Documente Academic
Documente Profesional
Documente Cultură
ON
SUNDARAM FINANCE Pvt.Ltd
Report Submitted by
B.SRINITHI
(17E4234)
P.G. DEPARTMENT OF MANAGEMENT D.G VAISHNAV COLLEGE,
CHENNAI
SCHOOL OF MANAGEMENT
DWARAKA DOSS GOVERDHAN DOSS VAISHNAV COLLEGE
(AUTONOMOUS)
ARUMBAKKAM, CHENNAI – 600106
JAN 2018
BONAFIDE CERTIFICATE
FACULTY GUIDE
Dr.Kolamal
I take the opportunity to express my gratitude to all of them who in some or other
way helped me to accomplish this challenging project in SUNDARAM
FINANCE Pvt.Ltd
First and foremost, I would like to express my thanks to all the working staffs of
SUNDARAM FINANCE Pvt.Ltd without whom this internship would not have
been possible.
DATE:
EXECUTIVE SUMMARY
The main objective of the internship is to fulfill the requirement of the MBA
program as prescribed by the PG. An intern has to prepare project report at the
end of the internship period but the main objective of the internship is to get the
hands-on experience of the real world organization. The internship was
completed with the objective of getting practical knowledge in the human
resource department of “SUNDARAM FINANCE Pvt.Ltd”. The first
responsibility I was assigned on this internship period was to observe and
understand the walk in customers and the queries raised by them. As an intern, I
realized that I was successful to gather a lot of significant learning experiences
which would be helpful in my future career. I could use my theoretical
knowledge of IT functions in real practice while participating in many
discussions. I was actively involved in the department activities. I also
attempted to gather more information on basic job functions of the working
staffs on different work backgrounds. It was commendable to see how
wholeheartedly they welcomed, acknowledged and appreciated new ideas and
knowledge. I have provided few recommendations based upon my
understanding and knowledge. I successfully completed all the assigned duties
and handed them over to the MANAGER at the end of the internship. I
thoroughly enjoyed the challenges that came along every single day. I could
also bring some minor improvisations during my internship which were able to
leave their marks. These lessons that I have learned will be a valuable one for
my future endeavors as well.
INDEX
CHAPTER CONTENTS PAGE
CHAPTER 1 INTRODUCTION
2.1 ORGANISATIONAL
STRUCTURE
2.2 ORGANISATIONAL
CHART
FUNCTIONAL
CHAPTER 3 DEPARTMENTS
5 SWOT ANALYSIS
6 AREA OF WORK
7 CONCLUSION
8 BIBLIOGRAPHY
Introduction
This report is a short description of one month internship carried out in
sundaram finance as a compulsory component of MBA.
The internship report contain an overview of the internship company and the
activities, tasks and projects that I have worked on during my internship. Finally
I give a conclusion on the internship experience and my learning goals that I
have achieved
This internship report contains my activities that were done in the company. The
following chapter a description of the organization SUNDARAM FINANCE
LTD(SF) and the activities that are undertaken by the firm. After which is a
reflection on my functioning, the knowledge gained during the internship is
described. Finally, conclusion on the internship experience according to my
learning goals are provided.
Company profile
WWW.sundaramfinance.in
Sundaram Finance has grown over the past decades on the foundations of
dedicated customer service, fair business practices, efficient, safe and trusted
financial policies.
Strong Values
Faith. Depositor Confidence. Institutional Trust. Investor
Steadfastness. Employee loyalty. These five pillars support the strong edifice of
Sundaram Finance. An edifice built in 1954, when Shri T.S.Santhanam
envisioned the future of Hire-purchase Finance in India. Sundaram Finance was
promoted by Madras Motor Insurance Company, a part of the reputed TVS
Group.
A visionary ahead of his times, Shri Santhanam identified the opportunities that
arose as a fledgling nation embarked on the path of development, anticipating the
important role the finance industry would play in the emerging market scenario
in the country. It was his foresight and entrepreneurial instincts, which laid the
foundations of Sundaram Finance. Foundations that would ensure a secure future.
Reaching Out
Driven by the sincerity of Shri Santhanam’s concern for commitment to
and passion for the small truck operators, at a time when the focus was only on
financing large truck operators, Sundaram Finance emerged as a leading financier
of the transport sector. Devoting its services to the growth of the road transport
industry, Sundaram Finance is today synonymous with automotive financing in
the country.
Dedicated Service
At Sundaram Finance, values are defined by the services rendered to
the customer.Long before customer satisfaction became a fashionable concept,
Sundaram Finance distinguished itself by providing a host of value-added
services which transcend the ordinary approach.
At Sundaram Finance, service is a way of life.
Deposits
Sundaram Finance offers attractive schemes to all its depositors. In fact,
many of the depositors have a relationship with the company which spreads over
three generations and view Sundaram Finance as synonymous with safety,
security and service.
The company has been rated MAAA by ICRA signifying highest safety.
Leasing
Sundaram Finance diversified into leasing in 1981, when leasing was
still in its conceptual stages in the country. Pioneering the growth of leasing with
its flexible, cost-effective and tailor-made leases, Sundaram Finance, today
counts among its clientele some of the most reputed blue chip companies.
Sundaram Finance has a diversified portfolio ranging from computers to aircraft.
Car Finance
Economic liberalization saw the entry of many foreign car
manufacturers in the country. Realising the high growth potential of the car
market, Sundaram Finance launched Sundaram Car Finance exclusively to
finance cars and utility vehicles. Supported by a large countrywide network,
strong dealer relationship and its customised service, Sundaram Finance has
attained a position of strength in its area, servicing a very large customer base.
At Sundaram Finance, people are its most valuable assets. The Company
conducts regular in-house training programmes that help motivate employees and
improve leadership and managerial abilities. Every employee at Sundaram
Finance is proud to represent an institution that values professional integrity,
above all else.
Sundaram Finance not only invests in its people but also in the latest advanced
state-of-the-art technology. It set industry standards by computerising and
networking all its offices through a variety of communication media including
VSAT installations. These ensure efficient and smooth functioning of all its
systems and procedures resulting in better customer service.
Secure Future
Committed to Society
Sundaram Medical Foundation (SMF), a non-profit Trust set up in
1990, exemplifies the commitment of Sundaram Finance Group to the community
and its citizens. Dedicated to setting new standards in quality healthcare to the
community in a cost-effective manner without compromising on patient care,
medical competence, service courteousness and compassion, Dr.Rangarajan
Memorial Hospital is a hospital under SMF, where caring is not a sub-speciality
in medicine.
Endowed with a large corpus Fund, the hospital is today, equipped with up-to-
date medical infrastructure and provides a wide range of medical services
fulfilling a long felt need for providing quality healthcare at affordable costs.
History
The company was started with a paid-up capital of Rs.2.00 Lakhs and later went
public in 1972.
The Company's shares were listed in the Madras Stock Exchange in 1972 and in
the National Stock Exchange in January 1998.
Subsequently, the equity shares of the Company have been delisted from Madras
Stock Exchange Limited (MSE) with effect from January 27, 2004, in accordance
with SEBI (Delisting of Securities) Guidelines, 2003, for voluntary delisting.
Industry profile
• It is not a part of the payment and settlement system and as such cannot
issue cheques to its customers
Importance
Greater reach.
Role of NBFCs
Functions
Mobilization of savings.
Provide liquidity.
Current status
NBFI have improved their operations and strategies. Industry experts opine that
they are much more mature today than they were during the last decade. In fact,
aggressive strategies helped LIC housing finance to grab new customers and
increase its market share in national mortgage market. The segment which was
hit hardest was vehicle financing. Fortunately, since vehicle finance is asset based
business, their asset quality did not suffer as against other consumer financing
business.
Deposit is taken care of the customers under the finance of the public.
Fixed deposit
Last day of every month Every Month * March, June, Sep, Dec
Cumulative deposit
NRI Deposit
The terms and conditions governing the NRI deposits are given hereunder:
3. The depositor has to furnish his NRO bank a/c No. as both the principal
and the interest shall be credited to the depositor's NRO bank a/c only.
4. Tax will be deducted at the rates prescribed by the Income Tax law in
force from time to time from the interest amount irrespective of the
quantum of interest.
Interest rate
Fixed Deposits
12 6.96% 7.00%
18 6.96% 7.00%
24 7.21% 7.25%
36 7.21% 7.25%
Cumulative Deposits
On maturity
Renewal of Deposits
Maturity Payment
* The above Rates are also applicable for Prematurity payment(PMP) in the case
of a death of depositor.
Loan on Deposits
Organisational structure
Organisational chart
Sri S Viji – Chairman
Sri S Ram-- Director
Sri N Venkataramani- Director
Sri P N Venkatachalam-- Director
Sri S Mahalingam --Director
Sri S Prasad - Director
Sri S Ravindran—Director
Ms Shobhana Ramachandhran-- Director
Sri Rajiv C. Lochan-- Director
Sri T T Srinivasaraghavan--Managing Director
Sri Harsha Viji--Deputy Managing Director
Sri A N Raju-- Director (Operations)
Sri M Ramaswamy--- Chief Financial Officer
Sri P Viswanathan--- Secretary & Compliance Officer
Organisation Structure
Awards and rewards
Sundaram Finance listed in Dun & Bradstreet's India's Top 500 companies
for 2014
Our MD Sri T.T. Srinivasaraghavan ranked among the Top 100 CEOs of 2014
by Business Today and consultancy firm PwC, India
Raman, Managing Director, from the All India Motor Transport Congress.
Best Tax Payer” in the category of Private Sector Company for Assessment
Year 1995-96 in Tamil Nadu Region, from the Income Tax Department, Tamil
Nadu.
Rolling Trophy” by Rotary Club of Madras South West for Best Employer-
Employee Relationship for the year 1995-96.
Second Best Tax Payer” in the category of Private Sector Company for
Assessment Year 1994-95 in Tamil Nadu Region, from the Income Tax
Department, Tamil Nadu.
I learnt to process fresh forms using sundarams deposits software and got to know
the various documents that are to be collected for fresh deposits.
If it’s a single deposit pan and address proof like Aadhar, telephone or gas bill is
a must.In case of join deposits second depositor need to submit address proof
alone with FATCA-CRS.Form 15g/h is given by depositors who are non-tax
payees to not deduct TDS for the deposit. 15G is given by depositors below 60
and 15H is given by people who are 60 above
Renewal
A process whereby the deposit holder continues with the deposit for an additional
time period after the completion of the initial time period of investment. The
additional period can be similar or different from the original time period. Instead
of withdrawing the deposit amount this is continued.
Maturity payment
In finance, maturity or maturity date refers to the final payment date of a loan or
other financial instrument, at which point the principal (and all
remaining interest) is due to be paid.
The term fixed maturity is applicable to any form of financial instrument under
which the loan is due to be repaid on a fixed date. The procedure for maturity
payment was taught to me. For maturity payment, original TDR is to be
submitted and all details are verified. If it is a joint account signature of both the
depositor is a must based on the deposit option stated earlier which is As (any
one of the survivor) or ns(number 1 survivor).
Premature payments are principal amount that are withdrawn before date of
maturity
The procedure and process for PMT was stated to me during the period are as
follows,
No repayment (Not applicable in case
Before 3 months from the date of
of premature repayment in the event
deposit/renewal(Lock-in-period)
of death of the depositor**)
Loan on Deposits
A loan is the act of giving money, property or other material goods to another
party in exchange for future repayment of the principal amount along with
interest or other finance charges.
The company may grant, at its sole discretion, loan against deposit, provided the
deposit had run for a minimum period of 3 months upto 75% of the deposit
amount, carrying interest @2% above the contracted rate (compounded at the
same rest as of the TDR) payable on such deposits. The relative term deposit
receipt and loan documents have to be signed by both/all the depositors in case
of A or S/s accounts and by the first depositor in case of N or S/s accounts.
Cheque/DD for loans will be drawn only in favour of the first depositor.
Maturity payment after adjustment of loan principal and loan interest will be
made on maturity, if renewal instructions for the balance amount (subject to a
minimum of Rs.10,000) are not received within one week in advance of the
maturity.
Interim interest
The interest due at closing to cover interest due that will not be collected with the
first payment. Typically, interim interest is collected from the closing date
through the last day of the month in which the loan is closed. Interest Rate
Caps. Interest Rate Ceiling.
Any renewal that is due to be renewed and customers who renew at later period
gets interim interest for the broken period of their fund
I was thought to prepare the interim invest file, dispatch letter and invoice
preparation.
Interim interests are provided to customers who renew at later dates after 60 days
from date of renewal at 1% less than the current rate of interest during the period.
Ratio analysis
Ratio analysis is used to evaluate various aspects of a company's operating and
financial performance such as its efficiency, liquidity, profitability and solvency.
The trend of these ratios over time is studied to check whether they are improving
or deteriorating.
I have also done financial ratio analysis and statement showing working capital
based on the 3 years balancesheet of the company.
Functional department
FINANCE:
Financial Reporting and Control is the function that takes raw accounting
entries and transforms them into usable and comparable financial statements.
Requiring far more judgment than the bookkeeper’s role, this function involves
everything from ruling on how to implement accounting principles to designing
financial processes of the organization, selecting accounting systems, liaising
with external auditors, and ensuring that there are no gaps or oversights in
existing processes.
Running a business involves paying tax, and paying tax means doing a lot
of calculations and filling out a lot of forms. Often using the financial
statements as a basis, along with various other configurations of the information
produced by Bookkeeping and Payables/Receivables, the Tax and Compliance
function will make sure all of the government forms and filings are sent
complete and on-time to the taxman. A strong Tax and Compliance function
will go one step beyond simple compliance, and will find ways to minimize tax,
so as to maximize the company’s net income.
This function, “FP&A” for short, is the true bridge between the Past and
the Future. FP&A regularly creates strategic and financial plans that forecast
what financial results (sales and expenses) will look like in future periods. Then,
they compare actual results—prepared with the assistance of the Financial
Reporting and Control function—to determine areas where the business can
improve. With this “variance analysis” complete, they can then prepare more
accurate forecasts for the future. A strong FP&A function will not only generate
annual forecasts but will be able to update them even over the course of a day or
two, and to run many scenarios that examine the effects of, say, losing a big
customer or an economic contraction.
The key role of Treasury is to make sure that the company doesn’t run out
of cash. This means, among other things, forecasting the upcoming working
capital (receivables, payables and inventory) needs of the company, investing
surplus cash in short-term instruments to generate modest interest income, and
managing currency risk.
Capital Budgeting
Risk Management
This is the one function which is hand in glove with HR. Recruitment has
been one of the major responsibilities of the HR team. It is the job of HR
personnel to plan and devise strategic campaigns and guidelines for recruiting
suitable candidates for a required job description. They also have to serve as a
mediator between the employer and the candidate and communicate company
policies and terms of the contract to the candidate before he is hired. This is the
first pillar of HR management that every HR manager starts with. It’s probably
one of the most important aspects of any HR professional’s career. The
recruitment function comprises 2 main objectives:
1.AttractTalent
This is where the recruitment strategies are put in action. In the current age,
there’s ton of competition vying for the attention of the best talent in the market.
The HR manager needs to run all possible engines to go out there in the market
and find that one suitable gem.
This part of the role includes things like finding relevant locations to look in,
reach out to maximum potential candidates using mass communication mediums,
aggregate all responses, filter out irrelevant applications, judge suitable
incumbents and coordinate internally to get them interviewed. Once the finalists
are decided, the HR manager turns into a ‘negotiator’ of sorts, working as a
mediator between the company and the candidate to find that win-win ground.
Training
Not all is done once you’ve recruited a suitable candidate for the job. Many
organizations perform tasks a tad differently. Training employee is important to
help the new hires get acquainted with the organization’s work pattern. It is
imperative for the HR department to incorporate a training program for every new
employee based on the skill set required for their job. It will further also
contribute towards employee motivation and retention.
For the training to be effective, every new employee can be subjected to an on-
the-job training for the initial days to get him in sync with the work guidelines of
the organization. This training will not only be of assistance to the employee but
also give the HR team an insight into the employee’s workmanship. On
completion of the training, HR plays a significant role in assessing the results of
the training program and grading employees on the same.
Professional Development
Appraisals
Since HRM is a body meant for the employees, carrying out timely
performance appraisals is a given. Performance appraisals help in employee
motivation by encouraging them to work to their fullest potential. It also enables
to give them feedback on their work and suggest necessary measures for the same.
This helps employees to have a clear view of what is expected of them and what
they are delivering. They can thus, work better towards improving their
performance and achieving targets.
Rewarding the employees for a work well done imparts motivation and at
the same time induces a desire to excel at tasks in hope of obtaining rewards. It
serves as bait for inculcating a healthy competitive environment amongst
employees to achieve targets and meet deadlines. A reward need not be
materialistic always. It could just be a word of appreciation in front of all
coworkers for a menial task done with complete honesty.
Legal Knowledge
This may seem the least glamorous of all, but is an important aspect of the
HRM. An HR manager should always be in compliance with the law. Whether
it’s drafting new policies or writing terms of a contract, it is the HR department’s
job to build guidelines keeping the laws in mind. This ensures an organization’s
continued growth and existence. While drafting policies, the HR should always
ensure to be at an upper hand legally and keep the organization’s practices in tune
with the labor laws, tax laws, permissible working hours, minimum wages, and a
no-discrimination policy.
Organization
Management
Management is the most important job of an HR manager. It is what defines
a good HR manager. Management extends right from managing employees to
managing the employers and the whole HR department as well.
Payroll Management
Once all the attendance monitoring, leave tracking, clock in/outs etc is
tracked and monitored, it’s time for the most important aspect–calculating the
payroll. Efficient calculation of salaries, wage-cuts, reimbursements, and
generation of pay slips amounts to the role of HR managers in payroll
management.
The HR manager should maintain transparency and provide the employees with
information as and when asked. The HR should ensure not only accurate
calculations of salaries but also timely transfer of the same. They also have an
obligation towards exiting employees in settlement of dues and compensation
Rivalry
Bargaining Bargaining
Power of
Among
Power of
Suppilers Existing Buyers
Competitors
Threat of
Subtitute
products
or Services
The threat of new entrants is relatively low as the industry is unorganized and
risky. A handful of NBFC companies and banks are involved in financing. Since
the market is relatively volatile and unorganized. Barriers are minimum, new
entrants would face many problems while coming into the market.
Few companies who came into the market closed their business because the
market is unorganized and more competitors for such a small market.
THREAT OF SUBSTITUTES (Medium):
Various customers can switch over to new improved models of the existing
services. In this model, substitutes products refers to the services in the other
industries , To the economist a threat of substitutes exists when a product demand
is affected by the price change of the substitutes . A products price elasticity is
affected by substitute products – as more substitutes become available. The
demand becomes more elastic since the customers have more alternatives.
Switching costs
Buyer inclination to substitute
Price performance trade off of substitutes.
Here substitutes could be next door competitors who might give some offers,
concessions in terms of money and rates .Sundaram Finance gives at lower rate
between 12 to 15 & whereas other players like TVS credit, HDFC Bank give
around 17 to 20%. Average tenure of repayment in Sundaram finance hovers
around 4 to 5 years whereas other players have around 2.5 to 3 years.
RIVALRY (High):
In the traditional economics, competition among the rivalry firms drives the
profits too zero. But competition is not perfect and firms are not unsophisticated
passive price takers. The intensity of rivalry among the firms across industries,
and strategic analysis are interested in these differences.
Competitors like TVS Credit, HDFC Bank, ICICI Bank, Fullerton Credit, SBI,
Tata Capital, Mahindra Finance
POWERS OF BUYERS (HIGH):
The power of the buyers is the impact that customers has on a producing industry
is near to what an economist terms a monophony- a market in which there are
many suppliers and one buyer.
Bargaining leverage
Buyer volume
Buyer information
Brand identity
Price sensitivity
Threat of backward integration
Product differentiation
Buyer concentration vs. industry
Substitutes available
Buyers incentives
The domestic suppliers have a lower bargaining power when compared to the
international suppliers. Since there are number of options available for the
company at the domestic level
The customers have a slightly better bargaining power since there are only a
handful of established companies to choose from. Since there a lot of domestic
competition, banks coming up the bargaining power of the customers is likely to
increase.
SWOT
SWOT analysis of SUNDARAM FINANCE LTD
Strength
skilled workforce
high profitability and revenue
barriers of market entry
monetary assistance provided
existing distribution and sales networks
experienced business units
Access to comparable industries is possible.
The industry shows a strong relationship with suppliers and partners.
The industry has unique products.
Weakness
Opportunities
The market changes fast.
New technologies are available at reasonable costs.
New acquisitions
Growing demand
Growth rates and profitability
New markets
Threats
Area of work
During the internship period in an organization as an intern at sundaram
finance. I was given an opportunity to observe and learn the job functions of the
financial Services. Where I had a chance to learn some important aspects of
their work. It paved way to know about the processes that are carried out in the
financial sector.
In this intern program I was asked to learn the job functions of all the working
staffs. I was guided to enter the details of customer, checking out the forms and
merging the details of the customer id in deposit section in sundaram finance
I was asked check customer details and handled customer quires. I learnt to
handle customers with lot of patience. I learnt to communicate empathetically.
I have asked to cheek the details of customer and make sure for the next process
of scanning
I have asked to renewal the old forms and enter the new forms for the customers
I have learned to renew the form that attained the maturity period of a form
I have learned to enter all the details of customer in excel sheet that is needed to
process a form in the sundaram finance
Conclusion
Basically this internship taught me lot of things about deposits, I experienced the
overall process of deposits like fresh deposits, renewal, renewal
addition/consolidation, part payment, interim interest, maturity payment, Pre
mature payment etc…
From the analysis, it was found that current assets and liabilities are in an ideal
ratio during 2015. Sales have also increased over the years with increase in total
assets. Shares of the company are also increasing over the years, this shows the
profitability status of the company is also increasing.
Based on the analysis it was found that the cash position of the company should
be increased in order to have better liquid position.
I really appreciate the way I have been guided through this internship programme
with SUNDARAM FINANCE PVT LTD beginning from the opportunity to take
the time I needed to refresh and expand my knowledge in several areas
concerning to deposits.
Internship is a great platform for students to understand and adapt to different
work experiences.
This was an excellent experience and I hope that the experience gained from this
internship will help me to become familiar with the ever evolving working
condition. This internship gained me the practical experience about a corporate
culture.