Viny Final Project

8/6/2019 Viny Final Project

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PCS SECURITIES LTD

What exactly is the finance and investment industry? It is a fairly broad ranging group

of institutions that provide various financial services. Examples of such institutions include

commercial banks, merchant (or investment) banks, insurance companies, brokerage firms,

asset managers, and an assortment of other institutions. Services provided range from money

management for private individuals to debt and equity underwriting for corporations to

insurance of insurance of policies, and many other services. In today’s global markets, this

industry is the engine of the global economy, enabling corporations and governments to grow

and expand.

The financial services industry includes firms that are engaged in activities such as investing,

lending, insurance, securities trading and securities insurance. This is not an exhaustive list,

but these companies can be characterized as being in one or more of the following lines of

business.

• Banking

• Insurance

• Securities brokerage

• Investment banking

• Securities trading

• Investment management or money management

• Securities analysis

• Financial planning

Investment industry in India:

Emerging strong even during the scariest phase of global financial meltdown, India has

become one of the favourite investment destinations for the foreign investors across the

globe. The investment scenario in India is getting better and better with each passing day dueto high confidence level of the investors. Today, India is considered the 4th biggest economy

in the world. Its impressive GDP rate, especially in the field of purchasing power, has

catapulted it to second position among all the developing nations. According to forecasts,

Indian economy will grow to become 70% in size of the economy of US... it will also witness

macro-level stability in economic conditions. Behind all this, investment can be said to be the

key player.

Warren buffet has always mentioned that investment in India should always be a long termstory – as the industry has been growing from an emerging market to a developed one. The

BIET-MBA PROGRAMME, Davangere. Page 2



PCS SECURITIES LTD

next 10 years in India will surely give good returns. India’s GDP would be around 7% to 9%

in 2011. The sustainable growth rate of India would however over around 9% .before

becoming the mature economy, India has another 15 to 30 year spare.

Current investment scenario in India:Globalization and foreign direct investment from an integral part of all the developed as well

as developing economies. In fact, the growth of the underdeveloped economies is also

dependent on these key factors. These components equip any nations with new skills, new

items and provide smooth access to market and technology. Today, every nation across the

globe is looking for foreign and overseas investors. Whether it is India or china. Everyone

wants foreign investments.

According to recent trends, India is only second to china in the league of favourite investment

destinations.

In the report issued by department of industrial policy and promotion, the fund inflow to

India reached US$ 27.3 billion in the period 08-09, considered from the month of April 08 to

the month of March 09. Last quarter of 08-09 alone witnessed an inflow of approx. US$ 6.2

billion in the reports issued by RBI for outward investment from India; a growth of 29.6% to

US$ 17.4 billion has been seen in the period 07-08. The figures do not include individuals

and banks. India is considered the 2nd highest foreign employer in the United Kingdom after

the United States.

Global investment scenario:

Along with India, the others who are participating in the race of investment among the

developing economies are china, Singapore, Malaysia, Russia, and Brazil... Most of them are

vying for contacts from USA and Europe.

Indian Stock market:

A stock market or equity market is a public entity for the trading of company stock (shares)

and derivatives at an agreed price; these are securities listed on a stock exchange as well as

those only traded privately. Stock markets refer to a market place where investors can buy

and sell stocks. The price at which each buying and selling transaction takes is determined by

the market forces (i.e. demand and supply for a particular stock).




PCS SECURITIES LTD

The Indian Equity market is divided in to two parts Primary market - where the share is first

issued in the form of IPO (Initial Public Offering) and after issuing the share it is listed on

exchange and share is traded on exchange where shares can be bought and sold this is

secondary market. In India mainly there are two exchanges -NSE (National Stock Exchange)

BSE-Bombay Stock Exchange. The BSE is the oldest exchange in India(started in 1875).NSE

started operation on 1994.Before 2000 shares was held in Physical form But the main

difficulty with Physical shares is method of transaction which is open outcry system and

process is not transparent to investor also Physical shares were prone to duplication and

fraud. So in 2000 NSE introduced the electronic screen based trading system further the

introduction of Dematerializations (Conversion of physical share in to electronic form) and

depository(where the electronic form of share is kept) revolutionized the Indian Stock

market. Currently there are mainly two Depository (DP) -NSDL and CDSL and these DP are

like bank of share. Individual/Firm can deal through Broker (who is registered and having

membership in Exchanges and Depository) for buying and selling securities. Today NSE

outpaced BSE in volume of trade. Then what is the purpose of stock market? Stock market

serves the company by providing company the finance for long term needs and for investor

an opportunity to park their savings in corporate world and in turn give their hand in Nation's

development so stock exchange have a very vital role in country's economic development.

To buy the shares investor has to open a trading and demat account. So investor has toapproach a broker/sub broker who has member ship in Exchange (where the share is listed

mainly NSE and BSE) and depository (where share is kept in Demat form-Electronic form

[mainly CDSL and NSDL).

SENSEX and NIFTY are Index of BSE and NSE Blue chip share. SENSEX consist of 30

share and NIFTY 50 share(of top most companies) Index is the barometer of stock exchange

forex in NSE there are about 1350 listed companies listed and we cannot say in general form

market was up or down without fully looking all companies. INDEX serves this purpose.

INDEX is constructed by taking top companies across different sector in different weightage

and INDEX movement will reflect the overall movement of market. So if NIFTY or

SENSEX is up we can generally assume market was up (does not mean all shares was up)

and vice versa. Now there are index in some sectors which can catch the movement of that

sector like CNXIT-IT sector, BANKNIFTY-Banking sector etc. General purpose of Stock

Market is for Investment but bulk of activities done in market is day trading. Day trading

means BUYING/SELLING of shares and offsetting the position on same day. Day traders




PCS SECURITIES LTD

serves the purpose of bringing the liquidity to market and they help the market movement and

more than 80% of the volume from market is coming from day trading

Introduction of derivative market had made the day trading to grow more and introduction of

advanced day trading technique. The main tool for Stock market investment/trading are

Fundamental analysis -which studies about the fundamental of companies and economy and

Technical Analysis-which studies the market by analyzing the past movement of share and

market.

2. COMPANY PROFILE

PCS Securities Ltd. adds the dynamic growth factor to the savings and investments by

guiding through the land of opportunities and maximizing the returns. PCS is a fourth

generation stock broking powerhouse - one among the top 100 national brokerage firms in

India

and has served thousands of investors over the past six decades. PCS is now present at over

340 locations across the Nation and one of the top CDSL Participants in South India.

PCS Securities Ltd. adds the dynamic growth factor to your savings and investments by

guiding you through the land of opportunities and maximizing your returns. PCS is a fourth

generation stock broking powerhouse - one among the top 100 national brokerage firms in

India and has served thousands of investors over the past six decades. PCS is now present at

over 340 locations across the Nation and one of the top CDSL Participants in South India.

PCS has always been a pioneer in adopting newer technologies to increase efficiencies in providing state-of-the-art software to customers like SMS Alerts to customers notifying




PCS SECURITIES LTD

balances, “Market In Your Pocket” - Live quotes and charts delivered directly to your mobile

phone, a robust Intranet based software for PCS dealers to enable instant communication and

accurate information…Life only gets easier with PCS on your side.

2.1 BACKGROUND AND INCEPTION OF THE COMPANY

Today's world of advanced technology and blink-of-an-eye communication has opened a

magic box full of opportunities and wealth fulfilment formulae. PCS is here to offer you

some such opportunities which help you stretch your investment horizon and unleash

the true potential of your wealth.

PCS Securities Ltd. adds the dynamic growth factor to your savings and investments by

guiding you through the land of opportunities and maximizing your returns. PCS is a

fourth generation stock broking powerhouse - one among the top 100 national

brokerage firms in India and has served thousands of investors over the past six decades.

PCS is now present at over 340 locations across the Nation and one of the top CDSL

Participants in South India.

PCS was born out of the aspirations of Late Mr. K. C. Shrimal - founder member of

Hyderabad Stock Exchange - and nurtured through generations by Late Mr. S. C.

Shrimal and his son Mr. P. C. Shrimal, Promoter and Chairman of PCS Securities

Ltd., twice President of HSE, who has also served as the Chairman of the FISE -

Federation of Indian Stock Exchanges. He is currently assisted by his son, Mr. Prashant

Shrimal. The Board consists not only of the highly experienced generational hierarchy,

but also industry stalwarts with a wealth of expertise including Whole-time Director

Mr. Paresh Shah and Director Mr. Jagdish Ahuja (Ex-President, Bangalore Stock

Exchange).

PCS achieved yet another landmark and received industry recognition when it was

awarded “The Fastest Growing Equity Broking House (Mid-Size Firms) ’09 Award

presented by Dun & Bradstreet.

PCS has always been a pioneer in adopting newer technologies to increase efficiencies

in providing state-of-the-art software to customers like SMS Alerts to customers

notifying balances, “Market In Your Pocket” - Live quotes and charts delivered directly

to your mobile phone, a robust Intranet based software for PCS dealers to enable instant

communication and accurate information…Life only gets easier with PCS on your side.




PCS SECURITIES LTD

2.2 Nature of the business carried

PCS securities Ltd is one of the leading broking houses in India that provides a wide range of

services nationwide to a substantial and diversified client base that includes retail clients,

high net worth individuals, corporate and financial institutions. Founded in 1989 with just

DSE trading membership, we have come a long way since and are now members of all major

exchanges in India namely NSE, BSE, MCX, NCDEX, and NSE Currency & MCX-SX. In

addition to this, we are also a depository participant with NSDL.

We are committed to our distinctive culture and core values, which always place our client's

interests first. Our values emphasize integrity, transparency, commitment to excellence and

teamwork. We have more than 60,000 clients and a presence in more than 340 locations

through our network of longstanding franchisees and sub brokers. All our offices are

managed by qualified professionals and equipped with state of the art infrastructure (VSAT

connectivity, leased lines, internet connectivity, telephones, voice loggers, etc) to serve our

clients in the best possible manner.

2.3 VISSION, MISSION AND QUALITY POLICY

Vision:-

To be the most respected and investor-friendly financial powerhouses serving investor

through various markets across the nation”

Mission:-

To power your investment through superior information, technology and services, in order

to help maximize your wealth generation.

Quality policy:-

➢ They are committed to distinctive culture and core values, which always place

client’s interest first.

➢ Our values emphasize integrity, transparency, commitment to excellence and team

work.

2.4 Products / services profile

➢ Equity & Derivatives




PCS SECURITIES LTD

➢ Depository

➢ Currency Derivatives

➢ Commodities

➢ Mutual Funds

Equity & Derivatives

PCS Securities provides online/offline equity & derivative trading facilities for investors who

are looking for the ease and convenience and hassle free trading experience. Our state of the

art technology (fibre connections, VSAT network powered by Bharti, ODIN trading engine,

etc) ensure our clients the fastest and smoothest trade execution.

In addition to our research reports, you can access a multitude of resources like

➢ live quotes,

➢ charts,

➢ research,

➢ advice, and

➢ online assistance

Derivative products are structured in manner so as to curtail the risk exposure of an investor.

Index futures and stock options are instruments that enable you to hedge your portfolio or

open positions in the market. Option contracts allow you to ride your profits while at the

same time limit the downside risk.

Our Edge: Pan India Footprint (especially strong in North India)

News flow & distribution – We have our ears to the ground and make sure that we pass this

on to our local branches, associates and clients.

Integrity & Ethical Business Practices

Flexibility to trade anywhere/anytime (online/offline)

Depository:

PCS Securities Private Limited offers you depository accounts and dematerialization services

as a depository participant in NSDL. NSDL provides you a quick, secure and hassle free

alternative to holding the securities in physical form.

Facilities offered by us:




PCS SECURITIES LTD

➢ Live Online Back Office

➢ Dematerialization Services

➢ Inter and Intra depository transfer services

➢ Electronic execution of DIS slips

➢ Confirmation SMS’ from NSDL when stock moves in/out of your Depository

account.

Currency Derivatives

Currency trading was introduced in India in 2008 and is one of the fastest growing segments.

PCS Securities Private Limited is a member of both the currency exchanges - NSE Currency

as well as MCX-SX Currency. Our Edge:

➢ Pan India footprint

➢ Trade Equities and Currencies in the same account and hedge your foreign currency

exposure

➢ Online/Offline trading on ODIN as well as NOW (new NSEIT platform)

Commodities:

As a member of MCX & NCDEX, we provide online/offline commodities trading facilities

for investors who are looking for the ease and convenience and hassle free trading

experience. Our state of the art technology (fibre connections, VSAT network powered by

Bharti, ODIN trading engine, etc) ensure our clients the fastest and smoothest trade

execution.

Our Edge:

➢ Pan India footprint

➢ Ethical business practices

➢ Single Trading Platform (ODIN powered by Financial Technologies) for all your

Commodities trading

➢ Trade Anywhere & Anytime – Convenience of trading online from home or

calling/visiting a local office.

➢ Powerful research and analytics – Intraday trading tips on Yahoo Messenger & via

SMS

Mutual Funds




PCS SECURITIES LTD

Our Mutual Fund distribution division offers you the opportunity to diversify your investment

portfolio. Not only do we offer a choice of investment schemes from all major mutual fund

provides, we take this a step further by helping investors chose the best mutual fund based on

their investment needs.

Our Edge:

➢ Pan India Footprint (especially strong in North India)

➢ Schemes of all major fund houses available

➢ Access to latest news and Fund Manager view

2.5 Area of operation

PCS securities provide wide range activities nationwide to a substantial and diversified client

base that includes retail clients, high net worth individuals, corporate and financial

institutions. It has its presence in more than 340 locations through its network of longstanding

franchisee’s and sub brokers.

HEAD OFFICE:-

Pcs house, #3-1-336,Esamia Bazar,

Hyderabad – 500027

Tel:- +91 40 24656587, 30687711

Fax:-+91 40 24651079

Email:- pcssecurities.co.in

CORPORATE OFFICE

Kimtee square, road #12,

Banjara hills,

Hyderabad- 500034

Tel:- +91 40 66102247-52

Fax:- +91 40 23323895

Other locations

➢ Hyderabad

➢ Delhi

➢ Uttaranchal




PCS SECURITIES LTD

➢ West Bengal

➢ Haryana

➢ Himachal Pradesh

➢ Karnataka

2.6 OWNERSHIP PATTERN:-

PCS SECURITIES is a private limited company dealing in the stock broking. It was

promoted by a group of professionals. The founder members are

Name Designation

Prakash chandrashrimal

Chairman

Paresh shah Managing Director

Prashanth shrimal Vice chairman

Jagdish ahuja Independent Director

2.7 COMPETITORS INFORMATION:-

Religare Securities Ltd

Religare Securities Ltd. (RSL), a wholly owned subsidiary of Religare Enterprises Limited

(REL), a global financial services group is a market leading securities firm in India. The

company offers equity broking services to more than half a million clients using both, offline

and online platforms and also offers depository participant services.RSL is a member of the NSE, BSE, MCXSX, USE and a depository participant with NSDL and CDSL. RSL employs

more than 4800 employees and has a wide distribution reach that spans across more than

1500 location in India.

Motilal Oswal Securities Ltd

Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit, with

just two people running the show. Focus on customer-first-attitude, ethical and transparent

business practices, respect for professionalism, research-based value investing and






PCS SECURITIES LTD

the branch and Internet, Investments in IPO, Mutual funds and Portfolio management service.

Kotak Securities has a full-fledged research division involved in Macro Economic studies,

Sectoral research and Company Specific Equity Research combined with a strong and well

networked sales force which helps deliver current and up to date market information and

news. Kotak `Securities’ network spans over 321 cities with 877 outlets, with an employee

workforce beyond 5100.

2.8 INFRASTRUCTURAL FACILITIES:-

• Vehicle parking facility for client and employee

•Free statement of account through mail

• Facility of separate computer is being given each staff

• Printer and phone facility to all branches

• All branches are computerize

2.9 Work flow model:

The work flow model is used to describe the trading, clearing, and settlement process of

equities trading in the market. It is also known as end to end model which is given below.




PCS SECURITIES LTD

3. THE MCKINSEY’S 7-S FRAME WORK IS SHOWN IN FIGURE:


Custome

r

Opening of trading and D-mat

A/c

Delivery of trading kitDemonstration to the

customer

Receiving of order formPlacing the order in the

market

The client The dealerSellBuyPayment by

client

Transfer the amt to

seller’s broker

Dealer receives the delivery in

the name of the client from

the seller’s broker.

Sale of delivery shares from

the client by dealer

Receive amt of shares from

buyer broker

Deposit the

amt in the

seller’s d-mat

a/c

Delivery of

shares to the

buyer’s

broker

Transaction is settled



PCS SECURITIES LTD

Strategy: the plan devised to maintain and build competitive advantage over the competition.

Structure: the way the organization is structured and who reports to whom.

Systems: the daily activities and procedures that staff members engaged in to the get the job

done.

Shared valves: called “super ordinate goals” when the model was first developed, these are

the core valves of the company that are evidenced in the corporate culture and the general

work ethic.

Style: the style of leadership adopted.

Staff: the employees and their general capabilities.

Skills: the actual skills and competencies of the employees working for the company.

Placing the shared valves in the middle of the model emphasizes that these valves are central

to the development of all the other critical elements. The company’s strategy, structure,

system, style, staff, and skill all stem from why the organization was originally created, and

what it stands for. The original vision of the company was formed from the valves of the

creator. As the valves change, so do all the other elements.

Strategy

A strategy is a plan of action designed to achieve a particular goal. Strategy refers to the

systematic action and allocation of resources to achieve the companies aim the integrated

vision and direction of the company as well as the manner, which it drives, articulate,communicates and implements that vision and direction. It can also be defined as the choice




PCS SECURITIES LTD

of direction and action that the company adopts to achieve its objectives in a competitive

situation.

As per the vision and mission statement of the company, the main strategy of PCS

SECURITIES is to gain competitive advantage over the rivals not by letting the others down

but by taking its own standards to a higher level through better services and customer

satisfaction. Their strategic goal is to excel in its service with integrity, diligence and

transparency in satisfying the customer’s investment needs and to build itself as the trusted

and a world class financial service provider.

System:

The daily activities and procedures that staff member’s e engage in to get job done. System

comprises of the main system that run the organization like the finance or the human resource

systems.

At PCS SECURITIES they use a computerised information system (CIS) from where all the

important data are being collected and then processed further as per various needs. And the

decision making system too is dependent on the CIS which is usually in the hands of the top

management. The management control system at PCS SECURITIES is all bound by the

company’s vision and mission statement as well as their immediate goals and targets. This is

taken care of by the responsibility centre at the head office. While the appraisal and the

reward systems are on a merit rating cum experience basis so that they can encourage and

retain the existing employees as well as attract the most potential employees while recruiting.

So, this as a whole helps PCS SECURITIES to bind the different constituents of the

organization and positions in fact to facilitate the performance of the entire organization in a

coordinated, cohesive and fruitful manner.

Structure:

Business needs to be organized in a specific form of shape that is generally referred as

organizational structure. Organization is structured in a variety of ways, dependent on their

objectives and culture. The structure of the company often dictates the way it operates and

performs. Traditionally, the business have been structured in a hierarchical way with several


BOARD MEMBERS AND CHAIRMAN



PCS SECURITIES LTD

divisions and departments, each responsible for a specific task such as human resources

management, production or marketing. Many layers of management controlled the

operations, with each answerable to the upper layer of management.

Shared valves:

Shared valves are the core valves of the company that are evidenced in the corporate culture

and the general work ethics. The valves of PCS SECURITIES are its core foundation for its

excellence in its day to day business operations which drives it towards the success. They are:

• Integrity


EXECUTIES

BRANCH MANAGER

• Future and option

• Depository and D-Mat

•Currency trading

• Mutual fund

PRODUCT HEAD

ZONAL HEAD

REGIONAL HEAD

CEO and MD

TRAINEES



PCS SECURITIES LTD

• Transparency

• Commitment to excellence

• Team work.

Style:

Style of leadership refers to the manner in which an individual uses his or her talent, valves,

knowledge, judgement, and attitudes to lead and relate to others. Style expresses the person’s

character. Style is the leadership approaches of top management and the organization’s

overall operating approach; also the way in which the organizations employees present

themselves to the outside world, to suppliers and customers.

The company follows a top-down style of management where in the top level managers

would give instructions and the same is followed the lower levels. However, at PCS

SECURITIES they have a very pleasant and cooperative culture where everyone’s ideas are

respected and considered. All are participative when it comes to working at the office so as to

reach the targets and meet the organizational goals jointly in the least possible time.

Staff:

Organizations are made up of people and it’s the people who makes the real differences to the

success of the organization in the increasingly knowledge based society. The importance of

human resource as thus got the central position in the strategy of the organization, away from

the traditional model of capital and land.

The people working in PCS SECURITIES have technical skills that are required for the day

to day operations in the company. There are nearly 150 workers working in PCS

SECURITIES limited.

Skills:

Skills deal with the strongest skills, actual skills and competencies of the employees working

for the company and how they are monitored. A skill is the ability, knowledge, undertaking,

and judgement to accomplish a task. Skills may be defined as what the company does best;

the distinctive capabilities and competencies that reside in the organization.




PCS SECURITIES LTD

PCS SECURITIES have variety of skills in carrying out business. The company has its

distinctive competency in providing excellent investment service and known for its strong

and long standing relationship with investors, other companies and its clients.

The company also has potential and proficient, technical and fundamental analysis that helps

to analyse the market carefully and correctly before any investment. The dealers at PCS

SECURITIES are also well qualified and fully trained. Thus, the skills which are the

dominant capabilities and core competencies possessed by the organization are very much in

parallel to organizational strategy, structure, systems, and the culture.

4. SWOT ANALYSIS OF PCS SECURITIES LIMITED

A SWOT analysis is a tool, used in management and strategy formulation. It can help to

identify the strengths, weakness, opportunities, and threats of a particular company.

The swot analysis shown in figure




PCS SECURITIES LTD

STRENGTHS:

• PCS SECURITIES has a wide network of branches and franchisees spread all over

India to fulfil all investment needs of the customers.

• State of the art technology: technology is one of the biggest strengths and the entire

business process is driven by the latest technology for easy, swift and secure

transactions.

-Single Platform with shared limits for all your trading needs

-Trade Anywhere/Anytime – trade on the internet or call/visit a local

office.

-NEAT terminals in regional offices for faster execution of trades

-Private VSAT network powered by Bharti with Internet Backups for worst case

scenarios.

-CTCL network trading engine powered by Financial Technologies (ODIN – market

leader)

-Real-time access to back office and depository data.




PCS SECURITIES LTD

- One of the first few adopter of new NSEIT platform (NOW)

• Highly trained work force.

• Competitive cost.

• Large base of skill talent.

• Fully fledged financial services group offering equity broking, commodities broking,

IPO distribution, mutual fund distribution, internet trading, and investment etc…

• The offices at various locations are integrated with private VSAT network and

internet connectivity, which enables access to its back office and depository data on

real time basis. The clients can also access their back office and depository reports

from the website.

• People: besides the core promoters, the group is having its full fledged teams headed

by young and dynamic professionals like chartered accountants, company secretaries,

MBA’s, IT professionals etc… to handle the various divisions of the company.

WEAKNESS

• Few branch networks and less physical presence (which is currently predominant only

in the northern part of India).

• Poor advertisement activities.

• No global reach.

• Weak brand name.

OPPORTUNITIES:

• Scope for taking its business overseas and going global.

• Scope for increasing its branch network especially in the important financial centres

as well as extending its physical presence in other parts of the country.

• Up gradation of the latest technology to give better and faster services to its clients.

THREATS:

• The ever increasing and challenging neck-to-neck competition especially with those

established and existing reputed stock broking companies.

• Uncertainty of the market and volatility and fluctuations in the stock prices.

• Change in customer needs, preferences and taste.

• Threat from the new entrants into the field of stock broking.




PCS SECURITIES LTD

5. FINANCIAL STATEMENT

BALANCE SHEET

(RS IN CR)

Year Mar 10 Mar 09

SOURCES OF FUNDS :

Share Capital 45.99 55.28

Reserves Total 173.94 236.02




PCS SECURITIES LTD

Equity Share Warrants 0 0

Equity Application Money 0 0

Total Shareholders’ Funds 219.93 291.3

Secured Loans 165.51 49.72

Unsecured Loans 152.68 66.75

Total Loan Funds 318.19 116.47

Total Liabilities 538.12 407.77

APPLICATION OF FUNDS :

Loan / Non-Current Assets 0 0

Fixed Assets

Gross Block 162.25 161.32

Less: Accumulated Depreciation 91.4 71.23

Less: Impairment of Assets 0 0

Net Block 70.85 90.09

Lease Adjustment 0 0

Capital Work in Progress 1.44 0.18Investments 51.82 51.77

Current Assets, Loans & Advances

Inventories 0 0

Sundry Debtors 101.35 26.24

Cash and Bank Balance 570.69 462.19

Loans and Advances 179.98 123.79

Total Current Assets 852.02 612.22

Less: Current Liab. & Provisions

Current Liabilities 370.39 280.04

Provisions 64.8 65.35

Total Current Liabilites & Provisions 435.19 345.39

Net Current Assets 416.83 266.83

Miscellaneous Expenses not written off 0 0




PCS SECURITIES LTD

Deferred Tax Assets 6.58 11.6

Deferred Tax Liability 9.4 12.7

Net Deferred Tax -2.82 -1.1

Total Assets 538.12 407.77

Contingent Liability 500.95 405.15

RATIOS

MAR 10 MAR 09

CURRENT RATIO 1.04 1.20

DEPT EQUITY RATIO 0.85 0.76

LONG TERM DEPT

EQUITYRATIO

-0.38 -0.06

INTEREST COVER

RATIO

5.92 0.14

6. Learning experience




PCS SECURITIES LTD

With the help of the college requisition letter I approached many companies and I got

permission in PCS securities limited. This opportunity makes me to learn from the company

and peoples so the peoples at PCS securities are very friendly and with the help and

cooperation I could complete the project successfully. I understood the stock market and how

the orders are placing and how the trading is done and how the brokers receives the order

from the clients and execute the order and how modify , how to cancel the order etc…

PCS securities are a stock broking company I saw and learned how the trading is done online

using the various software’s, how the records of the clients are maintained etc…

In the PCS securities daily the some customers coming and placing the order and going back

and they are discussing each together with employees regarding stock market variations etc…

PART-B

INTRODCUTION




PCS SECURITIES LTD

COMMODITIES MARKET

A commodity trading is a professional service-oriented set-up, is a recent phenomenon

in India but is growing at a tremendous pace, emerging as the largest and most exciting

service sectors of this decade.

In order to match up with this phenomenal growth and pace, there is always going to

be a need of trained commodities professionals. In addition, the fast changing commodities

sector demands that professionals learn new skills, improve their efficiency, learn to compete

and think out of the box. All this requires an education that is intensive, comprehensive and

closely linked to the commodities derivatives market, through experiment learning.

Over the last couple of years, MCX has been recognized as an exchange, which adds

immense intellectual, cultural and professional energy to the industry on a continuous basis.

It believes in innovation - innovation both in theory and practice to meet the needs of the

industry not only today but into the future.

The training department of MCX has been in the vanguard of knowledge dissemination

across a wide spectrum of participants in the commodity industry, more than 3,000

individuals have directly benefited from the various training programs conducted by the

exchange during the year 2005-06, in line with the pace of growth of the commodity marketin India.

Commodities market essentially represents another kind of organized market just like

the stock market and the debt market. However, commodities market, because of its unique

nature lends to the benefits of a wide spectrum of people like investors, importers, exporters,

producers, corporate, etc.,

What can commodities market offer?

Advantages to an investor, commodities futures represent a good form of investment

because of the following reasons.

• High Leverage – The margins in the commodity futures market are less than the

F&O section of the equity market.

• Less Manipulations - Commodities markets, as they are governed by

international price movements are less prone to rigging or price manipulations.




PCS SECURITIES LTD

• Diversification – The returns from commodities market are free from the direct

influence of the equity and debt market, which means that they are capable of

being used as effective hedging instruments providing better diversification.

Advantages to Importer or an exporter,

Hedge against price fluctuations – Wide fluctuations in the prices of import or export

products can directly affect to Importer or an exporter bottom-line as the price at which you

import/export is fixed before-hand. Commodity futures help Importer or an exporter to

procure or sell the commodities at a price decided months before the actual transaction,

thereby ironing out any change in prices that happen subsequently.

Advantages to Producer of a commodity, futures can help as follows:

• Lock-in the price for your produce – If you are a farmer, there is every chance

that the price of your produce may come down drastically at the time of harvest.

By taking positions in commodity futures you can effectively lock-in the price at

which Producer wish to sell your produce.

• Assured demand – Any glut in the market can make Producer wait unendingly

for a buyer. Selling commodity futures contract can give Producer assured

demand at the time of harvest.

• Control your cost – If Producer is an industrialist, the raw material cost dictates

the final price of Producer output. Any sudden rise in the price of raw materials

can compel Producer to pass on the hike to Producer customers and make your

products unattractive in the market. By buying commodity futures, Producer can

fix the price of their raw material.

• Ensure continuous supply – Any shortfall in the supply of raw materials can stall

Producer production and make Producer default on Producer sale obligations.

Producer can avoid this risk by buying a commodity futures contract by which

Producer are assured of supply of a fixed quantity of materials at a pre-decided price

at the appointed time.

Trade from anywhere in India

PCS, with its network of branches across the length and breadth of the country, is always

within customer’s reach, no matter where Producer is. This gives the facility to trade from

anywhere in India.




PCS SECURITIES LTD

Personalized Services PCS, with its wide array of personalized services from registry to

stock broking takes the pleasure of adding one more service, commodities broking with the

same personal touch.

State of Infrastructure

The strong IT backbone of PCS helps us to provide customized direct services

through our back office system, nation-wide connectivity and website.

Round the clock operations in commodities trading

Indian commodities market, unlike stock market keeps awake till 11.30 in the night

and PCS is all poised to offer round the clock services through its dedicated team of

professionals.

To open the commodities trading account.

The account opening forms are available at at branch offices and with PCS business

associates. People are requested to kindly contact a branch nearby area and complete the

account opening formalities for commodities trading branches.

Also people can take a print out and fill out a simple account opening form from our website

and complete the necessary documentation as per the checklist enclosed in the form. The

form after duly filled up may be deposited at the nearest PCS Branch or Associate along with

a cheque/DD favoring “PCS Comtrade Limited” payable at Hyderabad towards initial

margin.

Please remember the Member-Client agreement has to be executed on a non-judicial

stamp paper, as per the applicable by the ‘Stamp Duty Act’ of the relevant state.

1. Deposit Initial Margin:

a. You need to deposit an initial upfront margin as specified by the exchange

(usually between 5-10% of the contract value). The cheque/DD should be in

favour of “PCS Comtrade Limited”

2. Mark to Market Margin:

a. In addition to initial margin, you also need to keep a mark to market margin

for taking care of the adverse price movements, if any.

3. Duly filled up Client Registration form may be sent to the address below or to

any nearby PCS branch:

PCS Comtrade Limited

46, Avenue 4, Street No. 1, Banjara Hills, Hyderabad – 500 034.Andhra Pradesh.




PCS SECURITIES LTD

Following are the commodities traded in MCX.

Gold, Gold M, Gold HNI, Silver, Silver M, Silver HNI

Castor Seeds, Soy Seeds, Castor Oil, Refined Soy Oil, Soy meal,

RBD Palmolein, Crude Palm Oil, Groundnut Oil, Mustard Seed,

Mustard Seed Oil, Cottonseed Oilcake, Cottonseed

Pepper, Red Chilli, Jeera , Turmeric

Steel Long, Steel Flat, Copper, Nickel, Tin

Kapas, Long Staple Cotton, Medium Staple Cotton

Chana, Urad, Yellow Peas, Tur

Rice, Basmati Rice, Wheat, Maize, Sarbati Rice

Crude Oil

Following are the commodities traded in NCDEX


http://www.karvycomtrade.com/gold_hni_contract.asp


http://www.karvycomtrade.com/tin_contract.asp






PCS SECURITIES LTD

National Commodities and Derivatives Exchange, NCDEX

COMMODITY

UNIT OF

PRICE

QUOTATION

UNIT OF

TRADIN

G

YIELD/Re.

MOVEMENT

TIC

SIZE

or

TIC

YIELD/TIC

or TIC

VALUE

PRECIOUS METALS

GOLD 10gm 100gm 10.00 1.00 10.00


AgroProducts



PCS SECURITIES LTD

KILO GOLD 10gm 1000gm 100.00 1.00 100.00

SILVER 1KG 5KG 5.00 1.00 5.00

MEGA

SILVER 1KG 30KG 30.00 1.00 30.00

SOYA 1QT 10MT 100.00 0.05 5.00

SOYA OIL 10KG 10MT 1000.00 0.05 50.00

CHANA 1QT 10MT 100.00 1.00 100.00

GAUR SEEDS 1QT 10MT 100.00 1.00 100.00

TUR 1QT 10MT 100.00 1.00 100

URD 1QT 10MT 100 1.00 100

CHILLI 1QT 5MT 50 1.00 50

TURMERIC 1QT 10MT 10 1.00 10

PEPPER 1QT 1MT 10.00 1.00 10.00

WHEAT 1QT 10MT 100 0.20 20

CASTOR 20KG 10MT 500 0.10 50

Multi-Commodity Exchange, MCX

COMMODITY

UNIT OF

PRICE

QUOTATION

UNIT OF

TRADIN

G

YIELD/Re.

MOVEMENT

TIC

SIZE

or

TIC

YIELD/TIC

or TIC

VALUE

PRECIOUS METALS

GOLD-M 10gm 100gm 10.00 1.00 10.00

GOLD 10gm 1KG 100.00 1.00 100.00

SILVER-M 1KG 5KG 5.00 1.00 5.00

SILVER 1KG 30KG 30.00 1.00 30.00

CRUDE 1BBL 100BBL 100 1.00 100

AGRICULTURAL PRODUCTS




PCS SECURITIES LTD

SOYA 1QT 10MT 100.00 0.05 5.00

SOYA 1QT 10MT 100.00 0.05 5.00

MENTHA OIL 1KG 360KG 360 0.10 36.00

POTATO 1QT 30MT 300 0.10 30.00

KAPAS

KHALI50KG 5MT 100 0.10 10.00

CARDAMOM 1KG 500KG 500 0.50 250

INDUSTRIAL METALS

STEEL LONG 1MT 10MT 10.00 1.00 10

Eg::take a gold for trading if there is a movement of 1 rupee in the tick size there will be

yield of 5 rupees for every 10 gm and the lot size is 100 gm i:minimum purchase of precious

metal gold is 100 gm .

Note: NCDEX introduced trading on Saturdays in all eligible contracts with effect from May

15, 2004

A commodity derivative derives its value from an underlying asset, which is necessarily

a commodity. To understand the commodity derivatives markets it’s necessary to clear about’

commodities’. Commodities, in simple words are any goods that are common and unbranded.

Gold, silver, rubber, pepper, jute, wheat, sugar, cotton etc., are some of the common

commodities. For e.g. apple juice can be a commodity whereas the ‘Real’ apple juice cannot

be called a commodity. Customers may be surprised to know that in the US commodities

markets there are futures available even on cattle. Another feature of commodities is that they

are commonly available. Commodity markets represent the formal system for the interplay of

demand for and supply of commodities. These markets can be broadly classified into spot

market and futures market. Commodities for immediate delivery are traded through the spot

market. The players in the spot market are the actual producers and the consumers of the

commodities.

The other type of market called the ‘Futures market’ is for facilitating contracts for future

delivery. (Please go through the material on ‘Futures and Options’ to understand about

futures) These markets make available for trading, the various derivatives based on

commodities. Usually traded ones are the futures and options. However in India options on

commodities are not available and are expected to be introduced soon. The players in the

futures markets are Hedgers, Arbitragers and investors. Hedgers are those who holdsimultaneous positions in the spot market also. These are generally the actual consumers or






PCS SECURITIES LTD

Commodity and hedge fund managers

Consulting firms

Regulatory authorities

Research organisation

Corporate houses

What are the major commodity Exchanges?

The Government of India permitted establishment of National-level Multi-Commodity

exchanges in the year 2002 and accordingly three exchanges have come into picture. They

are:

Multi-Commodity Exchange of India Ltd, Mumbai (MCX).

National Commodity and Derivatives Exchange of India, Mumbai (NCDEX).

National Multi Commodity Exchange, Ahmadabad (NMCE).

What are the working hours for the commodity exchanges?

Commodity Exchanges (MCX and NCDEX) function from 10.00 Am to 11.30 PM with

a break of 30 minutes between 5.00 PM and 5.30 PM. However some specific commodities

with strong international price linkages (such as Gold, Silver, Soy oil, Crude Oil etc) are

allowed to be traded after 8.00 PM.

Who regulates the commodity exchanges?

Just as SEBI regulates the stock exchanges, commodity exchanges are regulated by

Forwards Market Commission (FMC); Forwards Market Commission is under the purview of

the Ministry of Food, Agriculture and Public Distribution.

How risky are these markets compared to stock & bond markets?

Commodity prices are generally less volatile than the stocks and this has beenstatistically proven. Therefore it's relatively safer to trade in commodities.




PCS SECURITIES LTD

Also the regulatory authorities ensure through continuous vigil that the commodity prices are

market-driven and free from manipulations.

However all investments are subject to market risk and depends on the individual decision.

There is risk of loss while trading in commodity futures like any other financial instruments.

How the deliveries are made possible?

The exchange has enlisted certain cities for specific commodities as the delivery

centers. The seller of commodity futures, upon expiry of the contract may choose to deliver

physical stock instead of settling the positions by cash, in which case he would be required to

deliver the stocks to the specified warehouses. The buyer of the commodity futures, if he is

interested in physical delivery would be matched with a seller and would be required to take

delivery of the specified quantity of stock from the designated warehouse. Worldwide

commodity futures are generally used for hedging and speculation and hence physical

deliveries are negligible. However the possibility of physical delivery has made these markets

more attractive in India. Both NCDEX and MCX have successfully completed physical

delivery in bullions and various agro-commodities.

In case of NCDEX it is mandatory to open a Demat account with an approved DP by the

buyer and seller if they wish to take/ give delivery of goods.

What is the date of expiry?

At NCDEX the contracts expire on 20 Th day of each month. If 20 Th happens to be a

holiday the expiry day will be the previous working day.

At MCX the expiry day is 15 Th of every month. If 15 Th happens to be a holiday the expiry

day will be the previous working day. The expiry day also differs for different commodities

in both the exchanges.

How much are the margins on these Commodity futures?

Generally commodity futures require an initial margin between 5-10% of the contract

value. The exchanges levy higher additional margin in case of excess volatility. The margin

amount varies between exchanges and commodities. Therefore they provide great benefits of

leverage in comparison to the stock and index futures trade on the stock exchanges. The

exchange also requires the daily profits and losses to be paid in/out on open positions (Mark

to Market or MTM) so that the buyers and sellers do not carry a risk of not more than one

day.




PCS SECURITIES LTD

Following is a table showing the details # regarding major commodities traded on MCX

& NCDEX

MCX

Commodity Initial Margin Quotation Lot Size Delivery Center

Gold 3.5% 10 Gm 1 Kg Mumbai, Ahmadabad

Silver 5% 1 KG 30 KG Ahmadabad

Crude Oil 5% 1 bl 100 bls Mumbai

Soy Oil 3% 10 KG 10 MT Indore

Pepper 8% 10 KG 100 KG Kochi

Soy Seed 4% 1 MT 10 MT Indore

CAPITAL MARKETS

Introduction to Capital Markets

Transfer of resources from those with idle resources to others who have a productive

need for them is perhaps most efficiently achieved through the securities markets. Stated

formally, securities markets provide channels for allocation of savings to investments and

thereby decouple these two activities. As a result, the savers and investors are not constrained

by their individual abilities, but by the economy’s abilities to invest and save respectively,

which inevitably enhances savings and investment in the economy.

Market Segments

The securities market has two interdependent and inseparable segments, the new issues

(primary market) and the stock (secondary) market. The primary market provides the channel

for sale of new securities while the secondary market deals in securities previously issued.

The price signals, which subsume all information about the issuer and his business including

associated risk, generated in the secondary market, help the primary market in allocation of




PCS SECURITIES LTD

funds. The issuers of securities issue (create and sell) new securities in the primary market to

raise funds for investment and/or to discharge some obligation. They do so either through

public issues or private placement. There are two major types of issuers who issue securities.

The corporate entities issue mainly debt and equity instruments (shares, debentures, etc.),

while the governments (central and state governments) issue debt securities (dated securities,

treasury bills).

The secondary market enables participants who hold securities to adjust their holdings in

response to changes in their assessment of risk and return. They also sell securities for cash to

meet their liquidity needs. A variant of secondary market is the forward market, where

securities are traded for future delivery and payment. Pure forward is outside the formal

market. The versions of forward in formal market are futures and options. In futures market,

standardized securities are traded for future delivery and settlement. These futures can be on

a basket of securities like an index or an individual security.

cases of options, securities are traded for conditional future delivery. There are two types of

options – a put option permits the owner to sell a security to the writer of options at a

predetermined price while a call option permits the owner to purchase a security from the

writer of the option at a predetermined price. These options can also be on individual stocks

or basket of stocks like index. Two exchanges, namely NSE and BSE provide trading of

derivatives of securities.

Products and Participants

Savings are linked to investments by a variety of intermediaries through a range of

complex financial products called “securities” which is defined in the Securities Contracts

(Regulation) Act, 1956. Which includes shares, scrip’s, stocks, bonds, debentures, debenture

stock, or other marketable securities of like nature in or of any incorporate company or body

corporate, government securities, derivatives of securities, units of collective investment

scheme, security receipts, interest and rights in securities,

Stock Basics: What Causes Prices to Change?

Stock prices change every day by market forces. By this we mean that share prices

change because of supply and demand. If more people want to buy a stock (demand) than sell

it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than

buy it, there would be greater supply than demand, and the price would fall.

Understanding supply and demand is easy. What is difficult to comprehend is what makes




PCS SECURITIES LTD

people like a particular stock and dislike another stock. This comes down to figuring out what

news is positive for a company and what news is negative.

The price movement of a stock indicates what investors feel a company is worth. The

value of a company is its market capitalization, which is the stock price multiplied by thenumber of shares outstanding.

For example, a company that trades at Rs.100 per share and has 1,000,000 shares

outstanding has a lesser value than a company that trades at Rs.50 but has 5,000,000 shares

outstanding (Rs.100 x 1,000,000 = Rs.100,000,000 while Rs.50 x 5,000,000 =

Rs.250,000,000). The price of a stock doesn't only reflect a company's current value; it also

reflects the growth that investors expect in the future.

The most important factor that affects the value of a company is its earnings. Earnings are the

profit a company makes, and in the long run no company can survive without them. Public

companies are required to report their earnings four times a year (once each quarter).

National Stock Exchange watches with rabid attention at these times, which are referred to as

earnings seasons. The reason behind this is that analysts base their future value of a company

on their earnings projection. If a company's results surprise (are better than expected), the

price jumps up. If a company's results disappoint (are worse than expected), then the price

will fall.

Some believe that it isn't possible to predict how stocks will change in price while others

think that by drawing charts and looking at past price movements, you can determine when to

buy and sell. The only thing we do know, as a certainty is that stocks are volatile and can

change in price extremely rapidly.

The important things to consider about stocks are the following:

At the most fundamental level, supply and demand in the market determine stock price.

Price times the number of shares outstanding (market capitalization) is the value of a

company.




PCS SECURITIES LTD

How to Read a Stock Table/Quote

Columns 1 & 2: 52-Week Hi and Low - These are the highest and lowest prices at which a

stock has traded over the previous 52 weeks (one year). This typically does not include the

previous day's trading.

Column 3: Company Name & Type of Stock - This column lists the name of the company.

If there are no special symbols or letters following the name, it is common stock. Different

symbols imply different classes of shares. For example, "pf" means the shares are

Preferred stock.

Column 4: Ticker Symbol - This is the unique alphabetic name which identifies the stock.

Column 5: Dividend per Share - This indicates the annual dividend payment per share. If

this space is blank, the company does not currently pay out dividends.

Column 6: Dividend Yield - This states the percentage return on the dividend, calculated as

annual dividends per share divided by price per share.

Column 7: Price/Earnings Ratio - This is calculated by dividing the current stock price by

earnings per share from the last four quarters.

Column 8: Trading Volume - This figure shows the total number of shares traded for the

day, listed in hundreds. To get the actual number traded, add "00" to the end of the number

listed.




PCS SECURITIES LTD

Column 9 & 10: Day High & Low - This indicates the price range at which the stock has

traded at throughout the day. In other words, these are the maximum and the minimum prices

that people have paid for the stock.

Column 11: Close - The close is the last trading price recorded when the market closed onthe day.

Column 12: Net Change - This is the Rupee value change in the stock price from the

previous day's closing price. When you hear about a stock being "up for the day," it means

the net change was positive.

or any other instruments so declared by the central government These demand for and supply

of securities and funds determine, under competitive market conditions in goods and

securities market, the prices of securities.

Securities Market and Economic Growth

A well functioning securities market is conducive to sustained economic growth. There

have been a number of studies, starting from World Bank and IMF to various scholars, which

have established robust relationship not only one way, but also the both ways, between the

development in the securities market and the economic growth.

The securities market fosters economic growth to the extent that it-

• Augments the quantities of real savings and capital formation from any given level of

national income,

• Increases net capital inflow from abroad,

• Raises the productivity of investment by improving allocation of investible funds, and

(d) Reduces the cost of capital.

A Profile of Indian Securities Market

The past decade in many ways has been remarkable for securities market in India. It

has grown exponentially as measured in terms of amount raised from the market, number of

stock exchanges and other intermediaries, the number of listed stocks, market capitalization,

trading volumes and turnover on stock exchanges, and investor population. The market has

witnessed fundamental institutional changes resulting in drastic reduction in transaction costs

and significant improvements in efficiency, transparency and safety.




PCS SECURITIES LTD

Securities and Exchange Board of India (SEBI)

With the objectives of improving market efficiency, enhancing transparency,

checking unfair trade practices and bringing the Indian market up to international standards, a

package of reforms consisting of measures to liberalize, regulate and develop the securities

market was introduced during the 1990s. This has changed corporate securities market

beyond recognition in this decade. The practice of allocation of resources among different

competing entities as well as its terms by a central authority was discontinued. The secondary

market overcame the geographical barriers by moving to screen-based trading. Trades enjoy

counterparty guarantee.

Exchanges of capital market

Bombay Stock Exchange (BSE)

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich

heritage. Popularly known as "BSE", it was established as "The Native Share & Stock

Brokers Association" in 1875. It is the first stock exchange in the country to obtain

permanent recognition in 1956 from the Government of India under the Securities Contracts

(Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development of

the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide.

With Demutualisation, the trading rights and ownership rights have been de-linked

effectively addressing concerns regarding perceived and real conflicts of interest. The

Exchange is professionally managed under the overall direction of the Board of Directors.

The Board comprises eminent professionals, representatives of Trading Members and the

Managing Director of the Exchange.

National Stock Exchange (NSE)

The National Stock Exchange of India Limited has genesis in the report of the High

Powered Study Group on Establishment of New Stock Exchanges, which recommended

promotion of a National Stock Exchange by financial institutions (FII’s) to provide access to

investors from all across the country on an equal footing. Based on the recommendations,

NSE was promoted by leading Financial Institutions at the behest of the Government of India

and was incorporated in November 1992 as a tax-paying company unlike other stock

exchanges in the country






PCS SECURITIES LTD

BHEL

Bharti Airtel Ltd

DLF Ltd

Grasim Industries Ltd

Hdfc Bank Ltd

Hindalco Industries Ltd

Housing Development Financial Corporation Ltd

Icici Bank Ltd

Infosys Technologies Ltd

ITC Ltd

Jaiprakash Associates Ltd

Larsen and Toubro Ltd

Mahindra and Mahindra Ltd

Maruti Suzuki Ltd

NTPC Ltd

Oil and Natural Gas Corporation Ltd

Ranbaxy Laboratories Ltd

Reliance Communication Ltd

Reliance Industries Ltd

Relaince Infracture Ltd

SBI

Sun Pharmaceuticals Ltd

Sterlite Industries India Ltd

TCS Ltd

Capital Market Intermediaries




PCS SECURITIES LTD

There are several institutions, which facilitate the smooth functioning of the securities

market. They enable the issuers of securities to interact with the investors in the primary as

well as the secondary arena.

•

Merchant Bankers

• Credit Rating Agencies

• R& T Agents - Registrars to Issue

• Stock Brokers

• Custodians

• Mutual Funds

• Depositories

• Depository Participants

Players (investors) in securities market

• Individual investors

• Institutional investors

• FII’s

• Mutual fund investor

Capital Market Instruments

The changes in the regulatory framework of the capital market and fiscal policies have

also resulted in newer kinds of financial instruments (securities) being introduced in the

market. Also, a lot of financial innovation by companies who are now permitted to undertake

treasury operations, has resulted in newer kinds of instruments - all of which can be traded –

being introduced. The variations in all these instruments depend on the

Tenure, the nature of security, the interest rate, and the collateral security offered and the

trading features, etc.

• Debentures

•

Bonds

• Preference Shares




PCS SECURITIES LTD

• Equity Shares

• Government securities

Working hours for stock market

Generally trading in securities market commences from 9am and market closes on 3.30pm.

Capital Market Processes

There are various processes that Issuers of securities follow or utilize in order to tap the

savers for raising resources. Some of the commonly used processes and methods are

described below.

Initial Public Offering (IPO)

Private Placement

Preferential Offer/Rights Issue

Internet Broking

1. STATEMENT OF THE PROBLEM

To know the comparisons between commodity and capital market at the trading point of view. and also to analyse which is the best investment alternative.

In the past few years of the commodity and security market in India, little has been

done to educate and familiarize people with these products by the concerned institutions.

With the increase in liquidity in this market, the benefits of hedging risk using commodity

and security could be fully enjoyed by the investors, fund managers etc., resulting in a safe

and secure market place. A major need for accomplishing this at this juncture is to increase

investors’ awareness and education. The potential loss that could arise due to the volatility of

securities market also needs to be explained to those who use commodities for appreciation of

the benefits of the market.

2. OBJECTIVE OF THE STUDY:

Objective

Comparison of commodity market with secondary market

Sub objective




PCS SECURITIES LTD

To know the risk involved in secondary and commodity market.

To know the investment patterns of the investors in commodity and secondary market.

To know the awareness of customers towards commodity and secondary market

3. SCOPE OF THE STUDY:

The problem stated by PCS is to make comparison between commodity and secondary

market and investment patterns of the High Net-worth Individual investors (HNIs) in

Bangalore.

The study undertaken is the analysis of secondary market with commodity market and

investment pattern of Individuals where various independence variables are studied so as toknow which variable or variables can go a long way in explaining the investment preferences

of the targeted respondents of this high potential market. It also to know the current market

trend and competitors performance vis-à-vis PCS share market.

RESEARCH DESIGN

METHODOLOGY OF DATA COLLECTION

Primary data was collected from 100 respondents using a schedule of questions

Secondary data was collected mainly from the Internet, printed journals on the capital

markets of India and commodity market, newspaper articles and books written on the Indian

stock markets

LIMITATIONS

While completing this study, there were some constraints. They were:

Sample size: Due to constraints on time, the sample size had to be limited at 100.

This, by and large, may not represent the entire community of the Indian investor.




PCS SECURITIES LTD

This data gives a view of investors at PCS only. The investors at other brokerage

houses have not been taken into consideration. It is assumed however that the views of online

investors would not differ much.Tele – calling: Most of the data collection was done by tale

calling, which caused hindrance in time and also in obtaining precise and correct information.

Tele-calling caused problems like clients questioning the authority of the caller and providing

inaccurate information.

ANALYSIS AND INTREPRETATION

A). Sample size selected: 100

Total Number of customer available for survey: 100




PCS SECURITIES LTD

Interpretation

The above table shows that total 100 respondents are taken in to consideration for survey

and opinion of each respondent is collected of the services provided by PCS SECURITIES

LTD

b). Customer came to know about “PCS securities ltd “

Total no. Of sample taken: 100

1 2 3 4 5

Friends

News Papers/

Business Magazines Online Agent/Financial Others

47 18 10 14 11

Analysis

The above table shows the respondents know PCS FINANCIAL CONSULTANT is from

the friends is more. Nearly 47.00% of respondent will know. 18% of Customer through

News paper ,10% of Customer through online ,14% of Customer through Agent and

financial consultant and 11% of Customer know through. Other

Graph showing customer awareness about PCS SECURITIES LTD

Interpretation




PCS SECURITIES LTD

From the above chart it is clear that highest percentage of customers came to know

about PCS LTD is through their friends.

c). Settlement (Selling/ Buying in commodities as well as securities)


Extremely

Satisfied Satisfied

Neither satisfied/nor

Unsatisfied Unsatisfied

Extremely

unsatisfied

25 49 26 0 0

Analysis

The above table shows that service offered is Extremely Satisfied for25% of the

respondents; 49% of respondent are satisfied and 26% of respondent are having neutral

opinion of the settlement service.

Graph showing settlement of shares

Interpretation

From the above it is clear that none of the respondent is unsatisfied with the

settlement system of PCS securities LTD.

d) Demat


Extremely satisfied Satisfied

Neither satisfied/nor

Unsatisfied Unsatisfied

Extremely

unsatisfied38 46 16 0 0




PCS SECURITIES LTD

Analysis

The above table shows Demat services offered is satisfied.38% of the customers are

extremely satisfied, 46% Satisfied, 16%of of customer neither satisfied/nor.

Graph showing Demat services

Interpretation

There is no any customer who is not satisfied but everyone reaches the services of Demat

facility provided by PCS

e).Awareness level: Awareness of commodity market and capital market provided by

PCS.

Mode of

investment

respondents percentage

Securities 100 68

Commodities 100 32

Analysis

The above table is indicating that about 68%of the customers are aware about

securities trading and 32%of clients are aware of commodity trading so this

shows more number of people making their investment in securities rather thancommodities.

Graph showing awareness of the clients of different market




PCS SECURITIES LTD

Interpretation

From the above chart we can conclude that limited client’s opened the PCS comtrade

account and so limited people are aware of that.

f).Risk involved in trading of commodity and security market

Mode of

investment

percentage

Commodity 55%

security 45%

Analysis

Risk involves in both commodity and security but 45%of risk is in as we can buy and hold

for a long period of time on delivery basis.as55% of risk is there commodity as because

commodities are purchased on the basis of minimum lot size and on contract basis.

Graph showing risks in investment

Interpretation

The above graph shows that the clients have to bear more risk while making investment in

commodity market rather than security market.

g).Investment pattern of individuals in commodity and security market

Mode of

investment

percentage

Commodity 30%




PCS SECURITIES LTD

security 70%

Analysis

The above table shows that any individual who prefer to invest more in security is 70%

rather than commodity which is only 30%

Graph showing investment pattern of individuals in commodity and capital market

INTREPRETATION

From the above chart we can conclude that more individual prefer to invest in security

because as customer can purchase any amount of shares as compared that in commodity an

individual have to purchase the commodity on lot wise which incurs huge amount.

h). Table showing Time period of trading of commodity and securities

Mode of

investment

Time schedule(in

hours)

Commodity

(10am to night

11.30pm)

13

Security(9am to

3.30 pm)

6.5

Analysis

The above table shows that for 13 hours commodity was traded but security is traded only 6

hours

Chart showing time schedule for commodity and security trading




PCS SECURITIES LTD

Interpretation

The above chart shows that for more hours trading on commodity facilitates the exchange

rather than security.

FINDINGS, AND SUGGESTION

Findings

After analyzing the data, the following points were highlighted

Almost 32% of the clients trading commodity

Approximately 68% of the clients trading in capital market.

On the whole, employees and businessmen have totally agreed that the services offered

by PCS Comtrade. Ltd is hassle free.

The study shows that more than 50% of the clients came to know about PCS through

friends and rest is from online, newspapers and others agents.

It is found that maximum number of client is satisfied with settlement service and d-mat

services provided by PCS.

And also it is found that maximum risk is involved in commodity trading.

Suggestions

To create the awareness of commodity market because it is observed that the

commodity market are upcoming market to watch for investment.

Although investing in commodity market is risky but a systematic and close study of

the market before investing is more profitable.

The Managers should maintain the good relationship between clients and to keep in

touch with the clients at a regular basis




PCS SECURITIES LTD

Conclusion

To sum it all the result shows that the customers are much more aware of securities market

compare to commodity market, this shows that the commodity market has ample amount of

opportunities in upcoming days if the company creates the awareness about commodity

market.

We know that commodity market is more risky one compare to security market but a

systematic and close study of the commodity market before investing is more profitable.

For diversification of portfolio beyond shares, fixed deposits and mutual funds, commodity

trading offers a good option for long-term investors and arbitrageurs.

Considering the huge volatility witnessed in the equity markets recently the commodities

could add the required zing to investors' portfolio

Documents

Viny Final Project