INDEX

NO
PARTICULAR
PAGE NO
1INTRODUCTION TO WEALTH MANAGEMENT
6
✔ INTRODUCTION OF WEALTH MANAGEMENT
7
2COMPANY PROFILE
14
✔ INTRODUCTION TO INDIA INFOLINE
15
✔ HISTORY OF INDAIINFOLINE
16
✔ VISION
18
✔ MISSION
18
✔ COMPANY’S PHILOSHOPY
18
✔ COMMITTEE
19
✔ COMPANY STRUCTURE
20
✔ PRODUCT & SERVICE
21
✔ MILESTONES ACHIVED
35
✔ MARKET SHARE OF COMPANY
37
✔ CHALLENGE FACED BY INDIAINFOLINE
39
✔ MARKETING STRATGY OF INDIAINFOLINE
40
✔ HUMAN RESOURCES
41
3RESEARCH METHODOLOGY
42
✔ OBJECTIVE OF STUDY
43
✔ DATA COLLECTION
43
✔ FUNDAMENTAL RESEARCH SERVICE
44
✔ TECHNICAL RESEARCH SERVICE
45
✔ SWOT ANALYSIS
47
✔ PORTER’S FIVE FORCE MODEL
48
4DATA ANALYSIS
50
✔ FINANCIAL PERFORMANCE
51
✔ P & L ACCOUNT OF INDIAINFOLINE
54
✔ BALANCE SHEET OF INDIAINFOLINE
56

57 COMPITITORS

✔ COMPARATIVE ANALYSIS OF CHARGES &

FACILITIES PROVIDED BY DIFFERENT COMPANY
60
✔ PERFORMANCE HIGHLIGHT 2008-09
61
✔ HIGHLIGHTS ,2008-09 INDUSTRY OPTIMISM
62
5FINDING
64
6RECOMMENDATION
65
7CONCLUSION
66
8 BIBLIOGRPHY
67
INTRODUCTION

Wealth management Service is provided by banks, professional trust companies, and

brokerages. For those with sizeable assets, professional wealth management can help you plan
your estate or invest your assets based on personal criteria and financial goals.

Wealth Management system is an integrated platform designed to support high demand

of customer relationship businesses and a complex portfolio management analysis. The solution
provides technology that helps private wealth institutions utilize their customer’s database more
proficiently and more efficiently. With IndiaInfoline WMS sophisticated work system, firms will
be able to enhance their services and sale capabilities throughout a comprehensive set of wealth
management services such as investment strategy setting, marketing event or campaign
management, a high level of portfolio management or a graphic design of a consolidated report.

Wealth management System offers a one-stop solution to take the guess work out of
mandatory rollovers so you can save time and money.
Wealth management is an advanced investment advisory discipline that incorporates
financial planning and specialist financial services. The key objectives are to provide high net
worth individuals and families with tailored retail banking services, estate planning, legal
resources, taxation advice and investment management, with the goal of sustaining and
growing long-term wealth. Wealth management can be provided by independent financial
advisers or large corporate entities whose services are designed to focus on high-net worth
retail customers. Such customers would be considered mass affluent or upper retail clients
because of their net worth, the number of potential products they own from financial
institutions, their assets under management and other methods of segmentation. Large banks
and brokerage houses create separate sales forces, services and other benefits to retain or
attract these customers who are typically more profitable than other retail banking, brokerage,
or insurance customers.

In most industrialized countries, a substantial part of financial wealth is not managed

directly by savers, but through a financial intermediary, which implies the existence of an agency
contract between the investor (the principal) and a broker or portfolio manager (the agent).
Therefore, delegated brokerage management is arguably one of the most important agency
relationships intervening in the economy, with a possible impact on financial market and
economic developments at a macro level.

As the per-capita-income of the city is on the higher side, so it is quite obvious that they
want to invest their money in profitable ventures. On the other hand, a number of brokerage
houses make sure the hassle free investment in stocks. Asset management firms allow investors
to estimate both the expected risks and returns, as measured statistically. There are mainly two
types of Portfolio management strategies.

● Passive Portfolio Strategy

● Active Portfolio Strategy
1.Passive Portfolio Strategy: A strategy that involves minimal expectation input, and

instead relies on diversification to match the performance of some market index. A passive
strategy assumes that the marketplace will reflect all available information in the price paid for
securities

2.Active Portfolio Strategy:A strategy that uses available information and forecasting
techniques to seek a better performance than a portfolio that is simply diversified
broadly

Share market where dealing of securities is done is known as share market. There are two
ways in which investors gets share from market:
Primary market: markets in which new securities are issued are known as primary market.

This is part of the financial market where enterprises issue their new shares and bonds. It is
characterized by being the only moment when the enterprise received money in exchange for
selling its financial assets.

Secondary Market: Market in which existing securities are dealt is known as secondary
market. The market where securities are traded after, they are initially offered in the primary
market. Most trading is done in the secondary market.

The Stock Market is an invisible market that trades in stocks of various companies belonging to
both the public and private sectors. The Indian Stock Market is often referred to as the Share
Market since it deals primarily with shares of various companies.

A Stock Exchange is a place where the stocks are listed and traded. Such exchanges may be a
corporation or mutual organization which specializes in the business of introducing the sellers
with the buyers of stocks and securities.

The Indian Stock Market in India comprises of two stock exchanges:

● Bombay Stock Exchange (BSE)
● National Stock Exchange (NSE)

BOMBAY STOCK EXCHANGE (BSE)

The Bombay Stock Exchange (BSE) was established in 1875.The BSE India Stock Exchange
serves as the most important for companies to raise money. The chief function of the Stock
Market of India is to help raise money as capital for the growth and expansion of various private
and public sector enterprises. Besides, the Stock Market of India provides able assistance to the
individual investors through daily updates on current position of the stocks of the respective
companies that are enlisted in the Stock Index in which the movement of prices in a section of
the market are captured in price indices. The popular acronym for Stock Index is Sensitive index
or sensex. Moreover, the liquidity provided by the exchange enables the investors to sell
securities owned by them easily and quickly. Hence a person, who is subjected to sudden dearth
of funds, can immediately sell his shares for cash in India Stock Market.
The BSE Sensex, also known as “BSE 30” is a widely used market index not only in India but
across Asia. In terms of volume of transactions, it is ranked among the top five stock exchanges
in the world.

NATIONAL STOCK EXCHANGE (NSE)

The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today the largest
stock exchange in India and a preferred exchange for trading in equity, debt and derivatives
instruments by investors. NSE has set up a sophisticated electronic trading, clearing and
settlement platform and its infrastructure serves as a role model for the securities industry. The
standards set by NSE in terms of market practices; products and technology have become
industry benchmarks and are being replicated by many other market participants.

NSE provides a screen-based automated trading system with a high degree of transparency and
equal access to investors irrespective of geographical location. The high level of information
dissemination through the on-line system has helped in integrating retail investors across the
nation.

The exchange has a network in more than 350 cities and its trading members are connected to the
central servers of the exchange in Mumbai through a sophisticated telecommunication network
comprising of over 2500 VSATs.

INTRODUCTION TO INDIAINFOLINE

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

We are a pan-India financial services organization across 1,361 business locations and a presence
in 428 cities. Our global footprint extends across geographies with offices in New York,
Singapore and Dubai. We are listed on the Bombay Stock Exchange (BSE) and the National
Stock Exchange (NSE).
We offer a wide range of services and products comprising broking (retail and institutional
equities and commodities), wealth management, credit and finance, insurance, asset management
and investment banking.

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

HISTROY OF INDIAINFOLINE

The IndiaInfoline Group was originally incorporated on October 18, 1995 as Probity
Research and Services Private Limited at Mumbai under the Companies Act, 1956 with
Registration No. 11 93797. The IndiaInfoline Group commenced its operations as an
independent provider of information, analysis and research covering Indian businesses, financial
markets and economy, to institutional customers. We became a public limited company on April
28, 2000 and the name of the Company was changed to Probity Research and Services Limited.
The name of the Company was changed to India Infoline.com Limited on May 23, 2000 and later
to India Infoline Limited on March 23, 2001.

In 1999, The IndiaInfoline Group identified the potential of the Internet to cater to a
mass retail segment and transformed our business model from providing information services to
institutional customers to retail customers. Hence we launched our Internet portal,
www.indiainfoline.com in May 1999 and started providing news and market information,
independent research, interviews with business leaders and other specialized features.
 In May 2000, the name of our Company was changed to India Infoline.com Limited to
reflect the transformation of our business. Over a period of time, we have emerged as one of the
leading business and financial information services provider in India.

In the year 2000, The India Infoline Group leveraged it’s position as a provider of
financial information and analysis by diversifying into transactional services, primarily for online
trading in shares and securities and online as well as offline distribution of personal financial
products, like mutual funds and RBI Bonds. These activities were carried on by our wholly
owned subsidiaries.

The India Infoline Group’s broking services was launched under the brand name of
5paisa.com through our subsidiary, India Infoline Securities Private Limited and
www.5paisa.com, the e-broking portal, was launched for online trading in July 2000. It
combined competitive brokerage rates and research, supported by Internet technology Besides
investment advice from an experienced team of research analysts, we also offer real time stock
quotes, market news and price charts with multiple tools for technical analysis.

Acquisition of Agri Marketing Services Limited ("Agri")

In March 2000, The IndiaInfoline Group acquired 100% of the equity shares of Agri
Marketing Services Limited, from their owners in exchange for the issuance of 508,482 of our
equity shares. Agri was a direct selling agent of personal financial products including mutual
funds, fixed deposits, corporate bonds and post-office instruments. At the time of our acquisition,
Agri operated 32 branches in South and West India serving more than 30,000 customers with a
staff of, approximately 180 employees. After the acquisition, we changed the company name to
India Infoline.com Distribution Company Limited.

The India Infoline group, comprising the holding company, India Infoline Ltd (NSE:
INDIAINFO, BSE: 532636) and it’s subsidiaries, is one of the leading players in the Indian
financial services space. India Infoline offers the entire gamut of financial services covering
investment products ranging from Equities and derivatives, Commodities, Portfolio Management
Services, Mutual Funds, Life Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds
and other small savings instruments. It owns and manages the website, www.indiinfoline.com,
which is one of India’s leading online destinations for personal finance, stock markets, economy
and business.

forerunner in the field of equity research, IndiaInfoline’s research is acknowledged by none other
than Forbes as ‘Best of the Web’ and ‘…a must read for investors in Asia’. IndiaInfoline’s
research is available not just over the internet but also on international wire services like
Bloomberg (Code: IILL), Thomson First Call and Internet Securities where it is amongst the
most read Indian brokers.

A network of 753 business locations spread over 346 cities across India, facilitates the smooth
acquisition and servicing of a large customer base. All these offices are connected with the
corporate office in Mumbai with cutting edge networking technology.

The group caters to a customer base of over 500,000 over a variety of mediums viz. online, over
the phone and at our branches. The Group is strengthening its institutional broking and
investment banking services and has built a team of experienced research analysts, sales and
trading professionals.

IndiaInfoline refers to IndiaInfoline Ltd and its subsidiaries. The consolidated figures will give a
more meaningful picture of the Company to the investors. Reference to the company or
IndiaInfoline is to the business done by the company and its subsidiaries, unless otherwise
specified.

VISION
Terms of reference & Composition, Name of members and Chairman: The Compensation /
Remuneration Committee comprises Mr Sanjiv Ahuja, Chairman of the Committee, Mr Nilesh
Vikamsey and Mr Kranti Sinha, all of whom are independent Directors. The Terms of reference
of this committee are as under: - To fix suitable remuneration package of all the Executive
Directors and Non Executive Directors, Senior Employees and officers i.e. Salary, perquisites,
bonuses, stock options, pensions etc. - Determination of the fixed component and performance
linked incentives alongwith the performance criteria to all employees of the company - Service
Contracts, Notice Period, Severance Fees of Directors and employees. - Stock Option details:
whether to be issued at discount as well as the period over which to be accrued and over which
exercisable. - To conduct discussions with the HR department and form suitable remuneration
policies.

Share Transfer and Investor Grievance Committee

Details of the Members, Compliance Officer, No of Complaints received and pending and
pending transfers as on close of the financial year. The committee functions under the
Chairmanship of Mr Kranti Sinha, a Non-executive independent Director. The other Members of
the committee are Mr Sanjiv Ahuja, Independent Director and Mr R Venkataraman, Executive
Director. Ms Komal Parikh, Company Secretary is the Compliance Officer of the Company.

COMPANY STRUCTURE

IndiaInfoline Limited is listed on both the leading stock exchanges in India, viz. the Stock
Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both
the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and
Portfolio Management Services. It offers broking services in the Cash and Derivatives segments
of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL
as a depository participant, providing a one-stop solution for clients trading in the equities
market. It has recently launched its Investment banking and Institutional Broking business.
computerized access. India Infoline made it possible for clients to view transaction
costs and ledger updates in real time.
Over the last five years, India Infoline sharpened its competitive edge through the
following initiatives:
Multi-channel delivery model :

The Company is among the few financial intermediaries in India to offer a complement
of online and offline broking. The Companies network of branches also allows
customers to place orders on phone or visit our branches for trading.

Integrated middle and back office :

The customer can trade on the BSE and NSE, in the cash as well as the derivatives
segment all through the available multiple options of Internet, phone or branch
presence.

Multiple-trading options :
The Company harnessed technology to offer services at among the lowest rates in the
business.
Membership:
The Company widened client reach in trading on the domestic and international
exchanges.
Technology :
The Company provides a prudent mix of proprietary and outsourced technologies,
which facilitate business growth without a corresponding increase in costs.
Content :
The Company has leveraged its research capability to provide regular updates and
investment picks across the short and long-term.
service :

Clients can access the customer service team through various media like toll-free lines,
emails and Internet- messenger chat for instant query resolution. The Companies
customer service executives proactively contact customers to inform them of key
changes and initiatives taken by the Company. Business World rated the Companies
customer service as Best in their survey of online trading sites carried out in December
2003.

Key features :
Membership on the Bombay Stock Exchange Limited and the National Stock Exchange
Registered with the NSDL as well as CDSL as a depository participant, providing a
one-stop solution for clients trading in the equities market
Broking services in cash and derivative segments, online as well as offline.
Presence across 350 cities and towns with a network of over 850 business locations
Equity client base of over 500,000 clients
Provision of free and world-class research to all clients
Commodities

India Infolines extension into commodities trading reconciles its strategic intent to emerge as a
one stop solutions financial intermediary. Its experience in securities broking has empowered it
with requisite skills and technologies. Increased offering: The Companies commodities business
provides a contra-cyclical alternative to equities broking. The Company was among the first to
offer the facility of commodities trading in Indias young commodities market (the MCX
commenced operations only in 2003). Average monthly turnover on the commodity exchanges
increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with
different and non- correlated cycles. On the whole, the business is fairly insulated against
cyclical gyrations in the business.

IndiaInfoline distinguished its business through the interplay of knowledge and technology:

Complete solution :

The Company provides a complete - advice to execution solution facilitated by

information and advice on likely commodity trends in the Indian and international
environment.
Technology :
The Company has extended the trading terminal to the investors home/workplace
reinforced with real-time commodity information and ledger position.
Rates :

The Company harnessed technology to offer services at among the lowest rates in the business.
Membership: The Company widened client reach in trading on the domestic and international
exchanges.

Key Features :
Enjoys memberships with the MCX and NCDEX, two leading Indian commodities

exchanges
Recently acquired membership of the DGCX
Multi-channel delivery model, making it among the select few to offer online as well as

offline trading facilities

Extended commodity trading to retail investors, among the few Indian financial
intermediaries to do so
Online business at 80% of revenues dominates commodities trading revenues
Provides regular commodity updates pertaining to the Indian and international
environment
INSURANCE

An entry into this segment helped complete the client's product basket; concurrently, it
graduated the Company into a one stop retail financial solutions provider. To ensure
maximum reach to customers across India, we have employed a multi pronged approach and
reach out to customers via our Network, Direct and Affiliate channels. Following the

opening of the sector in 1999-2000, a number of private sector insurance service providers
commenced operations aggressively and helped grow the market.

The Companies entry into the insurance sector derisked the Company from a predominant
dependence on broking and equity-linked revenues. The annuity based income generated from
insurance intermediation result in solid core revenues across the tenure of the policy.

Over the last five years, India Infoline sharpened its competitive edge in this business
segment through the following initiatives:
Client base :
Grew its 40,000 strong client base through knowledge-led analysis, translating into an
attractive opportunity to cross-sell products and generate referral business.
Distribution network :
Invested in a distribution network of 177 branches across 19 states, which provided it with
an unmatched reach within its segment.
Hands-on training :

Invested aggressively in training its field force more than 100 hours a year in product
attributes across the insurance sector - highlighting various product details and marketing
skills apart from regular meets where best practices are shared.

Technology :
The Company provides a prudent mix of proprietary and outsourced technologies, which
facilitate business growth without a corresponding increase in costs.
Research and advice :
Provided clients with advice on diverse investment products based on the customers existing
and prospective financial profile.
now a house provides far more than just shelter...it also becomes a source of pride. A
Housing Loan is used as finance to help you buy or modify that perfect home. The different
Housing Loan products can be classified as:

Home Loan

Home Extension Loans

Home Improvement Loans

Land Loans

NRI Loans

Home Equity Loans

Short term Bridging Loans

Balance Transfer

Who can apply?

As long as you want to buy a house in India, you can apply for a Home Loan. You could be a
Resident Indian or an NRI; you could want to buy a property now or in the future, but you may
still apply for a Home Loan. In case you go with the last option and want to wait before you
consider nests, all you have to be sure of is the amount you are willing to spend on this property
and the HfIs will let you know your eligibility based on your income which will help you plan
out your budget. To find out your eligibility, please use our calculator.

General Terms and Conditions of a Housing Loan Product

You are allowed to visit zoos on the condition that you do not feed the animals. When
you're 18, you are allowed to go for that late night party on the condition that someone drops you
home before 12. Every step we take requires condition to be fulfilled. Similarly, these are the
general terms & conditions of a Home Loan. For more details, please refer to the individual
product.

•
LTV Ratio will not exceed a particular percentage. This percentage differs from HFI
to HFI and the components of the value of property are covered in Cost of Property
•

Elastic can be stretched only to a certain extent. The loan tenure also will not go beyond 20
years. However, HFIs do provide for different tenures with different terms and conditions.

•
Your EMI normally does not exceed 50% of your Gross Monthly income.
•
The total monthly payment towards all the loans you have availed of, including the
present one, will normally not exceed 50% of your Gross Monthly Income.
•
Your loan eligibility is calculated using LTV, IIR and FOIR norms and the lowest
from the three is chosen.
•
Your profile is considered by the HFI before your repayment capacity is judged.
•
If the HFI insists on a personal guarantor, you need to provide one before the
disbursement of your loan.
•
Your property should be both technically and legally clear before your loan can get
disbursed by the HFI.
•
In case you have bought an under construction property, your loan will be partly
disbursed, as per the stages of construction and PEMI needs to be paid on it.
•

The disbursement, in most cases, will be in the name of the builder or the seller or the society or
the development authority unless you have made some payment to them.

•
Repayment of the loan is either via Deduction Against Salary, Post Dated Cheques,
standing instructions or by cash / DD.
•
You can either choose to repay the loan using the Annual rests or Monthly rests.
Charges applicable to Housing Loans
The different kinds of charges applicable to Home Loans are listed below:
•
Upfront Fees
•
Rate of Interest
•
Legal and Technical Charges
•
Stamp Duty and Registration Charges
•
Personal Guarantee from Charges
•
Cheque Bounce Charges
•
Delayed Payment Charges
•
Additional Charges
•
Incidental Charges
•
Prepayment Charges
•
PDC Swapping Charges
Legal and technical charges :
Some HFIs charge you for the legal and technical checks undertaken on your documents
and property, by lawyers and the technical team of the HFI.
Stamp duty and registration charges:

If you go in for a registered mortgage, these charges incurred by the HFI are passed onto
you. Sometimes these charges are rather heavy depending on the State laws in the state from
where you purchase your property.

Personal Guarantee form charges:

A piece of paper signed does not have much value unless stamped and validated by the
concerned authority. That power of attorney document that you signed with your spouse
would not be credible unless signed on a Rs.100 stamp paper. Similarly, HFIs currently
charge you a minimum of Rs.100 to get the personal guarantee validated and stamped in the
eyes of the law.

PDC swapping charges:

In case you want to exchange the PDCs you gave the HFIs for EMI repayments because of a
change in bank accounts, a change in EMI amount, etc., the HFis might charge a flat fee for it.

Repayment capacity

Your repayment capacity is judged according to your income and your income is considered
differently if you are salaried and differently if you are self-employed. Income is used to
calculate the amount of money that you will be able to shell out every month towards your
loan installment using IIR and FOIR norms. FOIR calculation also takes into account the
installments of loans you are currently repaying. The lower between the IIR and FOIR is
chosen as your maximum repayment capacity. This is then compared to the loan amount
that you have requested for and the loan eligibility as per LTV norms and the lowest of
these would be your final loan eligibility.

Salaried
Self-employed
Any extra income on your salary slip
(including overtime, etc.) is subtracted
Any non-recurring income that affects profit
(like sale of asset) is subtracted.
50% of the average variable income over the
last 6 months is added

Any non-recurring expense that adversely

affects profits and was not capitalized (like
repairs and maintenance) is added

Any fixed cash or voucher payment that can

be proved is added.
50% of the average depreciation of the last
two years is added.
HRA that can be received and is not being
received is added.

50% of the average annual income of the last

two years is added.
Credit Documentation

Would you trust any Tom, Dick or Harry with any matter at all? We all require a certain
assurance from people before we trust them; some sort of guarantee that they are trustworthy.
For HFIs this guarantee rests in the form of tangible documents. Credit documents are required
by all HFIs but vary in kind based on your occupation, employer, qualifications, experience, etc.
Credit documents can be classified as

Income documents:

Money money money...no one can take a chance on the credibility of money matters because at
the end of the day, business is business. Almost everything about your loan is based on your
income and therefore proof regarding the same is required by the HFI to ensure that no
miscommunications occur.

Personal documents:

Previously, tribes and clans had passwords without which you could not enter into the territory;
as proof of who he was, King Solomon had a ring as identification. Throughout history, proof of
identity has been important as mistaken identity has never been uncommon. To prevent any such
shams, HFIs also require a set of documents, for a general Home Loan Product, identifying who
you are.

He following list out all the documents needed. {under this line will be placed the document
sent separately as an excel sheet}
Legal Documentation

We might be living in the electronic age but that doesn't take away the importance and
monopoly of paper as everything to do with law will always be on paper. To stick by this
unwritten rule, there are legal documents that need to be submitted by you to the HFI for
mortgaging and these differ from state to state and also depend on your property type. The
following form a broad outline of the documents required and a detailed list can be found
here.
•
Copy of the offer letter sent by the HFI, accepted by you.
•

Title documents of the property which include

-Duly registered sale agreement.
-Receipts of your own contribution.
-Allotment letter
-Registration receipt
-If needed, land documents indicating ownership.
-Possession letter
-Lease agreement, if the property is bought from a development authority
-Mortgage deed if the HFI opts for a registered mortgage.

•
No Objection Certificate from the developer, society or development authority
•
Personal Guarantees, if required.
•
Documents for alternate or additional security.
•
Post dated cheques for the EMIs.
These documents do NOT cover the entire list needed and if it is a resale property, the
pertaining agreements, etc. will also need to be attached.
Tax Benefits
Tax benefits are currently available only under Home Loans and Home Extension loans.
The details are given under the respective sections.
Property Insurance
Some events are not in our hands and are completely unavoidable. Floods, drought and
storms uproot trees and destroy the land. Along with this the birds lose their homes and
You get recessions. You have stock market declines. If you don't understand that's going to
happen, then you're not ready; you won't do well in the markets. No need to worry. We at India
Infoline would take care of all issues related to managing your hard earned money.

Our Portfolio Management Service is a product wherein an equity investment portfolio is created
to suit the investment objectives of a client. We at India Infoline invest your resources into
stocks from different sectors, depending on your risk-return profile. This service is particularly
advisable for investors who cannot afford to give time or don't have that expertise for day-to-day
management of their equity portfolio.

It is all about your money, being managed by the experts, while you continue with your
routine life. Isn't it simple and totally hassle free.

What's more, you can keep track of your dividends / bonus / rights issues with paperless
tracking. So you always know how fast your investment is growing. It basically means assigning
the right job to the right person.

Research

IIFL special research cell where some of India's finest financial analysts bring you
intensive research reports on how the stock market is faring, when is the right
time to invest, when to execute your order and more.

IIFL make sure that investors are always prepared to make own investment decision
when the opportunity arises.
IIFL bring you intensive research reports - whether sectoral or company-wise or more -
that tell you exactly when and where to invest. So whenever there is an exciting
investment opportunity, you are in the know and always ready to invest. Research
reports IIFL will help you choose your investments wisely, without wasting time.
Presented in a lucid and easy-to-understand format; these reports help you make
informed decisions.
ASSET MANAGEMENT

India Infoline is a leading pan-India mutual fund distribution house associated with leading asset
management companies. It operates primarily in the retail segment leveraging its existing
distribution network to reach prospective clients. It has received the in-principle approval to set
up a mutual fund.

The group recently commenced its offshore asset management business under the ‘IIFL Capital’
brand. Also, IIFL Securities Pte Ltd received approval from the Monetary Authority of
Singapore to carry out global asset management operations. The Singapore arm can now offer
broking, asset management and investment banking services.

IIFL Inc received an FII license, thereby facilitating the investment of dedicated funds
in India.

With offices in New York, Singapore and Dubai, IIFL Capital aims to offer India- focused equity
products, fund management and advisory services for offshore and domestic wealth management
customers.

MILESTONES ACHIEVED
1995
Incorporated as an equity research and consulting firm with a client base that included
leading FIIs, banks, consulting firms and corporates.
1999
Restructured
the
business
model
to
embrace
the
internet;
launched
archives.indiainfoline.com mobilised capital from reputed private equity investors.
2000
Commenced the distribution of personal financial products; launched online equity trading;
entered life insurance distribution as a corporate agent. Acknowledged by Forbes as ‘Best of the
Web’ and ‘...must read for investors’.

2004
Acquired commodities broking license; launched Portfolio Management Service.
2005
Listed on the Indian stock markets.
2006
Acquired membership of DGCX; launched investment banking services.
2007

Launched a proprietary trading platform; inducted an institutional equities team; formed a

Singapore subsidiary; raised over USD 300 mn in the group; launched consumer finance
business under the ‘Moneyline’ brand.

2008

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

2009

Received registration for a housing finance company from the National Housing Bank; received
‘Fastest growing Equity Broking House - Large firms’ in India by Dun & Bradstreet.
During the quarter, it managed a book size of Rs 25 crore and has suffered a loss of Rs 5.5 crore.
It expects to break even in 2-3 quarters. NIM of 6-8% on personal loans and 3-4% on home
refinancing. It is looking at a Rs 200 crore private-equity funding for its consumer finance
subsidiary. It intends to leverage its extensive branch network to expand its consumer finance
division to tier-II and tier-III cities in the coming quarters. IndiaInfoline is going slow as it has
just started this business with a robust risk management system. The company has roped in
experts from Citi Financial and other banks.

Ticker:
532636
Exchanges:
BOM
2009 Sales:
9,630,900,000
Major
Industry:
Financial
Sub
Industry:
Securities
Brokerage
Country:
INDIA
Employees:
14105
MARKETING STRATEGY OF INDIA
INFOLINE
Market Positioning:

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

Target Market:

India Infoline uses demographic segmentation strategy and segment people based on
their occupation. India Infoline uses selective specialization strategy for market targeting.
Target person for the India Infoline Stock Broking and India Infoline Investment Service are
persons who can work as sub-broker for the companies. Companies focus on Advisors of
Insurance and post office, Tax consultants and CAs for making sub-broker

Marketing channel System:

India Infoline uses one level marketing channel for investment product distribution.
Sub-brokers work as intermediary between consumer and company. Company has both
forward and backward flow of activity through channel. Company distributes stationery,
brokerage, and information forward to its sub-broker. The sub-brokers send filled forms,
queries, amount of investment etc. back to the company.

Training Channel Members:

India Infoline provides training to the sub-brokers because they will be viewed as the
company by the investors. The executives of India Infoline explain various new schemes of
investment to the sub-brokers with its objective, risk factors and expected return. Company also
periodically arrange seminar to guide sub-brokers.

Advertising and Promotion:

The objective of advertising of India Infoline is to create awareness about services of
India Infoline among investors and sub-brokers.
India Infoline also publishes its weekly Stock Market Newsletter ‘Market Mantra’.

HUMAN RESOURCES

The India Infoline Group’s Human Resources policy is based on the philosophy of “Owner
Mindset”. We believe that the key to our continued growth lies in unleashing the entrepreneurial
energy of our employees. We encourage all employees to behave more as 51owners of their
departments rather than employees. Our people are highly driven and work towards increasing
India Infoline’s brand and market share across product lines.

e have developed extensive in-house training modules. In addition, our staff is trained by various
Asset Management Companies and ICICI Prudential Life Insurance Company Limited. We lay
emphasis on “on the job training” where an experienced and senior person mentors a junior
executive.

In addition to salary, our employees get performance-based incentives on a quarterly basis.

We have also implemented an Employee Stock Option Plan.
As on December 31, 2009, the total employee strength of our company and our subsidiaries
was 1200.
thorough interaction with industry experts. Also comparative performances of
various companies in the sector are evaluated and top picks are recommended.
✔ Stock Analysis :

Indiainfoline stock research has performed very well over the past few years and the
Indiainfoline Model Portfolio has consistently outperformed the benchmark indices. The
fundamentals of select scrips are thoroughly analyzed and an actionable advice is provided along
with investment rationale for each scrip.

✔ Flash News:

Key developments and significant news announcements that are likely to have an impact
on markets / scrips are flashed live on trading terminals. Flash news keeps the market
participants updated on an online basis and helps them to reshuffle on their holdings.

TECHNICAL RESEARCH SERVICE

✔ Nifty Tracker :

Nifty Futures is the most traded instrument with highest volumes in F & O and excellent
liquidity. The team tracks the Nifty Future and generates calls based on unique trading system
which is a result of their focused research over the past few years. The objective is to generate
positive returns for traders who are looking for a high risk / high reward product.

✔ Online Chart :
An online forum to help clients, specifically day traders in judging the
directions of the market and stocks which are in the limelight.

Intraday Calls :

For day traders, indiainfoline provides intra-day calls with entry, exit and stop loss levels
during market hours. These calls are flashed on their terminals. Their analysts continuously track
the calls and provide recommendations according to the

market movements.
✔ Position Calls :
 Indiainfoline “Position Trading Calls” are based on thorough analysis of the price
movement in select scrip’s. These calls are for a 10-15 day time span with stop loss and target
levels. These calls are flashed on their terminals during market hours.

✔ Derivative Strategies :

Their analysts take view on the Nifty and select stocks based on the derivatives data and
technical tools. Suitable “Derivative Strategies” are devised, which are flashed on their terminals
and published in their reports.

✔ Futures Calls :

A customized product for HNIs to help them trade with leveraged position; wherein
clients are advised on the stocks with entry, exit and stop loss level for short term benefits. Over
and above this, financial status of the calls is monitored at all times.

OTHER ADVATAGES

Advancements in Internet and Internet-based trading have transformed the way firms
operate in the broking industry. We recognize that technology is an important tool for broking
operations.

We believe that online trading will gain market share due to significant advantages that it
offers
•
It enables the customer to trade directly without any agent intervention
•
It offers customers the convenience of trading from almost anywhere

it enables rapid dissemination of information and at reduced costs

•
It offers a responsive mechanism for reporting grievances, problems and bugs

The IndiaInfoline Group have invested in technology and ensured that we have an optimum
infrastructure to handle the load. Our current technology infrastructure comprises several high
ends Dell, HP, IBM servers running on Microsoft Operating System. Most of these servers
support online customers for trading activities and users for the www.indiainfoline.com and
www.5paisa.com websites.

The IndiaInfoline Group’s main trading servers (application and database servers) are
located at our Goregaon office and our broadcast servers are hosted at VSNL and Reliance
Internet Service Providers (ISP). Our website is hosted with Net Magic Solutions, another ISP.
All the three ISPs and our Goregaon office are equipped with latest servers and uninterruptible
power supply systems. The Goregaon office is connected to the internet by optic fiber to Net
Magic Solutions which gives us bandwidth of more than 10Mbps expandable to 20Mbps. Our
connectivity between the internal and external servers is through this fiber connection.

Net Magic Solutions sources bandwidth from VSNL and Bharti, thereby providing us with
redundancy in the event of a failure of one of the provider’s gateway. By co-locating some
servers with Reliance Infocom we have further increased our redundancy.

The IndiaInfoline Group has implemented CISCO Pix firewall, managed by Net Magic. All
our servers, routers and desktops are behind this firewall. All connections to our trading servers
happen in a secure manner using 128 bit encryption. We have a security certification from
Thawte.

The key components of our technology infrastructure include

- Online trading software

- Surveillance and risk management
- Client administration
- Back office software
- Communication links and VSAT network
Substitutes.
•
Buyers.
•
Suppliers
Intensity of Competition:
Move towards consolidation
Lot of brokerage companies are moving towards consolidation with the smaller ones
becoming either franchisees for the larger brokers or closing operations.
Increased Focus of Banks in Retail Broking:
Various foreign banks like ABN Amro and others are planning to enter the Indian retail
brokerage industry.
Online Trading Competes with Traditional Brokerage:
There is an increasing demand for online trading due to consumer’s growing preference for
internet as compared to approaching the brokers.
Threat of New Entrants

Entry of Foreign Players

New forms of trading including T+2 settlement system, dematerialization etc are
strengthening the retail brokerage market and attracting foreign companies to enter the Indian
industry.Threat of Substitutes

Alternative Investment Options

Various alternative forms of investment including fixed deposits with banks and post offices
etc act as substitutes to retail broking products and services.
Buyer Power

Lack of Expertise Curtails Bargaining Power

Retail investors often lacks the knowledge and expertise in the financial sector that calls them
to approach the broking houses.

Low Product Differentiation Proves Beneficial:

The retail broking services provided by the various companies are homogeneous with very
low product differentiation. This allows customers to enjoy a greater bargaining power.
Supplier Power
Increased Dependence on IPOs
There is a growing dependence of corporate on broking houses with the rising number of
IPO’s coming to the market
Financial Performance
Year 2007-08
List
Revenue

Profit before
interest,
depreciation and
tax

Profit after tax

Indiainfoline Ltd.
6,724.4
2,772.5
1,286.9

India Infoline
Investment
Services Ltd

1,522.1
1,208.9
315.5
Moneyline Credit
Ltd
113.2
19.4
20.7
India Infoline
Distribution
Company Ltd
18.4
71.3
56.0
India Infoline
Marketing
Services Ltd
405.0
129.7
75.3
India Infoline
Insurance
Services Ltd
688.1
4.2
41.7
 India Infoline
Commodities Ltd
170.1
14.7
8.3
India Infoline
Media and
Research Services
Ltd
823.8
98.1
63.0
Other subsidiaries
96.9
62.4
51.2
Inter-company
adjustments
326.1
169.2
42.5
Aggregate
10,235.9
4,022.2
1,639.3

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

10235.9
And if we calculate the profit on total revenue it will be
1639.3 * 100 =16.01%

10235.9

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

4022.2-1639.3=2382.9

Rs.Mn
Lists
2007-08
2007-06
Gross Income
6724.4
2867.2
Profit before interest, depreciation and
taxation
2,772.5
983.4
Interest and financial charges
211.6
63.9
Depreciation
194.4
123.3
Profit before tax
2,366.5
796.2

taxation - Current
793.4
260.7
- Deferred
20.3
2.4
- Fringe benefit tax
10.9
11.9
- Short or excess provision of income-tax 5.3
0.0
Net profit for the year
1,577.2
521.2
Less: Extraordinary items (Net of tax)
290.4
0.0
Less:Appropriations
Dividend:
Interim dividend
0.0
149.6
Proposed final dividend
342.6
0.0
Dividend distribution tax
58.2
21.0
Transfer to general reserves
131.0
53.0
Add: Balance brought forward from
previous year
474.1
83.5
Add: Other adjustments (profits of India
Infoline Securities Private Limited added
pursuant to merger)
0.0
93.0

balance to be carried forward

1,229.1
474.1
Profit & Loss account of India Infoline
------------------- in Rs. Cr. -------------------
2009
2008
INCOME
Sales Turnover
542.27
616.11
Excise Duty
0.00
0.00
Net Sales
542.27
616.11
Other Income
29.34
27.29
Stock Adjustments
0.00
0.00
Total Income
571.61
643.61
EXPENDITURE
Raw Materials
0.00
0.00
Power & fuel Cost
0.00
0.00
Employee Cost
136.91
128.79
Other Manufacturing Expenses
93.32
105.93
Selling & Admin Expense
112.16
119.13
Miscellaneous Expense
41.03
39.67
Preoperative Exp. Capitalists
0.00
0.00
Total Expenses
383.42
393.42
OPERATING PROFIT
158.85
222.59

PBDIT
188.19
249.88
Interest
11.15
22.82
PBDT
177.04
227.04
Depreciation
25.56
19.44
Other Written Off
0.00
0.00
Profit Before Tax
151.48
207.62
Extra Ordinary Items
2.23
-0.53
PBT(post extra-ord items)
153.71
207.09
Tax
47.88
78.39
Reported Net Profit
105.83
157.73
Total value Addition
383.42
393.53
Preferred Dividend
0.00
0.00
Equity Dividend
79.45
34.36
Corporate Dividend Tax
13.50
5.82
Per Share Data
Share in Issue(in Lakhs)
2,834.00
571.03
Earning Par Share(Rs)
3.73
27.62
Equity Dividend (%)
140.00
60.00
Book Value(Rs)
36.58
17335

This is the Profit and loss account for the years 2007-08 and 2008-09. In which we can see that
the turnover, sale and other profits have decreased from the 2007-08 to 2008-09, which is an
impact of recession.

The total income is also decreased from 643.61 to 571.61 in 09, which is around 11.19% of
the previous year or 72 cr.

In the expenditure part of 2008-09 as compare to previous yes it has also decrease from 393 to
383 which is around 3%. In this the total is decreased instead of increase in employee cost and
Miscellaneous Expense to gain the better profit.

Operating profit was decrease from 222 to 158, approximate 28.82%, from the year 2007-08
to 2008-09.

Report net profit is decreased from 157.73 to 105.83

Share in issued has increase from 571.03 to 2834.00

Earning per share has come down from 27.62 to 3.73 which is 90%

Balance Sheet in Cr.

2009
2008
Sources of funds
Share capital
56.68
57.10
Reserve & surplus
980.13
932.75

Equity share
warrants
11.37
59.77
Net worth
1048.18
1040.62
Loan funds
Secured loan
1.70
-
Unsecured loan
00.10
130.56
Total Liability
1049.98
1180.19
Application funds

Fixed
asset(including
intangibles)

Gross block
143.67
98.31

Less: accumulated
depreciation and
amortization

44.94
35.07
Net block
98.73
63.72
Capital work in
progress
4.51
00.49
103.24
63.73
Investment
873.71
915.68
Currents asset
loan and advance
Sundry debtors
103.52
342.81
Cash & bank
balance
264.10
061.62
Stock on hand
166.72
154.06
Loan & advance
244.41
313.89
778.75
872.38
Less: current
liabilities &

provision
Current liabilities
552.68
514.85
Provisions
148.64
156.74
Total
701.31
671.59
Net current
assets
77.43
200.79
Total of Assets
1049.98
1180.19
This is the Balance sheet of IndiaInfoline showing the comparison for the period of 2007-08
and 2008-09.

In this we can see that the total has come down from 1180 to 1049 in 2008-09 period. Which is
all the impact of recession not only on this broking firm, on all others too, the same impact was
their in this period, their is a cost cutting and reduction on other expenses.

The biggest of this can be seen on the liability side on unsecured loans which has come down
from 130.57 to 00.10, which is more then 99%, organization has increased his cash from
61.62 to 264.10 for the period of 2008-09 as compare to 2007-08.

COMPETITORS
(ACCORDING TO VOLUME)
LAST
PRICE

MARKET
CAP.
(Rs.cr)

SALES
TURNOVER
NET
PROFIT
TOTAL
ASSET
INDIABULLS
135.20
4188.09
2003.09
99.451
14722.36
INDIA INFOLINE 141.30 4004.44
571.57
103.59
1049.99
EDELWEISS CAP
470.00
3,525.20
191.39
26.39
1,865.28
MOTILAL OSWAL F 170.80
2,443.58
57.26
45.31
433.49
HSBC INVEST
264.00
1,843.68
24.31
-15.21
667.45
FUTURECAPITAL
230.50
1,464.32
132.44
9.31
1,216.75
NETWORK 18
90.20
865.07
94.50
-19.41
862.11
GEOIIT BNP
37.80
847.03
140.56
14.39
276.06
DELTA CORP
43.30
723.81
42.73
8.31
356.87
NALWASONS INV 1,210.0
0
621.48
14.78
11.26
270.90

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

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

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

When we talk about sales turnover of the broking firm, or investment organisation again the
indiabulls has the hight sales turnover, as compare to other its very high, other stand no ware
infront of him, but still indiainfoline manages second position.
Geojit
650/-
Nil
0.03- 0.30
Nil
20 times
500
India bulls
900/-
Nil
0.03- 0.30
Nil
20 times
718
Reliance
money
750/-
Not
Restricted
0.05- 0.25
50/-
5 times
10000
Share khan
750/-
5000/-
0.03- 0.30
500/-
4 times
250
Hdfc
799/-
5000/-
0.05-0.50

500/-
from
2 nd
yr

5 times
NA

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

That’s the reason they have a line “ITS ALL ABOUT MONEY, HONEY”
PERFORMANCE HIGHLIGHT IN 2008-09
Business Division
Business Highlights
Broking
•
Market share of equities increase from
3.4% in 2007-08 to 3.76% in 2008-09.
•

Customer base for retail equities

increased 35.8% from .44 ml in 2007-
08 to .06 ml in 2008-09.

Published in-depth and thematic

reports on INCH, politics, rural India,
infrastructure, self commodities,
utilities and India worming.
FINDINGS
➢ Brokerage of India infoline is higher than Others broking firms like Religare,Motilal
Oswal,Indiabulls,they are charging 0 .03% for Intraday and 0 .30% for Delivery
where India Infoline is taking 0 .05% for Intraday and 0 .50% for Deliver
Margin money of India infoline is higher than other firm like Indiabulls,Geojit,Motilal
Oswal,there is no restriction of margin moneye.But in India Infoline,the minimum
margin money should be 5000/2555 rs..
➢ Exposure is less than other firms. India Infoline offers eight times exposure on margin
where as Religare and Indiabulls offer twenty times exposure on margin money.
➢ HDFC, ICICI direct provide their customer’s three types of account (de-mat a/c,
trading a/c, bank a/c) but India infoline provide only De-mat a/c and Trading a/c.
➢ Religare takes Rs.299 for lifetime services, where as India infoline takes Rs.555.
➢ Relationship manager changes many times, it creates problem for the offline customers
.

➢ Securities are not so much reliable.

➢ India Infoline has hidden charges, Customer are not much aware about that.

➢ Customer satisfaction of India infoline not so good.

➢ Most of the customers are trading offline.

➢ Most of the customers approach towards the broking firm is through the relationship

manager.
➢ Most of the people are not much aware of share market and its benefit

Recommendation

To increase awareness about Share Market and the name India Infoline itself, the
company should organize campaign. The campaign can be weakly, monthly, yearly, it
will give a good result to the company to capture market in the competitive position.
➢ The company should reduce the margin money. It can help to acquire more
customers, if the firms bring plans for no boundation of margin money.
➢ The Company should increase their focus on the less margin money customers also .It

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

➢ Transaction error should be avoided .Transaction should be done properly, taking in

consideration that it is one of the most required quality of a firm. Wrong transaction
or default transaction may lead the prestige of the company to be down.
➢ Brokerage rate should be reduced. Religare,Motilal Oswal,Indiabulls, are charging as

0 .03% for Intraday and 0 .30% for Delivery where as India Infoline is charging 0 . 05% for
Intraday and 0 .50% for Delivery.Though it is negotiable but for high margin money customer
not for less margin money customer.

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

CONCLUSION

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