INTRODUCTION Sakthi finance was incorporated on 30th march 1955 as Pollachi creidt society as groups in house financing for

TELCO dealership. The sakthi groups in association with the public and through its agro based industries education and charitable institutios have helped the company to become an edifice mutual trust and faith. The company is one of the leading NBFC with 35 branches in India. The company made its public issue in 1984. During the period from 1980-1990 the main focus was on mobilizing funds or retail sources from 1994 further trust was given in commercial vehicle finance segment. The business carried on by the company and subsidiaries are as follows. Acceptance of deposits Hire purchases financing Leasing of vehicles, machinery and industrial equipments. Mortgage financing Bill discounting and other finance related activities.

NON BANKING FINANCIAL INSTITUTION A NBFC is a company (under the companies act, 1956) which engages in the business of providing loans, advances, acquisition of shares, stock/ debentures securities issued by the government or local authority or other securities of live marketable nature, leasing, hire purchases, insurance, business and chit business. SALIENT FEATURES OF THIS ORGANIZATION ARE Quick processing No service charges Speedy disbursal Simple documentation Personalization services

STRENGTH OF SAKTHI FINANACE It is a part of sakthi group one of the reputed group of southern India headed by Dr.N.Mahalingam. Customer base of more than 5 million members and experience in hire purchase financing for more than 45 years. Business focused executives at all levels. Availability of infrastructure to place funds through its wide network of branches. Valuable dealership network for maruthi TELCO and Bajaj vehicles. MARKERING STRATEGY SFL has outsourced this process of retails resource mobilization to its associate company called sakthi financial service limited. Sakthi financial service limited has employed around 30 field staff in Tamilnadu to market the fixed deposit and nonconvertible debentures scheme of sakthi finance limited. Potential customers are contacted and explained about the schemes and deposit is mobilized. The marketing activity for lending is directly handled by Sakthi finance limited. The company has 35 branches in Tamilnadu, Kerala, Andhra Pradesh, Karnataka and Pondicherry. Each branchs headed by branch manager. Depending upon the potential in the territory, 4 to 6 marketing officer are attached to each branch. At present there are 123 marketing officers in the roles of the company. There are responsible for lending money in that area and also for collecting the installments. These officers are given required marketing support, by holding special customer meets and campaigns. VISION AND MISSION OF THE ORGANIZATION Market share among the top 3 re- financier 10% net margin Most preferred financier of customer choice 65%of competency index To partner the progress of small and medium road transport operators

 To provide End to End Service leading to total customer solution with speed, flexibility and integrity. COMPETITORS OF SFL Sundaram finance limited Cholamandalam DBS finance limited Shriram Transport finance company limited Bajaj Auto finance limited Mahindra and Mahindra financial service limited

ORGANISATION CHAR
Managing Director

Operation & Management Services

Shared Services

President

Finance & Accounts

Resources

Advances

HRD ESW OMS

President (F&A)

GM

GM

AGM

Finance

Account

Secretarial

HR ADMIN

Development

Maintenance

GM Operation DGM-CAP

CARE-AGM CAMP-DGM CARE-DGM CARE-AGM

DEPARTMENTS CARE CAP CAMP FINANCE AND ACCOUNTS HUMAN RESOURCE DEPARTMENT CARE : CUSTOMER ACQUSITION AND RETENTION The term indicates planning the marketing function in a systematic focused manner for customer requisition and retention. Objective To formulate CRM strategies for generating volume of customers, satisfy their need, maintain and retain them in such a way that they bring in new customers. To translate, strategic objectives targets and goals of the organization as planned relating 5 prospects and customer to branches. To co-ordinate with branch on target fixing and achievement of target. To build and maintain a customer database and keeping them informed about the new schemes formulated. CAP : CUSTOMER APPRAISAL PROCESS This process team takes care of appraising the profiles of all intended borrowers, who have the capacity and intention to repay the loan. The appraisal process is centralized and handled by head office. All the branches are internally hence the appraisal process is carried out faster.

CAMP : CUSTOMER ASSET MANAGEMENT PROCESS The critical success factor of an NBFC. It ability to manage the portfolios and recover the money lent on due. Thus this team at Head Office continuously monitors the recovery and officers support to branches on exception accounts, which pose collection problems. FINANCE AND ACCOUNTS To monitor all the financial activities To provide secretarial assistance to the functional head in day tooperation To render required secretarial assistance to functional supervision and heads. In charge for safety custody of all files, assets, documents etc. Maintaining and updating files, records and documents. HUMAN RESOURCE DEPARTMENT Sakthi finance limited currently has total manpower of 400 persons. HR process is one of the core processes in the company. HR department is strengthened with qualified HR professional and the department consists of seven members. FUNCTIONS OF HR DEPARTMENT STAR Function : S Selection and Recruitment of right candidates T Training and Development for existing employees and new entrants. A Appraisal and Recruitment through compensation, career growth and Separation R Retention and Recruitment through compensation, career growth and separation

Apart from this, HR department takes care of establishment functions such as, statutory welfare functions, wages and salary and administrative functions. The company has a performance based appraisal and remuneration system to compensate and reward the employees. Regular performance feedback is given to employees on their performance based on a half yearly / yearly appraisal process. The company has taken necessary steps to assist the employees of the company in planning the employees individual growth within the company. The company provides good opportunities for employees who have a track record of high performance and potential to progress within the company. PROFESSIONAL INSIGHT This topic describes, various knowledge gained by the field trainee in sakthi finance limited. It highlights about the various functions of human resource department they are : RECRUITMENT The recruitment is the process of identifying the source for prospective candidates and to stimulate to apply for the job. Success of organization is selecting right employee hence recruitment considered as important process to perform. In SFL, through various sources like employee referral scheme or through advertisement, employees will be called for interview and their skills will be analyzed through following prelims and technical sessions. Mainly, it includes personal profile analysis of the candidates and psychological tests. Those tests are conducted for the candidates, to whom certain questions will be given and asked to fill it in a prescribed hour. Basically this process concentrates on the marketing officers.

TRAINING AND DEVELOPMENT A person however carefully selected is not molded to specification and rarely meets the demand of his jobs. Thus training is provided to the select candidates to mold them, according to their nature of job. Lt helps to update their skills; Training targets on identifying the problem in them and finally it helps to motivate and develop their attitude towards their job.

STATUATORY MEASURES The Sakthi Finance was registered under Shops and Establishment Act of 1947. THE TAMIL NADU SHOPS AND ESTABLISHMENT ACT 1947 An act to provide for the regulation of condition of work in shops, commercial establishments, restaurants, theatres and other establishments, and for certain other purposes. Its main feature of the act are set below: The bill will be apply to persons employed in shops, commercial firms, establishments, restaurant, theatre, etc, but will not apply to certain establishments and persons under the central or provincial Government etc. Provision has also been made as in the weekly holidays act, 1942, for granting to the persons employed a compulsory holding for one day in a week and if required by government, half holiday also in a week. Prohibit is the employment of children i.e., persons who have not completed 14 years ,in shops, commercial firms, restaurants, etc. It contains provisions with a view to securing the health and safety of the staff, and provides for the grant of annual holidays with pay to them.

 The provisions are intended to ensure prompt payment of wages and prohibition of unauthorized deductions from wages and follow mainly those of the payment of wages act, 1936. Suitable penalties have been prescribed for contravention of the different provision of the bill. The following legislation are followed in this agency. They are: Employee provident fund act 1952 The payment of gratuity act 1972 The payment of bonus act 1965 Employee state insurance act 1948

THE EMPLOYEES STATE INSURANCE ACT 1948 The Act confers benefit on employees against sickness, maternity and other disabilities. These benefits are secured by financial contributions to the scheme both by employers and employees. The ESI Act is applicable for the manufacturing and service sector also which is register by the government. The organization register in ESI Act 1948 only in case of 10 or more employees working with power or 20 or more employees working without power the organization is eligible to register in this ESI Act. The Act applies to establishments like Shops, Hotels, and Restaurants, Cinema, Theatre, News paper establishment ,Road Transport etc, The ESI Act, 1948, all persons employed for wages in or in connection with the work of a factory or establishment (irrespective of the fact whether they are manual, supervisor or salaried employees) are entitled to disablement benefit provided their remuneration does not exceed Rs. 15,000 per month. ESI Contribution : Employees contribution : 1.75 %

Employer contribution : 4.75% Total Contribution Period 1.April to September 2.October to March 6.50 % Benefit Period January to June July to December

The Act provides for 6 type of benefits to which the insured persons, their dependants or certain other persons are entitled. These benefits are as follows : 1.Sick benefit . 2.Marernity benefit. 3.Disablement benefit. 4.Medical benefit. 5.Dependents benefit. 6.Funeral expenses. ESI PROCEDURES THOUGH ONLINE Registration of new employee are made through online itself by filling from 1 & form 3. Every registered member are provided with PECHAN CARD. The identify number will be used wherever the persons is employed. Contributions and returns are also made through form 5. Thus online service make the work easier and quick. Thus various information gained from the legislation followed in the company.

THE EMPLOYEES PROVIDENT FUNDS ACT 1952 The schemes of provident funds, as a social security measure for the employees. The Act is applicable to whole India expect the state of Jammu and Kashmir. PF Contribution : As per this act employer and employee contribution from their salary to provident fund is define they are : a) Employee contribution 12 % to the basic ceiling of their salary Rs.6500/b) Employer contribution 13.6% which includes, Contribution 12% Administration charges 1.10% EDLI charge of 0.5% and EDLI administration charge 0.01% To the basic ceiling of their salary of Rs.6500%- or whichever is higher. Form that 12% the employer contributes 8.33% for pension and 3.67% for provident fund, which constitutes minimum amount of Rs.541. THE PAYMENT OF GRATUITY ACT 1972 Gratuity is payable to employee on his death or on retirement or termination of his employment. It came into existence on September 16, 1972. Gratuity Calculation : Gratuity = Last drawn salary *15*No. of years of service 26 a) For piece rated employee gratuity can be calculation on the basis of average of past 3 months instead of last drawn salary. b) For seasonal employee it is calculated. Gratuity = Last drawn salary*7* No. of seasons per year 26

c)Maximum gratuity payable under the act is Rs.3,50,000/- to Rs.10,00,000/d)Every salaried person, who has completed 5 years of government or private sector service, is eligible for half a months salary as gratuity for every completed years of service. e)Every employer with more than 10 salaried workers is mandated to provide gratuity to the eligible employees. THE PAYMENT OF BONUS ACT 1956 This Act is the outcome of the recommendation made by tripartite commission. It is to maintain peace and harmony between labor and capital was enacted in the year 1965. Employee who worked in the establishment for not less than 30 days is eligible for bonus. A minimum bonus not less than 8.33% of the wages and maximum of 20% shall be given. Within 8 months from the close of accounting year the bonus should be paid. Recent amendments are: To raise the eligibility limit for payment of bonus from the salary or wage of Rs 3500% - to Rs 10,000 per month. To raise the ceiling for calculation purpose from the salary or wage of Rs 2500/- to Rs 3500/- per month. OTHER ACTIVITIES Office timing & Attendance system : i. ii. Uniform office timing across the company. Attendance is recorded through punch card system at corporate office.

iii.

For Branch Attendance is recorded through web based system.

Office timing : i. ii. iii. iv. v. Working Hours 8hrs per day. General Working time -9.00 Am 5.00 Pm. Working Days 6 days per week. Lunch break hrs 1.00 Pm 1.30. Pm. Weekly Rest Day Sunday.

The sakthi finance ltd register under the Tamil Nadu shops and establishment Act .so as per the act leave rules applicable to the company. Leave Rules: 1. National Holidays 4 days 2. Festival Holidays 5 days 3. Casual leave : i. All confirmed employees are eligible for 12 days of casual leave in a calendar year. ii. The trainees are not eligible for casual leave. 4.Sick Leave : i. ii. All employees including trainees and probationers are eligible for 12 days of sick leave in a calendar year. Employees joining after 1st of January of a year will be eligible for sick leave on a prorate basis.

5.Earned Leave (Privilege Leave) : i. ii. All employees including trainees and probationers are eligible for 12 days of earned leave for a calendar. Employees joining after 1st of January will be eligible for earned leave on a prorate basis.

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Earned leave will be credited to the account of every employee on 1st of January every years in advance.

CONCLUSION : These are the informations gained and various works done in the fieldwork. The trainee understood lot of things about human resources department and various tactics involved in functions of human resource manager in this sector. The human resource department is an important faction, which affects the productivity of the industry and service sector also. The trainee learned the valuable information that how to handle the activities related to human resource field. The training which trainee undergone, for past three month was really useful and the trainee was so enthusiasm to gain knowledge and information related to HR activities in the Sakthi Finance ltd in the training period.