ALL INFORMATION OF BANKING CASH CREDIT.

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A
PROJECT REPORT
ON
FINANCIAL SERVICES FOR FUND BASED CREDIT FACILITY IN THE
FORM OF CASH CREDIT
FOR
NIKUL SHAH & ASSOCIATES
SUBMITTED TO:
MARWADI EDUCATION FOUNDATION GROUP OF INSTITUTIONS
Master of Business Administration
Under
Gujarat Technological University
Under the guidance of
Faculty guide: Company guide:
Asst. Prof. Krishna Unadkat CA Nikul Shah
Submitted by:
Kalu Parmar
Enrollment No: 138270592094
MBA semester – 3
Marwadi Education foundation Group of institutions
MBA Program
Affiliated to Gujarat Technological University,Ahmedabad

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PREFACE
Practical training is a step to bridge the gap between the theoretical studies of
management and its practical applications. It is very easy to learn theoretical subject in
classroom, but many difficulties are faced when they are implemented in the market.
Training thus aims at giving practical exposure to the students, as it is well said that
experience is the highest qualification´ and in the project students acquire the same.
The demand of management is very high in industries. It is obvious that success of any
business depends upon the management of different functions of business and for that,
the person should have both theoretical and practical knowledge. In order to get this
practical knowledge and to get in touch with business administration and its
environment this practical training is very important. Training is an integral part of MBA
students have to go for training for 8 weeks moreover they have to prepare report on
the same training. I got an opportunity to do my training at NIKUL SHAH CONSULTANT
FIRM, which is very popular for the financial service advisory and financial planning for
the people who want to invest money to get substantial profit with low risk. I have worked
with sincerity and dedication in this project. Any shortcoming and inability on my part is
regretted.

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ACKNOWLEDGEMENT
I take this an opportunity to extend my sincere thanks to NIKUL SHAH
CONSULTANTS´ for offering me a unique platform to earn exposure and earn
knowledge in the field of finance and learn the day-to-day activities that are carried out
in the company.
I am thankful to Mr. Nikul shah (Director of NIKUL SHAH Consultants) and all
employees of NIKUL SHAH Consulting firm for helping and guide to prepare the project
report.
I would like to thank, Dr. S.Chinnam Reddy (Dean, Faculty of Management, MEFGI ) for
providing me with an opportunity to study this project and Ms. Krishna Unadkat, Asst.
Prof, MEFGI for guiding me effectively to complete this project.

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DECLARATION
I hereby declare that the project work entitle LOAN SYNDICATION AND
FINANCIALSERVICES FOR FUND BASED CREDIT FACILITY IN THE FORM OF
CASH CREDIT´ submitted to MARWADI EDUCATION FOUNDATION GROUP OF
INSTITUTE RAJKOT, as a pre-requisite for the partial fulfillment of MBA Programmed,
is a record of original work done by me, under the supervision of Mr. NIKUL SHAH from
Nikul shah Consultants in Ahmadabad.
The present work is completely original to the best of my knowledge.

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EXECUTIVE SUMMARY
The main purpose of the project is to understand the whole concept of loan syndication
&financial service in the form of cash credit, and its methods and needs of loan
syndication &financial service in the form of different committee recommendation and
methods. To know the needs and methods of loan syndication & financial service for
term loan and working capital loan in small- scale industry as well as large-scale
industry and various guidelines issued by the RBI for banking sector for Project finance.
The project has been divided into two parts. In initial chapters of the project was given
to general concept and fundamental principles for loan syndication, method of loan
syndication for cash credit, requirement of project financing in various types of
industries, the finance requirement to the borrowers and the various approaches
adopted by the borrowers for selecting the mode of financing. The later chapter covers
various methods of loan syndication and its sub methods i.e. working capital limit in
project financing. Funding the requirement of the term loan and working capital by the
following procedures of Credit Monitoring Assessment (CMA) for funding of short-term
loan and long-term loan. And finally various committees recommendation and current
scenario of the MPBF were elaborated in detail. The survey was done in GIDC vatva
and GIDC CHANGODAR AHEMADABAD, it was in the form of descriptive method
(sampling and questionnaire technique). Which is helpful in getting the perception of the
businessmen toward the financial service specially for cash credit. The tax benefits
which can be drawn from the loan fund and help the businessmen to understand them
that how they are missing the tax benefit if they are not using the loan fund

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INDEX
Sr no Particulars Page.
No
part-1 General information
1 Industry overview
1.1 History
1.2 Growth and development
1.3 Performance and other statistical data
1.4 Market players in the industry
2 company overview
2.1 History
2.2 Growth and development
2.3 Performance and other key performing data
2.4 Product/ service overview
2.5 SWOT and / or PESTEL analysis
Part-2 Research work
3 3.1 Back ground of the study
3.2 Review of literature
3.3 Statement of problem
3.4 Objective of study
3.5 contribution and learning from the project
4 Research methodology
4.1 Hypothesis [If applicable]
4.2 Research design
4.3 Sampling Method
4.4 Sampling Size
4.5 Sources of data
4.6 Data collection method
4.7 Data collection instrument
4.8 Data collection method /Data Data processing
5 Analysis and interpretation of data
6 Results and findings
7 Suggestions and conclusion
8 Limitations of the study

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9 Scope for further research
10 Bibliography [APA Format compulsory]

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Financial institutions are those organizations that are involved in providing various
types of financial services to their customers. The financial institutions are controlled
and supervised by the rules and regulations delineated by government authorities.
Some of the financial institutions also function as mediators in share markets and
debt security markets. There are the principal function of financial institutions is to
collect funds from the investors and direct the funds to various financial services
providers in search for those funds.
Financial institutions deal with various financial activities associated with bonds,
debentures, stocks, loans, risk diversification, insurance, hedging, retirement planning,
investment, portfolio management, and many other types of related functions. With the
help of their functions, the financial institutions transfer money or funds to various
types of economy and thus play a significant role in acting upon the domestic and the
international economics scenario.
For carrying out their business operations, financial institutions implement different
types of economic models. They assist their clients and investors to maximize their
profits by rendering appropriate guidance. Financial institutions also impart a wide range
of educational programs to educate the investors on the fundamentals of investment
and also regarding the valuation of stock, bonds, assets, foreign exchanges, and
commodities.
Financial institutions can be both private and public in nature.
financial institution is that type of an institution, which performs the collection of funds
from private investors and public investors and utilizes those funds in financial assets.
The functions of financial institutions are not limited to a particular country, instead
they have also become popular in abroad due to the growing impact of globalization.

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Growth and development
The growth of financial sector in India at present is nearly 8.5% per year. The rise in
the growth rate suggests the growth of the economy. The financial policies and the
monetary policies are able to sustain a stable growth rate.
In many countries, Development Financial Institutions (DFIs) have been major conduits
for channeling funds to particular firms, industries and a sector during the latter’s
process of development. In India, DFIs have been a more important source of long-term
funds (mainly debt) for industry than bank loans or other sources of debt. Using data
from the Indian corporate sector, we evaluate the role of DFIs in India for the period
1989-97 by examining how firms' investment decisions are affected by their ability to
access DFIs. We find that firms that had prior access to DFIs continue to receive funds
from these sources only if they can be classified as a priori more financially constrained.
Access to DFIs for funds spurs investment. These results suggest that DFI lending is
not governed by considerations of lobbying, precedence or even to sponsor particular
types of projects that might be socially desirable but not privately profitable. Rather, the
primary role of DFIs has been to reduce financial constraints faced by firms. We also
find that the drastic contraction of long-term bank lending to industry in India in the early
nineties had adverse consequences for firms that were particularly bank-dependent, but
only if these firms could be classified as a priori more financially constrained. Together,
these results support the view that in contrast to firms in well-developed capital markets,
in emerging markets, firms with growth potential are likely to rely significantly on debt
financing, especially debt that is channeled through financial intermediaries.

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INTR ODUCTION TO THE FINANCIAL SERVICE FOR FUND BASED
CREDIT FACILITY IN THE FORM OF CASH CREDIT
The syndication of loans is an internationally practiced model for financing credit
requirements. The banks are free to adopt syndication route, irrespective of the
quantum of credit involved, if the arrangement suits the borrower and the financing
banks.
Financial service has become one of the core activities of banks in the recent years.
With the growth in the economy and the revival in the industrial sector coupled with the
increasing role of private players in the field of infrastructure, more and more banks are
entering into the project finance area.
This examination is specially designed, in collaboration with the Institute for Financial
Management and Research (IFMR), Chennai, to familiarize candidates with basic
issues arising in financing projects, as well as risk analysis and risk mitigation
methodologies with a specific emphasis on structured financing.
The financing of long-term infrastructure and industrial projects based upon a complex
financial structure where project debt and equity are scope of the project financing.
Arranging short-term financing, controlling cash, managing accounts receivable,
inventory management are function including in project financing of finance
management. A thorough understanding and application of all these aspects is
necessary to be able to maintain the optimum level of finance within the firm. The
requirement of the loan is depending upon the nature of the business.
The business may be small or large, but the requirement depends on the operation of
the business it means the cycle of the business. If the operating cycle is longer the
requirement of finance would be longer of the business.
According to the requirement financing agencies, companies and banks provided
finance to the borrowers in the form of fund based and non-fund based. Managing cash

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inflow and out flows efficiently for the optimum use of capital and to release the finance
blocked in inventory and receivables constitutes the single largest problem have
in business.
As such the solution on this problem is that to borrowing the finance from Banks,
financial institute etc. has increased tremendously in all aspects.

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OVERVIEW OF COMPANY
ABOUT THE COMPANY
Name of the company :- NIKUL SHAH & ASSOCIATE
Establish year:- 1997
Legal status of firm:- Sole Proprietorship
Nature of business:- Service Provider
Contact person:- Mr. Nikul Shah
Telephone no:- +91 7926426151
No of employees:- 10 employee
Weekly off day:- Sunday
Address:- 302,SAMPANNA,opp.havmor
restaurant, Navrangpura,
Ahmedabad-380009
Web-site:-
Email id:- nikulca@gmail.com

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COMPANY PROFILE
Nikul shah Consultants is a team of Professionals having expertise in arranging loans
and Finance from Banks for Industrial, Manufacturing, Trade and Services Sectors. It
provides concrete solutions to all the financial needs to grow the business.
It is PASSIONATE ± SUPPORTIVE ± DEDICATED- COLLOBORATIVE to understand and
arrange for the financial needs and help to enhance the financial stability.
Integrity to the Core:
Integrity is fundamental to the services. It adheres to moral and ethical principles in
everything it does as professionals, colleagues and corporate citizens. The reputation
based on high standards of integrity which is invaluable.
Focus on the Client Need:
It always put the interest of clients before its own. It understands the client needs, seek
new opportunities for them, address them and deliver unique solutions as per their
expectations. The fulfillment of all financial needs of its clients is the biggest reward
for it.
Innovative Solutions:
It analyzes the client’s financial needs and develops solutions for the most complex or
the simplest, the biggest or the smallest financial transactions, whether for individuals or
institutions. Creativity and innovation are key factors to everything it do.

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PROFESSIONAL TEAM
Genuine, Honest, Fast, satisfactory professional advice on Loans and Finance From
Banks
Expert advice on Financial Planning
Dedicated professional people with vast experience and expertise in every business
sector.
Panel of Accounting, Finance, Corporate, Legal, Banking and technical experts.
Observance of highest professional ethics and transparent services
Long term relations with Banks and Financial Institutions
VISION
The vision of nikul shah consultant is to become the most transparent, respected &
trusted loan arranging company providing best solution to every financial need of clients
with an all India recognition accreditation.
MISSION
The mission is to give you a whole new experience in the field of availing loans and
finance from banks wherein it intend to provide all types of loan and finance syndication
service to the best satisfaction of its clients. The philosophy is to provide advisor
services to make your finance work and earn money for you. For us anything worth
doing is worth doing wholeheartedly only. To help the client realize their dream by
raising equity capital or by arranging loan finance for
1) starting new business,
2) national and international business acquisition
3) restructuring of equity, debt, loan and finance
4) Reduction in financing cost.

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What company does?
its umbrella of services include project consultation, assistance in project
feasibility study , project financing for individual, partnership, trust and
nongovernmental organization education institutes, hospitals , businessman,
corporate houses, micro small and medium enterprises and traders, exporters
and importers etc.
it arranges all kind of banks loan and financial from nationalized & private sector
bank foreign banks housing finance companies- Non banking financial services
companies. Its exhaustive arrays of loans syndication services include arranging
various financial assistance for all kinds of borrower segment like
(A) INDIVUDUAL
(1) Salaried or
(2) Self Employed Professional Persons like Doctors-
Advocates- InfoTech- Architects-
(1) Land Purchase
(2)Home Purchase
(3)Home Extension
(4)Home Repair &Improvement
(5)Farm House
(6)Second House- Weekend Home
(7)Loan Against Property-Mortgage Loan
(8)Reverse Mortgage Loans
(9)Unsecured Personal Loans
(10)Premium Car & Vehicle Loans
(11)Loan to Purchase ESOPs
(12)Easy Travel Loans

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(13)Educational &Career Loans
(14)Loan Against Rental Income
(15)Gold & Jewelry Loan
(16)Loans against Shares & Securities
(17)Loan to Medical Professionals
(18)Loan to Architects
(19)Loans to Advocates
(20)Loan to Information Technology Professionals
(B) BUS I N E SS PERSON OPERATING IN ANY
(1)Industrial (2) Manufacturing (3) Trading (4) Services
(a) Domestic Business
(1)Sole Proprietary Firms
(2) Hindu Undivided Family
(3) Partnership Firms
(4) Limited Liability Partnership Firms
(5) Private Limited Companies
(6) Public Limited Companies
(1)Project Finance
(2)Long Term Loans
(3)Short Term Loans
(4)Unsecured Loans
(5) Working Capital Loans
(6)Inland Bank Guarantees- Performance & Financial
(7)Inland Letter of Credits
(8)Asset Purchase Loans
(9)Commercial Vehicle Loans
(10)Construction Equipments Loans

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(b) International Businesses - Import & Exports
(1)Project Finance
(2)Long Term Loans
(3)Short Term Loans
(4)Unsecured Loans
(5)Working Capital Loans Like Pre shipment- Post Shipment Credits
(6)Foreign Bank Guarantees-Import & Export
(7)Foreign Letter of Credits- Import & Exports
(8)Asset Purchase Loans
(9)Loan to pay Earnest Money Deposit - Tender Deposit
(10)Business Loan against Property
(11)Dealer Financing
(12)Structured Loans
(13)Open Term Loans
(14)Specialized Loans to Micro Small & Medium Enterprises
(15)Overdrafts
(16)Foreign Bills Purchas
(18)Deferred Payment Guarantees
(c) Charitable Trusts Educational Trusts Non Government al
Organizations,
(d) Financial Service Sectors like Micro Finance Institutes and
Companies,
(e) Micro Small and Medium Enterprise, Small Scale Industries in
India
.

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THE PROFESSIONAL ETHICS
Nikul shah Consultants seek to be a value-driven organization, where the values direct
make growth and success and it strongly believe and adhere to basic principles of
ethics.
Nikul shah Consultants follow strict Professional Ethics and observe highest standards
of Honesty, Integrity and Transparency with our valued clients
.
CATEGORIES OF CLIENTS IT SERVES
Individual Persons
• Salaried Persons
• Self Employed Professionals.
Businesses
• Sole Proprietary
• Business Hindu
• Undivided Family Partnerships
• Limited Liability Partnerships
• Association Of Persons and Body Of Individuals
• Co-Operative Societies,
• Companies- Private Limited, Public Limited,
• Small Scale, Micro Small & Medium enterprise
• Corporate & Large Undertakings

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Not For Profit Organizations
• Private Discretionary & Benefit Trusts
• Public Religious or Charitable Trusts,
• Non Profit Companies
• Non Governmental Organizations.
Education Institutes – Students
Educational Institutes like Schools, Colleges and Universities, Coaching Classes,
Tutorials, Students intending to pursue Higher Education in India and Abroad.
Industries
The Nikul shah Consultants arrange all types of loans and finance for all industries
operating in Infrastructure Industry, Non- Infrastructure Industry, Manufacturing Activity,
Trading Activity or Services Sector.
It arranges all types of Loans and finance from various Nationalized Banks (Public
Sector Bank),Old Private Sector Banks, New Private Sector Banks, Financial
Institutions, Housing Finance Companies, Non Banking Financial Companies, Mutual
Funds, Insurance Companies

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Non-infrastructure sector
Manufacturing & trading:-
• Agriculture - Cereals, Pulses, Spices
• Metals ± Steel, Aluminum, Copper, Galvanize, Bullion
• Cement
• Engineering
• Auto components
• Textiles
• Plantation, Pulp & papers
• Chemical & Dyes
• Drugs & Pharmaceuticals
• Gems & Jewelry
• Fibers & Plastics
• Wooden Industries
• Electric and Electronics
• Petrochemicals
• Medical, Surgical Equipments
Services:-
• Transport
• Travel & Tourism
• Hotel & Hospitality
• Educational Institutions
• Health industry
• Information Technology

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Institution it workwith
It arranges and syndicates all types of loans from following nationalized, private and
foreign banks in India
NATIONALIZED:
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Oriental Bank of Commerce
Indian Bank
Indian Overseas Bank
Punjab National Bank
Syndicate Bank
UCO Bank
Union Bank of India
United Bank of India
State Bank of India
IDBI Bank Ltd.

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OLD PRIVATE SECTOR : -.
The Bank of Rajasthan Ltd
.The Catholic Syrian Bank Ltd.
The Dhanalakshmi Bank Ltd.
-The Federal Bank Ltd.
The Karnataka Bank Ltd.
The Karur Vysya Bank Ltd.
The Lakshmi Vilas Bank Lt
NEW PRIVATE SECTOR : -
Axis Bank Ltd.
Development Credit Bank Ltd.
HDFC Bank Ltd.
ICICI Bank Ltd.
-Indusind Bank Ltd.
Kotak Mahindra Bank Ltd.
YES Bank
FOREIGN BANKS: -
ABN Amro Bank - N. V.
Barclays Bank ± PLC
BNP Paribas
Citi Bank - N. A.
Calyon Bank
Deutsche Bank AG
JPMorgan Chase Bank
Standard Chartered Bank

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The Development Bank of Singapore Ltd
The Hong kong and Shanghai Banking Corporation Ltd.
HOUSING FINANCE COMPANIES: -
Can Fin Homes Limited
Deutsche Post bank Home Finance Limited
Dewan Housing Finance Corporation Ltd.
DHFL Vysya Housing Finance Ltd.
GRUH Finance Ltd.
Housing and Urban Development Corporation Ltd.
Housing Development Finance Corporation Ltd.
ICICI Home Finance Company Ltd.,
IDBI Homefinance Ltd
LIC Housing Finance Ltd
Sundaram BNP Paribas Home Finance Ltd.
AIG Home Finance India Limited.
NON BANKING FINANCE COMPANIES: -
Srei Infrastructure Finance Co Ltd
Chola DBS
Money line Credit
Reliance Money
India bulls Finance
Muthoot Finance
Shriram Transport Finance

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Sundaram Finance
Bajaj Finance
DFC Ltd
Infrastructure Leasing & Financial Services Ltd
Transportation Networks Ltd

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THE PRESENT BUSINESS DOMAIN BY NIKUL CONSULTANTS LOAN
SYNDICATION
LOAN SYNDICATION
Term Loan, Working capital facility, short-term loan, and other financing needs of
corporate from Banks, Financial institutions and private Investors.
PROJECT FINANCE
Financial Viability study, business plans and project report, financial Planning and
syndication requirements.
CORPORATE ADVISORY SERVICES
Financial restructuring, mergers and acquisitions divestment and splits, business tie-
ups.

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SWOT ANALYSIS
STRENGTHS
The Director of the firm has vast experience in the field of finance. The firm has strong
customer base many of which are with the firms for last many years. Firms have good
contact with in industry. Good reputation in market.
WEAKNESSES
Firm does not put any efforts on marketing, which may help to grow the market.
The firm has sole proprietary structure and hence inherits the limits associated with this
kind of organizational structure.
OPPORTUNITY
Economic is in booming condition so companies are investing their money, they may
choose the loan fund which may be helpful to the nikul shah consultants to expand the
current business.
THREATS
Similar types of competitors.
Foreign financial services coming in India.

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Literature Review
Bank of baroda A firm’s working capital is the money it has available to meet
current obligations (those due in less than a year) and to acquire earning assets. Bank
of Baroda offers corporations working capital Finance to meet their operating expenses,
purchasing inventory, receivable financing, either by direct funding and or by issuing
letter of credit. Key benefit Funded facilities, i.e. the bank provides funding and
assistance to actually purchase business assets or to meet business expense.
• Non- funded facilities, i.e. the bank can issue letters of credit or can give a
guarantee on behalf of the customer to the suppliers, Government
department for the procurement of goods and services on credit.
Available in both Indian as well as Foreign currency. 2) corporation bank the working
capital limits would be considered only after the project nearing completion and after
ensuring full tie-up of the term loan requirement of the borrower. These limits would be
either in the form of fixed loans or running accounts and / or bill financing facility. The
finance extended under this category would be for meeting the funds requirement for
day to day operations of the units i.e. to meet recurring expenses such as acquisition of
raw material, the various expenses connected with products, conversion of raw material
into finished products, marketing and administrative expenses etc. in tune with the
Reserve bank of India guidelines on loan system for delivery of bank credit for working
capital purpose to larger borrower the same would be extended in the form of fixed loan
( working capital demand loan) and cash credit ( running account) in the ratio of 60:40 in
respect of borrower enjoying aggregate working capital limits of Rs. 10 crore and above
the banking system. The working capital demand loan facility shall be for a minimum
fixed term of 7 days subject to roll over at the option of the borrower concerned. Eligible
working capital limits would be assessed by adopting various methods such as
projected turnover method , permissible bank Finance method, Cash budget method
and Net owned funds Method, depending upon the type of borrower, the aggregate

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working capital facility enjoyed from the banking system, the scale of operation, nature
of activity/ enterprise and the duration / length of the production cycle, etc…
By balekaushik
On may 21,2014

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OBJECTIVE
To understand the concept of financial service in the form of cash credit, it’s various
components, methods and nature of project financing.
Another important objective is to analyze the various components of project
financing, which is specifically used in borrowing the finance for the small-scale industry
and large-scale industry. It focuses on the requirement and the procedures applied by
the banks for assessing and sanction the loan.
• To know about the cash credit.
• To get the idea that how much businessmen are interested towards the loan
facility in the form of cash credit.
• To understand how the loan fund is used for the running of the enterprise.
• To understand the tax benefit from the loan fund.

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WHAT IS CASH CREDIT
A cash credit is an arrangement by which a bank allows his customer to borrow
money up to a certain limit against some tangible securities or guaranties. The customer
can withdraw from his cash credit limit according to the needs and he can also deposit
any surplus amount with him.
A cash credit is a short-term cash loan to a company. A bank provides this type
of funding, but only after the required security is given to secure the loan. Once a
security for repayment has been given, the business that receives the loan can
continuously draw from the bank up to a certain specified amount. Prearranged loan
that a business does not have to take until it is needed
Cash Credit is also known as Working Capital. Cash Credit is a facility to withdraw the
amount from the business account even though the account may not have enough
credit balance. The limit of the amount that can be withdrawn is sanctioned by the bank
based on the business cycle of the client and the working capital gap and the drawing
power of the client. This drawing power is determined, based on the stock and book
debts statements submitted by the borrower at monthly intervals against the security by
hypothecating of stock of commodities and/ or book debts.
The excess withdrawal of cash is made generally on demand from the customer and the
customer has to pay interest on the excess amount he/she has withdrawn. The Cash
Credit facility is quite useful to those businesses where cash payment like wages,
transportation, cash purchases are to be made and the receivables are not realized in
time.
The interest in the case of cash credit is charged on the daily balance and not on the
entire amount of the account. For these reasons, it is most favorite mode of barrowing
by industrial and commercial concerns

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The RESERVE BANK OF INDIA issue directive to all scheduled commercial bank on
28th
march 1970, prescribing a commitment charge which bank should levy on the
unutilized portion of the credit limits.
DOCUMENT REQUIRED FOR CASH CREDIT
The borrower and/or the guarantors have to provide the following documents to the
banks or the lending institutions while submitting Cash Credit Application. Certain
documents may be demanded by the bank or the lending institutions in post sanction
phase or on periodical basis.
Address Proof :-
Latest Electricity/
Telephone Bill or Receipt of Maintenance Charges or
Valid Passport or Voters Identity Card or
Purchase/Lease Deed/ Leave & License Agreement of Residence or Office Premises.
Identity Proof: -
Valid Passport,
PAN Card,
Voter’s Card,
Any other photo identification issued by Government Agencies.

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Business Proof: -
VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of
Lease Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of
Title Deeds, Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a
Chartered Accountant wherever applicable).Last one year’s Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one year’s Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the
directors. If any such legal suit or proceedings are pending then the details of such legal
suit or proceeding.

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PROCESS OF CASH CREDIT: -
The following are the sequence of steps taken by the banks on receipt of completed
application form.
Application forms is accepted and acknowledged.
Personal interview /discussions are held with the customers by the bank’s officials.
Bank's Field Investigation team visits the business place/work place of the applicant. (All
the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
Bank verifies the track record of the applicant with the common information sharing
bureau (CIBIL).
In case of fresh projects the bank analyses the back ground of the
applicant/firm/company and the Technical feasibility/financial viability of the project
based on various parameters and also the existing market conditions.
Depending on the size of the project the file is put up for sanction to the appropriate
level of authority.
SANCTION AND DISBURSEMENT:-
On approval/sanction, the sanction letter, is issued specifying the terms and conditions
for the disbursement of the loan. The acceptance to the terms of sanction is taken From
the Applicant.
The processing charges as specified by the bank have to be paid to proceed further
with the disbursement procedure.
The documentation procedure takes place viz. Legal opinion of various property
documents and also the valuation reports (Original Documents to title of the immovable
assets are to be submitted).

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All the necessary documents as specified by the legal dept., according to the terms of
sanction of the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of
execution documents.
CREDIT ANALYSIS OF THE COMPANY
Credit analysis is the method by which one calculates the creditworthiness of a business
or organization. The audited financial statements of a large company might be analyzed
when it issues or has issued bonds. Or, a bank may analyze the financial statements of
a small business before making or renewing a commercial loan. The term refers to
either case, whether the businessislarge or small .
Credit analysis involves a wide variety of financial analysis techniques, including ratio
and trend analysis as well as the creation of projections and a detailed analysis of cash
flows. Credit analysis also includes an examination of collateral and other sources of
repayment as well as credit history and management ability.
Before approving a commercial loan, a bank will look at all of these factors with the
primary emphasis being the cash flow of the borrower. A typical measurement of
repayment ability is the debt service coverage ratio. A credit analyst at a bank will
measure the cash g1enerated by a business (before interest expense and excluding
depreciation and any other non-cash or extraordinary expenses). The debt service
coverage ratio divides this cash flow amount by the debt service (both principal and
interest payments on all loans) that will be required to be met. Commercial Bankers like
to see debt service coverage of at least 120 percent. In other words, the debt service
coverage ratio should be 1.2 or higher to show that an extra cushion exists and that the
business can afford its debt requirements

37. 37
CREDIT ANALYST
All the operations of banks in India are guided by recommendations of BASEL
committee. In credit department also a lot of improvement has happened and it is
understood that BASEL committee has recommended banks to split the credit
department on the basis of the size of the loans they handle.
As per those recommendations our bank has divided the work of commercial lending
into mainly three departments. Ticket size 10-500Cr will be handled mainly by Mid-
Corporate Group(MCG). While SMEs handle credits less than 10Cr while Corporate
Accounts Group handle amounts above 500Cr. This has improved the operational
efficiency of lending in banks.
Money maker for the bank is the Relationship manager (AGM) who interacts with
already existing or new customers. He gets the basic details of the credit requirement
and passes it on to a Credit Analyst.

38. 38
Project evaluation
Project evaluation is a high level assessment of the project to see whether the project is
worthwhile to proceed and whether the project will fit in the strategic planning of the
whole organization. Project evaluation helps to decide which of the several alternative
projects has a better success rate, a higher turnover.
KEY PARAMETERS TO BE EVALUATED IN A PROJECT
The key parameters to be evaluated in a project are:
Risk Analysis
Demand Analysis
Project Cost Estimation
Revenue Analysis
Financial Analysis
Project Selection Criteria
RISK ANALYSIS
Risk analysis is a technique to identify and assess factors that may jeopardize the
success of the project. Risks associated with capital investment proposals can be
broadly classified as:
1. Financial Risk
2. Other-Risk:

39. 39
Financial Risk:
Financial risk is defined as the possibility that the actual return on an investment will be
different from the expected return. Many techniques are available for determining
financial risk involved with the projects like Risk adjusted Discount Rate, Certainty
Equivalent, Sensitivity Analysis, DCF, Break Even Analysis, Probability Assignment,
Standard Deviation etc.
OTHER RISKS
Other risks constitute risks which may be an obstacle in the success/ Completion of the
project. Risk which can be included in other risk are
Availability Risk
Completion (technical and timing) Risk
Counterparty credit risk
Country (political) Risk
Inflation Risk
Input and throughput Risk
Market (demand) Risk
Technological Risk

40. 40
DEMAND ANALYSIS:
Success of a project depends on the projects usage potential and user willingness to
pay. Demand analysis involves forecasting the demand on the basis of market surveys
and manufacturing capacity of the unit and this is decided through the study of demand
and supply. The potential users, their habits, and possibility of changing these habits,
the pricing of the products, the designing are studied under demand forecasting. In the
demand analysis we check if there is as cope for laying a pipeline, if the demand at
destination is less, then a pipeline is not required.
The major Steps in demand analysis are
Determining different uses of a project output
Determining current consumption level and future demand
Finding financial and economical benefits from the project
PROJECT COST ESTIMATION
Accurate estimation of costs is vital for the effective evaluation of the project since it is
important for knowing the financial feasibility of the project. The capital costs and
operating costs of the project is considered in this step.
The following factors needs to be kept in mind while estimating costs.
Base Cost Estimate
Contingency Costs
Cost Factor for difference between domestic & foreign inflation rates

41. 41
REVENUE ANALYSIS
Revenue analysis is estimation of the revenues which would be earned in the future.
Revenue projections are formed on the basis of Output sales. It helps in finding out the
profits/ losses in the future. Revenue analysis is all the more important in project finance
because the debts have to be repaid through the revenues generated by the project.
Financial analysis
Financial analysis refers to an assessment of the viability, stability & profitability of a
project. It seeks to ascertain whether the proposed project will be financially viable in
the sense of being able to meet the burden of servicing debt and whether the project will
satisfy the return expectations of those who provide the capital.
PROJECT SELECTION CRITERIA
Once information about expected return and costs has been gathered, the next question
arises: whether the project should be selected or not. There are many methods of
evaluating the profitability of the project. The various commonly used methods are as
follows:
1) PAY-BACK PERIOD METHOD:
It represents the period in which the total investment in permanent assets pays back
itself. Under this method various investments are ranked according to the length of their

42. 42
pay-back period and the investment with a shortest payback period is preferred. The
pay-back period can be ascertained in the following manner:
Pay-back= investment
Cash flow/ year
2) AVERAGE RATE OF RETURN METHOD:
This method takes into account the earnings expected from the investment over their
whole life. According to this method the project with the highest rate of return is
selected. The return on investment is calculated with the help of following formula.
ARR = Average annual profit after depreciation & tax *100
Average investment
Where average investment= original investment + salvage value
2
3) NET PRESENT VALUE METHODS:
The net present value method is the modern method of evaluating investment
proposals. This method takes into consideration the time value of money and attempts
to calculates the return on investment by introducing the factor of time-element.

43. 43
NPV=Present value of cash inflows-Present value of cash outflows.
4) INTERNAL RATE OF RETURN METHOD:
It is also known as trial & error method. The following steps are required to practice
the internal rate of return method:
Determine the future net cash flows during the entire economic life of the project. The
cash inflows are estimated for future profits before depreciation but after taxes.
Determine the rate of discount at which the value of cash inflows is equal to the present
value of cash outflows. If annual cash flows are equal then it can be easily found out
otherwise it has to be found out by hit and trail method.
Accept the proposal if the IRR is higher than or equal to the minimum required rate of
return i.e. cost of capital or otherwise reject the proposal.
In case of alternative proposals select the proposal with highest IRR.
5) PROFITABILITY INDEX
This method is also known as benefit cost ratio and is similar to NPV approach. It
measures the Present Value of returns per rupee invested based on the following
formula:
PI= present value of cash inflows
Present value of cash outflows

44. 44
TAX CALCULATION
in project finance basically three types of taxes are calculated while doing financial
analysis and these are:
Minimum Alternate
Tax Income Tax
Capital Gains Tax
Minimum Alternate Tax (MAT)
Normally, a company is liable to pay tax on the income computed in accordance with
the provisions of the income tax Act, but the profit and loss account of the company is
prepared as per provisions of the Companies Act. There were large number of
companies who had profits as per their profit and loss account but were not paying any
tax because income computed as per provisions of the income tax act was either nil or
negative. To avoid this practice, MAT was introduced in section 115JB of the Income
Tax Act. Profit computed under the regular method is called regular profit and profit
computed under sec 115JB is called Book profit and the tax computed is called MAT.
If a company is having regular profits then income tax @ 33.99% (30% tax + 10%
surcharge +3% education cess) is charged on it. However if the books show losses,
then MAT is calculated and if MAT shows profits, tax is calculated @ 11.33% (10% tax
+ 10% surcharge + 3%education cess). And if MAT shows losses, then tax is not to be
charged.

45. 45
MAT Credit
When a company pays tax under MAT, tax credit is allowed in respect thereof during
the years when the company pays normal corporate tax. The tax credit earned is the
difference between the amount payable under MAT and the regular tax. The amount of
MAT credit can be set-off only in the year in which the company is liable to pay tax as
per the regular tax. MAT credit will be allowed carry forward facility for a period of five
assessment years immediately succeeding the assessment year in which MAT is paid.
MAT CALCULATION
First of all, the book profits are calculated using the formula.
Book profit= Taxable profit + depreciation previously deducted – actual depreciation as
per income tax Act
MAT loss is added to the book profit to obtain the adjusted book profit on which the
MAT is calculated @ 11.33% (MAT rate)
Capital Gains Tax
If any capital Asset is sold or transferred, the profits arising out of such sale are taxable
as capital gains in the year in which the transfer takes place. Capital asset gains are of
two types
Long term capital gains:- Gains on assets held for more than 36 months before they
are sold or transferred. In case of shares, debenture and mutual fund units the period of
holding required is only 12 month. Rate of tax applied on long term capital gains is
22.66% (20% tax+10% surcharge+ 3% education cess).
Short term capital gains:- Gains on assets held for less than 36 month are included in
this category. Rate of tax applied on short term capital gains is 15%.

46. 46
CALCULATION OF CAPITAL GAIN
Net capital gains is calculated with help of formula:
Net capital gains = Gross Gains (cost of Acquisition + indexation cost) –
expenses on sale
Indexation cost= original value X present year index
Base year/year of Acquisition index
Capital gains are calculated at 22.66% of net capital gains.

47. 47
CASH CREDIT FACILITY TO BUSINESS MEN/TRADERS
AGAINST COLLATERAL OR HYPOTHECATION OF STOCK IN
TRADE
BENEFICIARY
Any individual, proprietary/partnership concern/company etc. residing/operating in the
area of operation of the bank and engaged in the procurement, stocking, sale,
distribution and marketing of goods and commodities shall be eligible to borrow under
the scheme. Such individuals/firms shall enroll themselves as associate member of the
concerned bank.
PURPOSE OF LOAN
The loan shall be available for purchasing, stocking and marketing of goods and
commodities and meeting out other business related expenses.
ELIGIBILITY
The borrower shall be eligible for a cash credit limit 25% of the annual business
turnover. The scheme shall also be implemented by the Apex Bank after the formal
notification by the govt. under the Coop. Societies Act, 1984.
VALUATI ON OF STOCK
The stocks hypothecated to the bank shall be valued on the basis of their book value or
market value whichever is less.

48. 48
OPERATIVE PERIOD
The limit shall be initially sanctioned for a period of one year which shall be renewable
on the basis of its financial discipline and past performance such as sale and deposit of
sale proceeds in cash credit account etc.
DRAWING POWER
The operations on the limit shall be allowed up to the level of 60% of the value of stocks
hypothecated to the Bank.
SECURITY
In addition to the hypothecation of stocks and their comprehensive insurance with a
bank clause, the bank should obtain tangible security equal to 1 ½ time of the amount of
cash credit limit sanctioned. If the borrower does not possess sufficient tangible
security, the tangible security owned by his relatives, friends etc. shall be acceptable to
the bank.
RATE OF INTEREST
Presently interest 13% p.a. shall be charged which is subject to change in pursuance to
Directives on interest rates on advances by RBI/NABARD. In the event of default or
infringement of any term and condition of sanction penal interest 3% p.a. over and
above the normal shall be charged for the amount and period during which the default
subsists. The interest shall be calculated on daily balances and will be recovered at
quarterly intervals by debiting to the cash credit account or any deposit account
maintained with the Bank.

49. 49
STOCK STATEMENT AND PHYSICALVERIFICATION
The borrower shall furnish monthly stock statements as well as with each drawl for
working out the drawing power. The Bank reserves to itself the right to:-
Conduct physical verification of the stocks hypothecated to the Bank;
Impose/vary any term and condition of the sanction to safeguard its funds; and
Suspend operation on the limit or recall the entire loan in lump sum without assigning
any reason.
DOCUMENTATION
The Bank shall obtain necessary documents such as hypothecation-deed, Letter of
Acceptance, Letter of Continuity, Demand and Time Promissory Notes, Mortgage-deed
of tangible security, Insurance cover/policy etc.

50. 50
FIRST STEP IN FINANCIAL SERVICE IN THE
FORM OF CASH CREDIT:-THE FEASIBILITY
STUDY.
GENERALLY, As one of the first steps in loan syndication, the sponsor or a technical
consultant hired by the sponsor will prepare a feasibility study showing the financial
viability of the project. Frequently, a prospective lender will hire its own independent
consultants to prepare an independent feasibility study before the lender will commit to
lend funds for the project.
CONTENTS. The feasibility study should analyze every technical, financial and
other aspect of the project, including the time-frame for completion of the various
phases of the project development, and should clearly set forth all of the financial and
other assumptions upon which the conclusions of the study are based, Among the more
important items contained in a feasibility study are:
Description of project
Description of sponsor
Sponsors' Agreements
Project site
Governmental arrangements
Source of funds
Feedstock Agreements
Construction contract
Management of project
Capital costs
Working capital
Equity sourcing
Debt sourcing
Financial projections

51. 51
SANCTION PROCESS OF CASHCREDIT & WOR KING CAPITAL:-

52. 52

53. 53

54. 54

55. 55

56. 56
METHODS OF LENDING
Like many other activities of the banks, the Reserve Bank of India till 1994 mandated
method and quantum of short-term finance that can be granted to a corporate. This
control was exercised on the lines suggested by the recommendations of a study group
headed by Shri Prakash Tendon.
The study group headed by Shri Prakash Tendon, the then Chairman of Punjab
National Bank, was constituted by the RBI in July 1974 with eminent personalities
drawn from leading banks, financial institutions and a wide cross-section of the Industry
with a view to study the entire gamut of Bank's finance for working capital and suggest
ways for optimum utilization of Bank credit. This was the first elaborate attempt by the
central bank to organize the Bank credit. The report of this group is widely known as
Tendon Committee report. Most banks in India even today continue to look at the needs
of the corporate in the light of methodology recommended by the Group.
As per the recommendations of Tendon Committee, the corporate should be
discouraged from accumulating too much of stocks of current assets and should move
towards very lean inventories and receivable levels. The committee even suggested the
maximum levels of Raw Material, Stock-in-process and Finished Goods, which a
corporate operating in an industry should be allowed to accumulate these levels, were
termed as inventory and receivable norms. Depending on the size of credit required, the
funding of these current assets (working capital needs) of the corporate could be met by
one of the following methods:
FIRST METHOD OF LENDING
Banks can work out the working capital gap, i.e. total current assets less current
liabilities other than bank borrowings (called Maximum Permissible Bank Finance or

57. 57
MPBF) and finance a maximum of 75 per cent of the gap; the balance to come out of
long-term funds, i.e., owned funds and term borrowings. This approach was considered
suitable only for very small borrowers i.e. where the requirements of credit were less
than Rs.10 lacs.
SECOND METHOD OF LENDING
Under this method, it was thought that the borrower should provide for a minimum of
25% of total current assets out of long-term funds i.e., owned funds plus term
borrowings. A certain level of credit for purchases and other current liabilities will be
available to fund the buildup of current assets and the bank will provide the balance
(MPBF). Consequently, total current liabilities inclusive of bank borrowings could not
exceed 75% of current assets. RBI stipulated that the working capital needs of all
borrowers enjoying fund based credit facilities of more than Rs. 10 lacs should be
appraised (calculated) under this method.
THIRD METHOD OF LENDING
Under this method, the borrower's contribution from long term funds will be to the extent
of the entire CORE CURRENT ASSETS, which has been defined by the Study Group
as representing the absolute minimum level of raw materials, process stock, finished
goods and stores which are in the pipeline to ensure continuity of production and a
minimum of 25% of the balance current assets should be financed out of the long term
funds plus term borrowings.

58. 58
RESEARCH & METHODOLOGY OF PROJECT
1) INTRODUCTION
The most of important part and main strength of project comes from the process of
collecting; classification and analyzing work will depend upon the methodology. It is in a
way proposed plan of the study.
2) OBJECTIVE OF THE REPORT:-
• To know about the cash credit.
• To get the idea that how much businessmen are interested towards the loan
facility in the form of cash credit.
• To understand how the loan fund is used for the running of the enterprise.
• To understand the tax benefit from the loan fund.

59. 59
SOURCES OF DATA COLLECTION: -
Data Collection is key part of project work. There are two types of data collection, first
is primary source and second is secondary of data collection.
PRIMARY SOURCES: -
The data were collected by visiting in GIDC VATVA and GIDC CHANGODAR
AHEMDABD.
The data were also collected by the Survey using Questionnaire and personal interview
indifferent-2 industries.
RESEARCH DESIGN: -
DESCRIPTIVE METHOD:-
SURVEY AND SAMPLING TECHNIQUE (Personal Interview, Questionnaire etc)
SAMPLE SIZE-50
• DESCRIPTIVE RESEARCH
Dear Respondent,
As a part of my academic evaluation, I would like to undertake a detailed research study
on a topic of FINANCIAL SERVICE FOR FUND BASED CREDITFACILITY IN THE
FORM OF CASH CREDIT. I will be grateful if you would fill out this questionnaire and
assist me in completing the survey appropriately.
Thank You

60. 60
SECONDARYSOURCES:-
The secondary data includes company profile, financial statements etc has been
obtained from Nikul Shah Consultants.
The secondary data relating to the procedures of assessment of cash credit in small-
scale industry (SSI), and large-scale industry, RBI guidelines etc. have been sourced
from reference books and websites.
SCOPE OF THE PROJECT:-
Company has given various guidelines, advice and projection for obtaining the finance
from the banks and other financial services, and developing of the company keeping in
the view economic of the country. I have under taken the study of fast developing
company with reference to its financial position. It is necessary to under taken the
impact of “Nikul Shah Consultancy Firm´ &various services provide to their clients.

61. SURVEY DONE IN GIDC
Q.1):- Which type of facility
(A) Own fund
INTERPRETATION:-
67% of the businessmen replies that they are
business are using their own
0%
10%
20%
30%
40%
50%
60%
70%
Own fund
33%
GIDC VATVA AHEMDABAD
you are using for the development of your business?
(B) Loanfund
67% of the businessmen replies that they are using the loan fund remaining 33% of
business are using their own fund for the running of the business
loan fund
67%
own fund
loan fund
61
you are using for the development of your business?
using the loan fund remaining 33% of the

62. (Q.2) Ifloanfund then which type of loanfund?
(A) T/L (B)C/C
INTERPRETATION: -
54% of the businessmen are using the cash credit
are using the term loan facility and
financial service.
0%
10%
20%
30%
40%
50%
60%
Cash credit
54%
then which type of loanfund?
C/C (c)N/A
54% of the businessmen are using the cash credit facility while 17% of the businessmen
using the term loan facility and remaining 29% are not using any type of the
Term loan N/A
17%
29%
Chart Title
cash credit
term loan
N/A
62
facility while 17% of the businessmen
remaining 29% are not using any type of the
cash credit
term loan

63. 63
NO OF COMPANY FACILITY USED BY
COMPANIES
PERCENTAGE
13 C/C 54%
4 T/L 17%
7 N/A 29%
24 TOTAL 100%
13
4
7
DATA OF GIDC VATVA
C/C
T/L
N/A

64. (Q.3):- Types of organization
(A) Sole prop... (B) Partnership
INTERPRETATION: -
17% of the companies are in the form of
of partnership and remaining 33% are in
.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
17%
50%
Types of organization
(B) Partnership (C) Pvt Ltd
17% of the companies are in the form of sole proprietorship while 50% are in the form
partnership and remaining 33% are in the form of private limited.
33%
sole propritership
partnership
PVT ltd
64
(D) Public Ltd
proprietorship while 50% are in the form
sole propritership

65. Q.4) Are you aware about the
(A)YES (B)
INTERPRETATION:- 70
loan fund, 20% replies that
companies which are manuf
remaining 10% says that they
fund.
20%
10%
DATA ABOUT TAX AWARNESS
the tax benefit from loan fund?
(B) NO (C) Little
70% Businessmen replies that they know
they do not have much knowledge about
manufacturing the product and supplied to big
they have some knowledge about the tax benefit
70%
10%
DATA ABOUT TAX AWARNESS
yes
No
little
65
know the benefit from the
about the tax (these
big companies) and
benefit from the loan
yes
No
little

66. 66
5) Are you aware of the syndicated loan facility provided by the bank?
(A)YES (B) NO
(6) Are you interested in bank loan for the running of the business?
(A)YES (B)NO
80%
20%
YES
NO

67. (7) Which type of loan more
A) Term loan
B) Cash credit
C) Personal loan
0%
10%
20%
30%
40%
50%
60%
70%
YES
40%
0%
10%
20%
30%
40%
50%
60%
70%
more beneficial and most preferred
NO
60%
YES
NO
term loan
Cash credit
own fund
67
for business?

68. 68
FINDINGS:
Most of the companies are SOLE PROPRIETOR FIRM and they are using CASH
CREDIT rather than TERM LOAN or any other type of the loan. The reason behind this
is that, these companies are small and they are not able to afford the big loan and they
are also not able to compete against big companies.
There is the labour problem so these companies are hesitating to make some big
investment because they think that their money may be blocked.
The other problem is the attitude of the owner of the companies they think that the loan
is always bad for the companies and they will get the troublesome at the time of
payment.
Most of the owner of the companies is not aware about the benefit of the loan fund so
they are using their own fund rather than loan fund.
Due to the unawareness they are missing the tax benefit and they are paying more tax.
So from the above data (from table, bar chart, and pie chart) we can say that the most
of the companies are using the cash credit facility, and other companies are using their
own fund. They are not interested in taking any type of the loan.
The other reason is that there are more small-small companies which are not able to
compete against the big companies so they are hesitating to take the risk.

69. 69
SUGGESTION
Cash credit financial service is one of the best financial services in India, because it is
easier to the others. But to increase this service, some changes should be implemented
in the procedure.
The complexities of the procedure of cash credit should be reducing so that
businessmen/traders easily use this service.
The rate of interest should be reduced.
The awareness of this service should be prevailed in the whole industries.
The payment system of cash credit should also be very easy so that the barrower may
easily pay the installment.
The limit of cash credit should also be defined very well so that the barrower may not
get any type of confusion.
The time which is used at the time of the sanction of cash credit should be reduced so
that it may easily be used within the right time.
The terms and conditions should be specified and mentioned clearly so that everything
related to loan should be clear.
Nikul shah consultants should pay more attention toward marketing so that people may
know it very well.

70. 70
CONCLUSION
The summer internship I have done in “financial services for fund based credit facility in
the form of cash credit´ at Nikul Shah consultant.
In these one months tenure I achieve a lot of knowledge about loan syndication and
cash credit. It is nothing but to provide the loan in the form of cash credit to the
companies for the running of the business. In this period I have visited in many
companies get the response towards loan and other financial services, there projection
and prepare project report.
It is totally based on our logical skill as well as on hard working skill and even it has to
depend upon our analytical skill.
In the projection I have learn how to remove the companies problem related to fund or
proper utilization of thefund whether it maybe in theform of own fund or loan fund.
.
Competitors are also increasing day by day, so to survive in the market it is necessary
to increase the business and capture the market for the expansion of the business,
there is need of the fund, and for these requirement as well as for working capital they
prefer to take the facility of cash credit.

71. 71
LIMITATION OF STUDY
The time, limitation is the most important problem to collect the various information.
It required a lot of time and more expensive.
Very less time interacted with customer during filling up of questionnaire.
Some respondents did not take the survey seriously and did not give appropriate
answers.
The study is conducted considering the prevailing conditions which are subject to
change in the future.
All the work was limited in some limited area of Ahemdabad so the findings should not
be generalized.

72. 72
BIBLIOGRAPHY
WEBSITES:
http://www.Rbi.org
http://www.statebankofindia.com
http://www.icicibank.com
Books:
Financial management. I M pandey published by vikas publishing house Pvt Ltd, new
delhi tenth edition(2010)
Donald R cooper. Business research methodology. Published by kalyani publisher new
delhi. Fifth edition 2006