INDIAN COMMERCIALVEHICLE INDUSTRY

In terms of global scale, the Indian automotive industry is the second largest two-wheeler market in the world, the fourth largest heavy commercial market in the world, and the eleventh largest passenger vehicle market in the world. As one of the largest industrial sectors in India, it contributes nearly 17.0% to total in direct taxes. Although the automotive industry provides direct and indirect employment to over 130 Lac people, the penetration levels for vehicles in India are among the lowest in the world. .The commercial vehicle industry is segmented into light commercial vehicles (for vehicles with gross vehicle weight of less than 7.5 tons) and medium and heavy commercial vehicles (for vehicles weighing more than 7.5 tons). The performance of the medium and heavy commercial vehicle industry bears a high correlation with industrial growth, and is driven by economic development, improved road infrastructure(such as the Golden Quadrilateral) for long haulage transportation, and a favorable regulatory environment(in this regard, demand created in the years 2006-2007 was attributable to the strict enforcement of overloading restrictions and age norms). In turn, the performance of the light commercial vehicle industry tends to be less cyclical in nature, and is driven by GDP growth and demand for last mile distribution. The market share of light commercial vehicles increased rapidly - the introduction of a sub-one ton carrier by certain players created a new segment typically occupied by three-wheelers and similar forms of intra-city transport, resulting in significant growth in the commercial vehicle market as a whole. The commercial vehicle industry has always been linked to the countrys industrial activities and the overall GDP. Post the economic downturn the COMMERCIAL VEHICLE industry posted impressive growth of 36 percent inFY10 and 32 per cent in FY11. The Goods Carrier (GC) segment continues to dominate the COMMERCIAL VEHICLE market with approximate share of 88 per cent in FY11. The domestic market forms 90 per cent of the total commercial vehicle market and remaining is contributed by the exports where the share has been increasing every year. The Commercial Vehicle market is set to experience significant changes primarily with the use of hub and spoke model. By hub and spoke model, it is meant that the freight is generated
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from certain regional cluster which is then transported to various trucking centers or hubs spread across the country, where the goods segregated and transported across the various spokes and finally through these spokes the goods are delivered to the end consumers. It has been witnessed, though there has been a strong volume growth in the l commercial vehicle segment, the tonnage growth has not been in the same line, depicting rising proportion of small commercial vehicles (scommercial vehicle). While in case of hcommercial vehicle, it is other way round, where the growth in tonnage is higher than growth in volume terms indicating rising proportion of heavy commercial vehicles (hcommercial vehicles).The key concerns for the industry continues in the form of rise in interest rates and fuel prices coupled with expected slow down in the growth levels of industrial production would affect transport operatorS business and may curtail the current growth levels in commercial vehicle demand in short term period. .Research believes healthy medium to long term macro-economic outlook coupled with increase in government focus towards development of transport infrastructure would fade away short term concerns. Research believes most of the domestic manufacturers along with their JVs will come out with new launches in multiple segments and use the advance technology to gain market share in this oligopolistic COMMERCIAL VEHICLE market. Research foresees healthy growth of commercial vehicles in the next 5 years, . sales are likely to outpace the medium and heavy commercial vehicles (M&HCOMMERCIAL VEHICLE) sales in terms of units and overall GC segment is estimated to grow at a faster rate as against the passenger carriers (PC) segment. Research has developed a detailed statistical model that attempts to forecast the domestic commercial vehicle sales separately for goods and passenger use. The GC segment sales are forecasted on the basis of GDP growth and thereby the growth in cargo, the existing fleet capacity and its utilization rate, while the PC segment sales are forecasted on the basis of growth in population, the per capita travel depending on the income levels and the split of travel between public and private modes of transport. Other qualitative factors like macro-economic outlook, government actions, consumer confidence, willingness of vehicle financers to finance purchases, actions of OEMs like launches, aggressiveness, sales push techniques, dealer network, etc. have also been quantitatively built in demand forecasting

COMPANY PROFILE
Shriram Commercial Vehicle Finance Company Limited is India's largest player in commercial vehicle finance that was established in the year 1979.The company has a network of 488 branches and service centers. We are one of the largest asset financing NBFCs in India with a niche presence in financing pre-owned trucks and Small Truck Owners (STOs). We 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. 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.

Shriram commercial vehicle finance (STFC) decided to finance the much neglected Small Truck Owner. Shriram understood the power of 'Aspiration' much before marketing based on 'Aspiration' became fashionable. Shriram started lending to the Small Truck Owner to buy new trucks. But we found a mismatch between the Aspiration and Ability. The Truck Operator was honest but the Equity at his command was not sufficient to support the credit levels required to buy a new truck. We did not have the heart to send the Truck Operator back empty handed; we decided to fund Pre-owned Trucks. This was the most momentous decision that we made. What followed was Sheer magic. From Driver to Owner, even if only of a Pre-owned Truck and from Pre-owned Truck to the New Truck, we have been with him in his journey of Prosperity as he has been our partner in our road to success and leadership.

Shriram , credit-worthiness of the Small Truck Owner has always been an article of faith. This faith has guided our journey from our pioneering days in financing Small Truck Owners to the present day leadership. Today we are not only the leader in Truck Finance; we are also India's largest Asset Based Non-Banking Finance Company. The inability of the economists to capture data relating to the economic activity of the informal sector has resulted in its neglect at the policy-making levels in the government. The distribution of Truck Ownership being scattered among a large number of individuals has resulted in this very important group being missed by the institutional radar. It is estimated that 80% of trucks in the country are in the hands of individuals.

JOURNEY OF THE COMPANY The journey has seen us making several innovations while we stood at the very edge of Organized Finance. The Banks and Institutions were guided by the Economists' vision; the Small Truck Owner who always fell on their blind side was given the miss.

With a track record of about 30 years in this business, we are among the leading organized finance provider for the commercial vehicle industry with a focus to provide various credit facilities to STOs. We have also added passenger commercial vehicles, multi-utility vehicles, three wheelers, tractors and construction equipment to our portfolio, making us a diversified, end to end provider of finance solutions to the domestic road logistics industry. Besides financing commercial vehicles (both new and pre-owned) we also extend finance for tyres, engine replacement and working capital. We also provide ancillary services such as freight bill discounting besides offering co-branded credit cards.

Our pan-India presence through our widespread network of branches has helped in our overall growth over the years. As on March 31, 2011 we had 488 branches and tie up over 500 private financiers across the country. As on March 31, 2011 our total employee strength was 16919, including more than 9,830 product executives and credit executives who are colloquially referred to as our field force.

Vision
STFC was set up with the objective of offering the common man a host of products and services that would be helpful to him on his path to prosperity. Over the decades, the company has achieved significant success in reaching this objective, and has created a tremendous sense of loyalty amongst its customers.

Operational efficiency, 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 STFC. These core values are deep-rooted within the organization and have been strongly adhered to over the decades.

STFC prides itself on a perfect understanding of the customer. Each product or service is tailor-made to perfectly suit customer needs. It is this guiding philosophy of putting people first that has brought the company closer to the grassroots, and made it the preferred choice for all the truck financing requirements amongst customers.

Main objects of our Company

The main objects of Company as contained in our Memorandum of Association are: To carry on and undertake business as Financiers and Capitalists, to finance operations of all kinds such as managing, purchasing, selling, hiring, letting on hire and dealing in all kinds of vehicles, motor cars, motor buses, motor lorries, scooters and all other vehicles; To undertake and carry on all operations and transactions in regard to business of any kind in the same way as an individual capitalist may lawfully undertake and carry out and in particular the financing Hire Purchase Contracts relating to vehicles of all kinds; To carry on and undertake business as Financier and Capitalists to finance operations of all kind such as managing, purchasing, selling, hiring, letting on hire and dealing in all kinds of property ,movable or immovable goods, chattels, lands, bullion; To undertake and carry on all operations and transactions in regard to business of any kind in the same manner as an individual capitalist may lawfully undertake and carryout and in particular financing hire purchase contracts relating to property or assets of any description either immovable or movable such as houses, lands, stocks, shares, Government Bonds; To carry on and become engaged in financial, monetary and other business transactions that are usually and commonly carried on by Commercial Financing Houses, Shroffs, Credit Corporations, Merchants, Factory, Trade and General Financiers and Capitalists; To lend, with or without security, deposit or advance money, securities and property to, or with, such persons and on such terms as may seem expedient; To purchase or otherwise acquire all forms of immovable and movable property including Machinery, Equipment, Motor Vehicles, Building, Cinema Houses, Animals and all consumer and Industrial items and to lease or otherwise deal with them in any manner whatsoever including resale thereof, regardless of whether the property purchased, and leased be new and/or used;

 To provide a leasing advisory counselling service to other entities and/or form the leasing arm for other entities; The Company shall either singly or in association with other Bodies Corporate act as Asset Management Company/Manager/Fund Manager in respect of any Scheme of Mutual Fund whether Open-End Scheme or Closed-end Scheme, floated/ to be floated by any Trust/Mutual Fund(whether offshore or on shore)/ Company by providing management of Mutual Fund for both offshore and onshore Mutual Funds, Financial Services Consultancy, exchange of research and analysis on commercial basis; Constitute any trust and to subscribe and act as, and to undertake and carry on the office or offices and duties of trustees, custodian trustees, executors, administrators, liquidators, receivers, treasurers, attorneys, nominees and agents; and to manage the funds of all kinds of trusts and to render periodic advice on investments, finance, taxation and to invest these funds from time to time in various forms of investments including shares, term loans and debentures etc.; Carry on and undertake the business of portfolio investment and Management, for both individuals as well as large Corporate Bodies and/or such other bodies as approved by the Government, in Equity Shares, Preference Shares, Stock, Debentures (both convertible and nonconvertible),Company deposits, bonds, units, loans obligations and securities issued or guaranteed by Indian or Foreign Governments, States, Dominions, Sovereigns, Municipalities or Public Authorities and/or any other Financial Instruments, and to provide a package of Investment/Merchant Banking Services by acting as Managers to Public Issue of securities, to act as underwriters, issue house and to carry on the business of Registrar to Public issue/various investment schemes and to act as Brokers to Public Issue; Without prejudice to the generality of the foregoing to acquire any share, stocks, debentures ,debenture-stock, bonds, units of any Mutual Fund Scheme or any other statutory body including Unit Trust of India, obligations or securities by original subscription, and/or through markets both primary, secondary or otherwise participating in syndicates, tender, purchase, (through any stock exchange, OTC exchange or privately), exchange or otherwise and to subscribe for the same whether or not fully paid up, either conditionally or otherwise, to guarantee the
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subscription thereof and to exercise and to enforce all rights and powers conferred by or incidental to the ownership thereof and to advance deposit or lend money against securities and properties to or with any company, body corporate, firms, person or association or without security and on such terms as may be determined from time to time; To engage in Merchant Banking activities, Venture Capital, acquisitions, amalgamations and all related merchant banking activities including loan syndication; To carry on the business as manufacturers, Exporters, Importers, Contractors, Sub-contractors ,Sellers, Buyers, Lessors or Lessees and Agents for Wind Electric Generators and turbines, Hydroturbines, Thermal Turbines, Solar modules and components and parts including Rotor blades, Braking systems, Tower, Nacelle, Control unit, Generators, etc. and to set up Wind Farms for the company and/or for others either singly or jointly and also to generate, acquire by purchase in bulk, accumulate, sell, distribute and supply electricity and other power (subject to and in accordance with the laws in force from time to time); To carry on business of an investment company or an Investment Trust Company, to undertake and transact trust and agency investment, financial business, financiers and for that purpose to lend or invest money and negotiate loans in any form or manner, to draw, accept, endorse, discount, buy, sell and deal in bills of exchange, hundies, promissory notes and other negotiable instruments and securities and also to issue on commission, to subscribe for, underwrite, take, acquire and hold, sell and exchange and deal in shares, stocks, bonds or debentures or securities of any Government or Public Authority or Company, gold and silver and bullion and to form, promote and subsidise and assist companies, syndicates and partnership to promote and finance industrial enterprises and also to give any guarantees for payment of money or performance of any obligation or undertaking, to give advances, loans and subscribe to the capital of industrial undertakings and to undertake any business transaction or operation commonly carried on or undertaken by capitalists, promoters ,financiers and underwriters; To act as investors, guarantors, underwriters and financiers with the object of financing Industrial Enterprises, to lend or deal with the money either with or without interest or security including in current or deposit account with any bank or banks, other person or persons upon
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such terms, conditions and manner as may from time to time be determined and to receive money on deposit or loan upon such terms and conditions as our Company may approve provided that our Company shall not do any banking business as defined under the Banking Regulations Act, 1949; To carry on in India or elsewhere the business of consultancy services in various fields, such as, general, administrative, commercial, financial, legal, economic, labour and industrial relations, public relations, statistical, accountancy, taxation and other allied services, promoting, enhancing propagating the activity of investment in securities, tendering necessary services related thereto, advising the potential investors on investment activities, acting as brokers, sub-brokers, Investment Consultant and to act as marketing agents, general agents, sub agents for individuals/ bodies corporate/Institutions for marketing of shares, securities, stocks, bonds, fully convertible debentures, partly convertible debentures, Non-convertible debentures, debenture stocks, warrants, certificates, premium notes, mortgages, obligations, inter corporate deposits, call money deposits ,public deposits, commercial papers, general insurance products, life insurance products and other similar instruments whether issued by government, semi government, local authorities, public sector undertakings, companies corporations, co-operative societies, and other similar organizations at national and international levels; To carry on the business of buying, selling of trucks and other COMMERCIAL VEHICLEs and reconditioning, repairing ,remodelling, redesigning of the vehicles and also acting as dealer for the said vehicles, for all the second hand commercial and other vehicles and to carry on the business of buying, selling, importing, exporting, distributing, assembling, repairing and dealing in all types of vehicles including re-conditioned and re-manufactured automobiles, two and three wheelers, tractors, trucks and other vehicles and automobile spares, replacement parts, accessories, tools, implements, tyres and tubes, auto lamps, bulbs, tail light and head light bulbs, assemblies and all other spare parts and accessories as may be required in the automobile industry.

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STRENGTHS AND STRATEGY STRENGTHS: 1. One of the largest asset based NBFCs in India
We are one of the largest asset financing NBFCs in India and primarily focus on financing pre-owned commercial vehicles. We primarily cater to STOs and first time users (FTUs) and we believe we are the only organised player in this segment. As on March 31, 2009, our total AUM was Rs. 23,28,110.65 lakhs (which comprise of AUM in the books of Company of Rs. 17,92,397.14 lakhs, assets securitised / assigned of Rs. 5,31,092.91 lakhs and portfolio managed by the Company of Rs. 4,620.60 lakhs).We have a pan-India presence, and as on March 31, 2009 we had over 6,00,000 customers. We also had a widespread network of 479 branches.

2. Expertise in raising funds from multiple sources

NBFCs in India can raise funds from either retail investors (through fixed deposits and NCDs) or through banks and financial institutions or through securitization of assets. We believe, over the years, we have developed significant expertise in raising funds from multiple resources at competitive rates in the market. Historically, we have relied more on retail borrowings, which formed 68.55% of our borrowings for FY 2005, but with our robust performance and unique business model we have been able to attract funding from banks & financial institutions and through securitization of our assets. As on March 31, 2009 the proportion of companys non-retail borrowing increased from31.45% in FY05 to 84.26 % in FY 09.The brand value of Shriram amongst the retail savers has been cultivating and has lead to development of the retail public savings for the past three decades. Our relationships with nationalized banks/private/foreign banks and institutions and prompt servicing of debt have made most of the leading banks and institutions to lend money to Shriram over the years . As we lend to STOs, our loan portfolio is classified as priority sector lending for banks and institutions, resulting in generation of higher interest spreads in the past few years. We have also been able to raise funding by securitizing our commercial vehicle loan portfolio to fund new originations.

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Over the years, we have been able to source funds from multiple channels like banks & financial institutions, corporates, retail borrowings and through securitization /assignment of our assets. Out of the total borrowings as on March 31, 2009, our outstanding towards banks & financial institutions and corporates were Rs. 16,95,438.13 lakhs and towards retail debt Rs. 3,16,693.03 lakhs. During the year ended March 31, 2009, we have also securitized /assigned our assets aggregating to Rs.3,12,498.40 lakhs. For further details, please refer to the section titled disclosures on financial indebtedness on page 230 of the Prospectus.

3. Unique Business Model

We primarily cater to STOs and FTUs and we believe we are the only organized player providing finance to STOs and FTUs in the pre-owned commercial vehicle finance segment. As the market for commercial vehicle operators is fragmented, we believe our credit evaluation techniques, relationship based approach, extensive branch network and strong valuation skills make our business model unique and sustainable as compared to other financiers. Our business model is entirely based on relationship with STOs across the country. Valuation of the vehicle is done internally and requires deep knowledge and practical experience. This key differentiating skill is very difficult to replicate. Our retail focus and relationship based model has helped us in maintaining our gross and net NPAs levels at 2.14%and 0.83% as at March 31, 2009. We provide finance to pre-owned commercial vehicle operators at relatively lower interest rates as compared to other private financiers, providing an easier repayment schedule to the STOs. Further, in juxtaposition to institutions financing other asset classes, our high net interest margins allow us to provide for NPA, thereby allowing us to maintain higher yields. For FY 2009, our net interest margin and net spread (profit before tax as a ratio to the total assets excluding the assets securitized / assigned and assets under our portfolio management scheme) were 6.99% and 4.44%, respectively.

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4. Our Brand
We believe that the name SHRIRAM is synonymous with the financing of commercial vehicles in India. In view of our focussed approach to grow in the pre-owned commercial vehicle market segment, we undertook a comprehensive retail-branding strategy to enable us to procure low cost resources and satisfactory ratings. This resulted in enhancing our presence in major commercial vehicle markets across India and building a large customer base, helping us enhance our retail reach. Providing simplified procedures, approachable brand, combined with ease of availing finance have helped us become the icon for providing first time finance to SRTOs. This is on account of our relationship based approach as against the information based approach followed by the other finance providers. We transform the un bank able customers who are the first time users into bankable customers by providing finance at the time the customer is unable to get credit from anywhere. This has helped us in making Shriram as the preferred financier for SRTOs and FTUs. Today, as a result of our performance and our brand value, we have been able to raise the funds through almost all available financing resources.

5. Expertise in origination, valuation and collection

We operate on a unique business model to cater to the growing demand of the segment, the cornerstones of which are close monitoring of assets and borrowers through field officers and lead generation through referrals. Our field officers regularly keep in touch with the commercial vehicle operators and visit them every month to collect dues. This helps in building personal relationship with the customer, at the same time enhancing our reach in the periphery of the customer. This was achieved by nurturing a culture of accountability and making our field officers responsible for recovery of the same loan. These relationships not only provided us in generating ready business but also provided us with an asset verification and tracking mechanism. We believe our competencies in loan origination and recovery is difficult to replicate in the short to medium term. Extensive expertise in asset valuation is a pre-requisite for any NBFC providing loans for second hand assets. Over the years, we have developed expertise in valuing pre-owned vehicles, which enables us to determine the loan amount for any
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commercial vehicle purchase. We believe valuation technique of a commercial vehicle is a crucial entry barrier for others seeking to venture in the pre-owned commercial vehicle financing space as vehicle prices vary significantly based on age and working condition.

6. Experienced Management Team

Most of our senior and middle management personnel have vast experience and in-depth industry knowledge and expertise and they would continue to be the principal drivers of our growth and success in all aspects of our businesses. Most of our senior management team has grown with the Company and have an experience of more than 15 years in the Company. We believe that the extensive experience, in-depth industry knowledge and loyalty of our management and professionals provide us with a distinct competitive advantage.

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STRATEGY 1. Partnership with private financiers

As an initiative, we have embarked on tapping local markets through developing partnerships with the private financiers, who dominates the pre-owned commercial vehicle financing market. Such financiers typically have the local knowledge but do not have adequate funds to meet the local demand. We believe that this market has not yet been refinanced by any organised player in the market, restricting the scope and ability of these financiers. Our focus will be on increasing our relationship with these private financiers over a period of time. As on date, we have developed relationships with over 500 private financiers.

2. Innovative Marketing and Sales Initiative

Truck BazarsEvery year we organize marketing initiatives to reach out at large to our customers. As an initiative in this regard ,we conducted truck utsavs a day long program for the commercial vehicle operators and their families up to the year 2008-09. These truck utsavs provided us a platform to interact with and understand our customers and target segments. This marketing initiative enabled us to spread awareness and further develop our relationship with our customers. In continuation of our innovative marketing initiative and to translate our marketing techniques into business opportunity, we have launched Truck Bazars during 2008-09 as an innovative sales strategy. Presently, all the deals in pre-owned commercial vehicle markets are effected through brokers / facilitators who do not allow buyers and sellers to meet depriving them of the actual available opportunities and take informed decisions. Truck Bazar is an initiative to provide a suitable platform for counselling and buying and selling of commercial vehicles on a single platform to create a vibrant used vehicle market and infuse transparency in clearance mechanism. This initiative would not only provide us with repeat customers, but would also help in generating new business.

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3. Expansion of product base

Having proven our leadership in commercial vehicle financing, we are focusing on a continually expanding product portfolio, which now encompasses passenger commercial vehicles, multi-utility vehicles, three-wheelers, tractors, and construction equipments besides the regular commercial vehicles. This enables us to expand our products offering to existing customers and tap newer customers. At the same time, there is an optimum strategic fit between the commercial vehicles financing and some of the downstream products introduced by us - such as tyre loans, engine replacement loans, credit cards and freight bills discounting. Our products are thus with the customers for a longer period of time, across a variety of needs. We also intend to increase our products offering by leveraging our pan-India presence and strong brand loyalty among existing customers. Over the years, we have funded customers who were perceived to be risky by banks and other large NBFCs. At the same time, we have ensured that our write offs / credit losses remain at a minimal level, through our robust processes and relationships. With the increased product portfolio, we intend to further add new customers and also leverage our existing customer base to cross sell these additional products.

4. Geographic Expansion
We have created a niche market in terms of the asset profile and customer profile in the commercial vehicle financing business. We have consolidated the market space and at the same time have tried to reach out to new locations with our partnership model and opening up of new branches. With our pan-India presence and extensive branch network, we plan to penetrate the major commercial vehicle markets by using the local domain knowledge and forming partnerships with the unorganized local primary financiers, to extend these private financiers with finance and exploit their potential to generate new customers.

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5. Continue to Implement advanced processes and systems

Over a period of time, we have invested in our systems and processes to create a stronger organization and ensure good credit quality. Our information technology strategy is designed to increase our operational and managerial efficiency .Our aim is to retain customers through meeting customer requirements on a real-time basis. Relying on advanced technology, we are also in the process of implementing technology led processing systems to make our appraisal and collection processes more efficient and at the same time ensure a better quality and rapid delivery of credit tour customers through these systems which allow us to augment the benefits of our relationship based approach .Simultaneously, build on our capability to respond to market opportunities and challenges swiftly, improve the quality of services to our customers, and improve our risk management capabilities.

6. Foray into equipment financing

We are also planning to venture into the equipment financing business with a focus on retail borrowers.

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SHRIRAM TRANSPORT FINANCE COMPANY LIMITED FAIR PRACTICES CODE INTRODUCTION

RBI has drafted the guidelines on Fair Practices Code for Non Banking Finance Companies which sets the fair practices standards when dealing with individual customers and to serve as a part of best corporate practice. It is, and shall be, our policy to make loan products available to all qualified applicants without discrimination on the basis of race, caste, color, religion, sex, marital status or handicap. Our policy is to treat all the customers consistently and fairly. Our employees will offer assistance, encouragement and service in a fair, equitable and consistent manner. We will also communicate our Fair Practices Code to our customers by placing it on the company's website. We shall ensure that charges / fees are appropriately informed to the borrower. Terms and conditions pertaining to the facility will be conveyed to the prospective borrowers. We commit that disputes arising out of the lending decisions will be appropriately resolved by a grievance redressal mechanism set up by us. The Company's Fair lending practices shall apply across all aspects of our operations including marketing, loan origination, processing, servicing and collection activities. Our commitment to Fair Practice Code would be demonstrated in terms of employee accountability, monitoring and auditing programs, training and technology. The Company's Board of Directors and the management Team is responsible for establishing practices designed to ensure that our operations reflect our strong commitment to fair lending and that all employees are aware of that commitment. Shriram Transport Finance Company Limited is committed to providing service of the highest quality to its clients. This Fair Practices Code applies to the all categories of products and services offered by us (currently offered or which may be introduced at a future date)

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The Fair Practices Code is applicable to the above irrespective of whether the same is provided at the Branch, over the phone, on the Internet or by any other method we may be currently using or may introduce at a future date.

KEY COMMITMENTS 1) Applications for loans and their processing

(a) Loan application forms will include necessary information, which affects the interest of the borrower, so that a meaningful comparison with the terms and conditions offered by other NBFCs can be made and informed decision can be taken by the borrower. The loan application form will indicate the documents required to be submitted with the application form. (b) The company will devise a system of giving acknowledgement for receipt of all loan applications. Preferably, the time frame within which loan applications will be disposed of will also be indicated in the acknowledgement. (c) Loan Application form will clearly state the information that the company requires to collect from the customer to fulfil the KYC norms and to comply with legal and regulatory requirements. We may request for additional information about the customer and his / her family to build a database; but this information is furnished by the customer only if she / he wishes to do so

2) Loan appraisal and terms/conditions

The company will convey in writing to the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions including annualized rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.

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3) Disbursement of loans including changes in terms and conditions

(a) The company will give notice to the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. We will also ensure that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard will be incorporated in the loan agreement. (b) Decision to recall / accelerate payment or performance under the agreement will be in consonance with the loan agreement. (c) The company will release all securities on repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim company may have against borrower. If such right of set off is to be exercised, the borrower will be given notice about the same with full particulars about the remaining claims and the conditions under which company is entitled to retain the securities till the relevant claim is settled/paid.

4) Confidentiality
(a) Unless authorized by the customer we will treat all personal information as private and confidential (b) Unless authorized by the customer, we will not reveal transaction details to any other entity including other than the following exceptional cases: If we have to provide the information by statutory or regulatory laws If there is a duty to the public to reveal this information If our interest requires us to provide this information (e.g. fraud prevention) to Financial Institutions / Our Group and Associate Companies. We will not use this reason for giving information about customers to anyone else for marketing purposes. Banks /

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5) General (a) The company will refrain from interference in the affairs of the borrower except for the
purposes provided in the terms and conditions of the loan agreement (unless new information, not earlier disclosed by the borrower, has come to the notice of the lender). (b) In case of receipt of request from the borrower for transfer of borrowal account, the consent or otherwise i.e. objection of the company, if any, will be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per transparent contractual terms in consonance with law. (c) In the matter of recovery of loans, the company will not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans, etc,.

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PRODUCT PROFILE
1.TRUCK FINANCE

1. Shriram Truck Financing Companies. The wheels of progress. 2. Largest NBFC in the country exclusively engaged in financing of heavy commercial vehicles. 3. Monopoly position in financing of used vehicles. 4. All India presence with a branch network of 488 offices and employing over 16919 people. 5. Growing at the rate of 30% per annum. 6. Funds managed Rs 6000 crores. 7. Equity investors - Citicorp,, UTI Banks, Reliance Capital and FMO Netherlands have added tremendous value and strength. 8. 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

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THE GROUP COMPANIES ATHAT CATER TO TRUCK DIFFERENT PARTS OF THE COUNTRY ARE

FINANCING NEEDS A

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 citi group 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. 2.CONSUMER FINANCE:We entered the consumer Durable Finance Business business in early 2002. through Shriram City Union Finance Ltd. The consumer arm of the group. Within a short span o 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. 3.CHIT FUNDS:Shriram chits prosperity 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
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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 Maharastra, where has a reputation for timely disbursement of funds and excellent customer services which different tiates it from other companies. Using state of the art computer systems/networks and a transparent accounting system, Shriram Chits have transformed this contemporary mehod of savings into an attractive personalised to banking system. 4.GENERAL INSURANCE:Shriram group has adopted a two strategy in this segment. 1. Broking arm Armour Consultants floated in year 2002 2. Retail Marketing Arm: Ski Marketing flotred in year 2001.

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ARMUR CONSULTANTS PRIVATE LIMITED : INSURANCE EXPERTS AT YOUR SERVICE Amour 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 tern at Armun Consultants begins with an in depth evaluation of the client companys business environment. The company risk profile is then studied. Based on the results of these evaluations. The team then suggests the most cist effective, integrated insurance package that is perfectly suited to the companys 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 200506. 5.LIFE INSURANCE:The shriram group plans to enter the life insurance segment 05. Am application has already been filed with the IRDA for the same. We are also exploring the possibilities of collaborating with a foreign partner in this venture. We expect to be a major player in this very fast growing sector, as a natural corollary of business philosophy and expertise. 6.STOCK BROKING:Our stock broking arm operates under the insight share Brokers Pvt. Ltd. It is a member of the National Stock Exchange , India and the Multi Commodity Exchange. This unit has expended the network by 150% over the last year and today it has more than 230 terminals spread across the length and breadth of the country. It has a retail customer base of around 50000. The company launched its new products like Derivatives and commodity Trading in early 2004.

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A QUICK LOOK AT SOME OF THE SALIENT FEATURES Limits of all clients are fixed at a pre-calculated level. This is benefical to them in the long run as it prevents overtrading. Atimely payments and direct share transfer facility from NSE. Adequate risk control research support. The clincher. Proactivate and preventive risk control.

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PRODUCTS OF SHRIRAM COMMERCIAL VECHILE FINANCE MAIN PRODUCTS:

Commercial Vehicle Finance Passenger Commercial Vehicle Finance Multi Utility Vehicle Finance Three wheeler Finance Tractor Finance Construction Equipment Finance

OTHER PRODUCTS:

Tyre Loan Engine Replacement Loan Working Capital Loan Co-Branded Credit Card Freight bill discounting

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

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BUSINESS OVERVIEW
Area of operation

All India

Branch Offices

488

Employees

16919

Customers

1.5 million

Agency Force

15,000 plus Resident Representatives -1300

Assets under Management (as at 31st March Rs. 36086 crores ($8.02 bilion 11) Net worth (as at 31st March 10)

Rs. 4161 crores ($924 million)

Stock Exchange Listing

- Bombay, Madras and The National Stock Exchanges

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MANAGEMENT TEAM
Arun Duggal R.Sridhar Adit Jain S.Venkatakrishnan Maya Shanker Verma Mukund Manohar Chitale Puneet Bhatia Ranvir Dewan Sumatiprasad M. Bafna S.Lakshminarayanan Director (Chairman) (Managing Director) Director Director Director Director Director Director Director

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LITERATURE REVIEW
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, hearing. The process by which we select , organise 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 customers 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.

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Customer Perception Audits:

Every time you lose a customer, theres 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 customers 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, Singapore etc. have already

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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. fit everything else is overhead!. 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 word-of- 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 expections of what the next experience will probably be like.

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STATEMENT OF THE PROBLEM:-

The present day market is flooded with a variety of Non- banking and as well as banking financial institutions as many as if not more than companies like Shriram Commercial Finance Company, Tata Finance, Sundaram finance etc. are marketing their products.

Time has become talk of the town therefore the customers give utmost priority to those financial institutions which gives loans at lower rate of interest, quick loans, documentation, percentage of finance etc. which have been exerting influence on the playing decision of the consumer.

The Shriram Commercial Vehicle Finance Company is the largest NBFC (Non Banking Financial Corporation) in the country exclusively engaged in financing for heavy commercial vehicles (h commercial vehicle) perhaps it is the only company rendering better performance

from a long period of time with the presence of all these factors. The Shriram Commercial Vehicle Finance Company is making sales as hotcake.

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METHODOLOGY: Objectives: 1.To understand the commercial vehicle financing process. 2. To know the customers perception towards to Shriram Commercial Vehicle Finance. Primary Data: Primary data is to be collected with the help of questionaries. Secondary Data: Secondary data is collected from company website www.stfc.in

Limitations: The study is confined only to a small segment 100 samples of the entire population due to monetary and time constriants

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INTRODUCTION TO COMMERCIAL VEHICLE FINANCING

Like any other Financial products, sales of giving finance is largely dependent on how well company plans out their marketing strategies which helps to increase visibility and build a distinct brand image. Looking at the intense competition it is become very necessary for company to make a name for themselves in consumers mind. So the opinion of customers play an important role in making marketing strategies. Hence this study will provide the company to what customers perceive about STFC. It will also help to find out the brand image of STFC in the minds of customers. 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 fine-tune 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 economys barometer, have had a good start for the year.

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COMMERCIAL VEHICLE It is the funding of products include, trucks, buses, tippers, light commercial vehicles, pick ups, 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 highinterest 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.

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FARM EQUIPMENT LOANS Farm equipment loan has also a big chunk in the vehicle finance. Eligibility :Agricultural 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 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 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.

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Documentation: Agricultural use Application form with photograph of the customer and all co applicants and/or guarantor. Performa Invoice of the asset to be funded from an authorized dealer. Land records of the borrower/s. Land valuation and title search report of the land. Residence proof of the borrower/s. Identity proof of the borrower/s. Signature verification of the borrower/s. Loan agreement, duly signed by the applicants and guarantor. 2 SPDCs(Security Post Dated Cheques) for entire tenure.

Commercial Use Application form with photograph of the customer and all co applicants and/or guarantor. Proforma Invoice of the asset to be funded from an authorized dealer. Proof of Income (any of the following) : Billing statement for the past one year Latest Income tax Return Last 6 months bank statement Residence proof of the borrower/s.
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Identity proof of the borrower/s. Signature verification of the borrower/s. Loan agreement, duly signed by the applicants and guarantor. 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.

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TWO WHEELERS: 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. Eligibility Criteria: 1. 2. 3. 4. 5. 6. Salaried Individuals Self Employed Individuals Pensioners, Housewives & Students Partnership Entities Private Limited Companies Public Limited Companies

Interest rates: Interest rate is charged on a monthly reducing balance . Documents: Identity Proofs Residence Proof Income Proof Post Dated Cheques Copy of Credit Card CC billing statement Bank passbook/Statement No objection Certificate
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ANALYSIS AND INTERPRETATION

42

1) Do you have Commercial Vehicle?

Number of customers Yes No Total 100 Nil 100 Percentage 100% Nil 100%

Diagram-3.1
100 100 80 60 Percent 40 20 0 Yes Responses Yes No No 0

Interpretation:
The above diagram express that Almost all respondents are owning Commercial Vehicle. The same information is presented in the form of diagrammatically above.

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2.Source of finance for your Commercial Vehicle?

Sources Co-op banks STFC Tata finance Others Total Number of customers 4 61 19 16 100% Percentage 4% 61% 19% 16% 100%

Diagram-3.2
70 60 50 40 30 20 10 0 61

Percent

19 4 Co-op banks STFC Tata finance Responses Co-op banks STFC Tata finance Others

16

Others

Interpretation:
The above chart showing the detials that 61% respondents have taken loan from . Shriram Commercial Vehicle Finance.19% respondents have taken loan from tata finance and 4% from co-op banks.While remaining 16% have taken from other finance companys.4% co-operative banks

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3. Are you aware of Shriram Commercial Vehicle Finance?

Number of customers Yes No Total 100 Nil 100 Percentage 100% Nil 100%

Diagram-3.3
100 80 60 Percent 40 20 0 Yes No Responses Yes No

100

S1

Interpretation:
The above chart shows that almost all respondents are aware of Shriram Commercial Vehicle Finance .

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4) How did you come to know about this company

Sources Friends Customers Advertisements Others Total Number of customers 38 24 32 6 100 Percentage 38% 24% 32% 6% 100%

Diagram-3.4
40 35 30 Percent 25 20 15 10 5 0 38 32 24

Friends

Agents

Advertisements

Others

Responses Friends Agents Advertisements Others

Interpretation:
The above chart explain that 38% respondents have bought finance from STFC on the advice of their friends. 24% will seek the advice of agents. While 6% from others and 32% on the basis of Advertisements.

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5. Do you get the finance quickly from Shriram Commercial Vehicle Finance?
Number of customers Yes No Total 84 16 100 Percentage 84% 16% 100%

Diagram-3.5
No 16%

Yes 84% Yes No

Interpretation:
In the above chart showing the details 84% respondents are in favour of quick finance availability from Shriram Commercial Vehicle Finance.While remaining 16% of them are not in favour of quick finance.The same information is presented in the form of diagrammatically.

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6. Are you satisfied with the documentation process at Shriram Commercial Vehicle Finance?
Sources Highly Satisfied Satisfied Neither satisfied/dissatisfied Dis-Satisfied Highly dis-Satisfied Total 14 2 100 14% 2% 100% Number of customers 28 42 14 Percentage 28% 42% 14%

Diagram-3.6
50 40 Pecent 30 20 10 0 Highly Satisfied Satisfied Neither Dis-Satisfied satisfied/dissatisfied 42 28 14 14 2 Highly disSatisfied

Responses Highly Satisfied Satisfied Neither satisfied /dis-satisfied Dis-Satisfied Highly dis-Satisfied

Interpretation:
In the above chart showing the details 28% of the respondents are Highly Satisfied with the documentation process at STFC , 42% of the respondents are Satisfied and from the analysis 14% of them are Neither satisfied/dis-satisfied .Nearly 14% of the respondents are dis-Satisfied and 2% of them are Highly dis-Satisfied .
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7.What do you feel about the interest rates at Shriram Commercial Vehicle Finance .?
Number of customers Yes No Total 28 72 100 Percentage 28% 72% 100%

Diagram-3.7

Yes 28%

No 72%

Yes

No

Interpretation:
In the above chart showing that 28% of the respondents require changes in documentation process at . Shriram Commercial Vehicle Finance .While 72% of the respondents are Satisfied with the documentation process at STFC .

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8.Are you satisfied by the percentage of finance provided by Shriram Commercial

Vehicle Finance?

Number of customers Yes No Total 88 12 100

Percentage 88% 12% 100%

Diagram-3.9

No 12%

Yes No

Yes 88%

Interpretation:
In that above diagram 88% of the respondents are Satisfied with Percentage of finance given by . Shriram Commercial Vehicle Finance .While 12% of them are not Satisfied .

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9.What are the features that attracted you to borrow loan from Shriram Commercial Vehicle Finance?
Sources Low interest rates Easy documentation Quick finance Low EMI Total Number of customers 6 10 84 Nil 100 Percentage 6% 10% 84% Nil 100%

Diagram 3.11
100 Percent 80 60 40 20 0 84

6 Low interest rates

10 documentatio Easy n Quick finance

0 Low EMI

Responses Low interest rates Easy documentation Quick finance Low EMI

Interpretation:
The above chart explain that 84% of the respondents are attracted by quick finance. 10% of the respondents for easy documentation. While remaining 6% for low interest rates.

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10.How do you rate Shriram Commercial Vehicle Finance with respect to other finance companies
( 1 being highest and 6 being lowest) Sources Tate Ashok Leyland STFC HDFC ICICI SBI Total Number of customers 12 18 26 18 14 12 100 Percentage 12% 18% 26% 18% 14% 12% 100%

Diagram-3.12
30 25 20 Percent 15 10 5 0 26 18 12 18 14 12

Tata

Ashok Leyland

STFC

HDFC

ICICI

SBI

Responses Tata Ashok Leyland STFC HDFC ICICI SBI

Interpretation:
In the above chart12% of the respondents rated Tata in the 1st place with other companys 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.
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11. Are your queries cleared quickly?

Number of customers Yes No Total 82 18 100 Percentage 82% 18% 100%

Diagram-3.14

No 18%

Yes 82%

Yes

No

Interpretation:
In the above chart 82% of the respondents are in favour that their enquiries are cleared quickly at . Shriram Commercial Vehicle Finance .While remaining 18% of them are telling their queries are not cleared quickly.

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12.Are you satisfied with the repayment system of Shriram Commercial Vehicle Finance?
Number of customers Yes No Total 64 36 100 Percentage 64% 36% 100%

Diagram-3.15

No 36%

Yes 64%

Yes

No

Interpretation:
The above chart explain that 64% of the respondents are Satisfied with repayment system at Shriram Commercial Vehicle Finance. While remaining 36% of them requires changes in repayment system.

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13. Do you recommend Shriram Commercial Vehicle Finance to others?

Number of customers Yes No Total 68 32 100

Percentage 68% 32% 100%

Diagram -3.16
No 32%

Yes 68%

Yes

No

Interpretation:
In the above chart 68% of the respondents are in favour of recommending Shriram Commercial Vehicle Finance to others for taking loan.While remaining 32% of them are not in favour of recommending to others.

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14. Do you intend to take finance in near future from Shriram Commercial Vehicle Finance?

Number of customers Yes No Total 60 40 100

Percentage 60% 40% 100%

Diagram-3.17

No 40% Yes 60%

Yes

No

Interpretation:
The above chart explain that 60% of the respondents wants to take finance in near future from Shriram Commercial Vehicle Finance. While remaining 40% of them are not in favour of taking finance from Shriram Commercial Vehicle Finance.

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Findings: Shriram Commercial Vehicle Finance is a ndia's largest player in commercial vehicle financing Different Sources are available for commercial vehicle financing major in the market. All most all people have good perception and aware about the Shriram Commercial Vehicle Finance Existing Customers of the company most influence on others while selecting the source of finance Shriram Commercial Vehicle Finance provide the loans quickly to the customers Documentation process at Shriram Commercial Vehicle Finance less compare to other and satisfied customers Customers are satisfied about interest rate and percentage of finance provided by the Shriram Commercial Vehicle finance. Quick Finance is one of the most important factor in selecting the source of finance.

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Suggestions: The firm should tap the un-tapped locations & market. This will help them in increasing the business. Rural places are advised The Shriram Commercial Vehicle Finance should maintain consistency in customer satisfaction level in future also. The Shriram Commercial Vehicle Finance should increase their seizing period from 3 months to 4 months during slack season if the customers fails to pay their instalments The brand awareness campaigns should be conducted. The firm should work on its Advertisements

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CONCLUSION

Less than anticipated growth in the face of intensifying competition and rising costs, can hardly be expected to get the company forming.

By seeing the observations most of the customers are having positive perception towards Shriram Commercial Vehicle Finance Limited and are satisfied with their services such as Quick finance, Easy documentation process etc. The company is progressing continously in the field of finance as Non-Banking Finance Company to compete with other Financial as well as Nonbanking financial institutions.

Shriram Commercial Vehicle Finance is the Non-Banking Financial Company in the Indian scenario and it is the leader with monopoly position in financing for Heavy Commercial Vehicles.

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BIBILOGRAPHY www.stfc.in

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Questionnaires
Dear Sir/Madam, I am pleased to introduce myself as MBA student of Global Business School Hubli . As a part of my curriculum I am conducting a survey on the Perception of customers towards Shri Ram Transport Finance Company Limited . Name: _______________________________________________________ Address: _______________________________________________________ 1.Do you a have Commercial Vehicle? Yes [ ] No [ ]

2. Source of finance for your Commercial Vehicle ? Co-op banks [ ] STFC [ ] Tata finance [ ] Others [ ]

3. Are you aware of Shriram Commercial Vehicle Finance? Yes [ ] No [ ]

4. How did you come to know about this company? Friends [ ] Agents [ ] Self experience [ ] Others [ ]

5. Do you get the finance quickly from Shriram Commercial Vehicle Finance.? Yes [ ] No [ ]

6. Are you satisfied with the documentation process at Shriram Commercial Vehicle Finance? Strongly dis- satisfied [ ] Satisfied [ ] Dis-satisfied [ ] Strongly Satisfied [ ]

7.What do you feel about the interest rates at Shriram Commercial Vehicle Finance? Very High [ ] High [ ] Moderate [ ] Low [ ]
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8. Are you satisfied by the percentage of finance provided by Shriram Commercial Vehicle Finance? Yes [ ] NO[ ].

9. What are the features that attracted you to borrow loan from STFC? Low interest rates [ ] Easy documentation [ ] Quick finance [ ] Low EMI [ ]

10. How do you rate Shriram Commercial Vehicle Finance with respect to other finance companies ( 1 being highest and 6 being lowest)/ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ]

11. Are your queries cleared quickly? Yes [ ] No [ ]

12. Are you satisfied with the repayment system of Shriram Commercial Vehicle Finance? Yes [ ] No [ ]

13. Do you recommend Shriram Commercial Vehicle Finance to others? Yes [ ] No [ ]

14. Do you intend to take finance in near future from Shriram Commercial Vehicle Finance? Yes [ ] No [ ]

Thank You

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