Manju Honda Finance Project.docx

A STUDY ON FINANCIAL SUPPORT TO TWO WHEELER CUSTOMERS WITH REFERENCE TO “ANVITA HONDA SHOW ROOM ” VIJAYAWADA” A PROJECT WORK SUBMITTED TO KRISHNA UNIVERSITY, MACHILIPATNAM.

In partial fulfillment of the requirement for the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION Submitted by MANJEERA VELIKANTI Under the guidance of MR.M.SATHYENDRA KUMAR. PROFESSOR AT KRISHNAVENI DEGREE COLLEGE.

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(Affiliated to KRISHNA UNIVERSITY)CHALASANI NAGAR,PORANKI,TARAKATURU, VIJAYAWADA. KRISHNAVENI DEGREE COLLEGE OF BUSINESS MANAGEMENT VIJAYAWADA – 08

CERTIFICATE This is to certify that the project work entitled “FINANCIAL SUPPORT TO TWO WHEELER CUSTOMERS WITH REFERENCE TO “ANVITA HONDA SHOW ROOM ” VIJAYAWADA” is being submitted by V.MANJEERA bearing register number Y166194022 student of 2ND year, belongs to department of Business Management studies, 2

KRISHNAVENI DEGREE COLLEGE, Vijayawada under my guidance in partial fulfillment of award for the Degree in Bachelor of Business Management for the period 2016-2019

(PROJECT GUIDE)

PRINCIPAL

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DECLARATION I “MANJEERA

VELIKANTI” hereby declare that this project titled “A

STUDY ON FINANCIAL SUPPORT TO TWO WHEELER CUSTOMERS WITH SPECIAL REFERENCE AT “ANVITA HONDA SHOW ROOM, VIJAYAWADA” has been prepared by me in partial fulfillment of the requirement for the award of Degree of BACHELOR OF BUSINESS ADMINISTRATION.

I also declare that this project report is my original work and that it has not been submitted to any other University for the award of any degree or diploma. SIGNATURE MANJEERA VELIKANTI

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ACKNOWLEDGEMENT I feel immense pleasure & proud to be a part of Westin College Of Business Management that has nurtured me to the present state and I feel grateful towards it. I would like to thank our college Director, MS BHULAKSHMI and SRI KRISHNAVENI DEGREE COLLEGE I express my sincere thanks to “ANVITA HONDA”,VIJAYAWADA, for allowing me to undertake a project in their company. I was under the continuous and valuable guidance ofMR. SHYAM PRASAD, General Manager that I was able to complete the work entrusted to me. Lastly I would like to thank my project guide M.SATHYENDRA KUMAR who was a constant source of encouragement. MANJEERAVELIKANTI (Regd. No: Y166194022)

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CONTENTS S.No

Chapter Name

Page Number

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INTRODUCTION

1-33

2

METHODOLOGY OR RESEARCH DESIGN

33-38

3

COMPANY PROFILE

39-51

4

ANALYSIS AND INTERPRETATION

52-64

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SUMMARY,CONCLUSIONS AND SUGGESTIONS

65-68

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BIBILIOGRAPHY

69-82

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CHAPTER 1 INTRODUCTION

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1.INTRODUCTION The two wheeler industry has been expanding rapidly. Gone are the days when processing a two wheeler was seen as a luxury. Now a day it is viewed as a mere necessity. Prior, sale of two wheelers was mainly confined to urban areas but lately in rural areas the bicycles are being replaced by power driven two wheelers such as scooters and motorcycles. Not only this, the indust ry has also customers ranging from all demographic segments. It has been common that even school going children are driving two wheelers. The women customers are also increasing due to increase in women literacy and employment. If getting a new customer is difficult, then retaining a current customer is more difficult one and not only that it is estimated that the cost of attracting a new customer is five times retaining the current customer. It requires a great deal of effort to induce satisfied customer to switch away f r o m t h e i r c u r r e n t p r e f e r e n c e . Thus customer attitude is been given top priority in t o d a y ’ s competitive world.

We know business is mainly concerned with the financial activities. In order to ascertain the financial status of the business every enterprise prepares certain statements, known as financial statements. Financial statements are mainly prepared for decision making purposes. But the information as is provided in the financial statements is not adequately helpful in drawing a meaningful conclusion. Thus, an effective analysis and interpretation of financial statements is required.

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TITLE OF THE PROJECT: A Study On “FINANCIAL SUPPORT TO TWO WHEELER CUSTOMERS WITH REFERENCE TO ANVITA HONDA SHOW ROOM.’’ DATA COLLECTION: PRIMARY DATA: The primary data related to the study has been collected from • Mr.SHYAMPRASAD(GENERAL MANAGER) • Mr.SUNEEL (SALES MANAGER) SECONDARY DATA: The data collected for making my study on Financial Statement Analysis is secondary data; the various sources of secondary data are as follows: Annual reports of (ANVITA HONDA VIJAYAWADA.) Websites oF  http://www.Anvitahonda.com/  http://www.investopedia.com/  https://www.indiamart.com/  www.pdfcoke.com 9

PERIOD OF STUDY:The duration of the study is 90 days based on the annual reports of the company (ANVITA HONDA VIJAYAWADA)

MEANING OF FINANCE Finance may be defined as the art and science of managing money. It includes financial service and financial instruments. Finance also is referred as the provision of money at the time when it is needed. Finance function is the procurement of funds and their effective utilization in business concerns. The concept of finance includes capital, funds, money, and amount. But each word is having unique meaning. Studying and understanding the concept of finance become an important part of the business concern. DEFINITION OF FINANCE According to Khan and Jain, “Finance is the art and science of managing money”. According to Oxford dictionary, the word ‘finance’ connotes ‘management of money’.

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DEFINITION OF BUSINESS FINANCE According to the Wheeler, “Business finance is that business activity which concerns with the acquisition and conversation of capital funds in meeting financial needs and overall objectives of a business enterprise”. According to the Guthumann and Dougall, “Business finance can broadly be defined as the activity concerned with planning, raising, controlling, administering of the funds used in the business”.

TYPES OF FINANCE Finance is one of the important and integral part of business concerns, hence, it plays a major role in every part of the business activities. It is used in all the area of the activities under the different names. Finance can be classified into two major parts:

Private Finance, which includes the Individual, Firms, Business or Corporate Financial activities to meet the requirements. 11

Public Finance which concerns with revenue and disbursement of Government such as Central Government, State Government and Semi-Government Financial matters. DEFINITION OF FINANCIAL MANAGEMENT Financial management is an integral part of overall management. It is concerned with the duties of the financial managers in the business firm. The term financial management has been defined by Solomon, “It is concerned with the efficient use of an important economic resource namely, capital funds”. Howard and Upton: Financial management “as an application of general managerial principles to the area of financial decision-making. Weston and Brigham: Financial management “is an area of financial decisionmaking, harmonizing individual motives and enterprise goals”. Thus, Financial Management is mainly concerned with the effective funds management in the business. In simple words, Financial Management as practiced by business firms can be called as Corporation Finance or Business Finance.

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SCOPE OF FINANCIAL MANAGEMENT Financial management is one of the important parts of overall management, which is directly related with various functional departments like personnel, marketing and production. Financial management covers wide area with multidimensional approaches. The following are the important scope of financial management. 1. Financial Management and Economics Economic concepts like micro and macroeconomics are directly applied with the financial management approaches. Investment decisions, micro and macro environmental factors are closely associated with the functions of financial manager. Financial management also uses the economic equations like money value discount factor, economic order quantity etc. Financial economics is one of the emerging area, which provides immense opportunities to finance, and economical areas. 2. Financial Management and Accounting Accounting records includes the financial information of the business concern. Hence, we can easily understand the relationship between the financial management and accounting. In the olden periods, both financial management and accounting are treated as a same discipline and then it has been merged as Management Accounting 13

because this part is very much helpful to finance manager to take decisions. But nowadays financial management and accounting discipline are separate and interrelated. 3. Financial Management or Mathematics Modern approaches of the financial management applied large number of mathematical and statistical tools and techniques. They are also called as econometrics. Economic order quantity, discount factor, time value of money, present value of money, cost of capital, capital structure theories, dividend theories, ratio analysis and working capital analysis are used as mathematical and statistical tools and techniques in the field of financial management. 4. Financial Management and Production Management Production management is the operational part of the business concern, which helps to multiple the money into profit. Profit of the concern depends upon the production performance. Production performance needs finance, because production department requires raw material, machinery, wages, operating expenses etc. These expenditures are decided and estimated by the financial department and the finance manager allocates the appropriate finance to production department. The financial manager must be aware of the operational process and finance required for each process of production activities. 14

5. Financial Management and Marketing Produced goods are sold in the market with innovative and modern approaches. For this, the marketing department needs finance to meet their requirements. The financial manager or finance department is responsible to allocate the adequate finance to the marketing department. Hence, marketing and financial management are interrelated and depends on each other. 6. Financial Management and Human Resource Financial management is also related with human resource department, which provides manpower to all the functional areas of the management. Financial manager should carefully evaluate the requirement of manpower to each department and allocate the finance to the human resource department as wages, salary, remuneration, commission, bonus, pension and other monetary benefits to the human resource department. Hence, financial management is directly related with human resource management. APPROACHES TO FINANCIAL FUNCTION Financial management approach measures the scope of the financial management in various fields, which include the essential part of the finance. Financial management is not a revolutionary concept but an evolutionary. The definition and scope of financial management has been changed from one period to another period and 15

applied various

innovations. Theoretical points of view, financial management

approach may be broadly divided into two major parts. A number of approaches are associated with finance function but for the sake of convenience, various approaches are divided into two broad categories: 1. The Traditional Approach 2. The Modern Approach

1. The Traditional Approach: The traditional approach to the finance function relates to the initial stages of its evolution during 1920s and 1930s when the term ‘corporation finance’ was used to describe what is known in the academic world today as the ‘financial management’. According to this approach, the scope, of finance function was confined to only procurement of funds needed by a business on most suitable terms. The utilisation of funds was considered beyond the purview of finance function. It was felt that decisions regarding the application of funds are taken somewhere else in the organisation. However, institutions and instruments for raising funds were considered to be a part of finance function.

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The scope of the finance function, thus, revolved around the study of rapidly growing capital market institutions, instruments and practices involved in raising of external funds. The traditional approach to the scope and functions of finance has now been discarded as it suffers from many serious limitations: (i) It is outsider-looking in approach that completely ignores internal decision making as to the proper utilisation of funds. (ii) The focus of traditional approach was on procurement of long-term funds. Thus, it ignored the important issue of working capital finance and management. (iii) The issue of allocation of funds, which is so important today, is completely ignored. (iv) It does not lay focus on day to day financial problems of an organisation. 2. The Modern Approach: The modern approach views finance function in broader sense. It includes both rising of funds as well as their effective utilisation under the purview of finance. The finance function does not stop only by finding out sources of raising enough funds; their proper utilisation is also to be considered. The cost of raising funds and the returns from their use should be compared. 17

The funds raised should be able to give more returns than the costs involved in procuring them. The utilisation of funds requires decision making. Finance has to be considered as an integral part of overall management. So finance functions, according to this approach, covers financial planning, rising of funds, allocation of funds, financial control etc. The new approach is an analytical way of dealing with financial problems of a firm. The techniques of models, mathematical programming, simulations and financial engineering are used in financial management to solve complex problems of present day finance. The modern approach considers the three basic management decisions, i.e., investment decisions, financing decisions and dividend decisions within the scope of finance function. OBJECTIVES OF FINANCIAL MANAGEMENT Effective procurement and efficient use of finance lead to proper utilization of the finance by the business concern. It is the essential part of the financial manager. Hence, the financial manager must determine the basic objectives of the financial management. Objectives of Financial Management may be broadly divided into two parts such as: 1. Profit maximization 18

2. Wealth maximization. 1. PROFIT MAXIMIZATION Main aim of any kind of economic activity is earning profit. A business concern is also functioning mainly for the purpose of earning profit. Profit is the measuring techniques to understand the business efficiency of the concern. Profit maximization is also the traditional and narrow approach, which aims at, maximizes the profit of the concern. Profit maximization consists of the following important features. 1. Profit maximization is also called as cashing per share maximization. It leads to maximize the business operation for profit maximization. 2. Ultimate aim of the business concern is earning profit; hence, it considers all the possible ways to increase the profitability of the concern. 3. Profit is the parameter of measuring the efficiency of the business concern. So it shows the entire position of the business concern. 4. Profit maximization objectives help to reduce the risk of the business. FavourableArguments for Profit Maximization The following important points are in support of the profit maximization objectives of the business concern:

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(i) Main aim is earning profit. (ii) Profit is the parameter of the business operation. (iii) Profit reduces risk of the business concern. (iv)Profit is the main source of finance. Unfavourable Arguments for Profit Maximization The following important points are against the objectives of profit maximization: (i) Profit maximization leads to exploiting workers and consumers. (ii) Profit maximization creates immoral practices such as corrupt practice, unfair trade practice, etc. (iii) Profit maximization objectives leads to inequalities among the stake holders such as customers, suppliers, public shareholders, etc.

Drawbacks of Profit Maximization Profit maximization objective consists of certain drawback also: (i) It is vague: In this objective, profit is not defined precisely or correctly. It creates some unnecessary opinion regarding earning habits of the business concern. 20

(ii) It ignores the time value of money: Profit maximization does not consider the time value of money or the net present value of the cash inflow. It leads certain differences between the actual cash inflow and net present cash flow during a particular period. (iii) It ignores risk: Profit maximization does not consider risk of the business concern. Risks may be internal or external which will affect the overall operation of the business concern. 2. WEALTH MAXIMIZATION Wealth maximization is one of the modern approaches, which involves latest innovations and improvements in the field of the business concern. The term wealth means shareholder wealth or the wealth of the persons those who are involved in the business concern. Wealth maximization is also known as value maximization or net present worth maximization. This objective is a universally accepted concept in the field of business.

Favourable Arguments for Wealth Maximization (i) Wealth maximization is superior to the profit maximization because the main aim of the business concern under this concept is to improve the value or wealth of the shareholders. 21

(ii) Wealth maximization considers the comparison of the value to cost associated with business operation. It provides extract value of the business concern. (iii) Wealth maximization considers both time and risk of the business concern. (iv)Wealth maximization provides efficient allocation of resources. (v) It ensures the economic interest of the society. Unfavourable Arguments for Wealth Maximization (i)Wealth maximization leads to prescriptive idea of the business concern but it may not be suitable to present day business activities. (ii)Wealth maximization is nothing, it is also profit maximization, it is the indirect name of the profit maximization. (iii)Wealth maximization creates ownership-management controversy. (iv)Management alone enjoys certain benefits. (v) The ultimate aim of the wealth maximization objectives is to maximize the profit. (vi)Wealth maximization can be activated only with the help of the profitable position of the business concern. SCOPE OR CONTENT OF FINANCE FUNCTION/FINANCIAL MANAGEMENT

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The main objective of financial management is to arrange sufficient finance for meeting short-term and long-term needs. With these things in mind, a Financial Manager will have to concentrate on the following areas of finance function. 1. Estimating Financial Requirements: The first task of a financial manager is to estimate short-term and long-term financial requirements of his business for this purpose, he will prepare a financial plan for present as well as for future. The amount required for purchasing fixed assets as well as needs of funds for working capital will have to be ascertained. The estimations should be based on sound financial principles so that neither there are inadequate nor excess funds with the concern. The inadequacy of funds will adversely affect the day-today working of the concern whereas excess funds may tempt a management to indulge in extravagant spending or speculative activities. 2. Deciding Capital Structure: The capital structure refers to the kind and proportion of different securities for raising funds. After deciding about the quantum of funds required it should be decided which type of securities should be raised. It may be wise to finance fixed assets through long-term debts. Even here if gestation period is longer, then share capital may be most suitable. Long-term funds should be employed to finance

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working capital also, if not wholly then partially. Entirely depending upon overdrafts and cash credit for meeting working capital needs may not be suitable. A decision about various sources for funds should be linked to the cost of raising funds. If cost of raising funds is very high then such sources may not be useful for long. A decision about the kind of securities to be employed and the proportion in which these should be used is an important decision which influences the short-term and long-term financial planning of an enterprise. 3. Selecting a Source of Finance: After preparing a capital structure, an appropriate source of finance is selected. Various sources, from which finance may be raised, include: share capital, debentures, financial institutions, commercial banks, public deposits, etc. If finances are needed for short periods then banks, public deposits and financial institutions may be appropriate; on the other hand, if long-term finances are required then share capital and debentures may be useful. If the concern does not want to tie down assets as securities then public deposits may be suitable source. If management does not want to dilute ownership then debentures should be issued in preference to shares. The need, purpose, object and cost involved may be the factors influencing the selection of a suitable source of financing.

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4. Selecting a pattern of investment: When funds have been procured then a decision about investment pattern is to be taken. The selection of an investment pattern is related to the use of funds. A decision will have to be taken as to which assets are to be purchased? The funds will have to be spent first on fixed assets and then an appropriate portion will be retained for working capital. Even in various categories of assets, a decision about the type of fixed or other assets will be essential. While selecting a plant and machinery, even different categories of them may be available. The decision-making techniques such as Capital Budgeting, Opportunity Cost Analysis etc. may be applied in making decisions about capital expenditures. While spending or various assets, the principles. One may not like to invest on a project which may be risky even though there may be more profits. 5. Proper Cash Management: Cash management is also an important task of finance manager. He has to assess various cash needs at different times and then make arrangements for arranging cash. Cash maybe required to (a) purchase raw materials, (b) make payments to creditors, (c) meet wage bills; (d) meet day-to-day expenses. The usual sources of cash may be: (a) cash sales, (b) collection of debts, (c) short-term arrangements with banks etc. The cash management should be such that neither there is a shortage of it and nor it is idle An shortage of cash will damage the creditworthiness of the enterprise. The idle cash 25

with the business will mean that it is not properly used. It will be better if Cash Flow Statement is regularly prepared so that one is able to find out various sources and applications. If cash is spent on avoidable expenses then such spending may be curtailed. A proper idea on sources of cash inflow may also enable to assess the utility of various sources. Some sources may not be providing that much cash which we should have thought. All this information will help in efficient management of cash. 6. Implementing Financial Controls: An efficient system of financial management necessitates the use of various control devices. Financial control devices generally used are: (a) Return on investment, (b) Budgetary Control, (c) Break Even Analysis, (d) Cost Control, (e) Ratio Analysis (f) Cost and Internal Audit. Return on investment is the best control device to evaluate the performance of various financial policies. The higher this percentage better may be the financial performance. The use of various control techniques by the finance manager will help him in evaluating the performance in various areas and take corrective measures whenever needed. 1. Proper Use of Surpluses: Theutilization of profits or surpluses also an important factor in Financial Management. A judicious use of surpluses is essential for expansion and diversification plans and also in protecting the interests shareholders. The ploughing 26

back of profits is the best policy of further financing but it clashes with the interests of shareholders. A balance should be struck in using funds for paying dividend and retaining earnings for financing expansion plans, etc. The market value of shares will also be influenced by the declaration of dividend and expected profitability in future. A finance manager should consider the influence of various factor, such as: a) Trends of earning of the enterprises, (b) Expected earnings in future, (c) Market value of shares, (d) Need for funds for financing expansion, etc. A judicious policy for distributing surpluses will be essential for maintaining proper growth of the unit

FUNCTIONS OF FINANCIAL MANAGEMENT

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Executive functions of financial management are: 1. Raising the Funds Required, 2. Assessing Total Capital Requirement, 3. Deciding the Capital Structure, 4. Estimating the Cost of capital, 5. Management of Fixed Capital, 6. Management of Working Capital, 7. Control of Funds, 8. Allotment of Excess Profit, 9. Planning Tax, 28

10.Performance Evaluation, 11.Helps Management.

Executive functions of financial management are discussed in brief: 1. Raising the Funds Required Executive functions of financial management are raising the required funds. Funds can be raised from various sources like issue of shares, debentures, fixed deposits, bonds, borrowings, etc. The finance executive has to decide the proportion in which the different sources should be raised. 2. Assessing Total Capital Requirement Executive functions of financial management are assessing the total capital requirement. The basic responsibility of the financial executive is to prepare the monetary plan of the company. At the promotion stage, every firm must estimate its capital needs. Funds may be required for working capital, promotional capital and development capital. To avoid over-capitalization and under-capitalization the finance executive has to access these needs of funds properly. 3. Deciding the Capital Structure

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Capital Structure refers to the composition of different securities that comprises the capital of the business. There should be a proper composition of various securities to avoid an imbalance in capital structure. 4. Estimating the Cost of capital Executive functions of financial management are estimating the cost of capital. Cost of capital is the rate at which an organization may pay to the suppliers of capital for the use of their funds. For E.g. It is expected to pay dividend on equity shares, etc. 5. Management of Fixed Capital Executive functions of financial management are managing the fixed capital. Investments should be made in those assets which would satisfy the present as well as future needs of the company. For proper, a replacement of fixed assets, convenient depreciation policies should be adopted. 6. Management of Working Capital The finance executive has to ensure that the company maintain adequate working capital. Inadequate working capital may bring work of the company to a standstill. Excessive amount in working capital will block the funds. 7. Control of Funds

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Executive functions of financial management are controlling the funds. The finance executive has to ensure that cash is utilized as per the plan and in case of any deviation, corrective measures should be taken. 8. Allotment of Excess Profit In distribution of Excess Profit, a firm has two options: To pay dividend or to retain earnings for expansion and diversification. A firm must strike a balance between the two choices else distribute the surplus. 9. Planning Tax Executive functions of financial management are proper planning of taxes. In every budget, different schemes are announced, which offer tax rebates, deductions, etc. In order to reduce the tax liability the finance executive has to properly-study the schemes and then invests accordingly.

10. Performance Evaluation Evaluating the financial performance is vital executive functions of financial management. For evaluation, the finance executive may use techniques like ratio analysis, fund flow statements, etc. 31

11. Helps Management The finance executive helps the management in decision-making as he is well experienced with the financial aspects of the company. Routine Functions of Financial Management: Routine functions are clerical functions. They help to perform the executive functions of financial management Routine 1. Maintaining various books of accounts of the companies. 2. Administration of Cash receipts and payments. 3. Maintaining cash balances of the company. 4. Routine functions of financial management are to preserving of securities, insurance policies and other valuable papers. 5. Preparing of final accounts. 6. Interacting with banks. 7. Keeping record and reporting. 8. Assisting a finance executive in the performance of their roles.

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FUNCTIONS OF FINANCE MANAGER:

Finance function is one of the major parts of business organization, which involves the permanent and continuous process of the business concern. Finance is one of the interrelated functions which deal with personal function, marketing function, production function and research and development activities of the business concern.

At present, every business concern concentrates more on the field of finance because, it is a very emerging part which reflects the entire operational and profit ability position of the concern.

Deciding the proper financial function is the essential and ultimate goal of the business organization. Finance manager is one of the important role players in the field of finance function. He must have entire knowledge in the area of accounting, finance, economics and management. His position is highly critical and analytical to solve various problems related

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to finance. A person who deals finance related activities may be called finance manager.

Finance manager performs the following major functions: 1. Forecasting Financial Requirements It is the primary function of the Finance Manager. He is responsible to estimate the financial requirement of the business concern. He should estimate, how much finances required to acquire fixed assets and forecast the amount needed to meet the working capital requirements in future. 2. Acquiring Necessary Capital After deciding the financial requirement, the finance manager should concentrate how the finance is mobilized and where it will be available. It is also highly critical in nature. 3. Investment Decision The finance manager must carefully select best investment alternatives and consider the reasonable and stable return from the investment. He must be well versed in the field of capital budgeting techniques to determine the effective utilization of 34

investment. The finance manager must concentrate to principles of safety, liquidity and profitability while investing capital. 4. Cash Management Present days cash management plays a major role in the area of finance because proper cash management is not only essential for effective utilization of cash but it also helps to meet the short term liquidity position of the concern. 5. Interrelation with Other Departments Finance manager deals with various functional departments such as marketing, production, personnel, system, research, development, etc. Finance manager should have sound knowledge not only in finance related area but also well versed in other areas. He must maintain a good relationship with all the functional departments of the business organization.

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CHAPTER-2 METHODOLOGY OR RESEARCH DESIGN

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OBJECTIVES OF THE STUDY •To study the profile of Two wheeler Industry in India. •To study the marketing activities of Honda Motors. •To study the Dealership profile of Vishnu Honda. •To study the customer handling practices prior to sale, during sale and after sale and assesses the satisfaction levels of customers. •To offer suggestion for improving the customer satisfaction 1.The primary objective is to assess the existing financial position of (ANVITA HONDA VIJAYAWADA.) 2. . during the study period. To analyze the financial position of the(ANVITA HONDA VIJAYAWADA.) 3. . during the study period by using ratio analysis. 4. To know the credit worthiness of the company. 5. To analyze the trends of various items which appear in financial statements. 6. To know the company’s liquidity and profitability position by ratios. 7. To offer suggestions for improving financial position of the company, if require. NEED FOR THE STUDY 8. The need of the study is to analyze the existing situation of the company. 9. The study is necessitated to make aware of the practical knowledge on financial management. 10.The study gives a clear cut picture of the company regarding their liquidity and profitability position. 37

11.The study also helps the company to find out its solvency position. SCOPE OF THE PROJECT: After globalizations, number of two wheeler markets have enterd Indian Market. Newc o m p a n i e s h a v e b e e n s e t u p w i t h f o r e i g n , s p e c i a l l y J a p a n e s e C o l l a b o r a t i o n b y a l r e a d y established companies. Honda motors Japan has set up subsidiary company at Gurgaon , India too ffer state of the art Honda two wheelers to Indian makes Honda motors with its wide productrange has achieved a respectful market shone with strong dealer network and excellent after sales services. Even though there is waiting period for some products, some are available across the shelf dealerships are upon not only at metros, but also at urban and semi urban areas. T h i s i s t o provide prompt after sales services . it has opened class of art show rooms and work shops at allthe places. There is a need to study to efforts put in by the Company, Dealers and Service network to study the extent to which customers are satisfied with the product, service and allied services etc. Hence it is proposed to study the Customer Satisfaction levels of Honda Customers with respect to the product performance, after sales service and other allied services like finance facility, availability of spares and accessories etc LIMITATIONS OF THE STUDY: - The study is limited to Honda Motors Customers who have purchased or come for serviceto ANVITHA Honda at VIJAYAWAD. Since a convenient sampling method is adopted, the sample ma y not be representing all types of customers. As the study is conducted for a limited period and hence it may not be exhaustive. 38

CHAPTER-3 COMPANY PROFILE

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COMPANY PROFILE

HONDA MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world largest manufacturer of two - wheelers, based in India. In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and also, the two-wheeler company in terms of unit volume sales in a calendar year. HONDA MotoCorp Ltd. continues to maintain this position till date.

VISION The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered India, powered by its two wheelers. HONDA MotoCorp Ltd., company& new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company footprint in the global arena. MISSION Hero MotoCorp’s mission is to become a global enterprise fulfilling its customers& needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners. STRATEGY Hero MotoCorp’s key strategies are to build a robust product portfolio across categories, explore growth opportunities globally, continuously improve its operational efficiency, aggressively expand its reach to customers, continue to invest in brand building activities and ensure customer and shareholder delight. Honda Motor Co., Ltd. 40

today announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2010. Fourth Quarter Results Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal fourth quarter ended March 31, 2010 amounted to JPY 72.1 billion (USD 776 million), an increase of JPY 252.1 billion from the same period in 2009. Basic net income attributable to Honda M o t o r C o . , L t d . per common share for the quarter amounted to JPY 39.78 (USD 0.43), ani n c r e a s e o f J P Y 1 3 8 . 9 5 f r o m t h e c o r r e s p o n d i n g p e r i o d l a s t y e a r O n e H o n d a A m e r i c a n Depository Share represents one common share. Consolidated net sales and other operating revenue (herein referred to as “revenue”) for the quarter amounted to JPY 2,279.5 billion (USD 24,501 million), an increase of 27.8% from the same period in 2009, due primarily to increased revenue in all of the business segments and currency translation effects. Honda estimates that had the exchange rates remained the same from the corresponding period in 2009, revenue for the q u a r t e r w o u l d h a v e i n c r e a s e d b y approximately 25.4%. Consolidated operating income for the quart e r a m o u n t e d t o J P Y 9 6 . 0 b i l l i o n ( U S D 1,033millio n), an increase of JPY368.2 billion from the same period in 2009, due primarily to increased profit attributable to increased revenue, reductio n i n v e h i c l e c o s t s a s a r e s u l t o f increased production and decreased SG&A expenses. Consolidated income before income taxes and equity in i n c o m e o f a f f i l i a t e s f o r t h e q u a r t e r amounted to JPY 93.5 billion (USD 1,006 million), an increase of JPY 392.2 billion from the same period in 2009.21

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Equity in income of affiliates amounted to JPY 23.8 billion (USD 257 million) for the quarter, an increase of JPY 21.1 billion from the corresponding period last year. Fiscal Year Results Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal year ended March 31, 2010 totaled JPY 268.4 billion (USD 2,885 million), an increase of 95.9%from the previous fiscal year. Basic net income attributable to Honda Motor Co., Ltd. Per common share for the period amounted to JPY 147.91 (USD 1.59), an increase of JPY 72.41from the previous fiscal year. Conso lidated revenue for the period amounted to JPY 8,579.1 billion (USD 92,210 million), ad e c r e a s e o f 1 4 . 3 % f r o m t h e p r e v i o u s f i s c a l y e a r , p r i m a r i l y d u e t o u n f a v o r a b l e c u r r e n c y translation effects and decreased revenue in the automobile business. Honda estimates that had the exchange rate remained the same as the previous fiscal year, revenue for the period would have decreased by approximately 7.5%. Consolidated operating income for the period totaled JPY 363.7 billion (USD 3,910 million),ani n c r e a s e o f 9 1 . 8 % , d u e p r i m a r i l y t o d e c r e a s e d S G & A e x p e n s e s a n d R & D e x p e n s e s a n d continuing cost reduction efforts, despite decreased profit attributable to decreased revenue ,the unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of reduced production.Consolidated income before income taxes and equity in income of affiliates for the period totaledJPY 336.1 billion (USD 3,613 million), an increase of 107.9% from the previous fiscal year.Equity in income of affiliates amounted to JPY 93.2 billion (USD 1,003 million) for the period, adecrease of 5.8% from the previous fiscal year.22 Racing Honda has always played an important role in motor sports, believing it to be the springboard for technological advancement.It has also been an aggressive force in the endurance, motocross and trial races held around thew o r l d . We, at Honda, are not allowing this momentum to let up, a s w e p u r s u e e v e n g r e a t e r achievements. 42

Honda has always loved racing, ever since Sochiro Honda took his company into motorcycle c o m p e t i t i o n , s o m e t i m e i n t h e 1 9 5 0 s . H o n d a s e n g i n e e r s h a v e t e s t e d t h e m s e l v e s o n t h e inte rnational stage, proving their technology to be the best in the world. These technologies arretested in the extreme conditions of motorcycle racing, to adapt them f or use in vehicles that plyon roads today. In the past, Honda has powered some of the all time great racers, including Redman, Hail wood,Spencer, Gardner, Capirossi and Doohan, to 39 riders t itles. Even today, some of the greatestmotorcycle racers, like Alex Baros, Max Biaggi, Nicky Ha yden ride on Honda bikes, at the races. Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-roadraces Michael Doohan riding Repsol Honda's NSR 500. Technologies like these are not just for the race tracks, but are also incorporated in our everyday vehicles. They are first tested, refined and proven under the trying conditions in the races, and then finally adapted in the vehicles, so that two wheelers like Activa and Dio can utilise and benefit from such technologies

ANVITA HONDA COMPANY PROFILE Anvita Honda in Benz Circle, Vijayawada Anvita Honda in Vijayawada. Motorcycle Dealers-Honda with Address, Contact Number, Photos, Maps. View Anvita Honda, Vijayawada on Justdial. Location and Overview: Dealer of Honda two-wheelers, Anvita Honda in Benz Circle was established in 2017. Since then it has been making a mark through its praiseworthy service to the citizens. Running under the flagship of the distinguished Honda Motor Company, it has been able to maintain the high prestige that the brand carries. 43

Making available something for all budget types and tastes, the showroom ensures to meet the needs of different categories of buyers. Offering one of the best pre-sales and post-sales service, it truly has carved a niche for itself in the automotive market. Located in one of the prime locales, the premises can be easily accessed owing to its position near MG Road, an important landmark of the area. The dense road network and the easy availability of local transportations make travelling to and fro a piece of cake for the visitors of this showroom.

Services Offered: Anvita Honda in Vijayawada boasts of an industrial infrastructure with state-of-the-art facilities, perfect for modern-day customers. The ample space that it owns has been practically used so that more number of models can be accommodated under its roof thus enabling clients to enjoy ready access to them on their visit. Scooters, motorcycles and superbikes are the three broad categories that the company deals into featuring top models such as Honda, Honda Unicorn and so on. There are separate sections for each categories of two-wheelers that makes it convenient for the visitors as they can quickly find what they are looking for Accessibility to so many different varieties under a single roof leaves a wide option for the potential buyers. A knowledgeable team is available to help visitors understand the features and functionalities of the vehicles as also provide any kind of information related to the prices, best offers and anything that is important. Not only that, there is a team of highly qualified service engineers and mechanics too who ensure to carry out any sort of repair and maintenance work as is needed post sales of products.Citizens can walk into the showroom anytime between 09:00undefined - 19:30-undefined, during which this two-wheeler shop remains fully functional. You can fix visits by directly calling on the numbers: +(91)-9908312922.

44

List of Honda motorcycles

Honda Motorcycles logo Engine size (cc)

Name

Beat (FC50)

48

Super Cub C100, CA100, C102, C50, Sports C110, C111. C110D, C114

49

CB50

49

45

Engine size (cc)

Name

Dio

49

Elite E (SB50)

49

Elsinore (MR50)

49

Express (NC50)

49

Hunter Cub (CT50)

49

MB5, MB50

49

Melody NB50, ND50, NP50, NS50

49

Metropolitan Jazz (CHF 50)

49

Metropolitan II (CHF50P)

49

Motra (CT50)

49

MT5, MT50

49

46

Engine size (cc)

Name

NCZ50 also known as Motocompo

49

Spree (NQ50)

49

Mini Trail (Z50A)

49

Mini Trail (Z50M)

49

Mini Trail (Z50R)

49

Mini Trail (Z50J)

49

Moped (P50, P25)

49

Moped (PA50/Hobbit/Camino)

49

Moped (PF50/Amigo)

49

Moped (PC50, PS50)

49

Moped (SFX50)

49

47

Engine size (cc)

Name

Moped (SH50)

49

Moped (X8RS)

49

SGX50 (Sky)

49

SS50

49

Trail 50 (C100H, C100T, CA100T)

49

XR50R

49

ZB50

49

Zoomer/Ruckus (NPS50)

49

AC15

50

Super Cub C105, CD105, Honda C115 Sports

54

Trail 55 (C105H, C105T, CA105T)

54

48

Engine size (cc)

Name

Super Cub C65, S65

63

C70 Passport, CD70

72

Motosport (SL70)

72

Motosport (XL70)

72

ST70, CT70 Trail 70

72

Scrambler (CL70)

72

XL80

79

Aero 80 (NH80)

80

XR80

80

CR85R Expert

85

Super Cub C90 (12 volt)

86

49

Engine size (cc)

Name

Super Cub CM90, Honda Trail 90 C200

87

Trail 90 (CT200)

87

Super Cub CM91, C90 (6 volt), CD90

89

Trail 90 (CT90)

89

S90 CS90, Sport 90, Super 90

90

Super Cub C100EX

97

Astrea Prima (C100EX)

97

Astrea Grand, Astrea Impressa, Dream 100, Astrea Legenda (C100EX)

97

Astrea Supra 100 Series (C100EX)

97

SupraFit, FitX, Wave 100(NF100)

97

Revo 100 (NF100)

97

50

Engine size (cc)

Name

Bravo

100

Scrambler (CL100)

100

H100S Super

100

Bali also known as SJ 100

100

Dio/Lead

102

Trail 110 (CT110)

105

GL-100 ASIA

105

Activa

109/125

51

CHAPTER-4 ANALYSISAND INTERPRETATION 52

EMI CALCULATION LOAN

200000

TENURE

1.5 YEAR

NO.OF PAYMENTS

18

RATE OF INTEREST

12%

MONTHLY PAYMENTS

0.01

INR (12,196.41)

MONTHLY PAYMENT STATEMENT NO.OF PAYMENTS

EMI

INTEREST PRINCIPAL BALANCE

0

200000

1

12196.41

2000

2

12196.41 1898.036 10298.374 179505.2

3

12196.41 1795.052

12196.4 167308.8

4

12196.41 1673.088

12196.4 155112.4

5

12196.41 1551.124

12196.4

6

12196.41

7

12196.41 1321.488 10874.922 121273.8

8

12196.41 1212.738 10983.672 110290.2

9

12196.41 1102.902 11093.508 99196.66

10

12196.41 991.9666 11204.443 87992.22

11

12196.41 879.9222 11316.488 76675.73

1429.16

53

10196.41 189803.6

142916

10767.25 132148.8

12

12196.41 766.7573 11429.653 65246.08

13

12196.41 652.4608 11543.949 53702.13

14

12196.41 537.0213 11659.389 42042.74

15

12196.41 420.4274 11775.983 30266.76

16

12196.41 302.6676 11893.742 18373.02

17

12196.41 183.7302

18

12196.41 63.60337 12132.807

12012.68 6360.337 0

Advantages of Using Bike Loan EMI Calculator: The benefits of using an EMI calculator are plenty. Let's explore some of the most prominent ones. Helps in knowing the EMI value: The primary use of this tool is to know the precise amount you will be paying every month. Getting the numbers beforehand helps in sorting your monthly budget. It eliminates the need for manual calculations and ensures accurate results. Aids in choosing the term: Once you have a definite EMI amount, it becomes a lot easier to choose the tenure of the loan. If you feel the value is a burden on your wallet, a higher tenure will do the trick by proportionately bringing down the value. Helps in comparison: 54

If you’ve been offered loan from two or more banks for the motorcycle purchase, using this tool to compare the costs involved will do the trick by helping you choose the most suitable loan offer. Get the quote, use the calculator and jot down the outcome to compare on specific parameters. Helps in negotiating: Once you’re armed with the basics of the financials involved, it helps in negotiating key terms of the two-wheeler loan with the bank. Components such as rate of interest, processing fee and others can be easily negotiated after establishing the ground. Provides a break up of costs: This free-to-use tool not only provides the EMI value but also offers useful information such as the breakup of the charges involved in the loan such as interest and processing fee. ELIGIBILITY CRITERIA FOR TWO WHEELER EMI Owning our own vehicle, be it a car or a bike is a luxury for most Indians. Most of us feel it is a necessity to own a two wheeler at least in order to improve our lifestyle. Most of us are also not fortunate enough to have a large sum of money at our disposal. The best option, many of us find, is to get a two wheeler loan so we can finance that dream bike.

55

Two wheeler loan Eligibility Criteria

Particulars

Eligibility Criteria

Age

18 or 21 years to 65 years

Employment status

Salaried or self-employed

Preferred credit score

750 and above

Employment tenure

At least 6 months in the same job

Minimum income

Pretty low

56

Residential stability

Permanent telephone number



Applicant should be residing in the same space to Show residential stability

Required

Employment: You must either be employed by a company (salaried), or be self-employed.



Age: Many banks offer bike loans to those who are 18 years or older. Many accept applications from only those who are 21 and above. The maximum age limit to apply for a bike loan is generally 65 years, but this may also vary depending on the bank.



Work experience: It is true that many banks offer bike loans to even students (under certain conditions), but most banks give preference to those who have a minimum of one year of work experience.



Minimum income: Different banks have different expectations when it comes to the minimum monthly income that is required of you that will make you eligible for a loan. In general, a minimum of Rs. 5000 per month 57

is the required income that will make you eligible for a bike loan from most banks. 

Landline number: It is often necessary in most banks that you provide a landline number of either your residence or office.



Residence: Some banks will require that you have been living at the same residence for over a year.



Credit History: A good credit score will make it easier for you to get a good deal on your two wheeler loan. Try to maintain a good credit history in order to get the best deal possible. Even if your credit history is not in the best shape, chances are that you will still be approved a two wheeler loan, but the terms will not be as great as it would be if you have a good credit history. Sometimes, even the issue of a bad CIBIL score can be skirted with when taking a bike loan because it comes under the category of a secured loan, your bike being the security.



Documents needed: There is a list of documents that you will require to provide to the bank when you apply for a bike loan. This list may vary slightly depending on the bank, but in general these are the documents that you must keep ready: 1. Address proof: You must provide any address proof which prove that your current address is what you claim it to be. Some of the address proof that you could provide are your Passport, Driver's License with the current address printed, Voter's ID, Utility bill (electricity/landline bills) or rent agreements. 2. ID Proof: a document that proves your identity such as Passport, Pan card, Driver's license, Voter's ID card.

58

3. Income proof: One of the criteria that the bank will need you to meet is the minimum income that you earn per month. You must provide proof in the form of salary slips of the last 3 months, Latest form 16, Bank Statement reflecting salary credits for the last 3 months and last employer's salary certificates. 4. Photographs: You will need to provide a number of recent passport size photographs.

Two-Wheeler Loan EMIs Per Rs.25,000 for Top Banks in India In the table given below, we can see the lowest two-wheeler interest rates and the lowest EMIs of top banks in the country that provide twowheeler loans. We will be assuming that a processing fee of 2% will be charged on these loans. The processing fee can change from lender to lender. We have also assumed that the maximum tenure for these loans ranges from 2 to 5 years. This can differ from lender to lender. Let us also presume that the applicant is not interested in prepaying the loan. Name of bank

Lowest EMI (in Rs.)

State Bank of India (SBI)

551

HDFC Bank

514

Punjab National Bank (PNB)

829

59

Name of bank

Lowest EMI (in Rs.)

Andhra Bank

535

UCO Bank

554

Allahabad Bank

552

Oriental Bank of Commerce

809

Bank of India

518

Lakshmi Vilas Bank

559

Nainital Bank

1,143

City Union Bank

588

Corporation Bank

559

Saurashtra Gramin Bank

595

Syndicate Bank

538

Punjab & Sind Bank

536

Central Bank of India

515

60

Example: Let us now take a look at a simple example to comprehend how the BankBazaar two-wheeler loan EMI calculator works. We will assume that the rate of interest for a particular two-wheeler loan is 11.10% with a processing fee of 2%, which cannot be refunded and which will be taken for the entire two-wheeler loan amount. Let us also assume that the borrower does not want to make any prepayments. The table given below shows the various EMI amounts for multiple loan amounts and tenures: Loan amount (Rs.)

Interest rate (Mean)

Processing Fee (Rs.)

EMI for 2 years (Rs.)

EMI for 3 ye (Rs.)

50,000

11.10%

2%

2,333

1,639

1 Lakh

11.10%

2%

4,665

3,279

2 Lakh

11.10%

2%

9,331

6,557

3 Lakh

11.10%

2%

3,817

9,836

4 Lakh

11.10%

2%

18,662

13,114

METHODOLOGY AND SAMPLING METHODOLOGY: The study is conducted basing on Primary and Secondary Data Primary data is collected by administering a structured questionnaire to customers who visit the dealer for purchase and service. Data is also collected through personal discussions with the dealer, sales and service staff and personal observation made during sale and service. 61

Secondary data is obtained from company records, web site, published articles etc.

SAMPLING: Convenient Sampling method is adopted for selecting the respondents. Care is taken to cover customers of all types of Vehicles and age groups etc

HONDA EMI CALCULATOR EMI Calculator Outstanding Principle

50000

Interest Rate (%)

10

Tenure (in Months)

20

Rs.

%

Years Months

Monthly Payment(EMI) Rs. 2,724 Total Interest Payable Rs. 4,490 Total of Payments (Principal + Interest) Rs. 54,490 62

7.EMI MONTHLY BREAKUP.

EMI Monthly Breakup Month-Year

Principal(A)

Interest(B)

Nov-2018

Rs. 2,308

Rs. 417

Dec-2018

Rs. 2,327

Rs. 397

Jan-2019

Rs. 2,346

Rs. 378

Feb-2019

Rs. 2,366

Rs. 358

Mar-2019

Rs. 2,386

Rs. 339

Apr-2019

Rs. 2,406

Rs. 319

May-2019

Rs. 2,426

Rs. 299

63

Month-Year

Principal(A)

Interest(B)

Jun-2019

Rs. 2,446

Rs. 279

Jul-2019

Rs. 2,466

Rs. 258

Aug-2019

Rs. 2,487

Rs. 238

Sep-2019

Rs. 2,508

Rs. 217

Oct-2019

Rs. 2,528

Rs. 196

Nov-2019

Rs. 2,549

Rs. 175

Dec-2019

Rs. 2,571

Rs. 154

Jan-2020

Rs. 2,592

Rs. 132

Feb-2020

Rs. 2,614

Rs. 111

Mar-2020

Rs. 2,636

Rs. 89

64

Month-Year

Principal(A)

Interest(B)

Apr-2020

Rs. 2,658

Rs. 67

May-2020

Rs. 2,680

Rs. 45

Jun-2020

Rs. 2,702

Rs. 23

CHAPTER-5 SUMMARY,SUGGESTIONS AND CONCLUSIONS 65

SUMMARY, SUGGESTIONS CONCLUSIONS

The project is done at (ANVITA HONDA VIJAYAWADA.) 

to study the financial position by using the techniques of financial statement analysis by using Ratios

The liabilities of the (ANVITA HONDA VIJAYAWADA.) 

are moving at a constant rate but the assets are fluctuating.

At an overall glance, by analysing the trends in working capital, income levels etc., it is understood that the (ANVITA HONDA VIJAYAWADA.) 66

present financial position is satisfactory.

SUMMARY Honda is a major player in Two wheeler market. In India almost every second motor cycle soldis from Honda. It is has many award to its credit How strong the brand may be, every organization has to strive to improve customer satisfaction. With increasing competition and customer expe ctations, Customer Satisfaction is the key to success of any organization. Dealers play a very important role in the marketing of any product. Their role is vital mainly in the case of consumer durables in general and automobiles in particular. Unlike majority of consumer durables, automobiles need periodic maintenance. Two wheelers have a peculiar feature as they are used by common man who hardly has any knowledge of the functioning or repairing of the vehicle, dealers’ role is very important. Dealers can enhance or tarnish the image of the company and the product how ever good it may be. The strength of Honda motors is its channel partners, and service availability every where. The findings of the study are summarized below: •Majority of the Honda customers are in the age group of 18 to 25 years. •Majority of them are under graduates. •Honda two wheeler customers are middle class and upper middle class. • Normally a customer uses a Honda vehicle to a maximum period of 10 years •Activa, Unicorn and Shine brands are bread winners to Honda. 67

•Customers buy Honda for its technical features like mileage, easy maintenance,superior technology etc., •Customers buy Honda influenced by their friends. •Customers normally prefer local dealers and service dealers for buying a vehicle. •The dealer at Visakhapatnam Vishnu Honda motors is rated high by the40 customers for service and are not loyal to them for after free services are over •Cost of spares and service is slightly high. SUGGESTIONS Regular availability of all models should be ensured. Efforts have to be taken toensure no stock outs for Activa, Unicorn and Shine. Dealer has to put efforts to improve qualityof after sales service as majority opined that they would not prefer the dealer after free services. Dealer and Company should ensure availability of flagship brand Activa. Due to non availability ,majority of the prospective customers are shifting to other company brands. Customers are suspecting the dealers role in sticking to booking schedule. Efforts to be taken to ensure transparency in booking. Customer feedback system after sale and service would improve the image of the dealer. Dealer has to tie up with banks to provide finance at competitive interest rates. Dealer has to be aggressive in marketing the vehicles as they face a very tough competition from local Honda Dealer i.e., Jupiter Honda Dealer as well as the company has to put all efforts to enhance the image of the brand as well as the leadership

68

BIBLIOGRAPHY

Books Referred:

 I.M. Pandey, “Financial Management”, Vikas Publishing’s house Pvt, Ltd.,  M.Y.Khan – P.K.Jain, “Financial Management”, TaTa Mc Graw-Hill publishers company Ltd.,  Prasanna Chandra, “Financial Management” TaTa Mc Graw-Hill publishers company Ltd.,  R.K.Sharama And Seshi K.Gupta , “Management accounting - Principles and Practices” Kaylan publishers Websites: – http://www.investopedia.com/ – https://www.indiamart.com/ – www.pdfcoke.com

69

Questionnaire NAME GENDER DOB NO.OF DEPENDANTS ADDRESS

1. Educational Qualification 10th or below 10+2 or below Post Graduate and above

Graduate

Others(please specifY

2. Your residence is Owned

Rented

Ancestral/Family

Company Provided PG Accommodation

3. Do you have a vehicle? Yes

No

If Yes, Four wheeler

Two wheeler

Other

None

Is your vehicle Financed Owned 4. Your Occupation

Company Provided

Salaried

Self Employed

Retired

Housewife

Student

NRI(Please specify the country you belong

5. If Salaried, employed with Private Limited

Partnership

Proprietorship 70

Public Limited

Public Sector

Government

Multinational

Mention the type of industry your employed Advertising/market research Construction/real estate Telecom

Textile

Banking

Travel/Tourism

Consumer goods

Internet services

NBFC

Hotel/Restaurant

Finance

Pharmaceuticals

Others

Transport

Entertainment/Media

Insurance

Export/Import

Call centres/BPO/ITES Information Technology

1. If self-employed your firm is Private Limited

Partnership

Proprietorship

Your nature of work in the firm, Broker

Journal

Chartered Accounted Consultant Lawyer Engineer

Landlord

Software Professional

Films/Entertainment professional Manufacturer

Trade/Distributor

Doctor

Financier

Real Estate Agent Please specify company name Designation 2. Are you an account holder in bank? Yes

No

If yes, Current

savings

FD

Demat 71

Retailers/Grocers

Mention the account number If No, 3. Have you availed loan facilities from any bank? Yes

No

If yes, type of loan Car loan

Personal loan

Housing loan

Consumer durable loan

Loan against shares

others (please specify

6. If self-employed your firm is Private Limited

Partnership

Proprietorship

Your nature of work in the firm, Broker

Journal

Chartered Accounted Consultant Lawyer Engineer

Landlord

Software Professional

Films/Entertainment professional Manufacturer

Trade/Distributor

Doctor

Financier

Real Estate Agent Please specify company name Designation 7. Are you an account holder in bank? Yes

No

If yes, Current

savings

FD

Demat 72

Retailers/Grocers

Mention the account number If No, 8. Have you availed loan facilities from any bank? Yes

No

If yes, type of loan Car loan

Personal loan

Housing loan

Consumer durable loan

others (please specify

73

Loan against shares

Mention the loan amount Name of the bank

9. Are you assessed to tax? Yes

No

Your gross yearly income Monthly expense Do you have any other source of income? Yes

No

If yes, please specify Average income per annum

10. Marital status Married

Single

If married, Child 1

age

Child 2

age

Child 3

age

74

Mention the loan amount Name of the bank

4. Are you assessed to tax? Yes

No

Your gross yearly income Monthly expense Do you have any other source of income? Yes

No

If yes, please specify Average income per annum

5. Marital status Married

Single

If married, Child 1

age

Child 2

age

Child 3

age

75

6. If self-employed your firm is Private Limited

Partnership

Proprietorship

Your nature of work in the firm, Broker

Journal

Chartered Accounted Consultant Lawyer Engineer

Landlord

Software Professional

Films/Entertainment professional Manufacturer

Trade/Distributor

Doctor

Financier

Retailers/Grocers

Real Estate Agent Please specify company name Designation 7. Are you an account holder in bank? Yes

No

If yes, Current

savings

FD

Demat

Mention the account number If No, 8. Have you availed loan facilities from any bank? Yes

No

If yes, type of loan Car loan

Personal loan

Housing loan

Consumer durable loan

others (please specify

76

Loan against shares

Mention the loan amount Name of the bank

9. Are you assessed to tax? Yes

No

Your gross yearly income Monthly expense Do you have any other source of income? Yes

No

If yes, please specify Average income per annum

10. Marital status Married

Single

If married, Child 1

age

Child 2

age

Child 3

age

11. If you have an existing policy with any insurance company as life assured, assignee, proposer please mention the details below: Name of the insurer Sum assured

77

Yearly premium amount Policy start date

12. Do you have any existing insurance cover premium paying and/or paid up policies? Yes

No

If yes, mention the company you invested Sum assured Type of policy

13. Which formal inflow channels your bank is used now? □ Western Union □ Money Gram □ Kushiara □ Others (Please specify)……………………………

14. How frequently do you use the following services per month? I never use this service

Less than 1 time

Visiting the bank branch Telephone banking Online banking

78

1 to 3 times

3 to 8 times

8 to 12 times

Over 12 times

15. What online banking operations do you use the most? Visiting branch

Telephone banking

Online banking

Other (mail, ATM, etc.)

Pay bills Consult balance/bank statements Print bank slip or statement Open an account Bank transfer Investments Savings Insurance Loans and Mortgages Contact your bank advisor

16. Do you trust banks that only operate online? Completely Somewhat Dubious Not at all 79

17. Do you trust the security of online banking services? Completely Somewhat Dubious Not at all 18. Do you think that human contact is important for banking relation? Completely Somewhat Unsure Not at all

19.What is the main disadvantages of online banking?

Overall difficulty of using online banking system Lack of assistance Security concerns Limited service (doesn‘t enable all banking operations) Impersonality of the service Dependence on internet service Unreliable No Disadvantages

80

20.What is the main disadvantages of visiting a bank branch? Waiting Distance (proximity problem) Opening times Quality of services No Disadvantages 21.What would encourage you to use more the online banking services? Rewards (discounted fees for certain services) Simpler/clearer service Higher security Phone aid when setting up Free transactions Nothing else, I already often use online banking services

22. What is your option about the customer services after adoption of marketing in banks? i)

Excellent ii) Very Good iii) iv) Average v) Poor

Good

23. Marketing in banking in Gwalior increase in banking business growth of Gwalior? 300

i)

0-25%

ii) 25-50%

iii) 50-75%

301

iv) 75-100%

24. What is the impact of fraud after adoption of marketing in banks? i)

Increase ii) Decrease iii) No change 25. How far marketing helps in personal selling and utility services?

i) ii)

No change iv) Very Good

ii) Average v) Excellent

iii) Good

302

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304

305

306

307

308

309

310

311

312

313

314

315

316

317

318

319

320