PROJECT REPORT

On
Mahindra & Mahindra Financial Services
Limited(MMFSL),Gutkar, Mandi

FINANCIAL MANAGEMENT

Submitted in partial fulfillment of the

Requirements for the award of
Degree of Masters in Business Administration

Submitted by:
Name: MAYANK SHARMA Roll No.20110105022
Training period:1 JANUARY, 2022 to 28 FEBRUARY,2022

Submitted to:
Department of Finance MBA
SARDAR VALLABHBHAI PATEL CLUSTER UNIVERSITY
MANDI, DISTT. MANDI (H.P.)
 PROJECT REPORT
FINANCIAL MANAGEMENT
Submitted in partial fulfilment of the
Requirements for the award of

Degree of Masters in Business Administration

Submitted by:
Name: MAYANK SHARMA Roll No. : 20110105022
Training period: 1 JANUARY, 2022 to 28 FEBRUARY, 2022

Submitted to:
Department of Finance MBA
SARDAR VALLABHBHAI PATEL CLUSTER
UNIVERSITY MANDI, DISTT. MANDI (H.P.)
 TABLE OF CONTENTS

Title Page No.

Certificate by the Organization i

Declaration by the Student ii

Acknowledgment iii

Executive Summary iv

Introduction to Mahindra and Mahindra Finance v

Chapter 1: Introduction to the project 1

1.1 Introduction 1

1.2 About the project 1

Chapter 2: Weekly Progress Report 2

Chapter 3: Technical content 6

3.1 Financial Management 6

3.1.1 CIBIL Score 10

3.1.2 Consumer Credit Reporting 10

3.1.3 Know Your Customer (KYC) 10

3.2 Vehicle Financing / Auto Financing 11

3.2.1 Auto Financing 11

3.2.2 Other Services by Mahindra Finance 11

3.2.3 Financial Agreement 13

Chapter 4: Difference B/w NBFC and Banking 16
4.1 Definition of NBFC 18
4.2 Definition of Bank 19
4.3 Conclusion 19
Chapter 5: Case Study 20
5.1 Case Study 20
5.2 Case Study of a Customer 21
5.3 Analysis of Case Study 32
5.4 Conclusion 33
Chapter 6: Mutual Funds 34
6.1 Advantages 34
6.2 Disadvantanges 35
6.3 Asset Management Company 35
6.4 MAMCPL 35

6.5 Systematic Investment Plan 36

6.6 Mahindra Maunlife Mutual Fund 36
6.7 Key People 37
6.8 Schemes of MMMF 37-43

Chapter 7 : Research Methodology 44

7.1 Research Methodology 44
7.2 Research Design 45
7.3 Descriptive Research 45
7.4 Sampling Design 46
7.5 Data Collection 47
7.6 Data Analysis 47
Chapter 8: Data Interpetation and Analysis 48-55
Chapter 9: Conclusion 56
Findings 57
Bibliography//Reference 58
CERTIFICATE BY THE ORGANIZATION

i
 DECLARATION BY STUDENT

I hereby declare that the Industrial Training Report entitled (FINANCIAL

MANAGEMENT) is an authentic record of work carried out by me during my training at
Mahindra and Mahindra Financial Services Limited Mandi from 01 January, 2022 to 28
February, 2022 under the supervision of my training supervisor Ankit Batas (Accountant)
for the award of degree of MBA in Finance and Human Resources.

Signature of student
Name of Student: Mayank Sharma
Roll No. : 20110105022

Date: ____________________

(Signature of Head of Department)

Examined by:
(Signature of Internal Examiner) (Signature of External Examiner)

ii
 ACKNOWLEDGEMENT

I would like to express my gratitude to SVPCU Mandi for providing me an opportunity

to gain practical working knowledge through their Internship Training Program.
I would also like to give my deep, sincere appreciation to whole staff of Mahindra
Finance Gutkar, Mandi (HP) who helped me a lot to complete my Training Report. I
would like to give special thanks to Mr. Ankit Batas who gave me proper assistance
throughout my Internship Training through his working experience and knowledge in
this field.
Lastly I would like to thanks Dr. Nancee Chauhan (Training &Placement In Charge) of
SVPCU Mandi for their valuable instruction and guidance during the Internship
Program
.

Signature of student
Name of Student: - Mayank Sharma
Roll No.: - : 20110105022

iii
 EXECUTIVE SUMMARY

I did my Internship Training for 8 weeks from (1 st January – 28rdFebruary 2022), at

Mahindra & Mahindra Financial Services Limited Gutkar Mandi. Throughout this period,
I gained practical knowledge on how a NBFC operates and how it is different from
Banking Company. Not only that I have also gained insight into the working culture of
the organization and observed how they handles its customers and Mahindra Finance
handles its employees with value and empowerment to ensure they are motivated to give
their best to the organization.

The report starts with an introduction of my topic that is Financial Management. Next
section is about organization profile of Mahindra Finance giving its background, mission,
vision, products and services, the hierarchy and organogram of the organization.

The next section is about the working of Mahindra Finance its terms and conditions and
agreement.

The next section is about the Case Study on Vehicle Financing and difference between
NBFC and Banking Companies.

Next chapter is about Mutual Funds and SIP investment of MMFSL.Next section is about
Survey Conducted about Investment Plan and its interpretation.

iv
 INTRODUCTION TO MAHINDRA AND MAHINDRA FINANCIAL
SERVICES

Mahindra and Mahindra Financial Services Ltd.

The department is engaged in planning, construction and maintenance of roads, bridges,

ropeways and buildings (both residential and non-residential of various Govt. departments)
in the State. The department further executes engineering work on behalf of Local Bodies,
Public Undertakings, Boards & other Institutions under Himachal Pradesh Government as
"Deposit works".

ADMINISTRATIVE SETUP

Mahindra & Mahindra Financial Services Limited (MMFSL) is a

rural NBFC headquartered in Mumbai, India. It is amongst the top tractor financers in
India and offers a wide range of financial products to address varied customer
requirements. The NBFC has 1000+ offices spread over 1 in every 3 villages across India
with a total of more than 4.7 million customers to date.

PRODUCTS AND SERVICES

Vehicle Financing
SME Financing
Housing Finance
Insurance Broking
Asset Management Company (Mutual Funds)
Mutual Distribution
Mutual and Distribution
Fixed Deposits

v
MISSION AND STATEMENT

Mahindra and Mahindra financial services are known for providing financial services like
loans on vehicles and refinancing the new loans on vehicles. The Mahindra and Mahindra
financial services provide variety of plans regarding the loans for the vehicles. The main
objective of the company is to provide loans of variety of vehicles from personal to
commercial or small vehicles to large machines and trucks.

KEY PEOPLE

Ramesh Iyer ( Vice Chiairman & MD)

C.B Bhave ( Director)

Vivek Karve (Chief Finance Officer)

Arnavaz M Pardiwala ( Company Secretary & Compliance Officer)

Anish Shah ( Non Executive Chairman)

Milind Sarwate ( Independent Director)

Rebecca Nugent ( Independent Director)

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CHAIN OF COMMAND

Divisional
Manager

DIvisional
Divisional Finance
Marketing
Manager
Manager

Divisional Human
Loan Manager
Resources anager

Commercial Commercial
Vehicle Loans Equipment Loans
Manager Manager

Personal Vehicle
Loan Manager

Acountant Cashier Clerk

vii
 CHAPTER- 1
INTRODUCTION TO THE PROJECT

1.1 INTRODUCTION

The industrial training was done under the Mahindra and Mahindra Finance Gutkar
Mandi H.P., students from the Sardar Vallabh Patel Cluster University worked
together as a group or simply as a team to learn and understand the concepts and the
different ways or methods that are used for financial management at NBFC (Non-
Banking Financial Company. As a team on the NBFC we realized that the work of an
MBA intern is quite interesting and requires scrutiny of the available data in order to
ensure optimum financial management. We also realized that the work of an MBA
intern is not just limited to the theoretical but rather practical. Problem solving skills
on site are more important than just theory.

1.2 ABOUT THE PROJECT

The Mahindra and Mahindra Finance is engaged in providing loans for commercial
vehicles, commercial equipment, personal vehicles, personal loans, mutual funds and
fixed deposits. The Mahindra and Mahindra and Financial Services main purpose is to
finance the vehicles and equipment’s. The goal of our project is to finance the loan for
the vehicle of the customer. There are several steps in the finance of the vehicles like:

1. KYC (Know Your Customer)

2. Document Verification
3. Loan Agreement
4. CIBIL Score (Credit Information Bureau India Limited)
5. Application Form
6. Delivery Order
7. Welcome Letter

1
 CHAPTER 2

WEEKLY PROGRESS REPORT

1st Week

Introduction to Mahindra and Mahindra Finance.

Introduction
Introduction to Chain of Command of M&M Finance.

Introduction to Day-to-Day work on M&M Finance.

2nd Week

Daily file work.

Interaction with customers.

Basic Financial
Management

Generating RC of loaned vehicles

2
3rd Week

Introduction to CIBIL Score.

CIBIL Score Finding CIBIL Score of Customers.

Generalizing CIBIL Score of Customers.

4th Week

General Introduction to Mahindra and Mahindra

Finance Loan Agreement.

Types to Loan Agreement: Auto Finance, Refinance

Loan Agreement

Contents of Loan Agreement.

3
5thWeek

Delivery Order and Welcome Letter.

CIBIL Score and KYC Document Verification.

Customer File

Application Form and Loan Agreement.

6th Week

Daily Transactions at Cash Counter.

Submission of monthly Premium by customer.

Monthly Accounts

Monthly Cashbook.

4
7th Week

Customer Awareness to refinance.

Selection customers for Refinance.

Refinance

Refinance based on the current loan.

8th Week

Introduction to Mutual Funds.

Investment on Mutual Funds.

Mutual Funds

Mutual funds on Mahindra and Mahindra Finance.

CHAPTER-3
TECHNICAL CONTENT

5
3.1FINANCIAL MANAGEMENT

 Financial Management means planning, organizing, directing and controlling the

financial activities such as procurement and utilization of funds of the enterprise. It
means applying general management principles to financial resources of the
enterprise.

 Scope and Elements-

1. Investment decisions includes investment in fixed assets (called as capital

budgeting). Investment in current assets are also a part of investment decisions
called as working capital decisions.
2. Financial decisions - They relate to the raising of finance from various resources
which will depend upon decision on type of source, period of financing, cost of
financing and the returns thereby.
3. Dividend decision - The finance manager has to take decision with regards to the
net profit distribution. Net profits are generally divided into two:
a. Dividend for shareholders- Dividend and the rate of it has to be decided.
b. Retained profits- Amount of retained profits has to be finalized which will
depend upon expansion and diversification plans of the enterprise

 Objectives of Financial Management- The financial management is generally

concerned with procurement, allocation and control of financial resources of a
concern. The objectives can be-

6
 1. To ensure regular and adequate supply of funds to the concern.
2. To ensure adequate returns to the shareholders which will depend upon the earning
capacity, market price of the share, expectations of the shareholders.
3. To ensure optimum funds utilization. Once the funds are procured, they should be
utilized in maximum possible way at least cost.
4. To ensure safety on investment, i.e, funds should be invested in safe ventures so
that adequate rate of return can be achieved.
5. To plan a sound capital structure-There should be sound and fair composition of
capital so that a balance is maintained between debt and equity capital.

 Function of Financial Management-

1. Estimation of Capital Requirements

2. Determining Capital Structure
3. Choice of Source of Funds
4. Investment of Funds
5. Utilization of Funds
6. Disposal of Surplus
7. Management of Cash
8. Financial Controls

These are the basic functions of the financial management that are used in every financial
company.

1) Estimation of Capital Requirements: This is the foremost function of the

financial manager. Business firm require capital for:

a. Purchase of fixed assets

7
 b. Meeting working capital requirements, and

c. Modernization and expansion of businesses.

The financial manager makes estimates of funds required for both short-term and
long-term.

2) Determining Capital Structure: Once the requirement of capital funds has been
determined, a decision regarding the kind and proportion of various sources of
funds has to be taken. For this, financial manager has to determine the proper mix
of equity and debt and short-term and long-term debt ratio. This is done to achieve
minimum cost of capital and maximize shareholders wealth.
3) Choice of Source of Funds: Before the actual procurement of funds, the finance
manager has to decide the sources from which the funds are to be raised. The
management can raise finance from various sources like equity shareholders,
preference shareholders, debenture- holders, banks and other financial institutions,
public deposits, etc.
4) Investments of Funds: The financial manager takes steps to procure the funds
required for the business. It might require negotiation with creditors and financial
institutions, issue of prospectus, etc. The procurement of funds is dependent not
only upon cost of raising funds but also on other factors like general market
conditions, choice of investors, government policy, etc.

5) Utilization of Funds: The funds procured by the financial manager are to be

prudently invested in various assets so as to maximize the return on investment:
While taking investment decisions, management should be guided by three
important principles, viz., safety, profitability, and liquidity.

8
 6) Disposal of Surplus: The financial manager has to decide how much to retain for
ploughing back and how much to distribute as dividend to shareholders out of the
profits of the company. The factors which influence these decisions include the
trend of earnings of the company, the trend of the market price of its shares, the
requirements of funds for self- financing the future programs and so on.

7) Management of Cash: Management of cash and other current assets is an

important task of financial manager. It involves forecasting the cash inflows and
outflows to ensure that there is neither shortage nor surplus of cash with the firm.
Sufficient funds must be available for purchase of materials, payment of wages and
meeting day-to-day expenses.

8) Financial Control: Evaluation of financial performance is also an important

function of financial manager. The overall measure of evaluation is Return on
Investment (ROI). The other techniques of financial control and evaluation include
budgetary control, cost control, internal audit, break-even analysis and ratio
analysis. The financial manager must lay emphasis on financial planning as well.

3.1.1 CIBIL Score-

TransUnion CIBIL Limited is a credit information company operating in India. It

maintains the credit files on over 600 million individuals and 32 million businesses.

9
TransUnion is one of four credit bureaus operating in India and is part of TransUnion, an
American multinational group. CIBIL Score is assessment of the trustworthiness based on
information on their credit history. The higher the score the better. It is a 3-digit number
ranging between 300 and 900. Ideally, 720 and above score considered as good CIBIL
Score.

3.1.2 Consumer Credit Reporting-

Trans Union CIBIL aggregates the consumer borrowing and payment information for the
purpose of assessing the loan risk and pricing credit (setting the interest rate). It has
partnered with Chicago based Trans Union. Consumer credit scores are also used in
unemployment decisions, although there are no studies in India showing that impaired
credit leads to employee misconduct and unemployment.

3.1.3 Know Your Customer (KYC)-

KYC means Know Your Customer and sometimes Know Your Client. KYC or KYC
check is the mandatory process of identifying and verifying the client’s identity when
opening an account and periodically over time. In other words, banks must sure that their
clients are genuinely who claim to be.

KYC process includes ID card verification, face

verification, document verification such as utility bills as proof of address, and biometric
verification. Banks must comply with KYC regulations and anti-money laundering
regulations to limit fraud. KYC compliance responsibility rests with the banks. In case of
failure to comply, heavy penalties can be applied.

3.2VEHICLE FINANCING / AUTO FINANCING

10
3.2.1 Auto Financing-

Auto Financing also known as Car Finance, refers to the range of financial products
available that allow people to acquire a car with any arrangement other than a full-cash
single lump payment, it simply means borrowing money to buy a car. There are 4 types of
Vehicle financing –

 Auto Financing / Personal Car Loan

 CV - Commercial Vehicle Loan
 CE – Construction Equipment Loan
 Pre-Owned Vehicle Loan

3.2.2 Other Services by Mahindra Finance-

There are several other services that are provided by Mahindra and Mahindra Finance to
the customers. Some of them are listed as below-

 Personal Loan
 House Loan
 Refinance
 Top Up Loan
 Mutual Funds
 Fixed Deposits
 Insurance
 Hire Purchase
 SME Loans

11
Mahindra & Mahindra Financial Services
Limited Group Structure

12
3.2.3 Financial Agreement

13
Major Forms on Financial Agreement-

 Form 26
o (See Rule 53) Intimation of loss or destruction etc. of the Certificate
of Registration and application for the issue of Duplicate Certificate
of Registration

 Form 27
o (See Rule 54) Application for assignment of new registration mark
of removal of Motor Vehicle to another state.

 Form 28
o [See Rule 54, 58(1), (3) and (4)] Form of application for No
Objection Certificate and grand of Certificate.

 Form 29
o (See Rule 56) Form of notice of transfer of ownership of a Motor
Vehicle to be made in duplicate and the duplicate copy with the
endorsement of the Registering Authority to be refunded to the
Transfer immediately on making entries of transfer of ownership.

 Form 30
o [See Rule 55(2) and (3)] Report of Transfer of Ownership of a
Motor Vehicle Party for the use of Transfer.

 Form 33
o (See Rule 59) Intimation of change of address to be recorded in the
Certificate of Registration.

14
 Form 34
o (See Rule 60) Application for making an entry of an Agreement of
Hirer Purchases/ Lease/ Hypothecation subsequent to Registration.

 Form 35
o [See Rule 61(1)] Notice of Termination of an agreement of Hirer
Purchase/ Lease/ Hypothecation.

 Form 60
o (See third provisions to rule 118) Form of declaration to be filed by
person who does not have either a PAN or GIR number and who
makes payment in cash in respect of transaction specified in clauses
(a) to (h) of rule 118.

 Form TCA
o (See Rule 4) Intimation of Transfer of Ownership of Motor Vehicle
by Transferee.

15
 Chapter 4

Difference Between NBFC and Banking

BASIS FOR
NBFC BANK
COMPARISON

Meaning An NBFC is a Bank is a government

company that provides authorized financial
banking services to intermediary that aims at
people without holding providing banking services
a bank license. to the general public.

Incorporated Companies Act 1956 Banking Regulation Act,

under 1949

Demand Deposit Not Accepted Accepted

Foreign Allowed up to 100% Allowed up to 74% for

Investment private sector banks

Payment and Not a part of system. Integral part of the system.

Settlement
system

Maintenance of Not required Compulsory

Reserve Ratios

16
 BASIS FOR
NBFC BANK
COMPARISON

Deposit insurance Not available Available

facility

Credit creation NBFC do not create Banks create credit.

credit.

Transaction Not provided by Provided by banks

services NBFC.

While banks and non-banking financial companies (NBFC) both are key financial
intermediaries, that offer almost similar services to the customers. The major difference
between NBFC and bank is that unlike banks, an NBFC cannot issue self-drawn cheques
and demand drafts.

Another important point of distinction amidst these two is that while banks take part in the
country’s payment mechanism, non-banking financial companies are not involved in such
transactions.

As finance is the basic requirement of individual’s and business’s, banks alone cannot cater
all the sections of the society. That is why NBFC came into being, both in public and
private sector, to complement banks in providing finance to people.

17
4.1 Definition of NBFC

NBFC expands to Non-Banking Financial Company is a company registered under the

Companies Act, 1956 and regulated by the Central Bank i.e. Reserve Bank of India under
RBI Act, 1934. These entities are not banks, but they are engaged in lending and other
activities, akin to that of banks like providing loans and advances, credit facility, savings
and investment products, trading in the money market, managing portfolios of stocks,
transfer of money and so on.

It is indulged in the activities of hire purchasing, leasing, infrastructure finance, venture

capital finance, housing finance, etc. An NBFC accepts deposits, but only term deposits
and deposits repayable on demand are not accepted by it.

In India, these companies emerged in the mid-1980’s. Kotak Mahindra Finance, SBI
Factors, Sundaram Finance, ICICI Ventures are examples of popular NBFC’s.

NBFC is divided into three categories, which are:

 Asset Companies
 Loan Companies
 Investment Companies

18
4.2 Definition of Bank

Banks are the financial institution, authorized by the government to conduct banking
activity like accepting deposits, granting credit, managing withdrawals pay interest,
clearing cheques and providing general utility services to the customers. Banks are the
apex organization, which dominates the entire financial system of the country. It acts as a
financial intermediary, between the depositors and borrowers, that ensures smooth
functioning of the economy.

Banks can be public sector banks, private sector banks or foreign banks. They are
responsible for making loans, creating credit, mobilization of deposits, safe and time bound
transfer of money and providing public utility services. Ownership of a commercial bank
lies with the shareholder and they are operated with the profit motive.

4.3 Conclusion

NBFC’s are mainly established to grant credit to the poor section of the society, whereas
the banks are chartered by the government to receive deposits and grant credit to the
public. The licensing regulations of a bank are more stringent than that of an NBFC.
Moreover, a bank cannot operate any business other than the banking business, but an
NBFC can operate such business.

19
 Chapter-5

CASE STUDY

5.1 Case Study

A case study is a detailed study of a specific subject, such as a person, group, place,
event, organization, or phenomenon. Case studies are commonly used in social,
educational, clinical, and business research.

A case study research design usually involves qualitative methods, but quantitative
methods are sometimes also used. Case studies are good for describing, comparing
evaluating and understanding different aspects of a research problem. A case study is an
appropriate research design when you want to gain concrete, contextual, in-depth
knowledge about a specific real-world subject. It allows you to explore the key
characteristics, meanings, and implication of the case.

Case studies
often a good choice in a thesis or dissertation. They keep your project focused and
manageable when you don’t have time or resources to do large-scale research. We might
use just one complex case study where we explore a single subject in depth, or conduct
multiple case studies to compare and illuminate different aspects of your research
problem.

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5.2 Case Study of a Customer

During my internship on Mahindra and Mahindra Financial Services the main focus is on
vehicle financing. We observed the procedure for the vehicle financing by Mahindra and
Mahindra Financial Services to their customer. Case Study: How can any customer
apply for loan through Mahindra and Mahindra Financial Services. Various steps for
the application of the loan are written as follows:

1. Company Agent
2. Application Form
3. KYC Documents
4. Income Proof
5. CIBIL Score
6. Delivery Order (DO)
7. Welcome Letter
8. Vehicle Details (Registration, Insurance, etc.)

These are the basic steps for the vehicle financing in the Mahindra and Mahindra
Financial Services Limited. The Company agent play the most vital role in this process as
he is the representative of the company and give all details about the loan, various plans
of the company, verify the documents of the customer.

21
5.2.1 Company Agent

A company's agent can act for the company and in some cases legally bind it. “Agency” is
a legal term that describes the relationship between a principal (a person or business) who
engages an agent (other person or business) to act for the principal. Both the principal and
the agent must agree to the agency relationship. However, principals may communicate
the apparent authority of an agent in a certain area to a third party (called a manifestation
of the agent's authority) without communicating the scope of that authority to the agent
himself.

5.2.2 Application Form

Application form is the form provided by the company to the customer for filling. The
main purpose of the application form is to know the details of the customer. Application
form basically has columns for:

 Name of Customer
 Father’s name of Customer
 Mother’s name of Customer
 Permanent Address of Customer
 Temporary Address of customer
 Mobile Number
 Landline Number
 Email Address
 Aadhar Number
 PAN Number
 Bank Details (A/C No., IFSC Code, etc.)
 Photo ID
 Signature
 Vehicle Details
 Loan Details

22
Application Form from Case Study

23
24
5.2.3 KYC Documents

 Aadhar Card
 Driving Licence
 PAN Card
 Voter’s Identity Card
 Passport
 NREGA Card

These are the KYC documents that are required by the customer to be provided to the
company.

 Aadhar Card

25
5.2.4 Income Proof

Income proof is the updated document of the customer which provide the totally annual
income of the customer.

This is the income proof of the customer as an agriculture land.

5.2.5 CIBIL Score

26
CIBIL Score is a 3-digit numeric summary of credit history, rating and report ranges from
300 to 900. It is consumer’s credit score the closer the credit rating to 900 better credit
rating is. It is done by Credit Information Bureau India Limited (CIBIL). It is the most
popular of the four credit information companies licensed by Reserve Bank of India.

Asset Type What it means

Standard Payment is made within 90 days
(STD)
Non- Payment is overdue beyond 90 days
Performing
Asset (NPA)
Sub An account which remained a NPA for more than 1 year
Standard
Account
(SUB)
Special A special account is created for reporting a standard
Mention account deteriorating to a sub standard
Account
(SMA)
Doubtful An account which remains a SUB for more than 1 year
(DBT)
Loss (LSS) An account which has proven to be uncollectable and is
declared a loss.

CIBIL Score of the Customer

27
Bank Details of Customer

28
5.2.6 Delivery Order

A delivery order (abbreviated D/O) is a document from a consignee, or an owner or his

agent of freight carrier which orders the release of the transportation of cargo to another
party. Usually, the written order permits the direct delivery of goods to
a warehouseman, carrier or other person who in the course of their ordinary business
issues warehouse receipts or bills of lading.

29
5.2.7 Welcome Letter
Welcome letter is the great way of making the customer making appreciated. Welcome
letter of the Mahindra and Mahindra Financial Services contains the regards to the
customer for choosing the Mahindra Finance. It also contains the details of loan of the
customer total interest, principal, loan premium details and total number of premiums to
be paid.

30
5.2.8 Vehicle Details

Vehicle details usually contain the registration, insurance etc of the vehicle. Vehicle
details are required by the company to verify the vehicle existence and find in case of
customer was unable to pay the loan.

31
5.3 Analysis of Case

From the case study above, we can see that there are lots of formalities for the sanction of
the loan. The company agent plays important role in the process making the customer
comfortable to the company policy. The agent tells customer about the terms and
conditions of the company and all policies related to the loan. There are several plans
provided by the company to the customer according to the vehicle customer financing.

The main factors for

the loan is the document verification of the customer because it helps company to gain
trust in the customer and also saves them for the potential fraud. Generally, the document
verification required the detail of the document and the attested copy of the document and
original document for the company official to see for themselves. This concludes the

32
 main paper formality of the customer. Once the bank account of the customer gets
verified the loan is being sanctioned to the customer.

After the loan is being sanctioned the

premium details of the loan is given to the customer, as chosen by the customer during
the plan selection (like how many years of loan or how many premium in total). Customer
is also provided by the details of the total principal and interest he has to pay to the
company. Customer has also given choice to how he can pay premium every month.
There are several options that customer can choose like online methods from the
application of Mahindra Finance or auto debit from the bank or he can manually pay at
the nearest branch of the Mahindra and Mahindra Financial Services.

5.4 Conclusion

From the above case we can conclude that we came to know about the working culture of
the company. The basis of the loan and mutual funds. The process of sanction of the loans
in the company. The concept of refinance is also coming to light in the working
environment of the Mahindra and Mahindra Financial Services.

To conclude we can say that people

prefer more branded and variety of products with good rate of interest. Customers also feel
that there should be proper customer service. As customer satisfaction plays a vital role, it
has to be concentrated on seriously. The report reveals that there is huge scope for the
growth of organized retailing. The main factor that affects the business is location. They
seek value for money so also matter for customers to focus mainly on the service part.

33
 Chapter 6

MUTUAL FUNDS

Mutual Funds is a type of financial vehicle made of a pool of money collected from many
investors to invest in securities like stocks, bonds, money market instruments and other
assets. It is professionally managed investment fund that pools money from many investors
to purchase securities.

Mutual Funds are often classified by their principal investments; money market funds,
bond or hybrid funds. Funds may also be categorized as index funds, which are passively
managed. Primary structures of mutual funds are open-end funds, closed-end funds, unit
investment trusts.

6.1 Advantages

 Liquidity
 Diversification
 Expert Management
 Less Cost for bulk transactions
 Investment in smaller denominations
 Suits our financial goals
 Cost-Efficiency
 Tax Efficiency
 Safety
 Systematic Investment
 One- Time Investment
 More Options

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6.2 Disadvantages

o Cost of managing the mutual fund

o Exit Load
o Dilution

6.3 Assets Management Company

An assets management company (AMC) is a firm that invests pooled funds from clients,
putting the capital to work through different investments including stocks, bonds, real
estate, master limited partnership along with high- net worth individual (HNWI).

AMC manages hedge funds and pensions plans, and to better serve smaller investors
created pooled structures such as mutual funds, index funds (ETFs), which they can
manage in a single centralized portfolio. ETFs are also known as investment companies
or mutual fund companies.

6.4 Mahindra Assets Management Company Private Limited

(MAMPCL)

Mahindra Assets Management Company Private Limited is a company incorporated

under the Companies Act,1956, is the Investment Manager for Mahindra Mutual Fund, It
is wholly owned subsidiary of Mahindra and Mahindra Financial Services Limited.

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6.5 Systematic Investment Plan (SIP)

A Systematic Investment Plan (SIP) is an investment vehicle offered by many mutual

funds to investors, allowing them to invest small amounts periodically instead of lump
sums. The frequency of investors is usually weekly, monthly or quarterly.

In SIPs a fixed amount of money is debited by the investors in a bank accounts

periodically and invested in a specified mutual fund, The investors is allocated number of
units according to Net Asset Value, Every time a sum is invested more units are added to
investors account.

SIP claims to encourage disciplined investment. SIPs are flexible; the investors may stop
investing a plan anytime or may choose to increase or decrease the investment amount.
SIP is usually recommended to retail investors who do not have the resources to pursue
the active investment.

6.6 Mahindra Manulife Mutual Fund

Mahindra Manulife is one or top & best mutual fund investment companies in INDIA
endeavors’ to offer a variety of mutual fund and SIP

It is a joint venture of Mahindra& Mahindra Financial Services Limited and Manulife

Investment Management (Singapore) , Pte. Ltd, together brings Mahindra’s domestic
market strength and track record of successfully building businesses focused on meeting
customer need and Manulife’s global wealth and asset management capabilities and
richness of experience in serving the need in India

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6.7 Key People

 Ashutosh Bishnoi (MD& CEO)

 Ms, Ashwini Sanke ( CFO)

 Jatinder Pal Singh( Chief Marketing Officer)

 Rathin Lahiri (Chief Business Developmemt Officer)

 Ravi Dayma (Compliance & Risk, CS)

 Sanjay D’ Chuha (IT & Chief Information Security Officer)

 Pooja Vineet Dherkar ( Investors Relations Officer)

 Mr, Amit Hiremath ( Overseas Investment Manager)

6.8 Schemes of Mahindra Mutual Funds

 Equity Schemes

 Debt Schemes

 Hybrid Schemes

 ELSS

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Equity Schemes

38
39
Debt Schemes

40
Hybrid Schemes

41
42
43
 Chapter-7

RESEANCH METHODOLOGY

7.1 Research Methodology

Research is a common parlance which refers to search for knowledge. It is a procedure of

logical and systematic application of the fundamentals of science to the general and overall
questions of a study and scientific technique, which provide precise tools, specific
procedures, and technical rather philosophical meaning for getting and ordering the data
prior to their logical analysis and manipulating different type of research designs is
available depending upon the nature of research project, availability of manpower and
circumstances. Research methodology is a way to systematically solve research problem In
it. we study the various steps that are generally adopted by researcher in studying his
research problem along with the logic behind them. It is necessary for a researcher to know
not only the research methods/techniques but also the methodology. It may be noted, in the
context of planning & development, that the significance of research lies in its quality and
not in quantity. Researchers should know how to apply particular research techniques, but
they also need to know which of these methods or techniques, are relevant and which are
not, and what would they mean and indicate and why.

7.2 Research Design

A Research Design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. Infact, the research design is the conceptual structure within which the research
is conducted. This research was descriptive in nature. I proposed to first conduct a

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intensive secondary research to understand a the full impact and implication of the
industry, to review and critique a industry, norms and reports, on which certain issue shall
be selected, which I feel remain unanswered or liable to change, this shall be further taken
up in the next stage of exploratory research. This stage shall help me to restrict and select
only the important questions and issue. Which inhabit growth and segmentation in the
industry.

There are various stages to solve the research problem as shown in following program:

 Identify the Problem

 Reviewing Literature

 Setting Research Literature

 Choosing the Research Design

 Deciding on Sample Design

 Collection of Data

 Processing and Analyzing Data

7.3 Descriptive Research

The research undertaken was a descriptive research as it was concerned with specific
predictions, with narration of facts and characteristics concerning Mutual Funds provided
by Mahindra & Mahindra Financial Services Ltd.

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 7.4 Sampling Design

The following factors have been decided within the scope of sample design:

Sample Size- A Sample of minimum respondents was selected from the Mandi Region.
An effort was made to select respondents evenly. The survey was carried out on 60
respondents.

Sample Unit- In this project sampling unit consisted of the various individuals,
businessman and services.

Sampling Technique- For the purpose of research Convenient Sampling Technique

was used.

Sampling Frame- It consisted of various sources from where information about the
respondent is extracted. Mainly personal links, customers of Mahindra Finance and
common people are used for getting information about the respondents.

7.5 Data Collection

There were 2 types of data sources used in the research

Primary Data- It is the data collected for the first time from the source and never have
been used earlier. The data can be collected through interviews, observations and
questionnaires. In this project, an appropriate questionnaire was designed which was filled
by the customers of Mahindra Finance, the investors and others people who want to invest
their money. In this project report, the primary data has been collected through the
questionnaires which helped in the analysis and the interpretation part.

46
Secondary Data-It is the data collected for already being used or published information
like Journals, Magazines, Research Papers, Internet, Books etc. In this research project
secondary source used were various journals, research papers, Books etc.

In this report we use Secondary Data.

7.6 Data Analysis

Tools of Presentation -It means what all tools are used to present the data in a
meaningful way so that it becomes easily understandable.

Tools of Analysis- In this research the tools of analysis used was Google Forms is used.

Limitations of the Study- This study will facilitate in understanding the consumer
preferences towards the MAHINDRA AND MAHINDRA FINANCE fixed deposit, and
broker emapanelment. There are certain limitations of this studies are-

 This study will be limited to only some areas of Mandi city.

 It is only for short period of time. Survey to a only limited numbers

of people

 The sample size is only 60 so the sample may not be truly

representative of Jalandhar population.

 Some respondents did not provide the all and accurate data.

 There may be some biased response from the respondents.

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 Chapter-8

DATA INTERPRETATION AND ANALYSIS

This survey is conducted by me understand the Investment Pattern of 60 individual of

Mandi town. This survey is done by using Google Forms.

8.1 Survey About Investment Plan

1. E- Mail Id

2. Name

3. Contact Number

4. Occupation of Respondent

 Student

 Business

 Government Employee

 Private Employee

 Employer

 Other

 None

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Result

5. Income Statue

 Salary
 House Property
 Profit and Gain of Business
 Capital Gain
 Other Income
 None

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Result

6. Income Slab (Per Annum)

 0-2.5 Lakh
 2.5-5 Lakh
 5-7.5 Lakh
 7.5-10 Lakh
 More than 10 Lakh
 None

50
Result

7. Are you interested in Investment

 Yes
 No
 Maybe

Result

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8. Do you know about Mutual Funds

 Yes
 No
 Maybe

Result

9. Do you know about SIP (Systematic Investment Plan)

 Yes
 No

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Result

10. Do you want to invest money in Mahindra Mutual Fund

 Yes
 No
 Maybe

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11. What will be your prefer mode of Investment

 Monthly Basis
 Quarterly Basis
 Yearly Basis

12. What will you prefer

 Lump Sum Payment

 Installment

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8.2 Interpretation of Survey

From this survey I conclude that most of the respondents are student (60%), They have
knowledge of mutual funds(65%) but they don’t have knowledge about SIP.

I also conclude that most of the respondent prefer Bank Deposit (31.7) and Stock Market
(21.7) . And at I conclude that most of respondent (60%) not want to invest in Mahindra
Mutual Fund because they don’t have proper knowledge .

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 Chapter-9

CONCLUSION

The industrial training at Mahindra and Mahindra Financial Services proved very
productive for me. In this training, I have learned a lot of things about need of various
formalities for the loan approval and refinancing. I came to know how things are in
actual as every work has been done practically. The exposure given to me by this training
helped to understand the auto financing, refinancing, coordination, team work and a
healthy communication while working. Through this training I come to know about the
different software, files, documents, daily transactions records.

Mahindra and Mahindra have very high market share. The company is offering good
services which reflected on the satisfaction of the customers. Mahindra and Mahindra
providing better facility than the other.

 On the first mostly the people are preferring FD with good rate of interest rather
Then any other scheme So Mahindra is competing with two organizations in the
Terms of Fixed Deposit, these are
HDFC Bank (Because of CRISIL FAAA rating) and
Shriram Transport Finance Ltd. (Because of Higher rate of interest)

 The second thing I have found that brokers are not so willing to sell this product
because of less interest rates as compared to its customers.
 In the city like Jalandhar, as one of the major cities of state Punjab, does not
have any FD department, which is resulting the problem for those who are ready to
invest in FD
 Another thing is found that some people are still stuck with govt. banks for them
investment.

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 FINDINGS

After the completion of industrial training program of Financial Management and Loan
Management project, we get the technical and practical knowledge about the work in the
company. After the completion of industrial training, we find so many new things which
are described as follows:

• We learnt how to deal with authorities and workers at the office during
supervision.

• We learnt how to deal with technical problems during auto financing.

• We find that team work is the most important element in every successful
project.

• We find that MBA Intern is capable of a lot of work such as supervision,

implementation, management, decision management, financial decisions and
overall profit maximization.
• We find that how to control and manage the customer and how to solve quires
and problems by take a professional discussion.
• Finding that plans must be clear and easy to read for those who used.

• We learned about the mutual funds and about their risks and terms.

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 BIBLIOGRAPHY/REFERENCES

(a) Financial Management by IM Pandey Pearson publications

(b) www.mahindrafinance.com

(c) www.wikipedia.com

(d) www.managementstudyguide.com/financialmanagement

(e) Sharma and Joshi 2012 http://ijmr.net/wpcontent/uploads/2013/03

(f) www.investmentideas.com

(g) Analysis of Financial Management by Robert Higgins McGraw Hill Publications

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