1.

1 INTRODUCTION

1.1.1 Concept of Finance company

Finance company is an organization that originates loans for both businesses and
consumers. Much like a bank, a typical finance company acts as a lending entity by extending
credit. However, the main difference between a bank and a finance company is that, unlike a
bank, a finance company does not accept deposits from the public. Instead, a finance
company may draw funding from banks and various other money market resources. A
finance company may extend credit to individuals for v consumer purchases, as welasto
corporations for commercial use. A finance company may also specialize in providing
financing for a variety of installment plan sales. A finance company may also be affiliated
with a manufacturing firm or a holding company.

1.1.2 Definition of Financial Company

A company specializing in the lending of money to consumers, the purchasing of
accounts receivable, and the extension of credit to businesses is called as "Financial
Company"

1.1.3Financial Company Services

Financial company services are the economic services provided by the finance
industry, which encompasses a broad range of businesses that manage money banks, credit-
card company Financial services companies are present in all economically developed
geographic locations and tend to cluster in local, national, regional and international financial
centers.

1
1.1.4Aboutshriramcity Union Finance ltd.

Shriram City Union Finance (Shriram City) was established in 1986, and is part of the three
decade-old Shriram Group. As a deposit-accepting non-banking financial company (NBFC),
Shriram City is today India's premier financial services company specializing retail finance.
The Consumer Finance business of the group had its origins from the needs of the Chit Funds
customers and was started in year 2002 as a separate business unit, Shriram City.
With over 1000 Business Outlets across India, ShriramCity is listed on the BSE,NSE
,Madras Stock Exchanges and enjoys a high credit rating. Shriram City Union Finance
leverages on the Shriram Group's ecosystem to reach out to prospective customers and
Shriram City Union Finance's customer base over the years has significantly comprised of
customers of other entities in the Shriram Group.

2
 2.1 OBJECTIVES

The main objectives of the study are:

1. To study the various types of loans granted by Shiriram city Union finance.
2. To understand daily operations of the Shriram city office.
3. To study the loan disbursement process.
4. To study the various documents required for the loan.

2.2 SCOPE

This project is an important part of MBA. This project has given a lot of practical
knowledge. It has been possible to learn various types of learning loan process as well
as to experience the financial world and this project help me with real organizational
problems and challenge.

2.3 LIMITAIONS OF THE STUDY

1 The internal information like the actual rate of interest, profit ratio etc. Information are
not easily available various reports are studied for that.

2 The data of official completely depend on special software which not spread or share
Information to anyone so like these data or information fully depend upon executive.

3 Overall work done under a specific target time and so time limitation is a big issue for that
like TAT(Task Attempted Time) time period., So there should be increase.

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 3.1 INDUSTRY PROFILE

 Introduction
Non-banking financial companies (NBFCs) are fast emerging as an important segment of
Indian financial system. It is a heterogeneous group of institutions (other than commercial
and co-operative banks) performing financial intermediation in a variety of ways, like
accepting deposits, making loans and advances, leasing, hire purchase, etc. They raise funds
from the public, directly or indirectly, and lend them to ultimate spenders. They advance
loans to the various wholesale and retail traders, small-scale industries and self-employed
persons. Thus, they have broadened and diversified the range of products and services offered
by a financial sector. Gradually, they are being recognized as complementary to the banking
sector due to their customer-oriented services; simplified procedures; attractive rates of return
on deposits; flexibility and timeliness in meeting the credit needs of specified sectors; etc.

A Non Banking Financial Company (NBFC) is a company registered under the Companies
Act, 1956 of India, engaged in the business of loans and advances, acquisition of shares,
stock, bonds, hire-purchase insurance business or chit-fund business but does not include any
institution whose principal business includes agriculture, industrial activity or the sale,
purchase or construction of immovable property.
The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI)
within the framework of the [Reserve Bank of India Act, 1934] and the directions issued by
it. On November 9, 2017, Reserve Bank of India (RBI) issued a notification outlining norms
for outsourcing of functions/services by Non-Bank Financial Institution (NBFCs) As per the
new norms, NBFCs cannot outsource core management functions like internal audit,
management of investment portfolio, strategic and compliance functions for know your
customer (KYC) norms and sanction of loans. Staff of service providers should have access
to customer information only up to an extent which is required to perform the outsourced
function. Boards of NBFCs should approve a code of conduct for direct sales and recovery
agents. For debt collection, NBFCs and their outsourced agents should not resort to
intimidation or harassment of any kind. All NBFCs’ have been directed to set up a grievance
redressed machinery, which will also deal with the issues relating to services provided by the
outsourced agency.

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 Historical Background

The working and operations of NBFCs are regulated by the Reserve Bank of
India(RBI)within the framework of the Reserve Bank of India Act, 1934 (Chapter III B) and
the directions issued by it under the Act. As per the RBI Act, a non-banking financial
company is defined as:- (i) a financial institution which is a company; (ii) a non-banking
institution which is a company and which has as its principal business the receiving of
deposits, under any scheme or arrangement or in any other manner, or lending in any manner;
(iii) such other non-banking institution or class of such institutions, as the bank may, with the
previous approval of the Central Government and by notification in the Official Gazette,
specify. Under the Act, it is mandatory for a NBFC to get itself registered with the RBI as a
deposit taking company. This registration authorizes it to conduct its business as an NBFC.
For the registration with the RBI, a company incorporated under the Companies Act, 1956
and desirous of commencing business of non-banking financial institution, should have a
minimum net owned fund (NOF) of Rs 25 lakh (raised to Rs 200 lakh w.e.f April 21, 1999).
The term NOF means, Net owned funds (paid-up capital and free reserves, minus
accumulated losses, deferred revenue expenditure and other intangible assets) less, (i)
investments in shares of subsidiaries/companies in the same group/ all other NBFCs; and (ii)
the book value of debentures/bonds/ outstanding loans and advances, including hire-purchase
and lease finance made to, and deposits with, subsidiaries/ companies in the same group, in
excess of 10% of the owned funds.

 List of major products offered by NBFCs in India:

 Funding for commercial vehicles

 Funding of infrastructure assets
 Retail financing
 Loan against shares
 Funding of plant and machinery
 Project finance
 Unsecured personal loans
 Trade finance
 Venture finance

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 Importance of NBFC in India

 Getting finance from NBFCs has proved easier for many homeowners, small
businesses and also budding entrepreneurs.
 Generally, NBFCs process loan and finance applications faster. Those engaged in
wealth and asset management work purely on a profit basis.
 Meaning, they get a share of the profits made by your assets they handle. Hence,
sufficient care is often taken to ensure your investment does not lose unless there is a
severe downturn in the global and Indian economy.
 NBFC has also helped millions of economically and socially underprivileged Indians
to achieve their dreams by providing micro finance that helped start cottage industries
and homegrown ventures.
 Since all NBFCs come under the purview of the Indian government, RBI, National
Housing Bank and other state-run organizations, they ensure that investor interests are
cared for.

 Regulatory changes

Last year, the government liberalized the financial services sector by permitting 100%
foreign direct investment in the financial sector under the automatic route, subject to the
relevant entity being regulated by the Reserve Bank of India ("RBI") or other financial sector
regulators. Further, the benefit of the Securitization and Reconstruction of Financial Assets
and Enforcement of Security Interest Act 2002 was extended to 196 NBFCs allowing such
NBFCs to enforce security interests on assets charged to them, without having to resort to
either judicial or arbitral authorities. Now, the government is working towards harmonizing
the regulations applicable to various categories of NBFCs to facilitate ease-of-doing business
in this sector. The government is also taking actions towards a technological revolution in
this sector by implementing an information technology framework and promoting FinTech
activities.

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 Operational innovation and growth

With the rising innovation and growth in the sector, newer business models of NBFCs such
as 'account aggregators' and 'peer to peer lending platforms' ("P2P Lending") are catching
pace. To clarify, account aggregator is a form of NBFC engaged in collecting and providing
information on a customer's financial assets, in a consolidated, organized and retrievable
manner.

Further, P2P Lending is a form of crowd-funding which uses an online platform to match
lenders with borrowers to provide unsecured loans. RBI notified P2P Lending platforms as
NBFCs on 24 August 2017 and recently issued the Master Directions to regulate the P2P
Lending platforms on 4 October 2017.

The NBFC sector is also seeing a surge of newer structured products like Market and Credit
Linked Debentures wherein the principal investment of the debenture holder is protected and
the interest payment, to be made at maturity, is linked to the performance of an underlying
Index or a stock.

The country’s financial services sector consists of the capital markets, insurance sector and
non-banking financial companies (NBFCs). India’s gross national savings (GDS) as a
percentage of Gross Domestic Product (GDP) stood at 30 per cent in 2017. The total amount
of Initial Public Offerings increased to Rs 84,357 crore (US$ 13,089 million) by the end of
FY18. In FY17, individual wealth in India expanded to Rs 344 lakh crore (US$ 5,337.47
billion) from Rs 310 lakh crore (US$ 4,620.66 billion) in FY16.

7
3.5 Financial Institutions in India

Commercial Bank
(including Regional Rural banks)

Bank Co-operative Banks

Newer Banks like Payments

Banks & Small Finance Banks
Financial
Institutions
Development Bank
(mostly wound up now)
Insurance Companies

Non-Bank Mutual Funds

Non-Banking Financial
Companies

Others
(e g. Pension Funds, Primary
Dealers)

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3.6 Financial Markets in India

Financial Markets

Money Credit Bond Forex Stock Commodities

Ovemight Up to One Year G-Sec

CBLO Corporate Bonds

Call Money
Market Repo

T Bill

9
 4.1 COMPANY PROFILE

Shriram City Union Finance (SHRIRAM CITY) was established in 1986, and is part of the
three decade–old Chennai–based Shriram Group. The company started as a deposit–accepting
non–banking financial company (NBFC) and is premier financial services company today,
specializing in small–ticket retail finance.
The Chennai–based Shriram group has an enviable business heritage spanning over
three decades. It has emerged as the largest player in its class on the Indian sub–continent.
Specifically focusing on commercial vehicle loans, consumer durables financing and chit
funds, the group's annual turnover crosses Rs. 18,000 crore. The Shriram group?óÔé¼Ôäós
business presence also expands to Insurance Consultancy, Life Insurance, Re–insurance,
Stock Broking, Information Technology, Pharmaceuticals, Property Development, Project
Engineering, Packaging and manufacturing of Auto Components.
SHRIRAM CITY has a comprehensive range of offerings comprising financing for
Consumer Durables, 2, 3 & 4–wheeler finance (both new & pre–owned, passenger &
commercial), Personal Loans, Small Business Loans and Retail Gold Loans. This has
made SHRIRAM CITY a dominant player in the field and the only NBFC offering a wide
product range under one roof.
The company has over 633 Business Outlets across the
country, SHRIRAM CITY enjoys a high credit rating, as well as listing on the BSE, NSE &
Madras Stock Exchanges.
The company lends around Rs 300 crore a month in small–tickets of between Rs 8000
to Rs 1 lakh each, with tenors ranging from 12 to 36 months.
SHRIRAM CITY has serviced over 15 Lac customers till date and ads on an average
85,000 new customers every month.

4.2 Services offered by the company

Consumer Durable Finance– SHRIRAM CITY offers loans for a wide range of white
goods and lifestyle products, viz. air–conditioners, computer systems, high–end TVs, audio &
video systems, washing machines, refrigerators, microwave ovens, furniture, gym products.
The company has tie–ups with major manufacturers/dealers and retail outlets at showrooms
to enable easy access to products under finance.
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4.2.1 Auto Finance–:
SHRIRAM CITY currently offers a variety of loans against new and pre–owned two
wheelers, 3–wheelers, 4 wheelers (both passenger & commercial).
4.2.2 Personal Finance–:
SHRIRAM CITY offers quick finance at attractive interest rates with service at the
customer's doorstep. Shriram City offers hassle–free, non–end use specific loans with
minimum documentation.
4.2.3 Retail Gold Loans–:
Retail Gold loans are the latest addition to SHRIRAM CITY's product
line. SHRIRAM CITY's Retail Gold loans offer on–the–spot finance at attractive rates of
interest.
4.2.4 Small Business Loan–:
SHRIRAM CITY offers small business loans to self–employed professionals,
wholesale/retail dealers, general merchants, builders, manufacturers, hotel/ catering services,
tour operators, etc.

4.3 Vision & Mission

 VISION
Serving the underserved. Creating value at the bottom of the pyramid

 MISSION
Striving to serve the largest number of common people through quality non-banking financial
services

We shall strive at all times to build Shriram City into the very best organization, by
maintaining the highest standards of Corporate Governance, Personal Behavior of
Employees, and through timely delivery of quality non-banking.

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3.4 Shriram City Union Finance Organizational Structure

Top Management

Board of Directors

Vice President

Zonal Manager

Divisional Manager

Senior Branch Manager

Branch Manager

Assi. Branch Manager

Team Leader

Office Executive

Customer

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4.5 PRODUCT PROFILE

PRODUCT TYPE

Hypothecation Loan Non-Hypothecation Loan

Business Loan

Personal Loan
Two Wheeler Three Wheeler

Property
Against Loan

Four Wheeler
Secured
Personal Loan

Cross – Sell
Loan

Gold Loan

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 5.0 TYPES OF LOAN AND DISBURSEMENT PROCESS

5.1 Concept of Loan

o unsecured loan option is preferred, but not as common. In finance, a loan is the lending
of money from one individual, organization or entity another individual, organization
or entity. A loan is a debt provided by an entity (organization or individual) to another
entity at an interest rate, and evidenced by a promissory note which specifies, among
other things, the principal amount of money borrowed, the interest rate the lender is
charging, and date of repayment. A loan entails the reallocation of the subject assets)
for a period of time, between the lender and the borrower.

o In a loan, the borrower initially receives or borrows an amount of money, called the
principal, from the lender, and is obligated to pay back or repay an equal amount of
money to the lender at a later time.

o The loan is generally provided at a cost, referred to as interest on the debt, which
provides an incentive for the lender to engage in the loan. In a legal loan, each of these
obligations and restrictions is enforced by contract, which can also place the borrower
under additional restrictions known as loan covenants. Although this article focuses on
monetary loans, in practice any material object might be lent.

o Acting as a provider of loans is one of the principal tasks for financial institutions such
as banks and credit card companies. For other institutions, issuing of debt contracts such
as bonds is a typical source of funding.

o If you have never received a loan to purchase something, you are certainly in the
minority! Loans can be a great thing, but they can also get you into trouble. One of the
keys to being financially successful understands when loans are a good solution for
your situation. Loans are never a good idea if you can't afford to pay them back in the
required time frame. Let's explore what a loan is and find out some of the common
ways to borrow money.
14
 o A loan is when you receive money from a friend, bank or financial institution in
exchange for future repayment of the principal, plus interest. The principal is the
amount you borrowed, and the interest is the amount charged for receiving the loan.
Since lenders are taking a risk that you may not repay the loan, they have to offset that
risk by charging a fee -known as interest, Loans typically are secured or unsecured.

o A secured loan involves pledging an asset (such as a car, boat or house) as collateral for
the loan. If the borrower defaults, or doesn't pay back the loan, the lender takes
possession of the asset.

5.2 Definition of Loan

"Written or oral agreement for a temporary transfer of a property (usually cash) from
its owner (the lender) to a borrower who promises to return it according to the terms of the
agreement, usually with interest for its use. If the loan is repayable on the demand of the
ender, it’s called a demand loan

If repayable in equal monthly payments, it is an installment loan. If repayable in

lump sum on the loan's maturity (expiration) date, it is a time loan. Banks further classify
their r categories such as consumer, commercial, and industrial loans, construction and
mortgage loans, and secured and unsecured loans is called as loan"

"Loan may be provided for a short term, long term and medium term. The loans may
be provided some security, guarantee etc. the borrower may use these funds for starting a
venture, housing purpose for personal purpose is called as Loan" 16

15
5.3 product

PRODUCT TYPE

Hypothecation Loan Non-Hypothecation Loan

Business Loan

Personal Loan
Two Wheeler Three Wheeler

Property
Against Loan

Four Wheeler
Secured
Personal Loan

Cross – Sell
Loan

Gold Loan

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5.4 Types of loan and document required
5.4.1 Non-hypothecation loan
5.4.1.1 Personal loan

Shriram City Union Finance offers personal loans to customer segments that do not have easy
access to banks and similar institutions for speedy short or medium finance. Shriram City
Union Finance provides personal loans to its existing and old customers, as well as customers
of other Shriram Group entities.

 Basic product features and Eligibility criteria

o No Cheque bounces in Bank statements

o Repayment through Equated Monthly Installments
o Declaration of existing loan commitments
o Should be employed for a minimum period of 1 year. In case of self
employment - 2years
o Should be in the same residence for a minimum period of 1 year
o Minimum Tenor - 12 Months Maximum Tenor 36 months - Scheme based
o For minimum income criteria, please do visit our nearest branch

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 Eligibility criteria

 Age - 18 to 59 years of age

 Salaried and Self Employed individuals

 DOCUMENT REQURED
 Applicant
1. Id proof
2. Address proof
3. Business proof
4. Income proof
5. Last 6 months banking
6. Pan cord
7. Adhar card.
8. Cheques

 Guarantor – 1
1. Id proof
2. Address proof
3. Pan card
4. Adhar card
5. Business proof
6. Banking last 3 months

 Interest Charges

MONTHS INTREST RATE

12 20%

24 20%

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5.4.1.2 GOLD LOAN

We offer loan against gold jewelry, primarily to individuals who possess gold jewelry but do
not have access to formal credit within a reasonable time, or to whom credit may not be
available at all, to meet their short-term requirements. Shriram City Union Finance targets the
customers who otherwise continue to rely on the unorganized sector for timely funding
requirements. Shriram City Union Finance has capitalized on the ‘Shriram’ brand name to
build a credible and reliable gold loan business.

 Basic product features and Eligibility criteria

 Loans granted up to 60% of the net value of the jewel

 Net weight and value of the jewel will be decided by Shriram city Union Finance
 Tenor and interest servicing is as per the scheme selected

 DOCUMENT REQURED
 Adhar card
 PAN Card

 Interest Charges

MONTHS INTEREST RATE

6 0.95%
12 1.00%
24 1.00%

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5.4.1.3 Business Loans

Shriram City Union Finance started offering customized loans to the Small Enterprise
segment in 2006, and since then, has continually focused on widening its customer base for
this product. The small enterprises segment comprises of self-employed professionals,
wholesale and retail dealers, merchants, builders, small and medium scale manufacturing
concerns, catering services, tour operators, etc. Loans are customized to suit the requirements
of the customers after having assessed and understood their business model.

Shriram City Union Finance believes that the small enterprises finance segment is still largely
under banked, and most of the lending in this sector has traditionally been addressed by the
unorganized players in various regions in India. Shriram City Union Finance expects the
small enterprise segment which contributes 17% of India’s GDP to grow significantly in the
coming years

 Basic product features and Eligibility criteria

 Minimum years in Business - 2 years

 For minimum income criteria, please do visit our nearest branch
 Business Registration Certificate
 Loan amount to be utilized for business purposes
 Annual Income requirement will be based on the loan amount
 No Cheque bounces in Bank statements
 Declaration of existing loan commitments
 Should be in the same residence for a minimum period of 1 year
 Minimum Tenor - 12 Months
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 Eligibility

 Individuals : Age - 21 to 58 years of age

 Self-employed individuals
 Professionals
 Sole proprietorships / Partnerships / Limited and private Limited companies

 DOCUMENT REQURED

 Applicant –:

1. Id proof
2. Address proof
3. Business proof
4. Income proof
5. Last 6 month banking
6. Pan card
7. Adhar card
8. ITR last 3 year
9. Cheques
10. Bank sign verification

 Co – applicant – ( Wife/ Mother/Father/ Brother)

1. Id proof
2. Address proof
3. Pan card
4. Adhar card
5. Bank sign verification

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  Guarantor – 1

1. Id proof
2. Address proof
3. Pan card
4. Adhar card
5. Business proof
6. Banking last 3 month
7. ITR last 3 year

 Guarantor – 2
1. Id proof
2. Address proof
3. Pan card
4. Adhar card
5. Business proof
6. Banking last 3 month
7. ITR last 3 year

 Interest charges

MONTH INTEREST RATE

12 18%
24 18%
36 18%

22
5.4.1.4 Hypothecation loans
Two wheeler loan

Shriram City Union Finance currently offers various options for financing the
purchase of two wheeler vehicles across manufacturers and brands. A widespread presence in
dealer showrooms, and with preferred finance tie-ups with all two wheeler brands in India
have given Shriram City Union Finance a distinct edge in segment

. Shriram City Union Finance executives man dealer showrooms with a dedicated team to
clear proposals, making it the quickest and most efficient financing option a customer can ask
for

 Basic product features and Eligibility criteria

 Basic product features

 For Used and New Two Wheelers

 For minimum income criteria, please do visit our nearest branch
 No Cheque bounces in Bank statements
 Repayment through Equated Monthly Installments
 Declaration of existing loan commitments
 Should be employed for a minimum period of 1 year. In case of self-employment -
2years
 Should be in the same residence for a minimum period of 1 year

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  Eligibility criteria

 Age - 18 to 59 years of age

 Salaried and Self Employed individuals

 DOCUMENT REQURED
 Passport
 Driving Licence
 Voter ID Card
 Aadhar Card
 Pan card
 Recent Passport size color photographs
 Income Proof Documents
 Bank Statement for last 6 months
 Post Dated Cheques and Electronic Clearing Mandates
 Legal Documents as stipulated by Shriram City Union Finance Limited
 Duly endorsed Vehicle Registration Certificate on receipt
 Any other document as advised by Shriram City Union Finance

 Interest charge
MONTH INTEREST RATE
12 14%
16 15%
24 16%

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 5.4.1.5 Three wheeler/Commercial vehicle

Shriram City Union Finance offers a variety of loans to finance the purchase of new
and pre-owned passenger and commercial vehicles. This includes three wheelers, four
wheelers, used and new cars. Shriram City Union Finance principally targets the financing of
new passenger and commercial vehicles. Shriram City Union Finance’s executives are
stationed at the showrooms of various passenger and commercial vehicle dealers. They are
responsible for every stage of the loan, right from bringing in the customer, credit verification
and loan origination to recovery of the loan.

 Basic product features and Eligibility criteria

 Basic product features

 Funding will be for Used and New Cars also

 No Cheque bounces in Bank statements
 Repayment through Equated Monthly Installments
 Declaration of existing loan commitments
 Should be employed for a minimum period of 1 year. In case of self-employment -
2years
 Should be in the same residence for a minimum period of 1 year
 Minimum Tenor - 12 Months Maximum Tenor 36 months - Scheme based
 For minimum income criteria, please do visit our nearest branch
25
Eligibility criteria

 Age - 21 to 59 years of age

 Salaried and Self Employed individuals

VEHICLES

 Cars / Commercial Vehicles / Tractors

DOCUMENT REQURED

 Passport
 Driving Licence
 Voter ID Card
 Aadhar Card
 PAN Card
 Recent Passport size color photographs
 Income Proof Documents
 Bank Statement for last 6 months
 Post Dated Cheques and Electronic Clearing Mandates
 Legal Documents as stipulated by Shriram City Union Finance Limited
 Duly endorsed Vehicle Registration Certificate on receipt for New Vehicles
 Duly endorsed Vehicle Registration Certificate before sanction for Used Vehicles
 Any other document as advised by Shriram City Union Finance

 Interest charges

MONTHS INTEREST RAT

12 20%
24 20%
36 20%

26
5.4.1.6 Four wheeler loan

Shriram City Union Finance offers a variety of loans to finance the purchase of new
and pre-owned passenger and commercial vehicles. This includes three wheelers, four
wheelers, used and new cars. Shriram City Union Finance principally targets the financing of
new passenger and commercial vehicles. Shriram City Union Finance’s executives are
stationed at the showrooms of various passenger and commercial vehicle dealers. They are
responsible for every stage of the loan, right from bringing in the customer, credit verification
and loan origination to recovery of the loan

 Basic product features and Eligibility criteria

 Basic product features

 Funding will be for Used and New Cars also

 No Cheque bounces in Bank statements
 Repayment through Equated Monthly Installments
 Declaration of existing loan commitments
 Should be employed for a minimum period of 1 year. In case of self
employment2years
 Should be in the same residence for a minimum period of 1 year
 Minimum Tenor - 12 Months Maximum Tenor 36 months - Scheme based
 For minimum income criteria, please do visit our nearest branch

27
 Eligibility criteria

 Age - 21 to 59 years of age

 Salaried and Self Employed individuals

 VEHICLES
 New and old Cars only

 DOCUMENT REQURED
 Passport
 Driving Licence
 Voter ID Card
 Aadhar Card
 PAN Card
 Recent Passport size color photographs
 Income Proof Documents
 Bank Statement for last 6 months
 Post Dated Cheques and Electronic Clearing Mandates
 Legal Documents as stipulated by Shriram City Union Finance Limited
 Duly endorsed Vehicle Registration Certificate on receipt for New Vehicles
 Duly endorsed Vehicle Registration Certificate before sanction for Used Vehicles

 Interest charges

MONTHS INTEREST RAT

12 20%
24 20%
36 20%

28
5.4.1.7 Shriram City union Finance Loan Disbursement Process

AGE (25 Years)

Enquiry

Cibil check

Field Investigation

Criteria check

File process

Credit

Punching

CPU process

File Check

Discrepancy solving

Disbursement

Cheque Printing/ RTGS

29
 Explanation of disbursement process

Stage 1:- AGE (25 Years)

The minimum age is 25 years completed and maximum age is 65 years. For salaried
guarantors minimum age is 25 years completed and maximum age is 60 years or retirement
(whichever is earlier. For government guarantor confirmation is necessary (No minimum age
limit).

Stage 2:- Enquiry

In this enquiry stage give all information about loan to the customer, in that which document
are required loan and criteria of loan sanction this type of information are collect form the
customer.

Stage 3:- Cibil check

In this stage check a cibil of customer in that if cibil score are should be above 600 than
allow for the loan to the customer.

Stage 4:- Field Investigation

Field investigation must always be done by recovery executive. Field investigation is

mandatory for customer as well as guarantor at both residence & office. In case of rented
residence, field investigation must be done at both rented address & permanent address.

Stage 5:- Criteria check

In this stage check the criteria of loan in that, the secured loan criteria is

 After completing 24 EMI of previous loan tenure.

 Maximum loan EMI of new loan can only be 20% more than previous EMI
 If customer has pre-closed his loan then 3 months gap is required after settlement.
 Only the old valuation well be taken into account while funding the Top Up.
 The proposal well be considered only with ED sir approval.

30
Stage 5:- file process

In this stage make a file of customer and all document are attach to the file with sequence
voice. Than take agreement and signature of customer.

Stage 6:- Credit

In the credit stage after the file process then make one credit form than fill the all
information of file.

Stage 7:- Punching

In the punching stage online verification of KYC document of customer, than create one
customer ID.

Stage 8:- CPU process

In a CPU process all activity are complete at branch level than send the file to CPU. In CPU
center all file are check, if file are complete than go to the next stage if a file are uncompleted
than send the return to the branch.

Stage 8:- File Check

In this stage check all document of file in that cross verification of all document

Stage 9:- Discrepancy solving

In this stage if any discrepancy in the file than sol this discrepancy it means if any document
are required to the file than attach the document to the file.

Stage 10:- Disbursement

In disbursement stage all activity are completed of loan file in this stage sensation of loan.

Stage 11:-Cheque Printing/ RTGS

In this stage whatever the loan amount of customer this amount are transfer of customer
account.

31
  Serve of disbursement process:

As per the disbursement process I have done the serve of disbursement process I have
meet 50 customer of Shriram city union finance limited in that I have asks the question of
related to the disbursement process like which stage you have face a problem for the
completing loan file, in that some customer are say when at a time of loan file process if our
cbil course are not less than 600 at a time of face a problem. And when at a time of loan file
process documents are required to loan file but that’s situation some document are not
available to the customer that time problem are facing of customer. Than after next stage is
when a loan file are the send to the CPU center. At a time of when the file are cross checking
that time if any query are having in file it means any documents are reaming are that time
more facing the problem to the customer.

In the disbursement process customer are facing the problem in three stage this stage
is cbil checking, file process, cross checking/ discrepancy.

32
6.1 RESEARCH METHODOLOGY

 DEFINITION:-

“Research is a process of steps used to collect and analyze information to increase our
understanding of a topic or issue.”

 PRIMARY DATA:-

Data was collected by visiting all the departments and direct talk with the officers in
respective departments.

 SECONDARY DATA:-

Since the study was based on the financial aspect of the company Data was collected
through

1) Annual report of the organization

2) Balance sheet of last five years of the company

3) Company websites www.shriramcity.in

4) M Y Khan, “Indian Financial System” 5th Edition reprint 2008 published by: Tata
McGraw-hill Publishing Company Limited
33
 TOPIC FOR RESEARCH:-

Types of Loan and Disbursement Process.

 DATA COLLECTION METHOD:-

Both primary and secondary type of data was used for research.

 PRIMARY DATA:-

Data was collected by visiting Shriram city branch of Vaijapur and direct talk with the
officers in respective departments.

 SECONDARY DATA:-

Since the study was based on the financial aspect of the company Data was collected
through

Annual report of the organization

Sales of last three years of the branch

Company websites www.shriramcity.in

Money control.com

34
 DATA ANALYSIS & INTERPRETATION

7.1 Changes in Share capital (Year 2014-2018)

Changes in Share capital (Year 2014-2018)

Year Amount( In Cores)
2014 59.28
2015 65.91
2016 65.93
2017 65.94
2018 65.97

Total Share Capital

Changes in Share capital (2014-2018) Amount( In Crores)

65.91 65.93 65.94 65.97

59.28

2014 2015 2016 2017 2018

 ANALYSIS & INTERPRETATION

Analysis of this chart the share capital is last fore yare is constant.

This chart shows in the year 2014 was share capital is less than the next four year, but in
the year 2015-16-17-18 share capital is constant

35
 7.2 Changes in Secured Loan (Year 2014-2018)

Changes in Secured Loan (Year 2014-2018)

Year amount (In Cores)
2014 7,756.95

2015 6,132.30

2016 7,001.26

2017 9,076.10

2018 16,229.82

Secured loan
amount ( In Crores)

16,229.82

9,076.10
7,756.95
7,001.26
6,132.30

2014 2015 2016 2017 2018

 ANALYSIS & INTERPRETATION

Analysis of this chart as per the last for year the current year secured loan is increases.

This chart shows in the year 2014 secured loan is 7,756.95 but in the year 2015 the
secured loan is less than the last year, than in the year 2016-17-18 the secured loan is
increase.in the year 2018 the secured loan is 16,229.82.

36
 7.3 Changes in Total Current Asset (Year2014-2018)

Changes in Total Current Asset (Year 2014-2018)

Year Amount ( In Cores)
2014 2,472.89
2015 781.43
2016 641.91
2017 637.13
2018 532.1

Total Current Asset

Amount ( In Crores)

2,472.89

781.43
641.91 637.13
532.1

2014 2015 2016 2017 2018

 ANALYSIS & INTERPRETATION

The analysis of tis chart the total current asset of 2014 was wary high, but as per the nest
four year it is decrease year bay year.

This chart shows in the year 2014 the total currant asset is very high but next four year
the current asset is decrease.

37
 7.4 Changes in Total Current Liability (Year2014-2018)

Changes in Total Current Liability ( Year 2014-2018)

Year Amount ( In Cores)
2014 3,796.28
2015 4,494.77
2016 5,227.01
2017 4,662.35
2018 5,522.65

Total Current Liability

Amount ( In Crores)

5,522.65
5,227.01

4,494.77 4,662.35

3,796.28

2014 2015 2016 2017 2018

 ANALYSIS & INTERPRETATION

The analysis of this chart as per the last four the current liability is increase in current
year.

This chart shows in the year of 2014 the current liability was very low but in the year
of 2016 the current liability was increase than in the year 2017 current liability was again
decreases but in the year 2017 the current liability is increase

38
 7.5 Changes in Total Revenues (Year2014-2018)

Changes in Total Revenues

(Year 2014-2018)
Year Amount ( In Cores)
2014 3,238.63

2015 3,531.63

2016 3,856.02

2017 4,434.53

2018 5,101.57

Total Revenues
Amount ( In Crores)

5,101.57
4,434.53
3,856.02
3,531.63
3,238.63

2014 2015 2016 2017 2018

 ANALYSIS & INTERPRETATION

The analysis of this chart as per the all five year the total revenues is incriase the year bay
year.

This chart shows in year 2014 the revenues was 3,238.63 than in year 2014-15-16-17 the
revenues was increase, now the current year 2018 the revenues is 5,101.57

39
 7.6 Changes in Total Expenses (Year2014-2018)

Changes in Total Expenses ( Year2014-2018)

Year Amount ( In Cores)
2014 2,458.76

2015 2,690.55

2016 3,049.18

2017 3,580.89

2018 4,083.79

Total Expenses
Changes in Total Expenses (2014-2018) Amount ( In Crores)

4,083.79
3,580.89
3,049.18
2,690.55
2,458.76

2014 2015 2016 2017 2018

 ANALYSIS & INTERPRETATION

The analysis of this chart as per the last five year the total expences is increase year bay
year.

This chart shows in year 2014 expenses is 2,458.76 than year by year the expenses was
increases now in the year 2018 the expenses is 4,083.79.

40
 7.7 Changes in Operating Profit Ration (Year2014-2018)

Changes in Operating Profit Ratio (Year2014-2018)

Year Amount (In %)
2014 65.82

2015 65.82

2016 57.67

2017 54.84

2018 53.4

Operating Profit Ration

Changes in Operating Profit Ration (2014-2018) Amount (In %)
65.82 65.82
57.67
54.84 53.4

2014 2015 2016 2017 2018

 ANALYSIS & INTERPRETATION

The analysis of this chart as per the all five year the operating profit is decrease.

This chart shows in year 2014 the operating profit was very high but next four year it was
year by year decrease now the in the year of 2018 the current ratio is 53.4.

41
 7.8 Profitability Ratios
Changes in Net Profit Ratio (Year2014-2018)

Profitability Ratios
Changes in Net Profit Ratio ( Year2014-2018)
Year Amount (In %)
2014 16.49

2015 16.04

2016 13.8

2017 12.29

2018 12.83

Changes in Net Profit Ratio (2014-2018)

Changes in Net Profit Ration (2014-2018) Amount (In %)

16.49 16.04
13.8
12.29 12.83

2014 2015 2016 2017 2018

 ANALYSIS & INTERPRETATION

The analysis of this chart as per the year 2014 and 2015 the current year ratio is decrease.

This chart shows in the year of 20104 and 2015 the profitability ratio was is very high but in
the year 2016 and 2017 the profitability ratio was decrease, but in the year 2018 the
profitability ratio is increases.

42
 7.9 Solvency Ratios

Changes in Current Ratio (Year2014-2018)

Solvency Ratios
Changes in Current Ratio (Year2014-2018)
Year Amount (In %)
2014 3.24

2015 2.38

2016 2.57

2017 2.15

2018 2.05

Current Ratio
Changes in Current Ratio (2014-2018) Amount (In %)
3.24

2.57
2.38
2.15 2.05

2014 2015 2016 2017 2018

 ANALYSIS &INTERPRETATION
The analysis of this chart as per the last four the current year 2018 the current ratio is
decrease.

This chart shows in the year 2014 the current ratio was very high but in the year 2015 the
current ratio was decrease than in the year 2016 it was increase but in the year 2017 and 2018
the current ratio is decrease.

43
 7.10 Turnover Ratio
Changes in Fixed Assets Turnover Ratio (Year2014-2018)
Turnover Ratio
Changes in Fixed Assets Turnover Ratio (Year2014-2018)
Year Amount (In %)
2014 19.06
2015 18.32
2016 18.27
2017 19.08
2018 19.28

Changes in Fixed Assets Turnover Ratio (2014-2018) Amount (In

%)
Changes in Fixed Assets Turnover Ratio (2014-2018) Amount (In %)
19.28
19.06 19.08

18.32 18.27

2014 2015 2016 2017 2018

 ANALYSIS & INTERPRETATION

The analysis of this chart as per the last four the current year 2018 the Fixed Assets
Turnover Ratio is increase.

This chart shows in year 2014 the fixed assets turnover ratio was 19.06 but in the year of
2015 and 2016 the fixed assets turnover ratio is decrease. But in the year 2017 and 2018 the
fixed assets turnover ratio is increase.

44
 7.11 Assets Turnover Ratio

Changes in Total Assets Turnover Ratio (Year2014-2018)

Changes in Total Assets Turnover Ratio (Year2014-2018)

Year Amount (In %)
0.26
2014
0.26
2015
0.25
2016
0.23
2017
0.23
2018

Total Assets Turnover Ratio

Changes in Total Assets Turnover Ratio (2014-2018) Amount (In %)

0.26 0.26

0.25

0.23 0.23

2014 2015 2016 2017 2018

 ANALYSIS & INTERPRETATION

The analysis of this chart as per the last four the current year 2018 the Total Assets
Turnover Ratio is decrease.

This chart shows in the year of 2014 and 2015 the total assets turnover ratio is very high
(0.26) but in the year 2016bthe assets turnover ratio is decrease. Than in the year 2017 and
2018 it is again decrease.

45
 7.12 Changes in Asset Turnover Ratio (Year2014-2018)

Changes in Asset Turnover Ratio (2014-2018)

Year Amount (In %)
2014 0.26

2015 0.27

2016 0.27

2017 0.26

2018 0.25

Changes in Asset Turnover Ratio

Changes in Asset Turnover Ratio (2014-2018) Amount (In %)

0.27 0.27

0.26 0.26

0.25

2014 2015 2016 2017 2018

 ANALYSIS&INTERPRETATION
The analysis of this chart as per the last four the current year 2018 the Assets Turnover
Ratio is decrease.

This chart shows in the year 2014 the assets turnover ratio was 0.26 but in the year 2015 and
2016 the asset turnover ratio was constant than in the year 2017 and 2018 the asset turnover
ratio is again decrease.

46
 7.13 Debt Equity Ratio

Debt Equity Ratio

Changes in Debt Equity Ratio ( Year 2014-2018)
Year Amount (In %)
2014 3.1

2015 2.2

2016 2.38

2017 2.84

2018 3.05

Changes in Debt Equity Ratio (2014-2018) Amount (In %)

Changes in Debt Equity Ratio (2014-2018) Amount (In %)

3.1 3.05
2.84

2.38
2.2

2014 2015 2016 2017 2018

 ANALYSIS&INTERPRETATION

The analysis of this chart as per the last four the current year 2018 the Debt Equity Ratio
is increase.

This chart shows in the year 2014 the Debt Equity ratio was very high but in the year
2015 and 2016 it was very low than after in the year 2017 and 2018 the Debt Equity ratio is
increase

47
 7.14 ANALYSIS OF LOAN (YEAR 2014-15)
(Vaijapur Branch)

TYPES OF LOAN AMOUNT (In lakhs )

Gold loan 35

Business loan 30.5

Hypothecation loan 10.55

Secured personal loan 10.2

personal loan 10

Types of loan

10%
Gold loan
11%
36% Business loan
Hypothecation loan
11%
Secured personal loan
personal loan
32%

 ANALYSIS & INTERPRETATION

Analysis of this chart the Gold loan sale is high compare the other loans because
customer has given the more preference to Gold loan than other loan
This chart shows that for the New year 2014-15 maximum loan being granted for Gold
loan. The minimum being granted for personal loan. The S.P loan is near to hypothecation
loan.

48
 7.15 ANALYSIS OF LOAN (YEAR 2015-16)

(Vaijapur Branch)

TYPES OF LOAN AMOUNT (In lakhs)

Gold loan 15

Business loan 50

Hypothecation loan 18

Secured personal loan 12

personal loan 15

Types of loan

14% 14%
Gold loan

11% Business loan

Hypothecation loan
Secured personal loan
16%
45% personal loan

 ANALYSIS & INTERPRETION

Analysis of this chart the Business loan sale is high compare the other loans because
customer has given the more preference to Business loan than other loan.

This chart shows that for the New Year 2015-16 maximum loan being granted for
Business loan. The minimum being granted for personal loan. The Hypothecation loan is near
to Gold loan and higher than personal loan.

49
 7.16 ANALYSIS OF LOAN (YESR 2016-17)
(Vaijapur Branch)

TYPES OF LOAN AMOUNT (In lakhs)

Gold loan 50

Business loan 60

Hypothecation loan 70

Secured personal loan 20

personal loan 20

AMOUNT

9%
9% 23% Gold loan
Business loan
Hypothecation loan
Secured personal loan
32%
27% personal loan

 ANALYSIS & INTERPRETAION

Analysis of this chart the Hypothecation loan sale is high compare the other
loans because customer has given the more preference to Hypothecation loan than
other loan.
This chart shows that for the New Year 2016-17 maximum loan being granted
for hypothecation loan. The minimum being granted for s.p. loan & personal loan.
The Business loan is near to gold loan and higher than s.p loan & personal loan.

50
 7.17ANALYSIS OF GOLD LOAN INTEREST RATE OF 4 NBFC’s
Gold loan interest rate of 4 NBFC’s (AMT IN LACK)

NBFC's INTEREST RATE

Federal Bank 13%

Mannapuram Finance 12%

Muthoot Finance 14%

shriram City Finance 0.95%

Interest Rate
Series1

14%
13%
12%

0.95%

Federal Bank Mannapuram Finance Muthoot Finance shriram City Finance

Gold loan interest rate of NBFC’s

 INTERPEATION
The graph show that other NBFC’s Gold Loan Interest up to 12% to 14% but shriram city
Gold loan interest is very low/ minimum

51
 7.18 ANALYSIS OF HYPOTHECATION LOAN INTEREST RATE OF
NBFC’s
: Hypothecation loan interest rate of NBFC’s (AMT IN LACK)

NBFC's INTEREST RATE

Chola Finance 17%

Bajaj Finance 18%

Mahindra Finance 14%

Shriram City Finance 16%

INTEREST RATE
INTEREST RATE

18%
17%
16%
14%

Chola Finance Bajaj Finanace Mahindra Finance Shiriram City Finance

: Hypothecation loan interest rate of NBFC’s (AMT IN LACK)

 INTERPEATION
The graph show that other NBFC’s Hypothecation loan interest up to 14% to 18% and but
shriram city Hypothecation loan interest is 16%

52
7.20 ANALYSIS OFNON- HYPOTHECATION LOAN INTEREST RATE
OF NBFC’s
: Non- Hypothecation loan interest rate of NBFC’s (AMT IN LACK)

NBFC's INTEREST RATE

HDFC Bank 17%

ICICI Bank 16%

PNB 14%

Shriram City Finance 16%

INTEREST RATE
INTEREST RATE

17%
16% 16%
14%

HDFC Bank ICICI Bank PNB Shiriram City Finance

Non- Hypothecation loan interest rate of NBFC’s (AMT IN LACK)

 INTERPEATION
The graph show that other NBFC’s Non-Hypothecation loan interest up to 14% to 17% and
shriram city Non- Hypothecation loan interest is 16%

53
 FINDING

1) This maximum loan being granted for Gold loan. The minimum being granted for personal
loan. The S.P loan is near to hypothecation loan and higher than personal loan.

2) This Gold loan sale are maximum& S.P. loan and personal loan are equal ratio.

3) This maximum loan being granted for Business loan. The minimum being granted for
personal loan. The Hypothecation loan is near to gold loan and higher than personal loan.

4) This Gold loan sale are maximum & S.P. loan and personal loan are equal ratio.

5) This maximum loan being granted for hypothecation loan. The minimum being granted for
S.P loan & Personal Loan. The Business loan is near to gold loan and higher than S.P loan &
Personal loan.

6) This Hypothecation loan sale are maximum& S.P. loan and personal loan are again equal
ratio.

7) The other NBFC's Gold Loan Interest is higher than Shriram City Gold Loan Interest is
very low minimum.

8) The other NBFC's Hypothecation Loan Interest is in Shriram City Hypothecation Loan
Interest is middle position.

9) The other NBFC's Non - Hypothecation Loan Interest is in Shriram City Hypothecation
Loan Interest is middle position.

54
 CONCLUSION

Shriram city Union finance limited is very well known organization in Shriram
Group Various type of loan are provided from these organization. The ground level people
are have service various facility form them.

The Shriram city Union Finance Ltd is major sale in NBFC. Now a days the growth o
these group is increase day deal in Corporate sector it is IDFC and SHRIRAM GROUP ARI
MERGED IIDFC, Shriram Group enter 90-day exclusive talks for S10 billion mega merger

55
 SUGGESTION

1) As per my view of project of my project part the Shriram city Union Finance L.td. Should
decrease there rate of interest so that many more customer have attract for business.

2) The documentary work should be paper less which will helpful for time consuming and
manual errors.

3) Employee motivation is helpful for productivity so there should be needed a employee

motivation scheme

4) The marketing activity should be increase so producing rate will increase automatically

56
 12 BIBLIOGRAPHY

Books

 Annual report of ShriramCity

 Office circular and other published papers, documents and reports
 Brochures of SHRIRAMCITY FINANCE
 C R Kotary “Research Methodology”, 2th Edition publish by : New age International
publisher.
 M Y Khan , “ Indian Financial System” 5th Edition reprint 2008 published by : Tata
McGraw-hill Publishing Company Limited

Websites

 www.shriramcity com

https://www.bankingschool.co.in/inancial-analysis/5-steps-of-credit appraisal-2 *
www.managementparadise.com/forums....205497-procedure-loan appraisal.html
https:/www.slideshare.net/pratyushmittal/term-loan-appraisal

https://www.ibef.org/industry/financial-services-india/showcase

57
Balance Sheet of Shriram City Union
------------------- in Rs. Cr. -------------------
Finance
Mar '18 Mar '17 Mar '16 Mar '15 Mar '14
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 65.97 65.94 65.93 65.91 59.28
Equity Share Capital 65.97 65.94 65.93 65.91 59.28
Share Application Money 0.01 0.00 0.00 0.00 0.00
Reserves 5,500.24 4,962.47 4,445.69 4,035.24 2,838.99
Net worth 5,566.22 5,028.41 4,511.62 4,101.15 2,898.27
Secured Loans 16,229.82 9,076.10 7,001.26 6,132.30 7,756.95
Unsecured Loans 0.00 4,551.18 3,266.56 2,778.03 1,556.95
Total Debt 16,229.82 13,627.28 10,267.82 8,910.33 9,313.90
Total Liabilities 21,796.04 18,655.69 14,779.44 13,011.48 12,212.17
Mar '18 Mar '17 Mar '16 Mar '15 Mar '14
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 268.63 247.05 229.15 198.94 177.75
Less: Accum. Depreciation 189.74 168.89 144.30 116.68 76.33
Net Block 78.89 78.16 84.85 82.26 101.42
Investments 727.99 714.52 792.34 981.68 627.55
Cash and Bank Balance 532.10 637.13 641.91 781.43 2,472.89
Total Current Assets 532.10 637.13 641.91 781.43 2,472.89
Loans and Advances 27,629.44 23,106.65 19,335.33 16,192.65 13,181.26
Total CA, Loans & Advances 28,161.54 23,743.78 19,977.24 16,974.08 15,654.15
Current Liabilities 5,522.65 4,662.35 5,227.01 4,494.77 3,796.28
Provisions 1,649.73 1,218.42 847.98 531.78 374.67
Total CL & Provisions 7,172.38 5,880.77 6,074.99 5,026.55 4,170.95
Net Current Assets 20,989.16 17,863.01 13,902.25 11,947.53 11,483.20
Total Assets 21,796.04 18,655.69 14,779.44 13,011.47 12,212.17
Contingent Liabilities 94.30 56.22 31.25 96.78 77.12
Book Value (Rs) 843.80 762.53 684.33 622.27 488.88

58
Standalone Profit & Loss
------------------- in Rs. Cr. -------------------
account
Mar 18 Mar 17 Mar 16 Mar 15 Mar 14
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
Revenue From Operations [Gross] 5,037.94 4,384.29 3,776.20 3,437.20 3,153.37
Revenue From Operations [Net] 5,037.94 4,384.29 3,776.20 3,437.20 3,153.37
Other Operating Revenues 45.37 47.34 58.67 45.04 37.96
Total Operating Revenues 5,083.31 4,431.62 3,834.87 3,482.24 3,191.33
Other Income 18.26 2.91 21.16 49.39 47.30
Total Revenue 5,101.57 4,434.53 3,856.02 3,531.63 3,238.63
EXPENSES
Employee Benefit Expenses 703.54 550.29 513.23 411.56 270.76
Finance Costs 1,667.71 1,534.42 1,383.45 1,343.15 1,350.71
Provisions and Contingencies 1,053.71 910.53 616.34 453.80 384.19
Depreciation And Amortisation 33.26 34.62 36.92 42.66 29.55
Expenses
Other Expenses 625.57 551.03 499.24 439.37 423.55
Total Expenses 4,083.79 3,580.89 3,049.18 2,690.55 2,458.76
Mar 18 Mar 17 Mar 16 Mar 15 Mar 14
12 mths 12 mths 12 mths 12 mths 12 mths
Profit/Loss Before Exceptional, 1,017.78 853.64 806.84 841.09 779.86
Extraordinary Items And Tax
Profit/Loss Before Tax 1,017.78 853.64 806.84 841.09 779.86
Tax Expenses-Continued Operations
Current Tax 381.30 304.60 283.32 295.94 230.37
Deferred Tax -28.23 -7.02 -6.26 -12.91 0.12
Tax For Earlier Years 0.00 0.00 0.00 0.00 28.22
Total Tax Expenses 353.06 297.58 277.06 283.02 258.72
Profit/Loss After Tax And Before 664.72 556.06 529.78 558.06 521.14
Extraordinary Items
Profit/Loss From Continuing 664.72 556.06 529.78 558.06 521.14
Operations
Profit/Loss For The Period 664.72 556.06 529.78 558.06 521.14
Mar 18 Mar 17 Mar 16 Mar 15 Mar 14
12 mths 12 mths 12 mths 12 mths 12 mths
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 100.79 84.34 80.37 86.18 89.76
Diluted EPS (Rs.) 100.79 84.24 80.27 86.03 89.53
VALUE OF IMPORTED AND INDIGENIOUS
RAW MATERIALS
STORES, SPARES AND LOOSE TOOLS
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 39.58 32.97 98.89 102.82 61.12
Tax On Dividend 8.06 6.35 20.49 20.69 10.39
Equity Dividend Rate (%) 180.00 150.00 150.00 150.00 100.00

59
Consolidated Key Financial Ratios ------------------- in Rs. Cr. -------------------

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14
Investment Valuation Ratios
Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share -- -- -- -- --
Operating Profit Per Share (Rs) 433.36 391.16 349.78 336.11 358.16
Net Operating Profit Per Share (Rs) 811.46 713.28 606.46 540.42 544.08
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital 2.27 2.27 2.27 2.27 2.53
Profitability Ratios
Operating Profit Margin (%) 53.40 54.84 57.67 62.19 65.82
Profit Before Interest And Tax Margin (%) 52.54 54.01 56.43 60.10 63.83
Gross Profit Margin (%) 52.74 54.08 56.73 60.96 64.89
Cash Profit Margin (%) 13.56 13.17 14.83 17.13 17.25
Adjusted Cash Margin (%) 13.56 13.17 14.83 17.13 17.25
Net Profit Margin (%) 12.83 12.29 13.80 16.04 16.49
Adjusted Net Profit Margin (%) 12.78 12.27 13.73 15.81 16.23
Return On Capital Employed (%) 12.21 12.78 14.57 16.48 17.43
Return On Net Worth (%) 11.95 11.14 11.87 13.55 17.74
Adjusted Return on Net Worth (%) 12.06 11.26 12.01 13.64 17.84
Return on Assets Excluding Revaluations 886.82 801.17 718.65 639.70 506.00
Return on Assets Including Revaluations 886.82 801.17 718.65 639.70 506.00
Return on Long Term Funds (%) 15.47 15.80 15.61 18.06 17.99
Liquidity And Solvency Ratios
Current Ratio 2.05 2.15 2.57 2.38 3.24
Quick Ratio 4.05 4.08 3.39 3.48 3.82
Debt Equity Ratio 3.05 2.84 2.38 2.20 3.10
Long Term Debt Equity Ratio 2.20 2.11 2.15 1.92 2.98
Debt Coverage Ratios
Interest Cover 1.60 1.54 1.59 1.64 1.59
Total Debt to Owners Fund 3.05 2.84 2.38 2.20 3.10
Financial Charges Coverage Ratio 1.62 1.56 1.62 1.67 1.61
Financial Charges Coverage Ratio Post 1.41 1.37 1.41 1.45 1.42
Tax
Management Efficiency Ratios
Inventory Turnover Ratio -- -- -- -- --
Debtors Turnover Ratio -- -- -- -- --
Investments Turnover Ratio -- -- -- -- --
Fixed Assets Turnover Ratio 19.28 19.08 18.27 18.32 19.06
Total Assets Turnover Ratio 0.23 0.23 0.25 0.26 0.26
Asset Turnover Ratio 0.25 0.26 0.27 0.27 0.26

Average Raw Material Holding -- -- -- -- --

Average Finished Goods Held -- -- -- -- --
Number of Days In Working Capital 1,528.80 1,483.87 1,351.56 1,264.91 1,299.40
Profit & Loss Account Ratios
Material Cost Composition -- -- -- -- --
Imported Composition of Raw Materials -- -- -- -- --
Consumed
Selling Distribution Cost Composition 0.23 0.21 0.26 -- --
Expenses as Composition of Total Sales -- -- -- -- --
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 18.48 6.80 21.62 21.61 13.43
Dividend Payout Ratio Cash Profit 17.58 6.40 20.24 20.08 12.71
Earning Retention Ratio 81.70 93.28 78.63 78.54 86.65
Cash Earning Retention Ratio 82.58 93.67 79.98 80.05 87.36
AdjustedCash Flow Times 24.06 23.78 18.56 14.97 16.47

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