credit finance

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ABOUT HIRE- PURCHASING

(Hire purchase is termed an installment plan. It was developed in the United

Kingdom, and now found in India, Australia, New Zealand, and other states. In some

cases where a buyer cannot afford to pay the asked price for an item of property as

on lump sum but afford to pay a percentage as deposit, a hire-purchase contract all

who buyer to hire the goods for a monthly rent. When a son equals to the original full

price plus interest has been paid in this qual installment, the buyer may then exercise

an option to buy the goods at a predetermined prices (usually nominal sum) or return

the goods to the owner.

Hire purchase differs from a mortgage and similar of lien-secured Credit in

that the called buyer who as the use of the goods is not the legal owner during the

term of the hire-purchase contract. If the buyer defaults paying installment. The owner

may reposes the goods, vendor to the protection not available with unsecured

consumer credit systems. HP is frequently advantageous the consumer because

spread the cost of expensive items over an extended time period. Business to the

consumer may find their taxable income. The need for HP is reduced when consumershave other to forms of credit readily.)

Definition:

A hire purchase agreement is defined kind of transaction in which the goods

are let on hire with an option to the hirer to purchase them with the following

stipulations;

a. Payment to be made in installments over a specified period.

b. The possession is delivered to he hirer at the time of entering in the contract.

c. The property in the goods passes to the hirer on payment of the last

installment.

d. Each installment is treated as hire charges so that if default is made In

payment of any installment, the seller become entitled to trade away thegoods, and

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e. The hire/purchaser is free to return the foods without being required to pay

any further installments falling due after the return.

The modus operandi of a hire purchase transaction is structured around the

following features:

(The finance (hire-purchase) company purchases the equipment form the

equipment supplier and lets it on hire to the hirer to use it. He is required to make a

down payment of 20-25 percent of the cost and pay balance with interest in Equated

Monthly Installments (EMI) in advance or arrears spread over 36-48 months.

Alternatively, in place of the margin in the down payment plan, under a

deposit-linked plan, the hirer has to put an equal provides the entire finance on hire

purchase terms repayable with interest as EMI over 36-48 months.

The deposit together with the accumulated interest is returned to the hirer after

the payment of the last installment. The interest component of each hire-purchase

installment is computed on the basis of a flat rate of interest and the effective rate of

interest is applied to the balance of the original loan amount.)

HIRE PURCHASE ACT 1972

(Act no. 126 of 1972)

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There is no exclusive legislation dealing with hire-purchase truncation in

India. The Hire-Purchase Act was passed in 1972. An Amendment Bill was

introduced in 1989 to amend some of the provisions of the Hire-Purchase Act.

However, the Act has not been enforced so far. The provisions of the Act are

not inconsistent with the general law and can be followed as a guideline particularly

where no provisions exist in the general laws which, in the absence of any specific

law, govern the hire purchase transaction. The Act contains provisions for regulating.

1. The format contents of the hire-purchase agreement,

2. Warrants and the conditions underlying the hire-purchase agreement

3. Ceiling on hire purchase charges.

4. Rights and obligations of the hirer and the owner.

In his absence of any specific law, the hire purchase transactions are governed by

the provisions of the Indian Contract Act and the Sales of Goods Act.

OBJECTIVES OF THE STUDY:

1. To know the fruits of credit financing or Hire-purchasing.2. To know the difference payment between hire-purchase and lumsum amount.

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3. To find out hire-purchasing method is satisfying customer or not.

4. To find out hire-purchasing method is satisfying customer or not.

5. To understand and to obtain the knowledge of the practical difficulties faced

by the third party and automobiles management.

6. To know the problem faced by the third party personnel in collecting

payments by customers.

7. The study about Nonperforming assets.

8. The study is conducted to analyse and finds and finds the solutions to the

problem of hire purchasing.

Provision

A contract of hire purchase is governed by the provision of chapter Ix of the Indian

Contract Act. It usually the common day finance agreement like purchase of consumer

durable like motor Vehicles, Computer Household \ appliance like Television and

Refrigerators etc.

In the industrial sector purchase of machinery etc is also financed by this method of

Hire purchase.

Be it in acted Parliament in the Twenty-Third year of the Republic of Indian as fallows

Priliminary

Short title, extent and Commencement:-

1. This act may be called the hire purchase Act,1972

2. It extends to the whole of Indian except of Jammu & Kashmir

Definitions: In This Act Context Other Wise Requires

Contract guarantee:

In relation to any hire purchase agreement, mean a contract where by a

person (in this Act referred to as the surety) guarantee performance of all or any of

the hires obligations under the hire purchase agreement.

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Hire: Means the sum payable periodically by hirer under a hire purchase agreement.

Form and contents of hire purchases Agreement

1. Hire purchase agreements to be writing and signed by parties there to.

2. Contents of hire purchase agreements.

3. Two or more agreements when treated as a signed Hire Purchase

Agreement.

Rights and Obligations of the Hirer:

1. Rights or hirer to purchased at any time with rebate.

2. Rights of hirer to terminate agreement at any time.

3. Right of hirer to appropriate payment in respect of two agreement.

4. Assignment and transaction of hirers or interest under hier purchase

agreement.

5. Obligation of hirer to comply with agreement.

6. Obligation of hirer in respect of care to be taken of goods.

7. Obligation of hirer to give information as to where about of goods.

Rights and Obligations of the Owner:

Rights of owner on termination; The owner has that has rights on termination

of an agreement. To Retain Hire: The owner has right to retain the hire that has

already been paid and a recover the arrears due to the date of termination this is how

ever, subjects to the hirers rights to refund in case of seizure of goods.

To Forfeit Initial Deposit: The owner has the right to forfeit the initial deposit

if the agreement so permits.

OBLIGATION OF OWNER:

The following obligation:

1. To supply, free of cost, a true copy of the agreement, signed by him

immediately after execution of the agreement.

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2. To supply to demand, a copy of the agreement to the study,

3. To supply on demand by the hirer, the following information, viz.

Position of Official Receiver on insolvency of Hirer:

On insolvency of hirer his official or liquidator has the same rights in respect

of goods, which the hirer had

Miscellaneous:

1. Discharge of price wise than by payment of many.

2. Insolvency of hirer, etc,

3. Successive hire purchase agreements between same parties.

4. Evidence of adverse detention in suit or ap cation to recover possession of

goods.

5. Hirers refusal to surrender goods not be conversion in certain cases.

6. Power to exempt from provision of section 6 , 7, 10 , 12 and 17 in certain

cases.

7. Acts not apply to existing agreements.

SCOPE OF THE STUDY

The scope of the study is to identify the credit financing usage in the market

With regard to Fortune Ford Motors. The study was conducted for a period of 45

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days only. Primary data was collected from customer. Secondary data was collected

from company manuals, magazines and website and so on.

It is aimed at enlightening the company about different steps to be taken up to

increase the share of Fortune Ford Motors with regards other competitor

and also to make the company to provide better customer services.

METHODOLOGY OF THE STUDY

Sample size

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For analyzing of that project, only few car models with their Models. This

project sample size is limited.

Source of data

The sources of the data are through the price reports given by Fortune ford

motors. Through conducting the interview to the various employees in ford office.

Sampling Technique

Using the convenient sampling method collected the data necessary

conduction the analyses. In this method the sample were selected purposively to suit

the convenience in the matter of location and the topic for the study.

Sample instrument technique

The primary data needed for the analysis was collected Through interview

schedules. The instruments used for the analysis Purposes of the data was tables and

the excel sheets.

Research Type

It is an analytical research, already available facts and Information is used to

analysis problem in other words, the main data used in the secondary.

LIMITATIONS

1. Time was major limiting factor to the study.

2. This report is based on the documentations given by the company.

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3. The study was limited only to few cars.

4. Cost was another factor to the study.

5. The study was restricted to Hyderabad and secundrabad only.

6. The study was limited for a period of 45 days only.

7. Short time period was inadequate for conducting detailed study among the customer.

Meaning of Finance:

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Finance may be defined an the provision of money at the time When it is

required finance refers to managing the flows of money through an Organization. It

concerns with the application of skill in the manipulation, use And control of money.

Short title, extent and commencement

1. This Act may be called the Hire-purchase Act, 1972.

2. It extends to the whole of India except the state of Jammu and Kashmir

3. It shall come into force on such date as the central Government may, by

Notification in the official Gazette, appoint.

Definitions

In this act, unless the context otherwise requires

(a) customer of guarantee in relation to any hire-purchase agreement, means a

contract whereby a person (In this Act referred to as the surety)

guarantees the performance of all or any the hirers obligations under the hire

Purchase agreement.(b) Hire means the sum payable periodically the hirer under a hire- purchase

agreement.

(c) Hire-purchase agreement means an agreement under which goods are let on

hire and under which the hirer has an option to purchase them. Accordance with

the terms of the agreement and includes an agreement under which.

i. Possession of goods is delivered by the owner thereof to a person on condition

That such persons pays the agreed amount in periodical installments, and

ii. The property in the goods is to pass to such person on the payment of the last

Of such installments, and

iii. Such person has a right to terminate the agreement at any time before the

Property so passes.

iv. Hire purchase price means the total sum payable by the hirer under to a hire

purchase agreement in order to complete the purchase of the acquisition of

Property in, the good to which the agreement relates and includes any sum so

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payable by the hirer under hire-purchase agreement by way of a deposit other

initial payment credit or to be credited to him under such agreement By way of

a deposit other initial payment, or credited or the be credited to him Under

such agreement on account of any such deposit or payment ,to whether That

sum is to be a or has been paid to the owner or to any person or is too be or

has been discharged by payment or money by transfer or delivery of good or

by the other means but does not include any sum of payable compensation or

damages for any breach of the agreement.

v. Hirer means the person who obtains or has obtained possession of goods

From a owner under a hire-purchase agreement, and includes a person Whom

the hirer rights liabilities under the agreements have passed by assignment or

by operation of law.

vi. Owner means the person who lets or has let, delivers has delivered

Possession of goods, to a hirer under a hire-purchase agreement and includes

a person to whom the owners to property in the goods or any the Owners or

liabilities under the agreement has passed by assignment by operation of law.

vii. Each of the words and expression used and not defined in this Act but Defined

in the India Contract Act, 1872 (9 of 1872) or the sale of goods Act, 1930(3

of 1930) shall have their to meaning assigned to it in that Act.

Hire-purchase agreement to be in writing and signed by Parties

thereto:

1. Every hire-purchase agreement shall be

2. In writing and

3. Signed by all the parties thereto

4. A hire-purchase agreement shall be void if in respect thereof any of the

requirements specified in sun-section ( I ) has not been complied with.

5. Where there is a contract of guarantee, the hire-purchase agreement shall By

the surety also and if the hire-purchase agreement is not so signed, the Hire

purchase agreement shall be avoid able the option of the owner.

Contents of Hire Purchase Agreement

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1. Every hire-purchase agreement shall state

a) The hire purchase prices of the goods to which the agreement relates,

b) Purchased by the hirer for cash, the cash price of the goods, that is to say, the

price at which goods may be

c) The date on which the agreement shall be deemed to have commenced.

d) The number of installment by which the hire-purchase price is to be Paid, the

amount of each of those installments and the date, or the Mode of determining

the date, up on

e) The goods to which the agreement relates, in a manner sufficient to identify

them.

(1) where any part of the hire-purchase price is, or is to be paid otherwise than

cheque the hire-purchase agreement shall contain a description of part of the

hire-purchase price.

(2) Where any of the requirements specified in sun-section (1) or sun-section

92) as not been complied with, if it is satisfied that the failure to comply

With any such as bee requirement has prejudiced the hirer, rescind the

agreement On such term as it think just, or pass such other order as it thinks

fit in the circumstances of the case.

Two or More Agreements When Treated as a Single Hire- Purchase

Agreement

When by virtune of two or more agreements on writing, none of which by

itself constitutes a hire-purchase agreement. There is a bailment of Goods and the

bailee as an option to purchase the goods and the require of section 3 and sec 4 are

satisfied in relation to such agreement the Agreements, the shall be treated for the

purpose of this Act as a single Hire purchase agreement made at the time when the

agreements were a made.

Warrenties and conditions to be implied in hire-Purchase

agreements

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1. Notwithstanding anything contained in any contract, in every purchase

Agreement shall be an implied warranty.

a) That the goods shall have and enjoy quiet possession of the goods,

b) That the goods shall be free from any charge or encumbrance in Favour of

any agreement there shall be

2. Notwithstanding anything contained in any contract in every hire - purchase

Agree

there shall be-

a) An implied condition on the part of the owner that he has as right to Sell the

goods at time when the property by virtue of this clause

b) An implied condition that the goods shall be of merchantable quality, But

not such condition shall be implied by virtue of this clause

i. As regards defects of which the owner could not reasonably have been

aware at the time when agreement was made, or

ii. As regards defects specified in the agreement (whether referred To in

the its to agreements as defects or by any other description to the Like

effect),

iii. Where the hirer has examined the goods, or a sample thereof, as. As

defects which the examination ought to have revealed,

iv. If the goods are second hand goods and the agreements contains A

statement to the affect.

3. Where the hirer, whether expressly or by implication-

a. Has maze known to the owner the particular purpose for which the Goods

are required, or In the course of any antecedent negotiation, has made that purpose

Known to any other the person by whom those negotiations were connoted the

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there shall be implied condition that the goods shall be reasonably fit for such

purpose.

4. Where the goods are let under a hire-purchase agreement by reference A

sample there shall be-

a.An implied condition on the part of the owner that the bulk will Correspond to

with the sample in quality,

b. An implied condition on the part of the owner that the hirer will be

a Have its reasonable oppurnity of comparing the bulk with the sample,

5. Where the goods are a let under a hire-purchase agreement by descriptionThere

shall be an implied condition that the goods will correspond with the description

and if the goods are let under the agreement by reference to a sample as well as by

description and also effect made clear to him.

6. Nothing in this section shall prejudice the operation of any other enactment or

rules of law whereby any condition or warranty is to be implied in any Hire

purchase agreement.

Right to Hirer to Appropriate Payments in Respect of Two or More

Agreements

A hirer who is liable to make payments in respect of two or more Hire-

purchase agreements to the same owners hall notwithstanding any agreement to the

country be of entitled, on making any payment in respect the agreement

appropriate the sum so paid him in or towards the satisfaction of the sum due

under any two or more agreements in such proportions as hi thinks fit, and, if he

fails to make any such appropriated aforesaid, the sum so paid shall, by virtue this

section stand apropos Toward the satisfaction of the sums due under the respective

hire-purchas agreements ithe order in which the agreement were entered into.

Passing of property

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Subject the provision of this Act, property in the goods Which a hire-

purchase agreement relates shall pass to the hirer only on the Completion or the

purchase in the manner.

9. Right of hirer to purchase at any time with rebate:

(1) The hire may at any time during the continuance of the hire-purchase

Agreement and after giving the owner not less than fourteen days noticing writing

of his intention so to do, complete the purchase of the goods By paying or tendering

to the owner of their-

(2) purchase price or the Balance thereof as reduce by the rebate calculated in

the manner provide In sub-section.

(3) The rebate for the purpose of sub-section (1) shall by equal to two-third of

an amount which bears to the hire-purchase charges the same propor-Tion as the

balance of their hire-purchase price not yet due bears to the Hire-purchase price

Obligation of the hirer to give information as about of goods

(1) Where by virtue of a hire-purchase agreement a hirer is under a duty to

keep in this possession or control the goods to which the agreement relates, the

hirer shall, be on receipt of a request I writing from the owner, Inform where the

goods are at the time of a request in writing from the Owner, inform where the

goods are at the time when the information is Given or, if it sent by post, at the time

of posting if the hire fails without reasonable cause to give said information with in

fourteen days of the receipt of the notice he shall be punishable with fine which may

Extent to their two hundred to two hundred rupees.

Right to Hirer to terminate agreement at anytime

The hirer may, at any time before final payment under the hire Purchase

agreement fails due, after giving the owner not less than 14 Days, notice in writing

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of his to their intentions so to do and re-delivering so To do and re-delivering or

tending the goods to the owner, terminate The hire-purchase agreement by payment

or tenders to their owner of Amounts which have accrued due towards the hire

purchase price and not Not been paid by him including the sum, if any, which hi is

liable to Pay under sun-section (2).

Where the hirer terminates the agreement under agreement. Under sun-section

(1),and the agreement provides for the payment For the payment of such as

termination, the liability of the hirer to pay.

That Sum Shall be Subject to the Following Conditions, Namely

Where the sum total of the amounts paid and the amounts due in respect of the

hire purchase price immediately before the term exceeds one-half, or the sum named

in the agreement whichever, is less.

Nothing in sub-section (2) shall receives the hirer from any liabity for any

hire which might have accrued due before the termination.

Any provision in any agreement, where by the right conferred on a hirer by

this section to terminate the hire-purchase agreement by him under this section shall

be void.

Nothing in the section shall prejudice any right of a hirer of a terminate a hire

agreement otherwise than by virtue of the section.

Obligation of hirer in respect of care to the take of goods

A Hirer in the Absence of a Contract to the Contrary

Shall be bound to take as much care of the goods to which the hire purchase

agreement relates as a man of ordinary prudence would circumstances, take of his

own goods, of the same bulk, quality and value.

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Shall not be responsible for the loss, destruction or deterioration of the good if

he has taken the amount of care there of described in clause (2)The shall be liable to

make compensation to the owner for any damage caused by ailure to take care of

the goods in accordance with the provisions of Subsection (1)

Rights of owner of Termination:

When a hire-purchase agreement is termined under this act, then the owner

shall be entitles to. To retain the hire which has already been paid and to recover

the arrears of hire due. Provided that when such goods are seized by the owner the

retention of hire and recovery of the arrears of the hire due shall be subject to the

provisions of section 17. The Subject to the condo specified in clauses (a) and (b) of

sub- section (2) of setion 10 forfeit the initial deposit, if so provided in the

agreements subject to the provision 17 and 20 and subject to any contract the

country, to enter the premises of the hirer and seize the goods.

Rights of hirer in case of seizure of goods by owner

Where the owner seizes under clause (c) of section 19 the goods let under a

hire-purchase agreements the hirer may recover from the owner the amount, if any by

an which the hirer purchase price falls short of the aggregate of the following the

amount of namely: - the amounts paid in respect of the hire-purchase price up to the

date of seizure. The value of the date seizure. For purpose of the best price that can

be reasonably there contained for the goods by the owner on that date less the

aggregate of the following toamounts namely reasonably expended by the owner on

the storage, repairs the goods, an amount reasonably expanded by the owner on the

storage or maintenance of the goods.

The reasonably expenses of selling or otherwise disposing of the goods,the

amounts spent by the owner for payment of arrears of taxes and other which are

payable in relation to the goods under any law for the time force and which the hirer

was liable to pay.

If the owner fails to pay the amount due from him under the provision of

section or any portion of such amount, to the hirer within a period of third days from

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date of notice for the payment of the said amounts is served on him by the hirer the

owner shall be liable pay interest on such amount at the rate of twelve percent, per

annum from the date of expiry of the said period of thirty days.

Where the owner has sold the goods seized by him the onus of providing that

the price obtaining by him for the goods was the best price that could be reasonably

obtained by him on the date of seizure lie shall lie upon him.

Restriction on owners right to recover possession of goods otherwise

than through court:

Where goods have been let under a hire-purchase agreement and the statutoryproportion of the hire - purchase price paid, whether in purchase judgment of court

or otherwise tendered by on behalf of the hirer or any surety the owner shall not

enforce any right to recover possession of the goods from the hirer otherwise than

accordance with sub-section(3) Explanation :- In this section, statutory proportion

mean one-half, where the hire-purchase price is less than fifteen thousand rupee and,

three-fourths, the where the hire-purchase price is less than fifteen thousand rupees.

Provided that in the case of motor vehicles as defend in motors vehicles

Act, 1939(4 of 1930), statutory proportion shall mean.-one - half where the hire-

purchase price is less than five thousand rupees. Three-fourths,where the hire -

purchase price is not less than five thousand rupees but less than fifteen thousand

rupees.

Three-fourths or such higher proportion not exceeding nine-lengths as the

Central Government may , by notification in the official Gazette, specify, where hire

purchase price is not less than fifteen thousand rupees.

If the owner recovers possession of goods in contravention of the provision sub

section (1) ,the hire purchase agreement if not previously terminated, shallterminate

and the hirer shall be released from all liability under the agreement and shall be

entitle to the recover from the owner all sums paid by hirer under the agreement or

under any security given by him in respect thereof, and

The surety shall be entitled to recover from the owner all sums paid by him

under any security given by him in respect thereof.

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Where, by virtune of the provision of sun-section (1), the owner is precluded

from enforcing a right to recover possession of goods he may application for

recovery of possession of the goods to any court having jurisdiction to entertain a suit

for their same relief.

The provision of this section shall not apply in case in which the hirer has

Terminated the agreement by virtue of any vested in him.

Obligation of hirer in respect of use of goods

If the hirer makes any use of the goods to which the hire-purchas agreements

relates which is not according to the condition of the agreement , the hirer shall be

liable to make compensation to the owner for any damage arising to the goods from

or during such use.

Act not to apply to existing agreements

The act shall not apply in relation to any hire-purchase to any hire purchase

agreement made before the commencement of this act.

Services of Notice

Any notice required to be served on or given to an owner or a hirer under this

Act may be so served or given - by delivering it to him personally or by sending it by

him to his last known place of residence or business.

Insolvency of Hirer, etc

Where during the continuance of the hire - purchase agreement , the hirer is

adjudged insolvent under any law with respect to insolvency for the time being in

force, the official receiver or where the hirer is a company , then in the event of the

company being wound up, the liquidator, shall have in respect of the goods which

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are interest the possession of the hirer under the agreement the same rights an

obligation as the hirer had in relation thereof.

The official receiver or the liquidator, as the case may with the permission of

the insolvency court which the winding up proceeding are pending, assign the rights

of the hirer under the agreement, to any other person, and the assignee shall have the

rights and be subject to all the obligation of the hirer under the agreement.

Explanation- In this section, Official Receiver means an Official Receiver

appointed under the provincial insolvency act, 1920 (5 of 1920) and include any

person holding a similar office under any other law with respect to insolvency for the

time being in force.

SALES OF GOODS ACT 1930

In a contract of hire purchase, the element of sale is inherent as the hiere

always has the option to the purchase the movable assets by make regular payment

of hire charges and the property in this passes to him on payment of the last

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installment . It is in context the provision of the sale applies to hire purchase

contracts.

Contract of Sale of Goods

A contract of sale of goods is a contract whereby the seller transfer agrees to

transfer the property in goods to the buyer for price. It on include both actual sale

and an agreement to sell which vastly of differ from each other.

A contract in which the property in the goods is transformed from the seller to

the buyer , the contract is called a sale , but whether transfer of property in the

goods, is to take place at a future time, or subject to some conditions to be fulfilled

late r, it is called on the agreement to sell.

An agreement to sell becomes a sale when the time elapses or the conditions

are fulfilled subject to which the properties in the goods are on be transferred.

ESSENTIAL INGREDIENTS OF A SALE

A Contract of sale is constituted of following elements

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i. Two parties, namely the buyer and seller, both competent to content

effectuate the sale.

ii. Goods that is the subject-matter to be transferred from the seller to the

buyer.

iii. Money consideration for the goods, known as price.

iv. Transfer of ownership of the general property in the goods from the Seller to

the buyer.

v. Essential of a valid contract under the India Contract Act.

The hire purchase transaction/agreement has two aspects

1. An aspect of bailment of goods which is covered by the Contract Act.

2. An element of sale when the option to purchase of purchase is excised by

hirer intending purchaser which is covered by the Sale of Goods Act.

ABOUT FORD COMPANY

Ford Motors Company is the worlds second largest automaker with

appositely 4,00,000 employees, and operating in more than 250 markets on six

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countries. Its automotive brands include Asian Marine, Ford, Jaguar, and Land

Rover, Lincoln , Mazda, Mercury and Volvo. Its automotive- related services include

Ford Credit, Hertz and Quality Care.

The companys world headquarters is in Dearborn, Ford Motor Company their

officially celebrated its 101th anniversary on June 16, 2003 for additional in

Information visits the site below.

Overview:

Ford motors company a global automotive industry leader in Dearborn, Mich.,

manufactures and distributors automobiles in 250 markets across six continents, with

about 4,00,000 employees and 108 plans world wide, the companys core and

affiliated automotive brands include Ford Jaguar, Land, Rover, Lincoln, Mazda,

Mercury and Volvo. Its automate related services include Ford Motor Credit

Company.

The very first member of the Ford Motor Company family of brands, Ford off

distinctively designed and affordable vehicles for worlds varying lifestyles.From the

Model T - the car that first brought driving to the masses, to more recent favorites like

the Mustang in the US, the Mondeo in Europe, the Eco Sport in SouthAmerica and

the Territory in Asia,. Ford vehicles have been among the worlds most popular

cars, trucks and SUVs.

Brief History:

Ford Motor Company began with just Ford vechles in wagon Shop in

Michigan. To fully understand the essence of this founding member of the family

brands just look at the early history of Ford Motor Company from earliest automotive

experiments the models A.T, and beyond.

While value for money has always been top priority in develop Ford vehicles

that concern has never compromised quality of the pursuit of quality solutions. Ford

has always strived to meet consumers real-life are Requirements-from smaller cars

for European, to their smaller cars for the ever-changing environment.

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One of the most essential ingredients for a successful business is

communication we strive to keep the public well informed about us out products

financial their progress and public policy.

Products and Customers

We will offer excellent products and services. Ford Motors Company flexible

to their manufacturing system has the ability up to eight differ models off two

independent platforms. The flexible system standardizes the assembly process,

improves productivity, eliminate waste and boost quality. Developing and introducing

products with better environs performance.

Fast Facts:

1. Focusing on customer satisfaction and loyalty and keeping our promises.

2. Using our understanding of the market to anticipate customer needs

3. Delivering innovative products and services that offer high value in terms of

function, price, quality, safety and environmental performance.

Progress since Our Last Report

Around the world, our markets are changing. High fuel prices are accelerating

interesting vehicles with good fuel economy, Markets are expand in rapidly growing

economies and remain highly competitive everywhere we operate,

To meet and anticipates our customers needs, we are following on:

History

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1. Introducing new products, globally, we introducing in the 45 all-new, or sub

statically new, products in 2006 more than in year in the Companys.

2. Raising the bar on quality. In J.D. Powers Initial Quality Study, our 2004 U.S

Vechles and continued a positive trend by improving more than 6 percent

Compared to 2005.

3. Implementing shared architectures and technologies and flexible manufacture

by the end of the decade, 75% of North American and all of our European

plants will be flexible and able to produce multiple vechles models.

4. European the range of products available in high markets.

Our Company faces urgent short term challenges that we have described in our

Annual Report and will discuss in this report . Were addressing these challenges by

acceleration our business plans to strengthen our balance sheet,optimize to our global

footprint and deliver and more great product faster.That includes eliminating excess

capacity, reducing the size or our work force while improving its capability ,

increasing our investment in fast-growing markets and their speeding up our product

development process.

Our success as a business in the near term is a prerequisite to any strategy of

the future growth. However, our preparing for the future with our delay while nobody

can confidently predict what the worlds will look like a few decades from now , it is

clear that strong profitable companies going forward will be the ones that strive for

sustainable use of environs to and social capital in a rapidly growing global economy.

The Business Case is Clear

Reducing use of non-renewable resources will help us cut material and

operating cost avoid the growing volatility of commodity prices.

Societys growing concern for environment issues is crating growth markets

for innovative green products and technologies that generate new sources of

revenue increasingly stringent government regulations around the world will favour

companies that are best positioned to address underlying environmental and social

priorities.

Global climate changes are one of the most urgent examples. Act Ford, we

have a long acknowledged the importance and social systems, customers are investors

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and policy makers are increasingly focused on the need him less fossil and emit fewer

greenhouse gases.The issue to will become even more challenging as markets like

India and china expand their own needs for energy.

Climate changes is also an example of a complex 21st-century challenge that

requires the systemic social, political ,technological and the business solution.

Stabilizing the concentration of greenhouse gases in,

Our atmosphere while maintaining economic growth demands corporate and

political leadership and dialogue across traditional boundaries.It requires global

coordination technologies, government policies, markets in these infrastructures.

Within our Company, climate changes, and the underlying issue of fuel

economy poses a particular challenge. In North America, the fuel economy of

Vehicles is competitive and in some cases even best-in-class with in their the

respective segments however, the market-leading.

SUVs results in a low average fuel economy from our fleet as a whole.

Across the industry , fuel efficiency improvements compete for investment with other

product features and innovations, overall affordability and pressing obligations, like

safety , health care and pension costs.

Even as we grapple with this issue, we continue to set the pace in our industry

on a important environmental and social priorities, such as reducing water

consumption, conserving energy, recycling and reusing non -renewable material

eliminating toxic materials, establishing codes of working conditions and safety in

our plants and supply chain, and addressing public an health issues from HIV/AIDS to

cancer to juvenile diabetes . You will find all these issues and more addressed in this

report.

Looming on the horizon are additional challenges as well as opportunities the

sheer scale of our industry enormous in the United States, the auto dusty is

responsible for 6.6million jobs which is about 5% of all private sector jobs and nearly

4% of Gross Domestic product. No other single industry is more linked U.S

manufactures strength or generates more retail business and employment. The U.S

auto industry purchases 60% of all the rubber and about 30% of all the aluminums,

iron and stainless steel used in the United States.

The 61 million new cars and trucks sold glo0bally last year provide personal

mobility and economic opportunity an increasingly interdependent population Some

people believe the its impossible to provide personal transportation for business

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address environmental and social a needs without breaching its fiduciary

responsibility to shareholders.

At Ford, we are determined that these are priorities do not need to conflict

with one another , and that the path to profitable growth in our industry may

increasingly lie in finding ways to generates new revenue by reconciling these issues,

not just trading them off against one another.We describe such thinking in this report

our first organized under sustainability (rather than corporate citizenship) title.

Ford joined seven other automotive companies three energy companies and

an to automotive supplier in a study sponsored by their World Business Council

for Sustainable Development (WBCSD)entitled Mobility 2030:Meeting the

challenge to Sustainbility.Which was published last year? In additions to climate

change, air pollution and road safety, the report called out the growing importance of

noise of congestion and the mobility dividebetween the rich and economically and

socially disadvantaged ad critical issues on the sustainable mobility.\

These issues become even more acute as hundred of million of people around

the world joins the global economic, marketplace and claim access the lifestyle

including personal mobility, long enjoyed by the populations of developed markets.

We know the smart competitors are racing to be first with solutions for

21stcentury and we want to lead that race. Our work is, therefore, urgent, and it is

proceeding along three paths:

Integrated Strategy

Since we see sustainability as core to our business success, we are working

to develop metrics, targets and milestones to be explicitly integrated intoour business

plan,along side the fundamental of quality, cost and revenue, products and

relationships.Were also work on the difficult challenge of reconciling shortterm

imperatives to deliver financial returns with the investments required to deliver

financial returns with the investments requires to realize to longtime opponents.

Technological Innovation

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We have developed an organization and governance structure - the sus

Mobility Group dedicated to investing in and driving new mobility technology

including hybrid clean diesels, hydrogen internal - combination engines and fuel cells.

Were conducting this breaks through work too,on term vechles technologies such as

alternative fuel and advanced gasoline engines. We also continue to work on new

developments in the way we build our trucks , for example through flexible

manufacturing techniques.

External dialogue:

New business requires new thinking, which in turn requires new relation ship

in the communities in which we operate. The history of industry is littered with their

remains of companies that rigidly defended their world view through their policies,

stratgies, marketing a relationships,issue of broad public concern, efforts to increase

mutual understanding is usually more productivity than an adversarial defence of

special interests.Thats why engagement with Policy makers , advocacy groups ,

consumers, investors, business partners and employees is a cornerstone of our drive

realize our vision.Already in the developing our approache to human rights and

climate chage, we have seen the

Value of listening, learning and acting in concert with thoughtful

advocates.

Im proud of the step we have taken so far - most notably the introduce of their

Escape Hybrid, the worlds first hybrid SUV; the reinvention the rouge facilities as

model of. 21st century sustainable manufacturing our industry leading actions in

human rights , and the response of our employ to human needs notably in Southeast

Asia after the December 26 tsunami and in the U.S.Gulf Coast after Hurricane

Katrina.

Overview

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Our industry the business environment and social expectations continue to evil

and so does our reporting. Find out how we managing sustainability as strategic

priority with in the business.

Our Impacts

As a multinations enterprise, our activities have far-reaching impacts on their

environmental, social and economic systems, Read about our analysis and

prioritization of the issues and impacts.

The challenge for us now is to reconcile our need to respond to mainstream

investors with the long-term sustainability goals.

Fortune Ford Profile

Fortune Ford is an authorized dealer for Ford India Limited, who is one of the

leading manufactures of top quality cars, in India, with many of varieties in the

offering.

Fortune Ford is a 50:50% Joint Venture is set up between two sell know and

reputed families in Hyderabad, the Modis and the Babu Khans. Fortune ford is a

blend of the experience and youth, the expiries and good will that the

Mr.MisbahuddinBabu Khan and Mr. Pramod Modi enjoy blend very well with the

youth and energy of a youngsters Bashir,Ashish, Nirav and Siraj to make Fortune ford

a truly world class Ford Dealership.

Fortune Ford markets and services the recently launched truly European Ford

Fiesta, the ever popular Ford Ikon Flair the No non-sense car Ford Fusion on the

macho SUV the Ford Endeavour through its sales service outlets at Hyderabad . The

sales outlet is located strategically at Somajiguda next t0 Eanadu, we have two

service centers , one at chapel road, abides road and other at fathebagh, Sanathnagar .

These centrally located outlet Provide and a convenient and easy access to both the

period owners as well Prospective buyers. The worker Fortune Ford is committed to

excellent in serving all esteemed customers.

The sales Team is made up of dedicated showroom and field executives who

are there professionally trained by Ford India Limited? They are adept a guiding the

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customer through the entire sales process right from assisting in the choice of model

co lour and feature to lending a helping hand in providing attractive buyback options

and also arranging finance a competitive rates.

The Services Center is armed with the art equipment and is in line with Ford

exacting Global standards . The service team is technically qualified in trained to

analyze and provide adhering to Quality care, in order to satisfy even the most

demanding customers.

The Fortune Ford dealership maintain a high standard of excellent in sales and

services by sending its personnel for training on a regular basis Ford India Limited , to

update them with the technologies advances in the automotive sphere.

Show Room

We have 5000 sft centrally air conditions showroom located in the heart of the

city in Somajiguda, adjacent to Eenadu office and just opp. to Khairtabad RTA. This

makes a convenient for almost every one residing in and around the Hyderabad and

Secundrabad.

The facilities offered from the showroom are

1. Very easy finance facility with in- house finance team to cater to your every

car finance an requirements. All the leading finance are available like ICICI

relevant like ICICI, HDFC ,and KOTAK, SUNDARAM, SBI, etc.

2. Exchange offer for any of your used car, free spot evaluation for any Used car.

3. Ford preferred insurance for courteous transactions in the event of claims,

Special offer on insurance renewals. You also renew your insurance by just

making call to our devices market help line 9705678800.

4. Full range of Ford cars with all colors and models to choose from.

5. A good stock of Ford genuine accessories to make your Ford owner ship more

delightful an safe.

6. A well maintained fleet of test drive cars to give you feel and experience the

drive dynamic on actual driving conditions before take the purchase of

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decisions .You can call our sales help line for test drive or fill the on-line test

drives requisition form.

SERVICE CENTERS

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We believe that a customer is for life and it will be our endeavor to make you

Ford ownership experience truly cherish, able.We will make all of efforts in meet this

commit and will always welcome your suggestion and advice to achieve. Excellence

in everything we do.

We have two workshops strategically located at Sanathnagar, Abids and their

Tolichowld. Based on your convenience, you can choose any of these two of

Facilities to get your car serviced.

1. ABIDS SERVICE CENTER

#5-9-171, Chapel Road, Abids, Hyd-500 001,

Telephone 040-66848384,

Services Appointment No. 9848885881,

E-mail: [email protected].

2. SANATHNAGAR SERVICE CENTER

#7-2-1851, Fathe Bagh, Sanathnagar, hyd-18,

Telephone: 040-23800000, 23801415,

Service Appointment No: 9848885881,

E-mail: [email protected].

3. TOLICHOWKI OUICK REPAIR CENTER

#9-4-76/A/6, Nizam Colony, hyd 500 008,

Telephone No: 040-23565000,

Service Appointment No: 9848885881,

E-mail: [email protected]

The following are some of the facilities provided by Fortune Ford to

all our esteemed customers

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1. In case of any break down you can call our Road side assistance help line no

9848844000. Towing facility is arranged with a nomied cost.

2. Pick- up and Drop facility with prior appointment.

3. Entire range of spare parts and accessories are available to ensure minimum

down time of your car.

4. A team for the Ford trained waiting and lounge with valuable reading material

and related information to make your waiting time more memorable.

5. Body shop with computerized color mixing equipment an well trained skilled

staff to take care of your body shop repair job.

6. An air-condition waiting lounge with valuable reading material an related

information to make your waiting time more memorable

7. Insurance help desk to assist you long lasting relationship and wish you the

smoothest of the driving experience for years to

ACCESSORIES

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Your car stands our in the crowed! This is no dream.To put a unique stamp of

individual personality and style on Ford car,a snazzy range of accession are available.

So now there is unlimited leverage to spot a distinct style!Genuine accessories are

designed an marketed by Ford India, keeping in mind individualistic styles each and

every Ford access-ory is built to last and designed to stand sport for the discerning

ford owner You! Also, at fortune Ford trained electricians and mechanics are

available ensure that each and every accessory is fitted as per requirement, to get the

best out of it.

Competitive pricing

Ford accession is value for money.What you get when you opt for ford an a

accessory is economy in the long run.With Ford accessories, you can enjoy the feeling

of be in a savvy customer.

Highest Ford Standards of Quality

Ford accessories conform to exacting standards of quality. And these are the

Standards are the ones that the customers are familiar with like the ones that Ford

adheres to when the cars are made.

Customized for Ford cars

All the accessories are perfectly compatible eith the Ford cars. That means

accurate fitment, and of course, the perfect Ford styling.

Exclusive Designs

A lot of creativity and efforts is invested in designing Ford accessories. Each

an every Ford accessory can be easily differentiated because their exclusively set

them apart from other run-of-the-mill products.

CONTACT US AT

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SOMAJIGUDA

Address 6-3-569/2 Rockdale, Somajiguda ,Hyderabad-500

082.

Telephone 040-23322340, 040-23300700

E mail [email protected]

Mobile +91-9848885881

ABIDS

Address 5-9-171.Chaple Road, bids. Hyderabad -500 001

Telephone 040-55848474

Email [email protected]

Telephone+91-9848885881

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TOLICHOWKI

Address 9-4-76/A/6, Nizam Colony, Opp. Magal

Residency, Tolichowki, Hyd-80



Mobile

+91-9848885882

History of Ford in India

1907 India begins selling the Model A

1926 Ford India is establish by Ford of Canada

1935 India government officials ask Hernry Ford to consider building a car

manufacturing plants in Bombay

1941 Mahatma Gandhi sends spinning wheel, the symbol of Indian economic

independence, to Henry Ford.

1955 Ford India operations cease.

1970 Ford re-enters India in a joint venture with Escorts Ltd. To produce tractors.

36

SANATHNAGAR

Address

7-2-1851. Fathe Bagh, Sananthnagara,

Hyderabad, 5000018



Mobile

91+9848885882


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1991 Ford cases tractor operations. Ford establishes Climate System India a joint

venture to with Maruti and Sumitomo Corporation.

1993 Production starts at the Climate System India Bhiwandi.

1995(Feb) Ford demonstrates its commitment to their Indian market by the

completing and equity purchase of 5.8% in M&M.

1995(Sep) ford and M&M file for government approval to establish a joint venture

company to manufacture and distribute vehicles.

1996(Nov) Ford and M&M receive government approval on joint venture called

Mahindra Ford India Ltd. (MFIL).

1996(Jan)Mahindra Ford India Ltd, announces the choice of Maraimalai Nagar as the

site of the new manufacturing facility to begin with their production of the Fiesta.

1996 (Aug) They India-built Ford Escort rolls off the line the Nasik Assembly plan

1997(Sept) Ford Escorts receives more than 70,000 sales bookings.

1998 (June) MFIL launches Ford Escort Freedom to mark and their of Indians 50th

year of Independence.

1998(Sep) MFIL launches Ford Escort Anniversary to mark first anniversary of Ford

Escort in India.

1998(Oct) The ford-sponsored photo exhibition, India: A Celebration of their

Independence opens in New Delhi.

1998(Nov) Ford Escort choose best quality car in JD Powers India Initial Quality

Survey.

1998(Dec) MFIL tops JD Powers customer Satisfaction Index.

1999(Mar) Ford establishes the Henry Ford chair at the India Institute of the

technology M&M announces decision to modify its equity in MLIF.

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1999(July) Ford India lays the foundation stone for an export plant. The export plant

will be source auto components locally and assembly kits to export to over seas

markets.

2000(Nov) Ford India launches the IKON- first car built specifically for India by the a

multi-national company built at its new state-of-the-art plant in Tamil Nadu.

2000(Feb) Ford India announced that a IKON1.3 CLXi Endure-E petrol would be

available at Ford dealership across India from March 1, 2000.

2000 (Feb) On February 10, Ford India announced that Narain Karthikeyan would be

racing a for the Ford-owned Jaguar racing team in the FIA British Formula 3

championship. The company renewed its sponsorship and organizes corporate

sponsorship consortium to proved training development ,mentoring financial backing

to Narain in a bid to the become the British Formula 3 champion in 2000.

2000(Apr) Ford India launched Ford Assured on April 24,2000 a new come initiative

to buy and sell used cars; this initiative is first of its kindventure in which Ford

India along with its dealership will buy, recondition and sell in various models of used

cars.

2000(June) Certified for ISO 14001: 1996 on June 8, 2000

2000(June) On June 23, 2000, Ford India introduced the latest member of the Josh

team, the Ford IKON EXi. The model is available at Ford dealership of from July

2000.2000(Aug) On August 4, Ford India announced the Conservation & Environment

Grant and programmed in India. The grants programme is open to projects in five of

Categories: Natural Environmental, Conservation Engineering, Heritage, Vents

Education Youth projects.

2001(Sept) On September 11,Ford India launched the Ford IKON SXiThese stylish

Josh machine simultaneously in New Delhi, Mumbai and Bangalore.A model is

available at Ford dealership from mid September 2001.

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2001(Oct) Ford India has started exporting Ford IKON CKD units, registration an

initial order of 1600 units in October 2001 , Ford India is well on its way to reach the

target figure of 21,000 IKONs in the current financial year , having already as

crossed the figure of 19,000 IKONs.

2002(Feb) Ford India launched a distinctive website with exciting new design

element and features to delight motoring enthusiasts, called www.india .ford.com.

2002(Feb) Ford Assured launched in a partnership with the dealership to buy,

recondition an sell used cars of different India makes.

2002(May) Certified ISO 9001:1994 on May 02, 2002.

2002(Nov) Ford announces winner for the Ford Conservation Environment Grant

program 2002. Ford India announced the winners the Ford Conservation,

Environment Grants (C&E) Programme in an awards ceremony held at ITT,Madras,

Dr Palanichami, IAS, Secretary, Environment & Forest Department, Government of

Tamilnadu, Presided over the function and presented the grant the presented the grant

to five winners from, the adult and youth category.

2002 (Nov) Ford India launched the Ford Mondeo.

2003(Jan) Ford India show cases a wide spectrum of exciting cars the Auto Expo

2003. Ford India unveiled a wide range of exciting car from the Ford Motorcompany

stable at this Auto Expo 2003, at Pragati Maidan , New Delhi Designed by

renowned art director Sabu Cyril, the ford India Limited will be manufactured at

HMLs state of the artmacning and assembly plant at Pithampur near Indore in

Madhya Pradesh.

2003(Mar) Certified QS 9000:1998, 3rd edition on March 21,2003 Ford India as

received the QS 9000 award from TUV suddeutschland.

2003(Sep) New Ikon Varient 1.6 Exi was launched New Delhi, September 02.2003

Ford India Limited today launched the Ford Ikon 1.6 Exi, its latest variant in the

Ikon Portfolio, offering a combination of high performance and premium features

at great value. The new Ford Ikon 1.6 Exi is powered by the 1.6 liter Rocam to the a

Petrol engine delivering 91 HP @ 5500 rpm and a peak torque of 130Nm @ 2500

RPM.

2004(Jan) The New Ford Ikon NXT launched The Next Level of Josh.

2004(Feb) Ford India doubles sale with Ford Ikon NXI for the month of January

2004 with a record 1,737 units compared to 860 units during the same month last

year.

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2004(March) Adding Refinement to Josh- Ford India launches Ikon NXT Finese.

2004(June) Ford Celebrates Centennial in India. Ford Motor Company awards Work

to the Excellence Award to Cooper Tire & Rubber India.

2005(July) Ford India launches Ikon NXT SXi.Ford India Rank Highest in J. D

Power India Sales Satisfactions Study.

2005(Aug) Ford launches Ikon Endeavor debuts in India,

2006(Sep) Ford Endeavor debuts in India.

2006(Oct) Ford announces price of Endeavour at Rs.12910 Lakhs.

2007(Dec) J.D.Power ranks Ford Ikon highest in appeal.

BBC worlds wheels Awards 2009 and 2011 First ever Viewers Choice awards

announced.BBC World named the winning car and bikes of the prestigious Wheels

Awards

2009 Sponsored by world Class Engine Oil, Wheels the popular weekly in the

automobile show on BBC World. Ford Ikon 1.6 NXT SXi Best car between Rs 5 and

Rs 8 Lacs Ford Endeavor 4WD Best car SUV over Rs 10 Lacs

2011(Jan) Autocar SUV of the Over- Winner Ford Endeavour.

FORTUNE FORD PRODUCTS

Ford Fiesta

Price list of above Products: (w.E.F May 1st, 2011)

(Price in rupess)

1.4 Duratec 1.6Duratec 1.4 duratec

Petrol Exi Spl.Elitepack Zxi Sxi Abs With alloys

Ex- Show room 5.86.500 5,86,500 6,32,20 7,18,200 7,18,200

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0

Insurance 21,570 21,570 23,170 29,325 29,325

Life Tax 52,900 52,900 57,020 64,760 64,760

Registration 2500 2500 2500 2500 2500

T/R Charges 500 500 500 500 500

Exi Warranty(2yrs) 5,500 5,500 5,500 5,500 5,500

Incidental charges 5,000 5,000 5,000 5,000 5,000

Essential Pack 2,340 38,000 2,470 2,470 22,470

2. Ford fiesta

1.4 Durates

DISEL E xi Spl-Elite

pack

Sxi Abs Z xi Sxi Abs (A)

Ex- show

Room 6,96,500 6,95,500 8,02,200 7,42,200 8,02,200

Insurance 25,450 25,450 29,155 27,050 29,155

Life Tax 62,800 62,800 73,320 66,920 29,155

Registration

.

2,500 2,500 2,500 2,500 2,500

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T/R Charges

500 500 500 500 500

Exi

Warranty(2yrs 5,500 5,500 5,500 5,500 5,500

Incidental

charges 5000 5,000 5,000 5,000 5,000

Essential Pack

2,340 38,000 2,470 2,470 22,470

On Road price 8,00,590 8,36,250 9,19,645 8,52,140 9,39,645

Ford Ikon:

Price list of above Products:(W.E.F May,1st,2011)

(pric

e in rupees)

1.3 Flair

PETROL Flair Blast Kit 1(Rs.)** Blast Kit 2(Rs.)**

Ex- showroom 4,75,900 4,75,900 4,75,900

Insurance 17,720 17,720 17,720

Life Tax 42,950 42,950 42,950

Registration 2,500 2,500 2,500

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T/R Charges 500 500 500

Exi Warranty(1yrs

5,300 5,300 5,300

Incidental charges

5,000 5,000 5,000

Blast Kit 3,120 35,000 24,000

Essential Pack 5,52,990 5,84,870 5,73,870

Ford Fusion:( W.E.F. 19th July 2011)

FORD FUSION

Petrol TDCI

Ex- showroom 5,70,000 6,59,000

Insurance 23,880 24,135

Life Tax 51,450 59,430

Registration 500 500

T/R Charges 2,500 2,500

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Exi Warranty

5,900 5,990

Incidental charges 5,000 5,000

Essential Pack 3,200 3,200

Total

6,62,490 7,59,755

Ford Endeavour :( W.E.F.1st June 2011)

DIESEL

Model 4x2 4x2(ltd edition) 4x4

Ex-show room 14,72,000 15,52,000 15,62,000

Insurance 57,000 59,940 60,305

Life tax 1,32,600 1,39,800 1,40,700

T/R charges 500 500 500

Registration 2,500 2,500 2,500

Ex-Warranty 9,255 9,255 9,255

Incedental

charges

5,000 5,000 5,000

Total 16,78,825 17,68,965 17,80,230

Terms & Conditions

1. Please collect the original receipt after paying the advance or full amount.

2. Price are subject to charge with notice.Price prevailing at the time of the

physical delivery wills the applicable.

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3. Vechile will be delivered only after all registration formalities are complete a

per the mot vehicle act.

4. 100% Payment to be made before to delivery by D.D / Cheque / Cash / Pay

order favour of m/s.Fortune Automobiles India pvt.Ltd.

5. Vehicles will be registered and delivered only after receipt of full payment.

6. Booking amount shall not carry any interest.

7. Please produce your PAN copy against delivery as for Govt. rules.

Ford Fiesta

FORD FIESTA 5,87,500.00

Ex-Showroom price 4,99,375.00

Finance amount 88,125.00

MARGIN AMOUNT 21,630.00

INSURANCE 70,620.00

LIFE TAX @12% 500.00

T/R CHARGES* 2,500.00

REGISTRATION* 5,500.00

EXT WARRANTY (2nd yr ) 5,000.00

INCIDENTAL CHARGES 2,340.00

ESSENTIAL

O.S STAMP DUTY (on finance)* 24,968.75

Processing fee* 3,500.00

TOTAL (A) 224,683.75

INSTALLMENT AMOUNT (12 moths) 44,224.65

(13.5% int); 8856/-per lakhs (B)

INSTALLMENT AMOUNT (36 moths)

(13.5% int); 3356/-per lakh ( C) 23,595.00

INSTALLMENT AMOUNT (13.5% INT) 16,759.03

3356/- per lakh (D)

EQYATED AMOUNT INSTALLMENT

DOWN PAYMENT for 12 months =(A)+(B) 268,908.40

(1st installment)

DOWN PAYMENT for 24 months = (A)+(C) 248,279.22(1st installment)

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DOWN PAYMENT for 36 months =(A)+ (D) 241,442.78

(1st installment)

FINANCE AMOUNT- PAYMENT MADE

BY CUSTOMER

AFTER PERIOD12 MONTHS 31,320.80

24 MONTHS 66,916.25

36 MONTHS 103,949.90

Ford Fiesta

FOR 12 MONTHS

TOTAL 6,87,110 Simple Compound

interest 9% interest 9%

MONTH

PAMENT

REMAINING

1 2,68,908.40 4,18,201.60 3,136.51 3,316.51

2 44,224.65 3,73,976.95 2,804.83 3,77,113.46 2,828.35

3 44,224.65 3,29,752.30 2,473.14 3,32,557.13 2,494.18

4 44,224.65 2,85,527.65 2,141,46 2,88,000.79 2,160.01

5 44,224.65 2,41,303.00 1,809.77 2,43,444.46 1,825.83

6 44,224.65 1,97,078.35 1,478.09 1,98,888.12 1,491.66

7 44,224.65 1,52,853.70 1,146.40 1.54,331.79 1,157.49

8 44,224.65 1,08,629.05 814.72 1,09,775.4

5

823.32

9 44,224.65 64,404.40 483.03 65,219.12 489.14

10 44,224.65 20,179.75 151.35 20.662.78 154.97

20179.75+

24,044.9

44,224.65

TATOL TATOLint 16,439.30 16,893.94

Normal loss is 31,320.80

Actual loss is 16439 in

Simple interest

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Actual loss is 16893.94 if it is

compound interest

INTERPREATION OF FORD FIESTA

1. The Ex-show room price of the car is (5, 87,500.00)

2. In the price finance available only 85%,(499,375.00)

3. Show room price deducted to the finance amount its means margin money.

4. The stamp required on the finance amount at 5%

5. Various expenses added to the car (INSURANCE, LIFE TAX @ 12%, T/R

CHARGES, T/R CHARGES, EXT. WARRANTY (2nd yr) ESSENTIAL PACK,

PROCESSING FEE)

6. Ford company mostly preferable at 13.5%

7. Interest is calculated at only finance amount (499,375.00)

8. Interest is calculated 1, 00,000 only (8856)

9. After multiplied at finance amount

10. Equally monthly installment required 12,24and 36only

11. Time period is less install amount is more

12. Compound interest is calculated on the remaining amount of the instalment

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Ford Ikon

Ex-Show room price 482500

Finance amount 410125

MARGIN AMOUNT 72375

INSURANCE * 17950

LIFE TAX@ 12% 58020

T/R CHARGES* 500

EXT.WARRANTY (2nd yr) 2500

INCIDENTAL CHARGES 5300

BLAST KIT 5000

0.5 STAMP DUTY (on finance) * 20506.25

PROCESSING FEE 3500

TOTAL (A) 188771.25

INSTALLMENT AMOUNT (12 months)(13.5% int); 8,856 /-per lakh (B) 36320.67

INSTALLMENT AMOUNT (24 mounths)

(13.5% int); 4,725/- per lakh (C) 19378.40652

INSTALLMENT AMOUNT (36 mounths)

(13.5% int); 3356/- per lakh (D) 13763.795

EQUATED MONTHLY INSTALLMENT

DOWN PAYMENT FOR 12 months =

(A) + (B) { 1st installment }

DOWN PAYMENT FOR 24 months =(A) + (C) { 1st installment } 208149.6563

DOWN PAYMENT FOR 36 months =

(A) + (D) { 1st installment } 208149.6563

FINANCE AMOUNT PAYMENT MADE

BY

CUSTOMER AFTER PERIOD 202535.045

12 MONTHS -25723.04

24 MONTHS -54956.75

36 MONTHS -85371.62

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Ford Ikon

TOTAL 574890 SIMPLE int. compound int

MONT

H

PAYMENT REMANIN

G

INTEREST @ 9% 9%

1 208149.656

3

366740.3437 2750.55257

8

2750.5525

7

2 36320.67 330419.6737 2478.14755

3

333170.22 2498.7766

3 36320.67 294099.0037 2205.7452

8

296571.151 2224.328

4 36320.67 257778.3337 1933.33750

3

259984.076 1949.8805

5 36320.67 221457.6637 1660.93478 223391.001

2

1675.4325

6 36320.67 185136.9937 1388.52745 186797.928

2

1400.9844

7 36320.67 148816.3327 1116.12242 150204.851

2

1126.5363

8 36320.67 112495.6597 843.717402 113611.776

1

852.0883

9 36320.67 76714.9837 571.312377

8

77018.7011 577.6402

10 36320.67 36320.3137 298.907352

8

4045.62608 303.1921

11 36320.67 3533.6437 26.50232775

3832.551059

28.7441

12 3533.6437+32787.027 3560.146 26.701095

TOTAL TOTAL INTERST 15273.80138

15414.85782

Normal loss 25723.04

Actual loss is 15273.80198

Simple interest


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Compound interest.

INTERPRETATION OF FORD IKON

1. The Ex-show room price of the car is (4, 82,500).

2. In the price finance available only 85% (4, 10,125).

3. Show price deducted to the finance amount its means its means margin money.

4. The stamp required on the finance amount at 5%.

5. Various expenses added to the car (INSURANCE, LIFE TAX@ 12%, T/R

CHARGES, T/R CHARGES, EXT, WARRANTY (2nd yr) , ESSENTIAL

PACK. PROCESSING FEE)

6. Ford company mostly preferably at 13.5%.

7. Interest calculated at only finance amount (4, 10,125).

8. Interest is calculated 1, 00,000 only 8856).

9. Equally monthly installment required 12, 24 and 36 only.

10. After multiplied at finance amount.

11. Time period is less install amount is more.

12. Compound interest is calcuted on the remaining amount of the installment

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Ford Endeavour

Ex- ShowRoom price 148200


MARGIN AMOUNT 222300

INSURANCE * 57370LIFE TAX@ 12% 177960

T/R CHARGES* 500

REGISTERATION 2500

Ex- WARRENTY (2nd yr) 9225


FLOOR MATS 4500

0.5 STAMP DUTY (on finance)* 62985

PROCESSING FEE * 3500

TOTAL (A) 54580

INSTALLMENT AMOUNT (12 months)

(13.5% INT ); 8856/- per lakh (B) 11559.032INSTALLMENT AMOUNT (12 months)

(13.5% INT ); 4,725/- per lakh (C ) 59520.825


(13.5% INT ); 3356/- per lakh (D) 42275.532


DOWN PAYMENT for 12 months =

(A)+(B) (1st INSTALLMENT)

657390.032

DOWN PAYMENT for 24 months

(A)+(C) (1st INSTALLMENT)

605360.825

DOWN PAYMENT for 24 months(A)+(D) (1st INSTALLMENT) 588115.532

FINANCE AMOUNT PAYMENT MADE BY

CUSTOMER AFTER PERIOD

12 MONTHS -79008.384

24 MONTHS -168799.8

36 MONTHS -2622.152

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INTEPRETATIO OF FORD ENDEAVOUR

1. The Ex-show room price of the car is (14, 82,000)

2. In the price finance available only 85% (12, 59.700)


4. The stamp required added on the finance amount at 5%

5 Various expenses added to the car (INSRANCE, LIFE TAX @ 12% T/R

CHARGES, EXT, WARRANTY (2ndyr) ESSENTIAL PACK PROCESSING

FEE)

6. Ford company mostly preferable at 13.5%

7. Interest calculated 100000 only 8856

8. Interest calculated at only finance amount (12, 59,700)

9. Equally monthly installment requires 12,24 and 36 only.


11. Compound interest is calculated on the reaming amount of the installment.

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Ford Fusion

Ex- ShowRoom price 576500


MARGIN AMOUNT 86475

INSURANCE * 24120

LIFE TAX@ 12% 69300

T/R CHARGES* 500

REGISTERATION 2500Ex- WARRENTY (2nd yr) 5090


ESSENTIAL PACK 3200

0.5 STAMP DUTY (on finance)* 24501.25

PROCESSING FEE * 3500

TOTAL (A) 225089.56


(13.5% INT ); 8856/- per lakh (B)

43396.614


(13.5% INT ); 4,725/- per lakh (C )

23153.68125


(13.5% INT ); 3356/- per lakh (D)

16445.239


DOWN PAYMENT for 12 months =

(A)+(B) (1st INSTALLMENT)

268482.864


(A)+(C) (1st INSTALLMENT)

248239.9313


(A)+(D) (1st INSTALLMENT)

241531.489

FINANCE AMOUNT PAYMENT MADE BY

CUSTOMER AFTER PERIOD

12 MONTHS -30734.368

24 MONTHS -65663.35

36 MONTHS -102003.604

FORD FUSION

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TOTAL 687110 SIMPLE

COMPOUND

MONT

H

PAYMEN

T

REMANIN

G

INTEREST @ 9% INT @ 9%

1 268482.86

4

418627.136 3139.70352 3139.70352

2 43369.614 375257.522 2814.43141

5

378397.225

5

2837.97919

1

3 43369.614 331887.908 2489.159 334702.3394 2510.267546

4 43369.614 288518.68 2163.8895 291007.4533 2182.5559

5 43369.614 245748.68 1838.6151 247312.5672 1854.844254

6 43369.614 201779.066 1513.34299

5

203617.6811 1527.132608

7 43369.614 158409.452 1188.07089 159922.795 1199.4209628 43369.614 115039.838 862.798785 116227.9089 871.7093162

9 43369.614 71670.224 537.52668 72533.02279 543.9976709

10 43369.614 28300.67 212.254575 28838.13668 216.2860251

11 28300.61+15069.04 28512.86458 213.8464843

12 3533.6437+32787.027

TOTAL TOTAL INT 16753.79048

17097.74348

Normal loss 30374


Simple interest


Compound interest.

INTERPERTATION OF FORD FUSION

1. The Ex-show room price of the car is (576500)

2. In the price finance available only 85% (490025)


4. The stamp required on the finance amount at 5%

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5. Various expenses added to the car (INSURANCE,LIFE TAX@12%.T/R

CHARGES

6. T/R CHARGES,EXT.WARRANTY (2nd yr).ESSENTIAL

PACK,PROCESSING FEE)

7. Ford company mostly preferable at 13%

8. Interest calculated at only finance amount (490025)

9. Interest is calculated 100000 only 8856.

10. After multiplied at finance amount.

11. Equally monthly installment required 12,24 and 36 only.


13. Complex interest is calculated on the remaining amount of the instalment.

CONCLUSION

As this is a case study related to credit financing (hire-purchase) of motor

vehicle. I came to know about this issued and suggested some valuable points to the

buyers of four wheeler and making them to know about pros and cons of the

method.

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I felt gland when, Iam analyzing this thing ford customers and my profound

thanks to fortune ford company for giving me this opportunity and making me

knowledgeable in four wheeler segment.

FINDINGS

1. To analyse to data pertaining about hire-purchase it requires a lot of

calculation.

2. If customer chooses, this option definitely it is a loss figure to him.

3. More formalities have to be fulfilled by customer, in getting a loan

Finance amount.

4. When compare to outhouse finance, in-house provide many pros like

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a. Time saving in getting the product

b. Easy delivery system

c. Support from provides on option to chosen third party for a Finance amount

d. Support from company regarding any issue

5. Generally person goes for the hire-purchase when they dont have a money

only.

6. High income people are willing to pay lumsum amount initially itself.

7. Though hire-purchase system, customer can get right on the product but

lacks right to sell it for other person.

SUGGESTIONS

1. If he/she is not having currency to buy four wheeler, it is advisable to

an Purchase desired product through hire-purchase.

2. From customers point of view it is recommended to go for the

purchasing even though he has money .But before going, one should

analyze the be a TIME VALUE OF MONEY concept once and he

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should look in to the can concept of simple as well as compound

interest.

3. General calculations done by customers are wrong, because they

forgot an about interest concept on remaining amount.

4. Is suggested to invest remaining amount in short term liquidity funds

a where assured principal is there with certain interest percentage.

5. It is advisable to customer to invest in capital markets, if he/she has

to an sound knowledge about it.

6. Make sure of not getting huge loss through hire-purchase.

BIBLIOGRAPHY

1. FINANCIAL MANAGEMENT BY IM PANDEY

VIKAS PUBLISHING HOUSES

PT. LTD 2006, 9TH EDITION.

2. FINANCIAL MANAGEMENT PRASANNA CHANDRA

TATA MCGRAW HILL

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PUBLISHING COMPAN LTD

2005, 5TH EDITION

3. TOTAL QUALITY MANAGEMENT BY PN MUKHERJEE

PRENTICE HALLINDIA

2006, 5TH EDITION.

4. FINANCIAL ACCOUNTING & S.P.JAIN & K.L.NARANG

ANALYSIS

Other Sources

WEB SITE - www. fortuneford.com

www. Wikiepedia.com

www.google.com

credit finance

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