GEOJIT BNP PARIBAS FINACIAL SERVICES LTDA report on the organization study submitted in partial fulfillment of the requirements for the MBA (Full time) Degree of the Mahatma Gandhi University Submitte by d INDU R Reg. No.22425 2010-12 Batch Focus on Excellence FISAT BUSINESS SCHOOL Hormis Nagar, Angamaly,Cochin –68 577 3 . June 2011 ACKNOWLEDGEMENT First and foremost, I thank the Lord Almighty for his perpetual showers of blessings, which led to the success of my Organizational Study. I take this opportunity to express my deep sense of gratitude to all those who have helped me throughout this organizational study. It gives us immense pleasure to acknowledge all those who have rendered encouragement and support for the successful completion of this work. I would like to convey my heartfelt thanks to Mr Davis (Senior H R Manager, Geojit BNP Paribas) for his guidance and valuable suggestions during the course of my Organizational Study. I make use of this opportunity to express my heartfelt gratitude to Mr. M Balachandran (Vice President, Credits, Geojit BNP Paribas for providing me all facilities for making my Organizational Study a successful one. It is indeed a pleasure to express my sincere thanks to Mr Sabu M. Nair and Mrs. Smarty Mukundan for giving me proper direction and suggestions. I extend my sincere thanks to Dr P A Mathew, The Dean and Director Fisat Business School. Finally, I wish to express my wholehearted thanks to my parents, friends and well wishers who extended their help in one way or other in the preparation of my OS report. 2 DECLARATION I hereby declare that this project report entitled Organizational Study ” A ORGANIZATIONAL STUDY OF GEOJIT BNP PARIBAS FINANCIAL SERVICES LIMITED” is a record of bona-fide work done by me in GEOJIT BNP PARIBAS FINANCIAL SERVICES Ltd, KALOOR during the year “03/06/11 to 03/07/11” under the supervision of Mr. DAVIS PAUL (SENIOR H R MANAGER), GEOJIT BNP PARIBAS and Mr. SABU M NAIR( FACULTY) FISAT Business School , and that no part of this report has formed the basis for award of any degree, diploma, associate ship, fellowship or any other similar title or recognition in any other institution. Hormis Nagar 13.07.2011 Indu R 3 9 2.2 Chapter – 2 2.11 Chapter-3 3.1 3. 7 8 9 14 15 16 17 17 18 18 19 19 22 23 24 36 37 40 52 4 .10 2.1 2.8 2.2 3.6 2.3 CONTENT STOCK MARKET INDUSTRY THE GLOBAL SCENARIO THE INDIAN SCENARIO GEOJIT BNP PARIBAS – PROFILE INTRODUCTION EVOLUTION OF THE COMPANY OBJECTIVES OF THE COMPANY VISION VALUES AND BELIEFS PROFILE DETAILES OF GEOJIT PRODUCTS & SERVICES SUMMARY MILESTONS OVERSEAS & JOINT VENTURE BOARD OF DIRECTORS MANAGEMENT FUNCTIONAL DEPARTMENTS OF GEOJIT BNP PARIBAS ORGANIZATION STRUCTURE HUMAN RESOURCES DEPARTMENT OPERATIONS DEPARTMENT PAGE NO.3 2.1 1.7 2. No.TABLE OF CONTENTS Sl.5 2. Chapter – 1 1.2 2.4 2. SUGGESTIONS & CONCLUSION FINDINGS SUGEESTIONS CONCLUSION BIBILIOGRAPHY APPENDICES 62 68 78 82 83 84 85 86 87 5 .3 6 7 MARKETING DEPARTMENT FINANCE DEPARTMENT SWOT ANALYSIS FINDINGS.5 Chapter-4 Chapter -5 5.3.4 3.1 5.2 5. 5(g) CONTENTS ORGANIZATIONAL CHART NO. OF EMPLOYEES HRM DEPARTMENT STRUCTURAL HIERARCHY SALARY STRUCTURE CLEARING DEPARTMENT STRUCTURAL HIERARCHY COMPLIANCE DEPARTMENT STRUCTURAL HIERARCHY COMMODITY DEPARTMENT STRUCTURAL HIERARCHY DEPOSITORY DEPARTMENT STRUCTURAL HIERARCHY DELIVERY BASED VOLUMES INTRA DAY VOLUMES MARKETING DEPARTMENT STRUCTURAL HIERARCHY FINANCE DEPARTMENT STRUCTURAL HIERARCHY NETWORTH GRAPH FINANCIAL SUMMARY TABLE BALANCE SHEET PROFIT & LOSS STATEMENT CASH FLOW STATEMENT RATIOS TABLE PAGE NO.2(c) 3.2(b) 3. 37 42 42 43 49 55 57 59 61 65 65 67 71 72 73 74 75 76 77 6 .5(d) 3.3(c) 3.5(b) 3. 3..2(a) 3.5(c) 3.2(d) 3.5(f) 3.5(e) 3.LIST OF FIGURES/GRPAHS/CHARTS SL.5(a) 3.4(c) 3.4(b) 3.3(d) 3. NO.3(b) 3.3(a) 3.1(a) 3.OF OFFICES NO.4(a) 3. Chapter – 1 STOCK MARKET 7 . and technological developments are ushering in unprecedented changes in the global financial services industry. Reforms are continuing globally as part of the overall structural reforms aimed at improving the productivity and efficiency of the economy in the highly competitive world. Regular market shifts. operationally efficient 8 .1 GLOBAL SCENARIO The financial sector is in a process of rapid transformation. capital market participants and insurers have developed a wide range of products and services to suit varied customer requirements. The financial services industry is in a period of transition globally. regulation and the integration of previously disparate global markets • Agile at identifying and managing risk • Optimized in both business & technology. fierce competition. The US$ 28 billion Indian financial sector has grown at around 15 per cent and has displayed stability for the last several years. Organizations in this highly competitive and increasingly regulated industry will especially need to focus on making themselves more: • Adept to face increasing transaction volumes. This stability has come through the resilience that the In-country system and the finance companies have built over these years. The role of an integrated financial infrastructure is to stimulate and sustain economic growth. Banks. even when other markets in the Asian region were facing a crisis. The financial sector has kept pace with the growing needs of corporate and other borrowers.1. India has emerged as the one of the most rapidly growing economies in the world. and China (BRIC Nations) who are going to the prime drives of the world economy in the next few decades. the country has thrived on discipline and out-performance. Since the time. India first opened its gates to foreign investment (FDI &FII) there has been a complete turnaround. Financial service in India has taken a giant leap from the days of standing in the banks queue for several hours for opening a savings account or trying to get some fixed deposits (FD) done.2 INDIAN SCENARIO FINANANCIAL SERVICE IN INDIA In last few years. equity market and other banking services. car and home loans. the most sparkling phenomenon is in form of financial market of India. Right from banking system to financial regularities. There are several services like broking firms. investment services.1. Even if we taking the case of ongoing global recession India has managed to perform far better than other nations. financial consulting. The booming Indian economy resulted in widespread growth and arrival of new industries. evergreen national banks. India has been categorized with national like Brazil. Now the traditional Hindu rate of growth is a thing of past and clocking 8% to 9% GDP growth rate is the common norm. Russia. mutual funds. numerous private banks. The financial services have increased manifold and now people have the choice to choose the most suitably fits the bill. India along with other Asian power house china makes for the fastest growing nations in the entire world. 9 . Financial service industry along with capital has a very long history in India.2(3) FEATURES OF THE PRIMARY MARKET In case of the primary market.Services are many and offered by blue chip names of the industry. namely the capital market and the money market. 1. The investment market can further be sub divided into the primary and secondary market. Geojit BNP Paribas today is a leading retail financial services company in India. Most of the companies in financial segment offer taxation services. The stock market is an important part of the capital market in the country through which one can carry out the transaction of capital. It is usually done through the means of direct financing through the use of security and investment. Financial service industry is a part of stock market. the listed shares are traded for the first time which is transferred to the investors from the listed company. going for pension plan or getting your child insured. Now customers have multiple choices to choose from. project consultancy services and all the services of wide financial gamut. Whether it ‘s taking a car loan or booking your favorite house . One can find all the financial services on the internet that are just a call away. In case 10 .2(2) INDIAN STOCK MARKET The India stock and invest market is mainly divided into 2 parts. Financial service industry is a part of stock market. 1. numerous attractive financial services are available at affordable cost. Personal banking services have acquired an altogether new meaning. In simple terms. In the most cases. the stock issuers and the listed companies make use of the capital by offering the stocks to the investors. The terms and conditions of the commission are based on the price offering of the securities. the trading has to be done through a licensed broker.of primary market. the dealers who carry out the process get a sum of money in the form of a commission. buy shares and supply the needed capital. The primary market can be an ideal source funding for various business enterprises and companies. public sector units and government organizations. There are two main stock exchanges in India which operate the bulk of the share and security trading. In simply terms. They are: • BOMBAI STOCK EXCHANGE 11 . Mainly it is the secondary market. The investors in turn. it is also known as the stock market. In the most cases. All the organizations can make the funding by selling new bonds. 1. In simple terms. it is also known as the stock market. The buying and selling of the securities are sold to the investors.2(4) FEATURES OF SECONDARY MARKET An important part of the Indian stock and investment market is the secondary market. stocks and other forms of securities. security firms and other financial institutions. Mainly it is a type of continuous market which offer very good platform for trading and business of securities and stocks. I am known as initial public offering (IPO). the primary market is a type of platform where new securities and stocks are deal with. stock and securities units. it has a listing of more than 4. It is located in Dalal Street area of the city of Mumbai.1 trillion whole the volume of the stock exchange is around US& 980 billion. The currency type which is dealt in the BSE is Indian National Rupees (INR). The BSE is owned by the Bombay Stock Exchange Limited and has a market cap amount of around US&1.700 companies.Com. the Bombay Stock Exchange offers a number of facilities and services. the financial capital of India.• NATIONAL STOCK EXCHANGE BOMBAY STOCK EXCHANGE The Bombay Stock Exchange (BSE). They are: • BSE Investor Services • BSE On-Line (BLOT) • On-Line Surveillance System (BOSS) • BSEWEBX. Incepted in the year 1875. also referred to as sensitive index. BSE Online trading site • BSE Trading Institute for various certification programs 12 . The sensex is popularly known as BSE 30. To cater the customers.also known as the oldest stock exchanges in Asia and is credited with the operation of the most number of listed companies in the world. The index on which the stock exchange operates is the BSE SENSEX. it is expected to become the largest stock by the end of the year 2009. 13 . According to the economist experts. The NSE has around 2799 VAST terminals covered around 1500 cities.923 corers. They are: • The ICAI financial reporting award • The Asia – Pacific HRM employer branding awards • The Golden Peacock Global Corporate Social Responsibility (CSR) Award (b) NATIONAL STOCK EXCHANGE The National Stock Exchange of India. 01. also referred to as NSE is also located in Mumbai. It is the largest exchange in India in terms of the number of trades and the daily turnover. The key index of the NSE is known as S&P CNX Nifty and is based on INR. The capitalization amount of NSE amounts to Rs 47.The BSE has also been awarded a number of prestigious awards for its service towards the economy of India. Chapter – 2 GEOJIT BNP PARIBAS FINANCIAL SERVICES LTD – PROFILE 14 . the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). In 2007. The gamut of value added products and services offered ranges from equities and derivatives to Mutual Funds. 15 .2. global banking major BNP Paribas joined the company’s other major shareholders – Mr. KSIDC (Kerala State Industrial Development Corporation) and Mr. The needs of over 495. Life &General Insurance and third party fixed Deposits. phone services. There are more than 3000 employees in the company at present playing vital role in the growth of the company. George. It is a public undertaking company that offers a wide range of trading and investment products and solutions. dedicated Customer Care and the internet. and is listed on.000 clients are met via multichannel services – a countrywide network of over 600 offices.1 INTRODUCTION Geojit BNP Paribas today is a leading retail financial services company in India with a growing presence in the Middle East. Geojit BNP Paribas has membership in. Rakesh Now Geojit BNP Paribas is the pioneer in online trading in India. The company rides on its rich experience in the capital market to offer its clients a wide portfolio of saving and investment solutions. With the effect from July 2005. The Kerala State Industrial Development Corporation Ltd (KSIDCO). Geojit listed at the Stock Exchange. Ranjit Kanjilal retired from the firm and Geojit became the proprietary concern of Mr. in 1995. the only instance in India of a government entity participating in the equity of a stock broking company. Company is a charter member of the Financial Planning Standards Board of India and is one of the largest Depository Participant (DP) brokers in the country. it became a Public Limited Company named Geojit Securities Ltd. Mumbai (BSE) in the year 2000. C J George and Mr. In 1994. In 1993 Mr.Company’s wholly owned subsidiary. the company closed its commodities business and surrendered its membership in the various commodity exchanges held by Geojit Commodities Ltd. launched online features trading in agro. became a copromoter of Geojit by acquiring a 24 % stake in the company. The year 1995 also saw Geojit being listed on the leading regional stock exchanges.2 EVOLUTION OF THE COMPANY It all started in the year 1987 when Mr. including Kerala Government nominee. On 31 December 2007. The Board consists of Professional directors. the company is also listed at the National Stock Exchange (NSE).commodities. C J George. 16 . Geojit Commodities Limited. Ranjit Kanjilal founded Geogit as a partnership firm.2. precious metals and energy futures on multiple commodity exchange in 2003. This was also the year when the company was renamed as Geojit Financial Service Ltd (GFSL). In 2007 the global banking major BNP Paribas took a stake to become the single largest shareholder. heightened efficiency and better investor relations. Geojit BNP Paribas has always focused on being ahead of the curve. the company works hard to be the first to make technology-enhanced investment platforms available to investors while also focusing on increasing awareness on capital markets and investment methods.Joint Ventures In The Middle East Barjeel Geojit Securities the joint venture with the AI Saud group in the United Arab Emirates that is headquartered in Dubai with the branches in Abu Dhabi.5VALUES AND BELIEFS They understand and respect customer’s needs to consistently deliver total quality solutions through constant skills up gradation They believe that the company culture helps to attract and retain the best talents.Aloula Geojit Brokerage Company headquartered in Riyadh with the Al Johar group in Saudi Arabia.3 OBJECTIVES OF THE COMPANY As a financial services company. sustained by its commitment to values such as transparency. 2. Ras Al Khaimah Sharjah and Muscat. They continually strive to raise their products and service standards by intelligent application of technology and processes. 2. Geojit BNP Paribas is also looking at branch expansion 2. To this day.4VISION The vision of Geojit is to be leading financial and commodities market intermediary for individuals and institutional clients from India band overseas.Business partnership with the Bank of Bahrain and Kuwait. 17 . com 18 .They are committed to achieve profitable progress consistently. Internet Management Services.geojitbnpparibas. IPOs. Kerala. Loans Against Margin Funding. India Products Equities. Life Insurance. Derivatives. Mutual Funds.6More Profile Details of Geojit BNP Paribas Type Public Industry Finance Founded 1987 Headquarters Kochi. They freely share their investment experience across all ages and strata of society to encourage wise investment for better future. Margin Funding. Currency Futures. Custody Accounts. Loans against shares etc Revenue Employees Website Rs 237 corers 3500 www. 2. .7. Uttar Pradesh. Uttaranchal. Orissa. Kerala.2. Tamil Nadu. Jammu & Kashmir. Goa. Punjab. PRODUCTS AND SERVICES (summary) Equities Derivatives Currency Future DP Accounts Distribution of Mutual Funds Life insurance Loans General Insurance & IPOs Portfolio Management Services Property Services Margin Funding Home loans Offices The network of over 500 offices across 300 cities and towns presently covers Andhra Pradesh. Madhya Pradesh. Pondicherry. Haryana. New Delhi. Karnataka. Gujarat. Rajasthan. and West Bengal 2. Bihar.8 Milestones • 1986 Membership in Cochin Stock Exchange (CSE)1994 Becomes a Public Limited Company named Geojit Securities Ltd 19 . Gold. wholly owned subsidiary . precious metals and in energy futures on multiple commodity exchanges.• 1995 Kerala State Industrial Development Corporation Ltd (KSIDC) acquires 24 percent equity stake • Membership in National Stock Exchange (NSE) • Public issue • 1996 Launch of Portfolio Management Service with SEBI REGISTRATION • 1997 Depository Participant (DP) under National Securities Depository Limited • 1999 Membership in Bombay Stock Exchange (BSE) • 2000 BSE Listing • • • 1st broking firm in India offer online trading facility Commences Derivative Trading with NSE Integrates the 1st BANK Payment Gateway in the country for Internet • 2001 Becomes India’s first DP to launch depository transaction through internet trading • 2002 1st India to launch an integrated internet trading system for cash & Derivative segments 2003Geojit Commodities Limited. National launch for future trading in Rubber. Wheat and Rice • • Company renamed as Geojit Financial Service Ltd • 2004 National launch of online future trading in Cardamom 2005 NSE Listing Geojit Credits a subsidiary. Pepper.commodities. launched Online Future Trading in agric. register with RBI as a Non-Banking Financial Company (NBFC) • • National launch of online futures trading in coffee 20 . A for institutional clients2009 Launch of online trading in currency Derivatives Consequent to BNP Paribas becoming the largest stakeholder Geojit Financial Service Ltd • Launch of Exchange traded UTI Mutual Funds Subsidiary Companies Geojit Credits (p) Ltd.• 2006 Charter member of the Financial Planning Standard Board of India2007 BNP Paribas takes a stake in the company’s equity. The company provides loans against security of shares and Warehouse receipts. • Geojit Financial Distribution (P)Ltd • Geojit Finance Management Service (P) Ltd 21 . making it the single largest shareholder Establishes Joint Venture in Saudi Arabia to serve the Saudi national and the NRI2008 BNP Paribas Securities India (P) Ltd – a Joint Ventures with BNP Paribas S. BNP Paribas Personal Investors is extensively using Geojit Technologies for IT development. BNP Paribas has taken 35% stake in the company. • Geojit Technologies (P) Ltd is a software company. Registered with the Reserve Bank of India as a non banking Finance Company is in the business of providing loans and advances to clients participating in the Capital and Commodity markets. The company does not accept deposits from the public. The company enables both the Saudi national and NRI to invest in the Saudi capital market. It has facilities for off-line and trading in the Indian capital market and also in US.• Geojit Investment Service Ltd • Sigma systems International FZ LLC 2. Global Financial Investments S.9 Overseas Joint Ventures Barjeel Geojit Securities.Dubai is Geojit BNP Paribas joint venture with the Al Saud Group belonging to Sultan bin Saud Qassemi has diversified interest in the areas of equity markets. The company executed its first trade on the Saudi Stock Exchange on November 10. real estate and trading. This joint venture makes Geojit BNP Paribas the first Indian stock broking company to commence domestic retail operations in any foreign retail stock broker to start domestic retail operations in the Kingdom. 22 . Aloula Geojit Brokerage Company is Geojit BNP Paribas joint venture in Saudi Arabia with the Al Johar Group. Barjeel Geojit is a financial intermediary and the first Indian licensed brokerage company in UAE. The NRI’s can also invest in the Indian stock market and in Indian mutual funds. European and International Funds. LLC. An associate company.A.G provides similar services in Oman.O. 2. P. A.Executive Director 23 . K Venkitesh Mr Martin Zachmeier Mrs Jaya Jacob Alexander Mr A. Satish Menon Mr.10 BOARD OF DIRECTORS Name Mr.Alkeshkumar Mr Mahesh Vyas Mr Ramanathan Bupathy Non – Executive & Independent Director Non – Executive & Independent Di Director Non – Executive & Independent Mr Olivier Le Grand Non. C. Balkrishnan Mr. Kurian Mr C j George Designation Managing Director Director (Operations) Chief Technology Officer National Head – Distribution Director (Planning and Control) Chief of Human Resource Non – Executive & Independent Chairman Managing Director & Chief Promoter Mr. J George Mr. C.11 MANAGEMENT Name Mr. Martin Zachmeier Mr.V. J. George Mr. Satish Menon Mr.Samuel Mrs. Binoy . A. Jaya Alexander Jacob Designation Managing Director Executive Director Chief Technology Officer Director (Planning and Control) Chief Financial Officer Chief of Human Resources 24 . Balakrishnan Mr.Mr Pierre Roussean Non – Executive Director 2. Immediate transfer and registration of securities Improvement of the system efficiency and popularity of speculative trading By the introduction of new registration and regulations. Changes that took place in this industry over the last 5years where dramatic. The stock exchanges which were limited to few specific enters got vanished and concept of stock exchange become “ nowhere but everywhere” through the introduction of X. To a great extend changes industry is caused and supported by developments in the communication system. When teasing position place it had the following impacts in the industry. The greatest change that took place in the industry was phenomenal change in the concept of stock exchange. manipulation and malpractices become controlled and transparency increased 25 .2. There had shift in the model of trading to one line trading and to internet trading and shift from world of paper certificates and related difficulties lead to Demat trading. The new industry came with confidence and trust of the system.SAT connected terminals. These changes have helped the exchange to perform changes takes its basic functions of creating liquidity in a much better fashion. The number of trade’s volume increased.12 PRODUCT PROFILE (a)Broking or Trading Broking industry is one of the fastest growing changing service industries. A positive change in the attitude of regularity authorities especially SEBI will lead to a new initiative and changes in the market. a Welcome letter is sent to the customers along with the Delivery Instruction Slip book. the account become active. Upon activation of the demat account. An individual who desires to avail the depository brokers or any other entity eligible as per SEBI Regulations. 1996 can apply to the Depository to become a Depository Participant. 26 . (b) Depository A depository can be compared to a bank. The operation carried out at depository section is opening and dematerialization. One can approach the nearest branch of Geojit for opening an account. After the issue of client ID and head office update it. Along with filling the application form he must attach substantial proof for address and photo. These are two depositories in India. Using this account the customer cash hold his shares and dematerialization can take place only if the customer has client ID. It takes two to three days to open a demat account. For a customer to deal with Geojit he must open the depository account. 2005 there were 221 Depository participants in India. Agreement charges along with the Annual Maintenance charge (AMC) are collected upfront while opening an account. Investors can open demat accounts with NSDL through Geojit. These application form along with computer entered data is send to head office where the client ID (8 DIGITS) is issued. As on 31ST December. Geojit is a depository participant of NSDL. units etc of investors in electronic form. It holds securities. The National Securities Depository Limited (NSDL) and central depository Service Limited (CDSL). Repurchase This facility helps you to submit the units of open ended mutual funds in case of repurchase. Pledge You can pledge securities to avail a loan 5. For the purpose demat the customer has to fill an application which is issued in 3 copies.materialization It enables you to convert the dematerialized shares into physical form 3. Transfer You can transfer securities from one demat account to another 27 . 2. Re. 4. If there is mismatch of signature the company will send it back and ask them to resubmit with bank manager’s attestation. If the company is convinced then the company will demat and sent to the broker.materialization You can convert your physical shares into electronic form by surrendering the shares for dematerialization at the Geojit branch. One copy is retained with the customer next with the head office and another with the head office and another with the share send to the company. In case of change in order of the names a transposition form has to be attached.Dematerialization is the process of conversion of physical share certificate into electronic form. DP Facility offered by Geojit 1De. Easy and prompt account opening formalities.6. Margin funding of up to 50% of the purchase value. No processing fees. Bonus and rights are also directly credited to the customers demat account. Offers Margin Trading Funding facility to all offline customers under the scheme of margin funding approved by SEBI. Speed. then transfer instruction should be placed online over the internet to pre notified Clearing Members Pool account. 8. Commodity demat account If you are a commodity player.e If you register for speed – e services. (c) Margin Trading Funding Geojit financial service Ltd. 7. IPO’s In case you have applied for an IPO and receive an allotment then the securities are transferred directly to your demat account. The sample applies for bonus and right issues. This does away the need to submit a physical delivery instruction slip. All securities defined under group 1 of NSE are eligible for margin funding. Share purchased are credited to customers demat account maintained specifically for the purpose of margin trading. Key features of the scheme are as follows. you may need to open a commodity demat account with Geojit. 28 . f. Margin trading is permitted only in NSE (d) Registration Procedure Currently customers who have an off line trading account with Geojit Financial Services can avail the margin trading funding facility. e. Undertaking that MTFS has been availed of only from one broker.b. No limit on time up to which he can keep the position open Purchase can be made only against clear funds. Margins can be replenished by cheque or by transferring funds from normal trading account. Clients for margin trading funding scheme are required to complete / provide the documents charges for opening the margin trading funding account. a. Margin trading agreement . Liquidation if margins can be replenished by cheque or by transferring funds from normal trading account.Separate demat account to be opened for the purpose C. (e) Portfolio Management 29 .Authorization to Geojit’s DP to debit demats account for shares sold. D . To operate the said demat account.Margin calls are made if there is a fall of 105% in the margin funded portfolio. POA to be issued in favors of Geojit Financial Service Ltd. Interest rate is 18% per annum. Authorization letter to transfer funds from / to MTF ledger. INP000000316) offers discretionary portfolio management services. (g) Strategy Identifying growth stocks from a select a list through extensive research. (f) Investment Objective To generate medium to long term capital growth (2-3 years) by identifying undervalued stocks and those with growth opportunities from a select list of well researched stocks. The portfolio management team has a successful track record of more than 10 years in the capital market. Geojit has a team of experts who carefully take investment decisions based on the client’s objectives. (j) Risk factors 30 . The team has access to Geojit’s strong equity research and fundamental & technical analysis.weekly via e.resident Indians. No. (h) Minimum investment Rs 10lakhs for resident Indians and Rs 25 lakhs for non. (i) Reports Portfolio and NAV are communicated bi.Geojit a SEBI registered portfolio manager (Reg.mail. The wealth centre team understands the universe of investment options analyses the risk and return from these options and recommends investment options to clients to help them to achieve their financial goals Geojit has a tie up with all the mutual funds across the country. Geojit offers life insurance products of the following life insurance companies: MetLife India Life Insurance Company LIC of India ICICI Prudential For general insurance. Performance fee 20% on gain in NAV over and above 12% per annum based on the high watermark concept charged at the end of the tear or on withdrawal. Geojit has partnered with the following Bajaj Allianz Insurance Company National Insurance Company Ltd 31 . (k) Distribution Geojit undertakes the distribution of variety of financial instruments such as mutual funds.As the stocks are normally geld for medium to long term the net asset value will be affected by market volatility. Geojit offers life insurance products of the following life insurance companies. life insurance products. bonds. Geojit has tie up with the mutual funds across the country. fixed deposits etc. Sophisticated tools are used for technical analysis research to offer recommendations. Mutual funds extract the money of people having same investment aims. . information that helps you profit it. The money thus collected is then invested in capital market instruments such as scares. Daily market view Technical analysis – market. The funds whole amount collected through mutual funds are usually riot invested in the same sector. The investment is made according to experts opinion and in such a way loss in investment made in one sector is covered by a profit on investment made in another sector. The dividend will be collected and divided among the investors according to the proportion of their investment. Research Geojit has a team of experts who track the market and related events very closely . 32 . Technical analysis and Geojit Research team brings to table. Fixed deposits (KPFC) etc through its tie – up with the required registrations.Geojit also helps its customers in investing in 8%RBI taxable bonds. The money invested in shares of various sectors according to investment policies. debentures and other securities. a daily report on market gives (l) Mutual funds A mutual fund is trust that pools the savings of a number of investors who share a common financial goal. Capital gain bonds ( Sec 54 EC bonds). The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of nits hold by them. Mutual funds are either open ended or closed ended. Open ended mutual funds are open for investors and redemption. Closed ended mutual funds are not redeemable at local market. The mutual fund will be redeemed directly by the company after a fixed period of time. In case of open ended schemes units can be sold or purchased at Net Asset Value (NAV) based price on all business days. Advantage of investing in mutual fund: a. Professional management b. Diversification c. Convenient administration d. Return potential e. Low costs f. Liquidity g. Transparency h. Flexibility i. Choice of schemes j. Tax benefits k. Well regulated (m) Insurance Geogit works as the corporate agent of LIC, ICICI, AMP Sanmar and MetLife. Insurance are classified into two. They are: Life insurance There are different types of Ife insurance. They are Term insurance 33 It covers only the death of a person. It is not a savings policy. The premium will not be returned after the term of insurance. Trop If a trope is attached to the policy, the premium will be returned after the term cover. The premium will be higher compared to that of term insurance. Endowment policy It is a savings plus death cover policy. The term to the policy may be from 5 years to 30 years. The premium will be provide the insured amount if anything happens to the life of the person before expiry of the policy. Rider If a person attaches a rider to his policy, he will get extra amount for which the rider is attached. He will be benefited only if he dies in an accident. (n)Housing loans We can avail a housing loan for buying or constructing a home, extending an existing home to undertake improvements and renovations and even to buy a plot of land from Development Authorities. The documents to be submitted along with the application For new customers Common for all applicants • Allotment letter of the cp-operative society/association of apartment owners. • Copy of approved drawings of proposed construction/renovation. • Detailed cost estimate from architect/ engineer for the property to be constructed renovated. 34 • If you have been in your present employment or profession for less than a year, mention details of occupation for previous 5 years giving position held, reasons for changes and period of the same. Applicable processing fees Any other information regarding your repayment capacity that is necessary and will assist HDFC in appraising the case. a. Additionally, • . • If you are employed • Latest salary slip/ salary certificate showing all details. • If your job is transferable, permanent address where correspondence relating to the applications can be mailed • A letter from your employer agreeing to deduct the monthly installments towards repayment of loan from your salary. This will expedite the processing of your loan application. If you are self employed. • Balance sheets and profit and loss account of the business or profession along with copies of Individual Income Tax Returns for the last 3 years certified by a chartered accountant. • A note giving information on the nature of your business/ profession, form of organization, clients, suppliers etc. 1. For existing customers • Detailed cost estimate from architect/engineer for the property to be constructed or renovated. • Applicable processing fees. 35 Chapter-3 FUNCTIONAL DEPARTMENTS OF GEOJIT BNP PARIBAS FINANCIAL SERVICES LTD 3.1 ORGANIZATIONAL CHART 36 3.1(a) Organizational chart 37 1 DEPARTMENTS An organization structure is the one where in it defines us how the job tasks are formally I divided. They are :- 38 . They cannot . and coordinated. A complete integration among all these departments of an organization is absolutely essential for their effective functioning and an overall improvement of results In Geojit Financial Services Ltd.3. We use the term work specialization or division of labor to describe the degree to which the tasks in the organization are subdivided into separate jobs. The basis by which jobs are grouped together is called departmentalization. Departmentalization stands one among them. grouped. sub systems. An organization consists mainly four functional..function in isolation. There are six key elements that managers need to address when they design their organizational structure. Personnel Finance Marketing Operations/ productions All these functional subsystems are interwoven by many linkages. Once this process is completed one need to group these jobs together so that common jobs can be coordinated. there are our major departments working. Different departments are usually made in an organization for its smooth functioning. This department also has the responsibility of creating awareness about their products among their customers.1) 2) Human Resource Department:Controlling and coordinating Human Resource in the organization. The order for a share is placed through online trading. A study on departments is made and the various activities of these department. 39 . the hierarchy and functions and duties of each individual are observed. Finance Department:For keeping the records of day to day transactions taking place in an organization 3) Operations Department:It includes Risk Management and clearing and settlement. compliance. The observations are noted in the following pages. branch operations and depository so as to help in proper functioning of each Services rendered by the company 4) Marketing Department:- This department deals with the selling of shares to the customers. commodity. 2 HUMAN RESOURCE DEPARTMENT 40 .3. organizing. maintaining and utilizing labour force in order that the objective and interest for which the company is established are attaining as effectively and economically as possible and the objective and interest of all levels of personnel and community are served to the higher degree". M. developing. selection and placement • Training and development • Employee performance appraisal and management • Workmen Category • Employ Welfare Activity • Disciplinary Proceedings • Statutory obligations(PF ESI &Others 41 . controlling various operative activities of procuring.3. (11)THE FUNCTIONS OF HR DEPARTMENT • Man power planning • Recruitment. It is a matter of common knowledge not every business organizations depends for its effective functioning not so much on its material or financial resources as on the pool of able and willing human resources.J Jucius defines Personnel management as" the field of management which has to do with planning.2(1) IMPORTANCE OF HUMAN FACTOR Human beings are the assets of the organizations. 2(a) No. of Offices 3.3.2(b) No of Employees 42 . 2(c) HRM Structural hierarchy 43 .3.2(2) HUMAN RESOURCES AND ADMINISTRATION DEPARTMENT HIERARCHY OF AUTHORITY CHIEF H R MANAGER HUMAN RESOURCES MANAGER HUMAN RESOURCES ASSISTANT MANAGER ASSISTANT MANAGER EXECUTIVES EXECUTIVES 3. 2 (3) DUTIES AND RESPONSIBILITIE From the departmental structure it is clear that chief HR is ranked as the Head Of the Department.ordination of the department. The Manager HR does the following functions:• • • • • Recruitment Selection Placement Training . Performance Management The Manager Administration looks up the following functions:• • • • Liaison with government House keeping Purchase decisions Stationary items Both these managers are assisted by Assistant Managers who are responsible for :• • Statutory obligations Salary administration 44 .3. The chief HR manages all the administrative and HR operations of the company. He is assisted directly by a manager Human Resource & a manager Administration. He does the functioning of controlling and co. 1) RECRUITMENT Recruitment is the process by which people are attracted to join jobs in an organization. The common sources of external recruitment are:1) Public notifications 2) Engaging of consultants or head hunters 3) Drawing upon the company ‘spool of resumes 4) Employment exchange 5) Employee referrals 6) Campus selections The recruitment procedure taken by Geogit is given below: • Identification of vacancies • Inviting applications 45 . Recruitment can be either internal or external. Internal recruitment is synonymous with promotions or lateral movements within an organization.• Leave management Under each Assistant Managers there are two executives each who help them in doing the above mentioned functions. planning are filing through this step. Gratuity and other Statutory Obligations.R. The vacancies that are generated through H. where an existing employee is positioned in a different role. It is the duty of executives to calculate the PF. ESI. In the case of branches'.M will also interview the candidate.R. Training is instructions provided for current job. Training and development are H. 2) TRAINING AND DEVELOPMENT Training and development is a subset of the broader Human Resource development function. Nowadays Geojit prefer personnel with NCFM (national stock exchange . The selection will take place only if all of them are 100% satisfied. After that the regional manager and then officials from the head office will also would like an interactive session with the candidate.certificate in-financial market) +GRADUATION or within six months from entering the job they need to qualify for NCFM. The candidate should go through the screening and a tough course of interviewing through various steps. Graduation is a must established criteria for applying for a career in Geojit .G.• Scrutiny of application • Written test • Stage-1 interview • Stage-2 interview • Selection of candidates • Induction • Placement There are some preferred criteria for the selection or hiring employees in Geojit. whereas development is a 46 .previous experience and extra qualifications related to the post for which they are applying is considered. Afterwards the A. first the regional manager will interview the candidate.D instruments. Different factors adopted by Geojit in training are • Training need identification • Training schedule • Identifying training methods &aids • Training • Feedback • Result analysis The-different training methods adopted by the company are:• In-house • Induction training • External • Behavioral • Technical • Managerial • Specific need based Usually there is on the job training for the new entrants. but also makes him ready for more challenging assignments. 47 . And there are targets to achieve for the executives which are definitely very much achievable. Especially in fields like insurance and share trading training is given while working.broader concept aimed at enhancing the potential of the individual which would make him competent not just on the job he performs at present. In the case of induction a new entrant is treated as a new born baby in a family. So if we logged in half an hour early the rush can be avoided . And for the employees crisp and perks as per the performances . (a)Grievance: For any kind of grievance there is a special department in Geojit which will take care of it. This definitely shows the work culture and ethics in Geojit. The reason for 8. The promotion order for any new entrant will be like this 48 . (b)Working hours: The working days are from Monday to Friday and half days in Saturdays and in public holidays offices are not working . Promotion is strictly on the basis of experience as well as performance. Salary structure is based up on the hierarchical level as in any other organisation.30 pm. and in Saturdays it is from 10 to 1.30am to 5.and it is easy to get terminals.so performance appraisal is also part of the hard. in the lower level of hierarchy also the executives are known as junior executive trainees.the normal working time starts from 8. it will be very difficult to get terminals at sharp 9.30 am start is that as the market opens at 9. And also there are websites in which we can register our complaints. but it is not recommended and for any executive .2(d) Salary Structure (c) Leave: For the trainees there will be one leave in a month if needed.Junior executive trainee Junior executive Senior executive Asst manager Manager Regional manager State head 3. Privilege leaves can be extended to next year and we can observe that absenteeism is very low in Geojit.there are 12 casual leaves +12 sick leaves +12 privilege leaves in every calendar year. 49 . The human resource department also deals with wage and salary administration. The new vacancies in Geojit are published through the official website www.com. whereas 'salary' is associated with remuneration given to white collar and permanent staff. though 'wage' is usually associated with blue collar and daily rate workers. the employees are highly satisfied by the way. 3) WAGES &SALARY ADMINSTRATIQN Wages and salary administration is the pay roll functions of any organization. it is found that. The terms 'wage' and 'salary' are synonyms.From the study. • Salary fixation • Monthly salary administration • Increments • Incentives 50 . The following duties are done by HR department considering salary administration in Geogit. The scope extends from designing the pay structure to calculate the monthly wage bill and actual payment of cash . in which they have been treated.geojitbnpparibas. Hence I the employer pays 4.I) and the 'Employees Provident Fund'(P.4) EMPLOYEE WELFARE The major social security and welfare schemes in India are the 'Employees State Insurance' (E. Geojit provides both P.'75% of his wage to the fund. Withdrawal from the provident fund scheme is allowed after the employee ceases work. It is the duty of H. In addition to the ESI and PF Geojit also provides gratuity for those permanent staff who are eligible for the same. Under PF calculation the organization pays 12% of wage and deducts another 12% of from the employees wage.S.75% of wage and the employee contributes l.F and ESI benefits to all its employees. 51 .F).R department to collect proper data regarding employees and calculate the ESI&PF for each employee working there. It is according to the ESI Act of 1948 the company calculates its ESI. 3 OPERATIONS DEPARTMENT 52 .3. 3(1) OPERATIONS DEPARTMENT The past few decades have given-emphasis to operations functions mainly because it is the important subsystem of an organization and is responsible for customer satisfaction. Hence it is this subdivision of operations department which deals with the function of management of funds that arise from trading. 53 . function of each official and the findings are noted in the coming pages 3. As this department deals directly with customer satisfaction the company requires careful policies and procedures to carry out the activities under the operations department so that the services provided by them must be of a specific quality.3(2) RISK MANAGEMENT & CLEARING AND SETTLEMENT This is one of the subdivisions of the operations department. As stated earlier the operations departments are subdivided according to the functions they perform. They are 5) Risk management & clearing and settlement 6) Compliance 7) Commodity 8) Branch operations 9) Depository A study o each off these subdivision are made their hierarchy. The operations department of Geojit is again subdivided into five according to the services they deal with.3. A diagrammatic representation of the hierarchy of this departmental subdivision is given on next page. This is known as settlements cycle.Manager is assisted by three 'senior executives' further there are executives junior executives and office assistants to help the top management. The Asst.S. The chief manager is assisted by the senior manager (clearing and settlement). The chief manager (Risk and settlement) stands up in the hierarchy of the department and hence he is the head of the department. settlements of transactions is executed for a specified no: of days after clubbing daily transactions for the entire period.Manager under him who checks the B.E operations. There is an Asst. He controls and coordinates all the functions of this subdivision.E and it ends on next Tuesday. if he had bought any shares and also to check whether the person is paid completely if he had sold the shares through Geojit. So it is the duty of this subdivision of the operations department to keep the records regarding transactions of each customer analyze whether he had made all the transactions in a proper way or not. For example the beginning of a new settlement is on Wednesday of every week in N. 54 .Though buying and selling of shares take place daily in stock exchanges.S. The senior manager (clearing and settlement) deals with the process of buying and selling of shares and thereby maintaining proper funds. Risk management of funds (of company and its branches) is one of the major functions. It is the duty-of this department to check whether a person has paid the amount completely. 3.3(a) Clearing Dep Structural hierarchy 55 .3(3) MANAGEMENT & CLEARNING & SETTLEMENT CHIEF MANAGER (RISK) SENIOR MANAGER (CLEARING & ASSISTANT MANAGER SENIOR EXECUTIVE SENIOR EXECUTIVE SENIOR EXECUTIVE EXECUTIVES JUNIOR EXECUTIVES OFFICE ASSISTANTS 3. Executives and Junior Executives.3.3(4) COMPLIANCE This sub division operations department deals with the statutory obligations with Reference to SEBI and the company. The hierarchy of this department is given in the next page. He checks all the functioning of the sub division. Below him there are Senior Executives. He is assisted by 'Chief Manager' compliance. The department is responsible for insuring compliance with:• NSE circulars with respect to trading and settlements • RBI circulars with reference to NRI operations • Applicable portion of Income Tax Act This department has got a senior Vice President (compliance)who stands as the head of the department. 56 . 3(5) COMPLAINCE DEPARTMENT HIERARCHY OF AUTHORITY SENIOR PRESIDENT COMMODITY CHIEF MANAGER COMPLIANCE SENIOR EXECUTIVE EXECUTIVE JUNIOR EXECUTIVE 3.3(b) Compliance Dep Structural hierarchy 57 .3. 3(6) COMMODITIES Geogit offers commodity derivatives trading in coconut oil. 58 . and then he has to sign an agreement and follow some procedures as stated by the company after being registered as a client the customer can conduct trade. rubber. pepper. As derivatives trading are control based on any of the above mentioned commodities. gold and silver. coconut oil. gold and silver. The Chief Manager commodity maintains and checks the commodity trading operation of all branches.3. His duty is management and administration of the operations department. The Chief Manager has to report to the Senior Vice President (commodity). It is this sub division of the operations department which deals with the trading operations of the commodities like rubber. The Assistant Managers are reported by Executives. pepper. . There are certain requirements for trading in future and the option segment through Geogit. the owner of the contract is entitled to purchase a specified quantity of asset on a future date at a predetermined price. The customer will have to register himself as a client with Geogit. The Chief Manager is assisted by two Assistant Managers of which one checks the trading and other deals with managing risk. 3.3(c) Commodity Dep Structural hierarchy 59 .3(7) COMMODITY DEPARTMENT HIERARCHY OF AUTHORITY SENIOR VICEPRESIDENT COMMODITY (RISK) CHIEF MANAGER COMMODITY ASSISTANT MANAGER (RISK) ASSISTANT MANAGER 3. dematerialization of shares . 60 . This sub division has got a chief manager as the head. transmission of shares etc. Below senior executives there are executives who work in each section and assist the customers in opening the account. inter depository transfers. Basic service of a depository includes maintenance of accounts of investors . mutual funds etc in a dematerialized form and transactions could be effected on it.3. The senior manager is assisted by a manager an assistant manager and senior executives in analyzing the region wise operations of the depository. All the above mentioned functions of a depository are controlled by the sub division of operations department named Depository. He has to present the findings directly to the chief manager who takes the appropriate action. in trade and in other similar requirements.3(8) DEPOSITORIES Geojit serves its customers by acting like a depository institution where the investors can keep their financial assets such as equities bonds. settlement of market transaction through the release and receipt of securities in the investors account. nomination facilities. distribution of non-financial benefits from corporate to its shareholders. off market transfers. He controls and co-ordinates all the functions of the department. He is assisted by a senior manager who is responsible to check the region wise performance or operation of depository. 3.3(d) Commodity Dep Structural hierarchy 61 .3(9) DEPOSITORY DEPARTMENT HIERARCHY OF AUTHORITY CHIEF MANAGER SENIOR MANAGER MANAGER ASSISTANT MANAGER SENIOR EXECUTIVE JUNIOR EXECUTIVE SUB STAFF 3. 4 MARKETING DEPARTMENT 3.4(1) Introduction 62 .3. Now the time has changed and the objective of marketing is more than security profit. 3. The following are the main objectives of modern marketing activities. Any product or service moves in the market depends upon the marketing efforts undertaken by the company .Marketing is a social process by which individual and groups obtain what they want and what through creating. profits are rewarded to the business and additional benefit is the inducement of marketing.It is said that a good marketer can even sell the worst product available in the market.4(2) Objectives Barker and Ashen say "the end of all marketing activities is the satisfaction of human wants" through the satisfaction of human wants. offering and freely exchanging products and services of value with others. The main duties and responsibilities of marketing department heads in Geojit are as follows:• Marketing the financial product • Conduct the stock market awareness program • To conduct the seminar to public. where as a bad marketer can make a good product which does not move in the market. • To conduct short term and long term courses • Issue new magazines 63 . with highly talented professionals. Keeping this fact in mind GEOJIT has incorporated a good marketing department. The essence of marketing is an exchange or a transaction intended to satisfy human needs and wants through an exchange process. 4(3) PRODUCTS: As we all know the product is financial services..e.• To collect sponsorship • To give motivation for its staff and member The department which is alert 24/7 is marketing department. i.i. 800 normally for them.e. The product ranges from Equities Derivatives Currency Futures DP Accounts Distribution of Mutual Funds Life Insurance Loans General Insurance & IPOs Portfolio Management Services Property Services Margin Funding Home Loans 64 .for customers they are coming with lot of acceptable plans .. Let us look the marketing mix. 4p's of marketing in Geojit. 3. for example in the month of July if the customers are putting 10.000 Rs in Geojit for their trading the organization will skip the registration fee . Strategies like this have certainly improved their acceptance over the other financial service organizations. Geojit BNP Paribas marketing department comes with various splendid plans to raise the organizations activities and it is now the fourth best in India improving one position to its previous ranking which was 5th spot . 10% New Brokerage Rage 0.) <10 lacs >10 lac <50 lac >50 lac <1 cr >1 cr <2 cr >2 cr 3. As the people are working for the full worth of their money Geojit is providing perfect playfield for them. 3. Brokerage rates applicable w.020% 0.f. 2006 for Online Retail Trading ** Provided linked demat account is with Geojit BNP Paribas Financial Services Ltd. 3. The slabs are different for different services and below are the table which shows charges in detail.4(c)F&O Volumes * Volume *(Rs.4(4) PRICE: There price means the service charges for the organization.These services are obviously the most profitable ones in present scenario.) >2 cr >2 cr <6 cr >6 cr <12 cr >12 cr <15 cr >15 cr 3.) <9 cr New Brokerage Rage 75 (current) 65 New Brokerage Rage 0.25% 0.025% 0.3% 0.15% 0.4(a) Delivery-based Volumes * Volume *(Rs.010% .15% 0.20% 0.e.4(b) Intra-day Volumes * Volume *(Rs. December 1.030% (current) 0. . That is why Geojit has organizations like L. CNBC etc.. The head office is situated at Cochin and there is no other place in Kerala which is more suitable than Cochin .every branches are connected each other and also with the head office through INTRANET.A.and all the branches are situated in town areas so that the offices are just a hand away from the customers .e.>9cr <18cr 65 3. Bahrain and Kuwait.4(6) PROMOTIONS: Promotion is mainly through advertisements. The brand image will obviously do a lot to the course.4(7) MARKETING DEPARTMENT 66 .C as their major clients. i.In order to promote various services there are different attractive plans for different services. Apart from that advertisements through newspapers.And in the case of branches are giving their advertisements through local cable television and local newspapers . magazines. – 3. Arabia. Saudi.I. in U. 3. Along with the product mix the good relationship with the clients also helps a lot for marketing. and also through television channels like NDTV.E.4(5) PLACE: There are over 500 offices foe Geojit BNP Paribas and also now they are operating abroad as joint ventures.. HIERARCHY OF AUTHORITY CHIEF MARKETING OFFICER REGIONAL MARKETING OFFICER ASSISTANT MANAGER EXECUTIVES 3.4(C) MARKETING DEP STRUCTURAL HEIRACHY 67 . 3.5 FINANCE DEPARTMENT 68 . Hence finance department assumes a great role in this organization. The finance department provides authorization and control to all other subsystems to utilize money more effectively through a well designed mechanism the major functions of a finance department can be grouped as follows:- 1) 3) 4) 5) 6) Preparation of financial statement Cash flows within the firm Cash forecasting and budgeting Analysis of transactions conducted by each branch office Pay in and Pay out 2) Providing sufficient funds to all departments. working capital management. A finance department in an organization is responsible for maintaining fair and just accounting. costing etc.3.5(1) INTRODUCTION Finance is the lifeblood of any organization. 69 . long term funding decision making. It deals with both the acquisition as well as 'allocation of funds. O. The Chief Manager is assisted by Manager Finance. 70 . The general accounts of the company are managed by the Chief Manager. He is assisted by Chief Manager Finance.3. Preparation of reports and statements also conies under his duty. four executives and three junior executives. It is the duty of these people to record and analyze the normal accounts and transactions of a day and to report it to Chief Manager Finance. matters concerning pay in and pay out are also determined and analyzed by Chief Finance Manager.F. The entire reports are submitted before him and it is his duty to take appropriate steps. Below him there are two assistant managers.5(2) DUTIES AND RESPONSIBILITIES Chief financial officer is the head of the finance department the entire financial operations are controlled and coordinated by C. 5(3) HIERARCHY OF AUTHORITY CHIEF FINANCIAL OFFICER CHIEF MARKETING OFFICER MANAGING OFFICER ASSISTANT MANAGER EXECUTIVE JUNIOR EXECUTIVE 3.5(a) Department structural hierarchy 71 .3. 5(b) Net worth graph 72 .3.5(4) NETWORTH 3. 5(5) FINANCIAL SUMMARY 3.5(c) Financial summary table 73 .3. 3.5(6)BALANCE SHEET 3.5 (d) Balance sheet table 74 . 3.5(7)PROFIT & LOSS STATEMENT 3.5(e) Profit & Loss Statement table 75 . 5(f) Cash Flow Statement 76 .3.5(8) CASH FLOW STATEMENTS 3. 64 21.5(9) RATIOS Mar ‘10 Mar ‘09 Mar ‘08 Mar ‘07 Mar ‘06 Per share ratios Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs) Net operating income per share (Rs) Free reserves per share (Rs) Profitability ratios Operating margin (%) Gross profit margin (%) Net profit martin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) Leverage ratios Long term debt / Equity Total debt / equity Owners fund as % of total sources Fixed assets turnover ratio Liquidity ratios Current ratio Current ratio (inc.64 10.09 0.12 14.06 1.09 2.00 4.58 100.09 2.08 37.06 19.64 1.64 1.12 14.46 3.18 9.05 0.35 19.75 3.67 33.31 30.09 14.01 8.28 100.30 18.32 1.67 5.22 25.06 1.00 4.12 9.01 1.40 20.82 35.41 15.08 11.08 14.44 22.53 1.58 3.23 0.09 2.96 27.68 52.02 26.49 66.00 3.73 89.14 18.24 1.85 19.52 9.44 32.90 100.66 30.08 26.18 11.91 35.53 1.17 2.15 15.41 5.23 - 2.52 28.95 1.31 - 1.07 23.10 0.28 7.84 24.31 2.50 0.86 27.47 2.56 2. st loans) Quick ratio Inventory turnover ratio Payout ratios Dividend payout ratio (net profit) Dividend payout ratio (cash profit) 2.48 31.29 6.37 9.60 12.50 12.93 0.23 1.85 100.00 20.00 2.86 57.70 3.64 29.00 3.63 31.31 11.54 3.09 - 1.14 2.58 10.60 0.17 10.52 - 1.67 12.51 27.40 1.29 12.41 100.21 5.13 1.12 43.23 1.06 - 34.67 9.00 25.3.16 23.50 4.32 1.79 31.29 15.05 11.45 12.72 23.02 1.51 43.5(g) Ratios Table 77 . 1(1) SWOT ANALYSIS 78 .1 SWOT ANALYSIS 4.Chapter-4 4. and Threats involved in a project or in a business venture. Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. the objective(s). First. who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. •Opportunities: external conditions those are helpful to achieving the 79 . given the SWOTs. Weaknesses. • Threats: external conditions which could do damage to the objective(s). The technique is credited to Albert Humphrey. the decision makers have to determine whether the objective is attainable. Opportunities. • Weaknesses: attributes of the person or company those are harmful to achieving objective(s). Strategic Planning. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.SWOT analysis is a strategic planning method used to evaluate the Strengths. If the objective is NOT attainable a different objective must be selected and the process repeated. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. has been the subject of much research • Strengths: attributes of the person or company that is helpful to achieving the objective(s). Separate software division. 100% of business is automated. 80 . opportunities and threats . weaknesses. The sustained growth in the economy of the country.1(2) SWOT ANALYSIS OF GEOJIT FINANCIAL SERVICES LTD (a)STRENGTH • • • • • One of the highly established firms in broking industry having more than years of experience. Large network having more than 100 branches in major states of India.The SWOT analysis is often used in academia to highlight and identify strengths. (b)WEAKNESS • • Lack of knowledge on the part of investors. National presence.It is particularly helpful in identifying areas for development. Lack of awareness about the products provided by Geogit. (c)OPPORTUNITY • • • • • There are branches in urban and semi-urban areas. Regionally concentrated in state where there is a large middle class and high consumption. Loyal customer base. Easy and efficient trading facility. the F1I are having a positive outlook on India. 4. • The nature of the company's business is cyclical depending upon the business cycle. •. 81 . • The company's business flourishes or remains depressed.All the departments are co-ordinate well under the main objective of maintaining good quality services.• • This would attract foreign funds from untapped countries exploring opportunities in Indian market. (d)THREATS • Due to the developments on the political and technical fronts. This would give a boost to the business opportunities of the company and others in the field. Chapter -5 5. SUGGESTIONS AND CONCLUSION 82 .1 FINDINGS. Tight competition prevailing QUALITY • Customer care and grievance dept contributes a lot to the quality measure. Time is given prior importance Punctuality is one of the main stay of GEOJIT Power is decentralized Feedback mechanism is bidirectional STRATEGIC LOCATION • Head office is at Cochin and very next to COCHIN STOCK EXCHANGE which is most suitable. I have found that MANAGEMENT • • • Is very efficient and whole hearted to the well being of the organization Is product oriented and its interaction with customer is outstanding Very keen in employees welfare.5. FINANCIAL POSITION • • Company is going through a tough period in terms of financial status. 83 . PROCEDURAL IMPLEMENTATION • • • • • Rules and regulations are strictly followed.1 FINDINGS From the organization study conducted at GEOJIT BNP PARIBAS FINANCIAL SERVICES LTD. the suggestions I am putting forward are MANAGEMENT • Introduction of Management Information System (MIS) will help the management to act more efficiently.2 SUGGESTIONS Based on the findings.5. Finance resources should be utilized in a better manner QUALITY • The company infrastructure can be a little modified 84 . FINANCIAL POSITION • • Need to work hard and smart to overcome the present crisis. a joint venture between C J George and Kerala State Industrial Corporation Development Ltd.3 CONCLUSION Geojit is a premier stock broking firm. GEOJIT have stock broking business of NSE. Mr. BSE. There are various types of departments in GEOJIT BNP PARIBAS LTD. the business was taken over by Geojit Financial Services Ltd. A study was conducted on STRENGTH. Geojit is functions all over the country. 85 . F&O & Commodity. It provides access to wide range of shares. The head office is at Cochin.5.. In 1994. OPPORTUNITY AND THREAT of GEOJIT by considering all the functional areas. This analysis is made to identify the unique features of GEOJIT in broking industry in special reference to the service offered. From the study. it was clear that the departments functioning in the organization are well co-ordinate and interacts properly with each other which is required for smooth functioning of the organization. WEAKNESS. it can be concluded that GEOJIT is one of the premier stock broking firm and it will continue the same in its future. C J George and Mr Ranajith M Kanjilal founded GEOJIT FINANCIAL SERVICES LTD in 1987 as a partnership for doing broking business in Cochin Stock Exchange. From all the above study. sebi.valuenotes.org • www.com 86 . Financial Daily • Business line • Dalal Street • Business Standard 6.2 Magazines.com • www.1Books • S Kevin – Security analysis & portfolio management • Punithavathy Pandian .geojitbnpparibas.com • www.wikipedia.Security analysis & portfolio management 6.gov.in • www.3 Websites • www. Journals.6 BIBLIOGRAPHY 6.businessline. extv OPER DIR REG NSE BSE DP SEBI ADMIN PMS NSDL NMCE Financial Human Resource Manager Senior Vice President Assistant Executive Junior Executive Operating Director Regional National Stock Exchange Bombay Stock Exchange Depository Participant Security and Exchange Board of India Administrations Portfolio Management Services National Security Depository Ltd National Multi Commodity Exchange of India 87 .V.P Asst Exetv J.7 APPENDICES FIN HR MGR SR. 88 . 89 . 90 .