FORTUNE EQUITY BROKERS INDIA LTD

INDUSTRY PROFILE
INDIAN STOCK BROKING INDUSTRY The Indian broking industry is one of the oldest trading industries that have been around even before the establishment of the BSE in 1875. Despite passing through a number of changes in the post liberalization period, the industry has found its way towards sustainable growth. In 1860, the exchange flourished with 60 brokers. In fact the 'Share Mania' in India began when the American Civil War broke and the cotton supply from the US to Europe stopped. Further the brokers increased to 250. At the end of the war in 1874, the market found a place in a street (now called Dalal Street). Historical records show that as early as 1864, there were about 1,000 brokers with the stock markets functioning from three places in Mumbai; between 9 am to 7 pm at the junction of Meadows Street and Rampart Row, from day break 9 am and from 7 pm to early hours of next morning at Bazargate. Reports on stock markets around that time indicate that an ordinary broker in 1864 earned about Rs. 200 per day, a huge sum in those days. The boom period came to an abrupt end in 1865. Never had I witnessed in any place a run so widely distributed nor such distress followed so quickly on the heels of such prosperity thus wrote Richard Temple, who served as the Governor of Bombay at that time. An interesting aspect is that despite the collapse of the stock market, most of the brokers met their payment commitments. The Equity Broking Industry in India has several unique features like it is more than a century old, dynamic, forward looking, and good service providers, well conversant, highly innovative and even adaptable. The regulations and reforms been laid down in the Equity Market has resulted in rapid growth and development. Basically, the growth in the equity market is largely due to the effective intermediaries. The Broking Houses not only act as an intermediate link for the Equity Market but also for the Commodity Market, Foreign Currency Exchange Market, and many more.
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The Broking Houses has also made an impact on the Foreign Investors to invest in India to certain extent. In the last decade, the Indian brokerage industry has undergone a dramatic transformation. From being made of close groups, the broking industry today is one of the most transparent and compliance oriented businesses. Long settlement cycles and large scale bad deliveries are a thing of the past with the advent of T+2 settlement cycle and dematerialization. Large and fixed commissions have been replaced by wafer thin margins, with competition driving down the brokerage fee, in some cases, to a few basis points. There have also been major changes in the way business is conducted. Technology has emerged as the key driver of business and investment advice has become research based. At the same time, adherence to regulation and compliance has vastly increased. The scope of services have enhanced from being equity products to a wide range of financial services. Investor protection has assumed significance. Major Players in the Region

Religare Securities ICICI Direct India Infoline Security Pvt. HDFC Securities Indiabulls Kotak Securities Fortune Equity Brokers India Ltd Sharekhan Securities MotilalOswal AnandRathi Securities

PRODUCTS OFFERED BY STOCK BROKERS. The survey also revealed that in the past couple of years, apart from trading, the firms have started offering various investment related value added services. The sustained growth of the economy in the past couple of years has resulted in broking firms offering many diversified
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services related to IPOs, mutual funds, company research etc. However, the core trading activity is still the predominant form of business, forming 90% of the firms in the sample.

trading IPO mutual funds internet trading depository services company research investment advisory arbitrage fundamental analysis technical analysis RBI relief/ tax saving bond merchant banking investment banking company fixed deposits margin financing mergers & acquisitions technology products portfolio management 0% 20% 40% 60% 80% 100%

From the above figure it can be seen that 67% firms are engaged in offering IPO related services. More than 50% of the sample broking houses deal in mutual fund investment services, 48% of firms deal with depository services. Company research is another lucrative area where the broking firms offer their services; more than 33% of the firms are engaged in providing company research services. Additionally, a host of other value added services such as fundamental and technical analysis, investment banking, arbitrage etc are offered by the firms at different levels.

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COMPANY PROFILE
BACKGROUND AND INCEPTION:
Fortune Group which comprises the holding company Fortune Financial Services (India) Limited and its wholly-owned subsidiaries, is engaged in providing a range of Financial Services right from Equities and Derivatives trading, Equity Research, Commodities Trading, Portfolio Management Services, Distribution of Mutual Funds, IPO & Insurance products and also Investment banking services.

ESTABLISHED ON

14 JUNE 1991

HEADQUARTERS

Mumbai, Maharashtra Mr. J.T.POONJA- Chairman

KEY PEOPLE

Mr. NIMISH C SHAH- Vice Chairman & Managing Director Investment Banking, Corporate Advisory, Stock Broking,

SERVICES

and Distribution Services

TOTAL ASSESTS

25096lacs

TOTAL REVEUNE

9140lacs

M/s. Fortune Financial Services (India) Ltd. is listed on the Bombay Stock Exchange Ltd and is SEBI registered Category I Merchant Banker. It has recently got approval from SEBI to launch its Portfolio Management Services (PMS). LIST OF SUBSIDARY COMPANIES: M/s. Fortune Equity Brokers (India) Ltd. M/s. Fortune Commodities & Derivatives (India) Ltd.
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M/s. Fortune Credit Capital Ltd. M/s. Fortune Financial India Insurance Brokers Limited. M/s. Fortune Financial Services (India) Ltd.

Fortune Equity Brokers (India) Ltd

Fortune Equity Brokers (India) Ltd. is 100% subsidiary company of M/s. Fortune Financial Services (India) Ltd. It offers broking services in the Cash and Future & Option Segments of the National Stock Exchange of India Ltd and Bombay Stock Exchange Limited. It is also a Depository Participant of Central Depository Services (India) Ltd. The services provided by this entity include Equity segment Fortune offers customized solutions for clients based on their short, medium and long term investment needs, for institutional, HNI and retail clients with personalized services to facilitate the execution of buy and sell orders in a flawless and efficient manner on both BSE & NSE segments. Derivatives segment Fortune provides trading calls and various hedging and risk management strategies for trading in the derivatives segment. Depository Fortune provides flexible and cost-effective depository services which include online account management or limited power of attorney to speed up settlement pay-inprocess. Internet trading (Equity & Commodity) Fortune provides user-friendly solutions for trading through www.fortunetrade.com, payment gateway with major banks like HDFC and AXIS to live streaming quotes and intra-day calls. IPOs, Mutual Funds & Bonds AMFI registered mutual fund distributors and is also engaged in the distribution of IPOs. Tailor made solutions are provide to each & every investment preferences.
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VISION, MISSION and QUALITY POLICY VISION

To be the top most company for providing investment advisory and financial planning services in India. To be a leading investment intermediary for transaction through both online and offline medium.

MISSION
To educate and empower the individual investor to make investment decisions through quality advice and superior service.

QUALITY POLICY
Integrity Transparency Professionalism Client driven approach Long-term relationship Broad outlook

PRODUCT/SERVICE PROFILE

Investment banking and Corporate advisory services: Fortune is Category 1 merchant banker providing clients with privileged insights into financial trends, prospects and opportunities.

Broking: Fortune is acorporate member of NSE and BSE.

Distribution services: Accredited distributors for all mutual funds products from their respective branch spread geographically.

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AREA OF OPERATION
As on 31st October, 2011, we are operational from the following 297 locations across India. NORTH:Delhi (5), Ludhiana (31), Srinagar, Amritsar (4), Chandigarh (15), Jalandhar (6), Mohali, Noida, Jaipur(13), Jodhpur, Jammu(2), Kanpur (12), Una (HP), Shimla, Dehradun, Pathankot SOUTH :Hyderabad (12), Bangalore (23), Mangalore(6), Belgaum (15), Mysore (3), Raichur(3), Hubli(11),Udupi, Mandya, Coimbatore WEST:Mumbai (23), Pune (33), Ahmadabad (11), Goa, Baroda (8), Nagpur, Latur, Navi Mumbai, Thane(15), Rajkot(4), Surat (7), Manjalpur EAST:Kolkata (18), Patna

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OWNERSHIP PATTERN Share Holding Pattern as on: Face value 31/12/2011 30/09/2011 30/06/2011

10.00

10.00

10.00

No. Of Shares PROMOTERS HOLDING Indian Promoters Sub Total 6,459,600 6,459,600

% Of Holding

No. Of Shares

% Holding

No. Of Shares

% Holding

50.15 50.15

6,452,591 6,452,591

50.10 50.10

58,51,242 58,51,242

47.65 47.65

NON PROMOTERS HOLDING FIIs Sub Total OTHER INVESTORS 1,053,700 1,053,700 No Of Shares 8.18 8.18 % Holdin g 1.65 1,053,700 1,053,700 No Of Shares 8.18 8.18 % Holdin g 1.26 505,000 505,000 No Of Shares 4.11 4.11 % Holding

Private Corporate Bodies NRIs & Foreign Companies Sub Total General Public Grand Total

211,905

1,62,799

7,62,176

6.21

4,425,279

34.36

44,13,806

34.27

44,15,806

35.96

4,637,184 728,806 12,879,290

36.01 5.66 100.00

5,372,999 7,96,394 12,879,290

35.54 6.18 100.00

5,177,982 7,45,066 122,79,290

42.17 6.07 100.00

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COMPETITORS INFORMATION
(Rs in Cr) COMPETITORS LAST PRICE MARKET CAP. (RS. CR.) 2,024.61 7,015.60 2,167.79 1,734.18 534.37 783.41 460.15 1,576.38 368.03 311.12 SALES TURNOVER NET PROFIT TOTAL ASSETS

India Infoline Indiabulls Edelweiss Cap MotilalOswal Network 18 Future Capital Geojit BNP Delta Corp Nalwa Sons Inv Money Matters

70.05 225.00 28.65 119.50 37.40 120.90 20.15 70.40 716.55 89.20

729.54 2,049.70 448.74 49.85 39.91 238.54 233.62 261.63 18.66 478.32

122.36 608.69 58.72 42.65 -69.13 55.26 48.73 128.63 15.64 84.26

1,554.51 20,740.20 4,919.13 512.58 1,537.40 3,303.65 356.50 660.09 295.64 774.64

INFRASTRUCTURE FACILITY
Credit and Risk Management Investor Service Centers Investor Service Desk Compliance team Retail Relationship Management Online trading

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MILESTONES OF FORTUNE GROUP

1991 Mr. J.T. Poonja and Mr.Nimish C. Shah incorporated Fortune Financial Services (India) Private Limited as a Non-Banking Financial Company (NBFC). Besides core investment banking and corporate advisory services, Fortune's also focused on fund based activities such as lease, hire purchase, bill discounting and intercorporate loans.

1993

Fortune became a SEBI registered Category - I Merchant Banker.

1995

Fortune made an Initial Public Offering (IPO) of 25 lac equity shares of Rs.10/each at a premium of Rs. 20/- per share.

1998

Due to a downturn in the market conditions, Fortune's senior management decided to suspend the NBFC activities effective from April 1998.

1999

Fortune Financial became the 1st Indian company to go in for a buyback of its shares, subsequent to the guidelines for Buyback of shares coming into effect from Jan 1999.

2000 2001 2002

Acquired Corporate Membership of Bombay Stock Exchange Limited (BSE)

Fortune completed the private placement of equity shares of Popular Entertainment Network Limited and clickforcotton.com, India's first cotton exchange portal.

Fortune commenced its full fledged broking operation by empanelling with leading FIs / MFs / Banks. Reserve Bank of India de-registered Fortune as a NBFC
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2003

Managed open offers of Gujarat JHM Hotels Ltd., Punjab Chemicals and Pharmaceuticals Ltd. Fortune's equity shares are voluntarily de-listed from Ahmadabad Stock Exchange Ltd Fortune empanelled with three institutions for secondary market business

2004

Fortune empanelled with seventeen institutional clients for its secondary market business. Fortune was appointed as merchant bankers to manage an open offer by Zircon Traders Ltd.

2005 2006

Commenced F&O operations on the National Stock Exchange (NSE)

Commenced Depository Participant (DP) Services.

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I. WORK FLOW MODEL

1 2

Pre trade

Depository

Contracts

Customer
acquisition

Online Telecaller Self initiated Offline

Filled account opening form & other documents is sent to depository team

Punching checking of form, activation of clients account

Communi cation to customer on account activation

Uploading file on hi-tech and assigning brokerage scheme/code

Risk Setting risk limits Margin call Stock acc

Post trade
6 5 43

Accounts/ba nking Clients accounts maintained by accounts

Contract s Generate net trade obligation statement printing and dispatch of contracts notes

Settlement

Trade

Pay in and pay out of delivery based transactions Research

Trade execution

Online dial trade Offline dealer Self initiation Page 12

Branches/franchisees

Publishing Derivatives & commodities research S

Clients

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FORTUNES FUTURE BUSINESS OUTLOOK

INVESTMENT BANKING & ADVISORY

STOCK BROKING

DISTRIBUT ION SERVICES

MEET ALL CLIENT NEEDS

MORE MANDATES & INCREASED MARKET SHARE

Over the next two years, fortune plans to bulk up its services into a full services financial services company.

Stock broking
Channel dealing and broking business into retail specific, HNI specific and corporate specific Providing fund management expertise to HNI and corporate clients Develop and strengthen futures & options and commodity business Franchise network focusing on retail (broking and distribution of all products)

Investment banking and corporate advisory services

Strengthen equity and debt platform for Indian and international capital markets IPO/rights issue/open offers/buy backs/selling & placement to funds/M&A Advisory services and selling issues to international investors Indian

Distribution services
Branches/franchise/direct clients Savings products (mutual funds, IPOs, P.O. schemes, RBI schemes, GOI savings schemes etc., Insurance

Support
-

Provide in-house research capabilities; Strong marketing team Provide Depository Services Provide Real Time Back office support
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McKENSYS 7S FRAME WORK

The McKinsey 7S model was named after a consulting company, McKinsey and Company, which has conducted applied research in business and industry. The McKinsey 7S Framework was created as a recognisable and easily remembered model in business. The seven variables, which the authors term "levers", all begin with the letter "S".

HARD ELEMENTS

SOFT ELEMENTS
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1.

STRATEGY

Plan or course of action leading to the allocation of an organizations finite resources to reach identified goals

2.

SKILLS

Distinctive capabilities of key personnel and the organization.

3.

STRUCTURE

Salient features of the organization chart (e.g. degree of hierarchy, extent of centralization/decentralization) and interconnections within the organization.

4.

SYSTEM

Procedures and routine processes, including how information moves around the organization

5.

STAFF

Personnel categories within the organization, e.g. academics, administrators, technicians.

6.

STYLE

Characterization of how key managers behave in order to achieve the organizations goal.

7.

SHARED VALUES

The significant meanings or guiding concepts that an organization imbibes in its members.

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The Mc Kinsey 7s Model is a widely discussed framework for viewing the interrelationship of strategy formulation and implementation.
It helps to focus managers attention on the importance of linking the strategy to a variety of

activities that can affect the implementations of that strategy.

Originally developed as a way of thinking more broadly about the problems of organizing

effectively, the 7s framework provides a tool for judging the do ability of strategies. The model starts on the premise that an organization is not just a structure, but consists of seven elements. These seven variables include structure, strategy, systems, skills, style, staff and shared values. These seven elements are further divided into three hard elements- strategy, structures, and systems, and four soft elements- shared values, skills, staff, and style. The hard elements are classified as such because they can be empirically measured, and the soft elements are classified as such because they lie below the surface and do not lend themselves for evaluation so readily.

STRATEGY
The strategy is the plan or course of action in allocating resources to achieve identified goals over time. Fortune aims at improving its customer base by providing integrated financial services to all the customers. Most prominent part of Fortunes growth strategy is focus on in house research to cater to different segments of clients and meet their rising expectations. Fortune believes in-house research is not only an essential part of business requirement it also gives control over quality of input and relative advantage in this intense business environment..Today fortunes client base has increased to 73% in capital market and the branch and franchise network to 186 from 49 in the previous year.

STRUCTURE
Structure is defined as the skeleton of the organization or the organizational chart. The designing of an organizational structure is the critical task of the management. The operation at Fortune is carried out through various departments.
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ORGANIZATIONAL STRUCTURE OF FORTUNE GROUP

CHAIRMAN

MANAGING DIRECTOR

DIRECTOR

CAPITAL MARKET

INVESTMENT BANKING

GROUP FUNCTION

COUNTRY HEAD

SALES AND DEALING

SALES

OPEARTIONS SALES DEALING

HEAD

HEAD

HEAD

EQUITY

COMMODITY

DERVIATIVE

TREASURY INSURANCE DISTRIBUTION

COMPANY LAW

RESEARCH

HEAD

HEAD

CORPORATE AFFAIRS HEAD HEAD

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SYSTEMS
The systems are the routine processes and procedures followed within the organization. It includes production planning g and control system, capital budgeting systems etc. In Fortune the core operations include

Customer Acquisition: - the offline method of acquisition of customers through the brokers is followed for this purpose.

Research: - the research is done mainly at the head office in Mumbai. The fundamental analysis of the different companies through balance sheet analysis, profit and loss statement and the technical analysis with regards to the various sectors, the volatility in these sectors is also done at the head office.

Dealing: - the dealing system refers to the actual trading activities that are done through advice. The orders are placed according to the needs of the investors. The volume generated through these activities forms the core revenue for the company.

Back office Operations: - the back office acts as the backbone for all the activities of Fortune. This system handles all operations involving cheque processing, contract notes, IS (Delivery Instruction Slip) etc.

Risk and Compliance: - this part of the support operations handles the risk associated. The software needed for these operations handles this and makes sure that all the norms are met in any form of the transaction.

STYLE
The way in which key managers behave in achieving organizational goals is considered to be the style variable; this variable is thought to encompass the cultural style of the organization. Democratic style has been followed in fortune which allows individual department to take necessary decisions. The style of operation that is followed towards the customer is much focused and it is aimed to give utmost attention to the customer. Personalized care is taken to satisfy with any of the problems faced by the clients.

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SKILLS
The skill refers to the capabilities of the staff within the organization as a whole. The company has the skill needed to carry out the companys strategy like:

Good and specialized knowledge about the products. High level of specialization in communication. Ability to convert people into customer.

STAFF
The term staff refers to the way organization introduce young recruits in to the main stream of their activities and the manner in which they manage their careers in the new interns develop employees and shape basic value. The employees in all the departments are given training for 6 months where they will be given all the necessary skill that is needed for their respective jobs. The efficiency of the existing employees is also measured to know the growth and their relative position in the organization. There are 1600 employees all over the country.

SHARED VALUES
The shared values, originally termed as super ordinate goals, refer to the significant meanings or guiding concepts that organizational members share. Shared values are considered to be the foundation of ethics, community and culture. When peoples values are met and matched, they feel a sense of satisfaction, harmony, or rapport. When their values are not met or matched, people often feel dissatisfied, incongruent, or violated.

Customer - personalized attention is the key. Integrity - highest ethical standards are used in all the transactions. Mutual Respect trust in working relationship. Quality Advice scientific approach in quantifying the risk.

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SWOT ANALYSIS
Brief about SWOT analysis
It is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. The method of SWOT analysis is to take the information from an environmental analysis and separate into external (opportunities and threats) and internal issues (strengths and weakness). Once the identification of SWOT is done, it determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.

STRENGTHS:

Experience of more than decades of trust and credibility in the Indian stock market.

Strong industry focus leading to innovative and informed strategic advisory services.

Deep understanding of Indian mid market corporate clients. Debt free group. Comprehensive range of financial services for HNIs & retail investors. Non-exclusive working relationship with leading international investments banks. Dedicated research team for technical and fundamental analysis. A well equipped customer team, which will assist a new comer in the matters relating to transactions, billing, De-mat and other technical queries

WEAKNESS:

Highly risk oriented business. Slight entry level of investors. Lacks in advertising. Concentrated much on HNIs and corporate clients which ignores small investors.
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OPPORTUNITIES:

Booming financial market both country wide and worldwide. Increase in varied domestic assignments follow on issues, buyback program, open offers, IPOs.

Strong momentum in franchise in the last two years. Overseas fund raising of approximately US$ 500 million in the last 18 months. Critical mass and experience across the globe. All factors which aid to the well functioning of the capital market will pave the way to the expansion of most of the brokerage firms.

THREATS:

Unexpected changes in the capital market such as rules and regulations etc. Increasing competition in the industry. Fast changing in technology. Increasing number in the defaulters and threat of security in terminals.

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ANALYSIS OF FINANCIAL STATEMENT

(Rs. In Cr) Mar '11 SOURCES OF FUNDS : Share Capital Reserves Total Equity Share Warrants Equity Application Money Total Shareholders Funds Secured Loans Unsecured Loans Total Loan Funds Total Liabilities APPLICATION OF FUNDS : Loan / Non-Current Assets Fixed Assets Gross Block Less: Accumulated Depreciation Less: Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Investments Current Assets, Loans& Advances Inventories Sundry Debtors Cash and Bank Balance
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Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

12.28 84.76 3.00 0.00 100.04 0.19 0.00 0.19 100.23

12.12 79.92 1.20 0.00 93.24 0.10 0.00 0.10 93.34

11.10 67.32 0.88 0.00 79.30 0.00 0.66 0.66 79.96

10.00 43.12 0.00 0.00 53.12 0.00 0.00 0.00 53.12

10.00 33.57 0.00 0.00 43.57 9.32 1.47 10.79 54.36

0.00

0.00

0.00

0.00

0.00

1.39 0.85 0.00 0.54 0.00 0.00 80.95

1.24 0.80 0.00 0.44 0.00 0.01 64.45

1.18 0.73 0.00 0.45 0.00 0.00 55.86

9.19 3.83 0.00 5.36 0.00 0.02 38.84

5.23 2.81 0.00 2.42 0.00 0.00 6.43

0.00 0.15 12.68

0.00 0.04 14.37

0.00 1.73 13.60

0.00 1.68 10.56

0.00 7.10 45.64

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Loans and Advances Total Current Assets Less: Current Liab. & Provisions Current Liabilities Provisions Total Current Liabilities& Provisions Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Total Assets Contingent Liability

9.25 22.08

17.50 31.91

17.34 32.67

15.35 27.59

8.57 61.31

0.80 2.70 3.50 18.58 0.02 0.14 0.00 0.14 100.23 50.09

0.54 3.07 3.61 28.30 0.03 0.11 0.00 0.11 93.34 37.09

0.20 8.79 8.99 23.68 0.02 0.02 0.07 -0.05 79.96 24.29

1.60 12.02 13.62 13.97 0.00 0.00 0.03 -0.03 53.12 26.49

7.87 7.80 15.67 45.64 0.00 0.03 0.16 -0.13 54.36 8.50

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AN EYE ON KEY RATIOS

Mar '11 Investment ValuationRatios Face Value Dividend Per Share Net Operating Profit Per Share (Rs) Profitability Ratios Net Profit Margin (%) Return On Long Term Funds (%) Return On Net Worth (%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Leverage Ratios Owners Fund as % Of Total Source Total Debt to Owners Fund Management Efficiency Ratios Dividend Payout Ratio Fixed Assets Turnover Ratio Earnings Per Share

Mar '10

Mar '09

Mar '08

Mar '07

10.00 2.00 9.21

10.00 2.50 6.11

10.00 1.10 5.06

10.00 2.20 32.70

10.00 2.00 15.75

39.60 8.58 6.32

54.43 10.80 8.53

31.11 3.95 2.96

35.46 38.55 23.55

39.37 24.07 16.09

6.35 6.32 0.00

8.88 8.85 0.00

3.61 3.60 0.01

2.02 2.02 0.00

1.71 3.87 0.00

0.00 0.00

99.89 0.00

99.16 0.01

100.00 0.00

80.15 0.24

40.33 9.25 4.99

38.57 6.56 6.48

52.55 5.25 2.09

17.58 5.95 12.51

29.32 8.19 7.01

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CURRENT RATIO RATIO Current Ratio 2011 6.35:1 2010 8.88:1 Ideal Ratio 2:1

Current ratio is an indication of a company's ability to meet short-term debtobligations; the higher the ratio, the more liquid the company is. It can be see that in the year 2010 the ratio is 8.88:1 which very much higher than the ideal ratio. This also indicates that the company has purchased a fairly large amount of current assests. In the year 2011 their current ratio has decreased to 6.35:1 which is higher than the ideal ratio 2:1 this shows that the company has reduced the purchase of large amount of current assets in that year and it also shows their short term financial strength is very strong. QUICK RATIO RATIO Quick Ratio 2011 6.32:1 2010 8.85:1 Ideal Ratio 1:1

Quick ratio is a measure of a company'sliquidity and ability to meet its obligations. Quick ratio, often referred to as acid-test ratio, is obtained by subtracting inventories from current assets and then dividing by current liabilities. Quick ratio tells us the amount of easily convertible assets for every unit of current liability In the year 2011 the companys quick ratio is 6.32.:1 as against 8.85:1 in the year 2010. Their financial strength has decreased in the year 2011. This means they have sold a fairly large amount of easily convertible assets. DEBT EQUITY RATIO RATIO Debt-Equity Ratio 2011 0.00:1 2010 0.00:1 Ideal Ratio 2:1

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Debt equity ratio is a measure of a company's financial leverage. Debt/equity ratio is equal to long-term debt divided by common shareholders' equity. In other words it means how much money a company should safely be able to borrow over long periods of time. The debt equity ratio in the year 2011 is nil which means there has been no debt in that year. In the year 2010 the ratio is 0.00 which is very less than the ideal ratio of 2:1. The companys ratio is 0.00 which less than 1 hence we can say that the companys assets are financed through equity. DIVIDEND PAYOUT RATIO

RATIO Dividend Payout Ratio

2011 40.33

2010 38.57

The dividend payout ratio is the percentage of companys annual earnings paid out as cash dividends DPR is calculated by dividing the annual dividend per share by the earnings per share. DPR= Dividend per share / Earning per share It can be seen that there is increase in DPR in 2011; this indicates that the company is giving more dividends to increase its share value in the market.

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LEARNING EXPERIENCE
Learning is a continuous process which enriches the knowledge regarding the particular field. It is a team work. This is so because the guides helping if not supportive, the work/project cannot be completed. It was great experience obtained during my project work in Fortune Equity Brokers (India) Limited. All the staffs of the company were very co-operative and they provided all the detailed information with handouts necessary for the project. The internal atmosphere of the company was friendly and fabulous. Apart from this, I gathered certain information from the companys website. While doing the project in this company, I got to know that every second of time is very precious and the whole process has to be worked out very carefully. I got to know where my perspective stood after looking at their duties, responsibilities towards the company and their functions in the company. Thus this Project/Internship has enriched my knowledge regarding Planning, Controlling, Staffing and as well as executing the work in the company. Apart from this, this Internship program has helped me
To improve my practical knowledge. To understand the value of time. To improve my knowledge on the behaviour of stocks. To understand the importance of operation efficiency and productivity. To understand how important the stakeholders are for a company. To understand the importance of Team work.

Atria Institute of Technology

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