Moneykart Internship Journal: Financial Advisory Experience

This report details an internship experience at Moneykart, a financial advisory company in New Zealand. The report begins with an introduction to Moneykart, its services including mortgages and insurance, and its operational structure. The core of the report analyzes the intern's experience, including tasks like managing client portfolios, understanding loan review systems, and engaging in service and digital marketing. The analysis connects the internship activities to the student's MBA modules, such as Financial and Management Accounting, Quality Management, and Marketing. Specific activities like understanding lending principles, financial statement analysis, and the company's quality assurance processes are examined. The report includes discussions on the company's unique aspects, joint ventures, and human resources. It concludes with recommendations for the intern's improvement and suggestions for the organization, highlighting the benefits of the internship and areas for future development within Moneykart's financial advisory services.

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TABLE OF CONTENT
1.0 INTRODUCTION.............................................................................................................. 3
1.1 Place of Attachment..........................................................................................................3
1.2 Company Overview...........................................................................................................3
1.2.1 Company slogan.................................................................................................................................4
1.2.2 Company Mission...............................................................................................................................4
1.2.3 Company Vision.................................................................................................................................4
1.2.4 Company Core Values........................................................................................................................4
1.3 Field of Specialization........................................................................................................4
1.3.1 Mortgages...........................................................................................................................................4
1.3.2 Insurance.............................................................................................................................................5
1.4 What makes the company unique?.....................................................................................5
1.5 Joint ventures.................................................................................................................... 5
1.6 Human Resource...............................................................................................................5
1.7 Company Organization chart.............................................................................................6
2.0 DISCUSSION AND ANALYSIS OF EXPERIENCE GAINED.......................7
2.1 Introduction……………………………………………………………………………………….7
2.2 Discussion and Analysis of selected activities done..............................................................8
2.2.1 Operating a financial company in New Zealand................................................................................8
2.2.2 Loan Review System..........................................................................................................................8
2.2.3 Ratio Analysis..................................................................................................................................10
2.2.4 Service Marketing and Digital Marketing........................................................................................17
2.2.5 Culture and lending..........................................................................................................................17
2.2.6 E-business and Digital Marketing....................................................................................................18
2.2.7 Quality Assurance............................................................................................................................21
2.2.8 Health insurance...............................................................................................................................22
2.2.9 Principles of lending.........................................................................................................................24
3.0 CONCLUSION AND RECOMMENDATION.......................................26
3.1 Conclusion...................................................................................................26
3.2 Recommendation..........................................................................................26
4.0 References......................................................................................28

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LIST OF FIGURES
Figure 1. 1 Company Organization Chart...............................................................................................6FIGURE 2. 1 LOAN REVIEW PROCESS.........................................................................10
Figure 2. 2 Moneykart Facebook page....................................................................................19
Figure 2. 3 Types of services offered for online booking.........................................................19
Figure 2. 4 Pop-out for selecting the date and time for an appointment.................................20
Figure 2. 5 Pop-out for giving contact details.........................................................................20
Figure 2. 6 Pop-out for successful appointment booking........................................................21
LIST OF TABLES
Table 2. 1 Ibrahim’s Laundry business financial statement....................................................10
Table 2. 2 Profitability Ratios..................................................................................................15
Table 2. 3 Turnover Ratios......................................................................................................15
Table 2. 4 Quality Assurance codes.........................................................................................21
Table 2. 5 Groups covered by NIB...........................................................................................22

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1.0 INTRODUCTION
1.1 Place of Attachment
The internship commenced on 19th August and ended 10th October 2019 (32 days) at
Moneykart, New Lynn.
1.2 Company Overview
Moneykart, Dainton, was founded and officially registered in May 2017 with registration
number 9429046103192 (Bizdb, 2019). The company, bearing company number 6275388,
was founded by Rajesh Krishnamurthy, the current director.
Rajesh Krishnamurthy is the principal adviser and a marketing communications specialist
with a vast experience in the financial industry of New Zealand (Rajesh, 2019). He has over
20 years of experience in international markets and good masterly in penetrating new markets
and ensuring business sustainability. He has worked in various companies like Westpac New
Zealand Limited, a senior banker at ANZ, a business consultant and New Business
Consultant. The company was registered under the K641930 Mortgage Broking Service
category.
The main office is located at Dainton Place at New Lynn, Auckland 00600.
Telephone: [phone]
Fax: [phone].
E-mail: [e-mail]
Website: www.moneykart.biz
Moneykart is a financial advisory company that has been in the industry for about two years.
It mainly focuses on offering financial services and products ranging from loans, insurance
and KiwiSaver (Moneykart, 2019). With the two years in the financial industry, the firm has a
vast knowledge of the market trends and customer needs hence has fought tirelessly towards
rising and offering the best and competitive services to the clients. It has, therefore, reached
various clients over this period offering various services and meeting their financial needs
appropriately. The company has always aimed at offering New Zealanders with solutions to
their financial problems and assisting them in achieving their financial goals.
The company is registered with the Financial Markets Authority of New Zealand hence it is
in total compliance with the code of conduct and ethics as provided by the authority and the
profession itself. This has enhanced the trustworthy of the company to the clients it serves.
The firm further operates in for 24 hours to serve as many clients as possible. Experienced

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and trained advisers of the company are equipped with necessary facilities like computers and
the internet to serve clients efficiently in an attempt to provide solutions to their financial
problems. Interestingly, the firm has deployed simple and customer friendly procedures when
dealing with customers.
1.2.1 Company slogan
Moneykart, simplifying finance.
1.2.2 Company Mission
Moneykart is on a mission to make the complicated world of finance simple and easy to
understand (Moneykart, 2019).
1.2.3 Company Vision
Moneykart’s vision is to be recognized as the premier financial services advisory firm
specializing in Mortgages, Risk Management and KiwiSaver in New Zealand (Moneykart,
2019).
1.2.4 Company Core Values
 You before I
 Trust,
 Transparency,
 Integrity
 Ethics.
1.3 Field of Specialization
Moneykart offer a wide range of financial services in an attempt to meet the needs of the
customers. The following section presents the services offered by Moneykart.
1.3.1 Mortgages
According to Investopedia, a mortgage is a claim on a property. It is defined as a debt
instrument with collateral that is used in a particular real estate property where the borrower
agrees and signs a commitment to return the predetermined amount over the specified period.
Individuals and businesses can use mortgages to acquire property without the initial amount
of full payment. The one taking the mortgage is then required to agree on the payment terms
and the period of payment. The terms of payments, in this case, involve the interests (Kagan,
2019). Under this package, the firm also gives consultancy services on the home loans and
the most suitable payment plan for the customer.

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1.3.2 Insurance
In a nutshell, insurance is to protect against a peril or a loss at a cost. The company covers
both life and non-life insurance. These include life, family, assets, trauma, total permanent
disability, income protection, mortgage protection, health insurance, and liabilities among
other things. Other forms of insurance offered in the company include travel insurance which
covers one for such events as repatriation, lost luggage, medical emergencies or even trip
canceled due to unavoidable circumstances.
1.4 What makes the company unique?
As an attempt for the company to reach a wide range of customers, the company staff have
the potential to communicate with the customers in their respective native languages. Some
of the languages include Hindi, Gujarat, Marathi, Punjabi, Malayalam, and Tamil
(Moneykart, 2019).
1.5 Joint ventures
The company has collaborated with renowned associate companies that offer insurance,
lending and loaning services to serve the clients efficiently.
1.6 Human Resource
Moneykart is a single business managed by one person, Rajesh. Moneykart maintains various
categories of personnel comprising of permanent, temporary employees and consultants with
the total available workforce fluctuating around 5 persons to reflect the workload at hand.
These comprise:
 Principal advisor.
 Senior advisor
 Sales people
 Intern

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1.7 Company Organization chart
Figure 1. 1 Company Organization Chart
Principal
Adviser
Senior
Advisor
Sales person Sales person Accountant
Intern

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2.0 DISCUSSION AND ANALYSIS OF EXPERIENCE
GAINED
2.1 Introduction
Having discussed the company of internship in the preceding chapter, it is evident that the
firm is actively engaging in the construction industry and hence provides a good opportunity
to acquire some fundamental experiences. In this chapter, the activities that were done during
the internship period have been discussed in detail using typical case studies that were
encountered. My input as an intern has also been discussed regarding the modules learned in
class.
The following described the tasks and responsibilities that my job entailed.
 Manage and grow client portfolio across a range of industries.
 Track and project financial performance and factors affecting expenses/profitability
on a functional or another basis.
 Learning how to actively manage a portfolio through proactive service, and retained
portfolios.
 Focus on maintaining client and portfolio profitability.
 Maintain professional knowledge and skills on legislative and compliance on products
and technical issues.
However, the following specific issues were carried out during the internship period:
 Understanding the basic operations of lending, mortgage, and insurance.
 Studying and understanding financial party rights, monetary policies and relevant
regulations like the Service Level Agreement, SLA.
 Understanding the role of key players in the industry like lenders, banks, participants
such as aggregators, franchisors, mortgage managers and other providers of broking
services. This also included understanding the key competitors and drivers of the
industry like NIB and AIA who have advanced in their area of specialty in the
financing industry. NIB is one of the largest health insurance providers in New
Zealand.
 Relationship between price and quality.
 Emerging issues in lending as practiced by typical lending companies like Peer to
Peer which is practiced by Zagga Company. Other current market trends were also
studied.

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 Calculations and considerations involving interest in different types of mortgages like
home loans, equity release and reverse annuity mortgages. The calculations also
involved determination of loan value ratios, liquidity and current ratio, and how they
are interpreted and applied in making decisions in lending problems.
 Recording and keeping the fundamental workbook of the company.
 Lending principles.
 Lending securities and collaterals.
 Using businesses’ financial statements to check for cash flow and determine the loan
status.
 Statement of movements in equity as provided by the New Zealand Mortgage Broking
Association.
 Strategic market services and digital marketing.
 Mortgage risks and their management.
 Quality assurance and a zero-defect target.
2.0 Discussion and Analysis of selected activities done
2.0.1 Operating a financial company in New Zealand
To operate a business offering financial services and advises in New Zealand, one must
register with the Financial Markets Authority (FMA) which is the regulatory body (New
Zealand Now, 2019). This requirement applies to banks, non-bank deposit takers, fund
managers, insurers and derivatives issuers (Tim & Chapman, 2016). They must also be
registered in the Financial Service Providers Register maintained by the agency.
I also learned that for insurers like Moneykart, they must be registered with the Reserve
Bank. The license requires that the companies should:
 Have an appointed actuary.
 Comply with the set policies.
 Maintaining solvency and disclosing solvency and credit rating information through
regularly published statements (Tim & Chapman, 2016).
2.0.2 Loan Review System
The Federal Deposit Insurance Corporation (FIDIC) RMS Manual of Examination Policies
and, for accounting and finance defines a loan review system (also known as the credit risk
review system) as a system that involves credit underwriting, loan administration, loan
workout and assembling all the information necessary to establish the appropriateness of

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these aspects. The complexity and rigorous nature of the system depend on the size of the
company and the nature of cases dealt with (FIDIC, 1999).
Objectives of a loan review system (FIDIC, 1999)
 To identify credit weakness in time and minimize resulting credit loss as much as
possible.
 To establish all the necessary information to guide the next course of action.
 To evaluate all the responsibilities of the lending personnel.
 To avail relevant information to the management to facilitate the assessment of the
client's portfolio.
 To establish the relevant trends which may affect the client’s loan portfolio.
I was assigned to keep the customers, portfolio and compile all their lending history and
information. I also kept their current cash flows and business engagements. This information
is kept in a database and it is the one used for analysis before lending.
With the company's experience, I realized that one of the major problems is a credit risk.
What this means is that a loan review system is a very key process before the issuance loans.
Wrong calculations and interpretations may lead to wrong decisions which may result in the
issuance of loans to a customer who is not able to pay the loan. As at the time of entry in the
company, the firm had kept a list of loan defaulters but the trend seemed to reduce
significantly due to efficient credit approval and appraisal system. I, therefore, was tasked to
assist in evaluating the customers' ability to repay the loans with the accumulated interests. In
Moneykart, the credit review system is a rigorous process that takes at least 6 hours to be
approved by the principal advisor, Mr. Rajesh.
The following procedure was adopted by the company.

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Figure 2. 1 Loan Review Process
The internal factors mostly involve the inadequate information regarding loan policies, credit
limits, overdependence of collateral and insufficient risk pricing, limited appraisal of
borrower's financial capacity. On the other hand, external refers to the factors regarding the
state of the economy of the country. This includes the rate of inflation, exchange rates, and
government policies. Analysis of the transaction risk and portfolio risk uses an identified and
tested Loan Review Mechanism (LRM) involves evaluating a loan application to evaluate the
level and status of the loan statement or loan book for credit administration (Chilukuri &
Srinivasa, 2014). Loan approval involves reviewing and evaluating loan application
documents and making a piece of considerable advice. All these steps are co-r-ordinated to
produce reliable results and information.
2.0.3 Ratio Analysis
Financial statement ratio analysis is used to establish the financial performance of a business
in terms of liquidity, efficiency, profitability, and solvency. The following section presents
examples of the ratios dealt with during the internship.
Ibrahim’s laundry business financial statement is sown in the table below has been taken for
the subsequent discussion.

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Table 2. 1 Ibrahim’s Laundry business financial statement
RATIOS
Client: Compiled by: …………………………..
Date: Approved by: …………………………..
2017 2018 2019
Short term solvency ratios
Current Ratio 2.60 2.71 2.50
Quick Ratio 2.57 2.66 2.45
Cash Ratio 1.93 2.06 1.88
Net Working Capital to
Current Liabilities
1.60 1.71 1.50
Asset Utilization or Turnover ratios
Average Collection Period 77.06 80.86 81.03
Inventory Turnover Ratios 64.84 40.17 32.64
Receivable Turnover 4.67 4.45 4.44
Fixed Asset Turnover 7.54 7.18 5.95
Total Asset Turnover 0.61 0.55 0.50
Financial Leverage ratios
Total Debt Ratio (TD/TA) 0.45 0.45 0.48
Debt/Equity 0.12 0.13 0.13
Equity Ratio (TE/TA) 0.55 0.55 0.52
Long-term Debt Ratio
(LTD/TA)
0.09 0.09 0.12
Times Interest Earned Ratio
(EBIT/TI)
22,267.0
0
27,052.0
0
27,820.0
0
Profitability ratios
Gross Profit Margin 0.76 0.74 0.69
Net Profit Margin 0.314 0.289 0.254
ROA (NI/TA) 0.1400 0.1535 0.1281
ROE (NI/TE) 0.2558 0.2769 0.2459
Market value ratios

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Price/Earnings Ratio 10.4000 11.20 14.00
FINANCIAL STATEMENTS
Balance Sheet
Three Years Ended
December 25, 2010
(In Millions, Except Par
Value)
2012 2013 2014
Assets
Current Assets:
Cash and cash
equivalents
6,938 3,804 8,669
Short-term
investments
56,102 73,218 77,040
Accounts
Receivable,
Net
15,780 17,486 19,544
Inventories 1,137 1,938 2,660
Deferred
Income Taxes
2,035 1,632 1,941
Other 3,092 3,388 4,392
Total current assets 85,084 101,466 114,246
Long Term Assets:
Property, plant 8,269 9,991 13,011