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 PAG

E 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 IndiaSr. No. Name of Stock Broker

1 Sharekhan2 Karvy3 ICICI Direct

4 Motilal Oswal5 Angel broking6 Indiabulls7 Religare8 Geojit financial services9 India infoline10 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

APPLICATION

SALES REP

PROCESSING

CALL DESK

GENERATION OF CLASSIC

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)

HOLDINGS & STATEMENTS

TRADING THROUGH SHAREKHAN

PORTFOLIO ANALYSIS & RESEARCH

PAYMENT FOR INVESTMENT IN DP

CUSTOMER SERVICERETURNS

Daily trading calls based on Technical Analysis

Cool trading products (Daring Derivatives and Market Strategy)

Personalized Advice

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 200753.89/31.62 = 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 200719.01/2.64 = 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 200717.47/31.62= 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 200717.47/2.64 = 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 200719.01/31.62*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