M

2009
Sun Securities Ltd
Sunil D. Tiwari

[BUSINESS PLAN]
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)
 SIP Details
INC Center M I R A R O A D

Enrollment Number 8 N B M M 0 1 7

Name Of Student S U N I L D T I W A R I

Program M B A

Name Of Faculty Guide R A G H U K U M A R I

Name of the Company M O T I L A L O S W A L L T D

Address of The Comn 2nd F L

O O R Q E E N S M E N T I O

N F O R T M U M - 4 0 0 0 0 1

Tele – Fax

Phone number

Name Of Company Guide J A G D I S H G U P T A

Designation Of Company U N I T M A N A G E R
Guide

Contact details Phone Off

Phone mob 9022516402
Fax Off
Email Sunil.tiwari20@gmail.com
 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

 PREFACE

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

1. Executive Summary

Company Direction
Objectives
Management Team
Product Strategy
Mission Statement

2. Marketing Plan
Sales Strategy
Positioning
Pricing
Promotion

3. Product or services

4. Financial plan

5. Financial statement

6. Operating(or Income) statement

 Executive Summary

Company Direction
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.

Company Overview
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.

• Values:-
 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
 Management Team

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.
 Product Strategy

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.
 Marketing Plan

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.
Positioning
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.
 Pricing:
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 Prod. Type A/c opening Min. Brok.

charges Commitment
(Rs) (Rs)
Kotak: Gateway 500 No
Value nil No
Privilege Circle nil No
Freeway 500 No
High Trade & Assist 500 No
ICICI Direct Web 750
Application >30,000 p.m
India bulls Web & Application 750 No
Inventure Smart Invest Web 750
Smart online Application 1500 1500
Smart Trade Web 750
MOSL Easy Web 500 No
Value Investing Application 1500 500
Freedom Application 1500 500
STFSL Easy Web 400 No
Easy investment Web& Application 1000 No
 Free trade Application 500 No

Competitors of Sun Securities Ltd have different brokerage these are as follows:

ICICI India Bulls Sunil tiwari Kotak MOSL

Direct securities ltd
Platform Multiple Multiple Multiple Multiple Multiple

Features:

Call& Trade Y Y Y Y Y
News Alerts Y Y Y Y Y
Technical Tools Y Y Y Y Y
Research Reports Y Y (Rs.100 Y Y Y
p.m)
SMS Y(chargable) Y Free Y(chargabl free
e)
Margin Funding 16-18% 13-21% 10-12% 13-18% 13-16%

Available To Selective All Selective ? Selective

Brokerage

Delivery 0.75% 0.50% 0.15% 0.59% 0.40%

Intraday 0.10% 0.10% 0.005% 0.10% 0.15%
Derivatives 0.10% 0.10% 0.05% 0.10% 0.10%

 Place:
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:

1. Print media

2. Newspapers

3. Hoardings

4. Pamphlet distribution.
 Sales forecasting

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

Product
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.

2. 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.

4. Will provide you a 3...in...l facility

SSL provides Banking, Trading and Demat Account
 Financial plan

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 short-
term 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.
 INITIAL COST

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 Amt (In Rs.)

Patent 100,000
Office Premises 20,000,000
Server 20,000,000
Furniture 5,000,000
Computer and accessories 600,000
36,50,00
Software
0
1,50,00
Stationary
0
Other Preliminary expenses 500,000
Total 5,000,0000
 FINANCIAL STATEMENT
NPV
1) Initial investment RS.5 (In Crores) (Net Cash outflow)

NET CASH PRESENT

INFLOWS(IN VALUE(IN
YEAR CRORES) DISCOUNTING@10% CRORES)
1 0.80 0.909 0.7272
2 1.60 0.826 1.3216
3 2.00 0.751 1.502
4 3.50 0.683 2.39
5.9408

NPV IS: (-5)+(5.9408)

RS. 0.9408 (RS.IN

CRORES)

ie.maximization of shareholders wealth. HENCE WILL ACCEPT THE PROJECT.

2) PAY BACK PERIOD

NET CASH
INFLOWS(IN
YEAR CRORES)
1 0.80
2 1.60
3 2.00
4 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 1.00

+ direct wages 0.10

Prime cost 1.10

+ Works Overhead 0.15

Work Cost 1.25

+ Administrative overhead 0.50

Cost of Production 1.75

- Closing stock finished goods 0.00

Cost of Goods Sold 1.75

+ Selling Overhead 0.50

Cost of sales 2.25

Profit 0.75
Sales 3.00

Cash Flow Statement

Particular Amount(RS.IN CRORES)

Cash Flow From Operating
Activities
Cash received from customer 0.65
Cash paid for inventory 0.50
Cash paid for general and 0.80
administrative

Exp.
Interest paid (0.05)
Income tax paid (0.15)
Net cash from Operating 1.75
Activities
Cash Flow from Investing
Activities
Proceeds from sale of land 0.20
Proceeds from sale of available for 0.10
sales securities
Purchase of equipment for cash (0.50)
Net cash from Investing (0.20)
Activities
Cash Flow From Financing
Activities
Dividend paid (0.05)
Proceeds from Issuance of Bonds 0.35
payable
Net Cash Flow From Financing 0.30
Activities
Net Increase in cash 1.85
Cash at the beginning of the year 1.00
Cash at the end of the year 2.85
BALANCE SHEET AS ON YEAR ENDED

Mar-09 Mar-08 Mar-09 Mar-08

Liabilities Amount Amount Assets Amount Amount

Equity share 1.50 0.50 Land 0.25 0.25

common stock 0.25 0.40 Buildings 0.35 0.35

Retained earnigs 0.65 0.85 Equipment 0.15 0.15

Bonds payable 0.20 0.35 Investment in co. 0.10 0.20

Account Payable 1.80 0.67 Securitites 0.05 0.15

Incom tax payable 0.20 0.13 Account 1.00 0.80

recabales
Deferred tax 0.40 0.20 Inventory 0.25 0.10
Liabiites
Cash 2.85 1.00

Total 5.00 3.00 Total 5.00 3.00