Sundaram Finance

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A STUDY ON PERFORMANCE OF NBFCs ENGAGED IN THE LEASING BUSINESS WITH SPECIAL REFERENCE TO SUNDARAM FINANCE LIMITED, CHENNAI. By R. BHARGAVI (41502631018) Of SRM ENGINEERING COLLEGE A PROJECT REPORT Submitted to the FACULTY OF MECHANICAL ENGINEERING In partial fulfillment of the requirements For the award of the degree Of MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY CHENNAI 600 025 JUNE, 2004

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BONAFIDE CERTIFICATE Certified that this project report titled A STUDY ON PERFORMANCE OF NBFCs ENGAGED IN LEASING BUSINESS WITH SPECIAL REFERNCE TO Ms.

SUNDARAM FINANCE LIMITED, CHENNAI is the bonafide work of

R. Bhargavi who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project or dissertation on the basis of which degree or award was conferred on an earlier occasion on this or any other candidate. Place : Date : Signature of the HOD ABSTRACT The project was undertaken at the Sundaram Finance Limited, Chennai focusing on studying the performance of the major players of NBFCs engaged in the leasing business. In the current scenario the leasing activities have come down and this project was under taken to study the impact of leasing activities on the NBFCs, which are already engaged in the same. It was possible to get the required details only from five companies which are playing an important role in the South Indian leasing industry, because of which the scope is restricted to only five of the companies engaged in this industry. The methodology used includes index analysis on the comparative financial statement of Sundaram Finance Limited; common size analysis is as well being used for a better analysis of the proportions. Ratio analysis of individual company separately as well as comparing them with the industry average is used to do support the analysis. Some of the important financial ratios were calculated for this purpose. The index method and time series analysis are used on the financial statements of the Sundaram Finance Limited in order to analyse the trend that is followed during the past five years of the company. The comparative analysis is done on the sample of five companies that play a dominant role in the NBFC industry of South Indian market.

Signature of the Project Guide

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It was found from the analysis that all the companies taken for consideration had been performing well except Tata Finance Limited. Though these companies had faced recession during the period 2000-01, they had revived or in the revival stage currently. Even in such a situation the companies had recorded a better performance because of the fact that they have diversified their activities. The main reasons that had contributed to the down fall of leasing industry is that the capital intensive industry which required huge plants and machineries are hit badly with recession affecting the industry for consecutive fifth year. The other reason is that the companies started to mobilize funds through loans and capital issues for the purpose of procuring the assets required. The availability of fund through foreign investments and other tie-ups with the MNCs help the companies in doing the same. Thus this project throws light on all important aspects related to leasing industry and the companies involved in this industry and an overview of the performance of some of the companies engaged in leasing business. ACKNOWLEDGEMENT I acknowledge with a great sense of attitude, the unstinted cooperation extended to me by Dr. Jayashree Suresh, HOD, Prof. T.P. Nagesh and Mr. K. Sadasivan,

my project guides of S.R.M. School Of Management Studies, Kattankulathur, for their support in doing this project successfully. I am very grateful to Mr. S. Mahadevan, Deputy General Manager (Personnel & Admn) to give me this opportunity to do my project at Finance Limited, Chennai. I extend my heartfelt thanks to Sundaram Mr....
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