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(•IIFL Inside 1-35.Qxd:India Info Inside Pg “IF MONEY IS YOUR“ HOPE FOR INDEPENDENCE YOU WILL NEVER HAVE IT. THE ONLY REAL SECURITY THAT A MAN WILL HAVE IN THIS WORLD IS A RESERVE OF KNOWLEDGE, EXPERIENCE AND ABILITY.” –” Henry Ford 2 India Infoline Limited KNOWLEDGE @ IIFL. Catalyst. Enricher. Hedge. For the benefit of more than one million IIFL customers. Annual Report 2009-10 3 Snapshot IIFL – THE ONE-STOP FINANCIAL SERVICES SHOP. The IIFL Group is a leading player in MCX/SX and NSE for currency operations and final approval from SGX the Indian financial services space. derivatives segment, with MCX, are under progress. IIFL Capital Pte IIFL offers advice and execution NCDEX and DGCX for commodities Ltd. is notified with MAS for business platforms across the entire range of trading and with CDSL and NSDL as of fund management and as financial financial services – equities, depository participants. It is also adviser. derivatives, currencies, commodities, registered as a Category I merchant IIFL’s subsidiary in Sri Lanka, IIFL wealth and asset management, life banker and as a portfolio manager Securities Ceylon (Pvt) Ltd., has insurance mobilisation, investment with SEBI. Its equity shares are listed received an in-principle membership of banking and credit. Founded in 1995 on the Bombay Stock Exchange (BSE) the Colombo Stock Exchange. and the National Stock Exchange as an independent business research India Infoline Commodities DMCC (NSE). and knowledge provider, IIFL has regulated by DGCX and DMCC and is evolved into a one-stop financial IIFL Securities Pte Ltd is registered engaged in Commodity broking services solutions provider. with the Monetary Authority of business in Dubai. Singapore (MAS) for dealing in IIFL enjoys a pan-India presence IIFL subsidiaries – India Infoline securities and corporate finance and through over 2,300 business locations Investment Services and Moneyline notified for research activities. It has in 450 cities and towns. Its global Credit Limited – are registered with the received in principle approval as footprint extends across Dubai, New RBI as non-deposit taking, non- trading member and CDP clearing York and Singapore. banking finance companies. India member from Singapore Exchange IIFL is registered with the BSE and Infoline Housing Finance Ltd, the (SGX). Setting up trading infrastructure the NSE for securities trading (cash housing finance arm, is registered with and systems for commencement of and derivatives segment), with the National Housing Bank. 4 India Infoline Limited Incorporated as an independent equity research and consulting firm with clients comprising leading FIIs, banks, consulting firms and MILESTONES. corporates 1995 Restructured the business model to Commenced the distribution of Acquired a commodities broking embrace the internet; launched personal financial products; license; launched Portfolio www.indiainfoline.com and launched online equity trading; Management Service mobilised capital from reputed entered life insurance distribution as private equity investors corporate agent; acknowledged by Forbes as ‘Best of the Web’ and ‘...must read for investors’ 1999 2000 2004 Listed on the Indian stock markets Acquired membership of DGCX; Launched a proprietary trading launched investment banking platform, the Trader Terminal; services inducted an institutional equities team; raised over US$ 300 mn in the group; launched the consumer finance business under the ‘Moneyline’ brand. IIFL’s US-based subsidiary acquired registration as FII from SEBI and commenced global advisory 2005 2006 business. 2007 Launched wealth management Received registration for a housing IIFL Securities Pte. Ltd. (Singapore), services under the ‘IIFL Wealth’ finance company from the National received in-principle approval from the brand; received the insurance Housing Bank; recognised as Singapore Stock Exchange, broking license from IRDA; received ‘Fastest growing Equity Broking IIFL Securities Ceylon (Pvt) Ltd. ‘Best broker- India’ award from House - Large firms’ in India by Dun (Sri Lanka), received in-principle FinanceAsia; and ‘Most Improved & Bradstreet; received in-principle approval for membership of the Brokerage- India’ award from Colombo Stock Exchange approval to sponsor a mutual fund Asiamoney. for stock broking 2008 2009 2010 Annual Report 2009-10 5 VISION To become the Most Respected Company in the financial services space 6 India Infoline Limited OUR STRATEGY. Business strategy Customer strategy People strategy Continuously assimilate, analyse and Enhance customer retention through Attract exceptionally talented and apply knowledge to power superior quality research and service driven people financial decisions Efficiently deploy cutting-edge Ensure a conducive environment Focus on core competence in financial technology Share ownership liberally services Create a wide, multi-modal network to Derisk through multiple products and serve customers at one stop diverse revenue streams IIFL SERVICE. SOMETHING FOR EVERYONE. CUSTOMER SEGMENTS RETAIL CORPORATE AFFLUENT INSTITUTIONAL Equities Investment banking Wealth management Institutional equities Mutual funds Corporate debt Advisory Derivatives Credit Mergers and Financing Insurance acquisitions Commodities Currencies Annual Report 2009-10 7 8 India InfolineLimited GROWING RETURNS.* INVESTING INKNOWLEDGEWITH *Numbers calculated areafterminorityinterest Earning pershare 06-07 3.3 06-07 4.0 Revenue 07-08 7.1 (Rs. bn) 07-08 9.3 (Rs.) 08-09 5.1 08-09 8.8 09-10 8.2 09-10 11.2 Dividend pershare 06-07 0.6 06-07 756.2 Profit aftertax 07-08 1.2 (Rs. mn) 07-08 1,598.8 (Rs.) 08-09 2.8 08-09 1,448.2 09-10 3.0 09-10 2,319.9 Book valuepershare 06-07 13.0 06-07 3,250.9 Net worth 07-08 52.2 (Rs. mn) 07-08 14,891.9 (Rs.) 08-09 54.5 08-09 15,447.2 09-10 56.3 09-10 16,049.0 THIS IS WHAT WE ACHIEVED IN 2009-10. Financial Revenues grew EBIDTA grew Profit after tax grew 28.1% 49.6% 60.2% from Rs. 8.8 bn from Rs. 2.9 bn from Rs. 1.4 bn in 2008-09 to in 2008-09 in 2008-09 Rs. 11.2 bn to Rs. 4.4 bn to Rs. 2.3 bn in 2009-10 in 2009-10 in 2009-10 Business Financing book grew to Rs. 16.3 bn more than 450 fund managers, more than 70 corporates as well as world- Increased average daily trading Received an in-principle approval for renowned economists and thought volumes during the year to Rs. 35 securities trading and clearing leaders. billion, up 57% on a year-on year basis. membership from the Singapore Sole book-running lead manager for Exchange for IIFL Securities Pte Ltd, our Corporate Cox & Kings (Rs. 6.1 bn) and Talwalkars Singapore-based subsidiary. Changed Group identity from India (Rs. 744.4 mn) Infoline to IIFL. Customer engagement Scaled up Wealth management Bought out the stake of a private equity Conducted our first Global Investors’ business with assets under advice have partner in the Credit and finance and Conference – ‘Enterprising India’ – in crossed Rs. 50 bn Insurance distribution businesses. Mumbai, drawing the participation of Awards Received BQ1 broker grading from Chairman Nirmal Jain ranked second Rated by AsiaMoney in 2009 among the Awarded at the ‘India’s best market CRISIL, reflecting a superior quality of among ‘India’s Most Valuable CEOs’ by country’s top three brokerages. analysts awards – 2009’ by Zee operations and services. Businessworld in November 2009. Business for being the best in the ‘Oil and Gas’ and ‘Commodities’ sectors and finalists in the ‘Banking’ and ‘IT’ sectors. Annual Report 2009-10 9 IIFL. GLOBAL PRESENCE. New York Dubai Mumbai Colombo Singapore India Infoline Commodities DMCC - Broking member of the Dubai Gold and Commodities Exchange (DGCX) IIFL Securities Pte Ltd - Capital Market Services licence issued by the Monetary Authority of India Infoline Ltd. and subsidiaries Singapore and received in- IIFL Inc. - Regulated by the - Registered with the BSE and the principle approval for the Financial Industry Regulatory NSE for securities trading (cash membership of Singapore Stock Authority (for Broker Dealer) and by and derivatives segment), with Exchange as Trading and the Securities & Exchange MCX/SX and NSE for currency Clearing member Commission (for RIA). It is also a derivatives segment, with MCX, SEBI-registered FII. NCDEX and DGCX for commodities trading and with CDSL and NSDL IIFL Capital Pte Ltd - Exempt as depository participants. It is also Financial Advisor regulated by registered as a Category I merchant the Monetary Authority of banker and as a portfolio manager Singapore with SEBI. IIFL Securities Ceylon (Pvt) Ltd - Received in-principle membership of the Colombo Stock Exchange 10 India Infoline Limited Annual Report 2009-10 11 The IIFL Knowledge Bank INTELLECTUAL DEPOSITS. THE EFFECTIVE MANAGEMENT OF A LIFETIME’S EARNINGS IS CRITICAL, AS THE COMPETENCE REQUIRED TO MANAGE IT IS GENERALLY UNAVAILABLE. FOR VARIOUS REASONS: MULTIPLE ASSET CLASSES. DIVERSE CHOICE. NUMEROUS VENDORS. INFORMATION CLUTTER. INCAPABILITY. PAUCITY OF TIME. CONFUSION. THE PREMIUM ON INTELLIGENT DECISION-MAKING IS BUT OBVIOUS. 12 India Infoline Limited Objective research houses, strengthening model for financial products IIFL aims to enrich client our ‘knowledge’ positioning. wherein we analysed investment opportunities threadbare (pros knowledge, leading to an – Enterprising India: 41 leading and cons), making it easier to informed investment decision. entrepreneurs and thought customise investment products Over the years, we have done leaders profiled and to suit the respective risk precisely so in the following interviewed ways: appetites of clients. – Rural India: Based
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