1

SCUF—News Letter—Breeze—April, 2012

Speech delivered by

Mr. Y. S. Chakravarti, Executive

Director & Chief Operating Officer,

Shriram City Union Finance Limited

at Consumer Association of India,

10th Anniversary Celebrations at

Chennai on March 17, 2012.

Respected Dignitaries on the dais, concerned citizens of the coun-

try and the millions of consumer friends, I feel privileged to be a

part of this consumer conscious movement and would like to con-

gratulate the Consumers Association of India for celebrating their

10th Anniversary with an international conference and mobilizing

the consumer activists from across the world, which I feel is going

to be extremely important in the context of seamless integration of

India with the world.

‗Is the consumers really a King today?‘ Well, for us in the Shriram

Group, consumers have not only been our King, but like a God,

whom we revere, not today but from the time of our inception.

Because we believe that at the

end of the day, the customer is the

primary reason for our existence.

Being customer centric has en-

abled the group to identify emerg-

ing needs of the customer in a fast

evolving world and to offer a vari-

ety of new generation products &

services. No wonder then, that Shriram Group‘s total

deployment of funds has grown to Rs.40,000 crores and

the customer base has grown to 6,50,000 within a short

span of time. And this achievement has been possible

only because of the customer centric & inclusive growth

policy of our founder Mr. R Thiagarajan.

The genesis for Shriram Group is its Chit Fund business.

As most of the distinguished guests present here are

aware a chit fund is a collective saving and borrowing

instrument, where the organizer forms people into groups

and organizes the fund.

Be creative. Be innovative. Think differently and positively .

Special points of interest:

Customer is the King

Donate Blood & Save Life

Highlights of Union Budget

2012-13

Gold— An insight

Revised RBI Guidelines for

issue of Gold Loans

Meeting Etiquette

Inside this issue:

Speech of Shri YSC….Contd……. 2

Q & A 3

Red Blood Cell Compatibility 4

Union Budget—2012-13 “Highlights” 5

Gold & RBI Revised guidelines 7

Meeting Etiquette & Editorial Desk 8

1st April, 2012 Thisai: South Thendral: 01

The business was and is being done in a manner where cost effi-

cient mode of collecting through PDC or marketing is done through

Tele calling is not considered but is done through a one on one

relationship with the customer. The team interfaces with the cus-

tomer on a month on month basis which makes us what we are

today.

The chit fund business taught us the value of the concept

―Customer/Consumer is king‖. Even though the chit fund business

is run on wafer thin margins it has provided us with great emo-

tional attachment with customer and his family and has helped us

build relationships over generations within a family. And the group

remains loyal to its customers. Profitability comes in not doing

what is efficient for the Company but what is efficient for the cus-

tomer. This ensure consistency in business and long term survival.

Shriram chits has been the prime mover for other compa-

nies in the group to prosper like Shriram Transport,

Shriram City, Shriram Life and Shriram General. Due to

this we could build large market capitalization of over Rs.

15000 crore in just two listed companies out of 7 Compa-

nies in the Group.

Being a member of such a family, Shriram City has also

imbibed the same values. For millions of people across

the country, Shriram City has been there when they

needed it most, when they needed money to meet their

requirements, to tackle sudden crisis or to have a better

life.

Contd….2

2

SCUF—News Letter—Breeze—April, 2012

There‘s a famous saying by Mr. Bob Hops ‗A

Bank is a place that will lend you money if you

can prove that you don‘t need it‘. But at

Shriram City, we lend money, when we be-

lieve that the customer needs the money.

Because we trust people. We have faith in

them. And they are important to us. Their

aspirations are our ambitions, their desires

are our dreams, and their needs are our fulfill-

ment.

And so we are there at every step. In every

walk of people‘s lives, with a promise of

‗Money when you need it most‘. Always

within reach, always interfaced with our cus-

tomer, striving to understand their needs,

serving them at their doorstep, reaching them

directly, locally, minimizing turnaround time by

local decision making process, making it eas-

ier for our customers. Because we believe in

building long term relationship with our cus-

tomers. And today, driven by the trust of

nearly 4,00,000 customers, Shriram City

stands out as India‘s premier financial ser-

vices company, specializing in retail finance

and the only deposit accepting, non-banking

financial company to offer a comprehensive

range of loans. Reaching out to more and

more customers, through a large, countrywide

network of over 1000 outlets with technology

backed systems and procedure, be it acquisi-

tion of a customer or speedy redressal of any

type of complaint, across the country.

While technology & systems are constantly

upgraded to keep pace with the changing

needs, Shriram has never lost its sight from

the human factor to ensure empathy com-

bined with speed in its services.

Empowering the common man is our goal.

And since we are dealing with ordinary peo-

ple, our philosophy of personalized profes-

sional service percolates down to every em-

ployee who is the face of the organization.

The Shriram Group, which was established as

a Chit Fund & Deposit accepting company

has always anticipated its customers chang-

ing needs and has moved on to become a

loan product company. We believe in financ-

ing people and not the products and that is

where we make a difference.

Our outlets are located where our customers

need us. In fact, we are their neighbour and

therefore our employees know the customers

personally. We are like a joint family, where

trust is an important factor.

We believe in supporting ordinary people

to move up in life by encouraging them

to go behind their aspirations, helping

them with ‗money when they need it

most‘. Be it small traders, businessmen

or any common man who has a dream

and wants our support. We not only

provide livelihood solutions, but also

facilitate them to establish their identity

and enhance their pride in the society

and make them creditworthy.

Providing prosperity solutions has en-

abled us to earn the loyalty of millions of

our customers and we have now taken

upon the responsibility of protecting their

prosperity and securing their future.

Moving from Chits, Deposits & Loans,

Shriram has established a Life Insurance

Company to protect their lives from un-

foreseen situations. And a General In-

surance Company to protect their valu-

able assets without which their livelihood

would be at stake. In a way, we feel that

we are destined to meet every require-

ment of our customers, be it his business

or his life.

In order to make it convenient for our

customers, we keep embracing newer

technologies but ensure that it is cus-

tomer friendly and customer focused.

We have developed different redressal

models for different origins of complaint.

While local language call centers have

been established for effective communi-

cation of the complaint for the phone

users, a web complaint facility is in place

for the tech-savvy, hard pressed for time

consumers. And for the benefit of those

customers who find it convenient to

lodge complaints at our branches, we

strive to ensure that their precious time is

not wasted. In fact most of the time the

complaint is redressed at the local level

and very few complaints move beyond

the branch level.

At Shriram City, since continuous cus-

tomer relationship is the goal, we have

also introduced the system of proactive

calling of customers every month not

only to remind them about the next EMI

due date, but also to get to know if they

have any complaints or issues.

Shriram City has successfully fol-

lowed the principle of moving to-

gether with the customer, nurture

and nourish their aspirations &

goals, to move forward in its busi-

ness growth. In fact ‗Customer is

the King‘ has been the business

philosophy of Shriram City even

before consumer organizations

began to create awareness and

propagate customer rights. Be-

cause, we at Shriram City, always

believed that the customer is our

reason for being here. No wonder

then, our customers are continu-

ously helping us to grow our busi-

ness by adding new customers from

among their family & friends.

If marketing is about the battle to

win & retain customers, we are

sure, our track record of growth,

can trigger many marketing gurus to

propagate India inspired marketing

success stories for the global mar-

keting fraternity.

On this momentous occasion of the

10th anniversary of the Consumers

Association of India, I would like to

convey the good wishes from every-

one at Shriram and thank CAI for

providing me this opportunity to

address this august forum. I would

like to conclude by saying that the

consumer will always be the King

and it will be to the advantage of

corporate, if they can try & find a

prime place in the King‘s heart.

Thank you.

===========================

Speech delivered by Mr. Y. S. Chakravarti, Executive Director & Chief Operating Officer, (Contd………….)

3

SCUF—News Letter—Breeze—April, 2012

By Sri U S Murthy, Consultant

SCUF, Zonal Office Vijayawada—AP CREDIT INVESTIGATION—PART II (contd..)

4. An overview about Col-

lateral Security, EC, and

personal guarantee:

Details of collateral security

offered, its locational advan-

tage, type of property, value

of the property and legal

opinion as regards title

clearance, Marketability and

right of the owner to Mort-

gage the property etc will

help us in taking Judicious

credit decisions.

Normally loan component

should not exceed 50% of

the apprised/ assessed

value of the immovable

property given by the panel

valuer.

EC (Encumbrance Certifi-

cate) of the Property for the

last 30Years is to be ob-

tained to establish that the

property is free from encum-

brance and claimant of the

property is enjoying posses-

sion and is the true owner.

Personal guarantee of the

Guarantors and their relation-

ship with the borrower, their

income as per salary certifi-

cate / ITAO return submitted,

give us good idea about the

credit worthiness and suitabil-

ity of the guarantor/s for the

proposed loan.

5. Other Important informa-

tion in respect of verification

of documents:

Various documents produced

by the borrower for submission

of the KYC documents like

voter id, Pan Number , Driving

licence etc.., could be verified

from the Govt. Registered

Websites and this should be

done by the processing officer

as part of Credit investigation.

The following are the various

Registered and authenticated

web sites from which the ve-

racity of the documents sub-

mitted could be established.

a) For Pan card verification

https:onlinservices.tin.nsdl.co

m/etaxnew/

tdsnontds.jsp

b) To find out the incorpo-

ration of a Company

http:/www.mca.gov.in/

C) Passport Verification

http://passport.gov.in/

d) E C Verification

http://www.igrs.ap.gov.in/

e) Aadhaar Card

www.uidaadhaar.com

f) Driving Lenience & Vehicle

Registration

http://aptransport.org

g) Voter id verification

http://www.ceoandhra.nic.in/

ceonew/home.aspx

Note:

Illustration under

d,e,f & g is given taking

AP state as an example.

Other states may

find out applicable

websites.

4

SCUF—News Letter—Breeze—April, 2012

receive blood only from individu-

als of groups A or O (with A be-

ing preferable), and can donate

blood to individuals with type A

or AB.

Blood group B individuals have the B

antigen on the surface of their

RBCs, and blood serum contain-

ing IgM antibodies against the A

antigen. Therefore, a group B

individual can receive blood only

from individuals of groups B or O

(with B being preferable), and

can donate blood to individuals

with type B or AB. Blood group O

(or blood group zero in some

countries) individuals do not

have either A or B antigens on

Blood group AB individuals have

both A and B antigens on the

surface of their RBCs, and

their blood plasma does not

contain any antibodies against

either A or B antigen. There-

fore, an individual with type

AB blood can receive blood

from any group (with AB being

preferable), but can donate

blood only to another type AB

individual.

Blood group A individuals have the

A antigen on the surface of

their RBCs, and blood serum

containing IgM antibodies

against the B antigen. There-

fore, a group A individual can

the surface of their RBCs,

but their blood serum con-

tains IgM anti-A and anti-B

antibodies against the A

and B blood group anti-

gens. Therefore, a group O

individual can receive blood

only from a group O individ-

ual, but can donate blood to

individuals of any ABO

blood group (i.e., A, B, O or

AB). If a patient in a hospital

situation were to need a

blood transfusion in an

emergency, and if the time

taken to process the recipi-

ent's blood would cause a

detrimental delay, O Nega-

tive blood can be issued.

Red blood cell compatibility

In addition to donating to the same blood group; type O blood donors can give to A, B and AB; blood donors of types A and B can give to

AB. Red blood cell compatibility table

Recipi-

ent

Donor

O- O+ A− A+ B− B+ AB− AB+

O− Y N N N N N N N

O+ Y Y N N N N N N

A− Y N Y N N N N N

A+ Y Y Y Y N N N N

B− Y N N N Y N N N

B+ Y Y N N Y Y N N

AB− Y N Y N Y N Y N

AB+ Y Y Y Y Y Y Y Y

By Ms. Srikala, Admin. HO. Mylapore Chennai - 4

5

SCUF—News Letter—Breeze—April, 2012

General Budget

Budget is a systematic plan for the expenditure of a usually fixed resource during a given period.

The word Budget was derived from the French word, bougette, which in turn is a diminutive of

bouge, meaning a leather bag.

The Union Budget of India, referred to as the Annual Financial Statement in Article 112 of the

Constitution of India, is the annual budget of the Republic of India. Barring a few exceptions --

like elections - Finance Minister presents the annual Union Budget in the Parliament on the last

working day of February/or before end of March. The budget has to be passed by the Lok Sabha

before it can come into effect on April 1, the start of India's financial year.

What is the Budget all about?

The General Budget, also known as the Union Budget, which is a yearly affair, is a comprehen-

sive display of the Government's finances. It is the most significant economic and financial event

in India. The Finance Minister of the Central Government puts down a report that contains Gov-

ernment of India's revenue and expenditure for one fiscal year.

The fiscal year runs from April 01 to March 31.

The General Budget is preceded by an Economic Survey which outlines the broad direction of

the budget and the economic performance of the country. The Budget is the most extensive ac-

count of the Government`s finances, in which revenues from all sources and expenses of all

activities undertaken are aggregated. It comprises the revenue budget and the capital budget.

The revenue budget consists of revenue receipts of the government (revenues from tax and

other sources) and the expenditure met from these revenues. Capital Budget consists of capital

receipts and payments. It also contains estimates for the next fiscal year called budg-

eted estimates.

Union BUDGET 2012-2013

The time every Indian looks out for year on year has come – THE ANNUAL BUDGET

People are busy calculating the re-percussions of the recommendations on their personal income & expendi-ture.

Let‘s breeze through the highlights of

the Indian Budget 2012 – 2013.

RAILWAY BUDGET

The budget was pre-sented on 14th March 2012 by the Railway Min-

ister.

The Railways to focus on 5 major Parameters this year :

Consolidation

Decongestion & Capacity Aug-

mentation

Modernisation

Improvement of Operating Ratio

Passenger Fares increased by

15 paise per km for AC 2 Tier

30 paise per km for AC 1

New Trains & Services

75 new Express Trains

20 New Passenger Services

9 DEMU Services

8 MEMU Services

39 Trains to be Extended

Frequency of 23 Trains to be

increased

New Rail Based Industries:

1. Wagon Factory at Sitapali, Orissa 2. Rail Coach Factory at Palakkad, Kerala; Kutch, Gujarat; and Kolar,

Karnataka 3. Traction Alternator Units for High Horse Power Diesel Locomotives

at Vidisha, MP

Shortage in Manpower to be met by recruitment of one lakh new staff

during the year.

6

SCUF—News Letter—Breeze—April, 2012

FINANCE BUDGET

The budget was presented on

16th March 2012 by the Finance

Minister.

INDIVIDUALS

I T Exemption Cap up at

Rs. 2 Lakhs – Men & Women now at par

I T Rebate of upto

Rs.5000/- for health check-ups

Deductions upto

Rs.10000/- for Interest from Savings Accounts

Tax on all Services ex-

cept 17 in the negative list @ 12% - up from 10% - May increase prices by 2% to 4%

Cars & bikes, Refrigerators, Air

conditioners to cost more

Withdrawal of Rs.20000/- deduction

on savings in Long Term Infrastruc-ture Bonds

LEDs & LCDs to be cheaper due to

full exemption from Basic Customs Duty

Gold to cost more due to 2% in-

crease in Customs Duty

Ready made garments to cost less

Air fares to increase.

CORPORATES

Several Anti-Tax-Avoidance Steps

with retrospective effect

Cess on Crude up from Rs.2500/ton

to Rs.4500/ton

Withholding tax sops to Infra Firms‘

ECB {External Commercial Borrowings} interest payments

Airlines can issue ECBs up to $1 bn;

easier FDI rule under study

SOCIAL SECTOR

20 crore Aadhaar Cards issued – fund-

ing for 40 crore more

Agri credit target raised by Rs.1 lakh

crore to Rs.5.75 lakh crore

Extra 3% interest subvention for timely

farm loan repayments

All govt business to be transacted us-

ing electronic payments – to reduce graft and bring in transparency

INDIAN STATE

Fiscal Deficit for Current Fiscal 5.9% - Next

Fiscal Target 5.1%

Net borrowing Rs.4.79 lakh crore

Growth expected at 7.6%

Crude seen at $115 a barrel.

By Sandhya Iyer

Credit & Risk Management

144, Santhome High Road, Santhome, Chennai - 600 004

7

SCUF—News Letter—Breeze—April, 2012

DEFINITION: It is a heavy yellow, inert, metallic ele-ment that is highly ductile and malleable. It is a precious metal (used in the manufacture of coins, jewel-lery), recovered by mining. It is not subject to oxidation or corrosion,

Gold is a chemical ele-ment whose symbol is Au derived from Latin word ―Auram‖ meaning gold. The atomic number of gold is 79.

PROPERTIESOFGOLD:

1.Gold is insoluble in Nitric acid which dissolves other basic metals like Silver and Copper.

2.Gold is classified as non-ferrous metal.

3.It is further classified as precious metal.

4.Density of gold is 19300 Kg /Cubic metre, Melting point is 1064.18 degree Celsius. Boiling point is 2856 degree Celsius.

5.Gold can be used in In-dustry, Medicine, Com-puters, Jewellery and Elec-tronics.

6. In medical field gold is used in surgery to patch damaged blood vessels, nerves, bones and mem-branes. It is also used in dentistry.

7. One of the most exciting uses of gold in medicine is precision delivery of medi-cation to fight cancer.

TOP 5 COUNTRIES PRO-

DUCING GOLD

1.AUSTRALIA

2.SOUTH AFRICA

3.USA

4.CHINA

5.CANADA

America has the largest

Gold Mine in the world.

Quality of gold is indi-cated as CARAT convert-ing to Caratage into fine-

ness.

CONCLUSION

India is the largest market for gold jewellery in the world. The Gold demand in the 3rd Quarter of 2011 reached 1053.9 tons in the world. Virtually all markets saw strong double digit growth in demand for Gold bars. The future will see gold being used in a multi-ple of new products and processes. Gold Medals are given to outstanding sports-men for their excellence in sports in the Olympics and other international Games. Banks, NBFCs like ours are giving Gold loans. There is a lot of potential in the fu-ture for lending against gold jewellery.

It contains

1.BIS MARK

2.FINENESS

3.ASSAYING AND HALL MARKING CENTRES MARK

4.YEAR OF MAKING

5.JEWELLERS MARK.

If all the marks are found in the jewellery it is pure 22 carat Gold.

By

Shri V. Shriram

Consultant

Audit Dept.,

HO.,

Mylapore

Chennai—4.

DEFINITION OF ALLOY :

An Alloy is a combination of 2 or more metals;

Alloy is of two types: 1.Binary Alloy 2,Ternary Alloy.

BINARY ALLOY: Combina-tion of two pure metals eg; Gold + copper.

TERNARY ALLOY: Combi-nation of three pure metals eg; Gold + Copper + Silver.

22 carat yellow gold con-tains Gold 91.6 % ,Silver 3.2 % and Copper 5.2 %.

18 Carat yellow gold con-tains Gold 75 % Silver 12.5 % and Copper 12.5 %.

18 carat red gold contains Gold 75 % Silver 4.5 % and Copper 20.5 %.

H A L L M A R K

By a Royal decree in Eng-land in the year 1239 all articles had to be brought to

Goldsmith Hall in London. It was then tested and stamped officially with the mark of Goldsmith‘s Hall which is now referred to as HALL MARK.

CARAT % of PURITY

24 CARAT 100

1 CARAT 4.167

23 CARAT 95.84

22 CARAT 91.67

21 CARAT 87.50

20 CARAT 83.34

19 CARAT 79.17

18 CARAT 75.00

RBI have issued fresh guidelines to NBFCs on the gold loans ex-tended by them to c u s t o m -ers which are as

under :

NBFCs are required to maintain Loan to Value ( LTV) ratio not exceeding 60% for loans granted against the collateral of gold

jewellery.

NBFCs should not grant any advances against bullion /primary gold and

gold coins

8

SCUF—News Letter—Breeze—April, 2012

Meetings are a place not only

to get information, but also

where people make judg-

ments about each other.

Meetings are your stage to

present yourself in a positive

light. Learn how to make the

meetings you attend work for

you.

Making Your Entrance:

· Enter decisively.

· Don't stand in the doorway

· While standing, shake

hands, and call people by

their first names.

· Introduce yourself to those

you don't know.

· If you are seated and intro-

duced to someone new,

stand up, smile, and shake

hands.

Where to Sit:

· Avoid sitting at either end of

the table.

· Don't sit next to the chair-

person or senior officer. That

chair may be reserved for his

or her aide or secretary.

· If you're not familiar with

the seating arrangements,

ask if it's okay to sit any-

where.

What Not to Do

· Don't fiddle -- leave paper-

clips unbent and don't

bounce them.

· Don't doodle on a notepad.

(People will start trying to see

what you're doing. And this

draws attention to the fact

that you're not paying atten-

tion.)

· Don't chew gum or pop

mints or candy into your

mouth.

· Don't ask for coffee or other

refreshments unless they are

being offered.

· If food and drinks are of-

fered, clear your plate as

soon as possible.

· Avoid letting your mind

wander, no matter how boring

the meeting may seem.

Pay Attention to Your Body

Language

· Sit straight, both feet on the

floor.

· Even though you're sitting

straight, appear relaxed, and

attentive.

· If you do cross your legs,

cross them at the ankles.

· Don't cross your arms in

front of you; it communicates

resistance -- or even hostility.

Some other tips for speaking

at meetings:

· Don't stand up, unless peo-

ple routinely stand while

speaking at such meetings or

unless you're asked to stand

up.

· Take a second to frame your

thoughts. You don't have to

start blurting out something

the second you're called upon

to speak.

· BLT -- Put the „bottom line

on top‟. Say the most impor-

tant thing first.

· Be brief.

· Don't ramble.

· Don't repeat yourself.

· Use positive language.

· Never begin with an apol-

ogy, e.g., "This might not

work, but. . “

· Avoid confrontational lan-

guage such as, "That idea

won't work," or "That's com-

pletely irrelevant to the is-

sue."· Use "we." Whenever

referring to your department,

company, team, or a project

group, always use the pro-

noun "we." If things are going

well, it shows you're a real

team player by sharing the

glory. If things are going

poorly, it takes the focus off

you.

· Whatever you say, say it

with authority. Use a confi-

dent tone.

———————————

Wish you all the best

for FY 2012-2013.

———————————

Our News Letter

“Breeze”

can be accessed in the

following URL:

http://27.251.33.232

We are glad in present-ing the issue—April, 2012. This is the 3rd

year of its launching.

We invite your sugges-tions, articles, news items pertaining to our activities, events held at your offices, achieve-ments made and write-up on matter of interest to share with our col-leagues .

We wish to record our sincere appreciation

to

Sri P.N.K.Sriranganathan, Retd., Senior Consultant,

for the contribution made by him for the

successful release of “Breeze” in these 24

months.

Meeting Etiquette: By Chella Rajesh, HO, Mylapore,

From Editorial Desk:

Communication Address:

Editorial Committee, (News Letter—Breeze)

SCUF, Santhome Office, Chennai—600 004 Phone: 43925300

Email: efchennai@shriramcity.in

Editorial Committee

Shri K.Subramaniam, (Senior Consultant, HO.)

Smt M.Subhashree, (TED., Santhome Office)

Sri M.Radhakrishnan,

(Consultant, Santhome Office)