CHAPTER – 1 INTRODUCTION
CHAPTER – 1 INTRODUCTION INTRODUCTION
This is an art of preparing an educative project report oe oers to prov provid ide e some some aspe aspect cts s and deta detail ils s regar garding ding to Analytical Study of Various Financial Products with the
special special reference reference to ut!oo Sagar. In this project project ut!oott "nanc# "nanc#$$ Sagar. report, the marketing nancial activity has been brought out in abroad also the details regarding the nancial services its marketing activities. In this project report an attempt is made to bring out the deta details ils re rega gard rdin ing g the the hist histor ory y and and achie achieve veme ment nts s for for the the dyna dynami mic c grow growth th of the the !uth !uthoo oott nan nance ce.. The The era of nan nance ce which has been taken a talkative role has also been described. descr ibed. "s we know nance plays a vital vital role in the market market and development of economy. economy. #inancial services are needed for every organi$ation to run the business e%ciently. It is re&uired in all all sect sectors ors of the the mark market et i.e., i.e., educ educat ation ion,, 'ovt 'ovt,, busi busine ness, ss, trading, trading, agricultur agriculture e small scale scale business business etc. #inance inance plays a main role in day to day life. #inance includes money, nancial policy, nancial services and nancial consultants. #inance is considered considered as (life (life blood of an organi$a organi$ation). tion). It is important important in development of economy. #inance increases the savings and mobili mobili$at $ation ion of funds. funds. It is very useful useful in new innovati innovations ons in service sector.
CHAPTER – 1 INTRODUCTION INTRODUCTION
This is an art of preparing an educative project report oe oers to prov provid ide e some some aspe aspect cts s and deta detail ils s regar garding ding to Analytical Study of Various Financial Products with the
special special reference reference to ut!oo Sagar. In this project project ut!oott "nanc# "nanc#$$ Sagar. report, the marketing nancial activity has been brought out in abroad also the details regarding the nancial services its marketing activities. In this project report an attempt is made to bring out the deta details ils re rega gard rdin ing g the the hist histor ory y and and achie achieve veme ment nts s for for the the dyna dynami mic c grow growth th of the the !uth !uthoo oott nan nance ce.. The The era of nan nance ce which has been taken a talkative role has also been described. descr ibed. "s we know nance plays a vital vital role in the market market and development of economy. economy. #inancial services are needed for every organi$ation to run the business e%ciently. It is re&uired in all all sect sectors ors of the the mark market et i.e., i.e., educ educat ation ion,, 'ovt 'ovt,, busi busine ness, ss, trading, trading, agricultur agriculture e small scale scale business business etc. #inance inance plays a main role in day to day life. #inance includes money, nancial policy, nancial services and nancial consultants. #inance is considered considered as (life (life blood of an organi$a organi$ation). tion). It is important important in development of economy. #inance increases the savings and mobili mobili$at $ation ion of funds. funds. It is very useful useful in new innovati innovations ons in service sector.
EANIN% OF FINANCE
#inan inance ce is cons consid ider ered ed to be the foun founda dati tion on of basi basic c activities of any business. *articula articularly rly in produ producti ction on and marke marketing ting activi activities ties.. The nan nance ce func functi tion ons s in the the same same way way as oil oil func functi tion ons s in the the operation of machine or blood functions in the human body. In the absence of nance, nobody can image either of setting up a business business or or its operations operations and develop development. ment. +ot only this, nance is needed in those areas where economic activities of any type are performed. 'enerally
speaking,
business
nance
means
arran ar rangem gement ent of nance nance for all busine business ss activitie activities. s.
the
Since Since the
objective of the business is to earn prot and for the operations of
business
activities,
organi$ation
of
any
type
sale
proprietorship, rm or company is very much needed, it can easily be deduced that the business nance is related to the nancial arrangement of the organi$ations set up and operated for the objective of earning prot. #inance often signied the money and it studies as how do an individual, businessman, investor, nancial institutions and and also also gove govern rnme ment nt mana manage ge and and oper operat ate e the the nan nance ce,, i.e. i.e.
!oney. !oney. -perts have never held common opinion with regard to nance.
DEFINITIONS OF FINANCE
Accordin& to Hus'and and Duc(#ny)
/Something must be there for directing the 0ow of economic activities and their conduct without any bottleneck. #inance is the only means which can perform their function. Accordin& to Os'orn$ R*C
The nance function is the process of ac&uiring and utili$ing funds by a business1. Accordin& to +onn#,ill# and D#-#y
/#inancing consists in raring, providing, managing, of all money, capital or funds of any kind to be used in connection with the business1.
CHAPTER.II FINANCIA/ SERVICES
CHAPTER.0 FINANCIA/ SERVICES
The nancial services can also be called nancial intermediation is a process by which funds are mobili$ed from a large number of savers and make them available to all those who are in need of it and particularly to corporate customers. Thus, nancial services sector is a key area and it is very vital for industrial developments.
" well developed nancial
services industry is absolutely necessary to mobili$e the savings and to allocate them to various investable channels and thereby to promote industrial development in a country. FEATURES OF FINANCIA/ SERVICES
Some of the characteristic features of nancial services are as follows. •
2ustomer oriented
•
Intangibility
•
Simultaneous performance
•
3ominance of human element
•
*erish ability
•
Inseparability
•
4ack of special identity.
IPORTANCES OF FINANCIA/ SERVICES
#ollowing are the some of the points which shows the importance of the nancial services.
•
#inance is /lifeblood1 of an organi$ation.
•
#inancial services need for every organi$ation to run the business.
•
"gricultural sector need nancial services.
•
It is important in development of the economy of the country.
•
Increases the savings and mobili$ation of funds.
•
It is useful in the new innovation in service sector.
•
it helps to increase the productivity of the agriculture.
REASONS FOR %RO2TH OF FINANCIA/ SERVICES
#inancial services stimulating growth of the system of a country. 5easons for growth of nancial services are as follows, DEO%RAPH3
*opulation growth stimulating the re&uirement of basic needs, such as food, shelter, education, health care facility. These needs are fullled we re&uired nancial systems. ECONOIC
#inancial services growth directly related with the growth of the economy of the nation. PO/ITICA/ AND /E%A/
6hen
the
country
improves
nancially
growth,
automatically the political and legal condition of the country also improves. SOCIA/ AND CU/TURA/
6hen the country stands nancially t then the living standard of the peoples also increases automatically and also the culture of the nation is saved. T3PES OF FINANCIA/ SERVICES
78 4ong9Term #inance Sources :8 !edium9Term #inance Sources ;8 Short9Term #inance Sources I* /on&.T#r4 Financ# Sourc#s)
+ormally,
this
source
is
resorted
to
nance
that
part
of the business therefore normally e&uity shares should be issued for raising funds for nancing permanent working capital '5 R#tain#d #arnin&s)
That part of earned prots. In a business which is not distributed as divided is called or retained earnings and it is considered as regular and costless source of nancing working capital. 6orking capital re&uirements to increase wit the growth of business concern and which can be met by reinvesting the prots in business itself. c8 R#s#r,#s) 4ike retained earnings, various types of reserve also do not involve any ed charge on business earnings and therefore the use of such reserves in nancing working capital is also considered as proper and protable. d5 Sal# of "6#d ass#ts)
Some ed assets owned by the business concern may become
obsolete
and
some
of
there
are
available
as
scrap
" business concern may avail some discount while making payments against current liabilities i.e. discharging the current obligations.
Similarly, provisions for taes and other
known epenses are created and it is just possible that actual payment on these score may be less than their book values should be considered as non9recurring source for nancing working capital. II +orro-#d Sourc#s7E6t#rnal Sourc#s)
>nder this component of long9term sources, the following are included.
a5 D#'#ntur#s) ?usiness concern may also raise funds for nancing the working capital by issue of debentures in the same way as the issue of shares.
It is, however, noticeable that issue of
debenture created ed burden in the rm of interest8 on the business used after considering the progress of the business, stability of business earnings, risk factor etc. b8 /on&.t#r4 /oans7d#'ts) In addition to the issue of debenture, a business concern may also obtain funds for working capital as loans from nancial corporations, trusts and investment companies. II. #diu4 T#r4 "nanc#)
@n the basis of terms of duration. The business nance is classied into ; types of !edium Term of nance is that, !edium Term nanceA To nance a business for a period of more than a year but less than 7B years is called intermediate nancing. Such type of nance is obtained for epansion and moderni$ation of eisting plant.
It is also needed for the purchase of assets.
2ostly raw9material.
It may be used to met the cost of
maintenance, repair, improvement and betterment of plant. 4astly it can be used to repay the short term loans.
Sourc#s of #diu4 t#r4 "nanc#) 15 Co44#rcial 'an(s)
2ommercial banks provide medium term nance to traders and manufacturers against security. 05 Insuranc# co48ani#s)
The
insurance
companies
also
provide
loan
to
manufacturers against the security of assets. 95 Industrial d#,#lo84#nt 'an( of Pa(istan)
I3?* was established in7CD7 to provide medium and long term nance to establish and epand industries. :5 Pa(istan industrial cr#dit and in,#st4#nt cor8oration CPICIC5
This corporation was set up in 7CEF and is one of the major sources of providing nance for medium and long term projects. It also provides nance in technical and managerial elds. It also provider loans for working capital. III* SHORT TER FINANCE
"s mentioned in the preceding chapter, variable working capital
is
normally
nanced
through
short9term
sources
including spontaneous ones. #ollowing may be included in this category.
78 Trade 2redit :8 ?ank 2redit ;8 *ublic 3eposits G8 Inter9corporate 3eposits E8 "dvances from customers D8 Internal sources F8 Some new and innovative sources +on9?ank8 such as a8 2ommercial *aper b8 2onvertible 3ebentures c8 #actoring 15 Trad# Cr#dit)
Sellers
of
dierent
kinds
of
product
materials provide credit to their customers spontaneously as per trade conventions.
It is a common eperience that a
substantial part of purchaser of goods and services in business are on credit terms rather than against cash payment. 6hile the seller or supplier of goods and services may perceive credit as a lever for increasing the sales volume, the buyer customer8 may look upon it as an alternative to loaning for the purchase. The credit oered by the seller
3epending upon the nature of credit
allowed. "ll the successful business concerns which have good record of payment and
@ne point should always be
remembered, i.e. trade credit is etended in connection with goods or raw materials bought for resale or processing and resale and it is dierent from consumer credit which is oered to individual for buying goods for ultimate are
Trade credit is an
eample of spontaneous source of capital which 0ows in natural course of the business in keeping with established trading practices. It does not re&uire any loan9negotiation or security margin.
In India, trade credit is considered to be a
very important source of short9term nance and :B to :E percent of short9term sources are obtained from trade credits. 05 +oo( cr#dit or +an( Financ# ;S!ort.t#r45)
?anks provide short9term nances in the following forms a5 O,#rdraft)
2ustomer
@verdraft account
operates against security in the form of pledge of shares and securities, assignment of life insurance policies and sometimes even the mortgage of ed assets. '5 Cas! cr#dit)
2ommercial bank provides cash credit facilities to its customers
for
meeting
their
short9term
nancing
It is such regular system under which bank
oers the facilities to clients to withdraw the money within the limits pre9ed by the bank. The security oered by the clients is in the nature of hypothecation of stocks or promissory notes bearing signatures of other persons also. c5 Discountin& trad# 'ills)
Sellers often draw bills on their customers purchasing goods on credit. The purchases give their acceptance. Such bills are being discounted by the sellers for arranging short9 term funds.
In other words, bank provides nance to the
customers either by outright purchasing or by discounting bills receivables held by the customers.
@bviously, bank will not
pay the full amount and therefore charges something as discount d5 O8#nin& of l#tt#rs of Cr#dit)
4etter of credit is opened by a bank in favors of its customer undertaking the responsibility to pay the supplier of goods if its customer fails to pay for goods purchased within the stipulated time. >nder this scheme of bank nance, bank does not provide nanceH rather it assumes the risk of non9 payment by its customer.
?ank provides short9term credit in the above forms to its customer.
=owever, bank credit system is subjected to a
number of regulations as discussed at the end of this chapter. 95 Pu'lic D#8osits)
5egulations imposed on the availability of bank credit induced many concerns to eplore alternative sources of nancing the working capital and the mobili$ation of savings from the general public was rated to be a very important alternative source. #unds thus mobili$ed form general public deposits by non nancial and non9banking companies is a very old system. " number of tetile mills of "hmadabad, Surat and !umbai started to avail this source of nance which became very popular later on. In or country the evolution of inter corporation deposits took place in the seventh decade of the twentieth century. ?oth demand and supply were e&ually responsible for this. There is no control on the short9term market of inter9corporate deposits =owever, long9term deposits are made covered under sec E "8 of the Indian 2o, "2 and accepted freely among the corporate bodies. <5 Ad,anc#s fro4 custo4#rs)
!any times some produces
remains with them till the supply of goods. interest is paid on this amount.
+ormally, no
Therefore, it is the cheaper
source of short9term nancing but resort to their method can be made only by some reputed and well9settled concerns. In case of industries, where tough competition is noticed, no advance can be received rather goods are to be sold to customers on credit terms. =5 Int#rnal Sourc#s)
6hen a business concern establishes a depreciation fund
C*P* C ?) 2ommercial
paper
is
a
short9term
money
market
instrument which is considered as most ideal both for investors as well as for corporate sector borrowing from banks for working capital re&uirements. 6hile high9rate companies may
take advantage of this source the investors too can earn prot by using their short9term funds. "s a source of short9term fund, commercial paper is most popular in Japan and western countries.
In the >S", it is in
vogue. #or over 7BB years, while in -uropean countries and Japan its origin is of recent one. In our country, 5eserve ?ank of India permitted the issue of commercial papers in the year 7CC ;8 2ommercial paper is a promissory note which is negotiable by endorsement and t for delivery with a ed maturity between one month to one year and it is issued on discount basis It helps to raise short9term debt at attractive rates. It is an unsecured instrument and is not tied up to any specic business transaction. It does not carry any collateral security. Thus, commercial paper becomes a substitute source and not an additional source. b8 Con,#rti'l# d#'#ntur#s) #or augmenting funds for working capital along with long9 term purposes, there is one more source, i.e. the issue of convertible debentures. last
two
decade
or
It has been gaining popularity since so.
Since
banks
generally
grant
loans
The issue of bearer debentures in normally not permitted. Similarly, the issue of debentures is not permitted just to prevent an enterprise from closing down due to recurring losses. -ven the permissible rater of interest on convertible and non9convertible debenture is notied by the government form time to time. c5 Factorin&)
@ne most recent source for nancing working capital in factoring. In fact, factoring is also a business activity in which a nancial intermediary called factor8 takes the responsibility of collecting the debtors or receivables of a manufacturing trading concern called /Seller or 2lint1. In other words chief nancial eecutive instead of discounting the bills from bankers seller the debtors and receivables to a special nancial institution.
#actor, i.e.
nancial institution assumes total responsibility of sales ledger administration and collections from debtors. Thus, /#actoring is a continuing arrangement between a nancial intermediary called factory /and seller of goods and services called client8. #actors are generally subsidiary of either ?ank or private #inance companies. It is also important to note that factoring should not be considered as related only to a specic transaction rather it should be considered as a continuous arrangement. In fact, it takes care of all receivables emanating from the credit sales of
its client. In this sense, factoring is a nancial service designed to help companies in managing the receivables in a better way.
CHAPTER .9 COPAN3 PROFI/E
CHAPTER .9 COPAN3 PROFI/E
COPAN3 +AC@%ROUND)
The !uthoot 'roup is a 7:; years old business based in India
and
interested
in
nancial
services,
Information
technology, !edia and -ntertainment, =ealth care, -ducation, *ower generation, Infrastructure, *lantations, *recious metals and =ospitality. The 'roup takes its name from the !uthoot #amily based in Kerala. The 2ompany was set up by !uthoot +inan !athai in 7F at Ko$hencherry , a small town in the erstwhile Kingdom of Travancore Kerala8. It was then later taken over by his son ! John !uthoot who incorporated the #inance division of the group which was till then primarily involved in wholesale of grains. The company is now managed by the third and fourth generation of its family members. !uthoot #incorp 4imited !#48 the 0agship 2ompany of the :B,BBB 2rore !uthoot *appachan 'roup . " market leader in the gold loan business !uthoot #incorp has over 7:B branches spread across the cities, towns and villages of India, the 2ompany serves an average of GE,BBB customers a day. !uthoot #incorp)s long9standing eperience, epertise and stronghold in the semi urban and rural areas have enabled the 2ompany to provide &uick, customi$ed nance options and investment products, maimi$ing returns to the population. The loan products of !uthoot #incorp are uni&uely structured to serve people who do not have
easy access to mainstream commercial banks. !#4 counts the satisfaction and long9service of its people as a cornerstone of its success. #ostering teamwork, nurturing creativity
and
rewarding
dedication
to commitment
are
systematically and professionally managed. -cellence and innovation are encouraged and rewarded. -nsuring !#4)s people remain at the competitive edge, best practice in the area and uni&ue motivational programs are regularly carried out by the Training and =5 departments. The company recently announced plans for an I*@ Initial *ublic @ering8 before the year :B7G. In addition there are plans to implement an -S@* -mployee Stock @wnership *lan8 before :B7: !uthoot #incorp is a subsidiary of !uthoot 'roups was established in 7C;C and primarily involved in nancial sector of the country. !uthoot #incorp falls under the category of +on ?anking #inancial 2ompany +?#2s8 of the 5?I guidelines. !uthoot #incorp limited is a nance company catering to the nancial needs of retail and institutional customers. It is registered with the 5eserve ?ank of India as a systemically important non9deposit taking non9banking nance company +?#28 with a paid up capital of 5s. DB crores and a +et @wned #und of 5s. GB; cores. !uthoot #inance is also the highest credit rated 'old 4oan company in India, with a credit rating of ""925ISI"48 for its long term debt and *7L 25ISI"48 and "7L 25ISI"48 for its short term debt Instrument. It has a diverse
mi of retail oerings in the areas of 2onsumer loan products and investment advisory services. These include 'old loans, =ome loans, "uto loans, ?usiness loans, 4oans against *roperty, Investment products and "dvisory Services, Secured 3ebentures etc. !uthoot
#inance
a
subsidiary of !uthoot
'roup was
established in 7C;C, and is primarily involved in the nancial sector of the country. 6e are the largest gold nancing company in India in terms of loan portfolio. 6e provide personal and business loans secured by gold jewellery, or 'old 4oans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short9term li&uidity re&uirements. @ur 'old 4oan portfolio as of !arch ;7, :B7B comprised approimately :. million loan accounts in India that we serviced through 7,DBE branches across :B states and two union territories in India. "ccording to the I!a2S Industry 5eport :BBC, as of !arch ;7, :B7B our branch network was the largest among gold loan +?#2s in India. 6e have since increased our branch network to 7,C:7 branches as of "ugust ;7, :B7B, and used our branch network to serve an average of E;,CC customers per day in the month of "ugust :B7B. "s of "ugust ;7, :B7B, we employed 7:,::B persons in our operations. !uthoot also provides
various
nancial
services
such
as
Insurance
distribution, 6ealth !anagement, #oreign -change, !oney Transfer and Mehicle "sset #inance. !uthoot #inance was selected as one of the Top 7B #inance companies to work for in
India by +aukri.com. !uthoot #inance privately placed GN of its pai paid up capita ital to *riva ivate -&uity ity players 9 ?arings ?arings India and !atri *artners India *artners India for 5s.7.EF billion, hence valuing the earlier privately held company at over O7 billion. 6e are a Systemically Important +on9deposit taking +?#2 head head &uar &uarte tere red d in the the sout southe hern rn Indi Indian an state state of Ker eral ala. a. @ur @ur operating history has evolved over a period of FB years since ! 'eorge !uthoot the father of our *romoters8 founded a gold loan business in 7C;C under the heritage of a trading business established by his father, +inan !athai !uthoot, in 7F. Since our formation, we have broadened the scale and geographic scope of our retail lending operations so that, as of !arch ;7, :B7B, we were India)s largest provider of 'old 4oans. In the years ended !arch ;7, :BB, :BBC and :B7B, revenues from our our 'old 'old 4oa oan n busi busine ness ss cons consti titu tute ted d CE.C CE.CFN FN,, CD.F CD.F7N 7N and and C.BN, respectively, of our total income. In addition to our 'old 'old 4oan 4oans s busi busine ness ss,, we prov provide ide mone money y tran transf sfer er serv service ices s thro through ugh our our bran branch ches es as sub9a sub9age gent nts s of vari variou ous s regist egister ered ed mone money y tran transf sfer er agen agenci cies es,, and and recen ecentl tly y have have comm commen ence ced d provi providin ding g collect collection ion agency agency servic services. es. 6e also also operat operate e three three windmills in the state of Tamil +adu. 6e issu issue e secu secure red d non9 non9co conv nver erti tibl ble e debe debent ntur ures es call called ed /!uthoot 'old ?onds1 on a private placement basis. *roceeds from our issuance of !uthoot 'old ?onds form a signicant source of funds for our 'old 4oan business. 6e also rely on bank loans and subordinated debt instruments as our sources of funds. "s of !arch ;7, :B7B, we had 5s.:F,7C:.E million in
outsta outstandi nding ng !uthoo !uthoott 'old 'old ?onds ?onds and 5s.:E,D7 5s.:E,D7:.F :.F millio million n in other borrowings. 6e also raise capital by selling a portion of our loan loan receiv receivabl ables es under under bilater bilateral al assign assignmen mentt agreem agreement ents s with variou various s banks banks that that purcha purchase se our portfo portfolio lio primar primarily ily for meeting their priority sector lending commitments. @ur customers are typically small businessmen, vendors, traders, farmers and salaried individuals, who for reasons of conv conven enie ienc nce, e, acce access ssib ibili ility ty or nece necessi ssity ty,, avai availl of our our cred credit it facilities by pledging their gold jewellery with us rather than by taking taking loans loans from from banks banks and other other nancia nanciall institu institutio tions. ns. 6e provide retail loan products, primarily comprising 'old 4oans. 6e also also disb disbur urse se othe otherr loan loans, s, incl includ udin ing g thos those e secu secure red d by !uth !uthoo oott 'old 'old ?ond ?onds. s. @ur @ur 'old 'old 4oa oans ns have have a mai maimu mum m 7: mont month h ter term. @ur ave avera rage ge disb disbur urse sed d 'old old 4oa oan n amoun mountt outstanding was 5s.:D,7;.B per loan account as of !arch ;7, :B7B :B7B.. In the the yea year ended nded !a !arrch ;7, ;7, :B7B :B7B,, our our reta etail loan loan portfolio portfolio earned, on average, average, 7.DFN per month, or 7C.CGN per annum. "s of !arch ;7, :BB, :BBC and :B7B, our portfolio of outstanding
gross
'old
4oans
under
management
was5s.: was5s.:7,F 7,FCB.7 CB.7 million million,, 5s.;;,B 5s.;;,BBB. BB.F F millio million n and 5s.F;,G 5s.F;,G7F.; 7F.; million million,, re respe spectiv ctively ely,, and appro approim imate ately ly ;B.7 tons,; tons,;.C .C tons tons and DE.E tons, respectively, of gold jewellery was held by us as secur securit ity y for for our our 'old 'old 4oa oans ns . 'r 'ros oss s non9 non9pe perfo rforrming ming asse assets ts P+*"sP8 were at B.G:N, B.GN and B.GDN of our gross retail loan portfolio under management as of !arch ;7, :BB, :BBC and :B7B, respectively.
In the years ended !arch ;7, :BB, :BBC and :B7B, our tota totall incom income e was was 5s.; 5s.;,D ,DD.G D.G milli million on 5s.D,: 5s.D,:BG BG.B .B millio million n and and 5s.7B,C 5s.7B,C;.F ;.F millio million, n, re respe specti ctivel vely, y, demons demonstra tratin ting g an annual annual growth rate of EF.EDN, D.:CN and FE.ECN, respectively. @ur prot after ta in the years ended !arch ;7, :BB, :BBC and :B7B was 5s.D;D. 5s.D;D.B B million million,, 5s.CFF. 5s.CFF.: : million million and 5s.:,:F 5s.:,:FE.F E.F million, respectively, demonstrating an annual growth rate of GG.D7N, E;.DEN and 7;:.N, respectively. @ur net worth as of !a !arc rch h ;7, ;7, :BB, :BB, :BBC :BBC and and :B7B :B7B was was 5s.:, 5s.:,7; 7;7.7 7.7 milli million on,, 5s.;,D7G 5s.;,D7G.E .E million million and 5s.E,G 5s.E,G7.C 7.C millio million, n, re respe spectiv ctively ely.. 6e believe believe that that the follow following ing compet competitiv itive e streng strengths ths positio position n us well for continued growthA PROFI/E OF FOUNDER OF UTHOOT %ROUP
In 7F, in Ko$hencher o$hencherry ry a &uiet hamlet hamlet surrounde surrounded d by plantations in the Southern state of Kerala, India, !r. +inan !ath !a thai ai star starte ted d a retai etaill busi busine ness ss alon along g with with his his plan planta tati tion on venture ures.In time ime, his sons took over the reins and re9 esta establ blis ishe hed d the the bus busines iness. s. 6ith ith thei theirr youth outhfful visio ision n and combin combined ed streng strength th it soon soon 0ouris 0ourished hed.. In 7C;C, 7C;C, the broth brothers ers established the !uthoot 2hit #und -nterprises, providing small and medium loans to farmers and merchants. In a short span of 7B years it became the largest business house of its kind in Kerala. They soon moved into full 0edged banking banking operations. operations. They
specialised
in
gold
loans
and
advances
to
small
ente enterp rpri rise ses s and and indi indivi vidu dual als s on &uick &uick and and ea easy sy ter terms. ms. This This ensured rapid growth. The brothers then decided it was time to
bifurcate and thus was born the !uthoot *appachan 'roup, founded by his youngest son !athew !. Thomas or !uthoot *appachan as he is fondly known. >nder his watchful eye the group has since diversied into nancial services, hospitality, 0ight 0ight cate caterin ring, g, trav travel el serv service ices, s, IT infr infras astr truc uctu ture re,, prop proper erty ty development, the automotive sector and alternate energy. " simple and devout man !uthoot *appachan espoused a nine point formula that stood by him in realising his goals. They are love love,,
peac peace, e,
happ happin ines ess, s,
kind kindne ness ss,,
help helpfu fuln lnes ess, s,
pati patien ence ce,,
pleasantness, faithfulness, and self control. These ethics have been a guiding light to the path of his successors and have permeated every strata of the !uthoot *appachan 'roup. The same values still govern every decision in the the 'r 'ro oup. up. 6he 6hen ask asked for for his for formula ula to succ succes ess s he &uipped, /un0inching faith in the "lmighty and unshakeable dete determ rmin inat atio ion n to face face and and over overco come me chal challen lenge ges.1 s.1
In dire dire
circumstan circumstances ces and sometimes sometimes in the face of loss he was heard to &uote that a debit on earth will be a credit in heaven. " man, kno known to adhere to his word, he insti stilled led these values thr through ughout out
the the
organis anisat atio ion n
he
nur nurtur tured. ed.
The
!ut !uthoot hoot
*appachan 'roup carries !uthoot *appachan)s legacy on with his words in our hearts /I am because 'od is with me.1 A+OUT THE +OARD OF DIRECTORS) T!o4as o!n ut!oot
The !uthoot !uthoot *appachan appachan 'roup 'roup is headed headed by 2hairman 2hairman and !anaging 3irector, Thomas John !uthoot. 6ith a vision for the future and rooted in the values imparted by his father, he
has eectively spearheaded the group over the past twenty ve years into one of Kerala)s leading nancial powerhouses. =e also paved the way for the diversication of the group into other major industries like power, hospitality, automotive and more. =e is also a member of the 2hamber @f 2ommerce, Trivandrum, and Treasurer of the Trivandrum "genda Task #orce. T!o4as %#or&# ut!oot
Thomas 'eorge !uthoot is the &uiet strength behind the visionary growth of the group. The twin of John !uthoot, !anaging 3irector of !uthoot 2apital Services and 3irector of all other units of the !uthoot *appachan 'roup, his penchant for technology and e%cient administrative skills ensures the group stays on the cutting edge of development. =e is also the 2hairman of Kerala +on9?anking #inance 2ompanies 6elfare "ssociation, Kochi and on the managing committees of Indo9 "merican 2hamber of 2ommerce9Kerala ?ranch, Kochi and -&uipment 4easing "ssociation of India -4"I8, 2hennai. T!o4as ut!oot
Thomas !uthoot is 3irector9 Strategic Initiatives and 3irector of other units of the group. "n epert in !icro credit and !icro saving business with a great desire to serve the masses, he is innovative with need based nancial products. =is knowledge of emerging markets and their functions have been harnessed in structuring the business interests of the group. =e is also the Mice *resident of -rnakulam 3istrict
2ricket "ssociation and !anaging 2ommittee member of Kerala 2ancer 2are Society.
THE COPAN3 PRODUCT /INE AND FEATURES OF THE PRODUCT
"s far as services are concerned, !uthoot #incorp provides
various
services
according
to
the
needs
and
re&uirements of its customers. ?asically its core services are gold loan and swarnavarsham. !uthoot ncorp has strategic alliances with leading companies which grant its customers access to premium services at aordable costs. #or money transfer Q6estern >nion money transfer ,!otilal @swal Q#or investment advisory services and share broking, #or !utual #und 9#ranklin Templeton. !uthoot #incorp also provides S3 secured debenture8 and #3 ed deposits8. In gold loan it provides various types of schemes for customer like ; minutes epress gold loan, smart plus gold loan. In ; minutes epress gold loan one can get loan up to CB per
cent of
gold
depending upon the purity level of gold within three minutes on an monthly interest of : per cent. ?ut in Smart plus gold loan the benet of paying back in -&uated !onthly Instalments, The -!I is apportioned such that the larger amount goes toward repaying the principal, no foreclosure charges,*art release and repledge is allowed, and 5ebates on prompt payment. "part from -!I option it also provides dierent interest rate depending upon time period and loan amount, here interest is
also calculated on diminishing balance method. In smart plus gold loan more 0eibility is there as compared to ; minute epress gold loan. In #3 ed deposits8 one get double its money in ve years and the minimum amount in #3 is 5s 7B,BBB<. In case of secured debenture company provides security of property and assets which attract the customer)s attentions. AR@ETIN% STRATE%IES
"s its marketing strategies suggest !uthoot #incorp provides attractive oers to its customers at the time of festivals like "kshaya Trithiya. "part from it advertisement is given in +ews papers and #!, celebrities and sport stars also used in the advertisement campaign. !uthoot #incorp also host some
local
events:B9:B
cricket
tournament,Israel
open
tournament 8 in Kerala and other states in south India. COPETITORS
In gold loan market there are dierent players like banks, +?#2 and local pawn brokers and jewelries. In banking sector =3#2, ?ank of India, "is ?ank, S?I, syndicate ?ank etc. are providing gold loan. In +on9?anking #inancial Sector there more competitions among the competitors and also there big competitors name like !uthoot #inance, !annapuram gold loan, Karvy #inance, #uture capital gold loan, 5eliance gold loan, !ahindra #inance, and also some other players are involved. In India nearer about FB per cent of market share is in the hands of local jewelries and pawn brokers. !uthoot #incorp objectives is to capture these FB per cent market share and its
biggest competitors is !uthoot #inance and !annapuram gold loan. Some of the new players like Karvy #inance, !ahindra #inance gold loan, #uture 2apital comes into market which is a threat for !uthoot #incorp. Though there are many competitors in gold loan market but still !uthoot #incorp is successfully running its business more than si decades and earned a prot of more than :BB cores in the scal year :B7B977. ACHIEVEENTS
!uthoot #inance is the highest credit rated 'old 4oan company in India, with a credit rating of ""925ISI"48 for its long term debt and *7L 25ISI"48 and "7L 25ISI"48 for its short term debt Instrument. Its !ahila !itra loan portfolio touches 7B,BBB women micro entrepreneurs. In last two months it successfully opened :BB branches in northern part of India. FUTURE PROSPECTS
-arlier !uthoot #incorp was only in Kerala, and then it slowly epands its business and now having more than FBB branches in south India. Then in the early :BBB it epand its business 'ujarat and in north India. "t the same time this +?#2 2ompany provides a wide choice of services to its customers. +ow its net step will be to open another :BB branches in north India and then to shift east India. So one can say that !thoot #incorp is on epansion mode and in net 7B year it wii open its branches in entire India.
AR@ET
/EADIN%
POSITION
IN
THE
%O/D
/OAN
+USINESS 2ITH A STRON% PRESENCE IN UNDER.SERVED RURA/ AND SEI UR+AN AR@ETS
'old loans are the core products in our asset portfolio. 6e believe that our eperience, through our *romoters, has enabled us to have a leading position in the 'old 4oan business in India. =ighlights of our market leading position include the followingA 6e are the largest gold nancing company in India in terms of loan portfolio. @ur loan portfolio as of !arch ;7, :B7B comprised approimately :. million loan accounts in India with 'old 4oans outstanding of 5s.F;,G7F.; million. 6e have the largest branch network among gold loan +?#2s. "s of !arch ;7, :B7B, we operated 7,DBE branches across :B states and two union territories in India, and in the month of "ugust :B7B, we served an average of E;,CC customers
daily.
@ur
branch
network
has
epanded
signicantly in recent years from ;F; branches as of !arch ;7, :BBE to 7,C:7 branches as of "ugust ;7, :B7B, comprising ;;E branches in northern India, 7,;:: branches in southern India, 7CF branches in western India and DF branches in eastern India. 6e believe that due to our early entry we have built a recogni$able brand in the rural and semi9urban markets of India, particularly in the southern Indian states of Tamil +adu,
Kerala, "ndhra *radesh and Karnataka. "s of !arch ;7, :B7B, the southern Indian states of Tamil +adu, Kerala, "ndhra *radesh and Karnataka constituted FE.;N of our total 'old 4oan portfolio. 6e have a strong presence in under9served rural and semi9urban markets. " large portion of the rural population has limited access to credit either because of their inability to meet the eligibility re&uirements of banks and nancial institutions because credit is not available in a timely manner, or at all. 6e have positioned ourselves to provide loans targeted at this market. 6e oer products with varying loan amounts, advance rates per gram of gold8 and interest rates. The principal loan amounts we disburse usually range from 5s.:,BBB.B to 5s.7BB,BBB.B while interest rates on our 'old 4oans range between 7:.BBN to ;B.BBN per annum.
0*0*1*1 ut!oot Or&anisational Structur# "&* 0*1
CHAPTER .: PRODUCT PROFI/E
CHAPTER .: PRODUCT PROFI/E
INTRODUCTION
The year 7C;C saw the emergence of the present day corporate giant9 /The !uthoot 'roup1. It embarked on its unending
mission
of
providing
ecellent services to its
customers by establishing its rst unit in Ko$hencherry. The clear9cut vision and ideals of our founder patron late Shri. +inan !athai !uthoot and #ounder chairman late Shri. ! 'eorge !uthoot has made the !uthoot 'roup the 4argest nancial 'roup of its kind in India. >ndoubtedly the mission is to win the condence of the customer
through
unmatched,
prompt
and
personali$ed
service. ADINISTRATIVE SET UP OF UTHOOT %ROUP
The 5egistered @%ce of the group is situated at ko$henchenrry In
kerala. The 2orporate @%ce South8 is in
Kochi, Kerala and the 2orporate @%ceA +orth8 is situated at 4ajpat +agar +ew 3elhi.
THE %ROUP HAS FORT3 FOUR RE%IONA/ OFFICE @#rala Ta4ilnadu @ARNATA@A ANDHRAPRADE SH
Trivendrum north
South
?angalore
=yderabad
Trivendrum south
tamilnadu Sivagangai
+orth ?angalore
Secunderabad
Kollam Kottarakkara Ko$henchery -rnakulam Trichur "lleppey Idukki 2alicut
@O/@ATTA @ARNA/ U+AI
Trichy !adurai 2oimbatore 2hennai South 2hennai north *ondichery Salem Theni Thirunelveli Thanjavur 2EST+E%A/ HARI3ANA AHARASTR
AHAADA+AD DE/HI 2EST DE/HI AIPUR
A %URAT DE/HI DE/HI RAASTHAN
South =ubli !angalore !ysore 'oa
vijayawada Kurnool Mishakapatanam Thirupathi 5ajamundry
VARIOUS DIVISIONS OF UTHOOT %ROUP
1.
+AN@IN% B FINANCE DIVISION ;FIN5 •
Started in 7C;C
•
IS@ CBB79:BBB 2ompany
•
3eals in 'old ?ond 3eposits8 , 'old 4oan, ! *ower 2ard
0* UTHOOT P/ANTATION DIVISION •
Since 7C;C
•
2ommitment of !uthoot 'roup to pollution free world
•
@ur -states are St. !athews -state, Koodal St. !athews -state, at Kulasekharam +agercoilH
•
!uthoot *lantation boasts cloves, coconut and 5ubber.
9* EDUCATION DIVISION •
•
Since 7CD: St. 'eorge)s School, "lakananda, +ew 3elhi
•
St. 'eorge)s School, 3efence colony, +ew 3elhi
•
!'!
!uthoot
+ursing
School,
Ko$hencherry,
*athanamthitta •
Sta Training 2olleges at -rnakulam +ew 3elhi
:* UTHOOT HOSPITA/IT3 B HOTE/ DIVISION Carda4o4 County •
Started in 7CF @ur 'roup purchased this project in :BBB
•
ust 7 Km from famous *eriyar Tiger 5eserve
/"ll Spice1 the multi9cuisine restaurant oers nest
•
international dishes •
/"yura)9"yurvedic center helps you for natural therapy.
•
'reen 4eaf certicate from 3ept. of Tourism 'overnment of Kerala
•
2ompany certied with G star classication and #irst IS@ CBB79:BBB 5esort in Kerala.
ut!oot Pa48a Villa •
5iver side cottage at champakulam, "lleppey on the banks
of
*ampa
river.
ut!oot +ac( 2at#r Cruis#s •
#leet of =ouse boats at "lleppey
<* HEA/TH CARE DIVISION •
Since 7C !ar
•
'regorios
!emorial
!uthoot
!edical
centre,
Ko$henchery with IS@ CBB7 :BBB 2ertication •
!ar
'regorios
!emorial
!uthoot
!edical
centre,
*athanamthitta •
!uthoot !5I Scan 5esearch 2entre.
=* UTHOOT VEHIC/E B ASSET FINANCE DIVISION
•
Since 7CC:
•
Kerala)s largest I9lire *urchase 4easing #inance 2ompany
•
@ver 3rive 2ar 4oan #acility provides loans with lowest rates with easy and 0eible repayment.
•
4oan also given to used Mehicles
* UTHOOT +UI/DERS
H#ad uart#rs at Tri,andru4*
Throughout
its
fteen
years
of
operation,
!uthoot
?uilders have built
several
meticulously
planned
residential,
commercial, hospital and hospitality buildings which are known for the &uality of construction, utility value and aesthetic beauty * UTHOOT S3STES AND TECHNO/O%IES *MT 4T3.
-!SR+-8 IT 3ivision of the !uthoot 'roup •
Since 7CC;
•
Strong focus on custom application development
•
3eveloping custom application ranging from medium to large9scale
* ONE3 TRANSFER DIVISION* •
Started in:BBl
•
Faciliti#s includ# ;In-ard R#4ittanc#5
78 Trans 2ash :8 press !oney
;8 #irst 5emit G8 Instant 2ash E8 !oney 'ram
Out-ard R#4ittanc#
78 6iremoney 1G. UTHOOT 2EA/TH ANA%EENT SERVICES PVT* /TD* •
4ife Insurance
•
!utual #unds
•
'eneral Insurance
11* UTHOOT FOREI%N ECHAN%E DIVISION
•
Since :BB7
•
"ll major currencies and travelers che&ues accepted for encashment
•
2ommission free encashment
•
Sale of major currencies and travelers che&ues
•
*ossess "uthori$ed 3ealer 2ategory II license from 5?I
10* UTHOOT PRECIOUS ETA/S CORPORATION
•
Sale of CCC.CC *ure 'old coin imported from Swit$erland.
•
-asy to buy and store
19* PO2ER %ENERATION
The group has also ventured into power generation by tapping into non conventional energy resources. The group in association with Su$lon -nergy 2orporation has installed two wind power units at Thirunelveli to generate electricity from wind. 1:* EDIA
!uthoot 'roup has made a grant entry into the world of media broad casting by setting up an #! radio station at 2hennai.
1<* UTHOOT TRAVE/ SART
=elps the customers to book their national as well as international 0ight tickets. It also helps people to have passport and visa, and also to book train tickets. 1=*
A* UTHOOT SECURITIES /TD*
!uthoot 'roup has forayed into the market, helps the customers to multiply their fortune in Share Trading. ?8 UTHOOT COODITIES /TD* 4atest venture from the !uthoot 'roup, being a member of !2, +23- and +!2- !uthoot 2ommodities provides a platform for commodity future trading. USP 9 %O/D /OAN
•
=igh per gram rate oered
•
uick and fast service etended Q
•
Interest rate, monthly I 5upee on words.
•
dierent schemes, suitable for various categories of customers
•
•
+eed to produce, only Identity proof and address proof Rour assets gold ornaments8 are kept in out strong rooms under 7BBN insurance protection.
•
Interest only for the actual days
•
-asily available 9 +o need to maintain an account.
Su8#r +ull#t Points •
6e provide instant cash loan in E minutes
•
loan for any amount available any time, any where for any purpose.
•
Simple hassle free loan with least documentation.
•
unmatched safety of security of 'old pledged.
•
#leible payment option on easy installments.
1* USP 9 %O/D +OND
6e mobili$e resource, not through ed deposits as in ?anks, but through 3ebenture called 'old9?onds which are fully U secure, redeemable and non9convertible instrument 7. The resources mobili$ed are given out as gold 4oans to customers. This investors money is guaranteed by 7:BN of gold kept in our strong rooms. :. 6e oer the best rate of interest9 up to 7:N. In our 3oubling ?ond, 6e give 7FN interest and in F: months the bond amount doubles. ;. The ?ond holder is free to close the deposit at anytime. Investors in shares and insurance do not have this facility. G. Since it is a 3ebenture, it cannot be converted in to other instruments like shares etc. E. Interest can be availed monthly or annually.
D. =igher interest rate is oered to senior citi$ens, !uthoot employees, -9service me state and central government pensioners, freedom ghters and state and central award winners. F. 'old ?ond investments can be shifted to any branch of the company. . "lso you can avail interest from any branch C. 2ustomer can avail a loan up to CBN the ?ond amount, through any of our branches. 7B. Rou can suggest a nominee for your investment. 77. 2losing of the gold ?ond can be eected through any of our branches. Su8#r +ull#t Points
7. #or every 7BB crs. of investment in ?onds, we have 7GB crores of gold with us. :. >nmatched li&uidity. *remature closure of ?onds 4oans up to CBN available at anytime ;. @ur rate of interest is :.EN to ;N higher than the interest rates of nationali$ed
G. 6e have an unblemished track record B77:G years. 6ide network of over :EBB branches across the country facilities customers to withdraw the amount of ?onds
Tie 9up with all important +ational and international "ir ways 2ompanies.
•
2ategory "9 I"T" recogni$ed travel agent.
•
2an purchase "ir Tickets through any ?ranch of !uthoot #inance and other out lets and divisions of !uthoot group.
•
3oor delivery facilities for tickets you purchase.
•
Service etensions at some of the seleced "ir *orts U Kochi, 3ubai, 4ondon, =eethru.
•
!aintain o%ces at 4ondon, !etro 3ubai, Karama.
•
+ational and International Tour *ackages.
•
*assport, Misa arrangements at an aordable rate and in reasonable
time.
:* USP 9 PRECIOUS ETA/ CORPORATION •
2an buy, :G Karat pure gold coins and biscuits
•
Installment schemes for purchasing ornaments
•
4ess risk and easy to encash.
•
'old coins in *illfur proof packing.
•
Imported from Swit$erland
•
#avorable for owners of jewellery shops and high value customers.
<* USP 9 For#6 •
2an y and sell all important currencies.
•
"ccepted as "uthori$ed 3ealer by the 5?I 4icense for sending money to foreign countries8 category II.
•
•
"ll !uthoot #inance branches can buy foreign currencies. Travel che&ues are issued for all major currencies and also can be en cashed.
•
6e issue electronic travel cards for all major currencies and the same can be used in foreign countries, as "T! card or 3ebit 2ard.
•
Rou can Send money to foreign countries through !uthoot. -change 2ompanies.
=* USP on#y Transf#r •
•
It is an on time transfer #or transferring money up 5s. EBBBB< the sender or receiver needs to maintain a bank account.
•
>p to 5s. EBBBB can be received as cash by the Indian receiver.
•
" customer can accept money from any branches of muthoot in India.
•
" foreigner can receive cash, in Indian currency up to an e&uivalent of :EBB >S 3ollars from any !uthoot branch.
•
Services of Si money transfer companies are made available through !uthoot ?ranches.
* USP. *Po-#r Card •
This card will be accepted in all !uthoot #inance branches.
•
=older gets an accidental insurance cover up to 5s. 7BBBBB<9
•
2an enjoy on line "ir tickets ?ooking and Shopping
•
;BB shops in Kerala give the holder, up to :EN discount in shopping
•
5eferral rewards and ?onus points can be converted as gifts.
•
5echarging facilities for mobile phone
•
?ill
payment
facilities
at
KS-?s and
major
phone
companies. * USP.2S •
3ealing in life Insurance Investment *roducts
•
"dvice on best insurance product of all major Insurance 2ompanies
•
!arket 4inked *roducts which are consistently delivering good return
•
>nit linked and Investment oriented Insurance *lans
•
*rovides #leibility gives *rotection to savings of life
•
4i&uidity, high returns, Ta benets, Insurance 2over, option to switch among funds and continued advices to maimi$e health.
•
-cellent after sales service and redemption advises.
ANA/3SIS OF FINANCIA/ STAEENT
CHAPTER .< RESEARCH ETHODO/O%3
CHAPTER .< RESEARCH ETHODO/O%3
O+ECTIVE OF THE STUD3 •
To make a analytical study of various nancial products
•
To know the eective utili$ation of various nancial products by !uthoot nance corporation ltd.
•
To study the problems connected with granting !uthoot nance to customer
•
To study establishment, growth and progress of customer service provided analytical study of various
nancial
products •
To know opinion of customer regarding 2T# provided by !uthoot nance for the 2T#.
SCOPE OF THE STUD3
The scope of the study is to identify and analy$e the factors which make the gold loan provided by !uthoot #inance 4imited the best and most sought after. The reason behind the huge success of this facility is unlimited. This study intends toA 7. To know the present market share of !uthoot #inance 4imited. :. Indentify the factors responsible for the high customer satisfaction.
;. To evaluate the social security and empowerment process of the company. G. To evaluate the suggestions of the customers which is necessary
for
the
further
development
of
the
organi$ation. /IITATIONS •
•
•
Time allowed for the study was not su%cient. " sample survey was selected. The data provided by the respondent may not be correct or accurate.
•
Some of the samples selected for the study did not respond properly to the &uestionnaire. =owever proper care had taken to make the analysis and interpretations more meaningful.
•
uestionnaires are impersonal, this means that it may be di%cult to understand answers and thus to act on them. "lso,
there
is
a
chance
that
the
&uestion
may
be
misinterpreted, rendering the answer useless. •
uestionnaires also invite people to lie and answer the &uestions very vaguely which they would not do in an interview.
•
@pen &uestions can take a lot of time to collect and analy$e.
•
*eople are not always willing to ll &uestionnaires in so they may just throw them always.
•
Sometimes &uestions used are too standardi$ed closed8 so some peoples preferred answers may not be included, and this also does not allow for much detail.
•
*eer pressure of embarrassment may cause people to not want to answer certain &uestions, or they may want to impress the researcher and fabricate the truth by lling in untrue answers, making &uestionnaires unreliable
and
sometimes invalid. RESEARCH P/AN
In this chapter, eplains the structural frame work .The research methodology considered as a blue print of the study. It determines the strengths, reliability and accuracy of the project. !ethodology can be said as the methods used by researchers in selecting samples, sample si$e, data collection and various tools in data collection.
PRE/IINAR3 INVESTI%ATION
*reliminary investigation involves the followingA
•
3irect visit to the company. 3iscussions with the branch manager. "nalysed about the scope and viability of the eisting
•
facilities. Secondary data were used to get an overview about the
• •
two companies. EP/ORATOR3 STUD3 •
*ersonal interviews with branch manager, sta and the
•
customers. uestionnaires were used to understand various factors aecting the gold loan nancing decision.
•
To analyse and interpret the data collected using gures
•
and tables. The last phase of this project is to give suggestions to !uthoot #inance.
RESEARCH DESI%N
/" research design is the plan, structure and strategy of investigation conceived so as to obtain answers to research &uestions and to control variance1 by #.+. Kerlinger 7CEC8 PHASES OF RESEARCH DESI%N •
Sa48l# d#si&n
Sample design deals with the method of selecting items to be observed for the given study.
•
O's#r,ational d#si&n
@bservational design relate to the conditions under which the observations are to be made while conducting research studies.
•
Statistical d#si&n
These design concern with the &uantitative and statistical aspects of the design such as techni&ue of study, the methods of model building etc. CO//ECTION OF DATA
The successes of the study are based upon the proper collection of data. +ormally data collected comes under two categoriesH *rimary and Secondary.
PRIAR3 DATA
The data collected directly by the investigator are called primary data. They are original and give rst hand information. It can be collected by dierent methods vi$. direct personal investigation, indirect oral investigation etc. *rimary data were collected through 9 uestionnaire 9 *ersonal interview 9 Survey method 9 @bservation 9 -pert opinion
•
u#stionnair#
The primary data was collected mainly by using a &uestionnaire. In study, structured &uestionnaire consisting of a list of &uestions pertaining to the dichotomous &uestions, multiple choice &uestions and &uestions for recommendations and suggestions. This facilitates the respondents to ll up the &uestionnaire is an easy and fast manner. The &uestions are divided in two following sectionsA9
•
*ersonal details In&uiry details
P#rsonal Int#r,i#-
The personal interview was taken from half of the respondents. This was mainly to elicit information that was left out in the &uestionnaire opinions and suggestions were asked for the betterment of the project. •
Sur,#y 4#t!od
Survey is the most commonly used method of primary data collection in marketing research. This is widely used because it)s etreme 0eibility. Survey research is a systematic gathering of data from respondents through &uestionnaire. Survey techni&ue used in the study is personal interview. The advantages of this method areA •
It re&uires relatively shorter period of time to complete
•
5esearcher can
procure
many dierent
types of
information •
The amount of information produced on each aspect is larger.
•
There is a possibility of more accurate reply
SECONDAR3 DATA
The collected by the investigator from the data already collected by others for some other purpose are called secondary data. Thus secondary data are rened data from primary data. It is also called second hand data because data is collected from previous reports about the organi$ation from the internal books, maga$ines and 6orld 6ide 6eb. Secondary data are collected through 9 "nnual reports 9 6ebsites
9 Journals and maga$ines
CHAPTER . = DATA ANA/3SIS B INTERPRETATION
CHAPTER . = DATA ANA/3SIS B INTERPRETATION
TA+/E.1 SHO2IN% THE C/ASSIFICATION OF RESPONDENTS ON THE +ASIS OF THEIR INCOE %ROUP INCOE ;RS*5
NO* OF RESPONDENTS
PERCENTA%E
?elow :BBB
7E
;B
:BBB9GEBB
7;
:D
GEBB9DBBB
7:
:G
DBBB and above
7B
:B
TOTA/
1GG
int#r8r#tation
2hart showing classication of respondents on their monthly income.
out of EB
respondents among the 7E
respondents were having a monthly income of less than :BBB while 7; of them earned between :BBB9GEBB, and 7: of respondents have a monthly income between GEBB9DBBB and 7: of them earned above DBBB.
TA+/E.0
SHO2IN%
THE
C/ASSIFICATION
RESPONDENTS ON THE +ASIS OF A%E %ROUP
A%E %ROUP ;IN
NO* OF
PERCENTA%
3EARS5 ;B9;E
RESPONDENTS :;
E GD
;E9GB GB9GE GE9EB
7 E G
;D 7B B
TOTA/
1GG
OF
Int#r8r#tation)
2hart showing the classication of respondents according to their age group :; of the respondents among the EB respondents have age group of less than ;B9;E, while 7 of then age group of between ;E9GB, BE of the respondents have the age group between GB9GE, G of the respondents are in the age group of GE9EB. TA+/E.9
SHO2IN%
THE
C/ASSIFICATION
RESPONDENTS ON THE +ASIS OF OCCUPATION
OF
OCCUPATION
NO* OF
8#rc#nta&#
'ovt. employee
RESPONDENTS 7B
:B
?usinessmen
:B
GB
"griculturist
F
7G
*rofessional
7;
:D
TOTA/
1GG
int#r8r#tation
2hart showing
the
classication
according to their
occupation out of EB respondents, 7B of respondents are 'ovt. employee,
:B
of
respondents
are
businessmen,
BF
of
respondents are agriculturist, and 7; of respondents are professionals. :* TA+/E SHO2IN% THE HO2 OFTEN DO 3OU TA@E A %O/D /OAN IN A 3EAR
O8inion
@nce :9E times D97B times !ore than 7B times total Interpretation
No Of
8#rc#nta&#
R#s8ond#nt : :: B B
ED GG B B
EB
7BB
The above chart shows that the out of EB, the opinion of the : respondents suggest that EDN of !uthoot)s customers applies for a gold loan just once, while the rest of the GGN applies for a gold loan :9E times.
<* THE TA+/E SHO2S THAT THE CUSTOERS OPINION RE%ARDIN% THE RATE OF INTEREST CHAR%EA+/E +3 THE UTHOOT FINANCE O8inion
No of
-cellent Mery good 'ood #air ?ad Total
P#rc#nta&#
r#s8ond#nts :: 7: 7B BD B EB
GG :G :B 7: B 7BB
Int#r8r#tation
The
above
chart
was
designed
to
understand
the
satisfaction of the customers with the interest rate on gold loan oered by !uthoot nance. =ere, GGN of the customers believe that the interest oered by the muthoot nance company
is ecellent. 6hile :GN of customers of !uthoot
nance think that the rate of interest is very good.:BN of the respondents believe that the interest rate is good. 7:N of the respondents believe the interest rate is fair. +one of the
respondents thought that interest rate oered by companies was bad. =* TA+/E SHO2S THAT THE UTHOOT FINANCE STAFF +EHAVIOR TO2ARDS THE CUSTOER RE%ARDIN% VARIOUS FINANCIA/ PRODUCTS O8inion
-cellent Mery good 'ood #air ?ad Total
No of r#s8ond#nts :E 7: 7B B; B EB
8#rc#nta&#
EB :G :B BD B 7BB
Int#r8r#tation
Sta behavior is interpreted in the above chart. "bout EBN of the organi$ations thought that the behavior of sta is ecellent. The share of customers who choose very good as the option stands at :GN for !uthoot nance.:BN of respondents believe that sta behavior was good and BDN of respondents
believe that the fair respectively. +one of the respondents to the &uestionnaire believe that the behavior of sta was bad. * CUSTOERS OPINION TO2ARDS THE VARIOUS FINANCIA/ /OAN APP/ICATION PROCEDURE OFFERED +3 THE UTHOOT FINANCE . O8inion -cellent Mery good 'ood #air ?ad
No of r#s8ond#nts :: 7; 7B BE B
P#rc#nta&# GG :D :B 7B B
Int#r8r#tation
The above chart was designed to interpret the response of customers to !uthoot nance gold loan procedure .It was interpreted that GGN and :DN of !uthoot)s respondents believed that
this factor
was
ecellent
and very good
respectively. "s for option ('ood) and (#air) the share stands at
:BN and 7BN !uthoot nance. +one of the respondents to the &uestionnaire believe that the ?ad. * TIE TA@EN FOR THE VARIOUS AND 2HO/E /OAN PROCEDURE OF UTHOOT FINANCE
O8inion
No of
P#rc#nta&#
4ess than E minutes E9 7B minutes 779 ;B minutes ;79 DB minutes @thers *lease
r#s8ond#nts B; BF 7 :: B
BD 7G ;D GG B
mention8 Total
EB
7BB
Int#r8r#tation
The above diagrams represents one of the main factors which decides the fate of any loan nancing company i.e. time
taken for clearing a loan. BDN of respondents believed that it takes less than E minutes for the whole loan procedure. respondents who thinks the whole loan procedure takes E9 7B minutes stands at 7GN. the option )779;B minutes) was selected by ;DN. The option ;79DB minutes was selected by GGN respectively. +one of the respondents believe that the whole loan procedure takes more than 7 hour.
*
HO2
SATISFIED
ARE
3OU
2ITH
THE
SECURIT3
STANDARDS OF UTHOOT FINANCE /IITED
O8inion
7BBN B9 CCN DB9 FCN GB9 ECN VGBN Total
Int#r8r#tation
No of r#s8ond#nts E BD 7 7E BD EB
8#rc#nta&#
7B 7: ;D ;B 7: 7BB
It is interpreted that 7BN of respondents are 7BBN satised with their security standards. It is also interpreted that 7:N of respondents
satised
with
the
security
facilities.
7
respondents trusted !uthoot security standards is DBN 9 FCN respectively. The institutes had ;BN of the respondents who believed that the security standard was GBN 9 ECN trustable the institutes had 7:N of the respondents who believed that the security standard was greater than GBN trustable. 1G* TA+/E SHO2IN% THAT HO2 THE CUSTOER 2I// COE TO @NO2 A+OUT UTHOOT FINANCE FACI/ITIES
O8inion
No of
P#rc#nta&
+ewspapers Journals and
r#s8ond#nts B BD
# 7D 7:
!aga$ines T.M "dvertisements +otice #riends and relatives @thers *lease
:G : 7B B
G BG :B B
EB
7BB
specify8 Total Int#r8r#tation
The diagram shows the mediums through which the customer came to know about !uthoot #inance 4imited, =ere it is interpreted that newspaper as a medium penetrates about 7DN for !uthoot nance. The main medium of advertising for the company
is T.M. advertisements which stand at GN for
!uthoot nance. @ther sources like journals and maga$ines9 !uthoot nance is 7:N.
notice is BGN, friends and relatives is
:BN is also play vital roles in penetrating the market share of the company. 11* TA+/E SHO2S THAT THE CUSTOER RESPONSES TA@IN% INTO CONSIDERATION THE RECENT F/UCTUATIONS OF VARIOUS FINANCIA/ SERVICES OF UTHOOT FINANCE ARE SUCCESSFU/ IN PROVIDIN% EFFECTIVE /OANS
O8inion
Strongly agree "gree +eutral 3isagree Strongly
No of r#s8ond#nts 7B ;B B B: B
8#rc#nta&#
:B DB 7D BG B
disagree
Int#r8r#tation
It is interpreted from the above diagrams that a majority of the DBN respondents of !uthoot #inance agrees to the fact
that the company are able to provide eective loans even after the recent 0uctuations in rates. Those respondents who strongly agree to this fact constitute :BN and 7DN opted for neutral while rest BGN disagreed to this fact. 10* TA+/E SHO2S THAT IN CASE OF DEFAU/T$ DOES UTHOOT
FINANCE
ASSIST
+3
PROVIDIN%
PA3+AC@ PERIOD
O8inion
Strongly agree "gree +eutral 3isagree Strongly disagree
Int#r8r#tation
No of r#s8ond#nts 7: : 7B B B
P#rc#nta&#
:G ED :B B B
/ON%
=ere, it is interpreted a majority of the respondents agrees that nancial institutions assist by providing long payback period. This was closely followed by the opinion that the respondents strongly agrees that EDN nancial institutions assist by providing long payback period. #ollowed by neutral with :BN and strongly agree is :GN.
CHAPTER – FINDIN%S$ SU%%ESTION B
CONC/USION
CHAPTER – = FINDIN%S$ SU%%ESTION B CON/USION
FINDINDS
The major nding of the study can be summari$ed as followsA •
The management and employees of both the companies maintains a good relationship.
•
!ost of the respondents E.;;N8 have monthly income range between 5s.EBBB Q 5s 7B,BBB.
•
!edia advertisement has an important role in spreading
•
popularity Incase of !uthoot #inance. !ajority of the respondents) have the opinion that the behaviors of company)s sta are cordial and friendly.
•
!ajority of the customers were satised with the services, hence there was no need of complaints to be lodged.
•
+?#2s score over banks on two fronts despite charging higher interest 9 &uick approval and disbursal of loans, and less documentation. "n +?#2 at the most takes ;B minutes to give the loan after verifying the gold, and the only document re&uired is an identication proof of the person pledging the gold.
•
It was also found that customers of
the companies are
more than satised with the security standards on their •
gold jewellary. It was indentied from the customer response that the companies are successful in proving eective gold loans even after the recent 0uctuations in the prices of gold.
The study was also aimed at nding best gold loan nancing company. "fter analy$ing and interpreting the data collected through primary and secondary sources, the following conclusions were madeA
•
The estimated gold loan portfolio of !uthoot #inance 4imited F,;G: 2rores8 is far superior and leasing 4imited :,EDB 2rores8 which indicate the sound market position of !uthoot #inance *rivate 4imited.
•
It was also interpreted that !uthoot #inance 4imited has more regular customers.
•
The interpretation of data also indicated that the public are more satised with the interest on gold loan oered by !uthoot #inance. This might be a result of its eperience in the gold loan market and its objective to provide gold loans at cheaper and aordable rates.
•
"nother important nding was presence of !uthoot throughout the country as well as aboard.
•
!uthoot being the more established among the two knows the infrastructure re&uirements to grow in this industry.
•
It was
also
interpreted
that
!uthoot
#inance
was
successful in providing long pay back periods to its customers. This is also an another reason for its success in this industry.
SU%%ESTIONS
FOR UTHOOT FINANCE •
!uthoot should work on its marketing strategies to improve its market share.
•
!ost of the people are unaware of the dierent nancial products oered by !uthoot. So the company should take necessary steps to create awareness among the public.
•
The company can also give attractive oers to old customers as well as prospective new customers.
•
The company can also look into new ventures as it has established itself as the leader in gold loan nancing eld.
•
!uthoot should also speed up its process in oering I*@.
CONC/USION
It helped me to nd out the dierent factors responsible for the success of the muthoot nance companies. The major nding that can be concluded from this study is that !uthoot #inance 4imited is still the best gold nancing company in India. This eperience has helped me gain knowledge about the business of gold loan nancing in India.
UESTIONNAIRE B +I+/IO%RAPH3
%O/D /OAN AR@ET SURVE3 UESTIONNAIRE FOR UTHOOT FINANCE 7. +ame of the customerA :. "geA ;. @ccupationA G. SeA !ale
#emale
E. !onthly salaryA D. =ow often do you take a gold loan in a yearW a8 @nce b8 :9 E times c8 D9 7B times d8 !ore than 7B times F. "s per the scale below, rate the following factors of !uthoot #inance 4imitedA
E9 -cellent G9 Mery 'ood ;9 'ood :9 #air 79 ?ad I. II. III. IM. M.
5ate of interest A 4ocation of the institute A Sta behavior A 'old loan application procedureA Infrastructure facilities A
. Time taken for the whole gold loan procedureW a8 4ess than E minutes b8 E9 7B minutes c8 779 ;B minutes d8 ;79 DB minutes e8 @ther *lease mention8 XXXXXXXXXXXXXXXX C. =ow satised are you with the security standards of !uthoot #inance 4imitedW a8 7BBN b8 B9CCN c8 DB9FCN d8 GB9ECN e8 VGBN 7B.
=ow did you come to know about !uthoot #inance
4imited and its facilitiesW a8 +ewspapers b8 Journals and !aga$ines c8 T.M. "dvertisements d8 +otice e8 #riends and relatives f8 @thers *lease specify8
77.
Taking into consideration, the recent 0uctuations of
gold rates. 3o you think !uthoot #inance was successful in providing eective gold loansW 7:.
In case of default, 3oes !uthoot #inance assists by
providing long payback periodW 7;.
6hy do you prefer !uthoot #inance 4imited over
other 'old loan institutes and 'overnment organisationsW XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
7G.
"ny complaints about !uthoot #inance 4imitedW
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 7E.
"ny suggestions to improve the services oered
by !uthoot #inance 4imitedW XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
3ateA SignatureA
