Chapter-1

Profile Of The Company

1.1 Brief Narrative About The Company

Sharekhan, India’s leading stockbroker is the retail arm of SSKI. With more than

2300 share shops in 575 cities and India’s premier portal, www.sharekhan.com, we

reach out to customers like no one else and customers enjoy multi-channel access to

stock markets. Sharekhan offers you trade execution facilities on the BSE and the

NSE, for cash as well as for derivatives, depository services, investment advice and

commodity trading on the MCX and NCDEX t h r o u g h m u l t i p l e c h a n n e l s -

a n i n t e r n e t p l a t f o r m , telephone and retail outlets.

Sharekhan Ltd. is a brokerage firm which is established on 8th February 2000 and

now it is having all the rights of SSKI. The company was awarded the

2005 Most Preferred Stock Broking Brand by Awaaz Consumer Vote. It is

first brokerage Company to go online.

Sharekhan is led by a highly regarded management team that has invested crore of

rupees into a world class Infrastructure that provides our clients with real time service

& 24/7 access to all information and products. It aims to facilitate a smooth and

gentle entry into the supposedly complex jungle of stocks- a responsibility of a

company adding over 6,000 new customers every month.

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Our flagship Sharekhan Professional Network offers real-time prices, detailed data

and news, intelligent analytics, and electronic trading capabilities, right at your

finger-tips. This powerful technology complemented by our knowledgeable and

customer focused Relationship Managers. We are creating a world of Smart Investor.

Sharekhan Client Relationship Managers are available to you to help with your

financial planning and investment needs.

SSKI Group

In 1922 Share khan, was founded as SSKI (Shantilal Shevantilal Kantilal

Iswarnath) and later on it is renamed as Share khan Ltd. and it is one of India’s

oldest brokerage houses having over eighty years of broking experience. SSKI is

the only domestic player in a market crowded by 44 multinational securities

firms. SSKI group also comprises institutional broking and corporate finance 18

years ago.

SSKI provide the best research coverage amongst broking houses in India. The

company’s is rated as one of the best in the country. Voted four times as the top

domestic brokerage house by Asia money survey, SSKI is consistently ranked

amongst the top domestic brokerage houses in India.

SSKI started retail broking in 1985. Research group was set up in December

1992. It acts as a pioneer of investment research in the Indian market aimed at

generating quick investment ideas. Its research team is rated as one of the best in

the industry. It has group interest in investment banking, institutional broking and

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 retail broking. It is an integrated equity solution provider. It commands good

market share of the institutional business.

With a legacy of more than 80 years in the stock markets, the SSKI group

ventured into institutional broking and corporate finance over a decade ago.

Presently SSKI is one of the leading players in institutional broking and corporate

finance activities. The content-rich and research oriented portal has stood out

among its contemporaries because of its steadfast dedication to offering customers

best-of-breed technology and superior market information. The objective has been

to let customers make informed decisions and to simplify the process of investing

in stocks.

1.2 Objectives

i. To work & gain knowledge of real business environment & corporate culture.

ii. To analyze application of management concepts in real business situations.

iii. To develop the skills of data collection, data presentation, data analysis and data

interpretation etc. of the organization.

iv. To enhance analytical abilities.

v. Study of Retail Investor preference in Boom and Recession.

3
1.3 Source Of Data Collection

The data used in this report have been derived from the both primary and secondary.

The primary data was obtained from staff of the organization to grab the information

which was not available in the office documents of the company with the intent to

comprehend the objective of the project.

The secondary data was obtained from the company’s website i.e.

www.sharekhan.com and various other sources that include internet and newspapers.

1.4 Profile Of The Organization

Sharekhan is one of the top retail brokerage houses in India with a strong online

trading platform. The company provides equity based products. It has one of the

largest networks in the country and India’s premier online trading portal

www.sharekhan.com. With their research expertise, customer commitment and

superior technology, they provide investors with end-to-end solutions in

investments. They provide trade execution services through multiple channels - an

Internet platform, telephone and retail outlets.

It is the retail broking arm of the Mumbai- based SSKI Group. With a legacy of

more than 80 years in the stock markets, the SSKI group ventured into

institutional broking and corporate finance over a decade ago. Presently SSKI is

one of the leading players in institutional broking and corporate finance activities.

4
Name Of The Organisation Sharekhan Ltd.

Address 201 & 202, 2nd Floor, Vardhman Prachi

Plaza, 3 Community Centre, Rohini Sector 8, Delhi –

110085

Website http:/www.sharekhan.com

Contact No 022-611511111,61150000

1800227050,1800227500(toll free)

Head Office Lodha iThink Techno Campus, 10th Floor, Beta

Building, Opp. Kanjurmarg Station, Kanjurmarg

(East), Mumbai - 400 042

Table No. 1.1 Profile of the Organisation

Nature Of The Organisation

Share Khan is a Retail broking company and it is registered in Central Depository Services

Limited (CDSL) and National Security Depository Limited (NSDL). Sharekhan as a SEBI

registered intermediary is mandated to follow the rules and regulations circulars of the

exchanges. Share Khan provides online trading services to their clients through their

software “Trade Tiger”. Sharekhan Limited operates as a subsidiary of BNP Paribas SA.

5
Known for its jargon-free investor friendly language and high quality research, the site

has a registered base of over two lakh customers. The content-rich and research oriented

portal has stood out among its contemporaries because of its steadfast dedication to

offering customers best-of-breed technology and superior market information. The

objective has been to let customers make informed decisions and to simplify the process

of investing in stocks.

Share khan has always believed in investing in technology to build its business. The

company has used some of the best-known names in the IT industry, like Sun

Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,

VeriSign Financial Technologies India Ltd, Spider Software Pvt. Ltd. to build its trading

engine and content. Previously the Morakhiya family holded a majority stake in the

company but now a world famous brand CITI GROUP has taken a majority stake in the

company.

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Process Flow Chart Of The Company.

Fig. No. 1.1 Process Flow Chart

7
1.5 Vision & Mission

1.5.1 Vision

To be the best retail brokering Brand in the retail business of stock market.

To open more branches across India.

1.5.2 Mission

To educate and empower the individual investor to make better investment decisions

through quality advice and superior service.

1.6 Product Range

The different types of products which are offered by SHAREKHAN are:-

Fig. No. 1.2 Product Range

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Equity:

In finance, equity trading is the buying and selling of company stock shares. Equity

trading can be performed by the owner of the shares or by an agent authorized to buy and

sell on behalf of the share's owner. Proprietary trading is buying and selling for the

trader's own profit or loss. In this case, the principal is the owner of the shares. Agency

trading is buying and selling by an agent, usually a stockbroker, on behalf of a client.

Agents are paid a commission for performing the trade.

Over the past 15 years with the popularity of the internet and discount brokerage firms, it has

become increasingly luring for the average investor to partake in their own financial planning

and direction of their future. Although trading can be incredibly stressful and dangerous

financially, many people have made it their profession in place of a 9 to 5 job. Individuals

that Pursue this non-mainstream career usually will have a knack for technical analysis,

money management, tape reading and trader's psychology as well as enjoy working in a fast

paced competitive environment.

A) Types Of Trading In Equity:

I. Intraday (Day Trading)

Day trading is speculation in securities, specifically buying and selling financial

instruments within the same trading day, such that all positions are usually closed before

the market close for the trading day. Traders who participate in day trading are called

active traders or day traders. Traders who trade in this capacity with the motive of profit,

assume the capital markets role of speculator. Some of the more commonly day-traded

9
 financial instruments are stocks, stock options, currencies, and a host of futures contracts

such as equity index futures, interest rate futures, and commodity futures. Day trading

used to be an activity that was exclusive to financial firms and professional speculators.

Many day traders are bank or investment firm employees working as specialists in equity

investment and fund management. However, with the advent of electronic trading and

margin trading, day trading has become increasingly popular among at-home traders.

Delivery Trading

Delivery based trading means that you actually get the stocks you buy and then can sell

whenever you want. Delivery trading is one of the type of investment in which the buyer

buy the share and wait for the some time when share price goes up then the investor sell

the particular share and make the profit.

Derivatives:

The derivatives market is the financial market for derivatives, financial instruments like

futures contracts or options, which are derived from other forms of assets. The market

can be divided into two - exchange-traded derivatives and over-the-counter derivatives.

The legal nature of these products is very different as well as the way they are traded,

though many market participants are active in both.

A) Types Of Derivatives:

i. Forwards

A forward contract is a customized contract between two entities, where settlement

takes place on a specific date in the future at today’s pre-agreed price.

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ii. Warrants

Options generally have lives of up to one year. The majority of options traded on

exchanges have maximum maturity of nine months. Longer dated options are called

Warrants and are generally traded over-the counter.

iii. Future

A futures contract is an agreement between two parties to buy or sell an asset at a

certain time in the future at a certain price. Futures contracts are special types of

forward contracts in the sense that the former are standardized exchange-traded

contracts, such as futures of the Nifty index.

iv. Option

An Option is a contract which gives the right, but not an obligation, to buy or sell the

underlying at a stated date and at a stated price. While a buyer of an option pays the

premium and buys the right to exercise his option, the writer of an option is the one

who receives the option premium and therefore obliged to sell/buy the asset if the

buyer exercises it on him. Options are of two types - Calls and Puts options:

Call

Calls give the buyer the right but not the obligation to buy a given quantity of the underlying

asset, at a given price on or before a given future date.

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Put

Puts give the buyer the right, but not the obligation to sell a given quantity of underlying

asset at a given price on or before a given future date.

Presently, at NSE futures and options are traded on the Nifty, CNX IT, BANK Nifty and 116

single stocks.

Depository Services:

A Depository is like a bank where in the deposits are securities (i.e. shares, debenture, bonds,

govt. securities units, etc.) in electronic form. Besides holding securities, a depository also

provides service related to transaction in securities. Depository provides its services to

investors through its agents called depository participants. Share khan is one of the

depositories.

Online Services:

SPEEDTRADE is an internet-based software application that enables you to buy and sell

in an instant. It is ideal for active traders who transact frequently during day’s session to

capitalize on intra-day price movement.

Classic Account

In classic account it is very simple to trade. Their customer has first to open a demat

account with the share khan and after opening an account can login to the sharekhan.com

and in the classic account whatever company information the clients want, he has to type

the company name or code and he will get all the necessary information about that

12
company and he can buy and sell the company stock or share but in the classic account

the client can access only one script at a time.

Commodity Trading:

Commodities are agreements to buy and sell virtually anything except for some reasons.

The primary commodities that are traded are oil, gold and agricultural products. Share

khan provides the facility to trade in commodities through share khan Pvt. Ltd. Share

khan provides commodities trading facilities on both the exchange:-

Multi commodity exchange of India, Mumbai (MCX)

National commodity and derivative exchange (NCDEX)

Dial-N-Trade:

Along with enabling access for your trade online, the classic and speed trade account also

gives you our Dial-n-Trade services. With this service, all you have to do is dial our

dedicated phone lines 1-800-22-7500, 3970-7500 and separate number for Speed trade

Clients i.e. 1800-22-7800.

Portfolio Management System:

Share khan provides the facility of PMS which helps customer to sit back, relax and see

their money grow without worrying about the ups and downs at the stock market.

Customer can ask to share khan specialists and they’ll help for choosing a PMS plan that

suits customer.

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Fundamental Research:

Research and in-depth knowledge of markets provide better analysis than speculations or

reacting to rumors.

Share khan research team of dedicated analysis is therefore, constantly at work to track

performance and trends and determine the winners

Technical Research:

Punter calls: - Daily view on how the market and major indices are expected to trade for

the day the closest support and resistance levels are provided to help traders take

decisions.

Smart charts: - It presents the best positional trading calls in the market.

Derivative calls: - Toolkit for derivative traders.

1.7 Size Of The Organisation

(a) In terms of Turnover:-

Main source of income of Sharekhan ltd is brokerage. It is a well-established firm

in the corporate world. Day by day it is growing and planning to expand in other

countries also. The overall sales volume is generated from national to

international level. Sharekhan on a standalone basis booked a net profit after tax

of Rs.1006 million on a total operating income of Rs. 4405 million in FY 2015 as

compared with a net profit of 1823 million on a total operating income of Rs.

6272 million in FY 2016.

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(b) In terms of Manpower:-

FY 2014-15 25 employees on roll with 1000 agents.

FY 2015-16 40 employees on roll with 2000 agents.

Table No. 1.2 Size of Manpower

45
40
35
30
25
20 40
15
25
10
5
0
2014-15 2015-16

employees

Fig. No. 1.3

Share khan had 25 employees on roll over 1000 agents while this manpower ratio

has been increased in financial year 2015-16

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1.8 Organisational Structure

CEO
Directors
Vice President
Territory Manager
Assistant Sales Manager
Business Development Executives
Senior Sales Executives
Sales Executives
Super Trainees
Trainees

Fig No. 1.4

Organization structure of a Company is duly followed in a systematic way. From CEO of

organization to other department wise head. All follow a prompt structure to maintain an

operational working of share khan. There are around 10 investment advisors with 1

assistant manager. Therefore each head of department is clear of their role which leads to

less ambiguity.

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1.9 Market Share And Position Of The Company

In terms of market share, Sharekhan is an unlisted public company comes under company

limited by shares category. That means share market value does not exist. But in terms of

volume wise share in the market. The company commands 6 per cent market share volume in

the 25-million strong online customer segment in the industry. In terms of cash market

volumes, it has a market share of 4.2 per cent. In the second wave of digitalization, majority

of Sharekhan’s business and growth will come from mobiles. Currently, mobile-based

transactions form 12 per cent of its business. In terms of position, Sharekhan is one of the top

retail brokerage houses in India with its strong presence over the web. Sharekhan is one of

India’s leading retail stock broking house with a physical presence in over 527 cities of India

through 2,451 “Share Shops” and an online presence through www.Sharekhan.com, one of

India’s premier online trading destination, Sharekhan reaches out to over 20 lakhs investors

like no one else. Sharekhan is the third largest retail brokerage firm in India after ICICI

Direct and HDFC Securities. Today Sharekhan is one of the most well-known online brands

in India and has been constantly profitable over the past 17 years.

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1.10 Present Leadership

NAME DESIGNATION

Mr. Amit Garg Assistant Manager

Mr. Rajesh Antil Assistant Manager

Mr. Sumit Goel Assistant Manager

Ms. Manju Sales Coordinator

Mr. Raman Goel Territory Manager

Table No. 1.3 Leadership

1.11 Organisation Culture

Task/ Achievement Orientation

At Share khan the organizational culture is such that it is employee friendly, but

has been also made keeping the end consumer in mind. Hierarchal structure is

followed in the organization so that work consistency would be maintained with

the consistent level of output. Share khan still retains the crown for the lowest

complaints ratio and top quartile persistency in the industry. Apart from top

quartile persistency lowest complaints ratio have also been the great impact on the

growth of the industry.

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 People Orientation

Company is building a friendlier and approachable brand not only for its external

customers, but also for its internal audiences. To be future ready, the company

believes in transforming itself into a millennial-centric organization. That is why

in the company, the work culture is built keeping the young employees in mind.

So the next generation of leaders can live their life just the way they want to. Such

orientation in the culture of workplace, build a trust and peace of work among the

employees. Such environment builds a willingness to work with great spirit and

motivation so that their personal and professional objectives could be achieved.

Team Orientation

From assignment of work to role clarity, everyone at Share khan is so cleared

about their job and work that no error prone activities occurred. Organization is

buildup of dynamic culture that automatically leads to better performance of work

and activities. Manager quartly conduct a meeting so that new creative ideas from

the employees could be taken so that more growth could be expected in the future.

All members follow the instruction of their manager in proper way. If any member

feels difficulty in their work other members help that person. If we talk about major

conflicts within the organization it is because of some policy or interdependency in

the company. Every employee has to follow ethics, company policies and procedure.

Rule Orientation

A systematic approach is conducted in the organization, proper rule and

regulations has been made by the CEO and director of the company. Moreover no

19
bureaucratic environment is seen in the workplace. Proper delegation of authority

is given to employees so that employees also feel a part of the company and work

with great enthusiasm.

Competition Orientation

Company will invest in technological solutions to improve front-end sales,

distribution and customer service and enhance back-end operational efficiency

and expense management. Apart from working on digital products, company

would also continue to strengthen their IT framework. Under the Sharekhan

portfolio management services, the funds of the Client will be managed by a team of

experienced professionals. The Portfolio Manager's investment philosophy underlines

maximizing the risk adjusted returns depending on the client's risk tolerance. In order

to achieve the same, a disciplined investment approach with adequate risk controls

has been adopted. Advantages of PMS services are that they can hold fewer stocks

and be more aggressive in their stances or sectors. The second advantage of PMS is

the transparent fees structure.

Openness Orientation

Company followed a vertical flow of communication in the organization between

the superior and subordinates. The purpose of this communication is to provide

necessary orders, instructions, and directives to the subordinate in downward

direction and receiving suggestions, opinion and feedback from the subordinates

in the upward direction. Company also conducts an Annual General Meeting once

in a financial year.

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 Chapter-2

Environmental Analysis

Fig. No. 2.1 SWOT

2.1 Internal Factors Effecting Share Khan

2.1.1 Strengths

2.1.1.Market Share

Sharekhan is India's 3rd largest stock broking house. Sharekhan provides

brokerage services through its online trading website Sharekhan.com. Sharekhan

has seen incredible growth over last 10+ years though it's very successful online

trading platform and the chain of franchises located in almost every part of India.

Sharekhan also has international presence in the UAE and Oman.

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2.1.2 Market Leadership

Company’s product line is quite flexible in the sense that there is a product for

every kind of investors. Also all the products cover all the loopholes of all the

products offered by the other competitors like low cost, user-friendly online

trading services etc. Beside this, company is focusing on to build its branches to

more states of India so that they could able to capture larger market leadership

with that of competitors.

2.1.3 Marketing Strategy

There are many techniques which are used by sharekhan to promote its services

which are given below:

i. Internet is used for promoting sharekhan. It uses portals for spreading

awareness about product and services of the company. There is a form

type pop-up occur on screen of the user that should be filled by user.

ii. E-mails are widely used for promotion. E-mails contain information about

the product and services provided by the company and how can a

interested person can contact sharekhan for opening Demat Account with

sharekhan.

iii. Canopy method is one of the method to aware the public about the product

and services and to collect the data to accomplish the target. Sharekhan

conduct Canopy, at various places where people mostly go or get

together such as malls, garden, banks and their ATMs and other fabulous

places.

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 iv. The company uses the tele-calling/ phone calling to reach the customer

which is interested. This is the most important technique to save time and

giving demo of the company’s product through making call in order to

know the customer interest towards the product. This is the strategy with

which one can motivate customer to go for the product and etc.

2.1.4 Organisation Culture And Climate

At share khan the organization culture is employee friendly but has been also

made keeping the end consumer in mind. Variety of compensation and benefits

provided to the employees along with attractive events and training that are

organized for making feel employees as a part of a company.

2.2 Weakness

2.2.1 Availability

Non Availabilty of sharekhan in Rural areas. Although Sharekhan has a lot of

branches in India but it has less reach to the rural areas.

2.2.2 Customer Satisfaction

As far as customer satisfaction goes Sharekhan has to tighten their socks. Many

broking houses catering to heavy investors or small segment of the market can

afford to and does provide relationship managers for their customers, who can

understand the trading needs of individual customers and advise accordingly.

However, a broking house like Sharekhan, which caters to the mass segment, is in

no position to provide relationship managers for individual customers.

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2.2.3 Competition From Banks

Most of the banks due to good branding have the faith of the customers of their

banking database. So they enjoy the liberty of huge database and customers find it

more reliable to trade their rather than with an unknown broker. Also banks like

HDFC Bank and ICICI Bank have the advantage of linking the trading accounts

of their customers to saving accounts. This makes trading easier, and at the same

time a trader withdraws exactly as much money from his account as is needed to

complete the trade. Similarly sales proceeds are credited directly to saving

account.

2.2.4 Organisational Culture And Climate

Though company followed a dynamic culture in an organization still its poor

employee turnover and less number of spaces for workers in an organization lead

to bad impact of an organization culture in front of investors. Some thoughts

among the employees may get clash due to a less space in working environment

of a company which automatically lead to some conflicts and disputes at the

organization.

24
2.3 Best Practices/ Usps That The Company Follows

2.3.1 Practices Adopted In Finance

Share khan has special accounts department for separate calculation of pay-in and

pay-out of funds according to the client’s Profit/Loss. Finance management is

done at Share khan by managing the stocks in the demat accounts and funds in the

margin & trading.

DP (Depository Participation) is treated as a separate department at Sharekhan

and is covered in the back office management in the organization structure. In

simple words, DP means providing the facility to the clients for managing the

stock bought/sold by them. Nowadays, as banks are becoming fast for E-Fund

Transfer (EFT) and Phone-banking is getting more popularity, SEBI is thinking to

make the financial market of India to have a maximum speed of transactions just

like the other nations in the world.

The main aim for accounts management is that the clients must have a credit or no

debit on the next day. The DP services provided by Sharekhan are falling under

the regulation of NSDL (National Securities Depository Limited) and CDSL

(Central Depository Services Limited), organizations governed by SEBI to

regulate the depository services in the interest of the investors. In this way, the

finance function is carried out at Sharekhan by following the guidelines given by

SEBI.

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2.3.2 Practices Adopted In Human Resource Department

Human resource is the crucial resource that a company can use to grow with the

work of the employees. HRM activities at Sharekhan start from induction to the

specific job training and are done by H/O at Mumbai. H/O takes a written test and

selection interview for filling up vacancies in branches but the recruitment is done

by the branch itself and the selection is performed by H/O from the screened

applicants.

The corporate culture at Sharekhan is maintained in such a way that the people are

helpful to each other and eager to get the work done as soon as possible with a co-

operative thinking. An additional Rs.10000 is provided for each outlet of

Sharekhan to motivate its employees by performance appraisal and also the heads

of each departments and branches has to go through a 3606 performance appraisal

for maintaining the consistency in growth of the company. In the end we can say

that the human resource of Sharekhan is a best managed and used for the

continuous growth and development of the company for its future plans to be

achieved time-to-time.

2.3.3 Practices Adopted In Operation Sector

The main aim of the operations strategy at Share khan is that the efficiency of the

organization and high level of it is desired outputs with low costs, i.e.,

productivity with effectiveness. Quality should be high and consistent in

delivering services. Flexibility is related with fast introduction of new services

26
and providing a wide range to select an option to the customer. Share khan plans

the strategies to get a working plan from it and the planning is done from top-to-

bottom level, i.e., national level, regional level, divisional level and the branch

level planning is carried out by the managers. In this way, the Operations are

managed with the best efforts in a direction that is to facilitate future plans by

achieving success in time and create milestones in the industry by driving the

company with excellence.

2.3.4 Practices Adopted In Marketing

Share khan designs the services to cover the specific target customer and

positioning the products in the mind of customers. The excellent marketing mix

strategy 4ps product, price, place, promotion and 3ps: People, process, physical

are adopted to manage the customer needs and deliver the maximum value to

customer. Share khan is organizing seminars and presentations for the clients. In

this way, the marketing is managed with the best efforts.

2.3.5 Practices Adopted In Information Technology

Share khan provides its own unique software named “trade tiger”. It is user

friendly software and various facility technical researches, daily call up dates,

funds transfers etc. are provided. With its online trading account investor can buy

and sell share in the instant from PC with having internet connection. Investor can

get access to its powerful online trading tools that will help to take complete

control over investment in share

27
2.4 External Factors Effecting Share Khan

PESTEL analysis stands for “political, economic, social, Technological, environment and

legal analysis” and describes a framework of micro –environment factor use in the

environment scanning components of strategies management.

Environ
-mental
factor
Technolo
Legal
-gical
factors
factors

PESTEL

Political Social
factors factors

Economi
c factors

Fig. No. 2.2 PESTEL

2.4.1 Political Environment

a) When there was change in Government in 2014 stock market shown tremendous

growth due to which demand for broking companies has also increased.

b) After implementation of GST, Service Tax on Brokerage has increased from 15%

to 18%.

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2.4.2 Economic Environment

When Government announced about Demonetization there was lack of money in

people’s hand which cause less demand towards stock market and as a result share khan

had faced difficulty in the industry.

a) SEBI is a regulatory organization.

b) Fluctuation of Investment climate because of demand and supply factors in the

stock market.

2.4.3 Social Environment

a) Perception regarding stock market of people very much influences the business of

the company. People think that stock market is gambling but this thinking is

orthodox.

b) People can invest their money for investment purpose in Mutual Funds also.

c) People who want to purchase gold in future can also invest their money in

commodity market.

2.4.4 Technological Environment

a) After launching of online trading facility experience of trading has been changed

completely.

b) Investors can transfer their money from bank to Trading A/c within a min.

c) Investors can buy as well as sell any stock within a min.

29
 d) Investors can do biding as per their preference.

e) New account can be open within a day through aadhar card.

f) Research can be conduct with the help of charts available on Trade Tiger.

2.4.5 Environmental Factors

Less Environment harm due to online based business strategy.

2.4.6 Legal Environment

1. According to SEBI maximum brokerage allowed is 0.10% on INTRADAY and

0.50% on DELIVERY.

2. There are some taxes which are applicable on transaction which are given below :

a) Service Tax – 18% on Brokerage

b) Turnover Tax / Transaction Charges – 0.0027% on volume

c) SEBI Turnover Fees – 0.0002% on volume

d) Stamp Duty –

i) 0.0002% on volume for INTRADAY

ii) 0.01% on volume for DELIVERY

30
Opportunities

The external environment analysis may reveal certain new opportunities for profit and

growth.

Ever-increasing market

After the NSE brought the screen based trading system stock markets are now more

secured which has attracted lot of retail investors and the demand is increasing day by

day. This has resulted in improved liquidity and heavy volumes on transactions. Share

khan is one of the early entrants here. Share khan has been a mega player and is known

for being a mover of stocks.

Improving Technology

In country like India technology is always improving which gives the company a chance

to keep on improving their product with time whereas for the small players like local

brokers it will be difficult to keep the same pace as the changing technology. Also with

SEBI lying down some strict guidelines small brokers are finding it harder to retain the

customers with no research department and small capital.

Unfulfilled needs of the customers

With so many competitors offering their products in the market but no one is able to

completely satisfy the customers. Some have the problem of lack of information or some

were scared of volatility of the stock markets. Share khan has the opportunity to tap this

unsatisfied set of customers and to make hold in the market. The Internet serves to break

31
all barriers to information, as it offers an extremely hassle-free investing platform. And,

Share khan hopes to fully utilize and capitalize on this platform. This original idea by

Share khan itself was born out of the consumer's need for a more transparent, easy to

understand and convenient option of investing in stocks.

Education Level

The education level in the country is improving year after year as far as technology goes.

With that the understanding of the stock market is also increasing and a lot of retail

investors are steeping in the markets which are being shown by increasing volumes,

transactions and indices.

32
Threats

New Competitors

A lot of new competitors are trying to enter the market in this bullish run to taste the

flavor of this cherry. This is creating a lot of competition for large players like Share

khan and it is creating little confusion in the minds of the customers about the services

provided by the broker. Also many banking firms are entering into the market with huge

investment. Competitors like ICICI, Kotak, HDFC etc. are posing a lot of threats to the

company.

Technology based business

Online trading is totally based on the technology, which is quite complex. Technology is

a kind of threat because unless until it is working properly it is good but Internet is not

that safe. Though a lot of cyber laws are being made but not yet executed.

33
 Chapter-3

Data Presentation & Analysis

3.1 Functional Analysis – Operations

3.1.1 Operational Systems And Processes

As share khan is a broking company, it does not produce products it only

provides services to their clients. So, there is no raw material or processing of

that material. So, the outcome of the company is Demat Accounts which is

opened in the company. Number of Demat Accounts shows number of clients

with the company. There are around 14 lacs customer of share khan who have

opened their Demat Accounts with share khan.

Input for the company is need of the customer and process is Account opening

process. For opening a Demat Account with share khan a client needs to

submit some documents like PAN card photocopy, bank proof (cheque or pass

book front page ) , address proof ( aadhar card/ electricity bill/ water bill etc.),

one photo.

After taking documents from client branch scan those documents and send

them electronically to NSDL. NSDL checks the authenticity of the client and

approve after certain verification. Then share khan open up a new Account of

client and give login and password to the client.

34
 3.1.2 Quality

Quality of service is assured by continuous efforts of the company. There are many

ways in which company take care of quality of services which are given below:

a. Company take feedback from the clients on a regular intervals

b. Trade Tiger is the best application today in India because it consist of all

necessary tools which is required by trader for trading, it has all past data of

all companies etc.

c. Early action on client’s complaint. Company solve client’s problems as early

as possible so that they feel satisfaction.

d. Operation strategies are implemented in Share khan the main points of

Consideration Efficiency, Dependency, Quality and Flexibility.

3.2 Functional Analysis – Marketing

The main aim of marketing activities at Share khan is that the customer should get

enough guidance to join the company and how he can get the best service than any other

stockbroker. There is an officer for handling the marketing activities followed by two

executives and it is not limited to them but the other people are also having some

responsibilities to increase the no. of clients and retain them by providing them the

services needed by them. There are many services those are designed such that the

specific target segments of the customers are covered and the products are positioned in

the minds of customers as the best one in India.

35
3.2.1 Product

Share khan’s products are basically divided into online and offline products.

Off-Line Trading Account:

The Off-Line account is trading account through which one can buy and sell

through his/her telephone or by personal visit at share khan shop. This a/c is for

those who are not comfortable with computer and want to trade.

On-Line Trading Account:

The Online trading facilities provided by Share khan is basically divided into two

types of accounts i.e. Classic Account and Speed Trade.

Classic Account

The classic account is a Share khan online trading account through which

one can buy and sell shares through our website www.sharekhan.com in

an instant. Along with enabling access for you to trade online, the classic

account also gives you our Dial-n-Trade service. With this service, all you

have to do is dial 1- 600-22-7050 to buy and sell shares using your phone.

Features of the CLASSIC ACCOUNT that enable you to invest

effortlessly-

i. Online trading account for investing in Equities and Derivatives

via sharekhan.com .

ii. Integration of: Online trading + Bank + Demat account.

36
 iii. Instant cash transfer facility against purchase & sale of shares.

iv. Reasonable transaction charges.

v. Instant order and trade confirmation by e-mail.

vi. Streaming quotes.

vii. Personalized market watch.

viii. Single screen interface for cash, derivatives and more.

ix. Provision to enter price trigger and view the same online in market

watch.

Speed Trade

Speed Trade is an internet-based software application that enables you to

buy and sell shares in an instant. It’s ideal for active traders and jobbers

who transact frequently during day's trading session to capitalize on intra-

day price movements. Speed Trade also provides the features of and

functionality of trading in derivatives from the same single-screen

interface.

Features of Speed trade that enables you to trade effortlessly-

i. Instant order Execution & Confirmation

ii. Single screen trading terminal

iii. Real-time streaming quotes, tic-by-tic charts

iv. Market summary (most traded scrip, highest value)

v. Hot keys similar to a broker’s terminal

vi. Alerts and reminders

vii. Back-up facility to place trades on Direct Phone line

37
Segmentation

Segmenting is done on the basis of Demographic and Psychographic. Market is

segmented on the basis of Age, Income level, Occupation etc. Each one of the

characteristics is given below:

Age:

According to the age market is segmented. As investor must be adult and must

have PAN card for holding Demat Account age is one of the basis of

segmentation. Person who is between 18 to 30 years can opt for long term

investment plan in Mutual funds for achieving their goals.

Person who is above 30 can also opt Mutual Funds for retirement as the market

risk less as compare to other instruments and SIP is best scheme for regular

investment for retirement purpose.

Income Level:

Income is most important factor for an investor as according to the income level

he or she can plan his or her portfolio. Persons who come under large income

group can invest their money easily in stock market because for trading purpose

large amount of money is required to buy securities. And they can invest their

money for investment purpose in stocks also.

Middle Income group can be segmented as they can invest their money in Mutual

Fund scheme of SIP because this scheme allows monthly investment at lower

38
 amount like 100 rupees or 500 rupees etc. Lower income group people can also

go for SIP scheme of Mutual funds.

Occupation:

People engage in different occupations have different pattern of investment due to

requirement of investment in stock market. Generally people who are engage in

some kind of job think about secondary source of income so, they usually see

interested to invest in stock market as the returns are much higher than fixed

deposits with banks and post office and time period is also less.

3.2.3 Pricing

Prices for the trading products are as given below:

i. Classic Rs.750 (onetime) - Demat free for 1 year (other facilities

included).

ii. Speed Trade Rs.1000 (brokerage deposit of 3000/quarter) - Online trading

on your pc with Demat free and other facilities.

iii. Speed Trade plus Rs.1500 (brokerage deposit of 6000/half) - Facilities as

per Speed Trade with F&O trading.

iv. Streamer Rs.2000/quarter - Facility for viewing the market online 25.

v.

39
3.2.4 Promotion

Promotional activities at Share khan are done by web, e-mails and personal

contact. Share khan is also organizing seminars and presentations and promotes

its services to the clients. It is spending Rs.20000 per month for promotional

activities. As explained earlier, Share khan is having the largest distribution chain

of retail outlets of share shops. And it can be seen also because there are 180

share shops in 90 cities, which gives the maximum awareness to Share khan. The

distribution of Share khan is also proved by its turnover and awareness among the

investors in the stock market.

3.2.5 DISTRIBUTION

As share khan is not a manufacturing or trading company it do not distribute

goods but it has many branches across the country. Branches provides all services

to their clients which they want like open up of Demat Account, Closing of

Account, submission of required documents, consultation regarding stocks for

trading purpose as well as for investment purpose etc. Share khan has a network

branches and franchise offices in over 575 cities across India. Share khan also has

34 Online Trading Academy centers to guide retail investors.

Number of Share khan Branches: 153

Number of Share khan Franchisee: 2,229

40
Share khan branches and franchisee covers almost every corner of India ranging

from metro cities to small towns.

Following are the states in which sharekhan have branches:

Delhi, Maharashtra, Haryana, Madhya Pradesh, Tamil Nadu, Karnataka

Following are the branches which are in Delhi NCR:

Lajpat Nagar, Rohini, Vaishali, Preet vihar, Dwarka, Uttam Nagar, Vikaspuri,

Janakpuri, East Sagarpur, Paschim Vihar

3.2.6. Customer Relationship Management

CRM is very necessary for any organization for achieving their goals. As

competitors are very high so each and every customer is very crucial for the

organization. And for satisfying existing customers company need to maintain

good relation with the customers. If the customers are satisfied with the services

of the company then they will not switch the company in search of better services

and also refer other people to open their Demat Account with sharekhan.

So company maintains relation with customers in the following ways:

a. Company transfer each client’s Account to that employee whose

responsibility is to take care of the client’s Account. The work of

that employee is to maintain portfolio of allotted customers, solve

the queries of the client etc.

41
 b. Company provide calls of the on the daily basis to the clients so

that they can decide in which stock they have invest.

c. Company take feedback from the clients on regular intervals so

that complaints can be removed as soon as possible.

d. Company wish every client on their birthday which create good

relation with the clients.

3.3 Functional Analysis – Finance

Finance is needed for all the activities like production or services as well as their

distribution. The finance department directly influences all the functions of the other

departments. Also it has to give equal importance to all departments. Share khan has

special accounts department for separate calculation of pay-in and pay-out of funds

according to the client’s Profit/Loss. There are two types of auctions called as Internal

auctions & Market auctions, the internal auctions defines the auctions carried out

between the other shops of Share khan and market auctions are those as which are carried

out in the market.

3.3.1 Net Profit After Tax

Net profit after tax of sharekhan company of 2015 and 2016

Year Profit After Tax (Cr.)

2015 1006

2016 1823

Table No. 3.1 Net Profit After Tax

42
 PROFIT AFTER TAX (IN CRORE)
100%

90%

80%

70%

60%

50% 1006 1823

40%

30%

20%

10%

0%
2015 2016

Figure No. 3.1 Net Profit Tax

Interpretation: Profit after Tax of 2016 is Rs 1823 that indicates the profits of the

sharekhan company increased by Rs 817 cr. during the year 2015 to 2016.

3.3.2 Liquidity Ratio

Liquidity ratios which shows the company’s Liquidity position means how fast a

company can convert its security into cash, for example : current ratio, Quick ratio, cash

ratio etc.

43
3.3.2.1 Current Ratio

Current ratio of the sharekhan company of the year 2015 to 2016

Year Current Assets Current Liabilities Current Ratio

2015 9028 7871 1.14

2016 10869 7116 1.52

Table No. 3.2 Current Ratio

CURRENT RATIO
1.6 1.52

1.4
1.14
1.2
1
0.8
0.6
0.4
0.2
0
2015 2016

Figure No.3.2 Current ratio

Interpretation: Current ratio of 2016 is 1.52 it shows that current asset is over current

liabilities. 2016 Current Ratio indicates that a firm may have a high level of liquidity and

less chance of a cash squeeze & Current Ratio increased from 2015 to 2016. The Figure

no.3.2 which shows the current ratio of the 2015 to 2016 is 1.14 to 1.52 it increases from

44
2015 to 2016 which is showing that current assets increased and current liabilities

decreased this duration.

Current ratio = Total current assets divided by total current liabilities (total current

assets\total current liabilities)

3.3.2.2 QUICK RATIO

Quick ratio of the sharekhan company of year 2015 to 2016

Year Quick Assets Current Liabilities Quick Ratio

2015 6388 7116 0.897

2016 8467 7871 1.075

Table no. 3.3 Quick ratio

QUICK RATIO
1.1 1.075

1.05
1
0.95
0.897
0.9
0.85
0.8
2015 2016

Figure No. 3.3 Quick ratio

45
Interpretation: 2016 Quick ratio is 1.075 it shows that quick asset is over than total

current liabilities. The Figure no.3.3 which shows the quick ratio of the 2015 to 2016 is

0.897 to 1.075. Quick ratio is increasing by 0.178 which is showing that incremental in

the Quick assets of the sharekhan company. The quick ratio of 1.075 of 2016 indicates

that the company can cover 100% of current liabilities by using its current assets and still

they will left with some current assets in their account.

Quick ratio = Quick Assets divided by (Quick Assets\total current liabilities).

3.3.2.3 Cash Ratio

Cash Ratio of the share khan company 2015 to 2016

Year Cash Current Liabilities Cash Ratio

2015 5213 7116 0.73

2016 6303 7871 0.80

Table No.3.4 Cash Ratio

46
 CASH RATIO
0.82
0.8
0.8

0.78

0.76

0.74 0.73

0.72

0.7

0.68
2015 2016

Figure No.3.4 Cash Ratio

Interpretation: The 2016 cash ratio 0.8, which suggests that the firm can only cover

80% of its current liabilities with its cash and short-term marketable securities. The figure

no.3.4 Shows the Cash Ratio of year 2015 to 2016 is 0.73 and 0.80. which is increase by

0.07 and shows increase in liquidity of sharekhan.

Cash ratio = Cash & Bank plus marketable security divided by total current liabilities

(cash & bank+ marketable Securities\ Current liabilities).

3.3.3 Leverage Ratio

Leverage ratio which shows the levered position of the company and effects of it on the

capital structure of the company like: debt equity ratio and total debt ratio.

47
3.3.3.1 Debt Equity Ratio

Debt equity ratio of the share khan company from 2015 to 2016

Year Debt Shareholder Fund Debt Equity Ratio

2015 3393 7845 0.433

2016 3393 9623 0.353

Table no.3.5 Debt Equity Ratio

DEBT EQUITY RATIO

0.5 0.433
0.4 0.353

0.3

0.2

0.1

0
2015 2016

Figure No.3.5 Debt Equity Ratio

Interpretation: A 2016 ratio of 0.353 indicates that the firm able to settle their all debt &

still left with shareholder fund for future events. The figure no.3.5 which shows the debt

equity ratio of sharekhan company year 2015 is 0.433 and year 2016 is 0.353 and it is

decreasing debt by 0.08. This means that shareholder fund of the sharekhan company

increased from 2015 to 2016.

Debt Equity Ratio = Total long term debts divided by shareholder fund (Total long term

debts/ shareholder fund)

48
3.3.3.2 Total Assets To Debt Ratio

Total debt ratio of the sharekhan company from 2015 to 2016

Year Total Assets Long Term Debt Debt Equity Ratio

2015 19115 3393 5.63

2016 20134 3393 5.94

Table No.3.6 Total Debt Ratio

TOTAL DEBT RATIO

6
5.94
5.95
5.9
5.85
5.8
5.75
5.7
5.63
5.65
5.6
5.55
5.5
5.45
2015 2016

Figure no:3.6 Total Debt Ratio

Interpretation: Total Debt Ratio of 2016 is 5.94 that means Sharekhan have ability to

pay off its liabilities with its assets. The figure No. 3.6 which shows the total debt ratio

from year 2015 is 5.63 and year 2016 is 5.94 and it is increased total assets by 0.31.

Total Debt Ratio = total debt is divide by the total assets (total debt/total assets).

49
3.3.4 Properietary Ratio

Year Shareholder Fund Total Assets Properietary Ratio

2015 7845 19115 0.478

2016 9623 20134 0.411

Table No.3.7 Proprietary ratio

PROPERIETARY RATIO
0.5
0.478%
0.48

0.46

0.44

0.42 0.411%
0.4

0.38

0.36
2015 2016

Figure No.3.7 Proprietary ratio

Interpretation

The proprietary ratio establishes the relationship between shareholders funds to total

assets. It determines the long-term solvency of the firm. This ratio indicates the extent to

which the assets of the company can be lost without affecting the interest of the company.

There is no increase in the capital from the year2015. The share holder’s funds include

50
capital and reserves and surplus. The reserves and surplus is increased due to the increase

in balance in profit and loss account, which is caused by the increase of income from

services. Total assets, includes fixed and current assets. The fixed assets are reduced

because of the depreciation and there are no major increments in fixed assets

3.3.5 Net Profit Ratio

Net profit ratio of the sharekhan company from 2015 to 2016

Year Net Profit After Tax Total Revenue Net Profit Ratio

2015 1006 4597 21.88

2016 1823 6532 27.90

Table No.3.8 Net profit ratio

NET PROFIT RATIO

30.00% 27.90%

25.00%
21.88%

20.00%

15.00%

10.00%

5.00%

0.00%
2015 2016

Figure No.3.8 Net profit ratio

51
Interpretation: Net Profit Ratio of 2016 is 27.90% that suggests that for every 1 of

revenue generated by the sharekhan, 0.2790 is created for the shareholders. The figure

no.3.8 which shows the net profit of the sharekhan company from year 2015 is 21.88%

and year 2016 is 6.02%. This means that the revenue of sharekhan company increased

and other expenses decreased by decreasing ratio.

Net profit ratio = Net profit after tax is divided by the net revenue and multiply by

hundred

3.4 For Functional Analysis – HRM

3.4.1 Size And Structure Of Human Capital

i. Total number of employees is above 3500 across the country and in Rohini

branch it has around 40 employees

ii. Recruitment process depends upon the requirement of man power of the

company. Generally there are 11 to 13 members in a team of a territory

manager. And a territory manager cannot appoint extra employee because for

hiring an employee permission of management is required. When

management feels that there is a requirement of further manpower it give

instructions to the manager for recruitment of further employees Company

use both type of source of recruitment internal as well as external. In internal

source company gives a chance to the existing employees for higher position

then go to external source.

52
iii. In internal source of recruitment company take references of existing

employees. In external source of recruitment company go to college campus

and hire new candidates for particular field.

iv. Company conduct interviews for hiring new candidates in the premises of

the company also.

v. Company give advertisement about the vacancies on the web site of the

sharekhan as well as on the other portals also.

3.4.2 Training Systems

a) On the job training process can be seen in this organization. As marketing

is an ongoing process so to pitch the customer employee need some sort of

training. For this they provide assistance to that employee he is guided by

experienced person of the organization i.e. manager.

b) Education about the whole market and market instruments is given by the

manager to the employees so that they can serve their clients efficiently.

c) Courses like IGNITE is conducted for those who are willing to boost their

career. In this course person understands how market moves, after doing

this course person is able to read market with help of candlestick charts and

other tools. This course helps a person in research and analytical reviews of

any company and this course helps in trading as well as for investment

purpose

53
 3.4.3 Career Development

a) Mostly sales executive jobs are available which are target based and

employee need to accomplish their targets on monthly basis. 10 to 15

accounts are required to be opened by an sales executive on a monthly

basis, if any employee open more accounts then their targets than he is

awarded with commission.

b) Promotion is given to those employees who are best performers. After

promotion target of that person also get increased with the income.

c) Job rotation is normal in this field. Employee may be required to shift from

one branch to another branch and even from department to another.

d) Courses like IGNITE are conducted for those who are willing to boost their

career. In this course person understands how market moves, after doing

this course person is able to read market with help of candlestick charts and

other tools. This course helps a person in research and analytical reviews of

any company and this course helps in trading as well as for investment

purpose.

3.4.4 Performance Appraisal And Recognition Systems

a) Company do performance appraisal by Accounts opened by the employee.

If the employee is accomplishing his targets in time then he is awarded

otherwise he have leave his job.

54
 b) Feedback from clients is one of the methods which is used by the company

to appraise the performance of the employee. Positive feedback upgrade the

level of employee in terms of goodwill and negative feedback degrade the

level of employee.

c) If an employee opens account more than the target given to him then he is

awarded with commission and continuous performance leads to promotion

also.

3.4.5 Compensation Management

a) Salary of a sales executive is around Rs. 15,000 to Rs. 20,000 per month and

commission as per the performance.

b) Salary of a Territory Manager is around Rs. 40,000 to Rs. 45,000 per month

and other benefits like PF etc. also.

3.4.6 Facilities And Employee Welfare

a) Facilities is also provided to the employees like canteen, chairs are

comfortable, tablets are provided to them for faster work.

b) Separate room is provided for interns so that they can work effectively and

work of other employee does not compromise.

c) Other facilities are also provided to the employees like sick leave etc. In

case where employee get ill and need rest company provide sick leave to

the employees.

55
 CHAPTER – 4

Summary & Conclusions

4.1 Findings / Result

1. Company is a service provider and opens Demat Account of clients. It

provides platform to the clients so that they can buy and sell securities.

2. Company does not produce goods as it provides services to the clients.

It uses direct as well as indirect marketing.

3. Company follows all standards regarding human resource which is

made by the government. It follows recruitment process internal as

well as external, it provides training to the employees, and it gives

facility like sick leave and other leave.

4. Fluctuations are more in secondary market than any other market.

5. There are more speculators than investors.

6. Previously rolling settlement is T+5 days, now it changed to T+2

days.

56
4.2 Lesson Learnt

Sharekhan is one of the leading broking house of the country and it has maintained

this position for a very long period of time. To maintain such efficiency, a company

needs strict norms and the focus to achieve growth despite the various challenges it

faces. Sharekhan faced various challenges in its rise to the top of the market and to

position itself as the leader in the market. The challenges comprised of lack of

confidence among the people regarding stock market. The company now has a

strategy and it focuses on the some areas which will going to help in achieving goals

are awareness of stock market among people, new and required features in the

application i.e. Trade Tiger, brokerage structure.

Sharekhan emphasis on its positive work culture that rewards innovation, breeds

initiative and encourage intelligent and risk taking. It is evolving into a dynamic

knowledge driven organization that inspires employees to collaborates and draw from

a common knowledge pool, while helping the organization leverage diversity

intellectual insights.

During the summer training the researcher acquired all the relevant information about

the company. At present the researchers possess the knowledge about the online

trading which the company provides through its own developed software. The

researcher has understood the reason behind the customer preference towards the

online trading. The researcher knows about:

(a) The features of de-mat account

(b) How to buy and sell the shares online

57
 (c) The working of the company’s software operating technique and various

facilities provided by it.

(d) The various functions performed by the various departments of the company.

(e) The marketing technique to sell de-mat account.

Sharekhan limited is known for its knowledge, leadership, operations and quality

services that add lasting value for its stakeholder and investor.

(a) SKL offers excellent opportunities for growth and self-development.

(b) One key factor in employee motivation and retention is the opportunities want

to continue to grow and develop job and career enhancing skills. Best quality

training and facilities is provided by the head office.

(c) An engaged workforce is passionate about the work that they are doing. They

believe in the mission of the company and are excited at individual, team and

company level to be successful.

(d) The company has long standing experience of the group in the capital market,

with a strong presence in retail broking.

58
4.3 SUGGESTIONS

(a) Company should focus on customer satisfaction at every level of account opening

procedure.

(b) Modification in investment according to the customer preferences and convenient.

(c) Company must have tie up with Punjab national bank and other commercial bank

so that investor didn’t face any difficulty in trading.

(d) Reduction in brokerage would attract the customer of the other competitor’s

having less brokerage than sharekhan. It would increase the market share or client

acquisition.

(e) Company should more focus on advertisement

59
 BIBLIOGRAPHY

Websites:

i. www.sharekhan.com

ii. www.bseindia.com

iii. www.nseindia.com

Books:

i. Financial Management by S.N. Maheshwari

ii. Sharekhan’s brochures

60
 ANNEXURE -1

Balance Sheet Of Sharekhan Ltd.

Balance Sheet (In Millions)

31/3/2016 31/3/2015

Share Capital 863 863

Reserve And Surplus 8760 8982

Total Shareholder’s Fund 9623 7845

Non Current Liabilities(Abstract)

Long Term Borrowings 3351 3351

Long Term Provisions 42 45

Total Non Current Liabilities 3393 3396

Current Liabilities(Abstract)

Short Term Borrowings 251 291

Trade Payables 5780 6071

Other Current Liabilities 983 761

Short Term Provisions 102 148

61
Total Current Liabilities 7116 7871

Total Equity And Liabilities 20134 19115

Non Current Assets(Abstract)

Fixed Assets 810 920

Non Current Investments 570 587

Deferred Tax Assets(Net) 145 157

Long Term Loans&Advances 474 322

Total Non Current Assets 1999 1986

Current Assets(Abstract)

Inventories 2402 2640

Trade Recievables 2164 1175

Cash And Bank Balances 6303 5213

Total Assets 20134 19115

62
 Annexure – 2

Profit And Loss Account Of Sharekhan Ltd.

Profit And Loss Account (In Millions)

Yr2016 Yr.2015

Revenue From Sale Of Sercices 4294 2995

Other Operating Revenues 1978 1410

Total Revenues From Operations 6272 4405

Other Income 260 192

Total Revenue 6532 4597

Salary & Adminisration Expense 1273.44 1094

Ebit 3503

Interest Expense 114 70

Depreciation Expense 169 174

Other Expenses 2419.56 1819

63
Total Expenses 3976 3157

Total Profit Before Taxes 2556 1440

Total Tax Expense 733 434

Profit After Tax 1823 1006

64