In the last lecture, we saw how to calculate the GS code for a single stock. Now, we will apply that knowledge to find the GS code for a mutual fund. We have been studying the mutual fund auditor beta sonlife pure value fund, we have seen that this fund has got four value stocks and six growth stocks for the value stocks we have determined the F score. Now for the growth stocks, let us determine the G score. Now, I have separated the growth stocks they are ICICI Bank Limited SRF limited, Petro net LNG limited dabber India Limited the PUC nitrite limited and Zee entertainment limited. Now we see that the growth stocks have 16.63% of the total holdings of the fund.

Now 16.63% of 27.48% which is the holding up the top 10 stocks in this fund comes out to a contribution of 60 points. Five 2% So, the weight of the growth stocks in this fund is 16.52%. Further, we have determined the G score for dubber, India Limited, the G score for our India Limited was four. Now, our Indian imitates allocation is 2.53%. So the contribution of India Limited towards a BSL pure value font is 2.53% into four that is 0.1012. Now, let us find the contribution of the other five growth stocks.

We start with ICC Bank Limited, we consider the following 10 peer companies for ICS a Bank Limited there are a small finance Bank Limited munden Bank Limited RBL Bank Limited idfc First Bank Limited Federal Bank limited access Bank Limited yes Bank Limited kotak Mahindra Bank Limited indocin Bank Limited and city Union Bank Limited you will notice that there are some significant results like HDFC Bank Limited and SBI State Bank of India because they are not in the same category as icac Bank. However, when you are analyzing it will be better if you include those banks as well. Now, I studied the annual reports of all these 11 companies from 2012 onwards to arrive at these numbers for these companies. The ICC bank numbers are provided in one column and the industry media is fraud in one column. Now, we have studied the z score formulation in the previous lecture.

Now, from that formulation, we find the individual scores of each parameter as is given here. So, the G score for ICC bank works out to six. It would be nice if you could study these annual reports and work out these numbers for yourself. So I put the G score figures for ICS a bank on the ABS pure value fund chart. So we see that ICS Bank has an allocation of 3.9% in the ABS LP value fund. So multiplying 3.90% by six we get a contribution of 0.234.

From ICC bank for ABS LP a value fund. Next we take the case of SRF limited SRF Limited is a company in the textile industry. So we have taken the top 10 years for this company. They are grasim India Limited sila forms limited. Lakshmi machine works limited what the one textile limited well span India Limited ecns clothing limited Raymond limited karma Holdings Limited Trident limited and Lux India Limited. Studying the annual reports of all these 11 companies for the financial year 2012 13 is the financial year 2017 18 I have gathered these numbers.

Now from these numbers we can apply the formula for G score and we arrive at a G score of four for SRF limited Now, I put the G score of SRF limited on the ADSL fair value fund chart. So, we see that SRF limited as allocation of 3.19%. So, the contribution is 3.19% into four, which is equal to 0.1276. Next we take the stock of petrol LNG limited now, this is a stock in the petroleum industry. Now, I have not considered heavyweights like Indian Oil Corporation Bharat petroleum limited etc. However, it will be a good idea if those stocks are also considered.

I have considered only six peer companies that have done virtually Petro Chem limited Agarwal Corporation Limited The CW limited Savita oil tech limited, Gujarat state petrol emitted and Goa carbons limited. Studying the annual reports from the financial year 2012 13 till the financial year 2017 18. I have gathered these figures. Now we have the figures of petroleum LNG limited and the industry mean From that, we get that the petrol rate LNG limited gets a score of two. Now I plan the G score of petroleum LNG on the ABS LPL value fund chart. So we see that returning LNG has an allocation of 2.68%.

So 2.68% into g score of two gives a contribution of 0.0536. Next we take the stock of Deepak nitride limited. Now this company is a small cap company, it was rather difficult to find all the information about this company. Nevertheless, we will take six fear companies for this company they wish to chemicals limited we did light industry limited boosters clo chemicals limited, three dial Sema limited Tata chemicals limited and Aarthi Industries Limited. I found the annual report of the park I tried limited and from that I could figure out all the values regarding awning returns of asset cash flow returns of asset RND intensity capital expense, intensity and advertising intensity However, I could not find the quarterly reports of the bug nitride limited from 2012 13 year onwards. So I did the analyst reports on this company and from there I figure the value is for stability of earning and sales growth variability.

The scores are as given here, the port nitride limited scouser g score of three. planting the G score of Deepak nitride limited on the ABS lpo value fund, we find that the peptide limited has the allocation of 2.33%. So 2.33% into three gives the value of 0.0699. So the pork nitride limited contribution towards ABS or pure value fund is 0.0699. The next stock we need to study is z entertainment enterprises limited so for this company in the entertainment industry, we have found the top 10 pr companies so you We'll consider these top 10 pr companies to analyze the stock of z entertainment enterprises limited. Studying the annual report of 2017 18 financial year, I gathered these figures for the entertainment limited and the PR companies.

So, we have the figures as shown here. For the stability of earnings and sales growth variability I use analyst reports as are available on the internet. However, I would encourage you to find these values for yourself. Now from the analysis we find that the entertainment enterprises limited gets a G score of four. I have planted the G score for G entertainment enterprises limited on the chart of a BSL pure value fund. We see that V entertainment enterprises limited has an allocation of 2% in this particular fund, so the contribution is 2% into four that is 0.0800.

So we have found the G score of all the six Road stocks in the ABS LP value fund that are in its top 10 contributors. Now, just like we had done for F score, we add up all the contributions to come to a figure of 0.6663. So for ABS a pure value Fund, the G score works out to 0.6663. At the beginning of this lecture, we are triggered that the weight of the growth stocks in a BSL pure value font is 60.52%. Now, we multiply 60.52% with a Z score of 0.663 to arrive at a number 0.4032. We will next see how to make use of this number 0.4032.

Thank you for listening. See you in the next lecture.