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VOLUME NO.1(2011),ISSUE NO.3(JULY) ISSN2231-4245

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A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories

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Circulated all over the world & Google has verified that scholars of more than eighty-one countries/territories are visiting our journal on regular basis.

round !loor" Buildin# $o% &'(&-)-&" Devi Bhawan Ba*ar" JAAD+RI , &. ''" /a0unana#ar" +aryana" I$DIA

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CCCCONTENTSONTENTSONTENTSONTENTS

Sr. No. TITLE & NAME OF THE AUTHOR (S) Page No.

1% IMPACT OF CUSTOMER DEMOGRAPHICS ON THE CRM AWARENESS AND EFFICIENCY: AN EXPLORATORY STUDY OF THE FIVESELECT PUBLIC SECTOR BANKS IN INDIA

VUTLA PADMAJA RANI, DR. MOHAMMED ABBAS ALI & DR. VIJAYA KUMAR GUDEP

1

2% A FRAMEWORK FOR LEADERSHIP DEVELOPMENT IN PUBLIC SECTOR BANKSK. V. S. RAJU, DR. S. SUMAN BABU & DR. D. MASTHAN

5

3% THE EFFECTIVENESS OF LIUIDITY MANAGEMENT ON THE NIGERIAN ECONOMYOLOWE, OLUSEGUN

11

!% MICROFINANCE IN CAPE COAST METROPOLIS: A BASELINE SURVEYJAMES ATTA PEPRAH

15

5% CORPORATE SOLVENCY MANAGEMENT: HOW EFFECTIVE ARE CONTEMPORARY TOOLS"

DR. ENYI PATRICK ENYI

2#

$% DEPOSITORY SYSTEM IN INDIA % A COMPARATIVE STUDY OF NSDL AND CDSLDR. SULTAN SINGH

2$

&% THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY 'ICT( ON CUSTOMER SATISFACTION IN HDFC BANKOF INDIA

VAHID RANGRIZ & DR. M. G. BASAVARAJA

3!

)% TESTING THE CAPITAL ASSET PRICING MODEL 'CAPM( * A STUDY OF INDIAN STOCK MARKETDR. G. SUDARSANA REDDY

!#

+% PANCHAYATS AND EMPOWERING THE RURAL POOR SPECIALLY THE WOMEN: THE WEST BENGAL EXPERIENCENIRANJAN MANDAL & ASIT KUMAR BANERJEE

!&

1#% MICRO%CREDIT: A STUDY OF MICRO%CREDIT USAGE BY SELF HELP GROUP MEMBERS IN GOADR. ELIZABETH JOEY HENRIQUES & DR. REKHA RAMESH GAONKAR

5$

11% ROLE OF FDI IN INFRASTRUCTURE DEVELOPMENT IN INDIADR. JIMMY M. KAPADI & DR. (MRS.) HEMLATA AGARWAL

$1

12% AN EMPIRICAL ANALYSIS ON BAD LOANS IN PERSONAL LOAN % WITH SPECIAL REFERENCE TO RURAL BANKS IN ODISHADR. B. CHANDRA MOHAN PATNAIK, DR. IPSEETA SATPATHY & AROOP KUMAR MOHAPATRA

$+

13% MERGERS ACUISITIONS: AN EMPIRICAL STUDY ON THE SHORT%TERM POST% MERGER PERFORMANCE OF CORPORATEFIRMS IN INDIA

DR. RAMACHANDRAN AZHAGAIAH & T. SATHISH KUMAR

)#

1!% AN EMPIRICAL ANALYSIS OF SEMI%MONTH AND TURN OF THE MONTH EFFECTS IN INDIAN STOCK MARKETP. NAGESWARI, DR. M. SELVAM & DR. J. GAYATHRI

1#!

15% PHYSICAL INFRASTRUCTURE FACILITIES FOR AGRICULTURAL MARKETING IN HARYANA: A CASE STUDY OF SIRSA DISTRICTDR. ANITA DAGAR, SANDEEP KUMAR & MUKESH KUMAR

11#

1$% AN EMPIRICAL STUDY OF ENTREPRENEURSHIP DEVELOPMENT IN SUB URBAN REGIONS: A CASE STUDYDR. S. K. SINHA & DR. JYOTI AGARWAL

113

1&% INTRODUCTION OF ISLAMIC BANKING IN INDIA: A SUGGESTED LEGAL FRAMEWORKA. PANDU & DR. MOHAMMED GALIB HUSSAIN

11&

1)% MEASURING CORPORATE SUCCESS: STATISTICAL ANALYSIS OF FINANCIAL PERFORMANCE INDICATORS

DR. HEMAL PANDYA & CHETANA PARMAR

121

1+% FACTORS INFLUENCING INVESTOR BEHAVIOUR: AN EMPERICAL STUDY IN PUNJABGAURAV DAWAR & CHHAVI WADHWA

125

2#% TEXTING MANIA % A SOCIAL DILEMMADR. SATEESHCHANDRA JOSHI & VINOD K. LALBEG

132

21% CLIMATE CHANGE: A MAJOR ISSUE IN THE SUSTAINABLE DEVELOPMENT OF INDIADR. PRERNA JAIN & DR. PRAGATI JAIN

13$

22% ADHERENCE OF CUSTOMER NEEDS THROUGH THE REDRESSAL MECHANISM OF BANKSDR. V. DARLING SELVI

1!#

23% MEASURING ROI: A STUDY OF HURCONOMICS ON EMPLOYEES OF THE STEEL MANUFACTURING INDUSTRY IN KARNATAKAS. AMOLAK SINGH

1!$

2!% INDIA-S RECENT ECONOMIC PERFORMANCE AND FUTURE OUTLOOK * NEED FOR CAUTIOUS OPTIMISMC. BARATHI & S. PRAVEEN KUMAR

15#

25% MANAGEMENT OF STONE CRUSHING INDUSTRY AND ITS IMPACT ON EMPLOYEES AND ENVIRONMENT %A CASE STUDY

DR. T. V. RAMANA & B. SRINIVASA RAO

15!

REUEST FOR FEEDBACK 15)


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VOLUME NO:1(2011),ISSUE NO.3(JULY) ISSN2231-4245

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS MANAGEMENTA Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories

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CHIEF PATRONCHIEF PATRONCHIEF PATRONCHIEF PATRONPROF. K. K. AGGARWAL

)hancellor" 2in#aya3s 4niversity" Delhi

!ounder 5ice-)hancellor" uru obind Sin#h Indraprastha 4niversity" Delhi

67% Pro 5ice-)hancellor" uru Ja0bheshwar 4niversity" +isar

PATRONPATRONPATRONPATRONSH. RAM BHAJAN AGGARWAL

67% State Minister for +o0e 8 9ouris0" overn0ent of +aryana

5ice-President" Dadri 6ducation Society" )har:hi Dadri

President" )hinar Synte7 2td% ;9e7tile Mills


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PROF. NAWAB ALI KHANDepart0ent of )o00erce" Ali#arh Musli0 4niversity" Ali#arh" 4%P%

PROF. S. P. TIWARIDepart0ent of 6cono0ics 8 Rural Develop0ent" Dr% Ra0 Manohar 2ohia Avadh 4niversity" !ai*abad

DR. ASHOK KUMAR CHAUHANReader" Depart0ent of 6cono0ics" =uru:shetra 4niversity" =uru:shetra

DR. SAMBHAVNA!aculty" I%I%9%M%" Delhi

DR. MOHENDER KUMAR GUPTAAssociate Professor" P% J% 2% $% overn0ent )olle#e" !aridabad

DR. VIVEK CHAWLAAssociate Professor" =uru:shetra 4niversity" =uru:shetra

DR. SHIVAKUMAR DEENEAsst% Professor" overn0ent !% % )olle#e )hit#uppa" Bidar" =arnata:a

ASSOCIATE EDITORSASSOCIATE EDITORSASSOCIATE EDITORSASSOCIATE EDITORSPROF. ABHAY BANSAL

+ead" Depart0ent of Infor0ation 9echnolo#y" A0ity School of 6n#ineerin# 8 9echnolo#y" A0ity 4niversity" $oida

PARVEEN KHURANAAssociate Professor" Mu:and 2al $ational )olle#e" /a0una $a#ar

SHASHI KHURANAAssociate Professor" S% M% S% =halsa 2ubana irls )olle#e" Barara" A0bala

SUNIL KUMAR KARWASRA5ice-Principal" Defence )olle#e of 6ducation" 9ohana" !atehabad

DR. VIKAS CHOUDHARYAsst% Professor" $%I%9% ;4niversity


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CALL FOR MANUSCRCALL FOR MANUSCRCALL FOR MANUSCRCALL FOR MANUSCRIPTSIPTSIPTSIPTS

>einvite unpublished novel" ori#inal" e0pirical and hi#h ?uality research wor: pertainin# to recent develop0ents 8 practices in

the area of )o0puter" Business" !inance" Mar:etin#" +u0an Resource Mana#e0ent" eneral Mana#e0ent" Ban:in#" Insurance"

)orporate overnance and e0er#in# paradi#0s in allied sub1ects li:e Accountin# 6ducation@ Accountin# Infor0ation Syste0s@

Accountin# 9heory 8 Practice@ Auditin#@ Behavioral Accountin#@ Behavioral 6cono0ics@ )orporate !inance@ )ost Accountin#@

6cono0etrics@ 6cono0ic Develop0ent@ 6cono0ic +istory@ !inancial Institutions 8 Mar:ets@ !inancial Services@ !iscal Policy@

overn0ent 8 $on Profit Accountin#@ Industrial Or#ani*ation@ International 6cono0ics 8 9rade@ International !inance@ Macro

6cono0ics@ Micro 6cono0ics@ Monetary Policy@ Portfolio 8 Security Analysis@ Public Policy 6cono0ics@ Real 6state@ Re#ional

6cono0ics@ 9a7 Accountin#@ Advertisin# 8 Pro0otion Mana#e0ent@ Business 6ducation@ Business Infor0ation Syste0s ;MIS


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Mobile $u0ber ;see:ly" 5iewed on July '." E'&& httpepw%inuserviewabstract%1sp


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DEPOSITORY SYSTEM IN INDIA % A COMPARATIVE STUDY OF NSDL AND CDSL

DR. SULTAN SINGH

DEAN AND CHAIRPERSON

DEPARTMENT OF BUSINESS ADMINISTRATION

FACULTY OF COMMERCE AND MANAGEMENT

CHAUDHARY DEVI LAL UNIVERSITYSIRSA - 125 055

ABSTRACTTh !"#$% #%' # *$ *%%+!% % *$*- *$' /+!*" %h !"0"+*$/ 0 NSDL *$' CDSL 0" * !"' 0 11 *"#, .. 233342313. O$ %h 5*## 0 "#-%#, % #

/$/-'' %h*% *$ $/"*# $ %h %"+# 0 $+5" 0 /+!*$# *6*-*5- 0" '+*%, $+5" 0 /+!*$# #7$' 0" '+*%, $+5" 0 '!#%" !*"%/!*$%,

$+5" 0 -/*%$#, 6*- 0 '+*%"*-' #%/8 # 5#"6' '"$7 %h !"' $'" #%' $ 5%h %h '!#%"#, .. NSDL *$' CDSL. Th" # * #7$0/*$%

'00"$/ $ %h !"0"+*$/, $ *$ *6"*7, 0 5%h %h '!#%"# $ %h 5*## 0 %h #-/%' !*"*+%"#. Th" # *-# * !#%6 /""-*%$ $ %h

!"0"+*$/ 0 %h '!#%"# $ %h *56 !*"*+%"#, 9h/h # *-# 0$' #7$0/*$%. O$ %h 5*## 0 /+!*"*%6 0$*$/*- *$*-##, % # /$/-'' %h*% %h

-:'% !#%$ *# +*#"' 5 /""$% "*% # 5%%" $ /*# 0 CDSL *# /+!*"' % NSDL. Th !"0%*5-% !#%$ 0 NSDL # 5%%" %h*$ %h*% 0 CDSL *#

+*#"' 5 "%"$ $ $% 9"%h *$' "%"$ $ /*!%*- +!-'. H96", "%"$ $ :% *$' EPS # -9 $ NSDL *# /+!*"' % CDSL.

KEYWORDSDepository" Depository participants" Perfor0ance" Para0eters" 2i?uidity" Profitability" !inancial analysis%

INTRODUCTIONechnolo#y has chan#ed the face of the Indian stoc: 0ar:ets in the post-liberali*ation era% )o0petition a0on#st the stoc: e7chan#es" increase in the

nu0ber of players and chan#es in the tradin# syste0 led to a tre0endous increase in the volu0e of activity% 9he traditional settle0ent and clearin#

syste0 has been proved inade?uate due to operational inefficiencies" delay in transfer" re#istration" fa:e certificates and for#ery" non availability of

depositories" i0pedin# the healthy #rowth of the capital 0ar:et% 9o overco0e the proble0s re#ardin# the stoc: 0ar:ets world over" 0any tas: forces were set

up inducin# #roup of ' to su##est an alternative for the e7itin# settle0ent syste0" which involved physical 0ove0ent of scrips% 9he depository syste0 was

initiated by Stoc: +oldin# )orporation of India 2i0ited ;S+)I2< in July &E" when it prepared a concept on paper on K$ational )learance and Depository Syste0K

in collaboration with Price >ater +ouse under a pro#ra00e sponsored by the 4S A#ency for International Develop0ent% 9hereafter" overn0ent of India

pro0ul#ated the Depositories Ordinance in Septe0ber &." thus pavin# the way for settin# up of depositories in the country% S6BI notified re#ulations under

the Ordinance in May &H in order to provide the re#ulatory fra0ewor: for the depositories% Accordin#ly" the overn0ent of India enacted the Depositories

Act &H to start depository3s services in India% 9he depository syste0 revolves around the concept of paperless or scripless tradin# because the shares in a

depository are held in the for0 of electronic accounts" i%e% de0ateriali*ed for0%

Presently" there are two such depositories in India" vi*% $ational Securities Depository 2i0ited ;$SD2< and )entral Depository Services ;India< 2i0ited ;)DS2


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de0ateriali*ation has certainly brou#ht about lot of i0prove0ent in the invest0ent habits in our country and is bane for the co0panies and has created havoc

in 0aintainin# the 0e0bers re#ister and in conductin# the 0e0bers 0eetin#%

OBJECTIVES OF THE STUDY9he present study is conducted to achieve the followin# specific ob1ectives

&% 9o evaluate the perfor0ance of depositories i%e% $SD2 and )DS2 on the para0eters li:e nu0ber of co0panies available for de0at" nu0ber of co0panies

si#ned for de0at" nu0ber of clients" nu0ber of depository participants" nu0ber of locations served value of de0ateriali*ed stoc:" de0at custody" etc%

2. 9o analy*e the financial perfor0ance of $SD2 and )DS2 in ter0s of li?uidity" solvency and profitability%

RESEARCH HYPOTHESES9o achieve the ob1ectives of the study" the followin# hypotheses are for0ulated and tested

H#1: 9here is no si#nificant difference between the avera#e nu0ber of co0panies available for de0at" si#ned for de0at" depository participants" de0at

custody" nu0ber of clients" nu0ber of locations and value of stoc: of two depositories durin# the period under study%

H#2:9here is no correlation between the nu0ber of co0panies available for de0at" si#ned for de0at" depository participants" de0at custody" nu0ber of

clients" nu0ber of locations and value of stoc: of two depositories durin# the period under study%

H#3:9here is no si#nificant difference in the li?uidity" solvency and profitability of two depositories durin# the period under study%

H#!:9here is no correlation in the li?uidity" solvency and profitability of two depositories durin# the period under study%

DATA COLLECTION AND ANALYSIS9he present study is of analytical nature" therefore the use is 0ade of secondary data collected fro0 various websites" publications and brochures of depository

participants" research papersarticles published in various 1ournals0a#a*inesnewspapers and annual reports of depositories" depositary participants and S6BI

for a period of && years i%e% fro0 E'''-E'&'% 9he data collected have been analy*ed with the help of various statistical tools li:e )oefficient of )orrelation ;r< and

t-test%

RESULTS AND DISCUSSIONS9he conclusions drawn re#ardin# the perfor0ance of $SD2 and )DS2 are presented in the followin# sections

ANALYSIS OF BUSINESS PERFORMANCEIn this section" the perfor0ance of $SD2 and )DS2 is analy*ed and co0pared on the para0eters li:e nu0ber of co0panies available for de0at" nu0ber of

co0panies si#ned for de0at" nu0ber of clients" nu0ber of depository participants" nu0ber of locations served" value of de0ateriali*ed stoc:" de0at custody"

etc%

COMPANIES AVAILABLE FOR DEMAT

6very co0pany wants to reach its investors throu#h any depository% 9his is the 0a1or aspect for 0easurin# the perfor0ance of any depository% More nu0ber of

co0panies available for de0at shows the e7ponential #rowth of the depository% 9herefore" every depository tries to add a lar#e nu0ber of securities to the list

of securities to be settled only in de0at for0 by all cate#ories of investors% 9able-& shows the nu0ber of co0panies available for providin# de0ateriali*ation

facilities to their shareholders% 9he securities available for de0ateriali*ation includes e?uity shares" debt instru0ents" #overn0ent securities" preference shares"

certificates of deposit as well as the units of 0utual funds and e7chan#e traded funds% As is evident fro0 the 9able" the nu0ber of co0panies available for

de0at observed an e7ponential #rowth in both $SD2 and )DS2 durin# the period under study% 9here is no si#nificant difference in the avera#e nu0ber of

co0panies available for de0at in case of $SD2 and )DS2 as is evidenced by t-value% 9herefore" the null hypothesis can be accepted% But on the other hand" there

is a hi#h de#ree of positive co-relation" which is also found hi#hly si#nificant% 9herefore" the null hypothesis cannot be accepted% 9he 0ain reason behind the

#rowth of nu0ber of co0panies are low transaction char#es" centrali*ed database" low cost of set up and branch set up%

NUMBER OF COMPANIES SIGNED FOR DEMAT

9his is also another i0portant aspect for 0easurin# the perfor0ance of any depository% enerally" this para0eter shows the acceptability of the depository by

the investors and the reach in the 0ar:et% 9herefore" every depository tries to 0aintain their relationship with 0a7i0u0 nu0ber of investors% 9able-E reveals

that the nu0ber of co0panies si#ned for de0at have increased in both $SD2 and )DS2% 9here is no si#nificant difference in the avera#e nu0ber of co0panies

si#ned for de0at in case of )DS2 and $SD2% 9herefore" the null hypothesis can be accepted% +owever" there is a hi#h de#ree of positive correlation" which is also

found hi#hly si#nificant% 9herefore" the null hypothesis cannot be accepted% 9he reason behind the increase in the nu0ber of co0panies is to brin# all the

actively traded scrips under the purview of co0pulsory si#ned or settle0ent for0%

NUMBER OF DEPOSITORY PARTICIPANTS

A depository participant is an a#ent of the depository% If an investor wants to avail the services offered by the depository" the investor has to open an account

with the depository participant% Depository participant functions as a brid#e between the depository and beneficial owner% $u0ber of participants help to

increase the business of any depository% 9herefore every depository tries to increase the depository services across the country% As depicted in the 9able-" the

avera#e nu0ber of depository participants has also increased durin# the period E'''-&' in case of both $SD2 and )DS2% A si#nificant difference is found in the

avera#e nu0ber of depository participants in case of $SD2 and )DS2 at & per cent level of si#nificance% 9herefore" the null hypothesis cannot be accepted% Onthe other hand" there is a hi#h de#ree of positive correlation" which is a lso found si#nificant% 9herefore" the null hypothesis cannot be accepted%

NUMBER OF LOCATIONS SERVED

Depository offers the uni?ue facility for the depository participants to e7tend the services directly throu#h their branch networ: in order to reach investors even

in the re0ote areas% =eepin# in view the shortenin# settle0ent cycles" S6BI has directed that depository participants to connect electronically all the branches

and centre for the benefit of the investors which #ives faster settle0ents% As is evident fro0 9able-(" an increase in nu0ber of locations covered is observed

durin# the period E'''-&' in both $SD2 and )DS2% 9here is a si#nificant difference in the avera#e nu0ber of co0panies" which is si#nificant at & per cent level%

9herefore" the null hypothesis cannot be accepted% On the other hand" there is also hi#h de#ree of positive correlation" which is also found si#nificant% 9herefore"

the null hypothesis cannot be accepted%

VALUE OF DEMATERIALI/ED STOCK

9he value of securities held in the custody of depository witnessed a tre0endous #rowth of any depository% +i#her value of de0at stoc: shows the hi#her

#rowth of the depository% 9herefore" every depository wants to increase their value of de0ateriali*ation stoc: with the help of increase in the nu0ber of

participants and increase the nu0ber of accounts of the investors% As is evident fro0 the 9able-." the value of de0ateriali*ed stoc: has increased in both $SD2

and )DS2 durin# the period under study% But there is si#nificant difference at . per cent level of si#nificance between the avera#e nu0ber of co0panies in case

of $SD2 and )DS2% 9herefore" the null hypothesis cannot be accepted% On the other hand" there is also a hi#h de#ree of positive correlation" which is also found

hi#hly si#nificant% 9herefore" the null hypothesis cannot be accepted%NUMBER OF CLIENTS

9his aspect shows the efforts of depository in several areas li:e up-#radation of the technolo#y" enhance0ent of operational efficiency throu#h I9"

bench0ar:in# of ?uality process" cost reduction 0eans and a##ressive 0ar:etin# efforts% Inco0e of the depository is dependent on the nu0ber of clients%

9herefore" every depository tries to increase its nu0ber of clients in all the se#0ents of the 0ar:et% 9able-H shows the nu0ber of beneficial owner accounts


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opened with both the depositories reached a crucial 0ilestone in its life span% 9he focus is on buildin# up a nation-wide depository participant networ:" which

has paid off as there is appreciable increase in nu0ber of beneficial owner accounts% 2i:e other para0eters" avera#e nu0ber of clients has also increased in both

$SD2 and )DS2 durin# the period under study% But the difference between the avera#e nu0bers of clients is found si#nificant at . per cent level in case of $SD2

and )DS2% 9herefore" the null hypothesis cannot be accepted% 9his is the result of concerted efforts in several areas as up-#radation of technolo#y" enhance0ent

of operational efficiency throu#h I9" bench0ar:in# of ?uality process" cost reduction 0eans and a##ressive 0ar:etin# efforts% All these states that de0at for0 of

holdin# securities has now ac?uired wider acceptance of the Indian capital 0ar:et" as de0ateriali*ed stoc: will be 0ore li?uid than physical stoc: as it could be

delivered in any se#0ent of the 0ar:et% On the other hand" there is also a hi#h de#ree of positive correlation" which is also found hi#hly si#nificant% 9herefore"

the null hypothesis cannot be accepted%

DEMAT CUSTODY

9his is also one of the i0portant criteria to 0easure the perfor0ance of any depository% A depository can increase their de0at custody by increasin# its clients

and nu0ber of securities de0ateriali*ed% As is evident fro0 9able-" the de0at custody held in both the depositories witnessed a tre0endous #rowth durin# the

period under study% 9here is difference between the avera#e de0at custody of $SD2 and )DS2" which is found si#nificant at . per cent level% 9herefore" the null

hypothesis cannot be accepted% 9his is 0ainly due to the hi#her valuation of shares of co0panies represented by the new sectors of the econo0y i%e%

infor0ation technolo#y" co00unication and entertain0ent co0panies% On the other hand" there is a hi#h de#ree of positive correlation" which is also found

si#nificant% 9herefore" the null hypothesis cannot be accepted%

ANALYSIS OF FINANCIAL PERFORMANCE9his section includes the analysis of financial perfor0ance of $SD2 and )DS2 in ter0s of li?uidity" solvency and profitability%

ANALYSIS OF LIUIDITY

2i?uidity refers to the ability of the fir0 to 0eet its short-ter0 obli#ations on due dates and #ives a #ood insi#ht into a fir03s ability to re0ain technically solvent

in the event of adversities% 9he short-ter0 obli#ations are 0et by reali*in# a0ounts fro0 current" floatin# or circulatin# assets% If the current assets can pay off

the current liabilities" then li?uidity position is assu0ed to be satisfactory and vice-versa% 9he current ratio is used to analy*e the li?uidity position of $SD2 and

)DS2%

CURRENT RATIO

9he current ratio is the ratio of total current assets to total current liabilities and is calculated by dividin# current assets by current liabilities% 9he current assets

of a fir0 represents those assets which can be" in the ordinary course of business" converted into cash within a short period of ti0e" nor0ally not e7ceedin# one

year and includes cash and ban: balances" interest accrued on invest0ents" sundry debtors" etc% 9he current liabilities are the liabilities" which are short-ter0

0aturin# obli#ations to be 0et within a year and consist of sundry creditors@ inco0e received in advance" deposits fro0 depository participants" etc% As a

0easure of short-ter0 financial li?uidity" it indicates the rupee of current assets available for each rupee of current liability% 9he hi#her the current ratio" the

lar#er is the a0ount of rupees available per rupee of current liability" the 0ore is the fir03s ability to 0eet current obli#ations% As a convention" the 0ini0u0 of

E& is referred to as a ban:er3s rule of thu0b or arbitrary standard of li?uidity for a fir0% A ratio e?ual or near to the rule of thu0b is considered satisfactory%

9he idea of havin# doubled the current assets as co0pared to the current liabilities is to provide for delays and losses in the reali*ation of current assets%

+owever" the rule of E& should not be blindly followed while 0a:in# interpretation of the ratio" because fir0s havin# less than E& ratio 0ay be havin# a better

li?uidity than those fir0s havin# 0ore than E& ratio% 9his is so because the current ratio 0easures only the ?uantity of current assets and not ?uality of current

assets% 9he current ratio of $SD2 and )DS2 durin# the period under the study is #iven in table G% In case of $SD2" current ratio ran#es fro0 &%H ;E''G< to &%(H

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avera#e return on net worth of )DS2 and $SD2" which is found insi#nificant% 9herefore" the null hypothesis can be accepted% 9here is a low de#ree of positive

correlation in the ratio of return on net worth of )DS2 and $SD2" which is found insi#nificant% 9herefore" the null hypothesis can be accepted%

RETURN ON EUITY

In real sense" ordinarily shareholders are the real owners of the or#ani*ation% Preference shareholders have a preference over ordinary shareholders in the

pay0ent of dividend as well as repay0ent of capital% Preference shareholders #et a fi7ed rate of dividend irrespective of the ?uantu0 of profits of the co0pany%

9he rate of dividend varies with the availability of profits in case of ordinary shares only% 9hus" ordinary shareholders are 0ore interested in the profitability of a

co0pany and the perfor0ance of a co0pany should be 1ud#ed on the basis of return on e?uity capital of the co0pany% It is calculated by dividin# the net profit

after interest and ta7es by e?uity capital% 9he ratio of Return on 6?uity of $SD2 and )DS2 durin# the period under the study is #iven in table &E" which ran#es

fro0 '%&G ;E'''< to '%(& ;E'&'< in case of $SD2% 9his shows the fluctuatin# trend after the sudden decline in E''&-'E% On the other hand" the ratio in case of

)DS2 ran#es fro0 '%'( ;E'''< to '%( ;E''G


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www%i1rc0%or#%in

'

TABLESTABLE%1: NUMBER OF COMPANIES AVAILABLE FOR DEMAT

Y60 NSDL CDSL

&-'' GE& ..H

E'''-'& EGH EH&

E''&-'E (&E (EG(

E''E-' (H& (HEG

E''-'( .E&E (G&'

E''(-'. ..H .'E''.-'H H'EE .(

E''H-' H(G ..G

E''-'G .( .(

E''G-' G'& HE

E''-&' G&E( '(

9-value '%E ;insi#nificant


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www%i1rc0%or#%in

&

TABLE%5: VALUE OF DEMATERIALI/ED STOCK 'IN RUPEES(

Y60 NSDL CDSL

&-'' (H&G. G&GG

E'''-'& EH&G( &''.

E''&-'E ((E.G' E(&

E''E-' ..&'( H&H(

E''-'( HH&. &'H((

E''(-'. &((HH &E'.

E''.-'H E(G(& E&GE(EE''H-' &(EH(. EGH.

E''-'G (H. .HH'

E''G-' &'HHE( (.((G'

E''-&' .H&G(E GGEG'

9-value '% ;insi#nificant


12/14


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www%i1rc0%or#%in

TABLE%13: RETURN ON CAPITAL EMPLOYED '@6;6(

Y60 NSDL CDSL

E''' '%HG '%'

E''& &%'& -'%'

E''E '%E. '%'

E'' '%& '%

E''( '%E( '%(

E''. '%(& '%'

E''H '%. '%EE'' '%(H '%&

E''G '%. '%(E

E'' '%(G '%

E'&' &%'E '%

9-value E%E ;si#nificant at & per cent level


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INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS MANAGEMENT (

REQUEST FOR FEEDBACK

D60 R606

At the very outset" International Journal of Research in )o00erce" 6cono0ics 8 Mana#e0ent ;IJR)M

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