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INTRODUCTION

The equity brokerage industry in India is one of the oldest in the Asia region. India had an active stock market for about 150 years that played a significant role in developing risk markets as also promoting enterprise and supporting the growth of industry. Historical records show that as early as 1864, there were about 1,000 brokers with the stock markets functioning from three places in Mumbai; between 9 am to 7 pm at the junction of Meadows Street and Rampart Row. Reports on stock markets around that time indicate that an ordinary broker in 1864 earned about Rs 200 per day, a huge sum in those days. The boom period came to an abrupt end in 1865. In Jul 1865, what was then used to be called the share mania ended with burst of the stock market bubble. A group of about 300 brokers formed the stock exchange in Jul 1875, which led to the formation of a trust in 1887 known as the Native Share and Stock Brokers Association

Beginning of a new equity culture


A new phase in the Indian stock markets began in the 1970s, with the introduction of Foreign Exchange Regulation Act (FERA) that led to divestment of foreign equity by the multinational companies, which created a surge in retail investing. The early 1980s witnessed another surge in stock markets when major companies such as Reliance accessed equity markets for resource mobilisation that evinced huge interest from retail investors. The early 1980s witnessed another surge in stock markets when major companies such as Reliance accessed equity markets for resource mobilisation that evinced huge interest from retail investors.

Terminals &

GREEN INVESTMENT
Green Investments (GI) is a financial service company that focuses on stocks of environmentally responsible companies. The Bangalore -based financial firm will be lead by Subramani. Services GI has developed a criteria-based marker system which is easy and effective in evaluating a wide range of different companies on their environmental impact. Only financially prudent/performing companies are evaluated, ensuring that its recommendations make both financial and environmental sense. Competitive Edge GI will leverage the proprietory evaluation system to quickly gain market share. The system is convenient and based on extensive research, providing a streamlined overview of the environmental performance of the companies.

Objectives
To become the premier environmental investment firm.
Attract more people into making investments based on environmental actions of the prospective companies, in effect raising the awareness of and supporting investments in companies that act on environmental concerns. Continue to drive down the costs associated with investment research as it relates to environmental criteria.

Keys to Success
Develop a workable, accurate set of environmental markers for a wide range of environmental impacts a company faces. Purchase high-quality financial performance investment research, recognizing that there is no value added for Green Investments doing this research themselves. Price the service so that there is a good profit margin while remaining competitive

Services
Green Investments is a financial service company that offers investment advice specifically for stocks. In addition to solid financial performance criteria, GI has developed a set of environmental markers by which it can analyze and grade the attractiveness of the environmental impact that a company has.
Green Investments' service charge is similar to a typical brokerage fee system based on a percentage.

Service Business Analysis


Green Investments participates within the financial service industry.
This multi-billion industry services a wide range of people and companies with financial services such as investments.
There are many different types of investments offered including but not limited to: Bonds Treasury bills Stocks, mutual funds Insurance policies Annuities

Market Analysis
Green Investments has identified two distinct groups of target customers. These two groups of customers are distinguished by their household wealth. They have been grouped as customers with <Rs.1 million and >Rs.1 million in household wealth.
The main characteristic that makes both of these groups so attractive is their desire to make a difference in the world by making investment decisions that take into account environmental factors

Financials:
Start-up Expenses Legal Brochures Licenses Insurance Research and Development Other Total Start-up Expenses Start-up Assets Cash Required Furniture Computers and other technical devices Total Start-up Assets 500000 100000 200000 800000 100000 10000 500000 10000 150000 30000 800000

Start-up Funding
Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required 800000 800000 1600000

Capital Structure Equity Debt- Loan @ 15% p.a 1200000 400000

Total

1600000

Operational Expenses Expenses Building Rent Stationery Salaries and Wages Power and Water Charges Software and Network Charges Others Total Per Month 20000 5000 100000 5000 Per Annum 240000 60000 1200000 60000

10000
10000 150000

120000
120000 1800000

INTEREST CHARGES
Interest Rate Debt Interest Charges 15% Year 1 400000 60000 Year 2 350000 52500 Year 3 300000 45000

Revenues:
Per Month Brokerage Chrgs Commission Year 1 Year 2 Year 3

200000

2400000

3600000

5400000

200000

240000

Total

2400000

3800000

5640000

Income Statement
Cash Flows Particulars Revenues Expenses Net Cash Flow Interest Charges PBT Taxes Year 1 2400000 1800000 600000 60000 540000 180000 Year 2 3800000 1980000 1820000 52500 1767500 546000 Year 3 5640000 2178000 3462000 45000 3417000 1038600

PAT

420000

1274000

2423400

SCOPE OF DIVERSIFICATION
The Firm can diversify in to follow in the long run: Export Financing. Agriculture Finance. Commercial Banks Carbon Credit Derivates Green Project Financing Rural Credits. Insurance for Green Projects Mutual Funds

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