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Sun Securities Ltd
Sunil D. Tiwari
Sun Financial Services Ltd. (SFSL) is a well-diversified, financial services company focused on wealth creation such as institutional, corporate and retail customers. We offer diversified Products and services like equity broking, commodity broking, investment banking, wealth management and portfolio management.
SIP Centre ICFAI National College, Mumbai Final Report MBA (2008-10)
By: SUNIL D. TIWARI Enrollment No: 8NBMM017 INC (MIRA ROAD) Submitted To: Raghu kumari (Faculty Guide) Jagdish Gupta (Company guide)
INC Center Enrollment Number Name Of Student Program Name Of Faculty Guide Name of the Company Address of The Comn M 8 S M R M 2nd N Tele – Fax I N U B A O F R B N A G T
O 1 D
M M 0 I L
H I O O
U L O R
K U A L R T
M A O Q E
R S E M
I W N A S 4 L M 0 E 0 L N 0 T T 0 D I 1 O
Name Of Company Guide
A G N I
G N A
U P G E
Designation Of Company U Guide Contact details
Phone Off Phone mob Fax Off Email Sunil.firstname.lastname@example.org 9022516402
ACKNOWLEDGEMENT & DECLARATION
I here by take this opportunity to thank all those people including my friends and colleagues who have helped me for the successful completion of this project. I express gratitude towards my project guide Prof. Raghukumari and Jagdish Gupta for the continuous support and guidance. She has rendered for the successful completion of this project. I express my gratitude’s towards my parents and brother for their encouraging support, incandescent sprit and endurance towards the making of this project. In the end, special thanks to all members who are directly or indirectly associated with the project.
SUNIL DWARIKANATH TIWARI
The objective of practical training at MBA level is to give the student an experience of real issues involved in the business world. Practical knowledge also helps us to identify how the theory’s can be applied in business life. In this report I have put in best of the information about my company “SUN SECURITIES LTD” on a common platform, analyze their working and performance, and highlight the companies profile together with its customers and competitors.
Table of Contents
Executive Summary Company Direction Objectives Management Team Product Strategy Mission Statement
Marketing Plan Sales Strategy Positioning Pricing Promotion Product or services Financial plan Financial statement Operating(or Income) statement
3. 4. 5. 6.
We are here to provide quality financial services to our clients and provide value for there money. We are here to help to those people who are looking for the path to grow their money with less risk and high return values. After expansion of the firm the company will begun to satisfy huge clients with its quality services. A reliable way to locate opportunities is one of the needs that a large percentage of our clients have asked for. We will strive hard to fulfill our customer’s requirements through a customized route. Our Research and Development team is also working on different ways to come up with new products and to enhance our current Product Lines through value addition. We are continually working for new and improved Lines for the near future for our existing clients as well as tapping new one for the same. We will make the Best out of us.
Since long time, people are looking to grow their money as fast as possible. Our company will facilitate those customers. This facilitation can be either research or technical support we will ensure customers satisfaction. The legal form of Business Plan is the best way to do business for the founders of this business and the customers who will join the company indirectly .i.e. main focus should be on stake holders. Our business headquarters is located at PO Box 401202, Ambadi road, vasai (w), Thane-401202.
Core Purpose & Values
Core Purpose:-To be a well respected and preferred global financial
service organization enabling wealth creation for all our customers.
Integrity: A company honoring commitment with highest ethical
and business practices.
Team Work: Attaining goals collectively and collaboratively Passion & Attitude: High energy and self motivated with a “Do
It” attitude and entrepreneurial spirit.
Excellence in Execution: Time bound results within the
framework of the company’s value system.
Based on this we expect our projected revenues for the current fiscal year and our projected annual growth and also we feel that within 5 years Business Plan will be in a suitable position for future company growth. Our core purpose and values, at this time, is to propel the company into a prominent market position and to capture largest market shares
Our management team consists of 3 men and women. Sunil Tiwari, President and CEO Chandan singh, Vice President, Finance Amit Shah, Vice President, Marketing Their backgrounds consist of more than 10 years of experience. Our Vice President of Marketing has over 6 years of marketing experience with leadings marketing companies. Our CEO and advisory staff have a total of 10 years of financial market. Our chief financial officer has more than 10 years of accounting, administrative, merger and acquisition and banking experience with other financial institutions. Amit Shah sells our financial products such as equity broking, commodity broking, investment banking, wealth management and portfolio management. Miss Arwah is an HR Head who manages our human resource and recruitment department.
We Offer Hugh Basket of different products such as: Wealth management Equity broking, Commodity broking, Investment banking, Portfolio management
Wealth Management: Financial planning for individual, family and
business wealth creation and management needs.
Broking & Distribution services:-
Equity (cash and derivatives) Commodity Broking Portfolio Management Services Distribution of financial products Financing IPO distribution We offer these services through our different branches, Business Partner locations, through internet and mobile channels. We also have strategic tie-ups
with State Bank of India and IDBI Bank and many more banks so as to offer our online trading platform to the customers.
Commodity Broking: Our Commodities Broker (P) Ltd is fully owned
subsidiary; we provide commodity trading facilities and related products and services on MCX and NCDEX. Besides access to the best of research in the form of Daily Fundamentals & Technical Reports on highly traded commodities, clients also get access to exclusive Customized Trading Advice on both the trading platforms. We offer these services through branches, Business Partner locations, the internet and mobile channels.
Portfolio Management Services: Our Portfolio Management Services offer
a range of investments solutions through discretionary services. We help to create wealth for their customers through Portfolio Management Services. Knowledge of the markets together with understanding of customers and their risk profiles our research team help customer by designing a range of portfolio offerings
Investment Banking: We offer financial advisory services relating to mergers
and acquisitions (domestic and cross-border), divestitures, restructurings and spin-offs through Our Investment Advisors Private Ltd. also offer capital raising and other investment banking services such as the management of public offerings, private placements (including qualified institutional placements), rights issues, share buybacks, open offers/delisting and syndication of debt and equity.
Sun Securities Ltd. enables you to enhance, promote, organize all aspects and make your money grow. Our services offer you a chance to multiply your money, help you to gain and control over it for a longer period of time. We help you to handle difficult life situations in a positive manner. We can also show you how our Business Opportunity can be yours. Take Control of Your money. Sales Strategy: We basically deal into Financial Service Products. As such, we are targeting those market segments or those individual who are working or who have sufficient funds for trading i.e. we are focusing on high net worth individuals. Because of the special market characteristics, our sales strategy includes marketing people that are really ready to get started. Following are the details mentioned related to market position, pricing, place and promotion. We plan to review time to time to ensure that potential profits are not being lost.
We will provide research to our customer‘s through our management team. Its unique advantages were everything you need to know to get started in the right way. We can reposition our competitors by ensuring that we have the best products and we are over delivering on everything that we market. The resulting selling basis for our product is our product is number 1 in this market.
The prices for our products are determined first and foremost by what our customers are willing to pay for what we are offering. It is important to know that competitive pricing is essential to our market profile. Compared to others, the prices that we are charging customer are willing to pay because of our research report and our positional, technical calls which are excellent in the market. We ensure that our customers would willingly pay the brokerage respectively. We ensure that we have the best product over delivering on everything that we market. For the account opening competitors have also different charges these account opening charges are as follows: Company Prod. Name A/c opening Min. Brok. charges Commitment (Rs) (Rs) 500 No nil No nil No 500 No 500 No Web 750 Application >30,000 p.m Web & Application 750 No Web 750 Application 1500 1500 Web 750 Web 500 No Application 1500 500 Application 1500 500 Web Web& Application 400 1000 No No Prod. Type
Gateway Value Privilege Circle Freeway High Trade & Assist
ICICI Direct India bulls Inventure
Smart Invest Smart online Smart Trade Easy Value Investing Freedom Easy Easy investment
Competitors of Sun Securities Ltd have different brokerage these are as follows: ICICI Direct Multiple India Bulls Multiple Sunil tiwari securities ltd Multiple Kotak Multiple MOSL Multiple
Platform Features: Call& Trade News Alerts Technical Tools Research Reports SMS Margin Funding Available To Brokerage Delivery Intraday Derivatives
Y Y Y Y Y(chargable) 16-18% Selective
Y Y Y Y (Rs.100 p.m) Y 13-21% All
Y Y Y Y Free 10-12% Selective
Y Y Y Y
Y Y Y Y
Y(chargabl free e) 13-18% 13-16% ? Selective
0.75% 0.10% 0.10%
0.50% 0.10% 0.10%
0.15% 0.005% 0.05%
0.59% 0.10% 0.10%
0.40% 0.15% 0.10%
We are providing Services which are consumed simultaneously, which implies that services are sold directly to the customer. Headquarter of Sun Securities Ltd is at Mumbai and as of 2013, we will have network spread across 432 cities and towns. We are also in discussion with our business associates to spread our branches across the India.
Promotion: Promotion of Sun Securities Ltd is done by mass and media. Our
employees and agents are doing different kinds of promotional activities may be in residential complex or in corporate areas to tap maximum clients in bulk at one spot.
Media: SSL uses these types of media functions so as to create awareness
among people who need good advises and better services. These are some types which SSL uses quit often:
2. Newspapers 3. Hoardings 4. Pamphlet distribution.
Reasons for undertaking sales forecasts
Businesses are forced to look well ahead in order to plan their investments, launch new products, and decide when to close or withdraw products and so on. The sales forecasting process is a critical one for most businesses. Key decisions that are derived from a sales forecast include: - Employment levels required - Promotional mix - Investment in production capacity Types of forecasting There are two major types of forecasting, which can be broadly described as macro and micro: Macro forecasting is concerned with forecasting markets in total. This is about determining the existing level of Market Demand and considering what will happen to market demand in the future. Micro forecasting is concerned with detailed unit sales forecasts. This is about determining a product’s market share in a particular industry and considering what will happen to that market share in the future. Sales Forecasting is the process of estimating what your business’s sales are going to be in the future. Sales forecasting is an integral part of business management. Without a solid idea of what your future sales are going to be, you can’t manage your inventory or your cash flow or plan for growth. The purpose of sales forecasting is to provide information that you can use to make intelligent business decisions. Sales forecasting for an established business is easier than sales forecasting for a new business; the established business already has a sales forecast baseline of past sales. A business’s sales revenues from the same month in a previous year,
combined with knowledge of general economic and industry trends, work well for predicting a business’s sales in a particular future month. Sales forecasting for a new business is more problematical as there is no baseline of past sales. The process of preparing a sales forecast for a new business involves researching your target market, your trading area and your competition and analyzing your research to guesstimate your future sales.
Product or services
We are offering 3 types of product they are:
1. Easy(Web Based) 2. Easy Investment(Web And Application) 3. Free Trade(Application)
Services Our Advise based online trading terminal has following Facilities: Live intra day / positional / and delivery calls on your terminal helps you take informed decision. Multiple market watch, with NSE / BSE cash and derivatives on single screen Execution through Exe/Web based trading platform. Online transfer of funds through multiple banks. Technical Charts: Intra day / Daily / Weekly / Monthly / Quarterly / Yearly View live NSE cash / derivatives and BSE cash on the same screen. Access to latest research reports, daily market diary, pivot points and Derivatives diary. Qualified advisor helps you evaluate & restructure your portfolio continuously. You can get a detailed perspective on the markets, sectors & Individual companies from your advisor. (Selected customers) Dealer / Advisor support during trading hours. Easy: High volume trader Discount Brokerage Intraday & positional calls Min. Criteria – 5 lakhs of Securities / Cash
Free Trade: For fresher clients More analytical charts, Graphs. Research report and analysis both on same platform Easy Investment: Retail Clients Advise through RM Supported by Research reports
Brokerage as per slab Min. Criteria – 3 lakhs of cash / 6 lakhs of securities Some of the Services our company provides after sales are as follows:
Ideally for Delivery / Intra day / F&O Traders.
Daily SMS alerts on each segment depending on Market conditions. Dedicated Relationship Manager. Get Intra-day flash calls, pop ups, positional calls, technical recommendation on trading screen. Charts accessibility through Software. Personal RM meet on monthly basis to discuss the performance on the Portfolio.
Target audience: The target customers of our business are those people who are
willing to grow their money and want better services. We are targeting high individual clients. There is standard set by company for the different category of business. Demographic profile of the customer is as follow: Age: Age is not criteria or any barrier for our business but for signing the contract the person should be at least to the age of 18 or more. Gender: The customer of our can be of any gender it is not specific that the customer should be male or female. Location: Location of the customer is does not matter all as we have our sales person who can collect those contract from any location therefore location does not matter in our company.
Competition In broking sector there is instance competition is with Motilal oswal securities ltd, ICICI direct.com, Kotak , Reliance money and India infoline. These companies are their in the market form long time so I have tough competition form these companies. Companies like Kotak and motilal oswal securities ltd are the brand names and they are providing facilities that are very rare in the market. Kotak and motilal oswal provide very good research report so we have to maintain our standards.
Benefits of having a Sun Securities ltd (SSL) is:
1. It Direct Access to all financial products.
It’s Convenient - Customer can access through the Internet, Transaction Kiosks and over the phone.
3. Its Safe Accounts are safe guarded with a unique security number. This number works as a dynamic password to keep your account extra safe.
Will provide you a 3...in...l facility SSL provides Banking, Trading and Demat Account
Following are the elements of the financial plan of the business through which the requirement of the fund is done for the purpose of running the business and they are as follows: 1. COST OF THE PROJECT 2. MEANS OF FINANCE 3. ESTIMATE OF SALES & PRODUCTION 4. WORKING CAPITAL REQUIREMENT 5. BREAK EVEN POINT 6. CASH FLOW STATEMENT 7. PROJECTED BALANCE SHEET These are the elements of the financial plan without these elements we cannot do our financial planning and all these elements are explained below are as follows:
2) MEANS OF FINANCE SHARE CAPITAL: TERM LOANS: DEBENTURES: DEFERRED EXPENDITURE: SUBSIDY
These are the means of finance to firm who want to collect fund to run the business. As Fame is established firm in the market which is starting its business in the field of yellow pages for that firm is issuing its share in the market to collect the funds from the public and also trying to collect the fund through the mode of term loans from the banks by showing the business plan to the banks.
3) COST OF PRODUCTION Cost of production plays a very important role in manufacturing business because in manufacturing firm most of the cost of the production is related to its product and for making the product some of the costs are explained below:
MATERIAL COST: Materials are the principal substances that go into the production process and are transformed into finished goods. Material cost covers around the 80% of the total cost of the production which is most important in manufacturing any product. The raw material which is required for our business is paper mostly because we require the papers for the publication of the yellow pages. LABOUR COST: Labor is the human, physical and mental effort that goes into the production of a product. FACTORY OVERHEAD COST: Factory overhead cost are those cost which are incurred in the factory while converting the raw material into the finished goods some of the factory overheads are depreciation on factory building, depreciation on machinery, factory rent, indirect wages etc are the factory overhead cost. 4) WORKING CAPITAL REQUIREMENT It measures a company's efficiency and its short-term financial health. The working capital ratio is calculated as: Working capital= Current assets – Current liabilities
Positive working capital means that the company is able to pay off its shortterm liabilities. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets (cash, accounts receivable and inventory).
Even in a difficult economic environment, Our Company has continued to drive sales and keep operating expenses to a minimum. So there is no need to wary about working capital requirement to the company because company has a sufficient fund to take its working capital requirement.
If we see the initial investment of SSL will be around 5.0 crore. As in the Financial sector the investment is very high, even the stock turnover ratio will be on days or even single (1 day).
Below is the detail information of initial cost of SSL(SUN SECURUITES LTD)
Particular Patent Office Premises Server Furniture Computer and accessories Software Stationary Other Preliminary expenses Total
Amt (In Rs.) 100,000 20,000,000 20,000,000 5,000,000 600,000 36,50,00 0 1,50,00 0 500,000 5,000,0000
1) NPV Initial investment NET CASH INFLOWS(IN CRORES) 1 2 3 4 0.80 1.60 2.00 3.50 RS.5 (In Crores) (Net Cash outflow) PRESENT VALUE(IN CRORES) 0.7272 1.3216 1.502 2.39 5.9408
DISCOUNTING@10% 0.909 0.826 0.751 0.683
(-5)+(5.9408) RS. 0.9408 (RS.IN CRORES)
ie.maximization of shareholders wealth.
HENCE WILL ACCEPT THE PROJECT.
PAY BACK PERIOD NET CASH INFLOWS(IN CRORES) 1 2 3 4 0.80 1.60 2.00 3.50
The payback period of the project will be equal to 3yrs and 1 months because the sum of the sum of first 3years and 1 months is equal to the initial investments of Rs.5(IN CRORES)
Since industry is covering the returns by the end of the 5th year. Hence above project is more viable in nature.
Cost Sheet of sun securities ltd
Particular Total Cost (In CRORES) Material consumed + direct wages Prime cost + Works Overhead Work Cost + Administrative overhead Cost of Production - Closing stock finished goods Cost of Goods Sold + Selling Overhead Cost of sales Profit 1.00 0.10 1.10 0.15 1.25 0.50 1.75 0.00 1.75 0.50 2.25 0.75
Cash Flow Statement
Particular Cash Flow From Operating Activities Cash received from customer Cash paid for inventory Cash paid for general and administrative Exp. Interest paid Income tax paid Amount(RS.IN CRORES)
0.65 0.50 0.80
(0.05) (0.15) 1.75
Net cash from Operating Activities
Cash Flow from Investing Activities Proceeds from sale of land Proceeds from sale of available for sales securities Purchase of equipment for cash
0.20 0.10 (0.50) (0.20)
Net cash from Investing Activities
Cash Flow From Financing Activities Dividend paid Proceeds from Issuance of Bonds payable Net Cash Flow From Financing Activities Net Increase in cash Cash at the beginning of the year Cash at the end of the year
(0.05) 0.35 0.30 1.85 1.00 2.85
BALANCE SHEET AS ON YEAR ENDED
Mar-09 Liabilities Equity share common stock Retained earnigs Bonds payable Account Payable Incom tax payable Deferred tax Liabiites Total Amount 1.50 0.25 0.65 0.20 1.80 0.20 0.40
Mar-08 Amount Assets
Amount Amount 0.25 0.35 0.15 0.10 0.05 1.00 0.25 2.85 5.00 0.25 0.35 0.15 0.20 0.15 0.80 0.10 1.00 3.00
0.50 Land 0.40 Buildings 0.85 Equipment 0.35 Investment in co. 0.67 Securitites 0.13 Account recabales 0.20 Inventory Cash
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