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INTRODUCTION
CHAPTER 1
INTRODUCTION
INTRODUCTION
This is an art of preparing an educative project report
offers to provide some aspects and details regarding to
Analytical Study of Various Financial Products with the
special reference to Muthoot finance, Sagar. In this project
report, the marketing financial activity has been brought out in
abroad & also the details regarding the financial services & its
marketing activities.
In this project report an attempt is made to bring out
the details regarding the history and achievements for the
dynamic growth of the Muthoot finance. The era of finance
which has been taken a talkative role has also been described.
As we know finance plays a vital role in the market
and development of economy. Financial services are needed for
every organization to run the business efficiently. It is required
in all sectors of the market i.e., education, Govt, business,
trading, agriculture small scale business etc. Finance plays a
main role in day to day life. Finance includes money, financial
policy, financial services and financial consultants. Finance is
considered as life blood of an organization. It is important in
development of economy. Finance increases the savings and
mobilization of funds. It is very useful in new innovations in
service sector.
MEANING OF FINANCE
Finance is considered to be the foundation of basic
activities of any business.
Particularly in production and marketing activities. The
finance functions in the same way as oil functions in the
operation of machine or
blood functions in the human body.
In the absence of finance, nobody can image either of
setting up a business or its operations and development. Not
only this, finance is needed in those areas where economic
activities of any type are performed.
Generally
speaking,
business
finance
means
the
Since the
business
activities,
organization
of
any
type
(sale
DEFINITIONS OF FINANCE
According to Husband and Duckeny:
Something must be there for directing the flow of
economic activities and their conduct without any bottleneck.
Finance is the only means which can perform their function.
According to Osborn, R.C
The finance function is the process of acquiring and
utilizing funds by a business.
According to Bonneville and Dewey
Financing consists in raring, providing, managing, of all
money, capital or funds of any kind to be used in connection
with the business.
CHAPTER-II
FINANCIAL SERVICES
CHAPTER-2
FINANCIAL SERVICES
When
the
country
improves
financially
growth,
this
source
is
resorted
to
finance
that
obsolete
and
some
of
there
are
available
as
a) Debentures:
Business concern may also raise funds for financing the
working capital by issue of debentures in the same way as the
issue of shares.
Costly raw-material.
insurance
companies
also
provide
loan
to
is
normally
financed
through
short-term
sources
1) Trade Credit
2) Bank Credit
3) Public Deposits
4) Inter-corporate Deposits
5) Advances from customers
6) Internal sources
7) Some new and innovative sources (Non-Bank) such as
a) Commercial Paper
b) Convertible Debentures
c) Factoring
1) Trade Credit:
Sellers/suppliers
of
different
kinds
of
product/raw
allowed.
All the successful business concerns which have good
record of payment and/or good credit rating are availing this
trade credit continuously.
Trade credit is an
Overdraft account
for
meeting
their
short-term
financing
Normally, no
paper
is
short-term
money
market
take advantage of this source the investors too can earn profit
by using their short-term funds.
As a source of short-term fund, commercial paper is most
popular in Japan and western countries.
In the USA, it is in
two
decade
or
Since
banks
generally
grant
Factor, i.e.
CHAPTER -3
COMPANY PROFILE
CHAPTER -3
COMPANY PROFILE
COMPANY BACKGROUND:
The Muthoot Group is a 123 years old business based in
India
and
interested
in
financial
services,
Information
and
rewarding
dedication
to
commitment
are
various
financial
services
such
as
Insurance
gross
Gold
Loans
under
management
In the years ended March 31, 2008, 2009 and 2010, our
total income was Rs.3,686.4 million Rs.6,204.0 million and
Rs.10,893.7 million, respectively, demonstrating an annual
growth rate of 57.56%, 68.29% and 75.59%, respectively. Our
profit after tax in the years ended March 31, 2008, 2009 and
2010 was Rs.636.0 million, Rs.977.2 million and Rs.2,275.7
million, respectively, demonstrating an annual growth rate of
44.61%, 53.65% and 132.88%, respectively. Our net worth as
of March 31, 2008, 2009 and 2010 was Rs.2,131.1 million,
Rs.3,614.5 million and Rs.5,841.9 million, respectively. We
believe that the following competitive strengths position us
well for continued growth:
PROFILE OF FOUNDER OF MUTHOOT GROUP
In 1887, in Kozhencherry a quiet hamlet surrounded by
plantations in the Southern state of Kerala, India, Mr. Ninan
Mathai started a retail business along with his plantation
ventures.In time, his sons took over the reins and reestablished the business. With their youthful vision and
combined strength it soon flourished. In 1939, the brothers
established the Muthoot Chit Fund Enterprises, providing small
and medium loans to farmers and merchants. In a short span of
10 years it became the largest business house of its kind in
Kerala.
They soon moved into full fledged banking operations.
They
specialised
in
gold
loans
and
advances
to
small
peace,
happiness,
kindness,
helpfulness,
patience,
In dire
the
organisation
he
nurtured.
The
Muthoot
various
services
according
to
the
needs
and
cent of
gold
local
events(20-20
cricket
tournament,Israel
open
MARKET
LEADING
POSITION
IN
THE
GOLD
LOAN
daily.
Our
branch
network
has
expanded
CHAPTER -4
PRODUCT PROFILE
CHAPTER -4
PRODUCT PROFILE
INTRODUCTION
The year 1939 saw the emergence of the present day
corporate giant- The Muthoot Group. It embarked on its
unending
mission
of
providing
excellent
services
to
its
through
unmatched,
prompt
and
personalized
service.
ADMINISTRATIVE SET UP OF MUTHOOT GROUP
The Registered Office of the group is situated at
kozhenchenrry In
South
Bangalore
Hyderabad
Trivendrum south
tamilnadu
Sivagangai
North
Bangalore
Secunderabad
Kollam
Kottarakkara
Kozhenchery
Ernakulam
Trichur
Alleppey
Idukki
Calicut
KOLKATTA
KARNAL
MUMBAI
Trichy
Madurai
Coimbatore
Chennai South
Chennai north
Pondichery
Salem
Theni
Thirunelveli
Thanjavur
WESTBEGAL
HARIYANA
MAHARASTR
AHAMADABAD
DELHI
WEST DELHI
JAIPUR
A
GUJRAT
DELHI
DELHI
RAJASTHAN
South
Hubli
Mangalore
Mysore
Goa
vijayawada
Kurnool
Vishakapatanam
Thirupathi
Rajamundry
Started in 1939
ISO 9001-2000 Company
Deals in Gold Bond (Deposits) , Gold Loan, & M Power
Card
2. MUTHOOT PLANTATION DIVISION
Since 1939
Commitment of Muthoot Group to pollution free world
Our Estates are St. Mathews Estate, Koodal & St. Mathews
Estate, at Kulasekharam Nagercoil;
Muthoot Plantation boasts cloves, coconut and Rubber.
3. EDUCATION DIVISION
Since 1962
Muthoot
Nursing
School,
Kozhencherry,
Pathanamthitta
Staff Training Colleges at Ernakulam & New Delhi
4. MUTHOOT HOSPITALITY & HOTEL DIVISION
Cardamom County
Started in 1978 & Our Group purchased this project in
2000
Just 1 Km from famous Periyar Tiger Reserve
of
Pampa
river.
Mar
Gregorios
Memorial
Muthoot
Medical
centre,
Gregorios
Memorial
Muthoot
Medical
centre,
Pathanamthitta
Muthoot MRI Scan & Research Centre.
6. MUTHOOT VEHICLE & ASSET FINANCE DIVISION
Since 1992
Keralas largest I-lire Purchase & Leasing Finance
Company
its
fifteen
years
of
operation,
Muthoot
Builders have
built
several
meticulously
planned
residential,
3) First Remit
4) Instant Cash
5) Money Gram
Outward Remittance
1) Wiremoney
10. MUTHOOT WEALTH MANAGEMENT SERVICES PVT.
LTD.
Life Insurance
Mutual Funds
General Insurance
time.
payment
facilities
at
KSEBs
and
major
phone
companies.
8. USP-MWMS
Dealing in life Insurance Investment Products
Advice on best insurance product of all major Insurance
Companies
Market Linked Products which are consistently delivering
good return
Unit linked and Investment oriented Insurance Plans
Provides Flexibility gives Protection to savings of life
CHAPTER -5
RESEARCH
METHODOLOGY
CHAPTER -5
RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY
for
the
further
development
of
the
organization.
LIMITATIONS
Time allowed for the study was not sufficient.
A sample survey was selected.
The data provided by the respondent may not be correct or
accurate.
Some of the samples selected for the study did not respond
properly to the questionnaire. However proper care had
taken to make the analysis and interpretations more
meaningful.
Questionnaires are impersonal, this means that it may be
difficult to understand answers and thus to act on them.
Also,
there
is
chance
that
the
question
may
be
answers,
making
questionnaires
unreliable
and
sometimes invalid.
RESEARCH PLAN
In this chapter, explains the structural frame work .The
research methodology considered as a blue print of the study. It
determines the strengths, reliability and accuracy of the
project. Methodology can be said as the methods used by
researchers in selecting samples, sample size, data collection
and various tools in data collection.
PRELIMINARY INVESTIGATION
Preliminary investigation involves the following:
Direct visit to the company.
Discussions with the branch manager.
Analysed about the scope and viability of the existing
facilities.
Secondary data were used to get an overview about the
two companies.
EXPLORATORY STUDY
Personal interviews with branch manager, staff and the
customers.
Questionnaires were used to understand various factors
affecting the gold loan financing decision.
Observational design
Observational design relate to the conditions under which
the observations are to be made while conducting research
studies.
Statistical design
These design concern with the quantitative and statistical
aspects of the design such as technique of study, the methods
of model building etc.
COLLECTION OF DATA
PRIMARY DATA
The data collected directly by the investigator are called
primary data. They are original and give first hand information.
It can be collected by different methods viz. direct personal
investigation, indirect oral investigation etc. Primary data were
collected through
- Questionnaire
- Personal interview
- Survey method
- Observation
- Expert opinion
Questionnaire
The primary data was collected mainly by using a
questionnaire. In study, structured questionnaire consisting of a
list of questions pertaining to the dichotomous questions,
multiple choice questions and questions for recommendations
and suggestions. This facilitates the respondents to fill up the
questionnaire is an easy and fast manner.
The questions are divided in two following sections: Personal details
Inquiry details
Personal Interview
can
procure
many
different
types
of
information
The amount of information produced on each aspect is
larger.
There is a possibility of more accurate reply
SECONDARY DATA
The collected by the investigator from the data already
collected by others for some other purpose are called
secondary data. Thus secondary data are refined data from
primary data. It is also called second hand data because data is
collected from previous reports about the organization from the
internal books, magazines and World Wide Web. Secondary
data are collected through
- Annual reports
- Websites
CHAPTER - 6
DATA ANALYSIS &
INTERPRETATION
CHAPTER - 6
DATA ANALYSIS & INTERPRETATION
NO. OF RESPONDENTS
PERCENTAGE
Below 2000
15
30
2000-4500
13
26
4500-6000
12
24
10
20
TOTAL
50
100
interpretation
Chart showing classification of respondents on their
monthly income.
out of 50
TABLE-2
SHOWING
THE
CLASSIFICATION
NO. OF
PERCENTAG
YEARS)
30-35
RESPONDENTS
23
E
46
35-40
40-45
45-50
18
5
4
36
10
08
TOTAL
50
100
OF
Interpretation:
Chart showing the classification of respondents according
to their age group 23 of the respondents among the 50
respondents have age group of less than 30-35, while 18 of
then age group of between 35-40, 05 of the respondents have
the age group between 40-45, 4 of the respondents are in the
age group of 45-50.
TABLE-3
SHOWING
THE
CLASSIFICATION
OF
OCCUPATION
NO. OF
percentage
Govt. employee
RESPONDENTS
10
20
Businessmen
20
40
Agriculturist
14
Professional
13
26
TOTAL
50
100
interpretation
Chart
showing
the
classification
according
to
their
20
of
respondents
are
businessmen,
07
of
No Of
percentage
Once
2-5 times
6-10 times
More than 10
Respondent
28
22
0
0
56
44
0
0
50
100
times
total
Interpretation
The above chart shows that the out of 50, the opinion of
the 28 respondents suggest that 56% of Muthoots customers
applies for a gold loan just once, while the rest of the 44%
applies for a gold loan 2-5 times.
No of
Percentage
Excellent
Very good
Good
Fair
Bad
Total
respondents
22
12
10
06
0
50
44
24
20
12
0
100
Interpretation
The
above
chart
was
designed
to
understand
the
No of
percentage
Excellent
Very good
Good
Fair
Bad
Total
respondents
25
12
10
03
0
50
50
24
20
06
0
100
Interpretation
Staff behavior is interpreted in the above chart. About
50% of the organizations thought that the behavior of staff is
excellent. The share of customers who choose very good as the
option stands at 24% for Muthoot finance.20% of respondents
believe that staff behavior was good and 06% of respondents
No of respondents
22
13
10
05
0
Percentage
44
26
20
10
0
Interpretation
The above chart was designed to interpret the response
of customers to Muthoot finance gold loan procedure .It was
interpreted that 44% and 26% of Muthoots respondents
believed that this factor was excellent and very good
respectively. As for option Good and Fair the share stands at
Opinion
No of
Percentage
respondents
03
07
18
22
0
06
14
36
44
0
mention)
Total
50
100
Interpretation
The above diagrams represents one of the main factors
which decides the fate of any loan financing company i.e. time
9.
HOW
SATISFIED
ARE
YOU
WITH
THE
SECURITY
No of
percentage
100%
80- 99%
60- 79%
40- 59%
>40%
Total
respondents
5
06
18
15
06
50
10
12
36
30
12
100
Interpretation
satisfied
with
the
security
facilities.
18
Opinion
No of
Percentag
Newspapers
Journals and
respondents
08
06
e
16
12
Magazines
T.V Advertisements
Notice
Friends and relatives
Others (Please
24
2
10
0
48
04
20
0
50
100
specify)
Total
Interpretation
Muthoot finance. Other sources like journals and magazinesMuthoot finance is 12%.
Opinion
No of
percentage
Strongly agree
Agree
Neutral
Disagree
Strongly
respondents
10
30
08
02
0
20
60
16
04
0
disagree
Interpretation
It is interpreted from the above diagrams that a majority
of the 60% respondents of Muthoot Finance agrees to the fact
that the company are able to provide effective loans even after
the recent fluctuations in rates.
Those respondents who strongly agree to this fact constitute
20% and 16% opted for neutral while rest 04% disagreed to
this fact.
12. TABLE SHOWS THAT IN CASE OF DEFAULT, DOES
MUTHOOT
FINANCE
ASSIST
BY
PROVIDING
PAYBACK PERIOD
Opinion
No of
Percentage
Strongly agree
Agree
Neutral
Disagree
Strongly
respondents
12
28
10
0
0
24
56
20
0
0
disagree
Interpretation
LONG
CHAPTER 7
FINDINGS,
SUGGESTION
&
CONCLUSION
CHAPTER 6
FINDINGS, SUGGESTION & CONLUSION
FINDINDS
The major finding of the study can be summarized as follows:
The management and employees of both the companies
maintains a good relationship.
Most of the respondents (58.33%) have monthly income
range between Rs.5000 Rs 10,000.
Media advertisement has an important role in spreading
popularity Incase of Muthoot Finance.
Majority of the respondents have the opinion that the
behaviors of companys staff are cordial and friendly.
Majority of the customers were satisfied with the services,
hence there was no need of complaints to be lodged.
The study was also aimed at finding best gold loan financing
company. After analyzing and interpreting the data collected
through primary and secondary sources, the following
conclusions were made:
The estimated gold loan portfolio of Muthoot Finance
Limited (7,342 Crores) is far superior and leasing Limited
(2,560 Crores) which indicate the sound market position
of Muthoot Finance Private Limited.
It was also interpreted that Muthoot Finance Limited has
more regular customers.
The interpretation of data also indicated that the public
are more satisfied with the interest on gold loan offered
by Muthoot Finance. This might be a result of its
experience in the gold loan market and its objective to
provide gold loans at cheaper and affordable rates.
Another important finding was presence of Muthoot
throughout the country as well as aboard.
It
was
also
interpreted
that
Muthoot
Finance
was
SUGGESTIONS
FOR MUTHOOT FINANCE
Muthoot should work on its marketing strategies to
improve its market share.
Most of the people are unaware of the different financial
products offered by Muthoot. So the company should take
necessary steps to create awareness among the public.
The company can also give attractive offers to old
customers as well as prospective new customers.
The company can also look into new ventures as it has
established itself as the leader in gold loan financing field.
Muthoot should also speed up its process in offering IPO.
CONCLUSION
QUESTIONNAIRE
&
BIBLIOGRAPHY
Female
5. Monthly salary:
6. How often do you take a gold loan in a year?
a)
b)
c)
d)
Once
2- 5 times
6- 10 times
More than 10 times
Rate of interest
:
Location of the institute
:
Staff behavior
:
Gold loan application procedure:
Infrastructure facilities
:
100%
80-99%
60-79%
40-59%
>40%
10.
Newspapers
Journals and Magazines
T.V. Advertisements
Notice
Friends and relatives
Others (Please specify)
11.
14.
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
____________________________________________
15.
__________________________________________________________
____________________________________________
Date:
Signature:
BIBLIOGRAPHY
BOOKS
JOURNALS
17th Annual Report of Manappuram General Finance and
Leasing Limited
Draft Red Herring Prospectus of Muthoot Finance Limited
issued on 30th September 2010
WEBSITES
http://www.muthootfinance.com/
http://www.thehindubusinessline.in/2010/11/27/stories/20
10112751420600.htms
http://www.theequitydesk.com/forum/forum_posts.asp?
TID=2635&PN=1