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SUMMER PROJECT REPORTON
ANALYSIS OF VEHICLE LOAN OF AU FINANCE AND MEASURING THE CUSTOMER SATISFACTION LEVEL
At
JAIPUR
Submitted in partial fulfillment of the requirement for the Award of“Post Graduate Diploma in Business Management”
Submitted By:
Ajay Kumar MotwaniPGDM-BM
BM/July/11/24/2327
Submitted To :
CORPORATE GUIDE: FACULTY GUIDE:
Mr. Abhishek Tiwari Prof. POONAM MISHRA
Head-Operations Faculty, FMS-IRM
Au Finance-Jaipur Jaipur
Faculty of Management Studies
Institute of Rural Management,
Jaipur
1FMS-IRM
CERTIFICATE
Certified that this project report entitled “ANALYSIS OF VEHICLE LOAN OF AU FINANCE
AND MEASURING THE CUSTOMER SATISFACTION LEVEL is a record of project work
done independently by Mr. Ajay Kumar Motwani under my guidance and supervision and that it has
not previously formed the basis for the award of any degree, fellowship or associate ship to him.
Prof. POONAM MISHRA
Faculty, FMS-IRM
Jaipur
2FMS-IRM
DECLARATION
I AJAY KUMAR MOTWANI hereby declare that this project report entitled ‘’ ANALYSIS OF
VEHICLE LOAN OF AU FINANCE AND MEASURING THE CUSTOMER SATISFACTION
LEVEL” is a bonafide record of work done by me during the course of summer project work and
that it has not previously formed the basis for the award to me, for any degree/diploma, associate-
ship, fellowship or other similar title of any other institute/society.
AJAY KUMAR MOTWANI PGDM-BM 3RD SEM BM/July/11/24/2327
3FMS-IRM
ACKNOWLEDGEMENT
I express my sincere thanks to Brig.S.K.Gaur Director, FMS- Institute of Rural Management
Jaipur giving me an opportunity to get training at AU FINANCIERS (INDIA) PVT. LTD. This
study is one of the valuable, continuous and systematic guidance of Prof. Poonam Mishra, faculty,
FMS- Institute of Rural Management his support and constant help has made this study possible. I
am grateful for his invaluable support.
I would also extend my sincere thanks to Mr. Mr. Abhishek Tiwari, Head-Operations at AUFIPL
for providing me an opportunity to do a project work in their esteemed organization. I also express
my gratitude to Mr. Ravindra Pratap Gautam and Mr. Arun Agarwal for the help, guidance,
cooperation and assistance extended to me in different departments of RFC. The assistance was offer
to me in various forms like dissemination of information rendering brochures, periodicals etc which
proved helpful in completing the project on time
Ajay Kumar Motwani
4FMS-IRM
Executive Summary
The summer training of a management student plays an important role to develop him into a well groomed professional. It gives theoretical concepts a practical shape in the field of applications.
The project at AUFIPL dealt with credit appraisal and henceforth analysis of consumers who have taken loan.
The forthcoming project report is divided in phases:
Phase 1: Understanding the policies of AUFIPL regarding its products. Studying and practically doing the process and proceduresPhase 2: Financial Position of the companyPhase 3: Analysis on loans taken up by consumer conferring the suggestions and recommendations.
The research methodology was Exploratory and descriptive in nature. Both the secondary and the primary data collection methods were taken into consideration and the conclusions of the report were derived fundamentally on the basis of the primary data collected and thus analyzed accordingly.
Questionnaires were circulated amongst the consumers who came to the branch. A few importance scaling were used to draw inferences based on the survey.
After doing the thorough analysis it can be concluded that a vibrant and a well-developed market which has been shown to facilitate consumption & investment, by providing loans to different segments has a lot of potential in the coming years. The lenders as well as borrowers in the country are growing at a very fast pace.
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CHAPTER 1.
INTRODUCTION OF THE STUDY
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Introduction
At Au Finance I was working with the Credit department, which caters specifically to providing
loans to individuals meeting the necessary requirements.
As a part of my project I had to study policies and credit analysis process of Vehicle loan.
The report is divided into 3 parts. A brief abstract of the entire work done is stated below.
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DETAILING ABOUT THE PRODUCTS OFFERED BY AU FINANCE. DESCRIPTION OF THE CREDIT ANALYSIS OF THE VEHICLE LOAN.
ANALYSIS OF THE EXISTING CUSTOMER BASE OF AU FINANCE .
Statement of problem:
In the current scenario where it is seen that big financial institutions have been bankrupted just
because of credit default so Credit Appraisal has become an important aspect in the financial
institutions and is gaining prime importance. It is the incident of credit defaults that has given rise to
the financial crisis of 2008-09. But in India the credit default is comparatively less that other
countries such as US. One of the reasons leading to this may be good appraisal techniques used by
financial institutions in India. Eventually the importance of this project is mainly to understand the
credit appraisal techniques used by the financial institutions with special reference to AU
FINANCIERS INDIA PVT. LTD
Project objective:
To study the process of credit appraisal and documents required for Vehicle loan
To know the satisfaction level and loyalty of customers (who have taken loan for vehicle) of
AUFIPL
To find out financial position of the company (AUFIPL)
Research Methodology
Research type:
The research conducted for Phase I and II is an exploratory research. It includes:
Analysis of historical records. Analysis of documents.
The research conducted for Phase III was descriptive research.
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Sampling:
Sampling Size: 50
Sampling Method: convenient sampling (Non Probability sampling)
Sampling unit: Businessman-woman, professionals, salaried class and farmers who had
taken loan from Au Finance
Research location: Jaipur
Research tools:
Pie charts
Line diagrams
Tables
Percentages
Source of data:
Primary Research. Through questionnaires, online surveys and telephonic interviews.
Secondary data: through annual report, internet and websites.
Internal policies and guidelines of company.
Scientific Utility of the Study: In my project primary data is collected with the help of survey and analysis is made with the help of
primary data. By using the primary data collected by me AUFIPL come to know about its customer
satisfaction level and can change its rules & regulations according to them.
This study also helped me as I have not done any study at this level before, so by this study I came to
know about different Financial Institutions other than banks, I came to know about the credit
appraisal procedure of AUFIPL, various loan schemes of AUFIPL etc. by meeting the different
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high level officials of AUFIPL & different customers of AUFIPL I think I have also improved my
confidence, communication skills etc.
Limitation of the study:
Although the project aims data making in depth study of credit appraisal process at AUFIPL but
there are some practical limitation regarding the methodology followed & the overall procedure
these can be summed up under the following points:
1. Time constraint
2. No direct access to company data
3. Lack of interest shown by some officials of AUFIPL
4. Questionnaire is filled according to the response given by the customers, it may contain
some biased information
5. Sample size is not quite enough to reach to any precise conclusion.
Review of Literature
A study done by Kenny Sikand Student of FMS-IRM in the year 2011 with Axis Bank, Jaipur is to
be reviewed and the research process and methodology will be understood to apply the same with
AUFIPL.
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Chapter 2. Profile of the Organization
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PROFILE OF COMPANY
Industry Type:
AU FINANCIERS is a NBFC (Non-Banking Financial Company). A non-banking financial
company (NBFC) is a company registered under the companies Act,1956 and is engaged in the
business of loans and advances, acquisitions of shares/stock/bonds/debentures/securities issued by
the government or local authority or other securities of like marketable nature, leasing, hire
purchase, insurance business, chit business, but does not include any institution whose principal
business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable
property.
The types of NBFCs registered with the RBI are:-
Equipment leasing company: - is any financial institution whose principal business is
that of leasing equipments or financing of such an activity.
Hire-purchase Company: - is any financial intermediary whose principal business
relates to hire purchase transactions or financing of such transactions.
Loan company: - means any financial institution whose principal business is that of
providing finance, whether by making loans or advances or otherwise for any activity other
than its own (excluding any equipment leasing or hire-purchase finance activity).
Investment Company: - is any financial intermediary whose principal business is that of
buying and selling of securities.
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Now, these NBFCs have been reclassified into three categories:-
Asset finance Companies (AFC)
AFC are financial institutions whose principal business is of financing physical assets such as
automobiles, tractors, construction equipments material handling equipments and other
machines. E.g.: Bajaj Auto Finance corp., Fullerton India etc
Investment Companies (IC)
ICs generally are involved in the business of shares, stocks, bonds, debentures issued by
government or local authority that are marketable in nature. E.g.: Stock Broking Companies,
Gilt firms
Loan Companies (LC)
LCs is loan giving companies which operate in the business of providing loans. These can be
housing loans, gold loans etc E.g.: Mannapuram Gold Finance,
NBFCs are different from Banks
NBFCs cannot accept demand deposits (Demand deposits are funds deposited in an
institution, that are payable immediately on demand e.g.: Savings account, Current account
etc)
A NBFC cannot issue cheques, to their customers and is not a part of the payment and
settlement system
Deposit insurance facility of Deposit Insurance Credit Guarantee Corporation (DICGC) is
not available for NBFC depositors
They cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to
time.
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They cannot offer gifts/incentives or any other additional benefit to the depositors.
They should have minimum investment grade credit rating, from the credit rating agencies
Company Overview
History:
AU Financiers (India) Private Limited, registered with Reserve Bank of India as a Non Banking
Finance Company (NBFC) and this company was promoted by Mr. Sanjay Agarwal in the year
1996. Originally the Company was incorporated as ‘L.N. Finco Gems Private Limited’ but in 2005
Company has changed its named into ‘AU Financiers (India) Pvt. Ltd’. The objective was to align
the Company name with business line of the Company.
AU Financiers is a fast growing financing company with our roots in Rajasthan, and branches spread
in Maharashtra and Gujarat and planning to increase our presence to pan India. Company facilitates
access too easy, affordable financing options for small road transport operators and fleet owners.
Company extensive network in semi-urban and rural areas of Rajasthan,
Maharashtra and Gujarat has brought the benefit of growth to people outside the usual scope of
organized finance and allowed us to propagate the motto of inclusive growth.
Its biggest area of operation is commercial vehicle financing where we serve the requirements of
various categories of the market right from three wheelers to multi-axle trucks. From first time
buyers of new vehicles to refinancing of running vehicles, our extensive product portfolio allows us
to cater to a broad cross section of the market.
It also engaged in small secured business loan products for personal and business needs. Our
excellent track record of high quality lead generation, high collection ratio and low delinquencies
has attracted the attention of high quality stakeholders and today, besides the promoters, our
principal investor is Motilal Oswal Private Equity Advisors Private Limited. The support of our
investors and our enhanced management bandwidth has given us the impetus to forge ahead in new
geographies and expand our product portfolio.
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Milestones:
In just first few years from inception, we disbursed, 150 crores in vehicle loans, SME loans,
etc.
Exhibiting fabulous unlimited potential and quick growth prospects, we entered into the
channel business with a strategic relationship with HDFC bank.
This was an immensely crucial year for the company as Motilal Oswal Private Equity
Advisors Pvt. Ltd. Infused Rs. 20 Crores worth of equity and strategic acumen on board with
a strong product support and constant process development, we expanded our base to Gujarat
Established a relationship with IDBI, Central Bank of India and State Bank of Patiala.
Recorded an all time high PAT of Rs. 5.2 crores and AUM of Rs 244.17 crores. The
international Finance corporation, (a member of the world Bank Group) Motilal Oswal
Private Equity Advisors Pvt. Ltd. and other promoters infused a whopping Rs. 60 Crores of
shares Capital into the company.
Recorded a PAT of Rs. 11.85 crores and AUM of Rs. 485.58 crores.
RBI classified the company as the only “Systematically Important Asset Finance Company”
in Rajasthan
Our exceptional long term facilities was were rated ‘A-‘by CARE.
Based on high performance and consistent growth, CRISIL has upgraded its rating to BBB+/
Positive
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BOARD OF DIRECTORS:
• Mr. Sanjay Agarwal, Promoter & Managing Director
• Mr. Uttam Tibrewal, Executive Director
• Mr. Krishan Kant Rathi (Director)
• Mr. Vishal Kumar Gupta (Investor Director)
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Board of Directors
Managing
Director
Operation, Accounts &
Finance Head
Executive
DirectorBusine
ss Heads
Manager
Zonal Head
Operations, Accounts &
Finance Manager
Operations, Accounts &
Finance Team
Collection & Legal Head
Admin, HR & IT Manag
erManag
er
Admin, HR & IT Team
Executive
FI & Credit Team
Risk & Credit Head
Cluster Head
Team Leader
Collection & Legal Team
Branch Manag
er
Chief Financial Officer
NUMBER OF PEOPLE
The number of employers is increasing year by year at fastest speed, like in 2006-07
the no. of employees was 155 but in 2012 it is 2000.
2006-07 2007-08 2008-09 2009-10 2010-11 2011- May 2012
0200400600800
100012001400160018002000
No. of employees
No. of employees
(Source: www.aufin.in) (Figure no. 01)
NUMBER OF CUSTOMERS
Year Total No. of Customers2004-05 23762005-06 61822006-07 1233520007-08 202392008-09 267232009-10 419952010-11 77358
2011-12(May) 110000
(Source: www.aufin.in) (Table no. 01)
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Target Customers
(Source: Primary Data) (Figure no. 02)
DEPARTMENTS
Marketing Department.
Accounts Department.
Collection Department.
Credit Departments.
Human Resources Departments.
IT Department.
Insurance Department.
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BRAND
AU means gold which is precious and worthy across all cultures and times. It symbolizes in service,
wealth and happiness. Financiers mean those who finance. As the name of the company suggests, we
are the company who finance thorough imperil service to create happiness in the lives our precious
and worthy customers. We have launched the new logo of our company which is having manifolds.
Firstly, it is symbolic to Swastik, the most prominent auspicious symbol of the present era. Swastik
symbolizes auspiciousness, well being and let good prevail.
Secondly, it is made up with 4 F’s which means- Fast, Fair, Flexible & Friend.
Thirdly, the color associated with it has deep meaning. Blue color is considered to be a corporate
color which symbolizes calmness, peace, confidence, intelligence, stability, unity, trust, loyalty,
wisdom, faith, tranquility and sincerity.
Red color which a very emotionally intense color is associated with energy, strength, courage,
power, determination as well as passion, desire, and love.
STRENGTHS
Relationship based origination model:
We meet every borrower in person before disbursing a loan. The company works on the concept of
‘touch and feel’ which helps to understand background, profile & needs of the customers which are
overlooked by the organized sector. Company provides easy finance with hassle (difficulty) free
documentation, speedy and transparent process.
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Centralized & Independent credit verification:
It highly focused on credit quality of the borrowers. Each file has to go through layered filtration
process of the company including credit verification at different levels and final approval from head
office. Company assesses the synergy & viability between product, customer profile and product’s
proposed use.
Robust collection process:
Company has in house collection team with expert legal advisors who on regular basis follows up
with delinquent accounts. Company has layered process which includes telecalling, personal visit,
legal actions, repossession of vehicles etc.
The company has a policy of releasing of REPO vehicles which boosts customers confidence is us.
The company’s collection efficiency is very strong and has on of the lowest delinquency ratios of in
the industry.
Grass root penetration:
Many analysts believe that the rural economy will grow strongly in the coming years. There is strong
focus by the Government of strengthen the rural economy. AU Financiers could be a significant
beneficiary of this trend. As it diversifies its loan products and offers other forms of secured
financing it could augur very well for growth prospects of the Company.
High vintage of team:
AU has a strong, highly motivated and enthusiastic team with rich experience and knowledge of on-
the-ground business. The core team has worked with each other for the past several years. The team
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has been able to establish strong relationships in the marketplace, as well as with various
authorities/establishments.
Investor Relation
IFC is a dynamic organization, constantly focusing in creating opportunity to the people to escape
poverty and to improve their lives. To achieve this Purpose, IFC offers development-impact
solutions though firm-level interventions direct investments, advisory services, and the IFC Asset
Management Company; standard-setting; and business enabling environment work. IFC is the
financially and legally independent private sector arm of the World Bank Group.
It also coordinates with the other institutions of the World Bank Group for its activities. IFC’s
operations are carried out by its departments, most of which are organized by world region or global
industry/sector. IFC has over 3,400 staff, of which 51% work in field offices and 49% at
headquarters in Washington, D.C.
IFC continues to develop new financial tools that enable companies to manage risk and broaden their
access to foreign and domestic capital markets. IFC has launched a broad and targeted set of
initiatives to help private enterprises cope with the global financial and economic crisis.
IFC investment in AU financiers will expand borrowing to low-income and underserved customers.
Alliance of IFC with AU financiers will enables us to mutually attain the purpose by strengthening
the business model of AU Financiers.
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SOCIAL RESPONSIBILITY
The company continues to contribute to the economic well being of the communities it interacts with
and enhances their social well being. The company during the year continued to involve itself in
social welfare activities by contributing to recognized charitable institution, which specifically
benefits the economically disadvantaged and socially weaker sections of the society. The Company
has regularly contributed to the “Akshay Patra Foundation”.
Akshay Patra Foundation runs “Nutritious food for children in schools” a well known mid-day meal
program targeted towards school going children from the under privileged sections of society. In the
current year the company donated a Mahindra Vehicle to Akshay Patra foundation”
Company is frontrunner in state of Rajasthan in phasing down old Diesel and Petrol 3 wheelers with
new upgraded LPG/CNG based 3 wheelers. Thereby, Company is supporting Govt. of India vision
of save energy and environment friendly vehicles on road for better future of our next generation.
Company’s 99% of lending is concentrated to vehicle financing and Company’s is focused on
financing of vehicles with greater fuel efficiency, lower emission of pollutants and new technology
including CNG/LPG. Company’s is looking forward to do “concentrated financing” of vehicles
which shall lead to:
1. Saving of fuel with better fuel efficiency with new technology vehicles.
2. Improvement by way of reduction in remission of polluting gases by funding of EURO
certification vehicles.
3. Funding of vehicles run on LPG / CNG with little or no atmospheric pollution. Company has been
financing following vehicles which leads to lower emission of pollutants and Higher fuel efficiency
and with sophisticated technology.
Company also promoting education by reimbursing the cost of education of children of our
employees who belong to economically weaker section of the society.
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Chapter – 3
Analysis
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PHASE I: AU FINANCE MAIN PRODUCTS
Vehicle Financing:-
Commercial vehicle loans will continue to remain the mainstay for the Company. Company
primarily offer our services for financing various types of heavy commercial vehicle, light
commercial vehicle, multi-utility offer our services for financing various types of heavy commercial
vehicle, light commercial vehicle, multi-utility vehicle, cars, three wheeler loading, three wheeler
passenger, tractor etc. of different reputed brands like Mahindra & Mahindra, Tata Motors, Piaggio
vehicles, Force Motors, Maruti, Chevrolet, Toyota, etc.
Features:
• Touch & Feel Policy
• Takeover/ Top-up Loans
• Simple documentation
• Quick credit decision
• Speedy approval & Disbursement
• Loan approval on NIP also i.e. Non Income Proof
• Wide repayment options such as Cash/FPDC/RPDC/ECS• Variable guarantor facility i.e. guarantor
can be Existing Customer/Family, Member/Govt. Employee/Any transporter etc.
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Loan against property
AU FINANCIERs supports your pressing need for capital and offers loans against property. Whether
it is an investment in new property or a crucial input for your business, we understand your
requirements and raise you a loan against your property as collateral.
Shubharambh (meaning-an auspicious start), by AU Financiers is a one of its kind product that
provides loans against your properties registered with the Gram Panchayat. Its features are:
1. Personalized verification and assessment
2. Fast processing
3. Business establishment support
4. Easy and flexible installment repayment
Small & Medium Enterprises Loan
An ability to nurture and support small entrepreneurs is our forte, and for substantiating our words
we provide financial solutions in the form of small secured loans to small businesses and other
income generation activities. The typical tenure of these loans is three to five years. Its features are:
1. Loans starting from as low as Rs.50,000
2. Flexibility to choose and EMI based loan
3. Least processing time in the industry
4. Complete guidance and hand-holding for the customer
5. Transparent services
PHASE I: CREDIT ANALYSIS OF THE VEHICLE LOAN
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Credit Process - Flow Chart
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Case Sourcing
(Sales Team)
Personal Discussion (Sales Team)
Credit Assessment Track ValidationCIBIL Check
(Tele Verification)
Credit Decisioning (Delegated Authority)
Delivery Order (At Hub Location)
File Processing (At HO by CPU)
StorageAudit
(External Auditor)
Disbursement
(At HO)
Audit ComplianceAudit Closure Certificate
Field Investigation
(Field Officer – Credit)
Case Sourcing
(Sales Team)
Credit Approval Process
The Credit approval process starts from the receipt of customer’s request/ enquiry through sources
and the processing of same, which culminates in the Approval of a Loan by the appropriate
authority. The process ends with the Communication of an approval of loan to the customer through
an offer/sanction letter
Case Sourcing:
All sales team are responsible for this job. Company believes that it will help us in transparency with
customer and will enable better understanding of customer’s requirement. It is responsibility of
Credit team to verify the source of case during the field visit or tele verification
CIBIL Check
Once the concerned sales executive satisfy with the customer and feels that overall requirement is
within company norms and customer profile is matching with required product, will collect the
required document i.e. address Proof/ID proof and will check the Credit History from Credit
bureau ,as per below given policy.
1. Three Wheeler: No CIBIL Check is required either for applicant or co applicant/ guarantor.
2. All Other Products:
a. Applicant: CIBIL report is mandatory and will be checked at branch level, at the
time of recommendation.
b. Co-Applicant / Guarantor: CIBIL report will be pulled by Credit team only as per below
given parameter
(i)If Co applicant / Guarantor is husband / Father / Son or beneficiary of the vehicle,
CIBIL report will be checked OR
(ii.) If funding is based on Co-Applicant / Guarantor then CIBIL report will be checked.
Other then above two conditions, CIBIL is not required for Co-Applicant / Guarantor
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Status of CIBIL Report:
No Match: If the CIBIL reports fetch “No match found”, executive will verify the detail through
which has fetched the report and detail found ok, then case may be considered for next level/process.
Good Match: If the CIBIL reports fetch credit History with good track record i.e. NO Delay (0
DPD), case will be considered for next Level / Process
Bad Match: If the CIBIL reports fetch credit history with delay payment/written off/settled /
overdue it needs to be approved by appropriate authority as per matrix. Any bad history need to be
approved by RCM based on facts and finding of credit and sales team. All such deviation must be
justified at the time of approval.
Field Investigation
Once the application qualified above parameter, concerned sale executive will login the file for FI
through telephonically or by email to concerned FI Coordinator/FI executive whichever is
applicable. The FI executive will conduct the investigation as per policy and submit his report to
Credit Manager / BM, in approved format and will also communicate the status of FI to concerned
sales executive to enable them to forward the case recommendation for approval.
Different Status of FI and their interpretation:
i. Positive: Customer is worth for recommendation for loan and does not have any drawback as per
initial verification. During the investigation no wrong /negative activity observed.
ii. Negative: Customer has some negative feedback from market or nature of business
activity/profile does not match with company policy &profile. Any customer will not classify as
“Negative” due to lack of experience only.
Any customer who is involved in business activity which is excluded (Annexure III) in
company policy will be classified as “Negative”.
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iii. Refer :If the CPV/FI executive is not able to take decision, due to any reason, it report may be
classified as “Refer” All cases which has been classified as “Refer” , the concerned credit
officer/manager needs to clear the concern after discussion with concerned CPV/FI executive and if
required may be visit the case before final recommendation.
Credit Assessment Memo:
Once the case satisfy all above parameter, concerned sales executive will prepare the CAM based on
the information and document available. The report should capture complete detail about applicant,
co applicant and guarantor (if available). Please note that this report is main document on which the
Credit decision will be taken; hence it become important that executive should not hide any fact in
fear of losing the case. It is always advisable that they should capture all the negative points/concern
and give their recommendation with mitigate that why they want to do this case. It will help in
assessing the proper risk involved in the deal. Please note that CAM must be signed by the sale
executive and will be considered that all information provided in the CAM is correct and verified by
the concern sales executive. After completing the recommendation the concern executive/branch will
forward the same with CIBIL (if applicable) to respective Credit Manager for approval.
Credit Assessment
Once the proposal received by respective Credit Manger he will assess the proposal as per below
parameters
CAM review: The Credit Manger will review the credit assessment memo and will understand the
customer profile and requirement, scheme offered by executive.
CIBIL Verification: He/She will verify and assess the CIBIL report (if applicable).
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Discussion with Field Investigation: Credit Manger will call the verification executive and will
take a view regarding profile of applicant’s any negative points observed during the verification.
This is required because some time the concerned executive will not be able to communicate
properly in writing.
Tele verification: Concerned Credit executive will call all the applicant’s and understand the
requirement of customer, product required, experience and existing income source. After verifying
all the above fact he/she will underwrite the case as per underwriting norms depending on the
vehicle segment.
Product & Profile Match: This is the most crucial part of the assessment. During assessment
everybody should check whether the required product matches customer requirement /living
standard. For example if a customer residing in slum or lower middle class area and asking for high
end vehicle, it shows that there is some third party involvement. All such mismatch should be
checked properly at every stage of approval.
Area Coverage: Branches should operate in the territory as allocated to them and shall not source
business from areas pertaining to other branches.
Approval Validity: All approval will be valid for 30 Days, in case of and delay beyond this period,
need fresh approval from concerned authority.
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Delivery Order (At Hub Location)
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File Dispactch to HOFiles Received by Sales Co-ordination team at HO.Verification of Payment detail & Marking Document details on file
forwarding memoFile Checking by NDC maker as per Operation Policy
Final Checking by NDC Checker for Critical things & ClassificationIf Pendency found in file after NDCFile Hand over to sales Co-ordination team for pendency updation in Web
Jaguar.Follow up with branch for pendency completionComplete file hand over to CPU
UNDERWRITING NORMS FOR COMMERCIAL VEHICLES.no Parameter Standard Policy Condition Risk & Mitigate1. Age Minimum 18 years at the
beginning of contract to maximum65 years at the end of the loanTenure
I. If Age of Applicant is less than 18Year
Risk: Applicant’s whose age is less than 18 year, cannot sign agreement as per law. Agreement will be invalid.
Mitigate : We should not fund
II. If applicant’s age is between 18 to21 year and profile is FTU/FTB
Risk: Customer of this age group will have less maturity, Liability towards family will be lesser and chances of diversion from current business in any ups & down will be high.
Mitigate: Father or any senior family member should be taken as co‐
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Agreement Franking of Complete Files
Complete File Marked as Disbursed in System
Agreement Signing of Disbursed Files
Disbursed File sent to feeding Team for syster Entry, PDC, PDD & Scanning
Files sent for External Audit
Disbursed Audited Files sent to stroage
applicant. It will also establish that parents also agreed for this Loan, and they will support applicant in any unfavorable circumstances. If above condition is not possible, case can be done subject to satisfaction of credit team based on other parameter
III. If applicant’s age is above 21 yearfor all profile (FTU/FTB/ Transporter)
No Risk related to Age
2. Residence Owned Residence In the name ofself or any family member(Father/Mother/Wife/Son/Parental)
I. If House Owner is Applicant and proof is available.Stability on Same Address :No minimum Limit
No Risk related to stability
II. If House Owner is Applicant’s family member, ownership proof and relationship proof is available Stability on Same Address :No minimum Limit
No Risk related to stability
III. If house owner is Applicant’s family member, ownership proof is available but no relationship proof is available. Stability on Same Address should be
Risk: It is possible that house owner is not family member of Applicant, wrong information has been provided.
Mitigate: We can
33FMS-IRM
Minimum 6 month. consider as owned
house if CPV / TVR supports that hose is owned by applicant’s family member. Applicant should have KYC of the same address.
IV. If House owner is Applicant or family member, but no document is available for ownership proof or relationship proof
Risk: It is possible that customer is residing in rented/temporary house and trying to do fraud.
Stability on Same Address should be minimum 1 year and 3 year in same City.
Facts: This condition may be possible where customer is residing in slum area / migrated from other city but living since so many years. Or it can be possible in old ancestral property
Mitigate :Document like Old Ration Card / DL / Voter ID card / OLD LIC policy / Old Gas Connection Pass book of the same address ,should be collected and CPV should verifies that customer is living in owned House.If above condition is not possible, Customer will be considered as rented Profile, and will be funded
34FMS-IRM
Agreement Franking of Complete Files
Complete File Marked as Disbursed in System
Agreement Signing of Disbursed Files
Disbursed File sent to Feeding Team for System Entry, PDC, and PDD & Scanning
Files sent for External Audit
accordingly
Rented Profile : Permanent address proof must be collected and FI has to be conducted Co‐borrower/ Guarantor should have owned house
Customer’s permanent address proofnot available / FI not possibleStability: 1 year on same address and 3 year in same city. (To be verified by document or CPV report)
Risk : Chances of fake address proof / information is highMitigate : Existing Customer should be taken as co‐applicant / Guarantor
3. Experience FTU – NILFTB – 12 Month as Driver , DL to be collected
Applicant is having experience in driving but valid DL is not available.
Risk : Information provided by applicant is wrong to avail higher LTV
Transporter - Minimum 12 month ownership in same of higher segment of vehicle
Customer is having ownership of less than 12 month
Mitigate: Experience should be verified from CPV and TVR. Number of person whose vehicle was taken on rent should be documentedMitigate: Such applicant can be considered as transporter subject to satisfaction of Credit Manager based on other parameter.
4 Telephone Mobile connection is compulsory. Number must be verified during TVR
5 Track Record
As Applicable according toProfile
Track available but repayment is not good(IF repayment can be verified through CIBIL, Track is not required) Special Condition :1. If average delay is more than 60 days and Peak delay is more than 90 Days, RCM approval is required.2. IF average delay is more than 90 Days, Credit Head Approval is required
Risk : Customer intention may not be good or customer may be overleveraged
Mitigate: Credit Team Should assess the reason for default and should mention in recommendation on what strength we are doing this case.
6. Identity Proof
As per KYC Policy Customer does not have any ID proof as per KYC policy.
Risk: Chances of fraud will be high, identity will not be
35FMS-IRM
Files sent for External Audit
established.Mitigate: All such case has to be specifically approved by Credit / Ops head with reason.
7 Ownership / Address Proof
As per KCY Policy Customer does not have proper address proof as per KYC policy
Risk: Chances of fraud will be high, identity will not be established.Mitigate: All such case has to be specifically approved by Credit /Ops head with reason.
8. RC Copies FTU – NAFTB – NA Transporter – At least 50% of fleet vehicles.
Customer is having vehicle but not in his own name, taken on agreement
Risk: Vehicle detail given by customer wrong, customer has given this information to avail higher LTV.
Mitigate: RC, purchase agreement and latest insurance copy to be collected. If no document is available, customer will be considered as FTB.
9. Co‐Borrower/Guarantor
Co‐Borrower / Guarantor should have vehicle of same or higher segment.
Co‐borrower / Guarantor do not have vehicle or experience in transportation line.
Risk: Co‐borrower / guarantor may not be able to support customer in vehicle operation.
Mitigate :Guarantor with
36FMS-IRM
other business activity can be considered if he is financial sound, subject to credit approval
(Table no. 02)
Borrower Profile:
The Credit Policy for commercial vehicle caters the following segment of customers.
First Time User (FTU) : Customer who do not have any commercial vehicle or do not
having any experience in the same segment directly of indirectly will be classified as FTU
First Time Buyer (FTB): Customer who have experience in managing the vehicle as driver
or who had vehicle in past but do not have any documentary evidence as vehicle ownership
will be classified as FTB. This profile will be a typically a driver who intends to by a vehicle
for his own. DL of same segment will be the mandatory document for this profile.
Transporter: These are the customers who have at least one commercial vehicle in same or
higher segment and minimum ownership period of 12 month.
Captive Users: These customers are not engaged in transportation business, they require
commercial vehicles to support their business. They may or may not own a commercial
vehicle. They differ from FTU in the sense, that while FTU will earn from the direct usage of
vehicle, the Captive user is not earning primarily from the vehicle.
Underwriting Norms – Personal Car / Personal Use Vehicle
37FMS-IRM
1. Target Segment/Customer: Individual / Firms /Company/Trust who wants to buy car for their
personal or official use. Based on the document availability and nature of available document, the
segment can be classified into following two categories. However it has been assumed that any
customer, who wants to buy a car for personal use, is having sufficient income to repay the EMI
after meeting out his/her family expenses.
2. Borrower Profile
a. Non Income Proof Customer: These are the segment, where customer do not have any
banking habit or do not have any proof to established his her business or in other terms their income
cannot be verified through any document. It can be assessed only based on personal discussion and
by verifying his business or living standard. It can be again reclassified in following two category:
I. Agri Base Funding: These are typically farmers, who depend on agricultural income and
living in joint family/independently. In case of joint family (Father/Mother/ Real brother), income of
other family can be clubbed /considered.
Document Required: Agri Land document in own name, in case parental property relationship
proof will be required.
II. Self Employed (Business): These are typically small business men, who do not have any
income proof. For example Shopkeeper / small trader / agents / property dealer / Private teacher
/employee getting salary in cash etc.
Document Required: Any proof which established the existence of business like RST/SCT copy /
Copy of purchase Bill/ Utility Bill in the name of Shop / Salary Certificate on letter head /
Photograph of Business premises supported by CPV report or any other relevant document as per
operation policy
(All such proof will help us in classifying the asset in PSL/Agri)
38FMS-IRM
b. Income Proof Customer: These are the profile where income can be accessed through
various documents like banking / ITR / Salary Slip / Form 16 /Balance sheet etc.
Documented Required: Latest 3 Month Salary Slip / 6 Month banking / Last 2 year ITR or Balance
Sheet. Documented gross income should be at least equivalent to yearly repayment amount. For
example: Salaried Customer who’s proposed EMI is 10000/- per month, in such case gross salary
should be minimum of 10000/- per month. In case customer is providing banking, in such case
average monthly bank balance should be at least equivalent to the monthly EMI. However the
assessed income (assessed by AU employee) should be at least 2 times of the EMI amount. All such
assessment will not require any supporting document, it has to be justified during recommendation /
credit underwriting and supported by CPV report. Credit team has to see whether customer is
capable to pay EMI after considering his all fixed expenses.
c. Repayment Based: Any customer who have the repayment history of personal car / MUV
or any four wheelers for more than 12 month will be considered as Income Based customer. Track
record or repayment proof of EMI for at least 12 month will be mandatory document; no additional
income document will be required.
PHASE II: Financial Position of the company
Comparative Analysis & Interpretation
Comparative Analysis: (See Appendix)
Particulars 31st March 2010
31st March 2011
Increase/Decrease/Rs.
Increase/DecreasePercentage
Total Current Assets
10,415.43 23,448.29 13,032.86 125.13
Total Current Liabilities
824.12 2165.65 1341.53 162.78
Total Assets 10835.00 24443.08 13,608.08 125.59Cash and other bank balances
3,7745.05 2845.12 (899.93) (24.03)
39FMS-IRM
Loans & Advances
4,000.03 15,144.80 11,144.76 278.62
Total Capital Employed
10,010.88 22,277.43 12,266.55 122.53
Secured LoansParticulars 31st March 2010 31st March 2011 Increase/Decrease/Rs Increase/Decrease
PercentageTerm Loan 4740.06 6337.53 1597.47 33.70Cash Credit 1267.03 4468.67 3201.64 252.69Total 6007.09 10,806.21 4799.12 79.89
Particulars 31st March 2010
31st March 2011
Increase/Decrease/Rs
Increase/DecreasePercentage
Operating Exp.
1,132.56 2301.71 1619.15 103.23
Total Provision/write offs
101.47 240.67 139.20 137.18
Total Expenditure = Operating Expenses + Total Provision/Write offsTotal Expenditure
1234.03 2542.38 1308.35 106.02
Total Income 2,284.46 5426.99 3,142.53 137.6PAT 565.53 129.12 727.59 128.66Net Profit 596.07 1338.93 742.86 124.63
(Table no. 03)
Interpretation:
The comparative analysis reveals that during 2011 there has been an
increase in current asset of Rs. 13,032.86 Lacks i.e. 125.13% and in the
current liabilities have increased by Rs. 1,341.53 Lacks i.e. 162.78% so
the current financial position has increased.
40FMS-IRM
The liquid Asset that is cash in hand, cash in bank shows a decrease in
2011 over 2010 this will not improve the liquidity position of the concern.
The other assets loans & advances have increase by Rs. 11,144.76 Lacks
it’s show that company business improved, and long term liabilities
increase in form of secured loan then it show that company have good
relationship with the banks in India.
The overall financial position of the company is satisfactory.
The comparative analysis reveals that there has been increase in
Operating Expenses 103.23% and total expenditure increased by Rs.
106.02%
The total income of the bank has increased by 137.6% and the company
earns the profit of Rs. 1338.93/- Lacks which is 124.63% more than the
previous year.
Ratio Analysis
Profitability Ratio:
41FMS-IRM
The primary objective of business undertaking is to earn profit is the words of Lord Keynes: “profit
is the engine that drives the Business enterprise”. Profit is not only needed for its existence but also
for its expansion and diversification. The investors want an adequate return on their investment;
workers want higher wages, creditor want high security for their interest and loan soon.
Following are the important overall profitability ratios, which relevant to the business concerns are:
Return on Assets
Return on Capital Employed
Return on Equity Capital
1. Return on Assets:
It states the relationship between net profit and total asset.
Return on Asset = Net Profit*100/Total Asset
Year Net Profit Total Asset Percentage
2009 294.74 2894.71 10.18
2010 596.07 10835.00 5.50
2011 1338.93 24,443.08 5.48
(Table no 04)
Relation of Net Profit and Total Asset by Diagram:
42FMS-IRM
(Figure no.03)Interpretation
The Return on asset of AU Financier’s (India) Pvt. Ltd is not satisfactory. The Assets are not utilized properly.
2. Return on Capital Employed:
It is widely used to measure the overall profitability and the efficiency of the business
Return on Capital Employed = Net Profit*100/Total capital employed
Year Net Profit Capital Employed Percentage2009 294.74 2,613.11 11.282010 596.07 10,010.88 5.952011 1,338.93 22,277.43 6.01
(Table no. 05)
Relation of Net Profit & Capital employed by diagram
43FMS-IRM
1 2 30
5000
10000
15000
20000
25000
Capital EmployedNet Profit
(Figure no. 04)
3. Return on Equity Capital
The equity share holders are the real owner of the company. They assume high risk in the company.
Return on Equity Capital = Net Profit*100/Equity capital
Year Net Profit Equity Capital Percentage2009 294.74 1000.02 29.472010 596.07 1,000.02 59.612011 1,338.93 1393.29 96.10
(Table no. 06)
Relation of Net Profit & Equity Capital Diagram
44FMS-IRM
1 2 30
500
1000
1500
2000
2500
3000
Equity CapitalNet Profit
(Figure no. 05)
Interpretation
The company has taken funds in the form of loans and advances irrespective of issuing equity capital
and hence, the cash has been paid in the form of interest which has increased manifold times from
the last year.
Liquidity Ratio:
45FMS-IRM
1. Current Ratio
Current ratio = current assets/current liabilities
Current Ratio for 2010: 10,415.43/824.12 = 12.64
Current Ratio for 2011: 23,448.29/2165.65 = 10.83
Interpretation:
The company has sufficient and excess funds available with it to repay its debt (in case) in both the
financial years 2010 and 2011. This implies that company has excess of cash in the form of advances
and cash and bank balances.
PHASE III: ANALYSIS OF LOANS TAKEN BY CONSUMERS AND FINDINGS THEREOF
46FMS-IRM
Result of Market Research:
A market research of approximately 50 people at random was conducted to understand the
Satisfaction level of the consumer. The survey was conducted with the help of some 50
questionnaires distributed. Following are the descriptive statistics that was inferred from the market
survey.
(See Appendix: - Questionnaire)
CHARACTERISTICS OF POPULATION
Every population either small or large has some unique characteristics of its own and there are
various factors that affect the population and make it behave in a certain manner. There might be
variations within the group however; their behavior if compared to that of any other population
group will vary substantially or at least to certain extent. The sample size of the population selected
for the market survey is of 50. The questionnaire used for the market survey is included in the
appendices of the project report (Appendix). The following is the list of charts prepared to analyze
the sample population.
AGE SEGMENTATION OF THE LOANS TAKEN
47FMS-IRM
Age Respondent
18-28 1428-38 2138-50 15>50 0
Total 50
(Table no. 07)
18-28 28-38 38-50 >50
Respondent 14 21 15 0
2.5
7.5
12.5
17.5
22.5
Respondent
Axis Title
(Figure no. 06)
Interpretation:
The sample population was divided into four different age groups to better understand their
behavior. The survey results show that majority of the auto loans were taken by the age group of 28 -
38.
SAMPLE POPULATION SEGREGATED AS PER THEIR ANNUAL INCOME
48FMS-IRM
Income Respondent Percentage< 1 Lakh 2 4%1-2 Lakh 30 60%2-5 Lakh 14 28%> 5 Lakh 4 8%
Total 50 100% (Table no. 08)
4%
60%
28%
8%
Respondent< 1 Lakh 1-2 Lakh 2-5 Lakh > 5 Lakh
(Figure no. 07)
Interpretation:
Second classification of respondent is based on the basis of their annual income. This classification
is done to know that mostly which income level people have more demand for loan. In Auto Loan on
an average the annual earnings of 60%% 1 - 2 lakh and the smallest percentage is 4% is less than 1
lakh.
SAMPLE POPULATION SEGREGATED AS PER THEIR OCCUPATION
Occupation Respondent Percentage
49FMS-IRM
Business Man 21 42%
Government Emp 1 2%Private Employee 27 54%
Farmer 1 2%Total 50 100%
(Table no. 09)
Business Man42%
Government Emp2%
Private Employee54%
Farmer2%
Respondent
(Figure no. 09)
Interpretation:
The third important consideration which helps to identify Occupation of the respondent the
occupation comprises of Government Employee, private employee, businessman and farmers.
SOURCES TO GET TO KNOW ABOUT AU
Source to knew about Au Respondent
50FMS-IRM
Newspaper 0
Advertisement 0Friends & Relatives 33
Others 13Total 50
(Table no. 10)
Newspaper Advertisment Friends & Relatives Others0
5
10
15
20
25
30
35
40
0 0
37
13
Respondent
(Figure no. 10)
Interpretation:
This question is asked in order to know the effectiveness of the advertisement strategy adopted by
Au finance. The result found by the survey shows that most of the customer knew about the various
loan schemes through their friends & relatives who had taken loan from Au Finance.
Recommend this company to your friends and relatives
51FMS-IRM
Recommend this company to your friends and relatives Respondent Percentage
Yes 38 76%No 12 24%
Total 50 100%(Table no. 11)
76%
24%
Respondent
YesNo
(Figure no. 11)
Interpretation:
As the graph depicts that 76% of people would recommend the company to their friends and
relatives. This shows the satisfaction level of the customers with AU financiers. And the 24% people
will not recommend because of the high interest rates and penalty charges not because of the
services.
WILL YOU PREFER AU ONCE AGAIN IN FUTURE??
52FMS-IRM
Will you prefer Au once again in Future Respondent Percentage
Yes 35 70%No 15 30%
Total 50 100%
(Table no. 12)
70%
30%
Respondent
Yes No
(Figure no. 12)
Interpretation:
As the graph depicts that 70% of people would prefer the company once again. This shows the
loyalty level of the customers with AU financiers. And the 30% people will not prefer because of the
high interest rates and penalty charges not because of the services.
Satisfied with the rate of interest
53FMS-IRM
Interest Justifiable Respondent Percentage
Yes 38 76%No 12 24%
Total 50 100%
(Table no. 13)
76%
24%
Respondent
YesNo
(Figure no. 13)
Interpretation:
The findings suggest that 76% customers are satisfied with the rate of interest charging by AUFIPL
and only 24% are unsatisfied. But the company should review its interest rates from time to time in
order to be competitive in the market and to improve customer satisfaction continually.
SATISFACTION LEVEL
Satisfaction Level Respondent Percentage
54FMS-IRM
Very Satisfied 8 6%
Satisfied 30 60%Somewhat satisfied 9 18%
Dissatisfied 3 6%Total 50 100%
(Table no. 14)
16%
60%
18%6%
Respondent
Very SatisfiedSatisfiedSomewhat satisfiedDissatisfied
(Figure no. 14)
Interpretation:
As per the survey, a majority of the people were satisfied of the facilities provided by AUFIPL.
However, a certain segment of the population was not at all satisfied with the services provided by
AUFIPL. Dissatisfaction depends largely on other factors for example, bad customer relationship,
and many such factors which are discussed in detail in the latter part of the report under the heading
suggestions which have been originally the complaints of dissatisfied customers.
Chapter – IV 55
FMS-IRM
Findings, Conclusion, Suggestion
FINDINGS
56FMS-IRM
1. The company has taken funds in the form of loans and advances irrespective of issuing
equity capital and hence, the cash has been paid in the form of interest which has increased
manifold times from the last year.
2. It is found during survey that company is not investing money in advertising and promotion
activities. All the customers got to know about Au through their friends and relatives
57FMS-IRM
SUGGESTIONS
FACTOR FIRST:
Some extra benefits can be introduced for the existing customers.
Advantages:
It will reduce switching of customers
It will attract new customers.
Suggestion: Since Au Financiers doesn’t provide two wheeler loans; it is recommended that
company should provide it so that it can capture more market.
FACTOR SECOND:
More emphasis should be laid on advertising of the products.
Advantages:
It will increase the awareness among the customers.
Suggestion: Au Financiers needs aggressive marketing and business strategy to compete
with other NBFC. It is suggested that company should formulate competitive policies and
apply push strategy.
FACTOR THIRD:
Focus on reducing the interest rates.
Advantages:
If the customers are getting more benefits on comparatively lesser rate of interest, they would
surely prefer the company.
58FMS-IRM
CONCLUSION
AU Financiers (India) Pvt. Ltd. is growing company with roots in Rajasthan, Maharashtra & Gujarat.
The financial profile of the company is good because company has good relationship with banks like
HDFC, IDBI, SBI, DCB, AXIS, BOI ANDHRA, PNB CBI, INDIAN, SIDBI, INDUSIND, &
SBOP. The number of people and customers is increasing very fast and the number of the branches
across the state is increasing very fast. Also the net worth of the company showing that company is
on good track.
Company is totally depended upon fund because company’s business is providing loans to
customers. Fund is the oxygen for the company because if company don’t have fund then it can’t
disburse loans to its customers.
The biggest USP of the company I found was it provide loan or it sanction loan at very less
documentation. Good coordination between organization and customers, which reveals the
importance of fair and clear business.
59FMS-IRM
Chapter – V
Bibliography
60FMS-IRM
BIBLIOGRAPHY
BOOKS
1. “C.R. KOTHARI”-Research Methodology
(Second Revised Edition)
Websites:
1. www.aufin.com
2. www.wikipedia.com
OTHER SOURCES:
1. Au finance annual report
2. Magazines
61FMS-IRM
Chapter – VI
Appendix
62FMS-IRM
LIST OF APPENDICES
QUESTIONNAIRE
Au financiers India Pvt. Ltd
Customer satisfaction measurement in the Au financiers India Pvt. Ltd
1. Name
2. AU Number3. Vehicle4. Finance Amount5. Contact No.
6. Age of the Respondent?
(i) 18-28
(ii) 28-38
(iii) 38-50
(iv) More than 50
7. Annual Income of the Respondent?
(i) Below 1 Lakh
(ii) 1-2 Lakh
(iii) 2-5 Lakh
(iv) 5 Lakh and above
63FMS-IRM
8. Occupation of Respondent
(i) Government Employees
(ii) Private Employees
(iii) Businessman
(iv) Farmer
9. How do you come to know about Au?
(i) Newspaper
(ii) Advertisement
(iii) Friends or relatives
(iv) Other (Specify _______________________________)
10. Have you borrowed loan from any other sources also?
(i) Yes (What are the things you like in Au?)
(ii) No (Why you preferred Au as compare to any other NBFC?)
_____________________________________________________________________
_____________________________________________________________________
11. For the Past how many times you have taken loan from this company?
(i) 1
(ii) 2
(iii) 3
(iv) More than 3
12. Do you feel that the procedure to apply loan with the Au was difficult?
(i) Yes
(ii) No, it was easy
64FMS-IRM
If yes, then how? _____________________________________________________
13. Would you recommend this company to your friends, relatives and associates?
(i) Yes
(ii) No
If No, then why? ______________________________________________________
14. Do you think that company takes unnecessary charges?
(i) Yes
(ii) No
If Yes then what?
________________________________________________________________________
15. Are the interest rates justifiable according to today’s inflationary scenario?
(i) Yes
(ii) No
16. Will you prefer Au once again in future?
(i) Yes
(ii) No
If No, then why?
________________________________________________________________________
17. For the past how much time you have taken loan from this company?
65FMS-IRM
18. How much time the Au took to sanction your loan? (From the time of application)
19. How satisfied are you with the services provided by the Au?
(i) Very satisfied
(ii) Satisfied
(iii) Somewhat satisfied
(iv) Dissatisfied
20. What are your suggestions for the betterment of the services provided by Au?
________________________________________________
_________________________________________________
66FMS-IRM
Comparative balance sheet:
Assets. 31th March 2010
31th March 2011
Increase/Decrease/ Rs.
Increase/DecreasePercentage
Current Assets.
Debtors Less than 6 Months
201.03 131.81 (69.23) (34.44)
Debtors More than 6 Months
45.44 6.00 (39.44) (86.80)
Loans & Advances 4,000.03 15,144.80 11,144.76 278.62
Accrued Interest on Loans
31.62 113.10 81.48 257.71
Trade Advances 450.88 566.53 115.65 25.65
Term Deposits 1,850.69 4,201.33 2,350.63 127.01
Cash and other bank balances
3,745.05 2,845.12 (899.93) (24.03)
Advances recoverable in cash/kind
38.83 337.53 298.71 769.33
Other current assets
51.86 102.08 50.22 96.83
Current Assets Total 10,415.43 23,448.29 13,032.86 125.13
Fixed Assets.Owen Assets. 191.32 764.46 573.14 299.57
Depreciation 89.44 112.04 22.60 25.27
Net Block = Owen Assets. – DepreciationNet Block 101.88 652.42 550.54 540.38
67FMS-IRM
Investments 317.69 342.37 24.68 7.77
Net Block + Investments
419.57 994.79 575.22 548.15
Total Assets = Total Current Assets. + Total Fixed AssetsTotal Assets 10,835.00 24,443.08 13,608.08 125.59
Current LiabilitiesSundry Creditors 114.37 211.56 97.19 84.98
Other current liabilities/provisions
375.82 612.75 236.93 63.04
EMI Payable Against Securitisation / Assignments
182.77 1,001.67 818.90 448.05
Provisions 151.16 339.67 188.51 124.71
Provisions for NPA
44.92 41.02 (3.91) (8.70)
Provision for Estimated Loss for Securitisation / Assignments
52.50 183.34 130.84 249.23
Other Provisions 53.74 115.31 61.57 114.58
Current Liabilities Total
824.12 2,165.65 1,341.53 162.78
Net Current Assets. = Current Assets – Current LiabilitiesNet Current Assets. 9,591.31 21,282.64 11,691.33 121.89
Total Capital Employed = Net Block + Investments + Net Current AssetsTotal Capital Employed
10,010.88 22,277.43 12,266.55 122.53
68FMS-IRM
Represented ByEquity Share Capital 1,000.02 1,393.29 393.27 39.33
Share Application Money
146.00 - (146.00) (100.00)
Compulsory Convertible Preference Shares
2,000.00 7,549.99 5,549.99 277.50
Reserves and Surplus
891.50 2,612.23 1,720.73 193.02
Less : intangibles - - - #DIV/0!
DTA 37.86 84.29 46.43 122.63
Tangible Net worth 3,999.66 11,471.22 7,471.56 186.80
Secured LoansTerm Loan 4,740.06 6,337.53 1,597.47 33.70
Cash Credit 1,267.03 4,468.67 3,201.64 252.69
Total 6,007.09 10,806.21 4,799.12 79.89
Unsecured LoansFrom Banks 4.13 - (4.13) (100.00)
Others - - - #DIV/0!
Total 4.13 - (4.13) (100.00)
Deferred Tax Liability
- - - -
Total Liabilities 10,835.00 24,443.08 13,608.08 125.59
Channel Business 15,417.00 13,630.00 (1,787.00) (11.59)
69FMS-IRM
Assigned Portfolio 5,348.00 19,839.87 14,491.87 270.98
Off Balance Sheet Assets
20,765.0 33,469.9 12,704.87 61.18
Assets Under Management
24,765.03 48,614.67 23,849.63 96.30
Comparison of income statement
31th March 2010
31th March 2011
Increase/DecreaseRs.
Increase/DecreasePercentage
ExpenditureSalaries and staff expenses
451.38 803.18 351.80 77.94
Admn. and Misc. expenses (incl. raw material)
681.18 1,498.53 817.34 119.99
Operating Expenses
1,132.56 2,301.71 1,169.15 103.23
Provision for NPAs
1.37 (3.91) (5.28) (385.53)
Provision for Credit Loss on Securitization
52.50 130.84 78.34 149.23
Provision for Overdue Debtors
8.21 (5.21) (13.41) (163.44)
Loan Written Off 39.40 66.68 27.28 69.23
Debtors Off - 52.27 52.27 5227
Total Provision / Write offs
101.47 240.67 139.20 137.18
Total Expenditure = Operating Expenses + Total Provision/Write offsTotal Expenditure 1234.03 2542.38 1308.35 106.02
70FMS-IRM
IncomeInterest on own books
546.82 1,556.14 1,009.32 184.6
Income under Channel Business
912.67 972.86 60.19 6.595
Income from securitization
537.84 2,082.89 1,545.05 287.3
Interest on FDR 105.59 191.84 86.25 81.68
Income from Operations
2,102.92 4,803.73 2,700.81 128.4
Other Income 181.54 623.26 441.72 243.3
Total Income 2,284.46 5,426.99 3,142.53 137.6
PBIDT = Total Income – Total ExpenditurePBIDT 1,050.43 2,884.61 1,834.18 174.61
Less:- Depreciation and Impairment of Fixed Assets
30.53 45.81 15.28 50.04
PBIT 1,019.90 2,838.80 1,818.90 178.34
Less:- Interest 185.10 914.06 728.95 393.81
Less:- Prior Period Adjustments
(2.15) 0.40 2.55 (118.60)
Less:- Misc. expn. written off
12.75 - (12.75) (100.00)
PBT 824.19 1,924.35 1,100.15 133.48
Less:- Tax 258.66 631.22 372.56 144.03
PAT 565.53 1,293.12 727.59 128.66
71FMS-IRM
Total Expenses = Total Income – Profit After Tax (PAT)
Total Exp. 1,718.93 4,133.87 2,414.94 140.49
Add : Depreciation
30.53 45.81 15.28 50.04
Gross cash accruals = Profit After Tax + Depreciation
Gross cash accruals
608.82 1,338.93 730.12 119.92
Less : Dividends - Pref. (Rs.)
- - - -
- Equity (Rs.)
- - - -
Net cash accruals 608.82 1,338.93 730.12 119.92
Net cash accruals/Total Income (%)
26.65 24.67 (1.98) (7.42)
72FMS-IRM
