INTERNSHIP REPORT

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

This to certify that the internship in “SUNDARAM FINANCEPvt.Ltd”, is

a bonafide record of work carried out by B.SRINITHI, (Roll
No.17E4234)during Dec 2017 – Jan 2018 in partial fulfillment of the
requirement for the award of the degree Master of Business
Administration by University of Madras during the Academic Year 2017 –
2019.

FACULTY GUIDE

Dr.Kolamal

D.G. Vaishnav College

 ACKNOWLEDGEMENT

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.

I would like to extend, my thanks to the deposit Manager of sundaram finance,

mount road branch Mr P.T.Vijayashankar for his patience and time to provide
me with valuable inputs and guiding me during my term as an intern in the
organization

I would like to thank Dr.kolamal faculty guide of D.G .VAISHNAV SCHOOL

OF MANAGEMENT for the guidance and motivation that she has provided,
which has enabled me to complete my internship without any hurdles.

Finally I would express my gratitude to our Head of the Department

Dr.U.AMALESHWARI and all other faculty members of D.G .VAISHNAV
SCHOOL OF MANAGEMENT who have been helpful for completing this
internship and internship report successfully.
 DECLARATION

I B.Srinithi hereby declare that the internship work done in “SUNDARAM

FINANCE Pvt.Ltd – MOUNTROAD ” submitted by me for the requirement of
the Degree Maters of Business Administration in the University of Madras, has
been carried under the guidance of, P.T.Vijayashankar faculty guide, School of
Management, D.G. VAISHNAV P.T. COLLEGE, Arumbakkam, Chennai.

STATION: CHENNAI STUDENT’S NAME: B.SRINITHI

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

1.1 INDUSTRIAL PROFILE

1.2 COMPANYPROFILE

CHAPTER 2 STRUCTURE OF THE

ORGANIZATION

2.1 ORGANISATIONAL
STRUCTURE

2.2 ORGANISATIONAL
CHART

2.3 DUTIES &

RESPONSBILITY OF
DEPARTMENT HEAD

FUNCTIONAL
CHAPTER 3 DEPARTMENTS

3.1 FINANCE DEPARTMENT

3.2 HUMAN RESOURCE
DEPARTMENT

PORTER’S FIVE FORCES

4 MODEL

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.

At the beginning of the internship I formulated several learning goals, which I

wanted to achieve

 To understand the functioning and working condition of a manufacturing

company
 To see what is like to work in a professional environment
 To get experience in working in another with persons from another
culture
 To enhance my communication skill
 To build a network

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

SUNDARAM FINANCE Ltd is a non-banking financial company that has

grown over the past decades on the foundations of dedicated customer service,
fair business practices, efficient, safe and trusted financial policies. Sundaram
Finance was listed in Dun & Bradstreet's India's Top 500 companies for 2014.
My internship at was one of the most informative and experience I have gained
so far in my academics.

I did my internship in deposits department, I learnt about the deposits schemes

offered by the company and process for the various activities in deposits. It was
a good experience to gain knowledge as well as to enjoy the company’s
hospitality during internship.
In this internship period, I learnt about the process of fresh forms, renewal,
renewal consolidation, part payment, matured payment, intern interest, pre-
mature payment and renewal addition.

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

Founder : T.V. SundaramIyengar& Sons

Founded in the year: 1954

Corporate Address : No 21, patullos road, mount road

Chennai-600002, Tamil Nadu

WWW.sundaramfinance.in

Business operations : finance

Market cap : 205.87B

Company Secretary : Sri P Viswanathan

Management details : Chairman - Sri S Viji

Managing director - Sri T TSrinivasaraghavan

Directors –S. Ram, P.N.Venkataramani,

P.N.Venkatachalam, S. Mahalingam, S. Prasad, S. Ravindran, Ms
ShobhanaRamachandhran, Rajiv C. Lochan

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.

Today, Sundaram Finance has a nationwide network supported by a dedicated

team of service oriented personnel, who ensure personalized customer service.
Sundaram Finance remains true to its core values of prudence, fairness,
transparency and service excellence which have enabled it to emerge as a leader
in its chosen field.

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.

Range of financial services and subsidiaries

From being the leader in hire-purchase, Sundaram Finance has
spread its activities over a range of financial services encompassing Commercial
Vehicle Finance, Car Finance, Farm Equipment Finance, Construction
Equipment Finance, Tyre Finance, and Fleet Cards.

Through its subsidiaries Sundaram Finance has a diversified presence in General

Insurance, Mutual Funds, Housing Finance, Business Process Outsourcing,
Information Technology Services and Retail Distribution of a wide array of
Financial Services and Products. Its partnerships with Royal & Sun Alliance, UK
for General Insurance and BNP Paribas of France for housing finance and Fund
Services has brought together global expertise and technology with local
expertise and knowledge.

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.

Prudence & Vision

Sundaram Finance achieved its leadership position by a unique
combination of traditional conservatism and judicious dynamism. The values
envisioned and inculcated by Shri T.S.Santhanam have endured and inspired the
professional workforce at Sundaram Finance to a very high degree of
commitment and dedication. The prudent practices followed by the Company
such as strong credit appraisal skills, effective receivables management, well
defined documentation and procedures have become industry benchmarks.

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

Be it lenders, depositors, shareholders, customers or employees,

Sundaram Finance has always enjoyed an excellent relationship with all its
stakeholders. In fact, the Company owes its impressive track record to these long
standing relationships. Today, Sundaram Finance has come a long way from its
position of being the leading Hire-purchase Finance Company to become the
leader in its chosen field.

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

Sundaram finance company history The Company was incorporated in

1954, with the object of financing the purchase of commercial vehicles and
passenger cars.

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

A Non-Banking Financial Company (NBFC) is a company registered under the

Companies Act, 1956 engaged in the business of loans and advances, acquisition
of shares/stocks/bonds/debentures/securities issued by Government or local
authority or other marketable securities of a like nature, leasing, hire-purchase,
insurance business, chit business but does not include any institution whose
principal business is that of agriculture activity, industrial activity, purchase or
sale of any goods (other than securities) or providing any services and
sale/purchase/construction of immovable property. A non-banking institution
which is a company and has principal business of receiving deposits under any
scheme or arrangement in one lump sum or in installments by way of
contributions or in any other manner, is also a non-banking financial company
(Residuary non-banking company).

NBFCs and Banks Differentiation

• An NBFC cannot accept demand deposits

• It is not a part of the payment and settlement system and as such cannot
issue cheques to its customers

• Deposit insurance facility of DICGC is not available for NBFC depositors

unlike in case of banks

Importance

Non banking financial institutions have the following importance in Indian

economy.

 Greater reach.

 Flexibility in tapping resources.

 Retail services to small and medium business.

 Important component of financial market.

Role of NBFCs

 Development of sectors like Transport & Infrastructure

  Substantial employment generation

 Help & increase wealth creation

 Broad base economic development

 To finance economically weaker sections

Functions

 Brokers of loanable funds.

 Mobilization of savings.

 Channelization of funds into investment,

 Stabilize the capital market,

 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.

Deposit high lights

 Over 1.72 lakh Depositors

 Total deposits aggregating over Rs.2246.27 Cr.(Rs. 22.46 Billion).

 Renewal rate for deposits is more than 80%.

 Our Deposit schemes are rated MAAA/Stable by ICRA.

 'State-of-the-Art' Information Technology

Fixed deposit

It is a deposit where the Interest is being paid at Monthly/Quarterly

intervals.

Frequency of Interest Payable

Interest payment Date
Monthly Quarterly

Last day of every month Every Month * March, June, Sep, Dec

* Monthly interest payment option available for all terms.

Method of interest credit

 Interest payments through RBI Electronic Clearing

Service/EFT/NEFT/NECS
 Interest payment by way of at par cheques.

Cumulative deposit

It is a deposit where the accrued interest is payable on Maturity along

with the principal.

Maturity options available

On maturity the depositor can opt for:

 Payment of maturity amount.

 Renewal of maturity amount.

 Renewal for lower multiple of Rs 1000/- (subject to a minimum balance

of Rs 10000/- in the deposit account).

 Renewal for a higher multiple of Rs 1000/- by giving a cheque for the

differential amount. (Remittance should reach the company atleast one
day before the date of maturity).

NRI Deposit

ACCEPTANCE OF DEPOSITS FROM NON-RESIDENT INDIANS (NRI)

We accept deposits from NRIs on a non-repatriable basis.

The terms and conditions governing the NRI deposits are given hereunder:

1. Acceptance of deposits can be made only by Indian Rupees through NRO

Account payable at Chennai.

a. NRI Deposits shall be accepted only through payments made

from the depositors NRO A/c in India. NRI Deposits with funds
transferred from NRE or FCNR(B) A/cs will not be accepted.

b. NRI Deposits shall not be accepted by any inward remittances

from overseas.

c. The NRI Depositor has to give the following declaration:

The amount deposited with Sundaram Finance Limited
 represents amounts transferred from NRO Account. Further this
amount does not represent inward remittance from Overseas to
NRO account or transfer of funds from NRE/FCNR(B) accounts
to NRO account.".

2. The depositor has to give an undertaking as given in the Appendix -1.

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.

5. The procedure for submitting the self-declaration form for non-deduction

of tax is not applicable to NRI deposits. In case the depositor is not
assessable to income tax in India, an exemption certificate to that effect
can be produced to us from any of the decentralised Income Tax Offices
at Chennai, Bangalore, Kolkata, Hyderabad, New Delhi or from the
I.T.O. (N R I Circle), New Marine Lines, Mumbai 400 026 so that no
income tax is deductible at source.

6. In case, the depositor is a resident of the country covered under the

Double Tax Avoidance Agreement(DTAA), we may deduct tax at the
rate prescribed in the DTAA for the country in which the depositor is
residing. In order to deduct tax at source at the rate prescribed in the
DTAA, the depositor should sign and send us the DTAA form given in
Appendix -2 along with form 10F duly attested by concerned
Consulate/Embassy/Income Tax Authorities of the country the NRI
Depositor lives in.

7. The depositors are requested to furnish details of their Indian and

overseas address.
 8. No loan against NRI Deposits will be allowed.

Interest rate

Fixed Deposits

Term (months) Monthly % p.a. Quarterly % p.a.

12 6.96% 7.00%

18 6.96% 7.00%

24 7.21% 7.25%

36 7.21% 7.25%

Cumulative Deposits

Maturity Value for

Term Rate (p.a at Effective Yield
Rs.10,000 Rs.1,000
(months) Quarterly rests) % p.a.
/- /-

12 7.00% Rs.10,720/- Rs.1,072/- 7.20%

 18 7.00% Rs.11,100/- Rs.1,110/- 7.33%

24 7.25% Rs.11,550/- Rs.1,155/- 7.75%

36 7.25% Rs.12,410/- Rs.1,241/- 8.03%

* Minimum Deposit Rs.10,000/- per account

* Interest rates on existing deposits remain unchanged till maturity.

On maturity

Maturity Intimation letter is being sent 15 days in advance of the maturity

date.

Renewal of Deposits

The depositor has to surrender the Original Deposit Receipt

duly signed along with the renewal form. Deposit can be renewed from the date
of maturity only if renewal instructions are received within 2 months from the
date of maturity. Otherwise the same will be renewed prospectively. Renewal
with loan is not possible.

Maturity Payment

In case of repayment, the depositor has to sign on the reverse

of TDR affixing a Revenue stamp with Instructions for repayment along with a
copy of cheque leaf consisting of Bank Account details.
 Discharge of deposit receipt

Anyone or Survivor A or Number One or

Scenario
S Survivor N or S

Regular payment on Anyone of the depositors First depositor alone can

maturity can sign sign1

Premature Payments Withdrawal

The company reserves the right to allow, at its

absolute discretion, withdrawal of deposit before maturity. Where a deposit is so
allowed to be prematurely withdrawn the relative deposit receipt must be
discharged by all the depositors in case of A or S/s deposit and by the first named
depositor in case of N or S/s deposit.

As per the Directions of RBI currently in force:

Before 3 months from the

date of No repayment (Not applicable in case of premature
deposit/renewal(Lock-in- repayment in the event of death of the depositor**)
period)
After 3 months but before
No Interest*
6 months

The interest payable shall be 2 percent lower than

the interest rate applicable to a depositor for the
After 6 months but before period for which the deposit has run or if no rate has
the date of maturity been specified for that period, then 3 percent lower
than the minimum rate at which deposits are
accepted by the company*

* Premature payment can be made without interest in the case of death of a

depositor.

* The above Rates are also applicable for Prematurity payment(PMP) in the case
of a death of depositor.

Loan on Deposits

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

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.

 Most Valued Customer Award” to Shri T S Santhanam Chairman, from the

State Bank of India.

 Sarige Ratna Award” to Shri T S Santhanam, Chairman, from the Bangalore

City Lorry Transporting Agents’ Association (Regd).

 Pioneering Service Award” to Shri T S Santhanam Chairman, from Chennai

Good Transport Association.

 Automan Award” to Shri T S Santhanam, Chairman, from Motor India in

1998.

 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.

 Certificate of Commendation” award by the Government of India under the

scheme of “Good Tax Payers”.
 Duties and responsibility of department

Fresh form processing

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.

In renewal, I learnt about renewal, renewal addition, consolidation and part

renewal. The normal renewal process is we check in for date of renewal, if the
dates are not applicable as per the software it is kept for future renewal, if it is on
date all the scanned details that are mandatory are checked and renewals are done.
Each transaction requires the submission of form 15G/H for non-deduction of
TDS. As Per the norms of sundaram finance, all deposits will be accepted/
renewed in multiples of 1000.

Renewal addition/consolidation is a process were customer gives cheque for

addition to be made with the existing deposit.
Part renewal is one in which a part of the amount is credited to the customer’s
bank account by NEFT and the remaining is renewed.

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).

PMT (Premature payment)

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**)

After 3 months but before 6 months No Interest*

The interest payable shall be 2

percent lower than the interest rate
applicable to a depositor for the
period for which the deposit has run
After 6 months but before the date of maturity
or if no rate has been specified for
that period, then 3 percent lower than
the minimum rate at which deposits
are accepted by the company*

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:

Bookkeeping and Payables/Receivables

Bookkeeping is the most basic financial activity in a company. Before a

business owner ever considers hiring a CFO, they bring in a bookkeeper, who
tracks all of the transactions in the organization, covering both sales and
expenses. As the organization grows, they might hire more specialized payables
and receivables clerks, to take over functions such as corresponding with
vendors and suppliers, above and beyond recording transactions.

Financial Reporting and Control

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.

Tax and Compliance

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.

Strategic Planning and Financial Planning & Analysis

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.

Treasury & Working Capital Management

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

Capital Budgeting is the function responsible for selecting between the

various uses of capital, or capital projects. After all, most organizations will
have money available to invest in the business, with the hopes of either growing
sales or reducing expenses. But the opportunities for spending typically exceed
the amount available to spend, so Capital Budgeting develops business cases to
evaluate and identify the most effective projects. A strong Capital Budgeting
function will not only forecast project benefits, but will also track these benefits
over time to determine whether the use of capital was as effective as originally
anticipated.

Risk Management

Risk Management is a function that is rapidly developing after the

financial scandals of the early 2000s (Enron, WorldCom, the Great Recession
and Lehman/Bear Stearns collapse, etc.). In the financial services industry, the
function is particularly central as most institutions run with a high amount of
debt (leverage), though leaders in other industries are also bulking up this
function. Risk Management takes a hard look at some of the key risks faced by
the company—currency, interest rate, market, operational, legal, etc.—and tries
to quantify the possible impacts so that they can be mitigated as much as
possible. If FP&A looks at the base case scenario for the company’s financial
results, Risk Management takes a wrecking ball to it.

Corporate Development & Corporate Strategy

Corporate Development and Corporate Strategy can be widely defined,

but it is the area of Finance most heavily populated by former investment
bankers and management consultants. As such, common tasks that fall to this
function include sourcing and analyzing mergers & acquisitions deals, raising
debt and equity financing, making capital structure decisions and providing
insight into high level strategic decisions such as entering a new market.

HUMAN RESOURCE DEPARTMENT:

RECRUITMENT:

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

Attracting talent starts with first planning the requirement of manpower in

the organization. Gauging needs of the organization’s human resource
requirements, and accordingly putting a plan of action to fulfill those needs with
placement of “talented professionals”. That’s followed by creating an “employer
brand” which will be representative of the organization’s good image and portray
an attractive impression in the minds of potential candidates.
The employer branding aspects have become very important owing to the new-
age media and awareness of employee rights. Putting the best foot forward is no
longer enough, it needs to be followed through with honest actions in favor of the
employees. And finally the HR manager needs to them create detailed recruitment
strategies carry out the hiring process.
2) Hire Resources

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

Closely related to training, developing our employees professionally is an

added bonus for the employee as well as the organization. Enrolling the employee
to attend conferences, trade shows, seminars etc that may be in his personal
interest will make the employee feel cared-for and a vital part of the organization,
thus increasing employee engagement. It will be beneficial to the organization by
way of the employee’s added skill set.

In short, it is a win-win. It is the HR head’s job to get to know the employee’s

hobbies and areas of interest and look out for opportunities that will help them
build onto those hobbies.

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.

The role of HR (especially the HR manager) in this would be to have a policy of

generating timely appraisal reports and a review of the same by the authorities.
The HR team should communicate individually with employees and give a clear
feedback or suggestion on their performance. A system to reward employees
excelling at their work would help in employee motivation and thus garner a
higher degree of productivity and employee engagement.
Maintaining Work Culture

It is the duty of the HR to maintain a healthy, safe, and fun work

environment to ensure a level of comfort amongst the employees and eliminate
any stressful or awkward atmosphere that may hinder the performance of the
staff. It is vital to have an efficient work atmosphere, because an individual’s
performance a largely dependent on the surrounding he’s working in.

It would be great to have an open-door policy up to some extent

wherein employees can freely communicate and voice their opinions to be given
consideration. The HR department’s role is to be a friendly body with an open
attitude. By communicating and treating every employee as equal, the HR can
build a rapport with the employees. This goes a long way in increasing employee
engagement and gives a higher job satisfaction.
Resolving Conflicts

Where different people have different views, conflicts are almost

inevitable. Whether the dispute is amongst two or more employees or between
the employee and the management, an HR manager has the right to intervene and
help map out a solution.

The HR should be available at the disposal of the conflicting parties and

hear out their issues without being judgmental. Prior investigations are a must
before passing any judgment. The HR head is not expected to discriminate or play
favorites in this matter and always deliver an unbiased and practical decision. A
reimbursement in case of any loss caused and strict actions against the defaulter
should be practiced for effective conflict resolution by the HRM.
Employee Relations

The Human Resources is called so because its major responsibility is

dealing with the human part of the organization and this involves having great
interpersonal skills. An HR manager who sits in the office all day will not turn
out to be good at building connections with the employees and thus fail to serve
the purpose of being an HR head. As an HR person, employees should feel
comfortable coming up to you with their problems and for that, it is important
that the HR team builds a good public image within the organization.

The HR team has to be proactive and know their employees. An HR personnel’s

job is not a desk job altogether. The HR head’s role is to establish the trust and
confidence of the employees and not have a “don’t mess with me” demeanour.
He should be looked upon as both an HR expert and an employee advocate.

Rewards and Incentives

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.

However, with globalization and evolving trends, compensations like

holiday packages, pay incentive, bonuses, and promotion are taking a backseat.
If as an HR manager you are wanting to reward your employees efficiently, it’s
time you adapt new ways of awarding benefits such as flexible work times,
paternity leave, extended holidays, telecommuting etc. These non-traditional
rewards will prove fruitful not only in engaging existing workforce but also as an
added benefit to attract new talent to your organization.

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

An HR head is responsible for organizing all functions of the organization.

To start with, it includes employee on-boarding, i.e. welcoming new employees.
It is a must for every HR head to carry out an induction for every new hire, and
give them an orientation regarding the company policies and rules.

The HR personnel should also introduce the new employees to their

colleagues and assign them a mentor. It also involves listing out job expectations
and defining roles and responsibilities, thus getting the new employees in tune
with the working of the organization. The HR personnel are also responsible for
organizing and storing all employee data efficiently and keeping it secure.

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.

The role of an HR manager is to manage, create, implement and supervise

policies/regulations, which are mandatory for every employee and also have
knowledge of its appropriate functioning. Monitoring attendance and tracking
leaves forms a major chunk of the HR management function. There should be a
proper management of the clock-in/out time to avoid late arrivals and track
overtimes and half-days. As mentioned before, the HR as a department should
also be well managed by the HR head. If the HR department itself is in a state of
chaos, it cannot serve as a peacemaker for the other departments.

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

Porters five force model

 Threat of
New
Entrants

Rivalry
Bargaining Bargaining
Power of
Among
Power of
Suppilers Existing Buyers
Competitors

Threat of
Subtitute
products
or Services

Porters five force analysis is a framework to analyze the level of competition

within an industry. It draws upon industrial organization economics to derive five
forces that determine the competitive intensity and overall profitability in the
industry.

THREAT OF NEW ENTRANTS (Relatively Low):

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

BARGAINING POWER OF SUPPLIERS (LOW):

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

BARGAINING POWER OF CUSTOMERS (LOW):

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

 There is a competitive market.

 The structure of business units could be critical.

Opportunities
  The market changes fast.
 New technologies are available at reasonable costs.
 New acquisitions
 Growing demand
 Growth rates and profitability
 New markets

Threats

 Rising cost of raw materials

 The industry sees new market entrants.
 Price changes are possible
 New products and technologies change demand
 External business risks

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 fill and process the fresh form

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

Computer literacy is the ability to use computers and related technology

efficiently. I was thought to use sundaram’s deposits software for entering data
and checking of interest rates etc.
Other skills learned

 Being a keen observer

 Self-Starter
 Being good at communication
 Being appropriate
 Patience towards customers
 Being updated
 Stepping out of my comfort zon

Conclusion

The SUNDARAM FINANCE PVT LTD is one of the leading Non-banking

financial company in India. The company deals in various types of financing like
Home finance, Commercial vehicle finance, Tractor finance, Tyre finance, Car
finance, Insurance, Mutual funds etc., SUNDARAM FINANCE PVT limited has
overcome number of risk to reach where it stands today. I thank my guides by
Mr.Swaminathan, senior manager deposits and Mr.P.T.Vijayashankar, manager
customer relations throughout the successful completion of my internship. On the
first day, to build familiarity with the department and the activities done, I was
asked to familiarize with the details given in the application for deposits. I was
asked to note the documents needed and was instructed to fill forms that lagged
few details based on query search using sundaram deposits software.

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…

I also had an experience to do financial ratio analysis based on 3 years balance

sheet.

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.