Project Topics

:
1. Financial Instruments
Abstract:
The present financial market is flooded with a lot investment instruments, viz.,
Shares, Bonds, Mutual funds, Insurance plans, Fixed Deposits, other money and
capital market instruments and also various options of investment in Real Estate and
Commodity Market etc. Sometimes people refer to these options as "investment
vehicles," which is just another way of saying "a way to invest." Each of these
vehicles has its own positives and negatives and ultimate decision of investment is
influenced by the individual investor’s perception regarding the risk and return of
concerned investment opportunity available in the market. Further, the investment
decisions is full of complexity because of volatility of market conditions, Inflation
rate fluctuations, impact of Global environment, Cash reserve ratio, and Repo rates.
Therefore, it is imperative to analyze these factors while taking an investment
decision.
Keeping above in mind, the study has been done to see the perception of investors
which provides understanding to readers about the various factors which should be
keep in mind at the time of investment. The study is useful to company in providing
the understanding about the investors’ perception to devise the suitable
product/marketing strategies, which would helps it in making their policies or
strategies in order to attract them.
Further. financial planner get advent to make portfolio according to response given by
respondents, which belong to different occupations, having different income level,
different age level or which instrument is mostly like by the investors for investment.
The study would further helpful for readers in understanding about the various
investment opportunities available in the market.
Objectives of the Study
The various objectives of the study are
1) To study the various financial opportunities available for investment.
2) To study about the investors perception regarding various investment opportunities
available in the market
3) To analyze the investment patterns of the investment.
4) To examine the investors changing behavior regarding various investment
opportunities.
The study is descriptive and analytical in nature. It is descriptive as it describes the
existing financial instruments available in the market. It is analytical as it analyses the
perception of the investors.,
NCR region have been taken as universe of the study. Convenient sampling technique
is used and a sample of 100 investors has been taken for the purpose of the study.
Interview and questionnaire have been used to conduct the study. A structured
questionnaire consisting close-ended questions have been made, which is filled by the
trainee during direct interaction with the respondents. Interviews have been taken of
Relationship managers of different NBFC's and BANKS to seek the investor’s
behavior towards investment.
Types of Investments
There are many ways to invest your money. Of course, to decide which investment
vehicles are suitable for you, you need to know their characteristics and why they may
be suitable for a particular investing objective.
• Debt Market
• Public Provident Fund
• Fixed Deposits
• Bonds
• Mutual Funds
• Banks Deposits
• Equity Market
• Initial Public Offer
• Insurance
• Forex
• Cash
• Gold
• Real Estate
Short Term Investment
They are good for short term goals, you can look at liquid funds, floating rate funds
and shortterm bank deposits as options for this category of investments. Liquid funds
have retuned around 5% post-tax returns as compared to 5.6% post-tax that your one-
year 8% bank fixed deposit gives you. So, if you have funds for investment for over a
period of one year, it is better to go in for bank deposits. However, liquid funds are
better, if your time horizon is less than one-year, say around six months. This is
because the bank deposit rates decrease proportionately with lower periods, while
liquid funds will yield the same annualized returns for any period of time. Short-term
floating rate funds can be considered at par to liquid funds for short term investments.
Fixed Maturity Plan (FMP):
If you know exactly for how much time you need to invest your surplus, a smarter
option is to invest in FMPs. They are shorter-tenured debt schemes that buy and hold
securities till maturity, thereby eliminating the interest rate risk. Try and opt for FMPs
that offer a double indexation benefit. Fund houses usually launch double-indexation
FMP’s during the end of the financial year so that they cover two financial year
closings.
Medium & Long-Term Options:
These options typically offer low or virtually no liquidity. They are, however, largely
useful as income accumulation tools because of the assured interest rates they offer.
These instruments (small savings schemes) should find place in your long-term debt
portfolio.
Reference :
www.axisbank.com/aboutus/aboutaxisbank/About-Axis-Bank.asp
www.citibank.com
http://en.wikipedia.org/wiki/Indiabulls
http://en.wikipedia.org/wiki/Investment
www.hsbc.com
www.hsbc.com/1/2/about-hsbc
www.ibef.org


2. Financial Planning and Forecasting
Financial Planning and Forecasting is the estimation of value of a variable or set of
variables at some future point. A Forecasting exercise is usually carried out in order to
provide an aid to decision – making and planning in the future. Business Forecasting
is an estimate or prediction of future developments in business such as Sales,
Expenditures and profits. Given the wide swings in economic activity and the drastic
effects these fluctuations can have on profit margins, business forecasting has
emerged as one of the most important aspects of corporate planning. Forecasting has
become an invaluable tool for business to anticipate economic trends and prepare
themselves either to benefit from or to counteract them. Good business forecasts can
help business owners and managers adapt to a changing economy.
Financial planning and forecasting represents a blueprint of what a firm proposes to
do in the future. So, naturally planning over such horizon tends to be fairly in
aggregative terms. While there are considerable variations in the scope, degree of
formality and level of sophistication in financial planning across firms, we need to
focus on common elements which include Economic assumptions, Sales forecast, Pro
forma statements, Asset requirements and the mode of financing the investments.
In general usage, a financial plan can be a budget, a plan for spending and saving
future income. This plan allocates future income to various types of expenses, such as
rent or utilities, and also reserves some income for short-term and long-term savings.
A financial plan can also be an investment plan, which allocates savings to various
assets or projects expected to produce future income, such as a new business or
product line, shares in an existing business, or real estate.
Financial forecast or financial plan can also refer to an annual projection of income
and expenses for a company, division or department. A financial plan can also be an
estimation of cash needs and a decision on how to raise the cash, such as through
borrowing or issuing additional shares in a company.
Objectives of the Study
The main objective of the study is to understand the financial position of the
company, refers to the development of long-term strategic financial plans that guide
the preparation of short-term operating plans and budgets, which focus on analyzing
the pro forma statements and preparing the cash budget.
Financial Forecast
Financial forecast or financial plan can also refer to an annual projection of income
and expenses for a company, division or department. A financial plan can also be an
estimation of cash needs and a decision on how to raise the cash, such as through
borrowing or issuing additional shares in a company.
While a financial plan refers to estimating future income, expenses and assets, a
financing plan or finance plan usually refers to the means by which cash will be
acquired to cover future expenses, for instance through earning, borrowing or using
saved cash.
Corporations use forecasting to do financial planning, which includes an assessment
of their future financial needs. Forecasting is also used by outsiders to value
companies and their securities. This is the aggregative perspective of the whole firm,
rather than looking at individual projects. Growth is a key theme behind financial
forecasting, so growth should not be the underlying goal of corporation – creating
shareholder value is enabled through corporate growth.
The benefits of financial planning for the organization are
Identifies advance actions to be taken in various areas.
Seeks to develop number of options in various areas that can be exercised under
different conditions.
Facilitates a systematic exploration of interaction between investment and financing
decisions.
Clarifies the links between present and future decisions.
Forecasts what is likely to happen in future and hence helps in avoiding surprises.
Ensures that the strategic plan of the firm is financially viable.
Provides benchmarks against which future performance may be measured.
There are three commonly used methods for preparing the pro forma financial
statements. They are:
1. Percent of Sales Method
2. Budgeted Expense Method.
3. Variation Method.
4. Combination Method.
Percent of Sales Method
The percent of sales method for preparing pro forma financial statement are fairly
simple. Basically this method assumes that the future relationship between various
elements of costs to sales will be similar to their historical relationship. When using
this method, a decision has to be taken about which historical cost ratios to be used.
Budgeted Expense Method
The percent of sales method, though simple, is too rigid and mechanistic. For deriving
the pro forma financial statements, we assume that all elements of costs and expenses
bore a strictly proportional relationship to sales. The budgeted expense method, on the
other hand calls for estimating the value of each item on the basis of expected
developments in the future period for which the pro forma financial statements are
prepared. This method requires greater effort on the part of management because it
calls for defining likely developments.
Variation Method
Variation method on the other hand, calls for estimating the items on the basis of
percentage increase or decrease of comparing with the same item of base year. It is
quite flexible throughout the future period. This method is not like budgeted method,
the value estimating for an item under this method is entirely dependent on the
historical data.
Combination Method
It appears that a combination of above explained three methods works best. For
certain items, which have a fairly stable relationship with sales, the percent of sales
method is quite adequate. For other items, where future is likely to be very different
from the past, the budgeted expense method or variation method is eminently suitable.
A combination method of this kind is neither overly simplistic as the percent of sales
method nor unduly onerous as the budgeted expense method or variation method.
Assumptions
The method used for this study is combination method which eminently works best
for an organization.The assumptions made for forecasting are as follows:
1. The sales are expected to increase by 20% every year.
2. All expenses are estimated under percentage of sales method.
3. Tax is estimated on the basis of profit.
4. Proposed Dividend to be increased by Rs. 5,000,000 every year.
5. Dividend tax is payable on the basis of proposed dividend.
6. Secured and unsecured loans to be decreased by 5% every year.
7. Tax liability on percentage of sales method.
8. Fixed assets are expected to increase by 2% every year.
9. Work-in-progress of capital is expected to decrease by 10% every year.
10. Investments are expected to increase by 5%.
11. Current assets like inventories and sundry debtors are expected to increase by 2%
every year.
12. Cash and it equivalents on the basis of percentage of sales method.
13. Loans and advances are estimated to increase by 5% every year.
14. Current liabilities are expected to increase by 5% every year.
15. Provisions are expected to increase by 10% every year.
Reference :
Financial Management – Prasanna Chandra
Management Accounting – M.Y. Khan and P.K. Jain
Advanced Accountancy – S.M. Shukla
Financial Statements – Royal Classic Group
www.wikipedia.org
www.rcg.in
www.mapsofindia.com

3. Evaluation of Capital
The term Capital Budgeting refers to long term planning for proposed capital outlay
and their financial. It includes raising long-term funds and their utilization. It may be
defined as a firm's formal process of acquisition and investment of capital . Capital
budgeting may also be defined as "The decision making process by which a firm
evaluates the purchase of major fixed assets". It involves firm's decision to invest its
current funds for addition, disposition, modification and replacement of fixed assets.
It deals exclusively with investment proposals, which is essentially long-term projects
and is concerned with the allocation of firm's scarce financial resources among the
available market opportunities.
Some of the examples of Capital Expenditure are
• Cost of acquisition of permanent assets as land and buildings.
• Cost of addition, expansion, improvement or alteration in the fixed assets.
• R&D project cost, etc.,
Capital budgeting is concerned with allocation of the firm's scarce financial resources
among the available market opportunities. The consideration of investment
opportunities involves the comparison of the expected future streams of earnings from
a project with immediate and subsequent streams of expenditure for it". In any
growing concern, capital budgeting is more or less a continuous process and it is
carried out by different functional areas of management such as production,
marketing, engineering, financial management etc. all the relevant functional
departments play a crucial role in the capital budgeting decision are considered.
The role of a finance manager in the capital budgeting basically lies in the process of
critically and in-depth analysis and evaluation of various alternative proposals, and
then to select one out of them. As already stated, the basic objectives of financial
management is to maximize the wealth of the share holders, therefore the objectives
of capital budgeting is to select those long term investment projects that are expected
to make maximum contribution to the wealth of the shareholders in the long run.
Objective of the Project
• To study the relevance of capital budgeting in evaluating the project in a
government organization.
• To study the technique of capital budgeting for decision- making.
• To understand an item wise study of the organization financial performance.
• The data is collected through the observation in the organization and interview with
officials.
By asking question with the accounts and other persons in the financial
department.(oral questioning)
These secondary data is existing data which is already been collected by Others, for
that the sources are financial journals, annual reports of the SOUTH CENTRAL
RAILWAY , RAILWAY website, and other Publications of RAILWAY
• The Project study is undertaken to analyze and understand the Capital Budgeting
process in South Central Railway, which gives main exposure to practical implication
of theory knowledge.
• To know about the organization's operation of using various Capital budgeting
techniques.
• To know how the organization gets funds from various resources.
Features of Capital Budgeting
The important features, which distinguish capital budgeting decision in other day-to
day decision, are Capital budgeting decision involves the exchange of current funds
for the benefit to be achieved in future. The future benefits are expected and are to be
realized over a series of years. The funds are invested in non-flexible long-term funds.
They have a long term and significant effect on the profitability of the concern. They
involve huge funds. They are irreversible decisions. They are strategic decision
associated with high degree of risk.
The importance of capital budgeting can be understood from the fact that an unsound
investment decision may prove to be fatal to the very existence of the organization.
The importance of capital budgeting arises mainly due to the following:
1. Large investment:
Capital budgeting decision, generally involves large investment of funds. But the
funds available with the firm are scarce and the demand for funds for exceeds
resources. Hence, it is very important for a firm to plan and control its capital
expenditure.
2 . Long term commitment of funds:
Capital expenditure involves not only large amount of funds but also funds for long-
term or an permanent basis. The long-term commitment of funds increases the
financial risk involved in the investment decision.
3. I rreversible nature:
The capital expenditure decisions are of irreversible nature. Once, the decision for
acquiring a permanent asset is taken, it becomes very difficult to impose of these
assets without incurring heavy losses.
4. Long term effect on profitability:
Capital budgeting decision has a long term and significant effect on the profitability
of a concern. Not only the present earnings of the firm are affected by the investment
in capital assets but also the future growth and profitability of the firm depends up to
the investment decision taken today. Capital budgeting decision has utmost has
importance to avoid over or under investment in fixed assets.
5. Difference of investment decision:
The long-term investment decision are difficult to be taken because uncertainties of
future and higher degree of risk.
6. Notional Importance:
Investment decision though taken by individual concern is of national importance
because it determines employment, economic activities and economic growth.
Independent Project Decision
This is a fundamental decision in Capital Budgeting. It also called as accept /reject
criterion. If the project is accepted, the firm invests in it. In general all these
proposals, which yield a rate of return greater than a certain required rate of return on
cost of capital, are accepted and the rest are rejected. By applying this criterion all
independent projects with one in such a way that the acceptance of one precludes the
possibility of acceptance of another. Under the accept-reject decision all independent
projects that satisfy the minimum investment criterion should be implemented.
Mutually Exclusive Projects Decision
Mutually Exclusive project are those, which compete with other projects in such a
way that the acceptance of one will exclude the acceptance of the other projects. The
alternatively are mutually exclusive and only one may be chosen. Suppose a company
is intending to buy anew machine. There are three competing brands, each with a
different initial investment adopting costs. The three machines represent mutually
exclusive alternatives as only one of these can be selected. It may be noted here that
the mutually exclusive projects decisions are not independent of the accept-reject
decisions.
Capital Budgeting Process
Capital budgeting is complex process as it involves decision relating to the Investment
of current funds for the benefit for the benefit to be achieved in future and the future
are always uncertain. However, the following procedure may be adopted in the
process of Capital Budgeting.
I dentification of investment proposals
The capital budgeting process begins with the identification of investment Proposals.
The proposal about potential investment opportunities may originate either from top
management or from any officer of the organization. The departmental head analysis
various proposals in the light of the corporate strategies and submits the suitable
proposals to the capital expenditure planning.
Screening proposals:
The expenditure planning committee screens the various proposals received from
different departments. The committee reviews these proposals from various angles to
ensure that these are in accordance with the corporate strategies, or selection criterion
of the firm and also do not lead departmental imbalances.
Evaluation of Various proposals:
The next step in the capital budgeting process is to various proposals. The method,
which may be used for this purpose such as, pay back period method, rate of return
method, N.P.V and I.R.R etc.
Fixing priorities:
After evaluating various proposals, the unprofitable uneconomical proposal may be
rejected and it may not be possible for the firm to invest immediately in all the
acceptable proposals due to limitation of funds. Therefore, it essential to rank the
project/proposals after considering urgency, risk and profitability involved in there.
Reference :
www.southcentralrailways.com
www.indianrailways.com
www.irfc.com

4. Financial Planning and Forecasting
Financial Planning and Forecasting is the estimation of value of a variable or set of
variables at some future point. A Forecasting exercise is usually carried out in order to
provide an aid to decision – making and planning in the future. Business Forecasting
is an estimate or prediction of future developments in business such as Sales,
Expenditures and profits. Given the wide swings in economic activity and the drastic
effects these fluctuations can have on profit margins, business forecasting has
emerged as one of the most important aspects of corporate planning. Forecasting has
become an invaluable tool for business to anticipate economic trends and prepare
themselves either to benefit from or to counteract them. Good business forecasts can
help business owners and managers adapt to a changing economy.
Financial planning and forecasting represents a blueprint of what a firm proposes to
do in the future. So, naturally planning over such horizon tends to be fairly in
aggregative terms. While there are considerable variations in the scope, degree of
formality and level of sophistication in financial planning across firms, we need to
focus on common elements which include Economic assumptions, Sales forecast, Pro
forma statements, Asset requirements and the mode of financing the investments.
In general usage, a financial plan can be a budget, a plan for spending and saving
future income. This plan allocates future income to various types of expenses, such as
rent or utilities, and also reserves some income for short-term and long-term savings.
A financial plan can also be an investment plan, which allocates savings to various
assets or projects expected to produce future income, such as a new business or
product line, shares in an existing business, or real estate.
Financial forecast or financial plan can also refer to an annual projection of income
and expenses for a company, division or department. A financial plan can also be an
estimation of cash needs and a decision on how to raise the cash, such as through
borrowing or issuing additional shares in a company.
Objectives of the Study
The main objective of the study is to understand the financial position of the
company, refers to the development of long-term strategic financial plans that guide
the preparation of short-term operating plans and budgets, which focus on analyzing
the pro forma statements and preparing the cash budget.
Financial Forecast
Financial forecast or financial plan can also refer to an annual projection of income
and expenses for a company, division or department. A financial plan can also be an
estimation of cash needs and a decision on how to raise the cash, such as through
borrowing or issuing additional shares in a company.
While a financial plan refers to estimating future income, expenses and assets, a
financing plan or finance plan usually refers to the means by which cash will be
acquired to cover future expenses, for instance through earning, borrowing or using
saved cash.
Corporations use forecasting to do financial planning, which includes an assessment
of their future financial needs. Forecasting is also used by outsiders to value
companies and their securities. This is the aggregative perspective of the whole firm,
rather than looking at individual projects. Growth is a key theme behind financial
forecasting, so growth should not be the underlying goal of corporation – creating
shareholder value is enabled through corporate growth.
The benefits of financial planning for the organization are
Identifies advance actions to be taken in various areas.
Seeks to develop number of options in various areas that can be exercised under
different conditions.
Facilitates a systematic exploration of interaction between investment and financing
decisions.
Clarifies the links between present and future decisions.
Forecasts what is likely to happen in future and hence helps in avoiding surprises.
Ensures that the strategic plan of the firm is financially viable.
Provides benchmarks against which future performance may be measured.
There are three commonly used methods for preparing the pro forma financial
statements. They are:
1. Percent of Sales Method
2. Budgeted Expense Method.
3. Variation Method.
4. Combination Method.
Percent of Sales Method
The percent of sales method for preparing pro forma financial statement are fairly
simple. Basically this method assumes that the future relationship between various
elements of costs to sales will be similar to their historical relationship. When using
this method, a decision has to be taken about which historical cost ratios to be used.
Budgeted Expense Method
The percent of sales method, though simple, is too rigid and mechanistic. For deriving
the pro forma financial statements, we assume that all elements of costs and expenses
bore a strictly proportional relationship to sales. The budgeted expense method, on the
other hand calls for estimating the value of each item on the basis of expected
developments in the future period for which the pro forma financial statements are
prepared. This method requires greater effort on the part of management because it
calls for defining likely developments.
Variation Method
Variation method on the other hand, calls for estimating the items on the basis of
percentage increase or decrease of comparing with the same item of base year. It is
quite flexible throughout the future period. This method is not like budgeted method,
the value estimating for an item under this method is entirely dependent on the
historical data.
Combination Method
It appears that a combination of above explained three methods works best. For
certain items, which have a fairly stable relationship with sales, the percent of sales
method is quite adequate. For other items, where future is likely to be very different
from the past, the budgeted expense method or variation method is eminently suitable.
A combination method of this kind is neither overly simplistic as the percent of sales
method nor unduly onerous as the budgeted expense method or variation method.
Assumptions
The method used for this study is combination method which eminently works best
for an organization.The assumptions made for forecasting are as follows:
1. The sales are expected to increase by 20% every year.
2. All expenses are estimated under percentage of sales method.
3. Tax is estimated on the basis of profit.
4. Proposed Dividend to be increased by Rs. 5,000,000 every year.
5. Dividend tax is payable on the basis of proposed dividend.
6. Secured and unsecured loans to be decreased by 5% every year.
7. Tax liability on percentage of sales method.
8. Fixed assets are expected to increase by 2% every year.
9. Work-in-progress of capital is expected to decrease by 10% every year.
10. Investments are expected to increase by 5%.
11. Current assets like inventories and sundry debtors are expected to increase by 2%
every year.
12. Cash and it equivalents on the basis of percentage of sales method.
13. Loans and advances are estimated to increase by 5% every year.
14. Current liabilities are expected to increase by 5% every year.
15. Provisions are expected to increase by 10% every year.
Reference :
Financial Management – Prasanna Chandra
Management Accounting – M.Y. Khan and P.K. Jain
Advanced Accountancy – S.M. Shukla
Financial Statements – Royal Classic Group
www.wikipedia.org
www.rcg.in
www.mapsofindia.com

5. Credit Analysis of Personal Loan
Personal loans help you to take care of your immediate requirements Without much of
a hassle. The most attractive feature of the personal loan is that you do not have to
give any kind of security to avail this loan. No Security, Collateral or Guarantors are
required to avail personal loans. Also, no questions regarding the end use of the loan
are asked since personal loans do not require any security or hypothecation of assets,
the rate of interest charged by them is higher compared to any other secured loans.
ABN AMRO Personal Loans are completely flexible - you can take your loan for
purchase of assets and consumer durables, home improvements, tax saving
investments, higher education, holidays and travel, emergency medical needs,
marriage in family in short, for any declared legal use without pledging any security.
You may also avail of the "Balance Transfer Program" to retire any high cost loans
that you may have taken, including your credit card dues by simply opting for an
ABN AMRO Personal Loan. There are no hidden charges - the Personal Loans come
to you with minimum formalities, at attractive interest rates and only a one time
nonrefundable processing fee. If you are an existing ABN AMRO customer, you
could be eligible for special discounts on the interest rates and simplified application
formalities under our "Relationship Rewards Program".
Objective of the Research
To find out exactly what is Credit Analysis is?
How it is to be done?
To find out what is the criteria to be considered by the banks to give loan for various
purposes.
How the processing is done on the applicant’s loan request & how it is to be accepter
or rejected.
To know and study various credit facilitities provided by the banks.
How the eligibility for granting for granting the loan is calculated.
The main objective of the project was to know the loan proposal system of ABN
AMRO BANK. The analysis of any proposal consists of two parts
· Internal
· External
Internal is extract of internal analysis , consisting of calculation of tenor as per norms
,calculation of eligibility with reference to income shown by an applicant, then if
approved, to calculate the equated monthly installments & actual disbursement.
External analysis involves collection of documenry proofs regarding income profile,
residence verification, repayment capacity and the end use.
Loan with Income Statements / Salaried Employees
The loan offered to salaried employees is given according to the companies they are
working with. ABN AMRO Bank has around 7500 companies listed with them, and
they offer loans to the employees working in these companies only. The criteria for
listed companies are according to the company profile, past performance, profit
earning ability etc. These companies are again been divided into 3 categories i.e.
Category A, B & C, according to the above factors.
ABN AMRO Bank gives loan to the officers and management cadres only. They don't
give loans to the employees below the officers grade i.e. to the supervisor, the
workers etc. The applicant should be earning a Gross annual salary of minimum Rs. 1,
00,000/- per annum. The conditions are as follows.
Conditions
· Officer or management cadre
· Working in the current employment for at least 1 year or overall 3 years work
experience
· Age between 23 to 60 years
· Gross annual salary more than Rs. 1, 00,000/- per annum.
This maximum amount that can be given to an applicant is subject to his net monthly
income. The amount calculated by the applicants Net Adjusted salary.
CONCEPT OF “CREDIT”
1. It is the idea that if you build up a reputation for paying bills and debts on time you
will be able to borrow money in the future.
2. Credit is important because it enables you to borrow money when you need it. In
addition, the better your creditworthiness the more cheaply you will be able to borrow
money whether for a car, education, home or some other large expenses.
3. On the other hand, if you are not a good credit risk, you may not be able to borrow
when you need to, or you might be able to borrow but only at a high interest rate.
Credit is used primarily in order to obtain loans. Loans can be excellent way to be
fund large purchases and business initiative ,but managing debt can be complicated
process
· It can take just few months to get into financial trouble and years to get out.
· Although debt is some time useful, there is diff between good debt and bad debt the
two most important characteristics are how you borrow the money and what you do it
.HOW FRUITFULLY YOU USE IT.
· Even though debt is a part of life, the key to preventing it from becoming destructive
is knowing its benefits and risks.
Unfortunately credit fraud is increasingly serious problem having grown almost
threefold in frequency in the last five years. Under the most common scham called
“Identity Theft “the criminal opens a credit card or other account with another person
name. The criminal then purchases goods and services and you get stuck with the bill.
Credit card fraud & credit analysis are not related with each other.
Sometimes the creditor / borrower may qote wrong information about his personal
loan details. his capacity to pay off the loan ,the reasons for taking the loan.
Therefore to overcome all this fraudulent activity credit analysis is to be done, to
check out the worthiness of the creditor to repay the loan and pay the interest.
Reference :
WWW.ABNAMRO.CO.IN
www.google.com