sharekhan.internship report
TRANSCRIPT
INTERNSHIP REPORT
On
SHAREKHAN LTD
Submitted in partial fulfillment of the requirement for the award of degree of Bachelor of Business Management of Christ
University, Bangalore-560029
By
Mr. WANRAPBOR KHARKONGOR (0911638)
Under the Guidance Of Mr. John Paul Raj
Department of Management Studies
Christ University, Bangalore-560029
2011-2012
Certificate
Certificate from the guide
Declaration
Acknowledgement
Table of contents
SL.
NO.
PARTICULARS
PAGE
NO.
I CHAPTER-1 Introduction:
1.1 Introduction to The Industry
1.2 Introduction to The Company
- - Nature of Business carried
- - Vision & Mission
- - Market share
- - Awards & Achievements
- Product range
II CHAPTER-2 Data Collection
III CHAPTER-3 Analysis of company
i) (i) SWOT Analysis of Sharekhan Ltd
ii) (ii) Interpretation through ratios
IV CHAPTER-4 Learning in the company
- Weekly reports
CONCLUSION
BIBLIOGRAPHY
ANNEXURE
CHAPTER 1:
INTRODUCTION
INTRODUCTION:
Topics such as Stocks, commodities, IPO’s, mutual funds have always fascinated me and have topped the list of my subjects of interest. The time we were informed about our SIP, at that moment itself I had decided that I would like to intern in a company that would be help me gain immense knowledge over these topics. As I had to learn about them all so only brokerage firm could fulfil all requirements. Sharekhan ltd, a firm with decades of experience in the field of exchanges proved out to be the one.
INTRODUCTION TO THE INDUSTRY
What is stock market?
A stock market or equity market is a public (a loose network of economic transactions,
not a physical facility or discrete) entity for the trading of company stock (shares)
and derivatives at an agreed price; these are securities listed on a stock exchange as well
as those only traded privately.
The size of the world stock market was estimated at about $36.6 trillion at the start of
October 2008. The total world derivatives market has been estimated at about
$791 trillion face or nominal value, 11 times the size of the entire world economy.
About the Indian stock marketIn India there are 23 stock exchanges of which the major ones are:
Bombay stock exchange(BSE)
National Stock Exchange(NSE)
BSE:- At the end of the American civil war, the brokers who thrived out of this war in
1874, found a place in a street, where they would easily assemble and transact business. This
street is nowadays, popularly known as DALAL STREET. In 1887, they formally established
in Bombay, and were known as “Native Shares and Stock Brokers Association”. In 1895, it
acquired a premise in the same street and finally was inaugurated in 1899 with the name
Bombay Stock Exchange (BSE).
India's premier stock exchange Bombay Stock Exchange (BSE) can also trace back its origin
to as far as 125 years when it started as a voluntary non-profit making association. You hear
about it any time it reaches a new high or a new low, and you also hear about it daily in
statements like 'The BSE Sensitive Index rose 5% today'. Obviously, stocks and stock
markets are important. Stocks of public limited companies are bought and sold at a stock
exchange. But what really are stock exchanges? Known also as News on the stock market
appears in different media every day. The stock market , a stock exchange is an organized
marketplace for securities (like stocks, bonds, options) featured by the centralization of
supply and demand for the transaction of orders by member brokers, for institutional and
individual investors. The exchange makes buying and selling easy. The need for stock
exchanges developed out of early trading activities in agricultural and other commodities.
During the middle Ages, traders found it easier to use credit that required supporting
documentation of drafts, notes and bills of exchange.
India's other major stock exchange National Stock Exchange (NSE), promoted by leading
financial institutions, was established in April 1993. Over the years, several stock exchanges
have been established in the major cities of India. There are now 23 recognised stock
exchanges — Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad,
Bangalore, Bhubhaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur,
Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut.
NSE: - With the liberalization of Indian economy it was found necessary to lift the Indian
stock markets on par with the international standards. The NSE was incorporated in 1992 by
industrial development bank of India, industrial credit and Investment Corporation of India,
industrial finance corporation of India, all insurance corporations, selected commercial banks
and others.
NSE is India’s leading stock exchange
covering more than 160 cities and towns
across the country. It provides the modern
fully computerized trading system
designed to offer investors across the
country a safe and easy way to invest to
liquidate investment and securities.
Investors in many areas of country did not
have the same access and opportunity to trade so there arise the need for setting up the
national stock exchange. The NSE network has been designed to provide equal access to
investors from anywhere in India and to be responsive to their needs.
On its recognition as a stock exchange under the Securities Contract Act, 1956 in April 1993,
NSE started operations in the Wholesale Debt Market (WDM) segment in June 1994. Capital
market (equities) segment commenced operations in November 1994, and operations in
derivative segment started in June 2000.NSE started trading in the capital market segment on
November3, 1994 and within one year became the largest exchange in India, in terms of
volumes transacted. During the year 2005-06 NSE reported, a turnover of Rs 1,569,556
crores in the equity segment.
The Indian retail brokerage market, which is going through a wonderful phase with high
growth rate. The total trading volume of the Indian brokerage companies stood at US$ 1239.1
billion in the year 2004, which increased to US$ 1492.1 billion in 2005. It is further expected
to reach US$ 6535.7 billion by the year 2015.
List of Top 10 Brokerage Firms in India
Top ten best stock brokers list of India
Sr. No. Name of Stock Broker
1 Sharekhan
2 Karvy
3 ICICI Direct
4 Motilal Oswal
5 Angel broking
6 Indiabulls
7 Religare
8 Geojit financial services
9 India infoline
10 Kotak securities
INTRODUCTION TO THE COMPANY:
Sharekhan ltd. is a retail broking arm of S.S Kantilal Ishwarlal Investors Services Pvt Ltd, an
organization with more than 8 decades of trust and credibility in the stock market. Sharekhan
Ltd (Formally SSKI Investors Services Pvt Ltd) was promoted by Mr.Shripal.SMorakhia and
Mr.Shreyas.SMorakhia. It is currently India’s largest broking house. It is a member of the
stock exchange, Mumbai. It is a depository participant of the NSDL and CDSL. Its business
includes stock broking, depository services, portfolio management and derivatives.
SSKI group also comprises institutional broking and corporate finance. While the
institutional broking division caters to the largest domestic and foreign institutional investors,
the corporate finance division focuses on niche areas such as infrastructure, Telecom and
media. SSKI holds a sizeable portion of the market in each of these segments.
As the forerunner of investment research in the India market, we provide the best research
coverage amongst broking houses in India. Our research team is rated as one of the best in the
country. Voted four times as the top domestic brokerage house by Asia money survey - SSKI
is consistently ranked amongst the top domestic brokerage houses in India.
Pioneers of online trading in India- Sharekhan.com was launched in 2000 and is now the
second most visited broking site in India.
NATURE OF BUSINESS CARRIED
Sharekhan is a stock broking company. The company offers a complete range of pre trade,
trade and post trade service on the BSE (Bombay stock exchange) and the NSE (National
stock exchange).
Whether the client come in to the company’s conventionally located offices and trade in a
dedicated environment or issue instructions over the phone, the highly trained team and
sophisticated equipment ensure smooth transactions and prompt service.
Investment Advisory service
Facilitation services to Retail Investors, Corporate.
Depository services
Investment options include:
Online trading (Includes equity, derivatives)
Commodities trading
Mutual funds
Portfolio management service
Operations:
Institutional broking
Investment Banking
Retail Broking
Through trading and settlement process the investor converted into the final product.
The clearing house of exchange may act as legal counter party to all dealers for all deals in
equity derivatives instruments on exchanges. Thus the both the parties to an equity
derivatives met either by the party itself or in the event of default on the part of the party, by
clearing corporation.
A client can trade only through a trading member of the exchange. A clearing member can
act as trading member. The process of trading is similar to screen based trading in securities
like shares on an exchange. The exchange introduced standardized contract where settlement
date, is specified by stock exchange and the client can enter into contracts with different
contract/ strike price.
In order to minimize the risk of failure parties to contract in full filling their respective
obligation under the contract, the Clearing Corporation/trading members. Margins are
required to be paid by clearing/trading members who in turn, collect margin from their
respective clients.
VISION, MISSION AND OBJECTIVES
VISION: “To be the best retail broking brand in the Indian equities market”
MISSION: “To educate and empower the individual investor to make better investment
decisions through quality advice and superior service”
OBJECTIVES:
To ensure satisfaction through teamwork and professional management
To provide good quality of services on a continuous basis to the satisfaction of clients.
To extend effective guidance to brokers, to clearing house Corporation, companies
and investor in E-Stock Trading.
To eliminate paper work and bring in front of electronic stock market in India.
QUALITY POLICY
“User friendly online trading facility”
PRODUCTS AND SERVICES PROFILE
Sharekhan is one of India's leading financial services companies. It provides a complete life-
cycle of investment solution in Equities, Derivatives, Commodities, IPO, Mutual Funds,
Depository Services, Portfolio Management Services and Insurance. Also offers personalized
wealth management services for High Net worth individuals. With a physical presence in
over 400 cities of India through more than 800 "Share Shops", and an online presence
through Sharekhan.com, India's premier online destination; it reaches out to more than
800,000 trading customers.
The product of Share khan can be broadly classified into three types suiting the clients
trading habit.
Three key products
IT –enabled call Center for servicing clients
Integrated Depository service/Demat account for transparency
Online fund transfer facility with HDFC, Citibank, GTB, IDBI Bank. Regular
banking facility with any bank in India.
Sharekhan also offers personalized research advice through Website, e-mail, SMS and
Messenger
Online products offered by Sharekhan are as follows:
1. CLASSIC ACCOUNT:
This account allows the client to the trade throughout
website and is suitable for the retail investors. Our online trading
website also comes with the Dial Trade service that enables you to
buy and sell shares by calling their dedicated toll free number.
2. SPEEDTRADE:
SPEEDTRADE is a next-generation online trading product that
brings the power of your broker’s terminal to your PC. It is ideal for
active traders who transact frequently during day’s trading session
capitalize on intra-day price movements. SPEEDTRADE is an
internet-based application available on a CD, which provides every-
thing a trader needs on one screen, thereby, reducing the required to execute a
trade. SPEEDTRADE has all the above-mentioned features with the power to trade in cash
and derivatives from a single screen.
SERVICES OFFERED BY SHAREKHAN
1. Trading Facilities:
Sharekhan as a member of NSE& BSE provides both offline and online trading facilities
nationwide for trading the securities in secondary market to its clients. The company’s wide
network of outlets spread across the country facilities to executive the orders in secondary
market.
2. Derivatives: (Futures and Options)
The company also facilitates the trading system for trading in secondary market under future
and options segment of NSE and BSE. The equity dealers in the company will be eager to
give insights into the new sets introduction in the Indian Capital Market futures and options.
3. Depository services:
Sharekhan is a Depository participant of National Securities Depository Limited and Central
Depository and Securities Limited.
Sharekhan will open De-mat accounts, which will investors to convert physical certificates of
shares into electronic balances in an account maintained.
4. Margin Financing:
In the present rolling settlement scenario, Sharekhan understand investor need for additional
capital availability for daily purchaser shares. It offers unique facility avail finance, for
purchasing shares at very competitive interest rates.
5. IPO’s and Mutual Funds:
Sharekhan offers the change of investing in the potentially lucrative IPO market. Sharekhan
is a distribution house for all mutual funds. This is the news scheme introduced by the
company and it also offers schemes catering to investors with varying risk return profiles.
6. Stock lending and Borrowing:
One can place an order of shares with Sharekhan. It is approved intermediary of the
security or lending scheme. These would be sent out the borrowers, these earnings fees for all
investors’ idle shares. Thus Sharekhan fulfil the investor need for borrowing and lending of
shares.
7. Equity Research:
Sharekhan has a highly rated research using involved in macroeconomic studies, industry and
company specific equity research. The research team’s inputs will be available as daily
trading calls, quarterly investment picks and long term investment picks, based on the
fundamentals of particular company and the industry as a whole.
8. Internet Trading:
Investors can also trade their securities through this facility by logging into company’s
website. The virtual world that Sharekhan offers online trading services through.
9. Portfolio Management Services:
Sharekhan securities are a registered portfolio manager with SEBI to manage portfolios on
behalf of clients with a discretionary and non discretionary right.
This service is a provision for those who may not have the time to manage their stock
investments or require the service of company’s highly specialized profession team.
10. Other Services:
Free access to investment advice from Share khan’s research team
“Sharekhan “Value line” (A monthly publication with review of recommendations
stocks to watch out)
Daily research reports and market review ( high noon and eagle eye)
Daily trading calls based technical analyses
Cool trading products ( Daring derivatives and market strategy)
Personalized advice
Live management information
Internet- Based online trading
Online BSE & NSE executions through BOLT & NEAT terminals).
AREA OF OPERATION OF SHAREKHAN
The area of operations of SHAREKHAN is spread over two countries. They are:
1. INDIA 2. UAE
The services are available through a network of 1437 Share shops spanning 170 major towns
and cities in the country along with an international branch in Dubai (UAE)
Growing retail network across
1120 franchisees
168 branches
325 cities
OWNERSHIP PATTERN AT SHAREKHAN
Major shareholders
Citi Venture Capital And Other Private Equity
Firms
60%
Barings Pvt. Equity Asia 23%
IDFC 6%
Employees 11%
Management Team
Mr. Tarun P. Shah. CEO.
Mr. Shankar Vailaya. Director-Operations.
Mr. JaideepArora. Director-Product and Technology.
Mr. Ketan Parekh. Chief Technology Officer.
COMPETITORS INFORMATION
The Indian retail brokerage market, which is going through a wonderful phase with high
growth rate expect the total trading volume of the Indian brokerage companies to reach US$
6535.7 billion by the year 2015 which stood at US$ 1239.1 billion in the year 2004, and US$
1492.1 billion in 2005.
Competitors for SHAREKHAN in India:
Name Kotak Securities Limited
Terminals 4320
Sub Brokers 910
No. of Employees 4008
No. of Branches 350
Name Karvy Stock Broking Limited
Terminals 1700
Sub Brokers 19000
No. of Employees 3910
No. of Branches 581
Name Indiabulls
Terminals 2876
Sub Brokers NA
No. of Employees 5873
No. of Branches 522
Name IL&FS Investmart Limited
Terminals 1644
Sub Brokers NA
No. of Employees 1900
No. of Branches 294
Name MotilalOswal Securities
Terminals 7923
Sub Brokers 890
No. of Employees 2193
No. of Branches 63
Name Reliance Money
Terminals 2428
Sub Brokers 1494
No. of Employees 2037
No. of Branches 142
Name India Infoline
Terminals 173
Sub Brokers 173
No. of Employees NA
No. of Branches 605
Name Angel Broking Limited
Terminals 5715
Sub Brokers NA
No. of Employees 284
No. of Branches NA
Name AnandRathi Securities Limited
Terminals 1527
Sub Brokers 320
No. of Employees 4566
No. of Branches 220
Name Geojit
Terminals 627
Sub Brokers 247
No. of Employees 343
No. of Branches 314
KARVY
KARVY, is premier integrated financial services provide, and ranked among the top five in
the country all its business segments, services over 16 million individual investors in various
capacities, and provide investor services to over 300 corporate, comparing the who is who of
corporate India. KARVY covers the entire spectrum of financial services such as Stock
broking, Depository Participants, Distribution of financial products – Mutual funds, Bonds,
Fixed Services, Merchant Banking & Corporate Finance, Placement of equity, IPO’s among
others. Karvy has various industrial segments.
KOTAK SECURITIES
Kotak Mahindra is one of India’s leading financial institutions, offering complete financial
solutions that encompass every sphere of life. From commercial banking, to stock broking to
mutual funds, to life insurance, to investment banking, the group caters to the financial needs
of individuals and corporate. The group has a net worth of around Rs. 2000 crore and the
AUM across the group is around 120 billion and employs over 6000 employees in its various
businesses. With a presence in 216 cities in India and offices New York, Landon, Dubai, and
Mauritius, it services a customer base of over 10,00,000. The group specializes in offering
top class financial services, catering to every segment of the industry.
INDIA INFOLINE:
The India Infoline Group comprises the holding the parent company, India Infoline Ltd owns
and manages the web properties www.indiainfoline.com and www.5paisa.com. It also
undertakes research, customized and off the shelf. Launched on 11 May 1999,
www.indiainfoline.com is India’s leading and most comprehensive business and financial
information website. The site provides quality information and analysis – earlier restricted to
a few people – to the common man, absolutely free.
INDIABULLS
The market capitalization of Indiabulls is around USD 1100 Million and consolidated net
worth of the company is around USD 725Million some of the large shareholders of Indiabulls
are the largest financial institutions of the worlds such as Fidelity Funds, Capital
international, Goldman Sachs, Merrill Lynch, Lloyd George and Feallon Capital. Revenue of
the company grew at a CAGR of 184% from FY06 to FY09 during the same period profit of
the co grow at a CAGR of 215%.
INFRASTRUCTURAL FACILITIES AT SHAREKHAN
Sharekhan outlets are designed to be places where retail investors can come in touch with
Investment opportunities in an atmosphere of convince and comfort. The look and feel of the
offices across India projects a consistent branch image for the company. The features that
enable a unique facility for retailing financial service include among others.
Business Focus: The main focus is Customer - Customer service, Customer education,
Customer support, Customer relations and last but not the least Customer acquisition.
Strong Product Basket: Specific products catering to each customer segment.
Training Sessions: Comprehensive 3 day training program & dedicated online platform
for ongoing training requirements.
Multi-Channel Access: SHAREKHAN serves its customers better via multiple channels.
Customized Retail Design: The office premises at all share shops have an invigorating
look, synonymous with its corporate identity.
Research-based Investment Advice: Access to all fundamental and technical research at
a real time basis.
Technology Infrastucture Support: Comprehensive & robust technology infrastructure
to run a fully automated back-office.
Pioneering Online Trading Systems: The customers can trade online, get news, research
and access to special reports through the company’s web portal www.sharekhan.com
Support: Dedicated support for various aspects of business including Equity sales, Risk
management, Business development and Operations. www.sharekhan.com
ACHIEVEMENTS AND AWARDS WON BY SHAREKHAN
Sharekhan, the retail broking arm of SSKI Group and one of the largest stock broking houses
in the country, has won the prestigious Awaaz Consumer Vote Awards 2005 for the Most
Preferred Stock Broking Brand in India, in the Investment Advisors category. This was
India’s largest Customer Study initiated by CNBC Awaaz and conducted by AC Nielson
covering 7000 respondents, 21 products and services across 21 major cities.
Rated among the top 20 wired companies along with RELIANCE, HLL, and INFOSYSetc.
by Business Today.
ORG Marg award by CNBC.
India internet World 2008 for the “Best Finance” site.
Sharekhans online trading and investment site www.sharekhan.com was launched in 2000.
Sharekhans ground network includes over 250 centers across 123 cities in India and having
around 120000 customers and an equal number of demat customers.
The reasons behind the preferences for brands were unveiled by examining the following:
Tangible features of product / service
Softer, intangible features like imagery, equity driving preference
Tactical measures such as promotional / pricing schemes
WORK FLOW MODEL
ONLINE DESK
CUSTOMER OVERVIEW
HOLDINGS & STATEMENTS
APPLICATION
TRADING THROUGH SHAREKHAN
SALES REP
PROCESSING
CALL DESK
GENERATION OF CLASSIC
PORTFOLIO ANALYSIS & RESEARCH
PAYMENT FOR INVESTMENT IN DP
The Service Delivery Model of SHAREKHAN is a blend of both tradition and technology.
The three main components of this model include:
1. SHARE SHOPS
All one has to do is walk into any of the 1200 share shops across 400 cities in India to get a
host of trading and investment related services. Our friendly customer service staff will also
help you with any account related queries you may have.
A Sharekhan outlet offers the following services:
Online BSE and NSE executions (through BOLT & NEAT terminals)
Free access to investment advice from Sharekhan's Research team
SharekhanValueLine (a monthly publication with reviews of recommendations,
stocks to watch out for etc)
Daily research reports and market review (High Noon & Eagle Eye)
Pre-market Report (Morning Cuppa)
Daily trading calls based on Technical Analysis
Cool trading products (Daring Derivatives and Market Strategy)
Personalized Advice
CUSTOMER SERVICERETURNS
Live Market Information
Depository Services: Demat & Remat Transactions
Derivatives Trading (Futures and Options)
Commodities Trading
IPOs & Mutual Funds Distribution
Internet-based Online Trading: SpeedTrade
2 .DIAL N TRADE
Free with your Sharekhan Trading Account, the Dial-n-Trade service enables the customer to
place orders for buying and selling shares through your telephone.
All the customer has to do is dial any one of the dedicated numbers (1-800-22-7050 or 1-800-
270-7050or 30307600), enter the TPIN number (which is provided at the time of opening
the account) and on authentication the customer will be directed to a telebroker who will
buy and sell shares for him.
Features of DIAL N TRADE
THREE dedicated numbers for placing orders with cell phone or landline. Toll free numbers:
1-800-22-7050 & 1800-270-7050. For people with difficulty in accessing the toll-free
number, we also have a Reliance number (Your Local STD Code) 30307600 which is
charged at as local number.
Simple and Secure Interactive Voice Response based system for authentication
No waiting time. Enter TPIN to be transferred to telebrokers
Trusted, professional advice of our telebrokers
After hours order placement facility between 8.30 am and 9.00 am
Reliable service, wherever the customer is.
3. ONLINE TRADING
The online trading model at sharekhan consists of a choice of three trading interfaces:
a. Trade tiger exe for active traders
b. Web based classic interface for investors
c. Web based applet – fast trade for investor
FUTURE GROWTH AND PROSPECTS.
Mergers and acquisitions: In the highly competitive and over crowded market,
shakeouts and bankruptcies of online brokers can be anticipated. The trend is towards
a gradual consolidation of retail investors to a few dominant players or partnerships.
Stock broking applications that provided services in various delivery modes, i.e.,
internet, WAP, palm pilots, pocket PCs etc will get more common as more and more
people start using these gadgets. Online broking would have a completely new
meaning in this scenario.
In a crowded stock broking industry, differentiation becomes the key to higher
revenues. Better service, straight through processing (STP), immediate execution,
portfolio services, investment advisors and telephone call centers or branch
investment offices are needed to retain customers and to increase the revenue base.
CHAPTER – 3
DATA COLLECTION:Data collection methods used:
The methods used for collection of data collection are both Primary methods as well as
Secondary methods of data collection. Primary data was collected through interview method
where i spoke and asked questions to the current employees and customers who have been
with the company for a long time.
Secondary data was collected mainly from the company website and some other sources.
CHAPTER – 4
ANALYSIS OF THE COMPANY
SWOT ANALYSIS
STRENGTHS:
Cost Advantage
Effective Communication
High Research and Development
Online Growth
Loyal Customers
Market Share Leadership
Pricing
Strong Brand Recall
Strong Financial Position
Growth of Technology and Awareness
Increased internet Usage
Nationwide reach to the masses
Unique products
Among the top 5 brokerage firms in the country
Strong reach to the masses
WEAKNESS:
Diseconomies
Not Diversified
Less Competitive
High Employee turnover
Less Small Investors
Labour not properly skilled
Infrastructure not upto the mark
OPPORTUNITIES:
Growth of Technology and Awareness
Increased internet Usage
Financial Markets (raise money through debt, etc.)
Product and service expansion
Penetration in developing prices
Increase in wealth
Positive market sentiments
Increase in awareness of people aboutstock market
THREATS:
Cheaper Technology
Economic Slowdown
External Charges (Government, politics, taxes, etc.)
Exchange rates fluctions
Price wars
SOLVING & ANALYSING RATIOS:
Current ratio:
Current ratio defines the ability of the firm to meet its current liabilities. The current
assets should be sufficient enough to meet the current liabilities. In the year 2007, it was
2:1 and in the year 2008 current ratio was 3.19:1. It is always beneficial considerably
high Current ratio. It is clear from the balance sheet that the firm has no difficulty in
meeting its short term liabilities. But the ideal current ratio is 2:1.
2008 2007
12.87/4.05 = 3.19:1 4.10/2.04 = 2:1
Debt equity ratio:
The DE ratio of the company has gone up from 1.13 to 1.7. in theory it is not acceptable
because it indicates the firm in incurring more long term debt.
2008 2007
53.89/31.62 = 1.7 29.74/26.42 = 1.13
Operating ratio:
It is the profit deducting tax to the total sales of the company. Thus, Operating profit
determines the profit made by the company because increased sales doesn’t necessarily
mean increases in profit. It has increased to 7.2 from 7.1.
2008 2007
19.01/2.64 = 7.2 6.82/0.96 = 7.1
Return on total equity:
It is the total ratio of PAT to the total share holder’s equity. It indicates the actual profit
made by the company(excluding the tax), which is made by the equity share holders.
Here preferential capital is not taken into consideration. Return on total equity has
been increasing on a regular basis. In the year 08 the Return on total equity raised to
0.55 from 0.26.
2008 2007
17.47/31.62= 0.55 6.77/26.42 = 0.26
Net profit ratio:
Net profit ratio = PBT to sales. Thus it depends on the total sales of the company. The
net profit ratio has decreased from 7.05 to 6.62. thus the profit has decreased
marginally.
2008 2007
17.47/2.64 = 6.62 6.77/0.96 = 7.05
Return on investment:
Every company’s profitability depends on the nature it achieves on the total investment
it makes. Thus returns on investment have to be considered to determine how well the
company is doing. The company’s return on investment has increased tremendously
from 25.81% to 60.12%.
2008 2007
19.01/31.62*100 = 60.12% 6.82/26.42*100= 25.81%
CHAPTER – 5 LEARNING IN THE COMPANY:
Learning in the companyI have learned alot of things when i worked in Sharekhan as an intern. Before I joined
Sharekhan i had very less knowledge the stock market and how it functions. I learned how
stocks and commodities are traded online and how online trading is carried about. I was
tought how to operate a software designed for online trading called ‘Trade Tiger’.
I learned how important being punctual to the office was. Interning at Sharekhan gave me an
experience of working in a very friendly work environment. All the employees treated me as
one of the employees and not as an intern or a student.
WEEKLY REPORTS:
Week: 5th April to 11th April
In the first week i was briefed about the company by my guide Mr. Srinivasu. He taught me
about the history of the company, what are the various products and services provided by
Sharekhan Ltd.
He also taught me about the various plans offered for opening a Demat Account. Mr
Srinivasu taught me about Trading and investing. I was also taught how to use the software
used by the company for trading which is known as the "Trade Tiger". I was then given a
target by Mr. Srinivasu to open five Demat Accounts by the end of the internship period.
Week: 12th April to 19th April
The Second Week was more of Field work than office work. I was sent out to open the
Demat accounts in order to meet my target. I had gone to college to meet a few of the
teachers who were interested in opening one. I was also sent to other places such as
Indiranagar, HSR layout, JP Nagar, etc. to obtain signatures of the interested clients. It was a
very good experience explaining to the clients about the Stock market, how it works, and so
on.
Week: 19th April to 25th April
The third week had more of Office work than field work. Detailed Information about the
company was given to me, and I was given time to sit in the office and work on my project.
The Manager of the branch told me to make feedback calls to the existing customers and to
get references for them. I made more than 300 calls and encountered various kinds of people.
While making these calls I found out how important these feedback calls are. Most of the
customers were unhappy with the fact that they had not receive more of these calls. I was able
to help solve their queries. Some of the customers were very disappointed with the services
provided by the agents from Sharekhan. I was also sent to White field to an existing
customer's house to open a new account.
Week: 3rd May to 9th May
In this week I most mostly sitting in the office and gathering more information for my
project. I had also went to meet a few customers in Jayanagar and JP Nagar and I was able to
open two Commodity accounts. i had visited college again this week to meet one of the
teachers regarding the Demat Account opening.
Week: 26th April to 2nd May
Sir,
In th the fourth week as well, I have done more of field work than office work. , I have spent
more in the market in analysing the customer’s behaviour towards the changing market
scenario. As the week started I was asked by our superior to get calls for the company, that is
I was suppose to convince people to get associated with the exchange market(to be specific
Sharekhan Ltd.). I visited around 150 to 200 shops covering areas such as Gandhinagar and
Avenue road on the broader side. It was a very new experience. It was very different from the
finance part of the internship as this was more of selling-‘’core selling’’. I experienced the
drawbacks that were faced by the salespersons and how tough their job really is. The biggest
advantage I had was that we came to know about the competitors of the firm and the
customised services that they offer to their various customers.
Newspaper analysis was also initiated from my side in order to know more about jargons of
the exchanges and the share market. Resistance and stop loss can be named as examples.
Moreover, I had visited the college again to convince teachers to open up trading accounts
with the company. It was indeed a fruitful experience.
In the coming week I shall be targeting to complete my target of account opening and will try
to continue and gain knowledge about Mutual Funds and IPO’s specifically. The company
has refused to provide the financials, as they prefer to keep it confidential. I am still trying to
get the required data from Sharekhan Ltd. for the completion of the project. I would be glad
to see a reply from your side regarding the report.
CONCLUSION:
ANNEXURE
Balance sheet
08-09 07-08Equity share capital 31.62 26.42Share application money 0.00 0.00Preference share capital 0.00 0.00Reserves & surplus 20.7 3.23Secured loans 1.37 0.09Unsecured loans 0.20 0.00Total 53.89 29.74Gross block 4.47 3.26Less : revaluation reserve 0.00 0.00Less : accumulated depreciation 3.76 2.94Net block 0.71 0.32Capital work-in-progress 0.00 0.00Investments 40.31 25.32Current assets, loans & advances 16.91 6.14Less : current liabilities & provisions 4.03 2.04Total net current assets 12.87 4.10Miscellaneous expenses not written 0.00 0.00Total 53.89 29.74Book value of unquoted investments 40.20 25.21Market value of quoted investments 0.16 0.16Contingent liabilities 3.5 0.00Number of equity sharesoutstanding (Lacs)
316.22 264.22
Profit loss account
IncomeParticulars
08-0907-08Operating income21.228.86ExpensesMaterial consumed0.000.00Manufacturing expenses 0.000.00Personnel expenses1.600.36Selling expenses0.120.02Adminstrative expenses0.920.58Expenses capitalised0.000.00Cost of sales2.640.96Operating profit18.587.90Other recurring income19.600.87Adjusted PBDIT19.608.77Financial expenses0.060.00Depreciation 0.521.94Other write offs0.000.00Adjusted PBT19.016.82Tax charges 1.540.05Adjusted PAT17.476.77Nonrecurring items0.000.00Other non cash adjustments0.000.00Reported net profit17.476.77Earnings before appropriation0.0817.40Equity dividend0.000.00Preference dividend0.000.00Dividend tax0.000.00Retained earnings0.0617.40