gujarat state financial corporation-bba-mba-project report

8/2/2019 Gujarat State Financial Corporation-bba-mba-project Report

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INDEX

Sr. No. Particulars Page No.

1 COLLEGE CERTIFICATE 0

2 COMPANY CERTIFICATE 1

3 DECLARATION 2

4 ACKONWLEGEMENT 3

5 PREFACE 4

6 METHODOLOGY 5

7 BANKING SECTOR IN INDIA 6

8 MAIN INDEX 7

DECLARATION

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I, the undersigned Rathod Amit a student of S.Y.B.B.A.hereby declare that the project work presented in this report is my own

work and has been carried out under the supervision of Mr. Rupala Savan

of R.P.Bhalodia College, Rajkot.

This work has not been previously submitted to any other

university for any examination.

Date: Signature:

Place: Rajkot. Rathod Amit

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ACKNOWLEDGEMENT

I sincerely thank the members of Gujarat State Financial

Corporation who have been very co-operative in making me aware abouttheir bank and making me know about the real practical world.

I express my profound thanks to Mr. Rupala Savan who has

always been supporting, patience and tolerant in solving my queries.

I wish to express my success appreciation. Though it is too

difficult to mention all the names in an exhaustive manner, some

prominent ones have however been recognized.

DIRECTORS OF

GUJARAT STATE FINANCIAL CORPORATION

I would like to thank my father, Mr.Kiritbhai Rathod, my

mother, Sarojben Rathod, my friends, my colleagues who constantly

encourage me during my training period. So this project report is

dedicated to all of them.

Date :

Place : RAJKOT

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PREFACE

My aim in writing this project, as its title indicates, has been to

produce a practical report on the visit of GUJARAT STATE

FINANCIAL CORPORATION. I have tried to highlight the true essenceof the company and secondly make available in a consolidated form, from

my personal experience during the visit to Gujarat State Financial

Corporation.

I have visited Gujarat State Financial Corporation, which

taught me practical knowledge about how the bank operates. I have

gained familiarity by experience.

In this report I have presented the clear idea about the workingin BANK. This report is updated from it financial till its marketing. This

work is my original content and it has been never published anywhere

before by anyone.

Date:

Place:

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METHODOLOGY

I have made the project according to performance prescribed in

industrial study paper by Saurashtra University. First of all I went withrequesting letter given by our college. After favorable reply from the

organization, I have visited the service sector named Gujarat State

Financial Corporation.

After visiting and observing the organization, I have prepared

project on the basic information provided by them. I tried my level best to

collect maximum information during the visit for the preparation of this

project.

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BANKING SECTOR IN INDIA

The importance of banking as the nerve sector of economic

development cannot be over emphasized. Banking industry has acquired akey position in mobilizing resources for socio economic development of

the country. IT is said that Bank which are that need of & great wealth

of our country have got to be kept very sacred. Just as water is for

irrigation, good banks are for the countrys industry & trade. Since the

beginning of planning in India banking industry has grown not only in

size but also in depth this industry has become one big complex.

Today banks have become a part & parcel of our life. It was

the time when the dwellers of city alone could enjoy their service. Now

banks offer access to even a common man & there activities extend to

areas hither to untouched & after the globalization & liberalization policy

of India, many foreign banks have entered in Indian market with different

services & innovation technologies. Apart form their traditional business

oriented function, they have now come out to fulfill national

responsibilities. Todays banks supply to the needs of agriculturists,

industrialist, traders, women, students, & to all other section of the

society. Thus they speed up the economic growth of a country & steer the

wheel of the economy towards its goals of self reliance in all fields.

Hence today banking sector has become the lifeline of the economy.

In present age in India there are many banks including foreign banks,

public sector, private sector, commercial banks & co-operatative banks.

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MAIN INDEX:

Sr. No. Particulars Page No.1 General Information 08

2 Service Department 22

3 Marketing Department 44

4 Finance Department 52

5 Personnel Department 62

6 SWOT Analysis 73

7 Future Plans 78

8 Suggestion 79

9 Conclusion 80

10 Bibliography 81

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CONTENTS OF

GENERAL INFORMATIONSr. No. Particulars Page no.

1 Introduction 10

2 History 11

3 Company Profile 12

4 BoardofDirectors 14

5 Existing Management Group 15

6 Organization Structure 17

7 Size and Form of Organization 18

8 Mission Statement 20

9 Objectives of Organization 21

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INTRODUCTION

Gujarat State Financial Corporation (GSFC) is a pioneer term

lending development financial institution in the State of Gujarat. Itis created under the State Financial Corporation Act, 1951 passed

by Parliament.

The first chairman of the GSFC was Shri Amritlal Hargovandas

and now at present the chairman is Shri D Rajagopalan, IAS. He is

the 23rd chairman of the GSFC.

GSFCs mandate is to provide finance to small and medium scale

enterprises.

Formed in 1960, GSFC has sanctioned loans and advances of over

Rs.4400 crores; out of which, it has disbursed over Rs.3,300 crores

to 47,000 units in the state.

GSFC has created almost 683,000 jobs in Gujarat. The Corporation

has played a stellar role in creating new and first time

entrepreneurs, has provided much needed finance to small and

medium sale enterprises and has played a significant role in the

industrial development and economic growth of Gujarat.

GSFC is form by the public enterprise. So every activity is watch

by government.

23. Shri D Rajagopalan, IAS 15/10/07 Continue

Sr.

No.Name of Chairmen From To

1. Shri Amritlal Hargovandas 01/05/60 16/08/63

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HISYORY

Incorporated on 1st May, 1961. Its main object is to provide

financial assistance to small and medium scale new/existing industrialand service sector units all over Gujarat for acquisition of fixed assets,

preliminary and pre-operative expenses, expansion, modernization,

diversification etc.

GSFC has played an important role in the industrial

development of the state. Till date, it has financed 47,000 units and

disbursed Rs. 3,300 crore, generating employment for over 6,83,000

persons. Many units financed by it are now well established and have also

graduated from small to medium and large scale.

The last few years, Corporation is passing through financially

difficult times.

Currently, it is engaged in the activity of recovering dues

from its borrowers and paying its lenders.One Time Settlement schemes

have been introduced to expedite recovery.

Cost cutting exercise has been implemented to reduce

manpower by deputing staff to various Government departments and byimplementing VRS.

Government has formed a high-powered committee under

Chief Secretary to decide on the future of GSFC. Committee has decided

to offer VRS to employees have OTS scheme and restructure the

organization.

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COMPANY PROFILE

1) Name of the Organization : Gujarat state financial corporation

2) Office Address : Race Course, Ring Road,

Nr. Durkush Hotel

Rajkot- 360 001.

3) Year of Established : 1961.

4) Form of Organization : Public Enterprises

5) Size of Unit : Service Base Medium Scale

6) Braches : a)Children's Hospital Building,

Rasala Marg,

Opp. Ellisbridge police line

Ahmedabad-380006.

b) Nilam Baug Palace Compound

Gaurishankar Road,

Bhavnagar-364 002.

c) Vikas Bldg., Dutch GardenRoad, Surat-395 001.

d) Apmc Building, 1st Floor, Opp.

Power House Dashera Tekri,

Bechar Road, Valsad-396 001.

e) Regent Tower, 3rd Floor,

Opp. Income Tax Bldg,

Race Course Circle,

Vadodara-390 007.

7) No. of employees : 400 Persons (Over all GSFC)

8) Working Hours : Transaction Time: - 10:30AM to6:10PMSaturday:-Second & fourth sat. Holiday.

Off Days: - Sunday and all the

Government Holiday

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9) Regional Manager : Shri N. H. Kantesaria,

Dy. Gen. Manager I/C.

10) Phone No. : 0281- 24436640281- 2442715

11) E-mail Address : mailto:[email protected]

12) Fax No. : 0281- 2479292

13) Website : www.gsfc.gujarat.gov.in.com

14) Regional Setup : Rajkot, Junagadh, Jamnagar,Kutch-Bhuj.

15) Services :

EASY FINANCE FOR:-

SSI & Medium scale Industry

HI-tech Agriculture

Ayurvedic & Herbal Products

Doctors & Hospitals

Hotels & Restaurants

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mailto:[email protected]://www.gsfc.gujarat.gov.in.com/mailto:[email protected]://www.gsfc.gujarat.gov.in.com/


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Board of DirectorsSmt. Gauri Kumar, IAS

Principal SecretaryIndustries & Mines

Department Block No.5, 3rd

Floor, Sachivalaya,

Gandhinagar

Director

Gujarat StateFinancial

Corporation.

(079)23250701

(079)23250703

sec-

[email protected]

Shri Arvind Agarwal, IAS

Managing Director

Managing

Director

G S F C

Appointed By

Government Of

Gujarat

Gandhinagar

(079)23259513

(079)23226220

md-

[email protected]

Shri G P Joshi, IAS

Director

Nominated by

State

Government

(079)23250606

Shri U R Tata

Director

Nominated by

SIDBI

(079)27541086

Shri Harsh Kaul

Director

Nominated by

SIDBI

(022)67531106

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EXISTING MANAGEMENT GROUP

Chairman: - Shri D Rajagopalan

Managing Director: - Shri Arvind Agrawal

Staff:-

SR. NO. NAME OF THE EMPLOYEE DESIGNATION DEPARTMENT

1 SMT S G KUTTY EXE.SECRETARY CHAIRMAN CELL

2 SHRI K T BHAVSAR OFFICE SEC-1 CHAIRMAN CELL

3 SHRI P S SINDE VEHI.OPERTAOR CHAIRMAN CELL

4 SHRI K L VERGHESE EXE.SECRETARY M D CELL

5 SHRI R R JASWANI JR.OFFICER M.D.CELL

6 SHRI K R JANI JR.OFFICER M.D.CELL

7 SHRI R N RANA OFFICE ATT.3 M.D.CELL

8 SHRI P J CHAUHAN OFFICE ATT.3 M.D.CELL

9 SHRI J G PARAMAR OFFICE ATT.3 M.D.CELL

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General Manager: - Shri F.D. Lahiri

Officers:-

ORGANIZATION STRUCTURE

1 SHRI K C RAJYAGURU SR.OFFICER(FLD) RAJKOT R.O.

2 SHRI A G DAVE JR.OFFICER(FLD) RAJKOT R.O.

3 SHRI I J MAKWANA JR.OFFICER(FLD) RAJKOT R.O.

4 SHRI V M JADEJA OFFICE ASST. RAJKOT R.O.

5 SHRI A R GOSWAMI OFFICE ATT.3 RAJKOT R.O.

6 SHRI M M BARAI SR.OFFICER(A/C) RAJKOT R.O.

7 SHRI P H DHIM SR.OFFICER(FLD) RAJKOT R.O.

8 SHRI A K KAUSHAL SR.OFFICER(FLD) RAJKOT R.O.

9 SHRI M S BHATT OFFICE SEC-1 RAJKOT R.O.

10 SHRI K D WAGHELA OFFICE SEC-1 RAJKOT R.O.

11 SHRI A P DHRUV JR.OFFICER RAJKOT R.O.

12 SHRI V H VALA JR.OFFICER RAJKOT R.O.

13 SHRI N H PATEL JR.OFFICER RAJKOT R.O.

14 SHRI J R PATNI JR.OFFICER RAJKOT R.O.

15 SMT R S DHOLAKIA JR.OFFICER RAJKOT R.O.

16 SHRI R P JASANI JR.OFFICER(FLD) RAJKOT R.O.

17 SHRI G V MANDIR OFFICE ASST. RAJKOT R.O.

18 SHRI D D DANTI OFFICE ASST. RAJKOT R.O.

19 SHRI BHIKHU R GOZIYA OFFICE ASST. RAJKOT R.O.

20 SHRI D R CHAUHAN VEHI.OPERTAOR RAJKOT R.O.

21 SHRI JAYANTILAL G MEHTA OFFICE ATT.3 RAJKOT R.O.

22 SHRI J A VANAR OFFICE ATT.3 RAJKOT R.O.

23 SHRI V C DEVMURARI OFFICE ATT.3 RAJKOT R.O.

24 SHRI K J MULUSH FIX PAY RAJKOT R.O.

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Chairman

Managing Director

General Manager

Dep. General Manager

Manager

Director of Director of Director of Director of

Service Finance Market Personnel

Department Department Department Department

Loan SR. Officer Business Employees

Sanction Development

Loan JR. Officer Employees

Disbursement

Legal Routine

Department Work Dep.

Recovery

Department

SIZE & FORM OF ORGANIZATION

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Size of organization:-

Managerial decision regarding the size of the plant or firm

will depends upon the size of the market to be catered. Technical

managerial function and human resource at our disposal are the crucial

factors determining the size our business operation. We must strive to

reach the optimum size in order to obtain the lowest cost of production as

well as the lowest cost in distribution.

There are three type of size of organization. They are:

Large scale unit

Medium scale unit

Small scale unit

According to the Indian Companies Act 1956, organizations

establish with an initial capital of Rs.1 crore or more than Rs. 1 crore is

called large scale unit. Gujarat State Financial Corporation is a medium

scale service base unit.

Form of Organization:-

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The development or growth of forms of organization is

closely interconnected with the stages of economic development of a

country. Thus, after the economic development the evolution and

development of organization is accelerated.

The Gujarat State Financial Corporation is the Public

Enterprises. It is handled by the Government.

The following forms of organization carry out modern

business.

MISSION STATEMENT

Form of Organization

Privet

Enterprises

Co-operative

Sector

Enterprises

Public Sector

Enterprises

Sole Trader

Partnership

Firm

Company Org.

Privet Com.

Public Com

Co-operative

Society

Co-operative

Store

Government

Department

Govt. Company

Statutory

Corporation

Statutory Board

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The focus of Gujarat State Financial Corporation is to be a

most useful, reliable and efficient provider of financial services. It is their

continuous endeavor to be trustworthy advisors to their clients and also

helping them to achieve their financial goals.

OBJECTIVES OF ORGANIZATION

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Gujarat State Financial Corporation main object is to provide

financial assistance to small and medium scale new/existing industrial

and service sector units all over Gujarat for acquisition of fixed assets,

preliminary and pre-operative expenses, expansion, modernization,diversification etc.

GSFC main objective is that give the finance to small and

medium scale industries.

The Corporation has formulated various schemes to meet credit

needs of various segments of the economy.

The Corporation has formulated various schemes for help to theIT-Industry and Hi-tech Agriculture.

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CONTENTS OFSERVICE DEPRATMENT

Sr. No. Particulars Page no.

1 Introduction 24

2 What is Service? 25


4 Loan Department 27

5 Procedures For Disbursement of

Loan

28

6 Terms of the Loan 30

7 Loans 31

8 Process of Granting Loans 42

9 Recovery of Loan 43

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INTRODUCTION

The product is a bundle of all kind of satisfaction of bothmaterial & non-material kinds. A product supplies two kinds of utility.

(1) Economic Utility(2) Supplementary utility, in the form of social psychological benefits.

The product may be a good, a service or the combination of both

as good and service or just an idea. A Product is all things offered to a

market. Those things include physical objectives; design, brand, package,

label, price, service; supportive, literature and satisfaction not only form

physical product and service offered but also from ideas, personalities

and organization. In short, a economic, social and psychological benefits.

With years, banks are also adding services to their customers.

The Indian banking industry is passing through a phase of customers

market. The customers have more choices in choosing their banks. A

competition has been established within the banks operating in India.

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WHAT IS SERVICE?

GSFC is known as a service unit because it provides its service

to the society.

What service means?

Service has got different meaning or can be understand in

different ways.

Service means an action helping someone.

The action of work for someone.

A system supplying a public needs.

Ready to assist someone when required.

Form the above all meaning any meaning can be considered or

is applicable for the service company. But the perfect meaning

can be the combination of all the meanings.

GSFC is perfectly suitable with this meaning because it helps by

providing facilities, satisfying public need and ready to assist them

whenever required. GSFC give only industrials loans.

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M.D.

Director of Service Department

LoanSanction

Loan Disbursement

Legal Department

Recovery Department

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LOAN DEPARTMENT

Now a day the world has become more and more costly, so the

middle class people face the many problems to buy the required things.And the main problem is that they can not buy required things like house,

vehicle, shop office etc. So, its main solution is loan. Because of this

bank and other societies started giving them loans in which they will have

to do the payment in installments. On these facilities they will be charged

interest according to the repayment of the principle amount.

EASY FINANCE FOR:-

Small Scale Industry Hi-tech Agriculture

Doctor and Hospitals

Ayurvedic and Herbal Products

Hotels and Restaurants

GSFC also give the loans to the another instantiations .At last,

the bank also works on the recovery of finance which was given by bank

and disbursement of the finance.

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PROCEDURES FOR DISBURSEMENTOF LOAN

Time limit for receiving Letter of Acceptance :

The application unit is required to send a letter of acceptance

within 30 days from the date of issuance of the letter of sanction, failing

which the Corporation has a right to cancel the loan. Early acceptance can

speed up disbursement process.

Scrutiny of Sanction Letter :

A letter communication the detailed terms of sanction is issuedto each applicant unit who should go through the same and if any term is

not clear, seek clarifications immediately form the Corporation either by

letter or in person to avoid any delay at the time of disbursement of

loan/execution of security documents.

Letter of Acceptance :

The applicant has to convey in writing unconditional

acceptance of the loan on terms and conditions stipulated in the letter of

sanction. However, as stated above, if any term is not clear, necessary

clarifications should be obtained immediately and thereafter acceptance

of them should be made to the Corporation.

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Steps of the loan:-

Loan Sanction

Loan Disbursement

Recovery

No Due Certificate

(NDU)

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TERMS OF THE LOAN

GSFC has sanction 70% amount of the total amount.

30% was the Party Margin. Sometimes the party margin is

decided by the loan.

The amount divided into 21 installments.

After the one year, the loan taker read to pay for the installment.

There is three months quarterly Installment. In a year there are four

installments.

The amount is Principle +Interest.

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LOANS

GSFC A FINANCIAL INSTITUTION FOR THE INDUSTRY

Gujarat State Financial Corporation is a premier regional

development bank set up by Government of Gujarat under the SFCs Act,

1951, to boost industrial development in the State. GSFC provides

financial assistance to set up new industry for acquisition of fixed assets

under various schemes of assistance for expansion, diversification,

renovation, modernization, balancing equipment or to purchase energy

saving devices etc. in case of existing units.

1) Loan to Small Scale Industry :-

A person who has his own business and wants to start his own

business as small scale sector can get this kind of the loan for the

purpose of fulfillment of the short term working capital needs or to

purchase new machineries or so on.

With a view to boost the development of small scale units,

Govt. of India and Gujarat have liberalized the industrial incentivepolicy by reforming the list of ineligibles industries and simplifying

the registration policy. The corporation has also floated the schemes of

bridge/temporary loan against admissible subsidy.

To obviate various procedural difficulties and help the

entrepreneurs to fulfill the same the corporation has introduced a novel

& unique system called WALK-IN-SYSTEM.

a. Mini composite loan up to Rs. 50,000/-b. For loans above Rs. 50,000/- but up to Rs. 2 lakhs.

c. For loans above Rs. 25 lakhs but up to Rs. 30 lakhs.

d. For the loans above Rs. 10 lakhs.

Margin:-

A minimum margin of 25% over the fixed assets will be

maintained.

Rate of Interest on loan is up to the 11%.

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2) Loan to Hi-tech Agriculture:-Gujarat State Financial Corporation would provide loan for

Hi-Tech Agriculture which includes Hi-tech System for cropcultivation, floriculture, fruits & vegetables, herbal & Ayurvedic

plants, aromatic plants, oil seed cultivation, tissue-culture & bio-

technology, captive industrial produce, mushroom & food processing,

arid zone related agro plantation as the most potential spheres.

GSFC would support SSI entrepreneurs having surplus land,

corporate houses able to develop the projects individually, progressive

farmers, educated unemployed youth and anyone with interest in hi-

tech agriculture, to the tune of Rs. 10,000 to Rs. 240 lakhs.

Scope of the scheme also includes green house, shade house,

irrigation system, state of art fertilization system, state of art pests and

disease management system, post harvest including cold store, pack

house and processing, integrated projects. Even if entrepreneurs

having their own land dont need finance, GSFC will be able to

provide technology or known-how support to make their farms as

model hi-profit farms.

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3) Loan to Doctors & Hospitals:-

(A) Scheme for Doctors:-The corporation provides terms finance to Doctors. Partly

for purchase of electro medical and other equipments required for

professional use, and partly to house the said equipment.

(a)Eligibility:-

Application must possess MBBS or BDS or equivalent

qualification.

(b) Amount of loan:-Loans up to Rs. 60 Lakhs may be considered for

acquisition of equipment and machinery.

(c) Rate of Interest:-

a. Backward districts = 12.5%

b. Other districts =14%

(d) Margin:-

Most of the party margin is 30%.

(e) Repayment of loan:-

The loan will be repayable within a period up to

7 years, in quarterly installments, with initial moratorium up

to 1 year from the date of initial disbursement.

(B) Scheme for Hospitals/Nursing Homes:-

Financial Assistance under the scheme will be granted for

establishing hospitals and Nursing Homes with the capacity of 20 ormore but less than 50 beds.

Assistance under this scheme will be available to small

Hospitals/Nursing Homes which are organized as Private/Public

limited companies/Partnership concerns and proprietary concerns

which:

a. Have the back-up of expert services of at least on post-

graduate doctor with qualification of M.D. /MS Etc. on full

basis.

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b. Are willing to provide medicals services at concessional rate

to patients from low income groups at least to the extent of

10% indoor patients.

(a) Rate of Interest:-a. Backward districts = 12.5%


(b) Margin:-


(c) Repayment of Loan:-

The loan will be repayable within a period up to 7

years, in quarterly installments, with initial moratorium upto 1 year from the date of initial disbursement.

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4) Loan to Hotels and Restaurants:-

Financial assistance from the Gujarat State FinancialCorporation is not restricted to conventional industries only. But it is

also available for starting hotel and restaurants industry. GSFC

sanctions loans for any type of hotel viz. STAR or NON-STAR.

(a) Amount of Loan:-

If yours is a limited company or a registered co-

operative society and you wish to start a hotel in

GUJARAT, you too could get finance up to Rs. 60 lakhs

from GSFC. Proprietary and partnership concerns can getloans up to Rs. 30 lakhs.

(b) Rate of Interest:-



(c) Margin:-


(d) Repayment of Loan:-

The loan will be repayable within a period up to 7

years, in quarterly installments, with initial moratorium

up to 1 year from the date of initial disbursement.

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5) Loan to New Entrepreneurs:-

The corporation provides financial assistance up to Rs. 5lakhs to technically qualified entrepreneurs, experienced craftsmen

and skilled workers for setting up their own industry, on soft terms.

(a) Eligibility:-

Applicants should be either graduate in engineering in

relevant discipline:

-Master degree in science with chemistry

-Diploma holder in engineering

(b)Amount of loan:-

The terms finance up to Rs. 5 lakhs for a project is

considered for acquisition of fixed assets like land,

building, plant and machinery and to meet with preliminary

and pro-operative expenses to a certain extent.




(d) Margin:-


(e) Repayment of Loan:-

A moratorium period of 1 year is granted for

repayment of principal amount. Total period of repayment

including moratorium will be up to 9 years.

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6) Loan to Women Entrepreneurs:-Women having business acumen and entrepreneurial Its can be

given financial assistance to set up their own units promoted and

managed by them only in SSI on soft terms.

(a) Eligibility:-

All projects in small scale industries sector (including

cottage, village and tiny industries) promoted and managed

by women entrepreneurs will be eligible for assistance

under this scheme.

(b) Amount of loan:-

The corporation can provide financial assistance up to

Rs.60 lakhs to the public or private limited company or

registered cooperative concerns, this limit is Rs. 30 lakhs.


a. Backward districts = 12.5% b. Other districts =15%

(d) Margin:-

The minimum margin is 20 to 25%.

(e)Repayment of Loan:-

The loan will be repayable within a period of 8 years

including moratorium up to 2 years. The period of

repayment will depend on cash accruals / profitability of

her unit.

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7) Loan to SC / ST Entrepreneurs:-The enable SC/ST entrepreneurs to set up their own

industry, the Corporation provides financial assistance up to Rs.3

lakhs on soft terms like lower margin, concessional interest rate,

longer moratorium, longer repayment period and lower promoters

contribution under this scheme.

(a) Eligibility:-

The entrepreneurs hailing from SC/ST as may be

certified by the competent authority like social welfareofficer are eligible for finance under this scheme. However,

for partnership firm all the partners must belongs to SC/ST

(Partners must belong to SC/ST individually).


The corporation can provide financial assistance up to

Rs.3 lakhs.


The effective rate of interest on loan up to Rs.25.000/-

is at the of 9% and on loans above Rs. 25,000/- but less

than Rs. 5 lakhs is at the rate of 11%.

(d) Margin:-

The minimum margin prescribed is 10% on loan

sanctioned and overall contribution prescribed 5%. If

subsidy is sanctioned, then the minimum margin prescribed

10% after having provided for the amount of subsidy

granted.

(e) Repayment of Loan:-

Generally the moratorium of a period up to three years

is granted for repayment of loan while the overall spread

up to 12 years.

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8) Single Window Schemes:-Gujarat State Financial Corporation has implemented a novel

scheme single window to provide working capital loans along with

terms loans to new Tiny and Small Scale units so that they can start

their production expeditiously. The scheme intends to over come the

initial difficulties and delays faced by the new tiny and small scale

units assisted by the corporation in securing timely and adequate

working capital loans from Bank.

(a) Eligibility:-The new tiny and small scale units, whose project cost

does not exceed Rs. 5 lakhs excluding working capital

margin) and the total working capital requirements at

normal level of operations is up to Rs. 2.5 lakhs , are

eligible under the scheme.


Term loans up to Rs. 5 lakhs and working capital loans

up to 2.5 lakhs will be provide.


a. For working capital loans 14% per annum

Up to Rs. 2 lakhs.

b. Term loan for fixed 13.5%per annum

Assets.

(d) Margin:-



Working capital loan and fixed loan are to be repaid

in the within 8 years including moratorium up to 1 year.

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9) Equipment Finance Scheme:-Existing small and medium industrial concerns working

for four years having good past record of performance for 2 years,

with sound financial position are provided financial assistance up to

80% of the cost of identifiable item of original equipment / capital

goods including energy saving system s, not related to any specific

project indigenous or improved, for their expansion, diversification,

modernization, replacement, renovation and balancing equipment.

(a) Eligibility:-Existing industrial concerns having good record of

performance and sound financial position are eligible for

assistance under this scheme, if they satisfy the following

condition.

a. Have been in operation for at least 4 years.

b. Have earned profits and/ or declared dividend on equity

shares during preceding two financial years.

(b) Security:-The loans granted under this scheme shall be secured

by way of hypothecation of capital goods/equipment

financed by way of first and exclusive charge thereon in

favour of the corporation.



(d) Margin:-

Maximum loan that can be considered under the

scheme is 80% of the cost of capital goods/equipment to be

acquired. The borrower concern will have to bring in

minimum 20% of the cost of equipment and also allied

expenditure out of its own resources.


The loan is repayable within a period 2 to5 years with

a moratorium of 6 to 12 months depending upon the

repaying capacity of the unit.

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10) Modernization scheme:-The corporation provides assistance on soft terms to the

existing industries working for more than 5 years to adopt improved

and updated technology and methods of production to prevent

mechanical and technological obsolescence of machines.

(a) Eligibility:-

The modernization programme of the unit should be

implemented by the competent management of the unit.

Normally, the units should be in existence for aperiod of at least 5 years.

(b) Modernization Programme:-

a. Up gradation of process, technology and product

b. Export-Orientation.

c. Import-Substitution.

d. Energy saving

e. Anti-Pollution measures.



(d) Amount of loan:-

The outstanding and the fresh loan under the

modernization scheme will be restricted up to Rs.60 lakhs

for limited companies and registered co-operative societies

and up to Rs.30 lakhs for proprietary and partnership

concerns.

(e) Margin:-

A minimum margin of 10 to 15% over the fixed assets

will be maintained.

(f) Repayment of Loan:-

The repayment of the loan and the moratorium period

is to be fixed on the basis of repayment capacity of

borrowing concern. The initial moratorium may be up to 1

year and total repayment period will not generally exceed 6years.

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PROCESS OF GRANTING LOANS

Primary Investigation:-

In primary investigation, bank investigates all the things of the

customer such as, name, address, purpose of loan, amount of loan, assets

which is going to be mortgaged, etc. After knowing all the things about

the customer, bank will give loan form to customer. He has to fill up allthe things clearly.

Bank will need some documents for assurance. The one and

common document bank demand is demand promisenary this because

customer needs loan. If bank is granting loan to partnership firm and

proprietorship firm following documents are required.

All Partners/Proprietors photos

Copy of Partnership/Proprietors deed

P.A.N. Card Copy of firm.

Registration Copy(if)

Proof of existing of firm

Proof of all Partners/Proprietors address

After investigation all above things and required documents

General Manager of the bank will decide to grant loan or not. Fortaking this decision he may call meeting and General Manager takes

an opinion of the others. Thus they will decide to grant loan of not and

customer will get loan whether he has submitted all the required

documents and if he has not submitted the entire required documents

he might not be granted loan.

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RECOVERY OF LOAN

Customer who is being granted loan by bank, he has to repay the

loan in small installments which have been decided earlier. Customer has

to pay his installments in 1st to 10th of month otherwise he has to pay fine

(penalty).

Additional interest by way of penalty is charges in all the accounts

where the unit makes default in repayment of the loan. The penalty ischarged at 6% per annum on the default amount and for the period of

default. The penalty is considered for both installment dues as well as

interest dues.

If customer does not pay more than 3 installments, bank will issue

legal notice. And tough customer will not pay installment bank will claim

in court and generally court will also take decision in favor of the bank

then after Bank will again issue notice of confiscation assets for 30 days.

After these entire if customer will not pay installment bank will issue

notice of auction of his assets and bank will give an advertisement in

news paper and after 30 days bank will get its money from selling assets.

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CONTENTS OFMARKETING

DEPARTMENT

Sr. No. Particulars Page No.1 Introduction 46


3 Marketing Segment & Market Research 48

4 Services & Services Related Strategies 49

5 Promotion Mix / Advertisement 50

6 Competitors 51

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INTRODUCTION

Today, marketing is spread in every field of like, services,

hospitals, goods even politics and many more. In service sector too the

importance of marketing also can not measurable, still it has not

developed in public sector it is only limited to foreign service sector and

privet sector. The reason for success of foreign in India is only best

marketing efforts. Today in service sector there is a cutthroat competition

between other sector and privet financial service sector.

Marketing is a human activity directs at satisfying the needsand wants of customers, there are five stages of financial marketing.

Firstly marketing is advertising, sales promotion and publicity. Secondly,

marketing is smiling and co-friendly atmosphere. Thirdly, marketing is

innovation. Fourthly, marketing is positioning. When all financial service

sector advertise and innovate, they look alike so, they should try to

position themselves differently, even through symbols, logos or

aggressive advertising so that the customer can distinguee between one

service sector and another. And finally fifthly, marketing is analyzing,

planning and controlling.

The concept of market is very much impotent in marketing.

The American Marketing Associated defines, A market as the aggregate

demand of the potential buyer for product/service.

IN SIMPLE WORDS,

Market is a place where buyers & sellers meet directly or

indirectly for the exchange purpose & an exchange may be of goods or

services. Here place may be real or virtual.

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M.D.

Director of

Marketing Department

Business Development

Department

Employees

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MARKETING SEGMENT & MARKET

RESEARCH

Marketing Segment also means the channels and areas of

distributor. It means that where is the market of the goods produced.

The market of the product of this corporation i.e. magically

Segment is towns people and villages people who are the new

entrepreneur, who started new business in the Gujarat. Also GSFC give

more facilities to their customers. There are many other scheme which are

helpful to people.

Market Research is the way or a process which is understood

to find out various details of the product in the market. It includes the

customers opinions, demands & supply of the product and such other

malls.

GSFCs staff member themselves goes to market and gathers

applications of different schemes from the customers. So, by this way

they are getting benefits by using marketing research process for the greatopinion of customers.

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SERVICES & SERVICES RELATEDSTRATEGIES

Product means the final output manufactured by the company

and which can be used by its customers.

Products related strategies means to make long term planning

for the product. It means to get the target for the company and, also tomaintain that how the company has to achieve target and in whats the

time limit.

GSFC is introducing the scheme as per the time. If he think

that the time to launch the new scheme, he will. He gives first priority to

the small and medium scale industries. Other schemes are also make to

help their customers. Also the new entrepreneurs are invited by the

GSFC.

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PROMOTION MIX / ADVERTISIEMENTS

Promotion mix is one of the most important mixes of the

marketing mix. Without promotional activity, marketing or selling of any

product becomes very though.It plays an important role in the business.

Promotional activity including

ADVERTISING

PUBLICITY

PERSONNEL SELLING

SALES PROMOTION

This company invests 2% in advertisements. It advertises

through mediums like Banners, Sign Boards, Booklets, and Pamphlets

etc. It helps a lot to the company in increasing its sales and thus earns

profit.

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COMPETITIONS

Competitions are the one who are the business rivalry of the

company. Competitions are the one who are in the same field doing same

business. There is very cut throat competition.

This corporation deals in the business of disbursement of loans.

Its major competitions are the Nationalization Banks and all others

financial institution.

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CONTENTS OF

FINANCE DEPARTMENT



3 Finance Planning 56

4 Capitalization 57

5 Capital Structure 58

6 Fixed & Working Capital Management 59

7 Receivable & Cash Management 60

8 Profits & Profitability 61

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INTRODUCTION

Finance is the fuel of administration. Without adequatefinancing any business enterprise cant raise its potentials for growth and

success. And it would be worthwhile to recall what Henry Ford once

remarked, Money is an arm or leg. You either use it or lose it. This

statement through apparently simple and quite meaningful, it brings home

the significance of money or finance. In the modern money oriented

economy finance is one of the basic foundations of all kind of economic

activities.

Finance Department is also called accounting department. It is

the department which deals with the money matter. It also prepares the

final accounts and maintains the records of all the business transaction. It

also helps the company to know where it is progressing of otherwise.

Finance means procurement of funds & their effective utilization in

business.

In this corporation, one director of the corporation is givencomplete responsibility of this department. The control and directs his

subordinates which includes Supervisor, Employees and Officers. They

also maintain the day to day business transaction. They also produce then

how much the company has progressed.

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M.D.

Director of

Finance Department

SR. Officers

JR. Officers

Routine

Work Department

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FINANCIAL PLANNING

Financial planning means deciding in advance the financial

activities to be carried on to organization. So, the basic purpose of

financial planning is to make sure that adequate funds are raised at

minimum cost and they are used widely. Proper planning of the business

organization on one hand and on the other hand to allow a fair return to

their contribution.

Thus financial planning includes the following.

Determination of financial objectives.

Formation of financial policy.

Development of financial procedure.

In this corporation, this work is under the finance department.

There are financial planners and there are even the managers or the

supervisor who separately work upon the routine i.e. day to day work of

the corporation. The head (director) of the department takes thesuggestions of the other directors and then plans out the financial

structure and also decides how and when and where to use money and

where to invest money and to spend where. Thus planning is done in this

manner.

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CAPITALIZATION

It means the way the capitalization of the company is gathered

in the intent stage of the companys formation. And then this capital to

been illustrated rally invested in different assets.

The Gujarat State Financial Corporation in the kind of Public

Sector Company therefore it collects all its money from Government and

SEDBI. If the (money) capital is still less it obtains from the IDBI and

Market Bonds.

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CAPITAL STRCUTURE

It means that how the capital of the business is here divided. It

also tells about how much is the fixed and working capital is there. It also

tells that how much is the ownership capital and how much is the

borrowed capital.

Capital structure decision is yet another important are under

financial management. Capital structure refers to the mix or proportion of

firms permanent long term financing represented by debt preferencemust ensure the maximization of wealth of shareholders so even the

capital structure decision must be taken in light of wealth maximization

objectives.

CAPITAL STRUCTURE = Long Term Debts

+ Preference Share Capital

+ Equity Share Capital

+ Reserves.

Share capital :-89,11,40,000

Reserves & Surplus :-96,60,54,477

Other Liabilities :-1,18,19,94,643

Fixed Assetsa.Own Assets :-11,12,92,156

b. Lease Assets :-11,57,38,829

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FIXED WORKING CAPITALMANAGEMENT

There are mainly two types of capital fixed capital and

working capital. The fixed capital is the one which is invested or used

very rarely while working capital means the capital used in day to day

life. To manage this capital is a difficult basic and the process of

managing them and to plan how to use them is called management of

fixed and working capital.

The head of the department who is an experienced person and

director of the corporation handles this difficult task in a very well

manner. The plans out and manages the both the easily in a wonderful

manner. It does this work very systematically and effectively.

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RECEIVABLE & CASH MANAGEMENT

Receivable management means to collect the money from the

debtors or the customers. This need has to be done very carefully and also

requires skills because company also have to take money from the

customers and dont have do loose them by behavior badly with them.

GSFC dose not receive any amount or money form the

customers and debtors. He is borrowing all the money from the SIDBIand IDBI.As it is an important matter of the corporation so this work is

done by the head of the department and his assistant who is opened.

Cash management is done by another officer of the

corporation. He is appointed mainly for this work only. He has to manage

the cash.

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PROFITS & PROFITABILITY

Profits are the thing for which the most of the companies works.

It is the gain which company gets after count all the expenses. Its lend of

surplus amount which company earns through its business.

Gujarat state financial corporation was going on the loss. Last

two years, he has given the totally loss situation.

Profitability means the financial gives. It also means excess of

reliable over outlay. It means yielding profit.

Corporation was gave the loss so there is no chance for the

profitability.

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CONTENTS OF

PERSONNELDEPARTMENT



3 No. of Employees & Working Hours 664 Recruitment & Selection 67

5 Training and Development 68

6 Employee Remuneration 69

7 Employment Benefits & Services 70

8 Performance Appraisal 71

9 Promotion & Transfer 72

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INTRODUCTION

Personnel management in any organization, it may be public,

privet or co-operative constitute, perhaps the most vital assets of that

organization. An organization will fail if its personnel management is not

competent to execute the work assigned to them. There is no getting away

from fact that personnel management represent a subsystem which

dominants all other subsystem to the organization.

Moreover, people are the only assets of an organization that

appreciate over a period of time while all the other assets depreciate. The

more an organization is investing in Personnel management, the greater

the return from the investment is likely to be and it has been rightly

pointed to in one of the books of inter national co-operative alliance,

The gains accruing out of structural reforms can be best capitalized onlyit the personnel maintained by the co-operative institution are in a

position to execute the policies effectively. This implies the need and

necessity of proficient capable personnel management, which is one of

the primary aims of the personnel management.

According to national institute of personnel management of

India, Personnel management concerned with people at work & with

their relationship within the organization it seeks to bring together men &

women who make you an enterprise enabling each to make his own bestcontribution to its success both as an individual as a working group.

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M.D.

Director of

Personnel Department

Senior Officer

Junior Officer

Clerk

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Peon

NO. OF EMPLOYEES &WORKING HOURS

In Gujarat State Financial Corporation, the employees are

decided by the Government. In this corporation, the employees arecategories in to two parts. (1) Senior (2) Junior

No. of employees : 400 Persons (Over all GSFC)

Working Hours : Transaction Time: - 10:30AM to

6:10PM

Saturday:-Second & fourth SaturdayHoliday.

Off Days: - Sunday and all the

Government Holiday

In Rajkot the numbers of employees are 45.

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RECRUITMENT & SELECTION

Among the function of personnel manager, one man function

is to procure best people for their organization, means search of

prospective employees to suit the job recruitment. A firm has to pass

through well and good recruitment process for having best personnel

management this recruitment can be possible through many sources.

As per requirement, the corporation has recruited the

employees. They also recruit employees by transfer and promotion.Generally as per the recruitment of the job they give advertisement in

newspaper and collect the pool of application.

Managing people is not easy but it can be made easier if you

make sure that you have selected the right people in the right place. Andalso it said, Selection of people is easy but selection of right people is

difficult task.

The selection procedure is concerned with securing relevant

information about an applicant is secured. The objective of selection

process is to determine whether the applicant meets the qualification for

specific job and to choose the applicant who is choose the applicant who

is most likely to perform well in that job. Generally they are selected

through influences in addition with their capability and talents.

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TRAINING & DEVELOPMENT

Training is the process of increasing the knowledge and skills

for doing a particular job. It is an organized procedure by which people

learn knowledge and skills for a benefit purpose. The purpose of training

is basically bridge the gap between job requirement and present

competence of an employee.

Training is aimed at improving the behavior and performance

of a person. It is a never ending or continuous process. In any

organization there should be proper training program to improve

employee resources, as well as organization development.

On the other hand development is long term education process

utilizing a systematic and organized procedure by which managerial personnel learn conceptual and the critical knowledge for general

purpose. So in the any organization the importance of the training and

development is very vital, nobody can ignore it.

The corporation undertakes the training procedure. It imports

the training to the required candidate personally. In GSFC, the mostly

training session is 15 days for the few experiences person or who has a

well experienced person there is no need to training.

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EMPLOYEE REMUNERATION

Remuneration is the compensation of an employee receives

in return for his or her contribution to the organization. Remuneration

occupies an important place in the life of an employee. Standard of living

of employee states in the society, motivation, loyalty and productivity

depends upon the remuneration. For the employee remuneration is

significant because of its contribution to the cost of production. For

personnel management, remuneration is the major function.

As far as it is concerned with the Gujarat State Financial

Corporation, there is specific policy of employee remuneration formed by

govt. and SEBI, and itself also. So, the management of employee

remuneration there is a specific administration department, which cares of

wages and salary and all things about remuneration. This all matter ishandled and look by the head and assistants of the finance department.

They also maintain the Bonus Register, Salary Register etc.

As far as GSFC is concerned that is specified department

who cares about employee remuneration. Apart from salaries they are

also provides bonus (one month salary) also provides provident fund

scheme.

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PERFORMANCE APPRAISAL

Appraisal is the evaluation of worth, quality or management. It

is a systematic evaluation of personnel by supervisor of other departments

with their performance. It is also described as merit rating in which oneindividual is ranked as better of worse it comparison to other. Basic

purpose in this merit rating is to ascertain an employees eligibility for

promotion. For personnel management a performance appraisal is an

important tool. Performance appraisal means persons performance in the

company.

The GSFC is the government department so every time the head

department checks all the activity of the persons performance in time to

time.

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PROMOTION & TRANSFER

PROMOTION:-Promotion refers to advancement of an employee to a higher

post carrying grater responsibilities higher status and better salary. It is

upward movement of an employee in the organizations hierarchy to

another job commanding grated authority higher status and better

working condition when an employee is assigned a higher level job with

more pay and powers he is said the promoted promotion may be

temporary or permanent depending upon the need of the organization.

The GSFC promote its employees on the basis of seniority,

ability, performance, capability, merits and qualification.

TRANSFER:-A transfer refers to horizontal or literal movement of an

employee from on a job to another in the same or organization without

any significant change in status any pay.

It has defined as A literal shift causing movement of one

individual to another. Usually without involving any marked change in

duties as responsibility will needed of compensation.

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In GSFC Transfer of employees happens in rare case. Here,

generally, positive Transfer takes place, means of any employees wants to

Transfer from one place to another place.

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SWOTANANLYSIS

S.W.O.T. analysis means overall evaluation of a firms strengths,

weaknesses, opportunities and threats. S.W.O.T. analysis consists of

making analyses of the external environment and internal environment.

External Environment Analysis::-

External environment consists of out of the firm such as

government, competitors, etc. Such environmental analysis is

necessary because it affects the firm or an organization.

Internal Environment Analysis::-

Internal environment consists of inner sides of the firm such

as personnel, finance, etc. Such environmental is necessary because it

affects the firm or an organization.

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STRENGTHS WEAKNESSES

S.W.O.T.

ANALYSIS

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OPPORTUNITES THREATS

S = Strengths

W = Weaknesses

O = Opportunities

T = Threats

STRENGTHS:-

Term loan for maximum time period.

Increase the employment in our state; and also in the production,

manufacturing and service sector.

Encouragement for middle class and lower class people.

Subscribe as a Channel agency.

Fully computerization and automation.

WEAKNESSES:-

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Lazy organization.

Minimum Grantee.

Loan sanction in Remote area.

Recovery problems.

Loss in the Corporation.

Less advertisement.

High rate of Interest.

Natural climates.

OPPORTUNITES:-

Introduction of various differentiate services.

Bank can introduce new services like, NRI Loan, Loan for

Physically Handicapped

There is lots of opportunity in giving finance.

THREATS:-

Changes in government policies and in rules and regulation

regarding bank can be disturbed in regular services of bank.

Its major threats are the Nationalization Banks and all othersfinancial institution.

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The future plans of Gujarat State Financial Corporation are:

Construction of Commercial Complex, Showrooms & Sales

outlets.

Departmental Stores, Shopping Malls & Tourist Homes

Setting up of Vocational Training Centres for Imparting Technical

Skills

Setting up of Marriage / Convention Halls and Community Centres

(part of Hotel Enterprises)

NRI Loan, Loan for Physically Handicapped

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In this world, every individual is striving for protection. No

one is perfect. But constant Endeavour for excellence leads towards

perfection. The world is changing rapidly especially in the area of

business. However top becomes a world leader one should not remain

unaware of self-weaknesses.

They should focus more on advertisement.

They should some efficient in their works.

There is need to improve web site of Gujarat State

Financial Corporation.

They should produce more innovative features in their

services.

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The dictionary meaning of conclusion is to end Orin other

word at the end to conclude whole the description a few words.

As I have achieved my largest in preparing the project report

by visiting Gujarat State Financial Corporation and learning the practical

skills of management. I hereby declare that my knowledge about

administration and management has improved by the help of member of

corporation.During my visit all the staff members are found good & co-

operative.

We wish that the firm earn success in its entire venture & has a

bright in the future.

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To complete the project on Gujarat State Financial Corporation

successfully I have referred following books.

BOOKS:-

Marketing Management

- S. A. Sherlekar

Finance Management

- B. S. Shah

Personnel Management

- C. B. Mamoria

WEB SITES:-

www.gsfc.gujarat.gov.in.com

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