LUPIN LTD.

Lupin Ltd., incorporated in the year 1983, is a Large Cap company operating in Pharmaceuticals and

health care sector. It's key Products Segments include Tablets which contributed 48.94% of Total Sales), Capsules which contributed 17.86% of Total Sales, Bulk Drugs which contributed 11.74% of Total Sales), Liquids which contributed 7.59% of Total Sales, Injectible Vials which contributed 5.38% of Total Sales, other Services which contributed 3.82% of Total Sales, for the year ending 31-Mar-2015.

The company’s management includes Dr.Desh Bandhu Gupta, Dr.K U Mada, Dr.Kamal K Sharma, Dr.Vijay Kelkar, Mr.Dileep C Choksi, Mr.Jean-Luc Belingard, Mr.Nilesh Gupta, Mr.R A Shah, Mr.Ramesh Swaminathan, Mr.Richard Zahn, Mrs.M D Gupta, Ms.Vinita Gupta, Dr.Cyrus Karkaria, Dr.Maurice Chagnaud, Dr.Rajender Kamboj, Dr.Sofia Mumtaz, Mr.Alok Ghosh, Mr.Alpesh Dalal, Mr.Debabrata Chakravorty, Mr.Divakar Kaza, Mr.Naresh Gupta, Mr.Pradeep Bhagwat, Mr.R V Satam, Mr.Shakti Chakraborty, Mr.Shamsher Gorawara, Mr.Sunil Makharia, Mr.Thierry Volle, Mr.Vinod Dhawan.

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Stocks to Invest: Maruti Suzuki

 Company: Maruti Suzuki India Limited
Type: Public
Traded as: BSE: 532500, NSE: MARUTI
Industry: Automotive
Founded: 1981
Number of employees: 12,900(2015,Sept.)
Slogan: Way of Life!

Current Models:
Omni - 1984 - Minivan
Gypsy - 1985 - SUV
WagonR - 1999 - Hatchback
Swift - 2005 - Hatchback
Grand Vitara - 2007 - Mini SUV
DZire - 2008 - Sedan
Ritz - 2009 - Hatchback
Eeco - 2009 - Hatchback    
Alto K10 - 2010 - Hatchback    
Ertiga - 2012 - Mini MPV
Alto 800 - 2012 - Hatchback
Stingray - 2013 - Hatchback
Celerio - 2014 - Hatchback
Ciaz - 2014 - Sedan

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BLUE-CHIP STOCK

Blue-chip Stock can be defined as stock of a large, well-established and financially sound company that has operated for many years. A blue-chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector. You will invariably find that is to be a household name. Most blue-chips have a record of paying stable or rising dividends for years. The term is believed to have been derived from poker, where blue chips are the most expensive chips.

A blue-chip company may have survived several challenges and market cycles over the course of its life which leads to it being perceived as a safe investment.

 

 

 

 

 

 

 

 

 

 

 

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QUICK RATIO

Quick ratio gives you an idea how easily the company can pay its current obligations – that is those bills due in the next 12 months.
The Quick Ratio is cash, marketable securities and accounts receivable divided by current liabilities (those due in the next 12 months). However, not all Current Assets are included in this ratio – excluded are doubtful accounts receivables and inventory. Basically, you are saying if all income stopped tomorrow and the company sold off its readily convertible assets, could it meet its current obligations?
A Quick Ratio of 1.00 means the company has just enough current assets to cover current obligations. Something higher than 1.00 indicates there are more current assets than current obligations.
It is important to compare companies with others in the same sector because different industries operate with ratios that may vary from one sector to another. Some industries such as utilities, for example carry much more debt than other industries and should only be compared to other utilities.
So, quick ratio is :

• Current assets – doubtful debtors and inventory / Current liabilities.

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Current Liabilities

Current Liabilities are bills that will come due in the next 12 months. These include the company’s normal operating expenses such as salaries, utilities, and so on. Long-term debt, such as mortgages would not be included, however that portion of payments due in the next 12 months would be included.

Current liabilities are usually presented in the following order:

1. the principal portion of notes payable that will become due within one year
2. accounts payable
3. the remaining current liabilities such as payroll taxes payable, income taxes payable, interest payable and other accrued expenses

The parties who are owed the current liabilities are referred to as creditors. If the creditors have a lien on company assets, they are known as secured creditors. The creditors without a lien are referred to as unsecured creditors.

The amount of current liabilities is used to determine a company's working capital (current assets minus current liabilities) and the company's current ratio.

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Fix Deposits by Companies ... 3

Advantages:

1. Variety of Deposit Scheme to Suit individual needs.
2. Reasonable Return
3. Liquidity
4. Moderate Safety
5. Good Service & Response

Disadvantages:

1. Deposits are unsecured.

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Fix Deposits by Companies ... 2

Differences between Manufacturing companies and Finance companies,

Manufacturing Companies: Manufacturing Companies are permitted to mobilize deposits from the Public up to 25% of their net worth and up to 10% from their Share Holders. They can accept deposits for a Minimum Period of 6 Months and a Maximum of period of 36 Months. Interest will be paid on Monthly, Quarterly, Half-yearly, Annually & on Maturity. (cumulative). Investor can withdraw the deposits before the maturity. In this case he gets the interest till date, but less penalty which is usually 1% or 2 %  Finance Companies: Finance Companies are permitted to accept deposits based on their credit rating issued by any of the agencies like CARE, ICRA,CRISIL and FITCH. They can accept deposits for a minimum period of 12 months and a maximum period of 60 months. Interest will be paid on monthly, quarterly, half-yearly, Annually & on maturity. (cumulative). Deposits with highest /high rating companies are safe. They may offer an Interest rate between 9 % & 11%. Investors can avail a loan up to 75% of the amount invested and also allowed Premature withdrawal.

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Fix Deposits by Companies .... 1

Fixed Deposits mobilized by companies are governed by the provision of Section 58-A of the Companies Act 1956. The Fixed Income instrument provides Fixed/committed return on the amount invested and is the most convenient investment options to all investors. Fixed Deposits can be classified into deposits received from,

1. Manufacturing Companies ( Non Banking-Non Finance Companies)
2. Non Banking Finance Companies (NBFC)

Points to consider before choosing companies:

• Go for the company which is in operation for at least 10 years.
• The company should be a Public limited/Government company.
• The company should be a prior maturity and dividend paying company.
• Check out the management of the company, it should be known and well established management.
• Do go through track record of the company.
• And last but not the least, in fact most important check out rate of interest offered by the company.

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How Corporations Work?

The very first corporate charters were created in Britain. And it was in the sixteenth century. But these were public corporation owned by the government, like the postal service. Privately owned corporations started in the early 19th century in the USA, UK and Western Europe. It happened because the governments of those countries started allowing anyone to create corporations.

For any corporation to function and do good business, it needs to get money. Initially one or more people come together and contribute a primary investment to get the company started. These entrepreneurs may invest some of their own money. In case they don't have enough, they will need to persuade other people to contribute. People such as venture capital investors or banks can invest in the company. There are two ways of doing this, by issuing bonds, which are basically a way of selling debt or taking out a loan. Other option is to issue stock, that is, shares in the ownership of the company.

Long ago stock owners realized that it would be convenient if there were a central place they could go to trade stock with one another, and the public stock exchange was born. Eventually, today's stock markets grew out of these public places. A corporation is generally entitled to create as many shares as it feels. Each share is actually a small piece of ownership in the company. The more shares you own, the more of the company you own, and the more control you have over the company's operations. Companies sometimes issue different classes of shares, which have different privileges associated with them. So a corporation creates some shares, and sells them to an investor for an agreed upon price. The corporation now has money to run their business. In return, the investor has a degree of ownership in the corporation, and can exercise some control over it. The corporation can continue to issue new shares, as long as it can persuade people to buy them. If the company makes a profit, it may decide to reinvest the money back into the business or use some of it to pay dividends to the shareholders.

Most companies that go public have been around for some time. Going public gives the company an opportunity for a potentially huge capital infusion, since millions of investors can now easily purchase shares. But it also exposes the corporation to stricter regulatory control by government regulators. When a corporation decides to go public, after filing the necessary paperwork with the government and with the exchange it has chosen, it makes an initial public offering (IPO). The company will decide how many shares to issue on the public market and the price it wants to sell them for. When all the shares in the IPO are sold, the company can use the proceeds to invest in the business.

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