Angel Broking Ltd.

ORGANISATION STUDY ON nonsuch Broking Ltd. Sigra, Varanasi, Uttar Pradesh By Ashish Om (PB1104) & Jeswin George (PA1114) theme no 53 Submitted to UNIVERSITY OF MYSORE II SEMESTER INTERNSHIP ORGANIZATIONAL STUDY BATCH OF 2011 2013 Through Contents familiarity letter3 certificate FROM THE GUIDE5 security FROM THE GUIDE6 ACKNOWLEDGEMENTS8 Chapter 19 Industry Profile9 CHAPTER 213 COMPANY profile13 Business Branches of holy man Broking16 holy man base Consists of16 Our Vision20 Our Motto20 Our CRM Policy guest is King20 Business Philosophy paragon Broking20Quality Assurance Policy Angel Broking20 CHAPTER 321 ORGANISATIONAL HEIRARCHY21 CHAPTER 425 STUDY OF FUNCTIONAL DEPARTMENTS25 4. 1 military personnel RESOURCE DEPARTMENT26 4. 2 IT and Media29 4. 3 Marketing De theatrical rolement30 4. 4 Finance department31 CHAPTER 544 SWOT ANALYSIS44 CHAPTER 647 CONCLUSION & SUGGESTIONS47 CHAPTER 753 BIBLIOGRAPHY53 Company Letter Company Letter CERTIFICATE FROM THE GUIDE This is to ce rtify that this Internship continue on Organizational Study at Angel Broking Limited is a bonafide domain of Ashish Om, carried out(a) under my guidance and super deal. PLACE BANGALORE DATEProf. Y.Poornima CERTIFICATE FROM THE GUIDE This is to certify that this Internship Report on Organizational Study at Angel Broking Limited is a bonafide study of Jeswin George, carried out under my guidance and supervision. PLACE BANGALORE DATEProf. Y. Poornima DECLARATION We hereby decl atomic number 18 that this Internship Report on Organizational Study at ANGEL BROKING LIMITED submitted in partial fulfilment of the emergency for II Semester MBA Degree examinations 2012 of University of Mysore through Ramaiah Institute of instruction Studies is our original work and not submitted to any opposite university.This work has been do under the supervision of Dr Y. Poornima in Ramaiah Institute of Management Studies, Bangalore. Place Bangalore Date Ashish Om (11MB50 ) Jeswin George (11MB5071) ACKNOWLEDGEMENTS root of each(prenominal), we would identical to thank the Al top executivey God for bless(prenominal)ing us with the strength, aptitude and patience for successfully complete my internship and this report. I would like to thank my Faculty Guide, Prof. Y. Poornima for giving me the opportunity to work with her during my consider of f low of internship.I have been adequate to compile and complete this report in a comprehensive manner due to the guidance, support and rede that she has domiciliated me with during this period. I have tried my best to implement her constructive suggestions composition doing my report. I would everyplacely like to take this opportunity to thank the direction of Angel Broking. Ltd for providing the support to do this Internship. My sincere gratitude goes to Mr. G. N. Chowdry Manager and advisor Mines, Mr. Haroon Ahmed In charge Mines, Mr. Arshad Ahmad Deputy Chief Chemist, Mr.Farooq Ahmed Electric Engineer and to Mr. Shakeel A hmed In Charge Cement wonk for giving me time from their busy schedule, providing me with information that was required to complete the report, and for guiding me properly throughout the period of my internship. I would in like manner like to thank both the employees of Saifco Cements Pvt. Ltd. who have support me and co- take to the woodsd with me during my internship period. Fin entirelyy my sincere thank go to each and everyone who has helped and back up me signifi back toothtly in different stages during the period of my internship. Chapter 1 Industry ProfileTo recognize the truth securities industry and maintain and cope up with the growing competition from the confused online handicraft providers, Broking Company needs to find potential client and excessively target the sweet investors. The project is being done to train the citizenry some the whole function essential to open an online affair account yoke with demat account. The project will help in exploring the ara where there is the feasibility of acquiring to a greater extent sensitive investors. It would withal help in k todaying the divers(a) competitors of the industry and exploring the beas through which competitive advantage could be obtained. . 1 What is a store Market? A run marketplace or equity market is a public entity (a loose web of economic transactions, not a physical easiness or discrete entity) for the trading of party stock ( piece of lands) and derivatives at an agreed set these atomic number 18 securities listed on a stock exchange as substantially as those only traded common soldierly. The size of the proceedsman stock market was estimated at about $36. 6trillion at the beginning of October 2008. The issue forth world derivatives market has been estimated at about $791trillion face or nominal appreciate, 11 times the size of the unblemished world economy.The value of the derivatives market, because it is stated in bourninals of notional va lues, deposenot be directly compargond to a stock or a inflexible income security, which traditionally refers to an unquestionable value. Moreover, the vast studyity of derivatives cancel each other out (i. e. , a derivative bet on an solvent occurring is offset by a comparable derivative bet on the event not occurring). Many such relatively illiquid securities be valued as marked to model, rather than an actual market price.The stocks atomic number 18 listed and traded on stock exchanges which are entities of a corpo coincidencen or mutual agreement specialized in the trade of bringing buyers and sellers of the organic laws to a listing of stocks and securities together. The largest stock market in the linked States, by market pileusization, is the overbold York Stock Exchange (NYSE). In Canada, the largest stock market is the Toronto Stock Exchange. major European examples of stock exchanges hold the Amsterdam Stock Exchange, London Stock Exchange, Paris Bourse, and the Deutsche Borse (Frankfurt Stock Exchange).In Africa, examples include Nigerian Stock Exchange, JSE Limited, and so forth Asian examples include the Singapore Exchange, the Tokyo Stock Exchange, the Hong Kong Stock Exchange, the impress Stock Exchange, and the Bombay Stock Exchange. In Latin America, there are such exchanges as the BM&F Bovespa and the BMV. Market participants include separate retail investors, institutional investors such as mutual mo give noticeary resource, banks, insurance companies and evade bills, and also publicly traded corpo dimensionns trading in their admit lots.Some studies have suggested that institutional investors and corpo dimensionns trading in their own shares generally receive naughtyer risk-adjusted pass a foresighteds than retail investors. 1. 2 What is Stock Broking? The process of investing in the share market, either individually or through a broker is cognize as stock broking, in simple terms. This is primarily done by opening a Demat account. If done through a broker, he opens an account, helping you to operate through online stock broking facility. Going a maneuver the broker suggests investment ideas and strategies suiting individual requirements and keisterd on his objective of investment.Tenure of investment, the selected fiscal instruments and their respective companies, the schemes, the risk taking aptitude, the sum available for investment, all are considered while forming investment choices. After the meter is invested, the broker stingers and monitors the investments, changes or reinvests depending on the performance and generates reports for them. This entire process is known as stock broking. To understand the equity market and maintain and cope up with the growing competition from the various online trading providers, Broking caller-up needs to find potential customer and also target the pertly investors.The project is being done to train the people about the whole procedure essential to open an online trading account cope with with demat account. The project will help in exploring the area where there is the feasibility of acquiring more new investors. It would also help in knowing the various competitors of the industry and exploring the areas through which competitive advantage could be obtained. 1. 2 Who is a Stock Broker A stockbroker is a regulated professional individual, usually associated with a brokerage warm or broker-dealer, who buys and sells shares and other ecurities for two retail and institutional clients, through a stock exchange or over the counter, in withdraw for a fee or commission. Stockbrokers are known by numerous professional designations, depending on the clear they hold, the type of securities they sell, or the go they provide. In the United States, a stockbroker must pass some(prenominal) the series 7 and Series 63 exams in order to be licensed. In most English speaking venues, the two backchat term stock broker, like stock brokerage, usually applies to the brokerage warm, rather than to the individual. CHAPTER 2COMPANY PROFILE 2. 1 Angel Broking Limited Date of Establishment 1987 Market Cap Rs. 725 crore (January 27, 2006) Address G-1, Akruti Trade Center, pass No -7, MIDC, Andheri (E), Mumbai 400093 Branches Andhra Pradesh, Gujarat, New Delhi, Haryana, Karnataka, Maharashtra, Madhya Pradesh, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal Angel Broking provides retail related function encompassing Ebroking, enthronization Advisory, Portfolio Management operate, Wealth Management Services and Commodities duty. It is a member of Bombay Stock Exchange and National Stock Exchange.It is also a registered depository participant with CDSL. The fede dimensionn has a relaxed work atmosphere which thrives upon human values, co-ope symmetryn, depose and respect. It ensures career growth to its employees with ample introduction to business practices. It has employee friendly HR policies which giv es security and fair promotions. 2. 2 Insight into Angel Broking Angel Broking Limited is one of the leading and professionally managed stock broking tighten pertain in quality work and research. Angel Broking Limited is a corporal member of The Stock Exchange, Mumbai.The social rank of the companionship with The Stock Exchange Mumbai was originally in the name of Mukesh R. Gandhi, which was eventually turned into a corporate membership in the name of Angel Broking Limited. Angel Broking Limited is managed by Mr. Dinesh Thakkar and he is healthy supported by Mr. Mukesh Gandhi, a fifteen socio-economic classs veteran in the market. The con grade is vigorous supported by a professional and qualified research team and efficient ope balancens and back office team, which comprises of super dedicated and qualified individuals. Angel has an in- field, state of art research incision.Angel believes in reaching out to the customer at the farthest end rather than by reaching out to them. The company in its seek to give its client the best has opened up several branches all over Mumbai, which are efficiently integrated with the Head Office. Angel Broking Limited is primarily into retail stock broking, with a customer base of retail investors, which has been increasing at a compounded growth rate of 100% every course of study. The company has huge shekelswork sub-brokers in Mumbai and other places outside Mumbai, registered with SEBI, who act as chanel partners for the company.The company presently has a match staff strength of around 150 employees who are spread accordingly across the head office and all the branches. Angel has em queened its physical presence throughout India through various strategies which it has been adopting efficiently and effectively over a period of time, like opening up of branches at various places, tie-ups with various agencies and unprocessed sales agents, buy-outs of shrimpyer regional outfits and ap layerment of sub-br okers and franchisees. Moreover Angel has been tapping and including utmost net-worth and self-employed individuals it its vast adjust of clients.Angel has always strived in the direction of delivering ultimate client satisfaction and developing stronger bonds with its customers and chose partners. Angel has a vision to introduce new and innovative returns and serve regularly. Moreover Angel has been one among the pioneers to introduce the latest proficient innovations and integrate it efficiently within its business. Angel Brokings tryst with excellence in customer relations began in 1987. It has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India.With its unique retail-focused stock trading business model, Angel is committed to providing Real Value for Money to all its clients. The Angel root is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country NCDEX MCX. Angel is also registered as a Depository Participant with CDSL. Business Branches of Angel Broking * comeliness Trading * Commodities * Portfolio Management Services * Mutual Funds * Life Insurance * IPO * Depository Services * Investment AdvisoryAngel Group Consists of * Angel Broking Ltd. * Angel Commodities Broking Ltd. * Angel Securities Ltd. 2. 3 The Management Angel Broking Mr. Dinesh Thakkar Founder death chair Managing managing director The Angel Group of Companies was brought to life by Mr. Dinesh Thakkar. He ventured into stock trading with an intention to displace great(p) for his own independent enterprise. However, he recognized the opportunity offered by the stock market to dish out individual investors. Thus Indias first retail-focused stock-broking house was established in 1987.Under his leadership, Angel became the first broking house to embrace new applied science for faster, more effective and affordable operate to retail investors. Mr. Thakkar is valued for his correspondence of the economy and the stock-market. The print and electronic media often seek his views on the market trend as well as investment strategies. Mr. Lalit Thakkar Director Research Mr. Lalit Thakkar is the motivating rive behind Angels highly acclaimed Research team. Hes been a part of the senior guidance team since the Angel Groups inception.His technological and fundamental outlook has provided impetus to Angels market research team. Research-establish change advisory benefits are Angels forte, and Mr. Lalit Thakkar has undoubtedly been the brain behind it. When it comes to analyzing the market, Mr. Lalit Thakkar is truly a genius. His hands-on experience and fundamental familiarity of the market can predict the market trend early. His views on the market trend are often quoted in the print and electronic media Mr. Amit Majumdar Chief Strategy officer A chartered Accountant by qualification, Mr.Amit Majumdar is a primal member of Angels strategica l decision-making process. He has been with the group since August 2004. He has handled several functions of the group like finance and ope symmetryns, to name a few. He has rich experience in finance, investment banking, treasury, consultancy and advisory divine services. Mr. Majumdar has led many successful initiatives for the group. in the first place joining the Angel Group, Mr. Majumdar has been associated with Rabo India Finance, Ambit Corporate Finance and Ernst Young. Mr. Sachin Joshi decision declarer Director CFO Mr.Sachin R Joshi brings with him over 19 years of experience handling strategic positions in Business trading opeproportionns Finance. He also has hands-on experience in Resource Raising, Strategic Planning, Business Restructuring, Public Listing (Local/ International), etc A rent a Cost Accountant by qualification, Sachin is also a post graduate in fairness and has completed a one year Certificate Program (BLP II) from IIM (Kolkatta). He has been asso ciated with reputed loadeds such as Navneet Group of Companies, Lupin Laboratories Ltd and Infra anatomical structure Leasing monetary Services Ltd. (ILFS).His last assignment which brushned over 11 years was with ILFS Invest smart Group where he worked in various capacities such as Chief monetary Officer, Executive Director- Finance Ope balancens and Chief Operating Officer Mr. Vinay Agrawal Executive Director honor Broking Mr. Vinay Agrawal leads the Equity Broking business at Angel, which comprises Business Development, Opeproportionns, product Development and E-broking initiative. He is actively involved in exploring new ways to adopt engineering for business enhancement.A Chartered Accountant by qualification, Mr. Agrawal began his career with the Angel Group as Finance and Ope symmetryns Consultant, and since and then hes quickly climbed up the corporate ladder. Mr. Nikhil Daxini Executive Director gross sales and Marketing With an MBA in finance, Mr. Nikhil Daxi ni has been instrumental in introducing the concept of professional marketing of broking services at Angel. His area of focus is Business Development, Risk Management and Operations. Mr. Daxini has immense experience in the marketing of fiscal products and services. He has been associated with HDFC Bank Ltd. n the past. Mr. Mudit Kulshreshtha Executive Director Business Intelligence Analytics Mr. Mudit Kulshreshtha heads the advance analytics and strategic business intelligence division at Angel. With a Bachelors degree in plan and PhD in Economics, Mr. Mudit Kulshreshtha has more than 12 years experience in the field of strategy and business consulting. He has been associated with reputed consulting faithfuls like Deloitte Consulting India, Ernst and Young, Arthur Andersen and WNS Global. He has advised several big clients in the U. S. and U. K.He is also a known talker at public seminars and conferences organised by CII, NASSCOM, Indian School of Business and IIT. Mr. Santa nu Syam Executive Director Operations Mr. Syam brings with him over 18 years of experience in the field of Transaction Banking, Wholesale Banking, Treasury Banking, Consumer Banking and CBS. He tipted his career with ANZ Grindlays Bank and he was also associated with Standard Chartered Bank in India as Director Transactional Head Banking. Mr. Syam followed up his Engineering degree with an MBA. He has also attended Banking Technology seminars organised by SCB Singapore, BSE India Euro Finance. - 2. 4 KEY DEVELOPMENTS FOR ANGEL BROKING LTD. Angel Broking Ltd. to Invest INR 300 Million in Financial Year 2010 Angel Broking Ltd. Announced that it is planning to invest around INR 300 million this financial year for expanding its branch network. The company is looking to invest around INR 250-300 million in this financial year for expanding its network by 50 branches. The investment is in line with expansion strategy which sees huge potential in the desire term.Under its expansion plans, the company would focus on few areas in the northern and southern regions including Punjab, Haryana, New Delhi, Tamil Nadu and Karnataka. The starchy is also eying to tap semi-urban pockets which have huge investment potential. Angel Broking In dialog To Raise Funds Angel Broking Ltd. plans to finalize INR 2 cardinal INR 2. 5 billion fund pinnacle plans in the midst of December 2009 and March 2010. Dinesh Thakkar, Angel Brokings CMD said, We are got active involution from the US and UK-based institutions. We are open to diluting a significant stake. He did not reveal the valuations, because discussions were still in a preliminary exam stage. Angel Broking Ltd. Announces Executive Appointments Angel Broking Ltd. announced four key-appointments for its domestic operations. Hitungshu Debnath has been appointed as the head of its scattering wealth wariness services while Mudit Kulshreshtha will take over as the head of strategic business intelligence and advanced analyt ics initiatives. The company has also named Adil Kasad as the Chief Financial Officer (CFO) and Santanu Syam as head of retail operations across all business verticals. 2. Angel Broking Credentials Our Vision To provide best value for money to investors through innovative products, trading/investments strategies, state of the art technology and individualize service. Our Motto To have complete harmony between quality-in-process and continuous improvement to deliver exceptional service that will delight our Customers and Clients. Our CRM Policy Customer is King A Customer is the most Important visitor on our premises. He is not dependent on us, only we are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business.He is part of it. We are not doing him a party favor by serving him. He is doing us a favour by giving us an opportunity to do so. Mahatma Gandhi Business Philosophy Angel Broking Ethical practices trans parentness in all our dealings Customers amuse preceding(prenominal) our own Always deliver what we promise utile salute management Quality Assurance Policy Angel Broking We are committed to providing world-class products and services which exceed the expectations of our customers, handd by teamwork and a process of continuous improvement.CHAPTER 3 ORGANISATIONAL HEIRARCHY 3. 1 ORGANISATIONAL CHART 3. 2 Product Profile A product profile is an outline of the description of a product. The amount of detail contained in it varies with the style of the information sheet. It is not a specification sheet. It is a general description of the various products and services offered by a particular company or stiff. This one is rather detailed, scarcely note the conflict between this and the Specifications detail. The following products are offered by Angel Broking in the process of its functioning * Equity Trading Commodity Trading * Mutual funds promotion * Depository services * Margi n Financing * NRI-Desk Management proximity to stock exchanges and banks. Equity Trading For the first time Angel Broking investing commodity the power to be associated with the elite dealing rooms and freedom to execute trade on their own. That is one whitethorn trade from their branches or trade own over the net and with that expertise and assistance. Depository Services Angel Broking is among the few major Depository Participants holding securities worth more than Rs. 6000 crore under its management .RSL provides depository services investors as a depository participant with NSDL and CDSL. 16 Commodity Trading Commodities are a word originated from the French word commodity meansbenefit lolly. Angel commodities Limited is a member of both the exchange (MCX NCDEX)that allows trading in all the commodities traded at both the exchange . Atpresent, trading in commodities is restricted to futures contracts only. Benefits of Commodity Trading To investors Investors always look for alt ernative investments avenues where they can diversify their funds to achieve their financial goals.In financial market, commodities have rapidly emerged as a major investment tool as they help in diversifying investments and to hedge against inflation, greatest threat to any investor. MUTUAL FUNDS SERVICES Angel Broking is also promoting mutual funds of all companies. CORPORATE ADVISORY GROUP Corporate advisory group provides various solutions to corporate banks and financial institutions son the management of debit, equity and investments. The service extends from advising client to earn upper limit wampum by investing through selected covers like MF/PMF etc.PORTFOLIO MANAGEMENT SYSTEM Portfolio management services manage clients wealth more efficiently withers risk by diversifying across assets, sectors and funds, and maximizing returns at managed takes of risk . This service could also be called as transparent collective investments. coronation BROKING DIVISION Angel Broking provides innovative, integrated and best fit solutions to theircorporate customers, it is continuous endeavour to provide value enhancement through diverse financial solution on an on- expiry basis, through products like corporate debt , private equity , IPO, ECB, FCCB, GDR/ADR etc.CHAPTER 4 STUDY OF FUNCTIONAL DEPARTMENTS - 4. 1 HUMAN RESOURCE DEPARTMENT Work burnish At Angel, exploring of new paths to provide the best value to all our internal and external customers is carried out. Angel Broking considers people as their biggest asset and believes in creating long term relationships by nurturing talent from within. A fast-growing, forward-looking organization like Angel, demands HR to be a key responsibility area of our core management team.The HR team constantly explores ways to enhance and augment the knowledge base and productivity of all Angels by providing various learning and development Programs. The three tier leading Development program helps all star performers to gr ow and develop their managerial skills to become effective mentors for their teams and thereby take on the next level of responsibility effectively. Angels is a winning team of highly determined, motivated, and adaptable people, all work(a)s diligently to take Angels exciting success story forward.HR Philosophy At Angel, People come first. on with the customers, the employees are meetly vital to the organization. The Business of HR is to foster an entrepreneurial spirit whereby Angels can operate with ownership as an entrepreneur (profit center) within the confines of their business sector enjoyment and earn over and above their fixed salaries. Angel believes in inculcating a palpate of responsibility and ownership in all Angels which brings out the entrepreneurial zeal to explore potential within as well as beyond job boundaries.Our HR Philosophy is to engage employees at professional, emotional and material levels * We aim to draw an environment contributive to both per sonal and professional development of the employees, leading to a productive and happy work force * Angel believes that people impact business and therefore each and every Angel is a key resource and a valuable asset * Our business philosophy of being transparent in all our dealings with our customers, is stirly applicable in dealings with employees * We encourage initiative, provide professional freedom and authorize Angels based on trust Employee EngagementTeam HR at Angel works effectively to create a work environment and performance culture that fosters team spirit and enhances employee productivity through motivation and substantiating ambition. * Our HR team is continually working to rationalize and restructure measures to ensure emend employee relationship management, employee talk theory and relations, recruitment and train need summary program design and implementation, performance evaluation and other work-life initiatives. action Management Core essence of Perfor mance Management framesThe core essence of premenstrual syndrome is to build and modulate the team members Connect with Angel Broking through * Enrolling the team member to Angels vision * Meaningful engagement * Meaningful dialogue * Openness to give and receive feedback * Compliment achievements * localize on the team members growth to enhance performance The whole focus of PMS is to look for goodness in a person. The onus is on the managers to look for that goodness, identify strengths and try to create a role around strengths rather than getting bogged down with weaknesses.The Performance Management System at Angel has reduced manual intervention to a minimal level. The fully integrated online system uses forward-looking tools such as national and regional stack ranking, performance bands and rank based recommendations. All this is supported through one-on-one interactive feedback & coaching session with team. Performance recognises are received for exceptional expected t argets and there are equal opportunities for all employees to earn rewards with no upper limits. Performance realisation structures have been worked out differently for various categories of employees.Career Why you should anyone work with Angel Broking? * Fast paced, enriching career with vulnerability to best business practices * Fair compensation & opportunities for growth / promotion based on merit * vibrant work culture and opportunities for training, recreation and social interaction * Progressive HR policies with an open door rise and proactive processes to maintain high morale * Security of employment, subject to minimum acceptable performance Leadership Academy Learning is a continuous process at Angel Broking.We identify the strengths of employees and design training programs to build their strong points and overcome their shortcomings. We prepare our employees for future positions with training and by encouraging the learning process. This helps them to consort toward s their career objectives efficiently. We also employ various people development initiatives like E-learning opportunities for functional & behavioural skills through video conferences and through our employee portal. Our E Wise Be wise Program provides every Angel with 247 access to all relevant information about Angel.This encourages employees at all levels to upgrade their knowledge constantly and apply their learnings in the day to day work to achieve high productivity and customer satisfaction levels. 4. 2 IT and Media The rapid innovation in the field of information and communication technology has posed serious challenges for the stock broking industry in India. The use and application of information technology in wide variety of insurers operations has now become strategic in the sense that it has direct impact on the productivity of resources, and a sweeping impact on bring down the pillow slip of various activities.With the arrival of private brokers, the competition ha s become more intense and an important role is being played by the stock broking sector. Angel Broking has been maintaining a proper Management Information System for the proper preserve of the information of all types available to them. This helps them to assess the information and analyse it for any strain of priority requirements. For any technology related worrys that needs to be fixed, Angel Broking takes a time span which is dependent on the severity of the problem. It takes around a day or a weeks time to get the technology fixed if it is a olive-sized problem.Employees at the IT department get it terminate at the earliest and avoid turbulence which enhances a smooth melt of activities in the organization. At Angel Broking, the impact of Information Technology can be seen in the other departments also Marketing department In this department IT has facilitated the marketing executives to up sale the business and meet the business delegates with new technology and feature s of the their business. Finance Department Angel Broking uses computerized accounting system which has reinforced the department to work with accuracy and reliability. military personnel resource departmentThe human resource department at Angel Broking also uses information technology to maintain databases of information regarding the employees working in the organization and their details. Since Angel Broking is basically a stock broking squiffy, they broadly speaking concentrate on Press releases, Events and very few TV commercial Ads. 4. 3 Marketing Department The meaning of marketing has changed with the passage of time. In the modern times, the concept of marketing has been changed entirely due to trigger-happy competition. Markets are no longer local but they have become national as well as international in character.In the past marketing was often referred as selling but now it has been realized that marketing is different from selling. Marketing department takes care of the marketing of all the products of the company. It helps in the extend of the business. It plays the major role in making the people aware of their product. It concentrates on making the strategies of how to increase the sales of the products. How they can segment the market to tap out its maximum potential cyberspace. It also works on sales promotion to increase the sales of company. According to J. F.Pyle, Marketing is that phase of business activity through which human wants are satisfied by exchange of goods and services. Also marketing is the process of discovering and translating consumer wants into products and services specifications. Marketing differs in between products and service based organizations. As in manufacturing firms there is a product but in service-based organization the marketing has to be done of an intangible liaison. In the Marketing department, we were devoted the opportunity to learn new things by observing and interacting with the Marketing team ofthe company.I was involved with creating Product Invoice, recording and tracking the sales call from the distribution channel, analysing some sales figures of the company, and taking feedback and complaints from the customers via telephone and e-mail while working in the Customer Service Department. 4. 4 Finance Department This department keeps the proper track record of all the transactions taking place. It maintains the record of all the broking being carried out in our office. ratio analysis of financial statements It is a systematic use of ratios to interpret/ assess the performance and status of the firm. A ratio chates a mathematical relation between two quantities. * Ratios are tools providing us which clues and symptoms of underlying conditions. Ratios can help us to identify areas requiring further investigation. * The usefulness of ratio depends on the quality of the numbers in their calculation. That is our ability to draw useful insights and shake valid intercompany comparisons is enhanced by our skill in adjusting account numbers prior to inclusion in these analyses. * Ratios are interpretable only in comparison with 1) antecedent ratios 2) Predetermined standards. 3) Ratios of competitors.Ratio analysis of a firms financial statements is of involvement to shareholders, acknowledgmentors, and the firms management. Stockholders are careed in the firms up-to-date and future level of risk and return, which directly modify the stock price. The firms creditors are primarily interested in the short-term liquidness of the company and in its ability to make interest and principal hires. Internal management is concerned with all aspects of the firms financial performance. Therefore, they attempt to produce financial ratios that will be considered favorable to both owners and creditors.Additionally, management uses ratios to monitor the firms performance from period to period. Unexpected changes or variances are identified to assign developin g problem areas. IMPORTANCE OF RATIO ANALYSIS Ratio analysis does two things, immediately. The first thing is it allows the company to compare itself with other like companies. If management feels things arent going well, they can help pinpoint the problem through comparing their ratios with other companies. They may have several ratios that are comparable, but a couple which are way off. That might be where the problem is.Also, ratio analysis may help by comparing your company with prior periods. If a particular ratio is declining when it would be burst if it were staying the same or increasing, then again looking at the ratios are important to find out where the problem lies. Ratios are important to spot trends easily. Types of ratios Ratios can be classified into six broad groups 1. Liquidity ratios 2. hood structure/ leverage ratios 3. Profitability ratios 4. Activity/ dexterity ratios 5. Integrated analysis of ratios 6. Growth ratios. 1. Liquidity Ratios It is the ability of a firm to satisfy its short- term obligations as they become due.The importance of adequate liquidity in the sense of the ability of a firm to meet on-line(prenominal) / short term obligations when they become due for payment can hardly be overstressed. a) latest Ratio menstruum Ratio is the ratio between topical Assets and accredited Liabilities. It calculated by dividing stream Assets by Current Liabilities. Current assets include all assets, which can convert easily into near money within a year. Current assets include bullion in hand, hard cash at bank, debtors, stock, and money at short or call notice etc. Current liabilities are the sum of all hort-term payables within a year, which include mixed Creditors, Bills payable, Bank overdraft, Expenses outstanding etc. the current ratio of a firm measures its short term solvency that is, its ability to meet short-term obligations. As a measure of short-term current financial liquidity, it indicates the amount of current as sets available for each amount of current liability. Formula for finding current ratio is given below. Current Ratio = Current Assets/Current Liabilities Current Ratio = Current Assets/Current Liabilities Significance of the ratio Current ratio provides a marge of safety to the creditors.In a sound business, a current ratio of 21 is considered an ideal one. Current ratio indicates firms ability to pay its current liabilities, i. e. day-to-day financial obligation. Current ratio is an index of the firms financial stability i. e. , an index of technical solvency and an index of the strength of working capital, which means excess of current assets over current liabilities. Higher ratio more than 21 indicates sound solvency position. Lower ratio less then 21 indicates inadequate working capital. b) riotous ratio nimble ratio is also known as liquid ratio or panelling test ratio. prompt ratio shows the liquidity of the business. degraded ratio is the ratio between quick assets and q uick liabilities. The term quick asset refers to current assets, which can be reborn into, cash immediately or at a short notice without diminution of value. Quick assets comprise of all current assets minus stock and pre paid expenses. The formula to find quick ratio is as follows. Quick Assets = Current assets (Stock + Prepaid expenses) Quick Assets = Current assets (Stock + Prepaid expenses) Quick liabilities comprises of all current liabilities minus Bank over draft.Quick Ratio = Quick assets / Quick Liabilities Quick Ratio = Quick assets / Quick Liabilities The formula is shown below Quick Ratio = Quick assets/Current Liabilities Quick Ratio = Quick assets/Current Liabilities Significance of the ratio It is the true test of business solvency. Generally an acid test ratio of 11 considered as equal, by that a firm can easily meet all current claims. Higher ratio more than 11 indicates sound and good financial position. If the ratio is less then 11, that is, liquid assets are less than current liabilities, the financial position of the concern shall be deemed to be unsound.This ratio gives a picture of firms ability to meet its short-term debts out of short-term assets. If less the quick ratio, higher the relative incidence of armoury in inflating the current ratio and higher is quick ratio, the incidence of inventory in inflating the current ratio is less. c) Net working capital Working capital is the lifeblood of the business. Working capital refers to that part of the firms capital, which is used for financing short term or current assets, such as, cash, marketable securities, debtors, inventories, bills receivables etc. n a narrow sense, the term working capital refers to the net working capital. Net working capital is the excess of current assets over current liabilities. Net working capital = Current assets Current liabilities Net working capital = Current assets Current liabilities d) Turnover ratios It measures the speed with which various ac counts /assets are born-again into sales or cash. It is concerned with measuring the efficiency in asset management. These ratios are also called efficiency ratios or asset utilization ratios. The liquidity ratios mentioned above are related to the liquidity of a firm as a whole.Another way of examining the liquidity is to determine how quickly certain current assets are converted into cash. The ratios to measure these are referred to as turnover ratio. The three relevant turnover ratios are, 1. Inventory turnover ratio This ratio is also known as stock velocity. This ratio calculated to consider the adequacy of the quantum of capital and its justification for investing in inventory. A firm must have reasonable stock in comparison to sales. It is the ratio of cost of sales and average inventory. This ratio helps the finance manager to evaluate inventory policy.This ratio reveals the number of times finished Inventory turnover Ratio = Cost of sales/ mean(a) inventory Inventory turno ver Ratio = Cost of sales/ fair(a) inventory 2. Debtors turnover ratio Debtors turnover ratio is also called Debtors velocity or Receivables turnover. A firm sells goods on credit and basis. When the firm extends its customers, script debts are created in the firms account. Debtors are expected to convert into cash over a short period, so it included in current assets. Debtors include the amount of bills receivables and book debts at the end of accounting period.It is a test to understand the reasonable quantitative relationship between outstanding receivables and sales. Financial analysts employ two ratios to judge the quality or liquidity of the Debtors turnover and Average collection period. Debtors turnover is tack together by dividing total sales by heterogeneous debtors. Formula to find debtors turnover ratio is given below Debtors turnover = add sales/Sundry debtors Debtors turnover = Total sales/Sundry debtors 3. Creditors turnover ratio It is a ratio between net credit p urchases and the average amount of creditors outstanding during the year.It is calculated as follows Creditors turnover ratio= net credit purchases / average creditors Creditors turnover ratio= net credit purchases / average creditors Net credit purchases= realise credit purchases returns to suppliers Net credit purchases= gross credit purchases returns to suppliers Average creditors= average of creditors (including bills payable) outstanding at the beginning and at the end of the year Average creditors= average of creditors (including bills payable) outstanding at the beginning and at the end of the yearA low turnover ratio reflects liberal credit terms granted by suppliers, while a high ratio shows that accounts are to be settled rapidly. The creditors turnover ratio is an important tool of analysis as a firm can reduce its requirement of current assets by relying on suppliers credit. The extent to which trade creditors are willing to wait for payment can be approximated by th e creditors turnover ratio. Defensive Interval Ratios It is the ratio between quick assets and project day by day cash requirement. Defensive interval ratios = Liquid assets /projected daily cash requirementDefensive interval ratios = Liquid assets /projected daily cash requirement Projected daily cash requirement=projected cash operating phthisis/number of days in a year Projected daily cash requirement=projected cash operating expenditure/number of days in a year Cash blend From Operations Ratio Cash flow from operations ratio= Cash flow from operations/ current liabilities Cash flow from operations ratio= Cash flow from operations/ current liabilities This ratio measures liquidity of a firm by comparing actual cash flows from operations with current liability. It is calculated as per equationBeing a cash measure, the ratio does not encounter the problems of actual convertibility of current assets and the need for maintaining minimum levels of these assets. In general, the h igher the ratio, the better is a firm from the point of view of liquidity. 2. CAPITAL STRUCTURE /LEVERAGE RATIOS The long term lenders/creditors would judge the soundness of a firm on the basis of the long term financial strength measured in terms of its ability to pay the interest regularly as well as repay the installment of the principal on due dates or in one pompousness sum at the time of maturity.The long term solvency of a firm can be examined by using leverage or capital structure ratios. It may be defined as financial ratios which throw light on the long term solvency of a firm as reflected in its ability to assure the long term lenders with regard to (1) Periodic payment of interest during the period of the loan and (2) quittance of principal on maturity or in predetermined installments at due dates Ratios based on relationship between borrowed funds and owner capital A. Debt equity ratioThe financing of total assets of a business concern is done by owners equity as well as outsiders debts. The relationship between borrowed funds and owners capital is a usual measure of long-term financial solvency of a firm. The relationship is shown by the debt equity ratio. This ratio indicates the relative proportions of debts and equity in financing the assets of a firm the formula we use is Total long-term debts by Shareholders fund. Total long-term debts include mortgage loans, long term loans debentures etc. hare holders fund includes discernment share holders, Equity share holders, capital reserve, revenue reserve etc. Debt equity ratio = Total long term funds/Share holders fund Debt equity ratio = Total long term funds/Share holders fund Significance of the ratio Acceptable norm for this ratio is considered to be 21. A higher debt-equity ratio is allowed in the case of capital-intensive industries, a norm of 41 is used for fertilizer and cement units and a norm of 61 is used for shipping units. A high ratio shows that the claims of creditors are greate r han that of owners. A very high ratio is unfavourable from the firms point of view. A high debt company, also known as highly leveraged or geared, is able to borrow funds on very restrictive terms and conditions. A low debt-equity ratio implies greater claim of owners then creditors. From the point of view of creditors, it represents a satisfactory capital structure of the business since a high proportion of equity provides a larger circumference of safety for them. This ratio shows the extent to which debt financing is used in the business. Debt assets ratioAnother approach to calculating the debt to capital ratio is to relate the total debt to the total assets of the firm. The total debt of the firm comprises long- term debt plus current liabilities. The total assets consist of permanent capital plus current liabilities. Thus, Debt to total assets/capital ratio= total debt/ total assets Debt to total assets/capital ratio= total debt/ total assets c) Equity assets ratio Still an other variant of the debt/equity ratio is to relate the owners/proprietors funds with total assets. This is called the proprietary ratio.The ratio indicates the proportion of total assets financed by owners. Symbolically, it is equal to copyrighted ratio = Proprietors funds / total assets x 100 Proprietary ratio = Proprietors funds / total assets x 100 Proprietary Fund to intractable Assets Proprietary ratio relates shareholders funds to total assets. It is a variant of debt equity ratio. This ratio shows long term or future of the business. It calculated by dividing shareholders funds by the total assets. Proprietary ratio = shareholders funds/ Fixed assets Proprietary ratio = shareholders funds/ Fixed assets Preference share capital and equity share capital plus all reserves and surplus items are called shareholders fund. Total assets include all assets including goodwill. Significance of the ratio The acceptable norm for the ratio is 1 3. The ratio shows the general strength of the company. It is very important to creditors as it helps to find out the proportion of shareholders funds in the total assets used in the business. Higher ratio indicates a secured position to creditors and a low ratio indicates greater risk to creditors. Proprietary ratio is also analysis in the following manner Ratio of current assets to proprietors fundsIt shows the relationship between current assets and Shareholders funds. The purpose of this ratio is to calculate the percentage of shareholders funds invested in current assets. It found by dividing current assets by proprietors funds. Significance of the ratio This ratio can be expressed in percentage or as a proportion. Different industries are using different norms and hence the ratio should be carefully used. c) Coverage ratios It measures the firms ability to pay certain fixed charges. These ratios are computed from information available in the profit and loss account.For a normal firm, in the ordinary course of business , the claims of creditors are not met out of the sale proceeds of the permanent assets of the firm. The obligations of a firm are normally met out of the earning or operating profits. 1. Interest insurance coverage ratio It measures the firms ability to make contractual interest payments. Interest coverage = EBIT / interest Interest coverage = EBIT / interest It is also known as time-interest- earned ratio. This ratio measures the debt servicing capacity of a firm insofar as fixed interest on long term loan is concerned.It is determined by dividing the operating profits or earnings before interest and taxes by the fixed interest charges on loans. 2. Dividend coverage ratio It measures the ability of a firm to pay dividend on preference shares which carry a stated rate of return. This ratio is the ratio of net profits later on taxes and the amount of preference dividend. Thus, Dividend coverage ratio = eat up/ PREFERENCE DIVIDEND Dividend coverage ratio = EAT/ PREFERENCE DIVIDEND 3. Total fixed charges coverage ratio It measures the firms ability to meet all fixed payment obligations.The total coverage ratio has a wider scope and takes into account all the committed fixed obligations of a firm, that is, 1) Interest on loan 2) Preference dividend 3) Lease payments 4) Repayment of principal Symbolically, Total fixed charges coverage ratio = EBIT + Lease payment/ interest + lease payment + (preference dividend + installment of principal) / (1-t) Total fixed charges coverage ratio = EBIT + Lease payment/ interest + lease payment + (preference dividend + installment of principal) / (1-t) . Cash flow coverage ratio Total cash flow coverage = EBIT+ lease payments + depreciation + non-cash expenses / lease payment + interest + (principal repayment)/(1-t) + (preference dividend)/ (1-t) Total cash flow coverage = EBIT+ lease payments + depreciation + non-cash expenses / lease payment + interest + (principal repayment)/(1-t) + (preference dividend)/ (1-t) The overall a bility of a firm to service outside liabilities is truly reflected in the total cash flow coverage ratio the higher the coverage, the better is the ability 5. Debt services coverage ratioDebt service capability is the ability of a firm to make the contractual payments required on a scheduled basis over the life of the debt. It is considered a more comprehensive and apt measure to compute debt service capacity of a business firm. It provides the value in terms of the number of times the total debt service obligations consisting of interest and repayment of principal in installments are covered by the total operating funds available afterwards the payment of taxes Earnings after taxes, EAT + interest + depreciation + other non cash expenditure like amortization. 3.Profitability ratios The profitability of a firm can be measured by its profitability ratio. Apart from the creditors, both short-term and long terms, also interested in the financial soundness of a firm are the owners and the management or the company itself. The management of the firm is naturally eager to measure its operating efficiency. Similarly the owners invest their funds in the expectation of reasonable returns. The operating efficiency of a firm and its ability to ensure adequate returns to its shareholders/ owners depends lastly on the profits earned by it. a) Gross Profit RatioGross profit is the dissolving agent of the relationship between prices, sales volume and costs. It measures the percentage of each sales rupee remain after the firm has paid for its goods. A change in the gross margin can be brought about by changes in any of these factors. The gross margin represents the limit beyond which fall in sales prices are outside the tolerance limit. Further, the gross profit ratio/ margin can also be used in determining the extent of loss caused by theft, spoilage, damage, and so on in the case of these firms which follow the policy of fixed gross profit margin in pricing their produc ts.A high ratio of gross profit to sales is a sign of good management as it implies that the cost of production of the firm is relatively low. It may also be indicative of a higher sales price without a corresponding increase in the cost of goods sold. It is also likely that cost of sales might have declined without a corresponding decline in sales price. A relatively low gross margin is definitely a danger signal, warranting and careful and detailed analysis of the factors responsible for it. Gross profit ratio= gross profit x 100 Sales Gross profit ratio= gross profit x 100Sales Net profit ratio It measures the percentage of each sales rupee remaining after all costs and expenses including interest and taxes have been deducted. The net profit margin is indicative of managements ability to operate the business with sufficient success not only to recover from revenues of the period, the cost of merchandise or services, the expenses of operating the business (including depreciation) and the cost of the borrowed funds, but also to leave a margin of reasonable compensation to the owners for providing their capital at risk.The ratios of net profit (after interest and taxes) to sales essentially express the cost price effectiveness of the operation. A high net profit margin would ensures adequate return to the owners as well as enable a firm to withstand adverse economic conditions when selling price is declining, cost of production is rising and demand for the product is falling. A low net profit margin has the opposite implications. Net profit ratio = Net profit x 100 Sales Net profit ratio = Net profit x 100 Sales a. Return on capital employed The ROCE is the second type of ROI.Here the profits are related to the total capital employed. The term capital employed refers to long- term funds supplied by the lenders and owners of the firm. It can be computed in two ways. First, it is equal to non current liabilities (long term liabilities) plus owners equity. Return on capital employed= Net profit x100 Capital employed Return on capital employed= Net profit x100 Capital employed thickset OF FINDINGSRatio analysis is an important tool for financial statement analysis. Here we studied various ratios relating to measurement of the financial performance such as current ratio, quick ratio, debt equity ratio, proprietary ratio, gross profit ratio etc. In the previous chapter we made a detailed analysis of the Angel Broking Limited from 2005 to 2009. The major findings are given below * The study shows there is a continuous changes in the current ratio and also it is not satisfactory when compare to actual standard of 21. * Current ratio in the year 2005, it is showing 1. 5% and later on it went on increasing way i. e. in 2006 1. 44%, 2007 1. 36, 2008-1. 37%. * Current ratio in past three years it was getting to meet the standard, but in the year of 2009 again it went down to 1. 07%. * The quick ratio for this company is same as mentioned in the above table. Because as there is no inventory and prepaid expenses to deduct in this company as it is insurance company we cannot find inventory. * The study shows that the net working capital in the company is Rs. 52,669,000 in 2005, Rs. 1,182,432,000 in 2006, in 2007 Rs. ,420,039,000, in 2008 Rs. 2,324,559,000 and in 2009 again it decreased to Rs. 614,591,000. * The study shows that the debt equity ratio is satisfactory from the creditors point of view that is in the year 2005 the percentage of ratio is 2. 65%, in 2006 3. 73%, in the year 2007 5. 50%, in 2008- 6. 33% and in 2009 it is 5. 29%. * The study shows that the proprietary ratio to fixed assets is 2005- 4. 37%, 2006- 10. 53%, 2007- 11. 36%, 2008- 9. 96%, 2009- 12. 73%. * The study shows that the proprietary ratio to current ratio is in 2005-2. 79%, 2006- 1. 64%, 2007- 1. 5%, 2008- 1. 55%, 2009- 1. 91%. * The study shows that gross profit ratio of the company was went on decreasing but it is recovering from more loss t o less loss and the percentage of ratio is, in the year 2005 is -0. 13%, in 2006 it is -0. 08%, in 2007 it is -0. 04%, in 2008 it is -0. 05%, in 2009 it is -0. 09% * The study shows that the net loss was went on decreasing from the year 2005 to 2008. But in the year 2009 it has incurred more loss than 2006, 2007, and 2008 but less than 2005 (i. e. 2005 = -0. 27, 2006= -. 20, 2007= -. 16, 2008= -0. 14, 2009= -0. 2) * The study shows that the return on capital employed is not good because every year it is earning negative returns and also the percentage of negative returns went on increasing way (i. e. 2005= -58. 80%, 2006= -49. 99%, 2007= -52. 88%, 2008= -51. 90%, 2009= -64. 62%. CHAPTER 5 SWOT ANALYSIS 5. 1 Strengths * It is a pioneer in online trading with a turn over of Rs. 220. 5 billion and Over 6810 sub-Brokers Business Associates. * Angel Broking provides multi-channel access to all its customers through a strong online presence with www. angelbroking. om,144 share shops in a ll over India and a call-center based Dial-n-Trade facility. Nation-wide network of 21 Regional Hubs Presence in 124 cities. * Above 6th lakh client in all over India * 100+ member research advisory team comprises of experienced fundamental and technical analyst, sector specialist, derivative strategists. * Angel Broking has dedicated research teams for fundamental and technical research, which constantly track the impetus of the market and provide timely investment advice free of cost to its clients which has a strike rate of 70-80%. Angel Broking Ltd. Announced that it is planning to invest around INR 300 million this financial year for expanding its branch network. The company is looking to invest around INR 250-300 million in this financial year for expanding its network by 50 branches. * The company has been increasing at a compounded growth rate of 100% every year. 5. 2 Weakness * Localized presence due to insufficient investments for countrywide expansion. * Lack of awarene ss among customers because of non-aggressive promotional strategies (print media, newspapers, etc). lesser emphasis on customer retention. * Focuses more on HNIs than retail investors which results in meager market-share as compared to sloshed competitors. * Not listed in stock exchange. 5. 3 Opportunities * With the booming capital market it can successfully introduction new services and raise its clients base. * It can easily tap the retail investors with small saving through promotional channels like print media, electronic media, etc. * As interest on fixed deposits with post office and banks are all time low, more and more small investors are entering into stock market. Abolition of long-term capital gain tax on shares and reducing in short term capital gain is making stock market as intense destination for investment among small investors. * Angel Stock Broking Ltd. plans to finalize INR 2 billion INR 2. 5 billion fund raising plans between December 2009 and March 2010. Di nesh Thakkar, Angel Brokings CMD said, We are got active interest from the US and UK-based institutions. We are open to diluting a significant stake. * Increasing usage of Internet through wideband connectivity may boost a whole new breed of investors for trading in securities. . 4 Threats * rapacious promotional strategies by close competitors may hamper Angel Brokings acceptance by new clients. * Lack of sufficient branch-offices for speedy delivery of services. * More and more players are venturing into this domain, which can further reduce the earnings of Angel Stock Broking Ltd. CHAPTER 6 CONCLUSION SUGGESTIONS 6. 1 Conclusion On the basis of the study it is found that Angel Broking Ltd. is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell.Angel Broking Ltd. provides the facility of Trade tiger as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts that what IPOs are coming in the market and it also provides its research on the future prospect of the IPO. Study also concludes that people are not much aware of commodity market and while its going to be biggest market in India.From the above survey and observation it is found that most of the people who are trading in share market belongs to the employee group, next comes the business men and other class of income people. As the share market value goes on increasing day by day the investor who wants to invest in shares also increasing. But investing in shares is as risky as earning yield. Trading in online trading firm is easy as it all delivered with internet and within a few minutes the customer can buy and sell shares which save time as well as reduction of paper work.Hence trading in share market is increasing day by day and investors are attain to invest their investment in share market only . I got the knowledge about the customers needs and their references for having a particular product. The need of customers differs from person to person, area, locality and occupation. Customer always wants more service by paying less. They expect all the information such less rates, less brokerages, highly returns and better service level without delay. W