summer training report on mas finance

8/8/2019 summer training report on Mas Finance

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(2010-2011)

PROJECT REPORT

ON

SUBMITTED BY:

GAURAV PRAKASH

BBA FINAL YEAR


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Acknowledgement

A formal statement of acknowledgement will hardly meet the ends of the justicein the matter of expression of my deeply felt sincere and allegiant gratitude to

all those who encouraged me and helped me during my study.

It gives me immense pleasure, to express my unfeigned and sincere thanks and

gratitude to Mr. Manoj Mitalfaculty Onkarmal somani college, jodhpur for

her assistance, advice and support throughout the preparation of this report.

I express my sincere thanks to our beloved principal Prof. N.L.Sahel,for

giving valuable support and encouragement in preparing this report.

I am also thankful toMr. Naveen Chodhary for giving me valuable informationregarding his concern.

I am also very thankful to all my respondents who took time out of their busy

schedules and helped me in carrying out this project.

GAURAV PRAKASH

(B.B.A. AL)


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CONTENTS

S.NO. TOPIC PAGENO.

1. Introduction 1

2. Industry Profile 4

3. Origin & Development of Industry 5

4. Growth & Present States of Industry 11

5. Future of the Industry 13

6. Main Objectives of the Company 15

7. Growth & Development of

Organization 19

8. Functional Dept. of the Organization 20

9. Organization Structure 22

10. Product and service profile of the organization

Competitors 2511. Market profile of the Organization 26

12. Discussion on Training 28

13. Description of live Experience 32

14. Research Methodology 33

15. Analysis and Intrepretation 37

16. Summary and Conclusions 49

17. Recommendations & Conclusion 50

18. Questionare

19. Bibliography


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PREFACE

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 MAS FINANCIAL, 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 awarenes s 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.


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Introduction

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 arebanks,

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 its

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 daywith technical and other developments.

History of financial service

In the United States

The term "financial services" became more prevalent in theUnited States partly as a result of

theGramm-Leach-Bliley Actof 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 originalbrandsof

the acquired firm, and adds theacquisitionto its holding company simply to diversify

itsearnings. Outside the U.S. (e.g., inJapan), non-financial services companies are permitted


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within theholding 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.

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 ofbonds (debt) orstock(equity).

Private banking - Private banks provide banking services exclusively

to high net worth individuals. Many financial services firms require aperson 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


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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 brokers, and stock brokers. Underwriters may

also offer similar commercial lines of coverage for businesses.

Activities include insurance andannuities, 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 toassist clients. These brokerages primarily target individual

investors. Full service and private client firms primarily assist

execute trades and execute trades for clients with large


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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 investoror angel (known as a

business angel or informal investor in Europe), is an affluent

individual who provides capital for a business start-up, 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 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


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usually substantially less than economic capital is for the sum of

its parts.

INDUSTRY PROFILE

MASis specialized retail financing organization engaged in financial servicessince1988, registered with Reserve Bank ofIndia as an NBFC.

We at MASare excited at the vast opportunity this sector offers .

MASaims to have a very significant market share in financial services distributionwithMICRO FINANCEas its thrust area of activities .

Micro credit distribution in particular assumes lots of importance as the credit is to begiven to those classes which have to be understood and assessed from variousperspectives of creditability in absence of proper and systematic credit documents.

We are determined to accomplish the mission with dedicated team efforts and a vast DISTRIBUTION NETWORK

We very firmly believe that the large middle end and lower income group are thedrivers of economy and deserves the perfect FINANCIAL SERVICES.

ICICI Venture Fund Management Company Limited

y ICICI Venture Fund Management Company Limited, the privateequity arm ofICICI Bank Ltd., Indias second biggest lender, hasinvested INR 400 Million through a mezzanine fund, IndiaAdvantage Fund - VII. The investment is in the form of redeemablepreference shares.

y It will help MAS to fuel its ambitious growth plans. I-Venturethrough this investment partners one of the leading financialservices company of Gujarat having a long term strategy to be oneof the premier financial services provider.

The Bellwether Micro Finance Fund.

y Bellwether has the backing of some of the leading names in themicrofinance sector; both in India and the world.

y It is the result of the collaborative effort between two leadinginternational microfinance investors and an Indian fund managerwith local presence and expertise.


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y Visit the website at: http://www.bellwetherfund.com

Nederlandse Financierings Maatschappij voorOntwikkelingslanden N.V.

y FMO an entrepreneurial development bank of the Netherlands hasinvested INR 434.71 Million in equity through CumulativeCompulsorily Convertible Preference Shares.

y FMO`s investment portfolio is EUR 3,4 billion, making it one of thelargest bilateral development banks worldwide. FMO has an AAArating from Standard and Poor`s and has recently obtained abanking license from the Dutch Central Bank (DNB).

y Through such investments FMO is stepping up to achieve theirmission to stimulate sustainable private sector development andoptimise economic growth through its investment activities inemerging markets.

y FMOs investment decisions are based on the fundamentalconcept that sustainable economic growth is stimulated by thedevelopment of a healthy private sector, which in turn contributesto combating poverty and to improving living standards indeveloping countries.

y MAS, in its quest to have a significant market share in MicroFinancial Services, activities is always keen to have synergy withinvestors (Equity & Debt )

y Many leading banks such as ICICI Bank Ltd., HDFC Bank Ltd., UTIBank Ltd., State Bank ofIndia, Standard Chartered Bank Ltd.,Development Credit Bank Ltd.,Centurion Bank of Punjab Ltd., SIDBIto name a few have taken debt exposure on MAS.


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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.

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.

However, there is huge latitude in what a suitable investment is an d how much

it costs a client. From the brokerage industry's perspective, the wealthier the client is


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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, andit 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.

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.

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 adv isor,

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 $3,000/per year is the


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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 advisorypractices 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 "f ree," 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 directl y

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 orbuy their own

securities to or from a client. See also: Investmentadviser.

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


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Service. This is essentially different from the traditional onsite consulting or

sustained account management services that are available from other providers.

OurInvestment Advisory Service depart will provide you both short and long term

advice and guidance for problems relating to business and accounts. The scope ofthe engagement is 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 c limates; 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 non-conventional 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


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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


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(ARPM) is among the 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 triple-play 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.


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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 ofIndia (RBI) has alsoinitiated 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.

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


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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 ofIndia (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 fi nance for housing. Large

banks have rapidly gained market share in the housing finance sector.

Future of the industry


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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 Ci ty

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. 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 muchfasterthantheaverage for all occupations.


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Personal financial advisors are projected to grow by 41 percent, which is muchfaster

thantheaverage 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 securitiesindustry. 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 muchfasterthantheaverage for all occupations. Primary

factors for this growth are increasing complexity of investments and growth in the

industry. As the number and type of 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, competitionforjobsisexpectedtobekeen 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 -


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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.

Matrix Projections data from the National Employment

Occupational title

Employment

2006

Projected

employment,

2016

Change, 2006-16

Number Percent

Financial analysts and personal

financial advisors

397,000 544,000 147,000 37

Financial analysts 221,000 295,000 75,000 34

Personal financial advisors 176,000 248,000 72,000 41

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


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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; assetmanagementservices; 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 debtinstrument research activity instrument indebt and/or equity instruments.

CREDIT RATING


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Mas financial 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. 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 ofInfinity 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 tothem 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


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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 ofISL 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. Theaggregate 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 Companys capital stockwith respect to dividend distributions and repayment of capital and

premium upon a bankruptcy or change in control with respect to ISL,

unless the terms and conditions of such class expresslyprovide that such

class will rank senior to or on parity with the Preference Shares._


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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 ofISL, 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


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or other disposition of 50% or more of the voting power ofISL, 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 ofISL, 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 ofISL. 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 Investors Shares, IFSL

and Promoters shall make available sufficient cash to ISL to facilitate theredemption of the Investors 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 ofInvestors Shares. The Investors vide a waiver letter dated

June 7, 2004 have agreed to waive this obligation ofIFSL 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


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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 ofISL._ 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 ofPreference 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 .

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 Mas

financial. 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, notaccepting 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


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also commenced the activity of providing credit facilities to retail

customers. We operate through our three subsidiaries Mas financial

Securities Limited, Mas financial Insurance

Advisors Pvt. Ltd. and Mas financial 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.

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


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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 32,359clients as on April 30, 2004 spread all overIndia 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:

Stocks

Options and Futures 25

Depository ServicesCommodities

Insurance Products

Mutual Funds

Bonds and Debt Products


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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 happyResponsible for building a positive relationship with customer.Communicate with customer all the timeProcess and monitor customer order

PURCHASE DEPARTMENT

Responsible for doing all the shopping of business

Establish and maintain an excellent Supplier relationship.Manages stock.


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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 toemployees.

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.

Organization Structure

Marketing Department:-


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MAS FINANCIAL 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. Theres 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 dont

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


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band, a guest speaker, a panel discussion) and something fun and out

of the Ordinary.

Email Promotion If youre 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:-

Its 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 youre 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.

Touring:-


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Now that youve got a website, an email list, ad and banner exchanges

and youre a regular at presenting great events in your local community,

its time to expand! Touring doesnt 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 helpyou 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 growslowly but surely.

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


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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:

y BANKING SECTORS (due to product diversification)

y RELIGARE

y SMC

y INDIA INFOLINE

y UNICONN

Strengths

y Sound, research-based advice

y Unbiased, independent and need-based advice

y Prompt, courteous service

y Honest, ethical dealings

y 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 triple-play broadband services


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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.

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 ofIndia (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.


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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 ofIndia (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 newinstruments 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.


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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.

There are about 30 asset management companies with the largestseven 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 non-conventional 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


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of the fastest growingeconomiesof theworld. Thecontributionof the

servicessector to theIndian P increased from . percent in

to percent in , accounting foralmost percent of the

cumulative increase in thecountry's P. uring -05, theservices

growthwasarobust . percent.

Di i i i

Studentswork Profile

Knowledge is cumulative: every piece of research will

contribute another piece to it. That is why I commenced my research

withareviewof literaturerelated toattritionandretentionofemployees.

In todayseraofhighcompetition, individualism, withopportunities

available in abundance etc., retaining talent in the IT Industry has

become a big challenge. ood retention scheme not only help in

retaining the talent, but also acts as catalyst towards attracting more

talent fromaround the industry.

It is better to retain the existing talent then to keep on hiring

continuously. A recent surveycalculated that thecost of replacinghigh

level employeemight beasmuchas 50% of thedepartingemployees

salary. It helps to saveand reduceon recruitment cost and portrays a

cultureof loyaltyamong theemployee towards theorgani ation, helping

the department toconcentrateonother important soft functions. The

major issue now-a-days is not just retention but retaining the talented

employee whose turnover may destabili e the functioning of the

organi ationsandreduce thecompanyscompetitiveness in themarket.


44/75

The company may adopt the following tips to retain for tomorrow:

y Communicate the company vision to the employees showing

everyone the role they have and the contribution required by

them.

y Treat employee as the most valuable client

y Recognition in various forms is a powerful retention tool.

y Build mentoring relationships with people to strengthen their

emotional ties with the organization.y Celebrate longevity.

y 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 recognitionfor it. It is due to lack of appreciation that employees lose interest

in the job.

3. Increased Expectations: Executives 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.


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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.

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 t he best talent and retaining the best talent.

y 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.


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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.

y 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.

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 organizations 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


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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 clients recruitment needs.

Negotiating terms of employment.

Searching for the potential candidates. Providing candidates all the information required for the vacancy.

Cold Calling employers in order to establish new contacts and their

requirements.

Documenting clients details and vacancy requirements in brief.

Clarifying and negotiating salary and benefits relating to vacancies.

Negotiating fees relating to work that the consultant will undertake

for the clients.

Advertising, head hunting, reviewing applications, interviews and

short listing of candidates.

Monitoring candidates after placed and collecting feedback.

Acting as a mentor and advising the junior trainees.


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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. 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.


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REASERCH METHODOLOGY

INTRODUCTION

Research in common parlance refers to a search for knowledge.

The advanced learners dictionary of current English lays down the

meaning of research as a careful investigation of enquiry especially

through search for new facts in any branch of knowledge.

The systematic approach concerning generalization and the

formulation of a theory is also research. The purpose of research is to

discover answers to questions through the application of scientific

procedures.

TITLE OF STUDY

The title of this study is to carry on brief study on selection and

recruitment process at mas financial services ltd.

DURATION OF STUDY

The study was conducted for period of 45 days.

OBJECTIVE OF STUDY

To study the Recruitment and Selection System in the

organization.


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To study the process of intake of employees with relation to

Experience, Communication skills and Qualification in the

organization

To know strategies which using for recruitment in FGI. Awareness of agents regarding to supplementary income needs of

agents.

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and

analysis of data in a manner that aims to combine relevance to the

research purpose with economy in procedure.

- JOHN.W.BEST

Research may be defined as any organized inquiry designed and

carried out to provide information for solving a problem.

- EMORYResearch is essentially an investigation, a recording and an analysis of

evidence for the purpose of gaining knowledge.

- ROBERT ROSS

DESCRIPTIVE RESEARCH DESIGN

Descriptive research design studies are those studies, which are

concerned with describing the character of a group.

The researcher makes a plan of the study his research work. That will

enable the researcher to save and resources such a plan of study or

blue print or study is called a research design.


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DATA COLLECTION

The study was based on questionnaire method. The study was about theRecruitment and Selection System.

There are two types of data collection:

Primary data

Secondary data

Primary data

The primary data are those, which are collected a fresh and for the

first time happen to be original in character. It has been collected

through a Questionnaire and personal interview.

Secondary data

Secondary data are those which have already been collected by

someone else and which have already been passed through the

stratified process. It has collected through the books, journals & Internet.

RESEARCH INSTRUMENT

Questionnaire containing closed ended questions.

SAMPLE DESIGN:

SAMPLE PROCEDURES


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In this study convenient sampling method was adopted. First

the each organization was divided into different departments

like Operations, Customer Services, Human Resources,

Internet Marketing and under writing departments. From this

department, the respondents were selected on the basis of

convenience.

CONTACT METHOD

Respondents were contacted personally.

INTERVEIW SCHEDULE

The interview schedule has been used to collect the data. Information

can be gathered even when the respondents happen to be literate or

illiterate.

TABULATION

It is the arrangement of classified data in an orderly manner. This

involves creating table for recording the filled in interview schedule.

These tables are of immense help to analysis by using the statistics

tools help to analysis by using the statistical tools.

TOOLS USED FOR ANALYSIS

Simple percentage analysis

It is simple analysis tool. In this method, based on the opinions of the

respondents, percentage and bar chart is calculated for the respective

scales of each factor.


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Formula:

Simple percentage = No of Respondents

Total No of Sample Size

LIMITATIONS OF THE STUDY

The study is focused only in Future Generali India Life Insurance

Company Ltd.

Thus the respondents are not come forward to provide their

feedback regarding their organization than the result is bias.

In this study the sample size is 70. The result might vary when the

sample size values changes it.

Researcher fined the difficulty in searching the appropriate advisor

and respondent throughout the city.

The research was limited to the Jodhpur city.

ANALYSIS AND INTERPRETATION

TABLE NO: 1

Q1. What is your age?

S.NO DESCRIPTION NUMBER OF PERCENTAGE


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I E P E IO

Theabove tabledepicts that 50% of therespondentsarebelow theage

groupof 5-30yearsage`, 5. % of therespondentsarebetween the

agegroupof30-35years, 0% of therespondentsarecomesunder the

category of 35-40 years age group and % of the respondents are

comesundercategoryofabovebelow-25yearsofagegroup.

14%

50%

26%

10%

AGE

Be

-25 25-30 30-35 35-40

1. Below-25 10 14.29

2. 25-30 35 50

3. 30-35 18 25. 14. 35-40 10

TOTAL 70 00


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TA LE O

. i G

I TE P ETATIO

79%

21%

GENDER

Male Female

S. O DES IPTIO O O PE E TAGE

1. ale 55 8.57

2. emale 15 21.43

TOTAL 70 00


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Theabove table reveals that 78.57% of the respondentsaremaleand

21.43% of therespondentsare female.

TA LE O 33. i i

S .

.

TYPE O

P O ESSIO

O.O

ESPO DE TS

PE E TAGE

1. Professional 26 37

2. Private- Service 17 24

3. Public- Service 8 12

4. Self Employed 16 23

5. Any ther 3 4

Total 70 00

37%

24%

12%

23%

4%

CURRENT PROFESSION

Professonal Pr ivate- Service Public - Service Self Employe

Any Other


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I TE P ETATIO

Theabovepie chart shows that 37% of the respondents has pursuing

professional job, while 24% of respondents are doing private service,

23% of respondentsareselfemployed12% of the respondentsare in

publicserviceand4% are inothersectors.

TA LE O

. atare our urrent alary arti ulars i are i en y

om any?

4%

43%

37%

%

SALARY PARTICULARS

5000 5000-10000 10000-15000 Above15000

S. O DES IPTIO O O

ESPO DE TS

PE E TAGE

1. Below5000 3 4.28

2. 5000-10000 30 42.86

3. 10000-15000 26 37.14

4. Above15000 11 15.72

TOTAL 70 00


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INTERPRETATION:

The above table depicts that 43.3% of respondents are earned comes

the

salary of 5000-10000, 36.6% of the respondents have got RS 10000-

15000 per month, 16.6% are fall in the income group of above 15000and 3.3% of the respondents comes under the 5000 level of category.

TABLE NO: 5

Q5. Are you satisfied with your current job?

S.NO DESCRIPTION NOOF

RESPONDENTS

PERCENTAGE

1. Yes 49 70

2. No 21 30

TOTAL 70 100


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I TE P ETATIO

Theabove tabledepicts that 70% ofrespondentsaresays that theyaresatisfywith

theircurrent jobwhile30% ofrespondent arenot satisfy theirjob.

TA LE O

Q6. Areyousatisfied iththerecruitment rocessofthecom any?

70%

30%

JOB SATISFACTION

YES NO

S. O DES IPTIO O O

ESPO DE TS

PE E TAGE

1. ood 31 44.28

2. ine 35 50.00

3. Bad 4 5.72

TOTAL 70 00


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I TE P ETATIO

Theabove tabledepicts that 50% ofrespondentsaresays that recruitment process

is fine, 44.28% of respondent says that recruitment process is good and 5.72%

respondent saysrecruitment process isbad.

TA LE O 7

Q7. Is there training requires for im rove the erformance of an

advisor?

S. O. DIS IPTIO O. O

ESPO DE TS

PE E TAGE

1. YES 49 70

2. 21 30

TOTAL 70 00

44%

%

6%

SATISFACTION REGARDING TO RECRUITMENT

PROCESS

Good ine Bad


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I TE P ETATIO

Theabove tableshows that 70% ofrespondentsaresays that training isrequire for

improvement inperformanceofagentswhile30% of respondentsarenot agree for

arrange the trainingsession forimprove inagentsperformance.

TA LE O

Q8. Accordingtoyou, hichquality lays im ortantrole in

recruitmentandselection rocess?

S. O. QUALIT Y O. O

ESPO DE TS

PE E TAGE

1. eadership 21 30

2. ualification 14 20

70%

30%

IMPROVE IN PERFORMANCE

YES NO


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3. ommunication 35 50

Total 70 00

I TE P ETATIO

Theabove tableshows that 50% ofrespondentsaresays that communicationskill is

an important quality foragent while30% of respondentsaresays that leadership isimportant skill for an agent, and 20% of respondents are says qualification is

important inrecruitment andselectionprocess.

TA LE O 9

Q9. hichsegmentdo you think isthe est for recruitment for as

anadvisor?

3 %

2

%

5

%

QUALITY IS REQUIRED

LEADEA S IP QUALIFICA

ION CO UNICA

ION


ESPO DE TS

PE E TAGE

1. Businessman 10 15


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I TE P ETATIO

Theabove table shows that 30% of respondentswas suggestedgovt. employees

andretiredpersonare thebest option forrecruit asanagentsand15% respondents

says that businessmanand fresherwhile10% respondentssays that housewifeare

thebest option forrecruit asagents.

15%

30%

30%

10%

15%

SEGMENT PREFERED FOR RECRUITMENT

BUSINESSMAN GOVT. EMPLOYEES ETI ED PERSON OUSE WIFE FRES ER

2. ovt. Employees 21 30

3. etired Person 21 30

4. ousewife 8 10

5. resher 10 15

TOTAL 70 00


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TABLE NO: 10

Q10. Would you be interested in a source of supplementary

income?

S. No. DISCRIPTION No. OF

RESPONDENTS

PERCENTAGE

1. Yes 32 46

2. No 7 9.33

3. May be 31 44.67

TOTAL 70 100


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I TE P ETATIO

The above table shows that 46% of respondents were interest in supplementary

income source while 44.67% of respondent are not sure about supplementary

incomesourceandremainingwerenot interested forthat.

TA LE O

Q11. hichsource ill you referredforsupplementones income?

46%

9%

45%

INTREST IN SUPPLEMENTARY INCOME

Yes No May Be


ESPO DE TS

PE E TAGE

1. ifeInsurance Agency 45 65

2. ulti level arketing 10 15

3. Tuitions 4 54. Part Time Business 7 10

5. TradingandInvestment in

stocks

4 5

Total 70 100


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I TE P ETATIO

Theabove tabledepicts that 65% of respondentsaresays that theywill prefer life

insurance sector for supplement incomewhile15% of respondent areprefermulti

level marketing, 10% of respondents are prefer part time business, 5% of

respondentsareprefertuitionsand5% ofrespondentsprefertradingand investment

instocks forsupplement income.

TA LE 12

Q12. ouldyou e interested inasourceofsupplementary income

offersflexi le orkinghoursandunlimitedearningopportunity?


ESPO DE TS

PE E TAGE

1. YES 14 21

65%

15%

5%

10%5%

PREFERRED SOURCE FOR SUPPLEMENTARY

INCOME

LIFE INSURANCE MULTILEVELMARKETING TUITIONS

PART TIME BUSINESS TRADING & INVESTMENT


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2. NO 47 68

3. AY BE 9 11

TOTAL 70 100

.

I TE P ETATIO

The above table shows that 68% of respondents were interested in source of

supplementary income for unlimited earning opportunity and 21% of respondents

werenot interested insupplementary incomewhile11% respondentswerenot sure

about sourceofsupplementary income.

Summaryand onclusions.

Summaryof Learning Experience

21%

68%

11%

INTRESTED IN SUPPLEMENTARY INCOME

YES NO MAY BE


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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,

T

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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Recommendations & Conclusion

Recruitment is essential to effective Human Resources Management. t 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 shouldindicate 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.

t 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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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 ap

summer training report on mas finance

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