IIFL Financial Performance Analysis

1
India Infoline Ltd. (IIFL)
JAIPURIA INSTITUTE OF MANAGEMENT
SMITA RASTOGI
A study on financial performance of India Infoline Ltd with
comparative analysis of its Competitors Brokering Agencies
Summer Training Project Report submitted in partial fulfilment of
the requirements for the
Post Graduate Diploma in Management (Financial Services)
at
Jaipuria Institute of Management, Lucknow
By
SMITA RASTOGI
JL14FS42
Supervisor:
Prof. SHALINI NATH TRIPATHI
DECLARATION CERTIFICATE BY THE STUDENT

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SMITA RASTOGI
I, SMITA RASTOGI, student of PGDM batch (2014-16) declare that the project entitled
―A STUDY ON FINANCIAL PERFORMANCE OF INDIA INFOLINE LTD WITH
COMPARATIVE ANALYSIS OF ITS COMPETITORS BROERING AGENCIES‖, is
my own work conducted under the supervision of Mr. NIMESH NAGAR as a partial
fulfilment of Summer Internship Program for the course of PGDM submitted to
INDIA INFOLINE LTD, Lucknow and Jaipuria Institute of Management, Lucknow
I further declare that to the best of my knowledge the project does not contain any part of any
work which has been submitted for any other project either in this institute or in any other
without proper citation.
Place: Lucknow
Date:
Signature of the Candidate:
ACKNOWLEDGEMENT

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SMITA RASTOGI
I hereby express my sincere thanks to the Director of my Institute, for forecasting the
excellent academic environment in the institute, and encouraging the student to pursue such
an important area of study at different places.
I also express my deep sense of gratitude to all the faculty members of Jaipuria Institute of
Management, Lucknow. I am indebted to their guidance, spirit and valuable suggestions and
words of wisdom which will go a long way developing us corporate ready to take up all
sought of challenges.
I also express my sincere gratitude to specially Mr. NIMESH NAGAR (Equity Relationship
Manager) and Mr. VIVEK SINGH (Retail brokering divison, Branch Manager), who helped
me clarify the concepts as to how India Infoline Ltd. actually works and carries out its day to
day functions. It was their useful guidance and valuable suggestions that led to the successful
completion of this project.
I would also like to thank Mr. Naval Kishore (NBFC divison, Branch Manager) and other
members of the office branch, Lucknow, Alambagh, for providing me with the much needed
corporate exposure for which this summer internship project has been especially designed for
and for their lessons which will surely pave my path in turning up as responsible corporate
personalities.
It was due to constant encouragement and inspirations of Prof. Shalini Nath Tripathi (Faculty
Mentor, Jaipuria Institute of Management) and the employees of India Infoline Ltd. because
of which I was able to finish the project in time. It was a lifetime experience being in India
Infoline Ltd. working on live projects under the direct assistance of the Relationship
Manager.
I would like to thank each and every person who helped me directly or indirectly, in making
this project and our summer internship a success.
EXECUTIVE SUMMARY
Indian Capital Market has been linked to the International Financial Market and the Standard
has been increased in terms of efficiency and transparency through Dematerialization of the

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SMITA RASTOGI
Indian Capital Market in terms of handling and dealing in securities in paper mode , the main
objective of this study is to analyze trends in growth of dematerialization process was not
keeping pace with the Indian Capital Market due to unpopularity of DEMAT, lack of
information , and short direction after the inception of the scheme or the earliest time taken to
evaluate its popularity. My project is base on study about dematerialization in the Indian
Capital Market .The project covers issues related to depository and India Infoline Ltd as
depository. Project start with objective, Methodology, and limitation of project than it
highlight company profile with product details, than it explains Indian capital market and
depository part of this capital market. This project cover trading in equity of capital market,
settlement of trade in depository, comparative analysis of structure and services offers in the
same industry, analysis of structure and services offers in the same industry, analysis of
dematerialization, issues related to DEMAT e.g. opening account, nomination
dematerialization, transmission ,freezing and de-freezing of DEMAT account.
There is growing competition between brokerage firms in post reform India. For investor it is
always difficult to decide which brokerage firm to choose. Since this industry is growing
having growth rate that attract me for doing my summer internship in this field that can
gather more and more knowledge about the share market. It was the great experience in that
field and I am also very thankful to the India Infoline Ltd, forgiving me this opportunity to
complete my project .Research was carried out to find that which brokerage house, people
prefer and to figure out what people want while investing in stock market. This study
suggests that people are reluctant while investing in stock and commodity market due to lack
of knowledge.
I have done my summer internship in India Infoline Ltd. My whole summer internship was in
ONLINE SHARE TRADING AND DEMAT ACCOUNT. In the first section of my summer
internship I was into the operations work in which I was given the work of working on CRM
(CUSTOMER RELATIONSHIP MANAGER). In the second section I had to do the work on
the Indian Capital Market. Thereafter I went to each and every department to learn the
processing‘s of that department. During the stint, I was exposed to theoretical as well as
practical learning. My project covered the list of various activities handle by India Infoline
Ltd. A flaw of any department can cause us lots of problems and hence we have to be very
cautious about the same. The project contains the workflow of the operation unit of India
Infoline Ltd and the implementations of various process of extracting from capital market
segment.
This project is an attempt to understand the basics of stock market. A project, which will
make me well, versed with the market happenings ups & downs in the stock market.
The first chapter gives a brief description about the company where I did my internship from,
which is India Infoline Ltd. The following chapter explains about writing this research report,
its industry overview, problem statement, rationale to problem, methodology to be used,
scope of study and limitation of study.
The second chapter tells about the overview of IIFL organisation, formation & company
composition, its history, philosophies, products, services and facilities it offered, the
organisation structure, HR practices and marketing strategies, competitors analysis, SWOT
analysis of company and PESTEL analysis of company and have being followed to analysis
the financial performance of the company. The chapter also includes the organisation
working profile and day to day working operation take place.

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SMITA RASTOGI
The third chapter describe the relevant literature review has been used in this project, which
includes matter related to stock market; DEMAT account and clearing depository settlement.
The following chapter will give the details and explain in brief the basics of capital market. It
will show in details the way stocks are traded, cleared and settled in the market using
different techniques.
The chapter four is data presentation, analysis and interpretation on fundamental analysis
helps us to understand the importance of the analysis. It shows us the steps taken to complete
the analysis and the findings to be analyzed in the analysis.This particular chapter tells about
the sampling frame, data collection methods, sources of data collection and presenting the
data into graphical manner and further analysis and interpretation have been done.
The fifth chapter summarizes the reason why I have selected the equity share brokering sector
for analysis. The huge investments and growth opportunities in the equity sector makes it an
important sector and all the more reason why we should keep an eye on the progress of it.
The chapter also tells about the reasons of choosing particular data analysis techniques and
their outcomes of data analysis are further elaborated.
The sixth chapter tells about recommendations to be made for IIFL, keeping in mind the
technical suitability, economic justification and feasibility of implementation them. This
chapter also includes the various schemes of implementation, precautions and monitoring
system. The chapter conclusions and suggestions are on the company and their financial
positions. It also helps us take a prediction as to how strong the stock is for future
investments. Further it also helps the investors to be cautious in investing in the company by
giving the risk factors associated with the company.
The last chapter finally suggest the concluding remarks about the gains from the project,
limitation of the project and scope of further work in the project. It also gives a detailed
report of my summer internship done at the company. It gives the jobs assigned to me at
work, followed by the methods, which I undertook in going about my internship.
LIST OF CONTENTS

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SNO. TOPICS PAGE
NO.
1 CHAPTER 1: INTRODUCTION 12-19
1.1 Problem Statement 13
1.2 Review of related literature 13-14
1.3 Rationale of the problem 14
1.4 Methodology 15-17
1.5 Scope of study 18
1.6 Limitation of study 19
2 CHAPTER 2: DETAILS OF THE ORGANISATION 20-86
2.1 Introduction 21-22
2.2 Organisation
 Company profile at a glance
 Vision
 Values
 Business strategy
 Customer strategy
 People strategy
 Corporate strategy
 Philosophy
 Company logo
 Brand position
 Corporate journey
 Milestones of IIFL
 Awards and recognition
22-27
2.2.1 Products, Services and Facilities
 Products
 Services
 Key features offered
 Benefits provided
27-35
2.2.2 Organisation Structure
 Subsidiary company
 Name of group company
 Board of directors
 Name of vertical and corporate heads
 Audit committee
 Share transfer and investor grievance committee
 IIFL office location
36-39
2.2.3 H.R. Practices 40-43
2.2.4 Marketing Activities 44-45
2.2.5 Competition Analysis
 Comparison of IIFL and competitors financial ratio
45-47
2.2.6 Industry Analysis
 Macro-economic environment analysis of Indian Financial
Service Industry compare to USA Financial Service Industry
 Macro-economic analysis of Indian financial Capital Market
47-51
2.3 Organisation Business Profile 51-54

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 A normal working day at IIFL- micro and macro level
2.4 Other Relevant Information
 Major clients of the firms
 Corporate social responsibility (CSR)
 Flame foundation
 Listing details of IIFL
55-56
2.5 SWOT analysis of company 56-57
2.6 PESTLE framework analysis of company 57-58
2.7 Financial performance of IIFL
 Balance sheet
 Profit and loss statement
 Shareholding pattern
 Cash flow
 Financial ratios
 Capital structure
 Dividend pattern
 Share split
 Operating leverage
 Financial leverage
 Linter model through regression model
 IIFL capital market 4th
quarter data
 Segmental breakup
 IIFL Holding Ltd. Stock position in the Indian stock market
 IIFL 4th
quarter institutional equities gaining
59-85
2.8 Conclusion 86
3 CHAPTER 3: REVIEW OF LITERATURE 87-117
3.1 Introduction of share market
 Listed stock exchange in India
 Role of stock exchange
 SEBI
 BSE
 NSE
 MCX
 NCDEX
 CDSL
 Classification of shares
 Online trading advantages
 Online trading disadvantages
88-98
3.2 Review of relevant literature
 Share market ecosystem
 Stock trader / broker
 Stock investor
 Broker advantages
 Brokers disadvantages
 Right match of the right broker
 Procedures for share trading
 Key terms of share market
98-115

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 Key terms of DEMAT account
 Things you need to know about Indian stock market
 3-in-1 trading account
 How to choose companies to invest
 Types of orders
 What error message indicates?
 10 tips for the successful long-term investors
 15 deadly sins of investing
3.3 Need of study 115-116
3.4 Conclusion 116-117
4 CHAPTER 4: DATA COLLECTION and ANALYSIS 118-134
4.1 Sampling design process 119-121
4.2 Data collection method 121-122
4.3 Sources of data collection 122
4.4 Presentation and processing of the data for analysis 122-134
4.5 Conclusion 134
5 CHAPTER 5: DATA ANALYSIS and INTREPRETATION 135-156
5.1 Choices of data analysis techniques 136-138
5.2 Outcomes and interpretation 138-154
5.3 Remarks 155
5.4 Conclusion 156
6 CHAPTER 6: RECOMMENDATIONS 157-16
6.1 Brief description of recommendations 158
6.2 Discussion of technical suitability, economic justification and
feasibility of implementation of recommendations
159-160
6.3 Suggested schemes of implementations and Precaution and
monitoring system
160-161
6.4 Conclusion 161
7 CHAPTER 7: CONCLUDING REMARKS 162-170
7.1 Summary 163
7.2 Gains from project 164-165
7.3 Limitation of project 165-166
7.4 Scope of further work 166
7.5 Conclusion 167-170
REFERENCE 171
APPENDICES 172
LIST OF TABLES

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S.NO TOPICS PAGE NO.
1 Company profile at a glance 22
2 Product, services and facilities 27
3 Board of directors 37
4 Name of vertical and corporate functions heads 38
5 IIFL office location 39
6 H.R. Practices 42
7 Competition analysis 45
8 Comparison of IIFL and competitors financial ratios 47
9 Industry analysis 48-49
10 Organisation business profile 51
11 Listing details of IIFL 56
12 SWOT analysis of company 56-57
13 PESTLE framework analysis of company 57-58
14 Balance sheet -
15 Profit and loss statement -
16 Shareholding Pattern -
17 Financial Ratios -
18 Cash Flow -
19 Capital structure 74
20 Dividend pattern 76
21 Split of shares 78
22 Linter model through regression analysis 80
23 Regression summary 80
24 Market capitalization 83
25 Net sales 83
26 EPS 84
27 Net profit 84
28 Total assets 84
29 Cash & bank and total liabilities 85
30 BSE 91
31 BSE hours of operation 91
32 NSE 93
33 MCX and NCDEX 95
34 NSDL and CDSL 96
35 Example of fees and taxes of buying and selling shares 109
36 How to choose companies to invest 113-114
LIST OF FIGURES

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S.NO TOPICS PAGE NO.
1 Company logo 24
2 Trader terminal desktop 33
3 IIFL online software and mobile application 35
4 IIFL organisation structure 36
5 H.R. Practices 40
6 Marketing activities 43
7 Macro-economic environment analysis of Indian Financial
Service Industry compare to USA Financial Service Industry
50
8 Macro-economic analysis of Indian financial Capital Market 51
9 Organisation business hierarchary of stock brokering business 52
10 IIFL working at Macro Level 53
11 Major clients of firm 55
12 PESTLE framework analysis of company 57
13 Shareholding pattern 60
14 Promoter group holdings 60
15 Shareholding group 61
16 Public holdings 62
17 Cash flow 63
18 Net sales 64
19 Operating profit 65
20 Total assets turnover 66
21 PAT 67
22 ROCE 68
23 Book value 71
24 EBITDA 72
25 PBT 72
26 PAT 73
27 Consolidated EBITDA, PBT, PAT 74
28 Capital structure 75
29 Dividend pattern 76
30 Retention and payout ratio 77
31 Constant payout ratio 77
32 Shares split 78
33 Linter model 80
34 IIFL capital market 4th
quarter 81
35 Segmental breakup 82
36 IIFL 4th
quarter Institutional equities gaining 85
37 Share market ecosystem 99
38 Different segments of stock market 104
39 Settlement cycle and trading hours 105
40 3-in-1 demat trading account 111
41 Outcomes and interpretation of outcomes
 Aware of share market
 Aware of investment options
 Have demat account
 Public preference of stock exchange
 Investment in stock market
138-154

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 Preferable investment options
 Investment advisor
 Often trade
 Type of trade
 Mode of trade
 Saving in trade
 Purpose of investment
 Tips and information
 Services offered
 Stock brokering agency
 Future investor
 Age
 Location
 Occupation
 Gender
 Monthly income
 Monthly savings
42 Reviews from experts 167-170
LIST OF CHAPTERS
S.NO CHAPTERS TOPICS PAGE NO.
1 INTRODUCTION 12-19
2 DETAILS OF THE ORGANSATION 20-86
3 RELEVANT LITERATURE REVIEW 87-117
4 DATA COLLECTION AND ANALYSIS 118-134
5 DATA ANALYSIS AND INTERPRETATION 135-156
6 RECOMMENDATIONS 157-161
7 CONCLUDING REMARKS 162-170
8 REFERENCES 171
9 APPENDICES 172

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CHAPTER-1
INTRODUCTION

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1.1 Problem Statement
IIFL Holdings Limited, together with its subsidiaries, provides various financial services
primarily in India. It offers a range of products and services comprising wealth management,
credit and finance, insurance, asset management, and investment banking, as well as retail
and institutional equities, and commodities broking services. The company also provides
equity research services, portfolio management services, mutual funds, life insurance, fixed
deposits, Government of India bonds and other small savings instruments, and loan products,
as well as equities, derivatives, and commodities trading services. In addition, it owns and
manages the Websites, www.indiainfoline.com and www.5paisa.com. The company‘s
customers include foreign institutional investors, banks, consulting firms, and corporate
customers.
Any research needs to be triggered by the need and desire to know more. This need might be
merely because we want to discover and reinstate some relationships; the orientation might
be purely academic with the purpose of uncovering some new perspectives to existing
phenomena (basis or fundamental research) or there might be an immediate business decision
that requires additional information acquisitions and analysis in order to arrive at any
effective and workable solution.
Similarly, this research is done to find out what should be done to enhance the investor‘s
awareness and satisfaction level?
1.2 Review of Related Literature
Indian Capital Markets play a vital role in the development of the economy and stock
exchanges are the integral part of the capital market. With the advancement in information
technology, age-old methods of stock trading are gradually fading out. They are replaced by
the easier and hassle-free method of online trading through the Internet or web based trading
terminal or mobile based trading application. This study is carried out to explore the changes
occurring in stock exchanges with the advancements in the information technology. The
major need for this study is to know the effectiveness of online system in comparison with
the outcry system. More emphasis is given to bring out the process of online trading behind
the screen and its advantages. The study also includes the emergence of the depository
system in the country to rule out the drawbacks of the system of physical transfer of the
shares.
The function of the Indian financial market is to facilitate the transfer of funds from surplus
sectors (lenders) to deficit sectors (borrowers). Normally, households have investible funds or
savings, which they lend to borrowers in the corporate and public sectors whose requirement
of funds far exceeds their savings. A financial market consists of investors or buyers of
securities, borrowers or sellers of securities, intermediaries and regulatory bodies. Financial
market does not refer to a physical location. Formal trading rules, relationships and
communication networks for originating and trading financial securities link the participants
in the market.
Organised money market: - Indian financial system consists of money market and capital
market. The money market has two components - the organised and the unorganised. The
organized market is dominated by commercial banks. The other major participants are the
Reserve Bank of India (RBI), Life Insurance Corporation (LIC), General Insurance

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Corporation (GIC), Unit Trust of India (UTI), Securities Trading Corporation of India Ltd.
(STCI), Discount and Finance House of India (DFHI), other primary dealers, commercial
banks and mutual funds. The core of the money market is the inter-bank call money market
whereby short-term money borrowing/lending is effected to manage temporary liquidity
mismatches. The Reserve Bank of India occupies a strategic position of managing market
liquidity through open market operations of government securities, access to its
accommodation, cost (interest rates), availability of credit and other monetary management
tools. Normally, monetary assets of short-term nature, generally less than one year, are dealt
in this market.
Unorganised money market: - Despite rapid expansion of the organised money market
through a large network of banking institutions that have extended their reach even to the
rural areas, there is still an active unorganised market. It consists of indigenous bankers and
moneylenders. In the unorganised market, there is no clear demarcation between short-term
and long-term finance and even between the purposes of finance. The unorganised sector
continues to provide finance for trade as well as personal consumption. The inability of the
poor to meet the "creditworthiness" requirements of the banking sector make them take
recourse to the institutions that still remain outside the regulatory framework of banking. But
this market is shrinking.
The Capital market: - The capital market consists of primary and secondary markets. The
primary market deals with the issue of new instruments by the corporate sector such as equity
shares, preference shares and debt instruments. Central and State governments, various public
sector industrial units (PSUs), statutory and other authorities such as state electricity boards
and port trusts also issue bonds/debt instruments
1.3 Rationale of the Problem
The main purpose of the study is to know the expectations of the investors, the awareness and
satisfaction levels of investors with the services provided by India infoline Limited. In the
present competitive environment it is very crucial to every business firm to ensure
satisfaction to its customers. According to one research survey, it was found that it costs five
times more to attract new customers than to retain the existing customer. So with all these
parameters taking into consideration, we can say that it is very important to provide good
services that satisfy customer‘s needs or wants irrespective of the industry or scale of the
business in which a firm is operating. Here the main purpose of the research is to know the
various factors that are very important in satisfying the customers‘ needs and to know how
India infoline limited is insuring its customer satisfaction and awareness level. The
expectations of customers are vary from one customer to the other customer. For example: -
some customers are only concerned about the returns that they are getting in a fund or a stock
but at the same time there are some other customers who are very specific about the location,
ambiance and front line employees interaction and some other parameters. It is very difficult
to any business firm to satisfy all the expectations of all customers but there are some
common factors that are essential to fulfil. The main purpose of investment is risk, returns
and liquidity, in any financial market is preferred by investors. The major findings of this
research study are that the investors are interested to invest in stock market but they have lack
of knowledge. Through this report we were also able to understand, what are our company‘s
(India Infoline Ltd.) strong and weak points, on the basis of which we come to know what
can be the basis of pitching to a potential customers.

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1.4 Methodology
a) Survey:
Unstructured observation:
In the unstructured observation, before conducting the survey there is a lack of clearly
defined objectives. The survey template was designed in order to collect the primary data
analysis and interview of expert stock brokers/employees of different brokering agencies‘
was conducted for the exploratory research about the share market and type of investors are
associated with different type of stock brokering agencies. The survey template was self
administered by the investigator/ responder. The following India Infoline Ltd competing
brokering agencies are study in this survey:
 ICICI DIRECT
 KARVY STOCK BROKING
 KOTAK SECURITIES
 HDFC SECURITIES
 RELIGARE SECURITIES
 INDIABULL SECURITIES LTD
 SHAREKHAN
 ANGLE BROKERING LTD
 AXIS DIRECT
Having an effective exploratory research, the information gathered will help as a platform to
conduct a non biased and thorough conclusive research. With this research, help to describe
the sample that we are going to select to test the various research hypotheses by deciding:
 who is going to provide the information for testing,
 what type of questions to be asked to target respondents,
 how we can approach to target respondents,
 how we will select the sample of target respondents,
 when we will approach target respondents,
 what will be the sample size, and
 In which manner we will collect the information.
b) Structured Observation:
In the structured observation, the nature of content to be recorded and the format is
pre-determined. With the help of survey template used to collect information from
different stock broker / employees, helps to design the questionnaire for investors.
The following information was pre-determined decided before conducting the
conclusive research:
 Research equipment- questionnaire
 Sample size- 100 common people of Lucknow
 Target population-
i. Govt/ salaried employees
ii. Self employee / businessman
iii. Jewellers
iv. Doctors
v. Engineers
vi. Lawyers

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vii. Charted accountant / Bankers
viii. Brokers
ix. Professionals‘
 Element- Common people doing share trading
 Sampling frame- Lucknow Google map
 Sampling unit- Common people of Lucknow
 Sampling technique- Multi-stage sampling technique
(i) quota sampling
(ii) convenience sampling
(iii) judgemental sampling
(iv) cluster sampling (area)
 Extent- Lucknow
(i) Indira Nagar
(ii) Gomti nagar
(iii) Hazatganj
(iv) Alambagh
(v) Faizabad Road
 Time- 15 days ( May-June, 2015)
 Research design- Exploratory and Descriptive research
 Sources of data- Primary and Secondary data
The telephonic calls were made from the IIFL registered and recorded phone number to the
investors who filled the questionnaire. In order to:
 Verify the reality of investors who filled the questionnaire.
 Persuade them to open their DEMAT account in IIFL.
Remind the top of mind business (IIFL) recall
c) Secondary data:
The secondary data has been collected from the websites-
www.moneycontrol.com A complete database of financial and
statistical position of the company in the
stock market.
www.bseindia.com A complete database of the companies
registered with the stock exchange and
comprehensive details about stock
policies and current share prices.
www.nseindia.com
www.chittorgarh.com A comparative database of different
stock brokers present in India.
Economic Times Newspaper
articles
Publish data in the month of April- July
Internal some documents of IIFL Manual, copy of annual report, copy of
DEMAT form, copy of sample
documents of gold loan schemes and
advertising pamphlets.

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d) Observation:
The observation noted on the basis of interview with stock brokers of different agencies.
The sample interview template was shown below; the interview is conducted in IIFL
stock brokering agency, the observation experience by the responder and answers (italic
font) noted on the behalf of respondent.
INFORMATION COLLECTED INFORMATION RECEIVED
1. Name of the stock brokering
agency
INDIA INFOLINE LTD (IIFL)
2. Contact person MR. NIMISH NAGAR
3. Address IIFL Alambagh
KSM Tower, CPI, Cinder Dump,
Sardari Khera, near bus stand,
Alambagh, Lucknow 226005
4. Enquiry number 0522-6060291
5. Type of broker DISCOUNT BROKER / FULL SERVICE
BROKER
6. Information shared by agent YES / NO
7. Documents shared by agent YES / NO
8. Deal in stock exchanges BSE / NSE / MCX / NCDEX
9. Deal in depository
participant
CDSL / NSDL
10. Mode of trade ONLINE / OFFLINE / BOTH
11. Number of accounts needed  SAVING ACCOUNT: with any other bank
 DEMAT ACCOUNT: only this account need
to be open
 TRADING ACCOUNT: merge with the
demat account
12. Account opening charges
(AOC)
Rs 750 (refundable after 3 months)
13. Annual maintenance charges
(AMC)
Rs 45 monthly ( Rs 540 annually)
14. Brokerages-
a) Intraday trade
b) Delivery trade
0.01 for intra day
0.1 for delivery
15. Margin money Rs25000
16. Documents needed 2 photographs, address proof, Pan card, bank
statement, cancelling cheque
17. Extra feature / benefit
provided
Free advisory and door-to-door services
18. Observations DEMATa/c procedure explain through internet and
trade terminal mode
19. Overall ratings On the scale 1-5 (1-poor, 2-fair , 3-average, 4-
good, 5-excellent)
 Fees: 4 {AMC and AOC both are low)
 Brokerage:4 {brokerage is low}
 Usability:4 { provide trade terminal free}
 Services:4 {free advisory and convenience
services}

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1.5 Scope of the Study
Now days, online trading and share market are a booming field for investor because they can
generate more returns as compared to other fields. I got golden experience regarding online
trading when I went to general public to conduct a survey and met different types of person
for knowing awareness, satisfaction and expectation of investor about the online trading,
DEMAT account, and comparative analysis between different stock brokers.
 The scope of project study will help for those who those not aware about the
knowledge of trading and services offered by the different brokering companies.
 It will also help for the new beginners investors, who are interested in the trading and
in share market.
 This will also helpful for the company IIFL because it is containing the cooperative
analysis of the different broker company, it also contains the strong and weak points
of IIFL.
 By this way IIFL can remove their weaknesses and can add more and more investors
in their series.
 Because new and existing investors are facing a lot of problem regarding online
trading. Hence this project has multidimensional scope of study.
 The study is limited to ―Equity share trading‖ With special reference to Equity share
brokering in the Indian context and the IIFL has been taken as representative sample
for the study.
 The study cannot be said as totally perfect, any alteration may come.
 The study has only made humble attempt at evaluating equity stock markets only in
Indian context.
 The study is not based on the international perspective of the equity stock markets.
 The scope of this project is limited to only one business of IIFL i.e. equity stock
brokering. This project is concerned with only one sector in the stock market. The
project does not extend its scope to any other sector of business.
1.6 Limitations of the Study
Every research study have some or the other constraints while doing the research or at the time of
conducting the survey of selected sample of the study. The analysis is made on the online trading
activities carried out in India Infoline Ltd. The following limitation of the research is listed below:
 The data is collected from the primary and secondary sources so the study will have
slight variations than what the study includes in reality.
 The study is limited to current time period.
 The study is purely for academic purpose.
 Most of the information collected for study is acquired from secondary sources.
 Research has a geographic limitation that research has only conducted for the India
Infoline Ltd, Lucknow respondents.
 Limitation of Sample size of 100 respondents.
 Budget constraint Small sample size is also a limitation of the study.
 At the same time the data collected through the questionnaire is from those customers
who are already using online trading services, and have the relationship to one of the
stock brokering agency located in sampling frame.

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SMITA RASTOGI
 Due to shortage of time and resources we decided to collect data from 100
respondents, this limitation may have impact on results like it‘s not truly
representative of the whole customer‘s point of view about online trading services.
Similarly, geographical limitation has also effect on the research. Finally income level
and saving level have also effect on the research because these factors are changing
with the passage of time.
 This is a study conducted within a period of 45 days.
 During this limited period of study, the study may not be a detailed, Full – fledged
and utilitarian one in all aspects.
 The study contains some assumptions based on the demands of the analysis.
 The study does not provide any predictions or forecast of the selected scripts.

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SMITA RASTOGI
CHAPTER-2
DETAILS
OF THE
ORGANISATION

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SMITA RASTOGI
2.1 INTRODUCTION
IIFL Holdings Limited (formerly known as India Infoline Limited) is an Indian financial
services company which is headquartered in Mumbai, India. The organisation was founded
by Nirmal Jain. IIFL was co-founded on October 18, 1995 by Nirmal Jain and R.
Venkatraman. Jain was previously employed with Hindustan Lever Limited (HUL). The
company was founded as Probity Research and Services Private Limited which provided
research on the Indian economy, businesses and corporate. The name was later changed to
India Infoline Limited.
We were originally incorporated on October 18, 1995 as Probity Research and Services
Private Limited at Mumbai under the Companies Act, 1956 with Registration No. 11 93797.
We commenced our operations as an independent provider of information, analysis and
research covering Indian businesses, financial markets and economy, to institutional
customers. We became a public limited company on April 28, 2000 and the name of the
Company was changed to Probity Research and Services Limited. The name of the Company
was changed to India Infoline.com Limited on May 23, 2000 and later to India Infoline
Limited on March 23, 2001.
A few years into the business, the organisation found itself with clients who included
research organisations, banks and corporate. They then began launching their research
products to become more noticeable in the market. In the meanwhile, the dotcom revolution
was beginning to take place in India. Taking advantage of this revolution would mean an
increase in the number of readers to millions. The website was created in 1999.
Taking the business one step ahead this group of consultants opened a trading portal –
www.5paisa.com –in 2000 thus moved into the business of being a full service broking
agency. During this time they widened their distribution network.
In 1999, we identified the potential of the Internet to cater to a mass retail segment and
transformed our business model from providing information services to institutional
customers to retail customers. Hence we launched our Internet portal, www.indiainfoline.com
in May 1999 and started providing news and market information, independent research,
interviews with business leaders and other specialized features.
In May 2000, the name of our Company was changed to India Infoline.com Limited to reflect
the transformation of our business. Over a period of time, we have emerged as one of the
leading business and financial information services provider in India.
In the year 2000, we leveraged our position as a provider of financial information and
analysis by diversifying into transactional services, primarily for online trading in shares and
securities and online as well as offline distribution of personal financial products, like mutual
funds and RBI Bonds. These activities were carried on by our wholly owned subsidiaries.
Our broking services was launched under the brand name of 5paisa.com through our
subsidiary, India Infoline Securities Private Limited and www.5paisa.com, the e-broking
portal, was launched for online trading in July 2000. It combined competitive brokerage rates
and research, supported by Internet technology besides investment advice from an
experienced team of research analysts, we also offer real time stock quotes, market news and
price charts with multiple tools for technical analysis.

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SMITA RASTOGI
In 2001, the Indian dotcom industry saw a downfall. During this time, sustaining became
tough. The organisation then decided to tie-up with leading Life Insurance company ICICI
Prudential, thus putting to use its distribution network and becoming India‘s first corporate
agent for insurance.
In 2009, IIFL also held their first global investor conference, Enterprising India, which was
attended by the likes of Jim Walker, David Bloom and Brahma Chellany, amongst others.
Previous Name New Name
Probity Research and Services Private Limited = > Probity Research and Services Limited
Probity Research and Services Limited => India Infoline Distribution Company Limited
India Infoline Distribution Company Limited => India Infoline Limited
India Infoline Limited => IIFL Holdings Ltd
2.2 THE ORGANIZATION
INDIA INFOLINE LTD (IIFL) is one of the leading brokerage firms in the country. It is
the broking arm of the Mumbai-based IIFL Group, which has over eight decades of
experience in the stock broking business. IIFL offers its customers a wide range of equity
related services including trade execution on BSE, NSE, Derivatives, depository services,
online trading, investment advice etc. On April 17, 2002 IIFL launched speed trade, a net-
based executable application that emulated the broker terminals along with host of other
information relevant to the day traders. This was for the first time that a net-based trading
station of this calibre was offered to the traders. In the last six months. IIFL (India Infoline
Finance Ltd.) was founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as
an independent business research and information provider. It gradually evolved into a
financial services solution provider. IIFL has a network of 3000 business locations spread
over more than 500 cities and towns across India. IIFL is listed on the Bombay Stock
Exchange (BSE) and the National Stock Exchange of India (NSE) for securities trading; with
MCX, NCDEX and DGCX for commodities trading; and with CDSL and NSDL as
depository participants. IIFL is registered as a Category In merchant banker and is a SEBI
registered portfolio manager. India Infoline (IIFL) group, is a brokerage firm dealing in retail
brokerage, institutional brokerage, consumer lending, institutional lending, realty and wealth
management.
COMPANY PROFILE AT A GLANCE (table 1)
Type Public limited
Location Mumbai, Maharashtra, India
Corporate office IIFL Center, B Wing, Trade Centre, Kamala Mills
Compound, Off Senapati Bapat Marg, Lower Parel,
Mumbai - 400 013,Maharashtra, India
Registered office IIFL House, Sun Infotech Park, Road No. 16V, Plot No.
B-23, Thane Industrial Area, Wagle Estate,
Thane - 400 604. Maharashtra
Year of incorporation 1995
Industry Financial Services
Key businesses Credit & Finance, Wealth Management, Financial

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SMITA RASTOGI
Product Distribution, Capital Market Related
Slogan When It‘s About Money......
Employees 14,000+
Business locations Around 4,000 locations in 900 cities and towns
Global reach Singapore, Dubai, New York, Mauritius, UK,USA,
Hong Kong, Switzerland, Geneva, India and Sri Lanka.
Listings NSE, BSE , MCEX, NCDEX
Listing date 17 May, 2005
Registrars Link Intime India Pvt. Ltd.
Short term debt rating ICRA A1+
Long term debt rating ICRA AA/(Stable)
Domains www.indiainfoline.com
www.iiflfinance.com
www.ttweb.indiainfoline.com
www.flame.org.in
ISIN code INE530B01024
Bloomberg code IIFL IN EQUITY
Auditors Sharp & Tannan Associates
Registrars Name Link Intime India Pvt. Ltd.
Address: C-13, Pannalal Silk Mill Compound, LBS
Marg, Bhandup (West), Mumbai - 400078
Vision
To become the most respected company in the financial services space in India.
Values
Values are IIFL are summarised in one acronym: GIFTS
Growth with focused team of dynamic professionals.
Integrity in all aspects of business – no compromise in any situation.
Fairness in all our dealings – employees, customers, vendors and shareholders all included.
Transparency in what we do – and in how and why we do it.
Service orientation is our core value, imbibed by all sales as well as support teams.
Business strategy
 Steady growth by adapting to the changing environment, without losing the focus on
our core domain of financial services.
 De-risked business through multiple products and diversified revenue stream.
 Knowledge is the key to power superior financial decisions.
 Keep costs low and continuously strive for innovation.
Customer strategy
 Remain largely a retail focused organisation, driving stickiness through knowledge
and quality service.
 Cater to untapped areas in semi-urban and rural areas, which is relatively safe from
cut-throat competition.
 Target the micro, small and medium enterprises mushrooming across the country
through a cluster approach for lending business.
 Use wide multi-modal network serving as one-stop shop to customers.

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SMITA RASTOGI
People strategy
 Attract the best talent and driven people.
 Ensure conducive merit environment.
 Liberal ownership-sharing.
......................................................................................................................................................
Corporate strategy
 To let customers make informed decisions and to simplify the process of investing in
stocks.
 To know the brokerage system of the share market.
 To know the various exchanges of share markets all over the world.
 Provide best product and services to the customers.
 To know the rules and regulation of SEBI.
.....................................................................................................................................................
Philosophy
IIFL (India Infoline) is committed to placing the Investor First, by continuously striving to
increase the efficiency of the operations as well as the systems and processes for use of
corporate resources in such a way so as to maximize the value to the stakeholders. The Group
aims at achieving not only the highest possible standards of legal and regulatory compliances,
but also of effective management.
................................................................................................................................
Our logo
The Shree Yantra is regarded in India as the most powerful and mystically beautiful of all
yantras (Sanskrit word for a symbol used to focus the mind). It predates the Vedas and is
supposed to be the favourite Yantra of Lakshmi, the Goddess of Wealth and Prosperity. This
powerful symbol, said to promote harmony and tranquillity as well, has endured for many
centuries. IIFL is engaged in the business of creating wealth and the adoption of the Shree
Yantra as its logo was but natural.
(Figure 1)
......................................................................................................................................................
Brand Positioning
when we pioneered online trading in India with the launch of our brand 5paisa, the tag line
was ―It‘s all about money, honey‖.
We recently realigned our positioning from ―Knowledge is the Edge‖ to “When it‟s about
Money”.
The IIFL brand is associated with trust, knowledge and quality service. But more importantly,
the brand stands for timely assistance provided to the country‘s under-banked customers.
....................................................................................................................................................................

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SMITA RASTOGI
Corporate Journey (1995-2014)
 1995-Incorporated as an equity research and consulting firm with a client base that
included leading FIIs, banks, consulting firms and corporate.
 1999-Restructured the business model to embrace the internet; launched
archives.indiainfoline.com mobilised capital from reputed private equity investors.
 2000 -Commenced the distribution of personal financial products; launched online
equity trading; entered life insurance distribution as a corporate agent. Acknowledged
by Forbes as ‗Best of the Web‘ and ‗...must read for investors‘.
 April 28, 2000 Conversion from Private Limited to Public Limited Company
 May 23, 2000 to focus on the retail financial intermediary business through an online
set-up.
 March 23, 2001 To focus on the retail financial intermediary business through offline
as well as online set-up
 2004 -Acquired commodities broking license; launched Portfolio Management
Service.
 2005 - Listed on the Indian stock markets
 2008: Launch of IIFL Private Wealth Management
 2010: Became the first Indian Broker to register on Colombo Stock Exchange
 2010: Received an approval for membership of the Singapore Stock Exchange
 2009: First edition of Enterprising India
 2011: Launch if IIFL Mutual Fund
 2012: Announced Real Estate Fund
 2013: Launched the largest AIF Fund in India
MILESTONES OF IIFL
2005 –
 India Infoline fixes a price band between Rs 70 and Rs 80 for its forthcoming public
issue. The company is coming out with public issue of 1.18 crore shares with a face
value of Rs 10 through the book building route. The issue is slated to open on April
21 and close on April 27 2005.
 Enam Financial Consultants Private Ltd would be the sole book running lead manager
to the issue while in time Spectrum Registry Ltd is the registrar to the issue.
 India Infoline public issue gets 6.6 times oversubscription.
 India Infoline Ltd has informed that the Company has entered into advertising
agreement with Times Group where in the Company and other group companies
would spend about Rupees Thirty Crores over the next 5 years in print as well as non
print media of The Times Group.
 India Infoline to buy 75-pc stake in Money tree.
2006-
 India Infoline launches exclusive SMS Value Added Service.
 India Infoline enters into strategic agreement with Saraswat Bank.
 India Infoline to launch stock trading on cell phones.
 India Infoline to roll out MCX, NCDEX, DGCX software.
 Acquired membership of DGCX; launched investment banking services.

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SMITA RASTOGI
2007-
 Launched a proprietary trading platform.
 Inducted an institutional equities team.
 Formed a Singapore subsidiary.
 Rose over USD 300 millions in the group.
 Launched consumer finance business under the ‗Money line‘ brand.
2008 –
 Launched wealth management services under the ‗IIFL Wealth‘ brand.
 Set up India Infoline Private Equity fund.
 Received the Insurance broking license from IRDA.
 Received the venture capital license.
 Received in principle approval to sponsor a mutual fund.
 Received ‗Best broker- India‘ award from Finance Asia; ‗Most Improved Brokerage-
India‘ award from Asia money.
 The Company has splits its face value from Rs10/- to Rs2/-.
2009 –
 Received registration for a housing finance company from the National Housing
Bank.
 Received ‗Fastest growing Equity Broking House - Large firms‘ in India by Dun &
Bradstreet.
2010-
 Received in-principle approval for membership of the Singapore Stock Exchange.
 Received membership of the Colombo Stock Exchange
2011-
 Launched IIFL Mutual Fund.
 IIFL got SEBI nod for Mutual Fund business.
 "IIFL announces launch of its 'Lifetime Prepaid, Anytime Money back' brokerage
product"
2012 –
"PFRDA appoints India Infoline Finance Ltd (IIFL) as Points of Presence (PoP) under New
Pension System (NPS)."
2013 –
IIFL Housing Finance ("IIFL HFC")
2014 –
IIFL Wealth acquires India Alternatives -The Company has changed its name from India
Infoline Ltd. to IIFL Holdings Ltd.

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SMITA RASTOGI
AWARDS AND RECOGNITION
 No. 1 in Fixed Income Portfolio Management in India, 2012 – Euro Money
 Best Broking House with Global Presence, 2011 & 2012 – D&B
 Top Performer, Equity (FI Category), 2012 – BSE
 Best Commodities Investment, 2012 – Euro Money
 Best Customer Service in Financial Services, 2013 - Retailer Customer Service
Awards
 Three of the analysts from the Pharma, Banking and Oil & Gas sector respectively
won the India's Best Market Analyst Awards 2013 by Zee Business
 Best Wealth Management House by The Asset Triple A – 2012
 Best Customer Service in Financial Services, 2013 – Retailer Customer Service
Awards Best Broking House with Global Presence, 2012 – D&B
 BSE Group felicitated IIFL for being one of the top performers in the 'Equity FI'
category on Mahurat Trading day-to-day
 Mr. Nirmal Jain, Chairman, IIFL received the 'Entrepreneur of the Year' award at the
10th Franchise India Awards 2012
 IIFL Buzz won the prestigious award for the internal tabloid at the 53rd annual
awards night of the Association of Business Communication of India (ABCI)
 Best Private Banking Services Overall – India – Euro money Private Banking Survey
2014
 Best Wealth Management company in India - Wealth Briefing Asia Awards 2013
 Fastest Growing Wealth Management Company - CNBC TV 18 Financial Advisor
Awards 2013
 Highest asset Growth Champion - The Wealth Forum Advisor Awards 2013
2.2.1 PRODUCTS / SERVICES AND FACILITIES
The major products of IIFL are categories according to the listed in different markets:
(table2)
Cash market
• Equity shares trading
platform
• Mutual fund distribution
• Insurance distribution
• Depository services
• Portfolio management
services (PMS)
• Investment banking
• Bonds
• Initial Public Offer (IPO)
Commodity market
• Commodities Trading
platform
• Derivatives- metallic and
agarian products
• Loans and Mortgages -
gold loans , home loans
and other loans
Others
• Structured products
• Credit finance and
securities
• Research reports
• Asset management
• Wealth management
• Offshore Investments
• Real Estate Advisory
• Capital Market advisory

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SMITA RASTOGI
PRODUCTS:
 Equity Trading and Stock Broking -
IIFL offers equity trading platform (online/offline) - cash & carry on NSE & BSE,
depository participant NSDL. Equity offerings suitable for high traders to long term
investors, beginners to diverse class of capital market participants. We have a
dedicated desk assisting clients on Asset allocation, trading strategies, portfolio
optimization. Award winning research on Fundamental, Technical & Derivatives
aimed at growing assets by outperforming market
 Portfolio Management Services-
Under the guidelines SEBI, IIFL has 2 registered portfolio manager directors, backed
by a pool of analysts with over 200 assistant portfolio managers in managing
portfolios. Portfolio Management Service is a product wherein an equity investment
portfolio is created to suit the investment objectives of a client. Indiainfoline invest
the resources of the investors into stocks from different sectors, depending on one‘s
risk-return profile. This service is particularly advisable for investors who cannot
afford to give time or don't have that expertise for day-to-day management of their
equity portfolio.
 Research and Analysis-
IIFL offers exhaustive information and data mining, covering the spectrum of Indian
business, industry and financial markets. Sound investment decisions depend upon
reliable fundamental data and stock selection techniques. Indiainfoline Equity
Research is proud of its reputation for, and wants to find the facts that the investors
need. Equity investment professionals routinely use the research and models as
integral tools in their investments strategy.
 Derivatives-
IIFL deal Derivatives (F&O) on NSE trading platform (online/offline). Extensive
research coverage on strategies such as hedging, carry-overs, spreads, etc., helps
clients to balance the risk and rewards of derivative trading. Our experienced advisors
support high traders to make most of this popular market segment.
 Mutual Funds-
IIFL provides mutual fund advisory and distribution, a mixture of comprehensive
coverage of all mutual fund offerings and seamless execution of instructions. IIFL
research and Mutual Fund trackers helps clients to navigate the ever growing market
of MF Offers with outmost ease. IIFL Mutual Fund has launched six schemes,
including three open ended and one close ended debt schemes and two open-ended
equity schemes. Our strength lies in gauging the market pulse and launching niche
products with low churn and operational efficiency, thereby keeping costs low.
 Structured Product-
Customized Structures offering unique combination of coupons, market participation
representing wide variety of Industry segment helps high net worth clients manage
and preserve their wealth.

29
SMITA RASTOGI
 Insurance-
IIFL -one of the largest insurance brokers presents its clients with a bouquet of
products across multiple service providers in most convenient manner. Our expertise
in different classes along with Insurance completes a client's financial planning
process. An entry into this segment helped complete the client‘s product basket;
concurrently, it graduated the Company into a one-stop retail financial solutions
provider. To ensure maximum reach to customers across India, IIFL have employed a
multi-pronged approach and reach out to customers via its network, direct and
affiliate channels.
 Commodities Broking-
IIFL is also a member of the Multi- Commodities Exchange (MCX). IIFL offers
commodity trading platform (online/offline) Again, rock-bottom brokerage and
quality research support. Indiainfoline extension into commodities trading reconciles
its strategic intent to emerge as a one stop solutions financial intermediary. Its
experience in securities broking has empowered it with requisite skills and
technologies. The Company was among the first to offer the facility of commodities
trading in India‘s young commodities market.
 Fixed Income Instruments-
From Fixed Deposits, Post Office Saving schemes to RBI Tax Saving and
Infrastructure Bonds.
 Wealth Management-
IIFL Private Wealth it is not only about investments, we address our clients‘ most
crucial wealth management issues, advise them on corporate structure and investment
entities, define their investment objectives, customize their investment portfolios and
guide them through succession planning exercises. We remain committed to
providing honest advice, Cutting edge innovation and prompt service. IIFL is leading
wealth Management Company that sits down to understand the needs and goals. IIFL
offers a dedicated group for giving the most personal attention at every level.
 Asset Management-
IIFL AMC has around Rs 2300cr worth of assets under management across Mutual
Funds, Alternate Investment Funds (AIF) and Venture Capital Funds. Under the AIF
platform we have launched two funds working on specific themes.
 Real Estate Advisory-
We provide end-to-end advisory services, whether buy, sell, lease or rent to assist
customers in decision-making, transaction, documentation and facilitate post deal
activity. Our mission is to help clients create and preserve wealth by providing the
best real estate investment.
 Capital Market Advisory-
Our extension into commodities and currency advisory reconciles with its vision to
emerge as a one-stop-shop financial intermediary. We are in the process of building a
culture of advisory and financial planning to move away from pure execution and de-
risk our business further. IIFL Capital, the institutional equities division of the IIFL
Group, is the first port of call for most leading foreign institutional investors and

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SMITA RASTOGI
mutual funds that invest in India. Our unmatched block placement capability is
renowned and is underpinned by our reputation for integrity and client confidentiality.
 Loans and Mortgages-
Indiainfoline acquired a 75% stake in Money tree Consultancy Services to mark its
foray into the business of mortgages and other loan products distribution. The
business is still in the investing phase and at the time of the acquisition was present
only in the cities of Mumbai and Pune. Indiainfoline now has plans to roll the
business out across its pan-Indian network to provide it with a truly national scale in
operations.
SERVICES:
Dedicated Team
The highly experienced team makes investment related decision-making much easier.
Relationship Managers and Advisors constantly strive to add value in services by
providing customized analytics and tools to meet clients‘ unique requirements
keeping in mind their risk taking abilities.
World-class Research made simple for our clients
IIFL has a full-fledged research team involved in macro-economic studies, sectoral
research and industry specific equity research covering Indian, emerging and global
markets. Also, IIFL's 'Forbes-acclaimed' world-class research team offers IQ (Insights
Quick), a customized, premium research offering, tailor-made for PReMIA
customers.
Easy Access and Complete Account Transparency
Access to online back office systems, charting tools, real time terminals and research
mines – all integrated through an award winning trading platform. Now, keep track of
your investments, anytime.
Dedicated Customer Service
IIFL has a dedicated customer care service desk to ensure that all queries pertaining to
your account, transaction details and fund status are clarified. Our experts are always
keen on helping the Priority Clients take an informed decision as we understand the
value of spotting an opportunity before others do.
Top-of-the-line Dealing Desk
More than 25 state-of-the-art Central Dealing Rooms deliver an unparallel equity
trading experience. Have the edge with our expert teams handling all your investment
worries.
Customized Investment Strategies
The IIFL team employs advanced strategies for trading with customized products in
Equity, MF, Structured and many more. Every step is backed by a centralized, real
time Risk Management System with cutting edge technology.
 Creation of a customized financial strategy
 Diversification of assets based on a formal process of asset allocation
 Active tracking, monitoring and review of portfolios

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SMITA RASTOGI
 Creation of private trusts
 Tax planning
 Estate planning
 Structuring of family wealth
KEY FEATURES OFFERED:
Managerial depth
Our promoters individually are first-generation Indian entrepreneurs with meritorious
academic backgrounds and impeccable professional careers.
The Promoters have built the business from scratch, without pedigree of a large family
business or inherited wealth and steered it towards a market leading position by dint of hard
work and enterprise.
We have consistently attracted the best of the talent from across the financial sector – private
sector banks, foreign banks, public sector banks and established NBFCs. The senior
management team have years of experience and backgrounds similar to promoters and leads
competent teams. IIFL has uninterrupted history of profits and dividends since listing. We
have delivered total shareholder returns of 34.3% CAGR from listing till March 31, 2013.
Governance
The Promoters have demonstrated an exemplary track record of governance and utmost
integrity. There have been no notable regulatory strictures or oversight ever in the group‘s
history. This is despite a widespread and broad range of operations governed by multiple
regulators including RBI, SEBI, IRDA, FMC and NHB. In addition, we have eight licensed
subsidiaries in major global financial centres.
Our Board has independent directors, highly respected for their professional integrity as well
as rich financial and banking experience and expertise. We have an advisory board
comprising stalwarts with long and immaculate careers in banks, public service and legal
profession.
None of the promoters‘ family members has held managerial or board position or have
related-party or financial transaction of any significance, since listing. Further, we have not
lent to any related party or associated concerns. The promoters do not have any other
business interests and are committed to the core business of financial services under the IIFL
umbrella.
People
Our people form the backbone of our organization and are the foundation of our success. We
have significant ownership by employees with a credo of ‗owners work, workers own‘, which
has enabled us to maintain a highly motivated staff driven by ‗owner mindset‘. We create
owners out of our employees not just by offering a financial stake but also through autonomy
to take decisions, make mistakes and grow confidence, competence and career.
Knowledge
IIFL is a knowledge driven organization and has over the years developed and
institutionalized knowledge about its businesses at all the levels.
Our roots are in original research on economy, sectors, companies, capital markets and global
financial trends. Our in-house research capabilities gives us an edge in understanding
industry trends, macro-economic situations, business cycles, inflation and interest rate trends,
technological changes, regulatory and legal updates, environmental factors impacting labour,

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SMITA RASTOGI
raw material supply, pollution norms and for intermediate products- trends in end user sectors
and for consumption products- trends in customers habits.
We have strong origination and KYC processes across our businesses to get deep
understanding of customer‘s needs and profile.
Innovation
 We have successfully executed a number of innovative and disruptive ideas in the
financial services industry to rise from a start-up to leadership position in less than
two decades. For instance:
 We gave away all our research free on indiainfoline.com and acquired millions of
readers
 We pioneered online trading and revolutionized broking at lowest rate of 5 basis
points
 We Inducted a high profile institutional team from a foreign brokerage house in a first
of its kind deal in India broking industry
Distribution reach
 We are present in around 4,000 business locations across more than 900 cities in
India.
 Our global footprint covers Colombo, Dubai, New York, Mauritius, London, Geneva
and Singapore.
 De-risked business
 IIFL has a de-risked and diversified business model across multiple revenue streams.
 We offer multiple products across all segments of financial services.
Risk management
The basis of our risk management and hence our sustainability is our underlying
conservatism. The objective of our risk management process is to insulate the company from
risks associated with the business while simultaneously creating an environment conducive
for growth.
The effectiveness of our risk management practice emanates from our rich experience. It is
derived from a deep understanding of the Indian economy, sectoral trends and corporate
fundamentals.
Our ability to manage organizational risk cascades from our board of directors, comprising
professionals with rich and varied experience. The risk appetite defined by our board is
reflected in our business plans and integrated into our operations.
We identify risks through appropriate systems, indicators and risk surveys reinforced by our
mangers. The company‘s well-defined organizational structure, documented policies and
standard operating procedures, authority matrix and internal controls ensure efficiency of
operations, compliance with internal and regulatory requirements.
We continuously strengthen our risk measurement tools customized to the nature of each
business segment. Many critical decision levels for investments, major lending and policy
initiatives are institutionalized trough appropriate committees‘.
Well capitalized
 The Group has net worth of around Rs20 billion.
 The company has a significantly unutilized capacity to leverage.

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SMITA RASTOGI
Technology
 Right from inception, IIFL has incubated and developed next generation technology
for its core businesses.
 IIFL‘s front office software is seamlessly integrated to a highly automated proprietary
back office, risk management and MIS software.
 IIFL Trader Terminal is an entirely home grown proprietary technology, which allows
trading in Equities Cash & Derivatives, Commodities, Forex, Mutual Funds, NFOs
and IPOs on a single screen.
Customer service
Our existing customer service organization has evolved with the singular goal since inception
that our customer experience should be the best. We offer services through multiple customer
touch-points such as personal interaction at our offices, call centre, email, and online web-
based interface. We have made significant investment in systems, technology, people and
their training, to ensure high service standards. We have also won an award for Best
Customer Service in Financial Services 2013. Some key elements of our service approach are
‗first time right‘ and ‗lightning fast‘ response time. We have taken several proactive steps to
reduce the incidence of grievances.
BENEFITS PROVIDED:
 Secure order by voice tool dial-n-trade.
 Automated portfolio to keep track of the value of your actual purchases.
 24x7 voice tool access to your trading account.
 Personalized price and account alerts delivered instantly to your cell phone &email
address.
 Special personal inbox for order and trade confirmations.
 Online customer service via web chat.
 Anytime ordering.
(Figure 2)
Trader Terminal (TT) Advanced™ as your trading platform for trading on the Indian
Exchanges via National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). This
guide will help you get up and running. TT Advanced™ is a comprehensive trading tool,
with superior charting and analytical capabilities that allow you to place orders and get them
executed alighting fast pace. If you are a first time user and just installed the software please
check out Quick Tour section that will guide you through most important aspects of using TT
Advanced™. The next section - Reference guide - provides detailed description of every
window and information on how to get the most out of your TT Advanced™ trading tool. In
the Technical analysis guide you will find material that will introduce you to the world of
charting and technical indicators.

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SMITA RASTOGI
Market Watch window is the most important window that will help you get you‘re trading
done.
Market Analyser helps you analyse the entire Market and zero-in on scrip that are amongst
the Top Gainers or Top Losers or Top Traded.
Message Bar-
 All Buy messages are shown in blue colour.
 All sell messages in red colour.
 Order/ Trade messages can also be seen in the Activity tab of the Reports window.
 If the Messages window is open these messages are also shown in the Messages
window. Exchange Messages, House Calls etc are displayed in the Messages window
in black colour. Groups, which are a collection of scripts can be created and retrieved
for reuse later.
 Several pre-defined NSE and BSE index groups help you get started with the most
popular scripts in a jiffy.
 You can create your own portfolio of scripts and save it as a group.
 Groups are shown in a Tree format and can be expanded to select the Group of your
choice.
Enjoy the Unique Trading Experience with our new trading platform-
 Designed for better performance
 Global buy / sell window
 Fast & confirmed order execution
 Easy to use interface
 Secured authentication
 One Stop Solution for all Equity, Commodity, Bonds, NCD‘s and Mutual Funds buying/
selling.
 Robust Terminal with advanced Charting, Ease of Use and a refreshed Interface
 Real Time accurate market watch rate updates.
 Single Sign On. (You can trade from anywhere)
 India‘s Top Brokerage with strong Transparent Systems and Processes.
 Strong Technology Back up to do Trade, Fund Transfer, Report etc through Internet.
 Has Tie-Ups with over 12 Banks enabling easy transfer of Funds
 Regular updates on your Trade and strong Risk Mitigation process.
 Fast trade execution with instant trade confirmation.
 Live streaming quotes and price watch on any number of stocks.
 Intraday charts, updated live, tick-by-tick.
 Live margin, position, marked to market profit & loss report.
 Set any number of price alerts on any number of scripts.
 Flexibility to customize screen layout and setting.
 Facility to customize any number of portfolios & watch lists.
 Facility to cancel all pending orders at one click.
 Facility to square off all transactions at one click.
 Top Gainers, Top Losers, Most Active, updated live.
 Index information; index chart, index stock information live.
 Market depth, i.e. Best 5 bids and offers, updated live for all stocks.
 Online access to both accounts and DP to check live updated Order and Trade Book.

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SMITA RASTOGI
 Facility to place after market orders.
 Online fund transfer facility from leading Banks including ICICI, HDFC, CITI and
UTI banks.
 Online intra-day technical calls.
 Historical charts and technical analysis tools.
 India Infoline world - acclaimed news service and research.
(figure3)
TT Mobile Help
 Welcome to IIFL's Mobile Trading Application. Please ensure you have the GRPS
connection activated from your service provider. You can sign in through the secure
Log In using your existing IIFL ID.
 Once you log in you get quick links to access Market watch, Buy / Sell link and to
view status of orders & trades placed.
 Market watch screen:
 Here you can. View & customize your market watch using the add / edit / remove
scrip links and get real time scrip updates.
 Buy /Sell section:
 To place your order fill in the order details in the buy / sell window. Get real time
price right on your order screen once you have entered the scrip symbol. Currently
you can only avail of NSE (awaiting approval)/ BSE Cash.
 After confirming & placing orders click on view status to check the current status &
details of an order already placed.
 Confirmation Screen:
 You will have to confirm all critical information before the order is placed.
 Order Book:
 You get list of all the order placed with IIFL. Once you select your order, you can
view the complete details of the order.
 Trade Book:
 After placing your order, you can view the status of the trades executed.
 To call, just touch the Call Trade link on the bottom screen.

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SMITA RASTOGI
2.2.2 ORGANIZATION STRUCTURE
The organisational structure of IIFL Holdings Ltd is shown below: (figure 4)
IIFL Holdings Ltd is divided into 9 companies.
1. India Infoline Ltd.
2. India Infoline Finance Limited: India Infoline housing Finance Limited is under this
company (Subsidiary).
3. India Infoline Insurance brokers Ltd.
4. India Infoline Commodities Ltd.
5. IIFL Assets management company & IIFL MF
6. IIFL Private Wealth management Ltd.
7. IIFL (Asia) Pte Ltd.
8. IIFL Inc. (US) investment Advisors Ltd.
9. IIFL (UK)
10. IIFL Multi National Company
Subsidiary Company:
India Infoline Housing Finance Limited (housing finance)
India Infoline Housing Finance Limited is the housing finance arm of the group. It is
registered with the National Housing Board (NHB). It is engaged in the business of housing
and related loan activities.

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SMITA RASTOGI
Name of Group Companies
 India Infoline Finance Limited (Formerly India Infoline Investment Services Limited)
India Infoline Limited (Formerly India Infoline Distribution Company Limited)
 India Infoline Insurance Services Limited (IIISL)
 India Infoline Commodities Limited (IICL)
 IIFL Realty Limited
 India Infoline Housing Finance Limited (IIHFL)
 India Infoline Media and Research Services Limited
 IIFL Capital Limited
 IIFL Investment Advisors and Trustee Services Limited (Formerly IIFL Trustee
Services Limited)
 India Infoline Asset Management Company Limited
 IIFL Wealth Management Limited (IIFLWML)
 India Infoline Trustee Company Limited (IITCL)
 IIFL Alternate Asset Advisors Limited
 India Infoline Insurance Brokers Limited
Board of Directors
There are 9 directors in the IIFL Holdings Ltd, which is public listed company. (Table 3)
Mr. Nirmal Jain
Chairman, IIFL Holdings Limited
Mr. R. Venkataraman
Managing Director, IIFL Holdings
Limited
Mr. Arun Kumar Purwar
Independent Director ,IIFL Holdings
Limited since March 2008
Ms. Rajashree Nambiar
Chief Exexcutive Officer IIFL Holdings
Limited since March 2015
(Newly appointed)
Mr. Nilesh Vikamsey
Independent Director, IIFL Holdings
Limited since February 2005
Ms Geeta Mathur
Limited since September 2014

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SMITA RASTOGI
Dr. Subbaraman Narayan
Limited since July 2012
Mr. Sunil Kaul
Non Executive Director , IIFL Holdings
Limited since November 2011
Mr. Chandran Ratnaswami
Non Executive Director ,IIFL Holdings
Limited since May 2012
Mr. Kranti Sinha
Limited since January 2005
(Table 4)
Business Vertical Head Corporate Functions
Chairman Nirmal Jain Managering Director R.Venkataraman
International Operation Bharat Parajia Strategy Aniruddha Dange
Wealth Management Karan Bhagat Compliance R.Mohan
Offshore Asset Management Amit Shah Finance Amit Mehendale & Parag
Shah
Institutional Equities H. Nemkumar Operation & Customer
Services
Narendra Jain
Investment Banking Nipun Goel Human Resources Pallab Mukherji
Consumer Finance Rajshree Nambiar Technology Sushil Tolani
Housing Finance Monu ratra Marketing Arun Malkani
PMS & Retail Broking Prasanth
rabhakaran
Treasury B.S.Amarnath
Financial Production
Distribution
Mukesh Singh Audit Upendra Jaiswal
AUDIT COMMITTEE
The Audit committee comprises Mr Nilesh Vikamsey (Chairman), Mr R Venkataraman, Mr
Kranti Sinha, two of whom are independent Directors. The Chairman along with the
Statutory and Internal Auditors are invitees to the Meeting. The Terms of reference of this
committee are as under:
- To investigate into any matter that may be prescribed under the provisions of Section 292A
of The Companies Act, 1956
- Recommendation and removal of External Auditor and fixation of the Audit Fees.
- Reviewing with the management the financial statements before submission of the same to
the Board.
- Overseeing of Company's financial reporting process and disclosure of its financial
information.
- Reviewing the Adequacy of the Internal Audit Function.

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SMITA RASTOGI
COMPENSATION/ REMUNERATION COMMITTEE
The Compensation / Remuneration Committee comprise: Mr Kranti Sinha (Chairman) & Mr
Nilesh Vikamsey, both of whom are independent Directors. The Terms of reference of this
committee are as under:
- To fix suitable remuneration package of all the Executive Directors and Non Executive
Directors, Senior Employees and officers i.e. Salary, perquisites, bonuses, stock options,
pensions etc.
- Determination of the fixed component and performance linked incentives along with the
performance criteria to all employees of the company
- Service Contracts, Notice Period, Severance Fees of Directors and employees.
- Stock Option details: whether to be issued at discount as well as the period over which to be
accrued and over which exercisable.
- To conduct discussions with the HR department and form suitable remuneration policies.
SHARE TRANSFER AND INVESTOR GRIEVANCE COMMITTEE
The committee functions under the Chairmanship of Mr Kranti Sinha, a Non-executive
independent Director. The other Members of the committee are Mr. Nirmal Jain and Mr. R
Venkataraman. Ms Sunil Lotke, Company Secretary is the Compliance Officer of the
Company.
IIFL Office Location (HO/ Regional/ Branch):
Corporate office
IIFL Centre,
B Wing, Trade Centre,
Kamala Mills Compound,
Opposite Senapati Bapat Marg,
Lower Parel,
Mumbai, 400013
Registered office-
IIFL House,
Sun InfoTech Park,
Road no. 16V, Plot no. B-23
Thane Industrial Area,
Wagale Estate,
Mumbai, Thane, 400604
(Table 5)
International offices
( countries)
Regional offices (States) Branch offices
(Lucknow)
Singapore North- Delhi and Chandigarh Alambagh
Dubai South- Bangalore, Chennai, Hyderabad Hazatganj
USA East- Kolkata Butler Colony
UK West- Mumbai, Pune, Ahmadabad Gomti Nagar
Geneva Indira Nagar
Hong Kong Chowk
Mauritius Mahanagar
Sri Lanka Aminabad
Switzerland Rajajipuram

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SMITA RASTOGI
2.2.3 HR PRACTICES
(Figure 5)
A HR Professionals with rich years of experience in managing human capital, with expertise
in the area of resourcing, campus relations, training and development, system enhancement,
performance appraisal and HR analytics. The top HR of IIFL group are:
Mr. Jerry Tauro, Mr. Pallab Mukherji, Ms. Priya Dhariya and Mr. Reetesh Chaturvedi
Areas of Expertise:
 Campus Relations
 Process roll outs and HR Analytics & Employee Benefits
 Manpower Strategy Planning and Recruitment for IIFL Group
 Employee Engagement
 Introduced Comprehensive Campus Recruitment cum Induction Program for
Management Trainees from Premier B-schools and CAs.
 New initiatives launched include R&R - Star Development Program, Referral
Program – Sampark, Branch Visit program – Sambandh
 Rolled out Consultant Empanelment Process and streamlined Recruitment processes
by standardisation and introduction of controls

41
SMITA RASTOGI
 Grading hierarchy introduced across Businesses
 Fostering the HR value proposition in a fast moving organization gaining trust of
myriad of people
 Driving Change Interventions in Business through effective performance management
 Harnessing technology to increase transparency of HR products and processes
 Assembling leadership team for the organisation through internal and external
resourcing
 Building and implementing a sustainable training architecture
 Inculcating elements of predictability on people related matters
 Manage the recruitment process for hiring at Junior & Middle Management Levels
 Source candidates through various channels majorly through Career Site, On-line
Recruitment System – SIVA, Job Portals, and Internal positions, Referral Scheme,
Prints Ads, Job Fairs and Consultants and social networking, etc. and ensuring the
closing of positions by regular follow-ups to meet the Deadlines.
 Conducting Interviews & short listing Candidates.
 Follow up with the Short listed candidates with respect to CTC negotiations and date
of joining and follow up with the candidates till the final roll out of offer letters.
 Preparing Salary Break-up and Issuing Offer Letter to the candidates.
 Designing of Job advertisements/Job posting as per the positions.
 Create and maintain good network with employment sources like Consultants and
Recruitment Partners.
 Preparing Job Descriptions and Specifications.
 Designing and driving new channels of sourcing talent from different B – Schools
 Handled performance appraisal / increment cycle for entire organization
 Organisation appreciated for HR overall contribution & rewarded with overseas trip
 Conducted Branding activities at premier B-Schools using various methodologies
 Exploring new alternatives to increase applicants via branding & other methodologies
also managing overall costs, by effectively promoting usage of low cost preferred
channels
 Making e-channels more effective by branding & ease of use among recruiters
Presenting weekly & monthly analytics to senior HR Management on sourcing
channel usage, Bank trend on increasing Headcount, Hiring, Attrition, Transfers,
competition & news bytes on job market
 MIS Reporting & data analysis through the HRMS (Oracle) across functions PAN
India
 Develop and executed innovative method for Partnering with B schools through joint
certifications program increasing Employer Brand visibility & placement process.
The following HR organisational practices take place on the employees perspectives‘ are
shown in table, describing the monetary HR practices and non-monetary HR practices:

42
SMITA RASTOGI
(Table 6)
MONETARY HR PRACTICES NON-MONETARY HR PRACTICES
 Payroll / compensation paid through
cheques
 Grievance handling and redressed
mechanism of employees. It has 3
levels:
 Primary level
 Secondary level
 Higher internal machinery level
 Fringe benefits-
 Employee life insurance
 Employee and his / her family
medical and health insurance
 Travelling allowances on
corporate trips
 Commissions on extra work
 Food expenses
 Employee quarterly training
programs-
 NISM Exams have to be
cleared by each employee
 Workshops conducted on
building relationship with the
customers
 Seminar on Financial
Inclusion
 Panel discussions on new
financial changes expected in
future in the economy
 Cash coupons and prizes for best
employee
(Employee Contest who completes
the sales target)
 Fair practice code of conduct is
followed
 Create transparency and trust among
employees
 Open door policy is followed
 Induction programme for new
employee (runs for 15days)
 Celebration of Corporate Day (mostly
take place in 2nd
quarter)
 Regular conference calls from R & D
department
 Technical helping mails to the
employees from IT department.
 Awards and Recognition-
 Best award for employees
 Best branch award
 Best award for managers
 Best outperformer of the year
 Best consistent performer
 Best star employee of the month
 Best star employee of the year
 Online attendance report enquiry and
other relevant issues through
company‘s HR Information System
 Friday and Saturday is an informal
day

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SMITA RASTOGI
 Five day of working (Monday-
Saturday)
 Flexi-time of working between
8.30am - 5.30pm
 IIFL BUZZ newspaper quarterly
published for highlighting the
achievement employees and internal
management
2.2.4 MARKETING ACTIVTIES
(Figure 6)
 The chairman of IIFL group Mr. Nirmal Jain presented his view points about the
company and the changing trends in the economy on different newspapers and the
business talk and debate shows on CNBC news channel.
 Mass Marketing:
 Distribution of pamphlets and leaflets to the general mass public either inside
the newspapers or directly in the hand of the customers.
 Printing of company balance sheet and quarterly reports on the business
newspapers as per SEBI guidelines.
 Printing the Gold Loan auction notice in the newspaper as per SEBI
guidelines.
 Published stock market advisory report on newspapers.
 Printing the company logo, tagline and different business of the company on
the front page of the newspaper.
 Social Marketing:
 Company officially registered pages, websites and groups on various web
engines on Yahoo, Google, LinkedIn, Twitter and Face book.
 Company corporate day celebration and history performance videos on
YouTube.

44
SMITA RASTOGI
 IIFL promotes its company business, products and services through websites
fillers and banners.
 Telephonic Marketing:
 Calling the past and new customers timely basis. To provide old and existing
customers satisfaction services and converting the new customers for the
business.
 Promoting them about new schemes and other financial products of the
company.
 Generating the customer‘s feedback on the recorded registered phones, which
get audited after end of every month.
 Micro Marketing:
 Organised free health check camp and blood donation camp to nearby areas of
office location.
 Work with different company associated like AMC (association of mutual
fund company), HDFC Life Insurance etc
 Organised tea party for particular branch customers‘.
 Organised workshop on Business B-Schools, for promoting the brand
marketing and recruiting the potential suitable candidates for the job.
 Organised Investor Monthly Meet for particular region customers‘ on the large
scale. (May meet held at Haider Garh and June meet held at Sadulla Nagar).
 Placing the billboard (No Parking) outside of customers‘ residence gate.
 Organising stalls at the religious festivals and distribute snacks to the public.
 Differentiated Marketing:
 Opening company branches of different business at different prime locations
of the city, covering the particular State.
 IIFL Gold Loan open and operate the branch office at the same or nearby
building where its main competitor Muthoot Finance has its office. IIFL
distinguish its services by lowering the interest rates as compare to Muthoot
finance.
 IIFL does not advertised its products and services through print media (radio
and television)
 Newsletters:
 The daily market strategy is a morning dose on the health of the markets. Five
intra-day ideas, unless the markets are really choppy coupled with a brief on
the global markets and any other cues, which could impact the market.
 The India infoline Weekly Newsletter is a flashback for the week gone by.
 A weekly outlook coupled with the best of the web stories from India infoline
and links to important investment ideas, leader speaks and features are
delivered in investor‘s inbox every Friday evening.
 Relationship Marketing:
IIFL believes in creating long-term relationship and mutually beneficial arrangements
wherein both buyer and seller focus on value enhancements through the creation of
more satisfying exchanges. This approach attempts to transcend the simple purchase
exchange process with the customers to make more meaningful and richer contracts

45
SMITA RASTOGI
by providing a more holistic, personalised purchase, and use or consumption
experience to create stronger ties. IIFL follows 5E‘s concepts:
 Effective
 Efficient
 Enjoyable
 Enthusiastic
 Ethical
2.2.5 COMPETITION ANALYSIS
The major competitors of IIFL are listed below: (table 7)
IIFL SHARE
BROKERING
IIFL GOLD LOANS IIFL MUTUAL FUND
 ICICI DIRECT  JEWELLERS  AXIS MUTUAL FUND
 KARVY STOCK
BROKING
 MUTHOOT
FINANCE
 BARODA PIONEER MUTUAL
FUND
 KOTAK
SECURITIES
 MANAPPURAM
FINANCE LTD
 BIRLA SUN LIFE MUTUAL
FUND
 HDFC
SECURITIES
 MAHINDRA
FINANCE
 BNP PARIBAS MUTUAL
FUND
 RELIGARE  NBFC  BOI AXA MUTUAL FUND
 INDIABULL
SECURITIES LTD
 KARVY
FINANCIAL
SERVICES LTD
 CANARA ROBECO MUTUAL
FUND
 SHAREKHAN  BANK ETF  DEUTSCHE MUTUAL FUND
 ANGLE
BROKERING LTD
 RELIANCE
GOLD LOAN
 DSP BLACKROCK MUTUAL
FUND
 RELIANCE
SECURITIES
 HDFC GOLD
LOAN
 EDELWEISS MUTUAL FUND
 AXIS DIRECT  UNION GOLD
LOAN
 ESCORTS MUTUAL FUND
 VENTURA  SBI GOLD
LOAN
 FRANKLIN TEMPLETON
MUTUAL FUND
 IDBI PAISA
BUILDER
 GOLDMAN SACHS MUTUAL
FUND
 STANDARD
CHARTERED
 HDFC MUTUAL FUND
 SBI SCURITIES  HSBC MUTUAL FUND
 JUST TRADE  ICICI PRUDENTIAL MUTUAL
FUND
 COMPOSITE
EDGE
 IDBI MUTUAL FUND
 IL & FS
INVESTMENT
LTD
 IDFC MUTUAL FUND
 RELIANCE
MONEY
 IIFCL MUTUAL FUND
 MOTILAL OSWAL
SECURITIES
 IL&FS MUTUAL FUND
 GEOJIT  INDIABULLS MUTUAL

46
SMITA RASTOGI
FUND
 ANAND RATHI
SECURITIES LTD
 JM FINANCIAL MUTUAL
FUND
 RELIANCE
CAPITAL
 JP MORGAN MUTUAL FUND
 BAJAJ CAPITAL  KOTAK MAHINDRA
MUTUAL FUND
 BONAZA ONLINE  L&T MUTUAL FUND
 ADITYA BIRLA
MONEY
 LIC NOMURA MUTUAL
FUND
 SMC GLOBAL
SECURITIES LTD
 MIRAE ASSET MUTUAL
FUND
 RKSV  MOTILAL OSWAL MUTUAL
FUND
 ZERODHA  PEERLESS MUTUAL FUND
 TRADE LINE  PPFAS MUTUAL FUND
 TRUSTLINE
SECURITIES
 PRINCIPAL MUTUAL FUND
 Mini individual
stock brokers
 QUANTUM MUTUAL FUND
 RELIANCE MUTUAL FUND
 RELIGARE INVESCO
MUTUAL FUND
 SAHARA MUTUAL FUND
 SBI MUTUAL FUND
 SHRIRAM MUTUAL FUND
 SUNDARAM MUTUAL FUND
 TATA MUTUAL FUND
 TAURUS MUTUAL FUND
 UNION KBC MUTUAL FUND
 UTI MUTUAL FUND
Comparison of India Infoline Ltd. and Competitors Financial Ratios
The data extracted from Moneycontrol.com website, on 4th
June 2015, Thursday, at 4:00pm
after closing down the particular day Equity stock market. The data shows the comparison of
IIFL Holdings Ltd (India Infoline Ltd) to its financial services (general) competitors on the
basis of criteria last closing / traded price, market capitalisation amount invested on particular
day, sales turnover on particular day, net profit on particular day and total assets value on
particular day.

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SMITA RASTOGI
COMPETITION of FINANCE SERVICES (GENRAL)
Name Last
Price
Market
Cap.
Sales Net
Profit
Total
Assets
(Rs. cr.) Turnover
IIFL Holdings 186.55 5,690.53 109.04 98.22 1,323.49
SKS Microfin 444.5 5,619.50 723.96 187.66 1,091.78
Network 18 50.75 5,312.76 74.32 -687.55 3,874.64
Edelweiss 61.25 4,903.05 247.83 111.48 2,066.66
Motilal Oswal 296.65 4,188.50 128.71 60.5 699.04
Capital First 370.8 3,375.23 1,423.51 112.02 8,171.35
Kirloskar Invt 3,990.00 2,110.20 52.51 47.97 346.61
Delta Corp 71 1,637.72 194.15 31.9 939.14
Geojit BNP 52 1,208.74 272.02 67.55 330.36
Pilani Invest 1,432.00 1,132.53 50.53 42.42 844.3
The Byke Hosp 162.1 649.99 181.42 20.03 96.97
Capri Global 152.95 536.16 189.55 85.18 954.3
Nalwa Sons 615 315.87 21.28 6.09 343.38
Microsec Fin 82 260.85 2.04 1.05 225.12
Emkay Global 58 141.74 99.89 -15.94 149.92
Aditya Birla 24.4 135.18 112.01 7.08 47.19
DB (Int) Stock 32.25 112.88 8.56 1.85 38.16
Consol Finvest 33 106.69 2.18 1.49 348.51
Jindal Poly Inv 74.3 78.1 0.39 -0.16 647.48
Dhunseri Invest 106.2 62.18 23.02 17.33 191.18
Indbank Merchan 9.15 40.61 8.6 2.72 41.69
Keynote Corp 37.45 26.28 4.09 0.52 47.73
Khandwala Sec 17.15 20.48 4.46 0.25 34.67
Indo Thai Secu 16.05 16.05 31.99 2.41 39.3
Transwarranty 6.4 15.65 8.03 0.11 60.02
Lakshmi Finance 42.75 12.83 6.52 5 28.61
(Table 8)
2.2.6 INDUSTRY ANALYSIS
Brokerage firms are the business entities that deal with stock trading. India, with an
increasing capital market and a growing number of investors, has a number of brokerage
firms. In Indian retail brokerage industry, the brokerage firms primarily work as agents for
buying and selling of securities like shares, stocks and other financial instruments and earn
commission for each of the transactions. Financial brokerage market in India is going through
sweeping changes with new players looking to be a part of the highly competitive brokerage
market characterized by dwindling brokerage and exponential growth of brokers and sub
brokers. On the other hand, many existing players have been forced to undercut operations
due to lack of revenues while others still surviving on the basis of consolidation. The market
is witnessing new guidelines by their regulatory authorities and new innovative offers by
banks and brokerage companies

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SMITA RASTOGI
IIFL belongs to Financial Services Industry and I have done the environmental scanning on
the basis of internal analysis- micro environment and external analysis- macro environment.
(Table 9)
MICRO ENVIRONMENT MACRO ENVIRONMENT
 Financial Company
Each institution has its own top
management, organisational structure,
finance, R&D, marketing, operational,
IT, HR departments which forms the
internal environment of the company.
The internal environment sets company‘s
strategic policies, mission, vision and
objectives and the top management
officials implement those in the
company.
 Demographic profile
Income- saving pattern, age composition, sex,
occupation, increasing population density, growth
in rural areas and changing role of women and
other statistics are the factors affect the financial
service industry.
For e.g. - Bhatiya Mahila Bank (BMB) entirely
owned, managed and for the women upliftment.
- Regional Rural Banks are situated nearby
rural areas in order to finance the
agricultural products and provide loans
for agricultural equipments.
 Financial Supplier
The chartered accountant, finance
professionals, banking employees, stock
brokers, financial agents and financial
advisors are the suppliers of the finance
service industry, they help the industry to
promote, sell, and distribute its financial
products and services to the investors /
customers. The suppliers are known for
their value delivery system and build the
link between the company and overall
investor.
 Economic profile
SEBI and RBI are the main regulatory financial
bodies and maintain the flow of capital in the
economy in the form of economic growth,
interest rates, exchange rates and inflation rate.
The other financial regulators are NABARD,
IDFC, LIC, GIC, DFHI and STC.
 Financial Intermediaries
Banks, credit companies, insurance
companies, and other businesses that
help finance transactions or insure
against the risks associated with the
buying and selling of financial products
and services. Most firms and customers
depend on financial intermediaries to
finance their transactions.
 Natural profile
Changes in the ecological or natural factors like
crude petroleum prices adversely impact the
financial service industry by fall in share market,
may raise the inflation in the country, and may
slow down the economic growth. Similarly, the
concept of Green Banking has been launched by
Axis Bank which reduced the paper work and
adopted the internet.
 Financial Competitors
The finance service industry is divided
into banking institutions, insurance
companies, investment houses and stock
brokering agencies. Each segment of the
industry has its own size, market
position, customers holding than of its
competitors. Each competitor has to face
 Technological profile
Internet created new technologies, products and
services and market opportunities for the
financial service industry. For e.g. ATM, online /
web- based share trading terminals, mobile
banking apps, and RTGS / NEFT internet
services.

49
SMITA RASTOGI
competitive advantage depending upon
the strengths and weakness of competitor
in the market, plans differentiated
marketing strategies and maintains
customer loyalty.
 Publics
The general public doesn‘t take interest
in the company‘s policies, so companies
take the help of Public Relations (PR), to
spend time and monitor the general
public and understand their opinions and
needs. The industry deals with 3 types of
publics:
FINANCIAL- Banks, investment houses,
financial institutions and stockholders are
major financial publics. This group
influences the company‘s ability to
obtain funds.
MEDIA-Financial newspaper, magazines,
and CNBC channel helps to aware about
financial fluctuations in the economy.
GOVERNMENT- Budget, economics
surveys, financial reports helps to know
the government developments in to
account.
 Political profile
The Finance Minister amendment the laws on
timely basis and the two government regulatory
bodies- SEBI and RBI, who implement and solve
the financial issues related to the financial service
industry. For e.g. taxation policy, monetary and
fiscal policy.
The political disturbances or decisions in the
country mostly impact the stock market index
fluctuations. For e.g.- Changes in Minimum
Alternative Tax, the foreign investors left the
Indian stock market and switch over to Chinese
stock Market.
 Customers
Investor is the customer (King) in the
finance service industry, whose main aim
is to minimise the risk and maximises the
return by investing in any financial
instruments. Since each customer is
unique in itself according to their needs,
satisfaction level, and other factors, the
financial market provides different
products and services to each customer.
 Socio-Cultural profile
The different segments of the finance service
industry following corporate social responsibility
programme, under which institutions giving
importance to society‘s basics values, beliefs,
attitude, perceptions, customs, preference, and
behaviours. For e.g. - launch health and education
awareness drives in rural areas.
- Changing customers‘ perspectives about
insurance policies that it does not only
secure your family but it also helps to
avail tax benefits.

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