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), -----------(Manager- Finance) and --------------------------(Officer-

Finance) 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 confidence to communicate with people in a professional

manner.

It has given me a chance to apply certain accounting principles and

techniques in real world business situations and to apply theory 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 being a student in a Management Institute to a position of

responsibility in the corporate world will be much more smooth and

confident.

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TABLE OF CONTENTS

Contents Page No .

Abstract 3

Introduction to Anand Rathi Financial Services Ltd. 5

o Vision 5

o Milestones 6

o Services Provided by Company 7

o Clients 10o Competitors

11o Management Team 12

Objective of the Study 15

SWOT Analysis of the Company 16

Finance Department 17

My Role 17

On The Job Training 18

o Introduction & Need of study 19

o Objectives of the study 20

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Project 21o Data Collection

22o Analysis & Interpretation

22 Conclusion 26

Suggestions 27

Bibliography 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 full-service 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,

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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

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 businessesRetail 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 croresInsurance broking launchedLaunch of Wealth Management services in DubaiRetail Branch network exceeds 50

2004: Commodities brokerage and real estate services introducedWealth Management assets cross Rs3000croresInstitutional equities business relaunched and senior research team put in placeRetail Branch network expands across 100 locations within India

2005: Real Estate Private Equity Fund Launched Retail Branch network expands across 200 locations within India

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 pollRanked 6th in FY2006 for All India Broker Performance in equity distribution in

 

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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.

 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:

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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 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 :

Risk Management

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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 Finance Compliance Settlement Accounts Operations HR/Administration

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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 money-market mutual funds to complex arbitrage strategies in the equities or commodities markets.

Client List ACC Bayer Century Textiles Clariant CRISIL Crompton Greaves Dabur Datamatics GE Shipping Godrej Goodlass Nerolac Grasim Gujarat Abuja Cements

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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

Wartsila

Competitors of Anand Rathi overall India

Company Name Total

Terminals

Sub Brokers

No.of Employee

s

Number of

Branches

City

A S Stock Broking & Management Private Limited

15 NA 25 2 Mumbai

Action Financial Services (India) Limited

18 25 31 10 Mumbai

Alankit Assignments Limited 650 60 700 20New Delhi

Anagram Securities Limited 999 964 1183 139 Mumbai

Angel Broking Limited 5081 2408 1800 66 Mumbai

Anush Shares & Securities Private Limited

37 10 40 30 Chennai

Arcadia Share & Stock Brokers Private Limited

191 121 150 60 Mumbai

Arch Finance Limited 16 NA 45 10New Delhi

Zuari Investments Limited 31 NA 50 15New Delhi

skyes & Ray Equities (India) Limited

18 300 50 250 Mumbai

SKI Capital Services Limited 88 NA 60 18New Delhi

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Bonanza Portfolio Limited 2177 536 1200 380 Delhi

UTI Securities Limited 270 150 575 35 Mumbai

India Infoline Limited 970 NA 3858 540 Mumbai

Indiabulls Securities Limited 2700 NA 8922 475New Delhi

Bonanza Portfolio Limited 2177 536 1200 380 Delhi

IL&FS Investmart Securities Limited

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 full-service 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, 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

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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

Mr. Rajkumar Jain(Regional Director)

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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– Vaishali Nagar Branch– Vidhyadhar Nagar Branch– Shyam Nagar Branch – Kota Branch– Ajmer Branch– Sikar Branch– Tonk Road– Kishangarh

REGIONALOFFICE

Mr. Rajkumar Jain(Regional Director)

CLUSTER-1Rest of RajasthanMr. Amit Mehta(Cluster Head)

CLUSTER-2Udaipur

Mr. K. C. Pandya(Cluster Head)

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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.

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.

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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.

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:-

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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.

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.

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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.

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.

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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.

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.

Sample Size - 120Sample Area - 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

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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.

Co-relation between Education and Cost

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Qualification Below Sr. Secondary

Under Graduate Above Graduate

X 24 60 36Y 45 32 23

X= Total no. of employees

Y=Cost in %

Qualification X(Total no.

of

employees)

Y(Cost

in %)

dX=

(X-

A)

dY=

(Y-

B)

dX2 dY2 dXdY

Below S.Sec. 24 45 -16 12 256 144 -192

Under

Graduate

60 32 20 -1 400 1 -20

Above

Graduate

36 23 -4 -10 16 100 40

N=3 X

=120

Y

=100

dX

=0

dY

=1

dX2

=672

dY2

=245

dXd

Y

=-172

Solution: -N=3, X=120, 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

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B=Assumed mean for Y series = 33

The coefficient of correlation is given by

r = N dXdY- dX dY

N dX2-( dX)2 N dY2-( dY)2

Substituting the values in the formula,

r = 3 (-172) – (0*1)

3(672)-(0)2 3(245)-(1)2

r = -516

44.9* 27.09

r = -0.4240

There is medium degree of negative correlation between Education and Cost.

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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.

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

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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

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.

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BIBLIOGRAPHY

www.rathi.com

http:// intra.rathi.com

Monthly Cost Sheets

Employee Data from HR Department

Quantitative Methods (ICFAI Publications)

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