14.

Products and services:

1. Equity & Derivatives Advisor:

Derivative:
A security whose price is dependent upon or derived from one or more
underlying assets. The derivative itself is merely a contract between two or more
parties. Its value is determined by fluctuations in the underlying asset. The most
common underlying assets include stocks, bonds, commodities, currencies,
interest rates and market indexes. One main use of Derivatives is as a tool for
transferring/reducing risk on a commodity/item.

It is a financial contract with a value linked to the expected future price

movements of the asset it is linked to - such as a share, or a currency.

Say, I go to another electronics shop to buy a TV. After searching around I decide
on a model that costs Rs. 26000/- Though I like the model I am not too sure if this
is the best model for me and at the same time I am predicting the price of TV sets
to come down in one week. Along with this I am also worried that if I do not buy
this TV, somebody else may buy it. Thus, I talk to the salesman to put aside this TV
for two weeks so that I can arrange cash and come for purchase. The salesman in
return asks for a small non refundable deposit which I pay to block the TV in my
name. If the price of the TV falls then I may not opt to buy the same TV but if I
want I can always walk in to the shop after a few days make the payment and
take the TV. This is effectively an "Options" contract, wherein I have the option of
executing it at my will and wish. The shop owner took a non refundable deposit,
which is to compensate for the few days that he may have to hold on to his item
without selling it. Even if I do not go to buy the TV he would have made a meager
profit.

For example, the changing value of a crude oil futures contract depends primarily
on the upward or downward movement of oil prices.
Certain investors, called hedgers, are interested in the underlying instrument.
For example, a baking company might buy wheat futures to help estimate the
cost of producing its bread in the months to come.

Hedging:

One main use of Derivatives is as a tool for transferring/reducing risk on a

commodity/item. Say you are a manufacturer who uses Rice as the ingredient in
your product. You would not want the price or availability of Rice to affect your
production in any way. You can decide to enter into a contract with a Rice farmer
to buy a specified quantity of Rice in a future date say after 3 months at a
specified price. Here you are hedging to reduce your risk of availability. The
farmer would also be avoiding a risk of lack of prospective buyers. By entering
into agreement with you, he has reduced that risk and he has a buyer who would
be buying his product on the agreed date at the agreed price. Of course there are
some external factors that may cause the agreement to become null. For e.g., if
due to a flood all his crops are destroyed, you cannot expect the farmer to honour
the agreement. Similarly if you go bankrupt the farmer would have to find a new
buyer for his products. So Derivatives can act as a tool to mitigate risk but it
cannot help us avoid it altogether. Also this risk reduction will happen only
between the two parties who are entering into the agreement. Any other
manufacturer may end up without rice supplies or any other farmer may end up
without buyers.

EQUITY:
What Does Equity Mean?
1. A stock or any other security representing an ownership interest.

2. On a company's balance sheet, the amount of the funds contributed by the

owners (the stockholders) plus the retained earnings (or losses). Also referred to
as "shareholders' equity".

3. In the context of margin trading, the value of securities in a margin account

minus what has been borrowed from the brokerage.
4. In the context of real estate, the difference between the current market value
of the property and the amount the owner still owes on the mortgage. It is the
amount that the owner would receive after selling a property and paying off the
mortgage.

5. In terms of investment strategies, equity (stocks) is one of the principal asset

classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These
are used in asset allocation planning to structure a desired risk and return profile
for an investor's portfolio. 

2. Wealth mgt service: is a type of financial service that assists clients in

long-term wealth creation. wealth management means not only giving
investment advices, it includes all parts of a person's financial life like the
person’s investments etc…

3. Asset mgt service: Asset is something which you own and can be
converted into cash. This company provides you to select and invest in the
best available assets.

4. Insurance Brokerage: The Company now distributes products of major

insurance companies through its subsidiary India Infoline Insurance Brokers
Ltd. Customers can choose from a wide bouquet of products from several
insurance companies including Max New York Life Insurance, MetLife,
Reliance Life Insurance, Bajaj Allianz Life, Birla Sunlife, Life Insurance
Corporation, Kotak Life Insurance and others.
5. Commodity Trading: IIFL offers commodities trading to its customers to
MCX

(Multi Commodity Exchange -- This is the exchange for trading commodities;

just like the BSE is for trading stocks of companies. You can trade gold, silver
and other precious metals along with agri commodities like cotton, coffee etc.
-- Multi Commodity Exchange (MCX) is an independent commodity exchange
based in India. It was established in 2003 and is based in Mumbai. The
turnover of the exchange for the fiscal year 2009 was US$ 1.24 trillion, and in
terms of contracts traded, it was in 2009 the world's sixth largest commodity
exchange. MCX offers futures trading in bullion, ferrous and non-ferrous
metals, energy, and a number of agricultural commodities (mentha oil,
cardamom, potatoes, palm oil and others)

and the NCDEX

(National Commodities And Derivatives Exchange -- India's largest and most

recognized commodities exchange, which was established in 2003. The
exchange was founded by some of India's leading financial institutions such as
ICICI Bank Limited, the National Stock Exchange of India and the National Bank
for Agricultural and Rural Development, among others. -- Trading is done on
45 commodities that are integral to India's economy. These include gold, silver,
Brent Crude oil, and rice, along with other agricultural products and base
metals.). They actually provide the complete info to their customers about the
behavioral patterns of these markets. Our customers are ideally positioned to
make informed investment decisions with a high probability of success. )
It’s a member of MCX and NCDX.
6. Investment banking: Includes business entities dealing with creation of
capital for other companies. They also advise companies on matters related
to the issue and placement of stock and to manage all kinds of investment
banking transactions.

7. Credit & finance: IIFL offers a wide array of secured loan products.
Currently, secured loans include mortgage loans, margin funding, loans
against shares.. These comprise 94% of the loan book. The Company has
discontinued its unsecured products.

15.
Contributions to the society:
Not only in the professional front, II also focuses on the
betterment of the society and keeping this in mind, they have setup
the IIFL foundation, which will work for the support and upliftment of the
underprivileged sections of society.

Some of the activities undertaken by the IIFL Foundation:

Barsana eye camp: over 2,600 people underwent eye tests and over
1,800 dental procedures were done.

Pandharpur medical camp: Free medical treatment was given to

approximately 49,815 pilgrims who had come to Pandharpur. The pilgrims
were treated for fever, injuries, fractures, etc during the camp.

Blood donation drive: IIFL regularly organizes blood donation drives via
camps at its various locations across India. Over 800 employees have
participated in these camps.
Studying the LOGO:

If we see the logo of India Infoline, there are clearly defined boundaries
for each and every triangle. In the same way the company clearly
studies and analyzes the market and gives advices on what is good and
what is bad which makes it a good advisor to companies as well as
investors.

Here in this logo the triangles r connected 2gether as a network..

Having a good network is very important in this financial world to trade
in stock exchanges… The company believes in this concept and does
this. 

And the logo appears confusing at first... But when u observe it clearly n
deeply, v can understand the exact pattern. In the same way while
analyzing the market or a problem, India Infoline bifurcates and
analyzes it layer by layer and reaches the root of the problem so that it
can give apt and correct advice to its clients…

• India Infoline was the 1st corporate in India to get the agency license in early 2001