PREFACE

The title of this study is "FNANCAL ACTVTES Finance is defined

as the provision of money when it is required. Every enterprise needs finance to start
and carry out its operation. Finance is the lifeblood of an organization. So, finance
should be managed effectively.
Financial Activity enables insurance carriers to provide distributors with
daily annuity and life insurance financial transaction information, giving them a
comprehensive and accurate picture of client accounts and helping them supervise
and manage those accounts.
This company provides financial solution to our customer like Vehicle
finance, Small secured loan, life insurance & General nsurance .This company
comes under Assets Finance Company (AFC) & Companies extensive network in
semi-urban and rural areas of Rajasthan, Maharashtra and Gujarat has brought the
benefit of growth to people outside the usual scope of organized finance and allowed
us to propagate the motto of inclusive growth.
Company has more than 85 Branches across Rajasthan, Maharashtra &
Gujrat . And No. of customers is increasing very fast as on May20 10 Company has
45,721 Customer across these locations and No. of Employers is 685 as on May201
0. Company is performing well because in2007-08 company Net Worth was24.75
and in20 09-10 were115.55.This Project will focus on Managing of Fund. t will
include Management of net funds available for investment and external funds
purchased from banks. (Owner Capital + funds purchased from banks.)
Company extensive network in semi-urban and rural areas of
Rajasthan, Maharashtra and Gujarat has brought the benefit of growth to people
outside the usual scope of organized finance and allowed us to propagate the motto
of inclusive growth. ts biggest area of operation is commercial vehicle financing
where we serve the requirements of various categories of the market right from three
wheelers to multi-axle trucks.

Executive Summary

AU Financiers (ndia) Private Limited is registered with Reserve Bank
of ndia (RB) as Non-Banking Finance Company (NBFCs). AU Financiers is fast
growing company with roots in Rajasthan, and branches spread in Maharashtra and
Gujarat and planning to increase our presence to pan ndia.
This company provides financial solution to our customer like Vehicle
finance, Small secured loan, life insurance & General nsurance.This company
comes under Assets Finance Company (AFC) & Companies extensive network in
semi-urban and rural areas of Rajasthan, Maharashtra and Gujarat has brought the
benefit of growth to people outside the usual scope of organized finance and allowed
us to propagate the motto of inclusive growth.
AU Financiers biggest area of operation is commercial vehicle
financing where Company serve the requirements of various categories of the
market right from three wheelers to multi-axle trucks. From first time buyers of new
vehicles to refinancing of running vehicles and this extensive product portfolio allows
this company to cater to a broad cross section of the market.
Company has more than 85 Branches across Rajasthan, Maharashtra
& Gujrat. And No. of customers is increasing very fast as on May20 10 Company has
45,721 Customer across these locations and No. of Employers is 685 as on May201
0. Company is performing well because in2007-08 company Net Worth was24.75
and in20 09-10 were115.55.This Project will focus on Managing of Fund. t will
include Management of net funds available for investment and external funds
purchased from banks. (Owner Capital + funds purchased from banks.)
This Project will help us to understand the shortage of the fund, means
by doing this we can know that when fund will short and accordingly we can manage
fund for further investment activities. By making month wise fund flow statement we
can know shortage and excess of the fund. This project gives the importance of fund
management tools and principles.
Industry ProfiIe

43a3i3 Fi3a3cial C4mpa3ies (FCs)

Non-banking financial companies (NBFCs) are fast emerging as an
important segment of ndian financial system. t is a heterogeneous group of
institutions (other than commercial and co-operative banks) performing financial
intermediation in a variety of ways, like accepting deposits, making loans and
advances, leasing, hire purchase etc. They raise fund from the public, directly or
indirectly, and lend them to ultimate spenders. They advance loans to the various
wholesale and retail traders, small-scale industries and self-employed persons.
Thus, they have broadened and diversified the range of products and services
offered by a financial sector.
Gradually, they are being recognized as complementary to the
banking sector due to customer-oriented services, simplified procedures, and
attractive rates of return on deposits, flexibility and timeliness in meeting the credit
needs of specified sectors. The working and operations of NBFCs are regulated by
the Reserve Bank of ndia (RB) within the framework of the Reserve Bank of ndia
(RB) Act, 1934.

As per the RBI Act, a 'non-banking financiaI company' (NBFCs) is defined as :-

(i) A financial institution which is a company.
(ii) A non banking institution which is a company and which has as its principal
business the receiving of deposits, under any scheme or arrangement or in
any other manner, or lending in any manner.
(iii) Such other non-banking institution or class of such institutions, as the bank
may, with the previous approval of the Central Government and by
notification in the Official Gazette, specify.


%he types of NBFCs registered with the RBI are:-


Equipment Ieasing company :- is any financial institution whose principal business
is that of leasing equipments or financing of such an activity.

Hire-purchase Company :- is any financial intermediary whose principal business
relates to hire purchase transactions or financing of such transactions.

Loan company: - means any financial institution whose principal business is that of
providing finance, whether by making loans or advances or otherwise for any activity
other than its own (excluding any equipment leasing or hire-purchase finance
activity).

Investment Company: - is any financial intermediary whose principal business is
that of buying and selling of securities.

Now, these NBFCs have been recIassified into three
categories:-

Asset finance Companies (AFC)

AFC are financial institutions whose principal business is of financing
physical assets such as automobiles, tractors, construction equipments material
handling equipments and other machines.

E.g.: Bajaj Auto Finance corp., FuIIerton India etc

Investment Companies (IC)

Cs generally are involved in the business of shares, stocks, bonds,
debentures issued by government or local authority that are marketable in nature.

E.g.: Stock Broking Companies, GiIt firms


Loan Companies (LC)

LCs is loan giving companies which operate in the business of providing loans.
These can be housing loans, gold loans etc

E.g.: Mannapuram GoId Finance, HDFC


NBFCs are different from Banks

NBFCs cannot accept demand deposits (Demand deposits are funds
deposited in an institution, that are payable immediately on demand

E.g: Savings account, Current account etc)


A NBFC cannot issue cheques, to their customers and is not a part of
the payment and settlement system Deposit insurance facility of Deposit nsurance
Credit Guarantee Corporation (DCGC) is not available for NBFC depositors.
They cannot offer interest rates higher than the ceiling rate prescribed
by RB from time to time. (Currently the ceiling rate is12.5%). They cannot offer
gifts/incentives or any other additional benefit to the depositors. They should have
minimum investment grade credit rating, from the credit rating agencies.

Company ProfiIe

AU Financiers (ndia) Private Limited, registered with Reserve Bank
of ndia as a Non Banking Finance Company (NBFC) and this company was
promoted by Mr. Sanjay Agarwal in the year 1996. Originally the Company was
incorporated as. Finco Gems Private Limited but in2005 Company has changed its
named into AU Financiers (ndia) Pvt. Ltd The objective was to align the Company
name with business line of the Company.
AU Financiers is a fast growing financing company with our roots in
Rajasthan, and branches spread in Maharashtra and Gujarat and planning to
increase our presence to pan ndia. Company facilitates access too easy, affordable
financing options for small road transport operators and fleet owners. Company
extensive network in semi-urban and rural areas of Rajasthan, Maharashtra and
Gujarat has brought the benefit of growth to people outside the usual scope of
organized finance and allowed us to propagate the motto of inclusive growth.
ts biggest area of operation is commercial vehicle financing where
we serve the requirements of various categories of the market right from three
wheelers to multi-axle trucks. From first time buyers of new vehicles to refinancing of
running vehicles, our extensive product portfolio allows us to cater to a broad cross
section of the market.
t also engaged in small secured business loan products for
personal and business needs. Our excellent track record of high quality lead
generation, high collection ratio and low delinquencies has attracted the attention of
high quality stakeholders and today, besides the promoters, our principal investor is
Motilal Oswal Private Equity Advisors Private Limited



The support of our investors and our enhanced management
bandwidth has given us the impetus to forge ahead in new geographies and expand
our product portfolio. Popularly known as 'FNANCERs', we are proud to be the only
NBFC in Rajasthan classified as "Systematically mportant Asset Finance Company
by the Reserve Bank of ndia.
Almost 15 years ago, we set a mission to achieve a goal, considered
impossible by most. While most of the NBFCs in the country are promoted by major
conglomerates, Au Financiers developed on its own feet. Without the financial
muscle of a mother company, we simply relied on the hard work and dedication of
our founders.
We commenced operations in a market place non-existent to many
and offered a proposition un-heard by most. We entered the three-wheeler loans
space in rural and semi-urban Rajasthan in difficult and uncertain times. Our niche,
however, is not about identifying uncontested markets; it is about identifying
unabated customers.
Like a prudent investor, we carefully analyze the intentions,
opportunities, and aspirations of our borrowers by understanding their needs &
fundamentals. Au FNANCERs has been founded with a unique ability to judge
potentials - for growth, for profit, and for entrepreneurship. We identify and
distinguish customers based on their skills, their underlying plans, and their
dedication to achieve them.
Our extensive reach allows us to cater to the lower strata of the
income and social pyramids. We have offered our services to over 1 lakh customers
that otherwise were the unreached and unbanked masses of ndia. Our teams reach
out to low-income groups, self-employed individuals, First Time Users/ First Time
Buyers and others, at far-flung locations.
Presently operating from branches across Rajasthan, Gujarat, and
Maharashtra, we offer a gamut of secured products and services. We operate in the
space of vehicle finance be it a new or used vehicle, including refinance , SME's
loans backed by mortgage able property, and also, offer General insurance & Life
insurance products as a service provider.

We are amongst the top rated lenders for secured loans in the region
and have the lowest delinquency. This has enabled us to enjoy excellent rating "A-"
from CARE and "BBB+/Positive rating from CRSL for our long term borrowings.
n the near future, we plan to grow, diversifying our product range to
rural and micro housing loans, insurance and broking businesses.

Our Guiding PrincipIes

Fair
Transparency in thoughts, feelings, and policies. We understand the
requirement of our customers and offer only those products that they suffice their
need, making it a win-win situation.

FIexibIe
We are open and flexible with our products and schemes. We
understand our clients and their concerns and offer the highest levels of flexibility
possible.

Fast
We are quick with our decision making process. Our robust operations
and disbursement processes ensure best-in-class turnaround times. We take
minimum time for processing applications and disburs disbursement of Loan.


FriendIy
We have nurtured friendly and congenial relationships with our dealers
and customers. This unique aspects helps us make new friends and promote kinship
across generations.

Our PeopIe
Au FINANCIERs places strong emphasis on human resources and
consider it essential for success of the Company. Au FNANCERs has bolstered its
human resources significantly with over 950 handpicked talent base. We select and
nurture individuals locally and hone their skills to match those required by us. n-
house and external training & development programs for the Team while on the job
brings out the best in them and we quickly identify the right people for the right roles
and promote them with increased powers and higher responsibilities ensuring
personal growth.

Our Investors
Over the time, strategic investors have guided and nurtured Au
FNANCERs to its present day position. We owe our success to expert advice and
inputs of our esteemed stakeholders.
With multiple rounds of equity investments, Motilal Oswal Private Equity
Advisors Private Limited (MOPEAPL) has provided the stimulus to Au FNANCERs
at the right times. The nternational Finance Corporation (IFC), a member of the
World Bank Group, has also invested significant time, money, and resources
towards the growth and success of Au FNANCERs and holds an Equity stake in the
Company.


Gradually, we have developed and strengthened our relationship with
various banks in the country wherein, HDFC Bank has played an important role
being one of the major pillars of Au FINANCIERs success. We are being supported
by all top Public and Private sector Banks, with SDB as the most renowned
Financial nstitution supporting the company. State Bank of ndia, Punjab National
Bank, Central Bank ndia, Bank of ndia, HDFC Bank, CC Bank, DB Bank, Axis
Bank, ndusind Bank and Dhanlakshmi Bank and a few to name, among them.



MiIestones

O The company has disbursed more than Rs.850 crores till January2010.
O The company is making continuous efforts to provide financial assistance not
only to the people of Rajasthan but also to the people of Maharashtra and
Gujarat.
O CRSL is continuously monitoring our performance. On the basis of
performance analysis and sustainable growth shown by the company,
company rating has been improved to BBB/Stable from BBB/+.2008- Private
Equity nvestment from Motilal Oswal Venture Capital Advisors Private
Limited. n just the first few years from inception, we disbursed. 150 crores in
vehicle loans, SME loans, etc
O Exhibiting fabulous unlimited potential and quick growth prospects, we
entered into the channel business with a strategic relationship with HDFC
bank.






O This was an immensely crucial year for the company as Motilal Oswal Private
Equity Advisors Pvt. Ltd. infused 20 crores worth of equity and strategic
acumen on board With a strong product support and constant process
development, we expanded our base to Gujarat Established a relationship
with DB, Central Bank of ndia and State Bank of Patiala Recorded an all
time high PAT of 5.2 crores and AUM of 244.17 crores.
O The nternational Finance Corporation, (a member of the World Bank Group)
Motilal Oswal Private Equity Advisors Pvt. Ltd. and other promoters infused a
whopping 60 crores of shares capital into the Company .Recorded a PAT of
11.85 crores and AUM of 485.58 crores
RB classified the Company as the only "Systematically mportant Asset
Finance Company in Rajasthan
Our exceptional long term facilities was were rated 'A-' by CARE Based
on high performance and consistent growth, CRSL has upgraded its rating to
BBB+/Positive.










BOARD OF DIREC%ORS

Mr. Sanjay Agarwal, Promoter & Managing Director
Mr. UttamTibrewal, Executive Director
Mr. Krishan Kant Rathi (Director)
Mr. Vishal Kumar Gupta (nvestor Director)
The company is being managed by its Board of Directors consisting of 4 board
members including investor directors.


Mr. Sanjay AgarwaI,Managing Director

He is promoter of the company; he is chartered accountant by profession
and is a first generation entrepreneur with15 years of experience in the finance
industry. Having expertise in various fields, he plays key role in financing and
financing strategy, corporate planning and risk management. He is also a member of
Rajasthan finance companies association. He believes that to be successful in life
one should have self confidence, integrity and great passion towards his/her works.
And it is equally important to assign a right task to the right person as per his/her
competency and skills at right time.


Mr. Uttam %ibrewaI, Executive Director

He is commerce graduate. He is having15 years of experience in retail
business and has been working in the finance industry for the last1 0 years. His
expertise expands into the area of retail marketing, building customer relationships
and managing operations.He joined in2003 and is looking after business
development, human resource and developing strategic relationships.


He being born and brought up in business class family; always had a vision to
become a successful entrepreneur. His commitment and dedication has turned no
stone upturn. He has been able to identify the undetected diversified area with his
creative thinking and long term vision towards life.

Mr. Krishan Kant Rathi, Director

He is a Chartered Accountant and a Company Secretary by
profession and having more than20 years of experience in the field of finance &
accounts. He represents ndia Business Excellence Fund (BEF) on the board of the
company. He is a director in Motilal Oswal Private Equity (MOPE). He has also
worked as chief financial officer of Future Group and in senior positions at RPG
Group and Rajan Raheja Group.
He is also the Chairman of the Audit Committee of the company.
Mr.Vishal Kumar Gupta,nvestor Director .He has a Bachelor of Engineering degree
from Aligarh Muslim University and has further done MBA from the University of
Chicago. He is a having vast experience of more than10 years in business planning,
+joint ventures, mergers & acquisitions, fund raising through private equity and stock
markets, corporate governance, treasury management, etc.

Mr. VishaI Kumar Gupta, Director

Mr. Gupta is presently the Vice-President in MOPEAPL and
represents BEF on the board of the company. For over a decade, he has been an
expert in business planning, joint ventures, mergers and acquisitions, fund raising
through private equity, corporate governance, treasury management, etc.
With an MBA degree from Chicago, he has worked with the UBS nvestment Bank,
Moody's nvestors Services and HDFC Limited.

Mr. ManniI VenugopaIan, Independant Director

Mr. Venugopalan is a veteran banker having rich experience of more
than 45 years serving the ndian banking sector with his vision, dynamism and
enthusiasm.
Journey of his career from a probationary officer of "Bank of India in
1966 and becoming the Chairman & Managing Director of the bank in 2003, narrates
the story about the depth of his personality. During his tenure he also served "Union
Bank of India" as an Executive Director for three years. Post retirement, he proved
his metal of steering the ship in the storm while leading an old private sector bank -
"FederaI Bank Ltd." to Pan ndia aggressive Branch expansion, technology
upgradation, GDR issue, listing on London Stock Exchange, successful right issue,
undertaking inorganic growth through acquisitions and many other initiatives.
Besides extensive experience of domestic banking, he also worked in Tokyo, UK
and Europe during his banking career with Bank of ndia.
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Management %eam

Mr. Manoj %ibrewaI, Business Head - Maharashtra

Mr. Tibrewal has been associated with Au FNANCERs since 2009. He
handles product development, market development, and operations in Maharashtra.
He is a qualified Company Secretary with 12 years of experience in marketing and
retail finance business, is known for leading his team to success.
He has previously worked with Citibank as the sole Direct Selling Agent
in Jaipur for personal loans, mortgage loans and car loans.

Nr. Deepak ]ain, Chief Financial Officer
Working with Au FNANCERS Au Financiers since last 10 years, Mr.
Jain looks into finance operations, audit, overall control over operations and
accounts functions and compliance issues.
He's a qualified Chartered Accountant, has 11 years of experience in
auditing, taxation, project financing, statutory audit, internal audit, concurrent audit,
tax audits, bank audits, etc.

Mr. Indrajeet Kumar, Assistant Vice President
Mr. Kumar has 13 years of experience with ndusnd Bank. He
supervises overall risks and collections management of the company.

Mr. SushiI Kumar AgarwaI, Business Head SME & Mortgages
Mr. Sushil Kumar Agarwal also leverages his expertise in the field of
fund raising, corporate affairs, and relationship management with rating agencies. A
rank holder and dually qualified as a Chartered Accountant and a Company
Secretary, previously he has held the position of National Head for credit and risk at
CC Bank Ltd. for SME division.





NUMBER OF PEOPLE

The number of employers is increasing year by year at fastest speed, like in
2006-07 the no. of employees was 155 but in 2010 it is 685.

DEPAR%MEN%

O Marketing Department.
O Accounts Department
O Collection Department
O Credit Departments.
O Human Resources Departments
O T Department.
O nsurance Department.

Products & Services

Vehicle finance
Small Secured Business Loans
Secured small Landing to existing customers.
nsurance.



VehicIe Financing:-

Commercial vehicle loans will continue to remain the mainstay for the
Company. Company primarily offer our services for financing various types of heavy
commercial vehicle, light commercial vehicle, multi-utility offer our services for
financing various types of heavy commercial vehicle, light commercial vehicle, multi-
utility vehicle, cars, three wheeler loading, three wheeler passenger, tractor etc. of
different reputed brands like Mahindra & Mahindra,Tata Motors, Piaggio vehicles,
Force Motors, Maruti, Chevrolet, Toyota, etc

Features:
Touch & Feel Policy
Takeover/Top-up Loans
Simple documentation
Quick credit decision
Speedy approval & Disbursement
Loan approval on NP also i.e. Non ncome Proof
Wide repayment options such as Cash/FPDC/RPDC/ECS
Variable guarantor facility i.e. guarantor can be Existing Customer/Family
Member/Govt. Employee/Any transporter etc.

Loan against property:-
These are secured loans provided to customers that would meet urgent
economic need of the customers.This new business will be built under a new brand
called shubharambh. One of the unique aspects of this service is that we also
provide loans against Gram Panchayat registered properties which in our knowledge
are not provided by any financial institution.



Features:-
Touch and feel policy.
Easy & flexible installment repayment .
Fast processing .
Business establishment support .

SmaII business Ioans:-

Company renders our financial assistance to promote Small business and
income generation activities.Typical tenure for these loans is between three to five
years.

Features:-
Loan starting from as little as Rs. 50,000.
Flexibility to choose an EM based loan.
Fastest processing in the industry.
Providing proper guidance and consultancy to the customer .

GeneraI Insurance:-
Company creating awareness in the rural areas.The Company has
arrangements with multiple insurance companies to offer advisory services for
General and Life insurance products. t understands our customer, their basic needs
and advises them in the selection of insurance product.
t offer products to match our customers personal andbusiness needs
and provide them a perfect protection cover. Company advice motor insurance with
various plans for private, passengers, and goods carrying vehicles and non motor
insurance like Midi-claim Policy, Hospitalization Policy, Personal accident Policy,
Travel Policy, Fire and burglary Policy, Marine Policy.
Company has also introduced our in-house product Loan Shield Policy
under the name of Future General ndia nsurance Company Ltd. This product is a
cross sell opportunity for the company as it is sold out to the customers when they
avail finance. This ensures repayment of the loan taken by the customers in event of
any contingency.

Features:
New insurance policies.
Renewal of existing policies.
Several options under one roof.
Fair & prompt assistance.
Hassle free claim settlement .
Efficient pre & post advisory services .

Life Insurance

Life is full of unexpected surprises; unpredictable events can strike without
warning and disrupt the smooth rhythm of life.Therefore, t offer you a peace of Mind
by advising various life insurance plans for your unique & specific needs. You must
always ensure the financial security of your family and we are here to give you
complete financial solutions.
Company understands the needs of our clients and meets their
requirement with best available product with in well defined time frames and quality
assurance.





Life Insurance PIans:
Protection plans
nvestment plans
Child plans
Endowment plans
Retirement/pension Plans
Health plans




Competitors

Mahindra & Mahindra financial services Ltd.
Meghma Finance Ltd.
Bajaj Auto Finance Ltd.
Shriram finance.
Baid Finance Ltd.
HDFC bank.
Hinduja Finance Pvt. Ltd.
And Unorganized Sector



BRAND

AU means gold which is precious and worthy across all cultures and
times. t symbolizes in service, wealth and happiness. Financiers mean those who
finance. As the name of the company suggests, we are the company who finance
thorough imperil service to create happiness in the lives our precious and worthy
customers.
We have launched the new logo of our company which is having
manifolds.

Firstly, it is symbolic to Swastik, the most prominent auspicious symbol of the
present era. Swastik symbolizes auspiciousness, well being and let good prevail.

Secondly, it is made up with 4 which means- Fast, Fair, FIexibIe & Friend.

Thirdly, the color associated with it has deep meaning. Blue color is considered to be
a corporate color which symbolizes calmness, peace, confidence, intelligence,
stability, unity, trust, loyalty, wisdom, faith, tranquility and sincerity.

Red color which a very emotionally intense color is associated with energy, strength,
courage, power, determination as well as passion, desire, and love.

S%RENG%HS

ReIationship based origination modeI:
We meet every borrower in person before disbursing a loan. The
company works on the concept of touch and feels which helps to understand
background, profile & needs of the customers which are overlooked by the organized
sector. Company provides easy finance with hassle (difficulty) free documentation,
speedy and transparent process

CentraIized & Independent credit verification:

t highly focused on credit quality of the borrowers. Each file has to go
through layered filtration process of the company including credit verification at
different levels and final approval from head office. Company assesses the synergy
& viability between product, customer profile and products proposed use.
Robust coIIection process:
Company has in house collection team with expert legal advisors who
on regular basis follows up with delinquent accounts. Company has layered process
which includes telecalling, personal visit, legal actions, repossession of vehicles etc.
The company has a policy of releasing of REPO vehicles which boosts customers
confidence is us. The companys collection efficiency is very strong and has on of the
lowest delinquency ratios of in the industry.

Grass root penetration
Many analysts believe that the rural economy will grow strongly in the
coming years. There is strong focus by the Government of strengthen the rural
economy. AU Financiers could be a significant beneficiary of this trend. As it
diversifies its loan products and offers other forms of secured financing it could augur
very well for growth prospects of the Company.

High vintage of team:
AU has a strong, highly motivated and enthusiastic team with rich
experience and knowledge of on-the-ground business .The core team has worked
with each other for the past several years .The team has been able to establish
strong relationships in the marketplace, as well as with various
authorities/establishments.







NE%ORK

O AUFPL is the first Rajasthan based NBFC which is functioning in many
states.
O AUFPL continually delivers its promise to provide you quality and hassle-free
services through a vast network of virtually connected offices/ branches.
Company branch network continues to expand across the country. As
company continually strives to give our customers the best possible service,
company is able to offer over 4 products lines .The Company sees geographical
expansion as one of its goals, which is aimed on maximizing access for
customers.This aim is being implemented as planned.
For customer comfort and faster loan disbursals, creation of regions
and allocation of certain authorities to them have significantly minimized time spent
by clients on receiving loans Therefore, the Company makes a special focus on this
aspect. t is worth noting that dynamically developing the Company Branches were
opened in the largest regions of the state of Rajasthan and on the same lines the
company is expanding its Network in the States of Maharashtra and Gujarat.The
Company is presently operating through 84 branches with presence in these three
states.
AUFPL is primarily engaged in originating and underwriting secured
loans in semi urban and rural areas.The company is focused to provide variety of
financial products to its customers such as Commercial Vehicle loan, Car Loan,
Small Secured Business Loans, General and Life-nsurance facility. The Company
originates loans under agriculture and priority sector lending as per Reserve Bank of
ndia (RB) Guidelines.




Geo Presence
Premier NBFC based in Rajasthan (with 70 branches, 32 districts), Au
FNANCERs (NDA) PRVATE LMTED also covers the states of Maharashtra,
Gujarat, Goa, Punjab, Chhattisgarh and Madhya Prdesh. With 136 branches at
strategic locations in these states, FNANCERs has and is changing lives. One of
our goals is to expand and reach out to the unbanked masses pan-ndia to identify
and finance true entrepreneurial potential.

SaIient features of our branch offices

O Expanded and wide network

O Equipped with latest Technologically
O Known for Fast, effective, and quality services
O Manned by skilled personnel
O Shorter turnaround times, faster approval and quick distribution
O Helpful and responsive executives that visit customers at their residences Small
regional officers help us identify, connect, and emphasize with our customers and
enable us to provide customized services.




Network of the Company




Investor ReIation

FC is a dynamic organization, constantly focusing in creating
opportunity to the people to escape poverty and to improve their lives.To achieve this
Purpose, FC offers development-impact solutions though firm-level interventions
direct investments, advisory services, and the FC Asset Management Company;
standard-setting; and business enabling environment work. FC is the financially and
legally independent private sector arm of the World Bank Group.
t also coordinates with the other institutions of the World Bank Group
for its activities. FCs operations are carried out by its departments, most of which
are organized by world region or global industry/sector. FC has over 3,400 staff, of
which 51% work in field offices and 49% at headquarters in Washington, D.C.
FC continues to develop new financial tools that enable companies to
manage risk and broaden their access to foreign and domestic capital markets. FC
has launched a broad and targeted set of initiatives to help private enterprises cope
with the global financial and economic crisis.
FC investment in AU financiers will expand borrowing to low-income
and underserved customers. Alliance of FC with AU financiers will enables us to
mutually attain the purpose by strengthening the business model of AU Financiers.







CAREERS
Career with AU Financiers (India) Pvt. Ltd

AU Financiers is rapidly growing company; there are great
opportunities for career advancement. Company believes our success depends on
the exceptional quality and extraordinary efforts of our people who are associated at
the grass root level. For this reason, we are committed to hire, develop, motivate and
retain the best people in the industry. People who have a great zeal and passion
towards work can be a part of our experienced and expertise team.

hy AU Financiers?
A career at AU Financiers means an opportunity for ample learning &
growth. The Company Offers a challenging assignment, a world class working
environment, professional management, and competitive salaries, along with
exceptional rewards.

If voIunteers have an appetite for chaIIenges, we have an exciting career for
you. Some highIights of faciIities for empIoyees at AU Financiers:-

ProfessionaI ork Environment
Company has a growing pool of talented professionals, including CAs,
MBAs, Lawyers, CSs, and others. This provides a good opportunity to interact and
learn from each other.

ProfessionaI & PersonaI Growth
Performance is the key element that matters at AU Financiers. AU
Financiers has a transparent policy of recognizing and rewarding deserving people.
Company performance management systems ensure that the credit goes to those
who deserve it. Qualities like leadership, communication skills, negotiating skills and
an impressive personality get developed automatically, largely due to the
contagiously professional atmosphere and rigorous training programmers at AU
Financiers.
Fun at ork PIace
AU Financiers ensures that all team members are adequately rewarded
for the efforts put in. company regularly organizes trips to various exotic locations in
ndia and abroad for our top performers.

Job Security
At AU Financiers, quality is the key factor in every sphere of activity.That
why we have a rigorous screening procedure. Once selected, every team member is
treated like a family member. Everyone is given a chance to work in different
departments in order to get acclimatized. No wonder, many of our team members
have been with us for years. Honest and performing team members will always find
their jobs secure.

CuIture
AU Financiers encourages healthy living. All offices are no-smoking
areas. There are no night shifts. Company also organizes yoga sessions to improve
the health and well-being of our team members.

Open Communication
The entire top management and the leaders at AU Financiers are always
accessible . They are ever-willing to help and hear you out whenever you need them
.

Good Compensation
AU Financiers offers a compensation package that is one of the best in
the industry. Company believes and asks our team members to write their own
cheques. Apart from fixed salaries, we offer aggressive bonus and incentives.




Core vaIues

Company employees are the fixed assets of our company.
Recognize and reward individual ability and performance appropriately.
Recruit and promote on the basis of merit and performance.
Create and maintain a safe and healthy working environment.



%raining & DeveIopment
Company always strives hard to develop skills, knowledge and
competency of our team through developmental assignments, continuous training,
and development interventions. Company makes ensure that our employees are
given Support, Knowledge, Recognition, Empowerment, and Transformation from
time to time.
We organize in- house as well as external training programmers for
our employees. AU Financiers is a growing finance company which provides
conducive environment and platform to grow in person and as a professional.













FinanciaI Statements
Finance is defined as the provision of money when it is required. Every
enterprise needs finance to start and carry out its operation. Finance is the lifeblood
of an organization. So, finance should be managed effectively.
Financial statements are prepared primarily for decision making. Financial
Statement Analysis refers to the process of determining financial strength and
weakness of the firm by properly establishing strategic relationship between the
items of the balance sheet and profit and loss account. There are various methods
and techniques used in analyzing financial statements, such as comparative
statements, trend analysis, common size statements, schedule of changes in
working capital, funds flow and cash flow analysis, cost volume profit analysis and
ratio analysis and other operative data. The analysis of financial statement is used
for decision making by various parties.

The term financial analysis, also known as analysis and interpretation of
financial statements, refers to the process of determining financial strengths and
weakness of the firm by establishing strategic relationship between the items of the
balance sheet, profit and loss account and opposite data. Analyzing financial
statements, according to Metcalf and Tigard, is a process of evaluating the
relationship between component parts of a financial statements to obtain a better
understanding of a firms position and performance. n the words of Myers, Financial
statement analysis is largely a study of relationship among the various financial
factors in a business as disclosed by a single set-of statement, and a study of the
trend of these factors as shown in a series of statements.
The purpose of financial analysis is to diagnose the information contained
in financial statements so as to judge the profitability and financial soundness of the
firm. Just like a doctor examines his patient by recording his body temperature, blood
pressure, etc. before making his conclusion regarding the illness and before giving
his treatment, a financial analyst analysis the financial statements with various tools
of analysis before commenting upon the financial health or weaknesses of an
enterprise. The analysis and interpretation of financial statements is essential to
bring out the mystery behind the figures in financial statements.
Financial statements analysis is an attempt to determine the significance
and meaning of the financial statement data so that forecast may be made of the
future earnings, ability to pay interest and debt maturities (both current and long-
term) and profitability of a sound dividend policy The term financial statement
analysis includes both analysis, and interpretation. A distinction should, therefore,
be made between the two terms. While the term analysis is used to mean the
simplification of financial data by methodical classification of the data given in the
financial statements, interpretation means, explaining the meaning and significance
of the data so simplified however, both analysis and interpretation are in delinked
and complimentary to each other a Analysis is useless without interpretation and
interpretation without analysis is difficult or even impossible most of the authors have
used the term analysis only to cover the meaning both analysis and interpretation as
the objective of analysis is it study the relationship between various items of financial
statements by interpretation. We have also used the terms Financial statement
Analysis or simply Financial Analysis to cover the meaning of both analysis is and
interpretation.

Objective and Importance of FinanciaI Statement AnaIysis:-
The primary objective of financial statements analysis is to understated and
diagnoses the information contained in financial statement with a view to judge the
profitability financial soundness of the firm and to make forecast about future
prospects of the firm. The purposed of analysis depends upon the person interested
in such analysis and his object. However the following purposed or objectives of
financial statements analysis may be stated to bring out significance of such
analysis.
1. To assess the earning capacity or profitability of the firm.
2. To assess the operational efficiency and managerial effectiveness.
3. To assess the short term as wells as long term solvency of the firm.
4. To identify the reasons for change in profitability and financial position
of the form.
5. To make inter firm comparisons.
6. To make forecasts about future prospects of the firm
7. To assess the progress of the firm over a period of time.
8. To help in decision making and control.
9.To guide or determine the dividend action
10.To proved important information for granting credit.

%ypes of FinanciaI AnaIysis
1. On the basis of material used
2. On the basis of modus operand,
3. On the bases of entities used,
4. On the basis of time horizon.

On the basis of MateriaI Used.
According to material used, financial analysis can be two types.

(a) External Analysis
(b) nternal Analysis

(a) ExternaI AnaIysis:
This analysis is done by outsiders who do not have access to the
detailed internal accounting records of the business firm. There outsiders
include investors, potential investors, creditors, potential creditors, credit
agencies, government agencies and general public. For financial analysis
thus save only a limited purpose, however the recent changes in the
government regulations requiring business firms to make available have
access to the detailed internal accounting records of the business firm. There
outsiders include investors, potential investors, creditors, potential creditors,
credit agencies, government agencies and general public.
For financial analysis thus save only a limited purpose, however the
recent changes in the government regulations requiring business firms to
make available more detailed information to the public though audited
published accounts have considerably improved the position of the external
analysis.

(b) InternaI AnaIysis:-
This analysis is done by persons who have access who have across
to the detailed internal accounting records of the business firm is known as
internal analysis such an analysis can therefore be performed by executives
and employees of the employee of the organization as well as government
agencies which have statutory powers vested in them financial analysis for
managerial purposed is the internal type of analysis that can be effected
de[ending upon the purpose to be achieved
On the basis of modus operandic
According to the method of operation followed in the analysis can be two types
(a) Horizontal Analysis
(b) Vertical Analysis
(a) HorizontaI AnaIysis:-
f refer s to the comparison of financial data of a company for several years.
The figures of this type analysis are presented horizontally over a number of
columns.
The figures of the variously years are compared with standard or base
year. A base year is a year chosen as beginning point. t is also called Dynamic
Analysis. This analysis makes it possible to focus attention on items that have
changed significantly during the period under review. Comparative statements
and trend percentages are two tools employed in horizontal analysis.


(b)VerticaI AnaIysis:-

t refers to the study of relationship of the various items in the financial
statements of one accounting period. n this type of analysis the figures from
financial statements of a year are compared with a base year selected from the
same years statement. t is also called Static Analysis. Common size financial
statements and financial ratios are the two tools employed in vertical analysis.
Since vertical analysis considers data for one time period only, it is not vary
conducive to a proper analysis financial statements. However, it may be used
along with horizontal analysis to make it more effective and meaningful.

On the basis of entities invoIved:
According to the method of operation followed in the analysis can be
two types
a) nter-firm or cross sectional analysis.
b) ntra-firm or Time Series Analysis.
a). Inter-Firm or Cross SectionaI AnaIysis:-
Cross sectional analysis involves comparison of financial data of a firm
with other firms (competitors) or industry averages for the same time period .
b). Intra-firm or %ime Series AnaIysis:-
Time series analysis involves the study of performance of the same firm
over a period of time.

On the basis of time horizon.
(a) Short term Analysis
(b) Long term Analysis.


a). Short term AnaIysis:-
Short term analysis measures the liquidity position of a firm, i.e. short
term paying capacity of a firm or the firms ability to meet the current obligations.
b).Long term AnaIysis:-
Long term analysis involves the of the firms ability to meet the interest
costs and repayment schedules of its long term obligations. The solvency, stability
and profitability are measured under this type of analysis.

Procedure of FinanciaI Statements AnaIysis

Broadly speaking there are three steps involved in the analysis of
financial statements. These are
(i) Selection
(ii) Classification
(iii) nterpretation
The first step involves selection of information (data) relevant to the purpose of
analysis of financial statements. The second step involved is the methodical
classification of the data and the third step includes drawing of inferences and
conclusions.
The following procedure is adopted for the analysis and interpretation of financial
statements.
1. The analyst should acquaint himself with principles and postulates of
accounting. He should know the plans and policies of the management so that
he may be able to find out whether these plans are properly executed or not.
2. The extent of analysis should be determined so that the sphere of work may
be decided. f the aim is to find out the earning capacity of the enterprise then
analysis of income statement will be undertaken. On the other hand, if the
financial position is to be studied then balance analysis will be necessary.
3. The financial data given in the statements should be re-organized and re-
arranged. t will involve the grouping of similar data under same heads,
breaking down of individual components of statements according to nature.
The data is reduced to a standard form.
4. A relationship is established among financial statements with the help of tools
and techniques of analysis such as ratios, trends, common size, finds flow
etc.
5. The information is interpreted in a simple and understandable way. The
significance and utility of financial data is explained for helping decision-
taking.
6. The conclusions drawn from interpretation are presented to the management
in the form of reports.

Methods or Devices of FinanciaI AnaIysis
A Number of methods or devices are used to study the relationship
between different statements. The following methods of analysis are generally used:

i. Comparative statement
ii. Trend analysis
iii. Common size statements
iv. Funds flow analysis
v. Cash flow analysis
vi. Ratio analysis
vii. Cost-volume-profit analysis
n this project the Comparative statement and Ratio Analysis is used to
study the financial statements of Au-Financiers (ndia) Pvt. Ltd.



Comparative Statement:-
The comparative financial statements are statements of the financial
position at different periods of time. The elements of financial position are shown in a
comparative form so as to give an idea of financial position at two or more periods.
Any statement prepared in a comparative form will be covered in comparative
statements. From practical point of view generally two financial statements.
1. Balance Sheet
2. ncome Statement

Comparative baIance sheet:-
The comparative balance sheet analysis is the study of the trend of
the same items, group of items and computed items, group of items and computed
items in two or more balance sheets of the same business enterprise on different
dates. The changes in periodic balance sheet items reflect the conduct of a
business. The changes can be observed by comparison of the balance she at the
beginning and at the end of a period and these changes can help in forming an
opinion about the progress of an enterprise. The comparative balance sheet has two
columns for the data of original balance sheet. A third column is used to show this
increase in figures. The fourth column may be added for giving percentage of
increases and decreases.
Guidelines for nterpretation of Comparative Balance Sheet While
interpreting comparative balance sheet the interpreter is expected to study the
following aspect:
1. Current financial position and liquidity position
2. Long term financial position.
3. Profitability of the Concern.


For studying the Financial Position and short term Financial Position of a
concern, one sees the working capital in both the years. The excess of current
assets over current liabilities will give the figure of working capital. The increase in
working capital means improvement in the current financial position of the business.
An increase in current assets accompanied by the increase in current liabilities of the
same amount will not show any improvement in short term financial position. One
should study the increase or decrease in current assets and current liabilities and
this will enable him to analyze the current financial position.
The second aspect which should be studies in current financial position is
the liquidity position of the concern. f liquid assets like cash in hand, cash at bank,
bills receivable, debtors, etc. Show an increase in the second year over the first year,
this will improve the liquidity position of the concern, the increase in inventory can be
on account of accumulation of stocks for want customers, decrease in demand or
inadequate sales promotion efforts. An increase in position is the liquidity position of
the concern. f liquid assets like cash in hand, cash at bank, bills receivable, debtors,
etc. Show an increase in the second year over the first year, this will improve the
liquidity position of the concern, the increase in inventory can be on account of
accumulation of stocks for want customers, decrease in demand or inadequate sales
promotion efforts. An increase in inventory may increase working capital of the
business but it will not be good for business.
The long term financial position of the concern can be analyzed by studying
the changes in fixed assets, long term liabilities and capital. The proper financial
policy of concern will be to finance fixed assets by the issue of either long term
securities such as debentures, bonds, loans from financial institutions or issue of
fresh share capital, an increase in fixed assets should be compared to the increase
in long term loans and capital if the increase in fixed assets is more than the long
term securities then parts of fixed assets have not only been financed from long term
sources. A wise policy will be to fianc fixed assets by raising long term funds.
The new aspects to be studied in a comparative balance sheet questions is
the profitability of the concern. The study of increase or decrease in retained
earnings, various resources and surpluses, etc will enable the interpreter to see
whether the profitability has improved or not. An increase in the balance of profit and
loss account and the other resources created from profits will mean an increase in
profitability to the concern. The decrease in such accounts may mean issue divided,
issue dividend, issue of bonus share or deterioration in profitability of the concern.
After studying various assets and liabilities and opinion should be formed about the
financial position of the concern. One cannot say if short term financial position is
good the n long term financial position will also be good or vice versa. A concluding
word about the overall financial position must be given at the end.

Comparative Income Statement:-
The income statement gives the results of the operation of a business. The
comparative income statement gives an idea of the progress of a business over a
period of time. The changes in absolute data in money values and percentages can
be determined it analyze the profitability of the business. .like comparative balance
sheet income statement also has four columns. First two columns give figures of
various items for two years. Third and fourth columns are used to show increase or
decrease in figures in absolute amounts and percentages respectively. Guidelines
for nterpretation of Comparative ncome Statement.

1. The increase or decrease in sales should be compared with the increase or
decrease in costs of goods sold. An increase in sales will not always mean an
increase in profit. The profitability will improve if increase in sales is more than
increase in costs of goods sold. The amount of gross profit should be studied
in the first step.
2. The analysis and interpretation of income statement will involve are following
steps.
3. The second step of analysis should be the operational profits. The operating
expenses such as office and administrative expenses, selling and distribution
expenses should be deducted from gross profit to find out operating profits.
An increase in operating profit will result from the increase in sales position
and control of operating expenses. A decrease in operating profit may be due
to an increase in operating expenses or decrease in sales. change in
individual expenses should also be studied. Some expenses may increase
due to the expansion of business activities while others may go u due to
managerial inefficiency.
4. The increase or decrease in net profit will give an idea about the overall
profitability of the concern. Non operating expenses such as interest paid,
losses from sales of assets, writing off deferred expenses, payment of tax,
etc. Decrease the figure of operational profit, we get a figure of net profit.
Some non operating incomes may also be there which will increase net profit.
An increase in net profit will gave us an idea about the progress of the
concern.
5. An opinion should be formed about profitability of the concern and it should be
given at the end. t should be mentioned whether the overall profitability of the
concern is good or not.


Focus on FinanciaI statement AnaIysis:
Financial statement analysis involves evaluating different aspects of a business
enterprise, which are of great importance to different users such as management,
investors, creditors, bankers, analyst, investment advisers, etc. generally, the
following analyses are made while making Financial Statement Analysis.
1. Liquidity or short term solvency analysis
2. Profitability analysis
3. Capital structure or gearing analysis
4. Market strength or investor analysis
5. Growth and stability analysis




AppIication of FinanciaI AnaIysis
Following are the application of financial analysis:
1. Assessing Corporate Excellence
2. Forecasting bankruptcy
3. Judging credit worthiness
4. Valuing equity shares
5. Predicting bonds ratings
6. Estimating market risk

Limitations of FinanciaI Statement AnaIysis
The financial analysis has also be careful about the impact of price level
changes, windows dressing of financial statements, changes in the accounting
policies of a firm, accounting concepts and conventions, and personal judgment, etc.
the readers are advised to relate the limitations of financial statements as given in
the previous chapter and also the limitations of ratios as a tool of financial analysis
as discussed in Ratio Analysis. Some of the important limitations of financial analysis
are, however, summed up as below.
1. t is only a study of interim reports.
2. Financial analysis is based upon only monetary information and non-
monetary factors are ignored.
3. t does not consider changes in price levels.
4. As the financial statements are prepared on the basis of a going concern, it
does not give exact position. Thus accounting concepts and conventions
cause a serious limitation to financial analysis.
5. Changes in accounting procedure by a firm may often make financial analysis
misleading.
6. Analysis is only a means and not an end in itself. The analyst has to make
interpretation and drawn his own conclusions. Different people may interpret
the same analysis in different ways.

Overview of Ratio AnaIysis
Ratio analysis is one of the techniques used to analyze the financial
statement. t is one of the most powerful tools of financial analysis. t is the process
of establishing and interpreting various ratios (quantitative relationship between
figures and group of figures).Through ratio analysis financial statement can analyze
more clearly and decision made from such analysis.
According to Accountants Handbook by Wizen Kell and Bedford, a ratio is
an expression, of the quantitative relationship between the numbers.

Nature of Ratio AnaIysis:-
Ratio analysis is a technique of analysis and interpretation of financial
statements. t is the process of establishing and interpreting various ratios
(quantitative relationship between figures and group of figures).Through ratio
analysis financial statement can analyze more clearly and decision made from such
analysis.
According to Accountants Handbook by Wizon Kell and Bedford, a ratio is an
expression, of the quantitative relationship between the numbers.
Nature of Ratio Analysis:-
Ratio analysis is a technique of analysis and interpretation of financial
statements. t is the process of establishing and interpreting various ratios for helping
in making certain decision. However, ratio analysis is not an end in itself. t is only a
means of better understanding of financial strength and weaknesses of affirm.
Calculation of mere ratios does not serve any purpose, unless several appropriate
ratio are analyzed and interpreted.
There are a number of ratios which can be calculated from the information
given in the financial statements, but the analyst select the appropriate data and
calculate only a few appropriate ratios from the same keeping in mind the objective
of analysis. The ratios may be used as a symptom like blood pressure, the pulse rate
or the body used as a symptom like blood pressure, the pulse rate or the body
temperature and their interpretation depends upon the caliber and competence of
the analysis.
The following are the four steps involved in the ratio analysis:
1. Selection of relevant data from the financial statements depending
2. Upon the objective of the analysis.
3. Calculation of appropriate ratios from the above data.
4. Comparison of the calculated ratios with the ratios of the same firm in
5. The past, or the ratios developed from projected financial statements or the
ratio of some other firms or the comparison with ratios of the industry to which
the firm belongs.
6. nterpretation of the ratios


Use and significance of Ratio AnaIysis
1. Help in decision making.
2. Help in financial forecasting and planning .
3. Helpful in communication .
4. Helpful in co-ordinaton .
5. Helpful in control.
6. Helpful in efficiency appraisal.
7. Helpful in evaluation of financial position. Helpful to investors, financial
institution, employee.








Limitations of Ratio AnaIysis:-
The ratio analysis is one of the most powerful tools of financial
management. Though ratios are simple to calculate and easy to understand, they
suffer from some serious limitations.
1. Iimited Use of SingIe Ratio-
A single ratio, usually, does not convey much of a sense. To
make a better interpretation a number of ratios have to be calculated which is
likely to confuse the analyst than help him on making any meaningful
conclusion.

(1) Lack of Adequate Standards: There are no well adapted
standards or rules of thumb for all ratios which can be accepted as
norms it renders interpretation of the ratios difficult.
(2) Inherent Limitation of Account: Like financial statements, ratio
also suffer from the inherent weakness of accounting records such as
their historical nature. Ratios of the past are not necessarily true
indicators of the future.
(3) Change of Accounting Procedure:- Change in accounting
procedure by a firm often makes ratio analysis misleading. E.g. A change
in the valuation of methods of inventories, from FFO to LFO increases
the cost of sales and reduces considerably the value of closing stocks
which makes stock turnover ratio to be lucrative and an unfavorable
gross profit ratio
(4) indow Dressing: Financial statements can easily be window
dressed to present a better picture of its financial and profitability position
to outsiders. Hence, one has to be very careful in making a decision from
ratios calculated from such financial statements. But it may be very
difficult for an outsider to know about the window dressing made by a
firm.
(5) PersonaI Bias :- Ratio are only means of financial analysis and not an
end in itself. Ratios have to e interpreted and different people may
interpret the same ratio in different ways.
(6) IncomparabIe: - Not only industries differ in their nature but also the
firms of the similar business widely differ in their size and accounting
procedures, etc. it makes comparison of difficult and misleading.
Moreover comparisons are made difficult due to differences in definitions
of various financial terms used in the ratio analysis.
(7) AbsoIute Figures Distortive:- Ratios devoid of absolute figures
may prove distortive as ratio analysis is primarily a quantitative analysis
and not a qualitative analysis.
(8) Price LeveI Changes:- While making ratio analysis, no consideration
is made to the changes in price levels and this makes the interpretation of
ratio invalid.







SOCIAL RESPONSIBILI%
The company continues to contribute to the economic well being of
the Communities it interacts with and enhances their social well being. The company
during the year continued to involve itself in social welfare activities by contributing to
recognized charitable institution, which specifically benefits the economically
disadvantaged and socially weaker sections of the society. The Company has
regularly contributed to the Akshay Patra Foundation.
Akshay Patra Foundation runs Nutritious food for children in schools a
well known mid-day meal program targeted towards school going children from the
under privileged sections of society. n the current year the company donated a
Mahindra Vehicle to Akshay Patra foundation
Company is frontrunner in state of Rajasthan in phasing down old
Diesel and Petrol wheelers with new upgraded LPG/CNG based3 wheelers.
Thereby, Company is supporting Govt. of ndia vision of save energy and
environment friendly vehicles on road for better future of our next generation.
Company 99% of lending is concentrated to vehicle financing and Company is
focused on financing of vehicles with greater fuel efficiency, lower emission of
pollutants and new technology including CNG/LPG. Company is looking forward to
do concentrated financing of vehicles which shall lead to:

1. Saving of fuel with better fuel efficiency with new technology vehicles.
2. mprovement by way of reduction in remission of polluting gases by funding of
EURO certification vehicles.
3. Funding of vehicles run on LPG / CNG with little or no atmospheric pollution.
Company has been financing following vehicles which leads to lower emission of
pollutants and higher fuel efficiency and with sophisticated technology
Company also promoting education by reimbursing the cost of
education of children of our employees who belong to economically weaker section
of the society.




Objective of the Study
The role objective of the project is to help the management of the orgadecision
making regarding the subject matter.
Calculation of financial statement and ration is only the clerical task
whereas the interpretation of its needs immense skill intelligence and
foresightedness. One of the easiest and most popular ways of evaluating
performance of the organization is to compare its present ratios with the past ones
called comparison and through development action plan.
t gives an indication of the direction of change and reflects whether the
organizations financial position and predominance has improved deteriorated or
remained constant over period of time.
Here much emphasis is given to historical comparison and on forecasting
the immediate future trends.

Scope of Study

The data and information were gathered during training.
The scope is limited to the secondary data only.
The scope is delimited to the year from1998.






Purpose of study
The present study is made as a part of the MBA Programme for training in the form
of :
1. To know the financial position of the Au- financiers (ndia) Pvt. Ltd.
2 The company has the strength to fulfill its obligation or not
3. Find out strength and weakness of Au-Financiers (ndia) Pvt. Ltd.
4. Performance of Au- financiers (ndia) Pvt. Ltd. For granting credit providing
the loan
5. Know the liquidity position of Au-Financiers (ndia) Pvt. Ltd.
6. Know the long term solvency of Au-Financiers (ndia) Pvt. Ltd.
7. Know the operation efficiency of Au-Financiers (ndia) Pvt. Ltd.
8. Know the overall profitability of Au-Financiers (ndia) Pvt. Ltd.



PIace of Study
All the activities are carried out in the Au-Financiers (ndia) Pvt. Ltd.





Research And MethodoIogy

The research involved extensive and intensive studies of Au-
financiers (ndia) Pvt. Ltd. in this project report a sincere effort has been made to
study the financier statements analysis of the company. During this study, study the
financial position and performance of the company. At last, have given
interpretation and conclusion of the study.



Data coIIection
The whole of my study is based on secondary data of Au- financiers
(ndia) Pvt. Ltd. have not taken any primary data for my study because primary data
would not have been helpful to my study. During the tenure of my study have taken
help of the following secondary data.

Annual report of Au-Financiers (ndia) Pvt. Ltd.
Annual audit report of Au-Financiers (ndia) Pvt. Ltd..
Balance sheet of Au-Financiers (ndia) Pvt. Ltd.
Development action plan of Au-Financiers (ndia) Pvt. Ltd.
Profit and loss account of Au-Financiers (ndia) Pvt. Ltd.


%ooIs
There are some of the tools, which are relevant for the study of ration
analysis and performance of Au-Financiers (ndia) Pvt. Ltd.



Comparative Statements.

Trend Analysis
Common size statement
Fund flow Analysis
Cash flow Analysis
Cost volume profit Analysis


Findings
1. The current assets have increased in2010 by Rs.13,608.08/- lacs i. e.125.
59 %
2. The case and bank balance decreased by Rs. 899.93/- lacs i.e.24%
The company provide loan and advances to its customers more than2009
in2010 Rs.11,144.76/-lacs.
3. The other assets loans & advances have increase by Rs.11,144.76 Lacs
4. Term deposits are increased in the year2010 by Rs.2350.63 lacs.
5. Current liabilities are increased in the year2010 than previous year
Rs.1,341. 53437 lacs i.e. 162.78%
6. Total capital employed increased by Rs 12,266.55/- lacs in the year2010
7. Net income of the company increase in the year than previous
year119.92%
8. The company have good relationship with the banks.

Suggestions

From all the studies we can suggest some point to improve the profitability of the
organization.

1. t should be increase advertisement mostly in rural areas because more
population of the Rajasthan does not know about the company in urban.
2. The company should focus more on advancing loans and money to
customers.
3. t should be reduce the cost of management.

4. t should recover its money from defaulters in a limited time.

5. t should control the non operation expenses and other expenditure.

6. t should ready for the coming competitive as all financiers Companies are
going to be privatized .

7. To increase the net profit at higher rate, carefully designed risk management
systems and increasingly higher aspiration levels of customer services
should be taken.

8. t should recover its money from defaulters in a limited time.





ConcIusions

Financial Statement is one of the specialized areas of tax policy.
Difficulties arise with the identification of financial income under the income tax,
especially with the development of specialized financial products. Further, financial
income is in part a return to savers holding financial assets and a return to effort for
traders choosing the best investments. Both income and VAT law have often
separated those primarily engaged in financial trading from those who simply hold
property in order to reduce complexity and economic inefficiencies.
However, by drawing lines between traders and other engaged in financial
transactions, anomalies are bound to arise in which some forms of income may be
fully taxed while other forms of income are partially taxed. Taxpayers facing different
tax treatments of assets and liabilities will exploit differences in effective tax rates.
Thus, income and VAT taxes will have some distortionary impact on financial
markets. No satisfactory solution can be found except, perhaps, to limit distortions as
best as possible.
n most countries, substantial business activity is related to financial
intermediation: banking, trusts, investment companies and insurance. Financial
businesses play a crucial role in the economy by matching lenders with borrowers as
well as facilitating governance of businesses through close monitoring of funds lent
to businesses. Financial institutions also reduce risk faced by investors by pooling
investments over many different types of business activities and insuring against
property, casualty and death risks. A significant part of the financial sector is
regulated but an impressive array of financial activities is undertaken by unregulated
and informal parts of the economy.
Unlike other industries, tax systems often treat financial activity in a
special way. Why is so? Much of this special treatment arises from the nature of its
business. Financial activity services are not priced directly since a financial business
often receives as its return for the use of labor and capital, the difference between
the income earned on assets and the cost of borrowed funds. With the absence of
an observable price for financial services, it is problematic to apply income, value-
added or sales taxes on the sector.
Further, returns received by financial intermediaries are not easy to
observe since some forms of receipts, like income (or capital gains) from the sale of
assets, are simplest to compute when financial assets are actually sold. Yet, the
income tax, which is based, in principle, on the inclusion of accruals for income and
expenses, must be formulated to deal with complex issues related to the tax
treatment of financial income. Otherwise, the income tax system distorts financial
and economic activity by favoring some forms of income over others.
Therefore, financial activities receive special treatment under income,
value-added and other sales taxes for technical reasons. But there are other reasons
why financial intermediation is often subject to special tax considerations. First,
financial businesses are very mobile, easily setting up offshore facilities to provide
financing for non-financial businesses and households in a jurisdiction.
Given this mobility, countries must take care in developing their taxation
systems with respect to financial income so as not to induce capital flight. Second,
many financial institutions, especially deposit-taking ones, are highly regulated. Such
institutions play a prominent role in many countries and are even sometimes
protected from competition by governments. Third, financial institutions are powerful
entities in an economy, closely working with central banks (for monetary policy
reasons) or other regulators for investment and insurance.
Politically, banks and other large intermediaries are often subject to special
levies simply because they are large and profitable even though tax policy
considerations might suggest that such activities should bear tax no differently than
others to avoid distorting the allocation of resources in the economy.

Limitation

(1) t is only based on mathematical interpretation of the figures and ignores the
factors such as management style, motivation of workers leadership etc.
(2) t is affected by the price level changes.
(3) t does not give any clue for future.
(4) t is only a study of interim reports
(5) t does not consider changes in price levels.
(6) Changes in accounting procedure by a firm may often make financial analysis
misleading.