A

Project Report

on title

Debt Syndication

at

SNS INDIA ADVISORY

Submitted By

Gagan Gupta

(VIMS/2009-11/015)

In the fulfillment of the requirement for the Degree of Master of Business

Administration and Post Graduate Management Program

Submitted to

Viva Institute of Management Studies, Pune

Bhukum –Bhugaon, Pirangut Road, Pune-411042.

Batch 2009-11
 Declaration

I, Gagan Gupta, student of Viva Institute of Management Studies (2nd

Semester), hereby declare that I have completed this project on “Debt Syndication”
during the academic year 2009-11. The information submitted is true and original to
best of my belief. This Project Report has not been submitted to any other institute or
university towards the award of any Degree.

Date:

Place: Pune

Gagan Gupta

VIMS/2009-11/015

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 Acknowledgement

I wish to express my profound gratitude to Mr. Sagar Khurana (Senior

Consultant- Mumbai) SNS India Advisory, for his kind support and valuable guidance
for the completion of this project. I also express my sincere thanks to Executive
Director and Placement Coordinator, who guided, instructed and encouraged me.

I would also like to thank and express my sincere gratitude to Mr. Anupam
Mitra (Senior Consultant- Pune), SNS India Advisory, for his valuable guidance, help
and support without which this project would not have been a success.

Apart from the above I would like to thank Mr. Deepak Agrawal and other
seniors for all the support they provided me during my internship.

Gagan Gupta

VIMS/2009-11/015

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 Index
Sr. No. Contents Page No.
Chapter -1 06-16
1 Introduction 07-11
2 SNS India Advisory- Company Profile 12-14
3 Objective of the Project 15-16
Chapter -2 17-27
4 Industry Research 18-20
5 Competitor’s Analysis 21-23
6 Debt Syndication 24
7 Research Methodology 25
8 Learning Outcomes 26
9 Solution at SNS India Advisory 27
Chapter-3 28-32
10 Suggestion to SNS India Advisory 29-30
11 Annexure- Questionnaire 31
12 Bibliography 32

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 CHAPTER-1
 Introduction
 SNS India Advisory- Company Profile
 Objective of the Project

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 Introduction

 World Investment Banking Industry- Brief Description:

There have been big changes in investment banking since the credit crunch
started in 2007. Many investment banks have gone bankrupt while others have
expanded rapidly.

Some companies are no longer present. For example Lehman Brothers,

which was one of the top investment banks of the late twentieth century, went
bankrupt in a move that was seen as the height of the credit crunch, and later had its
North American operations brought by the British bank Barclays Capital, with the
other operations brought by the large Japanese bank Nomura Securities. Similarly
the once enormous securities house of Merrill Lynch was taken over by Bank of
America, while Citigroup was forced to sell its stock broker to Morgan Stanley,
creating Morgan Stanley Smith Barney. Similarly Wachovia Securities had to rename
itself as Wells Fargo Advisors after being sold to the massive Wells Fargo bank.

In Britain the enormous RBS Group had to be largely taken over by the
British government after a disastrous takeover of ABN AMRO. Similarly the Dutch
government had to take a substantial stake in the ING Group.

Some investment banks flourished, such as Goldman Sachs, which still

continued paying enormous bonuses. Other banks such as JPMorgan Chase became
more prominent while unknown banks such as the south based BB&T Capital
Markets were catapulted into the top of the banking league tables when small but
well capitalized regional investment banks were asked to take over less stable rivals.

Many of the international headlines concerned British or American banks,

where local banks in large markets showed some more stability. In Canada the big
five banks kept to their respective strategies with RBC Capital Markets and CIBC
World Markets still keeping a high international presence in London and New York,
while Scotia Capital concentrated on an internal Canadian base. The other two banks

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concentrated their activities on the investment management side with TD Securities
continuing to build an international stock broking organization and BMO Nesbitt
Burns offering an award winning full service but concentrating on Canada.

In Europe, the Swiss banks faced increased scrutiny due to their private
banking operations, with Credit Suisse and UBS AG having to face allegations that
they aided tax evasion through creative measures such as smuggling diamonds in
toothpaste tubes. In France BNP Paribas CIB was named as a potential bidder in
many takeover operations, while Societe Generale was one of the first institutions to
almost go bankrupt when a rogue trader lost it billions. The small credit union based
banks such as Calyon Credit Agricole CIB and the relatively new Natixis tended to
grow, like their Dutch equivalent Rabo Securities.

In Germany the market leader Deutsche Bank CIB faced a strong challenge
from the second place Commerzbank who had merged with the Dresdner Bank.
German banking has been opening up recently with its largest Bavarian bank being
bought by the Italian lender Unicredit. The Italian operation MPS Finance (a sub-
division of the third largest Italian bank Monte dei Paschi di Siena) kept its
stranglehold on the Italian bond market.

India has seen the growth of the aggressively marketed Kotak Securities, a
division of the fast growing Kotak Mahindra Bank. In Japan Nomura securities, the
largest Japanese brokerage has moved its headquarters to London in order to
become more international, while Daiwa Securities has been bought out entirely by
its parent company the Daiwa bank. In South Korea Daewoo Securities still
maintains its market leading position. In Australia the news was of a bankruptcy that
did not happen as Macquarie Group, a global specialist in infrastructure finance, did
not go under.

Investment banks have found that the operating atmosphere has changed
considerably. Before the credit crunch it was a golden period for these banks as
there was a wave of takeovers and structured fundraising. Private equity was very
popular, where a management team buys out a company division on the back of a
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large amount of debt. Many publicly traded companies were also encouraged to take
out a large amount of debt as they found that the historically low interest rates were
now affordable and by leveraging and buying back shares they could radically
increase their profit per share. This was somewhat of a change to the usual role for
investment banks which was to take private companies that wanted to broaden their
ownership and funding on to a stock market, what is known as “floatation” or an
Initial Public Offering (IPO).

One of the more controversial areas where investment banks were involved
was the growth of the residential mortgage backed securities (RMBS) market. This
market involved the pooling together of mortgages, and their segmentation into
various areas that would be paid off in different orders. The tranches that would be
paid off first were regarded as highly safe and often attracted the highest credit
ratings, the AAA rating meaning that many investment funds could treat them as
equivalent to government bonds. The market naturally led to the rapid growth of the
mortgage market, with good borrowers getting low rates, first time buyers needing
low deposits and bad borrowers getting offered mortgages for the first time. This led
to increased perceived prosperity and rising house prices, which led to fewer defaults
and a higher return on the mortgage securities. This virtuous cycle could not
continue forever and instead it broke when a number of the less trustworthy
borrowers stopped repaying their mortgages and a number of investment banks
found themselves exposed to these funds, including the Royal Bank of Scotland,
Lehman Brothers and Bear Stearns.

Another area of investment bank activity is proprietary trading, where an

investment bank maintains its own traders who buy and sell securities either for the
clients or for the banks. These tend to be short term traders, who aim to take
advantage of differences in the prices of various securities. Although they are often
seen as a source of risk, particularly the trading that is done on the firm’s own
account, this is in fact a major source of profit for the investment banks.

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 One area of controversy was with bonus. As investment bankers make a large
amount of money for their banks, and can easily measure their results the successful
ones have tended to be paid very generously. This increased with the growth of
hedge funds, which like the in-house trading operations of merchant banks would
trade on short term price movements. They paid multi-million bonuses to star
traders. Investment banks felt that they had to match these bonuses to retain the
clients.

This led to moves to restrict bonus, or tax them at penal rates. This has been
attacked by some economic commentators and bankers as being self destructive as
many bankers left for lower tax jurisdictions such as Switzerland and Hong Kong.
Many bonuses stopped being guaranteed and were paid in more long term ways and
were held back for a number of years.

The controversy over bonuses was exaggerated due to an international

government rescue of the banking system. This could either involve direct support
such as the nationalization of the Royal Bank of Scotland or American Insurance
Group (AIG) or indirect support such as the American government’s Troubled
Assets Relief Program and cheap government loans to the distressed institutions.
This was a considerable burden to the taxpayer, and led many commentators to call
for more regulation and higher taxation of merchant banks.

 Indian Investment Banking Industry:

The banking scenario in India is itself huge, covering the different facets of the
economy. By and large, investment banks in India are itself an institution which
generates funds in two different ways. The first manner in which it works is by
drawing public funds via the capital market by way of selling stock in their company.
The other way in which it operates is to seek for venture capital or private equity, as a
substitute for a stake in their company.

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 The major work of investment banks includes a lot of consulting. For instance,
they offer advices on mergers and acquisitions to companies. The other arena where
they give advice are tracking the market and determining when should a company
come out with a public offering and what is the best possible way to manage the
public assets of businesses. The role that an investment bank plays sometimes gets
overlapped with that of a private brokerage house. The usual advice of buying and
selling is also given by investment banks.

There is no demarcating line between the investment banking and other forms
of banking in India. This has been observed majorly of late. All banks now days want
to provide their customers the best of services and create a niche for themselves and
that is why apart from investment banks, all other banks too are aiming at making it
big.

At the macro level, investment banking is related with the primary function of
assisting the capital market in its function of capital intermediation, i.e., the movement
of financial resources from those who have them (the investors), to those who need
to make use of them for producing GDP (the issuers). Over the decades, investment
banks have always suited the needs of the finance community and thus become one of
the most vibrant and exciting segment of financial services.

Globally investment banks handle significant fund-based business of their own

in the capital market along with their non-fund service portfolio which is offered to
the clients. All these activities are broadly segmented across three platforms - equity
market activity, debt market activity and merger and acquisitions (M&A) activity. In
addition, given the structure of the market, there is also a segmentation based on
whether a particular investment bank belongs to a banking parent or is a stand-alone
pure investment bank.

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 SNS India Advisory- Company Profile

SNS India Advisory is a mid-market investment boutique, based in India. It

was founded in 2001 by ex-Investment Bankers having vast experience in Fund-
Raising (Debt & Equity), M& A and Consulting services.

SNS India Advisory headquartered in Gurgaon (Delhi), with a regional office in

Pune and Mumbai.

SNS basically examine and recommend options for various financial

transactions. The employees identify the most appropriate structure for a particular
company as well as its stakeholders. They take care of strategic and financial
alternatives from diverse sectors, analyze values, market position and opportunities
ahead for growth.

The insight of employees in financial industry and strong association with

banks, financial institutions, venture capitalists and private equity funds enable them
to offer comprehensive advisory services to entrepreneur and corporations seeking
growth capital.

Currently, the team of SNS Advisory includes 17 young individuals with vast
industry experience, which is well supported by a group of advisory Board Members
to meet the corporate requirements of the clients in growing their business and
achieving new heights by blending of SNS’s financial industry expertise with their
ambitions and becoming their long term growth associates.

Objective of SNS India Advisory is to:

 Emerging as a leading financial advisory company in India.

 Be committed to deliver the best of services.
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  Create a bridge to meet the requirements of SME segment.
 Create a new benchmark in the financial service industry in India.

SNS India Advisory was founded to make it possible for the SMEs to reach out
to the financial market by giving them the highest level of commitment, customized
solutions, teamwork, efficiency, transparency and integrity to which large corporations
have easy access.
Industries SNS work across are:
 Industrials
 Life Sciences
 Consumer
 Financial Services
 Technology

Services by SNS India Advisory:

At SNS we primarily focus on small and medium size enterprises in India. Our
dedicated team has expertise in the field of Project Finance Syndication, IPO
Consultancy, Mergers & Acquisitions, Private Equity, Business Structuring and
Turnaround Strategies, involving a combination of strategic, operational and financial
re-orientation.

1) Investment Banking:
We offer in-depth industry expertise because of our strong association with
Financial Institutions, Banks, Venture Capitalists and Private Equity Firms which
helps in offering comprehensive Investment Banking expertise.

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 2) Corporate advisory:
We help manage strategic and financial alternatives, analyze value, market
position and consult on strategic growth opportunities.

Investment Banking Corporate Advisory

Private Equity Strategic Advisory

Venture Capital Joint Ventures

Debt Syndication Foreign Tie-ups

Merger & Acquisitions India Entry Strategy

Buyout Financing Project and Business Viability study

Restructuring Accounting, Financial and Tax Due Diligence

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 Objective of the Project

SNS India Advisory has already run its business into NCR region, and wants to
expand their business into western region of India. The key people of the company
decided to establish their offices into Mumbai and Pune respectively. I was selected
for Pune region to start working and helping Mr. Anupam Mitra (Senior Consultant-
Pune) but before that I was called to Mumbai for having my basic profile and key-
responsibilities during internship.

My internship comprises of following key responsibilities:

 Industry Research
 Tele-calling
 Database Updation
 Client Meeting
 Prospective Client Identification
 Client Acquisition and Business Development

With the details of all of above key responsibilities I was back to Pune. On
meeting with Mr. Anupam Mitra, I got that primarily I had to go through Data
collection of all the CA firms in Pune. Here the strategy was to directly meet with the
person who can tell us about the SME’s, wanted to expand their business.

Firstly, I collected the information of all CA firms of Pune including their

contact numbers, Address, the services they were providing, their mail ID’s, their
websites and all. Then my second task introduced to call all of them and having an
appointment with them for an informal discussion about our business; how they can
be benefited with such of deals? In starting days, on getting appointment I was
supposed to go with my seniors to get How to talk with the Intermediaries and what
was supposed to tell him into first meeting?

If the CA had any company which wants to expand their business or wanted to
have any of our service then the deal is transferred to seniors and Board Members.

During my Internship period I had met with 220+ CA’s of Pune and gave 6
Deals to SNS India Advisory.

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Here is a generic Deal diagram, which brief about the Deal steps:

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 CHAPTER-2
 Industry Research
 Competitor’s Analysis
 Debt Syndication
 Research Methodology
 Learning Outcomes
 Solution by SNS India Advisory

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 Industry Research

Financial banking is the science of managing money and other assets pertaining
to a specific business. We all know that banks offer basic loans, deposits and financial
advice, but they also facilitate transactions on sophisticated financial instruments such
as private equity, bonds and mutual funds. Most top performing candidates typically
view careers in Banking as the pinnacle of achievement, and sectors such as treasury,
equity trading, investment banking and private banking are viewed as the most
lucrative jobs for new graduates.
In addition to traditional banks, other financial institutions such as credit
unions, trust companies, mortgage loan companies, insurance companies, brokerage
firms and asset management firms also offer a host of financial advice. Hence, when
viewing the opportunities in the sector, one must also carefully consider these other
specialized financial institutions.

Performance:
The financial crisis of 2007-2008 was triggered by an insolvent United States
Banking system (catalysts of which were sub-prime lending, over leveraging and poor
regulation) resulting in the collapse of large financial institutions, the bailout of banks
by national governments and downturns in stock markets around the world.
The destabilization of the banking sector in the U.S. had a domino effect on the
global financial industry, with effects felt in Europe, the Middle East and the Asia
Pacific. 24 months later, the global financial industry still hasn’t regained its lost glory,
and even countries with deep pockets such as the U.A.E. and Singapore have
exhibited limited sector growth.

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 The Indian financial industry underwent rapid transformation post
liberalization in the early 90’s, resulting in greater inflow of investments from FII's
into capital market. Despite the foray of foreign banks in the country, nationalized
banks continue to be the biggest lenders in the country, primarily due to their size and
penetration of networks. In fact, Industry estimates indicate that over 80% of
commercial banks in India are in the public sector and of the 50-odd private banks,
less than half are foreign banks. The Reserve Bank of India is the Indian equivalent of
the Fed. The opportunities in this industry remain extremely promising due to its
relatively low penetration of both basic as well as advanced financial products.
Though the Indian finance and banking industry did suffer significantly during the
past 2 years, it was relatively sheltered from the triggers of the global melt-down,
suffering instead due to monies from FII’s drying up, falling interest rates, rapidly
rising inflation and poor investor confidence. Annual reports suggest that most of the
larger Banks have begun to pick up from where they left off, albeit with more caution,
and most industry pundits are optimistic about the current fiscal year.

Growth Potential:
There are a range of retail jobs to suit most skill sets, including banking officer,
probationary officer, loan agent, assessor, mortgage loan underwriter, loan processing
officer, accountant, product marketing and sales executive, and customer service
executive among others. However, job security is not very high in retail banking as
many players suffer from shrinking margins and poor customer retention due to
increasing competition and limited market differentiation, leading to lay-offs.
Meanwhile, there are also more skilled jobs available such as actuaries analyst, equity
researcher, Forex trader, securities linked products developer and portfolio manager
for those with the relevant knowledge and ambition. The biggest opportunity in this

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sector remains in improving information flow to customers. Hence, there is a growing
emphasis on in-house research and market intelligence.

Future Prospects:
In the upcoming 12 months, hiring is likely to remain robust. Many banks are
investing in training programs to upgrade worker skills to enhance their competitive
edge in anticipation of the segment once more regaining its rightful place as the
harbinger of development and progress.

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 Competitor’s Analysis

There are many competitors into the investment market of India. Some are
described below with the services provided by them:

 Avendus Capital:
An investment bank providing mergers and acquisitions, fixed returns,
controlled finance, calculated advisory facilities and Private Equity Syndication to its
customers ranging from investors to corporate. The bank has a powerful research
competence which it utilizes to close business deals in hostile circumstances. It
presently concentrates on sectors where Indian firms have strategic expansion
advantage namely Healthcare, Pharmaceuticals, IT Services, Consumer goods,
manufacturing etc.

 Bajaj Capital:
The Bajaj Capital Group is one of the renowned Investment consultant and
Financial Planning firms in India. It is certified under the Category I of Merchant
Bankers by SEBI. Bajaj Capital provides custom-made Fiscal Planning facilities and
investment consultation to the investors, organizational investors, corporate, high
income patrons and Non-Resident Indians (NRIs).
Being one of the biggest distributors of economic goods, Bajaj provides an
extensive range of investment schemes such as general insurance, life insurance,
mutual funds, etc to both public and private institutions.

 Cholamandalam Investment & Finance Company:

A combined fiscal service provider of three firms namely Cholamandalam DBS
Finance Limited (CDFL), DBS Cholamandalam Distribution Limited and DBS
Cholamandalam Securities Limited, Cholamandalam DBS operates in 16 international
markets. DBS provides an extensive range of facilities to small and medium sized
enterprise, corporate, customers and comprehensive banking activities across Middle
East and Asia.

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  ICICI Securities Ltd:
India's biggest equity house, ICICI Securities Ltd provides back-to-back
banking solutions through its extensive distribution network to cater to the varied
needs of its retail and corporate clients. The firm is listed under the Monetary
Authority of Singapore (MAS) and Financial Services Authority, UK and has an
authoritative place in the core divisions of its functional areas such as consultant
services, fiscal good distribution, Equity Capital Markets Advisory Services, etc.

 IDFC:

Initiated in 1997 in Chennai, IDFC undertook the responsibility of providing

financial support to 332 projects accruing a profit of up to Rs 2, 20, 400 million. The
sectors under IDFC's financial assistance are infrastructure, agro-related business,
transportation, healthcare, tourism and others.

 Kotak Mahindra Capital Company:

Initiator and leader in equity capital markets, Kotak Investment Banking has
undertaken the developmental work of most ground breaking advances in the Indian
capital markets comprising the launch of book building and Qualified Institutional
Placements (QIPs) in India. The investment bank has an impressive track record of
controlling various sectors and has played a major role in the government's milestone
disinvestments.

 SBI Capital Markets:

SBICAPS is India's foremost investment bank and project consultant, aiding

local firms in capital enlistment endeavors for last many years. The firm started it
operations in 1986 and is an entirely owned subordinate of the State Bank of India.
Asian Development Bank (ADB) possesses 13.84% stakes in equity segment of
SBICAPS.

 Tata Investment Corporation Limited (TICL):

A non-banking financial company (NBFC), TICL is listed with the Reserve
Bank of India under the group of 'Investment Company'. The firm's commercial
activities constitute mainly of endowing in long-standing investments in equity of the
firms in various sectors. The chief source of return for the firm entails income on
investment trading and income accrued on dividend.
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  Yes Bank:
This Investment Banking association is engaged in the classification,
arrangement and implementation of deals for their clients in varied sectors and
nations. Some of the archetypal transactions incorporate divestitures, private equity
syndication, mergers & acquisitions and IPO consultation.

 UTI Securities Ltd.:

Endorsed as a self-regulating professional body in 1994, UTI Securities Ltd., is
one of the renowned investment bank of India. After the termination of Unit Trust of
India (UTI) Act, the total share fund of UTISEL is now controlled by superintendent
of particular enterprise of UTI. The firm has been offering all sorts of investment
associated activities which incorporates investment banking and corporate
consultation facilities.

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 Debt Syndication

Debt syndication is the process of distributing the money advanced in,

generally a large loan, to a number of companies or investors. It is common to use
debt syndication when the loan required, in order funding a company or save a
company from bankruptcy, is several million US dollars (USD).

By employing debt syndication, several banks, investment firms or other

companies share both the profits and the risk of making a large loan. A decline in the
number of available lenders has complicated debt syndication. While banks are often
the primary lenders, they can be involved in deals with less outlay, thus reducing their
risk.

Debt is that which is owed; usually referencing assets owed, but the term can
also cover moral obligations and other interactions not requiring money. In the case
of assets, debt is a means of using future purchasing power in the present before a
summation has been earned. Some companies and corporations use debt as a part of
their overall corporate finance strategy.

A debt is created when a creditor agrees to lend a sum of assets to a debtor. In

modern society, debt is usually granted with expected repayment; in most cases, plus
interest.

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 Research Methodology
Research was basically arrange for the data collection of all prospective and
existing clients, to approach these clients we had decided to meet with the
intermediaries and generate primary lead after having their basic details.

The criteria of the research were as following:

Universe : Pune
Sample Size : 200 CA’s
Sample Method : Random
Data Collection Method : Questionnaire Method
Type of data : Primary Data.

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 Learning outcomes

At present there is a huge gap between SME’s and the financial world, some of
the reason witnessed are:
 Almost 40% of SME’s could not expand their business because they could not
investors for their projects and expansion.
 The banks like State Bank of India, Punjab National Bank, Central Bank of
India etc. (having low rate of interest) are not entertaining and showing interest
to the project of these SME’s because of risk involved into them.
 Foreign investors and private banks like HDFC, IDBI and Kotak Mahindra
etc. are ready to invest into these projects of expansion; only if there
presentation is well prepared.
 Companies give least consideration to financial department and thereby
resulting into financial mismanagement.
 Finance department are generally managed by people having a limited financial
market exposure.
 Intermediaries are involved to do a specific set of activity (single transaction
job) and therefore leading to unfulfilled financial needs.
 Financial intermediaries are focused on serving large and medium sized
companies (Smaller firms are often ignored).

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 Solution by SNS India Advisory

There are few of the solutions suggested by SNS India Advisory for the firms
into current scenario. These are as following:
 With over 100 years of combined industry experience behind SNS India
Advisory team, we know what it’s like to be in business. We are proudly
independent and perfectly positioning to understand your business plans and to
help you realize them.
 We are far more flexible than traditional investment bankers. We structured
need-based solutions for businesses.
 We deliver solutions faster! We understand and respect your need of speedy
actions.
 We provide personalized services! Since we have expertise in financial
management and it’s our major strength, we are far more focused and believe
in tailoring our services to suit your requirements.

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 CHAPTER-3
 Suggestion to SNS India Advisory
 Annexure- Questionnaire
 Bibliography

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 Suggestions to SNS India Advisory

Value Addition Services SNS India Advisory can give:

 Analysis:
a) Analyzing tax and financial circumstances-
Drawing up an exhaustive balance sheet of assets and establishing their tax
position is crucial in order to enable our clients to integrate, within a comprehensive
overview, all the key components that make up their wealth: securities portfolios,
property, life assurance, pension assets or works of art for instance.
Clearly defining the interdependence between all the elements, together with
all the tax implications, will provide an initial insight into the strategic direction that
investments should take.
Optimizing the legal, tax and financial positions plays just as vital a role as
choosing the assets in which to invest, even if the latter will tend to be the key factor
influencing the return on the portfolio: returns from investments could be wiped out
if the underlying structures are inappropriate, if a succession is poorly planned for, or
if the potential tax liabilities associated with investments are miscalculated.

 Safeguarding assets and ensuring growth:

a) Financial planning-
Assets and liabilities, income and expenditure, savings and investments
both short and long-term – all are factors that must be perfectly balanced to sustain a
suitable lifestyle. In their investment approach, our clients must make allowance for
constraints, such as payment deadlines, desired cash flows or the chosen level of
liquid assets, so that all eventualities which might have an impact on their wealth can
be properly taken into consideration.

b) Choosing the right investment strategy-

In consultation with SNS India Advisory’s experienced professionals and
after ascertaining their reference frameworks, their risk profiles and, then, their end-
goals, our clients will be in a position to choose the investment strategy best suited to
them. This strategy has several facets, including the investment time frame, tax status
and circumstances, desired reference currency, likely capital inflows and withdrawals.

Viva Institute of Management Studies, Pune Page | 29

 c) Investment proposals-
The asset manager will then submit a formal investment proposal to the client,
comprising recommendations about securities, return expectations or even forecasts
adjusted according to different market conditions.

d) Asset Management-
The portfolio is managed in such a way as to ensure that the medium-to-long-
term investment goals are consistently met, in accordance with the strategy agreed
with the client. The portfolio is shaped and constructed with an eye on Pictet & Cie's
strategic and tactical assessment of the markets, the range of asset classes and
currencies.
 Control:
a) Reporting-
In the long term, periodical reviews of the client's financial circumstances and
the portfolio's performance are key to achieving the desired level of growth. The
Bank therefore uses various tools, including performance measurement, to carry out
regular checks to ensure that the investments made and the returns achieved are in
keeping with the approach and strategy stipulated. This enables the Bank to provide
clients with in-depth and detailed investment reports.

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 Annexure- Questionnaire

The questions which were used to collect information from intermediaries are
as following:

A) How many companies you are auditing:

(i) Less than 20
(ii) 20-50
(iii) 50-80
(iv) 80-100
(v) More than 100

B) The companies you are auditing, majority of that are in:

(i) SME (Small and Medium Scale Enterprises)
(ii) LSE (Large Scale Enterprises)

C) What is the average turnover of companies of you are auditing:

(i) Rs. 20-50 Crore
(ii) Rs. 50-100 Crore
(iii) Rs. 100-200 Crore
(iv) Rs. 200-300 Crore
(v) More than Rs. 300 Crore

D) Which of the following mostly you recommend to your clients for expansion:
(i) Joint Venture
(ii) Merger & Acquisition
(iii) Foreign Tie-ups
(iv) Other Please Mention………………..

E) What would you suggest them to prefer for expansion:

(i) Debts
(ii) Equities

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F) Which investment bank you are mostly prefer for the Expansion amount;
(i) Kotak Mahindra Bank
(ii) HDFC
(iii) ICICI Securities
(iv) IDFC Bank
(v) Yes Bank

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 Bibliography
 URL’s

a) www.snsindia.co.in
b) www.marketresearch.com
c) www.shine.com
d) www.scribd.com
e) www.wikipedia.com
f)

 Books

a) Marketing Management- Philip Kotler.

b) Market research- Hindustan Publishing House.
c) Investment Banking- Wall-street Banking

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