Nothing is wrong with undertaking risky investments as long as the investor understands the possible consequences.

Online trading is the service offered on the internet for purchase and sales of shares. In the real world we place orders on to our stock broker either verbally or in a written form. In online trading we access a stock brokers website through internet enabled PC and place orders through the brokers internet based trading engine. These orders are routed to the stock exchange without manual intervention and executed on their own in the matter of a few seconds. From the past few years the volume of the internet trading has increased largely. Industry Profile One of the oldest trading industries that have been around even before the establishment of BSE is the Indian Broking Industry. Post liberalization there have been number of changes, despite this the stock broking industry was at its pace and retained its sustainable growth. Post major reforms initiative in early 2000s brokerage industry in India is experiencing rapid growth and diversity. At present apart of brokerage business industry is also offering wide range of financial services. These developments have resulted in huge spurt in business and also growing market share of the large sized brokerage houses has led to surge in enterprise value. In the year 2010 IPOs of large firms (Motilal Oswal, Suresh Rathi, and Edelweiss) received huge response. At the same time global and private equity firms have taken stake in brokerage firms. In India there are about 45 equity brokerage houses that are at present listed in the stock exchanges. Majority of the broking firms entered the business post 1990. A majority of members have memberships in more than one stock exchange and across equities, equity derivatives and commodities futures in domestic and International stock exchange. On the back of growing equity culture broking activity is spreading in Tier II and Tier III cities in India. Deepening financial system and economic growth has provided growth and expansion opportunities to broking firms. Access to public equity markets and growing international investors interest has enabled them to raise resources.

INDIAN STOCK MARKETS AND EXCHANGES There are 23 recognized stock exchanges in India, including the Over the Counter Exchange of India (OTCEI) for small and new companies and the National Stock Exchange (NSE) which was set up as a model exchange to provide nation-wide services to investors. BOMBAY STOCK EXCHANGE (BSE) Bombay stock exchange is the oldest stock exchange of India For the premier Stock Exchange that pioneered the stock broking activity in India, 128 years of experience seems to be a proud milestone. A lot has changed since 1875 when 318 persons became members of what today is called "The Stock Exchange, Mumbai" by paying a princely amount of Re1. Since then, the country's capital markets have passed through both good and bad periods. The journey in the 20th century has not been an easy one. Till the decade of eighties, there was no scale to measure the ups and downs in the Indian stock market. The Stock Exchange, Mumbai (BSE) in 1986 came out with a stock index that subsequently became the barometer of the Indian stock market. SENSEX SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. First compiled in 1986, SENSEX is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. The base year of SENSEX is 1978-79 and the base value is 100. The index is widely reported in both domestic and international markets through print as well as electronic media. The index is calculated on the Free-float Market Capitalization methodology. The "Free-float Market Capitalization" methodology of index construction is regarded as an industry best practice globally. All major index providers like NIKKEI, NASDAQ and DOW JONES use the free float methodology. The growth of equity markets in India has been phenomenal in the decade gone by. Right from early nineties the stock market witnessed heightened activity in terms of various bull and bear runs. The SENSEX captured all these events in the most judicial manner. One can identify the booms and busts of the Indian stock market through SENSEX.

NATIONAL STOCK EXCHANGE

(NSE)

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. STOCK TRADING Traditionally stock trading is done through stock brokers, personally or through telephones. As number of people trading in stock market increase enormously in last few years, some issues like location constrains, busy phone lines, miss communication etc start growing in stock broker offices. Information technology (Stock Market Software) helps stock brokers in solving these problems with Online Stock Trading. Online Stock Market Trading is an internet based stock trading facility. Investor can trade shares through a website without any manual intervention from Stock Broker. In this case these Online Stock Trading companies are stock broker for the investor. They are registered with one or more Stock Exchanges. Mostly Online Trading Websites in India trades in BSE and NSE. There are two different type of trading environments available for online equity trading. Installable software based Stock Trading Terminals These trading environments require software to be installed on investors computer. This software is provided by the stock broker. This softwares require high speed internet connection. These kind of trading terminals are used by high volume intraday equity traders.

Web (Internet) based trading application These kind of trading environment doesn't require any additional software installation. They are like other internet websites which investor can access from around the world through normal internet connection.

Company Profile Suresh Rathi incorporated in 1981. It is among the leading integrated financial services group in the country today. Suresh Rathi is a diversified financial services group of India offering a multitude of investment options. Each of its subsidiaries is engaged in a wide spectrum of financial products and services targeted at retail, high-net worth individuals, corporate and institutional clients. The services offered by the group include share broking, financing loans against shares, IPO financing, distribution of Mutual funds, insurance broking, commodity broking, wealth management, advisory services, private equity, merchant banking and trading in arts and artifacts. The major revenue drivers for the company are its retail equity broking arm Suresh Rathi Securities and Suresh Rathi Finvest, which finances loans against shares. Suresh Rathi (company) is an integrated financial services institution offering a wide range of financial products and services to retail investors, high net worth individuals and corporate and institutional clients including equity and commodity broking, online trading, wealth advisory services, investment banking and insurance broking. SRSPL is a member of the National Stock Exchange of India, Bombay Stock Exchange of India, Depository Participant with National Securities Depository Limited and Central Depository Services (I) Limited, and SEBI approved Portfolio Manager. Suresh Rathi has been constantly innovating in terms of product and services and to offer such incisive services to specific user segments it has also started the NRI, FII, HNI and Corporate Servicing groups. These groups take all the portfolio investment decisions depending upon a clients risk / return parameter. Suresh Rathi has a very credible Research and Analysis division, which not only caters to the need of our Institutional clientele, but also gives their valuable inputs to investment dealers. Suresh Rathi is also providing inhouse Depository services to its clientele and is one of the leading depository service providers in the country. THE COMPETITORS The existing major players in the stock broking industry besides Suresh Rathi Securities ltd. are: 1. ICICIDirect 2. India Bulls 3. Share Khan 4. India Infoline 5. Kotak 6. Reliance money

METHODOLOGY The study aims at performing financial statement analysis using various tools and techniques of Management Accounting. The tools, techniques and methods adopted to analyze and compare the financial statements of the most traded scrips at Suresh Rathi Securities Private Limited. OBJECTIVES OF THE STUDY To study the financial performance of the most traded scrips at Suresh Rathi and compare over the years by using selective ratios in the area of liquidity, solvency, efficiency and profitability. 1. Understand the weak and strength areas of Suresh Rathi performance and reasons for the same. 2. To compare and analyze the financial statements of the most traded scrips at SRSPL. 3. To compare the financial performance of the companies. 4. To study the comparison of the financial statements for four years by using the ratios. 5. To analyze the financial strength of the companies. 6. To analyze the profitability of the companies.

SCOPE OF THE STUDY The study confines itself in analyzing the financial statements as published by companies. The study was done to ascertain and compare the financial status of the firms. The field of financial analysis and interpretation comprises fundamental analysis. The study was made to analyze the financial performance with reference financial statements like balance sheet, profit and loss account and also with the help of tables, graphs, ratios providing suggestions for improving the methods and procedures followed by the company. SOURCES OF DATA Primary data: The study is based on questionnaire as primary data. It analyses the investing trend of investors in the city of Surat. Secondary data: The study is based on secondary data, which is available in the Annual Reports of the companies. The main data used for analysis and interpretation of financial statements is audited balance sheets and profit and loss account.

DESCRIPTIVE RESEARCH DESIGN

The research design adopted in this study is DESCRIPTIVE RESEARCH DESIGN. A descriptive research design is the one which is description of the state of affairs as it exists at present. It includes survey and fact finding enquiries of different kinds. The researcher has no control over the variables. The researcher used this research design to find out the respondents attitude and opinion about ULIP policies offered. SAMPLING DESIGN A sample design is a definite plan for obtaining a sample from a given population. It refers to the techniques or procedures the researcher would adopt in selecting items for the sample. CONVENIENCE SAMPLING The researcher adopted convenience sampling. It is the non probability sampling is that sampling procedures does not any basis for estimating the probability that each item in the population has of included in the sample. The researcher selects the people according to their convenient. SAMPLE SIZE A sample of 50 people was taken for the survey. The required data collected through questionnaire. The information required for our project was collected mainly from the primary sources and even from secondary sources. The primary source consists of the data analyzed from questionnaire and interaction with the user at that time only. And internet is used as secondary source. SECONDARY ANALYSIS & INTERPRETATION This is done on the basis of information provided by Suresh Rathi Securities Private Limited. The secondary analysis is done for the five most traded scrips at the organization. The information is on observational basis i.e. the total number of scrips traded at the organization daily. On observational basis of a week it was seen that around 1546293 stocks are traded weekly at Suresh Rathi Securities Private Limited. Out of these the maximum traded stocks are that of Axis Bank which is 463888 shares i.e. 30% of the total daily stocks. ICICI Bank follows Axis bank with 20% of the stocks traded and then follows Bharti Airtel, SBI and Tata industries respectively. Accordingly, various ratio analysis has been done of the companies so forth where people invest in shares on maximum basis. Ratio analysis is a technique of analysis and interpretation of financial statements. Ratios provide clues to the financial position of a concern. They are pointers or indicators of financial strength, soundness, position or weakness of an enterprise. It is the process of establishing and interpreting various ratios for helping in making certain decisions. It is a means of better understanding of financial strengths and weaknesses of companies. One can draw conclusions about the exact financial position of a concern with the help of ratios.

 The current ratio of March 2011 of ICICI Bank and Tata Industries is satisfactory as it is almost equal to industry standards. Thus it will be able to meet its short term obligations The ratio for the companies is significantly higher than the desired level showing opportunity lost for earning greater revenues. The ratio is significantly higher in case of Axis Bank the main reason for which is poor management of receivables and payables. SBI has a highest degree of debt in its capital structure. Hence it has to be more careful and ensure that the returns generated are more than the cost of debt otherwise it will negatively impact the financial health of the company. The proprietary ratio for all the companies is varied. In SBI and Axis Bank the share of the shareholders in the total assets of the companies is relatively low. Higher the proprietary ratio the stronger the financial position of the companies is. The fixed asset to long term funds ratio of SBI is higher than that of other companies in all the years. This ratio indicates the safety of the funds in case of liquidation. Higher the ratio the better it is. The gross profit ratio of ICICI is slightly better than that of others as it has risen from 12.99% to 21.06% in the four years. The efficiency with which the companies produce their product is nearly the same. The return on shareholders investment of Axis Bank is far better than that of other companies. This makes the shares of Axis Bank much more attractive whereas the returns on the shareholders funds of ICICI are not adequate. The earnings per share of SBI are more than triple of ICICI, Bharti and Tata. This makes investing in the shares of SBI much more attractive than the shares of others. The return on capital employed is better for Bharti Airtel compared to other companies. Thus Bharti Airtel has more percentage profits to meet its finance charges as well as pay dividends to its shareholders.

Conclusions and Recommendations On the basis of these findings and analysis, It has can be surely said that in stock broking industry, differentiation can become the key to higher revenues. Better service, straight through processing(STP), immediate execution, portfolio services, investment advisors and telephone call centers or branch investment offices are needed to retain customers and to increase the revenue base. As more number of people will get comfortable with internet/technology, broking (especially online broking) will have a completely new meaning with more fringes coming into the picture and more firms will offer umbrella services to their clients. Thus more of strategies should be undertaken Providing better plans and schemes than our competitors like Sharekhan, Indiabulls, and ICICI direct are providing in terms of brokerage and subscription. Formulation of more corporate schemes for employees of organizations falling under Suresh Rathis corporate category. Drafting a website which is both professional and user friendly Associating Suresh Rathi with Ranbaxy to make it a power brand. Taking Suresh Rathi from the brand recognition stage to brand insistence stage. Suresh Rathi should make its brokerage structure more flexible to give a good competition to the investors Some more collaboration with international firms and increasing its outlets not only in India but also outside the world Also, to attract the NRIs so, that to increase its share in the stock exchanges as they provide the largest shares in terms of the investment.