1. INDUSTRY PROFILE

This project pertains broadly to the financial service sector.

In today's corporate and competitive world financial sector has the maximum growth and

potential as compared to other sectors. Financial products have the maximum growth rate of 70-

80%while FMCG has maximum 12-15% of growth rate.

In last few years,

India has emerged as the one of the most rapidly growing economies in the world.

India has been categorized with nations like Brazil, Russia and China (BRIC Nations) who

are going to be the prime drivers of world economy in next few decades.

Since the time, India first opened its gates to foreign investment (FDI & FII), there has been

a complete turnaround. Now the traditional Hindu rate of growth is a thing of past and

clocking 8%-9% GDP growth rate is the common norm.

India along with other Asian powerhouse China makes for the fastest growing nations in the

entire world.

Even in the case of ongoing global recession, India has managed to perform far better than

other nations.' Right from banking system to financial regularities, the country has thrived on

discipline and out-performance.

The booming Indian economy resulted in widespread growth and arrival of new industries.

All these resulted in a most sparkling phenomenon in the form of financial market renovation

of India. Financial services in India has' taken a giant leap from the days of standing in banks

queue for several hours for opening a saving account or trying to get some fixed deposits (FD)

done. The financial services have increased manifold and now people have the choice to choose

the one that most suitably fits the bill. There are several services like broking firms, investment

services, financial consulting, evergreen national banks, numerous private banks, mutual funds,

car and home loans, equity market and other banking services. Services are many and offered by

blue chip names of the industry.

Most of the companies in financial segment offer consultancy services and all the services of

wide financial gamut.

2. COMPANY PROFILE

Reliance Money, a Reliance Capital company, is part of the Reliance Anil Dhirubhai Ambani

Group. It is a comprehensive financial services and solution provider providing customers with

access to

~ Equity

~ Equity and Commodity Derivatives

~ Portfolio Management Services

~ Mutual Funds

~ IPOs

~ Life and General Insurance and

~ Gold Coins

~ Customers can ·also avail Loans, Credit Card, Money Transfer and Money Changing services.

2.1 Inception of Reliance Money

Reliance Money started operations in April 2007. The company is adding about 2,000 to 2,500

customers every day. It currently has about 1.65 lakh customers and the traded volumes have

crossed about Rs 1,200 crore. It has tied up with Chicago-based Alaron Trading Corporation, a

global, full-service commodity futures brokerage firm. !'Expanding our global presence,

especially with a company of the stature of Reliance Money, allows Alaron to seamlessly

embrace the rapid expansion in the futures market," Scott Slutsky,. Managing Director of Alaron

Trading, told news agencies. Alaron's trading platforms offer direct access to virtually every

electronic and pit-traded contract in the world. Reliance Money will facilitate the trading process

through its 88 branches and 2,200 outlets in India."Through this important window provided by

Alaron, our customers in India will be in a position to readily trade international commodity

futures in a cost effective, convenient, and secured manner," said Sudip Bandyopadhyay,

Director of Reliance Money.

The Reliance - Anil Dhirubhai Ambani Group is among India's top three private sector business

houses on all major financial parameters, with a market capitalization of Rs.325,000 crores (US$

8 billion), net assets in excess of Rs.115,OOO crores (US$ 29 billion), and net worth to the tune

of Rs.55,000 crores (US$ 14 billion). Across different companies, the group has a customer base

of over 100 million, the largest in India, and a shareholder base of over 12 million, among the

largest in the world. Through its products and services, the Reliance - ADA Group touches the

life of 1 in 10 Indians every single day. It has a business presence that extends to over 20000

towns and 4.5 lakhs villages in India, and 5 continents across the world.

Mr. Bandyopadhyay says, "We haven't entered this business to take a share in this

market. We are going to expand the market."He explains, 'The number of investors in

mutual funds is about 30 million going by the folios. The number of individual bank

accounts in the country is about 330 million. But the number of demat accounts has

stagnated around 5.8 million for the past decade."

Reliance Money is an all-India presence and a reach that is on a par with what State Bank

of India enjoys with about 9,500 branches..

Reliance Money's key business driver may be its pricing strategy. It has decided to levy a

flat charge of Rs 500 per annum for trading volumes of up to Rs 1 crore and slightly

higher charges for higher volumes. Currently competing brokerages charge something in

the region of 0.5% to 1% on each transaction.

As Mr. Bandyopadhyay puts it, "Brokers charge you 1% if you buy 10 shares. They

charge someone else 1% of the cost of 100 Shares, if they buy 100 shares and similarly

1% of 1,000 shares if you buy 1,000 shares. There is no extra effort involved except

punching in an extra zero. Why pay just to punch an extra zero?"

Objective of the company

The main objectives of the company are as follows

To attain global best practices and become' a world-class financial services enterprise

guided by its purpose to move towards greater degree of sophistication and maturity.

To work with vigor, dedication and innovation to achieve excellence in service, quality.

Reliability, safety and customer care as the ultimate goal.

To earn the trust and confidence of all stakeholders, exceeding their expectations and

make the Company a respected household name.

To consistently achieve high growth with the highest levels of productivity.

To be a technology driven, efficient and financially sound organisation.

To contribute towards community development and nation building.

To be a responsible corporate citizen nurturing human values and concern for society, the

environment and above all the people.

To promote a work culture that fosters individual growth, team spirit and creativity to

overcome challenges and attain goals.

To encourage ideas, talent and value systems.

To uphold the guiding principles of trust, integrity and transparency in all aspects of

interactions and dealings.

Milestones Achieved so for

In last 12 months Reliance Money have taken giant strides. It has been:

India's Top Broking and Distribution house..

The largest broker with distribution reach of 20,000+ touch points, 10,000+ outlets across

4000 towns/cities

1 lakh transactions on an average, in the money transfer business.

Amongst the largest private sector partners of Western Union Money Transfer in India.

2.1.2 Growth of the organization

The growth of the company is driven by 8 success sutras adopted by it namely trust,

integrity, dedication, commitment, enterprise, hard work and team play, learning and innovation,

empathy and humility.

Reliance Money generated revenues of Rs.35 billion (US$ 767 million) for the year

March 31, 2009 as against Rs.24 billion of the corresponding previous period, an increase

of 48%. It also achieved net profit ofRs.368 million (US$ 8 million) for the same period,

as against a net profit of Rs.1 million for the corresponding previous period.

Reliance Money is amongst the leading mutual fund distributors of the country

distributing products of 20 AMes. It is the largest private sector partner for Western

Union Money Transfer in India.

The Rs 352 crore online broking and distribution major, Reliance Money, is the first

mover in deploying technology tools across its operations. Having all of its operations

automated with tightly controlled risk management.

Mr. Bandhyopadhyay believes IT brings in and finds that technology usage would ensure

high data availability, accuracy and integrity to the trading business and help differentiate

oneself from the competition. The IT head, Nagaraj, has left no stone untamed in driving

the IT benefits to users. Being a strategic planner, Nagaraj has evolved a clear IT

blueprint categorizing IT under three portfolios such as expansion, strategic and

sustenance which address all challenges as a cost control, mitigating risk, and helping in

expansion to address a larger audience.

Reliance Money generated revenues of Rs. 35 billion (US$ 767 million) for the year

March 31, 2009 as against Rs. 24 billion of the corresponding previous period, an

increase 'of 48%. It also achieved a net profit of Rs. 368 million (US$ 8 million) for the

same period, as against a net profit of Rs. 1 million for the corresponding previous

period. This increase was primarily due to the expansion of the distribution network and

increase in its customer base.

Growth Drivers of Reliance Money.

Reliance Money is a comprehensive financial. services and solutions provider, providing

customers with access to equities, equity options and commodities futures, wealth

TRUST

LEARNING & INNOVATION

DEDICATIONHARD WORK & TEAM PLAY

ENTERPRISEINTEGRITY

EMPATHY & HUMANITY COMMITIMENT

GROWTH DRIVERS FOR RELIANCE MONEY

management, portfolio management services, mutual funds, IPOs, life and general

insurance~ products, offshore investments, credit cards, money transfer, currency

exchange and gold coins.

Reliance Money has tied up with global partners like Reuters, Vasco, Valcambi,

Webaroo, OptionsXpress Holdings, Goldride Securities, Wodd Gold Council, Wincor

Nixdorf and DBS Vickers to facilitate better access to wider world class choices to its

customers.

In addition to the home-grown portfolio of products and services that Reliance Capital

has to offer, Reliance Money also distributes a variety other~ party financial products. It

also assists millions of investors. in creating customized individual portfolios based on

their diverse investment needs and risk profiles.

Reliance Money is amongst the leading Mutual fund distributors of the country

distributing products of 20 AMCs. It is the largest private sector partner for Western

Union Money Transfer in India.

To further improve its position in the money changing and money transfer business,

Reliance Money has acquired a significant share holding in Wall Street Finance Ltd, a

leading provider of money changing and money transfer services in the Country.

Reliance Money has tied up with Kuoni India and plans to retail its forex products/

services through the national network of over 70 Kuoni outlets.

Reliance Money has tied up with India Post and World Gold Council to sell gold coins

through the post office network across the country.

Reliance Money has obtained Category - I Merchant Banking License from the

Securities and Exchange Board of India. This new license allows Reliance Money to

provide a wide range of investment banking services such as Issue Management,

Underwriting, Private Equity Advisory/ Syndication and Corporate Finance services in

India.

Reliance Money is taking its first steps into the Commodities Exchange business and is in

the process of acquiring a 15 per cent stake in Hong Kong Mercantile Exchange

(HKMEx). With this holding, Reliance Money becomes the second-largest shareholder in

the commodity exchange and will have a board membership. Reliance Money is the first

Indian finn to acquire a stake in an international exchange.

It has also obtained approval from, the Ministry of Consumer Affairs for acquiring 10%

stake in the National Multi-Commodity Exchange of India Ltd. (NMCE).

2.2 Nature of the business carried

Reliance money is carrying business such as it is giving a service of online trading with less

brokerage Charge, and it also having· financial products such as Life Insurance . General

insurance giving investment facility in Equity, mutual fund, PMS, and also it is carrying a .

money transfer and money exchange, and also dealing with gold coins.

2.3 Vision Mission and Quality Policy

Vision

The vision of Reliance Money is to achieve & sustain market leadership, Reliance Money shall

aim for complete customer satisfaction, by combining its human and technological resources, to

provide world class quality services. In the process Reliance Money shall strive to meet and

exceed customer's satisfaction and set industry standards.

Mission

The mission of the company is to be a leading and preferred service provider to our customers,

and we aim to achieve this leadership. position by building an innovative, enterprising, and

technology driven organization which will set the highest standards of service and business

ethics.

Quality policy

Talented, efficient and competent team of youngsters rolling out high profile applications for the

global business community, keeping in mind true quality, total customer satisfaction, delivering

on time, right time, every time.

Creatively involved in providing high quality products and services through:

• Responsiveness to customer needs.

• Provision of work satisfaction and promising careers. .

• Constant measurement and monitoring of all operations.

• Continuous improvements of procedures, products, and services; and

• Performance of operations in a responsible manner.

2.4 Product and service profile

'Reliance Money provides a· comprehensive platform, offering an investment avenue for a wide

range of asset classes. Its Endeavour is to change the way India transacts in financial markets and

avails financial services. Reliance Money currently offers its services in Broking and

Distribution of Financial Services and Products.

Equity

• Separate Dealing Room for HNI, Institutional & Corporate Clients at the head office in

Mumbai, manned by expert dealers

• Relationship Manager assigned for each large relationships.

• Tools that help plan investments, tax, retirement, etc.

• Risk profile analyzer

• Asset allocators to build an appropriate investment portfolio..

Equity and Commodity Derivative

• Trading and Clearing membership of BSE, NSE, MCX and NCDEX providing broking

• services in Equity, Equity & Commodity Derivatives

• Option of on-line as well as off-line trading

• Trading is completely secure with 3 levels of security i.e. User ill, Password and

Security Token, which is available only with Reliance Money Portfolio Management

Services (PMS)

• Investors get regular statements and updates on the investments

• Investors get access to Relationship Managers Financial Advisors through whom they

dill interact with Fund Managers to discuss their portfolio

Wealth Management Services

• End to end Wealth Management Services.

• Assessing financial health and risk profiling of the client.

• Tax Advisory includes buying, selling, renting and valuation of properties..

• Mutual Funds

• Distribution of equity and debt products from leading AMCs including structured products

such as Portfolio Management Services.

• Financial Planning Through SIPs.

• Systematic Investment Plans (SIPs)

• SIP is a method to increase exposure to equities gradually over a long period of time say

over 5-10 years by investing in equity funds by using the concept of rupee cost of

averaging.

• Disciplined investing in equity funds over longer time frames coupled with power of

compounding helps generate superior returns.

• SIP provides better downside protection as the amount invested each month is very small

compared to the overall investment.

IPO

• IPO Distribution: Reliance Money distributes all IPOs (Book Building as well as Fixed

Priced) pan India through its distribution channel (Online + Offline) and helps get IPO

• Investment benefits by providing end to end assistance

• Life and General Insurance

• Life Insurance

• Reliance Money provides Life Insurance that helps provide financial assurance and

securities for your dependents and loved ones. Life Insurance products offer

comprehensive financial solutions which besides offering financial security also provide

opportunity for saving, investment and tax planning..

• General Insurance

• Reliance Money extends various General Insurance products with an exhaustive range of

insurance policies that covers most risk including Motor, Health, roperty, Marine,

Casualty, Credit and Liability

• Pure Gold Coin

• Gramm age: 0.5 gram, 1 gram, 5 gram and 8 gram, Pure Gold Swiss Coins

• Purity: 24 carat, 99.99% pure

• Fineness: 999.9 (Highest purity that can be achieved in Gold)

• Packaging: Available in a see through, tamper-proof packaging with a certificate of purity

from Swiss Assayer

• Availability: All India, across all Reliance Money and Reliance World outlets

Money Changing.

• Reliance Money Express is a Full-Fledged Money Changer (FFMC) authorized by

the Reserve Bank of India for foreign exchange transaction

• Sales and Purchase of Foreign Currency Notes.

• American Express Traveler's Cheques and Prepaid Foreign Currency

2.5 Area of operation

o Reliance Money offers the services not only all over India but also outside India.

Reliance

o Money is one of the leading brokerage and distributors of financial products in India

with more than 3.3 million customers.

2.5.1 Operation in India

As on March 31, 2009, Reliance Money had a distribution network of 10,350 outlets across

5,165 locations in India.

TABLE 1 : Detail Scale of Operation of Reliance Money In India

Scale Of Operation On 31st March 2010 On 31st March 2009

No of outlets 10350 8512

Franchise 10125 8279

Owned 225 233

No. of broking accounts 1010000 713636

Total no. of customers 3300000 2000000

Daily average stock exchange turn over ( Billion)

15 15

Reliance Money has over 96 offices all over India.

2.5.2 Overseas Branches of Reliance Money

• Hong kong

• Malaysia

• Muscat

• Nigeria

2.6 Ownership pattern

Reliance Capital is one of India's leading and fastest growing private sector financial services

companies, and ranks among the top 3 in terms of net worth.

Reliance Money, a Reliance Capital company, is part of the Reliance Anil Dhirubhai Ambani

Group. It is a comprehensive financial services and solution provider providing customers with

access to Equity, Equity and Commodity Derivatives, Portfolio Management Services, Mutual

Funds, lPOs, Life and General Insurance and Gold Coins. Customers can also avail Loans, Credit

Card, Money Transfer and Money Changing services. The largest braking house in India with

over 2.5 million customers and a wide network of over 10,000 outlets and 20,000 touch points in

5,000+ locations. The average daily volume on the stock exchanges is Rs. 2,000 crores,

representing approximately 3% of the total stock exchange volume.

The Reliance - Ani! Dhirubhai Ambani Group has a market capitalization of Rs.325,000 crores

(US$ 81 billion), net assets in excess of Rs.115,OOO crores (US$ 29 billion), and net worth to

the tune of Rs.55,000 crores (US$ 14 billion). Across different companies, the group has a

customer base of over 100 million, the largest in India, and a shareholder base of over 12 million,

among the largest in the world. It has a business presence that extends to over 20000 towns and

4.5lakhs villages in India and 5 continents across the world.

FOUNDER OF RELIANCE

Few men in history have made as dramatic a contribution to their country's economic fortunes as

did the founder of Reliance, Sb. Dhirubhai H Ambani.

There is more than one unique way of describing the true genius of Dhirubhai: The corporate

visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India's

capital markets, and the champion of shareholder interest.

When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300

(around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise

into a Rs 60,000 crore colossus-which earned Reliance a place on the global Fortune 500 list,

the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of

India's capital markets. In 1977, when Reliance Textile Industries Limited first went public, the

Indian stock market was a place patronized by a small club of elite investors which dabbled in a

handful of stocks. Dhirubhai always kept the interests of the ordinary' shareholder uppermost in

mind in the process making millionaires out of many of the .initial investors in the Reliance

stock, an creating one of the world's largest shareholder families.

CHAIRMAN'S PROFILE

Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D Ambani,

50, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance

Communications, Reliance Capital, Reliance Energy, Reliance Natural Resources and Reliance

Power.

2.7 Competitors information

Reliance Money has many competitors like SCHIL, Karvy Consultancy,BGSE, IL&FS,

Canara .Bank. ICICI, HSBC, HDFC, Sharekhan, IDBI. Standard hartered, ANZ GRINDLEYS,

Religare, Indiabulls etc.Services provided by main competitors are given belo

ICICI Direct

Trading In Shares and Derivatives.

Investing In Mutual Funds.

IPOs and Bonds Online.

Overseas Trading.

Personal Finance.

Risk Analyzer and Asset Allocator.

Other Features:

Market Desktop.

Market Barometer and Industry Barometer.

Direct Technical Charts and Multex Global Estimates.

My Research that helps you to Research a Stock Better.

News from CNBC and REUTERS.

Share Khan

Technical Research

Equity And Derivatives Trading

Depository Services

Fundamental Research

Share Shops

Portfolio Management

Online Services

Commodities Trading

India Bulls

Power India Bulls

India Bulls Signature Account

Depository Services

IPO online

NRI Trading

Currency Derivatives in NSE

India Bulls Equity Analysis

HDFC Securities

Trading in Equity and Derivatives'

Mutual Funds and IPO

Weekly Derivative Future Report .

Aggressive Portfolio

Conservative Portfolio

Weekly Technical Report and Market Wrap

Research and Charting.

RELIGARE

CRN Login

Call N Trade

Portfolio tracker

Research

KOTAK Securities

Easy Equity and Derivatives

Currency Derivatives

Easy Mutual Fund

Kotak Research

NRI Service

Smart Start

2.8 Infrastructural facility

The Reliance money financial service ltd, is located in Bangalore- Ulsoor

The company has rented property:

Total Area rented by the company is located : 3,000 square feet.

Built in Area of the company : 2,800 square feet.

All the member of the company employees are good in communication. Also good information

air technology support is available. Cleanliness is given utmost importance in the company.

There are air- conditioners, proper lighting and ventilation and Tele communication facilities.

The Reliance money company also provides Travel allowances, and Medical allowance facilities

to the employees and parking facility is also available.

TECHNOLOGY

With over 50000 sq ft of built infrastructure they have used technology to enable their business

and delivery services with cutting edge technology. They have established a dedicated

technology data at with built-in all purpose redundancies to support their clients. The various

aspects with regards to infrastructure are described below:

HARDWARE

Reliance money has invested in state-of the-art infrastructure for its data and server farms and

has tied up with leading technology companies for supply of class server hardware and high

workstations They provide continuous systems integration and support for the facilities at their

office. The server infrastructure support hybrid platforms and it has been designed for high

availability transaction volumes. The work desks are occupied with finest workstation at

operational levels.

SOFTWARE DEVELOPMENT

The Reliance money in-house development team is fully occupied with the latest tools of

development and are trained and certified periodically with the industry best practices by experts

from the industry.

NETWORK

The local area networks are deployed using Cat6 cables for data and Cat6 cables for voice with

the fancily to create segregated virtual user and corporate LANS. More recently Reliance money

has also started migrating to the MPLS network to connect with their branches and provide

world class infrastructure at each of our location.

2.9 Key Achievements.

Reliance Money has achieved many milestones like-

Awarded 'Franchiser of the year' award (service industry) in 6th International Franchise

& Retail show 2009.

Runner up of 'Best e- Brokerage' award from Outlook Money- NDTV Profit for 2008

Awarded 'The Debutant franchisor of the year' at the 5th International Franchise and

Retail Show 2007, New Delhi.

Rated No.1 Broking House in India by Starcom.

Awarded the 'Red hat World is open Award' for launching highly successful internet

Trading Kiosk. The award and the process was driven by Stock Consultancy Private

Limited.

Awarded the 'Employer of Choice Award' for creating opportunities for the youth in the

Financial Services Sector. The award was given by the Indira Group of Institutes, Pune.

Mr. G.N. Nagraj, CTO, Reliance Money has been awarded the 'CIO of the year Award'

by IT people.

2.10 Work Flow Model.

Reliance money

Bank interface

Surveillance.

Administrative server.

BSE/ NSEterminal.

D P Interface.

2.11 Future .Growth & prospects

The growth of financial sector in India at present is nearly 8.5% per year. The rise in the growth

rate suggests the growth of the economy. The financial policies and the', monetary policies are

able to sustain a stable growth rate. The reforms pertaining to ~he monetary policies and the

macro economic policies over the last few years have influenced the Indian economy to the core.

The major step towards opening up of the financial market further was the nullification of the

regulations restricting the growth of the financial sector in India. To maintain such a growth for a

long term the inflation has to come down further. The financial sector in India had an overall

growth of 15%, which has exhibited stability over the last few years, although several other

markets across the Asian region were going through turmoil. The development of the system

pertaining to the financial sector was the key to the growth of the same. With the opening of the

financial market variety of products and services were introduced to suit the need of the

customer. The Reserve Bank of India (RBI) played a dynamic role in the growth of the financial

sector of India.

Future prospect of Reliance Money

Reliance Money, the financial services arm of Reliance Capital Ltd, plans to launch portfolio

management services (PMS), where managers will create a basket of stocks for each client,

based on individual needs, for amounts as low as Rs5 lakhs. Such services are popular in India

but, almost all the offerings of large finance companies target high net worth individuals (HNIs)

with the ability to invest Rs l crore and above. Reliance Money, which helps clients invest in

equities, derivatives and commodities, will typically offer such services for amounts between

Rs5 lakhs and Rs75 lakhs; Rs5 lakhs is the smallest amount the industry's regulator mandates for

PMS. Reliance Money will launch its PMS ion December and will especially target executives

and professionals in metros and smaller towns.

Reliance Money would not take a fee unless the portfolio earns a return higher than 8%. If the

client earns a return of 8-20%, the fee charged will be 10% of the absolute returns and if the

client earns more than 20%, the fee will be 20%. The company: plans to offer a large-cap

investment portfolio (where the stocks invested in will be those of large-cap companies), blue

chip portfolio (blue chip companies) and an infrastructure portfolio (companies in the

infrastructure sector).Reliance Money, which started operations in April, already has around

250,000 invest or accounts and 3,000 outlets by law, while others are optional agreeing to the

terms of an insurance policy.

TRUST

LEARNING & INNOVATION

DEDICATION

HARD WORK & TEAM PLAY

ENTERPRISINTEGRIT

EMPATHY & HUMANITY

COMMITIMEN

3. MC-KINSEY'S 7S FRAME WORK

The 7-S model is better known as Mc-Kinsey 7-S. The Mc-Kinsey 7-S model is

widely discussed framework for viewing the inter relationship of strategy

formulation and implementation. It helps to focus manager attention on the

importance of linking the chosen strategy to a variety of activities that can affect

the implementation of strategy. Developed in the early 1980s by Tom Peters and

Robert Waterman, two consultants working at the McKinsey & Company

consulting firm, the basic premise of the model is that there are seven internal

aspects of an organization that need to be aligned if it is to be successful

3.1 Hard and soft elements

The 7-S elements are distinguished in so called hard S's and soft S's. The four soft-

S like Style, skill, staff and shared values are hardly feasible.

Hard and soft elements of MC KINSEYS 7s model

Hard Elements

strategystructuresystem

soft Elements

shared valuesskillsstylestaff

Hard elements

"Hard" elements are easier to define or identify and management can directly influence them.

These are strategy statements, organization charts and reporting lines and formal processes

and IT systems. The hard elements like structure, system and strategy are feasible and

easy to identify.

Soft elementsSoft elements, on the other hand, can be more difficult to describe, and are less tangible and more

influenced by culture. However, these soft elements are as important as the hard elements if the

organization is going to be successful.

The way the model is presented in below depicts the interdependency of the elements and

indicates how a change in one affects all the others

Mc Kinney’s 7-s framework with reference to company profile

7S model can be better understood by analyzing the following questions.

STRATEGY:

► What are our objectives?

► How do we intend to achieve our objectives?

► How do we deal with competitive pressure?

►How are changes in customer demands dealt with?

► How is strategy adjusted for environmental issues?

Structure: ► How is the company/team divided?

► What is the hierarchy?

► How do the various departments coordinate activities?

► How do the team members organize and align themselves?

► Is decision making and controlling centralized or decentralized? Is this as it

should be, given what we're doing?

► Where are the lines of communication? Explicit and implicit?

Systems:

► What are the main systems that run the organization? Consider financial and HR

systems as well as communications and document storage.

► Where are the controls and how are they monitored and evaluated?

► What internal rules and processes does the team use to keep on track?

Shared Values:

► What are the core values?

► What is the corporate/team culture?

► How strong are the values?

► What are the fundamental values that the company/team was built on?

Style:

► How participative is the management/leadership style?

► How effective is that leadership?

► Do employees/team members tend to be competitive or cooperative?

► Are there real teams functioning within the organization or are they just nominal

Groups?

Staff: ► What positions or specializations are represented within the team?

► What positions need to be filled?

► Are there gaps in required competencies?

Skills:

► What are the strongest skills represented within the company/team? ►

Are there any skills gaps?

► What is the company/team known for doing well?

► Do the current employees/team members have the ability to do the job? ►

How are skills monitored and assessed?

Now 7S can be understood pertaining to Reliance Money

3.2 Strategy

Strategy is the planning devise to maintain and build competitive advantage over the competition.

The main strategies made by Reliance money

► The main strategy is to maintain the consistency in quality and provide good

quality services to their clients.

► to attain global best practices and become world class financial services

enterprise- guided by its purpose to move towards greater degree of

sophistication and maturity.

► To adapt new technologies fast.

3.3 Structure

Reliance Reliance General Insurance

Reliance Life

Reliance Money

Reliance Consumer Finance

RELIANCE CAPITAL

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

organization structure. It constitutes the basic organization of the company, its department,

reporting lines, areas of expertise and responsibility.

Reliance Money has 6 departments and the details of the same are as following

Departments of Reliance Money

3.4 Administration Department

Administrators are basically facilitators of the company. They take care of all the facilitating

activities of all the departments. They help in coordinating different activities in an organization

from selecting the location of the outlet to providing necessary infrastructure and maintaining the

same.

Main Activities of Administration Department:

Selecting the location.

Providing with the required infrastructures like computers, furniture, fittings & fixtures, air

conditioners etc.

Providing the storage facility.

Looking after Marketing, Branding, and Legal, Sales and Distribution, payment of salaries

and other payments required for the functioning of day to day activities

Sales and Distribution Department

In Reliance Money sales and distribution department plays an important role in the

following way

Collecting the leads from the website, kiosks and trainees.

Contacting the clients through direct contact or mails.

Operations Departmen

Marketing Department

Human Resources

Department

Sales & Distributions Department

Reliance Money

Administration Department

Finance Departmen

Explaining the features of the products.

Explain about the essential documents.

Facilitate the customers with a Demo.

Marketing Department

Marketing is the delivery of customer satisfaction at a profit. Marketing, any other business function

deals with customer. Creating customer value and satisfaction are the heart of the modem marketing.

Therefore two fold goal marketing is to attract new customers by promising superiors value and to

keep current customers by delivering satisfaction.

In Reliance Money marketing highlights on

Understanding consumer needs and wants.

Value satisfaction and quality.

Products and services.

Exchange, transfer and relationship.

Human Resource Department

HR adds considerable value when it creates a customer focused corporate culture. In Reliance Money

they follow that HR professional must be highly knowledgeable about the market place for capital,

products and services. HR must not only be knowledgeable of specific customer issues, but also of

key aspects of the macro-societal environment such as:

Changing values.

Major problems and the challenges, which are shared by the large segments of the

population.

Structures of inter-personal relationship that influence buying process.

Talent management.

HR Functions in Reliance Money:

Talent acquisition

Talent development

Talent management

Figure 5: Human Resource department of Reliance Money

Operation Department

The role of operation department is to carry out the policies and underwriting works. The other

functions include performing the day to day activities as well as smooth functioning of enterprise

business.

Following are the important functions of the operations department of Reliance Money

Issuing the policies.

Verification of the documents.

Settling down the claims.

Charges deduction.

Dispatching the policy documents.

Settling the customer's problems.

Making records related with the customers.

Follow up.

Finance Department

Finance is the life blood of the organization it is one of the main departments in the company. To

run any organization it should have sufficient fund and it should carry the cost as minimum as

possible. The company may arrange required finance by the way of the equity fund or by way of

debt fund. Whatever it may be the ultimate goal of the finance department is to maximize that

value of the firm to its equity shareholders.

Responsibilities of Finance Department in Reliance Money are:

Reliance Money Head HR

Talent Acquisition

Learning & Development

Talent Management

National Head

Zonal Head Regional Head

National Head

Zonal Head

To provide account and complete systematic information of financial activities

To maintain all the books of account and other financial documents

To prepare periodic financial statements have the company like Profit & Loss account

and Balance Sheet.

The Four Main Functions of Finance Department of Reliance Money are

Financial decision

Investment decision

Dividend decision

Capital structure decision

3.5 Skills

It means the actual skills and competencies of the employees working for the company and the

company itself what the company does the OOst- the distinctive capabilities and competencies

that reside in the organization. Reliance Money is best known for its network. It's all India

presence gives a competitive look.

The company is doing well in adopting new products and services.

3.6 Style

All organizations have their own management style. The style refers to how managers behave in

an organization and how collectively spend their time to achieve the organizational goal.

In Reliance Money the leadership is not much effective as the groups are not performing as real

team. In the team also they have competition which affects the team culture.

3.7 Systems

The systems consist of formal and informal procedures, including innovation systems,

compensation systems. The systems also include data collection, storage and utilization for

record and appraisal purposes. (Management information systems i.e. reports of various

departments, financial information system i.e. marketing and sales information, employee

information system.

3.8 Staff

The staff of Reliance Money is divided into national head, regional head, zonal head, cluster

head and centre manager, minimum education for the managers is master degree in MBA and

work experience.

Reliance money adopts various training facilities to,

Upgrade the skills of the employees

Enable the employees to contribute towards organizational objectives.

Facilitating a self learning

The company has developed skills and expertise in sales and marketing of Demat,

insurance, and other products

3.9 Shared values

Shared values also refer to the values and beliefs of the company. The value helps the members

in the organization to achieve effective goals.

The Reliance Money is committed to abide to the following values and responsibilities:

Be a lean, responsive and learning organization.

Continuously improve to achieve world-class standards and total customer satisfaction.

Maintain cost effective service to the customer.

Ensure a common culture and a common set of values throughout the organization

Recognize individuals' contributions.

Develop stronger leadership skills, greater teamwork and a global perspective.

4. SWOT ANALYSIS

SWOT analysis means analysis of the internal strengths and weakness of the company and also analysis

of external opportunities and threats of the company.

4.1 Strength

On line share trading.

Flexible organization

Low brokerage services

High speed trading

Brand name of the Company.

No hidden charges.

Customer education center

Convenient & Safe

Single - Window Access

Cost effective

Value-Added services

4.2 Weaknesses

No Service in Rural Segment.

Clients are still comfortable with traditional way of trading.

For the intraday system automatically sell the shares at 2.55pm

4.3 Opportunities

More Potential Market.

Awareness through Media.

Foreign Direct Investments & Foreign Institutional Investors in Indian markets.

4.4 Threats

Market fluctuations

Government polices and war atmosphere from neighboring countries.

Competition from banks and insurance sectors.

Indian market is still in the infant stages in online trading.

Internet is not available in major part of the nation.

5. ANALYSIS OF FINANCIAL STATEMENT

Key Financial Ratios of Reliance Capital

------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 3.20 3.50 5.50 6.50 6.50

Operating Profit Per Share (Rs) 27.61 31.58 67.87 95.45 69.94

Net Operating Profit Per Share (Rs) 29.03 35.56 84.15 119.69 96.35

Free Reserves Per Share (Rs) 159.10 182.47 209.29 228.78 233.68

Bonus in Equity Capital -- -- -- -- --

Profitability Ratios

Operating Profit Margin(%) 95.11 88.80 80.65 79.74 72.59

Profit Before Interest And Tax Margin(%) 91.19 87.13 79.34 77.95 71.63

Gross Profit Margin(%) 91.53 87.99 79.83 79.02 71.82

Cash Profit Margin(%) 86.17 74.22 54.11 34.83 14.52

Adjusted Cash Margin(%) 86.17 74.22 54.11 34.83 14.52

Net Profit Margin(%) 82.78 73.24 49.30 32.48 14.30

Adjusted Net Profit Margin(%) 82.78 73.24 49.30 32.48 14.30

Return On Capital Employed(%) 13.86 11.84 10.83 11.48 9.02

Return On Net Worth(%) 13.19 12.51 17.01 14.45 4.92

Adjusted Return on Net Worth(%) 13.16 12.54 18.39 15.18 4.74

Return on Assets Excluding Revaluations 12.03 210.12 245.29 272.66 280.32

Return on Assets Including Revaluations 12.03 210.12 245.29 272.66 280.32

Return on Long Term Funds(%) 14.02 11.84 10.83 15.37 9.85

Liquidity And Solvency Ratios

Current Ratio 11.60 19.36 10.18 1.57 2.48

Quick Ratio 11.57 19.34 10.14 26.31 7.43

Debt Equity Ratio 0.04 0.27 1.55 2.02 1.72

Long Term Debt Equity Ratio 0.04 0.27 1.55 1.26 1.49

Debt Coverage Ratios

Interest Cover 13.15 18.24 4.07 1.91 1.35

Total Debt to Owners Fund 0.04 0.27 1.55 2.02 1.72

Financial Charges Coverage Ratio 13.67 18.40 4.11 1.93 1.34

Financial Charges Coverage Ratio Post Tax 13.41 16.32 3.55 1.80 1.28

Management Efficiency Ratios

Inventory Turnover Ratio -- -- -- -- --

Debtors Turnover Ratio 28.50 5.88 9.41 22.05 23.35

Investments Turnover Ratio -- 1,081.71 -- -- --

Fixed Assets Turnover Ratio -- -- -- -- --

Total Assets Turnover Ratio 0.15 0.13 0.13 -- --

Asset Turnover Ratio 1.72 2.95 6.39 8.79 12.54

Average Raw Material Holding -- -- -- -- --

Average Finished Goods Held -- -- -- -- --

Number of Days In Working Capital 1,044.88 1,660.58 1,831.07 1,412.84 1,216.93

Profit & Loss Account Ratios

Material Cost Composition -- -- -- -- --

Imported Composition of Raw Materials Consumed -- -- -- -- --

Selling Distribution Cost Composition -- -- 1.11 2.14 5.06

Expenses as Composition of Total Sales -- -- -- -- --

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 15.12 15.56 15.41 19.29 55.03

Dividend Payout Ratio Cash Profit 14.50 15.39 15.15 18.88 52.24

Earning Retention Ratio 84.84 84.48 85.75 81.63 42.80

Cash Earning Retention Ratio 85.47 84.64 85.96 82.01 45.81

AdjustedCash Flow Times 0.30 2.14 8.29 13.27 34.69

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Earnings Per Share 24.12 26.31 41.75 39.41 13.82

Book Value 182.75 210.12 245.29 277.10 283.31