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Group MembersGroup Members

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It means A financial institutions that is company A non-banking institution that is a company whose

principal business is the receiving of deposits under any

scheme or arrangement or lending in any manner Other non banking institutions with prior approval of GOI. It excludes FI which carry on agricultural operations as their

principal business. It is only non banking institution that is any hire-purchase

finance, investment, loan or mutual benefit financial

company and an equipment leasing company but excludesand insurance company/stock exchange/stock brokingcompany/ merchant banking company.

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FROM 6,DEC 2006 THE NBFC ARE

Investment Company (IC)

Loan Company (LC). Asset Finance Company (AFC)

'AFC' is defined as a financial institution whoseprincipal business is that of financing the

physical assets which support variousproductive/economic activities in the country.

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Does NBFC registered with RBI :

Does NBFC registered with RBI IN section 45-IA RBIAct,1934 NBFC should be registered with RBI. BUT not forall category of NBFCs. There are certain category of NBFCwhich are regulated by other regulators

.

As.. Housing finance companies are regulated by

NATIONAL HOUSING COMPANIES Venture capital fund,Stock broking companies are registered with SEBI.

Insurance companies holding a valid certificate of

registration issued by IRDA. Nidhi companies registered

under section 620-A companies Act 1956

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A NBFC cannot accept demand deposits(demand deposits are funds deposited at adepository institution that are payable on

demand - immediately or within a very shortperiod - like your current or savings accounts.

It is not a part of the payment and settlementsystem and as such cannot issue cheques to its

customers; and deposit insurance facility of DICGC is not

available for NBFC depositors unlike in case ofbanks.

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1. An equipment leasing company ( ELC)

2. A hire purchase company ( H PC)3

3. An investment company (IC)4

4. A loan company(LC)5

5. A mutual benefit financial companies ( MBFC)I.e. Nidhicompanies

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Depending on the nature and type of serviceprovided.

Asset Finance, Consumer Finance, Investment,and loan company, and factoring and forfaitingorganization-RBI

Housing finance companies-NATIONAL H

OUSING BANK Merchant banking organizations, stock broking

firm,depositories, credit rating agencies, andventure capitalfunds-SEBI

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Brokers of the Loanable funds.

Mobilization of savings.

Channelisation of Funds into Investment.

Stabilize the Capital Market.

Provide Liquidity

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As recognized by RBI and expert committees

Development of sectors like Transport & Infrastructure

Substantial employment generation

Help & increase wealth creation

Broad base economic development

Irreplaceable supplement to bank credit in rural segments major thrust on semi-urban, rural areas & first time buyers /

users

To finance economically weaker sections

Huge contribution to the State exchequer

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70-80%of Commercial Vehicles are finance driven

Indian economy is more dependent on roads

Heavy Govt. outlay for mega road projects Heavy replacement demand anticipated 30 lacs commercial

vehicles by the year 2007

Another Rs.6000 Crores required for phasing out oldcommercial vehicles

CRISIL in its study has placed commercial vehicle financingunder low risk category

Each commercial vehicle manufactured, sold and financedgives employment to minimum 20 persons (direct and indirect)

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As recognized by RBI & Expert Committees /Taskforce

Development of sectors like Transport & Infrastructure

Substantial employment generation

Help & increase wealth creation

Broad base economic development

Irreplaceable supplement to bank credit in rural segments

major thrust on semi-urban, rural areas & first time buyers/ users

To finance economically weaker sections

Huge contribution to the State exchequer

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Requirement for registration A Non Banking financialCompany should have minimum net owned fund 2crore. The company is required to submit itsapplication for registration in the prescribed formatalong with necessary documents for bankconsideration.

Eligibility criteriaEligibility criteria for accepting Public Deposits An NBFChaving NOF of Rs 200 lakhs and above can accept publicDeposit. It has to obtain Minimum Stipulated Credit Ratingfrom any one of the approved Credit Rating Agencies at leastonce in a year.

Copy of the Credit Rating should be sent to the RBI alongwith the Return on Prudential Norms. The NBFC should haveacquired a credit rating of not less than AAA rating or its

equivalent in the previous year. 16 Non Banking FinancialCom an NBFC 9 9 2009

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L&T Finance Limited (LTF) is one of the wholly ownedsubsidiaries of Larsen and Toubro. It was incorporated as a NonBanking Finance Company in November 1994. Through LTF, L&Taims at making a strong foray in the ever-expanding financialservices sector.

LTF offers a spectrum of financial products and services for trade,industry and agriculture. The company's focus segments arecorporate products, construction equipment, CVs and tractors.

Larsen & Toubro Ltd is a USD 9.8 billion technology, engineering and

construction group with operations spread across the globe. It was ranked as

14th by the Economic Times in their survey of the Top 500 Companies in

India. Another feather in its cap was added when L&T was ranked 47th in the

world in the June 2009 issue of Forbes-Reputation Institutes Worlds Most

Reputable Companies survey. In this survey, L&T was the only engineering

and construction company in the world to have made it to the top 200.

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L&T Finance Limited (LTF) is a subsidiary of Larsen and Toubro.It was incorporated as a Non Banking Finance Company inNovember 1994. Through LTF, L&T aims at making a strong forayin the ever-expanding financial services sector

Mission

To be a strategic business partner and a solution provider To nurture human capital and develop leadership for professional

excellence through meritocracy and continuous learningenvironment.

Vision To be a dominant player in financial services, committed to

constant innovation and sustained customer service to enhanceshareholder's wealth. LTF will foster trust, uphold integrity andradiate positive energy."

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Y. M. Deosthalee, Whole-time Director and CFO, Larsen &

Toubro Ltd. Mr. Deosthaleejoined Larsen & ToubroLimited (L&T) in 1974 and assuming charge as General

Manager (Finance) in 1990

Sivaraman, Senior Vice President, Financial Services, Larsen &

Toubro Ltd.N.

R. Shankar Raman, Senior Vice President, Finance & Legal,

Larsen & Toubro Ltd.

Dinanath Dubhashi, Chief Executive

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Commercial Vehicle Finance In 1996, L&T Finance hadmade a foray in financing of commercial vehicles.

L&T Finance offers financing Commercial Vehicles of

all makes and sizes. We also undertake funding of thebody for the Commercial Vehicles.

Advantages of partnering with L&T FinancePresence in more than 70 locationsFlexible repayment optionCompetitive interest ratesFinance for used vehicles available

Faster loan approval and disbursement

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L&T Finance's Rural product finance division caters to the financeneeds of the rural customers and helps them to realize theirdreams.

L&T Finance offers Rural Financing in 17 states with 72 branchesand a dedicated field force.

Advantages of partnering with L&T Finance

Presence in more than 75 locations covering more than 220districts

Customized repayment optionFaster processing timeAttractive interest rateFlexible repayment optionStrong presence in Semi-Urban and Rural IndiaCredit life insurance cover available

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Loan Amounts

Loan amounts may vary from member to member between Rs. 10,000/- to Rs. 20,000/-.

Tenure of Loan and Frequency of RepaymentMicrofinance loans are issued for a tenure of up to 12-18 months and

recovered in equal monthly or weekly installments.Agriculture loans are issued for approx. 8 to 10 months and recovery is

scheduled in 2 installments synchronizing with the harvest time which

falls mostly in May and December months.

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At L&T Finance we understand that effective management of cashflows is of paramount importance for success of your business.We, at L&T Finance cater to these needs in order to enhance yourbusiness competency as well as that of your strategic partners.

Advantages of partnering with L&T Finance

Stable and improved cash flows

Faster and timely availability of funds

Reduction in levels of receivables

Payment risk transferred away from youLargely reduced responsibility of client management

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As a budding corporate, gunning for success, youcannot let lack of financing for your equipment holdyou back. At L&T Finance, it is our endeavour tosupport you as you grow from strength to strength and

scale the ladder of success..

Advantages of partnering with L&T FinanceAttractive interest rate offered

Instant cash for youWe maintain minimum TAT in loan sanctioning

& disbursementCustomer orientation - we match the repayment

terms with your companys cash flows

Tax benefits can be claimed by you

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As a promoter, a corporate, a high net worth individualor a retail client, fortifying, expanding and managingyour capital market portfolio is an important aspect ofaugmenting your income and cash flows.

At L&T Finance we offer you products that financeyour capital market investment. Ranging from offeringloans on your existing securities to financing IPOs and

ESOPs, we provide you with diverse offerings for youto choose from, fulfilling all your needs under one roof.

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nder Project Financing we offer products for businessdevelopment, project appraisal and client relationshipmanagement. This includes portfolio monitoring and collections.

PFG structures and provides customised solutions such as termdebt, sub-debt, quasi-equity funding, equity investments, etc.

The project appraisal process includes risk analysis. These risksare mitigated through appropriate project structuring, andenhance project viability.

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L&T Finance provides personalized financial solutions to retailcustomers in the form of Insurance and Mutual Funds. L&TFinance is also involved in selling risk products to the openmarket. These products are offered to you under the Smartrupeebrand name.

Transactional ServicesWe at L&T Finance service your needs by provide transaction facility inmutual funds, corporate FDs, bonds, reminders on insurance premiums,information on new fund offers, IPOs etcRisk Mitigation

L&T Finance sells risk mitigation products of motor, health etc. CPMpackages are provided to loan customers. Creditlife products to supplementMicro Finance loans are also offered.

Advisory Services

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