A study on the financial performance of the Hyderabad Stock Exchange

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A study on the financial performance of the Hyderabad Stock Exchange

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Abstract

The Hyderabad Stock Exchange Ltd. established in 1943 was as a non-profit organization. It is now on its way to completing its 62nd year in the capital market; serving the cause of saving and investments. The Exchange made today occupies a prominent place in the regional stock exchange in India. The Hyderabad stock Exchange has been promoting the mobilization of funds in the industrial sector for industrialization in the state of Andhra Pradesh. The main motto behind starting of any business is to gain profits. We can say the company is running in a healthy way by observing its past and present financial position. Now the company management wants to assess the financial position of the company. Hence the present study has been under taken with the help of Ratio Analysis. The scope of the study is confined to the following aspects: To carry out the present study, a period of two years is taken, from 2003 to 2005. Some selected ratios like liquidity ratios, activity ratios, leverage ratios and profitability ratios are examined to test the financial position of the company.

Introduction
Company profile
Industry profile
1. Origin of the industry
2. Various departments
3. Computerization of the industry
Research Methodology
Certificates
Declaration
Acknowledgement
Conceptual Framework
Data analysis and interpretation
Findings and suggestions
Annexure
Bibliography
Conclusion

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[...] This ratio is indirectly indicating that the company is highly relied on the creditors or money- lenders which is a very bad long-term solvency position of the company. shareholders funds proprietary\equity ratio = Total assets Interest coverage ratio Interest coverage ratio shows how many times interest chares is covered by funds that are available for payment of interest. The ratio is calculated as: EBIT Interest coverage ratio= Interest ACTIVITY RATIOS Activity ratios measure how efficiency the firm employees its resources. [...]

[...] Current Diversifications: Depository Participant: The Exchange has also become a Depository Participant with National Securities Depository Limited(NSDL) and Central Depository Services Limited(CDSL).Our own DP is fully operational and the execution time will come down opening the accounts at Hyderabad of investors, members of the Exchange and other Exchanges. The trades of all the Exchange having on-line trading which get into National depository can also be settled at Hyderabad by this Exchange itself. In short all the traders of all the investors and members of any Exchange at Hyderabad in dematerialized securities can be settled by the Exchange itself as a NSDL and CDLS. [...]

[...] Period of the study The present study has been undertaken for a period of five years i.e., from 2001-02 to 2005-06. INTRODUCTION Financial statements are prepared primarily for decision making. They play a dominant role in setting the frame work of managerial decisions. Financial analysis is the process of identifying the financial strengths and weakness of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account”. There are various methods or techniques used in analyzing financial statements, such as comparative statements, schedule of changes in working capital, common- size percentages, funds analysis, trend analysis and ratio analysis. [...]

[...] In 1942,Mr.Gulab Mohammed, The Finance Minister of the state Hyderabad formed a committee for the purpose of constructing rules and regulations of the Stock Exchange in 1942. Sri Purushotthamdas Thakurdas founder member of HSE on 14th November 1943 under Hyderabad Companies Act.”Mr.Kamal Ya Jung Bahadur” was the president of the Exchange. The HSE started functioning under “Hyderabad Security Contract Act. of in 1952.Under HEH Nizam's government as a company LTD by guarantee. It was the 6th stock exchange, recognized under securities contract Act. [...]

[...] Later, in order to bring all the trading members under on roof, the exchange still a larger premises situated 65/A,Somajiguda,Hyderabad-82”,with a six stored building and a constructed area of about “4,86,842 sft”. Considerable there has been a tremendous perceptible growth which could be observed from the statistics. The number of members of the Exchange was 65 in 1943, 117in 1993 and increased to 300 with 869 listed companies having paid up capital is Rs crores in 1999-2000. The Exchange has got a very smooth settlement system. [...]

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