A

Project Report
On

A DETAIL STUDY OF FINANCIAL OPERATIONS OF ‘SHRIRAM TRANSPORT FINANCE’

SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY

In partial fulfilment of the requirement

For the award of degree of
Master of Business Administration

SUBMITTED BY
PRAVIN RAJU GAYAKWAD

UNDER THE GUIDANCE OF

Dr, MEGHA MEHTA

Institute
SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION NARHE PUNE
411041

YEAR
FEB - 2022
 DECLARATION

I, The undersigned, Pravin Raju Gayakwad Studying at Sinhagad institute of management

and computer application narhe, Pune, hereby declare that the project entitled “A DETAIL
STUDY OF FINANCIAL OPERATIONS OF SHRIRAM TRANSPORT FINANCE”
submitted by me as the partial fulfillment for the award of degree of Master of Business
Administration (MBA) of Savitribai Phule Pune University under the guidance of Dr.
Megha mehta.this is the original research work completed by me.

Date:

Place: PUNE Mr. Pravin Raju Gayakwad

 ACKNOWLEDGEMENT

I am much obliged to express my deep gratitude to all the personalities who spared their
valuable time & gave me helpful co-operation & guidance for my project report.

I am heartily grateful to the management of sinhgad institute of management and computer

application , narhe, pune. for their helpful co-operation, inspiration, interest & valuable
guidance in preparing this report.

I would like to express my sincere thanks to all respondents, friends & family members who
have helped me in preparing this report.

Date: Signature of Student

Place: PUNE Mr. Pravin Raju Gayakwad

 INDEX

Sr. no Particulers
Executive Summary

1. Introduction to study

2. Introduction To Organisation

3. Review Of Literature

4. Research Methodology

5. Data Analysis

6. Findings, Suggestion & Conclusion

 Executive Summary

 In this presentation we are gathering some data about a

finance company named Shriram Transport Finance
Company Ltd,Chennai, tamilnadu, india.

 Shriram group is an Indian conglomerate(multi-

industry company i.e. a combination of multiple business
entities operating in entirely different industries under one
corporate group, usually involvinga parent company and
many subsidiaries.)

 This company is transport finance company, giving

vehicle loan, consumers loan, life insurance etc.

 This company has many achivments that we are brifly

discussed in coming slides.
 ABOUT THE COMPANY

Shriram Transport Finance Company, Ltd are a part of the

"SHRIRAM" conglomerate which has significant presence
in financial services viz., commercial vehicle financing
business, consumer finance, life and general insurance,
stock broking, chit funds and distribution of financial
products such as life and general insurance products and
units of mutual funds. Apart from these financial services,
the group is also present in non-financial services business
such as property development, engineering projects and
information technology. STFC was incorporated in the year
1979 and is registered as a Deposit taking NBFC with
Reserve Bank of India under section 45IA of the Reserve
Bank of India Act, 1934.
BASIC INFORMATION OF COMPANY

 CHAIRMAN :- R. TYAGRAJAN

 FOUNDED :- On 5 April 1974

 Headquarters :- Chennai, tamil nadu, india

 Revenue :- Rs 1.06 lack crore(year2020)

 No. of employees :- 55,000(current)

 SUB BRANCH

 COMPANY NAME :- Shriram Transport Finance

Company Ltd.

 ADDRESS :- UNIT NO :- 012, Stilt floor, fortune plaza

thube park, Shivaji nagar, pune, Maharashtra 411005

 Services :- small business loans, startup business loans,

construction equipment loan, machinery loans, tax
finance, toll finance, etc.


 Areas served :- Baluchi vasti, corporation colony,
narveer tanhaji wadi, revenue colony, Shivaji nagar.
 Achivements :- 1. CNBC tv18 best bank and financial
institution awards 2012.


2. “best Non-Banking financial company” in “asset backed

lending” category.
 Introduction

Like any other financial product, providing finance is largely

dependent on how well company plans out its marketing
strategies which helps in increasing its visibility and building a
distinct brand. Looking at the intense competition, it is become
very necessary for company to make a name for themselves in
consumer’s mind. So the opinion of customers play an important
role in making marketing strategies. Hence this project will
provide the some facts and figures about STFC and its customer
connect initiative. It will also help to find out the type brand
image of STFC customers have in their minds. India is emerging
as a global automobile giant. In recent years this industry has
made pioneering efforts in adopting modern technology and
allowing the entry of foreign players. This is well supported by
the economic conditions particularly in the financial sector and
in foreign direct investment. During the last decade, conscious
efforts have been made to finetune state policy to enable the
Indian automobile industry realizes its potential to the fullest.
The freeing of the industry from this restrictive environment has
helped it to itself to global development. Increasing competition
as result of liberalization has led to continuous modernization as
well as international standards. Moreover, auto finance with
aggressive marketing strategies has played a bid role in boosting
the automobile demand. Commercial vehicles, widely considered
being the economy’s barometer, have had a good start for the
year.

OVERVIEW OF COMPANY

 “SHRIRAM” conglomerate which has significant

presence in financial services, commercial vehicle financing
business, consumer finance, life and general insurance,
stock broking, chit funds and distribution of financial
products such as life and general insurance products and
units of mutual funds
 Company was incorporated in the year 1979 and is
registered as a Deposit taking NBFC with Reserve Bank of
India under section 45IA of the Reserve Bank of India Act,
1934.
 Established in the year 1974, the Shriram Group,
comprising 750 Branches and Service Centers, in India's
premier financial services chain. This company is the largest
player in Truck Financing and Chit funds in the Indian
subcontinent. The group, having an annual turnover of Rs.
6,000 crore (USD 1.3 billion), has a significant presence in
the Insurance Consultancy, Consumer Durable Finance and
Stock Broking businesses. It also have diversified
investments in areas such as Information Technology,
Pharmaceuticals, Property Development, Project
Engineering, Packaging and Auto Components. It employ
over 11,000 employees across the countries that are
committed to providing excellent customer service. It also
have over 75,000 agents nationwide who reach out to its
customers in even the most remote areas. The Shriram
Group's business ventures are built on providing the most
efficient and customer-focused services based on the simple
principle of putting people first. This 'People First' business
philosophy has earned them unstinted customer loyalty
through many generations.

SWOT ANALYSIS OF THE COMPANY

 STRENGTHS OF COMPANY :-
I. Promoters increasing shareholding QoQ.
II. Book value per share improving .
III. Mutual funds increased their shareholding.

 WEAKNESS OF COMPANY :-
I. High interest payments to earning.
II. Decline in net profit with falling profit margin.

 OPPORTUNITIES :-
I. Rising delivery percentage compared to previous days.
II. Brokers upgraded recommendation or target price.

 THREAT :-
I. Increase in provision in recent result.

OBJECTIVES OF THE STUDY

 To know the perception of cuustomrs towards
SHRIRAM TRANSPORT FINANCE COMPANY to
improve the quality of services.

 To know whether the customers are satisfied with the

present services of the company.

 To study the behaviour of executives of SHRIRAM

TRANSPORT FINANCE COMPANY towards customer.

 To seek suggestion and opinions from customers

regarding the improvement of services.

 To know the perception of customers towards

SHRIRAM TRANSPORT FINANCE COMPANY to
improve the quality of services.

 To know whether the customers are satisfied with the

present services of the company.

 Factors considered in selecting SHRIRAM

TRANSPORT FINANCE COMPANY to take finance for
HCV (Truck).
  To study the behaviour of executives of SHRIRAM
TRANSPORT FINANCE COMPANY towards customers.

 To seek suggestions and opinions from customers

regarding the improvement of services.

Scope of the study

 study will help the company to know their awareness among
the consumers, the perception, and brand position of the
company.

 The company can find out where their competitors stands in

the minds of the customers.

 The study will help the company to make proper marketing

strategy for their weaker areas.

 The study covers the customers owning HCV in Lakhimpur

city
 LIMITATIONS IN STUDY

 Since the report is exclusively made from secondary source

of data, the direct observation is literally impossible.
 There is no scope for gathering sufficient financial
information as it is confidential.
 There was time constraint for the project, due to the limited
time.
 They themselves have not maintained the data so accurately
but seem to be sufficient for the project.

 Not a single work is exception to the limitations every work

has got its own limitations, so due to time constraint, my
study confines only to Lakhimpur city and it is not possible to
make extensive study. It is assumed that the sample selected
represents entire population.
 RESEACH METHODOLOGY

 METHODOLOGY :-The collection is the process of

enumeration together with the proper recording of
results. The success of an enquiry is based up on the proper
collection of data.
Secondary Data Secondary data are those that are already
collected by someone for some purpose
and are available for the present study.

 Nature of study : The Present study is based on secondary

data, which has been collected from published annual
reports from the period of 2018-2021 of Shriram transport
finance. In this study, The study is both descriptive and
analytical nature. It is an attempt to evaluate the working
capital management of the company, through the secondary
sources data. Data was collected from www.stfc.in
 Annual performance
(in cr)
20000

18000

16000

14000

12000

10000

8000

6000

4000

2000

0
year 2018-19 year 2019-20 year 2020-21

Net profit total income

YEAR TOTAL INCOME NET PROFIT PROFIT MARGIN

2018-19 15,557 2,564 16.48%
2019-20 16,576 2,502 15.09%
2020-21 17,436 2,487 14.26%
 LITRATURE REVIEW

 Shriram Capital is the undisputed destination of choice

for private equity (PE) players in India. As of today, 23 PE
investors have invested over $750 million in Chennai-based
Shriram Group since 2005 according to Venture
Intelligence, a research firm that tracks PE investments in
India.
 Narasimhan, T.
E. (31 January 2012).
 The company disbursed ₹1,000 crore in the two-wheeler
segment as the company financed 1.66 lakh two-wheelers in
November. While it financed 10.41 per cent of the two-
wheelers sold during the month, this was the first time the
company’s disbursements surpassed the ₹1,000-crore-mark in
a month. About 95 per cent of the disbursements in this
business was for commuter segment bikes in rural- and semi-
urban markets.
Balachandar, G.

The world is full of stimuli. A stimulus is any unit of input

affecting one or more of the five senses sight, smell, taste, touch,
and hearing. The process by which we select, organize and
interpret these stimuli into a meaningful and coherent picture is
called perception. In essence, perception is how we see the world
around us and how we recognize that we need some help in
making a purchase decision. People cannot perceive every
stimulus in their environment. Therefore, they use selective
exposure to notice and which to ignore. Marketers must
recognize the importance of cues or signals, in customer’s
perception of products. Marketing managers first identify the
important attributes, such as price or quality, that the targeted
customers want in a product and then design signals to
communicate these attributes. Customers also associate quality
and reliability with certain brand names. Companies watch their
brand identity closely, in large part because a strong link has
been established between perceived brand value and customers
loyalty. Customer Perception Audits: Every time you lose a
customer, there’s a reason why. Do you really know what your
customers think about your business, your offerings, or your
service? Are they having good or bad experiences? Are you
equipped with the insight you need to improve customer
satisfaction and loyalty, and make the changes that matter?
Entrepreneurs are often too busy to really take the time to tap
into what customers are really thinking. But customers hold the
key. They know what you need to do to dramatically increase the
value you deliver to them. Why keep this data a secret?
Uncovering and understanding it will give you what you need to
be the best, generate higher sales and referrals and earn repeat
business. Customer Perception Audits by Coach Kevin captures
information on the experiences your customers are having,
analyzes the data, and provides meaningful, actionable
recommendations on short-term and long-term improvements,
with the goal of closing the gap between the service that is
delivered and the service that customers expect. Opening of
economy and liberalization in trade in the country brought a sea
of change in customer’s perception of buyer and seller
relationship. The customer today is not only very demanding but
also likes to know the relationship between the supplier of goods
and services and its relationship with the manufacturer or
principal and its antecedents. It is on this relationship depends
the guarantee and warranty terms to which the customer is
entitled. A customer expects trouble free service during the
guarantee period. Thereafter it is expected that a product will last
to its full productive life with minimum down time and the
vendor will provide the required support service to ensure the
customer is not put to trouble. For adopting Japanese
management or for customer oriented management we should
first have the willingness and a determination much above the
petty personal gains. It needs an attitudinal change. Looking
towards present socioeconomic and political conditions such
change is not foreseen in immediate future. Market forces will
have to play the game with only customer in mind if India has to
make global presence. There is little time in hand as we are
having challenges from all sides. Small nations like Korea,
Taiwan, and Singapore etc. have already surpassed us. These
nations are working on a vision and resultant plans. It is the right
time for market players to pamper the customer. As the saying
goes, the four deadly sins of corporate management-
complacency, blindness, megalomania, and greed. Remember
that a customer always buys a product or service with a lot of
expectations which he has derived from the promotional inputs
of the company or other sources including wordof-mouth. So a
customer would be satisfied when Performance is equal to
Expectation while would not be satisfied when Performance does
not match with Expectations. Now this expectation is what has
been derived from perception. Perception is not good or bad,
right or wrong, it is just the way someone judges an experience
based on their value system of what they believe should happen.
Since people are unique, each of their perceptions are unique. On
the other hand each situation is a "point of contact" with an
employee that will tell the customer a "truth" about the
company's idea of customer service. Each situation will create
expectations of what the next experience will probably be like.

HISTORY AND MILESTONE

APRIL 2005: Shriram Group attracts largest Venture Capital Investment

in the Indian nonbanking financial sector, from Overseas

JULY 2004: UTI Bank picks up equity stake in two Shriram Group
companies .

17 MARCH, 2003: Shriram Investment Limited received the Mother

Teresa Award for Corporate Citizenship.

DECEMBER 2002: Shriram Group enters into strategic alliance with

Citicorp Finance and Cummins Auto Services.

31 AUGUST, 2002: Shriram Group ties up with UTI Bank for Retail
Truck Financing Scheme to offer low cost loans for purchase of new or
used trucks to transport operators.

7 MAY, 2002: Ms. Akhila Srinivasan awarded as the "Outstanding

Woman Professional" for the year 2002 .
4 FEBRUARY, 2000: Shriram Recon Trucks incorporated as India's
first corporate network for selling reconditioned used trucks.
15 DECEMBER, 1999: Medicorp, the flagship company of Shriram
group’s pharmacy division became the first Indian company to win the
Indian Drug Manufacturers Association.

27 MARCH, 1986: Shriram City Union Finance Ltd. Incorporated for

cars and two-wheelers.

12 MARCH, 1980: Shriram Investments Ltd. Incorporated .

13 JUNE, 1979: Shriram Transport Finance Company Ltd. Incorporated

 VISION, MISSION VALUES.

Helping create wealth, empowering people through prosperity,

putting people first. The Shriram Group set out with the
objective of reaching out to the common man with a host of
products and services that would be helpful to him in his path to
prosperity. Over the decades, the Group has achieved significant
success in executing this objective and has created a tremendous
sense of loyalty amongst its customers. Efficiency in operations,
integrity and a strong focus on catering to the needs of the
common man, by offering him high quality and cost-effective
products & services, are the values driving the organization.
These core values are deep-rooted within the organization and
have been strongly adhered to over the decades. The group
prides itself on its perfect understanding of the customer. Each
product or service is tailor-made to perfectly suit the needs of the
customer. It is this guiding philosophy of putting people first that
has brought the Group closer to the grassroots and has made it
the preferred choice for all financing requirements amongst the
customers.
Non-Banking Financial Company (NBFC) -A General
Scenario.

Non-Banking Financial Company (NBFC) is a company

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

Difference Between Banks and NBFC

NBFCs are doing functions akin to that of banks, however there
are a few differences: 1. A NBFC cannot accept demand
deposits.
2. It is not a part of the payment and settlement system and as
such cannot issue cheques to its customers.
3. Deposit insurance facility of DICGC is not available for
NBFC depositors unlike in case of banks.

Commercial Vehicle
It is the funding of products include, trucks, buses, tippers, light
commercial vehicles, pickups, 3 wheelers, etc. Range of
services: funding of new vehicles, refinance on used vehicles,
balance transfer on high cost loans, top up on existing loans,
Extend product, working capital loans & other banking products.

Who are eligible?

Any individual / Partnership firm / company with more than 2
years business experience. Ownership of a vehicle is not
mandatory. Funding extended to First Time User, Transporters
and Captive Consumers.

How much?
 Loan amount can vary from a few thousands to crore depending
upon the specific requirement. Funding can be up to the extent of
100 % of the chassis, body funding can be extended on special
requirement & on the past experience. Generally undertaken is
Hypothecation funding. They are also taking over an old high-
interest loan and converting it into low interest loan.

Repayment:
In general repayment period is of 3 -4 years, however depending
on the nature of the deal the tenure can vary from 6 - 60 months.
The repayment schedule & the amortization schedule is sent on
disbursement of the loan.

Interest?
Interest is charged on a flat rate based on the scheme applicable
for the particular product.

FARM EQUIPMENT LOANS

Farm equipment loan has also a big chunk in the vehicle finance.

Who are eligible?

Agricultural Users Commercial Users

Any individual aged above 21 years at
the beginning of the tenure and below
65 years by the end of the tenure;
involved in agriculture for the last 5
years.
 Having minimum 2 acres of land
with its value at least twice the loan
amount.
 Staying in the same place for at least
3 years.
 Having an annual income equal to
the yearly installment.
 Mortgage of land of 2 to 3 times of
the loan amount
Any individual aged above 21 years at
the beginning of the tenure and below
65 years by the end of the tenure;
involved in business for the last 3
years.
 Owns at least one tractor or
commercial vehicle.
 Owns either a house or an office or
at least 2 acres of land.
 Has a permanent phone connection
either at office or at home.

Loan Amount?
The loan amount varies from customer to customer depending on the valuation of
the land being mortgaged, income of the customer and tenure desired. A
maximum of 100% of the cost of the tractor, 75% of the cost of the trailer and
50% of the cost of the implements is funded.

Documentation for Agricultural

1. Application form with photograph of the customer and all co applicants
and/or guarantor.

2. Performa Invoice of the asset to be funded from an authorized dealer.

3. Land records of the borrower/s.
4. Land valuation and title search report of the land.
5. Residence proof of the borrower/s.
6. Identity proof of the borrower/s.
7. Signature verification of the borrower/s.
8. Loan agreement, duly signed by the applicants and guarantor.
9. 2 SPDCs (Security Post Dated Cheques) for entire tenure.

Documentation for Commercial use:

1) Application form with photograph of the customer and all co applicants
and/or guarantor.
2) Proforma Invoice of the asset to be funded from an authorized dealer.
3) Proof of Income (any of the following): (a) Billing statement for the past one
year (b) Latest Income tax Return (c) Last 6 months bank statement
4) Residence proof of the borrower/s.
5) Identity proof of the borrower/s.
6) Signature verification of the borrower/s.
7) Loan agreement, duly signed by the applicants and guarantor.
8) 2 SPDCs (Security Post Dated Cheques) for entire tenure.

Rates & Fees?

The rate of interest varies from customer to customer and depends on various
factors like land holding, loan amount, viability of the proposition and the
underlying collaterals provided.

Interest?
Interest is charged on a monthly/quarterly/half-yearly reducing balance basis as
the case may be. Every installment that is paid has a component of principal as
well as interest. Interest is charged on the principal outstanding after every
installment payment.

Two Wheeleres
Two wheeler finance is comparably Simple, Friendly and Quick. Loan Schemes
are available from Rs.7500/- onwards to Rs.150000/- in easy installments over a
period of 6 to 36 months.

Who are eligible?

1) Salaried Individuals
2) Self Employed Individuals
3) Pensioners, Housewives& Students
4) Partnership Entities
5) Private Limited Companies
6) Public Limited Companies

Documents:
1. Identity Proofs
2. Residence Proof
3. Income Proof
4. Post Dated Cheques
5. Copy of Credit Card
6. CC billing statement
7. Bank passbook/Statement
8. No objection Certificate.

Interest Rates?
Interest rate is charged on a monthly reducing balance.

Product Profile
Truck Finance
 Shriram Truck Financing Companies. The wheels of progress.

 Largest NBFC in the country exclusively engaged in financing of heavy

commercial vehicles.

 Monopoly position in financing of used vehicles.

 All India presence with a branch network of 260 offices and employing over
4000 people.

 Growing at the rate of 30% per annum.

 Funds managed – Rs 6000 crores.

 Equity investors - Citicorp, UTI Banks, Reliance Capital and FMO

Netherlands have added tremendous value and strength.

 Venture capital firm Chris capital joins as a strategic partner by acquiring 21%
equity.

We entered the Consumer Durable Finance business in early 2002 through

'Shriram City Union Finance Ltd., the consumer finance arm of the group.
Within a short span of 2 years, we have managed a portfolio of over Rs.584
crore. Our monthly business amounts to over Rs.25 crore in individual loans,
ranging from as little as Rs.8,000 to Rs.1,00,000, and with tenures ranging
from 12 months to 36 months. Since its inception, we have financed over
2,15,000 white goods and two-wheelers, with over 90% of the business arising
out of the non- metro markets. This financing is backed by lines of credit
extended by ICICI Bank, UTI Bank and Development Credit.
Group Companies That Cater To Truck Financing Needs:

Shriram Investments Limited in the South Shriram Transport Finance

Company Limited in the West Shriram Overseas Finance Limited in
Northern/Eastern regions in India.
 Our Equity Partners:

Citicorp financial services Ltd. An arm Citigroup has taken 14.9% equity
stake in Shriram investments Limited and Shriram Transport Financial
Company Limited in 2002. FMO the Dutch Government owned financial
services company has recently picked up equity stake in SIL and STFC. The
company has extended a long term debt of 6 million Euros each to the two
companies. Reliance Capital has also taken an equity stake in the two
companies at a premium.

An Overview Of The Shriram Group Truck Financing

Business In India:

Area Of Operation All India

Branch offices 260
Employees 4000
Depositors 12.20 lakhs
Agency Force 15,000 plus resident representatives
1300.
Funds managed Rs. 6000 crores
Net worth Rs. 349 crores

Stock Listing Major exchanges including the BSE

and the NSE.

Consumer Finance

We entered the consumer Durable Finance Business in early 2002. Through

Shriram City Union Finance Ltd. The consumer arm of the group. Within a short
span of 2 years, we have managed a profile of over rest 684 crores in this
 business. Our monthly business amounts to over Rs. 25 crores in individual
loans, ranging from as little as Rs. 8000 to Rs. 100000 and with tenures ranging
from 12 months to 36 months. Since its inception we have financed over 215000
white goods and two wheelers with over 90% of the business arising out of the
non-metro markets. This financing is backed by lines of credit extended by ICICI
Band, UTI Bank and Development Credit.

Chit Funds

Shriram chits is the largest chits fund in the country. We have grown to become a
trusted household investment option. The growth registered by Shriram Chits
recent years not only indicated the usefulness of this savings instrument, but is
also a reflection our customers trust in. Chits one of the earliest investment
instrument known to man, were founded by the enlightened communities of
India. These have, ever since, worked to the advantages of communities that are
batting scarce capital resource. Shriram chits started its operations in the year
1974 with a single branch that has quickly grown into trusted household name for
making chits a viable form of saving and borrowing to all sections of the social.
Shriram chits operates in four states. Tamil Nadu, Andhra Pradesh, Karnataka
and Maharashtra, where has a reputation for timely disbursement of funds and
excellent customer services which differentiates it from other companies. Using
state of the art computer systems/networks and a transparent accounting system,
Shriram Chits have transformed this contemporary method of savings into an
attractive personalized to banking system. This financing is backed by lines of
credit extended by ICICI Band, UTI Bank and Development Credit.

General Insurance

Shriram group has adopted a two strategy in this segment.

1. Broking arm – Armur Consultants – floated in year 2002
2. Retail Marketing Arm: Ski marketing floated in year 2001.

Armur Consultants Private Limited:

Armur consultant is engaged in insurance broking in corporate insurance markets
and has already aggregated business volumes in excess of Rs. 200 crores ($ 44
million) in premiums. Amour consultant comprises a team of distinguished
professionals from insurance, finance, law and other management discipline, who
have vast business and managerial experience. The company has handled major
claims for renowned clients. There have been several claim cases that were won
even in the arbitration stage. The term at Armur Consultants begins with an in
depth evaluation of the client company’s business environment. The company’
risk profile is then studied. Based on the results of these evaluations. The team
then suggests the most cost effective, integrated insurance package that is
perfectly suited to the company’s risk profile. The company plans to extend its
customer base of the existing 500000 policy holders to cross the 1 million mark
by the end of financial year 2005-06.

SAMPLING:
Sample plan to know the perception of customers in this project is through
personal interview.

SAMPLE UNIT:
I have taken the customers who are owning a truck or (HCV).

SAMPLING METHOD:
I have used Non- probability sampling i.e. Stratified Random Sampling. Sample
size for this project is 100 customers who are truck owners.

RESEARCH DESIGN:
 In this research design of this project the study was conducted by the
survey method.
o Taking sample of 100 customers owning trucks by commencing sampling
using the research instrument as the questionnaire.

o Personal interview is considered as the sample plan.

o For this project area of research is Lakhimpur City.

Primary Education For Village Poor

The trust runs four schools in rural areas at Thiruneermalai, Pallikaranai,

Moovarasampet in Tamil Nadu and in Prakash Nagar, Guntur Dist. In Andhra
Pradesh. Over 2000 children receive free education. Schools offer education up
to class VII and student will progressively move up to higher secondary level.
Future Plans:
1. To start six primary schools for the rural poor in the villages of Andhra
Pradesh.
2. Government of Andhra Pradesh to hand over 3.5 acres of land to SSET in six
districts.
3. Immediate Plans: to start two schools in Cudapah and Guntur districts in June
2005.

Long Term Benefits Of The Program:

1. Reduction in rural indebtedness

2. Bank/institutional credit for investment in income – generation activities.

3. Improved household food security round the year, better nutrition.

4. Improved household income.

5. Empowerment of Women.

6. Greater leverage and status of SHG members in local communities and with
the state.

The Future According To Shriram:

1. To enlarge the scope of micro credit financing activity through NBFC

Shriram Investment Limited.

2. To extend activities to Bihar, Kharkand, and Eastern Uttar Pradesh.

3. To lend credit at low interest rates to 3 lakh women below poverty line in the
next 3 years.
 SUGGETION TO THE COMPANY

 my first suggestion for the company is improve in

working areas.

 And start working in rural area.And second suggestion is

to open some new branches. It increase the capital and
also help for increase in revenue.

BIBLIOGRAPHY
 I. www.Wikipedia.com

II. www.shriramtransportfinance.com

III. www.Timesofindia.com

IV. www.Finpedia.co

DATA COLLECTION METHOD:

I have collected the data from the following sources:

 Interviewing with the owners of trucks
 Internet
 Magazines, Catalogs, etc.

MEASURING TOOLS:

For preparing this project I have considered questionnaire as measuring tool for
collecting the data.

STFC Intrest rate with respect to other finance companies

 Sources Number of customers Percentage
Tata 12 12%
Ashok Leyland 18 18%
STFC 26 26%
HDFC 18 18%
ICICI 14 14%
SBI 12 12%
Total 100 100%
 12% of the respondents rated Tata in the 1st place with other company’s and

 18% of them for Ashok Leyland and HDFC in 2nd place.

 26% of them rated STFC in 3rd place.

 Nearly 14% of them for ICICI in 4th place.

CONCLUSION
 Less than anticipated growth in the face of
intensifying competition and rising costs, can hardly be expected to get the
company foaming. By seeing the observations most of the customers are having
positive perception towards Shriram Transport Finance Company Limited and
are satisfied with their services such as Quick finance, Easy documentation
process etc. The company is progressing continuously in the field of finance as
Non-Banking Finance Company to compete with other Financial as well as Non-
banking financial institutions. STFC is the Non-Banking Financial Company in
the Indian scenario and it is the leader with monopoly position in financing for
Heavy Commercial Vehicles.

Thank you