About Aditya Birla Money Limited

ADITYA BIRLA MONEY MART LIMITED ‘ABMML’EXECUTIVE SUMMERY This project is partial fulfillment of requirement of MBA 2nd semester in Department of Management studies, Basaveshwar Engineering College, Bagalkot. The organization where I conducted my project was Aditya Birla Money. The project focuses on the “Study On Online and Offline Share Trading”, Pune. About Aditya Birla Money: Aditya Birla Money Limited formerly known as Apollo Sindhoori Capital Investments is a leading player in the broking space with nearly 15 years of experience. It became a part of Aditya Birla Group in March 2009, when the group acquired 76% of the company. IMPORTANCE OF THE TOPIC The security and exchange board of India has permitted such trading on January-31-2000. After that many players have offered these services to the investors. Is trading through Internet safe? What if someone steal my investments or, does anyone else have access to my accounts? If these are the questions that stop you from online share trading then the solutions are here. Which decade you are living in? Internet trading today is one of the largest mediums of investments and nothing can compete with it. The Objective of Project is: ➢ To study the existing online & offline share trading scenario with respect to Aditya Birla Money. ➢ To study the importance of IT in investment. Findings Department of Management Studies, BEC Page 1 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ 1. The study found that rating of Online and Offline Trading by the respondent. It clearly tells that 52% people agree to do Online Trading and 46% Disagree to do offline Trading. 2. The study found that 28% respondents prefer Online Trading because it is Time Saving and 54% respondents prefer Offline Trading because of Brokerage. 3. The study found that 70% respondent prefers more Technology while doing investment. Suggestions: 1. The company has to make aggressive marketing so that everyone is aware of the online share trading. 2. Thus awareness gives the opportunity for the acceptance of the online share trading. Conclusion: It was an opportunity to learn the practical aspects of industries. I choose this topic concerned to company requirement. The Aditya Birla Money is the leading Market Leader in Pune city with providing satisfactory service to the customers and to expand its market now the company can plane to open a new branch. So they need to know, what are the awareness level & the customer response about Stock Market and Trading. I collected the information by a structured questionnaire that included requirements what the company needed & the questionnaire is attached in the appendix. Department of Management Studies, BEC Page 2 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Company Profile Aditya Birla Money Mart Limited ‘ABMML’ (formerly Birla Sun Life Distribution Company Limited) is a wholly owned subsidiary of Aditya Birla Nuvo Ltd. (Nuvo). Earlier it was established as a joint venture between Aditya Birla Nuvo and Sun Life (India) Distribution Investments. In March 2009, Nuvo purchased the remaining 50.001 per cent stake from its joint venture partner. The company was launched in the year 1999 with the vision to be 'the first preference of our customers’ as a leading integrated provider of financial services through superior value creation and technology. Aditya Birla Money Mart Limited offers wealth management, financial planning and investment solutions, mainly through a range of products like mutual funds, insurance, PE funds, alternate investments, select fixed deposits and IPOs and structured products. The company provides life insurance products of Birla Sun Life Insurance, sourced through its wholly owned subsidiary BSDL Insurance Advisory Services Ltd (BSDLIAS), licensed to act as a Corporate Agent of Birla Sun Life Insurance Company Limited. The Corporate & Institutional section caters to banks, financial institutions and other companies; Wealth Management service focuses on HNIs; while the Retail section offers solutions through Channel Partners and branches. A combination of personal attention, ethical practices, strong research, state-ofthe-art technology, streamlined processes and innovative marketing has made ABMML one of the premier distribution companies in India, well poised to serve the growing economy and increasing investor population. ABMML has also been honoured with awards and certifications by leading industry watchers. Department of Management Studies, BEC Page 3 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Noteworthy achievements Among the top distributors in the country with AUM (Assets Under Management) of Rs 18000 cr from 3.25 lakh investors Network of 47 branches in 35 cities across India and growing, besides over 7800 business associates Aditya Birla Group The Aditya Birla Group (www.adityabirla.com), a US $28 billion conglomerate, is among the largest business houses in India. It enjoys a leadership position in all the sectors in which it operates. It is anchored by a force of 100,000 employees, belonging to 25 nationalities. Its operation spans 25 countries across six continents and is reckoned as India's first multinational corporation. Headquartered in Mumbai, India, over 60 per cent of the Group's revenues flow from our overseas operations. The Group nurtures a work culture where success is built on learning and innovation. The Aditya Birla Group has been adjudged ‘The Best Employer in India and among the top 20 in Asia’ by the Hewitt, Economic Times and Wall Street Journal Study in the year 2007. A US$ 29 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of 130,000 employees, belonging to 30 different nationalities. In the year 2009, the Group was ranked among the top six great places for leaders in the Asia-Pacific region, in a study conducted by Hewitt Associates, RBL Group and Fortune magazine. In India, the Group has been adjudged the best employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 60 per cent of the Group's revenues flow from its overseas operations. The Group operates in 25 countries – India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and Korea. Department of Management Studies, BEC Page 4 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Globally, the Aditya Birla Group is: • A metals powerhouse, among the world's most cost-efficient aluminium and copper producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia, with the largest single location copper smelter No.1 in viscose staple fibre The fourth-largest producer of insulators The fourth-largest producer of carbon black The fifth-largest producer of acrylic fibre The tenth-largest cement producer Among the best energy-efficient fertiliser plants • • • • • • In India: • • • • • • • • Largest cement producer Largest premium, branded apparel company The second-largest producer of viscose filament yarn The second-largest in the chlor-alkali sector Among the top five cellular operators Among top 10 Indian BPO companies by revenue size Among the top five asset management and private sector life insurance companies Among the top three supermarket chains in the retail business Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting. Beyond Business: Transcending business for over 50 years now, the Group has been and continues to be involved in meaningful welfare-driven initiatives that distinctly impact the quality of life of the weaker sections of society in India, South-East Asia and Egypt. Department of Management Studies, BEC Page 5 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ In India, the Group's social projects span 2,500 villages. It reaches out to six million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is healthcare, education, sustainable livelihood, infrastructure and espousing social causes. The Group runs 42 schools, which provide quality education to over 45,000 children in India's interiors. Of these, 18,000 children receive free education. An additional 8,000 students receive merit scholarships. Likewise at its 18 hospitals in India, more than 500,000 patients are given extremely subsidised medical care. The Group transcends the conventional barriers of business and reaches out to the marginalised because of its conviction of bringing in a more equitable society. Department of Management Studies, BEC Page 6 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ About Aditya Birla Money Limited Aditya Birla Money Limited formerly known as Apollo Sindhoori Capital Investments is a leading player in the broking space with nearly 15 years of experience. It became a part of Aditya Birla Group in March 2009, when the group acquired 76% of the company. The Company has a strong distribution network of over 800 own branches and franchisee network, a large customer base in excess of 1,80,000, a strong technology backbone and a range of products delivered through a robust online and offline model. The Company boasts of immense talent pool and vertical specialists which add to its positioning as a major player in this segment. Aditya Birla Money is listed on National Stock Exchange of India Limited [NSE] and The Bombay Stock Exchange Limited [BSE]. It is also registered as Depository Participant with both NSDL and CDSL. Aditya Birla Money offers the following services: • • • • • • • Trading facility in Equity segment on and Derivative segment on NSE & BSE through a single platform Trading facility in commodity segment, including bullion, oils, gaur seed etc. through its subsidiary, Aditya Birla Commodities Broking Limited Depository Participant [DP] services of NSDL and CDSL Online bidding for IPO and Mutual funds Subscription based brokerage plans Distribution of Mutual Funds Insurance Department of Management Studies, BEC Page 7 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Background & Inception of the Company Incorporation Year Registered Office Telephone Fax Chairman Managing Director Company Secretary Auditor Face Value Market Lot Listing Registrar 1995 Ali Towers,No 55 Greams Road, Chennai, Tamil Nadu-600006 91-44-39190000/39190001 91-44-28290835 Kanwar Vivek S Balaji S R Batliboi & Associates 1 1 Chennai,Mumbai,NSE Cameo Corporate Services Ltd Subramanian Building,1ST Floor No 1,Club House Road,Chennai – 600002 Department of Management Studies, BEC Page 8 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Nature of Business Carried Department of Management Studies, BEC Page 9 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Department of Management Studies, BEC Page 10 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Mutual Funds (through Birla Sun life Asset Management Company Limited (“BSLAMC”)) Our foray in to asset management services is through the joint venture with Sun Life Finanical Incorporated Canada wherein we have 50% stake in it. As on August 31, 2006, BSLAMC manage Rs 17,099 Crores of assets under us, with an investor base of over 0.1 crore customers. Our joint venture offers a range of investment options, which include sector specific equity schemes, income plans, debt and treasury products, and offshore funds. It currently has a range of 35 investment schemes including two offshore funds, designed to cater to every need of the investor. We also offer portfolio advisory services for high net-worth investors, which is a rapidly growing business segment for the Company. We are the India’s first asset management Company to be awarded the ISO 9001:2000 certification by DNV Netherlands. Life Insurance [through Birla Sun Life Insurance Company Limited (“BSLI”)] We have presence in life insurance through our subsidiary Birla Sun Life Insurance Company Limited wherein we hold 74% shareholding and rest is with our joint venture partner, Sun Life Financial Incorporated, Canada. BSLI has strategy to ‘create value’ for all its stakeholders - namely, policyholders, employees and shareholders. This has been driven through customer-focused products, a portfolio mix, risk management practices and a multi channel distribution capability in individual and group insurance. BSLI started operations with the launch of innovative unit-linked insurance products. It has geared up through superior value creation and technology in fulfilling our aim to provide multiple products and benefits, greater investment opportunities and to provide the investor populace in India with better liquidity and security. Department of Management Studies, BEC Page 11 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Vision, Mission & Quality Policy Our Vision “To be a leader and role model in financial services sector with a broad based and integrated business” Our Mission “To deliver superior value to our customers, Share holders, employees and society at large.” Our Values ➢ Integrity – Conduct business in an Ethical & Transparent manner. ➢ Commitment – Towards all Stakeholders and to our Business to provide a healthy, profitable environment. ➢ Passion – Bring in passion in all our activities. Keep Clients and Partners the foremost in all dealings. ➢ Seamless-ness – Work seamlessly across functions to provide "A" Class Service. ➢ Speed – Deliver promises on time. Product / Services Profile Major Finished Products Department of Management Studies, BEC Page 12 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Product Name Year Unit % of STO % Capacity Utilisati on 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Installe d Capacit y 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Prod uctio n 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Sale s Qua ntity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Sales (Rs Cr) 77.04 11.77 5.47 4.44 0.85 0.18 0.15 0.10 0.05 0.00 0.00 51.79 9.11 4.91 Brokerage Interest Received Income from Depository Service Income from Transaction Charge Account Opening Charges Profit on Sale of Investments V Sat Rent/Bandwith Charges Referral Fee Dividend Set Up Cost Income from Operations Brokerage Interest Received Income from Depository Service Mar 201 0 Mar 201 0 Mar 201 0 Mar 201 0 Mar 201 0 Mar 201 0 Mar 201 0 Mar 201 0 Mar 201 0 Mar 201 0 Mar 201 0 Mar 200 9 Mar 200 9 Mar 200 9 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 77.00 11.76 5.47 4.44 0.85 0.18 0.15 0.10 0.05 0.00 0.00 73.14 12.87 6.93 Department of Management Studies, BEC Page 13 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Income from Transaction Charge Account Opening Charges V Sat Rent/Bandwith Charges Referral Fee Dividend Set Up Cost Income from Operations Mar 200 9 Mar 200 9 Mar 200 9 Mar 200 9 Mar 200 9 Mar 200 9 Mar 200 9 Rs. Rs. Rs. Rs. Rs. Rs. Rs. 4.75 1.13 0.65 0.48 0.06 0.00 0.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.36 0.80 0.46 0.34 0.04 0.00 0.00 Department of Management Studies, BEC Page 14 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Compare Company Company Name Aditya Birla Money Debt-Equity Ratio Long Term DebtEquity Ratio Current Ratio Fixed Assets Inventory Debtors Interest Cover Ratio PBIDTM (%) PBITM (%) PBDTM (%) CPM (%) APATM (%) ROCE (%) RONW (%) 23.59 17.96 21.00 15.01 9.39 24.96 18.89 -203.75 -206.25 -203.75 -203.75 -206.25 0.00 0.00 1.12 1.80 0.00 1.92 6.95 0.29 0.13 0.00 0.00 0.00 0.45 0.05 Bagalkot Udyog 0.00 0.00 Department of Management Studies, BEC Page 15 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Company Name Aditya Birla Mon Tata Inv.Corpn. 0.18 0.18 First Leasing 4.56 4.51 CIFCO Finance 0.00 0.00 Eicher Debt-Equity Ratio Long Term DebtEquity Ratio Current Ratio Fixed Assets Inventory Debtors Interest Cover Ratio PBIDTM (%) PBITM (%) PBDTM (%) CPM (%) APATM (%) ROCE (%) RONW (%) 0.45 0.05 0.00 0.00 1.12 1.80 0.00 1.92 6.95 23.59 17.96 21.00 15.01 9.39 24.96 18.89 6.26 151.54 0.00 129.96 0.00 95.84 95.78 95.84 83.42 83.36 15.25 15.67 7.44 1.00 0.22 8.72 1.48 89.61 79.56 35.81 26.90 16.85 14.44 17.00 0.39 0.01 0.00 0.08 -0.22 -40.00 -260.00 -1220.00 -1220.00 -1440.00 0.00 0.00 2.02 27.19 0.00 0.00 0.00 99.43 99.40 99.43 99.49 99.46 71.05 71.09 Department of Management Studies, BEC Page 16 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Company Name Aditya Birla Mon Sundaram Finance 5.98 4.63 Walchand People 0.01 0.00 Oswal Agro Mills 0.05 0.00 Rossel Finance 0.29 0.26 Debt-Equity Ratio Long Term DebtEquity Ratio Current Ratio Fixed Assets Inventory Debtors Interest Cover Ratio PBIDTM (%) PBITM (%) PBDTM (%) CPM (%) APATM (%) ROCE (%) RONW (%) 0.45 0.05 1.12 1.80 0.00 1.92 6.95 3.70 2.56 4.77 88.09 1.51 2.46 0.28 0.00 0.00 7.50 8.97 0.21 0.12 0.32 -98.86 6.12 0.13 8.95 0.93 -1.46 23.59 17.96 21.00 15.01 9.39 24.96 18.89 80.25 76.66 29.49 21.75 18.16 11.12 18.37 37.59 22.56 34.59 -74.44 -89.47 1.36 -5.45 -241.30 -243.23 -243.76 -231.46 -233.39 0.00 0.00 3.48 -47.68 -29.14 -29.14 -80.30 0.00 0.00 Department of Management Studies, BEC Page 17 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Department of Management Studies, BEC Page 18 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Services Enterprise Application Services Enterprise Solutions Increased globalization and rapid, unavoidable technology changes have added to an organization´s challenges in recent years. One of the riskiest among them is the implementation and management of complex enterprise software packages, as they drastically impact almost every business process within the organization. The implementation of an enterprise application requires mitigating the inevitable risks that come with any change: • • • • • • Complexity of the project Organizational buy-in to change Time/effort required Involvement of your people Organizational stability Enhancement/ modifications of legacy systems We enhance and extend the power of enterprise software by helping companies achieve clear, measurable benefits from their implementations through a comprehensive set of services around leading enterprise solutions. SAP Services To maximize benefits from your SAP system, you need a partner who understands your industry and is able to add value through a combination of business domain, functional, technical, and SAP solution expertise. Minacs is a partner who quickly understands your business challenges and delivers the appropriate SAP solutions. Department of Management Studies, BEC Page 19 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Implementation Services Drawing on our Aditya Birla Group experience and our strategic focus, we provide SAP implementation services in the following industries: • • • • Process Industries: Chemicals and Pharmaceuticals Mill Products: Cement, Pulp and Fiber, Textiles, etc. High Tech: ISV's, Software Services Financial Services: Banking, Life Insurance Our custom solutions include process improvements, extension of existing technology investments, implementation of new technology solutions, and/or integration of several technologies. We combine implementation experience with best practices to create optimum solutions. Support Solutions Today organizations of all sizes are under pressure to boost productivity by optimizing enterprise IT systems that support their business processes. That´s where our Global SAP Support Center can serve as an end-to-end solution. Irrespective of the size of your business, we enable you to quickly structure and transition your SAP support requirements to a dedicated Global Support Center at Minacs, allowing your IT organization to mix and match post-implementation services such as: Department of Management Studies, BEC Page 20 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ • • • • • Helpdesk: dedicated global application management service desk providing 24/7 support Remote SAP infrastructure: BASIS administration, disaster recovery SAP optimization: remote server, network ABAP factory: development, customization, and localization BI reports: skills in datawarehousing, business objects, and other BI tools Staff augmentation: skilled resources available for time-bound/one-time onsite, offshore or the onsite-offshore engagements (e.g., bulk MIS report development, managing SAP changes necessitated by regulatory/business environment change) • Department of Management Studies, BEC Page 21 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ SAP Value Optimization Testing We offer independent validation and verification for SAP implementations, up gradations and enhancements: • • • • • • Functional testing Load, stress, performance testing Test planning Test pilot Security testing Regressive testing Solution Integration We bring together technology and domain competencies with best-in-class components, frameworks, and partner solutions to offer complete solution integration. Some examples: • • Integration/Interface development: NetWeaver, WAS, J2EE, Microsoft .NET. BPM/ workflow enablement: Filenet, IBM, Documentum. Migration: easy, efficient and risk free RAMP migration methodology SOA-enablement/migration Strategic Consulting Service In addition to the packaged solution services, Minacs IT also offers consulting services that help clients evolve their enterprise IT strategy: • • • • • Defining a global IT vision, architecture and roadmap for the enterprise CIO consulting services to formulating an actionable prioritized set of IT initiatives Assessment consulting for organizations looking to leverage emerging technologies for business value Department of Management Studies, BEC Page 22 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ • • Business process re-engineering and change management Increasing the ROI of existing investments in IT: feasibility studies and postimplementation audits Department of Management Studies, BEC Page 23 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Area of Operation Macro-economic data for the US and Europe show some recovery of economic activity compared to the last year. The acute phase of financial crisis has apparently passed by, and global economic recovery is under way. Financial markets have stabilized. Interbank liquidity has reached a level close to its “normal” pre-crisis range. Currencies, which fell against the U.S. Dollar in the immediate aftermath of the crisis, have largely recovered to their pre-crisis levels. Also, borrowing costs for emerging market borrowers have stabilized over the last few quarters. International capital flows to developing countries have also improved with a rapid run-up during the last months of 2009. The continuing situation over Greece and some other European countries remains a concern but countered action is being taken to deal with this. US unemployment claims still remain a concern within US but still the improvement in the jobless claims in early 2010 gives hopes of economic revival . The Fed’s move to keep interest rates near- zero indicates the government focus on supporting the economic recovery which is in nascent stage. China’s GDP expansion by 8.4% in FY10 once again made it the fastest growing economy in the world. The growth was driven by financial stimulus packages to infrastructure projects and also an easy money policy. But the recent indications are one of tightening from the Chinese central bank to prevent unnatural build up of asset prices. A revaluation of Yuan is also a factor to reckon with. Department of Management Studies, BEC Page 24 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Infrastructure Facility IT Infrastructure Management IT Infrastructure outsourcing is a fairly recent trend but has evolved into a differentiating, agility-creating business solution that enterprise are increasingly looking to leverage. It offers significant room for continuous improvement and is thus a key business solution from Aditya Birla Minacs, melding as we do our process and technology expertise to provide strategic partnership, value for money, and to help you optimize the usage of your infrastructure. If you want your IT infrastructure to do more for your business, you need a partner who can provide strategic as well as business solutions. Minacs can transform your present infrastructure or cost landscapes (e.g. to restructure capex/ opex imbalances). Our comprehensive array of IT infrastructure services broadly encompasses Strategic IT Assessment, and Infrastructure Monitoring and Management Services, which include: End user services: • • Service desk- onsite, central and remote Application packaging and core build services Enterprise computing services: • • • Server management Network services Data center services Messaging services: • • • Messaging monitoring and management Enterprise messaging services Messaging infrastructure management Page 25 Department of Management Studies, BEC ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ • Planning, designing, implementation and support, infrastructure management Database services: • • • Monitoring Basic administration Consulting and advanced administration Web ops services: • • • • • • Proactive monitoring Admin and troubleshooting Performance tuning Automation Advanced administration Life cycle management Managed security services: • • • • • Firewall and proxies Antivirus IDS, IPS and DNS Penetration and testing vulnerability assessment Content filtering RIM practices: • • • • End user services Enterprise computing services Network and voice services Managed security services Department of Management Studies, BEC Page 26 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Department of Management Studies, BEC Page 27 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Organization Structure BOARD OF DIRECTORS Composition, Category, Size of the Board The Board of Directors of the Company is a balanced Board, comprising of a Managing Director and Non-Executive Directors which includes independent professionals. As on March 31, 2010, there were six Directors on the Board, out of which two are Independent, three are Non-Executive and one is a Managing Director. The Company do not have an appointed Chairman and the same is appointed for each such Board Meetings. None of the Directors of the Board is a member of more than 10 Committees or a Chairman of more than 5 Committees (as specified under clause 49) across all Companies in which he is a Director. All Directors have made necessary disclosures regarding their Directorship and Committee positions occupied by them in other Companies. The details of other Directorships, positions held either in Committees of Board of Directors as well as attendance at Board Meetings/Annual General Meeting are as follows: Name of the Category No. of No. of No. of Last AGM Director Board Directorships Committee Attend- Meetings held in other Membership dance Companies# held in other (Yes/No) Companies Held Attended Mr. Pankaj Razdan Non–Executive Director Mr. Kanwar Vivek Managing Director Mr. P. Sudhir Rao Independent Director Mr. G. Vijayraghavan Independent Director Mr. Manoj Kedia Non-Executive Director Mr. Sudhakar Ramasubramanian Non-Executive Director Number of Board Meetings Department of Management Studies, BEC Page 28 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ The Board of Directors met four times during the year ended March 31, 2010 i.e on April 21, 2009, July 15,2009, October 14, 2009 and January 19, 2010. The maximum gap between the two Board Meetings was not more than four months. Department of Management Studies, BEC Page 29 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Organization Chart Department of Management Studies, BEC Page 30 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Skills Mangalm Birla Kumar Experienced Management and Technical Team CEO D.Muthukumaran Chairman of Board The management team across our businesses brings with them experience in their Management Corporation respective business segments. We believe that our management team is well Aditya Birla placed to provide strategic leadership and direction to explore new emerging Misra CIO Santrupt opportunities in these sectors as well as constantly improve our current operations. We have witnessed low attrition of key management personnel and Management Private have also recruited several professionals with domain expertise in critical areas. We believe these provide us with a significant competitive edge. Audit World Class Manufacturing Communication Legal Vikram Rao Aditya Birla Central Cell Hindalco Ind.Ltd Idea Cellular Ltd Corporate Affairs & Development Safety, Health & Environment Corporate Economics Cell Human Recourse Grasim Industries Ltd Management Service Division Strategy Business Development Department of Management Studies, BEC Page 31 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ STRATEGY To managed a diversified portfolio of businesses over a period of time classified into two broad segments i.e. “High Growth Businesses” and “Value Businesses”. While the high growth businesses have potential to grow and expand requiring funds to meet their plans, value businesses are those businesses, which have matured and are generating stable surplus. Our strategy is to increase the share of High growth businesses in total revenue by deploying surplus cash from Value businesses to grow the high growth businesses. Department of Management Studies, BEC Page 32 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ SWOT Analysis FINANCIAL PERFORMANCE AND REVIEW OF OPERATIONS Your Company recorded an Income from Operations of Rs. 11,045. 92 Lakhs for the year under review, on a consolidated basis. This was 51% higher than the previous year. The total consolidated income for the year under review stood at Rs. 11,636.16 Lakhs. The Company’s performance witnessed robust growth in the first three quarters, the 4th Quarter was muted due to a slowdown in the cash market volumes. The Consolidated Net Profit for the year stood at Rs. 1,268.33 Lakhs (up from Rs. 120.62 Lakhs for the previous year) and the net profit margins increased from 1.4% in 2008-09 to 10.9% during the financial year 2009-10. Revenues from equity broking business grew by 49% to Rs. 7,703.84 Lakhs led by increased volumes. Commodities business recorded strong growth for the year under review with a brokerage income of Rs. 1,259.29 lakhs, 165% higher than the previous year’s brokerage of Rs. 474.37 Lakhs, driven by increased volumes. Your Company also obtain credit rating of P1+ from CRISIL Limited for its short term debt programme. Department of Management Studies, BEC Page 33 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Strengths A Diversified Business Portfolio We have a strong portfolio of diversified businesses across manufacturing and services, in most of which we have a significant market presence. Our business portfolio also has a blend of high growth and emerging businesses, and stable and mature businesses. This allows us to de-risk ourselves from the dynamics of any particular industry and has also helped us generate cash flows from our mature businesses, which we have been able to invest in our emerging businesses to create value for shareholders. Strong Brands We believe that as a consolidated Company, our continuing efforts on brand building have resulted in the development and strengthening of a range of strong, distinctive brands like ‘Louis Philippe’, ‘Van Heusen’, ‘Allen Solly’, ‘Peter England’ in Garment business, ‘RAY ONE’ in the Rayon business, ‘Birla Carbon’ in the Carbon Black business, ‘Linen Club’ in the Textile business and ‘Shaktiman’ in the Fertilizer business, which we believe enables us to derive benefits in the market space, through greater consumer confidence and in certain cases a premium pricing for our various products as against our competitors. We believe we are able to leverage our brands to launch new products and extend into new product categories like transforming our brands in Garments business from pure shirts brands to wardrobe brands by introducing range of products namely suits, jackets, t-shirts, accessories etc, which are further being transformed to life style brands by introducing perfumes, shoes. Also, Allen Solly mainly a men’s brand was extended to offer women apparels. We believe that in the process of building these brands we have gained valuable insight into our clients / consumer behaviour, which we leverage and utilize to drive business in today’s competitive markets. Our brands have also won various awards and recognitions in both national and international forums. Department of Management Studies, BEC Page 34 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Integrated Manufacturing We have sizeable integrated manufacturing facilities for most of our businesses with access to captive power and in house manufacturing of key inputs like caustic soda for VFY, wool top for worsted yarns, and ammonia for urea. Our manufacturing base helps us to have a control on our production and also allow us to manufacture high quality products on an efficient basis and at low cost. We believe our facilities help us to substantially reduce new product /design development time and cost and ensure continued availability of our products to customers. Focus on Quality We believe that we have established our reputation as a reliable manufacturer of products. All of our units namely carbon black, textile, fertilizer, rayon, insulator. We have received various accreditations for our manufacturing units. For more details on the various certifications received by us, please refer to the section titled “History and Corporate matters” on page 95 of this Draft Letter of Offer. 30 Track record of handling large projects and successful acquisitions Since our inception, we have implemented several expansions at our existing facilities as well as greenfield projects. We have also successfully completed and integrated several acquisitions, including the acquisition/merger of Madura Garments, PSI Data Systems, TransWorks, and Indo Gulf Fertilizer to name a few. We believe that our knowledge of multiple businesses, acquisition experience and project management expertise positions us to leverage emerging opportunities in all the segments of our businesses. Department of Management Studies, BEC Page 35 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Experienced Management and Technical Team Our management team across our businesses brings with them experience in their respective business segments. We believe that our management team is well placed to provide strategic leadership and direction to explore new emerging opportunities in these sectors as well as constantly improve our current operations. We have witnessed low attrition of key management personnel and have also recruited several professionals with domain expertise in critical areas. We believe these provide us with a significant competitive edge. Department of Management Studies, BEC Page 36 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ OUTLOOK After an exciting 2009-10 which saw most equity markets around the globe recover sharply from their March lows, the markets move into 2010-11 with hope of a steady global economic recovery translating into pickup in business and investment cycles. Corporate earnings have been good and the strong GDP growth and IIP numbers send signals that the economy is positively on revival phase. A stable government that is focused on moving ahead with the divestment process and stepping up infrastructure spending should support the recovery. In India, while the view is positive on equity markets over the medium term, 2010-11 promises to be an interesting year as well as a challenging one. With this background, and having posted encouraging numbers for the year ended March 31, 2010, your company is poised for growth and expansion in 2010-11. The Company now see the need more than ever to work on the 5 pillars of our business - Brand, Product, Distribution, Operations, Service and People – in a focused and sustained manner. The Company plans to augment its research and product offerings to match the best in the industry. Your Company will increase its footprint mainly through business partners. However, additional branches are being added predominantly in Western and Northern India which represent a large opportunity for broking. This would also help to enhance the Company’s presence in these geographies. Department of Management Studies, BEC Page 37 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ OPPORTUNITIES AND THREAT The key concerns across markets at this point stem from the surge in inflation and the timing of exit of the easy monetary policy by the central banks. This is the time when real assets like commodities will be in focus and all financial markets are likely to stay volatile. The Company’s operations are linked to the general market and economic conditions and any positive or negative move can impact revenues. However, the Company looks for diversification and appropriate strategies to minimize the impact. Technology obsolescence is another area of concern in broking industry and can create impediments to growth. However, your Company continues to assess technology and other ancillary requirements on a regular basis and take investment decisions at the appropriate time. The market conditions and the Company’s plans for expansion and growth in 2010-11 are dependent on many external factors. Many of those factors will be regularly monitored as they will be the key for delivery of our desired results. The Company however continuously does a SWOT analysis, for ensuring a sustainable growth by exploring various opportunities available in the market under the applicable regulatory framework. Department of Management Studies, BEC Page 38 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ RISK AND CONCERNS Like in any other business your Company is no stranger to risks. The Company encounters market risk, credit risk and operational risks in its daily operations. The typical risks themes around broking business are • Volatility in markets • Inadequate client profiling and KYC documentation • Failure to execute transactions in line with prescribed processes and procedures • Technology failures The Company’s philosophy and approach to risk and its management is one of informed investing. The Company’s policies, procedures and systems are built around this theme. Some of the broad guiding principles that are enumerated in the Company’s Risk Management framework are as below: • Systematic and structured risk policy framework • Proper and informed client selection process • Appropriate monitoring and surveillance for minimization of losses • Pro-active handling of operational risk Department of Management Studies, BEC Page 39 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Achievement Awards Aditya Birla Group, India's first multinational corporation, traces its origins back to the tiny village of Pilani in the Rajasthan desert, where Seth Shiv Narayan Birla started cotton trading operations in 1857. Today, the Group's footprint extends to 25 countries and its revenues are US$ 29 billion. We retrace the highlights of this remarkable journey, starting from the present: 2010 • Mr. Kumar Mangalam Birla, Chairman of the Group, was conferred the All India Management Association (AIMA) Managing India Award 2010 for ' Business Leader of the Year'. AIMA confers these awards to persons who are “exemplary leaders who have made a fundamental difference”. 2009 • Grasim's pulp and fibre division has won the highly prestigious Asian CSR Award. The Asian CSR Awards, Asia's Premier CSR Awards program, is a project of the Asian Institute of Management, Manila. The Ministry of Labor and Social Welfare, Government of Thailand will be conferred “The Best Labor Relations and Welfare Award, 2009” on Indo Thai Synthetic Company Limited. Birla Sun Life Mutual Fund has been named "The Asset Management Company of the Year, India", by the Hong Kong based magazine, "The Asset", in the country awards category of their "Triple A Investment Performance Awards 2009". CNBC TV18 Crisil recognised Birla Sun Life Mutual Fund as "The Mutual Fund House of the Year" in 2008 and 2009 (for 2007 and 2008), creating history as the only fund house to have won this recognition in two consecutive years. The Birla Sun Life Equity-Linked FMP won the "Best Local Page 40 • • • • Department of Management Studies, BEC ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Currency Structured Product-India" at - Triple A Investment • Performance Awards 2009. The Best "Onshore Fund House - India Award" by Asian Investor, a Hong Kong based magazine at - Asian Investor Investment • Performance Awards 2009”. Rajiv Gandhi Award for Eminence in Social Field, 2009 was conferred on Mrs. Rajashree Birla by Mr. Jyotiraditya Scindia (Union Minister of State, Commerce & Industry) on 19 August 2009. The award recognises Mrs. Birla's pathbreaking work among the poor, more so in India's villages, carried out through the Aditya Birla Centre for Community Initiatives and Rural Development. Idea Cellular wins the Economic Times' "Emerging Company of the Year Award for 2009". Vikram Cement and Aditya Cement wins the Federation of Indian Mineral and Industries' "Social Awareness Award for the year 200809". In recognition of work that truly exemplifies the highest values of society and corporate leadership for social responsibility and sustainable development initiatives, the Reader's Digest Pegasus Star Award has been conferred on Hindalco. Mrs. Rajashree Birla who spearheads all the Group's social projects received this much coveted award on behalf of Hindalco from Mr. Arun Jaitley, MP, Rajya Sabha, on 21 January 2009 in Delhi. • • • 2008 • The President of India, Mrs. Pratibha Patil conferred the much coveted Rotary International Polio Eradication Champion Award on Mrs. Rajashree Birla in an elegant function at the Rashtrapati Bhavan (Delhi), attended by the Chairman, select Rotarians and WHO officials. 2007 Department of Management Studies, BEC Page 41 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ • The Aditya Birla Group was honoured with the India Today Group's Readers Digest Gold award in recognition of the work that truly exemplifies the highest values of society as well as those of Reader's Digest. The award was received by Mrs. Rajashree Birla, Chairperson, Aditya Birla Center for Community Initiatives and Rural Development, at the Pegasus Corporate Social Responsibility Awards 2007 function. Hindalco awarded the CII - Sorabji Green Business Centre "National Award for Excellence in Water Management 2007". In May 2007, Novelis became a Hindalco subsidiary with the completion of the acquisition process. The transaction makes Hindalco the world's largest aluminum rolling company and one of the biggest producers of primary aluminum in Asia, as well as being India's leading copper producer. • • 2006 • • • Hindalco in a joint venture with Almex USA Inc. TransWorks Information Services announces success of bid to acquire Minacs Worldwide. Grasim Industries Limited, India; Thai Rayon Public Company Limited, Thailand and P.T. Indo Bharat Rayon, Indonesia form a JV with Hubei Jing Wei Chemical Fibre Company, China, for VSF. Hindalco awarded the Greentech Safety Silver Award for its outstanding safety performance during 2005-06. • 2005   Indian Rayon re-christened as Aditya Birla Nuvo. Aditya Birla Group to set up a world-class aluminium project in Orissa.  The Aditya Birla Group signs a framework agreement to acquire St Anne Nackawic Pulp Mill, Canada. 2004 • Board reconstituted with Mr. Kumar Mangalam Birla taking over as Page 42 Department of Management Studies, BEC ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ • Chairman. Completion of the implementation process to demerge the cement business of L&T and completion of open offer by Grasim, with the latter acquiring controlling stake in the newly formed company UltraTech. Grasim, Nagda, received the FICCI Annual Award 2003-2004 in recognition of corporate initiaitve in rural development. Aditya Birla Chemicals (India) Limited, Rehla, Jharkhand, has received the FICCI Annual Award 2003-2004 in recognition of corporate initiative in family welfare. Hindalco recieves India CFO Award 2004 for excellence in finance in a large corporate. Scheme of Arrangement announced to merge Indal with Hindalco. Indian Rayon completes its brownfield expansion of 40,000 TPA at Hi-Tech Carbon, Gummidipundi, taking total capacity to 1,60,000 TPA. Deming Award for Indo Gulf. Indal wins FICCI Award 2002-2003 for 'Corporate Initiative in Rural Development'. • • • • • • • 2003 • • Mr. Kumar Mangalam Birla, Chairman of the Group, is selected as Business India's Businessman of the Year - 2003. Mr. Kumar Mangalam Birla is selected as The Economic Times' Business Leader of the year. The Group is ranked 16th in India's first ever survey of 'Great places to work in', published in Business World magazine. The Group's joint venture concern, Birla Sun Life Insurance, is ranked 9th in the same study. The Group is ranked 20th in a study on the 'Best Employers in India', conducted by Hewitt Associates and Business Today. Hindalco receives the Asian CSR Award for its "Rural Poverty Alleviation Programme". The Asian CSR Awards are Asia's premier awards programme on Corporate Social Responsibility. • • • Department of Management Studies, BEC Page 43 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ • The Group acquires the Mount Gordon Copper mines in Australia, another strategic step in becoming a globally competitive copper player. Liaoning Birla Carbon, the Group's first carbon black company in China, is incorporated. Indian Rayon acquires TransWorks, a leading Indian ITES / BPO company. The board of engineering major Larsen & Toubro Ltd (L&T) decides to demerge its cement business into a separate cement company (CemCo), in which L&T will retain 20 per cent of its equity with the balance to be distributed to their shareholders in proportion to their shareholding in L&T. As a consequence, Grasim to acquire an 8.5 per cent equity stake from L&T and then make an open offer for 30 per cent of the equity of CemCo, to acquire management control of CemCo. The Group divests its entire 37.38 per cent equity stake in Mangalore Refineries and Petrochemicals Ltd (MRPL) to the Oil and Natural Gas Corporation (ONGC). Birla Copper acquires the Nifty Copper Mines in Australia, as part of a strategic plan to make the company an integrated copper producer, and source raw material for its copper smelter at Dahej, Gujarat. Indian Rayon formally launches its insulators joint venture with NGK Insulators Ltd., Japan, christening it as "Birla NGK Insulators Private Limited. Birla Copper, a strategic business unit of Hindalco, is accorded London Metal Exchange (LME) registration. Its copper cathodes are approved as 'Grade A' copper brand by LME. • • • • • • • 2002 • The Grasim board approves an open offer for purchase of up to 20 per cent of the equity of L&T, in accordance with the provisions and guidelines issued by the Securities & Exchange Board of India Department of Management Studies, BEC Page 44 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Regulations, 1997. • • Grasim increases stake in L&T to 14.15 per cent (351.84 lakh shares). Landmark corporate restructuring of Hindalco and Indo Gulf. The fertiliser business of Indo Gulf to be demerged into a separate company called Indo Gulf Fertilisers. Indo Gulf's copper business to be merged with Hindalco, creating a non-ferrous metals powerhouse. Grasim divests its Gwalior unit to Melodeon Exports Limited, and consolidates textile operations at a single location in Bhiwani, MP, which will manufacture both 'Grasim' and 'Graviera' brands. PSI Data Systems acquires Birla Technologies Ltd, bringing the Group IT services business under one umbrella. Indal acquires a controlling stake in Anapurna Foils Ltd (AFL), to augment its position in the foil and packaging sectors. Subsequently AFL is merged with Indal. The Group receives The Economic Times' "Corporate Citizen" of the year award. • • • • 2001 • Grasim acquires 2.50 crore shares -- representing just over 10 per cent of the equity -- in L&T from Reliance Industries Ltd. Birla Consultancy & Software Services spun off; becomes a separate entity called Birla Technologies Ltd. Indian Rayon acquires a stake in PSI Data Systems, in one of the largest cash transactions in the Indian technology sector. Grasim closes its pulp plant at Mavoor as a part of its restructuring initiatives. • • • 2000 • Indian Rayon acquires Madura Garments and selected overseas brand Page 45 Department of Management Studies, BEC ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ rights, taking the Group to the top of the league in the branded • apparels sector. The Group forays into e-business through a strategic alliance of its software arm, Birla Software and Consultancy Services (BCSS), with • • Lawson Software (USA). 'Gyanodaya', the Institute of Management Learning of the Adiya Birla Group, is inaugurated. Hindalco acquires Indal. The Indal board is reconstituted. Mr Kumar Mangalam Birla becomes Indal's new chairman. The Group holding goes up to 74.6 per cent, and further increases to 96 per cent in FY'03. The Insurance Regulatory Development Authority (IRDA) grants registration in principle to Birla Sun Life Insurance Company. Indian Rayon acquires major world rights for international apparel brands Louis Philippe, Allen Solly and Peter England. The Group announces its intention to launch a 450 MW `Green [Power Project' in Karnataka. The merger of Birla AT&T and Tata Cellular is completed. • • • 1999 • A joint venture with financial services major Sun Life of Canada is inked, as part of the overall restructuring of the Group's financial services business. 1998 • The Group forms a 50:50 joint venture company with Tembec Inc. of Canada, called A.V. Cell Inc., to supply pulp for the Group's VSF • operations. Grasim acquires Dharani Cement and Shree Digvijay Cement to consolidate the group's leadership position in cement. The cement businesses of Indian Rayon and Grasim are consolidated into a single division of Grasim – the biggest restructuring ever by any corporate entity in India. The Group forays into copper with the commissioning of Indo Gulf's Page 46 • • Department of Management Studies, BEC ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ • copper smelter – the largest of its kind in India. Thai Organic Chemicals begins commercial operations of ChlorAlkali and Epichlorohydrin. 1996 • • To honour the memory of the late Aditya Birla, a new corporate logo – Aditya, the rising sun – is launched. All group companies are consolidated under the umbrella of the Aditya Birla Group, led by Mr Kumar Mangalam Birla. P.T. Indo Liberty Textiles is incorporated to manufacture yarn in Indonesia. • 1995 • • The Group enters the telecommunications sector through a joint venture with AT&T (USA). Thai Sulphites & Chemicals is incorporated to manufacture sodium sulphite and sodium metabisulphite. 1994 • • 1992 • The Birla Growth Fund is renamed Birla Global Finance Limited, as its span of operations expands. Alexandria Carbon Black, the Group's first joint venture with the Egyptian government, is established. Thai Epoxy and Allied Products commences production of Epoxy Resins in Thailand. 1991 • Pan Century Oleochemicals commences production of fatty acids and glycerine in Malaysia. 1990 • Mr Kumar Mangalam Birla gets actively involved in the Group's operations. Department of Management Studies, BEC Page 47 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ 1989 • Thai Peroxide commences manufacturing of hygrogen peroxide solutions in Thailand. 1988 • The government liberalises the petroleum industry. The Aditya Birla Group enters into a joint venture with Hindustan Petroleum Corporation Ltd to set up a three-million-tonne refinery, Mangalore Refineries and Petrochemicals Ltd (MRPL), at Mangalore, Karnataka. 1987 • • Indian Rayon is renamed as Indian Rayon and Industries Limited (IRIL), to reflect its wide horizon of activities. Thai Acrylic Fibre is incorporated to produce fibre and tow. 1986 • The Birla Growth Fund is set up to finance industrial equipment, plant and machinery and consumer durables, as well as for stock market operations. 1985 • India's first gas-based fertiliser plant in the private sector – Indo Gulf – goes on stream at Jagdishpur, UP. 1984 • Thai Polyphosphates and Chemicals commences production of sodium phosphates in Thailand. 1982 Department of Management Studies, BEC Page 48 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ • P.T Indo Bharat Rayon is established. It is the first producer of Viscose Staple Fibre in Indonesia. 1978 • Thai Carbon Black, the Group's first carbon black company is incorporated in Thailand. 1977 • Pan Century Edible Oils is incorporated in Malaysia, going on to become the world's largest single-location palm oil refinery. 1975 • The Indo Phil Group of companies, the first Indo-Filipino joint venture commences production of spun yarn. 1974 • Thai Rayon, the Group's Viscose Rayon Staple Fibre business is incorporated in Thailand. 1973 • P.T. Elegant Textiles is established to manufacture spun yarn. It marks the Group's first venture in Indonesia. 1969 • Aditya Birla sets up Indo-Thai Synthetics Company Ltd, the group's first overseas company. 1967 • Hindalco sets up a captive power plant at Renusagar - a significant strategic move. 1966 Department of Management Studies, BEC Page 49 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ • 1965 • The Indian Rayon Corporation Ltd is acquired. Aditya Birla, grandson of the legendary Ghanshyamdas Birla, starts the Eastern Spinning Mills & Industries. 1962 • Hindalco commences production at its aluminium complex at Renukoot, UP. 1958 • Hindalco is incorporated. 1947 • Grasim is incorporated. It commences operations with a small rayon weaving unit at Gwalior, MP. 1919 • Ghanshyamdas Birla, grandson of Shiv Narayan Birla, sets up the first Birla jute mill, marking his entry into the manufacturing sector. Rapid business expansion follows. 1857 • The foundation of the Birla Group of Companies is laid by Seth Shiv Narayan Birla – cotton trading operations commence at Pilani, Rajasthan. Department of Management Studies, BEC Page 50 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Financial Summary Latest Results: Particulars Jun 2010 (Rs. In Crores) Gross Sales Other Operating Income Other Income Total Income Total Expenditure PBIDT Interest PBDT Depreciation Tax Fringe Benefit Tax Deferred Tax Reported Profit After Tax Extra-ordinary Items Adjusted Profit After Extra-ordinary item 25.51 0.00 1.19 26.70 19.73 6.97 1.21 5.76 1.62 1.37 0.00 0.00 2.77 0.00 2.77 EPS (Unit Curr.) EPS (Adj) (Unit Curr.) Calculated EPS (Unit Curr.) Calculated EPS (Adj) (Unit Curr.) Calculated EPS (Ann.) (Unit Curr.) Calculated EPS (Adj) (Ann.) (Unit Curr.) Department of Management Studies, BEC 0.50 0.50 0.50 0.50 2.00 2.00 Page 51 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Book Value (Unit Curr.) Dividend (%) 0.00 0.00 Department of Management Studies, BEC Page 52 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Particulars Jun 2010 (Rs. In Crores) Reserve & Surplus Face Value 0.00 1.00 Public Shareholding (No Of.Shares) Public Shareholding (% in Equity) 13850000.00 25.00 Pledged/Encumbered - No. of Shares Pledged/Encumbered - % in Total Promoters Holding Pledged/Encumbered - % in Total Equity 0.00 0.00 0.00 Non Encumbered - No. of Shares Non Encumbered - % in Total Promoters Holding Non Encumbered - % in Total Equity 41550000.00 100.00 75.00 PBIDTM(%) PBDTM(%) PATM(%) 27.32 22.58 10.86 Department of Management Studies, BEC Page 53 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Quarterly Results: In Quarters (Rs. In Crores) Particulars Gross Sales Other Operating Income Other Income Total Income Total Expenditure PBIDT Interest PBDT Depreciation Tax Fringe Benefit Tax Deferred Tax Reported Profit After Tax Extra-ordinary Items Adjusted Profit After Extra-ordinary item Jun 2010 25.51 0.00 1.19 26.70 19.73 6.97 1.21 5.76 1.62 1.37 0.00 0.00 2.77 0.00 2.77 Mar 2010 23.11 0.00 1.33 24.44 19.39 5.05 0.83 4.22 1.39 0.64 0.00 0.50 1.69 0.00 1.69 Dec 2009 24.56 0.00 0.87 25.43 18.94 6.49 0.55 5.94 1.38 1.47 0.00 0.19 2.90 0.00 2.90 EPS (Unit Curr.) EPS (Adj) (Unit Curr.) Calculated EPS (Unit Curr.) Calculated EPS (Adj) (Unit Curr.) Calculated EPS (Ann.) (Unit Curr.) Calculated EPS (Adj) (Ann.) (Unit Curr.) Department of Management Studies, BEC 0.50 0.50 0.50 0.50 2.00 2.00 0.31 0.31 0.31 0.31 1.22 1.22 0.52 0.52 0.52 0.52 2.09 2.09 Page 54 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Book Value (Unit Curr.) Dividend (%) 0.00 0.00 0.00 0.00 0.00 0.00 In Quarters (Rs. In Crores) Particulars Reserve & Surplus Face Value Jun 2010 0.00 1.00 Mar 2010 0.00 1.00 Dec 2009 0.00 1.00 Public Shareholding (No Of.Shares) 13850000.0 0 13850000.0 0 25.00 13296000.0 0 24.00 Public Shareholding (% in Equity) 25.00 Pledged/Encumbered - No. of Shares Pledged/Encumbered - % in Total Promoters Holding Pledged/Encumbered - % in Total Equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Non Encumbered - No. of Shares 41550000.0 0 41550000.0 0 100.00 42104000.0 0 100.00 Non Encumbered - % in Total Promoters Holding Non Encumbered - % in Total Equity 100.00 75.00 75.00 76.00 PBIDTM(%) PBDTM(%) PATM(%) 27.32 22.58 10.86 21.85 18.26 7.31 26.43 24.19 11.81 Department of Management Studies, BEC Page 55 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Half Yearly Results: (Rs. In Crores) Particulars Excise Duty Other Income Total Income Total Expenditure PBIDT Interest PBDT Depreciation Tax Deferred Tax Reported Profit After Tax Extra-ordinary Items Mar 2010 0.00 2.21 49.89 38.32 11.57 1.38 10.19 2.79 2.11 0.69 4.60 0.00 Sep 2009 0.00 1.31 51.10 38.85 12.25 1.23 11.02 2.89 2.74 0.51 4.88 0.00 Mar 2009 0.00 1.25 28.74 27.45 1.29 2.36 -1.07 2.28 -1.29 0.03 -2.33 0.00 Department of Management Studies, BEC Page 56 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Balance Sheet: Particulars Mar 201 0 SOURCES OF FUNDS Share Capital Reserves Total Equity Share Warrants Equity Application Money Total Shareholders Funds Secured Loans Unsecured Loans Total Loan Funds Total Liabilities APPLICATION OF FUNDS : Loan / Non-Current Assets Fixed Assets Gross Block Less: Accumulated Depreciation Less:Impairment of Assets Department of Management Studies, BEC Page 57 Mar 200 9 Mar 200 8 Mar 200 7 Mar 200 6 Mar 200 5 5.54 49.38 0.00 5.54 39.90 0.00 5.54 39.56 0.00 5.54 23.16 0.00 4.77 19.17 0.00 4.77 13.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 54.92 45.44 45.10 28.70 23.94 18.16 5.00 35.00 40.00 94.92 0.00 5.00 5.00 50.44 40.30 0.00 40.30 85.40 43.14 0.05 43.19 71.89 33.80 5.04 38.84 62.78 13.24 0.00 13.24 31.40 0.00 0.00 0.00 0.00 0.00 0.00 58.85 24.34 53.58 18.87 46.31 14.28 34.58 10.77 25.37 8.28 15.68 5.39 0.00 0.00 0.00 0.00 0.00 0.00 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Net Block 34.51 34.71 32.03 23.81 17.09 10.29 Department of Management Studies, BEC Page 58 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Particulars Mar 201 0 Mar 200 9 0.16 Mar 200 8 0.00 Mar 200 7 0.00 Mar 200 6 0.79 Mar 200 5 0.79 Capital Work in Progress Investments Current Assets,Loans & Advances Inventories Sundry Debtors Cash and Bank Balance Loans and Advances Total Current Assets Less: Current Liab. & Provisions Current Liabilities Provisions Total Current Liabilites & Provisions Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax 1.32 2.01 2.03 2.05 1.04 1.52 1.01 0.00 81.46 76.96 0.00 23.91 40.72 0.00 55.46 93.63 0.00 52.50 43.46 0.00 82.73 22.56 0.00 32.06 15.17 32.93 191.35 24.91 89.54 19.11 168.20 27.79 123.75 33.52 138.81 11.51 58.74 127.06 1.86 128.92 70.49 1.36 71.85 111.18 1.58 112.76 61.92 12.01 73.93 84.74 9.43 94.17 33.79 5.14 38.93 62.43 0.00 17.69 0.00 55.44 0.00 49.82 0.00 44.64 0.00 19.81 0.00 1.15 6.50 1.74 5.89 0.44 4.56 0.35 3.13 0.95 2.21 0.53 1.03 -5.35 -4.15 -4.12 -2.78 -1.26 -0.50 Page 59 Department of Management Studies, BEC ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Total Assets Contingent Liability 94.92 11.43 50.44 6.38 85.40 3.53 71.89 31.37 62.78 19.39 31.40 12.23 Department of Management Studies, BEC Page 60 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ “STUDY OF THE ONLINE AND OFFLINE SHARE TRADING” Department of Management Studies, BEC Page 61 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ INTRODUCTION One reason why many people are never seriously interested in share trading apart from the risk is that although they are curious, they know it is a hassle to go some place to trade and handle all those paper certificates. Also, many don't have the time for all this. Online trading eliminates both these hassles. First by making your transaction virtually paperless and second by enabling you to buy and sell shares anytime anywhere where there is Internet access. In fact you can even place a sell or buy order by specifying your order value during non-market hours. Which broker can you talk to place a buy order in the middle of the night? With online trading, this is easily possible. It can be your home, office or Internet café; you are ready to go to your account to buy or sell shares or to just watch how your portfolio is performing. There is absolutely no paper involved whatsoever except for the initial application you sign and give for the purpose of taking a web trade account. Only thing you would need to do is send your money to the bank account so that you have the money in the account to be able to buy your favorite stocks. Your share trading system will be linked to your bank account and once you have the money in the account it can be made immediately available for purchase of shares Department of Management Studies, BEC Page 62 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ IMPORTANCE OF THE TOPIC The security and exchange board of India has permitted such trading on January-31-2000. After that many players have offered these services to the investors. Is trading through Internet safe? What if someone steal my investments or, does anyone else have access to my accounts? If these are the questions that stop you from online share trading then the solutions are here. Which decade you are living in? Internet trading today is one of the largest mediums of investments and nothing can compete with it. Its security and reliability can be proved by, the increasing number of users every month. More than 5,000 people are registered every month for online Investments. Apart from being totally secured, easy access and speedy moves makes it more popular among day traders and other stock investors. Department of Management Studies, BEC Page 63 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ OBJECTIVE OF THE STUDY ➢ To study the existing online & offline share trading scenario with respect to Aditya Birla Money. ➢ To study the importance of IT in investment. Department of Management Studies, BEC Page 64 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ DATA COLLECTION METHODOLOGY In order to collect necessary data the following methodology was adopted. 1) PRIMARY DATA A primary data is the data collected afresh. It is collected for the first time from the original source. Primary data is the data that the researcher is collecting themselves using methods such as , ➢ By observation and discussions. ➢ By questionnaire ➢ By interview 2) SECONDARY DATA A secondary data is that data that is required to conduct the study and can be obtained from books, journals, magazines, records etc. Secondary data is data taken by the researcher from secondary sources, internal or external. Secondary data is collected from following sources: 1) Magazines and journals 2) Company websites. 3) Internet 4) Books Department of Management Studies, BEC Page 65 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ SCOPE OF THE STUDY The scope of the study is limited only Pune region only. Department of Management Studies, BEC Page 66 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ LIMITATIONS OF THE STUDY Many constraints were involved in doing this study. Some of them are as follows. ➢ The most significant limitation has been the individuals involved in this study were very busy and did not spare much time in discussion. ➢ The sample size selected for the survey was too small as compared to large population. ➢ The project was carried out only in the Pune, so findings on data gathered can be best true for Pune only and not applicable to other parts of state and country. ➢ Indian stock market is a market where sentiments play a major role in price; hence 100% accurate predictions cannot be made about its future path. Department of Management Studies, BEC Page 67 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ THEORITICAL BACKGROUND CONCEPTUAL BACKGROUND: Definition of share trading Share Market is nothing but you are investing the money on which company you trusted that there is a growth of this company in future. If you choose the right company you will earn or else you will loss. There is also fluctuation in the market due to the Currency value against dollar ➢ 1 year ago ➢ Share-marketing is a type of gambling - respected gambling. It is better that you do not know about it. It will be better if you do not try to know about it. Earn clean money, by hard work. Do not go for lotteries, share-markting, etc. They will give you more tension than money. Department of Management Studies, BEC Page 68 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ OFF-LINE TRADING Doing share trading with the help of broker or through phone is called Offline trading. In other words trading will be done by another person on your behalf based on the instructions given by you, and then the other person can be a broker. The broker will do buying and selling of shares on your behalf depending on the instructions given by you. If you want to do offline share trading then you need to open the demat account. S B S U C C B L L - B I E I E R O K E T O R C K E X B C R H O A K N E G R E R S O U K B E - BR N N T C T C L L I E I E R S O U K B E - BR N N T C T C L L I E I E R S O U K B E - BR N N T C T C L L I E I E R N N T T O K E 1. In off-line transfer of share buyer’s intervention is required. 2. The seller is required to issue a signed delivery instruction slip to his depository. 3. It requires lot of paperwork. 4. The rolling settlement in off-line is T+5. Department of Management Studies, BEC Page 69 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ ONLINE-TRADING Doing share trading with help of computer, Internet connection and with trading/demat account is called Online Share Trading. If you would like to do online share trading then you should have a computer, Internet connection and online trading account. S B C U S T R OC O M U K T E SE O R C K E B X R TR OC C O M U H K A E SE N R TR O G TR OC M U SE 1. In online transfer of share buyer’s intervention is not required. 2. Sighing of delivery instruction slips to his depository is not required. 3. Instant and fast transfer of share. 4. The rolling settlement is on-line is T+2. 5. Paperless transactions – your share certificates get deposited in electronic form (DMAT) in your web trade account. 6. Orders can be also placed offline during non-market hours. 7. For NRIs this is the easiest option to invest in Indian markets. 8. Record of all transactions is available at your fingertips. CONCEPT Department of Management Studies, BEC Page 70 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ 1) DEMAT It is nothing but an electronic form of share. 2) DEMATERIALISATIONS: Physical form converted into electronic form. 3) STOCK BROKER: Stockbrokers are the intermediaries who are allowed to trade in securities on the exchange of which they are members, they buy and sell on behalf of their clients. 4) MUTUAL FUNDS: Mutual funds are financial intermediaries who collect the saving of small investors and invest them in a diversified portfolio of securities to minimize risk and maximize returns for their participation. 5) PRIVATE PLACEMENT: Many companies choose to raise capital for their operation by taking through various intermediaries by taking what in marketing terms would be known as wholesale route. The retail route of approaching the public is expensive as well as time consuming. This is called in financial Market as private placement. 6) INTERNET BROKIN: With the Internet becoming ubiquitous institution have set up securities trading agencies that provide online trading facilities to their clients from their homes. 7) SPEED-e-: In order to extend the benefits of technological progress to investors NSDL has launched SPEED-e services, SPEED-e is internal based facility for all depository participant that enables the account to submit instruction to their depositories through SPEED-e website on internet. Department of Management Studies, BEC Page 71 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ 8) IdeAs:NSDL offers a secured based service for a clearing member of stock exchange and to account holders. This service called Ideas enable clearing member and beneficial account holder to view details of their accounts directly on the Internet. Share Market Trading includes buying and selling of company shares either through Stock Exchange or Over-the-Counter (OTC). It is also called the equity trading. Shares are a certificate, which represents ownership rights of the holder in the company. Share Market is the market for securities where organized issuance and trading of shares takes place either through exchanges or over-the-counter in electronic or physical form. It plays an important role in channelizing capital from the investors to the business houses, which consequently leads to the availability of funds for business expansion. Department of Management Studies, BEC Page 72 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Basically, Share Market can be divided into two parts: 1. Primary Market: -It is the market where new issues of securities are offered to the investors. 2. Secondary Market: - An investor of a secondary market buys a security from another participant of the same and not from any issuing corporation (as in case of Primary Market). Shares in the Share Market are either traded through: (a) Stock Exchange: These are organized market places where stocks, bonds are other equivalents are traded between the buyers and sellers where exchange acts as a counter-party to both the participants in case of any default. The contracts are standardized and not customized ones. For example, NYSE, NASDAQ, NSE, NIKKEI, etc. (b) Over-the -Counter (OTC): These are not centralized exchanges. Here, the trade takes place through a network of dealers. Generally, the OTC contracts are bilateral customized contracts and not standardized ones. Department of Management Studies, BEC Page 73 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ The shares traded are Common Stocks. (C) Common Stocks: Gives an ownership right to the holders of the stock and hence the shareholders are entitled to the earnings of the company according to their stake. Holders also get dividends on those stocks as and when given by the company. Liquidity of common stocks are very high and can be bought and sold at any time of the market hours. Department of Management Studies, BEC Page 74 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Important Participants of Share Market Trading are: 1) Buyer: - An investor who buys a script in the belief that the market will rise. If his hinge becomes right then he makes profit otherwise he suffers loss. 2) Seller: - Seller of a stock sells in the hope that the stock price will go down. 3) Stock Broker Brokers are persons or firms who execute buy/sell order on behalf of the investors and charge a commission for rendering the service. Department of Management Studies, BEC Page 75 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Share Trading are done in three ways:- (a) Offline Share Trading:- In this form of trading the customer either goes to the share broker's place and sits before the share trading terminal and asks the dealer to place orders in his account. Or rings the share broker, ask the share quotes and other relevant information’s, and accordingly places orders over the phone. (b) Online Share Trading The client could avail the share market and could place his order on his own from any place he wants, provided he has a computer with an Internet connection. (C) Open Outcry Trading: Here, the investors put their orders through the brokers and these share brokers in turn place and execute orders on behalf of them on the floor of the exchange. These brokers gather in a particular place on the trading floor known as Trading Post. There is a person called as the Specialist present in the trading post who does the matching of the buy and sell orders. This type of auction method is called Open Outcry Method. Department of Management Studies, BEC Page 76 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Important terms in share market and in share trading:- ➢ Open - The first price at which the stock opens when market opens in the morning. ➢ High - The stock price reached at the highest level in a day. ➢ Low - The stock price reached the lowest level in a day. ➢ Close - The stock price at which it remains after the end of market timings or the final price of the stock when the market closes for a day. ➢ Volume - Volume is nothing but quantity. ➢ Bid - The Buying price is called as Bid price. ➢ Offer - The selling price is called offer price. ➢ Bid Quantity - The total number of shares available for buying is called Bid Quantity. ➢ Offers Quantity - The total number of shares available fo selling is called Offer Quantity. ➢ Buying and selling of shares - Buying is also called as demand or bid and selling is also called as supply or offer. First selling and then buying (this only happens in day trading) is called as shorting of shares or short sell. ➢ Share Trading - Buying and Selling of shares is called share trading . ➢ Transaction - One complete cycle of buying and selling of shares is called One Transaction . ➢ Squaring off - This term is used to complete one transaction. Means if you buy then have to sell (means square off) and if you sell then you have to buy (means square off). ➢ Limit Order - In limit order the buying or selling price has to be mentioned and when the share price comes to that price then you will execute your order with the mentioned price. Department of Management Studies, BEC Page 77 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ ➢ Market Order - When you put buy or sell price at market rate then the price get executes at the current rate of market. The market order gets immediately executed at the current available price. ➢ Stop Loss Orders - Stop loss orders ("stops") are limits set by traders at which they will automatically enter or exit trades - an order to buy or sell is placed in the market if price reaches a specified limit. A stop loss order is set to limit a trader's potential loss. The stop loss is placed below the current price (to protect a long position) or above the current price (to protect a short position). Department of Management Studies, BEC Page 78 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ RESEARCH DESIGN Exploratory Design: The research was generally used to clarify thoughts and opinions about the research problem. I carried-out depth interview and approached clients asked questions about share trading, which helped to explore the research and enjoyed while doing the project in the organization. Descriptive Design: The research was carried-out in detailed by framing the questionnaire. To know the response of the respondents about the Share Trading, it was carried-out pretest and it was re-framed several times. These questionnaires were administered to a sample size of 50 respondents which includes both male and female. Information obtained from the respondents was analyzed and interpreted with the help of SPSS Software. Simple tabulations, cross tabs, hypothesis testing were utilized wherever necessary. A conclusion was drawn for each objective. Department of Management Studies, BEC Page 79 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ RESEARCH METHODOLOGY We are using survey method to collect primary data. Sample: we have chosen 50 people as our respondents for our survey who represents the population of Pune. Sample unit: Pune. Research objectives are clearly stated before designing the questionnaire. Information was collected from the sample size of 50 respondents, which included both males and females. Information obtained from the respondents was analyzed and interpreted with the help of the SPSS Software. Simple tabulations were calculated for each question and cross tabs were provided as and where necessary. Findings revealed by the tabulations were listed in a summarized form as recommended Actions. Department of Management Studies, BEC Page 80 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ DATA ANALYSIS AND INTERPRETATION Findings of the survey: Table No: 1 A Table showing distribution of respondent as per average monthly investment Frequencies Average Monthly Investment Investment Less than 10000 10000-50000 50000-100000 More than 100000 25 15 5 5 Frequency 50% 30% 10% 10% Percentage Analysis: The above table shows that 50% respondents have investment less than Rs.10000 and 30% respondents have their portfolio size between 10000 to 50000.Also 10% respondents have their portfolio size in between 50000-100000 or more than 100000. 10% 10% Interpretation: 50% It means that people prefer to invest in fixed return investment rather than in share .So from that it could be predicted that through there are many fluctuation 30% in the share market but still people prefer to invest in it for the short gain purpose, so it is a positive signal for the online trading. Department of Management Studies, BEC Page 81 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Table No: 2 A Table showing distribution level of respondent as per their Awareness level about the different corporate brokers providing the facilities of online share trading Frequencies Stock Broker You Prefer More Company Share Khan Religare Icici Kotak Mahindra Reliance Money Aditya Birla Money 6 4 6 9 8 17 Frequency 12% 8% 12% 18% 16% 34% Percentage Analysis: From the graph it shows that people who are with the online trading highly awareness with Aditya Birla Money and it is about 34% ,then next come the Kotak Mahindra 18%, Reliance Money about 16% and then comes with ICICI direct 12%, Share khan 12%, and Religare about 8% . Interpretation: It clearly shows that Aditya Birla Money is market leader and Kotak Mahindra is a follower and next to it is Reliance Money, ICICI, Share Khan and then Religare. Department of Management Studies, BEC Page 82 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Table No: 3 A Table showing distribution level of respondent as per their frequency of doing trade Trade Your Share Factors Trade Shares Online Daily Weekly Monthly Sometime 5 7 8 15 15 Offline Analysis: The above chart shows the percentage of Online and Offline Trading of 50 respondents. 5 people do daily online trading, 7 people do weekly online trading, 8 people do monthly online trading, and 15 people do sometime both online and offline trading. 5 7 8 Interpretation: Department of Management Studies, BEC Page 83 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ It clearly shows that professional people prefer more online for trading than offline, and other people prefer rare both online and offline for trading. Department of Management Studies, BEC Page 84 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Table No: 4 A Table showing distribution level of respondent rating online trading option. Frequencies Rate Trading Online Factors Strongly Agree Agree uncertain Disagree Strongly Disagree 6 26 7 6 5 Frequency 12% 52% 14% 12% 10% percentage Analysis: The above chart shows the rating of Online Trading by the respondent. 12% Strongly Agree, 52% Agree, 14%, Uncertain, 12% Disagree, 10% Strongly Disagree. Interpretation: It clearly tells that people Agree to do Online Trading. 14% 52% Department of Management Studies, BEC Page 85 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Table No: 5 A Table showing distribution level of respondent rating offline trading option. Frequencies Rate Trading Offline Factors Strongly Agree Agree uncertain Disagree Strongly Disagree 5 6 10 23 6 Frequency 10% 12% 20% 46% 12% percentage Analysis: The above chart shows the rating of Offline Trading by the respondent. 10% Strongly Agree, 12% Agree, 20%, Uncertain, 46% Disagree, 12% Strongly Disagree. 12% 10% 12% Interpretation: It clearly tells that people Disagree to do Offline Trading. 46% 20% Department of Management Studies, BEC Page 86 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Table No: 6 A Table showing distribution level of respondent as per their factors influences Online Trade Frequencies Factor Influencing Online Trading Factors Time Saving Brokerage Price Floating Flexibility Accessibility Frequency 10 1 7 8 9 Percentage 28% 3% 20% 23% 26% Analysis: This pie chart shows that the influencing factors to trade online out of 35 respondent 28% Time Saving, 3% Brokerage, 20% Price Fluctuating, 23% Flexible, 26% Accessibility for which respondents prefer more Online Trading service. Interpretation: Analysis of pie chart tells us clearly that respondent prefers more Online Trading because it is Time Saving. Department of Management Studies, BEC Page 87 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Table No: 7 A Table showing distribution level of respondent as per their factors influences Offline Trade Frequencies Factor Influencing Offline Trading Factors Time Saving Brokerage Price Floating Flexibility Accessibility Frequency 2 8 2 1 2 Percentage 13% 54% 13% 7% 13% Department of Management Studies, BEC Page 88 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Analysis: This pie chart shows that the influencing factors to trade offline out of 15 respondent 13% Time Saving, 54% Brokerage, 13% Price Fluctuating, 7% Flexible, 13% Accessibility for which respondents prefer more Offline Trading service. Interpretation: Analysis of pie chart tells us clearly that respondent prefers more Online Trading because of Brokerage. Department of Management Studies, BEC Page 89 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Table No: 8 A Table showing distribution level of respondent as per the technology while doing investment. Frequencies Technology is Helping Respondent Yes No Frequency 35 15 percentage 70% 30% Department of Management Studies, BEC Page 90 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Analysis: This pie chart shows that 74% respondent says ‘Yes’ and 26% respondent says ‘No’ and the technology helps for which respondents prefer more Online Trading service. Interpretation: Analysis of pie chart tells us clearly that respondent prefers more Technology while doing investment. Department of Management Studies, BEC Page 91 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Table No: 9 A Table showing distribution level of respondent as per the stock market. Frequencies Stock Market Factors Very Risky Somewhat Risky Moderate Somewhat Safe Very Safe 10 15 10 9 6 Frequency 20% 30% 20% 18% 12% percentage Department of Management Studies, BEC Page 92 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Analysis: This pie chart shows the respondent believes towards Stock Market. Out of 50 Respondents- 20% say very risky, 30% say somewhat risky, 20% say moderate, 18% say somewhat safe and 12% say very safe. Interpretation: It clearly shows that respondent think investing in Stock Market is somewhat risky. Department of Management Studies, BEC Page 93 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Findings 1. The research study found that people prefer to invest in fixed return investment rather than in share .So from that it could be predicted that through there are many fluctuation in the share market but still people prefer to invest in it for the long term gain purpose, so it is a positive signal for the online trading. 2. The study found that Aditya Birla Money have 34 % market share so it is market leader and Kotak Mahindra have 18% market share so it is a follower and next to it is Reliance Money 16%, ICICI & Share Khan 12% and then Religare 8%. 3. The study found that 35 respondents do trading online and 15 respondents do trading offline but professional people prefer more online for trading than offline, and other people prefer rare both online and offline for trading. 4. The study found that rating of Online and Offline Trading by the respondent. It clearly tells that 52% people agree to do Online Trading and 46% Disagree to do offline Trading. 5. The study found that 28% respondents prefer Online Trading because it is Time Saving and 54% respondents prefer Offline Trading because of Brokerage. 6. The study found that 70% respondent prefers more Technology while doing investment. 7. The study found that 30% respondent think investing in Stock Market is somewhat risky. Department of Management Studies, BEC Page 94 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Suggestions 1. The company has to make aggressive marketing so that everyone is aware of the online share trading. 2. Thus awareness gives the opportunity for the acceptance of the online share trading. 3. On the other hand it shows that there is less awareness about the derivatives segment so it is advice to the online broker to give the facilities to the trader. Department of Management Studies, BEC Page 95 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Conclusion The concept of Online Trading is a unique concept with providing quality service to people with affordable price. It launched its Branches in different areas of Pune like Shivaji Nagar, Chinchwad, and Aundh. As the competition is common in all sectors, the Aditya Birla Money is also having tough competitors like Kotak Mahindra, ICICI, Reliance Money, Share Khan, and Religare and other than these it faces competition from unorganized Trader, but the Aditya Birla Money with its best service quality policy and principle it maintaining its brand image in market. Keeping all the above in mind it planning to create awareness. As per the survey of 50 samples size of the respondent shows all positive signals for the online trading. The respondents are much aware about the Trading and Stock Market, so they are willing to purchase the products in it. Finally from Aditya Birla Money the respondents are looking for good quality services, reasonable price and personnel cabin for online share trading. By looking into all above factors there is potential market for Aditya Birla Money in Pune. Department of Management Studies, BEC Page 96 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ Annexure Name: Age: - Occupation: - 1. Are you trading in stock and commodity? a) Yes b) No (If ‘YES’ continue with next question and if ‘NO’ go to last question) 2. What is your average monthly investment? a) <10000 c) 50000-100000 b) 10000-50000 d) more than 100000 3. Which stock broker you prefer more a) Share khan b) Religare c) ICICI d) Kotak Mahindra e) Reliance Money f) Aditya Birla Money 1. How frequently do you trade? a) Daily c) Monthly b) Weekly d) sometime Page 97 Department of Management Studies, BEC ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ 2. What way do you trade your share? a) Online b) Offline 3. Rate trading option? a) Online Strongly Agree Agree Uncertain Disagree Strongly Disagree b) Offline Strongly Agree Agree Uncertain Disagree Strongly Disagree 1. Which factors influences you to trade Online / Offline a) Time saving b) Brokerage c) Price fluctuating d) Flexible e) Accessibility Department of Management Studies, BEC Page 98 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ 1. Do you think technology is helping while doing investment a) Yes b) No 1. What do you think about the stock market? Very Safe: Some What Safe: Moderate: Some What Risky: Very Risky 2. What is your opinion about stock market / commodity market? _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ ___________________________________________________ Department of Management Studies, BEC Page 99 ADITYA BIRLA MONEY MART LIMITED ‘ABMML’ BIBILOGRAPHY A) Magazine: 1) Business today B) Websites:1) www.adityabirlamoney.com. Department of Management Studies, BEC Page 100