PROJECT REPORT

AT CITI FINANCIAL NS-3, AD-BLOCK, SHALIMAR BAGH, NEW DELHI-110088 A Project Report Submitted in partial fulfillment of the requirements For the award of the degree of

Bachelor of Business Administration (Industry Integrated) To Madurai Kamaraj University, Madurai By ANKUR RASTOGI Reg No. - A7371805
Under the guidance of Ms. Gunjan A Rana

RAI BUSINESS SCHOOL, A-41, MATHURA ROAD, NEW DELHI

JUNE 2008
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PROJECT REPORT ON
COST CUTTING &

FRAUD CONTROLLING OF CITI FINANCIAL

BY ANKUR RASTOGI RAI BUSINESS SCHOOL, A-41, MATHURA ROAD, NEW DELHI Corporate Guide: Mr. JAYVIJAY SINGH, ASSISTANT MANAGER, (PERSONAL LOAN DEPARTMENT) CITI FINANCIAL, DELHI

CITI FINANCIAL
MADURAI KAMARAJ UNIVERSITY
RAI BUSINESS SCHOOL

Guidance of:
Ms. Gunjan A Rana

Submitted by:
Ankur Rastogi B.B.A II SEM (INDUSTRY INTEGRATED) 21.06.08

STUDENTS DECLARATION

I hereby declare that the training Report conducted at CITI FINANCIAL, DELHI Under the guidance Ms. Gunjan A Rana

Submitted in partial fulfillment of the requirement for the Degree of BACHELOR OF BUSINESS ADMINISTRATION (Industry integrated)

TO MADHURAI KAMARAJ UNIVERSITY, MADURAI.

Is my original work and the same has not been submitted for the award of any other degree/diploma/fellowship or other similar titles or prizes.

Place: DELHI Date: 21.06.2008

Ankur Rastogi Reg. No. A7371805

Acknowledgement

The project reports bears the imprint of those who had rendered their whole hearted support and encouragement without whose help this effort would be in vain. I express my sincere thanks to Mr. Jayvijay Singh, Assistant Manager, (Personal Loan Department) for giving me an opportunity to undertake the project work in CitiFinancial. I express my deep sense of gratitude and sincere thanks to my project guide Mr. Naresh, Computer Program Assistant, Ms. Kokil , Computer Program Assistant, for her direction ,suggestion, and information provided which were of utmost importance for the successful completion of the project. I also take the opportunity to thank all the members and staff of CitiFinancial for assisting me in the timely completion of my project

Training Objective To gain the experience about a multinational company. To be the part the company. To become familiar with the corporate culture & attributes. To gain knowledge about the company philosophy. To gain practical experience in applying theoretical knowledge. To gain knowledge about areas the company works for. To have interaction with people at different level in the company. To gain knowledge about the detailed working of Finance, Accounts, Secretarial Department of the company. To interact with legal department of the company. Identify ways a financial statement impacts my company. How to undertake trend analysis and to compare against planned performance.

History of CITI FINANCIAL Since 1912, CitiFinancial has been helping people realize their financial goals and dreams. They are in each province and in the Yukon Territory with more than 300 branches across Canada. They are part of the communities in which they serve. Their branches are staffed with friendly, knowledgeable people who live and work right in our neighborhood. They understand our needs and can tailor a loan solution for just about every situation. A Pioneering Beginning They started in the U.S. when Alexander Duncan founded Commercial Credit in 1912. This company was a pioneer in the consumer finance industry. In 1916, they offered an installment loan program to help people purchase what was then an exciting new invention - the automobile. That led to the development of installment buying plans for home appliances and other consumer goods. Growing with America In the next decades, they acquired a major credit insurer and a casualty insurance company. In 1944, they organized an insurance unit that later became American Health & Life Insurance Company. In 1968, Commercial Credit became a wholly owned subsidiary of Control Data Corporation. Going Public Wall Street legend Sanford I. Weill assumed control of the operations of Commercial Credit in 1986 and took the company public. Within two years, the company acquired Primerica Corporation, the parent company of several investment, financial services and insurance firms, including the well-known Smith Barney. Joining the Travelers Group In 1992, Primerica purchased 27% of Travelers Insurance, a company with one of the most recognizable logos in the U.S. - the red umbrella. Less than a year later, Primerica purchased the remaining 73% of Travelers, which later adopted the name Travelers Group. In subsequent years, Travelers Group acquired Shearson-Lehman's retail brokerage, Aetna's property and casualty business, Security Pacific Financial Services, and Salomon Brothers, creating the nation's third largest investment house - Salomon Smith Barney.

The Creation of Citigroup

In 1998, Travelers Group merged with banking powerhouse Citicorp to create Citigroup, a global financial services company serving 20 million customers worldwide. Citigroup's businesses include asset management, banking, credit and charge cards, insurance, investments, investment banking and trading. An International Company with a New Name In 1999, Citigroup purchased 128 offices of Texas-based Associates First Capital, giving us more than 1,400 offices in 45 states. They then turned their focus to Canada, buying Associates First Capital offices there. In September of that year, they changed their name to CitiFinancial to proudly recognize their affiliation with their parent company and to better reflect what they do today. In November 2000, they continued their growth with the acquisition of The Associates. As part of Citigroup, they continue to provide us with a full range of exceptional products and services to help us find a financial solution that's right for us. Citigroup is the world's most global financial services company whose other subsidiaries include: Citibank, Travelers Life & Annuity, Smith Barney and Primerica. Community Involvement/Activities Because CitiFinancial team members live and work in the neighborhoods they serve, they believe in actively participating in the community. They are committed to the betterment of the local areas in which they do business. The CitiFinancial Local Contributions Program is designed to help CitiFinancial branches contribute to not-for-profit charitable organizations. They do this through grants made available through the Citigroup Foundation. The primary focus of the Citigroup Foundation is on education and community development. However, the Foundation also supports the Arts and other cultural projects. Financial Education They support financial education because they believe access to investment products and capital can raise the quality of life for individuals and families and strengthen communities around the world. But capital must be used responsibly and wisely, and a good financial education can help people make the most of their money. The Foundation provides grants for financial education programs in three areas -- Personal, Small Business, and Institutional -- that: Lead to the development of assets that can help increase family stability and encourage better consumer habits Deliver economic and financial education to young people to help them learn how to create wealth, set financial goals and make informed financial choices

Improve how entrepreneurs save, borrow and invest in their enterprises Build the capacity of nonprofits by offering training on financial management Offer university training to future leaders that increase their understanding of and ability to manage complex financial issues Educating the Next Generation The Foundation seeks to improve educational opportunities in low-income communities that will better prepare the next generation for life-long learning and the workforce. In early childhood and primary and secondary education, grants support early literacy development, technology-based curriculum resources, and career and college preparation programs. The Foundation provides grants for teacher training and innovative teaching strategies that increase student achievement. Programs that enhance learning by integrating the arts into school curricula and increase student access to leading cultural institutions are also funded. In higher education, grants are made to improve student and curriculum development for graduate and undergraduate business programs. The Foundation also provides scholarships to increase access to higher education and to provide more opportunities for women and minorities in the workplace Building Communities and Entrepreneurs Grants are made to reinforce community-led efforts to revitalize low-income neighborhoods in Citigroup communities worldwide. The Foundation seeks to support community development corporations, intermediary organizations and community development financial institutions that focus on affordable housing, economic development, welfare-to-work initiatives, community infrastructure improvements, and environmentally sustainable growth of local economies. Grants are also made to support community-based health and human services programs and disaster relief efforts. Applications for the following will not be accepted: a. b. c. d. e. f. Capital or endowment campaigns General organizational support Religious purpose Political or labor organizations Advertising special events, dinners Fundraising activities

PRODUCT AND SERVICES OF CITIFINANCIAL CitiFinancial believes in "getting personal." Their goal is to understand customers needs and help customer find the best solution. Decisions are made locally by their more than 13,000 CitiFinancial team members in North America who live and work in the cities and towns they serve. No matter how big customers dream is, CitiFinancial wants to help customer find an affordable solution to help customer realize it!

CitiFinancial provides fast and affordable financing for almost every need. If life were always predictable, managing everything including finances would be a lot easier. Whether customer need a loan to consolidate customers monthly debts, funding for a home improvement project, cash for emergency repairs or money for a vacation, call or visit customers local CitiFinancial branch. Chances are we may have a personal loan to fit your budget. If customer needs a line of credit or an installment loan, theyll help customer decide whats right for customer. PRODUCT 1. PERSONAL LOAN CitiFinancial Personal Loans may help customer afford, what customer want most! CitiFinancial has many success stories from people who have used their personal loans to make a difference in their lives. They call it their Balance customer Budget approach to lending. They know customer work hard for their money and juggling expenses isnt always easy. Thats why CitiFinancial Personal Loans are perfect for customer with rates, terms, and payments tailored to fit their needs and their budget! Who can qualify? If customer is over age 18*, and have established credit, customer could be approved for a loan. Some established credit, like a store credit card, is necessary and employment or other steady income is required. At this time, CitiFinancial Personal Loans are not available for business purposes. CitiFinancial specialty is extending credit for personal, family and household purposes.

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It's Easy to Apply CitiFinancial terms and payments are convenient for customer needs. Just apply now on- line, call their toll-free number 1-800-995-2274 (between 9:00 a.m. and 6:00 p.m. Monday to Friday) or stop by customer neighborhood branch. Their customer service representatives will be happy to help customer. 14-Day Guarantee As a CitiFinancial customer, if, for any reason, customer changes his mind after customer take out their loan, customer can return the amount customer borrowed within fourteen days with no fee, no charges, and no hassles - guaranteed! No Prepayment Penalty There is no prepayment penalty on CitiFinancial's Personal Loans, so customer can pay more than the required monthly payment if customer wishes to pay off their loan early. 2. HOME EQUITY LOAN CitiFinancial may help customer without blowing their budget. Customer work hard for their home, so why not put it to work for customer? Convenient terms + a lower interest rate = wise borrowing when customer take advantage of CitiFinancials home equity loans. Unlike the interest on auto loans, credit cards, and other Personal Loans, the interest customer pay on a home equity loan is usually lower. Choose from a variety of home equity loan terms with payments designed to fit customer budget. Who can qualify? CitiFinancial loans are granted on the equity of the home which customer own and currently live in (not on rental property) and closing costs and fees are usually included in the loan. Calculating the value of their home and the amount of equity customer have in it is the first step. Please contact CitiFinancial for details. It's Easy to Apply CitiFinancial terms and payments are convenient for their needs. Just apply now online, call CitiFinancial toll-free number 1-800-995-2274 (between 9:00 a.m. and 6:00 p.m. Monday to Friday) or stop by your neighborhood branch. CitiFinancial customer service representatives will be happy to help customer. 3. BILL CONSOLIDATION LOAN Let CitiFinancial simplifies customer budget and customer life.

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CitiFinancial may have a solution when customer bills start piling up. CitiFinancial consolidation loan makes it easy for customer to manage customer finances. CitiFinancial will help customer pay off customer other debts and provide customer with just one, more affordable monthly loan payment! Its that easy. One loan, one payment. Who can qualify? If customer is over age 18*, and have established credit, customer could be approved for a loan. Some established credit, like a store credit card, is necessary and employment or other steady income is required. At this time, CitiFinancial consolidation loans are not available for business purposes. CitiFinancial specialty is extending credit for personal, family and household purposes. It's Easy to Apply CitiFinancial terms and payments are convenient for customer needs. Just apply now on- line, call our toll-free number 1-800-995-2274 (between 9:00 a.m. and 6:00 p.m. Monday to Friday) or stop by your neighborhood branch. CitiFinancials customer service representatives will be happy to help customer. 14-Day Guarantee As a CitiFinancial customer, if, for any reason, customer changes their mind after customer take out their loan, customer can return the amount customer borrowed within fourteen days with no fee, no charges, and no hassles - guaranteed! No Prepayment Penalty There is no prepayment penalty on CitiFinancial's consolidation loans, so customer can pay more than the required monthly payment if customer wishes to pay off their loan early. 4. EXTRA CASH CitiFinancial may provide instant cash when customers need it most. CitiFinancial may lend customer the money customer needs when customer needs it most. CitiFinancial have helped families all over the country cope with unexpected surprises, like repair bills, kids braces and even new babies. CitiFinancial terms and payments are convenient and flexible, and CitiFinancial application process is easy. In most cases, customer will have the money customer need within 24 hours. 5. CREDIT INSURANCE CitiFinancial may help customer protect themselves and their family with creditor's group insurance provided by the Triton Insurance Company and the Assurant Group

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CitiFinancial has arranged affordable, low cost creditor's group insurance that can help customer have peace of mind in four ways a. if customer lose their job, through no fault of their own, involuntary unemployment insurance may pay their monthly payment for up to six months after customer have been out of work for at least 30 days from layoff, lock out or termination. b. if customer get sick or injured and are totally disabled so customer can't work for at least 30 days, disability insurance may pay their monthly payment for up to twelve months. c. in the event of their death - life insurance may pay off the entire balance of their loan. joint coverage available to protect their self and their co-borrower (not available in all provinces) no medical exam to qualify immediate coverage at the time of their loan premiums included with their monthly loan payment to protect their uninsured personal property against fire, lightning, theft and other perils. Subject to the terms, conditions and maximums of the coverage detailed on the certificate customer will receive.

HOME and AUTO SECURITY PLAN This is a unique plan that offers protection and assistance for a variety of situations arising in your home or your auto including: emergency medical expense benefit Air & land ambulance/Paramedic expense benefit locksmith service benefit legal access benefit vacation travel service emergency towing and road service emergency living expense benefit emergency transportation and car rental expense benefit crime prevention kit SERVICES OF CITIFINANCIAL 1. Provides better schemes to customer 2. Provides various facilities to customer 3. Suggest best possible ways to pay off the loan

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4. Helps the customer if they have any problem Provides better schemes to customer: -CitiFinancial provides the customer loans with the best scheme so that the customer can get the loan easily and he can repay it back happily. Provides various facilities to customer: - services like giving the full knowledge about the loan, giving the full satisfaction to the customer about the loan he is going to take, reminding about the payments of emi before the maturity of the date, etc. Suggest best possible ways to pay off the loan: - the customers are given that much of facility regarding the payment of the loan, they give the best possible emi the customer can pay off easily, they ask the customer to give only four cheques and the ecs signed by the customer so that customer wont be get harassed to give the money to the institution, the amount will be automatically will be deducted from the customer bank account when the date of maturity will arise. Helps the customer if they have any problem: - if the customer is having any problem regarding the loan which they have taken, CitiFinancial have the customer care service centre to solve their problem at that time only. Current Indian Scenario Rapid industrialization. An expanding economy. Growing aspirations. Increased incomes. Improved lifestyles. Availability of high quality products and services. An expanding market These factors have created an atmosphere conducive to rapid credit off take. While the demand for credit has risen exponentially, there has been a parallel increase in competition, and credit delinquencies. In such an environment, risk assessment is of critical importance. Not only, in deciding on what business to book and the speed at which a credit grantor does so, but also in determining the appropriate pricing. Comprehensive credit information, which provides details pertaining to credit facilities already availed of by a borrower as well as his payment track record, has become the need of the hour. CIBIL THE ANSWER The answer took shape when the Credit Information Bureau (India) Limited (CIBIL) was incorporated in 2000. CIBILs aim is to fulfill the need of credit granting institutions for comprehensive credit information by collecting, collating and disseminating credit information pertaining to both commercial and consumer borrowers, to a closed user group of Members. Banks, Financial Institutions, Non Banking Financial Companies, Housing Finance Companies and Credit Card Companies use CIBILs services. Data sharin g is based on the Principle of Reciprocity, which means that only Members who have submitted all their

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credit data, may access Credit Information Reports from CIBIL. The relationship between CIBIL and its Members is that of close interdependence. Integral Solution The establishment of CIBIL is an effort made by the Government of India and the Reserve Bank of India to improve the functionality and stability of the Indian financial system by containing NPAs while improving credit grantors portfolio quality. CIBIL provides a vital service, which allows its Members to make informed, objective and faster credit decisions. Vision and Mission We would like to be the Catalyst in informed credit decisions, thus enabling growth in credit at better terms through being a trusted partner to credit granters by offering innovative solutions, empowering employees to be responsive towards changing customer needs, and adopting international standards of technology, security and availability of up to date information The Benefit of Credit Bureau

Increased Credit Volumes

Credit Bureaus facilitate increased lending opportunities for credit grantors while allowing easier access to credit for borrowers. The existence of credit bureaus in developed countries has facilitated increased market penetration of credit (to more than 66% as a percentage of GDP as compared to 3% for India) while keeping nonperforming loans in check (approximately 1% of outstanding credit). Operating Efficiencies Credit Portfolio Quality The use of CIRs accessed from a credit bureau will enable credit grantors loan officers to accurately evaluate borrower risk by making comprehensive credit histories available to decision makers. The CIRs will facilitate an objective and transparent assessment of credit applications. Concurrent borrowers and serial defaulters will be identified and minimized early in the approval process - consequently reducing associated recovery and write-off costs. Similarly, premium borrowers will be identified and serviced faster. Ultimately, CIRs will enable Members to judiciously mix relationship-based lending and information-based lending. CIRs will serve as the first level of due diligence in the appraisal of a credit application. Speed and Cost

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The use of CIRs will make processing loan applications easier, faster and cheaper by sometimes eliminating the need to additionally research and verify borrower details. The average loan in India is sanctioned in 2-3 days. Credit grantors using CIRs will be able to significantly reduce this turn round time and thus have a competitive edge in the marketplace. Differential Pricing Owing to the lack of comprehensive credit information, all borrowers are charged an interest rate with an assumed level of default risk. This means that all borrowers are charged identical risk premiums regardless of their payment history and thus pay a premium that in developed countries is only applied to previously defaulting borrowers. As credit grantors begin to use comprehensive credit information they will be able to differentiate between good borrowers and defaulters. In an increasingly commoditized credit market, credit grantors will be able to use price in order to differentiate their loan products. In addition, borrowers who have diligently serviced their loans in the past will be able to demand cheaper loans in the future. Past defaulters will also have an opportunity to improve their credit histories by servicing their debt obligations in a timely fashion and thus earn access to lower interest rates. The Indian credit industry has only recently begun to offer differential pricing to their customers. As the credit environment becomes increasingly competitive, CIRs will play a pivotal role in the speed and confidence with which credit grantors will be able to increase their business volume. Hence, the use of CIRs will prove beneficial to both credit grantors and borrowers. Credit Grantors The use of CIRs will enable loan officers to make objective and informed credit decisions quickly, competitively and cost-effectively. The use of CIRs will enable them to increase their lending volumes and improve the quality of their credit portfolios while reducing their delinquencies and loan processing costs. This will translate into improved profit margins. Borrowers The widespread use of credit data will provide consumers with fast and easy access to the lending resources they need while reducing operating and risk costs for credit grantors. These reduce costs will be passed on to an extent to consumers with demonstrated credit performance in the form of lower interest rates. This easy availability of reasonably price credit will provide borrowers with the means to a higher standard of living How to improve your credit

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More credit. Better pricing. Objective assessment. These are just few of the benefits of your credit information report (CIR), reflecting debt obligations serviced regularly and in a timely fashion. For the first time in India, CIRs containing factual records, credit histories of borrowers are available. Credit grantors across the country can now access reports from CIBIL in order to make quick, objective credit decisions. When you approach a credit grantor for credit, your application will be evaluated on the basis of your past payment history, existing credit lines and other factors such as income and security. In this case, a good CIR is one of the best indicators of the level of risk you present to the credit grantor. A CIR that reflects a good past payment history may lead to credit being granted on better terms. On the other hand, a CIR, which indicates that a borrower has been delinquent on several occasions, could lead to denial of or extremely expensive credit. In order to ensure a high-quality CIR, it is important to re-pay your loans on time. However, as you accrue more debt, special efforts are required to ensure this. The 'buy now, pay later' mindset has left borrowers struggling to strike an adequate cash-flow balance. In this scenario, it is extremely important for you to maintain appropriate, reasonable and affordable levels of credit and ensure regular and timely re-payment of loans. Ways to improve your credit: Immediately establish a budget in order to control your cash outflows. Ensure that your income level permits an additional monthly outflow if you plan to take a loan. Investigate your options in order to reduce your interest and other credit related costs, e.g., refinance an outstanding loan at fixed interest rates if there is a significant drop in interest rates or you discover a significantly cheaper option, etc. This will make your debt burden easier to manage. Use some of your savings to repay some of your debt. Always pay on time.

Steps in giving a loan Gather your information

1.

Youll need the following information to complete the CitiFinancial personal loan online application:

2. Your e-mail address (optional). 3. Your social security number, financial and employment information: gross salary (that is your salary before taxes and other deductions are taken out), additional income and expense amounts and the monthly amount of your rent or mortgage.

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4. If you have lived in your current residence for less than 3 years, youll need previous address information for the past 3 years. 5. If you have worked in your current position for less than 3 years, youll need previous employment history for the last 3 years. 6. Co-borrower (optional) if you choose to add a co-borrower, you will need the coborrowers name, social security number, address, phone number(s) and employment history. Apply online Before you start your loan application process, we ask you for a small amount of general information to ensure we provide you with the correct loan application form. Then you're ready to complete your application online. There are 4 EASY STEPS to completing the online application! Step 1: Customize your loan application by answering a few general questions; well be able to customize your online loan application to meet your specific loan needs. Step 2: Tell us about yourself. Here we ask you for personal information about you, such as your social security number, date of birth, phone number and home address. The answers to these questions will help us process your loan application. Click here to learn more about how we protect your personal information. Step 3: Tell us about your work and finances Here we ask you questions about your present employer, date hired or retired, date unemployed, date disabled, work phone number, gross salary and other income. In addition, we ask questions about your mortgage or rent, and additional expenses. The answers to these questions will help us continue to process your loan application. Youll also have the option to add your co-borrower information here if you selected the co-borrower option. You will need the co-borrowers name, social security number, address, phone number(s) and employment history. Step 4: Review, validate and submit your application. The final step allows you to review all the information you entered to ensure the information provided is correct. If you find an error, you can correct it. Once you have reviewed your information and are sure it is correct, you may submit your loan application for processing. Once the loan application is submitted, your online loan application is complete.

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We contact you You'll receive an e-mail confirmation within five minutes, confirming that we received your application for processing. At the same time, your application will be transferred to your local CitiFinancial branch representative to review your individual situation and recommend the best loan product for your needs. A CitiFinancial representative will call you (usually within two business days) to verify the information you provided and to ask any additional questions needed to complete the loan application process. At this time the CitiFinancial representative will inform you of your loan status. Or if you can contact your local CitiFinancial branch office directly by using the contact information provided in the confirmation e-mail.

Terms and Conditions in the Agreement Letter CitiFinancial always ask their customer to read the terms and conditions of this agreement (Agreement) carefully. By accessing and using their web SITE AND ANY WEB pages THEREOF, we i.e. customers agree to the following terms and conditions: (If we do not agree to the terms and conditions below, do not access CitiCapitals web site and any web pages thereof.) In this Agreement, you and your refer to persons who access CitiCapitals web site and web pages (web pages). We, us and our refer to Citicorp Vendor Finance Ltd., CitiCapital Commercial Corporation, CitiCapital Technology Finance Ltd. CitiCapital Commercial Leasing Corporation and CitiCapital Limited and their affiliates and subsidiaries (collectively, CitiCapital). General Products and services advertised on their web pages are subject to the applicable agreements governing them. Further, these products and services are only available to Canadian residents and in those provinces and territories in Canada in which they may legally be offered. If we access their web pages from outside of Canada, we do so on our own initiative and are responsible for compliance with applicable local, national or international laws. Not all of their products and services are available in all provinces and territories in Canada. Their web pages do not constitute an offer or solicitation by CitiCapital in any

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jurisdiction where such a solicitation cannot legally be made, or to any person to whom it is unlawful to make a solicitation. The disclaimers, terms and conditions, and limitations in this section of their web pages are of general application and shall be read to be supplementary to any other disclaimer, term, condition, and limitation in any other section of this web site. The headings in this section and this web site are only for general reference purposes. Additional terms and conditions may apply to the products and services offered by or on their web sites and additional terms and conditions may be located on and apply to specific web sites of theirs. We agree to abide by such other terms and conditions. All terms and conditions shall be deemed severable. In the event that any provision is determined to be unenforceable or invalid, such provision shall nevertheless be enforced to the fullest extent permitted by applicable law, and such determination shall not affect the validity and enforceability of any other remaining provisions. CitiCapital will not be deemed to have waived the exercise of any right(s) hereunder unless such waiver is made in writing. No Advice The contents of their web pages are for informational purposes only and are not intended to provide specific financial, investment, accounting, tax, legal or real estate advice. We should not act on or rely on the content of their web pages without seeking the advice of a professional. Trademarks, Copyrights, Other Rights You should assume everything on their web pages is protected by and subject to applicable copyright, trademark and patent or other intellectual property right unless otherwise noted and may not be used except with the express written consent of Citigroup, Inc. Certain names, products, photographs, technology, service, logos, graphics, designs, words, phrases or the like, may constitute trade names, trademarks, or service marks (collectively Trademarks) owned by Citigroup, including its subsidiaries, affiliates or other entities. Any such right that is not expressly licensed herein is reserved by Citigroup Inc. Images of people or places displayed on their web pages are either the property of, or used with permission by, Citigroup. Use of these images by customers or other third parties is prohibited unless expressly permitted by Citigroup. The display of Trademarks on our web pages does not imply that a license of any kind has been granted to anyone else. Any unauthorized use, including but not limited to, downloading, modification, retransmission, redistribution, sale, storage in any medium or other copying of these images or the Trademark may violate copyright laws, trademark laws, privacy laws, moral rights and other applicable regulations and statutes of Canada and other countries and is expressly prohibited. Citigroup, its affiliates and subsidiaries, neither warrants nor represents that your use of the material displayed on their web pages will not infringe rights of third parties. Nothing contained on their web pages should be construed as granting by implication, estoppels or otherwise, any

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license or right to use any Trademarks displayed on this site without the written permission of Citigroup or such third party that may own the Trademarks. Misuse of any of the Trademarks, or any other content, displayed on their web pages is expressly prohibited. No content from web pages may be posted to newsgroups, electronic bulletin boards, mail lists or incorporated into any other site without the prior, express written consent of Citigroup. No Warranties; Changes to Content CitiCapital and its affiliates, subsidiaries, officers, directors, employees or agents provide the web pages and the content of the web pages on an as is, where is basis and do not make any express or implied warranties, representations, endorsements or conditions with respect to the web pages or the content thereof, including without limitation, warranties as to merchantability, operation, non-infringement, usefulness, completeness, accuracy, correctness, reliability and fitness for a particular purpose. Further, CitiCapital does not represent or warrant that the web pages will be available and meet your requirements, that access will be uninterrupted, that there will be no delays, failures, errors or omissions or loss of transmitted information, that no viruses or other contaminating or destructive properties will be transmitted or that no damage will occur to your computer system. You have sole responsibility for taking adequate measures to protect against such damage. CitiCapital reserves the right to change the contents of this web site, including the privacy and legal terms, at any time without prior notice or consent. Any changes become effective immediately and may be made without updating their web pages. Please consult any branch of CitiCapital in Canada for complete and up-to-date information on the products and services listed in our web pages. No Endorsements; Links Reference to third parties goods, services, information or opinions on their web pages are not specifically, implicitly or expressly endorsed or approved for any parties. Links from or to sites outside our web pages are meant for convenience only. CitiCapital does not review, endorse, approve or control, and is not responsible for, any sites linked to or from their web pages, the content of those sites, the third parties named therein, or their products and services. Please be advised that linking to any other web site is at your sole risk and CitiCapital will not be responsible or liable for any damages in connection with linking. Links to downloadable software sites are for convenience only and CitiCapital is not responsible or liable for any difficulties or consequences associated with downloading such software. Use of any downloaded software is governed by the terms of the license agreement, if any, which is provided with the software. No Liability CitiCapital is not responsible for, and will not be liable to you or anyone else for, any damages whatsoever (including direct, indirect, incidental, special, consequential, exemplary or punitive damages) arising out of or in connection with the use of or

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inability to use their web pages or the content contained therein. CitiCapital is not responsible or liable for any loss or damage that results from personal or confidential material sent to CitiCapital, or if CitiCapital sends such information at customers request, or any action or decision made by us in reliance on this web site, including, but not limited to, its contents, any unauthorized use or reproduction of this web site, even if CitiCapital has been advised of the possibility of these damages. Internet E-mail E-mail communication over the Internet is not secure or confidential and is subject to possible interception, alteration, or loss. CitiCapital does not assume any responsibility or liability for anyone else for any damages in connection with any e-mail sent by you to CitiCapital or any e-mail sent by CitiCapital to you at your request. Jurisdiction The web pages on this web site as they relate to information regarding products and services offered by CitiCapital are administered by CitiCapital from its offices in Canada. These web pages will be governed by and construed in accordance with the laws of the province of Ontario and the laws of Canada applicable therein, without giving effect to any principles of conflicts of laws. All disputes, actions, controversies or claims arising out of or in connection with these web pages shall be governed by and will be submitted to the exclusive jurisdiction of the courts of the province of Ontario. You submit and attorn to the exclusive jurisdiction of these courts to finally adjudicate or determine any suit, action or proceeding arising out of or in connection with these web pages. Process of giving a loan to a customer

Chart to be added:Eb & Nb

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1. Sourcing of a file: an applicant searches for the financial institution for getting a loan. So, he contacts the DSA person and gives his file to him so that he can further give his file to the institution. DSA person than give that file to his executive and charges 2.5% approx commission on every file he give to the executive. In sourcing the file , the document which are necessary are as follows : Identity proof: this can include voter ID card, pan card, ration card, passport photocopy, etc. Residence and office proof : this basically includes that electricity bills , telephone bills , or any other statement that shows the residence or office address Income proof : in this if an applicant is salaried than ITR or pay slip or form no. 16A , SARAL is required and if an applicant is self employed than the income statement is required or balance sheet of the firm is required ITR he files every year m PAN card is must in case of self employed. Bank statement: this shoes the latest transaction of last 3-4 months but that too should be regular transaction like bank pass book. 2. Reference number generation: After the file is being sourced, than the applicants file is given an identical number for e.g. 15214639, by which if the file needs to be check in future than bi y that ref. no. that file can be easily seen. 3. Dedupe: in this file is checked whether the applicant has applied before in CITIFINANCIAL or not, if yes , whether he is rejected or not , and if he is rejected than on which code he is rejected. After analyzing according to the rejection codes and their cooling periods finally file is soft approved or rejected with valid rejection code. There are many rejection codes of rejection i.e. a. RPY (reject on poor banking) b. RCPV (Reject on center point verification), c. RIP(Reject on out of policy product) d. RCB(Reject on negative CIBIL) e. RDF(Reject on defaulter of other organization) f. RTVR(reject on Telephonic verification report) g. RDA(reject on defaulter of CitiFinancial) h. RMD(reject on manipulated document) i. RSCO(Reject on score band) j. RFCU(Reject negative fraud control report) k. RSF (Reject sales feedback) l. RNC(Reject as not converted) m. ROT(Reject for other reasons), etc. Beside all this, these rejection codes have cooling period also. According to these cooling periods and rejections reasons one has to give decision on the file whether it is rejected or ok for further process. When Dedupe is found ok than the next step is CIBIL.

23

4. CIBIL: the Credit Information Bureau India Limited. It is a program issued by RBI, which reflects the applicant loan from other financial institution or banks, like credit cards, overdraft, etc. According to applicant repayment of loan he is provided by a score i.e. CIBIL score. If score is found ok then it is stamped positive else negative. The score of NB files is 751 or greater and the score of EB file is 715 or greater. If applicant is making bounces in any of the loan. Credit, overdraft, than the CIBIL itself becomes negative. When CIBIL becomes negative, if policy says that it can be done then overrule for negative. CIBIL can be taken by deviations. As per policy if CIBIL is score is 751 or greater and address of CIBIL is same as of present applicant form address than no verification is required. 5. Verification: It can be done through CPV (Center Point Verification) at the residence or at the office of an applicant by hiring an agency that will perform this work for us and for doing this work that agency is get paid . 6. Telephonic Verification Report (T.V.R): in this the staff member of CITIFINANCIAL collect the information on phone from the customer hat what all documents he has given for taking the loan and what all he owes and owns , what are the emi of his previous loans , etc 7. Customer interview: In this the staff member calls the customer in the branch for the discussion and for the interview whether he is in a position to take a loan , whether he will be able to pay back the loan on time , etc . 8. Disbursal: in this when the customer becomes fully satisfied that he will be taking the loan , the file of the customer is than processed for the disbursal and the cheque is ready to be given to the customer . 9. Top Up: when the customer completes his 9 months of giving emi regularly without any bounce than the CITIFINANCIAL member called up the customer for lending him topup on his loan.

24

Documents needed in the complete file are as follows Mail approval Checklist CIP-P Checklist Credit approval Sheet T.V.R. Application form PAN Card ID Proof Residence Proof Office proof Income Proof Bank statement SARAL Computation of total income ECS LETTER OF ACKNOWLEDGEMENT STAT Card Early Pay off Annexure Agreement

25

Balance sheet of CitiFinancial.

Assets

Jan 08

Jan 07

Jan 06

Current Assets
Cash

7,972.0

10,298.0

9,058.0

Net Receivables
Inventories

7,693.0
1,180.0

6,152.0
660.0

5,452.0
576.0

Other Current Assets

Total Current Assets

3,035.0
19,880.0

2,829.0
19,939.0

2,620.0
17,706.0

Net Fixed Assets

Other Noncurrent Assets

2,668.0
5,013.0

2,409.0
3,287.0

2,005.0
3,398.0

Total Assets

27,561.0

25,635.0

23,109.0

Liabilities and Shareholder's Equity

Jan 08

Jan 07

Jan 06

Current Liabilities
Accounts Payable

11,591.0

12,432.0

10,657.0

Short-Term Debt
Other Current Liabilities

225.0
6,710.0

188.0
5,171.0

-5,270.0

Total Current Liabilities

Long-Term Debt

18,526.0
362.0

17,791.0
569.0

15,927.0
504.0

Other Noncurrent Liabilities

Total Liabilities

4,844.0
23,732.0

2,836.0
21,196.0

2,549.0
18,980.0

Shareholder's Equity
Preferred Stock Equity

94.0

111.0

--

Common Stock Equity

Total Equity Shares Outstanding (mil.)

3,735.0
3,735.0 2,060.0

4,328.0
4,328.0 2,226.0

4,129.0
4,129.0

26

Market data of CitiFinancial.

Current Information Last Close 02-Jun-2008 $22.79 Price/ Sales Ratio 0.73

52-Week High
52-Week Low

$30.77
$18.13

Price/ Book Ratio

Price/ Earnings Ratio

11.93
16.40

60-Month Beta
Market Cap (mil.)

1.4
$46,947.4

Price/ Cash Flow Ratio

Return on Assets

11.28
11.1%

Shares Outstanding (mil.)

Dividend Rate

2,060.0
--

Return on Equity
Current Ratio

73.1%
1.07

Dividend Yield
# of Institutional Holders Latest Short Interest Ratio

-862 1.44

Long-Term Debt/Equity
% Owned by Institutions Latest Net Insider Transactions

0.16
67.0% --

Growth Rates

12 Month

36 Month

60 Month

Revenue Growth

6.5%

24.2%

72.7%

EPS Growth
Dividend Growth

15.7%
0.0%

9.9%
0.0%

62.2%
0.0%

27

Cash flow statement of CitiFinancial

Year End Mar 07 Mar 06 Mar 05

Cash Flow Summary Cash and Cash Equivalents at Beginning of the year Net Cash from Operating Activities Net Cash Used In Investing Activities Net Cash Used In Financing Activities Net Inc/(Dec) In Cash And Cash Cash And Cash Equivalents At End Of The Year Cash Flow From Operating Activities Net Profit Before tax & Extraordinary Items Adjustment For Depreciation Interest(Net) Dividend Received P/L on Sales Of Assets P/L on Sales Of Invests Prov. & W/O(NET) P/L In Forex Fin. Lease & Rental Charges Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Op. Profit Before Working Capital Changes Adjustment For Trade & 0th Receivables Inventories Trade Payables Loan & Advances Investments Net Stock On Hire Leased Assets Net Of Sale Trade Bills(s) Purchased Change In Borrowing Change In Deposits Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash Generated From/(Used In) Operations Interest Paid(Net) 0.00 0.00 -22.86 0.37 49.90 -2,187.69 0.00 6.93 0.00 0.00 0.00 0.00 -113.22 -2,266.57 -1,741.72 0.00 -10.09 0.53 27.34 -1,557.87 0.00 29.53 0.00 0.00 0.00 0.00 -29.76 -1,540.32 -1,228.78 0.00 0.00 25.32 0.00 0.00 -0.15 0.00 225.85 0.37 0.00 0.00 251.39 524.85 19.79 0.00 0.00 -0.05 0.00 87.95 1.32 0.00 0.00 109.01 311.54 0.00 0.00 0.00 0.00 0.00 0.00 200703 0.00 14.21 -1,852.09 -61.25 2,365.86 452.52 466.73 200603 273.46 29.68 -1,292.34 -38.90 1,315.77 -15.47 14.21 200503 202.53

28

Direct Taxes Paid Advance Tax Paid Others

0.00 0.00 0.00 0.00

-110.37 0.00 0.00 -110.37

-63.56 0.00 0.00 -63.56

Cash Flow Before Extraordinary Items Extraordinary Items Excess Depreciation W/b Premium On Lease Of Land Payment Towards VRS Prior Year's Taxation Gain On Forex Exch. Tran Others

0.00

-1,852.09

-1,292.34

0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,852.09

0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,292.34

Net Cash Flow From Operating Activities

0.00

Cash Flow From Investing Activities Investment In Assets : Purchased Of Fixed Assets Sale Of Fixed Assets Capital WIP Capital Subsidy Recd

200703

200603

200503

0.00 0.00 0.00 0.00

-40.44 1.30 -15.20 0.00

-37.62 0.73 -2.01 0.00

Financial/Capital Investment: Purchase Of Investments Sale Of Investments Investment Income Interest Received Dividend Received Invest. In Subsidiaries Loan to Subsidiaries Investment In Group Cos Issue Of Sh.On Acqu. Of Cos Canc. Of Invest. In Cos Acq Acquisition Of Companies Inter Corporate Deposits Others Net Cash Used In Investing Activities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -6.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -61.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -38.90

Cash Flow From Financing Activities Proceeds: Proceeds from Iss. Of SnCap Incl Sh Prem

200703

200603

200503

0.00

444.13

216.02

29

Proceed from Issue Of Deb Proceed from 0th. L Term Borr Proceed from Bank Borr Proceed from Sh Term Borr Proceed from Deposits Share Application Money Cash/Cap. Investment Subsidy Loan From A Corporate Body

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1,438.00 1,537.00 0.00 92.43 0.00 0.00 0.00 0.00

1,845.00 558.60 0.00 0.00 0.00 0.00 0.00 0.00

Payments: Share Application Money Refund On Redem Of Deben Of 0th L Term Borr Of Sh Term Borr Of Fin. Lease Liabi Dividend Paid Shelter Assistance Reserve Others Net Cash Used in Financing Activities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -740.35 -621.85 0.00 0.00 0.00 0.00 216.50 2,365.86 0.00 -812.00 -543.95 -37.02 0.00 0.00 0.00 89.12 1,315.77

Competitor detail 1. Bank of America:- The second-largest bank in the US by assets

(behind Citigroup), Bank of America boasts the country's most extensive branch network, with more than 6,100 locations covering some 30 states from coast to coast. Its core services include consumer and small business banking, credit cards, investment banking and brokerage, and asset management. In 2007 Bank of America bought U.S. Trust from Charles Schwab for more than $3 billion and acquired Chicago-based LaSalle Bank from Netherlands-based ABN AMRO for some $21 billion. Also that year the company made a $2 billion investment in Countrywide Financial, and in early 2008 agreed to buy the troubled company for some $4 billion in stock.

30

BALANCE SHEET OF BANK OF AMERICA

Assets

Dec 07

Dec 06

Dec 05

Current Assets

Cash

345,920.0

338,911.0

331,291.0

Net Receivables

--

--

--

Inventories

--

--

--

Other Current Assets

--

--

--

Total Current Assets

--

--

--

Net Fixed Assets

11,240.0

9,255.0

7,786.0

Other Noncurrent Assets

1,358,586.0

1,111,571.0

952,726.0

Total Assets

1,715,746.0

1,459,737.0

1,291,803.0

Liabilities and Shareholder's Equity

Dec 07

Dec 06

Dec 05

31

Current Liabilities

Accounts Payable

53,969.0

42,132.0

82,828.0

Short-Term Debt

412,524.0

358,827.0

356,924.0

Other Current Liabilities

805,177.0

693,497.0

634,670.0

Total Current Liabilities

--

--

--

Long-Term Debt

219,931.0

230,009.0

115,848.0

Other Noncurrent Liabilities

77,342.0

--

--

Total Liabilities

1,568,943.0

1,324,465.0

1,190,270.0

Shareholder's Equity

Preferred Stock Equity

4,409.0

2,851.0

271.0

Common Stock Equity

142,394.0

132,421.0

101,262.0

Total Equity

146,803.0

135,272.0

101,533.0

32

Shares Outstanding (mil.)

4,437.9

4,458.2

3,999.7

Bank of America Financial Market Data

Current Information Last Close 10-Jun-2008 $29.62 Price/ Sales Ratio 1.08

52-Week High
52-Week Low

$52.96
$29.34

Price/ Book Ratio

Price/ Earnings Ratio

0.87
12.71

60-Month Beta
Market Cap (mil.)

0.4
$131,892.2

Price/ Cash Flow Ratio

Return on Assets

5.06
0.7%

Shares Outstanding (mil.)

Dividend Rate

4,452.8
2.56

Return on Equity
Current Ratio

7.5%
--

Dividend Yield
# of Institutional Holders Latest Short Interest Ratio

256.0%
1,511 1.65

Long-Term Debt/Equity
% Owned by Institutions Latest Net Insider Transactions

4.11
61.0% --

Growth Rates

12 Month

36 Month

60 Month

Revenue Growth

4.2%

78.3%

170.6%

EPS Growth
Dividend Growth

(49.6%)
14.3%

(39.8%)
42.2%

(23.7%)
103.2%

33

2. HSBC FINANCE: - HSBC Finance (formerly Household International) is the consumer lending arm of gigantic British bank HSBC Holdings. The company caters to middle-class clients in the US, the UK, Canada, and Ireland, with a focus on serving customers with less-than-stellar credit. Its offerings include home mortgages, automobile loans, and personal loans; the company's subprime mortgage lending business has about 1,000 offices in more than 45 states. HSBC Finance also issues Visa, MasterCard, American Express, and Discover credit cards, as well as privatelabel cards for third parties such as General Motors and the AFL-CIO. It also sells specialty insurance in the US and Canada.

BALANCE SHEET OF HSBC FINANCE

Assets

Dec 07

Dec 06

Dec 05

Current Assets

Cash

--

--

--

Net Receivables

--

--

--

Inventories

--

--

--

Other Current Assets

--

--

--

Total Current Assets

--

--

--

Net Fixed Assets

--

--

--

34

Other Noncurrent Assets

--

--

156,669.0

Total Assets

--

179,459.0

156,669.0

Liabilities and Shareholder's Equity

Dec 07

Dec 06

Dec 05

Current Liabilities

Accounts Payable

--

--

--

Short-Term Debt

--

--

0.0

Other Current Liabilities

--

--

--

Total Current Liabilities

--

--

--

Long-Term Debt

--

--

105,163.0

Other Noncurrent Liabilities

--

--

32,027.0

Total Liabilities

--

--

137,190.0

35

Shareholder's Equity

Preferred Stock Equity

--

--

575.0

Common Stock Equity

--

--

18,904.0

Total Equity

--

--

19,479.0

Shares Outstanding (mil.)

0.0

0.0

0.0

HSBC Finance Financial Market Data

Current Information Last Close 05-Jun-2008 $24.00 Price/ Sales Ratio 0.01

52-Week High
52-Week Low

$26.50
$22.22

Price/ Book Ratio

Price/ Earnings Ratio

0.02
--

60-Month Beta
Market Cap (mil.)

0.1
$288.0

Price/ Cash Flow Ratio

Return on Assets

0.02
(3.1%)

Shares Outstanding (mil.)

Dividend Rate

12.0
1.72

Return on Equity
Current Ratio

(30.5%)
--

Dividend Yield
# of Institutional Holders Latest Short Interest Ratio

172.0%
5 2.46

Long-Term Debt/Equity
% Owned by Institutions Latest Net Insider Transactions

-12.0% --

Growth Rates

12 Month

36 Month

60 Month

36

Revenue Growth

7.6%

53.8%

69.2%

EPS Growth
Dividend Growth

0.0%
0.0%

0.0%
0.0%

0.0%
295.2%

37

Organizational structure of CitiFinancial

Org. Structure or Chart

Country Head

Ajay Banga

M.D

P.S. Jay Kumar

Business Head

Rahul Soota

Division Head

Sandeep Gambhor

Regional Manager

Ritu

District Manager

Gourav Taneja

Branch Manager

Puja

Assistant

Jayvijay Singh

Relationship Manager

Jayvijay Singh

Office Emp.

Office Emp.

Office Emp.

38

Discussion on Training:
What all Ive done in my training? I, Ankur Rastogi, student of BBA, have done a lot of work for a financial institution named CITIFINANCAIL. This has been a great job for me to work in this institution. The work that I have done in my training is like this 1. learnt how to source a file 2. learnt how to see a file properly 3. learnt how to deal with the customer 4. learnt how to update the information in a system 5. learnt how to process a file 6. learnt how to login a file 7. learnt how to catch the matches of the file while doing the file online 8. learnt how to do Dedupe a file 9. learnt how to make the file complete 10. learnt how to do the tellicalling 11. learnt how to do a telephonic verification report 12. Visit to other branches of CITIFINANCIAL such as KARAMPURA branch. What is the experience of my work? The experience of my work was too good and marvelous. It was the first day of my training when I was introduced to everyone in the company by my head and started learning what all I have to do in my training with the prescreening of files. It means that I start seeing the files whether that files are completed or not. The days pasted and the training goes on smoothly and Ive learnt many things these months like how to prescreen a file, sourcing a file, processing of a file, updating of information on system of a file, dong login, online, Dedupe, deal with the customer, calling, doing T.V.R. and visit to different branches was the most interesting work I like, Doing sourcing was the most difficult but interesting part of all these. I have been through all of these processes under the guidance of different staff member. Working with CitiFinancial is a great experience and this experience will help me a lot in the future if I take any loan from any institution in future. What all Ive contributed to the company? As in training Ive learnt a lot of what is CitiFinancial all about, in what this co. is, etc. CitiFinancial deals in giving the loan to the customer who are in need. What Ive done in this co. in my training session was learning the process of giving a loan. I render my services to this company wholeheartedly and tried to get as much as I can from this company. I learnt how to deal with the customers; I render my services in completing the files whose cheque

39

were to be disbursed to the customer. I spent my time in learning how to update the information n system, how to login, online, how to make an M.I.S., Dedupe and take a CIBIL of the file. I did the work hardly and wholeheartedly in the company which gives me a lot of experience in that span if time spent.

Summary or Learning Experience: In the CitiFinancial what all Ive done are as follows: 1. 2. 3. 4. 5. I learnt what is the process of giving a loan What are the terms and condition of giving a loan? What are the criteria of giving a loan to a person? I learnt how to deal with the customer I learnt how to do prescreening, sourcing, processing, T.V.R., online, Dedupe, login. Etc of a file. 6. The experience of my learning is very much exciting as well as knowledgeable. So this was the summary of my learning in CitiFinancial. Cost cutting The reduction of the amount of money spent on the operations of an organization or on the provision of products and services. Cost-cutting measures such as budget reductions, salary freezes, and staff redundancies may be taken by an organization at a time of recession or financial difficulty or in situations where inefficiency has been identified. Alternative approaches to cost-cutting include modifying organizational structures and redesigning organizational processes for greater efficiency. Excessive cost-cutting may affect productivity and quality or the organization's ability to add value. Citigroup Chairman and Chief Executive Charles Prince said Monday he would release details of cost-cutting steps later this week, including the consolidation of some operations and moving others to lower-cost locations.

40

In a memo to employees made available to The Associated Press, Prince said the cuts were aimed at eliminating expenses while advancing our core strategic growth objectives. The process, he said, Has been and will be challenging. He sketched broad outlines of the overhaul, but said specifics would be released at a Web conference Wednesday. Prince indicated the cutbacks would be throughout Citigroups operations Worldwide. Citigroup, the nations largest financial institution, has more than 327,000 workers in more than 100 countries. Media reports about the financial review, which has been under way since the fourth quarter, have said 26,000 workers could lose their jobs or be reassigned. Cost savings could approach $2 billion a year, they said. Shares Citigroup Inc C20.06 -1.16 -5.47% NYSE of Citigroup

[C 20.06 -1.16 (-5.47%) ] declined. In the memo, Prince said: "We will consolidate certain back-office, middle-office and corporate functions at the business, regional and headquarters levels to eliminate duplication of effort and focus, instead, on building truly efficient, world-class business operations with scale." Prince also said some operations would be moved "to lower-cost locations." And, he said, there would be continuing efforts aimed at "rationalizing our technology platforms to operate more efficiently and effectively." Prince has been under pressure to get a handle on the bank's burgeoning expenses, which grew 15% last year, twice the pace of revenue growth. John McCune, director of Banking Research at SNL Financial, a research firm based in Charlottesville, Va., said Citigroup's efficiency ratio - its operating expenses divided by recurring income - had been moving in the wrong direction. The ratio, which he said represented "how much it cost you to make money," rose from 60% at the end of 2005 to 66% a year later. Cost-cutting, he added, is "the classic reaction to improve efficiencies." Will it be enough? "I don't know if the Street is ever satisfied," McCune said of Wall Street analysts and investors. "But it is a step in the right direction."

41

The disclosure about Citigroup's overhaul came as the bank announced it will purchase the bank of Overseas Chinese, a mid-sized Taiwanese bank, for $425 million in the U.S. financial group's latest expansion in Asia. Last month, Citigroup announced it was launching takeover bid worth up to $13.3 billion for Japan's Nikko Cordial, the country's third-largest brokerage. In December, Citigroup acquired an 85.6% stake in the southern China-based Guangdong Development Bank for $3.1 billion. Prince wants to boost the bank's international business to contribute to 60% to total revenue, up from the current 45%. Cost involved in each step: 1. The cost which occurs while doing the sourcing of the file is comes out to be approx Rs 1000/file i.e. this includes the cost of the file which comes through the DSA person and their executive. 2. The cost that occurs while doing the online, generating the reference number and the Dedupe of the file is the cost of the computer being used to check the file of an applicant. 3. The cost that occurs while doing the verification is Rs 300/ file approx that include the cost of the person who goes for the verification to the customer residence or as per the case may be. 4. The cost that occurs while doing the T.V.R. i.e. telephonic verification report comes out to be Rs 10-12/ file and the telephone being used for doing the verification on the phone with the customer. 5. The cost which occurs while sending the file for having the file stamped by the F.C.U. staff member who check that the file is ok or not and the cost is Rs 300/file. 6. The cost which comes out to be when the file is send to the GKC is Rs 5-10/ document attached to the file. 7. The fixed cost that is to be given by the company is the rent of the premises being used, telephone being used, electricity being used, computer being used and salary of each employee in a company.

Steps involved in cost controlling:

1. The information collected should be 100% correct 2. Verification should be done only once 3. There should be a proper training given to each and every employee according to their field so that whatever they do should be correct and perfect 4. The CIBIL should be done only once because if do it many times it will cost more and the cost of CIBIL IS APPROXIMATE Rs 30-35 per CIBIL done per time 5. File should be completed properly so that at the time of disbursal head office to the branch for the completion of pendency. This will increase the cost of dox boy going up and down to take the file back, etc. 6. There should not be such policy in a company due to which cost can rise unnecessarily.

42

Fraud controlling
Fraud controlling is a process made to control the fraud and fake document provided by the applicant e.g. identity proof, residence proof, income proof , and bank statement, for this fraud checking of documents is done by F.C.U. agency. Fraud check is done in two ways: 1. Internet check of documents 2. Checking from concern offices: PAN Card, ITR , form 16 are verified from ITO ,. Banks statement are checked from their banks Various tools for checking the fraud are 1. DEDUPE 2. T.V.R(Teliphonic Verification Report) 3. C.P.V. (Centre Point Verification) 4. F.C.U. ( Fraud Control Unit) 5. G.K.C. (Ghosh and Khanna company)

Steps involved in controlling the fraud: 1. File should be checked or stamped by the Fraud Control Unit member (F.C.U.) or by the F.R.M. members only, which shows that this file is ok and can be processed further. 2. There are certain tools for controlling the fraud i.e. DEDUPE, Telephonic Verification Report (TVR), Centre Point Verification (CPV), Fraud Control Unit (FCU), Gosh and Khanna Company (GKC). Through these tools an applicant can be judged very easily whether he is doing any fraud or has given any fake document or not. 3. File should be checked by the company named Ghosh and Khanna company (GKC) which collects the information which is given by an applicant, from the different department like applicant has given a electricity bill so GKC will conform the BESE department whether this bill contains the name of an applicant and the address which n applicant has given in the file , etc The cost involved in each step: 1. While sourcing the file the cost comes round about Rs 1000/ file 2. While doing online, Dedupe and reference number generation the cost which comes is only of the computer being used throughout the day. 3. While doing CIBIL the cost which comes is round about Rs 30/ file 4. While doing T.V.R. the cost which comes is only the phone being used throughout the day. 5. While doing the verification the cost which comes to be is round about Rs 50-100 as per the agency the company hires.

43

6. While doing the Centre Point Verification (C.P.V) the cost which comes out to be is Rs 50-55 only per visit of the agency boy. 7. While doing the Fraud Control Unit (F.C.U) and F.R.M. the cost is Rs 300 per file. 8. While sending the file to G.K.C. the cost which comes out to be is Rs 5-10 per document. 9. The cost which is also involved in giving the salary to employee, DSA person, their conveyance and incentive etc that is fixed and is to be given by the company. 10. The cost which is fixed and is to be given by the company compulsorily is the rent of the company office, electricity being used, telephone being used, office maintenance of the company, etc.

GROWTH AND DEVELOPMENT OF THE COMPANY Diluted EPS Amount in million

$4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 2001 2002 2003 2004 2005 2006

Return on Equity

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average 19.4%
25.00%

20.00%

15.00%

10.00%

5.00%

0.00% 2001 2002 2003 2004 2005 2006

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FREQUENTLY ASKED QUESTIONS (FAQs)

1. 2. 3. 4. 5. 6. 7. 8. 9. General Information Product and Services CITIFINANCIAL Accounting Information Loan Application Security and Privacy P3P(Platform for Privacy Preferences ) Credit Related issues Solicitation List Fraudulent Email

General Information Que: How can I obtain investment information about CitiFinancial? Ans: CitiFinancial is a member of Citigroup. To obtain annual reports, investment and other financial information about Citigroup.

Que: Can I buy a house using a loan from CitiFinancial? Ans: Although CitiFinancial doesn't offer purchase money for a first-mortgage, CitiFinancial Mortgage offers purchase money for first mortgage loans. Que: Can I buy a new car using a loan from CitiFinancial? Ans: CitiFinancial Auto Credit, Inc, our sister company, offers auto financing. Que: Can I buy a used car using a loan from CitiFinancial? Ans: Yes! You can use a CitiFinancial Personal Loan to buy a used car. Que: What is the best way to view the CitiFinancial Web Site? Ans: For optimum performance, CitiFinancial recommends that you view www.citifinancial.com with JavaScript turned on. See below for browser specific instructions on how to turn on your JavaScript. To Enable JavaScript in Netscape; -- Click on the Edit Menu and then click Preferences Click Advanced and choose Scripts & Plug-in Ensure that Navigator is checked under the heading "Enable JavaScript for" Also ensure that you have all items checked under the heading "Allow webpage to:" To Enable JavaScript in Internet Explorer;

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-- Click on the Tools Menu and then click Internet Options Select the Security Tab and click on Custom Level Scroll down and ensure that all "Enable" options are selected under the heading "Scripting" Product and Services Que: How do I get the payoff amount for my loan? Ans: Please contact the local CitiFinancial Branch Office that manages your account and they will provide you with an accurate payoff amount.
Que: Will I get a refund for the early pay off of my personal loan?

Ans: It depends on the type of loan (interest bearing or pre-computed) and the charges included in your loan. If you have unearned interest and/or other charges, these will be deducted from your remaining balance and the net result is the payoff amount you are quoted. If you have interest due, it will be added to and included in the payoff amount you are quoted. Please contact your local CitiFinancial Branch office for more information about your personal loan.

Que: Can I pay my bill by phone or over the Internet? Ans: Currently CitiFinancial does not accept payments by phone or the Internet. Que: Since CitiFinancial purchased my account, will the terms stay the same or change? Ans: Everything will stay the same. The only thing that has changed is the name of the lender.

Que: How do I change my name and address on my CitiFinancial account? Ans: Please contact your local CitiFinancial Branch office and inform a representative of your changes to have your records updated.

Que: I just moved to another state and want to renew my loan with CitiFinancial. Can I call my old office? Ans: No, we generally do not lend across state lines. Please contact the nearest CitiFinancial office in your new area and someone will be able to help you. Call 800995-2274 to be connected to the closest CitiFinancial branch office or use the online Branch Locator to find a CitiFinancial branch in your area.

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Loan application Que: What is CitiFinancial's Privacy Promise? Ans: Your privacy is important to CitiFinancial. This is why, as a member of Citigroup, we are committed to the Citigroup Privacy Promise for consumers. Click here to view our Privacy Promise. P3P (Platform for Privacy Preferences) Important message for Microsoft's Internet Explorer (IE6) and Windows XP users: If your browser has blocked cookies or has changed the functionality of the cookies, a warning symbol, displaying a small "eye" with a red circle, will appear at the bottom of your computer screen. This warning should be located right next to the lock icon that indicates you are using a secure site. Here's how to find out which cookies are accepted or blocked: The privacy icon will appear in the status bar each time a cookie is restricted based on your privacy settings.

Que: How do I learn more about credit and how to use it wisely? Ans: Credit is such an important part of life. CitiFinancial wants to help you understand the basics of credit and how to use it wisely. The information in the All about Credit section is designed to help you understand and use credit to your advantage. Click here to learn more about Credit and how to use it wisely. Solicitation List Remove Name from Solicitation List Received an Offer Invitation to Apply Offer Pre-Approved Offer

Que: How do I remove my name from your solicitation list? Ans: Click here to select your solicitation preferences and we will remove your name and address from the CitiFinancial database. Que: Why did I receive an offer in the mail from CitiFinancial? Ans: We send offers to many households, using mailing lists we've purchased from reputable vendors. Our offers do not put you under any obligation.

Que: I received an "invitation to apply" solicitation in the mail. Does this mean I'm preapproved? Ans: No. An invitation to apply simply means we received your name from a reputable 48

mailing list and anticipate that you will qualify for a loan, but we have not checked your credit and will not do so unless you apply for a loan. Apply Online Today!

Que: Why do you send out pre-approved offers and then deny the loan? Ans: The offer you received has several conditions that must be met in order for you to be pre-approved. One of those conditions is that you are a homeowner and you reside in the home you own. You may contact your local CitiFinancial Branch Office for more details. Security and Privacy How to tell if an e-mail is legitimate how to report fraudulent e-mails Que: How can I tell if an e-mail that appears to be from Citi is legitimate? Ans: When receiving an e-mail, remember the following: would never ask you to type information into a pop-up window. would never ask you to verify your account information online. Most fraudulent e-mails contain obvious spelling or grammatical errors. If you are still in doubt, do not respond or provide any of your personal information. For more information regarding fraudulent e-mails please visit: www.citi.com/domain/spoof/learn.htm.

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Recommendation
CITIFINANCIAL is an MNC which gives new opportunities to the people so that they can show their talent in their field which in result will help the company in maximizing profits. It gives all the facilities to the employees. It also does employee welfare, listens to the queries of the employees etc. If the company keeps its ambitions at a high spirit then it will definitely become a top most company among all other companies.

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Conclusion
Precisely, I would like to say, that it had been a good experience with the Company during the training. I have gained a good experience with the members of the department and also have learned a lot from them. CITIFINANCIAL is an MNC whose ambitions are very high and it will become a top most company in future.

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Bibliography
Guidance of Mr. Jayvijay Singh, Assistant Manager (Personal Loan Department) Guidance of Mr. Naresh , CPA Guidance of Ms. Ruchi Saluja, Sales Manager Guidance of Ms. Kokil , CPA www.citifinancial.com www.google.com www.altavista.com www.indiainfoline.com

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