INDUSTRY OVERVIEW

The Indian Capital Market which had witnessed a bull phase between FY 2004-05 to FY 2007-
08 experienced a severe setback during FY 2008-09, triggered by the global financial market
meltdown and worsened by the rising inflationary pressures in the domestic economy. The
dislocation in the financial and capital market seriously impacted the financial performance of
the domestic brokerages houses.

The FY 2009-10, however, saw a turnaround in the fortunes of the Capital Markets in India.
With the brokerages income getting adversely impacted and the turnover declining with falling
Stockpiles and average brokerages yield, the brokerages houses profitability was severely
impacted and they were faced with the challenge of protecting their capital from erosion in the
adverse capital market movement.

The FY 2009-10, however, saw a turnaround in the fortunes of the Capital Markets in India.

On the back of easing global concerns, stable government at the centre and improving market
sentiments, the industry turnover registered a strong performance marked a huge improvement
over the position in FY 2008-09.
Going forward there is a need for exercise of caution as the market volatility, both in terms of
stock prices and trading turnover, is expected to continue and the
Pressure on profitability is likely to persist.

The FY 2009-10, however, saw a turnaround in the fortunes of the Capital Markets in India.

SEBI has taken several measures to improve the integrity of the secondary market. Legislative
and regulatory changes have facilitated the corporatization of stockbrokers. Capital adequacy
norms have been prescribed and are being enforced. A mark-to-margin
And intraday trading limit have also been imposed. Further, the stock exchanges have put in
place circuit breakers, which are applied in times of excessive volatility. The inclosure of short
sales and long purchases is now required at the end of the day to reduce price-volatility and
further enhance the integrity of the secondary market. \l\while there is still a lot to be done to
make capital markets more efficient in mobilizing and allocating capital and additional steps to
increase investor protection and improvement in transparency,
Corporate governance and monitoring will be necessary to enhance investors' confidence in the
capital market, however very good progress has been made.

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GROWTH AND PRESENT STATUS OF THE INDUSTRY

From being despised for its casino like trading practices and lack of good investment options not
long ago to becoming one of the fastest growing bourses globally, India's stock market today
counts among the more mature and professional equity exchanges globally.
The stock market has become the darling for scores of middle-class investors and over 800
overseas funds that are pouring money into the domestic trading ring like never before to join the
gold rush that has been continuing without any major interruptions for over a year now.
Massive stock investments inflows in Asia's second fastest growing economy after neighboring
China on hopes of sustained higher economic growth and corporate earnings is helping the
benchmark share market index to scale new peaks almost on a regular basis.
India's benchmark share market index has risen nearly 80 percent in the last 12 months as
compared to an increase of between 20 percent and 60 percent in other emerging markets like
Brazil and Russia.
The number of registered foreign institutional investors in the country has swelled to a staggering
882, of which over 100 were registered in the last six months, according to the market regulator
Securities and Exchange Board of India (SEBI). The Indian stock market boasted of just 18
registered foreign institutional investors in 1993.Foreign institutional funds, the backbone of
India's liquidity starved capital market, pumped in a record $10.7 billion in the stock market in
2005 and have already bought shares worth over $3.63 billion in the current calendar year.
Enthused by the surging equity valuations, overseas funds have invested a whopping $1.5
million in March, compared with February's$1.7 billion, showed SEBI figures. Taiwan, with
over $12 billion of foreign institutional investments, is the only other emerging Asian stock
market that outstrips India's$10.7 billion worth of equity purchases by overseas bodies in 2005.
Foreign institutional funds are queuing up for shopping in Asia's third largest economy from a
host of nations like Japan, Germany, Australia, Singapore, Luxembourg, Denmark and the US.
The market mood has also been boosted by the Indian government's plans to make the local
currency fully convertible on the capital account with a view to integrating domestic economy
with the global economy. Prime Minister Dr. Manmohan Singh has said the country was moving
towards making the rupee fully convertible on capital account on the back of robust economic
expansion. The rupee is currently convertible only on current account, allowing free inflows and
outflows for all purposes other than for capital purposes such as investments and loans.

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FUTURE OF THE INDUSTRY

The stock market is booming in spite of the low agriculture output. The Monsoon is good in an
overall sense but still the question remains about who will take the credit for it. The answer is the
karma of the people. I would like to appreciate the Indian politicians and the industrialists who
are pawns of destiny for doing many things positive and productive. India as a country is running
a very good period and the very position of the planets in transit are giving wonderful result.
Only less than 1 per cent of the population own stocks and less than 1,000 individuals control the
market, the majority being the FIIS, the promoters of the company. The credit should go to the
media for making stock markets the headlines.

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Industry Analysis

Brokerage industry is a fragmented industry as there are many small to medium size firms each
with a low market share.

• The threat of new entry is quite high: As only 1% of the total population has invested in
capital market and a very large segment is still untapped, thus, if anyone looks as if
they’re making a sustained profit, new competitors can come into the industry easily,
reducing profits;

• Competitive rivalry is extremely high: The competitors for India-bulls securities are
Karvy, Sharekhan, IIFL, Reliance Money etc.If someone raises brokerage charge; they’ll
be quickly lose customer. Intense competition puts strong downward pressure on
brokerage charge.

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 • Buyer Power is high, again implying strong upward pressure on prices;

Supplier Power is low thus having a moderate impact on prices

There is some threat of substitution. As people have other options to invest other than
investing in capital market. The substitute products are mutual fund, sip, ulip policies etc.

Origin of the organization:-

India bulls was established by three engineers from IIT Delhi, and has attracted significant
amount of investments from venture, private equity and institutional investors. The details are as
follows:

Sameer Gehlaut, Chairman, CEO & Whole Time Director:

Sameer, aged 30 years, graduated with a Mechanical Engineering Degree from the Indian
Institute of Technology, Delhi. He was one of the three engineers selected by Halliburton to
work for its international services business in the year 1995 and worked in many countries
during his tenure there. He gained experience, learned international best practices and imbibed
professional work culture at Halliburton, which he brought to Indiabulls Group as one of the
founders of our Company.
He has gained extensive experience in the Financial Services Sector and developed in-depth
knowledge and strong understanding of all aspects of the Securities Industry and Financial
Services Business. Under his leadership, Indiabulls Group has grown from one office, 310
clients, and 8 employees in FY 2000 to 32,359 clients, 70 offices and 606 employees as on April
30, 2004.and 350 offices in FY 2010

Rajiv Rattan, President, CFO & Whole Time Director:

Rajiv, aged 31 years, an NTSE Scholar, graduated with an Electrical Engineering Degree from
the Indian Institute of Technology, Delhi. He was the only engineer selected by Schlumberger to

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work for its international services business in the year 1994 and worked in many countries
during his tenure there. He gained extensive experience in international best practices, process
management, and risk management, which he brought to India bulls Group as one of the
founders of our Company.
He has gained extensive experience in the Financial Services Sector, and has developed
understanding of risk management, efficient processes and operational excellence. .

Saurabh Mittal, Director:

Saurabh, aged 30 years, graduated with an Electrical Engineering Degree from the Indian
Institute of Technology, Delhi and was declared the best graduating student in 1995. He was one
of the engineers selected by Schlumberger to work for its international services business in the
year 1995and worked in many countries during his tenure there. He graduated with a Masters of
Business Administration from the Harvard Business School where he graduated as a Baker
Scholar. He worked at Citigroup Asset Management as an investment analyst, and is currently a
senior portfolio manager at Farallon Capital Partners L. P. He has developed an understanding of
international financial markets, and extensive experience in the Securities industry.

Main Objects of the Company

The main objects to be pursued by the Company on its incorporation are:

1. To hold investments in various step-down subsidiaries for investing, acquiring, holding,

purchasing or procuring equity shares, debentures, bonds, mortgages, obligations, securities of
any kind issued or guaranteed by Company.
2. To provide financial consultancy services; to provide investment advisory services on `the
internet or otherwise; provide financial consultancy in the area of personal and corporate finance;
publish books and CD ROMs and any other information related to the above.

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3. To conduct the business of sale, purchase, distribution and transfer of shares, debts,
instruments and hybrid financial instruments and to perform all related, incidental, ancillary and
allied services.
4. To conduct depository participant services; to conduct de-materialization and re-
materialization of shares; setup depository participant centers at various regions in India and to
perform all related, incidental, ancillary and allied services.
5. To receive funds, deposits and investments from the public, Government agencies, financial
institutions and corporate bodies; grant advances and loans; conduct advisory services related to
banking activities, project financing, funding of mergers and acquisition activities; fund
management and activities related to money market
6. To carry on the business of portfolio management services, investment advisory services;
custodial services; asset management services; leasing and hire purchase; mutual fund services
and to act as brokers of real estate and financial instruments.
7. To carry on the business of financing; provide lease and hire purchase services; to provide
consultancy in the area of lease and hire purchase financing.
8. To operate mutual funds; receive funds from investors; equity or debt instrument research
activity instrument in debt and/or equity instruments.

COMPANY PROFILE

India bulls is India's leading retail financial services company with over 123 branches spread
across 70 cities. The organization has an established presence through its own offices and has a
base of over 6, 20,000 clients. Ranked amongst the top 3 retail brokers in the country with
average daily trading volumes of over Rs.1000 crores in the current markets and holds over
Rs.300 crores of assets in its own depository services. Indiabulls securities ltd was started in
May 2000. 11 crores are the initial capital that indiabulls invested, initially only 2 branches were
there now it developed into 123 branches. More than 6000 employees are there. Indiabulls have
their own call centre. In NSE and BSE more than 7% of the trading is done in Indiabulls, and

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over 6lack clients are there. While their size and strong balance sheet allow them to provide a
varied product and services at very attractive prices, over 4000 Client Relationship Managers are
dedicated to serving their unique needs.
Indiabulls Professional Network offers real-time prices, detailed data and news, intelligent
analytics, and electronic trading capabilities. Indiabulls offers a full range of financial services
and products ranging from Equities to Insurance to enhance wealth and achieve financial goals.
The unique feature of Indiabulls Securities Ltd is that is does not trade for its own benefits but
focuses on facilitating its traders to offer quality services to investors. A board of Directors,
which includes professional well known in the field, manages the corporation.

Unique features:

• Trading via branch Network, Telephones and Internet account

• Automatic Extended Margin Trading Facility
• Integrated Banking, Trading and Depositary Account
• Technology transforming desktop into NEAT like terminal for Internet
trading (user friendly and fast). Both NSE and BSE.
• Facility to Buy Today & Sell Tomorrow itself.

OUR ACCREDITATIONS AND ACHIEVEMENTS

IBSL is the corporate member of capital market, wholesale debt market and derivative segment
of NSE and of the capital marl1et and derivative segment of BSE

• It has a pan India presence with a network~ of123 branches spread across 70 cities

• It possesses state of the art trading platform, best broking practices and is always ahead in
launching innovative trading products

• It is the first brokerage house to be assigned the highest rating BQ 1by CRISIL

• It is listed on NSE, BSE & Luxembourg Stock Exchange

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 JOURNEY OF INDIA-BULLS

Indiabulls has emerged as one of the leading and fastest growing financial company in less than
two year, since its initial public offering in September 2004. It has a market capitalization of
around (31st March, 2010) and consolidated net worth of the group is around.

2000-01
• Indiabulls Financial Services Ltd. established India’s one of the first
trading platforms with the development of an in house team.

2001-03
• Indiabulls expands its service offerings to include Equity, F&O,
Wholesale Debt, Mutual fund, IPO distribution and Equity Research.
• Indiabulls ventured into Insurance distribution and commodities
trading.
2003-04
• Company focused on brand building and franchise model.

• Indiabulls came out with its initial public offer (IPO) in September
2004.
2004-05 • Indiabulls started its consumer finance business.
• Indiabulls entered the Indian Real Estate market and became the first
company to bring FDI in Indian Real Estate.

• Indiabulls won bids for landmark properties in Mumbai.

• Indiabulls has acquired over 115 acres of land in Sonepat for

residential home site development.
• Merrill Lynch and Goldman sac, one of the renowned investment
banks in the world have increased their shareholding in Indiabulls.
2005-06 • Indiabulls is a market leader in securities brokerage industry, With
around 31% share in online trading,
• Farallon Capital and its affiliates, the world’s largest hedge fund
committed Rs. 2000 million for Indiabulls subsidiaries

• Steel Tycoon Mr. LN Mittal promoted LNM India Internet venture

Ltd. acquired 8.2% stake.

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 • Indiabulls entered in a 50/50 joint venture with DLF, Kenneth
Builders & Developers (KBD). KBD has acquired 35.8 acres of land
from Delhi Development Authority through a competitive bidding
process for Rs 450 crore to develop residential apartments.
2006-07 • Indiabulls Financial Services Ltd. is included in the prestigious
Morgan Stanley Capital International Index (MSCI).
• Farallon Capital has agreed to invest Rs. 6,440 million in Indiabulls
Financial Services Ltd.
• Indiabulls ventured into commodity brokerage business.
• Indiabulls has received an “in principle approval” from Government
of India for development of multi product SEZ in the state of
Maharashtra.
• Dev Property Development plc. has subscribed to new shares and has
also acquired a minority shareholding from the Company.
2007-08
• Indiabulls Financial Services Ltd. Board resolves to Amalgamate and
demerge Indiabulls Securities Limited.

Operational highlights 2009-10

• A full fledged division for institutional sales was created in December 2009 A team of
high profile research analysis was developed especially to cater the institution clients.
Within a short span of time the company has successfully developed relationship with
several institutions.
• The company successfully concluded the buyback of 23,486.341 equity shares (face
value of rs 2 each )at an average price of rs.31.49 per share utilizing rs 73.96 crore
(excluding brokerage and other expenses ) on march 5, 2010
• The number of active unique clients traded during FY 2009-10 increased considerably to
164.716 clients from 118.970 client in Fy2008-09
• Opened 58.224 new equity trading accounts during the year
• Added 8,612 new trading accounts for commodities during the year
• Being rated as PI+ by CRISIL the company’s short term debt program was enhanced
from rs.1000 crore to rs. 1200 crore

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Offerings
We offer the following products and services in the financial markets:

• Stock trading
• Options and Futures trading
• Depository Services
• Commodities trading
• Mutual Funds
• Bonds and Debt Products

India bulls offers two products in stock trading: - “Get More At India bulls.”
1. NIB - Normal India bulls
2. PIB - Power India bulls

NIB – Normal India bulls: -

“A multitude of ways to access your account either through priority access to Relationship
Manager over phone OR online access to your Account & Research Tools.”
Enjoy priority telephone access that gives you direct access to your Relationship Manager.
Stay on the top of your investments with a snapshot of your Account Statements. Get access to
Portfolio statement and access to digital contract notes.

PIB – Power Indiabulls: -

“Trading just got faster”

It is advance trading software which great deals of versatility even at low band width assuring
speed and total functionality ensuring speed and total functioning of a broker’s terminal. An

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active trader market executes traders and get confirmation of the some computers terminal need
to be 128 Bits Encrypted (Supported by explorer version 5 and above)
Regardless of how the market is performing or which way the economic winds are blowing as
traders, are researching, charting, crafting a strategy, buying and selling. Investors are getting in,
getting out and moving on to the next trade. Choose from a comprehensive offering of accounts,
platform and product. Customize technology and services to support the way of work.
Choose from a broad spectrum of sophisticated trading tools using a fast desktop Trading
Software. - Trading just got faster.

Features of PIB:

• Live Streaming Quotes

• Fast Order Entry
• Tic by Tic Live Charts
• Technical Analysis
• Live News and Alerts

 Depository Services: -
“Whatever your individual goals, we can help.”
India bulls is a depository participant with the National Securities Depository Limited and
Central Depository Services (India) Limited for trading and settlement of de materialized shares.
India bulls perform clearing services for all securities transactions through its accounts.
Company offer depository services to create a seamless transaction platform – execute trades
through India bulls Securities and settle these transactions through the India bulls Depository
Services. India bulls Depository Services is part of our value added services for its clients that
create multiple interfaces with the client and provide for a solution that takes care of all client
needs.

 NRI Account
You can now enjoy the convenience of hassle-free and fast way of trading in the Indian Equity
Markets through India bulls NRI Investor Services Our unique integrated service creates one

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window for all your trading, depository and banking needs. You can buy and sell on your
computer using our NRI Trading Account Services, which have been seamlessly integrated with
your India bulls Depository Account and with the HDFC NRE/NRO Bank Account.

We provide full access to the following services to help you trade seamlessly:

• Indiabulls NRI Trading Account - Provides access to comprehensive trading tools for
independent NRI investors
• Indiabulls Depository Services - Integrated services for seamless delivery
• HDFC Bank Account - NRE/NRO Accounts with built in tax management solutions and
facility to source all regulatory approvals
• Indiabulls Equity Analysis - Premium Research on 540+ companies updated daily.

BUSINESS STRATEGY

The Company is focused on capturing significant growth opportunities in the financial services
market and its strategy is driven by the following key principles:

A. Aggressively grow the client base

The Company's primary focus is on increasing its client base by:

(i) expanding its geographic presence in new cities as well as increasing its presence
inexistent cities by opening new offices;

(ii) Increasing sales force to provide personal attention and improve customer service;
including trained relationship managers
Operating across the country, and

(iii) Cross selling our various services and wealth management solutions.

The Company has a large and well distributed network of branches across India, which provides
securities broking service. The Company believes that this network will enable it to offer its
services with increased convenience to the customers and to expand its market share and client
base, This extensive distribution network provides us further
Opportunities to cross-sell products and services as we diversify into new business streams.

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 B. Institutional Equities

The Company has in place a high quality institutional equities team. Our high quality
Research reports, produced by our "out of box thinkers", research analysts sets us apart from the
rest of the pack, and has opened doors for us with various institutional clients, both locals and
FII. This will enable us to garner a significant slice of the Institutional13usiness. Our focus
would be to expand our research coverage and strive to
Offer our clients an unbiased high quality research product in a "sanitized and secured"
environment.

C. Portfolio Management Services

The Company plans to expand its operations by providing portfolio management advisory
services to its high net worth clients that offer superior margins and are complementary to
existing Operations.

D. Enforce risk .management systems

The Company has fully automated risk management software, which performs direct
Monitoring of operational controlling parameters to minimize delinquency risRs.I135LrisR
management team performs real time monitoring of client positions across cash and derivative
segments. Clients are informed about their margin
Requirements through multiple channels including automated SMS and e-mail channels. The
Company employs strict risk management standards to reduce delinquency risks and has
developed robust recovery processes. The Company has well managed control systems working
along with the external audit which performs checks at regular
Intervals to identify and rectify any discrepancies in the system.

HUMAN RESOURCES

The Company firmly believes that its employees are the key to driving performance and
developing competitive advantage. The emphasis has been on proper recruitment of talent and
empowerment while devoting resources for their continuous development.
The structured recruitment process, which the Company employs, focuses on recruiting people
who have the right mindset for working at IBSL, supported by structured training programmers
and internal growth opportunities.

The basic objective has been to ·unlock the people potential and further developing their
functional operational and behavioral competencies so as to build a team of dedicated
employees who work with passion, zeal and a sense of belongingness and play a

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Defining role in significantly accelerating the growth and transformation of the Company,
thereby, consolidating its position in the market as one of the top corporate brokerage houses in
the country.

It is in continuation of this process that the Company has in place, Employee Stock Option
Schemes which aim at rewarding and nurturing talent so that the Company gets
to retain what is best in the industry.

INTERNAL CONTROL SYSTEMS

The Company has adequate system of strong internal controls For business processes, with
regards to operations, Financial reporting, compliance with applicable laws and regulations, etc.
Regular internal audits and checks ensure that responsibilities are
Executed effectively. The Audit Committee of the Board of Directors actively reviews the
adequacy and effectiveness of internal control systems and suggests improvement For
strengthening the existing control system in view of changing business needs From time to time.

Robust Risk

Risk Management Module

 Risk management logic built into internet

trading application

 Continuous marking
-to-market of client
exposure
 Back office support for centralized contro
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risk management of non
-internet transacti
ORGANISATIONAL STRUCTURE
The organizational structure of INDIA BULLS consists of two function structure i.e. main
structure and support structure. As most of the revenue comes from the sales it works as the main
structure where as the support structure consist of all other functions like finance, hr. operation.
The support structure helps in smooth functioning of the sales. The activity of support structure
is being done in the head office of the company which is situated in Gurgaon.

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Hierarchy in sales structure

Senior vice president

↓
Branch Manager

Senior Manager Sales

Manager Sales

Senior Relationship Manager Business Development Manager

(SRM) (BDM)

Relationship Manager Business Development Executive

(RM)
(BDE)

Future planning of the company

India bulls group exists in financial services and real estate business. Now it’s emphasizing in the
field of retail and power generation. Moreover it’s trying to enter in the banking industry, as RBI
will issue license to leading NBFC’s. The motive behind entering into banking business is that

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India bulls has a pact with all the leading banks for transferring of its money, but if it will have
its own entity in bank it will be helped them in more efficiency in there transaction and reduction
in cost. It has also a plan to enter into the multiplex business. As it’s already exists in the real
estate business.

SWOT ANALYSIS

STRENGTH OF I-BULLS

• Online trading platform.

• Diverse Branch Network provides ample opportunities to penetrate deep into the existing
& untapped market.
• India bulls offers its clients a pool of financial services and products:
• No annual maintenance charges.
• No custodial charge.
• It does not keep any condition as to collect minimum amount of brokerage from its
clients
• Most competitive BROKERAGE and DP charges (on delivery 0.5% and on intraday
0.05%)
• Equity analysis report to support the investment decision of its clients
• Trading via branch network, telephones and internet account i.e. both online and offline
• Induction of new employees through an extensive computer based training module.
• Real time online transfer fund and exposure updating facility with all leading banks.

Weakness
• It should have its own mutual funds as Indiabulls is providing advises in mutual fund.
• It should provide tips via SMS.
• There should be a separate set of staff working in fields and trading on behalf of their
clients.
• Position to answer the questions of their clients relating to the current market position as
they are on fields.

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• It does not provide with the indices of major world markets, ADR prices of Indian
scripts. Unlike some of its competitors like ICICI and Kotak, Indiabulls does not provide
a complete catalogue of financial services (e.g. Banking facility).
• Due to the continuous need to meet the targets, some of the Relationship managers crack
under pressure and thus leave the organization.

OPPORTUNITIES

• Financial services like banking

• Market expansion i.e. opening branches at untapped areas
• Indiabulls is registered with Luxembourg stock exchange and so can target other stock
exchanges.
• ATM facility should be provided for easy withdrawals.
• The Capital market in the last few years has turned out to be one of the favorable avenues
for the retail investors
• Indiabulls has tied up with other third party companies to sell their products. Due to the
high client base of Indiabulls, there exists an opportunity to cross sell these products in
the market.

Threat

• Companies like Share khan, ICICI Direct, Kotak, and Private Brokers are major threats to
Indiabulls.
• Banks with demat facility jockeying for position.
• Local brokers capable of charging lower brokerage.
• Industry competitors vying for the same target segment.
• Changes in SEBI guidelines & other tax implications.
• Government Regulations.

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Assessment of the internship
It is a very fruitful and great learning experience to work as a management trainee in the sales
online department. As it is given me a chance to see how the classroom theoretical concepts are
used by big corporate house like India-bulls securities.
The first day, the branch manager told me to go through the company website that contains the
details of the company. It went for four to five days, from 6 th day our manager started to give us
training regarding various aspects of the brokerage industry as well as the company. The training
goes on for 20 days than I was asked to go through t
The TMP module of India bulls i.e. training management programme. It is a programme which
the company gives to its employees. Every employee is assigned with a log in ID and password
on the TMP. But as we are working as management trainees, our manager provided us with the
other employee’s id. The TMP constitutes three segments:
Industry profile
Company profile
Stock market
The next task assigned to us is to work in customer relationship management cell, where we have
been given a chance to interact with the client via telephonic conversation to know about the
level of satisfaction they are enjoying with our firms as well as giving some useful information to
our clients regarding the new norm of the exchange like KYC and Running Authority Letter. I
interact with more than 500 clients in the time period of 3 weeks.
The very next task assigned to me is “lead Generation” it is a way to find the prospects and then
to go ahead and convert them into clients. It gives me a chance to use my selling skills to
influence the prospects.
I also did a competitor analysis regarding their charges and services while opening a demat
account.

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CHALLENGES

The Company views the following as the challenges before it:

• Protecting brokerage yield in a highly competitive industry,

• Regulatory risk which could impact the earning profile and bring structural changes in the
industry.
• Continued upgrading of the risk management systems and monitoring policies to mitigate the
associated risks especially during the periods of extreme
Market volatility.

• Maintaining flexible cost structure for protecting profitability in a market downturn.

Suggestions
India bulls should open there branches in the north-eastern region.
They should do some promotional campaigns.
They should provide tips to their investors via sms or mails
They should expand its reach through franchisee route
There should be a special advisory service for investors.

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Conclusion
The meteoric rise of the company in the past four years is really a source of inspiration for all of
us. We having done our summer internship at Indiabulls is really is a source of immense pleasure
for all of us that we are a part of such an immensely successful organization. For us things that
stands out is that three students after passing out from one of the premier engineering institutes
of the country resist the temptation of a lucrative job and choose to venture into a business in
which they did not have any prior experience and exposure. The most amazing thing is that the
company is doing very well and it has been profitable since it started operations. This teaches all
of us that the lack of experience and lack of resources is a small hurdle that can be overcome if
one has a valid business model and is willing to take risks. If the three promoters had taken the
risk the organization Indiabulls would not have been into existence.
Another great learning is of teamwork and how well Indiabulls has used the concept not only to
evolve but also succeed. It innovative idea of introducing a concept of relationship managers and
aggressive selling. It is an amazing fact that on average 250 accounts are opened daily in
Indiabulls all over India.

SUPPLEMENTRY:-

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Financial Snapshot of Indiabulls:-

(Rs. In mn)
09-10 08-09 07-09 06-07
Total income 3,447.54 4.032.80 6.286.69 4.466.14
Operation Expenses 278.14 308.97 432.30 616.06
Employee cost 1,335.72 1.11.06 10.54.13 10.059.78
Administration & 491.28 2.365.83 713.52 506.28
other expenses
EBITDA 1,342.40 241.94 4.086.74 2.284.02
Interest 190.80 194.53 156.91 141.45
Deprecation 212.16 242.22 212.11 144.39
PBT 939.44 (194.81) 3.717.72 1998.18
Tax 327.27 (65.98) 1.231.14 624.24
PAT 612.17 (128.83) 20486.58 1.373.94
Equity share capital 459.88 506.85 506.85 178.34

RESERVERS & 1,739.43 2360.25 3.087.45 3.013.29

surplus
Net worth 2.199.31 2.867.10 3.549.30 3.191.63
Basic EPS (rs)* 2.43 (0.53) 9.80 77.04
NPM(%) 17.76% -3.19% 39.55% 30.76%
RONW(%) 27.83% -4.49% 69.18% 43.05%

EPS for 2008-09 and 2007-08 has been computed on the basis of 253,426.989 fully paid up
equity shares of Rs. 2/- each whereas
EPS for 2006-07 has been computed on the basics of 17.834.099 fully paid p equity shares of Rs.
10/- each.

INDUSTRY RESEARCH REPORT BY ICRA

Industry Outlook: Neutral

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ICRA continues to maintain a neutral outlook on domestic brokerage houses on account of
inherent volatility in the capital markets and also on account of uncertainty on the outcome of
various impending structural changes in the industry which could have mixed implications for
brokerage houses.

ICRA has noted the profitability indicators during Q3F10 for most players in the segment, which
has shown some moderation over the previous sequential quarter. Nevertheless, the profitability
indicators remained comfortable compared to the Q3FY09.

Industry Update: Q3FY09-10

Operating environment remains comfortable in third quarter of FY10; though profitability

declines on a sequential basis.
Equity broking turnover at National Stock Exchange (NSE) and Bombay Stock Exchange (BSE),
combined, remained flat on sequential quarter on quarter basis but reported a 79% rise on year
on year basis.
Market proportion further shifts more in favor of Option trading; cash market trading proportion
continues to decline.
Overall average equity brokerage yields may have declined with larger proportion of option
trading volumes; yields likely to remain intact for respective segments namely cash, futures and
options.
Capital market remained conducive for initial public offerings (IPO) though not many IPOs
during the period.
No major opportunity for IPO funding during the quarter under review. Lending against
securities also remained subdued.
During Q3FY10, equity broking turnover remained flat on sequential quarter basis, while it
reported a 79% rise on year on year basis albeit on low base in Q3FY09. Nevertheless, average
daily turnover increased to Rs 983 billion in Q3FY10 from Rs 934 billion in Q2FY10 with lesser
number of trading days (61) during the quarter. While the trading volume in cash segment
declined by 16% during the quarter on q-o-q basis, trading volume in option segment grew by
14% during the quarter on q-o-q basis. On the other hand, trading volume in the future segment

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reported a marginal decline during the quarter. In-fact, trading volumes in the Options segment
has been on an increasing trend since FY09 and the option trading volumes accounted for 40% of
the total trading volumes on the Exchange houses in Q4FY10 compared to less than 10%
proportion during FY09. The proportion of trading in future segment remained steady at 39%
during Q4FY10 while the proportion of trading in the cash segment declined considerably to
22% from 26% in Q3FY10.
While the equity broking volumes have remained stable during the Q4FY09-10, a similar growth
is not reflected in the equity broking revenues of the brokerage houses on account of lower
average brokerage yields on option trades. On an average, yield on trading in options is 1 – 2
basis points while it is 3 – 4 basis points in the future segment and as high as 10 – 12 basis points
in the cash segment. Accordingly, ICRA believes the overall average brokerage yield to have
declined in Q3FY09-10, however, average yields in the respective segment may not have
declined significantly during the quarter.

Work values in India bulls

In India bulls the working environment is very healthy. People are very much co operative and
the whole group of employees work as a team. The relation between the superiors and sub-
ordinate authority is very casual, which brings synergy in the work environment.

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But sometimes conflict is created in the minds of RM’s, as they as put under ethical dilemma.
The conflict arises due to the pressure of achieving the timely targets.
In the area of discipline India bulls is very strict and it also implies it to the employees to follow
the code of conduct of the company i.e. wearing of formal dress, coming on time, reporting the
seniors etc.

REFERRENCES:-

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 • www.indiabulls.com
• www.nse.com
• www.bse.com
• www.moneycontrol.com
BOOKS:-
• Annual report of indiabulls
• Fundamentals of strategic management
• Organizational Behaviour

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