GENERAL INVESTMENT PVT.LTD.
(Everyone has a right to be rich and we can make you rich)
ASIA PACIFIC INSTITUTE OF MANAGEMENT
Address: 3 & 4 Institutional Area, Jasola, Opp. Sarita Vihar,
New Delhi -110025
• GROUP NUMBER: 7
NAME ID NUMBER SLIDES
GROUP MEMBER MINAKSHI KUMARI 2K11A16 16-17
GROUP MEMBER HIMANGI BHATT 2K11A51 8-9
• Company Name- General Investment Pvt. Ltd.
• Company Profile- Investment company (people invest their
money into our company and we give them high returns
annually on their investment)
• Company VISION: ‘makes everyone financially strong’.
• Company MISSION: ‘generate profit as much as possible for
the client’s everyday’.
• Company GOAL: First class image, first class relation, and first
class service will be our goals while making a fair profit for
partners and clients.
• Company SLOGAN: ‘Everyone has a right to be rich and we
can make you rich’.
How General Investment actually
• General Investment is an investment company, in which people
invest their money and we invest their money in stock market
on a daily basis, this strategy called day trading (intraday).
• We give them good returns on their investment better than
banks, mutual funds, FD’s etc.
• Why general Investment has chosen day trading strategy. The
most obvious benefit of day trading is that you can make money
and have your profits by the end of the day.
• For a day trader who opens and closes his position before the
trading day ends, the risks of holding a stock overnight are
• A traditional trader's profits can disappear overnight with
traditional, long-term trading, but with day trading your profits
are secure as long as you close your positions before the end
of the trading day.
• At the end of the day, you know how much money you have
and you are not uncertain.
• you can gain more by investing less because of margin money.
• You will get your money(with profit or loss) back after market
closes every day. So you can start a fresh trading in next
• We have a tie up with one of
the leading brokerage firm in
Delhi. Because our business
would be done through
brokerage firm. This brokerage
firm will give us trading terminal
(software) which will help us to
trade in shares in an easy way.
And it also gives us cheap
brokerage plan which we have
to pay on each transaction of
the shares and high margin
• General Investment has segmented the target market into two distinct
groups. The groups can be differentiated by their difference in earnings and
• Less than one lac Rupees: These customers or clients are middle class
people who don’t have a strong financial position. Their annual saving
around less than 1 lac Rupees. For example- working people , college
students, small shopkeepers, housewife's etc.
• More than one lac Rupees: These customers or clients are upper middle
class people. They have amassed over one lac Rupees in annual savings
and are fairly savvy investors. These clients are generally concerned about
the rate of return of their investments. And they are ready to invest in that
companies or funds, which can give them high returns on their investment.
Small and medium business owners, retired government employees, big
business owners etc. are fall under in this segment. Our mainly focus will be
on second segment clients.
• Our target is an investment-savvy person. General Investment will use the
following strategies in the promotion of the new business to the targeted
• Strategy 1 – making Business Relationships - We feel that making
business relationship with the small and medium businesses will build our
• Strategy 2 - Web-based Promotions - Using banner advertising on
financial and social networking websites will increase brand awareness to a
much wider audience.
• Strategy 3 - Business Newspaper Advertising - Placing ads in noted
financial newspapers directing investors and businessmen to the General
• Strategy 4 – print media – we will use print media like pamphlets, yellow
pages and hoardings etc. to promote the business.
• The advertisements will be a steady way that people will become aware of
the investment as well as some visibility for the company itself. 8
• Our target would be get at least 10 clients (total investment of 10 clients
should be 5 lac Rupees) annually. We will try to get more clients every year
with high investment.
• Clients, who would invest less than 1 lac Rupees in the company, they will
get at least 20 % returns on their investment.
• Clients, who would invest more than 1 lac Rupees in the company, they will
get at least 25 % returns on their investment.
• Return on their investment would be given every year to our clients.
• Our focus would be generating high profit, 40-60% annual, on the client’s
investment. So that, we can give them high returns.
• Client would pay 25% profit as a fee to the company on their profit.
(Suppose if the client invests 1 lac rupees in the company and within a year,
if we give them 100% (1 lac Rs.) returns (profit) on their investment. then the
client has to pay 25 % (25 thousand) of his or her returns and rest of the
profit (75 thousand ) would be totally go to the client) 9
Financial Plan-Capital Structure
• Equity-Rs. 3000000
• To be contributed by self,
Rs. 500000 each
• Interest rate -14.50%
• To be repaid within 5
Expeneses Asset Investment loan
Office furniture 200000 Rs.
360000 Rs. (60000 Rs.
Laser printer, fax
machine, copier, T.V
Others 20000 Rs.
Cash in bank 350000 Rs.
Total 1000000 Rs.
Office rent 20000*12 240000 Rs.
Telephone bill 5000*12 60000 Rs.
Electricity bill 10000*12 120000 Rs.
Internet bill 5000*12 60000 Rs.
158000*12 1896000 Rs.
Website 3000*12 36000 Rs.
Advertisement --------- 300000 Rs.
2000*12 24000 Rs.
Loan payment 23533.33*12 282400 Rs.
Total 3018400 Rs.
Partners (6) 150000*12 1800000 Rs. (25
thousand each per
Peon (1) 8000*12 96000 Rs.
Total 1896000 Rs.
Asset 1000000 Rs.
Investment in stock
3000000 Rs. (each
partner invests 5 lac Rs.)
Total 4000000 Rs. 11
How company will generate the Profit ?
• Initial investment in stock market – 3000000Rs.
• Broker give us 15 times margin money on our investment
• 30 lac rupees (actual investment) would be now 4.5 Cr. Rupees.
(30 lac * 15 times = 4.5Cr.)
• If we buy 1000 shares of any company at the cost of 1000 rupees per share,
which means our total cost would be 10 lac rupees after buying 1000 shares
of that company. (1000 shares * 1000 Rs. = 10 lac)
• We have a 4.5 Cr. Rupees, which means we can buy 1000 shares of 1000
Rs (10 lac), 45 times.(4.5 Cr. / 10 lac = 45 times)
Buy / Sell Volume price Price fluctuation Total cost
Buy 1000 shares 1000 Rs. -------------------- 1000000 Rs.
Sell 1000 shares 1002 Rs. Up by 0.20 %
Profit Rs. 2000
• Share’s price can go up by 0.10% (1 Rs.), 0.30 % (3 Rs), 0.50% (5 Rs), and
1% (10 Rs) and so on, on that single day and the price can go down as well.
But we have an instrument by which we can reduce our loss, that instrument
is called stop loss order.
• If we get average profit per transaction (buying and selling) is 1300 Rs.
• 1300 Rs. * 45 times = 58500 Rs on that day.
• But risks of losses are always in this market, so we are deducting 18500 Rs.
as a loss.
• Now we have 40000Rs. as a profit but without paying brokerage and
• In every transaction, we have to pay the brokerage to the broker and some
government taxes like STT (Securities Transaction Tax), Service Tax,
Education Cess, SEBI Charges etc.
• brokerage and all government taxes is around 400Rs. on every transaction.
• we have to pay 18000Rs. in a single day as a brokerage and taxes, if we
trade 45 times. 13
• We have a profit of 22000 Rs. (40000-18000 Rs = 22000 Rs.)
• if we trade 18 days in the stock market, and our profit is 22000 Rs. in a
single day, so by the end of the month, we will have the profit of 396000 Rs.
(22000 Rs*18 days = 396000)
• It means, we will have the estimated profit of 4752000 Rs. by the end of the
• Short Term Capital Gains tax (STCG tax): We have to pay 15 %
on our profit 4752000 Rs.
• 712800 Rs. is the 15 % of the profit 4752000 Rs.
• After deducting the STCG tax, we will have a profit of 4039200 Rs.
• Profit after paying the expenses
• We have a first year expenses of our company, which is 3018400 Rs.
• After deducting the expenses, company’s annual profit would be
1020800 Rs. (4039200-3018400 = 1020800 Rs)
• Net profit of the company after paying the government tax
• Company will have to pay corporate tax, which is around 32% of the profit.
• 32 % of the profit 1020800 Rs. would be 326656 Rs.
• 694144 Rs. is the net profit of the company.
• If we use 20 times margin money, that will increase our trading transaction
45 times to 60 times, then our net profit would be 1193536 Rs.
• company net profit is 694144 Rs. which means company got 23.14% return
on its 30 lac investment (ROI). It’s a healthy return for the first year.
• (If we take second estimation of net profit which was 1193536 Rs. it shows
that company got 39.78% return on its 30 lac investment (ROI). It’s also a
healthy return for the first year)
Profit in the future
• This profit has generated from only our investment because we
are assuming that there is no client in first year of
establishment. Because we are the new company. It will take
time to get attention of the clients, if we get clients with huge
investment, company’s profit would increase.
• After getting adequate clients, there would not be needed to
spend lots of money on advertisement. It will increase the profit
of the company and after paying off the bank loan in 5 year.
Our company would be debt free. And whatever amount we
paid to the bank, from now on, that amount would be added in
the company’s profit.
• After getting investors and popularity, we will expand our
business in other cities also. This will generate employment
for others and they will get job.
• We can go into real estate business, where we will invest
money (for a long term) along with stock market, in the