SALES AND PROMOTION OF CLUB KAUTILYA FOR MICROSEC AT

Submitted by:
RAMESH GIRI (xxxxxxx) SOURABH SONI (xxxxxxxxx) PRATIK GANGULI (xxxxxxxx) SOUNIK DAS (xxxxxxxx) HIRONMOY CHANDRA(XXXXXX) SUMANTA PAIN(XXXXXXXX) RAKESH SHUKLA DAS(XXXXXXX)

ACKNOWLEDGEMENT For the successful completion of the project, many people are responsible, without whose help the project would be lacking something. We are deeply thankful and indebted to the under mentioned senior personnel of Microsec Group who have guide us day-in and day-out with their valuable guidance and advice. Firstly, we would like to mention the name of Mr. Tirthankar Dutta, Branch Head and Mr. Junaid Warsi, Assistant Vice-President of Future Group. They had acted like a friend, philosopher and guide in briefing us about the work eg. Financial planning procedure, whom to approach, how to approach and other details about the project. They had also guided us regarding the things to be done and what not to be done in the field, while dealing with clients. We are also thankful to Mr. Ravi Kant Sharma, Chief Executive Officer of Microsec, Mr. Sekhar nath Chowdhury, National Manager of Microsec and other important members of Microsec for providing us with relevant data and other minute information. Special thanks to Mr. Krishnendu Ghosh, Assistant Professor of Finance Department and Mr. Jayanta Nath Mukhopadhyay, Head of Department Finance and other faculty members of Globsyn Business School for supporting us in our academics and professional career. We are specially thankful to our friends and colleagues of Microsec for giving us moral support. In advertently, if we have missed out anybody names kindly pardon us.

SOURABH SONI

APPROVAL OF THE GUIDE This is to certify that the Project Report at

KOLKATA Submitted in partial fulfilment of the requirements for the award of the degree of POST GRADUATE PROGRAM IN MANAGEMENT TO GLOBSYN BUSINESS SCHOOL Is a record of bona-fide training carried out by SOURABH SONI (XXXXXXXXX) Under my supervision, guidance, and that, no part of this report has been submitted for the award of any other degree/diploma/fellowship or similar titles or prizes. Signature:

Mr. Junaid Warsi (Assistant Vice-President)

APPROVAL OF THE MENTOR This is to certify that the Project Report at

KOLKATA Submitted in partial fulfilment of the requirements for the award of the degree of POST GRADUATE PROGRAM IN MANAGEMENT TO GLOBSYN BUSINESS SCHOOL Is a record of bona-fide training carried out by xxxxxxxxxxxx(xxxxxxxxxx) xxxxxxxxxxxxxxxx (xxxxxxx) xxxxxxxxxxxx (xxxxxxxxxx) xxxxxxxx (xxxxxxxx) Under my supervision, guidance, and that, no part of this report has been submitted for the award of any other degree/diploma/fellowship or similar titles or prizes.

Signature:

Avik Mukherjee (Asst. Professor of Finance Department, GBS)

DECLARATION We hereby declare that the Project Report conducted at

KOLKATA Under the guidance of Mr. Junaid Warsi (Assistant Vice-President) Submitted in partial fulfilment of the requirements for the degree of POST GRADUATE PROGRAM IN MANAGEMENT TO GLOBSYN BUSINESS SCHOOL

Is our original work and the same has not been submitted for the award of any other degree/diploma/fellowship or other similar titles or prizes.

Place: Date: XXXXXXX (xxxxxxxxxxxxx)

XXXXXXXX (010110018)

XXXXXX (010110108)

XXXXXXX (010110047)
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CONTENT PARTICULARS ACKNOWLEDGEMENT APPROVAL OF THE GUIDE APPROVAL OF THE MENTOR DECLARATION PART 1 INTRODUCTION 9-11 PAGE NO.

I. Microsec group profile II. Club Kautilya profile PART 2 I. II. III. IV. V. VI. RESEARCH WORK Review Design Presentation and Analysis of Data Summary and Conclusion Recommendations Questionnaire

16-20 21-23 24-27 28 29 30-32

PART 3 Bibliography

REFERENCE 34

LIST OF TABLES AND FIGURES CONTENT I. 360 Degree Plan II. Data List III. Data Analysis PAGE NO. 14 24-26 26-27

PART 1

MICROSEC
Microsec has an integrated business model providing various financial products and services to their client base of retail investors, high net worth individuals, companies and institutions. With an Experienced senior management and people partnership model they have been able to create a strong base with an emerging pan India presence. Microsec is a well-recognized brand with adequate base of research delivery capabilities. At Microsec knowledge is worshipped, transparency is mirrored, partnerships are nurtured and commitments are kept. Since its inception, Microsecs commitment to Creating true value has been the cor nerstone of its business approach that has enabled the firm to establish strong client relationship.

Their partnership-led approach allows them to work together with companies to generate solutions that are completely aligned to their overall business and financial objectives and ensure seamless implementation of their business strategies. Microsec group is focused to provide services in the arena of Investment Banking, Equity & Commodity Brokerage, Currency Futures, Insurance Brokerage and Wealth Management. Their ability to provide integrated custom made solutions has helped them to carve a niche for themselves as they assist to create Mega Wealth through Micro Focus. At this time of constant reinvention, businesses are often in need of an impetus for action it needs someone to take its vision forward and convert it into reality. Microsec is committed to help corporate make an immediate and visible impact on their operations through Consulting, Planning & Implementation assistance. Microsecs people constantly upgrade their knowledge and apply their experience and a unique client service model to deliver practical solutions that have a profound and far reaching impact. They convert ideas into action, which is Ideation via Focused Approach, Committed Delivery, Dynamic Attitude, Knowledge Management, Coordinated Team effort and a visible Integration of all these virtues.

Mission: Quality Their main moto Personal, Prudent & Proactive Seamless Transaction with Transparency Proper Risk Management for the safety of all stakeholders 100% Regulatory Compliances To follow Microsec Code of Conduct Small things matter

Vision: To be a universally respected financial services organization by assisting to create and manage wealth through personal care, prudent approach and proactive product

Values: The Microsec Group believes in four core values knowledge, commitment, transparency and partnership. We believe that these values are key to the growth of business operations of the Microsec Group.

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SUBSIDIARY COMPANIES OF MICROSEC GROUP

1. Microsec Financial Services Limited Promoter group of Microsec 2. Microsec Capital Limited - Wholly owned by the company 3. Microsec Resources Private Limited - Wholly owned by the company 4. Microsec Technologies Limited - 80% held by the company and 20% held by Microsec Capital Ltd., a wholly owned subsidiary of the company 5. Microsec Commerze Limited - Wholly owned subsidiary by Microsec Capital Ltd. 6. Microsec Insurance Brokers Limited - Wholly owned subsidiary by Microsec Capital Ltd. (Previously it was known as Microsec Risk Management Limited) 7. PRP Technologies Limited Wholly owned subsidiary by Microsec Technologies Ltd.

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PART 2

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REVIEW Service Industry: The service industry forms the backbone of social and economic development of a country. It has emerged as the largest and fastest-growing sectors in the world economy. The service sector has shown a growth rate higher than that of agriculture and manufacturing sectors. This sector covers a wide range of activities, such as education, training and development, trading, transportation, communication, financial, real estate and business services. In India, the services sector, as a whole, contributed as much as 57.2 per cent of the overall growth in gross domestic product (GDP) in the year 2011-2012. Service marketing: Service marketing is a sub field of marketing, which can split into the two main areas of goods marketing (which includes the marketing of fast moving consumer goods (FMCG) and durables) and services marketing. Services marketing typically refer to both business to consumer (B2C) and business-to-business (B2B) services, and include marketing of services like telecommunications services, financial services, all types of hospitality services, car rental services, air travel, health care services and professional services. The range of approaches and expressions of a marketing idea developed with the hope that it be effective in conveying the ideas to the diverse population of people who receive it. Key attributes of services:

Intangibility: They cannot seen, handled, smelled, etc. There is no need for storage. Perishability: Unsold service time is lost, that is, it cannot regain. It is a lost economic opportunity. Lack of transportability: services tend to be consuming at the point of production except in case of outsourced business services. Lack of homogeneity: Services are typically modified for each client or each new situation. Mass production of services is very difficult. Labour intensity: Services usually involve considerable human activity, rather than precisely determined process. The human factor is often the key success factor in service industries. Demand fluctuations: It can be difficult to forecast demand. Demand can vary with season, time of day, business cycle, etc. Buyer involvement: Most service provision requires a high degree of interaction between client and service provider.

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Financial Services:
Financial services are the economic services provided by the finance industry, which encompasses a broad range of organizations that manage money, including credit unions, banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises.

Meaning of Financial Service: Financial services basically mean all those kinds of services provided in financial or monetary terms, where the essential commodity is money. These services may relate directly/indirectly to the exchange of money, advisory services related to the management of money. These services include; Banking, Leasing, Hire Purchase, Venture Capital, Merchant Banking, Insurance, Housing finance, Mutual Funds, Factoring, Stock Broking and many others. Classification of Financial Services Industry: Banking Companies Non Banking Finance Companies Financial Institutions

Kinds of Financial Services: Asset based/Fund based Services Fee based/Advisory Services

Fund based services include: Equipment Leasing/Finance Hire Purchase and Consumer Credit Bill Discounting Venture Capital Housing Finance Insurance Services Factoring

Fee based services include: Portfolio Management Loan Syndication Merger and Acquisition Capital Restructuring Credit Banking Stock Broking
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Financial Planning: Financial Planning is the process of meeting life goals through the proper management of finances. Financial planning is a process that a person goes through to find out where they are now (financially), determine where they want to be in the future, and what they are going to do to get there. Financial Planning provides direction and meaning to persons financial decisions. It allows understanding of how each financial decision a person makes affects other areas of their finances. For example, buying a particular investment product might help to pay off mortgage faster or it might delay the retirement significantly. By viewing each financial decision as part of the whole, one can consider its short and longterm effects on their life goals. Person can also adapt more easily to life changes and feel more secure that their goals are on track. In simple Financial Planning is what a person does with their money. Individuals have been practicing financial planning for centuries. Every individual who received money had to make a decision about the best way to use it. Typically, the decision was either spends it now or save it to spend later. Everyone have to make the same decision every time they receive money. Does it need should be spend now or to save it to spend it later? Today in India, financial planning means only investing money in the tax saving instruments. Thanks to the plethora of tax exemptions and incentives available under various sections and subsections of the Income Tax Act. This has led to a situation where people invest money without really understanding the logic or the rationale behind the investments made. Further the guiding force in investment seems to be the rebate they receive from the individual agents and advisors. The more the rebate an agent gives, the more smug person are in the belief that they have made an intelligent decision of choosing the right agent who has offered them more rebate. In the process what is not being realized is the fact that the financial future is getting compromised.

Four Steps of financial planning: Set the Goals - This is the initial step where we need to decide our primary goals that we wish to accomplish. Map the Resources - This is the next step where we enlist the resources available with us to achieve our goals. Manage the Risk - This the third step where we see our risk taking appetite, i.e. how much we can risk our resources to achieve our goals. Monitor and Reset the Goals - In this step, we monitor our goals whether they are in a state to be achieved or not. If not we again reset our goals and follow the above three steps again.

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Need of financial planning: A financial planning helps us to cover the four basic aspects of our life. The four aspects are: Wisdom - Financial planning helps us to enhance skills and knowledge about the market like where to invest and how to invest. Health - Being the basic aspect of life financial planning helps to manage our health. Prosperity - The main aspect of our life which can achieve through proper risk management and financial planning. Peace - This is the ultimate aspect of life can only be achieved if we cover the above three aspects.

Principles of Four Pillars: INVESTMENTS o Strike the right allocation of asset classes o Keep Balance among risk, return and liquidity o Invest in assets having low income tax o Invest regularly INSURANCE o Insure properly & adequately o Cover all insurable risks including life, accident, critical illness, medical, household etc. o Do nomination properly o Record properly and do not forget to renew INCOME TAX o Use benefits of deferment of tax o Avail all deduction available for investments, insurance and tax free income o Use tax friendly instruments like mutual funds, NPS, provident fund, NABARD bond etc. o Use deductions available for interest and repayment of housing loans PERSONAL LIABILITY MANAGEMENT o Examine repayment schedule and match with cash flow before taking loan o Take first loan for buying a house o Avoid personal loan and loans to carry forward of credit cards o Build assets by loan. Avoid loan for expenditure

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Difficulties faced by Selling De-Mat A/c: Clients cant see or touch services before they purchase them: This makes services difficult to conceptualize and evaluate from the client perspective, service intangibility can make services difficult to promote, control quality. Understand the customer need: How they do the planning on their own. Will it come with the exact result or not? Market competition: Some companies are already associated with some other companies who provide de-mat accounts . So, where they are different? RESEARCH METHOTOLOGY The predefined objectives can be achieved by following ways: 1) Studying the buying behaviour of customer. 2) Comparing sales of different players. Methods of Data Collection Personal Interview Questionnaire & Telephonic Interview. What people perceive about demat account People carry a different image of trading in their mind because of the risk involved in trading. Many people do want to invest but they want to invest safe. As the market condition is not stable people are scared to invest here. They want a investment when the risk is minimum. One other main reason is time constraint. Working people are busy in their work. They hardly get time which they dont want to give in trading. Segment of people interested Mostly middle and upper class people go for such accounts. They can bear a certain amount of risk. Whereas the lower class people are mostly interested in fixed deposit, insurance etc which is risk free and gives them a surety of return. Whereas the middle and upper class people can bear a certain amount of risk. Subculture influencing trading I analyzed that Gujarati and Marwari people in Kolkata are more capable to take risk as compared to Bengalis. This can be because Bengalis dont prefer taking risk. Guajaratis and Marwaris are mostly into business. They can bear risk. Bengalis believe more in safe investment. They are mostly interested in fixed deposits, insurance, mutual fund etc where the risk is minimum.

The research part of edelweiss is very strong. They have different types of products which can satisfy people of different segment. Lack of promotion and awareness among people. No targeted segment. They should know which product should be offered to which segment of people.

DATA COLLECTION AND INTERPRETATION METHODS OF DATA COLLECTION In the project work Primary sources of data has been used .

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting item for the sample Generally Sample designs are two types 1. PROBABILITY RESEARCH DESIGN 2. NON PROBABILITY RESEARCH DESIGN I used the probability research design. SAMPLING UNITS Filling the sample is selected in a random way, irrespective of them being investor or not or availing the services or not. It was collected through mails and personal visits to the known persons, by formal and informal talks and through up the questionnaire prepared. SIZE OF SAMPLE This refers to the number of items to be selected from the universe to constitute a sample The sample size in this project is 100.

OBJECTIVE OF REASEARCH

 The main objective of this project is concerned with getting the opinion of people regarding demat account, and to create awareness of on line trading. I had tried to explore the general opinion about the equity market and services provided by MICROSEC CAPITAL LTD. It also covers why not investors are availing the services of financial advisors.

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DESIGN To sell any service or product you need to have a good strategy based on the location and the customer and you have to understand the customer need. In case of service selling, sometime you have to customize the services according to the customer need. We targeted the Kolkata market only to cater, but in Kolkata whom to target, how to approach and on what basis we should target, we had to make a clear picture of that first. To sell this type of service we first targeted the revenue earning people. We were told not to target the non-revenue people as they dont show interest and it is unnecessary for them to do a financial planning. Ways of approach: We divided our approach into two ways. One is Phone Calling and the other is Cold Calling. For the first 2 weeks we did phone calling only. Through phone we use fix an appointment with the particular client and visit him personally. But later we shifted to cold calling along with the appointments fixed through phone, which was being done by another full-time employee for us. Before calling over the phone or hitting the market we had to have the full information about our company and as well as our services, as in the market there could be lot of queries and we had to answer that for which we needed all the information. Valuable points in plans: Never elaborate much at the first meeting. If concerned person is not available, then note down the phone no. as well as concerned persons email id. Never try to push the product. Let the concerned person speak more and listen to him carefully. Try to grab as much information you can in the first meeting. We had a Dematerialisation form available with us, which we use to explain to the customer to get it filled up by the respected person to whom we are going to meet. The form has been attached with this report in the questionnaire section.

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Execution of phone calling: For phone calls we had been provided data sheets which had the names and contact numbers of the people to call. During calls we use to give a brief introduction about the product and fix up an appointment if they showed interest in it just to give a broad idea about our product How we approach over phone: Phone Speech: Good morning/afternoon/evening Sir/Madam. This is (the name of the person who called over the phone) calling from Microsec. Am I speaking to Mr./Mrs._______ (the name of the client) Is this the right time to talk to you? If Yes: Sir/Madam, you might have heard about Microsec, which is a financial company., it would be great if we can meet on a mutually convenient date and time. If No: When would be the right time to call you? Advantages: Maximum no. of contacts can be availed in a day. Chance to talk with the concern person is high. Probability of getting an appointment is more.

Disadvantages: One may need to make a several call to make a single appointment. Often only official website is asked for viewing the company profile and the product along with its features, hence restricting one from visiting the required person.

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Execution of cold calling: To increase the rate of visited persons and fill up more forms we shifted to cold calling continuing the appointments fixed through phone calls on the other side. So we thought of visiting the commercial areas like Chandni Chowk, Park Street, Shakespeare Sarani, Salt Lake Sector 5, DLF Building (Rajarhat) etc. Advantages: One can directly meet the concern person. A better scenario of the current market can be captured. One can judge their own tenacity.

Disadvantages: One may be too busy to entertain you, if no prior appointment is taken. One needs to be equipped with all the required documents and brochures. One may listen to the whole thing but refuse to fill the form so what happens is our time gets wasted.

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DATA COLLECTION AND ANALYSIS

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ANALYSIS OF DATA The data which we collected are parametric so we conducted correlation test on the data. Here age is the independent variable and the other datas are dependent variable. Case 1: Here we tested whether income is dependent on age or not.

The relationship exists between age and income is very weak though positive. The increase in age will marginally increase the income but not enough. Case 2: In this case we have tested the relationship between income and expenses

Here we can see that expenses are positively and strongly related to income. This shows with increase in income the expenses will highly increase.

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Case 3: In this case we have tested the relationship between income and insurance

The relationship between income and insurance is very weak but positive. With increase in income there is a less increase in insurance. Case 4: In this case we have tested the relationship between income and investment whether they are dependent or not.

From this it can be inferred that the relationship between income and investment is positive though weak. This shows that with increase in income the investment capacity will also increase but at the moderate rate.

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SUMMARY From the above analysis we can summarize that the income factor is not totally dependent on the age but too some extent it and its growth is dependent. That it is not highly skewed. Income may not always depend on age or growing age. It depends on several other factors like qualification, degree, experience, inheritance, etc. On the other hand there is a strong relationship between income and expenditure. As income increases the expense capability of a person too increases in the same ratio. The discretionary as well as nondiscretionary expenses too increase in accordance to his gross income. On the other hand the relationship between income and insurance is weak but positive. When people have increase amount of income people try to invest more rather than insure in order to get greater returns. Next the relationship between income and investment is positive and moderately strong because as income increases the standard of living, expenditure and requirement of greater returns increases and people tends to invest more. So overall the analysis provides an insight to the people and their tendencies towards the financial market.

CONCLUSION Overall the concept of Club Kautilya is very nice and unique. It is providing financial planning at three levels that is it is a three tire system, preliminary planning, comprehensive planning, and resource planning. It is actually giving a total financial picture of an individual and helping out to find out the loopholes in his planning. It talks about a 360 degree plan which is very scientific and unique in its approach. Microsec is one of the first companies to make financial planning on the basis of four parameters i.e. investment, risk assurance, taxes, and loans as stated by Chanakya. The entire idea is based and follow Chanakya Niti and Arthashastra and that is why is is named as Club Kautilya. It helps an individual to reach his goals and aspire his dreams in a systematic planning method so that he is not obstruct by financial hurdles and can move step by step in a logical paradigm.

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RECOMMENDATION 1. Many people are not aware of Club Kautilya. So the company needs to take some initiatives regarding advertisements and promotions. 2. People are not aware of what is actually all about financial planning. So the concept of financial planning and how it is helpful in long run needs to be cleared and taught beforehand. 3. There are several other organizations that too provide same services so the branding needs to be done in order to set and mark a difference between ours and their services. As the project is based on Chanakya Niti so the nitis needs to be preached and promoted so that people find them interesting and meaningful. 4. The four pillars it talks about needs to be cleared and the usefulness of these requirements needs to be understood. 5. Common man has a general negative approach to broking firms and investment sectors. So when they hear that its an initiative of Microsec, which is a financial company, they say no before listening. So for better image and brand Club Kautilya needs to create a separate identity than Microsec.

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QUESTIONNAIRE In our field whatever question we had were totally related to the form which we needed to fill up. Below we have illustrated the copy of the form as well as the questions:

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1. What is clients name, address, gender, contact number, e-mail id, date of birth, PAN, qualification, occupation? 2. What is his/her annual income? 3. What is his/her annual non-discretionary and discretionary expense? 4. Has he/she any of the following: HRA exemption, Life insurance premium, Medical insurance premium for him or parents, PPF, ULIP, NSC, ELSS, Pension Fund? a. If yes then how much? b. If no then ignore it. 5. What is the aggregate value of his/her investment in the market? 6. Has he/she taken any loan? a. If yes, then what is the outstanding amount, interest rate, tenure of loan left, loan EMI (monthly)? b. If no, then ignore it. 7. What are his/her objectives/goals in the future? 8. What is the sum assured of his/her Life Insurance, Medical Insurance, Critical Insurance, and Accidental Insurance if he/she has any? 9. How much risk taking appetite he/she has? 10. What is his/her expected retirement age? 11. How much annual growth rate (%) does he/she expects in his/her income every year? 12. What is his/her life expectancy (years)?

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PART 3

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BIBLIOGRAPHY

http://www.microsec.in/Static/About.aspx?id=0&Submenu=1 http://economictimes.indiatimes.com/microsec-financialservices- ltd/infocompanyhistory/companyid-32314.cms http://www.microsec.in/static/Pdf/Microsec%20Financial%202010.pdf http://ck.microsec.in/static/resourceplanmore.aspx?id=1 http://ck.microsec.in/static/Faq.aspx?id=1 http://ck.microsec.in/static/Concept.aspx?id=1 http://www.scribd.com/doc/52687199/EVOLUTION-AND-ROLEOF- FINANCIAL-SERVICES-COMPANIES-IN http://en.wikipedia.org/wiki/Financial_services http://www.scribd.com/doc/23315617/Financial-Planning-for-individual http://en.wikipedia.org/wiki/Economy_of_India http://www.scribd.com/doc/32316429/Marketing-Challenges-inService- Marketing http://www.managementstudyguide.com/definition-and-characteristicsof- services.htm

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