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    PIA Disclosure Document Portfolio

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    PIA Disclosure Document Portfolio

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    PIA Disclosure Document Portfolio

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    Avijit Banerjee

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    PURNARTHA INVESTMENT ADVISERS PRIVATE LIMITED DISCLOSURE DOCUMENT PORTFOLIO MANAGEMENT SERVICES PISCLOSURE DOCUMENT jon 22 of Securities and Exchange Bourd of India (Portfolio Managers) Regulations, 2020} IAs required under Regul: 1. The Document has been fled with the Board along with the certificate in the specitied format in terms of Regulation 22 of the SEBI (Portfolio Managers) Regulations, 2020. 2. The purpose of the dacument Is to provide estential information about the portfolle services in a manner to assist and enable the investors in making informed decisions for engaging Purnartha Investment Advisers Private Limited (hereinafter referred as the "Portiolie Manager") as a Portfolio Manager. 3, The necessary infermation about the Partfolia Manager required by an investor before investing is disclased in the Disclosure Document. Investors should carefully read the entire document before making 9 decision end should retain it for future reference. 4. Mr. Rahul Rathi, shall be the Principal Officer as designated by the Portfolio Manager (:, details of whom are as under: \cipal Officer Name ir. Rabu Rathi Address 33, Rachna, Ground & 2nd Floor, Bharati Niwas Society, Or Ketkor | Read, Off Karve Road, Erandwane, Pune - 411 004 Phone 020 #12 7140 ea rahuliBpurnaetha.com TABLE OF CONTENTS CONTENTS: RAGE NUMBER (HISTORY, PRESENT SUSINESS AND BACKGROUND OF THE PORTFOLIO MANAGER ii) PROMOTERS OF THE PORTFOLIO MANAGER, DIRECTORS: AND THEIR BACKGROUND (ia) TOP 10 GROUP COMPANIES? FIRMS liv) DETAILS OF SERVICES BEING OFFERED BY THE PORTFOLIO MANAGER PENALTIES, PENDING LITIGATIONS GR PROCEEDINGS ~~ aa iL id S "SERVICES OFFERED eat 7 7 } 5 a 4 7” CLIENT REPRESENTATIGN ai & FINANCIAL PERFORMANCE OF THE BGRTFOLIG MANAGER f Eby 7 9) PERFORMANCE OF THE PORTFOLIO MANAGER = ae 10°”! AUDIT OBSERVATIONS ii > NATURE GF EXPENSES 3 re ea Tt “13 ACCOUNTING POLICIES Tf mn aA 1 14 INVESTOR SERUICES 38 1. DISCLATMER CLAUSE ‘The particulars of Disclosure Document have been prepared in accordance with the Secures and Exchange Board of india (Portfolla Managers) Regulations, 2020 as amended till date and filed with Securities and Exchange Beard af India ("SEBI"}, This document has neither been epprovec nor ‘lsapproved by SEBI nor has SEBI certified the accuracy or adequacy af the contents of the document DEFINITIONS In this Disclosure Document, the fellowing words and expressions shall have the meat heroin, uniess the context otherwise requires 9 specified “Agreement” or “Portfolio Management Services Agreement” or ~PMS Agreement” means the agreement executed between the Portfolio Manager and its Clients in tems of Regulation 22 ond Schedule IV of Securities and Exchange Board of india (Pert(olie Managers) Regulations, 2020. “Activation Date" means the date on which the portfolia account of the client Is actwated in system. li, “Client” or “Investor” means any person who enters inte an agreement with Portiolio Manager fer avaiing the Portfoi Management Services offered by the Partfolla Manager, lv, “Custodian” means a custodian of securities, duly holding a certificate af registravon under the SEal {Custodian of Securities) Regulations, 1996 (2s amended or reenacted from time to time); iscrationary Portfalio Management Services” or "Portfolio Management Services” shall mean the management, including investment or sale of the Portfalio of the Client, 2s the ase may be, by the Porttollo Manager at its complete and unfettered discretion, subject co ‘any specific restrictions mentioned under the Client Mandate forming part of the Agreement ‘ given by the Client in the prescribed format, at 2 later daters); vi, “Disclosure Document” or “Decument” mesns this document prepared pursuant ta Regulation 22(3) and in accordance with Schedule V of the Regulations disclosing inter-alla following: (!) performance of the Portfalio Manager: (i!) portfolie risks; (is) the quentum and manner of payment of fees payable by a Client; (iv) disciosures in relation to the business and disciplinary history of the Portfolio Manager ac well as the terms and conditions en which any advisory services are being offered and affilations with ether intermediaries ate vil. “Direct on-boarding” means an option provided to clients to be en-boarded direct'y with the Portfolio Manager without intermediation of persons engaged in distribution services. “Equity Related Instruments” inciuces convertible bonds and debentures, convertible preference shares, equity warrants, equity derivatives, FCCBs, equity mutual funds and any ‘ther like instrument. “Emotional Capital at Risk” is that part of the contnbution/corpus from client arrived at based on the “Proprietary Model of Emotonel Capital at Risk” of the Purnartha Investment Advisers Pvt. Lid. (the Portfolio Manager) financial year” means the year starting from 1* Agnil_and ening en 31" March of the fellowing year. xi, “Funds” means the monies managed by the Portiolio Manager an behalf of the Clients’ ursuent to the PMS Agreement ond includes the monies mentioned in the account apening Form, any further monies placed by the Cent with the Portfollo Manager for being manages Pursuant to the PMS Acreement, the proceeds of sole ar other realization of the partfelio ana interest, dividend or other monies arising from the assets, so tong as the same is manages by the portfolia manager, xil, "Goods" means the goods nobfied by the Central Gavernment under clause (bc) of section 2 of the Securities Contracts (Regulation) Act, 1956 and forming the underiying of any eae : re: 3 Ef awe Posi axe xiii, “Initial Corpus” means the value of the funds and / or the market value of securities brought in by the Client at the time of registering as client with Pertfolia Management Services and accepted by the portfolio mansger xiv. “Investment Approach” means 2 broad outlay of the type of securities and permissible instruments to De invested in by the portfolla manager for the Client, taking Inte account factors specific to cients and securities: which shall inter-aia inchide but not limited to Investment objective, description of type of securities, investment herlzon and risks associated with the investment sppraach xv, Non-Discretianary Portfolio Management Services” mesns » portico management serviees where a Portfolio Manager acts on the instructions received trom the Client with Fegard to investment of funds of the Client under a contract relating te portfolio management and will exercise no discretion as to the Investment or management of the portiollo of Securities or the funds of the dient, as the case may be xvi, "Portfolio" means Securities and/or Funds managed by che Portfolio Manager on benalf of the Client pursuant to the PMS Agreement and inciuges any Secunities and/er Funds ‘Mentioned in the account opening form, any further Secunties and/or funds placed by the Giient with the Portfolio Manager for being managed pursuant to the PMS Agreement, Securities or etter realization of the portfalio sequired by the Portfolia Manager through Investment of Funds and bonus, dividends of other recelots and rights in respect of Securities forming part of the portfolie, sa long as the same is managed by the Partfolia Manager uncer the PMS Agreement, xvii. “Portfolio Manager” means Purnartha Investment Advisers Private Limited, a Compeny Incorporated under the Companies Act, 1956 and registered with the Securities and Exchange: Soard of India as a Pertfolio Manager Vide registration certificate no, PM/INPODODO7023 under the Securities and Exchange Board of india (Portfolio Managers) Regulations, 2020, vill, “Principal Officer” means an employee of the portfolio manager who has been designated .25 such by the portfolio manager and is responsible for: = (|) the decisions made by the sortfolic manager for the management or administration of pertfalio ef securties or the funds ‘of the client, as the case may be; and (li) all other operations of the portfolio manager xix. “Regulations” or "SEBI Regulations” means the Securities and Exchange Board of India «Portfolio Managers) Regulations, 2020, as amended from time to time. xx. “SEBI™ means the Securities and xchange Board of Ingia established under section J of the Securities and Exenange Beard of India Act, 1992, rai, “Securities” meons security as defined in Section 2(h) of the Securities Cantract (Regulation) ‘Act, 1956, provided that securities shall not include any securities which the Fortiolo Manager {is prohibited from investing in or advising on under the Reguiations or any ether law for the time being in force. ‘The terms and expressions nat herein detined shall, where the interpretation and meaning have been assigned to them in teims of the Securities Exchange Board of India Act, 1992 of the relevant regulations framed thereunder, Bepasitories Act, 1996, the Companies Act, 2013 and the General Clauses Act, 1897, have that interpretation and meaning 3. DESCRIPTION (i) History, Present Business and Background of the Portfolio Manager Purnartha started out with the simpie intention of bridging the gap between what was and what cou be. The company was formally incarporated on March 28, 2013 as Capmetrice Technology Solutions Private Limited. Later, the name of the company was changed to Capmetries Investment Advisers Frvate Limited on July 2015. Name of the company was suitably changed to the present name Pumartha Investment Advisers Prvate Limited on September, 2017. The Object Clause and other clauses of Memorandum & Articles of association were amended to include Portfolio Management Services in the year 2020, The name and change in the object clauses are ¥we.t January 31, 2020 Purnartha Investment Advisers Private Limited is registered with Securities Exehange Board of India aas"Investment Advisors’ since December 2013 with ragisteation number INAQQD000672, Purnartive is 4 engaged in the business of weaith creation for its Clients. The journey that connected opportunities Wath confidence. The essence of all human endeavour Is the desire to forge milestones where ne pains sisted before. The journey of transcencing the "What if?’ ta achieve the What could be’ hac defined very formideble human achievement. A simple goal that has creoted and nurtured 2 unique equity investment advisory ecosystem, backed by the timeless concepts of trust, transparency and quality felationships. Introducing the team that passionately roots out the best the market hes to offen Sain in the Gaine: Purnerthe, its directors & employees have full conviction in its investment Philosophy and invest in the same securities that are recommended for the chents, Gi) Promoters of the Partfalio Man. 2020, Promoters & Directors: 4. Rahul Rathi - Promoter Director Rahul Rath i the Chairman and Promoter Director at Purnartha Investment Advisers (Purnartha) Private Limited. He Nas over 15 years of research and partfolio risk management experience gained from working with global financial institutions In New York, Londen and 7 Birectors And their Background #5 on 21" December Since 2009, Rahul has designed and criven the Purnsstha Investment philosophy of longterm wealth generation and has en audited, stellar performance track record. The sustained performance s largely attributed ta Rahul's experience ang investment in peaple, processes and data which he has built rere ‘ground up. te began nis career as a isk analyst with 2 global hedge fund. His interest and pession in the area of ontfollo risk analytics led ram to form Capmetries ~ a research & porifal rok ansiyice series Brovider fo global hedge funds and func af funds in 2002. Using extensive dato mining and analyte, apmetncs was responsible for analyzing and communicating the Partolio level sk ta Fund Managers and the concerned stakehaléers, ‘Over these years, Rahul groomed a qualified and experienced research team cemprising of PhDs from Ny League Schools, Maste's in Computational Finance, Chartered Accountants, Chartered Fnaresl Analysts, MBAs and domain experts with experience In markets, Rebul skilfully applied Wis experience in his familly business to bulid-@ unique en-ground team st Purnartha which net enly met company management but also'ts suppliers, chants, elsenButors, These ‘Inputs to Purnartna mode! helped in creating robust and realistic analyses, Rahul has a Masters degree in Industrial Acmimistration from the Carnegie Mellon University and a Bachelor's degree in Polymer Engineering trem the University af Pune. 2. Hemant Ashok Vispute - Promater Director Hemant brings over 20 years of experience in consulting, strategic planning and eperations. The brai ‘ond heart of Purnartha, he has been an integral part of the jaumey from the very beginning, His leadership, vision, and discipline have infused our teams with strategic guidence, helping Conceptualize blueprints related to business development and expansion aspects, (Wil) Top 10 Group Companies/ Firms of the Portfolio Manager as on 21% December 2020. a Name of the Companies [1 | CAPITAL MEFRICS AND RISK SOLUTIONS PRIVATE LINTTED. = 2 PLASTIBLENDS INDIA LIMITED. 5 ONWARD TECHNOLOGIES LIMITED [aT RATHE TECHSeRVICES PRIVATE LIMITED (= TeaIVA Panlana compomaTiON La (iv) Details of Services being offered by the Portfolio Manag. A Under these services, the Porttalls Manager will exercise sole and absolute discretion as to Investment and/or management af the portfcli of securities or the funds af Clients’ as he deems 5 fit and in terms of the PMS Agreement executed with each Client, The securities invested Sisinvested by the Portfolio Manager for Cent in the same Portfolio may differ from Client to Glent. The decision of Portfalla Manager (taken In good faith) in deployment of the Chents’ Portfolio 's absolute and final and cannot be calles in question of be open ta review at any ime uring the currency af the agreement or ony Lime thereafter except an the ground of malafide, fraud, confit of interest or gross negligence. Under the Discretionary Portfolio Management Services offered to the Client, the Portfolio Manager may design financial products or invest in any one or a combination of financial ‘instruments such 35 equity, Bonds, debentures, mutual fund units, fed deposits, dervabves Instruments, ete. to meet specific requirements of the Clients. (Structured Products} ‘These products riould be managed in accordance with the product specifications provides by the Portfalic Monoger to the Clkent. The amount invested by the clients under the structured products may be subject to lock in period. Every structured pracuct shall have separate term sheet and Fisk factors that would be read and signed by the Client before investment. ‘Non-Discretionary Services Under these services, the Portfolio Manager executes transactions in securities as per directions ‘of the Client and in terms of the PMS Agreement. The Portfolio Manager's rale is limited to providing research, investment advice and trace execution facility to: the Client. The Portfolio Manager shail execute orders as per the mandate received fromm Client. ‘The Portfolio Manager will provide advisory services which shall be in the nature of investment ‘advisory and shall include the responsibilty of advising on the partfolla strategy and investment divestment of individual securities in the Client's Portfolio in terms of the Agreement and wathin overall risk profile. In such case, the Portfalia Manager dees net make any investment on behslt of the Chient. ‘The Portfolio Manager shall be solely acting 2s an advisor in respect of Portfolio of the Client and shall not be responsible for the investment / divestment of securities and / ar administrative activities of the Cent's Portfalia, PENALTIES, PENDING LITIGATIONS OR PROCEEDINGS, FINDINGS OF INSPECTION OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR INITIATED BY ANY REGULATORY AUTHORITY. A D ‘Ail cases of penalties Imposed by SEBI or the directions issued by SEBI under the SEBI Act, 1992 or Rules or Regulations made there under. None The nature of penalty / direction None Penalties/ fines imposed fer any econamic offence and/or for violation of any securities laws, None ‘Any pending material itigationy/legat proceedings agaist the partfoli manager /key personne! faith separate disclosure regarding pending criminal cases, if any, None ‘Any deficiency in the systems ond operations of the portfolio manager observed by SEBI or any regulatory agency. None ny deficiency in the systems nd opezatians of the portfolio manager observed by the Board or any regulatory agency, None ‘Any enduiryfadjudication proxeedings initiated by SEBI against the portfolio manager of its Grectors, principal afficer or employee or any persen directly or indirectly connected with the portfolio manager ar its Gitectors, principal officer oF employes, under the SEBT Act, 1992 or Rules of Regulations made thereunder for Portfolio Manager Forany person directly or indirectly connected with the Pertfolie Manager or its siyectors. principal officer or employee SERVICES OFFERED wo “The Portfolio Manager offers Discretionary Portfolio Management Services, Advisary Services ang Non-Discretionary Parifelio Management Services as per Fortfolio Management Services ‘Agreement executed with each Client ‘The Portfolio Manager under Its Discretionary Pertfotio Management Services offers verius Portfolias Approacnes win different investment objedives and policies to cater to Fequiremeats of individual Client. The Portfoho Manager shal deploy the Securities and/ or funds of the Client in accordance with the investment abjectives, investment Pelicy and Investment Approaches of the Partfelio Manager at the time of Investment. Investment objectives and palieies including the types of securities and Investment Approaches of the Portfolio Manager, Investment Objectives: Long term equity investment focused an investing in companies and strong balance sheet. high growth Investment Poli We rigorously look for choosing companies, which aré poised to reap long-term gains end ‘eter aia, satisfy the following qualities: 2) History: We need operating history that shows performance across regimes: We see if the businesses have generated positive cash in all regimes. Other business and valuation elated parameters are analyzed too 4) Business Model: We onalyze why the company does net depend upon Isige borrwing ta grow its business (excluding BFSI (Banking, Financial Secvices and Insurance) sector), We have come acrass unique business models that pravide an insight into the eeonamic ‘moat er campetitive advantage af the company. ©) Volume Growth: We also articulate what are the structural drivers for the volume growth Of the company for the next few years «) Management Interaction and Channel Checks: Good history and the reason why the Company is poised to grow is the output af the business owners thought process and Interest, We identify the person responsible for the companys future & find out If his interests are aligned fer future growth. Charinel chacks provige an insight inte Culture oF the company, ©) Valuation: We will build a portfolie that is suitable, based on internal valuation matrix ‘Since we are market cap agnostic and sector agnostic, we typically create “Multi

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