KARVY STOCK BROKING LIMITED

FARIDABAD

UNDER GUIDANCE OF SUBMITTED BY

MR. RAKESH NEGI RISHI CHATURVEDI

REGIONAL HEAD TRAINEE

CUSTOMER RELATIONSHIP

DATED

1 APRIL 2009 TO 31 MAY 2009

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 1

DECLARATION

I am Rishi Chaturvedi student of II Semester, Mathura Road,

New Delhi, Bangalore School Of Business School herby solemnly
declare that the Job Report titled Customer Relationship is the
outcome of my own report and prepared by me.

PLACE : FARIDABAD

DA TE : 31 MAY 2009.

RISHI CHATURVEDI
 2

ACKNOWLEDGEMENT

No work can be completed perfectly unless it is backed by the

blessings, hard work and sincerity of someone who is well
wisher and who stands with me in all circumstances. My Report
is no exception to it. For this report I acknowledge my profound
sense of gratitude and indebtedness to MR. Rakesh Negi for
giving me a great opportunity to work in KARVY STOCK
BROKING LIMITTED.
And lastly, I would be unjust on my part if don’t thank to my
Parent and God for their blessing and invisible helping hands.

RISHI CHATURVEDI
 3

PREFACE

These days, people frequently talk about customers relationship,

be it in private sector and public sector. But very scant attention
has been paid on this important aspect. There are set of
customers, who want to remain related with their consumer
companies where as a set of customers want a change and want
to have relationship with new or other companies. Customers
have endless questions and word spinning about the services of
the companies. We, the people running the show of companies
should pay due attention to the customer relationship, have a nag
of it with all the possible technicalities, knowledge and skills and
also hold the customers with our companies. At no stage, we
should let our customers allow to change the side. Once, we have
better relationship with customers and listen to their views, we
shall automatically be able to improve our products standards. At
times, customers are related with a certain product through a
certain agent and have, we should be able to maintain the
relationship.

Keeping above in view, the report has been written and two
objectives which are clear :-

v Keeping customers views in mind we should maintain our

customer relationship with better behavior and conduct which
will also lead way to customer satisfaction and profitability.

• With familiar and formal relations and using our knowledge,

skills and technique be able to hold the customers.
 4

CONTENTS

1. Introduction 5.

2. About Karvy Stock Broking Limited 6.

3. Services 9.

4. Policies 11.

5. Customer Relationship 12.

6. SWOT Analysis 17.

7. Required Improvement and Suggestions 22.

8. Decision Making Behavior 24.

9. Conclusion 26

10. Bibliography 27.

 5

INTRODUCTION

Karvy Stock Broking Limited, is a premier integrated

financial services provider and ranked among the leading
corporate in the country. Servicing over millions of investors
in various capacities and provides investor services to many
corporate. Karvy covers the entire spectrum of financial
services such as Stock Broking, Depository Participants,
Distribution of Financial Products such as Mutual Funds,
Bonds, Fixed Deposit, Equities, Insurance Broking,
Commodities Broking, Personal Finance Advisory Services,
Merchant Banking and Corporate Finance, Placement of
Equity, etc. among others. Karvy Stock Broking Limited has
a professional management team and ranks among the best in
technology and operations.
 6

ABOUT KARVY STOCK BROKING LIMITED

Karvy Stock Broking Limited was incorporated on 30th March

1995 having registered office at Karvy, House No. 46,
Avenue 4, Street No.1, Banjara Hills, Hyderabad, 500034.

Karvy Stock Broking Limited is a member of National Stock

Exchange Limited, Bombay Stock Exchange Limited and
Hyderabad Stocking Limited. Karvy has large number of
offices across the length and breadth of the country.

Thus, making financial services accessible to urban, semi

urban and rural investors.

We offer Broking services across the entire network on a

robust platform with sound technological support and risk
surveillance mechanism which are of a high order.

The Broking services are backed by a strong research desk a

communication cell which is very proactive to market
feedback and analyses information that flows into the capital
market which enables us to provide quality advice to our
customers. The research team comprises of technical analysts
who cover market trends and stock specific movements and
fundamental specialists who track various segments of
industry and corporate. The company has also a dedicated
research team for derivatives segment which offer various
strategies to investors in different segments. The entire
research output is communicated through daily reports which
are sent out thrice a day pre market, mid market and post
 7

market sessions. The Pre- Session Report, where market

scenario for the day is predicted, The Mid Session Report,

timed to arrive during lunch break, where the market forecast

for the rest of the day is given and the Post Session Report,

the final Report for the day, where the market and the report
itself is reviewed. To add to this repository of information, we
publish a monthly magazine KARVY - THE FINAPOLIS,
which analyses the latest Stock Market trends and takes a
close look at the various investment options like mutual
funds, insurance, commodities and products available in the
market, while weekly, reports called KARVY BAZAAR
BAATEIN and TRADE WINDS, keeps investors more
informed on the immediate trends in the Stock Market. In
addition, our specific industry reports give comprehensive
information on various industries.

We also offer special analysis packages that provide daily

technical advice on scrips for successful management and
provide customized advisory services to help us to make the
right financial moves.

Karvy Stock Broking Limited is registered with National

Securities Depository Limited (NSDL) AND Central Securities
Depository Limited (CASDL) in 1998 and offers these
services across the network.

Karvy Stock Broking Limited offering a wide trading

platform with a dual membership at both NSDL and CDSL,
we are a powerful medium for trading and settlement of
dematerialized shares. We have established live DPMs
internet access to accounts and an easier transaction process
 8

in order to offer more convenience to individual and

corporate investors.

PROMOTERS AND DIRECTORS

Mr. C Parthasarathy, a leader in the financial services

industry in India is responsible for building KARVY as one
of India’s truly integrated Financial Service provider.

Mr. M Y ugandhar, Director founder of Karvy Stock Broking

Limited group has varied experience in the field of Financial
Services spanning over 20 years.

Mr. M S Ramakrishna, founder of Karvy Stock Broking

Limited group is orchestrator of technology initiatives such as
the call center in the Service of the Customer.

Mr. Akash Mehta, is an MBA from Harvard Business School

and has more than 10 years experience in venture capital and
real estate funds.
 9

SERVICES

Karvy Stock Broking Limited provides advisory services as

per the regulations, which is in the nature of investment
advice and include the responsibility of advising on the
strategy, investment, disinvestment of the various stocks,
entirely an clients risks. This service will be purely of
advisory in nature under an agreed fee structure with the
client.

INVESTMENT

The policy is to formulate and device the investment

philosophy to achieve long term growth of capital by
investing in assets, which generates reasonable return and to
ensure liquidity. The management will vary in line with each
client profile with regard to his risk tolerance levels and
specific preferences or concerns.
 10

CAPITAL GAINS

Capital gains in two formats;

• Long term Capital Gains and

• Short term Capital Gains.

LONG TERM CAPITAL GAINS, Any investment held for

12 months or more would be classified as Long Term
Capital Assets. Gains arising out of such assets which are
called Long Term Capital Gains. Long Term Capital Gains,
arise on transfer of Long Term Capital Assets equity share in
a company or a unit of an equity is exempt from Capital
Gains Tax. These provided the shares which are sold on a
recognized stock exchanges in India.

SHORT TERM CAPITAL GAINS, Any investment held for

less than 12 months would be classified as Short Term
Capital Asset. Any Gains arise out of such investment are
known as Short Term Capital Gains. Such Gains are added
to the total income. Short Term Capital Gains arise on
transfer of Short Term Capital Asset equity shares in a
company or a unit of an equity fund.
 11

POLICIES

1. Investment in equities will be valued on closing price of

that equity at New Y ork Stock Exchange. In case of an
investment done in any equity listed on Bombay Stock
Exchange only, the same will be valued based on the
closing price of that equity in Bombay Stock Exchange.

2. In case of Mutual Fund, valuation will be done on the

repurchase of Net Asset V alue (NA V) on the date of
valuation or date report or any cut off date.

3. Transaction date will be the trade date and not the

settlement or auction date.

4. All income will be counted on accrual, whichever is

earlier.

5. Purchase and sale transactions are counted on contract

date basis.

6. Bonus shares are recorded on the ex - benefit date.

7. Dividend income is recorded on the ex - dividend date.

 12

CUSTOMER RELATIONSHIP

Customer Relationship and its Management is broadly

recognized as CRM, widely implemented strategy for
managing and nurturing a company’s interactions with
customers and sales prospects.

It involves using technology to organize automate and

synchronize business processes principally sales related
activities, but those for marketing, customer service and
technical support.

The overall goals are to find, attract and get new customers.

Many enterprises seek to grow top line revenues, improve the

customer experience and boost the productivity of customer
facing staff.

Once simply a label for a category of software tools,

Customer Relationship and its Management has matured and
broadened over the years. Today, Customer Relationship and
its Management generally denotes a company wide business
strategy embracing all customer facing department and even
beyond.

When an implementation is effective, people processes

technology work in synergy to develop and strengthen
relationships increase profitability and reduce operational
costs.
 13

Customer Service is an important differentiator and

organizations are increasingly turning to technology platform
to help them to improve their customers experience while
increasing efficiency and keeping a lid on costs.

Even so, 2009 study revealed that only 39% of corporate

executives believe their employees have the right tools and
authority to solve customer problems.

Karvy Stock Broking Limited is an established Stock

Broking firm with a strong customer base all over India.
Karvy Stock Broking Limited would like to reach out to
more investors across the country, building a good
distribution channel through business partner / associates.

Karvy Stock Broking Limited is associated with gamut of

financial services and products. As Karvy Stock Broking
Limited offers one stop investment solution, customers will
have the option of deciding the right investment products
of their choice.
 14

BENEFITS

Customer Relationship and its Management tools have been

shown to help company to attain these objectives :

1. Streamlined sales and marketing processes.

2. Higher sales productivity.

3. Added cross selling and up selling opportunities.

4. Improved customer service.

5. Increased call center efficiency.

6. Higher close rate.

7. Better customer profiling and targeting.

8. Reduced expenses.

9. Increased market share.

10. Higher overall profitability.

 15

CHALLENGES

Tools and work flows can be complex to implement,

especially for large enterprises. While some companies report
great success, initiatives have also been known to fail mainly
owing to poor knowledge and poor planning, a mismatch
between company needs, roadblocks to collaborate between
departments and a lack of workforce buy in and adoption.
 16

TRENDS

1. Monitoring and recording interactions and

communications with customers.

2. Software solutions expanded to embrace deal track

and management of accounts, territories,
opportunities and at the managerial level.

3. Most recent trend has been the growth of tools

delivered also known as cloud computing and
software as a service (SaaS).

4. Software a service (SaaS) option has proven very

attractive and its applications have generated a
large share of the market. They are currently its
fastest growing segment.

5. In 2009, software as service represented

approximately 20% of all Customer Relationship
and its Management spending and continued its
trajectory of outselling on premises software by a
ratio of 3:1.
 17

SWOT ANALYSIS

SWOT is an acronym which is used to describe those

particular Strengths, Weakness, Opportunities and Threats that
are factors for a specific company.

The external factor consists of variables opportunities and

threats that are outside the organization and not within the
short run control of top management.

These variables form the context within which the corporation

exists. They may be general forces and trends within the
overall societal or specific environmental factors which
operates within an organization’s specific tasks often called
industry.
18

INTERNAL
STRUCTURE

INDUSTRY

SOCIET AL
ENVIRON-
MENT
 19

SOCIETAL ENVIRONMENT

• Socio - Cultural Forces.

• Political - Legal Forces.

• Technological Forces.

• Economic Forces.

INDUSTRY

• Shareholders.

• Government.

• Special Interest Groups.

• Customers.

• Creditors.

• Communities.

• Trade Associations.

• Competitors
 20

• Labors / Employee.

• Suppliers.

STRENGTHS

• Experienced Top Management.

• V ertical Integration.

• Current Assets Management

• Distribution Network

WEAKNESS

• Employee Relations.

• Manufacturing Facilities.

• Process Oriented Research And Development.

• Control Over Management.

 21

OPPORTUNITIES

• Demographics favor Mass Customization.

• Economic Development In India.

• Growth In Rural And Urban Indian Market.

• Promising Auto and White Good Industry.

• Concentrating More on Customer Satisfaction.

THREATS

• Liberal Government Policies.

• New Product Policies.

• Strict Environmental Laws.

 22

REQUIRED IMPROVEMENT

1. Use Liberal Government Policies for filling up the

product Portfolio Gaps.

2. Acquire established Weak Companies for competing

Multi National Companies.

3. Use Distribution Network to cater all segments.

4. Widen Product Portfolio to cover both Domestic and

International Market, all its functions in a Professional
Manner.
 23

SUGGESTIONS

• It was observed that many customers complained that no

body meets them once the order has been executed i.e.
after Sale services proceeds. The responsibilities of
concerned person in this regard need to be defined
clearly. A team needs to be formed which only met
customers and recorded their problems on a rotation
basis.

• An online order tracking system should be in place

which will enable the customers, as well as manager to
track and trace the status of the order and the
department or personal handling at any particular
moment.
 24

DECISION MAKING BEHA VIOUR

Following statements are related to assess one’s Decision

Making Behavior Process.

Find out the extent to which you follow these in your

Decision Making Process :

1. Y ou look at any problem which is to be solved by

decision making from all the angles.

2. Y ou break up a major problem into related

components so that the problem can be understood
thoroughly.

3. Y ou diagnose the problem by taking into account its

probable effects both in short term and long term.

4. While collecting information for decision making,

you take into account the cost of collection
information and its utility for decision making.

5. While identifying and evaluating various alternatives,

you consider only those alternatives which are
promising.
 25

6. Y ou adhere to time schedule set by you for decision

making.

7. While making a decision, you also consider those

factors which are relevant for its implementation.
 26

CONCLUSION

The entire exercise of conducting the analysis during the job,

was new and it was different experience for me and I am
sure, it will help me in any professional career.

While interacting with customers at various other times by

listening and interacting with the professionals, I learnt a lot
about the aspects of marketing which I had studied during
the graduation and my first year of doing MBA.

In ability to meet delivery commitments made to its

customers, which in turn, leads to delay in system handover
and cause lot of in convenience to the customers.

I believe that 1.5 months is a very short period to judge

about business and its nature perfectly. Without an in depth
knowledge of the exact working systems in the organization
and the minute complexities involved on the day to day basis
it will be fair on my part to make brief report about an
organization KARVY STOCK BROKING LIMITED.

According to Philip Kotler, Customer Satisfaction is the main

objective of any marketing function whose efforts are aimed
at developing a Quality Relationship with its customers as
well as customer loyalty and executing all its functions in a
professional manner.
 27

BIBLIOGRAPHY

• Hunger, J. David; Rangaranjan, Krish; Wheelen, Thomas

L, Strategic Management and Business Policy, New
Delhi, Dorling Kindersley (India) Private Limited, 2006.

• Prasad, L.M., Organizational Behavior, New Delhi,

Sultan Chand and Sons, 2008.

• Kotler, C.R., Quantitative Technique, New Delhi, Vikas

Publishing House Private Limited, 1978.

• Www.Google.co.in.