Financial Services in Anand Rathi
Dissertation submitted to the Rajasthan Technical University in partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION (------) Submitted by
Submitted To:
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ACKNOWLEDGEMENT I would like to express my sincerest gratitude to ---------(Company Guide), Guide), -----------(Man -----------(Managerager- Finance) Finance) and --------------------------------------------(O -------(Office fficerrFinance) for helping me in summer training at Anand Rathi Financial Services Ltd. This training has helped me to a great extent in developing a team spirit as well as a sense of responsibility and dedication to efficiently and effectively complete an undertaken work. The training has also instilled in me the the conf confid iden ence ce to commu communic nicat atee with with peop people le in a profe profess ssio ional nal manner. It has given me a chance to apply certain accounting principles and tech techni niqu ques es in real real worl world d busi busine ness ss situ situat atio ions ns and and to appl apply y theo theory ry in practice. In the course of this training I had an opportunity to undertake this project, “A Financial report on cost control", I am sure that my transition from from bei being a stud studen entt in a Manag anagem emen entt Inst Instit itut utee to a posi posittion ion of respons responsibi ibilit lity y in the corporate corporate world will will be much much more more smooth smooth and confident.
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ACKNOWLEDGEMENT I would like to express my sincerest gratitude to ---------(Company Guide), Guide), -----------(Man -----------(Managerager- Finance) Finance) and --------------------------------------------(O -------(Office fficerrFinance) for helping me in summer training at Anand Rathi Financial Services Ltd. This training has helped me to a great extent in developing a team spirit as well as a sense of responsibility and dedication to efficiently and effectively complete an undertaken work. The training has also instilled in me the the conf confid iden ence ce to commu communic nicat atee with with peop people le in a profe profess ssio ional nal manner. It has given me a chance to apply certain accounting principles and tech techni niqu ques es in real real worl world d busi busine ness ss situ situat atio ions ns and and to appl apply y theo theory ry in practice. In the course of this training I had an opportunity to undertake this project, “A Financial report on cost control", I am sure that my transition from from bei being a stud studen entt in a Manag anagem emen entt Inst Instit itut utee to a posi posittion ion of respons responsibi ibilit lity y in the corporate corporate world will will be much much more more smooth smooth and confident.
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TABLE OF CONTENTS Content Cont entss
Page Pag e No.
Abstract 3
Introduction to Anand Rathi Financial Services Ltd. 5 o
o
o
o o
o
Vision 5 Milestones 6 Services Provided by Company 7 Clients Competitors 11 Management Team
Objective 15
SWOT Analysis of the Company 16
Finance 17
My 17
On The Job Training 18 o
o
of
the
10
12
S tud y
Department Role
Introduction & Need of study 19 Objectives of 20
the
study
3
Project Data Collection o 22 Analysis & Interpretation o 22 Conclusion
Suggestions
Bibliography
21
26 27 28
Abstract Anand Rathi is a leading full service securities firm providing the entire gamut of financial services. The firm, founded in 1994 by Mr. Anand Rathi, today has a pan India presence as well as an international presence through offices in Dubai and Bangkok. AR provides a breadth of financial and advisory services including wealth management, investment banking, corporate advisory, brokerage & distribution of equities, commodities, mutual funds and insurance, structured products - all of which are supported by powerful research teams.
As a trainee in Anand Rathi Financial Services Ltd., the company has given me the exposure to work in finance department. Apart from this the company has given one more responsibility to me which is my project. I have chosen “A Financial report on cost control” as my project title. I have chosen this title because this is directly related to my OJT. For this project I have learnt that how to control the cost of company by making petty cash, checking the vouchers and parties/contractors bills. This project is very useful for the company because this will help in controlling the cost. This project is useful for me also because with the help of this my knowledge in the finance department is increasing.
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My project is related to core finance department because it controls the cost of the company. At the end of my project, I want to add that after two months I shall be capable to do the work in finance department and monitor the financial function of the company.
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INTRODUCTION To ANAND RATHI Anand Rathi is a leading full service investment bank providing a wide range of financial services to institutions, corporations, wealthy families and individuals. Founded in 1994 by Mr. Anand Rathi and Mr. Pradeep Gupta, the group employs close to 7,000 professionals across India and its international offices. Citigroup Venture Capital currently holds 20% of the group’s equity.
Anand Rathi Vision: To be a shining example as a leader in innovation, and the first choice for clients & employees.
About Anand Rathi: AnandRathi (AR) set up in 1994, is one of India’s fastest growing fullservice securities firm with a presence in more than 350 locations across India and has offices in Dubai & Bangkok. AR provides wealth management services, investment banking, brokerage & distribution services in the areas of equities, commodities, mutual funds and insurance. The group caters to the financial needs of diversified group of clients, which include the well-reputed Corporate Groups, Institutions, 6
Foreign Investors, Individuals as well as wealthy families and was recently ranked by an Asia Money 2006 poll amongst South Asia’s top 5 wealth managers for the ultra-rich. The firm's philosophy is entirely client centric, with a clear focus on providing long term value addition to clients, while maintaining the highest standards of excellence, ethics and professionalism. The entire firm activities are divided across distinct client groups: Individuals, Private Clients, Corporate and Institutions.
Milestones •
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1994: Started activities in consulting and Institutional equity sales with staff of 15 1995: Set up a research desk and empanelled with major institutional investors 1997: Introduced investment banking businesses Retail brokerage services launched 1999: Lead managed first IPO and executed first M & A deal 2001: Initiated Wealth Management Services 2002: Retail business expansion recommences with ownership model 2003: Wealth Management assets cross Rs1500 crores Insurance broking launched Launch of Wealth Management services in Dubai Retail Branch network exceeds 50 2004: Commodities brokerage and real estate services introduced Wealth Management assets cross Rs3000crores Institutional equities business relaunched and senior research team put in place Retail Branch network expands across 100 locations within India 2005:
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Real Estate Private Equity Fund Launched Retail Branch network expands across 200 locations within India •
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2006: AR Middle East, WOS acquires membership of Dubai Gold & Commodity Exchange (DGCX) Ranked amongst South Asia's top 5 wealth managers for the ultra-rich by Asia Money 2006 poll Ranked 6th in FY2006 for All India Broker Performance in equity distribution in the High Networth Individuals (HNI) Category Ranked 9th in the Retail Category having more than 5% market share Completes its presence in all States across the country with offices at 300+ locations within India 2007: Citigroup Venture Capital International picks up 19.9% equity stake Retail customer base crosses 200 thousand Establishes presence in over 450 locations
Services provided by Anand Rathi to its customers Equity & Derivatives Brokerage:
AnandRathi provides end-to-end equity solutions to institutional and individual investors. Consistent delivery of high quality advice on individual stocks, sector trends and investment strategy has established a competent and reliable research unit across the country.
Clients can trade through online on BSE and NSE for both equities and derivatives. They are supported by dedicated sales & trading teams in trading desks across the country. Research and investment ideas can be accessed by clients either through their designated dealers, email, web or Sms.
Mutual Funds:
AR is one of India's top mutual fund distribution houses. Their success lies in their philosophy of providing consistently superior, independent and unbiased advice to their clients backed by in-depth research. They firmly believe in the importance of selecting appropriate asset allocations based on the client's risk profile.
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AR have a dedicated mutual fund research cell for mutual funds that consistently churns out superior investment ideas, picking best performing funds across asset classes and providing insights into performances of select funds. Depository Services:
AR Depository Services provides with a secure and convenient way for holding your securities on both CDSL and NSDL.
AR depository services include settlement, clearing and custody of securities, registration of shares and dematerialization. Also offer daily updated internet access to holding statement and transaction summary.
Commodities:
AR commodities broking services include online futures trading through NCDEX and MCX and depository services through CDSL. Commodities broking is supported by a dedicated research cell that provides both technical as well as fundamental research. Our research covers a broad range of traded commodities including precious and base metals, Oils and Oilseeds, agri-commodities such as wheat, chana, guar, guar gum and spices such as sugar, jeera and cotton. In addition to transaction execution, we provide our clients customized advice on hedging strategies, investment ideas and arbitrage opportunities. Insurance Broking:
As an insurance broker, AR provide to his clients comprehensive risk management techniques, both within the business as well as on the personal front. Risk management includes identification, measurement and assessment of the risk and handling of the risk, of which insurance is an integral part. The firm deals with both life insurance and general insurance products across all insurance companies
Their guiding philosophy is to manage the clients' entire risk set by
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providing the optimal level of cover at the least possible cost. The entire sales process and product selection is research oriented and customized to the client's needs. They lay strong emphasis on timely claim settlement and post sales services. Our services : •
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Risk Management Due diligence and research on policies available Recommendation on a comprehensive insurance cover based on clients needs Maintain proper records of client policies Assist client in paying premiums Continuous monitoring of client account Assist client in claim negotiation and settlement
IPO’s: AR is a leading primary market distributor across the country. Our strong performance in IPOs has been a result of our vast experience in the Primary Market, a wide network of branches across India, strong distribution capabilities and a dedicated research team. Our IPO research team provides clients with in-depth overviews of forthcoming IPOs as well as investment recommendations. Online filling of forms is also available.
Major Departments
Equity Commodity Life Insurance General Insurance Mutual Fund Depository IPO Internet Broking Information Technology Client Acquisition 10
Finance Compliance Settlement Accounts Operations HR/Administration
Clients of Anand Rathi Corporate and Institutional treasuries need ever more sophisticated advice that is backed by serious and credible research. AR IWM provides its institutional clients integrated wealth management solutions across global markets, which are backed by proprietary global economic & investment research. We understand that your needs could range from finding short-term surplus management strategies to higher yielding and long term investments. The IWM team brings together the highly-rated AR research across fixed income, currencies and equities markets to provide investment solutions that meet your complex needs - from simple moneymarket mutual funds to complex arbitrage strategies in the equities or commodities markets.
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Client List ACC Bayer Century Textiles Clariant CRISIL Crompton Greaves Dabur Datamatics GE Shipping Godrej Goodlass Nerolac Grasim Gujarat Abuja Cements Gujarat Pipavav Port Heinz India Hindalco Hindustan Lever H&R Johnson IDFC Indian Rayon Jindal Group Larsen & Toubro Mastek Mahindra & Mahindra Raymonds Sterlite Group Syngenta Tata Iron & Steel Trent VSNL •
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Wartsila
Competitors of Anand Rathi overall India Company Name
Number Total Sub No.of of TerminalsBrokersEmployees Branches
City
12
A S Stock Broking & Management 15 Private Limited Action Financial Services (India) 18 Limited
NA
25
2
Mumbai
25
31
10
Mumbai
Alankit Assignments Limited
650
60
700
20
Anagram Securities Limited
999
964
1183
139
New Delhi Mumbai
Angel Broking Limited 5081 Anush Shares & Securities Private 37 Limited Arcadia Share & Stock Brokers 191 Private Limited
2408
1800
66
Mumbai
10
40
30
Chennai
121
150
60
Mumbai
Arch Finance Limited
16
NA
45
10
Zuari Investments Limited
31
NA
50
15
New Delhi New Delhi
skyes & Ray Equities (India) Limited
18
300
50
250
SKI Capital Services Limited
88
NA
60
18
Bonanza Portfolio Limited
2177
536
1200
380
New Delhi Delhi
UTI Securities Limited
270
150
575
35
Mumbai
Mumbai
India Infoline Limited
970
NA
3858
540
Indiabulls Securities Limited
2700
NA
8922
475
Bonanza Portfolio Limited IL&FS Investmart Securities Limited
2177
536
1200
380
Mumbai New Delhi Delhi
661
NA
1600
288
Mumbai
ICICI Securities Limited
1051
587
1833
270
Mumbai
In Jaipur • • • • • •
Hem Securities Ltd. Religare India Infoline India Bulls Angel Broking Ltd. Kotak Mahindra
Management Team (Corporate) Anand Rathi (AR) set up in 1994, is one of India’s fastest growing fullservice securities firm with a presence in more than 350 locations across India and has offices in Dubai & Bangkok. AR provides wealth management services, investment banking, brokerage & distribution services in the areas of equities, commodities, mutual funds and insurance. The group caters to the financial needs of diversified group of 13
clients, which include the well-reputed Corporate Groups, Institutions, Foreign Investors, Individuals as well as wealthy families.
Mr. Anand Rathi - Group Chairman Chartered Accountant Past President, BSE Held several Senior Management positions with one of India's largest industrial groups
Mr. Pradeep Gupta - Managing Director Plus 15 years of experience in Financial Services
Mr. Amit Rathi - Managing Director Chartered Accountant & MBA plus 9 years of experience in Financial Services
Management Team (Rajasthan)
Hierarchy of Region
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Mr. Rajkumar Jain (Regional Director)
REGIONAL OFFICE Mr. Rajkumar Jain (Regional Director)
CLUSTER-1 Rest of Rajasthan Mr. Amit Mehta (Cluster Head)
CLUSTER-2 Udaipur Mr. K. C. Pandya (Cluster Head)
Rajasthan region is headed by Mr. Rajkumar Jain. Jaipur- C-Scheme is the Regional Office Region is divided into 2 clusters: 1. Rest of Rajasthan 2. Udaipur Apart from Regional office we have 13 branches in the region Total Manpower in region -331
Branches in Region
Jaipur - Regional Office Cluster 1 – Rest of Rajasthan
– Rajapark Branch – Mansarovar Branch 15
– – – – – – – –
Vaishali Nagar Branch Vidhyadhar Nagar Branch Shyam Nagar Branch Kota Branch Ajmer Branch Sikar Branch Tonk Road Kishangarh
Cluster 2 - Udaipur
– – – – –
Udaipur- Main Branch Udaipur - Sector-11 Branch Bhilwara Branch Chittorgarh Branch Dungarpur Branch
OBJECTIVES OF THE STUDY The overall objectives of my study is to increase my confidence and knowledge in Finance Department. Apart from this the following are objectives of my study:-
To learn the tactics to control the cost.
To apply my theoretical knowledge into real world environment and how to behave in professional manner.
To increase analytical skill.
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To handle the different type of parties and how should we behave in different situations.
To know what is the role of finance department in the organization.
SWOT Analysis of ARFSL Strength:
India’s Leading Broking House Online and Offline Trading facility The company is a distribution house of other products like Life Insurance, General Insurance and Mutual Fund.
Weakness:
The company is not having its own product unless Demat and Trading Account.
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Opportunity:
The financial sector is on boom in Indian Economy, this is the biggest opportunity for a broking house. The company is growing and opening new branches in Rajasthan also.
Threat:
Many new Brokers are entering in this field. Many Players create the price war in the market.
Finance Department's Workings: • • • • • • • • • •
• •
Preparing and maintaining day to day vouchers. Maintaining of party's ledgers. Passing of party's and contractor's bills. Brokerage generation on daily basis. Maintaining of bank accounts with reconciliation. Monthly trial balance and balance sheet. MIS report on day to day basis. Branch accounts and profitability statements. Monitoring of electricity and telephone bills. Preparation of employee's salary. Calculation of PF and ESIC on monthly basis. Half yearly and annual return of service tax and income tax.
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My role in Finance Department: • • • • • • • • •
Preparing and maintaining day to day vouchers. Daily vouchers incorporated in Tally software. Maintaining of party's ledgers. Verification of bills. Passing of party's and contractor's bills. Maintaining of bank accounts with reconciliation. Monthly trial balance. Branch accounts and profitability statements. Monitoring of electricity and telephone bills.
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INTRODUCTION & NEED OF THE STUDY After having discussion with my company guide I have chosen my project which is beneficial for company and me also. I want to introduce you my project which is “A Financial report on Cost Control”. I have chosen this topic as my project because normally it has been seen that in a company money is being wasted mostly in small petty cash expenses. Employees are unaware about this fact and therefore the need of cost control is aroused. 20
I also felt the need of my study because by the help of this the company can target the specific expenses which can be minimized. Cost control is very important for employees also because it affects in increments. My project will help the company because it has given some facts which were hidden earlier and I hope that they will use them to control the cost. After completion of my project the company can target specific expenses.
OBJECTIVES
My main objective of on the job training is petty cash, checking the vouchers and parties/contractors bills. The followings are some of my On Job Training objectives:-
Working on Tally.
Entries of Journal Voucher into Tally. 21
Preparing brokerage of Sub-brokers.
Passing parties bills.
Apart from this the OJT helped me to know that how to overcome the stress of working in corporate environment. This training has given me knowledge about making schedule for work and making our self for working with schedule.
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DATA COLLECTION Irrespective of type of study the cost is calculated in the department itself so I have taken secondary source of data for my study instead of primary.
Secondary Data:Secondary data is the one which researches did not collected him self & got the information from Department.
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Sample Size Sample Area
-
120 Jaipur-RO
Analysis and Interpretation I have collected very useful data working along with the Anand Rathi Financial Services Ltd. I had collected data related to employee's education and their contribution in the cost because I want to know that are these factors related to each other. My sample size of project was 120 It means I have collected data from all the employees of Regional Office. Out of 120 people 24 employees were under Sr. Sec., 60 were under graduate and 36 were above graduate. For the analysis part I have taken the cost data in % and 45% of the cost is occurred by under Sr. Sec. employees, 32 % cost is occurred by under graduates and 23 % by above graduates. The analysis shows that as the education level increases cost reduces.
Education and Cost:This interpretation tells about how Qualification of employees affects the cost of company. Out of 48 interested customers 10% were below senior secondary that are those persons who have held shares in physical form or who trade in commodity. 60% were graduate and 40% were above graduate.
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Relation Between Employee Education and Cost 50 40 t s 30 o C20 10 0
45
32
Below Sr. Sec.
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Under Graduate . r S . w c e o S l e B
e r t e a d u n d U a r G
e e t v a u o d b a A r G
Above Graduate
Qualification
Co-relation between Education and Cost Qualification X Y
Below Sr. Secondary 24 45
Under Graduate
Above Graduate
60 32
36 23
X= Total no. of employees Y=Cost in %
Qualification X(Total no. Y(Cost of
Under
24 60
dY=
(X-
(Y-
A)
B)
-16 20
12 -1
dX2
dY2
dXdY
256 400
144 1
-192 -20
in %)
employees) Below S.Sec.
dX=
45 32
Graduate
25
Above
36
Graduate N=3
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X
-4
Y
-10
dX
16 d
dX2
Y =120
=100
=0
100
=672
dXd
dY 2
=1 =245
Solution: -N=3, X=120,
40
Y
=-172
Y=100
Actual mean=120/3 = 40 (For X Series) Actual mean=100/3=33.33(For Y Series) Let A=Assumed mean for X series = 40 B=Assumed mean for Y series = 33 The coefficient of correlation is given by r=
N
dXdY-
N dX2-( dX)2
dX
dY
N dY2-( dY)2
Substituting the values in the formula, r=
3 (-172) – (0*1) 3(672)-(0)2
r=
3(245)-(1)2
-516 44.9* 27.09 r = -0.4240 26
There is medium degree of negative correlation between Education and Cost.
CONCLUSION It was a great experience to work with Anand Rathi Financial Services Ltd. It is India's leading broking house. As the company has given me a chance to work with finance department I have collected the data of cost from finance department itself. HR department helped me in collecting data of employee's qualification.
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The analysis shows that there is medium degree negative co-relation between employee's qualification and cost incurred by employees, which shows that as the qualification increases cost reduces. The employees who are well educated utilizing the resources provided by the company very carefully, they are aware of the fact that if the cost increased it would directly affect on region's profit and lastly on their increments. They want to grow with the company and that is why they fully co-operate with finance department. The employees who are less qualified they are careless while using the resources. They make lots of wastage unknowingly.
Finance department is like a back bone of the company. It manages the earnings and expenditures. The analysis also shows that there is a vast scope of reducing the expenses and wastages. If finance department is active, it can do wonders in controlling the cost.
SUGESSIONS
1. Budgetary control system should be implemented. In this system
yearly cost budget is made and followed. 2. Company should arrange trainings time to time to increase the
awareness in the employees, because of training the bonding between
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employee and employer get stronger due to which they try to do optimum utilization of company resources and wastage get reduced. 3. Qualified (at least graduate) employees should be recruited so that
good and healthy working environment could be developed. 4. Finance Department should be more active towards the resources
provided to employees so that it can make the quality resources available at minimum price.
BIBLIOGRAPHY
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www.rathi.com
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http:// intra.rathi.com
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Monthly Cost Sheets
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Employee Data from HR Department
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•
Quantitative Methods (ICFAI Publications)
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