SUMMER TRAINING REPORT

ON

Probulls Capital
FOR

Summer Internship Program

BY

PRANAV KUMAR

ROLL NO- 20461

In partial fulfillment for the award of the degree

Post Graduate Diploma in Management

Batch 2020- 2021

Specialization: Finance and Business Analytics

New Delhi Institute of Management

50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail :placement@ndimdelhi.org
Website : www.ndimdelhi.org

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 DECLARATION

I Pranav Kumar student of New Delhi Institute of Management, Batch (2020-2022) declare
that every part of the Project Report submitted by me is original.

I was in regular contact with my faculty guide and contacted her for discussing the project.

Date of project submission:

CERTIFICATE OF AUTHENTICITY

Faculty Mentor’s Comments:

<<Signature of Faculty guide>>

Prof. Damanjit Virk

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Operational Review

The Company maintained 2.8% share of daily cash turnover and a 1.1% share in total
turnover of stock exchanges. The institutional broking franchisee remains among one of the
top franchisee on the street, comprising an 80-member team with offices in Mumbai, New
York and London. The Company has over 720 institutional (domestic and foreign) customers.
It provides insightful research by covering over 250 stocks, encapsulating 80% of the India's
market capitalization. The investment banking business reported very strong performance in
the last fiscal year. It completed 29 transactions across various products during the year
including 9 IPOS, 7 QIPS, 9 private equity and 1 OFS transaction. This is in addition to a few
corporate and debt advisory mandates which were completed successfully during the year.
The outlook for fiscal 2022 remains strong with an impressive pipeline of transactions which
are at various stages of execution.

The Company has a keen focus on distribution of retail financial products such as insurance
and mutual funds. Mutual Funds and insurance gained good traction during the year.
Insurance premiums stood at 1,463 million, recorded a 42% YOY growth in FY 2020-21,
driven mainly by health insurance sales and Mutual Fund AUM stood at 51.5 billion, up 82%
on YoY basis. Mutual Fund and insurance provide good long-term growth prospect. The
Company focusses on sale of insurance products through online channels and offering
through branch and call centres.

The Company is also engaged in providing office and related infrastructure and facility
services catering mainly to group companies and outside corporates through its subsidiary
IIFL Facilities Services Limited. It also provides property advisory and consultancy services.

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Financial Performance

The Company posted a total income of 8,676 million during the FY 2020-21, while the profit
after tax (TCI) stood at R 2,210 million.

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Financial Year: 2020- 2021

Consolidated Results

First Quarter Result- Quarter ended June 20, 2020

Second Quarter Result- Quarter and half year ended September 30, 2020

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Third Quarter Result- Quarter and nine months ended December 31, 2020

Fourth Quarter Result- Quarter and year ended March 31, 2021

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Income
Revenue from operations
(Amount is Rs.)

The Company's revenue from operations mainly includes revenue from investment banking
income and Brokerage and Commission from equity, commodities and currency broking, and
from other services such as depository services, clearing services, insurance broking,
distribution of third-party financial products and rental income. Interest income increased
during the year to 748 million from 635 million during FY 2019-20.

Rental income has reduced by 13% due to sale of office property by IIFL Facilities Services
Limited, a wholly-owned subsidiary of Company Fee and commission income has increased
mainly on account of increase in investment banking income and retail broking business. The
Company has witnessed fall in income from distribution of financial products due to lower
share of high yielding products as compared to FY 2019-20.

Other Income
Other income mainly consists of income earned on investments interest income on inter
corporate deposits placed and income tax refunds; gain due to change in fair value of
investments

Expenses
Finance costs
Finance costs include interest on borrowings and other finance expenses such as bank
guarantee commission franking charges for borrowings through commercial papers, etc.
Borrowings were lower during the year due to utilization of own funds within the group
resulting into lower finance cost as compared to previous year.

Fees and commission expense

The Company's fees and commission expense include sub brokerage charges, and other
related expenses. The fee and commission expenses for FY 2020-21 stood at 2 1,177 million,
increased by 42% YOY, mainly due to higher pay outs on account of increase in revenues
earned through franchisee/ sub-broker channels

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Employee benefits expense
Employee benefit expenses include salaries and wages, contribution to provident and other
funds, share-based payments, staff welfare expenses, leave encashment and gratuity. The
employee cost for FY 2020-21 stood at 2,1131 million as against 2.212.5 million in FY 2019-
20.

Depreciation, amortization and impairment

Depreciation, amortization and impairment expenses include depreciation of property, plant
and equipment, and amortization of intangible assets. Depreciation and amortization for FY
2020-21 remains at 2458.8 million it has reduced mainly due to sale of office property by
IIFL Facilities Services Limited, a wholly owned subsidiary of the Company.

Other Expenses
Other expenses primarily include advertisement expense, communication expense, legal and
professional charges, marketing and commission expenses, office expenses, electricity
charges, rates and taxes, software charges and travelling and conveyance expenses. Other
experises for FY 2020-21 remain at 1,585,4 million. Other expenses for the year were higher
as compared to previous year due to increase in technology expenditure for automation of
various processes, advertisement and outsourced calling service for increasing customer
acquisition pace.

Liquidity and Capital Resources

Historically, the Company has maintained liquidity for its business operations primarily out
of the cash generated from operations, bank borrowings and issuance of equity shares. As of
March 31, 2021, it had cash, bank balances and fixed deposit of 16,775.4 million. Based on
the current level of operations and expenditures, the Company believes that its current
working capital, together with cash flows from operating activities, will be adequate to meet
its anticipated cash requirements for capital expenditure and working capital

Buy Back Update

During the quarter, the Company has completed the buyback of its equity shares. Total
amount distributed for buy back was 1,057 million (including tax) and total shares bought
back were 17 million.

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Disclosure of accounting treatment
There was no deviation in following the treatments prescribed in any of Accounting
Standards (AS) in the preparation of the financial statements of your Company.

Segment- wise Performance

Revenue from the capital market activities increased from Rs. 6,361.3 million for the year
ended March 31, 2020 to Rs. 7,507.1 million for the year ended March 31, 2021, an increase
of 18% y-o-y. This was mainly due to increase in investment banking income and retail
broking income. Also the Company witnessed fall in income from distribution of financial
products due to lower share of high-yielding products as compared to FY 2019-20.

Revenue from the insurance broking segment is almost steady on YoY basis. The results for
the segment increased mainly due to optimization of costs.

Revenue from the facilities and ancillary segment reduced from 1,597.5 million for the year
ended March 31, 2020 to 1,3521 million for the year ended March 31, 2021, a decrease of
15% YoY due to lower rental income on sale of property by IIFL Facilities Services Limited.
The results for this segment have decreased substantially from 1,111.7 million to 278.5
million mainly due to exceptional income of Rs. 1,017 million on sale of property in FY
2019-20,

Key Financial Ratios

Details of significant changes in key financial ratios (i.e. change of 25% or more as compared
to the immediately previous financial year).

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Explanation:
1. Debt/Equity Ratio: Debt to equity ratio decreased from 0.52 in FY20 to 0.30 in FY 2020-
21 mainly due to reduced borrowings from 4,588 million in FY 2019-20 to 2,916 million in
FY 2020-21 and higher shareholders' equity from 8,797 million in FY 2019-20 to 9,676
million in FY 2020-21.
2. Return on Net Worth: RONW has decreased mainly on account of lower total
comprehensive income of * 2,210 million in FY 2020-21 as compared to 2,321 million in FY
2019-20. This is mainly due to the exceptional income of 1,017 million booked in FY 2019-
20.
3. Interest Coverage Ratio: Interest coverage ratio increased mainly due to lower borrowing
cost to 496 million in FY 2020-21 from 1,021 million in FY 2019-20.

P&L- Revenue from operations, notes to account- the company generated positive cashflows.

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