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The matter embodied in this project is genuine work done by the student and has
not been submitted whether to this University or to any other University / Institute
for the fulfillment of the requirement of any course of study.

...

.
..
Signature
Signature of the Guide

..

of

the

Student

Date:
Date:

Place:
Place:

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TABLE OF CONTENTS

S.NO.

TOPIC

PAGE No.

Executive Summary

Title of Study

Introduction

10

Objectives of study

12

Research
Methodology

12

Limitations of study

13

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References

13

EXECUTIVE SUMMARY

India
Group

bulls
Type

Public company

of
large

is one
India's

Traded as

NSE: INDIABULLS
BSE: 532544

Industry

Financial Services, Real Estate, Power, Securities.

Founded

May, 2000

Headquart
ers
Key
people

Products

Website

Gurgaon, India

Sameer Gehlaut, Chairman & CEO, Rajiv Rattan, Vice

Chairman, Saurabh Mittal, Vice Chairman

Securities, Consumer Finance, Mortgages, Real Estate,

Power, Technology. Page
8

www.Indiabulls.com

Amity University Haryana

Business houses. The Group has several businesses which cover a wide spectrum
of Real Estate, Financial Services, Securities, Technology, Power and Chartered
Aviation. Many of the companies are public entities and are listed on Indian stock
markets. India bulls was conferred the status of a Business Super brand by The
Brand Council, Super brands India in 2008.
During the course of my internship at India bulls Financial Services Limited, I have
very well realized the fact that practical learning is far better than classroom
teaching. From the last two years I have been studying many financial terms and
their practical implication was also understood when I started doing my project in
the company.
My project: Comparative Analysis of Financial Statements of India bulls
involves a complete research on India bulls and comparison of its current financial
position viz-a-viz previous year.
This project has great significance in my opinion as by this I got an opportunity to
practically apply the theoretical knowledge that I gained from the reputed
university.
The objective of my study is to study the consolidated and standalone financial
results of the company and find out the financial position of the company over the
previous year.
The project includes complete research about the financials of India bulls, its
foundation and its industry profile i.e., the brief description of Non-banking
financial companies. The project also comprises of the nature of the problem
being studied, the analysis of the problem and appropriate conclusion and
recommendations followed by the references or bibliography of the project has
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been specified to make the project more effective and easy to understand and
also to certify the originality of the project.

TITLE OF STUDY

COMPARATIVE
ANALYSIS
OF
FINANCIAL
STATEMENTS
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OF

INTRODUCTION
Financial statement:
A financial statement is an organized collection of data according to logical and
consistent accounting procedures. Its purpose is to convey an understanding of
some financial aspects of a business firm. It may show a position at a moment of
time as in the case of a balance sheet, or may reveal a series of activities over a
given period of time, as in the case of an income statement.

Financial statement analysis:

It is the process of identifying the financial strength and weakness of a firm from
the available accounting data and financial statement. The analysis is done by
properly establishing the relationship between the items of balance sheet and
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profit and loss account the first task of financial analyst is to determine the
information relevant to the decision under consideration from the total
information contained in the financial statement. The second step is to arrange
information in a way to highlight significant relationship. The final step is
interpretation and drawing of inferences and conclusion. Thus financial analysis
is the process of selection relating and evaluation of the accounting
data/information.

Consolidated and Standalone Financial Results:

When one company holds a controlling interest in another company, the
arrangement can complicate the task of preparing financial statements. Even
though one "owns" the other, the two enterprises frequently remain separate
legal entities, with each responsible for its own bookkeeping. When it comes time
to report results, consolidated financial statements and stand-alone statements
provide two ways of looking at the companies' performance.

Basic Difference: A consolidated financial statement covers the activities of the

parent company and its subsidiaries in a single report, as if they were all a single
company operating under one roof.

Stand-alone financial statements, by contrast, treat each entity as if it were

entirely separate -- the parent unrelated to the subsidiaries, and the subsidiaries
unrelated to one another. If a subsidiary earned $1 in income, for example, that
$1 would show up on the parent's consolidated statement and the subsidiary's
stand-alone statement -- but not the parent's stand-alone statement.
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Intra-company Transaction: It's common for companies to do business with

their subsidiaries -- and subsidiaries to do business with each other -- as if they
were unrelated. An automaker, for example, might own the company that makes
its transmissions, but it still pays that company for the transmissions it provides.
Or if a subsidiary is struggling financially, its parent company may loan it money,
with the expectation that it will be paid back with money from the subsidiary's
operations. Transactions like these will appear on stand-alone financial statements
because they affect the profitability of the individual units, which is important for
internal bookkeeping and evaluation. But such transactions would not show up on
consolidated statements because they don't affect the overall state of the larger
company.

Types Of transactions: Typical transactions that appear on stand-alone

statements but not on consolidated statements include equity investments, sales
and loans. When a parent owns stock in a subsidiary, the stock appears as an
asset on the parent's stand-alone balance sheet but as equity on the subsidiary's
sheet. When the parent buys something from the subsidiary, or vice versa, each
accounts for the transaction separately on its cash

flow or income statements. If one lends money to the other, the loan is an asset
on the lender's balance sheet and a liability on the borrower's. During
consolidation, a company's

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accountants will eliminate these and other intra-company transactions. If they

didn't, the transactions would in effect be recorded twice.

Requirements: The Financial Accounting Standards Board, which sets rules for
U.S. companies' financial statements, and the International Accounting Standards
Board, which does the same worldwide, requires companies to prepare
consolidated financial statements when they hold a controlling interest -- more
than 50 percent ownership -- in other businesses.

When a subsidiary is wholly owned, meaning that the parent owns 100 percent of
the subsidiary, its finances are fully incorporated into the consolidated statement.
In other words, from looking at the consolidated statement, you wouldn't even
know the subsidiary exists. If the subsidiary is not wholly owned -- that is, if
another investor or company holds a minority stake -- then that "non-controlling
interest" must be accounted for on the consolidated balance sheet. Noncontrolling interest appears on the balance sheet as a separate category under
stockholders' equity. Finally, wholly owned subsidiaries don't have to produce
stand-alone financial statements, although they frequently do for internal
purposes; non-wholly-owned subsidiaries generally have to produce stand-alone
statements for the sake of their minority owners.

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OBJECTIVES OF THE STUDY

The basic objective is to analyze the consolidated and standalone financial

results of the company

To know the financial position of the company.

To analyze the growth of India bulls over the previous year.

To analyze the operational and financial efficiency of the company.

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RESEARCH METHODOLOGY

Since the research is for industry analysis and it is structured for NBFCs, the
research uses secondary data for analysis and interpretation.
The secondary data required for this study was collected:

By visiting the India bulls financial services limited and analyzing the
information provided by them.

Journals

Research article

Internet websites

Annual reports

Research methodology is a methodology for collecting all sorts of

information & data pertaining to the subject in question.

The objective is to examine all the issues involved & conduct situational
analysis.

The methodology includes the overall research design, sampling procedure

& fieldwork done & finally the analysis procedure.

The methodology used in the study consistent of sample survey using

primary data. The primary data has been collected with the help of
questionnaire.

The questionnaire has been drafted & presented by the INDIA BULLS.

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LIMITATIONS OF THE STUDY

The analysis was made with the help of the secondary data collected from
the company.(already used data)

All the limitations of consolidated and standalone financial results are

applicable to this study.

The period of study is short.

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REFERENCES
Economic times
www.scribd.com
www.moneycontrol.com
www.financialexpress.com
www.finance.mapsofindia.com/financial.market
Business world
Business week
www.wikipedia.com
www.financialservices.com
Annual report of India bulls financial services of the year ending
2010-2013-2014

Financial Services & Marketing - E. Gordon, Himalaya Publishing House,

Mumbai (2012).

Mutual Funds in India - H. Sadhak, Response Books, New Delhi (1997).

Financial Management khan & Jain (1982).

Investment Management VK. Bhalla, Edition, 4. Publisher, Chand (1997).

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