Non Baning Fiancial .Sf ,Fw

8/10/2019 Non Baning Fiancial .Sf ,Fw

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FIELD WORK TRAINING IN

SAKTHI FINANCE PRIVATE LIMITED, COMBATORE

Introdution:

The field work trainee went to SAKTHI FINANCE PRIVATE LIMITED,

COIMBATORE at 02-07-2014 to 09-10-2014.The field work trainee learn company

process and their constituent companies in sakthi group. The one of service institution of

society.

History of Company:

SAKTHI FINANCE LTD was incorporated in the year 1955 as a non-banking

finance company of {NBFC} initially towards catering the hire purchase financial

requirements of the groups TELCO dealership units. Sakthi finance was promoted by

DR. N. Mahalingam during the year 1955 in the name of the`` THE POLLACHI

CREDIT SOCIETY LIMITED. The company was later converted into a public limited

as SAKTHI FINANCE LIMITEDPVT LTD on 27thjuly 1967. The company came out

with its first public issue of equity shares in 1984 and rights issue in 1986. The second

and third right issues were floated in 1993 and 1995 with over wheeling response from

investors. The paid up share capital of the company as on 2006to 2007 is 2007.31 lakhs

in the year 1994.

Company business currently involves acceptance of the deposits nonconvertible

debentures, hire purchase financing of commercial vehicles machines etc. Mortgage

financing and other financing related activities with its main focus on the financing of

used commercial vehicles are its main lending activities. Sakthi finance is one of theleading non-banking finance company with over38 branches in TAMILNADU,

KERALA, KARNATAKA and ANDHRA PRADESH.

The major area of application of funds sakthi finance limited as deployment in hire

purchase business and the major source of income to company in derived from the


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financial charges on hire purchase. The company is having a good operational efficiency

and showing a positive growth year on all parameter. Sakthi finance limited is none

banking supervision. The registered with RBI department of nson banking supervision.

Sakthi finance has positioned itself as a niche player by introducing refinancing

for commercial vehicles and construction equipments the company offers various

financing schemes to cater to the funding requirements of commercial vehicle operators.

Objective:

To lend and to advance money or grand loans on any terms that may be

thought fit with or without security to persons, firms, individuals,

companies, local bodies or government and particularly and other person

having dealing with the company

To promote assist in promoting financing aid. Procure aids, manage,

takeover or create any undertaken whether existing or new.

To act as an issue house, registers and share transfer agents, financial

advisors. Technical consultants, system analysis and data processors

To act as secretaries and financiers to enterprise.

Mission:

To partner the progress of small and medium road transport operation

[SRTO]&[MRTO]

TO provide end to end services leading total customer solution speed

fallibility and integrity

End to end service leading to total customer solution

Partnering their progress

Speed flexibility

Integrity


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Vission:

It is a huge, Audacious, but ultimately achievable, Aspiration/Goals for its own

future. Our vision statement depicted in strategy architecture is attached.

Market share among the top 3 refinancer.

10%net margin.

Most preferred financier of customer choice.

95%of competency index.

To partner the progress of small and medium road transport operators. To

provide end to end service leading to total customer solution with speed,

flexibility& integrity

Non Banking Financial Institution:

A NBFC is a company[under the companies act 1956] which engages in the

business of providing loans, advances, acquisitions of shares, stock/debentures securities

issued by the government or local authority or others securities of live marketable nature

, leasing, hire purchase, insurance business &chit business

STRENGTHS OF SAKTHI FINANCE:

It is a part of the sakthi group. One of the reputed groups of southern India headed

by Dr.N. Mahalingam.

Customer base of more than 5 million members.

Experience in hire purchase financing for more then 45 years. Availability of infrastructure to place funds through its wide network of

branches

Valuable dealership network for maruthi telco and Bajaj vehicles

Market share among the top 3 refinancer.


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Company Profile

COMPANY NAME : SAKTHI FINANCE LIMITED

DATE OF ESTABLISHMENT : 30th march 1995

ADDRESS : Sakthi finance limited 62,Dr Nanjappa

road,

. Coimbatore -641108

PHONE NUMBER : 0422-4236276

EMAIL ID : [email protected]

BOARDOF DIRECTORS :

Shri P.Nachimuthu gounder : founder

Dr.N.Mahalingam : Chairman of sakthi group of company

Mr. M. Manikam : Chairman, sakthi finance limited.

Mr.M .Balasubramaniam : Vice Chairman and managing director, sakthi

. Finance ltd

Mr. M. Srinivasan : Director

Mr. A. Selvakumer : Director

Mr. A. Shanmga sundaram : Director

Mr. S. Ragothaman : Director

Mr. P.S. Gopalakrishanan : Director
mailto:[email protected]:[email protected]


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About Each Department:

CARE

CAP

CAMP

EWS

OSM

FINANCE&ACCOUNTS

HUMAN RESOURCE DEPARTMENT

Objective:

To reformulate CRM strategies for generating volume of customers, satisfy

their need, maintain &retain them in such way that they bring in new

customers

To translate, strategic objective targets & goals of the organization as

planned relating 5 prospects & customer to branches.

To coordinate with braches on target fixing & achievement of target

To build & maintain a customer database and keeping them informed about

the new schemes formulated

CARE: Cusstomer Acquistion and Retention

The term indicates planning the marketing function in systematic focused manner

for customer requisition & retention

CAP: Customer Appraisal Process:

This process team takes care of appraising the profiles of all intended borrowers,

who have the capacity and intention to repay the loan. The appraisal process is

centralized and handled by head office. All the braches are linked internally hence the

appraisal is carried out faster,


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CAMP: Customer Asset Managemet Process:

The critical success factor of an NBFC vests in its ability to manage the advance

portfolios and recover the money lent on due. Thus this team at head office continuously

monitors the recovery and officers support to branches on exceptional accounts which

pose collection problems.

EWS: Enterprisse Wide Solution:

ESW is department which is the part of it department where the development of

software is done in an organization.

Functions of HR Department:

To monitor all the financial activities

To provide secretarial assistance to the functional head in day to day

operation

To render required secretarial assistance to functional supervision &heads

In charge for safe custody of all files, assets, documents etc.

Maintaining and updating files, records assets documents .

Funds transfer information

Contribution statement

Accounting statement for receipts &payments

Loans:

Loans are provided on commercial vehicles like lorry , jcb , tempo, etc

Loans are provided o 2basis they are

I.P.O; initial public offering

F.P.O; forward public offering

Methods followed in keeping this accounts are

Book keeping


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Port-folio

Oreganizational Structure:

Managing Director

Operation managing

Service

Shares and

Service

Management

service

Organisation Strategic

Management

Finance

& Accounts

Deposit and Fee

Based Activities

Secretrial

Enterprise

Wide Solution

HRDeparment

RetailResources

System

Admin

Maintenance

ORM HR and AdminOperations

CAMP

CAP

CARE

Retail

Sources

Locker

Operations


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COMPETIORS OF SFL [SAKTHI FINANCE LIMITED]

Sundaram Finance Ltd

Cholamandalam DBS Finance Ltd

Shriram Transport Finance Company Ltd

Bajaj Auto Finance Ltd

Mahindra & Mahindra Financial Services Ltd

Marketing Strategy

SFL has outsourced this process of retail resource mobilization to its associatecompany called sakthi financial services limited. Sakthi financial services limited has

employed around 30 field staff in tamilnadu, to market the fixed deposit and non-

convertible debentures scheme of sakthi finance limited. Potential customers are

contacted and explained about the schemes and deposit is mobilized.

The marketing activity for lending is directly handled by sakthi finace limited. The

company 32 branches in Kerala, Andhra Pradesh Karnataka and Pondicherry, each

branch is headed by branch manager. At present there are 123 marketing officer in the

rolls of the company. They are responsible for lending money in that area and also for

collecting the installments. These officers are given required marketing support, by

holding special customer meets& campaigns.

PROFESSIONAL INSIGHT:

This topic describes, various knowledge gained by the field trainee in sakthi

finance ltd. It highlights about the various functions of human resource department.

Human Resource Department:


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Sakthi finance limited currently has total manpower of around 400 persons. HR

process is one of the seven core processes in the company. HR department is

strengthened with qualified HR professional and the department consists of 7 members.

Function of HR department:

SSelection and recruitment of right candidate

TTraining and development for existing employees and new entrants

AAppraisal and retirement through compensation, career growth and separation

RRetention and retirement through compensation career growth and separation

Apart from this, HR department takes care if establishment functions such as,

statutory welfare functions, wages and salary and administrative function.

Human resource:

The company has a performance based appraisal and remuneration system to

compensate reward the employees

Regular performance feedback is given to employees on their performance based

on a halfyearly appraisal process.

The company has taken necessary steps to assist the employees of the company

in planning the employees individual growth within the company

The company provides good opportunities for employees who have a track record

of high performance and potential to progress within the company.

Recruitment:

The recruitment is the process of identifying the sources for prospective

candidates and to stimulate to apply for the job

In SFL through various sources like employee referral scheme or through

advertisement, employees will be called for interview and their skills will be analyzed

through following prelims and technical sessions. Mainly it includes personal profile

analysis of the candidate and psychological tests, those taste are conducted for the


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candidates, to whom certain questions will be given and asked to fill in a prescribed hour.

Basically this process concentrates on the marketing officers.

Training and Development:

Training is provided to the selected candidates to mould them, according to

their nature of job.

It helps to update their skills.

Training targets on identifying he problem In them.

Finally it helps to motivate and develop their attitude towards their job

The following legislations are followed in this agency; they are;

The payment of gratuity act 1972

Employee provident fund act 1952

The payment of bonus act 1965

Employee state insurance act 1948

Statutory Measures:

The sakthi finance was registered under shops and establishment act of 1947.

The Tamilnadu Shops and Establishment Act (1947)

An act to provide for the regulation of conditions of work in shops, commercial

establishments restaurants, theaters and other establishment, and for certain other

purposes.

Its main features of the act are set below;

The bill will apply to persons employed in shops, commercial firms,

restaurants, theaters etc, but will not apply to certain establishments and

person under the ;control or provincial government etc


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Provision has also been made as in the weekly holidays act 1942 , for

granting to the persons employed a compulsory holiday for one day in week

and if required by government, half-holiday also in week

Chapter IV contains the employment of children I e persons who have notcompleted 14 year in shops commercial firms ,restaurant, etc,

Chapter V contains provisions with a view to securing the; health and

safety of the staff of the staff, and chapter VI provides for the grant of

annual holidays with pay to them. These chapters are based upon certain

provisions in the in the factories ACT 1937.

The provisions in chapter VII are intended to ensure prompt paying

payment of wages and prohibition of unauthorized from wages and follow

mainly those of the payment of wages act 1936

Suitable penalties have been prescribed in chapter for IX contravention of

the different provision of the bill.

The Employees State Insurance Act 1948

Contributions:

ESI scheme is a contributory scheme, in which both Employers and Employees

contribute as per the rates prescribed in the ESI (Central) Rules, 1950. Contribution is the

amount payable to the Corporation by the Principal Employer in respect of an employee

and comprises the amount payable by the Employer and Employee. Employees

contribution at present is 1.75 % of the wages, whereas, the Employers contribution is

4.75 per cent of the wages paid/payable in respect of every wage period.

Benefits to Employees: Medical Benefit - for self & family

Sickness Benefit - for self

Maternity Benefit - for self

Dependants Benefits.


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Disablement Benefit

a) Temporary Disablement Benefitfor self

b) Permanent Disablement Benefit - for self

Employee Provident Fund (EPF) 2013-2014: This scheme provides for savings during the period of employment

This provides advances and withdrawals for special reasons such as

housing, medical etc.,

The accumulation in the account of members is returned in case of

retirement or dies and it can also be transferred to new provident fund

account in case of establishment.

It serves as social security scheme which helps to lead the livelihood even

after retirement.

Benefits under the Provident Fund:

Marriage loan 50% of employee share.

House loan

Education50% member share

Natural calamities Rs.15000

Medical Loan4 to 6 times basic pay.

10-years service completed

Employee Pension Scheme (EPS)

Benefits under this scheme

Monthly members pension

Monthly widow pension

Monthly childrens pension

Monthly orphan pension

Monthly disablement pension.

The Factories Act, 1948 & the Tamil Nadu Factories Rules, 1950


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The Factories Act 1934 was existing law at the time Factories Act 1948

came into force.

It deals with Health, Safety, Welfare, Working Hours Leave with wages,

Prohibition of Child Labour, etc.Object of the act:

An act to consolidate and amend the law regulating labor in factories.

To ensure adequate safety, welfare measures and to promote health and

working conditions of the workers.

Asocial enactment to achieve social reform a remedial and beneficial

legislation.

Applicability:

It is a Central Act extends to whole of India, applies to every factory where

Manufacturing process is carried on, with

10 or more workers with the aid of power Sec.2m(i)

20 or more workers without aid of power Sec.2(m)(i)

Less than 10 workers with aid of power or less than 20 workers without power

(Notified Factories)Sec.85 (i)

The Payment of Gratuity Act 1972:

Gratuity is payable to employee on his death or retirement or termination of his

employment. It came into existence on September 16.1972

Gratuity calculation:

Gratuity= last drawn salary *15*no of year of service

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For piece rated employee gratuity can be calculated on the basis of average of past 3

months instead of last draws salary


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For seasonal employee it is calculated

Gratuity = last drawn salary *7* no seasons per year

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Maximum gratuity payable under the act is Rs. 3,50,000 to Rs, 10,000

Every salaried person who has completed five years of government or

private sector service is eligible for half a month salary as gratuity for every

completed year of service.

Every employee with more than tem salaried worker is mandated to provide

gratuity to the eligible employees.

Employee Provident Fund Act 1952:

It comes to existence on 4thmarch 1952. It extends to whole India except the state

Jammu Kashmir

PF Contribution

As per this act employer and employee contribution from their salary to provident

fund is defined they are;

Employee contributes 12% to the basic ceiling of their salary Rs. 15000/-

Employer contribution 13.61% which includes

1.

Contribution 12%

2.

Administration charges 1.10%

3. EDLI charges of 0.5%and

4.

EDLI administration charges 0.01%

To the basic ceiling of their salary Rs 6500 /-or whichever is higher.

From that 12% the employer contribution 8.33% for pension which constitutes

minimum amount of Rs 541

Employee State Insurance Act 1948:

ESI Contribution:


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Employer contribution -4.75%

Employee contribution1.75%

It is calculated I the basis of basic salary and dearness allowances. Basic ceiling

amounts is Rs 15000

The Payment of Bounus Act 1965:

This act is the outcome of the recommendation made by tripartite commission. It

is maintain peace and harmony between labor and capital was enacted in this year 1965.

Employee who worked in the establishment for not less than 30day is

eligible for bonus.

A minimum bonus not lass than8.33% of the wages and maximum of 20%

shall be given.

Within 8 months from the close of accounting tear the bonus should be

paid.

Recent Amendments Are:

To raise the eligibility limit for payment of bonus from the salary or wage

of Rs 3500/- to Rs. 10.000 per month

To raise the ceiling for calculation purpose from the salary or wage of Rs

2500 /- to Rs 3500 /- per month

Contribution Period:

Contribution period is 1stApril to 30st September and 1stOctober to 31stmarch.

Benefits:

1.

Sickness benefit

2.

Maternity benefit

3.

Disablement benefit

4.

Dependent benefit


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5.

Medical benefit

6.

Funeral benefit

Benefit period is from January 1stJune 30st and jolly 1

stto December 31

st.

ESI Procedures through Online:

Registration of new employee is made through online itself by filling form

1 & from 3.

Every registered member are provided with pinion card.

The identity numbers will be used wherever the person is employed.

Contributions and returns are also made through from 5.

Thus online service makes the easier and quick.

National & Festival Holidays

The establishment is government under the Tamilnadu industrial establishment

1958 act. The company observes national and festive holidays in a year .Out of the above

4 national holidays are declared as started blow

Republic day

May day

Independence day

Gandhi jayanthi

In additions 7 festival holidays are declared depending on the local festival of

respective sate

These holidays are paid holiday employee can be called to work on such holidays

subject to provisions in the act

Thus various information gained from the legislations followed in the company.


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Other Activities:

Leave Card

Leave card was filled by the trainee, which consists of information like total

casual leave given is 12 , sick leave 12, enhancement leave 12 and the total leave

taken by the person is recorded and calculated.

Document Writing

The document regarding the agreement made between the agency and hire

was filled by the trainee, which consists of details about hire and guarantor.

It is considered as legal document and used for band purposes.

Knowledge about file management

Thus the field trainee gathered knowledge from the various activities undertaken

in sakthi finance ltd.

Self Leaning:

The field work trainee learnt that human resource manager helps management in

the formation of policies governing talent acquisition and retention, wages and salary

administration, welfare activities personnel records, working condition.

HR manager discusses various problem of the employees relating work, career,

their supervision, health, family, financial, social etc

The HR department is implemented welfare and safety measures to the employees.

Conclusion

In the internship training I was able to know about the work taking place in the

organization. The trainee learnt about HR part in the recruitment process. The training

which trainee undergone , for working 22 days was really useful and added a credit in

the path of social worker In financial setting.

Non Baning Fiancial .Sf ,Fw

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