1. A
project report
On
“CORPORATE DIVIDEND POLICY"

2. Schedule of the presentation
1. Introduction
2. Objective, Research Methodology & Scope of Study
3. Company Profile of Bhubaneswar stock exchange
4. Data analysis & interpretation
5. Findings
6. Conclusion
7. Future Projection of Stock
8. Suggestions and Recommendations

3. Introduction
 Dividends are payments made by a corporation to
its shareholder members. It is the portion of
corporate profits paid out to stockholders. When a
corporation earns a profit or surplus, that money
can be put to two uses: it can either be re-
invested in the business, or it can be paid to the
shareholders as a dividend. Many corporations
retain a portion of their earnings and pay the
remainder as a dividend.
 For a joint stock company, a dividend is allocated
as a fixed amount per share. Therefore, a
shareholder receives a dividend in proportion to
their shareholding

4. Objective, Research Methodology &
Scope of Study
Objective
 To study the impact of ‘dividend’ on the price and
volume of business in the stock exchange in
respect of particular stock before and after such
dividend is announced.
 To check whether abnormality exists in the price
and volume of the share as the ‘dividend’ is
announced.
 To analyze the bearing of such abnormality (if it
does exist) on the market capitalization and
volumes traded on the stock market a month
before the Announcement Date and a month after
the ex-dividend date for all the scripts under the

5. Research Methodology & Scope of Study
 Research Design: Exploratory Research
Sampling:
 Sampling Technique : Judgmental sampling
 Sampling Unit : One company of NSE-50
 Sampling Size : 5 companies from NSE-50
index
Data Sources:
Secondary Data
• Internet Sources
• Business Journals
• Research papers

6. Scope
 To do a relative analysis between NSE-50 index
and share prices of selected companies.
 Limited to NSE-50 companies only.
 Study of the annual reports of different sector
companies
 For each company, annual reports are taken from
the year 2012 to 2015 (2012-15).
 The scope of the study of report is limited to the
establishment of Dividend Payout Pattern and the
factors necessary for such establishment
 Following ratios have been worked out:
 Scale of firm's operation by taking Natural Log of
Net Sales
 Dividend Yield
 Dividend Payout Ratio

7. Company Profile of Bhubaneswar
stock exchange
 Bhubaneswar Stock Exchange Association Ltd,
(BhSE) is a stock exchange located in Bhubaneswar,
Odisha, India. It was incorporated on 17 April 1989,
and granted recognition to the Stock Exchange on 5
June 1989, by the Ministry of Finance, Govt. of India.
It is one among the 21 odd regional stock exchanges
in India.
Organisation Structure
 The affairs of the BhSE are managed by a Board of
Directors consisting 9 Directors from the following
categories:[2]
 4 Public Interest Directors
 4 Shareholder Directors
 1 Director in the capacity of Chief Executive Officer
(BhSE)

8. COMPANY – 1

9. Name: Tata Consultancy Services Limited (TCS Limited)
Type Public company
Traded as BSE: 532540
NSE: TCS,
Industry IT services, IT consulting
Founded 1968
Headquarters Mumbai, Maharashtra, India
Key people N. Chandrasekaran (CEO & MD)
Services IT, business consulting and outsourcing services
Net Profit Increase 19,256.96 cr.(2014-2015)
Employees 319,000+ (April 2015)
Website www.tcs.com
Company profile

10. Year
ended as
at 31st
March
Total Paid
up Capital
(In Cr)
Net Profit after
Depreciation
and Tax
(In Cr)
Dividend
Paid/
Proposed
(In Cr)
Retain earning
carried forward
to Balance
Sheet
(In Cr)
Total Reserves
& Surplus
(In Cr)
2015 195.87 19,256.96 15,473.87 3,783.09 45,220.57
2014 195.87 18,474.92 6,267.33 12,178.83 43,856.01
2013 295.72 12,786.34 4,305.88 8,461.46 32,266.53
2012 295.72 10,975.98 4,893.04 6060.94 24,560.91
DPS(D/N) EPS
(In RS)
PAY OUT
RATIO
79 98.31 80.35
32 94.17 33.98
22 65.23 33.72
25 55.97 44.66
Graphical Analysis:
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
2015 2014 2013 2012
incrore
Years
Net Profit
Dividend Paid
Reserves & Surplus
0
10
20
30
40
50
60
70
80
90
100
2015 2014 2013 2012
Years
EPS
PAY OUT RATIO

11. Abnormal Return (Volume):
No AD-30
TO AD-1
AD-10
TO AD-1
AD AD+1 TO
ED-1
ED ED+1 TO
ED+10
ED+1
TO
ED+30
1
CUM. AB
896657 684470
1,608,700
1,405,734 1,126,300 1,063,160 1007827
2 DAYS 30.00 10.00 1.00 35.00 1.00 10.00 30.00
3 AVE.DAILY
AB (1/2)
29888.56 68447 1,608,700 40163.85 1,126,300 106316 33594.23
4 AVE.VOL. 430487.1
5 AB/AVE (3/4) 0.07 0.15 3.73 0.09 2.61 0.24 0.08
0
0.5
1
1.5
2
2.5
3
3.5
4
AD-30
TO AD-
1
AD-10
TO AD-
1
AD AD+1
TO ED-
1
ED ED+1
TO
ED+10
ED+1
TO
ED+30
Series1 0.07 0.15 3.73 0.09 2.61 0.24 0.08
RatioofABvoltoAVvolume
TCS Volume Effect

12. COMPANY – 2

13. Name: Bajaj Auto Limited
Type Public company
Traded as BSE: 532977
NSE: BAJAJ-AUTO
Industry Automobile
Founded 1930
Headquarters Pune, India
Key people Rahul Bajaj (Chairman), Rajiv Bajaj (MD)
Products Motorcycles, three-wheeler vehicles and cars
Net Profit Decrease 2,813.74 cr.(2014-2015)
Employees 9,119 + (April 2015)
Website www.bajajauto.com
Company profile

14. Year
ended as
at 31st
March
Total Paid
up Capital
(In Cr)
Net Profit
after
Depreciation
and Tax
(In Cr)
Dividend
Paid/
Proposed
(In Cr)
Retain earning
carried forward
to Balance
Sheet
(In Cr)
Total
Reserves &
Surplus
(In Cr)
DPS(D/N) EPS
(In RS)
PAY OUT
RATIO
2015 289.37 2,813.74 1,446.84 1,366.9 10,402.78 50 97.24 51.41
2014 289.37 3,243.32 1,446.84 1,796.84 9,318.65 50 112.08 44.61
2013 289.37 3,043.57 1,302.15 1,741.42 7,612.58 45 105.18 42.78
2012 289.37 3,004.05 1,302.15 1,701.9 5,751.70 45 103.81 43.35
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
2015 2014 2013 2012
incrore
Year
Net Profit
Dividend Paid
Reserves & Surplus
Graphical
Analysis
0
20
40
60
80
100
120
2015 2014 2013 2012
Years
EPS
PAY OUT RATIO
EPS VS Pay out
Ratio

15. Abnormal Return (Volume):
No
AD-30
TO AD-1
AD-10
TO AD-1 AD
AD+1 TO
ED-1 ED
ED+1
TO
ED+10
ED+1 TO
4-8-2015
1 CUM. AB 396700.4 312746 2610990 400616.9 239855 430688.8 373880.7
2 DAYS 30.00 10.00 1.00 34.00 1.00 10.00 18.00
3
AVE.DAILY AB
(1/2) 13223.34 31274.6 2610990 11782.85 239855 43068.88 20771.15
4 AVE.VOL. 424423.7
5 AB/AVE (3/4) 0.03 0.07 6.15 0.03 0.56 0.1 0.04
0
1
2
3
4
5
6
7
AD-30
TO
AD-1
AD-10
TO
AD-1
AD AD+1
TO
ED-1
ED ED+1
TO
ED+1
0
ED+1
TO 4-
8-
2015
Series1 0.03 0.07 6.15 0.03 0.56 0.1 0.04
RatioofABVol.toAvgVol.
Bajaj Auto Volume Effect

16. COMPANY – 3

17. Name: Zee Entertainment Enterprises Ltd.
Type Public company
Industry Mass media
Founded October 1992
Headquarters Mumbai, Maharashtra, India
Key people Subhash Chandra (Chairman), Punit Goenka (MD &
CEO)
Products Broadcasting, publishing, cable, movie production
Net Profit Increase 831.80 cr.(2014-15)
Employees 1,826+ (April 2015)
Website www.zeetelevision.com
Company profile

18. Year
ended as
at31st
March
Total Paid
up Capital
(In Cr)
Net Profit
after
Depreciation
and Tax(In
Cr)
Dividend
Paid/
Proposed
(In Cr)
Retain earning
carried forward
to Balance Sheet
(In Cr)
Total
Reserves &
Surplus
(In Cr)
DPS(D/N) EPS
(In RS)
PAY OUT
RATIO
2015 2,115.20 831.80 216.10 494.6 2,472.30 2.25
7.40
30.4
2014 2,113.00 772.30 192.10 571.6 1,855.10 2.0 7.95 25.15
2013 95.40 640.70 191.90 448.8 3,257.40 2.0 6.72 29.76
2012 95.90 489.70 143.80 345.9 2,899.20 1.5 5.11 29.35
0
500
1000
1500
2000
2500
3000
3500
2015 2014 2013 2012
InCrore
Year
Net Profit
Dividend Paid
Reserves & Surplus
0
5
10
15
20
25
30
35
2015 2014 2013 2012
Years
EPS
PAY OUT RATIO
Graphical
Analysis
EPS VS Pay out
Ratio

19. Abnormal Return (Volume):
No
AD-30 TO
AD-1
AD-10 TO
AD-1 AD
AD+1 TO
ED-1 ED
ED+1 TO
ED+10
ED+1 TO 4-
8-2015
1 CUM. AB 3065420 5300220 11,374,300 2308497 1,249,000 2585690 2310339
2 DAYS 30.00 10.00 1.00 53.00 1.00 10.00 18.00
3
AVE.DAILY AB
(1/2) 102180.66 5,300,22 11,374,300 67897 1,249,000 2585690 128352.16
4 AVE.VOL. 2584570
5 AB/AVE (3/4) 0.04 0.20 4.4 0.03 0.5 1 0.05
0
1
2
3
4
5
AD-30
TO AD-
1
AD-10
TO AD-
1
AD AD+1
TO ED-
1
ED ED+1
TO
ED+10
ED+1
TO 4-8-
2015
Series1 0.04 0.2 4.4 0.03 0.5 1 0.05
RatioofABVol.toAvgVol.
Zee Entertainment
Volume Effect

20. Company -4

21. Company profile
Name: Sesa Sterlite a Vedanta company
Type Public company
Traded as BSE: 500295
NSE: SESAGOA ,NYSE: SSLTs
Industry Mining
Founded 1954
Headquarters Goa, Karnataka, Odisha - India
Key people Anil Agarwal (Chairman Emiritus) Navin Agarwal(Chairman)
Tom Albanese (Chief Executive Officer) D.D. Jalan(CFO)
Products Zinc Lead Oil and Gas Iron ore Aluminum Copper Gold and
Silver
Net Profit Increase 1,927.20 cr. (2014-15)
Employees Approx. 5,100 (April 2015)
Website www.sesasterlite.com

22. Year
ended as
at 31st
March
Total
Paid up
Capital
(In Cr)
Net Profit
after
Depreciation
and Tax
(In Cr)
Dividend
Paid/
Proposed
(In Cr)
Retain
earning
carried
forward to
Balance Sheet
(In Cr)
Total
Reserves &
Surplus
(In Cr)
DPS(D/N) EPS
(In RS)
PAY OUT
RATIO
2015 296.50 1,927.20 1,215.60 711.6 33,761.37 4.1 6.50 63.07
2014 296.50 1,076.09 963.58 112.51 33,382.32 3.25 3.63 89.53
2013 86.91 120.77 8.69 112.08 12,936.88 0.10 1.39 7.19
2012 86.91 1,679.94 347.64 1332.3 12,826.28 4 19.33 20.69
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
2015 2014 2013 2012
Incrore
Year
Net Profit
Dividend Paid
Reserves & Surplus
0
10
20
30
40
50
60
70
80
90
2015 2014 2013 2012
Years
EPS
PAY OUT RATIO
Graphical Analysis EPS VS Pay out
Ratio

23. Abnormal Return (Volume):
No
AD-30
TO AD-1
AD-10 TO
AD-1 AD
AD+1 TO
ED-1 ED
ED+1 TO
ED+10
ED+1 TO 4-
8-2015
1 CUM. AB 451177 4691064 6810716 4960929 5858932 7937071 6567488
2 DAYS 30.00 10.00 1.00 46.00 1.00 10.00 21.00
3
AVE.DAILYAB
(1/2) 15039.23 469106.4 6810716 107846.28 5858932 793707.1 312737.52
4 AVE.VOL. 2052584
5 AB/AVE (3/4) 0.007 0.22 3.32 0.053 2.35 0.4 0.15
0
0.5
1
1.5
2
2.5
3
3.5
AD-30
TO
AD-1
AD-10
TO
AD-1
AD AD+1
TO
ED-1
ED ED+1
TO
ED+10
ED+1
TO 4-
8-2015
Series1 0.007 0.22 3.32 0.053 2.35 0.4 0.15
RatioofABVol.toAvgVol
Sesa Sterlite volume effect

24. Company -5

25. Company profile
Name: State Bank of India
Type Public company
Traded as BSE: 500112
NSE: SBIN,
Industry Banking, Financial Services
Founded 27 January 1921, Imperial Bank of India
1 July 1955, State Bank of India
2 June 1956, nationalization
Headquarters Mumbai, Maharashtra, India
Key people Arundhati Bhattacharya (Chairperson)
Products consumer banking, corporate banking, finance and insurance,
investment banking, mortgage loans, private banking, private equity,
savings, Securities, asset management, wealth management,
Credit cards,
Net ProfitIncrease 13,101.57 cr (2014-15)
Employees 222,033 + (April 2015)
Website www.sbi.co.in

26. Year ended
as at 31st
March
Total
Paid up
Capital
(In Cr)
Net Profit
after
Depreciation
and Tax
(In Cr)
Dividend
Paid/
Proposed
(In Cr)
Retain
earning
carried
forward to
Balance Sheet
(In Cr)
Total
Reserves &
Surplus
(In Cr)
DPS(D/N) EPS
(In RS)
PAY OUT
RATIO
2015 746.57 13,101.57 2,557.28 10544.29 127,691.65 3.5 17.55 19.94
2014 746.57 10,891.17 2,239.71 8651.46 117,535.68 30 145.88 20.56
2013 684.03 14,104.98 2,838.74 11266.24 98,199.65 41.5 206.20 20.12
2012 671.04 11,707.29 2,348.66 9358.63 83,280.16 35 174.46 20.06
0.00
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
140,000.00
2015 2014 2013 2012
InCrore
Years
Net Profit
Dividend Paid
Reserves & Surplus
0
50
100
150
200
250
2015 2014 2013 2012
Years
EPS
PAY OUT RATIO
Graphical Analysis EPS VS Pay out
Ratio

27. Abnormal Return (Volume)
No
AD-30 TO
AD-1
AD-10 TO
AD-1 AD
AD+1 TO
ED-1 ED
ED+1 TO
ED+10
ED+1 TO
ED+30
1 CUM. AB 1384220 1849270 9,541,200 1889900 1,601,900 1821950 13573173
2 DAYS 30.00 10.00 1.00 3.00 1.00 10.00 30.00
3 AVE.DAILY AB (1/2) 46140.66 184927 9,541,200 629966.66 1,601,900 1821950 452439.1
4 AVE.VOL. 2039789
5 AB/AVE (3/4) 0.02 0.1 4.7 0.31 0.8 0.9 0.22
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
AD-30
TO
AD-1
AD-10
TO
AD-1
AD AD+1
TO
ED-1
ED ED+1
TO
ED+10
ED+1
TO
ED+30
Series1 0.02 0.1 4.7 0.31 0.8 0.9 0.22
RatioofABVol.toAvgVol.
State Bank of india volume effect

28. Findings
There is no fixed pattern in the distribution of Dividend of the
Industries. But pattern could be worked out for different
Companies.
 For Shareholders: From the Shareholders’ point of view the
company which is giving more Dividend is good for the
shareholders’. So companies should try to increase their DPS
(dividend per share) to woo the shareholders’ to invest more
and more in them.
 For Organizations: The companies which have higher EPS
(earning per share) is good because higher the EPS higher is
the PAT. So companies should try to increase their PAT so
that their EPS will increase.
 Regarding Payout Ratio: From the analysis of all the five
companies we found that their Payout Ratios are in the range
of 19 -35 or more which is considered a very good ratio. The
companies are distributed their almost 1/3rd as their Dividend

29. CONCLUSIONS
 The information about the corporate dividend policies
brings abnormality in the market and market does
perform efficiently.
 The movements in stock prices and trading volume are
influenced by the flow of new information into the market.
 The dividend effect are reflected into the market price of
the company within the time period of few days before
the announce date to few days after the ex-dividend date.
 Insider information plays vital role in the fluctuations of
stock price and trading volume of and company which
has declared dividend.
 We can conclude from this project that there is linear
relationship between dividend decision and market price
of the company for a limited duration. Thereafter the
markets start behaving efficiently and absorb all the

30. Future Projection of Stock

31. Years Total Paid
up Capital
(In Cr)
% change
of Paid up
Capital
Total
Income
(In Cr)
%
change
of
income
Total
Expenditur
e
(In Cr)
% change
Of
expenditur
e
Net profit
( In Cr)
%change
of net
profit
Reserve
surplus
( In Cr)
% change
of Reserve
surplus
2011 295.72 29,769.2
7
20,511.01
7,569.99 19,283.77
2012 295.72 0 41,543.4
6
39.55
27,472.56
33.94 10,975.98 44.99 24,560.91 27.36
2013 295.72 0 50,656.5
3
21.93
34,119.87
24.19 12,786.34 16.49 32,266.53 31.37
2014 195.87 -33.76 67,787.7
1
33.81
43,139.28
26.43 18,474.92 44.48 43,856.01 35.91
2015 195.87 0 78,573.0
2
15.91
52,549.71
21.81 19,256.96 4.23 45,220.57 3.11
•In FY-2015 Reduced the corporate tax so it is easy for it company to growth in the
market and extended business.
•TCS want to extend their business all over the world so Announces Global Strategic
Partnership with FICO a leading analytics software company, to enable clients to
purchase and implement FICO solutions through TCS.
•Also Bank of Bhutan selects TCS for Core Banking to power next generation
banking services

32. Expected TCS Growth
2012 2013 2014 2015 2016 2017
%change of net profit 44.99 16.49 44.48 4.23 6.74 15.67
% change of Reserve surplus 27.36 31.37 35.91 3.11 5.43 9.64
0
5
10
15
20
25
30
35
40
45
50
Changein%
TCS Future Expection

33. Bajaj Auto Limited

34. Years Total Paid
up Capital
(In Cr)
% change
of Paid up
Capital
Income
(In Cr)
%
change
of
income
Expenditur
e
(In Cr)
% change
Of
expenditur
e
Net profit
(In Cr)
%change
of net
profit
Reserve
surplus
(In Cr)
% change
of Reserve
surplus
2011
289.37 17,782.08 13,309.80
3,339.73 4,620.85
2012
289.37
0
20,097.17
0.13
15,903.14
19.48
3,004.05
-10.05
5,751.70
24.47
2013
289.37
0
20,768.74
0.03
16,338.00
2.73
3,043.57
1.31
7,612.58
32.35
2014
289.37
0
20,874.82
0.005
16,062.67
-1.66 3,243.32 6.5
9,318.65
22.41
2015
289.37
0
21,911.70
0.05
17,553.02
9.27 2,813.74 -13.24
10,402.78
11.63
•company has decided to introduce new bike like Bajaj Platina 100 ES, Bajaj CT
100 (Re introduced), Pulsar RS 200, Pulsar AS200 & AS150, Pulsar NS150 to
expand their business. Bajaj CT 100 has own reputation is a economic bike.
•The automobile sector has been chosen as a top priority area under the “ Make in
India” programme. It targets to make India the world’s third largest market for
automobiles by 2016 .so this effect will definitely affect to the Company to expand
the business in domestic and international.
•Central Bank of India signed Memorandum of Understanding (MOU) with Bajaj
Auto Limited to provide finance in less interest for customers who intend to buy the
Bajaj's Auto Rickshaws .

35. • Andhra Bank and Bajaj Auto have signed a memorandum of understanding
(MoU) for a strategic tie-up for financing of Bajaj 2-wheelers being purchased by
rural farmers under a scheme called `Bajaj Kisan Chakra'.
•Maharashtra Govt. nnouncements by auto majors, all aimed at expanding their
existing plants in the state., Bajaj Auto also invest a Rs 4,000 crore to expand
their business.it will definitely grow in near future.

36. Expected Bajaj Auto.Growth:
2012 2013 2014 2015 2016 2017
%change of net profit -10.05 1.31 6.5 -13.24 7.67 9.75
% change of Reserve surplus 24.47 32.35 22.41 11.63 13.45 10.23
-20
-10
0
10
20
30
40
Changein%
Bajaj Auto Future Expection

37. State Bank of
India(SBI)

38. Year Total Paid
up Capital
(In Cr)
% change
of Paid up
Capital
Total
Income
(In Cr)
%
change
of
income
Total
Expenditur
e
(In Cr)
% change
Of
expenditur
e
Net profit
(In Cr)
%change
of net
profit
Reserve
surplus
(In Cr)
% change
of Reserve
surplus
2011 635.00 96,324.7 88,954.45 7,370.35 64,351.04
2012
671.04
5.67
120,872.90
25.48
109,165.61
22.72 11,707.29 58.84 83,280.16 29.41
2013
684.03
1.93
135,691.94
12.26
121,586.96
11.37 14,104.98 20.48 98,199.65 17.91
2014
746.57
9.14
154,903.72
14.15
144,012.55
18.44 10,891.17 -22.78 117,535.68 19.69
2015 746.57 0
174,972.96
12.95
161,871.39
12.4 13,101.57 20.29 127,691.65 8.64
•Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by
Government, SBI held 11,300 camps and opened over 30 lakhs accounts by
September, which included 21.16 lakh accounts in rural areas and 8.8 lakh accounts
in urban areas.
• SBI agreed with 26 countries in worldwide to provide finance for development of IT.
•SBI has signed a deal with Amazon, according to which, they are going to develop
high end payment and commerce solutions for their common customers and small
scale businesses.
•SBI is all set to sign such MoUs with leading B2B ecommerce platform Snapdeal.
from this ecommerce company will get more profit from it because Ecommerce has
grown up day to day.
•SBI has also confirmed their partnership with Paypal.

39. Expected SBI Growth
2012 2013 2014 2015 2016 2017
%change of net profit 58.84 20.48 -22.78 20.29 15.38 21.87
% change of Reserve surplus 29.41 17.91 19.69 8.64 10.64 12.12
-30
-20
-10
0
10
20
30
40
50
60
70
changein%
SBI Future Expection

40. Suggestions and
Recommendations
 The dividend news in the market creates abnormality in the
return and volume of the script, so that investor should not
treat that markets are always efficient.
 Investors should behave rationally while taking their
decision regarding investment in any script. They should
wait for the abnormality in the script to be removed before
investing in it.
 For long term investor, dividend decision of a company
should not be a major influencing factor in their investment
decision.
 Investors should consider the fundamentals of the company
before investing in it and should consider the actual
performance of the company over the period of time.
 A huge positive abnormal return before the announce date
of dividend indicates the sins of leakage of any insider
information. So the investor must check room for such
insider information before investing in that company. This
will help them to protect themselves from future losses