Report Gaurav

8/8/2019 Report Gaurav

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Maximizing Returns on PF Investments at BHEL

MAXIMISING RETURNS ONPROVIDENT FUNDINVESTMENTS(Winter internship report)

SUBMITTED BY:

GAURAV GUPTAMBA (DEPT. OF MANAGEMENT STUDIES,IIT ROORKEE)EMAIL : [email protected]


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ACKNOWLEDGEMENT

I wish to express my heart full gratitude to Mrs. Anita Bahri

(DGM Finance) for allowing me to take my summer training at

BHEL and Mr. Chaten Mehar (Deputy Manager Finance) for

being always readily available for all sorts of guidance, under

whose guidance I undertook this project, for extending his advice

and direction that is required to carry on a study of this nature, and

for helping me with the intricate details of the project at every step.

Their continued cooperation and encouragement have made it possible for me to complete this report. They encouraged and

challenged me to throughout my winter process, never accepting

less than my best efforts.

I would like to thank all the other people at BHEL who always

helped me in the completion of my project. I would also wish to

thank my peers at DOMS, IIT ROORKEE for their constant

motivation and spontaneous help.

Gaurav Gupta

MBA, Roll No: 9810023

DOMS, IIT ROORKEE


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TABLE OF CONTENTS

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

INTRODUCTION

INVESTMENT POLICY

STUDY BACKGROUND

SIGNIFICANCE OF STUDY

STUDY METHODOLOGY

ABOUT BHEL

OBSERVATIONS

EXECUTIVE SUMMARY


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The main focus of this report is to highlight the relative importance

of YTM analysis in investment decisions. The project required to

analyze the investments for FY 2009-10 and try to analyze any

kind o trend between YTM and different securities. The trendsanalyzed were highlighting the fact that YTM for PSU bonds was

much higher as compared to central and State Govt. Securities.

Thus it was advised to invest in PSU Bonds for the first three

quarters of the year and investment in central and state securities

only at the end of the year for short duration to maximize returns.

Also provident fund as of now are not allowed to trade and are

required to maintain the investments till their maturity. This

restricts from resorting to any sophisticated active portfoliomanagement.

After having gone through the entire training and provident fund

management process at BHEL. It was observed that the most

crucial apart of the entire process was to take the right decision

related to investments. Unless the right investment is done in terms

of the YTM, tenure and type of security the portfolio cannot result

in optimum returns.

There has to be an investment strategy to in order to get a realisticreturn on investment. Also an investment advisor is needed to help

monitor the investments and guide through new opportunities. And

in times of volatility and uncertainty in the market, maintain the

long-term perspective and keep investment plan on the right track.

The report details about BHEL Provident Fund Investment Trust.

The major objectives of the summer project wre to develop an

analytical tool through which following broad results could be

obtained:

Minimum rate of 8.5% return has to be achieved. Out of the provident fund only 5% has to be retained for

emergency and rest has to be invested.

Every month investments are done after the analysis.

Yield to maturity is calculated at then end of the year.


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Calculation of fund is done after taking in consideration the

following factors:

1. Monthly PF contribution detail

2. Monthly loan deduction details

3. Withdrawal details4. Retirement employee list- as on month

5. Final settlement sheet

Investment would follow a pattern as prescribed by Ministry

of labour. According to which central government securities

and mutual funds would attract 25% of the funds of an EPF,

whereas government securities would attract 15% of the

funds and securities of public financial institutions would

attract 30% of the funds. The rest residual category (one ofthe three categories mentioned above) would attract 30%

percent of the funds.

And the procedure followed for investment is :

Monthly analysis of various factors is done to calculate the

amount of funds.

Quotes are requested for various securities matching the

requirements. YTM is calculated for every security.

Comparative analysis is done to choose on the best option.

Final decision is taken by the committee consisting of any of

them- Trustee, Chairperson and secretary.


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1. INTRODUCTION

The question of making some provision for the future of the industrial

worker after he retires or for his dependents in case of his early death

engaged the attention of Government of India soon after independence. Theideal way would have been provisions through old age and survivors

pensions as has been done in the industrially advanced countries. But in the

prevailing conditions in India, the institution of a pension scheme could not

be visualized in the near future another alternative was of provision of

gratutities after a prescribed period of service. But the gratuity scheme was

considered to be inadequate as the amount paid to a worker or his

dependents would be small. As the worker would no himself be making any

contribution to the fund. Taking into account the various difficulties,

financial and administrative, the most appropriate course appeared to be the

institution of contributory provident funds, compulsorily envisaging

contributions from both the worker and the employers. Instead of pension in

case of disability or for survivots, the government of India introduced

Contributory Provident Fund Schemes for different sections of the

employees.

In India, there are two types of provident funds, namely:

Non-contributory Provident Fund

Contributory Provident Fund

1.) Non-contributory Provident Fund

Non-contributory provident funds are employees own savings

mandatory provident fund schemes. These are more commonly

known as GENERAL PROVIDENT FUND and are generally meant

for central and state government employees. Contributions to these

fundsa are made solely by employees. These general provident funds

are governed by the GPF ACT,1925 and GPF RULES(Central

Services) Rules,1960.


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2.) Contributory Provident Fund

The contributory provident funds are applicable to industrial workers

not working in Government sector. The employers as well asemployees essentially contribute to these funds and the accumulation

with interest is paid back on exit from service or death.

Provident Funds have proved to vehicle of social protection on one hand an

effective instrument of savings for the country on the other. The effect fo

Provident Fund schemes on savings is very high importance in our country.

The provident fund scheme are also a means of mobilizing savings and an

internal source of resource for development purposes. As may be seen from

the extract of the Budgetary Transaction of the cental and state governments

and union territories.


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INVESTMENT POLICY OF PROVIDENT FUND AND ITS

FINANCIAL IMPACT

The investment of the Provident Funds and Pension Funds are made on thepattern prescribed by the Government of India from time to time. In the

beginning of these schemes, major part of investible funds were required to

be invested in securities issued by state/central Government or in the

securities payment of principle and interest was guaranteed by the

central/state governments. Upto 1969/70, entire investment in respect of

Employees Provident Fund was required to be made in central and state

government securities only. However, since then the government has been

revising the investment pattern so as to reduce the investment of provident

fund accumulations in government securities were the yield is comparativelyless. At the same time, investment in special deposit scheme,

bonds/securities of public sector financial institutions and public sector

banks were also prescribed which generally carried higher rates of return.

Recently, the pattern has been further liberalized envisaging investment of a

small percentage in bonds/securities in the private sector as well. The

investment policy of the Provident Funds has a significant impact on the

quantity of benefits to the members. A question is generally raised whether

Provident Fund and Pension Schemes operated by Employees Provident

Fund are managed by professionals. One has to strike a balance betweensecurity and profitability. Profitability could be ensured if investment made

in private sector but the more important principles of safety, security, social

and economic utility have also to be given due consideration.

Finally, when safety, yield and liquidity have been taken into consideration,

social security funds should, to the extent possible, be invested in order to

improve the overall quality of life. Investments in the health and education

infrastructure and in enterprises which create employment opportunities are

in this category. One important principle, however, in that the funds shouldbe invested only through financial intermediaries, so that the attention of the

management of the social security scheme is not diverted from its primary

concern of ensuring the efficient operation of the scheme.


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2. STUDY BACKGROUND

2.1 OBJECTIVE & SCOPE OF THE STUDY

PRIMARY OBJECTIVE

The broad objective of this project is to study how to maximize the returns

of Provident Fund Investment Trust at BHEL.

SECONDARY OBJECTIVE

In order to fulfill this objective the following complementary objectivesformed part of the project.

Understanding of complete process of Provident Fund Investment

Trust.

Studying the investment guidelines by Ministry of Labor.

Analyzing the investment pattern for last three financial years.

Analyzing the relation between YTM and different investment.

Along with the above objectives, some of the underlying objectives to do theresearch are as follows:

To gain a theoretical experience in one of the most debated topics in

academic as well as professional circles.

To analyze the practical implication of the theoretical aspects learnt

during the MBA program.

To gain practical knowledge of the Provident Fund activities in India.


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2.2 SIGNIFICANCE OF THE STUDY

Upon significance research it was found that, some of the inherent

shortcomings of these schemes are: Exposure to inflation leading to erosion of benefits.

Exposure to recession and poverty affecting capacity of workers to

pay the contribution.

Absence of provision for long term protection on regular basis.

However, the analytical study of different provident fund schemes reveals a

notable feature that the provident funds continue to occupy a place of

eminence in national context, in view of the following:

Promotes the idea of self-help.

Inculcates habit of regular savings.

Provides a feeling of ownership.

Simplicity and ease in administration.

Financial participation from government not essential.

Provides social security to members and family.

The nature and role of provident funds is, however, undergoing a change:

transformation from one that is primarily focused on providing financial

savings for meeting future needs, to the one that is concentrating on theimprovement of the well being and quality of life of its members. These

schemes are becoming increasingly relevant in developing countries today

as a result of transformation/diversification into social security schemes

like- pension schemes, provision for insurance cover against accidents,

disabilities and similar other benefits.

This report tries to find the best case scenario (best return scenario) in

the context of changing investment portfolio of employees provident

fund at BHEL based on two guidelines: Ministry of Labour Guidelines

and Ministry of Finance Guidelines. Finally, the report concludes withsome suggestions which if implemented could lead to better returns in

the future.


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2.3 CONTRIBUTION OF THE STUDY AND FOR WHOM

This study is positioned to offer a comprehensive overview of the provident

fund practices in India. As an overview, it focuses on the resulting effects ofthe various economic and market forces shaping its future. The study will be

of critical interest particularly to the provident fund departments and fund

managers at various public sector enterprises to help them get a perspective

into changing dynamics of provident management practices.

2.4 LIMITATIONS

In the course of the analysis, a number of hindrances and problem had

aroused. The limitations have been summarized below:

Skeptical attitude of the managers to share their information

Lack of know how from where to extract the proper data.

At many times simplistic assumptions had to be made.

3. STUDY METHODOLOGY


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3.1 STUDY APPROACH

After getting equipped with enough background information, the much

needed first hand information was gathered, which laid foundation for

the sudy. The study was based on exploratory, descriptive, quantitativeand qualitative research.

3.1.1 EXPORATORY RESEARCHThe preliminary study was conducted on the background of the existing

secondary research materials published on provident fund management

in Indian perspective. Further, a study was carried out with the help of a

unstructured in-depth interview with the DM-Finance, BHEL. The study

gave an understanding of the evolving provident fund management

practices. Information collected through this method was qualitative in

nature. The exploratory research was conducted to achieve the following: To understand the existing literature on provident fund

management.

To get acquainted with the various functional aspects of Provident

Fund department within an institution.

To get familiar with the new developments in Provident Fund field

in India.

3.1.2 QUANTITATIVE RESEARCH

The exploratory research was followed by the quantitavie research with aview to further analyze provident fund practices and to give a stronger base

to the research. This was a structured approach and included the quantitative

details about the provident fund management with in BHEL, written policy,

what kind of approach they used in making investments, etc. this served as

the analysis for the whole research.

After collecting the required information from the exploratory research, a

quantitative analysis was done. The quantitative research was directed

towards analyzing the existing provident fund management within BHEL.

Quantitative Research was mainly conducted using MS-Excel. The raw datawas entered and coded. The coded data was then entered into the computer

and charts were generated for graphical representation of the data. For the

purpose of graphs (Bar Chart, Pie Chart, Trend Analysis) Microsoft Excel

has been used.


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ABOUT

BHEL


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BHEL is the largest engineering and manufacturing enterprise in India in the energy-

related/infrastructure sector, today. BHEL was established more than 40 years ago,ushering in the indigenous Heavy Electrical Equipment industry in India - a dream

that has been more than realized with a well-recognized track record ofperformance. The company has been earning profits continuously since 1971-72 and

paying dividends since 1976-77.

BHEL manufactures over 180 products under 30 major product groups and caters to

core sectors of the Indian Economy viz., Power Generation & Transmission, Industry,Transportation, Telecommunication, Renewable Energy, etc. The wide network of

BHEL's 14 manufacturing divisions, four Power Sector regional centres, over 100project sites, eight service centres and 18 regional offices, enables the Company to

promptly serve its customers and provide them with suitable products, systems andservices -- efficiently and at competitive prices. The high level of quality & reliability

of its products is due to the emphasis on design, engineering and manufacturing to

international standards by acquiring and adapting some of the best technologiesfrom leading companies in the world, together with technologies developed in its

own R&D centres.

BHEL has acquired certifications to Quality Management Systems (ISO 9001),

Environmental Management Systems (ISO 14001) and Occupational Health & SafetyManagement Systems (OHSAS 18001) and is also well on its journey towards Total

Quality Management.

BHEL hasInstalled equipment for over 90,000 MW of power generation -- for Utilities, Captive

and Industrial users.Supplied over 2,25,000 MVA transformer capacity and other equipment operating in

Transmission & Distribution network up to 400 kV (AC & DC).Supplied over 25,000 Motors with Drive Control System to Power projects,

Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.

Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railwaynetwork.Supplied over one million Valves to Power Plants and other Industries.

BHEL's operations are organised around three business sectors, namely Power,

Industry - including Transmission, Transportation, Telecommunication & Renewable

Energy - and Overseas Business. This enables BHEL to have a strong customerorientation, to be sensitive to his needs and respond quickly to the changes in the

market.

BHEL's vision is to become a world-class engineering enterprise, committed to

enhancing stakeholder value. The company is striving to give shape to its aspirationsand fulfill the expectations of the country to become a global player.

The greatest strength of BHEL is its highly skilled and committed 42,600 employees.

Every employee is given an equal opportunity to develop himself and grow in hiscareer. Continuous training and retraining, career planning, a positive work culture

and participative style of management all these have engendered development ofa committed and motivated workforce setting new benchmarks in terms of
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productivity, quality and responsiveness.

Established in the late 50s, Bharat Heavy Electricals Limited (BHEL) is, today, a

name to reckon with in the industrial world. It is the largest engineering andmanufacturing enterprise of its kind in India and one of the leading international

companies in the power field. BHEL offers over 180 products and provides systemsand services to meet the needs of core sectors like: power, transmission, industry,

transportation, oil & gas, non-conventional energy sources and telecommunication. Awide-spread network comprising 14 manufacturing divisions, 8 service centres, 4

power sector regional centres, 18 regional offices, besides a large number of projectsites spread all over India and abroad, enables BHEL to be close to its customers and

cater to their specialised needs with total solutions - efficiently and economically. AnISO 9000 certification has given the company international recognition for its

commitment towards quality. With an export presence in more than 60 countries,

BHEL is truly Indias industrial ambassador to the world.

PRODUCT RANGE

THERMAL POWER PLANTS

Steam turbines and generators of up to 500MW capacity for utility and combined-cycle applications; capability to manufacture steam turbines with super critical

steam cycle parameters and matching generator up to 1000 MW unit size.Steam turbines for CPP applications; capability to manufacture condensing,

extraction, back pressure, injection or any combination of these types.

GAS BASED POWER PLANTS

Gas turbines of up to 260MW (ISO) rating.Gas turbine based co-generation and combined-cycle systems for industry and utility

applications.

HYDRO POWER PLANTS

Custom-built conventional hydro turbines of Kaplan, Francis and Pelton types withmatching generators, pump turbines with matching motor-generators.

Mini/micro hydro sets.Spherical, butterfly and rotary valves and auxiliaries for hydro station

DG POWER PLANTS

HSD, LDO, FO, LSHS, natural-gas/biogas based diesel power plants, unit rating up

to 20MW and voltage up to 11kV, for emergency, peaking as well as base load

operations on turnkey basis.

INDUSTRIAL SETS

Industrial turbo-sets of ratings from 1.5 to 120MW.

Gas turbines land matching generators ranging from 3 to 260MW (ISO) rating.Industrial stream turbines and gas turbines for drive applications and co-generation


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applications.

BOILERS

Steam generators for utilities, ranging from 30 to 500MW capacity, using coal,

lignite, oil, natural gas or a combination of these fuels: capability to manufacture

boilers with super critical parameters up to 1000 MW unit size.Steam generators for industrial applications, ranging from 40 to 450t/hour capacityusing coal, natural gas, industrial gases, biomass, lignite, oil, bagasse or a

combination of these fuels.Pulverized fuel fired boilers.

Stoker boilers.

Atmospheric fluidized bed combustion boilers.Circulating fluidized bed combustion boilers.

Waste heat recovery boilers.

Chemical recovery boilers for paper industry, ranging from capacity of 100 to 1000t/day of dry solids.

Pressure vessels.

BOILER AUXILIARIES

Fan

Axial reaction fans of single stage and double stage for clean air application, with

capacity ranging from 25 to 800m3/s and pressure ranging from 120 to 1,480 mof gas column.

Axial impulse fans for both clean air and flue gas applications, with capacity

ranging from 7 to 600m3/s and pressure up to 700 m of gas column.

Single and double-suction radial fans for clean air and dust-laden hot gases

applications up to 400oC, with capacity ranging from 4 to 600m3/s and pressure

ranging from 150 to 1,800 m of gas column.

Air-Pre-heaters

Ljungstrom rotary regenerative air-pre-heaters for boiler and process furnaces.

Large regenerative air-preheaters for utilities of capacity up to 1000 MW.

Gravimetric Feeders

Pulverizes

Bowl mills of slow and medium speed of capacity up to 100 t/hour.

Tube mills for pulverizing low-grade coal with high-ash content.

Pulse Jet and Reverse Air Type Fabric Filters (Bag Filters)

Electrostatic Precipitators

Electrostatic precipitators of any capacity with efficiency up to 99.9% for utility and

industrial applications.Mechanical Separators

Soot Blowers

Long retractable soot blowers (travel up to 12.2m), wall deslaggers, rotary

blowers and temperature probes and related control panels operating onpneumatic, electric or manual mode.

Swivel arm type soot blowers for regenerative air-preheaters.

Valves


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High-pressure and low-pressure bypass valves for utilities.

High and medium-pressure valves, cast and forged steel valves of gate, globe,non-return (swing-check and piston lift-check) types for steam, oil and gas duties

up to 600 mm diameter, 250 kg/cm2 pressure and 540oC temperature.High-capacity safety valves and automatic electrical operated pressure relief

valves for set pressure up to 200 kg/cm2 and temperature up to 550oC.

Safety relief valves for applications in power, process and other industries for setpressure up to 175 kg/cm2 and temperature up to 565oC.

Piping Systems, Constant Load Hangers, Clamp and Hanger components, variable

Spring hangers for power stations upto 850 MW capacities, combined cycle plants,industrial boilers and process industries.

HEAT EXCHANGERS AND PRESSURE VESSELS

CS/AS/SS/Nonferrous shell and tube heat exchangers and pressure vessels.Air-cooled heat exchangers.

Surface condensers.Steam jet air ejectors.

Columns.Reactors, drums.

LPG/propane storage bullets.LPG/propane store mounded vessels.

Feed water heaters.

PUMPS

Pumps for various applications to suit utilities up to a capacity of 660 MW.Boiler feed pumps (motor or steam turbine driven).

Boiler feed booster pumps.

Condensate pumps.

Circulating water pumps.Emergency oil pumps.

Lubricating oil pumps.Standby oil pumps.

POWER STATION CONTROL EQUIPMENT

Microprocessor-based distributed digital control systems.

Data acquisition systems.Man-machine interface.

Sub-station controls with SCADA.Static excitation equipment/automatic voltage regulator.

Electro-hydraulic governor control.Turbine supervisory system and control.

Furnace safeguard supervisory systems.Controls for electrostatic precipitators.

Controls for HP/LP bypass valves.

SWITCHGEARS

Switchgear of the various types for indoor and outdoor applications and voltage


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ratings up to 400 kV.

Minimum oil circuit breakers (66K 132kV).SF6 circuit breakers (132 kV 400 kV).

Vacuum circuit breakers (3.3 kV 33 kV).Gas insulated switchgears (36 kV).

BUS DUCTS

Bus-ducts with associated equipment to suit generator power output of utilities of up

to 500 MW capacity.

TRANSFORMERS

Power transformers for voltage up to 400 kV.HVDC transformers and reactors up to + 500 kV rating.

Series and shunt reactors of up to 400 kV rating.Instrument transformers:

Current transformers up to 400 kV.

Electro-magnetic voltage transformers up to 220 kV.Capacitor voltage transformers up to 400 kV.Cast resin dry type transformers up to 10 MVA 33 kV.

Special transformers: earthing; furnace; rectifier; electrostatic precipitator; freightloco and AC EMU and traction transformers.

INSULATORS

High-tension ceramic insulators.

Disc/suspension insulators for AC/DC applications, ranging from 45 to 400 knelectro-mechanical strength, for clean and pollute atmospheres.

Pin insulators of up to 33 kV.Post insulators suitable for applications of up to 6 units.

Hollow porcelains of up to 400 kV.Solid core insulators of 25 kV rating (both porcelain and hybrid) for railways.

Disc insulators for 800 kV AC and HVDC transmission lines (BHEL is the first Indianmanufacturer to supply such insulators).

CAPACITORS

Power capacitors for industrial and power systems of up to 250 kVAr rating for

application up to 400 kV.

Coupling/CVT capacitors for voltages up to 400 kV.

Low Tension Thyristor Switched Capacitors (LTTSC) for dynamic power factorcorrection

ENERGY METERS

Single Phase, Poly Phase and Special-purpose electro-mechanical and electrical

meters.


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INDUSTRIAL ELECTRICAL MACHINES

AC squirrel cage, slipring, synchronous motors, industrial alternators and DCmachines are manufactured as per range summarized below. Special-purpose

machines are manufactured on request.

AC Machines for Safe Area ApplicationInduction Motors

Squirrel cage 150 to 35000 kW

Synchronous motors 200 to 15000 kWVariable-Frequency

drives500 to 17500 kW

Synchronous motors 1000 to 17500 kW

Induction motors 200 to 35000 kWAC Machines for Hazardous Area Application

Flame-proof motors (Ex.'D')

150 to 1600 kW

Pressurised (Ex 'P') 150 kW and above

Non-sparking (Ex. 'N') Variable SpeedNon-sparking (Ex. 'N')

Increased safety (Ex 'E')Synchronous and Squirrel

CageDC Machines

Mill Duty 3.5 to 186 kWMedium/Large 100 to 12000 kW

Industrial AlternatorsSteam turbine, gas turbine and diesel engine driven from

2000 kVA to 60,000 kVA..Voltage & Enclosure

Voltage AC - 415 V to 13800 V

Enclosure SPDP, CACW, CACA

COMPRESSORS

Centrifugal compressors of varying sizes, driven by steam turbine/gas

turbine/motor, for industrial applications handling almost all types of gases; rangecovers pressure up to 800 kg/cm2 and capacity up to 350,000 Nm3/hour.

CONTROL GEAR

Industrial Control gear

Control panels and cubicles for applications in steel, aluminum, cement, paper,

rubber, mining, sugar and petrochemical industries.Liquid rotor starters for slipring induction motors of up to 2500 hp rating.Liquid regulators for variable-speed motors.

ContractorsLT air break type AC for voltages up to 660 V.

LT air break type DC contactors for voltages up to 600 V.

HT vacuum type AC for voltages up to 11 kV.Traction Control gear

Control gear equipment for railways and other traction applications.


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Control and Relay Panels

Control panels for voltages up to 400 kV and control desks for generating stationsand EHV sub-stations.

Control and relay boards.Turbine gauge boards for thermal, gas, hydro and nuclear sets.

Turbine electrical control cubicles.

Outdoor-type control panels and marshalling kiosks, swinging type synchronizingpanel and mobile synchronizing trolley.Transformer tap changer panels.

SILICON RECTIFIERS

Silicon power rectifiers with matching transformers for industrial applications likealuminum/copper/zinc smelting, for electrolysis in chemical industry and AC/DC

traction application.

THYRISTOR EQUIPMENT

Thyristor converter equipment.Thyristor inverter equipment.Static AC variable-speed drive systems.

Thyristor valves for HVDC transmission up to 500 kV.

POWER DEVICES

High power capacity silicon diodes, thyristor power devices and solar photovoltaic

cells.

TRANSPORTATION EQUIPMENT

AC Electric locomotiveAC-DC Dual Voltage Electric locomotive.Diesel-Electric Shunting locomotive

Diesel Hydraulic Shunting locomotiveOHE Recording cum Test Car.

Electric Traction Equipment (for diesel/electric locos electric multiple units, dieselmultiple units and urban transportation systems).

Traction motors.Transformers smoothing reactors.

Traction generators/alternators.Rectifiers.

Bogies.Vacuum circuit breakers.

Auxiliary machines.

Microprocessor-based electronic control equipment.Power converter/inverter.

Static inverter for auxiliary supply.

Loco control resistances i.e. field diverters, dynamic braking resisters and inductiveshunts.

Traction control gear.


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OIL FIELD EQUIPMENT

Oil Rigs: A variety of on-shore rigs, work-over rigs, mobile rigs, heli-rigs, desertrigs for drilling up to depths of 9,000 m, completer with matching draw-works and

hoisting equipment including: Mast and substructure; Rotating equipment; Mudsystem including pumps; Power packs and rig electrics; Rig instrumentation; Rig

utilities and accessories.Well Heads and Christmas Trees/Sub Sea Equipment

Well Head and X-Mas Trees for working pressures up to 10,000 psi.Choke and kill manifolds.

Mud valves.Full bore valves.

Block valves.Mudline suspension system.

Casing support system.

Sub sea Well Heads.

CASTINGS AND FORGINGS

Sophisticated heavy castings and forgings of creep-resistant alloy steels, stainless

steel and other grades of alloy steels meeting stringent international specifications.

SEAMLESS STEEL TUBES

Hot-finished and cold-drawn seamless steel tubes with a range varying from outerdiameter of 19 to 133 mm and wall thickness of 2 to 12.5 mm, in carbon steel and

low-alloy steels to suit ASTM/API and other international specifications.

Studded tubes: Extended surface tubes for high performance heat transferapplications

Spiral finned tubes: High frequency resistance welded finned tubes for WHRsystems, economizers and heat furnaces.

NON-CONVENTIONAL ENERGY SYSTEMS

Wind electric generator of up to 250 kW rating.Solar PV systems and power plant.

Solar water heating systems.Solar lanterns.


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OBSERVATIONS


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ISSUER WISE BREAKUP (IN Cr.)

T DEP 39.63

GOI 72.56

PSU BONDS 72.69

PRIVATE SECTOR BONDS 14.90

PUBLIC SECTOR BANKS 33.65SDL 54.75

TOTAL 288.19

ISSUER WISE BREAKUP(IN Cr.)

39.63

14%

72.56

25%

72.69

25%

14.90

5%

33.65

12%

54.75

19%

T DEP

GOI

PSU BONDS

PRIVATE SECTOR

BONDS

PUBLIC SECTOR

BANKS

SDL


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INVESTMENT IN PSU BONDS + TERM DEPOSITS

ISSUER NAME INVESTMENT (IN Cr.) %

BOB 0.59 0.40

BOI 2.00 1.37

CANARA BANK 2.42 1.65

EXIM BANK 0.96 0.66

HUDCO 2.76 1.89

IDBI 17.42 11.93

IDFC 2.00 1.37

IOB 13.53 9.27

NABARD 10.77 7.37

NCRPB 8.56 5.86

OBC CALL2016 1.43 0.98

PNB 6.62 4.53

POWERGRID 1.71 1.17

REC BONDS 2.50 1.71

SAIL 0.94 0.64

PFC 13.28 9.10

SBI 4.12 2.82

SYNICATE BANK 2.00 1.37

IFCI 12.75 8.73

T DEP 39.632 27.15

TOTAL 145.98 100.00

INVESTMENT IN PSU BONDS+ T DEP(%)

0.401.37 1.65 0.66

1.89

11.93

1.37

9.277.37

5.86

0.98

4.53

1.17 1.71 0.64

9.10

2.821.37

8.73

27.15

0.00

5.00

10.00

15.00

20.00

25.00

30.00

BOB

BOI

CAN

ARABANK

EXIMBANK

HUDCO

IDBI

IDFC

IOB

NABARD

NCRPB

OBC

CALL2016

PNB

POWERGRID

R

ECBONDS

SAIL

PFC

SBI

SYNIC

ATEBANK

IFCI

TDEP


27/28


MATURITY YEAR WISE BREAKUP(IN Cr.)

YEAR OF MATURITY TOTAL INVESTMENT

2009 5.61

2010 39.59

2011 13.59

2012 12.96

2013 25.42

2014 12.23

2015 0.00544

2016 9.51

2017 8.12

2018 22.35

2019 11.13

2020 3.46

2021 13.69

2022 11.06

2023 3.49

2024 2.97

2026 10.32

2028 3.21

2032 6.80

CALL 2016 11.28


28/28


OBSERVATIONS

The performance of the fund has matched andsurpassed the benchmark of 8.5% as thereturns on the investment portfolio.

Diversified portfolio as not more than 5%investment is done in any company.

Investment only in AAA rated bonds hence norisk portfolio.

Lack of active portfolio management due tonon allowance of trading into equity andmutual funds.

No investment in real estate, gold andcommodities etc.

Date post:	10-Apr-2018
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