India Bulls

PROJECT REPORT ON

AT NEW DELHI INSTITUTE OF MANAGEMENT STUDIES OKHLA, NEW DELHI A Project Report submitted in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO

MADURAI KAMARAJ UNIVERSITY, MADURAI BY

PREET KANWAR SINGH SANDHU Reg.No. - A8754324 Under the guidance of

“Ms.Vibha Kushwaha” JULY 2009 New Delhi Institute Of Management Studies 4

CERTIFICATE This is to certify that the Project Report at INDIABULLS HOUSE Submitted in partial fulfillment of the requirements for the award of The degree of

MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) To

MADURAI KAMARAJ UNIVERSITY, MADURAI Is a record of bonafide Training carried out by

PREET KANWAR SINGH SANDHU

Under my supervision and guidance and that no part of this report has Been submitted for the award of any other degree/ diploma/ Fellowship or similar titles or prizes.

Faculty Guide

Signature: Name: Ms.Vibha Kushwaha

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Qualifications: MSc (Applied Math’s) & PGDCA

Signature & seal of the learning center

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STUDENT’S DECLARATION I hereby declare that the project conducted at

INDIABULLS HOUSE Under the guidance of

Submitted in partial fulfillment of the Degree of

MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO

MADURAI KAMARAJ UNIVERSITY, MADURAI. Is my original work and the same has not been submitted for the award of any other Degree/Diploma/fellowship or other similar titles or prizes.

PREET KANWAR SINGH

Place: New Delhi

SANDHU Reg.No. - A8754324

New Delhi Institute Of Management Studies 4

Date: 02/07/2009

New Delhi Institute Of Management Studies 4

Acknowledgement I would like to sincerely acknowledge the constant support and guidance of my project

Mr. Karanjit Singh Sandhu has been instrumental in successful completion of the project. He provided me with all the resources and autonomy which made me put in the best of Efforts.

I would also like to express my gratitude towards the NEW DELHI INSTITUTE OF MGMT. STUDIES for giving me the opportunity to undergo summer internship at INDIABULLS

HOUSE. I am extremely grateful to Ms. Chhavi Magoo, Placement Advisor, NDIMS, and New Delhi who presented me with this opportunity to work for INDIABULLS HOUSE, which has enlightened my approach towards the chosen field of this organization.

I would also like to thank Miss. Ekta, Program Coordinator NDIMS, New Delhi, for designing such a course structure where real life projects are undertaken. And my special thanks to the whole employee fraternity of INDIABULLS HOUSE. Who were always there to extend a hand of co-operation. Also to all those respondents who facilitated me in successfully completing my project.

PREET KANWAR SINGH SANDHU

New Delhi Institute Of Management Studies 4

CONTENTS   

Certificates Acknowledgment Executive Summary

Chapter 1.

INTRODUCTION

1.1. General Introduction about the sector. 1.2. Industry Profile 1.2.1.Origin and development of the industry 1.2.2.Growth and present status of the industry 1.2.3.Future of the industry

Chapter 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7

Chapter 3. 3.1 3.2

Chapter 4. 4.1 4.2 4.3 4.4 4.5

Chapter 5. 5.1 5.2

PROFILE OF THE ORGANIZATION Origin of the organization. Growth and development of the organization. Present status of the organization Functional Departments of the organization Organization structure and organization chart Product and service profile of the organization competitors Market profile of the organization DISCUSSION ON TRANING My work profile (Role and responsibilities) Description of live experiences STUDY OF SELECTED RESEARCH PROBLEM Statement of research problem. Statement of research objectives. Research design and methodology. Analysis of data Summary of findings SUMMARY AND CONCLUSIONS. Summary of learning Experience. Conclusion and Recommendations.

Appendix a. Questionnaire New Delhi Institute Of Management Studies 4

b. Bibliography

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Executive Summary

The purpose of this report is to literally act as a window to the projects Undertaken as a part of the Internship with the Organization INDIABULLS HOUSE, that aims to define the breadth depth and scope of the various thinking processes and mechanics that actually synthesized the projects undertaken.

The objective of the project was to understand the working environment, culture and offerings of the company. This was to be done along with visiting Clients in New Delhi for the purpose of increasing their awareness regarding Investment in the services domain and in turn identifying potential prospects wherever possible.

The methodology followed was of finding out marketing strategy of clients and meeting them up for the purpose of understanding their corporations.

The project proved to be a great learning experience which taught me that it is not only our offerings but also our attitude, flexibility and innovation seconded by right amount of aggression which is important for sales.

I would like to sincerely thank my guides Mr. Karanjit Singh Sandhu, whose constant guidance and support have been instrumental in this endeavor.

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Chapter 1. Introduction

1.1 G e n e r a l i n t r o d u c t i o n a b o u t t h e s e c t o r Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises. As of 2004, the financial services industry represented 20% of the market capitalization of the S&P 500 in the United States. With increasing importance of money in every aspect of live it’s very important to manage this crucial aspect with the development in hand and the changing scenario of the world the need of the financial services industries was realized the concept was firstly tailored in U.S.A. Thus in present situation we are having multiple organization providing financial services other than banks. With the changing outfit of the financial market the attitude of the service is transforming day by day with technical and other developments.

History of financial service In the United States The term "financial services" became more prevalent in the United States partly as a result of the GrammLeach-Bliley Act of the late 1990s, which enabled different types of companies operating in the U.S. financial services industry at that time to merge. Companies usually have two distinct approaches to this new type of business. One approach would be a bank which simply buys an insurance company or an investment bank, keeps the original brands of the acquired firm, and adds the acquisition to its holding company simply to diversify its earnings. Outside the U.S. (e.g., in Japan), non-financial services companies are permitted within the holding company. In this scenario, each company still looks independent, and has its own customers, etc. In the other style, a bank would simply create its own brokerage division or insurance division and attempt to sell those products to its own existing customers, with incentives for combining all things with one company.

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Bank A "commercial bank" is what is commonly referred to as simply a "bank". The term "commercial" is used to distinguish it from an "investment bank", a type of financial services entity which, instead of lending money directly to a business, helps businesses raise money from other firms in the form of bonds (debt) or stock (equity). 

Private banking - Private banks provide banking services exclusively to high net worth individuals. Many financial services firms require a person or family to have a certain minimum net worth to qualify for private banking services. Private banks often provide more personal services, such as wealth management and tax planning, than normal retail banks.



Capital market bank - bank that underwrite debt and equity, assist company deals (advisory services,

underwriting

and

advisory

fees),

and

restructure

debt

into structured

finance products. 

Asset management - the term usually given to describe companies which run collective investment funds.



Hedge fund management - Hedge funds often employ the services of "prime brokerage" divisions at major investment banks to execute their trades.



Custody services - Custody services and securities processing is a kind of 'back-office' administration for financial services. Assets under custody in the world was estimated to $65 trillion at the end of 2004.

Insurance •

Insurance brokerage - Insurance brokers shop for insurance (generally corporate property and casualty insurance) on behalf of customers. Recently a number of websites have been created to give consumers basic price comparisons for services such as insurance, causing controversy within the industry. 

Insurance underwriting - Personal lines insurance underwriters actually underwrite insurance for individuals, a service still offered primarily through agents, insurance New Delhi Institute Of Management Studies 4

brokers, and stock brokers. Underwriters may also offer similar commercial lines of coverage for businesses. Activities include insurance and annuities, life insurance, retirement insurance, health insurance, and property & casualty insurance. 

Reinsurance - Reinsurance is insurance sold to insurers themselves, to protect them from catastrophic losses.

Other financial services 

Intermediation or advisory services - These services involve stock brokers (private client services) and discount brokers. Stock brokers assist investors in buying or selling shares. Primarily internet-based companies are often referred to as discount brokerages, although many now have branch offices to assist clients. These brokerages primarily target individual investors. Full service and private client firms primarily assist execute trades and execute trades for clients with large amounts of capital to invest, such as large companies, wealthy individuals, and investment management funds.



Private equity - Private equity funds are typically closed-end funds, which usually take controlling equity stakes in businesses that are either private, or taken private once acquired. Private equity funds often use leveraged buyouts (LBOs) to acquire the firms in which they invest. The most successful private equity funds can generate returns significantly higher than provided by the equity markets



Venture capital - Venture capital is a type of private equity capital typically provided by professional, outside investors to new, high-potential-growth companies in the interest of taking the company to an IPO or trade sale of the business.



Angel investment - An angel investor or angel (known as a business angel or informal investor in Europe), is an affluent individual who provides capital for a business startup, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital.



Conglomerates - A financial services conglomerate is a financial services firm that is active in more than one sector of the financial services market e.g. life insurance, general insurance, health insurance, asset management, retail banking, wholesale banking, investment banking, etc. A key rationale for the existence of such businesses New Delhi Institute Of Management Studies 4

is the existence of diversification benefits that are present when different types of businesses are aggregated i.e. bad things don't always happen at the same time. As a consequence, economic capital for a conglomerate is usually substantially less than economic capital is for the sum of its parts.

1.2 Industry Profile (A) Origin and development of the industry Everyone has similar, yet distinct, financial planning needs regarding their families' financial futures. While more wealthy people (think millions of dollars) have greater complexity to their financial affairs (caused largely by our incredibly convoluted U.S. personal tax codes), everyone needs sophisticated financial lifecycle planning. Whether wealthy or not yet wealthy, families need a personalized way to understand how their current financial behaviors could affect their families in the future. However, few people already own enough assets to justify the high cost of a competent and objective advisor. Only those who are already wealthy now can afford to pay directly for highly personalized, professional financial planning assistance. Direct client payments help to avoid the conflicts-of-interest that are inherent and pervasive in the structure of the financial services industry. (a) The financial services and advisory industry is almost exclusively focused on the interests of those who already have substantial financial assets and not on the mass of Americans who were trying to become more secure financially. Using many hundreds of thousands of what the securities industry calls "producer" employees, the brokerage industry sells investment products and services to clients for transactional fees, asset holding charges, and many other more or less visible investment costs. Governed by the Securities and Exchange Act of 1934, as amended, and state laws, the legal standard of client care by these brokers is the "suitability" of an investment to a client.

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However, there is huge latitude in what a suitable investment is and how much it costs a client. From the brokerage industry's perspective, the wealthier the client is the better. Greater assets yield more revenue and high profit per hour spent with clients. For example, Morgan Stanley's 2007 compensation plan for their personnel serving retail clients eliminated all compensation for household accounts below $50,000, and it reduced compensation on household accounts under $75,000, unless these client accounts are being charged a percent of assets fee. Clearly, the message to Morgan Stanley sales personnel is to chase wealthier fish. Similar messages are given to broker producer employees in all brokerage firms across the industry. (b) Another large segment of the financial services industry that serves the public consists of about 100,000 independent planning advisors, who are regulated at the federal and/or state levels. Governed by the Investment Advisers Act of 1940, as amended, and by state laws, these advisors have a seemingly more stringent fiduciary standard of client care. However, again there is huge latitude in what constitutes fiduciary care and how much advisory services will cost a client. Most registered investment advisors deliver services that are charged as a percent of client assets under management. However, very often these same advisors also obtain additional revenues from the securities and insurance industry, when they sell commissioned financial products to their clients. Again, the wealthier the advisory client the better it is for the advisory practice. The greater the client assets under management, then the more revenue for the advisory practice and the higher the profit per hour of client service will be. (c) Whether served by a broker or by an independent financial advisor, the economics of the industry are clear. If an individual wants personal professional attention, that individual must already have substantial assets that can generate revenue to compensate the advisor. If clients are to be given personalized attention and the valuable time of the advisor, each client must generate several thousand dollars in fees annually one way or another. The math is simple. For example, if average client servicing requires 20 total hours of attention yearly and a profitable hourly rate is $150 per hour, then the required average revenue per client is $3,000 per year. If

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$3,000/per year is the client revenue minimum for a practice, then the client needs to have $300,000, if the fee is 1% of assets per year. The lower the assets, then the higher the percentage necessarily must be. Since clients usually balk at much higher fees, the revenue requirements of advisory practices mean that people with less assets will not get personalized services. Clearly, the vast majority of Americans do not fit the industry's economic profile of a profitable advisory client on an hourly basis. This is why there is so much effort to obscure and hide the financial and investment costs that clients actually pay. The more the true cost can be hidden and the services offered as supposedly "free," then the easier it is to profit from the client, but not necessarily serve his or her best interests.

Investment advisory service A business that provides investing advice or counsel to an investor in exchange for a fee. Investment advisory services may interact directly with a client — for example, by managing assets — or may provide passive, general advice on which securities or industries are bullish or bearish. Investment advisory services managing a certain amount of money must register with the SEC; the actions of all investment advisory services are governed by the Investment Advisors Act of 1940. Importantly, it is a criminal offense for investment advisory services to provide false or misleading information, and to sell or buy their own securities to or from a client. See also: Investment adviser. Investment Advisory Service is a fee-based, support option that provides proactive support beyond to fit your product needs. This is not necessarily a distant, phone-based support options but it can be onsite support option that include working with the same technician for assistance with issues like accounting, auditing, advisory services and other services like product migration or new program development. This service is typically used for both shorter and long term engagements, and is designed for all companies who would like to hire any sort of Investment Advisory Service. This is essentially different from the traditional onsite consulting or sustained account management services that are available from other providers. Our Investment Advisory Service depart will provide you both short and long term advice and guidance for problems relating to business and accounts. The scope of the engagement is

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estimated prior to the delivery of the service, and a contract must be executed between the customer and our company, so that the overall work is perfect and satisfactory. Our Investment Advisory Service Department has offered a broad range of advisory and consulting services to private sector investors, businesses and client-country governments. The services that provide full in depth knowledge of banking and accounting domain and expertise related to small and medium enterprise expansion; institutional capacity building for investment promotion; government policies and business, legal and administrative practices that foster trade and investment; privatization, infrastructure and investment climates; fiscal management and more. All are designed to improve and sustain a company so that it has a steady graph of success and maintains its ability to attract and retain foreign direct investment, as well as give investors and businesses the tools and information to make sound investment decisions.

INVESTMENT INDUSTRIES IN INDIA:Indian industry has been buoyant and has manifested a spirit of dynamism. New developments are continuously being made in areas like oceanography, space, electronics and nonconventional energy sources. India's large pool of scientific and technological personnel has been contributing to research and development all over the world. Rapid growth of the services sector has led to India's emergence as one of the fastest growing economies of the world. The contribution of the services sector to the Indian GDP increased from 40.6 per cent in 1990 to 50 per cent in 2004, accounting for almost 62 per cent of the cumulative increase in the country's GDP. During 2004-05, the services growth was a robust 8.9 per cent. IT and ITs: The Ideal Workstation Banking and Financial Services industry (BFSI) and telecom continue to be the key sectors for IT spending and global players continue to start and ramp up their off shore operations in India. . In the last few years the BPO functions have been the key drivers of growth for the industry. There has been a distinct shift in business models from on-site delivery to off-shore delivery resulting in improved margins for the Indian players. .

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Banking and Financial Services industry (BFSI) and Telecom continue to be the key sectors for IT spending and global players continue to start and ramp up their off shore operations in India. While the significant cost advantage is a key driver for companies to initially consider India, those that have entered have also benefited from leveraging the superior quality of skills, processes and strategic advantages. Access to English speaking human resources is a critical advantage. . ITeS exports of India are estimated to cross USD 20 billion by 2009. 46 per cent of the US Fortune 500 companies are stated to see India as a potential outsourcing hub. Manufacturing Sector: The Resurgence The government has recently set up a National Manufacturing Competitiveness Council a think tank to enhance India's manufacturing competitiveness. Due to the various advantages, the outlook for the Indian manufacturing sector is quite positive. According to a CII-McKinsey, manufacturing exports from India are likely to grow to USD 300 billion in 2015 from USD 48 billion in 2003. The country is estimated to have a 3.5 per cent share of the world manufacturing trade then. Of the total USD 300 billion, USD 70- USD 90 billion is expected to come from just four sectors - apparel, auto components, specialty chemicals and electrical and electronic products. Telecommunications: Links With The World Competition brought about by liberalization in the sector and forward-looking regulatory changes (e.g. planned unified licensing) have helped India enjoy one of the least cost telecom services in the region. Despite of this large population India had low telephone density of approx. 9.26 in April,2005. This is estimated to grow to 12 -15 per cent in 2005 and 20 - 22 per cent by 2010. A large contribution towards this growth is expected to emanate from semi-urban and rural markets where telephone density is far below average. . Indians are continuing to go mobile as Average Revenue per Minute (ARPM) is among the New Delhi Institute Of Management Studies 4

lowest in the world. India added close to 20 million wireless subscribers in 2004, a growth of 160 per cent over net additions in 2003. The overall subscribers in India are estimated to reach 198 million by 2008. . During 2005-08 the Global System for Mobile Communication (GSM), Code-Division Multiple Access (CDMA), and wire line segments are expected to comprise 57 per cent, 37 per cent and 6 per cent of new additions respectively. The Indian telecom industry has witnessed consolidations, mergers and joint ventures, as large service providers are buying stakes in small companies. . With telecom subscription at a strategic inflection point, state-of-the-art high capacity national backbone and proliferating database services, India is set to become a huge market for tripleplay broadband services in the near future. Rapid and sustained growth of telecom market in the country also provides major investment opportunities for manufacturing and marketing /servicing of telecom equipment.

1.2. (B) Growth and present status of the industry The financial sector has kept pace with the growing needs of corporate and other borrowers. The sector has demonstrated growth and displayed stability through resilience built into the system. Banking Indian Banks Association (IBA) has projected significant growth for the Indian Banking sector. By 2010 it expects the deposits to grow at 14.51 per cent, loans and advances at a CAGR of 14.42 per cent, investments at 13.07 per cent and reserves and surplus at 17.14 per cent. The public sector banks (PSBs) are in the process of shedding their flab in terms of excessive manpower, Non Performing Assets (NPAs) and governmental equity, while the private sector banks are consolidating through mergers and acquisitions. Reserve Bank of India (RBI) has also initiated various steps towards the improvement of the banking industry in line with the global trends, for example, adoption of Basle II recommendations and deployment of Real Time Gross

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Settlement. Capital Market The Indian capital markets have witnessed a transformation over the last decade during which various initiatives were taken. Depository and share de-materialization systems have enhanced the efficiency of the transaction cycle. Forward trading mechanism with rolling settlement has brought about transparency. India has a vibrant capital market comprising 23 stock exchanges with over 9000 listed companies. Market capitalization of stocks traded on the Indian bourse touched an all time high of USD 292 billion in April 2004. The independent regulator for the sector, Securities and Exchange Board of India (SEBI), with statutory powers is functioning effectively. . The Mumbai stock exchange being the second largest in the world after the NYSE, continues to be the premier exchange in the country with an increase in market capitalization from USD 40 billion in 1990-91 to over USD 250 billion in 2003. The stock exchange has about 5,600 listed companies and an average daily volume of approximately USD 1 billion. The combined market capitalization of over 5000 companies listed on BSE was estimated to be INR 17 lakh crore in May 200512. . India has one of the lowest transaction costs based on screen based transactions, paperless trading and a T+2 settlements cycle. Many new instruments have been introduced in the markets, including index futures, index options, derivative, options and futures in select stocks. The volumes in derivatives trading have been increasing across the National Stock Exchange and Mumbai Stock Exchange. Asset Management The Indian mutual fund industry had assets valued at nearly USD 30 billion under management as at December 2003. In the one year ended 31 January 2005, the Indian Mutual Fund industry added INR 6,787.55 crore (~ USD 1.5 billion) to its kitty.13 This industry has witnessed rapid growth in the last four to five years, pursuant to the entry of a larger number of private sector players. During this period, sales more than quadrupled and assets under management grew by 30 to 40 per cent.

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There are about 30 asset management companies with the largest seven players controlling about 60 per cent of the assets under management. Overseas players too have entered the asset management business in India either individually or with Indian companies as partners. SEBI and an industry association of asset management companies, Association of Mutual Funds in India (AMFI), regulate the industry. Non Banking Financial Institutions Non Banking Financial Institutions include Non-Banking Finance Companies (NBFCs), Housing Finance Companies (HFCs) and Credit Rating Agencies. The Credit Rating Agencies rate corporate debt, including debenture and commercial paper and they also rate credit risk of companies, a factor often used by nationalized banks in evaluating loan applications. NBFCs provide loans and hire purchase finance mostly for retail assets while HFCs extend finance for housing. Large banks have rapidly gained market share in the housing finance sector.

1.2(c) future of the industry Future of the industry is very bright the world is shrinking down in the digital age the economic collaboration is increasing so the need to manage the wealth surplus is of at most priorities so, the scope of the financial services is increasing with leaps and bounds to present the future of the industry here is a glimpse of job potential and other things. Financial analysts and personal financial advisors held 397,000 jobs in 2006, of which financial analysts held 221,000. Many financial analysts work at the headquarters of large financial institutions, most of which are based in New York City or other major financial centers. More than 2 out of 5 financial analysts worked in the finance and insurance industries, including securities and commodity brokers, banks and credit institutions, and insurance carriers. Others worked throughout private industry and government. Personal financial advisors held 176,000 jobs in 2006. Jobs were spread throughout the country. Much like financial analysts, more than half worked in finance and insurance industries, including securities and commodity brokers, banks, insurance carriers, and financial investment firms. New Delhi Institute Of Management Studies 4

However, about 30 percent of personal financial advisors were self-employed, operating small investment advisory firms, usually in urban area Job Outlook Employment of financial analysts and personal financial advisors is expected to grow much faster than the average for all occupations. Growth will be especially strong for personal financial advisors, which are projected to be among the 10 fastest growing occupations. Despite strong job growth, keen competition will continue for these well paid jobs, especially for new entrants. Employment change. As the level of investment increases, overall employment of financial analysts and personal financial advisors is expected to increase by 37 percent during the 2006-16 decade, which is much faster than the average for all occupations. Personal financial advisors are projected to grow by 41 percent, which is much faster than the average for all occupations, over the projections decade. Growing numbers of advisors will be needed to assist the millions of workers expected to retire in the next 10 years. As more members of the large baby boom generation reach their peak years of retirement savings, personal investments are expected to increase and more people will seek the help of experts. Many companies also have replaced traditional pension plans with retirement savings programs, so more individuals are managing their own retirements than in the past, creating jobs for advisors. In addition, people are living longer and must plan to finance longer retirements. Deregulation of the financial services industry also is expected to continue to spur demand for personal financial advisors in the banking industry. In recent years, banks and insurance companies have been allowed to expand into the securities industry. Many firms are adding investment advice to their services and are expected to increase their hiring of personal financial advisors. Employment of financial analysts is expected to grow by 34 percent between 2006 and 2016, which is also much faster than the average for all occupations. Primary factors for this growth are increasing complexity of investments and growth in the industry. As the number and type of

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mutual funds and the amount of assets invested in these funds increase, mutual fund companies will need more financial analysts to research and recommend investments. Job prospects. Despite overall employment growth, competition for jobs is expected to be keen in these high-paying occupations. Growth in the industry will create many new positions, but there are still far more people who would like to enter the occupation. For those aspiring to financial analyst jobs, a strong academic background is absolutely essential. Good grades in courses such as finance, accounting, and economics are very important to employers. An MBA or certification is helpful in maintaining employment. Personal financial advisors will also face competition, as many other services compete for customers. Many individuals enter the field by working for a bank or full-service brokerage. Most independent advisories fail within the first year of business, making self-employment challenging. Because the occupation requires sales, people who have strong selling skills will ultimately be most successful. A college degree and certification can lend credibility.

Employmen Projected Occupational title

t

employment,

Number

Percent

544,000

147,000

37

295,000

75,000

34

72,000

41

2006

2016

397,000

Financial analysts

221,000

Personal financial advisors

176,000

Financial analysts and personal financial advisors

Change, 2006-16

248,000

.

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Chapter 2.

Profile of the organization

2.1 Origin of the organization:-

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

Sameer Gehlaut, Chairman, CEO & Whole Time Director: Sameer, aged 30 years, graduated with a Mechanical Engineering Degree from the Indian Instituteof Technology, Delhi. He was one of the three engineers selected by Halliburton to work for itsinternational services business in the year 1995 and worked in many countries during his tenurethere. He gained experience, learned international best practices and imbibed professional workculture at Halliburton, which he brought to Indiabulls Group as one of the founders of our Company. He has gained extensive experience in the Financial Services Sector and developed in-depth knowledge and strong understanding of all aspects of the Securities Industry and Financial Services Business. Under his leadership, Indiabulls Group has grown from one office, 310 New Delhi Institute Of Management Studies 4

clients, and 8 employees in FY 2000 to 32,359 clients, 70 offices and 606 employees as on April 30, 2004. Sameer currently does not possess a voter ID or driving license. His ration card no. is 1A1/03/533/ 1430/663.

Rajiv Rattan, President, CFO & Whole Time Director: Rajiv, aged 31 years, an NTSE Scholar, graduated with an Electrical Engineering Degree from theIndian Institute of Technology, Delhi. He was the only engineer selected by Schlumberger to workfor its international services business in the year 1994 and worked in many countries during his tenure there. He gained extensive experience in international best practices, process management,and risk management, which he brought to Indiabulls Group as one of the founders of our Company. He has gained extensive experience in the Financial Services Sector, and has developed understanding of risk management, efficient processes and operational excellence. Rajiv currentlydoes not possess a voter ID and his driving license no. is P92123759.

Saurabh Mittal, Director: Saurabh, aged 30 years, graduated with an Electrical Engineering Degree from the Indian Instituteof Technology, Delhi and was declared the best graduating student in 1995. He was one of theengineers selected by Schlumberger to work for its international services business in the year 1995and worked in many countries during his tenure there. He graduated with a Masters of Business Administration from the Harvard Business School where he graduated as a Baker Scholar. He worked at Citigroup Asset Management as an investment analyst, and is currently a New Delhi Institute Of Management Studies 4

senior portfoliomanager at Farallon Capital Partners L. P. He has developed an understanding of international financial markets, and extensive experience in the Securities industry. Saurabh is responsible for strategic decision-making and is the director of our Company. Saurabh's voter ID no. is DL/06/061/072727 and currently he does not possess a driving licens. We confirm that the Permanent Account Number, Bank Account Number and Passport Number of the promoters have beensubmitted to NSE and BSE at the time of filing the Red Herring Prospectus with themIndiabulls Financial Services Limited was incorporated on January 10, 2000 as M/s Orbis Infotech Private Limited at New Delhi under the Companies Act, 1956 with Registration No. 55 – 103183. The name of our Company was changed toM/s. Indiabulls Financial Services Private Limited on March 16, 2001 due to change in the main objects of our Companyfrom Infotech business to Investment & Financial Services business. It became a Public Limited Company on February 27,2004 and the name of our Company was changed to M/s. Indiabulls Financial Services Limited. Our Company was promoted by three engineers from IIT Delhi, and has attracted more than Rs.700 million as investments from venturecapital, private equity and institutional investors such as LNM India Internet Ventures Ltd., Transatlantic Corporation Ltd., Farallon Capital Partners, L.P., R R Capital Partners L.P., and Infinity Technology Trustee Pvt. Ltd. and has developedsignificant relationships with large commercial banks such as Citibank, HDFC Bank, Union Bank, ICICI Bank, ABN AmroBank, Standard Chartered Bank, Lord Krishna Bank and IL&FS. Our Company and our subsidiaries have facilities from theabove mentioned banks and financial institutions aggregating to Rs. 1760 million, for further details please refer to pageno. 26. Our Company headquarters are co-located in Mumbai and Delhi, allowing it to access the two most importantregions for Indian financial markets, the Western region including Mumbai, rest of Maharashtra and Gujarat; and theNorthern region, including the National Capital Territory of Delhi, nearby cities, parts of Haryana, Uttar Pradesh and Punjab;and access the highly skilled and educated workforce in these cities. The Marketing and Sales efforts are headquarteredout of Mumbai, with a regional headquarter in Delhi; and its back office, risk management, internal finances etc. areheadquartered out of Delhi, allowing our Company to scale these processes efficiently for the nationwide network.

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Main Objects Of The Company The main objects to be pursued by the Company on its incorporation are: 1. To hold investments in various step-down subsidiaries for investing, acquiring, holding, purchasing or procuringequity shares, debentures, bonds, mortgages, obligations, securities of any kind issued or guaranteed by ourCompany. 2. To provide financial consultancy services; to provide investment advisory services on the internet or otherwise;provide financial consultancy in the area of personal and corporate finance; publish books and CD ROMs and anyother information related to the above. 3. To conduct the business of sale, purchase, distribution and transfer of shares, debts, instruments and hybridfinancial instruments and to perform all related, incidental, ancillary and allied services. 4. To conduct depository participant services; to conduct de-materialisation and re-materialisation of shares; set updepository participant centers at various regions in India and to perform all related, incidental, ancillary and alliedservices. 5. To receive funds, deposits and investments from the public, Government agencies, financial institutions andcorporate bodies; grant advances and loans; conduct advisory services related to banking activities, projectfinancing, funding of mergers and acquisition activities; fund management and activities related to money marketoperations. 6. To carry on the business of portfolio management services, investment advisory services; custodial services; assetmanagement services; leasing and hire purchase; mutual fund services and to act as brokers of real estate andfinancial instruments. 7. To carry on the business of financing; provide lease and hire purchase services; to provide consultancy in thearea of lease and hire purchase financing. 8. To operate mutual funds; receive funds from investors; equity or debt instrument research activity instrument indebt and/or equity instruments. CREDIT RATING Indiabulls Securities Limited has been granted ‘PR1+’ rating for its unsecured short term borrowing program of Rs. 200million. Vide letter dated May 5, 2004 the rating agency has increased the unsecured short term borrowing limit to Rs. 320 million maintaining the ‘PR1+’ rating. ISL also enjoys ‘A+’ rating for medium to long term unsecured borrowing program ofRs.

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200 million. The Rating to the company has been assigned by Credit Analysis Research Limited. As for the present issue of equity shares of our Company, credit rating is not required. SHAREHOLDERS AGREEMENT Shareholders Agreement was entered into by and among our Company (formerly Orbis Infotech Private Limited), InfinityTechnology Trustee Private Limited as the trustee of Infinity Venture India Fund, LNM India Internet Ventures Limited,Transatlantic Corporation Limited (together the “VC Investors”) and the Promoters dated November 2, 2000. The VC Investors invested an aggregate amount of Rs. 206,000,000 in our Company for which they were issued 55,425 equityshares at an average price of Rs. 3,716.73 per equity share. Pursuant to a letter agreement (the “Letter Agreement”) dated May 27, 2004 between the parties to the Shareholders Agreement, each of the VC Investors have agreed not to enforce rights that have accrued to them before the said Letter Agreements and have agreed that the Shareholders Agreement, together with all the rights and obligation on the parties will stand terminated immediately upon the listing of the shares of our Company and consequent to the listing, the rights of the Shareholders Agreement, including the rights that have arisen prior to such termination shall be terminated. A copy of the Shareholders Agreement, and a copy of the Letter Agreement terminating the Shareholders Agreement are available for inspection as material documents at the corporate offices of our Company. SHARE SUBSCRIPTION AGREEMENT The Share Subscription Agreement (“SSA”), dated February 13, 2004, has been entered into among the Farallon CapitalPartners, L.P. RR Capital Partners, L.P. (“Investors”), ISL, our Company, and the Promoters. Under the terms of the SSA, the Investors have subscribed to 1000 equity shares of ISL at Rs. 50 per share (comprisingof a face value of Rs. 10 and a premium of Rs. 40) and 4,52,70,000 preference shares of ISL at Rs. 10 each being theface value of the preference shares. The aggregate investment by Investors in ISL amounted to approximately US$ 10 million.22 The terms of the Preference Shares and equity shares issued by ISL under the SSA are as follows:_ Rank of Preference Shares: The Preference Shares shall, subject to applicable Law, rank senior to all classesof the Company’s capital stock with respect to dividend distributions and repayment of capital and premium upon a bankruptcy or change in control with respect to ISL,

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unless the terms and conditions of such class expresslyprovide that such class will rank senior to or on parity with the Preference Shares._ Dividends: The rate of dividend payable on the Preference Shares shall be at the rate of 12.00% per annum,payable quarterly, on the face value of Rs. 10 from the date of issuance of such Preference Shares through thedate of redemption of such shares. Such dividends shall be fully cumulative and accumulate at the rate indicated above, whether or not they have been declared and whether or not there are profits, surplus or other funds ofthe Company legally available for the payment of dividends. All such dividends shall be paid quarterly in arrearsin cash on each June 1, September 1, December 1 and March 1._ Redemption: The maturity date of the Preference Shares shall be February 13, 2007. ISL shall, on the maturitydate, redeem all of the outstanding Preference Shares and shall pay each Investor a redemption price whichwould include the face value of the Preference Shares together with any accrued and unpaid dividends on such Preference Shares held by such Investor. Upon happening of certain events like bankruptcy, change in control, breach or any change in law causing a material adverse effect on ISL or the Company or failure of payment ofdividends within four weeks of declaration, the Investors would have a right to require ISL to redeem the Preference Shares prior to the maturity date. Additionally, ISL shall have an option to redeem either 50% or 100% of the outstanding Preference Shares at any time prior to the Maturity Date at the Redemption Price. In case of redemption within 12 months from the date of issue, ISL shall be required to pay dividends for atleast 12 months._ Liquidation Preference: Liquidation Event has been defined in the agreement as: a consolidation or merger of ISL, a sale, lease or conveyance by ISL of all or substantially all of its assets, or any other transaction which results in the sale, transfer, assignment, conveyance or other disposition of 50% or more of the voting power of ISL, unless the majority holders of the then-outstanding shares of Preference Shares shall otherwise agree. The Agreement provides that upon the liquidation, winding up or dissolution of ISL, or the occurrence of a Liquidatio Event, there is a liquidation preference in favour of the Investors. The Investors shall have a right to appoint aboard observer on the board of ISL. IFSL shall maintain its shareholding in ISL at the same level as at the time of investment by Investors till such time as the Shares issued to the Investors in ISL are redeemed._ In the event ISL does not have sufficient funds to redeem the Investor’s Shares, IFSL and Promoters shall make available sufficient cash to ISL to facilitate the redemption of the Investor’s Shares. _ In case of any issue of shares by IFSL whether by way of private placement or public offering,40% of such anoffering or issuance shall have to be given to ISL, until ISL has sufficient funds available for redemption of Investor’s Shares. The Investors vide a waiver letter dated New Delhi Institute Of Management Studies 4

June 7, 2004 have agreed to waive this obligation of IFSL in respect of the proposed Issue/Offer and such waiver shall be valid till completion of the IPO or September1, 2004, whichever is earlier.If the assets or surplus funds to be distributed to the Investors are insufficient to permit the payment to each Investor, the assets and surplus funds legally available for distribution shall be distributed ratably among the Investors in proportion to the full Redemption Price that each Investor would otherwise be entitled to receive. Negative Covenants ISL shall not on any date permit the debt-equity ratio to exceed 7:1. Further, ISL shall not on any date permit the ratio of debt (not including secured Indebtedness specifically secured by client deposits or margin leverage) equity ratio, to exceed 3:1.No Secured Indebtedness: None of IFSL or any of its subsidiaries (other than ISL) shall,directly or indirectly, create, incur, assume or guaranty, or otherwise become or remain directly or indirectly liable with respect to any Indebtedness which is secured by a lien on any of the assets or properties of ISL._ No Restricted Payments: ISL shall be restricted from making certain payments including any distribution of dividend on equity shares until such time as ISL has adequate cash available for the redemption of Preference Shares.In addition to the above rights, the equity shares subscribed by the Investors in ISL also entitles them to the following rights with respect to ISL:The consent of the Investors holding atleast 50% of the equity shares shall be required for certain items which interalia .

2.2 Growth and development of the Organization: We have emerged as a diversified financial services company that offers a wide range of financial products and services under the brand “Indiabulls”. On March 30, 2001 our Company was registered as an NBFC under section 45-IA of RBI Act to carry on the business of NBFC, not accepting public deposits, as our company is a holding company. Subsequently, our Company has started investing and providing loans to our subsidiary companies engaged in different activities as mentioned in the above diagram. With effect from April 1, 2004, our Company has also commenced the activity of providing credit facilities to retail customers. We operate through our three subsidiaries– Indiabulls Securities Limited, Indiabulls Insurance Advisors Pvt. Ltd. and Indiabulls Commodities Pvt. Ltd. with a presence in equity, debt and derivatives brokerage, depositary services, access to third party insurance products from Birla New Delhi Institute Of Management Studies 4

Sunlife Insurance Company and mutual fund products of various asset management companies, and related financial services. Our Company and our subsidiaries provide brokerage,services and third party financial products and other services through a variety of channels to retail and institutional clients and operate nationally in India. We are headquartered in New Delhi with a network of 70 offices spread across 55 cities. Our Company and our subsidiaries target the retail and the institutional segment of the market through direct and indirect channels. The direct channel for business is through our sales employees who operate out of our 70 offices in 55 cities. The indirect channel for business is through our network of marketing associates, people who are not on the rolls of the company. ISL has invested heavily in building a strong sales team and as on April 30, 2004 it had over 476 relationship managers in its 70 offices spread all over the country. With the sales and marketing team, our Company and our subsidiaries are able to cross sell many financial products such as insurance and mutual funds. We have experienced substantial growth at a CAGR of 132.97% over FY 2002 to FY 2004 in revenues and achieved a substantial market share in the Equity, F&O and Debt market leading to a combined average daily turnover of Rs. 4451.5 million for the FY 2004.Our consolidated revenues and net profits have grown at a CAGR of 132.97% and 118.31% respectively over last two years. Our revenues have grown from Rs. 132.55 million in FY 2002 to Rs. 266.69 million in FY 2003 and to Rs.719.48 million in FY 2004. Our net profits have increased from Rs. 40.61 million in FY 2002 to Rs. 51.05 million in FY 2003 and to Rs. 193.54 million in FY 2004. Our total number of employees grew from 110 as in FY 2002 to 178 as in FY 2003 and to 606 as on April 30, 2004. BUSINESS MODEL Our Company and our subsidiaries have a vast client base of 32,359 clients as on April 30, 2004 spread all over India and we have been augmenting our client base across the country, which makes our business model a low risk model as compared to a business model which may be dependent on very few clients. Our revenues are largely based on fee/commission income generated through providing securities brokerage & related financial services to individual investors and independent advisors. Our Company and our subsidiaries focus on a core client base of individual investors and the marketing associates who serve them. We offer the following products and services in the financial markets:

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•

Stocks

•

Options and Futures 25

•

Depository Services

•

Commodities

•

Insurance Products

•

Mutual Funds

•

Bonds and Debt Products

Table of company income

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2.3 Present status of the Organization: We have emerged as a diversified financial services company that offers a wide range of financial products and services under the brand “Indiabulls”. On March 30, 2001 our Company was registered as an NBFC under section 45-IA of RBI Act to carry on the business of NBFC, not accepting public deposits, as our company is a holding company. Subsequently, our Company has started investing and providing loans to our subsidiary companies engaged in different activities as mentioned in the above diagram. With effect from April 1, 2004, our Company has also commenced the activity of providing credit facilities to retail customers. We operate through our three subsidiaries– Indiabulls Securities Limited, Indiabulls Insurance Advisors Pvt. Ltd. and Indiabulls Commodities Pvt. Ltd. with a presence in equity, debt and derivatives brokerage, depositary services, access to third party insurance products from Birla Sunlife Insurance Company and mutual fund products of various asset management companies, and related financial services. Our Company and our subsidiaries provide brokerage,services and third party financial products and other services through a variety of channels to retail and institutional clients and operate nationally in India. We are headquartered in New Delhi with a network of 70 offices spread across 55 cities. Our Company and our subsidiaries target the retail and the institutional segment of the market through direct and indirect channels. The direct channel for business is through our sales employees who operate out of our 70 offices in 55 cities.

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The indirect channel for business is through our network of marketing associates, people who are not on the rolls of the company. ISL has invested heavily in building a strong sales team and as on April 30, 2004 it had over 476 relationship managers in its 70 offices spread all over the country. With the sales and marketing team, our Company and our subsidiaries are able to cross sell many financial products such as insurance and mutual funds. We have experienced substantial growth at a CAGR of 132.97% over FY 2002 to FY 2004 in revenues and achieved a substantial market share in the Equity, F&O and Debt market leading to a combined average daily turnover of Rs. 4451.5 million for the FY 2004. Our consolidated revenues and net profits have grown at a CAGR of 132.97% and 118.31% respectively over last two years. Our revenues have grown from Rs. 132.55 million in FY 2002 to Rs. 266.69 million in FY 2003 and to Rs.719.48 million in FY 2004. Our net profits have increased from Rs. 40.61 million in FY 2002 to Rs. 51.05 million in FY 2003 and to Rs. 193.54 million in FY 2004. Our total number of employees grew from 110 as in FY 2002 to 178 as in FY 2003 and to 606 as on April 30, 2004.

Our ongoing investment in technology is a key element in expanding our product and service offerings, enhancing our delivery systems, providing fast and consistent client service, reducing processing costs, and facilitating our ability to handle significant increases in client activity without a corresponding rise in risk and staff. Our Company and our subsidiaries have an inNew Delhi Institute Of Management Studies 4

house technology team of 27 people comprising of several engineers. The in-house technology team has been responsible for developing the technology products for operating at a large scale with efficient back office systems. The application of technology allows our Company and our subsidiaries to build scaleable product and service offerings. The in-house technology team developed one of the first Internet trading platforms in India, one of the first in-house real-time CTCL link with NSE. Our Company and our subsidiaries introduced integrated accounts with automated gateways with client bank accounts so that they can transfer funds to and from their bank account to their brokerage account with us. This has enhanced customer ability to access their funds for market related activities. The inhouse technology team has 26 good expertise to create mission critical applications and in the maintenance and upkeep of high transaction processing of our website. Strong Sales and Marketing Teams with continuous reinvestment and training: Our relationship manager channel (through a team of 476 Relationship Managers as on April 30, 2004) offers a single point contact to our retail customers whereby our high networth clients have separate relationship managers catering to them. These managers offer personalized services to our customers helping build strong and continuing relationships with them. Also, our marketing associate channel helps our Company and our subsidiaries in client acquisitions at minimal costs with client loyalty. The marketing associates channel also helps our Company and our subsidiaries in increasing our penetration in smaller town and cities. Strong Cross Selling Opportunities: With our 70 branches spread over 55 cities all over India and variety of financial products and offerings coupled with online, relationship manager & marketing associate channels, our Company and our subsidiaries have strong cross product selling opportunities thus providing a multi-channel delivery systems to our diverse client base of of 32,359 clients as on April 30,2004. Strong Team of Experienced Promoters:

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We have a strong team of promoters who are engineers from Indian Institute of Technology and have several years experience in financial services industry. We believe that their strong technical experience will help us in achieving our key business strategies. Leading Product innovation and marketing strategies: Our management is innovative and nimble and has historically introduced many new and innovative products to the market place that have played a significant role in our growth. Our relationship manager model has introduced private banking experience to the clients. The relationship managers are trained and incentivised to work with their client base and enhance our ability to cross sell and leverage the large client base. We have launched marketing associate model, which replaces the traditional sub-broker model with an authorized person that client can appoint independently and provide them with the benefit of our trading, clearing and servicing strengths. Our equity analysis product provides clients with unbiased research. We plan to continuously innovate and introduce market leading products and services to add to its competitive advantage. Well capitalized player, with strong banking relationships and credit ratings: Our consolidated networth is Rs. 1023.19 million making us a well capitalised company. Our Company and ISL have received sanctioned facilities of Rs. 1760 million from 9 leading commercial banks and financial institutions. The details of the banking relationships as of July 24, 2004 are as follows:

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The Rs. 320 million unsecured commercial paper of Indiabulls Securities Limited is rated as ‘PR1+’ by Credit Analysis and Research Limited. The high rating allows us to raise unsecured debt at very attractive rates. Leading commercial banks have invested in our unsecured commercial paper.

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GEOGRAPHICAL DISTRIBUTION OF BRANCHES ISL has a national presence through its 70 branches in 55 cities, covering 17 states. The locations of our offices have been selected based on the demand of financial products in any particular city.

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2.4 Functional Departments of the Organization. A company organized with a functional structure groups people together into functional departments such as purchasing, accounts, production, sales, marketing, advertising, subscriptions, Outstation business development, Book fairs and Seminar etc.. These departments would normally have functional heads that may be called managers or directors depending on whether the function is represented at board level. Functional structures are perhaps the most common organizational model used by companies; alternatives include matrix arrangements or business unit teams. Our Company may be unable to use the proceeds of the Issue for the intended purpose, due to unplanned acquisitions, unplanned capital expenditure requirements, unforeseen losses or potential legal liabilities. The failure to use the proceeds for the intended purposes will be harmful to us and would hamper our growth potential in the existing businesses. Our Company does not have a proven track record in handling businesses that it may enter through the acquisition route or otherwise and hence the success of new businesses in the overall growth strategy of our Company cannot be predicted.

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SALES DEVELOPMENT • • • •

Responsible for making sure that customer is happy Responsible for building a positive relationship with customer. Communicate with customer all the time Process and monitor customer order

PURCHASE DEPARTMENT • • •

Responsible for doing all the shopping of business Establish and maintain an excellent Supplier relationship. Manages stock.

FINANCE DEPARTMENT • • •

Responsible for managing all the finance of the company. Pay bills on behalf of Organization. Works closely with HR department so the wages can be paid to employees.

HUMAN RESOURCE DEPARTMENT • •

Recruitment and training employees. Calculate wages.

Advertisement Department Bring a product or service to tension and attention of potential and current customers. Aims at profits as the advertising department generates resources for the company or institution.

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2.5 Organization Structure and Organization Chart:Marketing Department:Indiabulls House has many departments in organisation as marketing department,

Finance Department:-

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H.R. Department Parties, readings, panel discussions, special speakers, fairs and festivals hosted by your magazine. These are key to building an audience for your magazine and reaching new readers, while also potentially bringing in extra income. There’s much to be said on the subject of events, but overall aim to be original, interactive and true to your magazine. The challenge is to come up with novel ways to promote the theme of a particular issue or the zeitgeist of your magazine as a whole that will both appeal to your regular readers and potentially entice new readers. But don’t just hold a launch party and sit back and wait for people to arrive in droves. Come up with alluring reasons for people to want to attend, usually some combination of: prizes/giveaways, live entertainment (a band, a guest speaker, a panel discussion) and something fun and out of the Ordinary. Email Promotion If you’re on a shoestring budget, sending email is inexpensive. Ask your friends to send to their friends and so on. With work and persistence, your magazine should be able to develop a list of hundreds if not thousands of interested readers. At all events, collect emails for the mailing list. On your website ask people to join your mailing list. Never miss an opportunity to Get an email address so you can promote your events and issues for an incredibly low cost. You should also develop an email list of the local media so you can quickly and easily send out press releases about new issues and events. Website Promotion:It’s cheap and easy to create a website and you should always have one for your magazine. On the site you should ask people to join your mailing list, highlight exciting upcoming events, and offer different, interesting ways that people can participate in the zeitgeist of your magazine beyond just reading the articles. If you’re stuck for ideas, spend some time visiting different magazine websites and see what they do. Exchanges:Most small magazines are willing to exchange ads and banners. Develop a consistent look for your own ads and banners and keep them appearing on a regular basis.

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Touring:Now that you’ve got a website, an email list, ad and banner exchanges and you’re a regular at presenting great events in your local community, it’s time to expand! Touring doesn’t have to involve hotels and expensive flights. You can tour cheaply if you sleep in living rooms and drive Everywhere yourself. First, come up with an interactive and entertaining plan. Second, make sure that you have local people chosen to get involved in every community you visit. The locals are key to spreading the word and attracting an audience. Local involvement should include local performers and a local venue such as a bookstore or art gallery or reading series that is willing to help you promote. Choose your tour destinations based on the interest of local partners. Then plan a feasible tour, about 8 venues. Post all the information about the on the website and in your emails and ad exchanges. Presto, you have yourself a tour. So, if you organize regular events in your community, develop a healthy email list and an Informative website, run ads and banners and tour as much as possible, your magazine will grow—slowly but surely.

2.6 Product and service profile of the organization competitors The excess opportunity in the growing financial market number of player immerges thus the financial market is now become a perfect competition market mainly the players in the financial sector service providers also have varieties of products to attract client. In this context the main competitors of organizations are: •

BANKING SECTORS (due to product diversification)

•

RELIGARE

•

SMC

•

INDIA INFOLINE

•

UNICONN

Strengths •

Sound, research-based advice

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•

Unbiased, independent and need-based advice

•

Prompt, courteous service

•

Honest, ethical dealings

•

Accessib During 2005-08 the Global System for Mobile Communication (GSM), Code-Division

Multiple Access (CDMA), and wire line segments are expected to comprise 57 per cent, 37 per cent and 6 per cent of new additions respectively. The Indian telecom industry has witnessed consolidations, mergers and joint ventures, as large service providers are buying stakes in small companies. . With telecom subscription at a strategic inflection point, state-of-the-art high capacity national backbone and proliferating database services, India is set to become a huge market for tripleplay broadband services in the near future. Rapid and sustained growth of telecom market in the country also provides major investment opportunities for manufacturing and marketing /servicing of telecom equipment.

2.7 Market profile of the Organization The financial sector has kept pace with the growing needs of corporate and other borrowers. The sector has demonstrated growth and displayed stability through resilience built into the system. Banking Indian Banks Association (IBA) has projected significant growth for the Indian Banking sector. By 2010 it expects the deposits to grow at 14.51 per cent, loans and advances at a CAGR of 14.42 per cent, investments at 13.07 per cent and reserves and surplus at 17.14 per cent. The public sector banks (PSBs) are in the process of shedding their flab in terms of excessive manpower, Non Performing Assets (NPAs) and governmental equity, while the private sector banks are consolidating through mergers and acquisitions. Reserve Bank of India (RBI) has also initiated various steps towards the improvement of the banking industry in line with the global trends, for example, adoption of Basle II recommendations and deployment of Real Time Gross Settlement. New Delhi Institute Of Management Studies 4

Capital Market The Indian capital markets have witnessed a transformation over the last decade during which various initiatives were taken. Depository and share de-materialization systems have enhanced the efficiency of the transaction cycle. Forward trading mechanism with rolling settlement has brought about transparency. India has a vibrant capital market comprising 23 stock exchanges with over 9000 listed companies. Market capitalization of stocks traded on the Indian bourse touched an all time high of USD 292 billion in April 2004. The independent regulator for the sector, Securities and Exchange Board of India (SEBI), with statutory powers is functioning effectively. . The Mumbai stock exchange being the second largest in the world after the NYSE, continues to be the premier exchange in the country with an increase in market capitalization from USD 40 billion in 1990-91 to over USD 250 billion in 2003. The stock exchange has about 5,600 listed companies and an average daily volume of approximately USD 1 billion. The combined market capitalization of over 5000 companies listed on BSE was estimated to be INR 17 lakh crore in May 200512. . India has one of the lowest transaction costs based on screen based transactions, paperless trading and a T+2 settlements cycle. Many new instruments have been introduced in the markets, including index futures, index options, derivative, options and futures in select stocks. The volumes in derivatives trading have been increasing across the National Stock Exchange and Mumbai Stock Exchange. Asset Management The Indian mutual fund industry had assets valued at nearly USD 30 billion under management as at December 2003. In the one year ended 31 January 2005, the Indian Mutual Fund industry added INR 6,787.55 crore (~ USD 1.5 billion) to its kitty.13 This industry has witnessed rapid growth in the last four to five years, pursuant to the entry of a larger number of private sector players. During this period, sales more than quadrupled and assets under management grew by 30 to 40 per cent.

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There are about 30 asset management companies with the largest seven players controlling about 60 per cent of the assets under management. Overseas players too have entered the asset management business in India either individually or with Indian companies as partners. SEBI and an industry association of asset management companies, Association of Mutual Funds in India (AMFI), regulate the industry. INVESTMENT INDUSTRIES IN INDIA:-

Indian industry has been buoyant and has manifested a spirit of dynamism. New developments are continuously being made in areas like oceanography, space, electronics and nonconventional energy sources. India's large pool of scientific and technological personnel has been contributing to research and development all over the world. Rapid growth of the services sector has led to India's emergence as one of the fastest growing economies of the world. The contribution of the services sector to the Indian GDP increased from 40.6 per cent in 1990 to 50 per cent in 2004, accounting for almost 62 per cent of the cumulative increase in the country's GDP. During 2004-05, the services growth was a robust 8.9 per cent.

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Chapter 3. Discussion On Training 3.1

Student’s work Profile Knowledge is cumulative: every piece of research will contribute another piece to it.

That is why I commenced my research with a review of literature related to attrition and retention of employees. In today’s era of high competition, individualism, with opportunities available in abundance etc., retaining talent in the IT Industry has become a big challenge. Good retention scheme not only help in retaining the talent, but also acts as catalyst towards attracting more talent from around the industry. It is better to retain the existing talent then to keep on hiring continuously. A recent survey calculated that the cost of replacing high level employee might be as much as 150% of the departing employee’s salary. It helps to save and reduce on recruitment cost and portrays a culture of loyalty among the employee towards the organization, helping the HR department to concentrate on other important soft functions. “The major issue now-a-days is not just retention but retaining the ‘talented employee’ whose turnover may destabilize the functioning of the organizations and reduce the company’s competitiveness in the market.” The company may adopt the following tips to retain for tomorrow: •

Communicate the company vision to the employees showing everyone the role they have and the contribution required by them.

•

Treat employee as the most valuable client

•

Recognition in various forms is a powerful retention tool.

•

Build mentoring relationships with people to strengthen their emotional ties with the organization.

•

Celebrate longevity.

•

HR philosophy should be not to do different things but do things differently.

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These are some of the possible reasons of increasing executive movements: 1. Changing Lifestyles: Lifestyle has changed considerably since the past. People prefer to break away from the monotony of doing the same job repeatedly. People today think fast and change their jobs even faster. Someone is busy climbing the corporate ladder; others are busy trying to prevent them from reaching the top. 2.

Death of Motivation: There should be a system, in which whenever someone gives the best he should be given recognition for it. It is due to lack of appreciation that employees lose interest in the job.

3. Increased Expectations: Executive’s expectations have grown manifolds. While one might have just passed out of college and joined a company as a management trainee, the expectations are already skyrocketing. He not only wants the best salary in the industry but also wants a corporate laptop, mobile connection, club memberships etc. 4. Increasing Opportunities: Another prominent reason for executives leaving a company is the rise in opportunities. No matter what the perks the company offers, people will stay in the organization only till they find reasons to grow professionally, thereafter, no deals will work for them. 5. Assignments Abroad: People still have a fancy for overseas assignments and anyone getting a better prospect and opportunity for an assignment abroad will more often accept the offer. It is also due to international exposures, which will help them expand their network and vision. 6. Decreasing of loyalty towards organizations: Employee loyalty towards the organization has decreased considerably. Today they are only loyal to their career and future prospects. 7. Job Misfit: Another reason for executive movement is the job misfit. Sometimes in an effort to fill the gap, people are recruited fast without taking into consideration the job competency fit.

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The attrition rate adds to the worries of the HR managers who routinely go round and round on the merry-go-round of hiring and training. They face mainly two challenges: attracting the best talent and retaining the best talent. •

Talent Acquisition: There is a limit to which one can source good talent. Unless training and educating the upcoming generation taps the demand for talented workforce, there will only be poaching of talent. There is a need to draw a balance between what is just and what is unjust. So what should the HR managers do for talent acquisition? Well they should try to increase industry and academia interface so as to ensure that there is a ready supply of talented workforce for the future corporate requirements. Corporations should come forward and create customized programs for training students and executives. More and more academic and industry interface must be organized and opportunities for on-the-job training should increase.

These are some suggestions for attracting employees: 1. Find out what is the going average salary for a particular position and try to match it. 2. Offer an employee benefit program. 3. Emphasize the benefits your small business offers. 4. Be creative with perks. 5. Offer employees some way to move upwards. 6. Create an employee incentive program. 7. Institute a profit sharing program. 8. Widen the scope of your advertising. •

Talent Retention: While talent acquisition needs collaborative effort from the industry, the academia and the government, talent retention is a corporate prerogative. Salaries, perks, challenges, designation, and foreign assignments may drive people for some time; most of the people also seek stability for themselves. Therefore, an HR manager needs to identify and create systems and processes that will retain employees. More often than not, most jobs tend to become repetitive, and therefore, job escalation (assigning newer responsibilities) is something that HR managers need to look at. New Delhi Institute Of Management Studies 4

HR executives are devoted in planning and executing innovative strategies to retain talent and gain competitive advantage in the overcrowded market. “Exit Interview”, though not a very recent practice attracts renewed importance as an effective tool for employee retention. It provides a useful perspective on the organization’s performance and satisfaction level of the employees. EXIT INTERVIEW are interviews of employees who are leaving the firm, conducted for the purpose of obtaining information about the job related matters, to give the employer an insight about the company. The prime reason of carrying out an exit interview is to identify the reason for which an individual leaves an organization. This is the exit interview form used at HCL Technologies Ltd. The working profile in the organization includes following roles: •

Identifying and evaluating client’s recruitment needs.

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Negotiating terms of employment.

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Searching for the potential candidates.

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Providing candidates all the information required for the vacancy.

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Cold Calling employers in order to establish new contacts and their requirements.

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Documenting client’s details and vacancy requirements in brief.

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Clarifying and negotiating salary and benefits relating to vacancies.

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Negotiating fees relating to work that the consultant will undertake for the clients.

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Advertising, head hunting, reviewing applications, interviews and short listing of candidates.

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Monitoring candidates after placed and collecting feedback.

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Acting as a mentor and advising the junior trainees.

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3.2

Description of live Experience

Responsibilities given to me as a HR Trainee were the same as given before in the Work profile. My experience in the organization was awesome with the clients, with Candidates as well as the colleagues.Responsibilites undertaken by me includes all the Responsibilities of a HR Recruiter. My work in the organization was to coordinate with the clients regarding vacant Positions in their company, taking all information from the clients of the job vacancy like job description,CTC offering, qualification required and all the important information, searching for the candidates matching desired profile, making calls to the candidates and giving them information about the company and job, then sending their profiles to the clients, taking interview details from the clients for the shortlisted candidates and coordinating with the candidates and clients till their final selection and joining in the company. Other then this, business development was also my work in the organization.

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Chapter 4. Study Of Selected Research Problem

4.1

Statement of research problem.

Research points to the importance of good recruitment systems in the organizations. The 1980s brought downsizing, organizations were becoming too effective for their numbers of employees employed by them. Most problems concerning Human resources commences when recruitment is not handled properly. Resignations, low motivation, poor performance may be due to incorrect procedures in the recruitment process. This research discusses the importance of good recruitment at technical and managerial levels and the implications that are encountered as a result of ad hoc recruitment processes. Recruitment is a responsibility of every manager in the Organization.

Definition of Recruitment According to Edvin Flippo, “Recruitment is the process of searching for the prospective employees and stimulating them to apply for the jobs in the organization.” The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organizations. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. Recruitment refers to the process of sourcing, screening, and selecting people for a job Or vacancy within an organization. Though individuals can undertake individual Components of the recruitment process, mid- and large-size organizations generally Retain professional recruiters. RECRUITMENT IS THE HEART OF HUMAN RESOURCE MANAGEMENT.

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Recruitment Process: Identifying the vacancy: The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company.

1. Identify vacancy 2. Prepare job description and person specification 3. Advertising the vacancy 4. Managing the response 5. Short-listing 6. Arrange interviews 7. Conducting interview and decision making

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The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision making, conveying the decision and the appointment formalities. The main recruiting stages: Sourcing Sourcing involves: 1)

Advertising, a common part of the recruiting process, often encompassing multiple media, such as the Internet, general newspapers, job ad newspapers, professional publications, window advertisements, job centers, and campus graduate recruitment programs;

2)

Recruiting research, which is the proactive identification of relevant talent who may not respond to job postings and other recruitment advertising methods done in #1. This initial research for so-called passive prospects, also called name-generation, results in a list of prospects who can then be contacted to solicit interest, obtain a resume/CV, and be screened (see below).

Screening & selection Suitability for a job is typically assessed by looking for skills, e.g. communication, typing, and computer skills. Qualifications may be shown through résumés, job applications, interviews, educational or professional experience, the testimony of references, or in-house testing, such as for software knowledge, typing skills, numeracy, and literacy, through psychological tests or employment testing.In some countries, employers are legally mandated to provide equal opportunity in hiring. On boarding A well-planned introduction helps new employees become fully operational quickly and is often integrated with the recruitment process.

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4.2

Statement of research objectives.

1. What are your primary goals? (Why hire?)

The first element of recruiting strategy is to determine "why" you are hiring outside people. First, you must determine your firm's business goals and then what recruiting can do to contribute to each of them. Some of the more common business reasons for hiring include: • Replacements for turnover • Current or future business expansion • Upsizing the caliber of talent because top talent has become available • Limiting the talent available in the market in order to hurt a competitor's ability to staff adequately • L earning from other firms • Increasing the capability of your firm by adding new skill sets Which of these focus areas you select is important because each requires that you direct your recruiting efforts in a different way. For example, if you are hiring for geographic expansion, you will need to implement a strategy that allows you to enter new geographic regions -- as opposed to hiring to hurt, where you need to focus on hiring away key talent directly from competitors. 2. Prioritization of jobs

No recruiting function has enough resources to fill every position immediately with the top quality hire. As a result, your recruiting strategy needs to include a prioritization element. Priority can be assigned in the following ways: • Hire all jobs equally with the same priority • Focus on key strategic business units • Focus on key jobs • Focus on key or powerful managers

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3. Performance level to target

Recruiting top performers requires a different strategy and set of tools than recruiting average performers. As a result, you must first determine what level of performance you are primarily targeting before you determine the other elements of your recruiting strategy. Performance targets include: • "Butts in chairs" (hire the cheapest candidates with adequate skills in all jobs) • Focus on average performers in all jobs • Focus on top performers in all jobs • Focus on top performers just in key jobs 4. Experience level to target

Some employment strategies require you to take the long-term approach and develop your own talent, while other approaches target bringing in experienced talent for immediate help or to bring in new skills. Experience target ranges include: • Inexperienced talent that can be trained • Temporary and contract labor that can be converted • Hire at the bottom and promote within • Undergraduate college hires (interns, Internet and on-campus hires) • Postgraduate hires • Experienced hires 5. Category of candidate to target

Whether you target active or passive candidates has a tremendous impact on both the quality of hire and the difficulty of getting an acceptance. Active candidates (the easiest candidates to attract): • Unemployed candidates

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• Currently employed but frustrated in their current job Passive candidates (These are individuals who are currently employed and not actively seeking employment. They represent over 80% of potential candidates, but they are the hardest to attract.): • Focus on currently employed average or above average performers • Focus on currently employed top performers Diverse candidates: • Diverse candidates defined by using EEOC standards • Diverse "thinkers" using a global standard Magnet hires (Target magnet hires who are well-known individuals who, because

of

their notoriety, by themselves help to attract others.): • Magnet hires from within the industry • Magnet hires from outside the industry 6. When to begin searching for candidates

Most firms begin a search once a requisition has been created. But there are a multitude of approaches available: • Begin recruiting when an opening occurs • Continuous search (evergreen jobs where there is a constant need) • Begin before an opening occurs (pre-need hiring can be done to build a talent pool or to build a relationship over time, in order to increase applications and offer acceptance rates from employed individuals and top performer candidates) 7. Where to look for candidates

There are three sub-categories within the "where" element. They include: Internal versus external: •Focus on all internal candidates (laterals or promotions) •Settle on a fixed ratio of internal to external hires •Hire primarily from college campuses •Hire primarily from external sources Inside or outside the industry:

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•Target within the industry only •A fixed proportion outside the industry Geographic focus: • Local commuting area only • Within the region • Within the U.S. • A truly global search 8. Who does the recruiting?

There are two sub-categories under this element. They include: Internally, who is responsible for recruiting? • Generalists do most recruiting. • Primarily internal recruiters working in HR • Separate sourcing and recruiting efforts within a centralized recruiting function • A mix of corporate and contract recruiters that work internally • Line managers do most recruiting. • Employees contribute significantly to recruiting through a heavy emphasis on employee referrals. Utilizing external recruiters: • Utilize external recruiting agencies mostly at the very top or bottom jobs • Third-party recruiters are utilized only for hard-to-fill or key jobs • Primarily utilize external recruiting agencies • Outsource the entire recruiting function

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9. Primary sourcing tools

Identifying candidates and convincing them to apply is essential to great recruiting. Some of the possible sourcing focus areas include: • Traditional media (newspapers, walk-ins) • Sourcing using events (job fairs and industry events) • Traditional Internet sourcing (large and niche job boards) • Nontraditional Internet sourcing (Google-type name search for passives; chat rooms) • Employment branding (a long-term sourcing strategy to build a steady long-term supply of candidates) • Acquiring intact teams and a large amount of talent through mergers and acquisitions (buy firms for talent) 10.What skills should you prioritize when selecting candidates?

When selecting the most appropriate candidates from the candidate pool organizations can use a variety of approaches. Those target skills or competencies could include: • Hiring brains or intelligence • Selecting based primarily on personality • Selecting based on the technical skills required for this job • Selecting based on skills (technical and people) required for this and "the next" job • Selecting primarily based on pre-identified, company-wide competency needs (present and future) • Selecting primarily based on the candidate's experience (industry or job) • Selecting primarily based on the candidate's contacts and network • Selecting the "best athlete" available at the time (hire and then find the best job for them) • Selecting primarily based on cultural fit

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11.How to assess candidates

An essential part of any recruiting strategy is the process you will utilize to assess the candidates. Common choices include: • Interviews • Personality tests • Skills tests • References (business, personal or educational) • Grades or academic performance (primarily for college hires) • Drug screening • Job simulations • On-the-job assessment (primarily for temp-to-permanent conversions) • Hire more than you need and intentionally "wash out" the poor performers 12.Primary sales approach

Candidates can be "sold" on a job and company based on a variety of strategies. They often include: • Compensation • Opportunities for promotion • Benefits • A great team and manager • An excellent culture and values • Bonus and stock option opportunities • Challenge, growth, and learning opportunities • The firm's employment brand and image

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4.3

Research design and methodology.

Line managers often do not understand the whole process of recruitment. Managers involved in the recruitment should not hire employees that should start as soon as possible. This habit leads to poor recruitment and mis-profiling of individuals who will in turn become part of the problems in the system. Recruitment at an officer and managerial level should be done effectively and one should remember that once you make the mistake it takes sometime before that mistake is corrected. It may be costly to the organization.

Many people we see in organizations today are in the wrong jobs and as a result, they are not utilizing their full potential. This is compounded by the fact that some companies have built a tradition of hiring people based on personal connections when the person is not qualified for the job. This is a vivid case in most Organizations today. From my colleagues experience, most recruitment that involves managers are done during discussions at lunch hour, at social clubs or during the coffee break time. All the other processes that follows will only be a formality as the decision would have been made by line managers involved in the process. This practice suffocates the Organization for professionalism and to some extend leads to obsolete policies. Many of those appointed may not have the necessary skills and competencies to carry out the functions competently. Also they may not have proper qualifications in the field they are working. Such people will not have much desire to make any contributions in terms of growth and development. Their contributions are marginal if any, they are just passengers in the system and are protected by those who recommenced them. The other thing observed is that, those line managers who are involved in the recruitment are not given courses to enlighten them on the importance of the process. Why it is necessary always to be systematic in recruitment process? Certain type of managers can make a significant impact on Organizations or Companies. Consequently, a process or a strategy is necessary to deal effectively with equal opportunity issues, to hire the right people, to minimize cost and most importantly, to identify marginal

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performers before they are hired. Inadequate recruitment procedures will result in a number of staff not being sufficiently qualified either for the positions they hold or their grades levels, especially in management positions. Most formal systems are flawed in such fundamental respects that there is a tendency to circumvent it through the application of ad hoc measures, which often rely heavily on personal contacts. Main Causes of Problem The three main causes of the problem includes •

lack of specialist skills

•

poor quality applicants

•

pay inflexibility

all of which are particularly acute in the public sector. The cost of living is also cited as a major reason. Meanwhile, the number of organizations reporting retention difficulties has jumped even more markedly in the past year from half in 2008 to more than seven out of ten this year. The problem is even more acute in the public sector, where more than eight out of ten report problems. Retaining administrative staff is also proving difficult. "Recruiting and retaining staff remains HR's biggest challenge in spite of the economic downturn. While some may see this as surprising, a combination of low unemployment and a massive expansion in public sector recruitment has meant that staff at all levels, in all sectors and in all regions are difficult to recruit and retain. "The problems are particularly acute in the public sector where the demand for trained specialist staff currently exceeds supply. However, this should even itself out over time as more trained staff come on stream." One result of these recruitment problems is that employers are now more prepared to train new recruits and lower the level of experience required. Seven out of ten organizations now say that they will appoint people with potential who do not currently meet the job requirements, while the use of coaching and mentoring has also increased sharply.

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Although more than a third of organizations have improved their starting salaries to recruit staff, the number that have increased pay to retain staff has dropped, a reflection of difficult economic conditions.

4.4 Analysis of data •

Attract and encourage more and more candidates to apply in the organization. Create a talent pool of candidates to enable the selection of best candidates for the organization.

•

Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.

•

Recruitment is the process which links the employers with the employees.

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Increase the pool of job candidates at minimum cost.

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Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants.

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Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time.

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Meet the organizations legal and social obligations regarding the composition of its workforce.

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Begin identifying and preparing potential job applicants who will be appropriate candidates.

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Increase organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants

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Recent Trends in Recruitment The following trends are being seen in recruitment: 1. OUTSOURCING:

In India, the HR processes are being outsourced from more than a decade now. A company may draw required personnel from outsourcing firms. The outsourcing firms help the organisation by the initial screening of the candidates according to the needs of the organisation and creating a suitable pool of talent for the final selection by the organisation. Outsourcing firms develop their human resource pool by employing people for them and make available personnel to various companies as per their needs. In turn, the outsourcing firms or the intermediaries charge the organisations for their services. Advantages of outsourcing are: •

Company need not plan for human resources much in advance.

•

Value creation, operational flexibility and competitive advantage

•

turning the management's focus to strategic level processes of HRM

•

Company is free from salary negotiations, weeding the unsuitable resumes/candidates.

•

Company can save a lot of its resources and time

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2. POACHING/RAIDING: “Buying talent” (rather than developing it) is the latest mantra being followed by the organisations today. Poaching means employing a competent and experienced person already working with another reputed company in the same or different industry; the organisation might be a competitor in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions, better than the current employer of the candidate. But it is seen as an unethical practice and not openly talked about. Indian software and the retail sector are the sectors facing the most severe brunt of poaching today. It has become a challenge for human resource managers to face and tackle poaching, as it weakens the competitive strength of the firm.

3. E-RECRUITMENT: Many big organizations use Internet as a source of recruitment. E- recruitment is the use of technology to assist the recruitment process. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements.

4.5 •

Summary of findings:

At Indiabulls, they value their people. This is because they believe that their services will be only as good as those who deliver it. They are in the business of guiding their investors about where to put their hard-earned money, and helping them achieve their financial goals through wise investments. Trust and goodwill form the fundamental basis of their relationships with clients.

•

This not only demands thorough professional knowledge and an enchanting personality, but also calls for a missionary zeal to help others selflessly.

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•

Though the work is demanding, most team members feel that working at Bajaj Capital is a satisfying experience due to the following reasons:

•

Professional Work Environment: They have a growing pool of talented professionals, including CAs, MBAs, CFPs, CSs, and others. This provides a good opportunity to interact and learn from each other.

•

Professional Growth: Performance is the key element that matters at Bajaj Capital, when it comes to rising up the corporate ladder. Bajaj Capital has a transparent policy of recognizing and rewarding deserving people. Many of those who occupy top positions in the organization today have worked their way up. Their performance management systems ensure that the credit goes to those who deserve it.

•

Personal Growth: Qualities like leadership, communication skills, negotiating skills and an impressive personality get developed automatically, largely due to the contagiously professional atmosphere and rigorous training programmes at Bajaj Capital.

Job Satisfaction: A true spirit of philanthropy is at the heart of every thing that they do. Many of their efforts are aimed at genuinely helping people, irrespective of whether they are their clients or not. It obviously feels great to know that you’ve been of help to someone. Opportunity to Improve Skills: They lay a lot of emphasis on continuing education. Every team member is encouraged to undergo professional training. The Company even offers incentives to those pursuing professional programmes like those offered by the International College of Financial Planning. Skill-building workshops and meets are also organized from time to time. Balance Between Work and Play: All work and no play is no fun. Bajaj Capital ensures that all team members are adequately rewarded for the efforts put in. They regularly organize trips to various exotic locations in India and abroad for their top performers. Value-Driven Organization: Bajaj Capital is today a respected name in India primarily due to the strict adherence to values such as honesty and ethics. Qualities of sincerity, fair play, leadership and initiative are strongly encouraged. •

Job Security: At Bajaj Capital, quality is the watchword in every sphere of activity. That’s why they have a rigorous screening procedure. Once selected, every team member is treated like

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a family member. Everyone is given a chance to work in different departments in order to get acclimatized. No wonder, many of their team •

Members have been with us for years. Honest and performing team members will always find their jobs secure.

•

Family Life: One of the major reasons why a lot of their team members prefer to work with Bajaj Capital is because they have a culture of striking a fine balance between work and home. They firmly believe if you are productive, you won’t have to miss out on your personal life.

•

Culture of Health: Bajaj Capital encourages healthy living. All their offices are no-smoking areas. Efforts are also made to inculcate healthy habits among all by disseminating healthrelated information through a dedicated e-newsletter. There are no night shifts. They also organize yoga sessions to improve the health and well-being of their team members.

•

Open-door Policy: The entire top management and the leaders at Bajaj Capital are always accessible. They are ever-willing to help and hear you out whenever you need them.

•

Positive Work Culture: There is a supportive, healthy work culture where everyone is treated equally. Bajaj Capital has also made a successful effort to cut down stress levels.

•

Humane Environment: Unlike many other companies, they are not guided by blind statistics. Every team member is treated as a human being and not a machine. The atmosphere is friendly, and the management is always around to share the happiness and grief of every team member.

•

Recognition: Every team member is given a chance to excel, and the efforts of every performer is recognized.

•

Good Compensation: Last but not the least, Bajaj Capital offers a compensation package that’s one of the best in the industry. They believe and ask their team members to write their own cheques. Apart from fixed salaries, they offer aggressive entrepreneurial incentives.

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Chapter 5. Summary and Conclusions. 5.1

Summary of Learning Experience

My experience in the organization was awesome with the clients, with candidates as well as the colleagues. Responsibilities undertaken by me includes all the responsibilities of a HR Recruiter. My work in the organization was to coordinate with the clients regarding vacant positions in their company,taking all information from the clients of the job vacancy like job description,CTC offering,qualification required and all the important information, searching for the candidates matching desired profile,making calls to the candidates and giving them information about the company and job,then sending their profiles to the clients, taking interview details from the clients for the shortlisted candidates and coordinating with the candidates and clients till their final selection and joining in the company. Other then this, business development was also my work in the organization.

5.2

Recommendations & Conclusion:

Recruitment is essential to effective Human Resources Management. It is the heart of the whole HR systems in the organization. The effectiveness of many other HR activities, such as selection and training depends largely on the quality of new employees attracted through the recruitment the recruitment process. Management should get specific training on the process of recruitment to increase their awareness on the dangers of wrong placements. HR practitioners should be on the guard against all the malpractices and advocate for professional approach through out the system. The HR should indicate disagreement in the event that biasing toward certain candidates is creeping in and point out the repercussions that may follow in terms of performance and motivation. It is conviction of research that, the recruitment process should be seen in the context of ongoing staff planning that is linked to the strategic and financial planning of the organization.

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Appendix QUESTIONARE Challenges of Recruitment Name: Designation: Company: Please rank top five questions in as per their criticality in recruitment on a rating scale of 1 to 5. Where most critical problem should get a rating of 5, second most important problem 4 and so on.

Problem

Ranking

Fierce competition for IT professionals amongst IT companies Shortage of qualified applicants (Talent Shortage) Low recruitment cost approved for hiring by the management Screening right candidates in case of niche profiles Attracting candidates with right skills and experience from other organizations ( Employer Branding ) No show after accepting the offer Tug of War: rope being compensation Lack of appropriate HR / Recruitment tool: managing database is getting difficult Hiring right candidates within short deadlines Wrong hires adding to additional recruitment cost False information provided on the resume

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What motivates talent to join

Ranking

Working Culture of the organization Perception about the management: Market Standing Challenging profile Industry leader: best technology, updated systems Job security Compensation and benefits Career advancement and growth prospects Geographical location Acceptable pace of work and stress Benefits: canteen, bus facility, mobile phone reimbursement, etc

Please mention any other problems which you feel are very critical in recruitment.

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BIBLIOGRAPHY •

“Malhotra Naresh (2002) Marketing Research - Prentice Hall of India”.

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“Kotler Philip (2002) Marketing Management - Prentice Hall of India”.

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“Love Lock Christopher (2001) – Service Marketing Pearson Education Asia”.

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“Bhole LM,Market Research - Tata McGraw Hills”.

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[email protected]

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Indiabulls.com

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valuesearchonline.com

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Financialservicesrep.com

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Lawyers magzine.com

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fortisindia.com

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Times of india.com

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economic.com

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Times of India

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The Hindu

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