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INTRODUCTION TO INDIAINFOLINE

IndiaInfoline founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an
independent business research and information provider. We gradually evolved into a one-stop
financial services solutions provider. Our strong management team comprises competent and
dedicated professionals.


We are a pan-India financial services organization across 1,361 business locations and a presence
in 428 cities. Our global footprint extends across geographies with offices in New York,
Singapore and Dubai. We are listed on the Bombay Stock Exchange (BSE) and the National
Stock Exchange (NSE).


We offer a wide range of services and products comprising broking (retail and institutional
equities and commodities), wealth management, credit and finance, insurance, asset management
and investment banking.


We are registered with the BSE and the NSE for securities trading, MCX, NCDEX and DGCX
for commodities trading, CDSL and NSDL as depository participants. We are registered as a
Category I merchant banker and are a SEBI registered portfolio manager. We also received the
FII license in IIFL Inc. IIFL Securities Pte Ltd received approval from the Monetary Authority of
Singapore to carry out corporate advisory and dealing in securities operations. Two subsidiaries
India Infoline Investment Services and Moneyline Credit Limited are registered with RBI as
non-deposit taking non-banking financial services companies. India infoline Housing Finance
Ltd, the housing finance arm, is registered with the National Housing Bank.






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HISTROY OF INDIAINFOLINE

The IndiaInfoline Group was originally incorporated on October 18, 1995 as Probity
Research and Services Private Limited at Mumbai under the Companies Act, 1956 with
Registration No. 11 93797. The IndiaInfoline Group commenced its operations as an
independent provider of information, analysis and research covering Indian businesses, financial
markets and economy, to institutional customers. We became a public limited company on April
28, 2000 and the name of the Company was changed to Probity Research and Services Limited.
The name of the Company was changed to India Infoline.com Limited on May 23, 2000 and later
to India Infoline Limited on March 23, 2001.
In 1999, The IndiaInfoline Group identified the potential of the Internet to cater to a mass
retail segment and transformed our business model from providing information services to
institutional customers to retail customers. Hence we launched our Internet portal,
www.indiainfoline.com in May 1999 and started providing news and market information,
independent research, interviews with business leaders and other specialized features.
In May 2000, the name of our Company was changed to India Infoline.com Limited to
reflect the transformation of our business. Over a period of time, we have emerged as one of the
leading business and financial information services provider in India.
In the year 2000, The India Infoline Group leveraged its position as a provider of
financial information and analysis by diversifying into transactional services, primarily for online
trading in shares and securities and online as well as offline distribution of personal financial
products, like mutual funds and RBI Bonds. These activities were carried on by our wholly
owned subsidiaries.
The India Infoline Groups broking services was launched under the brand name of
5paisa.com through our subsidiary, India Infoline Securities Private Limited and
www.5paisa.com, the e-broking portal, was launched for online trading in July 2000. It
combined competitive brokerage rates and research, supported by Internet technology Besides
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nvestment advice from an experienced team of research analysts, we also offer real time
stock quotes, market news and price charts with multiple tools for technical analysis.
Acquisition of Agri Marketing Services Limited ("Agri")
In March 2000, The IndiaInfoline Group acquired 100% of the equity shares of Agri
Marketing Services Limited, from their owners in exchange for the issuance of 508,482 of our
equity shares. Agri was a direct selling agent of personal financial products including mutual
funds, fixed deposits, corporate bonds and post-office instruments. At the time of our acquisition,
Agri operated 32 branches in South and West India serving more than 30,000 customers with a
staff of, approximately 180 employees. After the acquisition, we changed the company name to
India Infoline.com Distribution Company Limited.
The India Infoline group, comprising the holding company, India Infoline Ltd (NSE:
INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian
financial services space. India Infoline offers the entire gamut of financial services covering
investment products ranging from Equities and derivatives, Commodities, Portfolio Management
Services, Mutual Funds, Life Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds
and other small savings instruments. It owns and manages the website, www.indiinfoline.com,
which is one of Indias leading online destinations for personal finance, stock markets, economy
and business.









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VISION

Our vision is to be the most respected company in the financial services space.

MISSION

To become a full-fledged financial services company known for its
quality of advice, personalized services and cutting edge technology










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MILESTONES ACHIEVED

1995

Incorporated as an equity research and consulting firm with a client base that included leading
FIIs, banks, consulting firms and corporates.

1999

Restructured the business model to embrace the internet; launched archives.indiainfoline.com
mobilised capital from reputed private equity investors.

2000

Commenced the distribution of personal financial products; launched online equity trading;
entered life insurance distribution as a corporate agent. Acknowledged by Forbes as Best of the
Web and ...must read for investors.

2004

Acquired commodities broking license; launched Portfolio Management Service.

2005

Listed on the Indian stock markets.

2006

Acquired membership of DGCX; launched investment banking services.

2007

Launched a proprietary trading platform; inducted an institutional equities team; formed a
Singapore subsidiary; raised over USD 300 mn in the group; launched consumer finance
business under the Moneyline brand.

2008

Launched wealth management services under the IIFL Wealth brand; set up India Infoline
Private Equity fund; received the Insurance broking license from IRDA; received the venture
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capital license; received inprinciple approval to sponsor a mutual fund; received Best broker-
India award from FinanceAsia; Most Improved Brokerage- India award from Asiamoney.



2009

Received registration for a housing finance company from the National Housing Bank; received
Fastest growing Equity Broking House - Large firms in India by Dun & Bradstreet.

MARKET SHARES OF COMPANY

y Retail broking:
IndiaInfoline has around 3 lakh customers. It has a tie-up with Bank of Baroda for
e-broking.
y Institutional broking:
IndiaInfoline has roped in Bharat Parajia, director of sales at CLSA in Singapore,
H Nemkumar, CLSA's country head for India, Aniruddha Dange, CLSA's head of
research in India, and Vasudev Jagannath, CLSA's head of sales in India. While Parajia
will join as head of institutional sales at India Infoline, Dange will be head of research
and Nemkumar head of investment banking.
Each one of them is bringing in more than 10 years of experience with a top
institutional brokerage in Asia. The CLSA foursome will also pick up stakes in India
Infoline through the preferential allotment route. Their collective stake would add up to
around 15%. Parajia already holds a 2.88% stake in India Infoline. He will subscribe to
25 lakh equity warrants at Rs 440 each.Nemkumar will pick up another 25 lakh, while
Jagannath and Aniruddha Dange will subscribe to 20 lakh warrants each. The preferential
allotment includes the four men buying 90 lakh equity warrants at a price of Rs 440 each,
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of which 10% will be paid up front as their sign-on bonus. The remaining will be payable
at the end of eighteen months when the warrants will be convertible into shares.That is,
all these guys will have to cough up about Rs 360 crore to convert their warrants into
shares. Currently, the company's institutional equities team has 35 people, including
research analysts and dealers.
y Consumer Finance:
During the quarter, it managed a book size of Rs 25 crore and has suffered a loss of Rs
5.5 crore. It expects to break even in 2-3 quarters. NIM of 6-8% on personal loans and 3-
4% on home refinancing. It is looking at a Rs 200 crore private-equity funding for
its consumer finance subsidiary. It intends to leverage its extensive branch network to
expand its consumer finance division to tier-II and tier-III cities in the coming quarters.
IndiaInfoline is going slow as it has just started this business with a robust risk
management system. The company has roped in experts from Citi Financial and other
banks.
Ticker: 532636
Exchanges: BOM
2009 Sales: 9,630,900,000
Major
Industry:
Financial
Sub
Industry:
Securities
Brokerage
Country: INDIA
Employees: 14105

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CHALLENGES FACES BY INDIAINFOLINE

Category related - the market is skewed primarily to the metros with Mumbai, Ahmedabad, and
New Delhi accounting for major bulk of the trading.
Competition related - due to high brand proliferation, the market from a consumer standpoint has
become commoditized given product parity in terms of offerings.
Brand related - challenge being to maintain high decibel and impactful communication on a
sustained basis.

Key executives
S.No Name Designation
1 Mr. Nirmal Jain Chairman and Managing director
2 Mr. A K Purwar Director
3 Mr. R Venkataraman Executive Director
4 Mr. Nilesh Vikamsey Independent Director
5 Mr. Kranti Sinha Independent Director
6 Mr. Sat Pal Khattar Non Executive Director


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MARKETING STRATEGY OF INDIA
INFOLINE

Market Positioning:
Market positioning statements of India Infoline are At India Infoline we give you single
window service and We also ensure your comfort. So, India Infoline focus on the consumers
who prefer almost all investment activities at same place by providing number of various
financial services. At India Infoline a person can purchase or sell shares, debentures etc. and at
the same place also demat it. India Infoline also provides other investment option to the same
person at same place like Mutual Fund, Insurance, Fixed Deposit, and Bonds etc. and help the
person in designing his portfolio. By this way India Infoline provides comfort to its customers.

Target Market:
India Infoline uses demographic segmentation strategy and segment people based on their
occupation. India Infoline uses selective specialization strategy for market targeting. Target
person for the India Infoline Stock Broking and India Infoline Investment Service are persons
who can work as sub-broker for the companies. Companies focus on Advisors of Insurance and
post office, Tax consultants and CAs for making sub-broker
Marketing channel System:
India Infoline uses one level marketing channel for investment product distribution. Sub-
brokers work as intermediary between consumer and company. Company has both forward and
backward flow of activity through channel. Company distributes stationery, brokerage, and
information forward to its sub-broker. The sub-brokers send filled forms, queries, amount of
investment etc. back to the company.
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Training Channel Members:
India Infoline provides training to the sub-brokers because they will be viewed as the
company by the investors. The executives of India Infoline explain various new schemes of
investment to the sub-brokers with its objective, risk factors and expected return. Company also
periodically arrange seminar to guide sub-brokers.
Advertising and Promotion:
The objective of advertising of India Infoline is to create awareness about services of
India Infoline among investors and sub-brokers.
India Infoline also publishes its weekly Stock Market Newsletter Market Mantra.











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OBJECTIVES OF THE PROJECT

MAIN OBJECTIVE :-
y To know how much potentlully hus Indlu Infollne LTD of De-mut und
Trudlng uccount openlng ln Mumbul.
y To know percentuge of people lnvest ln mutuul fund, lnsurunce, equlty
und other flnunclul products und servlces.
y To know future prospects of thelr lnvestment ln the flnunclul products
und servlces.


OTHER OBJECTIVES :-
To know the current murket condltlon of De-mut und Trudlng uccount.
&ompetltlve unulysls wlth other compuny ln Kolkutu for thls purtlculur
segment.









DEMAT ACCOUNT

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Definition:
De-mat account is a safe and convenient means of holding securities just
like a bank account is for funds. Today, practically 99.9% settlement (of
shares) takes place on De-mat mode only. Thus, it is advisable to have a
Beneficiary Owner (BO) account to trade at the exchanges.

Bank Account Vs De-mat Account

S.
No.
Basis Of
Differentiation
Bank Account De-mat Account
1.
Form of
Holdings/Deposits
Funds Securities
2. Used for Safekeeping of money Safekeeping of shares
3. Facilitates
Transfer of money (without
actually handling money)
Transfer of shares (without
actually handling shares)
4. Where to open A bank of choice
A DP of choice (can be a
bank)
5.
Requirement of
PAN Number
Not Mandatory
Mandatory (effective from
April 01, 2006)
6.
Interest accrual on
holdings
Interest income is subject to
the applicable rate of interest
No interest accruals on
securities held in demat
account
7.
Minimum balance
requirement
AQB* maintenance is
specified for certain bank
accounts
No such requirement
8.
Either or Survivor
facility
Available Not available






AQB - Average Quarterly Balance

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S.
No.
BASIS OF SIMILARITY PARTICULARS
1.
Security and
Convenience
Both are very safe and convenient means of holding
deposits/securities
2. Number of accounts
No legal barrier on the number of bank or demat
accounts that can be opened
3.
Transfer of deposits
(funds or securities)
Funds/securities are transferred only at the instruction
of the account holder
4.
Physical transfer of
money/securities
Physical transfer of money/securities is not involved
5. Nomination Facility Available


Benefits Of De-mat Account:
1. A safe and convenient way of holding securities (equity and debt
instruments both).
2. Transactions involving physical securities are costlier than those
involving dematerialized securities (just like the transactions through
a bank teller are costlier than ATM transactions). Therefore, charges
applicable to an investor are lesser for each transaction.
3. Securities can be transferred at an instruction immediately.
4. Increased liquidity, as securities can be sold at any time during the
trading hours (between 9:55 AM to 3:30 PM on all working days), and
payment can be received in a very short period of time.
5. No stamp duty charges.
6. Risks like forgery, thefts, bad delivery, delays in transfer etc,
associated with physical certificates, are eliminated.
7. Pledging of securities in a short period of time.
8. Reduced paper work and transaction cost.
9. Odd-lot shares can also be traded (can be even 1 share).
10. Nomination facility available.
11. Any change in address or bank account details can be electronically
intimated to all companies in which investor holds any securities,
without having to inform each of them separately.
12. Securities are transferred by the DP itself, so no need to correspond
with the companies.
13. Shares arising out of bonus, split, consolidation, merger etc. are
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automatically credited into the De-mat account of the investor.
14. Shares allotted in public issues are directly credited into De-mat
account of the applicants in quick time.
Opening a De-mat Account
To start dealing in securities in electronic form, one needs to
open a De-mat account with a DP of his choice. An investor
already having shares in physical form should ensure that he gets
the account opened in the same set of names as appearing on the
share certificate; otherwise a new account can be opened in any
desired pattern by the investor.

Getting started
1. Choose a DP
2. Fill up an account opening form
provided by DP, and sign an
agreement with DP in a standard
format prescribed by the depository.
3. DP provides the investor with a copy
of the agreement and schedule of
charges for his future reference.
4. DP opens the account and provides
the investor with a unique account
number, also known as Beneficiary
Owner Identification Number (BO
ID).
Documents to be attached
y Passport size photographs
y Proof of residence (POR) - Any one
of Photo Ration Card with DOB /
Photo Driving License with DOB /
Passport copy / Electricity bill /
Telephone bill
y Proof of identity (POI) - Any one of
Passport copy / Photo Driving
License with DOB / Voters ID Card /
PAN Card / Photo Ration Card with
DOB
y PAN card



Note:
y The agreement required to be signed by the investor details
the rights and duties of the investor and DP.
y DP may revise the charges by giving a 30 days prior notice.
SEBI has rationalized the cost structure for inaction by
removing account opening charges, transaction charges for
credit of securities and custody charges, effective from January 28,
Page | 15

2005.

Maximum Number of holders in a De-mat Account
A maximum of three persons are allowed to open a joint De-mat
account in their names.



THINGS INVESTORS SHOULD KNOW ABOUT ACCOUNT OPENING
AND DEMATERIALISATION


Providing the bank account details at the time of account opening
It is mandatory for an investor to provide his bank account details at the
time of opening a De-mat account. This is done to safeguard investor's own
interests. There are two major reasons for this:
1. The interest and dividend warrants can't be en-cashed by any
unauthorized person, as the bank account number is mentioned on it.
2. It is convenient and time saving, as dividends and interests given by
the companies can be directly credited to the investor's bank account
(through ECS facility, wherever available).
Change in bank account details
It is possible for an investor to make changes to the details of his bank
account. The investor must inform any change in his bank account details
to his DP. This enables him to receive the cash corporate benefits (such as
dividends, interests) directly into his account in time and discourages any
unauthorized use by any second party.

Change in the address of investor as provided to the DP
Any change in your address should be immediately informed to DP. This
enables DP to make necessary changes in the records and informing the
concerned companies about the same.


Opening multiple accounts
An investor is allowed to open more than one account with existing DP or
Page | 16

with different DPs.

Minimum balance of securities required in De-mat account
There is no stipulated minimum balance of securities to be kept in a De-mat
account.
Account opening and ownership pattern of securities
One must make sure to open a De-mat account in the same ownership
pattern in which the physical securities are held. For example: If you have
two share certificates, one in your individual name (say 'X') and the other
held jointly with some other individual (say 'XY'), then in such a case you
will have to open two different accounts in respective ownership patterns
(one in your name i.e. 'X' and the other account in the name of 'XY').

Same combination of names on certificates but different sequence of
names on the certificates or De-mat account
Regulations provide that the client receives a contract note indicating
details like order number, trade number, time, price, brokerage, etc. within
24 hour of the trade. In case of any doubts about the details of the contract
note, you (investor) can avail the facility provided by NSE, wherein you can
verify the trades on your website
www.nseindia.com/content/equities/eq_trdverify.htm. The Exchange
generates and maintains an audit trail of orders/trades for a number of
years, and you can counter check details of order/trade with the Exchange.

Holding a joint account on "Either or Survivor" basis like a bank
account
No investor can open a De-mat account on "E or S" basis like a bank
account.

Allowing somebody else to operate your De-mat account
It is possible for an account holder (Beneficiary Owner) to authorize some
other person to operate the De-mat account on his behalf by executing a
power of attorney. After submitting the power of attorney to the DP, that
person can operate the account on behalf of the beneficiary owner (BO).


Addition/deletion of the names of the account holders after opening
the account
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It is not possible to make changes in the names of the account holders of a
BO account. A new account has to be opened in a desired
holding/ownership pattern.

Closing a demat account and transfer of securities to another account
with same or different DP
An investor, if he wants, can also close his demat account with one DP and
transfer all the securities to another account with existing or a different DP.
As per a SEBI circular issued on November 09, 2005, there are no charges
for account closure or transfer of securities by an investor from one DP to
another


Freezing/Locking a demat account
The account holder can freeze his demat account for a desired time period.
A frozen account prevents securities to be transferred out of (Debit) and
transferred into (Credit) the account.

Dematerialised shares do not have any distinctive number
Dematerialised securities are fungible assets. Therefore they are
interchangeable and identical.

Rematerialisation
The process of getting the securities in an electronic form, converted back
into the physical form is known as Rematerialisation. An investor can
rematerialise his shares by filling in a Remat Request Form (RRF).

The whole process goes on as follows: ---
Page | 18



Trading account:
It is that type of account with the help of which a De-Mat account holder
can buy or sell shares. India Infoline Ltd. Provide their customer software
Trade Terminal for trading by free of cost and unlimited number of scripts.

Formalities required for opening of De-Mat and Trading a/c in
India Infoline Ltd.
For Individual
Page | 19

y PAN Card(compulsory for all joint holders)
y Address proof of all joint holders
y Specimen copy of cheque
For NRI
y Foreign and Indian Address proof
y PAN Card(compulsory)
y Bank a/c indicating type of a/c as NRE/NRO
y Specimen copy of cheque
For HUF
y Address proof and identity proof of karta
y PAN Card of HUF(compulsory)
y Specimen copy of cheque
y Declaration giving details of the family members of the HUF with
their names, date of birth & relationship with the karta.
For Minor
y Minor PAN Card
y Birth certificate of minor
y Address and identity proof of guardian
y Specimen copy of cheque


India Infoline offer De-Mat a/c and Trading a/c as follows:-
Page | 20


Individual Account
Account opening charge 750/-
Margin Money- 5000/- (minimum)
Exposure 10 times for intraday & 3 times for delivery.
Software installation charge- NIL
Annual Maintenance Charge- NIL
Brokerage- Intraday-0.05% & Delivery-0.50%

Joint Holders Account

Account opening charge-750/-
Margin money- 5000/-(minimum)
Exposure- 10 times for intraday & 5 times for delivery
Software installation charge- NIL
Annual Maintenance Charge- NIL
Brokerage- Intraday-0.05% & Dilivery-0.50%




Page | 21





RESEARCH
METHODOLOGY








Page | 22

FUNDAMENTAL RESEARCH SERVICES:

The Sunday Weekly Report :
This weekly report is the ace of all reports. It offers a comprehensive market
overview and likely trends in the week ahead. It also presents few top picks based on an
in-depth analysis of technical and fundamental factors. It gives short term and long term
outlook on these scrips, their price targets and trading strategies. Another unique feature
of this report is that it provides an updated view of about 70 prominent stocks on an
ongoing basis.
The Industry Watch :
This report provides an in-depth analysis of specific industries which are likely to
outperform others in the economy. It analyzes their strengths and weaknesses and
ascertains their future outlook. The final view is arrived at after thorough interaction
with industry experts. Also comparative performances of various companies in the sector
are evaluated and top picks are recommended.
Stock Analysis :
Indiainfoline stock research has performed very well over the past few years and
the Indiainfoline Model Portfolio has consistently outperformed the benchmark indices.
The fundamentals of select scrips are thoroughly analyzed and an actionable advice is
provided along with investment rationale for each scrip.
Flash News :
Key developments and significant news announcements that are likely to have an
impact on markets / scrips are flashed live on trading terminals. Flash news keeps the
market participants updated on an online basis and helps them to reshuffle on their
holdings.

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TECHNICAL RESEARCH SERVICE

Nifty Tracker :
Nifty Futures is the most traded instrument with highest volumes in F & O and
excellent liquidity. The team tracks the Nifty Future and generates calls based on unique
trading system which is a result of their focused research over the past few years. The
objective is to generate positive returns for traders who are looking for a high risk / high
reward product.
Online Chart :
An online forum to help clients, specifically day traders in judging the directions
of the market and stocks which are in the limelight.
Intraday Calls :
For day traders, indiainfoline provides intra-day calls with entry, exit and stop
loss levels during market hours. These calls are flashed on their terminals. Their
analysts continuously track the calls and provide recommendations according to the
market movements.
Position Calls :
Indiainfoline Position Trading Calls are based on thorough analysis of the price
movement in select scrips. These calls are for a 10-15 day time span with stop loss and
target levels. These calls are flashed on their terminals during market hours.
Derivative Strategies :
Their analysts take view on the Nifty and select stocks based on the derivatives
data and technical tools. Suitable Derivative Strategies are devised, which are flashed
on their terminals and published in their reports.
Futures Calls :
Page | 24

A customized product for HNIs to help them trade with leveraged position;
wherein clients are advised on the stocks with entry, exit and stop loss level for short
term benefits. Over and above this, financial status of the calls is monitored at all times.
OTHER ADVATAGES
Advancements in Internet and Internet-based trading have transformed the way firms
operate in the broking industry. We recognize that technology is an important tool for broking
operations.
We believe that online trading will gain market share due to significant advantages that it offers
y It enables the customer to trade directly without any agent intervention
y It offers customers the convenience of trading from almost anywhere
y It enables rapid dissemination of information and at reduced costs
y It offers a responsive mechanism for reporting grievances, problems and bugs
The IndiaInfoline Group have invested in technology and ensured that we have an optimum
infrastructure to handle the load. Our current technology infrastructure comprises several high
ends Dell, HP, IBM servers running on Microsoft Operating System. Most of these servers
support online customers for trading activities and users for the www.indiainfoline.com and
www.5paisa.com websites.
The IndiaInfoline Groups main trading servers (application and database servers) are located
at our Goregaon office and our broadcast servers are hosted at VSNL and Reliance Internet
Service Providers (ISP). Our website is hosted with Net Magic Solutions, another ISP. All the
three ISPs and our Goregaon office are equipped with latest servers and uninterruptible power
supply systems. The Goregaon office is connected to the internet by optic fiber to Net Magic
Solutions which gives us bandwidth of more than 10Mbps expandable to 20Mbps. Our
connectivity between the internal and external servers is through this fiber connection.

Net Magic Solutions sources bandwidth from VSNL and Bharti, thereby providing us with
redundancy in the event of a failure of one of the providers gateway. By co-locating some
servers with Reliance Infocom we have further increased our redundancy.
The IndiaInfoline Group has implemented CISCO Pix firewall, managed by Net Magic. All
our servers, routers and desktops are behind this firewall. All connections to our trading servers
Page | 25

happen in a secure manner using 128 bit encryption. We have a security certification from
Thawte.

The key components of our technology infrastructure include

- Online trading software
- Surveillance and risk management
- Client administration
- Back office software
- Communication links and VSAT network
- Networking and hardware
- Security
SWOT Analysis:

Strengths

Integrated technology platform
One Stop shop
Pan - India distribution network
India Infoline.com and 5paisa.com have developed into brands

Weaknesses

Lack of a banking arm to complete the bank-broker-depository chain
Insignificant presence in institutional Segment

Opportunities

Changing demographics with higher disposable income and increasingly complex financial
instruments will drive demand for investment advisory services
Rapid penetration of Internet and computers means that technology enabled financial services
will gain market share


Threats

Page | 26

Economic slowdown
Volatile movement in indices events like May 17, 2004
Stock markets falls will have a cascading effect on our mutual fund mobilization
Increase/decrease in interest rate can affect our debt/ income fund mobilizations
Future changes in personal taxation rules can impact insurance sales
Increasing competition from large and particularly foreign players

PORTERS FIVE FORCE MODEL
Competitive Force: - Michael Porter has identified five forces that determine the intrinsic long-
run profit attractiveness of a market or market segment.
y Industry competitors
y Potential entrants.
y Substitutes.
y Buyers.
y Suppliers

Intensity of Competition:

Move towards consolidation

Lot of brokerage companies are moving towards consolidation with the smaller ones becoming
either franchisees for the larger brokers or closing operations.

Increased Focus of Banks in Retail Broking:
Various foreign banks like ABN Amro and others are planning to enter the Indian retail
brokerage industry.

Online Trading Competes with Traditional Brokerage:
There is an increasing demand for online trading due to consumers growing preference for
internet as compared to approaching the brokers.

Threat of New Entrants
Entry of Foreign Players
New forms of trading including T+2 settlement system, dematerialization etc are strengthening
the retail brokerage market and attracting foreign companies to enter the Indian industry.Threat
Page | 27

of Substitutes

Alternative Investment Options
Various alternative forms of investment including fixed deposits with banks and post offices etc
act as substitutes to retail broking products and services.
Buyer Power
Lack of Expertise Curtails Bargaining Power
Retail investors often lacks the knowledge and expertise in the financial sector that calls them to
approach the broking houses.


Low Product Differentiation Proves Beneficial:
The retail broking services provided by the various companies are homogeneous with very low
product differentiation. This allows customers to enjoy a greater bargaining power.

Supplier Power

Increased Dependence on IPOs
There is a growing dependence of corporate on broking houses with the rising number of IPOs
coming to the market.







Page | 28







DATA COLLECTION













Page | 29





Primary data:-

Primary data are data freshly gathered for a specific purpose. The various sources of
primary data for my project are as follows.
y Banks.
y Local residents.
y People from industries
y Mall
y Small Retailers

Secondary Data:-

Secondary data provide a starting point for research and offer the valuable source of
information.
The secondary data was the most important source for my project because it gave us information
about company profile, competitors, market scenario, market share, etc.
It also give us information of the financial industry, its emergence,& its importance in country
progress.
We used secondary data for following sources:
y Internet
y Indiainfoline brochure








Page | 30






DATA ANALYSIS























Page | 31

Financial Performance

Year 2007-08

List Revenue Profit before
interest,
depreciation and
tax
Profit after tax
Indiainfoline Ltd. 6,724.4 2,772.5 1,286.9
India Infoline
Investment
Services Ltd
1,522.1 1,208.9 315.5
Moneyline Credit
Ltd
113.2 19.4 20.7
India Infoline
Distribution
Company Ltd

18.4 71.3 56.0

India Infoline
Marketing
Services Ltd

405.0 129.7 75.3
India Infoline
Insurance
Services Ltd

688.1 4.2 41.7
India Infoline
Commodities Ltd

170.1 14.7 8.3
India Infoline
Media and
Research Services
Ltd

823.8 98.1 63.0
Page | 32

Other subsidiaries

96.9 62.4 51.2
Inter-company
adjustments

326.1 169.2 42.5
Aggregate

10,235.9 4,022.2 1,639.3

This is the tabel represents the Revenue, profit before interest, depreciation and tax
in each and every segement of IndiaInfoline and profit after tax in each and every
segment. If we see this table we will find that the total revenu for 2008-09 was
10235.9, and 4022.2 is his profit before interest, depreciation and tax which is
4022.2 * 100 =39.3%
10235.9
And if we calculate the profit on total revenue it will be

1639.3 * 100 =16.01%
10235.9

And if we calculate the total Interest, depreciation and tax they will be

4022.2-1639.3=2382.9

Rs. Mn
Lists 2007-08 2007-06
Gross Income 6724.4 2867.2
Profit before interest, depreciation and
taxation

2,772.5 983.4
Interest and financial charges

211.6 63.9
Depreciation

194.4 123.3
Profit before tax

2,366.5 796.2
Page | 33

Taxation - Current

793.4 260.7
- Deferred

20.3 2.4
- Fringe benefit tax

10.9 11.9
- Short or excess provision of income-tax

5.3 0.0
Net profit for the year

1,577.2 521.2
Less: Extraordinary items (Net of tax)

290.4 0.0
Less: Appropriations


Dividend:


Interim dividend

0.0 149.6
Proposed final dividend

342.6 0.0
Dividend distribution tax

58.2 21.0
Transfer to general reserves

131.0 53.0
Add: Balance brought forward from
previous year

474.1 83.5
Add: Other adjustments (profits of India
Infoline Securities Private Limited added
pursuant to merger)

0.0

93.0
Page | 34


Balance to be carried forward

1,229.1 474.1


Profit & Loss account of India Infoline
------------------- in Rs. Cr. -------------------
2009 2008
INCOME
Sales Turnover 542.27 616.11
Excise Duty 0.00 0.00
Net Sales 542.27 616.11
Other Income 29.34 27.29
Stock Adjustments 0.00 0.00
Total Income 571.61 643.61
EXPENDITURE
Raw Materials 0.00 0.00
Power & fuel Cost 0.00 0.00
Employee Cost 136.91 128.79
Other Manufacturing Expenses 93.32 105.93
Selling & Admin Expense 112.16 119.13
Miscellaneous Expense 41.03 39.67
Preoperative Exp. Capitalists 0.00 0.00
Total Expenses 383.42 393.42
OPERATING PROFIT 158.85 222.59
PBDIT 188.19 249.88
Interest 11.15 22.82
PBDT 177.04 227.04
Depreciation 25.56 19.44
Other Written Off 0.00 0.00
Profit Before Tax 151.48 207.62
Page | 35

Extra Ordinary Items 2.23 -0.53
PBT(post extra-ord items) 153.71 207.09
Tax 47.88 78.39
Reported Net Profit 105.83 157.73
Total value Addition 383.42 393.53
Preferred Dividend 0.00 0.00
Equity Dividend 79.45 34.36
Corporate Dividend Tax 13.50 5.82
Per Share Data
Share in Issue(in Lakhs) 2,834.00 571.03
Earning Par Share(Rs) 3.73 27.62
Equity Dividend (%) 140.00 60.00
Book Value(Rs) 36.58 17335

This is the Profit and loss account for the years 2007-08 and 2008-09. In which we can see that
the turnover, sale and other profits have decreased from the 2007-08 to 2008-09, which is an
impact of recession.
The total income is also decreased from 643.61 to 571.61 in 09, which is around 11.19% of the
previous year or 72 cr.
In the expenditure part of 2008-09 as compare to previous yes it has also decrease from 393 to
383 which is around 3%. In this the total is decreased instead of increase in employee cost and
Miscellaneous Expense to gain the better profit.
Operating profit was decrease from 222 to 158, approximate 28.82%, from the year 2007-08 to
2008-09.
Report net profit is decreased from 157.73 to 105.83
Share in issued has increase from 571.03 to 2834.00
Earning per share has come down from 27.62 to 3.73 which is 90%




Page | 36

Balance Sheet in Cr.


2009 2008
Sources of funds
Share capital
56.68 57.10

Reserve & surplus
980.13
932.75
Equity share warrants 11.37 59.77
Net worth 1048.18 1040.62
Loan funds
Secured loan 1.70 -
Unsecured loan 00.10 130.56
Total Liability
1049.98 1180.19
Application funds
Fixed asset(including
intangibles)

Gross block 143.67 98.31
Less: accumulated
depreciation and
amortization
44.94 35.07
Net block 98.73 63.72
Capital work in
progress
4.51 00.49
103.24 63.73
Investment 873.71 915.68
Currents asset loan
and advance

Sundry debtors 103.52 342.81
Cash & bank balance 264.10 061.62
Stock on hand 166.72 154.06
Loan & advance 244.41 313.89
778.75 872.38
Less: current
liabilities &
provision

Current liabilities 552.68 514.85
Provisions 148.64 156.74
Total 701.31 671.59

Net current assets 77.43 200.79
Total of Assets 1049.98 1180.19

This is the Balance sheet of IndiaInfoline showing the comparison for the period of 2007-08 and
2008-09.
In this we can see that the total has come down from 1180 to 1049 in 2008-09 period. Which is
all the impact of recession not only on this broking firm, on all others too, the same impact was
their in this period, their is a cost cutting and reduction on other expenses.
Page | 37

The biggest of this can be seen on the liability side on unsecured loans which has come down
from 130.57 to 00.10, which is more then 99%, organization has increased his cash from 61.62 to
264.10 for the period of 2008-09 as compare to 2007-08.
COMPETITORS
(ACCORDING TO VOLUME)
LAST
PRICE
MARKET
CAP.(Rs.cr)
SALES
TURNOVER
NET
PROFIT
TOTAL
ASSET
INDIABULLS 135.20 4188.09 2003.09 99.451 14722.36
INDIA INFOLINE 141.30 4004.44 571.57 103.59 1049.99
EDELWEISS CAP 470.00 3,525.20 191.39 26.39 1,865.28
MOTILAL OSWAL F 170.80 2,443.58 57.26 45.31 433.49
HSBC INVEST 264.00 1,843.68 24.31 -15.21 667.45
FUTURECAPITAL 230.50 1,464.32 132.44 9.31 1,216.75
NETWORK 18 90.20 865.07 94.50 -19.41 862.11
GEOIIT BNP 37.80 847.03 140.56 14.39 276.06
DELTA CORP 43.30 723.81 42.73 8.31 356.87
NALWASONS INV 1,210.00 621.48 14.78 11.26 270.90

This table represent the comparision between the indiainfoline and other share broking firms or
inverstment organisation, which includes last price of share, market capital, sales turnover, net
profit and total assets.

0
200
400
600
800
1000
1200
1400
Last Price
Series 1
Page | 38

This graph shows thr last share price of the organisation, in this we can see that Nalwasons
investment has the highest share price, as compare to others it is very high. The indiainfoline
stand very short in this.

When it comes to market capital the Indiabulls has the highest market capital, and second is
Indiainfoline just behind of Indiabulls and rest other are no ware in this graph.


0
500
1000
1500
2000
2500
3000
3500
4000
4500
Market capital
Market capital
0
500
1000
1500
2000
2500
SALES TURNOVER
SALES TURNOVER
Page | 39

When we talk about sales turnover of the broking firm, or investment organisation again the
indiabulls has the hight sales turnover, as compare to other its very high, other stand no ware
infront of him, but still indiainfoline manages second position.


The profit is the main aim of each and every organsation. In other factore indiabulls is ahead of
all and indiainfoline but here indiainfoline beats all others including indiabulls. Indiainfolines
profit is just ahead of indiabulls.
There are two vacent place which indicates no profit, but it is not like that, here it means loss
both HSBC and NETWORK 18 has suffered a loss of 15.21 and 19.41 respectively.
0
20
40
60
80
100
120
NET PROFIT
NET PROFIT
Page | 40


From this table the coloum of indiabulls has been removes just me make this take appropriate
and attractive, because the total assets of Indiabulls is more then 14700 (NOT SHOWN IN
GRAPH) where as the total of all others is 6996 only.
But finally we can conclude that the Indiainfoline has manage to get the highest net profit among
all his competitors.







Comparative Analysis of charges and facilities
provided by different companies
0
200
400
600
800
1000
1200
1400
1600
1800
2000
TOTAL ASSETS
TOTAL ASSETS
Page | 41


Company

Account
Opening

Margin
Money

Brokerage
Intra-
Delivery(%)

AMC

Exposure
(for intra)

branches
India infoline

0/- 2555/- 0.05-0.50 250/- 8 times

607
Kotak securities

750/- 5000/- 0.06- 0.59

360/- 4 times

890
ICICI direct

500/- 975/- 0.075- 0.05

450/- 5 times

2124
Motilal oswal

415/- Not
Restricted
0.03- 0.30

300/- 4 times

430
Religare

299/- 5000/- 0.025-0.25

Nil 20 times

1837
Angel broking

731/- 5000/- 0.03- 0.30

300/- 4 times

120
Geojit

650/- Nil 0.03- 0.30

Nil 20 times

500
India bulls

900/- Nil 0.03- 0.30

Nil 20 times

718
Reliance money

750/- Not
Restricted
0.05- 0.25

50/- 5 times

10000
Share khan

750/- 5000/- 0.03- 0.30

500/- 4 times

250
Hdfc 799/- 5000/- 0.05-0.50 500/-
from 2
nd yr
5 times

NA

This is comparative study based on the charges made by Indiainfoline and other broking firms. In
this it take lowest charge to open an accout and providing an appropriate brokerage to his clients
as compare to few others. And low margin money and it has a total of more then 600 branc all
over India, which is very good in number and very less as compare to Reliance, kotak securities,
ICICI securities and Religare, so that they can provide a proper attention towards his clients and
manages thaind in better was, thats the reason we have seen about they have good amout of net
profit with less investment.
Thats the reason they have a line ITS ALL ABOUT MONEY, HONEY
Page | 42



















PERFORMANCE HIGHLIGHT IN 2008-09
Business Division Business Highlights
Page | 43


Broking
y Market share of equities increase from
3.4% in 2007-08 to 3.76% in 2008-09.
y Customer base for retail equities
increased 35.8% from .44 ml in 2007-
08 to .06 ml in 2008-09.
y Published in-depth and thematic reports
on INCH, politics, rural India,
infrastructure, self commodities,
utilities and India worming.

Insurance
y Receive Insurance Broking License.
y Forged alliances with major insurance
companies for the distribution of life
and nonlife products.
y Alter the product mix in favor of
traditional products like Endowment
Products.

Credit and Finance
y Proactively suspended personal loans
and mortgages business from
September 2008, while the personal
loan business is still suspended, the
mortgages business has been Re-
Started.
y Revenue at Rs.2654.1 ml in 2008-09
against Rs.1937.5 ml in 2007-08.
y Registered the Housing Finance
Subsidiary with NHB.
Wealth and asset Management y Introduce the family office platform.
y Raised around Rs.1.8 bl in the largest
single day debenture listing of its kind.
y Received in principle approval for
sitting up of Mutual Funds.
y Establish the infrastructure and
knowledge capital for Office Store
Asset Management Services.

FINDINGS

Page | 44

Brokerage of India infoline is higher than Others broking firms like Religare,Motilal
Oswal,Indiabulls,they are charging 0 .03% for Intraday and 0 .30% for Delivery where
India Infoline is taking 0 .05% for Intraday and 0 .50% for Delivery.
Margin money of India infoline is higher than other firm like Indiabulls,Geojit,Motilal
Oswal,there is no restriction of margin moneye.But in India Infoline,the minimum margin
money should be 5000/2555 rs..
Exposure is less than other firms. India Infoline offers eight times exposure on margin
where as Religare and Indiabulls offer twenty times exposure on margin money.
HDFC, ICICI direct provide their customers three types of account (de-mat a/c, trading
a/c, bank a/c) but India infoline provide only De-mat a/c and Trading a/c.
Religare takes Rs.299 for lifetime services, where as India infoline takes Rs.555.
Relationship manager changes many times, it creates problem for the offline customers .
Securities are not so much reliable.
India Infoline has hidden charges, Customer are not much aware about that.
Customer satisfaction of India infoline not so good.
Most of the customers are trading offline.
Most of the customers approach towards the broking firm is through the relationship
manager.
Most of the people are not much aware of share market and its benefit.


Recommendation

Page | 45

To increase awareness about Share Market and the name India Infoline itself, the
company should organize campaign. The campaign can be weakly, monthly, yearly, it
will give a good result to the company to capture market in the competitive position.

The company should reduce the margin money. It can help to acquire more customers, if
the firms bring plans for no boundation of margin money.

The Company should increase their focus on the less margin money customers also .It
can help to make more customers of low margin money which can increase the revenue
of the firm. The Relationship managers focus only to the high margin money customer
because from them they will get high brokerage that should not be happened from the
less margin money customer.

Transaction error should be avoided .Transaction should be done properly, taking in
consideration that it is one of the most required quality of a firm. Wrong transaction or
default transaction may lead the prestige of the company to be down.

Brokerage rate should be reduced. Religare,Motilal Oswal,Indiabulls, are charging as 0
.03% for Intraday and 0 .30% for Delivery where as India Infoline is charging 0 .05% for
Intraday and 0 .50% for Delivery.Though it is negotiable but for high margin money
customer not for less margin money customer.

The Company should increase Exposure. It is the good tool to capture the market.



CONCLUSION

Page | 46


I am much thankful to india infoline for providing me the opportunity for doing training
programme in the organization as management trainee. While doing my sip in the reputed
broking firm India infoline I had got a chance for knowing and analyzing the share market. I was
also able to know about the business environment and business ethics of the business world. I
also came to know about what does a firm or an organization require or wants from a employee
or a trainee. From the survey, I found that India infoline is in the top three position in the share
market.













BIBLIOGRAPHY
Page | 47




Websites:-

y www.indiainfoline.com
y www.5paisa.com
y www.nse.com
y www.moneycontrol.com

Book source:-


y Financial management
- Khan & Jain.
y Principal of financial management
-Prassana Chandra
y Business Environment
- Francis Cherunilam
y Annual report of indiainfoline