INDEX
Sr. No. Contents Page Nos.
1. Disclaimer 1
2 Definitions 1
3 (i) History, Present Business & Background Of The Portfolio Manager 2
3 (ii) Background Of Promoters & Directors Of The Portfolio Manager 2
3 (iii) Top 10 Group Companies / Firms Of The Portfolio Manager On Turnover Basis 3
3 (iv) Services Offered 3
3 (v) Process and Operations Management of the Portfolio Manager 6
4. Penalties 6
5 (i) Investment Objectives & Policies 6
5 (ii) Policies for Investment in Associates and Group Companies 6
6 Risk Factors 6
7 (i) Client Representations 7
7 (ii) Disclosures On Transaction With Related Parties 8
8 Financial Performance Of The Portfolio Manager 9
9 Portfolio Manager Performance 10
10 Nature Of Expenses 12
11 Taxation 12
12 Accounting Policies 13
13 Investors Services 13
1
DECLARATIONS:
1. The Document has been filed with the Board along with the certificate in the prescribed format in
terms of Regulation 14 of the SEBI (Portfolio Managers) Regulations, 1993.
2. The purpose of the Document is to provide essential information about the portfolio services in a
manner to assist and enable the investors in making an informed decision for engaging a Portfolio
Manager.
3. This disclosure document contains the necessary information about the Portfolio Manager
required by an investor before investing, and the investor may also be advised to retain the
document for future reference.
4. All the intermediaries involved in the PMS are registered with SEBI as on the date of the
document.
5. The name, phone number, e-mail address of the Principal Officer so designated by the portfolio
manager is Mr. Rajiv Kisan Choksey, Tel: 91 22 66535000 / 9820080806, Email:
1) DISCLAIMER CLAUSE:
This document has been prepared in accordance with the SEBI (Portfolio Managers) Regulation, 1993 and is filed
with SEBI. This Document has neither been approved nor disapproved by SEBI nor has SEBI certified the
accuracy or adequacy of the contents of Document. The contents of this material do not seek to market
performance of Kisan Ratilal Choksey Shares & Securities Private Limited (hereinafter referred to as
“KRChoksey”) as a Portfolio Manager nor seeks to convey the performance/influence the opinions of investors.
This document is not for public distribution and has been furnished to you solely for your information and may
not be reproduced or redistributed to any other person. The manner of circulation and distribution of this
document may be restricted by law or regulation in certain countries and may not be circulated /distributed in
those countries without obtaining requisite approvals. Persons into whose possession this document may come
are required to inform themselves of, and to observe, such restrictions. This material is for the personal
information of the authorized recipient, and we are not soliciting any action based upon it. This report is not to be
construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an
offer or solicitation would be illegal. No person associated with KRChoksey is obligated to call or initiate contact
with you for the purposes of elaborating or following up on the information contained in this document. While we
endeavor to update on reasonable basis the information discussed in this material, there may be regulatory,
compliance, or other reasons that prevent us from doing so.
2) DEFINITIONS:
1. "Act" means the Securities and Exchange Board of India, Act 1992 (15 of 1992);
2. "Principal Officer" means an employee of the portfolio manager who has been designated as such by
the portfolio manager.
3. "Portfolio Manager " means any person who pursuant to a contract or arrangement with a client,
advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or
otherwise) the management or administration of a portfolio of securities or the funds of the client, as the
case may be and in the context of this document “KRCPMS”.
4. "Discretionary Portfolio Manager" means a portfolio manager who exercises or may, under a contract
relating to portfolio management, exercise any degree of discretion as to the investments or management
of the portfolio of securities or the funds of the client, as the case may be;
2
5. “Non-Discretionary Portfolio Manager” means a portfolio manager who exercises or may under a
contract relating to portfolio management, shall manage the funds in accordance with the directions of
the client.
6. "Regulations" means the Securities and Exchange Board of India (Portfolio Managers) Regulations,
1993.
DESCRIPTION:
3 (i) HISTORY, PRESENT BUSINESS & BACKGROUND OF THE PORTFOLIO MANAGER:
The Company, KISAN RATILAL CHOKSEY SHARES & SECURITIES PRIVATE LIMITED was
incorporated on 23rd
June, 1997 in the state of Maharashtra. The company commence the business of share
broking on corporatization of Mumbai Stock Exchange Membership Card of KRC&CO. Partnership firm which
started share broking in 1979. The Company is owned by Kisan R. Choksey and his family which includes
Ramesh R. Choksey and their family members. The Company is the Corporate Member of Bombay Stock
Exchange Ltd. (BSE), National Stock Exchange of India (NSE) and MCX Stock Exchange (MCX-SX).
Prior to Corporatization, the partnership firm was in the stock broking and investment related services for 19
years. Registered Office of the Company is at 1102, Stock Exchange Tower, Dalal Street, Mumbai – 400 001 &
Corporate Office is at Abhishek, C 5 & 6, 5th Floor, Dalia Industrial Estate, Link Road, Andheri (West),
Mumbai – 400 058 and has channel partners at 165 different locations across India.
The promoters of the Company, Choksey family holds vast experience in the field of capital market. Shri Kisan
Ratilal Choksey was the Trustee of the Mumbai Stock Exchange prior to Corporatisation. Even prior to the
corporatization of the Mumbai Stock Exchange Card, the Choksey family held membership of Bombay Stock
Exchange Ltd. (BSE) for decades. The group also has interest in Life Insurance & General Insurance business as
agents through its Corporate Associate KRC Insurance Advisors Pvt. Ltd.
3 (ii) BACKGROUND OF PROMOTERS & DIRECTORS OF THE PORTFOLIO MANAGER:
Name Qualification Experience
KISAN RATILAL CHOKSEY B.Com More than 40 years in the field of broking, investment, financial services and Advisory broking.
RAMESH RATILAL CHOKSEY Inter Science More than 40 years in the field of broking, investment, financial services and Advisory broking.
DEVEN RAMESH CHOKSEY B.Com. More than 20 years in the field of broking, investment, financial services and Advisory broking.
RAJIV KISAN CHOKSEY B. Com. More than 15 years in the field of broking.
3
3 (iii) TOP 10 GROUP COMPANIES/ FIRMS OF THE PORTFOLIO MANAGER ON TURNOVER BASIS.
Name of the Company
Address Phone Numbers
Type of Activities Handled
Ownership Details
Total Income for the F.Y. 2015-16
Nature of Interest of Promoter/ Director
Nature of Interest of Applicant Company
KRC Insurance Advisors Pvt. Ltd.
1102, Stock Exchange Tower Dalal St., Mumbai 400 001 66338050
Insurance Advisory and Agency Services
98.4% owned by KR Choksey Investment Managers Pvt.Ltd./ Choksey Family
58.02 (Lakhs)
Promoter / Director – Mr. Kisan R.Choksey, Ramesh R.Choksey, Deven R. Choksey
Nil
Kisan Ratilal Choksey & Co. (Registered Partnership Firm)
1102, Stock Exchange Tower Dalal St., Mumbai 400 001 66338050
Trading And Investments
100% owned by Choksey Family (partners)
175.92 (Lakhs)
Mr Deven Choksey, Mr Het D. Choksey , Naina and Ramesh Choksey Family Trust , Mr Ramesh Choksey , Mr Kisan Choksey , Mona Choksey , Ankita Choksey & Mr Rajiv Choksey are the partners of the firm.
Nil
K. R. Choksey Commodity Brokers Pvt.LTd.
1102, Stock Exchange Tower Dalal St., Mumbai 400 001 56338050
Trading & Investment in Commodities Exchange
98.50% owned by KR Choksey Investment Managers Pvt.Ltd./ Choksey Family
18.30 (Lakhs)
Promotor / Director – Mr. Kisan R.Choksey, Ramesh R.Choksey, Deven R. Choksey
Nil
K. R. Choksey Investment Manager .Pvt Ltd.
1102, Stock Exchange Tower Dalal St., Mumbai 400 001 56338050
Investment Management
98.01% owned by Kisan Ratilal Choksey & Co./Choksey Family
42.80 (Lakhs)
Promoter / Director – Mr. Kisan R.Choksey, Ramesh R.Choksey, Deven R. Choksey
Nil
Padmesh Tradelink Pvt. Ltd.
1102, Stock Exchange Tower Dalal St., Mumbai 400 001 56338050
Financing activity
96 % owned by KR Choksey Investment Managers Pvt.Ltd./ Choksey Family
160.19 (Lakhs)
Promoter / Director – Mr. Kisan R.Choksey, Ramesh R.Choksey, Deven R. Choksey
Nil
K R Choksey Realty LLP
1102, Stock Exchange Tower Dalal St., Mumbai 400 001 56338050
Realty Sector
100% owned by Choksey Family (Partners)
1.20 (Lakhs)
Mr. Deven Choksey Mr. Ramesh Choksey, Mr. Kisan Choksey, Mr.Rajiv K.Choksey, Mr. Het Deven Choksey, Kisan Ratilal Choksey SHARES & SECURITIES Pvt Ltd. are the partners of the firm
Nil
4
3 (IV) DETAILS OF SERVICES OFFERED:
We offer the following services:
(I) DISCRETIONARY - PORTFOLIO MANAGEMENT (DPM).
In this product funds will be managed by KRCPMS, on behalf of its clients on discretionary basis. It
shall be the endeavor of KRCPMS to maximize returns for its clients, in consonance with the client
risk profile. Here funds will be predominantly invested in Equities. However, the Portfolio Manager
may invest funds in debts, government securities, derivative instruments, units of mutual funds,
money market instruments, Exchange Traded Fund as per the risk profile of the customer,
depending upon the circumstances and the needs of time.
Client will offered the following options under DPM:
KRChoksey – Diversified Equity
Investment Objective
The investment objective would be to generate long term capital growth from an actively
managed portfolio of equity and equity related instrument primarily in the large-cap stocks.
Investment Strategy
The stock selection would focus predominantly on large-cap stocks which would deliver stable
returns over a period of time at a lower volatility. KRChoksey will pursue a top-down
investment approach, identifying initially industries/sectors that would do well over the
investment horizon and then identifying investment candidates within the same. The fund
managers will have the discretion to have a marginal exposure to mid-cap and small-cap ideas,
although it may predominantly (80-90%) invest in large-cap stocks.
The Fund manager at his/her discretions hedge the portfolio of the clients in derivatives market
not exceeding the amount of fund invested & as permitted in SEBI(Portfolio manager)
amendment regulation 2003 dated 5th
Feb 2003.
The fund manager at his/her discretion invests the surplus fund (kept aside for investment) in
money market investment till such time the surplus funds are invested.
KRChoksey – Emerging Cap
Investment Objective
The investment objective would be to generate long term capital growth from an actively
managed portfolio of equity and equity related instrument primarily in the mid-cap stocks.
Investment Strategy
The stock selection would focus predominantly on mid-cap and small-cap stock which has the
potential to deliver superior risk adjusted returns. KRChoksey will pursue a bottom-up
investment approach seeking to identify promising investment ideas. Mid-cap stocks are
susceptible to higher volatility and higher risks as compared to large-cap stocks and this risk
will be mitigated by ensuring ample diversification across a spectrum of mid-cap stocks.
The Fund manager at his/her Discretions hedge the portfolio of the clients in derivatives market
not exceeding the amount of fund invested & as permitted in SEBI(Portfolio manager)
amendment regulation 2003 dated 5th
Feb 2003.
The fund manager his/her Discretion invest the surplus fund (kept aside for investment) in
money market investment till such time the surplus funds are invested.
5
KRChoksey – Flexicap
Investment Objective
The investment objective would be to generate long-term capital growth from an actively
managed portfolio of equity and equity related instrument for resident and non resident clients
Investment Strategy
The stock selection would focus on companies having excellent business formation; track
record and sound dividend pay out. We will pursue a bottoms-up investment approach seeking
to identify promising investment ideas. The flexi cap approach would help us invest in stocks of
different capitalization segments and get the benefits of risk diversification.
The Fund manager at his/her Discretions hedge the portfolio of the clients in derivatives market
not exceeding the amount of fund invested & as permitted in SEBI(Portfolio manager)
amendment regulation 2003 dated 5th
Feb 2003.
The fund manager his/her Discretion invest the surplus fund (kept aside for investment) in
money market investment till such time the surplus funds are invested.
KRChoksey - Short Term
Investment Objective
The objective will be to generate short-term capital growth from an actively managed portfolio
of equity and equity related instruments.
Investment Strategy
The stock /index selection would focus on liquid counters which have the potential to deliver
superior risk adjusted returns. KRChoksey will pursue a combination of technical and
quantitative techniques in order to identify the oversold/ overbought shares/ indices. The
strategy is usually contrarian in nature, however sticks to the basic principles of investing – buy
low, sell high.
The Fund manager at his/her Discretions hedge the portfolio of the clients in derivatives market
not exceeding the amount of fund invested & as permitted in SEBI(Portfolio manager)
amendment regulation 2003 dated 5th
Feb 2003.
The fund manager his/her Discretion invest the surplus fund (kept aside for investment) in
money market investment till such time the surplus funds are invested.
KRChoksey Vision Infrastructure
Investment Objective
The investment objective would be to generate long term capital growth from a passive
managed portfolio of equity and equity related instrument primarily in the mid-cap stocks.
Investment Strategy
The stock selection would focus predominantly on mid-cap stock which has the potential to
deliver superior risk adjusted returns in Infrastructure space. KRChoksey will pursue a bottom-
up investment approach seeking to identify promising investment ideas. Mid-cap stocks are
susceptible to higher volatility and higher risks as compared to large-cap stocks and this risk
will be mitigated by ensuring ample diversification across a spectrum of mid-cap stocks.
The Fund manager at his/her Discretions hedge the portfolio of the clients in derivatives market
not exceeding the amount of fund invested & as permitted in SEBI(Portfolio manager)
amendment regulation 2003 dated 5th Feb 2003.
The fund manager his/her Discretion invest the surplus fund (kept aside for investment) in
money market investment till such time the surplus funds are invested
6
KRChoksey Vision Structured Product - Series I
Investment Objective
The investment objective to provide capital protection with fixed return by investing in Secured
Redeemable Non- Convertible Debenture (Debentures listed on the BSE WDM segment) and
participation in Nifty after a certain hurdle rate.
Investment Strategy
Investment in debentures which will be secured partly by way of creation of charge on
immovable property and partly by way of hypothecation / floating charge on the current assets
and / or receivables and / or other movable tangible and / or intangible assets and/or any other
asset of the issuer and / or its affiliates subject to the satisfaction of the debenture trustee.
(II) NON-DISCRETIONARY PORTFOLIO MANAGEMENT (NDPM)
The funds will be under the control of the PMS client and the Portfolio Manager shall try to
maximize the return for its clients by providing advisory services to the PMS Client. The buy/sale/
hold decision will be taken by the client and the return on these investments will largely depend on
the acceptance of advisory services and implementation thereof, by the client.
3(V) PROCESS AND OPERATIONS MANAGEMENT OF THE PORTFOLIO MANAGER:
Under the DPM Service, the discretion to make investment decisions lies with the Portfolio Manager. The
process of funds management by the Portfolio Manager is as under:
i. Enter into Portfolio Management Agreement with the clients; at this stage the client is given a
choice of the fee structure viz. Fixed Percentage/Performance Linked/combination of both.
ii. The PMS client will have to open broking account, bank account, with the bank chosen and
Demat account with the Depository participant and the said accounts shall be managed by
KRCPMS under Power of Attorney.
iii. In case of Non-resident clients, the Client will have to open separate bank account. The
Custodial services will be offered by Depository Participant. The Portfolio Manager shall
manage then accounts under Power of Attorney.
iv. A monthly unaudited statement listing the client’s funds position and the performance of the
Fund will be sent to the client.
v. An annual audited statement listing the client’s funds position and the performance of the Fund
will be sent to the client.
vi. As per the SEBI guideline dated August 11, 2008 we have discontinued managing on the pool
basis with effect from 11 Feb 2009. KRCPMS shall get the transactions of all Clients executed
through the Non-Pool based system , where the order will be placed either on Individual Client
basis or on the Pool based but the bank accounts and the DP accounts of Customers are
maintained separately thereby ensuring the trail and individual identification of shares and
Funds of each client .
7
4) PENALTIES:
i.) All cases of penalties imposed by the Board or the directions issued by the Board under the Act or Rules or
Regulations made there under.
Penalty levied by Securities Exchange Board of India for non settlement of client’s account during 20011-12 of Rs. 35 lakhs, has been paid within the stipiulated time.
ii.) The nature of the penalty/direction.
For non settlement of clients account as per the consent.
iii.) Penalties imposed for any economic offence and/ or for violation of any securities laws.
No penalties other than as stated above have been imposed against us.
iv.) Any pending material litigation / legal proceedings against the Portfolio Manager / key personnel with
separate disclosure regarding pending criminal cases, if any.
Nil
v.) Any deficiency in the systems and operations of the Portfolio Manager observed by the Board or any
regulatory agency. –
No such observation raised by SEBI during the disclosure period. (October 2015 to March 2016)
vi.) Any enquiry/ adjudication proceedings initiated by the Board against the Portfolio Manager or its directors,
principal officer or employee or any person directly or indirectly connected with the Portfolio Manager or
its directors, principal officer or employee, under the Act or Rules or Regulations made thereunder.
Same as mentioned above
5) (I) INVESTMENT OBJECTIVE AND POLICIES:
Our objective is primarily to:
1. Preserve Capital and
2. Achieve better returns than the appropriate benchmarks.
We invest in well – researched stocks and follow a bottom up approach for stock selection. We also have a strong
focus on asset allocation. We believe that markets are fairly volatile and this volatility requires a dynamic
approach to funds management. We understand that client needs are different and hence we try and customize our
services to the needs of our clients. We constantly conduct an unbiased review of client portfolios and inculcate a
high level of sell discipline in our portfolio management approach. We maintain the highest level of
confidentiality and transparency in all our transactions and we provide clients with comprehensive reports that
include holding statements, performance statements, capital gains statements, sauda summary and broker reports.
5) (II) POLICIES FOR INVESTMENT IN ASSOCIATES AND GROUP COMPANIES:
KRCPMS will not invest funds of its clients in any company, which is associated with Kisan Ratilal Choksey
Shares & Securities Pvt. Limited or any of its group companies, directly or indirectly.
6) RISK FACTORS
1. Securities investments are subject to market risk and there is no assurance or guarantee that the
objectives of the product will be achieved.
2. Past performance of the portfolio manager does not indicate the future performance of the portfolio
manager.
8
3. Various factors which impact the value of the Portfolio Investment include, but are not limited to,
fluctuations in the equity markets, prevailing political and economic environment, changes in
government policy, factors specific to the issuer of the securities, tax laws, liquidity of the underlying
instruments, settlement periods, trading volumes etc. Investment decision made by the Portfolio
Manager may not always be profitable.
7) (I) CLIENT REPRESENTATION:
KRChoksey commenced PMS services from 1st April, 2005. The details as on 31stMarch 2016 are given below:
(Upto 31st December 2008 KRCPMS was managed on Pool basis which has been discontinued as per the SEBI
guideline is now being managed on individual basis.)
Category of clients Diversified Equity Emerging Cap Vision Structured Product
Discretionary No. of
clients
Funds
managed
(Corpus)
(Rs. Cr.)
No. of
clients
Funds
managed
(Corpus)
(Rs. Cr.)
No. of
clients
Funds managed
(Corpus)
(Rs. Cr.)
Associates/group
companies Nil Nil Nil Nil Nil Nil
Others 08 6.78 15 16.75 Nil Nil
Category of clients Flexi-cap Vision Infrastructure Short Term
Discretionary No. of
clients
Funds
managed
(Corpus)
(Rs. Cr.)
No. of
clients
Funds
managed
(Corpus)
(Rs. Cr.)
No. of
clients
Funds managed
(Corpus)
(Rs. Cr.)
Associates/group
companies Nil Nil Nil Nil Nil Nil
Others 11 16.19 Nil Nil Nil Nil
Category of clients Diversified Equity Emerging Cap Vision Structured Product
Non-Discretionary No. of
clients
Funds
managed
(Corpus)
(Rs. Cr.)
No. of
clients
Funds
managed
(Corpus)
(Rs. Cr.)
No. of
clients
Funds managed
(Corpus)
(Rs. Cr.)
Associates/group
companies Nil Nil Nil Nil Nil Nil
Others Nil Nil Nil Nil Nil Nil
Category of clients Flexi-cap Vision Infrastructure Short Term
Non-Discretionary No. of
clients
Funds
managed
(Corpus)
(Rs. Cr.)
No. of
clients
Funds
managed
(Corpus)
(Rs. Cr.)
No. of
clients
Funds managed
(Corpus)
(Rs. Cr.)
Associates/group
companies Nil Nil Nil Nil Nil Nil
Others 41 38.09 Nil Nil Nil Nil
9
7(ii) DISCLOSURES ON TRANSACTION WITH RELATED PARTIES:
a) Names of related parties and description of Relationship.
Sr. No. Nature of Relationship and Name of related Parties
1 Enterprise over which Key Management Personnel exercise significant influence.
Kisan Ratilal Choksey & Co.
KRC Insurance Advisors Pvt. Ltd
K. R. Choksey Investment Managers Pvt. Ltd
K. R. Choksey Commodity Brokers Pvt. Ltd.
Ratilal K. Choksey Charitable Trust
K R Choksey Realty LLP
HET CHOKSEY ADVISORS LLP
Padmesh Tradelink Private Ltd.
2 Key Management Personnel (Directors / Partners)
Shri. Kisan Ratilal Choksey
Shri. Ramesh Ratilal Choksey
Shri. Deven Ramesh Choksey
Shri. Rajiv Kisan Choksey
10
b) Details of Transactions with related parties. (audited)
Sr. No.
Name of Related Party Nature of Transaction Balance as on 1st April,
2015
Debit Credit Balance as on 31st March,
2016
1 KISAN RATILAL CHOKSEY & CO.
Rent* -
1,500,000
-
-
Deposit for premises 44,500,000
- 18,000,000
62,500,000
Share Trading Account 5,570
3,435,547
3,439,766
1,351
Loans given/Repayment Received -
32,000,000
32,000,000
-
2 K. R. Choksey Investment Managers Pvt. Ltd.
Management Service Fees* -
1,619,300
-
-
3 K. R. Choksey Commodity Brokers Pvt. Ltd.
Lease rent of car* -
347,106
-
-
Research Expense* -
650,000
-
-
4 KRC INSURANCE ADVISORS LTD
Interest on Unsecured Loan* -
8,438 -
-
Share Trading Account -
89,281 89,281
-
5 Padmesh Tradelink Private Ltd.
Share Trading Account -
174,196
-
174,196
Interest on secured Loan* -
135,051
-
-
Loan secured against shares -
- 20,000,000
20,000,000
6 K R Choksey Realty LLP Rent* -
120,000
-
-
Partners' Current A/c 9,838,750
- 850,000
10,688,750
7 HET CHOKSEY ADVISORS LLP Management Service Fees* -
100,000
-
-
8 Kisan Ratilal Choksey Remuneration* -
450,000 -
-
9 Ramesh Ratilal Choksey Seating Fees* -
720,000 -
-
10 Deven Ramesh Choksey Remuneration* -
187,500 -
-
11 Rajiv Kisan Choksey Remuneration* -
1,350,000 -
-
11
* * These items are pertains to the Profit & Loss accoun t and therefore accordingly debited or credited in Profit
and Loss Account for the expenses incurred or income earned respectively
8) FINANCIAL PERFORMANCE OF THE PORTFOLIO MANAGER:
Kisan Ratilal Choksey Shares & Securities Private Limited has a net worth of Rs. 4063.96 and has a Profit
before Tax of Rs. 34.15 Lacs (Profit) based on audited figures from the Balance Sheet and Profit/ Loss as on
31st March 2016.
9) PORTFOLIO MANAGEMENT PERFORMANCE OF THE PORTFOLIO MANAGER FOR THE
LAST THREE YEARS, AND IN CASE OF DISCRETIONARY PORTFOLIO MANAGER
DISCLOSURE OF PERFORMANCE INDICATORS CALCULATED USING WEIGHTED AVERAGE
METHOD IN TERMS OF REGULATION 14 OF THE SEBI (PORTFOLIO MANAGERS)
REGULATIONS, 1993:
KRCPMS commenced PMS services since 1st April, 2005. The details as on 30th
September 2015 are given
below. (As on 31st December 2008 KRCPMS were managed on scheme basis which has been discontinued as
per the SEBI guideline dated 11th
August, 2008 with effect from 11th
February, 2009)
Performance of Portfolio Manager including Discretionary & Non Discretionary Portfolio:
Returns are calculated as per Weighted Average Method (XIRR)
(Figures in %)
Period KRC PMS SENSEX Nifty S&P CNX500
18.07.05 to 31.03.06 30.36 54.75 54.80 49.19
01.04.06 to 31.12.06 12.95 24.63 19.76 17.17
01.01.07 to 31.08.07 10.31 11.42 12.69 12.76
01.08.07 to 30.11.07 21.39 26.38 29.10 31.17
01.12.07 to 31.03.08 -23.24 -18.74 -17.36 -20.76
01.04.08 to 30.06.08 -11.58 -13.82 -14.53 -16.13
01.07.08 to 31.12.08 -40.58 -28.55 -26.98 -28.56
01.01.09 to 30.06.09 40.26 49.67 44.46 50.51
01.07.09 to 31.12.09 20.61 20.41 21.13 24.69
01.01.10 to 30.06.10 4.77 1.09 1.87 1.82
01.07.10 to 31.12.10 3.23 15.96 15.58 11.91
01.01.11 to 31.03.11 -10.47 -5.31 -5.02 -6.48
01.04. 11 to 30.09.11 -21.40 -15.30 -15.20 -13.90
01.10. 11 to 31.03. 12 7.09 5.67 7.00 5.93
01.04. 12 to 30.09.12 -3.44 7.36 7.23 6.21
01.10. 12 to 31.03.13 -10.07 0.76 0.02 -0.93
01.04. 13 to 30.09.13 -1.83 2.96 1.00 -1.00
01.10. 13 to 31.03.14 28.65 15.59 16.97 19.04
01.04. 14 to 30.09.14 39.04 19.36 19.20 23.45
01.10. 14 to 31.03.15 6.61 5.06 6.69 8.86
01.04. 15 to 30.09.15 -1.99 -6.47 -6.41 -4.76
01.10. 15 to 31.03.16 -10.41 -3.41 -2.84 -3.70
01.04. 16 to 30.09.16 18.76 9.37 10.07 14.09
Performance of Discretionary PMS:
Returns are calculated as per Weighted Average Method (XIRR)
(Figures in %)
Product Period KRC
PMS SENSEX Nifty
S&P
CNX500
Diversified Equity
16.09.05 to 31.03.06 27.44 37.80 37.66 34.15
01.04-06 to 31.12.06 8.11 23.00 17.60 14.48
12
01.01.07 to 31.08.07 17.19 16.60 17.20 17.66
01.08.07 to 30.11.07 25.19 26.31 29.03 31.17
01.12.07 to 31.03.08 -24.05 -19.30 -18.03 -21.45
01.04.08 to 30.06.08 -13.75 -13.89 -14.60 -16.23
01.07.08 to 31.12.08 -39.16 -28.29 -26.76 -28.32
01.01.09 to 30.06.09 41.40 50.38 45.16 51.33
01.07.09 to 31.12.09 17.30 20.50 21.20 24.71
01.01.10 to 30.06.10 4.69 -0.15 0.61 0.28
01.07.10 to 31.12.10 5.12 15.81 15.41 11.72
01.01. 11 to 31.03.11 -13.73 -5.31 -5.03 -6.49
01.04. 11 to 30.09.11 -20.60 -15.70 -15.60 -14.30
01.10. 11 to 31.03. 12 5.48 5.78 7.13 6.10
01.04. 12 to 30.09.12 -3.04 7.38 7.26 6.22
01.10. 12 to 31.03.13 -2.92 1.89 1.26 0.93
01.04. 13 to 30.09.13 -4.71 3.41 1.55 -0.39
01.10. 13 to 31.03.14 28.67 15.55 16.93 19.00
01.04. 14 to 30.09.14 42.25 19.62 19.43 23.98
01.10. 14 to 31.03.15 -6.04 -1.13 0.27 3.07
01.04. 15 to 30.09.15 -4.23 -8.13 -7.99 -6.25
01.10. 15 to 31.03.16 -0.97 -3.24 -2.77 -3.03
01.04. 16 to 30.09.16 17.07 6.96 8.19 11.79
Emerging Cap
18.07.05 to 31.03.06 29.67 55.43 55.52 49.78
01.04.06 to 31.12.06 12.36 24.75 19.93 17.37
01.01.07 to 31.08.07 10.27 10.60 12.10 12.16
01.08.07 to 30.11.07 20.64 26.61 29.61 31.35
01.12.07 to 31.03.08 -22.44 -18.26 -16.86 -20.12
01.04.08 to 30.06.08 -10.08 -13.59 -14.33 -15.91
01.07.08 to 31.12.08 -40.32 -28.29 -26.70 -28.28
01.01.09 to 30.06.09 40.41 50.26 45.08 51.13
01.07.09 to 31.12.09 22.22 20.3 21.02 24.59
01.01.10 to 30.06.10 5.66 1.22 2.02 1.98
01.07.10 to 31.12.10 2.39 15.95 15.57 11.99
01.01. 11 to 31.03.11 -9.96 -5.50 -5.21 -6.66
01.04. 11 to 30.09.11 -20.40 -15.50 -15.30 -14.10
01.10. 11 to 31.03. 12 7.92 5.73 7.07 6.02
01.04. 12 to 30.09.12 -3.22 7.40 7.27 6.24
01.10. 12 to 31.03.13 -10.64 0.53 -0.23 -1.33
01.04. 13 to 30.09.13 1.04 2.71 0.71 -1.35
01.10. 13 to 31.03.14 28.41 15.62 17.00 19.06
01.04. 14 to 30.09.14 42.76 19.49 19.31 23.55
01.10. 14 to 31.03.15 9.36 5.56 7.20 9.32
01.04. 15 to 30.09.15 0.97 -6.34 -6.30 -4.67
01.10. 15 to 31.03.16 -8.51 -3.33 -2.89 -3.19
01.04. 16 to 30.09.16 19.16 9.96 11.28 14.61
Flexi Cap 01.08.05 to 31.12.06 13.24 28.23 26.01 28.73
01.01.07 to 31.08.07 9.41 21.79 20.53 19.94
01.08.07 to 30.11.07 31.47 26.40 29.09 31.20
13
01.12.07 to 31.03.08 -23.44 -19.71 -18.30 -22.05
01.04.08 to 30.06.08 -13.94 -14.70 -15.29 -16.97
01.07.08 to 31.12.08 -40.61 -29.54 -27.99 -29.62
01.01.09 to 30.06.09 39.75 48.49 43.03 49.22
01.07.09 to 31.12.09 18.85 20.65 21.36 24.89
01.01.10 to 30.06.10 3.10 1.44 2.21 2.25
01.07.10 to 31.12.10 3.89 16.04 15.64 11.84
01.01. 11 to 31.03.11 -10.13 -5.04 -4.76 -6.23
01.04. 11 to 30.09.11 -23.20 -14.80 -14.70 -13.40
01.10. 11 to 31.03. 12 6.46 5.52 6.83 5.72
01.04. 12 to 30.09.12 -3.98 7.28 7.15 6.15
01.10. 12 to 31.03.13 -15.25 0.55 -0.19 -1.20
01.04. 13 to 30.09.13 -6.18 3.10 1.16 -0.82
01.10. 13 to 31.03.14 29.14 15.54 16.92 19.00
01.04. 14 to 30.09.14 30.64 19.06 18.94 23.15
01.10. 14 to 31.03.15 3.05 5.01 6.65 8.82
01.04. 15 to 30.09.15 -6.95 -6.24 -6.18 -4.54
01.10. 15 to 31.03.16 -12.83 -3.48 -2.81 -4.14
01.04. 16 to 30.09.16 18.76 9.38 10.72 14.11
Short term
07.11.07 to 30.11.07 31.47 26.40 29.09 31.20
01.12.07 to 31.03.08 -33.60 -24.25 -23.25 -28.89
01.04.08 to 30.06.08 -22.00 -13.90 -14.62 -16.24
01.07.08 to 31.12.08 -53.15 -28.39 -26.82 -28.41
01.01.09 to 30.06.09 31.85 35.95 33.47 36.62
01.07.09 to 31.12.09 3.33 20.67 21.37 25.09
01.01.10 to 30.06.10 -0.89 -2.16 -1.25 -1.12
01.07.10 to 31.12.10 7.73 14.58 14.44 12.09
01.01. 11 to 31.03.11 -4.66 -5.19 -4. 90 -6.37
01.04. 11 to 30.09.11 -10.00 -5.30 -5.30 -3.60
01.10. 11 to 31.03. 12 CLOSED
Vision Infrastructure 01.04. 11 to 30.09.11 -21.11 -11.20 -11.20 -11.00
01.10. 11 to 31.03. 12 -0.36 5.67 7.00 5.96
01.04. 12 to 30.09.12 -8.51 7.80 7.69 6.68
01.10. 12 to 31.03.13 -18.46 0.39 -0.36 -1.46
01.04. 13 to 30.09.13 -21.09 3.47 1.46 -0.69
01.10. 13 to 31.03.14 30.72 15.27 16.75 18.44
01.04. 14 to 30.09.14 CLOSED
Note: The Portfolio Manager has also launched various Series under the KRChoksey Vision Structured
Products. The Portfolio Products under the different Series have different tenures and the returns will
be known only on maturity and hence are not provided above.
10) NATURE OF EXPENSES:
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1. Investment management and advisory fees: Investment management and advisory fees are charged on the
basis of portfolio value on quarterly basis.
2. Custodian fee: At present, custodian fees are charged to clients as the custodian has Custody of client’s
portfolio. As we have moved towards Non-Pool based execution the back office operation of the
services has been outsourced to the custodian/third party KPO. We therefore charge custodian/handling
fees to the clients as and when applicable. In addition, administrative fees are also charged from Clients.
3. Registrar and transfer agent fee: Registrar and transfer agent fee as applicable are charged at actual.
4. Management Fees: Refer Annexure I
5. Brokerage and transaction cost: Brokerage and transaction cost are detailed below: Cash market: upto
1.00 % + service tax + securities transaction tax + transaction charges + other charges . Derivatives
market: upto 0.25 % + service tax + securities transaction tax + transaction cost + other charges .
6. Demat charges: Demat charges are payable as per DP plan at actual as charged by the depository
participant to the clients accounts.
7. Bank charges: Bank charges are payable at actual as charged by the bank and / or depository participant.
8. Legal Fees: Legal fees are payable at actual as charged by the concerned agency.
9. Stamp Duty: Stamp duty are payable at actual rates.
10. Administration cost: Total Administration cost would be at the prevalent applicable rates.
11. All other costs, fees, charges and expenses incurred by the Portfolio Manager or any other person
appointed by the Portfolio Manager arising out of or in connection with or in relation to the management,
acquisition, holding, custody, sale and/or transfer, of the Assets or the rendering of the Portfolio
Management services or the performance of any act pursuant to or in connection with the Client
Agreement shall be paid or reimbursed by the Client.
11) TAXATION:
Income from investments in securities can be classified in two ways:
1. Dividend Income – For the current financial year, dividend income is tax-free in the hands of the
recipient. Future taxation will be determined by prevailing laws.
2. Capital Gains – Shall be taxed in accordance with the prevailing laws. Long term Capital Gain where the
securities are held for more than one year in respect of Listed Securities is exempt from tax.
3. According to Section 94(7) of the Income tax Act, 1961 if any person buys or acquires shares within a
period of three months prior to the record date fixed for declaration of dividend and sell the same within
a period of three months from such record date, then losses if any arising from such sale shall, to the
extent of dividend received, be ignored for the purpose of computing the loss.
4. Losses under the head Capital Gains cannot be setoff against income under any other head. Long Term
capital Losses cannot be setoff against Short Term Capital Gain. Short Term capital Losses can be setoff
against Long Term Capital Gain.
5. Transactions in Derivative Market will not be construed as Speculation Business.
6. It shall be the client’s responsibility to pay the advance tax installments on the due dates as per Income
Tax Act.
7. If any tax is required to be withheld on account of any future legislation, the Portfolio Manager shall be
obliged to act in accordance with the regulatory requirement in this regard
12) ACCOUNTING POLICIES:
We maintain separate books of accounts on behalf and for the clients. The Accounts shall be maintained on
Mercantile System and shall be in compliance with all the prescribed Accounting Standards prescribed by the
Institute of Chartered Accountants of India. The following Accounting policy will be applied for the Portfolio
Management Service:
1. Investment in Equities/Derivatives and Mutual Funds will be valued at the closing market prices of the
exchange (BSE/NSE as the case may be) or the Repurchase Net Asset Value declared for the relevant
15
Fund on the date of the report or any cut off date. Alternatively, the last available prices on the exchange
or the most recent NAV will be used for valuation
2. Realised gain/losses will be calculated by First in First out (FIFO) method.
3. Dividend on shares and units in mutual funds shall be accounted on when right to receive such dividend
is established.
13) Broker:
Please note that the Portfolio Manager is taking broking service from Kisan Ratilal Choksey Shares & Securities
Pvt. Ltd. for the PMS clients. Kisan Ratilal Choksey Shares & Securities is registered as a Stock Broker and a
Depository Participant with SEBI.
It provides/will provide inter-alia, the following services:
1. Broking Services as a member of BSE (INB/F010975834) , NSE (INB/F/E 230975832) and MCX-SX. -
(INB/F/E260975835)
2. Depository Services as a participant of the CDSL. (IN-DP-CDSL-07-99)
3. Portfolio Management Services as a Portfolio Manager registered under the SEBI (Portfolio Managers)
Regulations 1993. - (INP000001124)
The Portfolio Manager shall avail the aforesaid services of securities broking and depository in managing the
portfolio of the Clients. The Client will bear the cost of these services.
14) INVESTOR SERVICES:
1. Name, address and telephone number of the investor relations’ officer who shall attend to investor
queries and complaints.
2. Mr. Vikash Khemka, Abhishek, C-5 & 6, 5th Floor, Dalia Industrial Estate, Link Road, Andheri (W),
Mumbai - 400 058. Tele: 022-66965555 and email: [email protected]
3. Grievance redressed and dispute settlement mechanism.
4. Any and all disputes arising out of or in connection with the provision of services as a portfolio manager
shall be settled by arbitration by a single Arbitrator to be appointed by KRChoksey. The arbitration shall
be held, in Mumbai in accordance with the provisions of the Arbitration and Conciliation Act, 1996, as
amended from time to time.
5. In the event of any complaint, investor can approach us and if you are not be satisfied with our response,
you can lodge the complaint online. Therefore, you should know whom you should turn to, to get your
complaint redressed. SCORES facilitates you to lodge your complaint online with SEBI and
subsequently view its status.
Place: Mumbai Date: 02nd
December 2016
Director Signature Director Signature
Kisan Ratilal Choksey Rajiv Kisan Choksey
16
Annexure I to Risk Disclosure Document
Fees may be a fixed sum or a percentage of the quantum of funds managed or may be linked to the portfolio
returns achieved or a combination of any of the above as may be decided by the Portfolio Manager.
Performance Based Fees for Clients under PMS:
For Existing clients Performance Based Fees will be computed on the basis of annualized return computed on the
completion of the year & thereafter on a quarterly basis if feasible in application on a high watermark basis
subject to consent of clients. For New Clients Performance Based Fees will be computed on the basis of
annualized return computed on the completion of the every financial quarter on a high watermark basis.
FEE STRUCTURE
1) KRChoksey – Diversified Equity
Fixed Fees: Upto 2% p.a. chargeable quarterly on the daily NAV or a fixed annual fees.
Fixed Fees structure:
Size of Portfolio (Rs.) 25,00,000
up to 1,00,00,000
1,00,00,000
& above
Fixed Fee (%) 0.5% (Per Qtr) 0.25% (Per Qtr)
Existing (I) Performance based Fee structure is as follows:
Size of Portfolio (Rs.) 0-15% 15-25% 25-50% Above 50 %
10,00,000 – 25,00,000 0 10% 20% 30%
25,00,000 – 1,00,00,000 0 20% 20% 20%
Above 1,00,00,000 0 10% 10% 10%
Existing (II) performance base Fee structure is as follows:
Size of Portfolio (Rs.) 0-25% 25-50% Above 50 %
10,00,000 – 25,00,000 10% 20% 30%
25,00,000 – 1,00,00,000 20% 20% 20%
Above 1,00,00,000 10% 10% 10%
Revised performance base Fee structure is as follows ( For Prospective Clients) :
Size of Portfolio (Rs.) 0-8% Above 8 %
Above 25,00,000 0 20%
Note –
1. The above mentioned Fees structure will be applicable to all new clients.
2. We also propose to apply this Fees structure to our existing clients subject to seeking their
Prior approval.
17
2) KRChoksey – Emerging Cap
Fixed Fees:
Upto 2% p.a. chargeable quarterly on the daily NAV or a fixed annual fees.
Fixed Fees structure:
Size of Portfolio (Rs.) 25,00,000
up to 1,00,00,000
1,00,00,000
& above
Fixed Fee (%) 0.5% (Per Qtr) 0.25% (Per Qtr)
Existing (I) Performance based Fee structure till date:
Size of Portfolio (Rs.) 0-15% 15-25% 25-50% Above 50 %
10,00,000 – 25,00,000 0 10% 20% 30%
25,00,000 – 1,00,00,000 0 20% 20% 20%
Above 1,00,00,000 0 10% 10% 10%
Existing (II) Performance base Fee structure is as follows -
Size of Portfolio (Rs.) 0-25% 25-50% Above 50 %
10,00,000 – 25,00,000 10% 20% 30%
25,00,000 – 1,00,00,000 20% 20% 20%
Above 1,00,00,000 10% 10% 10%
Revised Performance base Fee structure is as follows ( For Prospective Clients)
Size of Portfolio (Rs.) 0-8% Above 8 %
Above 25,00,000 0 20%
Note –
1. The above mentioned Fees structure will be applicable to all new clients.
2. We also propose to apply this Fees structure to our existing clients subject to seeking
their prior approval.
18
3) KRChoksey – Flexicap
Fixed Fees: Upto 2% p.a. chargeable quarterly on the daily NAV or a fixed annual fees.
Fixed Fees structure:
Size of Portfolio (Rs.) 25,00,000
up to 1,00,00,000
1,00,00,000
& above
Fixed Fee (%) 0.5% (Per Qtr) 0.25% (Per Qtr)
Existing (I) Performance based Fee structure till date:
Size of Portfolio (Rs.) 0-15% 15-25% 25-50% Above 50 %
10,00,000 – 25,00,000 0 10% 20% 30%
25,00,000 –1,00,00,000 0 20% 20% 20%
Above 1,00,00,000 0 10% 10% 10%
Existing (II) Performance base Fee structure is as follows -
Size of Portfolio (Rs.) 0-25% 25-50% Above 50 %
10,00,000 – 25,00,000 10% 20% 30%
25,00,000 – 1,00,00,000 20% 20% 20%
Above 1,00,00,000 10% 10% 10%
Revised Performance base Fee structure is as follows ( For Prospective Clients)
Size of Portfolio (Rs.) 0-8% Above 8 %
Above 25,00,000 0 20%
Note –
1. The above mentioned Fees structure will be applicable to all new clients.
2. We also propose to apply this Fees structure to our existing clients subject to seeking their
Prior approval.
4) KRChoksey – Short Term – (CLOSED)
19
5) KRChoksey Vision Infrastructure
Upfront Fees: 2 %
Fixed Fees: Upto 2% p.a. chargeable quarterly on the daily NAV
Performance base Fee structure is as follows:
Size of Portfolio (Rs.) 0-8% Above 8 %
Above 25,00,000 0 20%
6) KRChoksey Vision Structured Product - Series I
Upfront Fees: 4 %
Place: Mumbai Date: 02nd
December 2016
Director Signature Director Signature
Kisan Ratilal Choksey Rajiv Kisan Choksey
20
FORM C
SECURITIES AND EXCHANGE BOARD OF INDIA
(PORTFOLIO MANAGERS) REGULATIONS, 1993
(Regulation 14)
Kisan Ratilal Choksey Shares & Securities Pvt. Ltd.
Regd. Off.: 1102, Stock Exchange Tower, Dalal Street, Mumbai – 400 001
Tel.: 6696 5555 Fax: 6691 9576 website: www.krchoksey.com
We confirm that:
I) The Disclosure Document forwarded to the Board is in accordance with the SEBI (Portfolio Managers)
Regulations, 1993 and the guidelines and directives issued by the Board from time to time;
ii) The disclosures made in the document are true, fair and adequate to enable the investors to make a well
informed decision regarding entrusting the management of the portfolio to us / investment in the Portfolio
Management Scheme;
iii) The Disclosure Document has been duly certified by independent chartered accountants as on
02nd
December 2016. Details of Chartered Accountants are as under:
Deepa Rathi
Partner,
R Kabra & Co.
Chartered Accountants
Membership No.: 104808
Address:
515, Tulsiani Chambers,
Nariman Point,
Mumbai 400021
Tel No.: 22044737
Cell No.: 9920111345
For Kisan Ratilal Choksey Shares & Securities Pvt. Ltd.
Rajiv Kisan Choksey
(Principal Officer)
1102, Stock Exchange Tower,
Dalal Street, Mumbai – 400 001
Date: 02nd
December 2016
Place: Mumbai