ABOUT SUNDARAM FINANCE Ltd.

Sundaram Finance( SF ) is a leading Non Banking Finance Company ( NBFC ) in India 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.

The prudent practices followed by the Company such as strong credit appraisal skills. Leasing Sundaram Finance diversified into leasing in 1981.Santhanam have endured and inspired the professional workforce at Sundaram Finance to a very high degree of commitment and dedication. cost-effective and tailor-made leases. Sundaram Finance. It set industry standards by computerising and networking all its offices through a variety of communication media including VSAT installations. The values envisioned and inculcated by Shri T. Pioneering the growth of leasing with its flexible. many of the depositors have a relationship with the company which spreads over three generations and view Sundaram Finance as synonymous with safety. Sundaram Finance has a diversified portfolio ranging from computers to aircraft. These ensure efficient and smooth functioning of all its systems and procedures resulting in better customer service. Every employee at Sundaram Finance is proud to represent an institution that values professional integrity. The Company conducts regular in-house training programmes that help motivate employees and improve leadership and managerial abilities. Car Finance Economic liberalization saw the entry of many foreign car manufacturers in the country. At Sundaram Finance. . Sundaram Finance has attained a position of strength in its area. Sundaram Finance launched Sundaram Car Finance exclusively to finance cars and utility vehicles.Integrity From being the leader in hire-purchase. today counts among its clientele some of the most reputed blue chip companies. Supported by a large countrywide network. Realising the high growth potential of the car market. when leasing was still in its conceptual stages in the country.S. In fact. Sundaram Finance not only invests in its people but also in the latest advanced state-of-the-art technology. effective receivables management. servicing a very large customer base. Prudence & Vision Sundaram Finance achieved its leadership position by a unique combination of traditional conservatism and judicious dynamism. strong dealer relationship and its customised service. The company has been rated MAAA by ICRA signifying highest safety. well defined documentation and procedures have become industry benchmarks. Deposits Sundaram Finance offers attractive schemes to all its depositors. above all else. security and service. people are its most valuable assets. Sundaram Finance has spread its activities and today its range of financial services encompasses Leasing and Car Finance. Sundaram Finance also offers Home Finance and Asset Management through its subsidiaries.

Sundaram Finance has always enjoyed an excellent relationship with all its stakeholders. Shanthi Colony 4th Avenue. Endowed with a large corpus Fund. exemplifies the commitment of Sundaram Finance Group to the community and its citizens. Tirumangalam. 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. Main Building Sundaram Medical Foundation. service courteousness and compassion. Dedicated to setting new standards in quality healthcare to the community in a cost-effective manner without compromising on patient care. shareholders. Rangarajan Memorial Hospital is a hospital under SMF. Institutional Trust. medical competence. 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. It became a public limited company in 1961 and went public in 1972. depositors. Chennai 600 040. Anna Nagar. Committed to Society Sundaram Medical Foundation (SMF). In fact. Investor Steadfastness & Employee loyalty are the five pillars to support the strong edifice of the company. Chennai 600 040. cars and machinery. The main business of the company includes hire purchase and lease financing of commercial vehicles. Ph: 044 2626 8844 Annex Sundaram Medical Foundation. 783/784. Dr. Anna Nagar. The Company was incorporated in 1954. SFL achieved its leadership position by a unique combination of traditional conservatism and judicious dynamism. Faith. Ph: 044 2622 0103 / 2622 0104 / 2622 0105 / 2622 0106 HISTORY: Sundaram Finance (SFL) was promoted by Madras Motor Insurance Company. where caring is not a sub-speciality in medicine. Today. the hospital is today. 17th Main Road. .Secure Future Be it lenders. a part of the reputed TVS Group. It also undertakes short-term activities such as bill discounting and commercial mortgage lending. the Company owes its impressive track record to these long standing relationships. a non-profit Trust set up in 1990. Depositor Confidence. customers or employees.

In housing loan sector it promoted Sundaram Home Finance Limited with equity participation from International Finance Corporation (IFC).p. Further during the year it promoted Fiat Sundaram Auto Finance Limited. Patullos Road City:Chennai (Madras) State:Tamil Nadu Pincode:600002 Email ID:investorservices@sundaramfinance. UK. in collaboration with Newton Management. According to the scheme of merger the company has issued 3775965 equity shares of Rs. The subsidiaries of the company are Sundaram Home Finance Ltd. Consequent to this merger the company`s paid up capital increased to Rs.. Sundaram Finance Services (SFSL) was amalgamated with the company. Ltd. The Company has merged Lakshmi General Finance Ltd (LGF) with itself with effect from 1st April 2004.10/.sundaramfinance. The company paid a total consideration of Rs 20. motor. Vth Floor. "Subramanian Building". It formed an asset management company called Sundaram Newton Asset Management Company Pvt. personal accident.0 ISIN: INE660A01013 Market Lot: 1 Registered Address Registrar Cameo Corporate Services Ltd. Balika Finance Company (BFC) & Paramjyothi Finance Company (PFC) were amalgamated with the company. Sundaram Asset Management Company Ltd.27. Also with the opening up of the insurance sector the company along with Royal & Sun Alliance Insurance plc formed a joint venture company named Royal Sundaram Alliance Insurance Company (RSAIC) for non-life insurance business.It set industry standards by computerising and networking all its offices through a variety of communication media including VSAT installations. the company entered in to various collaboration and joint ventures. These ensure efficient and smooth functioning of all its systems and procedures resulting in better customer service. During 2000-2001. a joint venture with Fidis S. home. Sundaram Finance Distribution Ltd. Washington..78 crores.) became a wholly-owned subsidiary of your company. 21. The company allotted bonus shares in the ratio of 1:1 in Nov.each to the shareholders of LGF in the ratio of 1:1. Italy for financing Fiat cars.in Web Url:http://www. No. and FMO (Netherlands Development Finance Company).52. Club House Road City:Chennai (Madras) State:Tamil Nadu Pincode:600002 Auditor: Brahmayya & Co.10 crore for the acquisition of shares of the amalgamating companies. COMPANY BACKGROUND: Industry Name: Finance & Investments House Name: TVS Group Face Value: 10. 1995.in . During 1999-2000. It commenced its operation in March 2001 and offers full range of insurance products including fire. LGF Services Pvt Ltd and Sundaram Finance Trustee Company Ltd. health.1. Aparajita Finance Company (APC). Subsequently Sundaram Finance Securities (SFSec.A. travel and rural insurance. As part of diversification and to provided more financial service to the customers. Royal Sundaram Alliance Insurance Company Ltd. India Equipment Leasing (IEL).

which was incorporated in 1954 with the object of financing the purchase of commercial vehicles and passenger cars. Asset Management. Infotech Solutions. . Insurance. Home Loans. Equipment Finance. Fleet Card. Car Finance.000 commercial vehicle and car finance customers. Sundaram Finance has a Nation-wide presence with 561 branches. over 2 lakh depositors and nearly 100. Today.Sundaram Finance Limited. has grown today into one of the most trusted financial services groups in India. Tyre Finance and Logistics Services. the activities of the Sundaram Finance Group span Commercial Vehicle Finance. Business Process Outsourcing.

In "advance" factoring. that is.PRODUCT or SEVICES OFFERED BY INDUSTRY 1) FACTORING: Factoring is a financial transaction whereby a business sells its accounts receivable (i. periodic. Factoring differs from a bank loan in several ways. whereas a bank focuses more on the value of the borrower's total assets. and often also considers. a nonrecourse factor assumes the "credit risk” that a purchased account will not collect due solely to the financial inability of account debtor to pay. in most cases a court will recharacterize the transaction as a secured loan. and real property. in underwriting the loan. The lessee is the receiver of the services or the assets under the lease contract and the lessor is the owner of the assets. net of the factor's discount fee (commission) and other charges." often 80% of the purchase price of the accounts. upon collection from the account client. Secondly. the value attributable to non-accounts collateral owned by the borrower. invoices) to a third party (called a factor) at a discount. equipment. the factor makes no advance on the purchased accounts. rather. if the factor does not assume credit risk on the purchased accounts. the factor provides financing to the seller of the accounts in the form of a cash "advance. In "maturity" factoring. Such collateral includes inventory. and can be for a fixed or an indefinite period of time (called the term of the lease). factoring is not a loan – it is the purchase of a financial asset (the receivable). 2) LEASING: Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual. the purchase price is paid on or about the average maturity date of the accounts being purchased in the batch.e. . with the balance of the purchase price being paid. a bank loan issuer looks beyond the credit-worthiness of the firm's accounts receivables and of the account debtors (obligors) thereon. tax deductible payments. The emphasis is on the value of the receivables (essentially a financial asset). Third. In the United States. The consideration for the lease is called rent. The relationship between the tenant and the landlord is called a tenancy..

Therefore. high risk. The forfiater may also be immunized from certain risks if the transaction involves payment by negotiable instrument. A merchant bank also provides advisory on corporate matters to the firms they lend to. The forfiating is a transaction involving the sale of one of the firm's transactions. Venture capital is a subset of private equity. which usually have a novel technology or business model in high technology industries. 3) FORFIATING: Forfiating is a financial transaction involving the purchase of receivables from exporters by a forfiater." Both commercial banks and investment banks may engage in merchant banking activities. The venture capital fund makes money by owning equity in the companies it invests in. 5) VENTURE CAPITAL: Venture capital (VC) is financial capital provided to early-stage. The forfiater takes on all the risks associated with the receivables but earns a margin.S. etc. the term "merchant bank" refers to an investment bank. . but not all private equity is venture capital. "the term merchant banking is generally understood to mean negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. high-potential. according to the U. In the United Kingdom. hence the name "merchant". Today. such as biotechnology. Historically. all venture capital is private equity.A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership from lawnmowers and washing machines to handbags and jewelry. merchant banks' original purpose was to facilitate and/or finance production and trade of commodities. IT. 4) MERCHANT BANKING: A merchant bank is a financial institution which provides capital to companies in the form of share ownership instead of loans. growth startup companies. software. Federal Deposit Insurance Corporation (FDIC).

New Zealand. Certainly Yes . China. . one of the ways to overcome the situation is securitization. Thus. It was developed in the United Kingdom and can now be in Australia. When a sum equal to the original full price plus interest has been paid in equal installments. the buyer may then exercise an option to buy the goods at a predetermined price or return the goods to the owner. 7) HIRE PURCHASE: Hire purchase is the legal term for a contract.Venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. it cannot do unlimited and continuous business. 6) SECURITIZATION: Securitization is a process where NBFC is engaged in hire purchase or installment sale or mortgage business would have many customers who owe them a stream of monthly payments. Malaysia. It is also called closed-end leasing. Would there be a point when NBFC’s investible funds are fully invested and it has no further funds to invest. In cases where a buyer cannot afford to pay the asked price for an item of property as a lump sum but can afford to pay a percentage as a deposit. Thus. a hire-purchase contract allows the buyer to hire the goods for a monthly rent. especially a business (company) or a government. these companies source funds at some rate of interest. All money business is based on two things: Risk & Interest. These NBFC’s expertise is to scrutinize the creditworthiness of its prospective hirers/customer and invest funds in them. Thus. NBFC invest its funds in assets and would charge in built interest rate to its hirers. unless these NBFC’s have continuous source of funds. India. 8) CREDIT RATING: A credit rating evaluates the credit worthiness of a debtor. It is an evaluation made by a credit rating agency of the debtor's ability to pay back the debt. in which persons usually agree to pay for goods in parts or a percentage at a time. Japan. Jamaica. load this rate of interest for their efforts and risk and pass it on to its customers. and South Africa.

Credit ratings are not based on mathematical formulas. Purchases and sales of securities on the demat account are automatically made once transactions are confirmed and completed. 9) DEMAT: In a demat account. The credit rating is used by individuals and entities that purchase the bonds issued by companies and governments to determine the likelihood that the government will pay its bond obligations. A demat account is opened by the investor while registering with an investment broker (or sub-broker). shares and securities are held electronically instead of the investor taking physical possession of certificates.Credit ratings are determined by credit ratings agencies. The credit rating represents the credit rating agency's evaluation of qualitative and quantitative information for a company or government. including non-public information obtained by the credit rating agencies analysts. Access to the demat account requires an internet password and a transaction password. A poor credit rating indicates a credit rating agency's opinion that the company or government has a high risk of defaulting. . based on the agency's analysis of the entity's history and analysis of long term economic prospects. The demat account number is quoted for all transactions to enable electronic settlements of trades to take place. credit rating agencies use their judgment and experience in determining what public and private information should be considered in giving a rating to a particular company or government. Transfers or purchases of securities can then be initiated. Instead.

They also act as a guide for the company and the investor. They are involved in transfer of shares. It also acts as intermediary for IPO. They help in conversion of physical shares e-form. It also helps in immobilization of physical shares into mobilization in e-form. They are responsible for keeping track of all transactions. They act as intermediary to do registration of shares. It assists in investor related issues. It assists in development of primary and secondary market. . 11) REGISTRAR & SHARE TRANSFER AGENT: Registrar & Share Transfer Agent acts as mediator to transfer the share from one investor to another.10) DEPOSITORIES: Depositories act as intermediary between issuing company and investors. They act as underwriter to issue. They manage the securities account of investors. Depositories also ensure fungibility of shares.

Products / Services Offered By The company:                    Deposits Car Finance Commercial Vehicle Finance Tyre Finance Tractor Finance Fleet Card .

DEPOSITS: The following is the rate of interest offered on deposits held with Sundaram Finance Ltd. .

Their car finance schemes are easy to understand and without any hidden costs . The approval is fast and with minimum documentation. They extend finance on all makes and models of cars. In fact customers can drive away with their dream car in 48 hours flat.CAR FINANCE: Sundaram Finance is one of the largest and a leading player in the area of car finance.The vast network of 561 branches and experienced field force help customers choose the vehicles and the finance package to suit their budget.

SFL also offer special schemes. SFL has a vast network of 561 branches to cater to the financing needs of our customers. supported by the manufacturers. They also provide customised financing options to suit your needs.Commercial Vehicle Finance: Sundaram Finance is one of the oldest and largest providers of finance for the acquisition of commercial vehicles of all makes. The Commercial vehicle finance provided by them helps the small operators to acquire vehicles with minimum hassle and documentation. TYRE FINANCE: Sundaram Finance offers you an exclusive tyre finance scheme. long association with transporters for generations and the intimate knowledge of the market and its nuances. Large fleet operators also find it easy to expand their fleet through the finance provided by SFL. where the rates are highly competitive. The scheme gives you the never-before advantage of solving your temporary financial needs . The strength of the Group lies in the quick completion of transactions.

All this supported by excellent customer service. Their experienced staff will gladly guide you through every step of buying a new tractor. Sundaram Finance is the place. a pleasant one. they now finance tractors. With more than 50 years of being in the business of financing the road transport industry. and implements. A trusted financial services brand.TRACTOR FINANCE: People looking to buy a new tractor and need finance for it. sugarcane harvesters. The finance schemes are transparent. Documentation is simple and processing is quick. Attractive interest rates are a key feature of our tractor finance schemes and you can be rest assured that there are no hidden costs. is sure to make your experience with Sundaram Finance. grain harvesters. they have a pan-India network of 561 branches. and flexible to suit your repayment requirements. .

The Fleet Card is an affordable fuel finance product that offers low cost working capital to monitor and control your fleet expenses. petrol and lubricants. What are its features?      Simplicity Value for Money Convenience & Control Security Affordability Who is eligible for Fleet Card? If you're a fleet owner. What is a Fleet Card? The Fleet Card is an effective fuel management tool that provides customers an efficient way of purchasing auto fuels like diesel. It offers a comprehensive customer credit limit. then the Fleet Card is just what you should be looking for. an operator or a corporate. and are in need of an effective tool to monitor and control your fuel expenses. Sundaram Finance has a comprehensive fleet card programme . .XTRAPOWER with IndianOil & SmartFleet with Bharat Petroleum. within which one can preset daily usage limits for each vehicle and derive maximum effectiveness.FLEET CARD: From the trusted house of Sundaram Finance. here is another simple and secure solution for managing your fleets fuel needs. It also allows you to outsource the billing and payment process and thereby helps manage your paperwork more efficiently.

COMPETITION: The following table shows the performance of Sundaram finance ltd Vs its competitors .

Services offered by the industry Vs services offered by Sundaram Finance: Services offered by the industry: Factoring Leasing Forfiating Merchant Banking Venture Capital Securitization Hire Purchase Credit Rating Demat Depositories Registrars and transfer agents Services offered by Sundaram finance: Deposits Car Finance Commercial Vehicle Finance Tyre Finance Tractor Finance Fleet Card .

Conclusion: Sundaram finance has been into the business of financing since a long time. Sundaram finance can also foray into sectors like Leasing. Its into car finance. 65 percent of financing of the private constructions activities is also financed by the NBFC’s. tyre finance. In desperate times. NBFC’s are gaining momentum in the past few decades with wide variety of products and services. loans. There has been significant increase in such companies since 1990’s. tractor finance etc. At the same time. owing to the aggressive character and customized services. They are playing a vital role in the development of financial system of our country. So. The banking sector is financing only 40 percent and the rest is by NBFC’s and private money lenders. it can expand its business by entering into the sectors mentioned above. . Hire purchase and also venture capital. investments and so on. NBFC’s collect public funds and give loan able funds. personal loans and marketing of insurance. commercial vehicle finance. They are focusing now. Sundaram finance has a good experience in financing sector so. on retailing sector. NBFC’s could survive.husing finance. NBFC’s in India have become prominent in various activities such as hire purchase. NBFC’s are doing more fee based services than fund based. lease financing. 50 percent of the credit requirement of manufacturing is done by NBFC’s.

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