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ACKNOWLEDGEMENT
First and foremost, I thank the Lord Almighty for his perpetual showers of blessings, which led to the success of my Organizational Study.
I take this opportunity to express my deep sense of gratitude to all those who have helped me throughout this organizational study. It gives us immense pleasure to acknowledge all those who have rendered encouragement and support for the successful completion of this work.
I would like to convey my heartfelt thanks to Mr Davis (Senior H R Manager, Geojit BNP Paribas) for his guidance and valuable suggestions during the course of my Organizational Study. I make use of this opportunity to express my heartfelt gratitude to Mr. M Balachandran (Vice President, Credits, Geojit BNP Paribas for providing me all facilities for making my Organizational Study a successful one.
It is indeed a pleasure to express my sincere thanks to Mr Sabu M. Nair and Mrs. Smarty Mukundan for giving me proper direction and suggestions. I extend my sincere thanks to Dr P A Mathew, The Dean and Director Fisat Business School.
Finally, I wish to express my wholehearted thanks to my parents, friends and well wishers who extended their help in one way or other in the preparation of my OS report.
2
DECLARATION
I hereby declare that this project report entitled Organizational Study ” A
ORGANIZATIONAL STUDY OF GEOJIT BNP PARIBAS FINANCIAL
SERVICES LIMITED” is a record of bona-fide work done by me in
GEOJIT BNP PARIBAS FINANCIAL SERVICES Ltd, KALOOR during
the year “03/06/11 to 03/07/11” under the supervision of Mr. DAVIS PAUL
(SENIOR H R MANAGER), GEOJIT BNP PARIBAS and Mr. SABU M
NAIR( FACULTY) FISAT Business School , and that no part of this report
has formed the basis for award of any degree, diploma, associate ship,
fellowship or any other similar title or recognition in any other institution.
Hormis Nagar 13.07.2011 Indu R
3
TABLE OF CONTENTS
Sl. No. CONTENT PAGE NO.
Chapter – 1 STOCK MARKET INDUSTRY 7
1.1 THE GLOBAL SCENARIO 8
1.2 THE INDIAN SCENARIO 9
Chapter – 2 GEOJIT BNP PARIBAS – PROFILE 14
2.1 INTRODUCTION 15
2.2 EVOLUTION OF THE COMPANY 16
2.3 OBJECTIVES OF THE COMPANY 17
2.4 VISION 17
2.5 VALUES AND BELIEFS 18
2.6 PROFILE DETAILES OF GEOJIT 18
2.7 PRODUCTS & SERVICES SUMMARY 19
2.8 MILESTONS 19
2.9 OVERSEAS & JOINT VENTURE 22
2.10 BOARD OF DIRECTORS 23
2.11 MANAGEMENT 24
Chapter-3 FUNCTIONAL DEPARTMENTS OF GEOJIT BNP PARIBAS
36
3.1 ORGANIZATION STRUCTURE 37
3.2 HUMAN RESOURCES DEPARTMENT 40
3.3 OPERATIONS DEPARTMENT 52
4
3.4 MARKETING DEPARTMENT 62
3.5 FINANCE DEPARTMENT 68
Chapter-4 SWOT ANALYSIS 78
Chapter -5FINDINGS, SUGGESTIONS & CONCLUSION
82
5.1 FINDINGS 83
5.2 SUGEESTIONS 84
5.3 CONCLUSION 85
6 BIBILIOGRAPHY 86
7 APPENDICES 87
5
LIST OF FIGURES/GRPAHS/CHARTS
SL. NO. CONTENTSPAGE
NO.
3.1(a) ORGANIZATIONAL CHART 37
3.2(a) NO.OF OFFICES 42
3.2(b) NO. OF EMPLOYEES 42
3..2(c) HRM DEPARTMENT STRUCTURAL HIERARCHY 43
3.2(d) SALARY STRUCTURE 49
3.3(a) CLEARING DEPARTMENT STRUCTURAL HIERARCHY 55
3.3(b)COMPLIANCE DEPARTMENT STRUCTURAL HIERARCHY
57
3.3(c)COMMODITY DEPARTMENT STRUCTURAL HIERARCHY
59
3.3(d)DEPOSITORY DEPARTMENT STRUCTURAL HIERARCHY
61
3.4(a) DELIVERY BASED VOLUMES 65
3.4(b) INTRA DAY VOLUMES 65
3.4(c)MARKETING DEPARTMENT STRUCTURAL HIERARCHY
67
3.5(a) FINANCE DEPARTMENT STRUCTURAL HIERARCHY 71
3.5(b) NETWORTH GRAPH 72
3.5(c) FINANCIAL SUMMARY TABLE 73
3.5(d) BALANCE SHEET 74
3.5(e) PROFIT & LOSS STATEMENT 75
3.5(f) CASH FLOW STATEMENT 76
3.5(g) RATIOS TABLE 77
6
Chapter – 1
STOCK MARKET
7
1.1 GLOBAL SCENARIO
The financial sector is in a process of rapid transformation.
Reforms are continuing globally as part of the overall structural reforms aimed
at improving the productivity and efficiency of the economy in the highly
competitive world. The role of an integrated financial infrastructure is to
stimulate and sustain economic growth. The US$ 28 billion Indian financial
sector has grown at around 15 per cent and has displayed stability for the last
several years, even when other markets in the Asian region were facing a crisis.
This stability has come through the resilience that the In-country system and the
finance companies have built over these years. The financial sector has kept
pace with the growing needs of corporate and other borrowers. Banks, capital
market participants and insurers have developed a wide range of products and
services to suit varied customer requirements.
The financial services industry is in a period of transition globally. Regular
market shifts, fierce competition, and technological developments are ushering
in unprecedented changes in the global financial services industry.
Organizations in this highly competitive and increasingly regulated industry will
especially need to focus on making themselves more:
• Adept to face increasing transaction volumes, regulation and the integration of
previously disparate global markets
• Agile at identifying and managing risk
• Optimized in both business & technology, operationally efficient
8
1.2 INDIAN SCENARIO
FINANANCIAL SERVICE IN INDIA
In last few years, India has emerged as the one of the most
rapidly growing economies in the world. India has been categorized with
national like Brazil, Russia, and China (BRIC Nations) who are going to the
prime drives of the world economy in the next few decades. Since the time,
India first opened its gates to foreign investment (FDI &FII) there has been a
complete turnaround. Now the traditional Hindu rate of growth is a thing of past
and clocking 8% to 9% GDP growth rate is the common norm. India along with
other Asian power house china makes for the fastest growing nations in the
entire world.
Even if we taking the case of ongoing global recession India has
managed to perform far better than other nations. Right from banking system to
financial regularities, the country has thrived on discipline and out-performance.
The booming Indian economy resulted in widespread growth and arrival of new
industries, the most sparkling phenomenon is in form of financial market of
India.
Financial service in India has taken a giant leap from the days of
standing in the banks queue for several hours for opening a savings account or
trying to get some fixed deposits (FD) done. The financial services have
increased manifold and now people have the choice to choose the most suitably
fits the bill.
There are several services like broking firms, investment
services, financial consulting, evergreen national banks, numerous private
banks, mutual funds, car and home loans, equity market and other banking 9
services. Services are many and offered by blue chip names of the industry.
Most of the companies in financial segment offer taxation services, project
consultancy services and all the services of wide financial gamut.
Whether it ‘s taking a car loan or booking your favorite house ,
going for pension plan or getting your child insured, numerous attractive
financial services are available at affordable cost. Personal banking services
have acquired an altogether new meaning. Now customers have multiple choices
to choose from. One can find all the financial services on the internet that are
just a call away.
Geojit BNP Paribas today is a leading retail financial services company in India.
Financial service industry is a part of stock market. Financial service industry is
a part of stock market. Financial service industry along with capital has a very
long history in India.
1.2(2) INDIAN STOCK MARKET
The India stock and invest market is mainly divided into 2 parts,
namely the capital market and the money market. The stock market is an
important part of the capital market in the country through which one can carry
out the transaction of capital. It is usually done through the means of direct
financing through the use of security and investment. The investment market can
further be sub divided into the primary and secondary market.
1.2(3) FEATURES OF THE PRIMARY MARKET
In case of the primary market, the listed shares are traded for the
first time which is transferred to the investors from the listed company. In case
10
of primary market, the stock issuers and the listed companies make use of the
capital by offering the stocks to the investors. The investors in turn, buy shares
and supply the needed capital. In simple terms, the primary market is a type of
platform where new securities and stocks are deal with. The primary market can
be an ideal source funding for various business enterprises and companies,
public sector units and government organizations. All the organizations can
make the funding by selling new bonds, stocks and other forms of securities.
The buying and selling of the securities are sold to the investors, I am known as
initial public offering (IPO). In the most cases, the dealers who carry out the
process get a sum of money in the form of a commission. The terms and
conditions of the commission are based on the price offering of the securities.
1.2(4) FEATURES OF SECONDARY MARKET
An important part of the Indian stock and investment market is
the secondary market. In simply terms, it is also known as the stock market.
Mainly it is the secondary market. In simple terms, it is also known as the stock
market. Mainly it is a type of continuous market which offer very good platform
for trading and business of securities and stocks. In the most cases, the trading
has to be done through a licensed broker, stock and securities units, security
firms and other financial institutions.
There are two main stock exchanges in India which operate the
bulk of the share and security trading. They are:
BOMBAI STOCK EXCHANGE
11
NATIONAL STOCK EXCHANGE
BOMBAY STOCK EXCHANGE
The Bombay Stock Exchange (BSE),also known as the oldest
stock exchanges in Asia and is credited with the operation of the most number of
listed companies in the world. Incepted in the year 1875, it has a listing of more
than 4,700 companies. It is located in Dalal Street area of the city of Mumbai,
the financial capital of India.
The BSE is owned by the Bombay Stock Exchange Limited and
has a market cap amount of around US&1.1 trillion whole the volume of the
stock exchange is around US& 980 billion. The currency type which is dealt in
the BSE is Indian National Rupees (INR). The index on which the stock
exchange operates is the BSE SENSEX, also referred to as sensitive index. The
sensex is popularly known as BSE 30.
To cater the customers, the Bombay Stock Exchange offers a number of
facilities and services. They are:
BSE Investor Services
BSE On-Line (BLOT)
On-Line Surveillance System (BOSS)
BSEWEBX.Com, BSE Online trading site
BSE Trading Institute for various certification programs
12
The BSE has also been awarded a number of prestigious awards for its service
towards the economy of India. They are:
The ICAI financial reporting award
The Asia – Pacific HRM employer branding awards
The Golden Peacock Global Corporate Social Responsibility (CSR)
Award
(b) NATIONAL STOCK EXCHANGE
The National Stock Exchange of India, also referred to as NSE is also located
in Mumbai. It is the largest exchange in India in terms of the number of trades
and the daily turnover. The capitalization amount of NSE amounts to Rs 47,
01,923 corers. According to the economist experts, it is expected to become the
largest stock by the end of the year 2009. The key index of the NSE is known as
S&P CNX Nifty and is based on INR. The NSE has around 2799 VAST
terminals covered around 1500 cities.
13
Chapter – 2
GEOJIT BNP PARIBAS FINANCIAL SERVICES LTD – PROFILE
14
2.1 INTRODUCTION
Geojit BNP Paribas today is a leading retail financial services company in India
with a growing presence in the Middle East. The company rides on its rich
experience in the capital market to offer its clients a wide portfolio of saving and
investment solutions. The gamut of value added products and services offered
ranges from equities and derivatives to Mutual Funds, Life &General Insurance
and third party fixed Deposits. The needs of over 495,000 clients are met via
multichannel services – a countrywide network of over 600 offices, phone
services, dedicated Customer Care and the internet.
Geojit BNP Paribas has membership in, and is listed on, the National
Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). In 2007, global
banking major BNP Paribas joined the company’s other major shareholders –
Mr. George, KSIDC (Kerala State Industrial Development Corporation) and Mr.
Rakesh
Now Geojit BNP Paribas is the pioneer in online trading in India. It is a
public undertaking company that offers a wide range of trading and investment
products and solutions. There are more than 3000 employees in the company at
present playing vital role in the growth of the company.
15
2.2 EVOLUTION OF THE COMPANY
It all started in the year 1987 when Mr. C J George and Mr. Ranjit Kanjilal
founded Geogit as a partnership firm. In 1993 Mr. Ranjit Kanjilal retired from
the firm and Geojit became the proprietary concern of Mr. C J George. In 1994,
it became a Public Limited Company named Geojit Securities Ltd. The Kerala
State Industrial Development Corporation Ltd (KSIDCO), in 1995, became a co-
promoter of Geojit by acquiring a 24 % stake in the company, the only instance
in India of a government entity participating in the equity of a stock broking
company. The year 1995 also saw Geojit being listed on the leading regional
stock exchanges. Geojit listed at the Stock Exchange, Mumbai (BSE) in the year
2000.Company’s wholly owned subsidiary, Geojit Commodities Limited,
launched online features trading in agro- commodities, precious metals and
energy futures on multiple commodity exchange in 2003. This was also the year
when the company was renamed as Geojit Financial Service Ltd (GFSL). The
Board consists of Professional directors; including Kerala Government nominee.
With the effect from July 2005, the company is also listed at the National
Stock Exchange (NSE). Company is a charter member of the Financial Planning
Standards Board of India and is one of the largest Depository Participant (DP)
brokers in the country. On 31 December 2007, the company closed its
commodities business and surrendered its membership in the various commodity
exchanges held by Geojit Commodities Ltd. In 2007 the global banking major
BNP Paribas took a stake to become the single largest shareholder.
16
Joint Ventures In The Middle East
Barjeel Geojit Securities the joint venture with the AI Saud group in the United
Arab Emirates that is headquartered in Dubai with the branches in Abu Dhabi,
Ras Al Khaimah Sharjah and Muscat.Aloula Geojit Brokerage Company
headquartered in Riyadh with the Al Johar group in Saudi Arabia.Business
partnership with the Bank of Bahrain and Kuwait.
2.3 OBJECTIVES OF THE COMPANY
As a financial services company, Geojit BNP Paribas has always focused on
being ahead of the curve, sustained by its commitment to values such as
transparency, heightened efficiency and better investor relations. To this day, the
company works hard to be the first to make technology-enhanced investment
platforms available to investors while also focusing on increasing awareness on
capital markets and investment methods. Geojit BNP Paribas is also looking at
branch expansion
2.4VISIONThe vision of Geojit is to be leading financial and commodities market
intermediary for individuals and institutional clients from India band overseas.
They continually strive to raise their products and service standards by
intelligent application of technology and processes.
2.5VALUES AND BELIEFS
They understand and respect customer’s needs to consistently deliver total
quality solutions through constant skills up gradation
They believe that the company culture helps to attract and retain the best talents.
17
They are committed to achieve profitable progress consistently.
They freely share their investment experience across all ages and strata of
society to encourage wise investment for better future.
2.6More Profile Details of Geojit BNP Paribas
Type Public
Industry Finance
Founded 1987
Headquarters Kochi, Kerala, India
Products Equities, Derivatives, Currency Futures, Internet
Management Services, Custody Accounts, Mutual
Funds, IPOs, Life Insurance, Margin Funding, Loans
Against Margin Funding, Loans against shares etc
Revenue Rs 237 corers
Employees 3500
Website www.geojitbnpparibas.com
18
.2.7. PRODUCTS AND SERVICES (summary)
Equities
Derivatives
Currency Future
DP Accounts
Distribution of Mutual Funds
Life insurance
Loans General Insurance & IPOs
Portfolio Management Services
Property Services
Margin Funding
Home loans
Offices
The network of over 500 offices across 300 cities and towns presently covers
Andhra Pradesh, Bihar, Goa, Gujarat, Haryana, Jammu & Kashmir, Karnataka,
Kerala, Madhya Pradesh, New Delhi, Orissa, Punjab, Rajasthan, Tamil Nadu,
Pondicherry, Uttar Pradesh, Uttaranchal, and West Bengal
2.8 Milestones
1986 Membership in Cochin Stock Exchange (CSE)1994 Becomes a
Public Limited Company named Geojit Securities Ltd
1995 Kerala State Industrial Development Corporation Ltd (KSIDC)
acquires 24 percent equity stake
Membership in National Stock Exchange (NSE)19
Public issue
1996 Launch of Portfolio Management Service with SEBI
REGISTRATION
1997 Depository Participant (DP) under National Securities Depository
Limited
1999 Membership in Bombay Stock Exchange (BSE)
2000 BSE Listing
1st broking firm in India offer online trading facility
Commences Derivative Trading with NSE
Integrates the 1st BANK Payment Gateway in the country for Internet
2001 Becomes India’s first DP to launch depository transaction through
internet trading
2002 1st India to launch an integrated internet trading system for cash &
Derivative segments
2003Geojit Commodities Limited, wholly owned subsidiary , launched
Online Future Trading in agric- commodities, precious metals and in
energy futures on multiple commodity exchanges. National launch for
future trading in Rubber, Pepper, Gold, Wheat and Rice
Company renamed as Geojit Financial Service Ltd
2004 National launch of online future trading in Cardamom
2005 NSE Listing
Geojit Credits a subsidiary, register with RBI as a Non-Banking Financial
Company (NBFC)
National launch of online futures trading in coffee
2006 Charter member of the Financial Planning Standard Board of
India2007 BNP Paribas takes a stake in the company’s equity, making it
the single largest shareholder Establishes Joint Venture in Saudi Arabia to
20
serve the Saudi national and the NRI2008 BNP Paribas Securities India
(P) Ltd – a Joint Ventures with BNP Paribas S.A for institutional
clients2009 Launch of online trading in currency Derivatives Consequent
to BNP Paribas becoming the largest stakeholder Geojit Financial
Service Ltd
Launch of Exchange traded UTI Mutual Funds
Subsidiary Companies
Geojit Credits (p) Ltd. Registered with the Reserve Bank of India as a non
banking Finance Company is in the business of providing loans and advances to
clients participating in the Capital and Commodity markets. The company
provides loans against security of shares and Warehouse receipts. The company
does not accept deposits from the public.
Geojit Technologies (P) Ltd is a software company. BNP Paribas has
taken 35% stake in the company. BNP Paribas Personal Investors is
extensively using Geojit Technologies for IT development.
Geojit Financial Distribution (P)Ltd
Geojit Finance Management Service (P) Ltd
Geojit Investment Service Ltd
Sigma systems International FZ LLC
21
2.9 Overseas Joint Ventures
Barjeel Geojit Securities, LLC,Dubai is Geojit BNP Paribas joint venture
with the Al Saud Group belonging to Sultan bin Saud Qassemi has diversified
interest in the areas of equity markets, real estate and trading.
Barjeel Geojit is a financial intermediary and the first Indian licensed brokerage
company in UAE.
It has facilities for off-line and trading in the Indian capital market and also in
US, European and International Funds. An associate company, Global Financial
Investments S.A.O.G provides similar services in Oman.
Aloula Geojit Brokerage Company is Geojit BNP Paribas joint venture in Saudi
Arabia with the Al Johar Group. The company enables both the Saudi national
and NRI to invest in the Saudi capital market.
The NRI’s can also invest in the Indian stock market and in Indian mutual funds.
This joint venture makes Geojit BNP Paribas the first Indian stock broking
company to commence domestic retail operations in any foreign retail stock
broker to start domestic retail operations in the Kingdom. The company
executed its first trade on the Saudi Stock Exchange on November 10.
22
2.10 BOARD OF DIRECTORS
Name Designation
Mr. C. J George Managing Director
Mr. Satish Menon Director (Operations)
Mr. A. Balkrishnan Chief Technology Officer
Mr. K Venkitesh National Head – Distribution
Mr Martin Zachmeier Director (Planning and Control)
Mrs Jaya Jacob Alexander Chief of Human Resource
Mr A. P. Kurian Non – Executive & Independent
Chairman
Mr C j George Managing Director & Chief
Promoter
Mr.Alkeshkumar Non – Executive & Independent
Director
Mr Mahesh Vyas Non – Executive & Independent
Di Director
Mr Ramanathan Bupathy Non – Executive & Independent
Mr Olivier Le Grand Non- Executive Director
Mr Pierre Roussean Non – Executive Director
23
2.11 MANAGEMENT
Name Designation
Mr. C. J. George Managing Director
Mr. Satish Menon Executive Director
Mr. A. Balakrishnan Chief Technology Officer
Mr. Martin Zachmeier Director (Planning and Control)
Mr. Binoy .V.Samuel Chief Financial Officer
Mrs. Jaya Jacob Alexander
Chief of Human Resources
2.12 PRODUCT PROFILE24
(a)Broking or Trading
Broking industry is one of the fastest growing changing service industries. To a
great extend changes industry is caused and supported by developments in the
communication system.
Changes that took place in this industry over the last 5years where dramatic.
There had shift in the model of trading to one line trading and to internet trading
and shift from world of paper certificates and related difficulties lead to Demat
trading. The greatest change that took place in the industry was phenomenal
change in the concept of stock exchange. The stock exchanges which were
limited to few specific enters got vanished and concept of stock exchange
become “ nowhere but everywhere” through the introduction of X- SAT
connected terminals.
These changes have helped the exchange to perform changes takes its basic
functions of creating liquidity in a much better fashion. When teasing position
place it had the following impacts in the industry.
The number of trade’s volume increased.
The new industry came with confidence and trust of the system.
Immediate transfer and registration of securities
Improvement of the system efficiency and popularity of speculative trading
By the introduction of new registration and regulations, manipulation and
malpractices become controlled and transparency increased
A positive change in the attitude of regularity authorities especially SEBI will
lead to a new initiative and changes in the market.
(b) Depository
25
A depository can be compared to a bank. It holds securities, units etc of
investors in electronic form. These are two depositories in India. The National
Securities Depository Limited (NSDL) and central depository Service Limited
(CDSL). An individual who desires to avail the depository brokers or any other
entity eligible as per SEBI Regulations, 1996 can apply to the Depository to
become a Depository Participant. As on 31ST December, 2005 there were 221
Depository participants in India.
Geojit is a depository participant of NSDL. Investors can open demat accounts
with NSDL through Geojit. One can approach the nearest branch of Geojit for
opening an account. Agreement charges along with the Annual Maintenance
charge (AMC) are collected upfront while opening an account. It takes two to
three days to open a demat account. Upon activation of the demat account, a
Welcome letter is sent to the customers along with the Delivery Instruction Slip
book.
The operation carried out at depository section is opening and dematerialization.
For a customer to deal with Geojit he must open the depository account. Along
with filling the application form he must attach substantial proof for address and
photo. These application form along with computer entered data is send to head
office where the client ID (8 DIGITS) is issued. After the issue of client ID and
head office update it, the account become active. Using this account the
customer cash hold his shares and dematerialization can take place only if the
customer has client ID.
26
Dematerialization is the process of conversion of physical share certificate into
electronic form. For the purpose demat the customer has to fill an application
which is issued in 3 copies. One copy is retained with the customer next with the
head office and another with the head office and another with the share send to
the company. If the company is convinced then the company will demat and sent
to the broker. If there is mismatch of signature the company will send it back
and ask them to resubmit with bank manager’s attestation. In case of change in
order of the names a transposition form has to be attached.
DP Facility offered by Geojit
1De- materialization
You can convert your physical shares into electronic form by surrendering
the shares for dematerialization at the Geojit branch.
2. Re- materialization
It enables you to convert the dematerialized shares into physical form
3. Repurchase
This facility helps you to submit the units of open ended mutual funds in
case of repurchase.
4. Pledge
You can pledge securities to avail a loan
5. Transfer
You can transfer securities from one demat account to another
27
6. IPO’s
In case you have applied for an IPO and receive an allotment then the
securities are transferred directly to your demat account. The sample applies for
bonus and right issues.
7. Commodity demat account
If you are a commodity player, you may need to open a commodity demat
account with Geojit.
8. Speed- e
If you register for speed – e services, then transfer instruction should be
placed online over the internet to pre notified Clearing Members Pool account.
This does away the need to submit a physical delivery instruction slip.
(c) Margin Trading Funding
Geojit financial service Ltd. Offers Margin Trading Funding facility to all
offline customers under the scheme of margin funding approved by SEBI.
Key features of the scheme are as follows.
All securities defined under group 1 of NSE are eligible for margin funding.
No processing fees.
Easy and prompt account opening formalities.
Margin funding of up to 50% of the purchase value.
28
Share purchased are credited to customers demat account maintained
specifically for the purpose of margin trading. Bonus and rights are also directly
credited to the customers demat account.
Margin calls are made if there is a fall of 105% in the margin funded
portfolio. Margins can be replenished by cheque or by transferring funds
from normal trading account.
Liquidation if margins can be replenished by cheque or by transferring
funds from normal trading account.
Interest rate is 18% per annum.
No limit on time up to which he can keep the position open
Purchase can be made only against clear funds.
Margin trading is permitted only in NSE
(d) Registration Procedure
Currently customers who have an off line trading account with Geojit
Financial Services can avail the margin trading funding facility. Clients for
margin trading funding scheme are required to complete / provide the
documents charges for opening the margin trading funding account.
a. Margin trading agreement
.b.Separate demat account to be opened for the purpose
C. POA to be issued in favors of Geojit Financial Service Ltd. To operate
the said demat account.
D .Authorization to Geojit’s DP to debit demats account for shares sold.
e. Undertaking that MTFS has been availed of only from one broker.
f. Authorization letter to transfer funds from / to MTF ledger.
29
(e) Portfolio Management
Geojit a SEBI registered portfolio manager (Reg. No. INP000000316) offers
discretionary portfolio management services. Geojit has a team of experts
who carefully take investment decisions based on the client’s objectives. The
portfolio management team has a successful track record of more than 10
years in the capital market. The team has access to Geojit’s strong equity
research and fundamental & technical analysis.
(f) Investment Objective
To generate medium to long term capital growth (2-3 years) by identifying
undervalued stocks and those with growth opportunities from a select list of well
researched stocks.
(g) Strategy
Identifying growth stocks from a select a list through extensive research.
(h) Minimum investment
Rs 10lakhs for resident Indians and Rs 25 lakhs for non- resident Indians.
(i) Reports
Portfolio and NAV are communicated bi- weekly via e- mail.
30
(j) Risk factors
As the stocks are normally geld for medium to long term the net asset value will
be affected by market volatility.
Performance fee
20% on gain in NAV over and above 12% per annum based on the high
watermark concept charged at the end of the tear or on withdrawal.
(k) Distribution
Geojit undertakes the distribution of variety of financial instruments such as
mutual funds, bonds, life insurance products, fixed deposits etc. The wealth
centre team understands the universe of investment options analyses the risk and
return from these options and recommends investment options to clients to help
them to achieve their financial goals
Geojit has a tie up with all the mutual funds across the country. Geojit offers life
insurance products of the following life insurance companies.
Geojit has tie up with the mutual funds across the country. Geojit offers life
insurance products of the following life insurance companies:
MetLife India Life Insurance Company
LIC of India
ICICI Prudential
For general insurance, Geojit has partnered with the following Bajaj Allianz
Insurance Company
31
National Insurance Company Ltd
Geojit also helps its customers in investing in 8%RBI taxable bonds, Capital
gain bonds ( Sec 54 EC bonds). Fixed deposits (KPFC) etc through its tie – up
with the required registrations.
Research
Geojit has a team of experts who track the market and related events very
closely .Sophisticated tools are used for technical analysis research to offer
recommendations. Technical analysis and Geojit Research team brings to table,
information that helps you profit it.
Daily market view
Technical analysis – market, a daily report on market gives
(l) Mutual funds
A mutual fund is trust that pools the savings of a number of investors who share
a common financial goal. The money thus collected is then invested in capital
market instruments such as scares, debentures and other securities. The income
earned through these investments and the capital appreciation realized are shared
by its unit holders in proportion to the number of nits hold by them.
Mutual funds extract the money of people having same investment aims. The
money invested in shares of various sectors according to investment policies.
The dividend will be collected and divided among the investors according to the
proportion of their investment. The investment is made according to experts
opinion and in such a way loss in investment made in one sector is covered by a
32
profit on investment made in another sector. The funds whole amount collected
through mutual funds are usually riot invested in the same sector; .
Mutual funds are either open ended or closed ended. Open ended mutual funds
are open for investors and redemption. Closed ended mutual funds are not
redeemable at local market. The mutual fund will be redeemed directly by the
company after a fixed period of time. In case of open ended schemes units can
be sold or purchased at Net Asset Value (NAV) based price on all business days.
Advantage of investing in mutual fund:
a. Professional management
b. Diversification
c. Convenient administration
d. Return potential
e. Low costs
f. Liquidity
g. Transparency
h. Flexibility
i. Choice of schemes
j. Tax benefits
k. Well regulated
(m) Insurance
Geogit works as the corporate agent of LIC, ICICI, AMP Sanmar and MetLife. Insurance are classified into two. They are:
Life insurance
33
There are different types of Ife insurance. They are
Term insurance
It covers only the death of a person. It is not a savings policy. The premium will not be returned after the term of insurance.
Trop
If a trope is attached to the policy, the premium will be returned after the term cover. The premium will be higher compared to that of term insurance.
Endowment policy
It is a savings plus death cover policy. The term to the policy may be from 5 years to 30 years. The premium will be provide the insured amount if anything happens to the life of the person before expiry of the policy.
Rider
If a person attaches a rider to his policy, he will get extra amount for which the rider is attached. He will be benefited only if he dies in an accident.
(n)Housing loans
We can avail a housing loan for buying or constructing a home, extending an existing home to undertake improvements and renovations and even to buy a plot of land from Development Authorities.
The documents to be submitted along with the application
For new customers
Common for all applicants
• Allotment letter of the cp-operative society/association of apartment owners.
• Copy of approved drawings of proposed construction/renovation.
34
• Detailed cost estimate from architect/ engineer for the property to be constructed renovated.
• If you have been in your present employment or profession for less than a year, mention details of occupation for previous 5 years giving position held, reasons for changes and period of the same.
• Applicable processing fees.• Any other information regarding your repayment capacity that is necessary
and will assist HDFC in appraising the case.
a. Additionally,
If you are employed
• Latest salary slip/ salary certificate showing all details.
• If your job is transferable, permanent address where correspondence relating to the applications can be mailed
• A letter from your employer agreeing to deduct the monthly installments towards repayment of loan from your salary. This will expedite the processing of your loan application.
If you are self employed.
• Balance sheets and profit and loss account of the business or profession along with copies of Individual Income Tax Returns for the last 3 years certified by a chartered accountant.
• A note giving information on the nature of your business/ profession, form of organization, clients, suppliers etc.
1. For existing customers
• Detailed cost estimate from architect/engineer for the property to be constructed or renovated.
• Applicable processing fees.
35
Chapter-3
FUNCTIONAL DEPARTMENTS OF GEOJIT BNP PARIBAS FINANCIAL SERVICES LTD
36
3.1 ORGANIZATIONAL CHART
37
3.1(a) Organizational chart
3.1 DEPARTMENTS
An organization structure is the one where in it defines us how the job tasks are
formally I divided, grouped, and coordinated. There are six key elements that
managers need to address when they design their organizational structure.
Departmentalization stands one among them. We use the term work
specialization or division of labor to describe the degree to which the tasks in the
organization are subdivided into separate jobs. Once this process is completed
one need to group these jobs together so that common jobs can be coordinated.
The basis by which jobs are grouped together is called departmentalization.
Different departments are usually made in an organization for its smooth functioning. An organization consists mainly four functional, sub systems.
Personnel
Finance
Marketing
Operations/ productions
All these functional subsystems are interwoven by many linkages. They
cannot .function in isolation. A complete integration among all these
departments of an organization is absolutely essential for their effective
functioning and an overall improvement of results
In Geojit Financial Services Ltd., there are our major departments working. They are :-
38
1) Human Resource Department:-
Controlling and coordinating Human Resource in the organization.
2) Finance Department:-
For keeping the records of day to day transactions taking place in an organization
3) Operations Department:-
It includes Risk Management and clearing and settlement, compliance,
commodity, branch operations and depository so as to help in proper functioning
of each
Services rendered by the company
4) Marketing Department:-
This department deals with the selling of shares to the customers. The
order for a share is placed through online trading. This department also has the
responsibility of creating awareness about their products among their customers.
A study on departments is made and the various activities of these department,
the hierarchy and functions and duties of each individual are observed. The
observations are
noted in the following pages.
39
3.2 HUMAN RESOURCE DEPARTMENT
40
3.2(1) IMPORTANCE OF HUMAN FACTOR
Human beings are the assets of the organizations. It is a matter of common
knowledge not every business organizations depends for its effective
functioning not so much on its material or financial resources as on the pool of
able and willing human resources.
M.J Jucius defines Personnel management as" the field of management which
has to do with planning, organizing, controlling various operative activities of
procuring, developing, maintaining and utilizing labour force in order that the
objective and interest for which the company is established are attaining as
effectively and economically as possible and the objective and interest of all
levels of personnel and community are served to the higher degree".
(11)THE FUNCTIONS OF HR DEPARTMENT
Man power planning
Recruitment, selection and placement
Training and development
Employee performance appraisal and management
Workmen Category
Employ Welfare Activity
Disciplinary Proceedings
Statutory obligations(PF ESI &Others
41
42
3.2(a) No. of Offices
3.2(b) No of Employees
3.2(2) HUMAN RESOURCES AND
ADMINISTRATION
DEPARTMENT
HIERARCHY OF AUTHORITY
43
CHIEF H R
MANAGER HUMAN RESOURCES
ASSISTANT MANAGER
EXECUTIVES
MANAGER HUMAN RESOURCES
ASSISTANT MANAGER
EXECUTIVES
3.2(c) HRM Structural hierarchy
3.2 (3) DUTIES AND RESPONSIBILITIE
From the departmental structure it is clear that chief HR is ranked as the Head
Of the Department. He does the functioning of controlling and co- ordination of
the department.
The chief HR manages all the administrative and HR operations of the company.
He is assisted directly by a manager Human Resource & a manager
Administration.
The Manager HR does the following functions:-
• Recruitment
• Selection
• Placement
• Training .
• Performance Management
The Manager Administration looks up the following
functions:-
• Liaison with government
• House keeping
• Purchase decisions
• Stationary items
Both these managers are assisted by Assistant Managers who are responsible for :-
• Statutory obligations
• Salary administration44
• Leave management
Under each Assistant Managers there are two executives each who help them in
doing the above mentioned functions. It is the duty of executives to calculate the
PF, ESI. Gratuity and other Statutory Obligations.
1) RECRUITMENT
Recruitment is the process by which people are attracted to join jobs in anorganization. The vacancies that are generated through H.R. planning are filing
through this step.
Recruitment can be either internal or external. Internal recruitment is
synonymous with promotions or lateral movements within an organization,
where an existing employee is positioned in a different role. The common
sources of external recruitment are:-
1) Public notifications
2) Engaging of consultants or head hunters
3) Drawing upon the company ‘spool of resumes
4) Employment exchange
5) Employee referrals
6) Campus selections
The recruitment procedure taken by Geogit is given below: -
• Identification of vacancies
• Inviting applications45
• Scrutiny of application
• Written test
• Stage-1 interview
• Stage-2 interview
• Selection of candidates
• Induction
• Placement
There are some preferred criteria for the selection or hiring employees in Geojit.
The candidate should go through the screening and a tough course of
interviewing through various steps. In the case of branches', first the regional
manager will interview the candidate. After that the regional manager and then
officials from the head office will also would like an interactive session with the
candidate. Afterwards the A.G.M will also interview the candidate. The
selection will take place only if all of them are 100% satisfied.
Graduation is a must established criteria for applying for a career in
Geojit .previous experience and extra qualifications related to the post for which
they are applying is considered.
Nowadays Geojit prefer personnel with NCFM (national stock
exchange .certificate in-financial market) +GRADUATION or within six
months from entering the job they need to qualify for NCFM.
2) TRAINING AND DEVELOPMENT
Training and development is a subset of the broader Human Resource
development function. Training and development are H.R.D instruments.
Training is instructions provided for current job, whereas development is a
46
broader concept aimed at enhancing the potential of the individual which would
make him competent not just on the job he performs at present, but also makes
him ready for more challenging assignments.
Different factors adopted by Geojit in training are
• Training need identification
• Training schedule
• Identifying training methods &aids
• Training
• Feedback
• Result analysis
The-different training methods adopted by the company are:-
• In-house
• Induction training
• External
• Behavioral
• Technical
• Managerial
• Specific need based
Usually there is on the job training for the new entrants. Especially in fields like
insurance and share trading training is given while working. And there are
targets to achieve for the executives which are definitely very much achievable.
47
In the case of induction a new entrant is treated as a new born baby in a family.
This definitely shows the work culture and ethics in Geojit. in the lower level of
hierarchy also the executives are known as junior executive trainees.
(a) Grievance:
For any kind of grievance there is a special department in Geojit which
will take care of it. And also there are websites in which we can register our
complaints.
(b)Working hours:
The working days are from Monday to Friday and half days in Saturdays
and in public holidays offices are not working .the normal working time starts
from 8.30am to 5.30 pm, and in Saturdays it is from 10 to 1.
The reason for 8.30 am start is that as the market opens at 9, it will be very
difficult to get terminals at sharp 9. So if we logged in half an hour early the
rush can be avoided .and it is easy to get terminals.
Salary structure is based up on the hierarchical level as in any other
organisation. And for the employees crisp and perks as per the performances .so
performance appraisal is also part of the hard.
Promotion is strictly on the basis of experience as well as performance. The
promotion order for any new entrant will be like this
48
Junior executive trainee
Junior executive
Senior executive
Asst manager
Manager
Regional manager
State head
(c) Leave:
For the trainees there will be one leave in a month if needed, but it is not
recommended and for any executive .there are 12 casual leaves +12 sick leaves
+12 privilege leaves in every calendar year. Privilege leaves can be extended to
next year and we can observe that absenteeism is very low in Geojit.
49
3.2(d) Salary Structure
From the study, it is found that, the employees are highly satisfied by the way, in
which they have been treated. The new vacancies in Geojit are published
through the official website www.geojitbnpparibas.com.
3) WAGES &SALARY ADMINSTRATIQN
Wages and salary administration is the pay roll functions of any organization.
The scope extends from designing the pay structure to calculate the monthly
wage bill and actual payment of cash . The terms 'wage' and 'salary' are
synonyms, though 'wage' is usually associated with blue collar and daily rate
workers, whereas 'salary' is associated with remuneration given to white collar
and permanent staff.
The human resource department also deals with wage and salary administration.
The following duties are done by HR department considering salary
administration in Geogit.
• Salary fixation
• Monthly salary administration
• Increments
• Incentives
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4) EMPLOYEE WELFARE
The major social security and welfare schemes in India are the 'Employees State
Insurance' (E.S.I) and the 'Employees Provident Fund'(P.F). Geojit provides
both P.F and ESI benefits to all its employees. It is the duty of H.R department
to collect proper data regarding employees and calculate the ESI&PF for each
employee working there.
It is according to the ESI Act of 1948 the company calculates its ESI.
Hence
I the employer pays 4.75% of wage and the employee contributes l.'75% of his
wage to the fund.
Under PF calculation the organization pays 12% of wage and deducts
another 12% of from the employees wage. Withdrawal from the provident fund
scheme is allowed after the employee ceases work.
In addition to the ESI and PF Geojit also provides gratuity for those
permanent staff who are eligible for the same.
51
3.3 OPERATIONS DEPARTMENT
52
3.3(1) OPERATIONS DEPARTMENT
The past few decades have given-emphasis to operations functions mainly
because it is the important subsystem of an organization and is responsible for
customer satisfaction. As this department deals directly with customer
satisfaction the company requires careful policies and procedures to carry out
the activities under the operations department so that the services provided by
them must be of a specific quality.
The operations department of Geojit is again subdivided into five
according to the services they deal with. They are
5) Risk management & clearing and settlement
6) Compliance
7) Commodity
8) Branch operations
9) Depository
A study o each off these subdivision are made their hierarchy, function of each
official and the findings are noted in the coming pages
3.3(2) RISK MANAGEMENT & CLEARING AND
SETTLEMENT
This is one of the subdivisions of the operations department. As stated
earlier the operations departments are subdivided according to the functions they
perform. Hence it is this subdivision of operations department which deals with
the function of management of funds that arise from trading.
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Though buying and selling of shares take place daily in stock exchanges,
settlements of transactions is executed for a specified no: of days after clubbing
daily transactions for the entire period. This is known as settlements cycle. For
example the beginning of a new settlement is on Wednesday of every week in
N.S.E and it ends on next Tuesday.
So it is the duty of this subdivision of the operations department to keep
the records regarding transactions of each customer analyze whether he had
made all the transactions in a proper way or not. It is the duty-of this department
to check whether a person has paid the amount completely, if he had bought any
shares and also to check whether the person is paid completely if he had sold the
shares through Geojit.
The chief manager (Risk and settlement) stands up in the hierarchy of
the department and hence he is the head of the department. He controls and
coordinates all the functions of this subdivision. Risk management of funds (of
company and its branches) is one of the major functions. The chief manager is
assisted by the senior manager (clearing and settlement).
The senior manager (clearing and settlement) deals with the process of
buying and selling of shares and thereby maintaining proper funds. There is an
Asst.Manager under him who checks the B.S.E operations. The Asst.Manager is
assisted by three 'senior executives' further there are executives junior
executives and office assistants to help the top management.
A diagrammatic representation of the hierarchy of this departmental subdivision
is given on next page.
54
3.3(3) MANAGEMENT & CLEARNING & SETTLEMENT
55
ASSISTANT MANAGER
SENIOR EXECUTIVE
SENIOR EXECUTIVE
EXECUTIVES
CHIEF MANAGER(RISK)
SENIOR MANAGER(CLEARING & SETTLEMENT)
SENIOR EXECUTIVE
JUNIOR EXECUTIVES
OFFICE ASSISTANTS
3.3(a) Clearing Dep Structural hierarchy
3.3(4) COMPLIANCE
This sub division operations department deals with the statutory obligations with
Reference to SEBI and the company. The department is responsible for insuring
compliance with:-
• NSE circulars with respect to trading and settlements
• RBI circulars with reference to NRI operations
• Applicable portion of Income Tax Act
This department has got a senior Vice President (compliance)who
stands as the head of the department. He checks all the functioning of the sub
division. He is assisted by 'Chief Manager' compliance. Below him there are
Senior Executives, Executives and Junior Executives.
The hierarchy of this department is given in the next page.
56
3.3(5) COMPLAINCE DEPARTMENT
HIERARCHY OF AUTHORITY
57
SENIOR PRESIDENTCOMMODITY
CHIEF MANAGERCOMPLIANCE
SENIOR EXECUTIVE
EXECUTIVE
JUNIOR EXECUTIVE
3.3(b) Compliance Dep Structural hierarchy
3.3(6) COMMODITIES
Geogit offers commodity derivatives trading in coconut oil, rubber, pepper, gold
and silver. As derivatives trading are control based on any of the above
mentioned commodities, the owner of the contract is entitled to purchase a
specified quantity of asset on a future date at a predetermined price.
There are certain requirements for trading in future and the option segment
through Geogit. The customer will have to register himself as a client with
Geogit, and then he has to sign an agreement and follow some procedures as
stated by the company after being registered as a client the customer can
conduct trade.
It is this sub division of the operations department which deals with the trading
operations of the commodities like rubber, pepper, coconut oil, gold and silver. .
The Chief Manager commodity maintains and checks the commodity trading
operation of all branches.
The Chief Manager has to report to the Senior Vice President (commodity). His
duty is management and administration of the operations department. The Chief
Manager is assisted by two Assistant Managers of which one checks the trading
and other deals with managing risk. The Assistant Managers are reported by
Executives.
58
3.3(7) COMMODITY DEPARTMENT
HIERARCHY OF AUTHORITY
59
SENIOR VICEPRESIDENT
COMMODITY
CHIEF MANAGERCOMMODITY
ASSISTANTMANAGER (RISK)
ASSISTANT MANAGER
3.3(c) Commodity Dep Structural hierarchy
3.3(8) DEPOSITORIES
Geojit serves its customers by acting like a depository institution where the
investors can keep their financial assets such as equities bonds, mutual funds etc
in a dematerialized form and transactions could be effected on it.
Basic service of a depository includes maintenance of accounts of investors ,
dematerialization of shares , settlement of market transaction through the release
and receipt of securities in the investors account, off market transfers, inter
depository transfers, distribution of non-financial benefits from corporate to its
shareholders, nomination facilities, transmission of shares etc.
All the above mentioned functions of a depository are controlled by the sub
division of operations department named Depository. This sub division has got a
chief manager as the head. He controls and co-ordinates all the functions of the
department. He is assisted by a senior manager who is responsible to check the
region wise performance or operation of depository. He has to present the
findings directly to the chief manager who takes the appropriate action. The
senior manager is assisted by a manager an assistant manager and senior
executives in analyzing the region wise operations of the depository. Below
senior executives there are executives who work in each section and assist the
customers in opening the account, in trade and in other similar requirements.
60
3.3(9) DEPOSITORY DEPARTMENT
HIERARCHY OF AUTHORITY
61
CHIEF MANAGER
SENIOR MANAGER
MANAGER
ASSISTANT MANAGER
SENIOR EXECUTIVE
JUNIOR EXECUTIVE
SUB STAFF
3.3(d) Commodity Dep Structural hierarchy
3.4 MARKETING DEPARTMENT
62
3.4(1) Introduction
Marketing is a social process by which individual and groups obtain what they
want and what through creating, offering and freely exchanging products and
services of value with others. The essence of marketing is an exchange or a
transaction intended to satisfy human needs and wants through an exchange
process.
Any product or service moves in the market depends upon the marketing efforts
undertaken by the company .It is said that a good marketer can even sell the
worst product available in the market, where as a bad marketer can make a good
product which does not move in the market. Keeping this fact in mind GEOJIT
has incorporated a good marketing department, with highly talented
professionals.
3.4(2) Objectives
Barker and Ashen say "the end of all marketing activities is the satisfaction of
human wants" through the satisfaction of human wants, profits are rewarded to
the business and additional benefit is the inducement of marketing. Now the
time has changed and the objective of marketing is more than security profit.
The following are the main objectives of modern marketing activities.
The main duties and responsibilities of marketing department heads in Geojit are
as follows:-
• Marketing the financial product
• Conduct the stock market awareness program
• To conduct the seminar to public.
63
• To conduct short term and long term courses
• Issue new magazines
• To collect sponsorship
• To give motivation for its staff and member
The department which is alert 24/7 is marketing department. Geojit BNP Paribas
marketing department comes with various splendid plans to raise the
organizations
activities and it is now the fourth best in India improving one position to its
previous ranking which was 5th spot .for customers they are coming with lot of
acceptable plans . for example in the month of July if the customers are putting
10,000 Rs in Geojit for their trading the organization will skip the registration
fee ,i.e., 800 normally for them. Strategies like this have certainly improved
their acceptance over the other financial service organizations.
Let us look the marketing mix, i.e., 4p's of marketing in Geojit.
3.4(3) PRODUCTS:
As we all know the product is financial services. The product ranges from
Equities
Derivatives
Currency Futures
DP Accounts
Distribution of Mutual Funds
Life Insurance
Loans General Insurance & IPOs
Portfolio Management Services
Property Services
Margin Funding
Home Loans
64
These services are obviously the most profitable ones in present scenario. As the people are working for the full worth of their money Geojit is providing perfect playfield for them.
3.4(4) PRICE:
There price means the service charges for the organization. The slabs are different for different services and below are the table which shows charges in detail.
Brokerage rates applicable w.e.f. December 1, 2006 for Online Retail Trading **
Provided linked demat account is with Geojit BNP Paribas Financial Services Ltd.
3.4(a) Delivery-based Volumes *
Volume *(Rs.) New Brokerage Rage
<10 lacs 0.3%
>10 lac <50 lac 0.25%
>50 lac <1 cr 0.20%
>1 cr <2 cr 0.15%
>2 cr 0.10%
3.4(b) Intra-day Volumes *
Volume *(Rs.) New Brokerage Rage
>2 cr 0.030% (current)
>2 cr <6 cr 0.025%
>6 cr <12 cr 0.020%
>12 cr <15 cr 0.15%
>15 cr 0.010%
3.4(c)F&O Volumes *
Volume *(Rs.) New Brokerage Rage
<9 cr 75 (current)65
>9cr <18cr 65
3.4(5) PLACE:
There are over 500 offices foe Geojit BNP Paribas and also now they are
operating abroad as joint ventures, i.e., in U.A.E, Saudi. Arabia, Bahrain and
Kuwait.
The head office is situated at Cochin and there is no other place in
Kerala which is more suitable than Cochin .and all the branches are situated in
town areas so that the offices are just a hand away from the customers .every
branches are connected each other and also with the head office through
INTRANET.
3.4(6) PROMOTIONS:
Promotion is mainly through advertisements. The brand image will
obviously do a lot to the course. Apart from that advertisements through
newspapers, magazines, and also through television channels like NDTV,
CNBC etc...And in the case of branches are giving their advertisements through
local cable television and local newspapers .In order to promote various services
there are different attractive plans for different services.
Along with the product mix the good relationship with the clients also helps a lot
for marketing. That is why Geojit has organizations like L.I.C as their major
clients. –
66
3.4(7) MARKETING DEPARTMENT
HIERARCHY OF AUTHORITY
67
CHIEF MARKETING OFFICER
REGIONAL MARKETING OFFICER
ASSISTANT MANAGER
EXECUTIVES
3.4(C) MARKETING DEP STRUCTURAL HEIRACHY
3.5 FINANCE DEPARTMENT
68
3.5(1) INTRODUCTION
Finance is the lifeblood of any organization. It deals with both the acquisition as
well as 'allocation of funds. Hence finance department assumes a great role in
this organization. A finance department in an organization is responsible for
maintaining fair and just accounting, working capital management, long term
funding decision making, costing etc.
The finance department provides authorization and control to all other
subsystems to utilize money more effectively through a well designed
mechanism the major functions of a finance department can be grouped as
follows:-
1) Preparation of financial statement
2) Providing sufficient funds to all departments.
3) Cash flows within the firm
4) Cash forecasting and budgeting
5) Analysis of transactions conducted by each branch office
6) Pay in and Pay out
69
3.5(2) DUTIES AND RESPONSIBILITIES
Chief financial officer is the head of the finance department the entire financial
operations are controlled and coordinated by C.F.O. The entire reports are
submitted before him and it is his duty to take appropriate steps. He is assisted
by Chief Manager Finance. The general accounts of the company are managed
by the Chief Manager. Preparation of reports and statements also conies under
his duty, matters concerning pay in and pay out are also determined and
analyzed by Chief Finance Manager.
The Chief Manager is assisted by Manager Finance. Below him there are two
assistant managers, four executives and three junior executives. It is the duty of
these people to record and analyze the normal accounts and transactions of a day
and to report it to Chief Manager Finance.
70
3.5(3) HIERARCHY OF AUTHORITY
71
CHIEF FINANCIAL OFFICER
CHIEF MARKETING OFFICER
MANAGING OFFICER
ASSISTANT MANAGER
EXECUTIVE
JUNIOR EXECUTIVE
3.5(a) Department structural hierarchy
3.5(4) NETWORTH
72
3.5(b) Net worth graph
3.5(5) FINANCIAL SUMMARY
73
3.5(c) Financial summary table
3.5(6)BALANCE SHEET
74
3.5 (d) Balance sheet table
3.5(7)PROFIT & LOSS STATEMENT
753.5(e) Profit & Loss Statement table
3.5(8) CASH FLOW STATEMENTS
76
3.5(f) Cash Flow Statement
3.5(9) RATIOS
Mar ‘10 Mar ‘09 Mar ‘08 Mar ‘07 Mar ‘06
Per share ratios
Adjusted EPS (Rs) 2.58 0.64 2.17 1.02 12.12
Adjusted cash EPS (Rs) 3.09 1.09 2.47 1.24 14.50
Reported EPS (Rs) 2.54 0.64 2.31 1.01 12.12
Reported EPS (Rs) 3.05 1.10 2.60 1.23 14.50
Dividend per share 0.75 0.50 0.70 0.40 4.00
Operating profit per share (Rs) 3.09 0.60 3.05 1.52 20.51
Book value (excl rev res) per share (Rs) 14.08 12.29 11.18 9.67 27.86
Book value (incl rev res) per share (Rs) 14.08 12.29 11.18 9.67 27.86
Net operating income per share (Rs) 11.67 6.31 9.17 5.01 57.29
Free reserves per share (Rs) 12.93 11.14 10.13 8.45 15.08
Profitability ratios
Operating margin (%) 26.44 9.56 33.31 30.22 35.79
Gross profit margin (%) 22.06 2.37 30.07 25.85 31.64
Net profit martin (%) 19.84 9.15 23.72 19.16 21.00
Adjusted cash margin (%) 24.14 15.41 23.35 23.64 25.12
Adjusted return on net worth (%) 18.30 5.21 19.40 10.58 43.51
Reported return on net worth (%) 18.02 5.28 20.64 10.41 43.49
Return on long term funds (%) 26.12 7.67 29.66 15.91 66.58
Leverage ratios
Long term debt / Equity - - - - -
Total debt / equity - - - - -
Owners fund as % of total sources 100.00 100.00 100.00 100.00 100.00
Fixed assets turnover ratio 4.28 2.41 4.90 3.85 3.95
Liquidity ratios
Current ratio 1.53 1.32 1.23 2.09 1.06
Current ratio (inc. st loans) 1.53 1.32 1.23 2.09 1.06
Quick ratio 1.52 1.31 1.23 2.09 1.06
Inventory turnover ratio - - - - -
Payout ratios
Dividend payout ratio (net profit) 34.52 89.68 35.48 32.96 37.63
Dividend payout ratio (cash profit) 28.73 52.82 31.44 27.08 31.46
773.5(g) Ratios Table
Chapter-4
4.1 SWOT ANALYSIS
78
4.1(1) SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project
and identifying the internal and external factors that are favorable and
unfavorable to achieve that objective. The technique is credited to Albert
Humphrey, who led a convention at Stanford University in the 1960s and 1970s
using data from Fortune 500 companies.
A SWOT analysis must first start with defining a desired end state or objective.
A SWOT analysis may be incorporated into the strategic planning model.
Strategic Planning, has been the subject of much research
• Strengths: attributes of the person or company that is helpful to achieving the
objective(s).
• Weaknesses: attributes of the person or company those are harmful to
achieving the objective(s).
•Opportunities: external conditions those are helpful to achieving the
objective(s).
• Threats: external conditions which could do damage to the objective(s).
Identification of SWOTs is essential because subsequent steps in the process of
planning for achievement of the selected objective may be derived from the
SWOTs.
First, the decision makers have to determine whether the objective is attainable,
given the SWOTs. If the objective is NOT attainable a different objective must
be selected and the process repeated.
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The SWOT analysis is often used in academia to highlight and identify
strengths, weaknesses, opportunities and threats .It is particularly helpful in
identifying areas for development.
4.1(2) SWOT ANALYSIS OF GEOJIT FINANCIAL
SERVICES LTD
(a)STRENGTH
• One of the highly established firms in broking industry having more than
years of experience.
• Large network having more than 100 branches in major states of India.
• Loyal customer base,
• National presence.
• 100% of business is automated.
(b)WEAKNESS
• Lack of knowledge on the part of investors.
• Lack of awareness about the products provided by Geogit.
(c)OPPORTUNITY
• There are branches in urban and semi-urban areas.
• Regionally concentrated in state where there is a large middle class and high
consumption.
• Separate software division.
• Easy and efficient trading facility.
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• The sustained growth in the economy of the country, the F1I are having a
positive outlook on India.
• This would attract foreign funds from untapped countries exploring
opportunities in Indian market.
This would give a boost to the business opportunities of the company and
others in the field.
(d)THREATS
• Due to the developments on the political and technical fronts.
• The nature of the company's business is cyclical depending upon the business
cycle.
• The company's business flourishes or remains depressed.
•.All the departments are co-ordinate well under the main objective of
maintaining good quality services.
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Chapter -5
5.1 FINDINGS, SUGGESTIONS AND
CONCLUSION
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5.1 FINDINGSFrom the organization study conducted at GEOJIT BNP PARIBAS
FINANCIAL SERVICES LTD, I have found that
MANAGEMENT
• Is very efficient and whole hearted to the well being of the organization
• Is product oriented and its interaction with customer is outstanding
• Very keen in employees welfare.
PROCEDURAL IMPLEMENTATION
• Rules and regulations are strictly followed.
• Time is given prior importance
• Punctuality is one of the main stay of GEOJIT
• Power is decentralized
• Feedback mechanism is bidirectional
STRATEGIC LOCATION
• Head office is at Cochin and very next to COCHIN STOCK
EXCHANGE which is most suitable.
FINANCIAL POSITION
• Company is going through a tough period in terms of financial status.
• Tight competition prevailing
QUALITY
• Customer care and grievance dept contributes a lot to the quality
measure.
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5.2 SUGGESTIONS
Based on the findings, the suggestions I am putting forward are
MANAGEMENT
• Introduction of Management Information System (MIS) will help the
management to act more efficiently.
FINANCIAL POSITION
• Need to work hard and smart to overcome the present crisis.
• Finance resources should be utilized in a better manner
QUALITY
• The company infrastructure can be a little modified
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5.3 CONCLUSION
Geojit is a premier stock broking firm. It provides access to wide range of
shares. Geojit is functions all over the country. The head office is at Cochin. Mr.
C J George and Mr Ranajith M Kanjilal founded GEOJIT FINANCIAL
SERVICES LTD in 1987 as a partnership for doing broking business in Cochin
Stock Exchange. In 1994, the business was taken over by Geojit Financial
Services Ltd, a joint venture between C J George and Kerala State Industrial
Corporation Development Ltd.
There are various types of departments in GEOJIT BNP PARIBAS LTD.
GEOJIT have stock broking business of NSE, BSE, F&O & Commodity. From
the study, it was clear that the departments functioning in the organization are
well co-ordinate and interacts properly with each other which is required for
smooth functioning of the organization. A study was conducted on STRENGTH,
WEAKNESS, OPPORTUNITY AND THREAT of GEOJIT by considering all
the functional areas.. This analysis is made to identify the unique features of
GEOJIT in broking industry in special reference to the service offered.
From all the above study, it can be concluded that GEOJIT is one of the premier
stock broking firm and it will continue the same in its future.
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6 BIBLIOGRAPHY
6.1Books
S Kevin – Security analysis & portfolio management
Punithavathy Pandian - Security analysis & portfolio
management
6.2 Magazines, Journals, Financial Daily
Business line
Dalal Street
Business Standard
6.3 Websites
www.sebi.gov.in
www.geojitbnpparibas.com
www.wikipedia.org
www.businessline.com
www.valuenotes.com
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7 APPENDICES
FIN - Financial
HR - Human Resource
MGR - Manager
SR.V.P - Senior Vice President
Asst - Assistant
Exetv - Executive
J.extv - Junior Executive
OPER - Operating
DIR - Director
REG - Regional
NSE - National Stock Exchange
BSE - Bombay Stock Exchange
DP - Depository Participant
SEBI - Security and Exchange Board of India
ADMIN - Administrations
PMS - Portfolio Management Services
NSDL - National Security Depository Ltd
NMCE - National Multi Commodity Exchange of India
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