CHAPTER-1

INTRODUCTION

1. INTRODUCTION OF THESTUDY

Financial Planning is an indispensable activity for businessman, Student, self

employed, Professional, etc., But it is critical for a salaried People. The reason for this
limited and fixed resource for generating a flow of income. It is important to understand the
spending and saving pattern. Being productive alone is not sufficient it is critical to be more
efficient and effective money wis
Some of the benefits like life and health insurance for salaried employees provide
risk coverage. One can make better financial plans through tax savings and paying proper
taxes. Tax planning allows all elements of the financial plans to function in system to
delivers maximum tax efficiency.
In short first save for the financial goals and then spend wisely for our needs if our
hard earned money does not work hard for us, the whole purpose of earning get departed one
must take charge his/her finances to ensure financial stability and independence.

The tax is also important for all the people. Tax is a leivied the by a government on
a product, income or activity. There are two types of taxes – direct taxes and indirect taxes.
If tax is levied directly on the income or wealth of a People, then it is a direct tax e.g.
income-tax. If a tax is levied on the price of a good or service, then it is called an indirect
tax e.g. excise duty. In the case of indirect taxes, the People paying the tax passes on the
incidence to anotherPeople.
MAEANING:

Financial planning is the process of achieving your life goals by using different investment
options with your current resources through proper and disciplined money management. So
financial planning is not only about money but it is all about life, about fulfilling your wishes,
dreams, aspiration and your enjoyment is achieving them. Financial planning is the procedure of
developing a Peopleal road map for the financial well being of the investor. Below are the inputs
of the process of financial planning:

The finances of the investor, i.e the income of the investor, liabilities,and his/her assets. The risk
appetite of the investor.

The goals of the investor, I.e. his/her future ans current financial requirements.

1.2.2 OBJECTIVE OF FINANCIAL PLANNING

To ensure the availability of funds: The financial planning is a procedure of fund generation
and making that fund available at the tike of the requirement of the investor.

To generate the capital structure: The capital structure majorly consists of the company's
capital, which is, the proportion and kind of the capital that is needed in any business.

Time and source of fund estimation: Time is one of the game-changers for any business. It is
essential to deliver the right fund at the right place at the right time. It is as important as the
amount generation itself.

Avoiding the not so necessary funds: an important objective of every company is to ensure that it
does not raise any unnecessary resources. Shortage of fir, and fund are unable to meet the
obligations of the payment.

1.2.3 IMPORTANCE OF FINANCIAL PLANNING

Financial planing is something that defines the targets of a company,techniques, policies,

financial activities last for the long term. The importance of financial planning is as follows:

It guarantees adequate funds.

The financial planning helps to ensure harmony between the incoming and outgoing of assets
with the goal with which the stability is kept up.

This planning also supports the expansion and developmental programmers that supports the
long-run organizations substances.

The planning also decreases the chances of vulnerabilities if an organization wants to change the
pattern of its business sector.

FINANCIAL PLANNING FOR BEGINNERS

Financial planning is a procedure wherein one gets his/her financial framework for achieving
his/her life goals in a very planned and systematic way.The beginners should focus on the below
point while making a financial plan:

 Manage money
 Regulate their expenses wisely
 Manage and maintain a Peopleal balance sheet
 Planning well for retirement
 Make a Peopleal portfolio of investment
 Planning the taxes

1.2.1 FINANCIAL PLANNINGPROCESS

The financial planning process that one should follow to achieve his/her financial goals is as
follows:

Step 1: Understanding the current financial situation: Those who want to start financial
planning must understand his/her present financial situation. It is suggested to understand the
source of income,assets, debt, liabilities, etc. It provides a clear picture of ones current
financial situation.
Step 2: Understand the goals: Every member of the family must list down the current and
future goals of the family. After understanding the goal, it is suggested to prioritize every goal by
taking the consensus of all the members of the family and keep a period foreach
Step 3: Know the financial gaps: Once a People understands where he/she stands financially,
and where he/she or his/her family wants it to be, he/she will be able to know the financial
gaps.
Step 4: Make Peopleal financial plan: After understanding the financial status, goals and
gaps, it is time to make some Peopleal financial plan. For the same, it is suggested to review
different options of investment like mutual funds, stocks,PPF, Fixed deposits, bonds, etc and
get to know which instrument or combination of any of these best suits therequirements.

ADVANTAGES OF FINANCIALPLANNING:

The financial planning helps to maintain a good balance between expenses and
income. The plan helps to take care of the cash flow and hence reduces the
unwanted expenditure. Helps in crating corpus and improve savings.
For maximizing the investment returns.

For reducing the tax liability.Ensures a financially secure post retirement life.

INVESTMENTS PLANS FOR SALARIEDEMPLOYEES

Salaried individuals have different investment requirement than self-employed or

other professionals. They have fixed monthly cash inflow to meet their expenses and save
for various life goals. While most of the salaried individuals are covered under post-
retirement security in the form of employees provident fund or other mandatory retirement
schemes, the corpus generated are often inadequate to meet post-retirement schemes.

1.Equity Mutual Fund

Equity mutual funds (MFs) invest at least 65% of their corpus in equities. Being
invested in equities, these funds outperform fixed income instruments and inflation by a
wide margin over the long term. These funds are best suited for retail investors who want to
invest in stocks but Investment in equity mutual fund can be started with just Rs 5000 for
lumpsum and additional investments can be made for just Rs 1000. In case of ELSS, the
 minimum and subsequent investment amount is Rs 500 per month. If you opt for SIPs
instead of lumpsum investment, the minimum instalment is Rs 500 and Rs 1,000 for ELSS
and other mutual funds, respectively.

2. Debt Mutual Fund

Debt mutual funds invest in fixed income instruments such as corporate debt securities,
corporate bonds, government securities, and money market instruments, among others. Although
debt funds are prone to minimal risk, they are less volatile than equities generating higher returns
than fixed deposits. Moreover, unlike fixed deposits, debt funds do not levy premature
withdrawal penalty. However, a few debt funds may charge exit load of up to 3% on redeeming
your investment before a pre-determined period.

3. Fixed Deposit

Fixed deposits guarantee interest income and principal repayment at booked rates, regardless of
any changes in the card rate during the deposit tenure. At present, small finance banks offer
highest card rate of up to 9% p.a. (up to 9.6% p.a. for senior citizens) while the highest card rates
offered by other private sector banks go up to 8.25% p.a. (8.75% p.a. for senior citizens). The
highest card rates offered by public sector banks go up to 7% p.a. (up to 7.5% p.a. for senior
citizens). One can also save taxes under Section 80C by investing in tax-saving FDs. However,
interest earned is taxable as per tax slab of the depositor. These tax-saving FDs come with a
lock-in period of 5 years.

4. Public Provident Fund

PPF is one of the safest funds among all investment options because of the sovereign
guarantee from the government. PPF investments also qualify for tax deduction under Section
80C. With a lock-in period of 15 years, PPF is currently offering 8% returns compounded
annually. However, the Ministry of Finance reviews the interest rate every financial quarter basis
the government bond yields. Additionally, you can extend your investment period .

5. National Pension System

NPS is a market-linked product for retirement planning. Salaried investors not falling under the
‘Government or Corporate’ model can join NPS under the ‘All Citizens of India’ model. The
investments remain locked-in till you reach 60 years of age, which can be extended up to 70
years. Minimum 40% of the accumulated corpus has to be invested to avail annuity while the
remaining tax-exempt amount is withdrawn on maturity.

6. Voluntary Provident Fund

VPF is an extension of the EPF, yielding the same interest rate. Apart from mandatory
contribution towards EPF, you can voluntarily choose to increase your contribution to up to
100% of your basic salary and dearness allowance in VPF. The interest rate is reviewed by the
government every year and the investment amount qualifies for tax deduction under Section 80C.
The interest earned is tax-exempt provided the employee continues to be in service for 5 years or
more.

7. National Savings Certificate

National Savings Certificate is a fixed income investment scheme with a lock-in period of 5
years offering an interest rate of 8% compounded annually. Just like the PPF, the NSC interest
rates are reviewed every quarter. With minimum deposit of Rs 100 and no maximum deposit
limit, you can claim tax deduction of up to Rs 1.5 lakh under Section 80C.

8. Unit Linked Insurance Plan

ULIP combines life insurance with market-linked investment. A part of the premium goes
towards insuring your life while the other part is invested in stocks, bonds, market instruments,
etc. They offer both death and maturity benefits. ULIPs come with a lock-in period of 5 years
and qualify for tax deduction under Section 80C
CONCEPT OF TAXPLANNING

Tax Evasion

Tax Evasion means not paying taxes as per the provisions of the law or minimizing
tax by illegitimate and hence illegal means. Tax Evasion can be achieved by concealment of
income or inflation of expenses or falsification of accounts or by conscious deliberate
violation of law.

Tax Evasion is an act executed knowingly willfully, with the intent to deceive so that the tax
reported by the taxpayer is less than the tax payable under the law.

Example: Mr. A, having rendered service to another People Mr. B, is entitled to receive a
sum of say Rs. 50,000/- from Mr. B. A tells B to pay him Rs. 50,000/- in cash and thus does
not account for it as his income. Mr. A has resorted to Tax Evasion.

TAX LAW IN INDIA

The levy of income tax in India is governed by the income tax act 1961. Tax is a fee
charged by a government on a product, income or activity. For salaried assessees, the
approach for tax planning must be three fold: First is investing in savings schemes out of the
current year income, so as to reduce the tax liability to the absolute minimum. Next is
effecting proper investment of the surplus, if any, after meeting expenses (including taxes)
so as to reap (i) the maximum tax benefit on the income from such investments and (ii) to
obtain maximum returns on the investments. Finally, planning some special measures in the
pre-retirement stage as well as effecting investment of retirement benefits in appropriate
areas so as to ensure regular and adequate flow of income after retirement.

TAX AVOIDANCE

Tax Avoidance is the art of dodging tax without breaking the law. While remaining
 well within the four corners of the law, a citizen so arranges his affairs that he walks out of
the clutches of the law and pays no tax or pays minimum tax. Tax avoidance is therefore
legal and frequently resorted to. In any tax avoidance exercise, the attempt is always to
exploit a loophole in the law. A transaction is artificially made to appear as falling squarely
in the loophole and thereby minimize the tax. In India, loopholes in the law, when detected
by the tax authorities, tend to be plugged by an amendment in the law, too often
retrospectively. Hence tax avoidance though legal, is not long lasting. It lasts till the law
isamended.

Example: Mr. A, having rendered service to another People Mr. B, is entitled to receive a
sum of say Rs. 50,000/- from Mr. B. Mr. As other income is Rs. 200,000/-. Mr. A tells Mr. B
to pay cheque of Rs. 50,000/- in the name of Mr. C instead of in the name of Mr. A. Mr. C
deposits the cheque in his bank account and account for it as his income. But Mr. C has no
other income and therefore pays no tax on that income of Rs. 50,000/-. By diverting the
income to Mr. C, Mr. A has resorted to TaxAvoidance.

Tax Planning

Tax Planning has been described as a refined form of tax avoidance and implies
arrangement of a Peoples financial affairs in such a way that it reduces the tax liability. This
is achieved by taking full advantage of all the tax exemptions, deductions, concessions,
rebates, reliefs, allowances and other benefits granted by the tax laws so that the incidence of
tax is reduced. Exercise in tax planning is based on the law itself and is therefore legal and
permanent.

Example: Mr. A having other income of Rs. 200,000/- receives income of Rs. 50,000/- from
Mr.

B. Mr. A to save tax deposits Rs. 60,000/- in his PPF account and saves the tax of Rs.
12,000/- and thereby pays no tax on income of Rs.50,000.
TAX MANAGEMENT

Tax Management is an expression which implies actual implementation of tax planning ideas.
While that tax planning is only an idea, a plan, a scheme, an arrangement, tax management is the
actual action, implementation, the reality, the final result.

Example:Action of Mr. A depositing Rs. 60,000 in his PPF account and saving tax of Rs.
12,000/- is Tax Management. Actual action on Tax Planning provision is Tax Management

INCOME SLAB AND TAX RATES FOR FY2020-21

Taxable income Tax Rate

Up to Rs. 250000 Nil

Rs. 250001 to Rs. 500000 5%

Rs. 500001 to 1000000 20%

Above Rs. 1000000 30%

STRATEGIES FOR TAX SAVINGS: TAX SAVING INSTRUMENTS UNDER THE

INCOME TAX ACT1961.

Section 80C - The maximum tax exemption limit under Section 80C has been retained as Rs
1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax
deductions under section 80c are as below:
PPF (Public Provident Fund), EFP (Employee Provident Fund), ELSS (Equity Linked
Saving Scheme), Life Insurance Premium, NSC (National Saving Certificate), Kids Tuition
fee, Principle repayment of home loan, SCSS (Post office Senior Citizen Saving Scheme).
Section 80CCC - LIC (Life Insurance Corporation of India)

Section 80CCD - Employee can contribute to Government notified Pension Schemes (like
National Pension Scheme – NPS).
Section 80D - Deduction u/s 80D on health insurance premium

Section 80DD - Medical treatments of your dependents (spouse, parents, kids or siblings)
Section 80DDB - Senior Citizens, it is mandatory for an individual to obtain ‘Doctor
Certificate’ or ‘Prescription’ from a specialist working in a Govt or Privatehospital.
Section 80E - Take any loan for higher studies

Section 80EE - deduction for interest on housing loan borrowed for acquisition of self
occupied house property by an individual.
Section 80G - Charitable institutions can be claimed as a deduction under Section 80G of
the Income Tax Act.
Section 80GG - The Tax Deduction amount under 80GG has been increased from Rs
24,000 per annum to Rs 60,000 per annum.
1.2 STATEMENT OF THE PROBLEM:

Financial planning may be a process that an individual goes through to seek out
where they're now (financially), Financial Planning is an integral part of any individual life,
especially in this modern world where value of everything is expressed in terms of money
determine where they need to be within the future, and what they're getting to do to urge
there. Financial Planning provides direction and aiming to take financial decisions. It allows
understanding of how each financial decision a private make affects other areas of their
finances Tax planning is an essential part of financial planning. Efficient tax planning enables
us to reduce our tax liability to the minimum.

1.3 OBJECTIVE OF THE STUDY

 To understand financial planning done by salaried .employees

 To spread the awareness of the about financial planning among the working people

 To understand the saving investment behavior of salaried employees

 To understand the importance of tax planning

1.4 SCOPE OF THE STUDY

The scope of the study is getting familiar with various investment scheme available in
the market to study the life stages of an individual and to identify the risk tolerance,
income flow life goals and current investment

Study should could all the area of the individual financial needs,and should result in
the achievement each of the individual goals

The scope planning will include the following:

  Risk management and insurance palnning
 Investment planning
 Retirement planning
 Tax planning

1.5 NEED OF THE STUDY

A salaried People should be aware of the income- tax laws as it related to income, the
deduction and reliefs that are available. To analyze the safe investment and to find out the
strategies of tax savings under the income tax act. The needs of study have to fill the gap that has
identified in the previous researcher.

1.6 SIGNIFICANCE OF THE STUDY

Financial Planning is an integral part of any individual life, especially in this modern world
where value of everything is expressed in terms of money. The active working span of human
life is short as compared to the life span. This means people will be spending approximately
the same number of years in after retirement what they have spent in their active working life.
Thus, it becomes important to save and invest while working so that People will continue to
earn a satisfying income and enjoy a comfortable life style.

1.6 LIMITATIONS OF THE STUDY

o The period of study is limited.

o People generally were reluctant to disclose information relating to their savings,

investments and tax planning measures.

o The study has a limitation of time, place and resources

1.7 RESEARCH METHODOLOGY

RESEARCH DESIGN: DESCRIPTIVE DESIGN

Descriptive design refers to research questions, design of the study, and data analysis
for the study. Descriptive research includes surveys, findings and enquiry. Descriptive
research method can be used in multiple ways and for various reasons. This design can be
identified by characteristics, data trends, conduct comparisons, validate existing conditions
and conduct research at different time periods.

1.7.1 RESEARCHPROCESS

Target Respondents: Salaried Employees

Population: Infinity

Sample Size: 100

1.7.2 SAMPLINGTECHNIQUE
The sampling method used for the research is Probability Sampling method because the
population is infinite. The sampling technique selected for the study is Simple Random Sampling
Technique. In this technique, the respondents are selected from the total population. Random
sampling has an equal chance of being selected out of population. The sampling will be collected
by simple random sampling method

1.7.3 DATA COLLECTIONMETHODS

Primary Data

The primary data has collected for the study was through questionnaire.

Secondary Data

The secondary data refers to the information gathered by sources of already existing.
Websites, Books, Old projects, Journals, etc.

1.7.4 TOOLS FORANALYSIS

PERCENTAGEANALYSIS

Percentage refer is a special kind ratio. Percentage is used in making comparison

between two or more series of data. They are used describe relationship. More over
percentage can be use to compare the relative term of the distribution of two or more series
ofdata.

Number of respondents
Percentage = Totalnumberof ∗ 100

Samples

CHI-SQUARE
 Chi-square is a non parametric technique; it is most commonly used for a research to
test the analysis. The main objective of chi-square is to determine whether significant
difference exist among group of data. The chi-square test provides a method testing the
association between the row and column in a two way table.

A chi-square test, also written as χ2 test, is a statistical hypothesis test there may be
situation in which it is not possible to make any rigid assumption about distribution of the
population from which samples being drawn. This limitation has led to the development of a
group of alternative technique known as a non parametric test. Chi-square describes the
magnitude of the discrepancy between theory and observation.

The Chi-Square is denoted by χ2 and the formula is:

χ2 = ∑ (O − E)2 / E
 CHAPTER 2

2.1 REVIEW OF LITERATURE

GS Sumesh, Awareness and perceptions regarding tax planning options among

salaried people (2020). To avail of these benefits, one should have good knowledge and
awareness in both the Income Tax act and the annual finance budget of union ministry.
Under this circumstance, an attempt is made to measure the level of awareness and
perception towards tax planning schemes among salaried employees. For this study,
responses are collected from salaried employees in Kottayam taluk and their responses are
analyzed and presented by using different statistical tools to make aconclusion.
Siddhaarth Dhongde, Vilas Epper, Tax Saving Investment Strategies among
Salaried Individuals in Aurangabad City (2020). “. The objective behind this research
paper is to understand tax saving investment Management strategies among salaried
individual. On the same point view this research is an attempt to understand investment
preference pattern and tax saving investment patterns among salaried individuals. Study
outcomes reveals that the foremost adopted combination of tax saving instrument are PPF
(Public Provident Fund), which got the primary rank during this study and therefore the
other are Children education, LIC, Home Loan, NPS and other priority gives to Medical
Insurance, National saving certificates, Fixed Deposits andELSS.

Ali Medabesh, Asif Jeelani Khan(2018), Financial Assets and the preference of salaried
class Assesses (2018). The habit of investment in financial assets plays an important role in
financial planning of an individual. The financial assets not only provide benefits in terms of
returns and tax savings among others, plans like SIPs (Systematic Investment Plans) oblige an
individual to save certain portion of earnings. The financial assets can assert great attraction as
the investment in financial assets does not require large amounts of money at once unlike
physical assets. A good portfolio can help investor to earn good returns, the salaried class in
Jammu & Kashmir, however, are reserved with their preference for financial assets

Kumar Manish, Study(2019) of tax saving instruments awareness and perception of

individual assesses in Delhi, Faridabad, 2019.. The purpose of the study is to learn about the
factors effecting selection of tax saving instruments by individual assessees in Delhi. To assess
the level of awareness an individual assessees has towards tax saving instruments available as
per The Income tax laws. The study also tries to identify the most appropriate and prevalent tax
saving instruments used by individual assesses to reduce their tax liability. The research will try
to assess relation between the demographic profile of the individual and tax saving instruments
adopted by them newline

Preeti kalgutkar (2018), Tax awareness and tax planning on wealth creation of
individual Assesses, Journal of Management 2(1), 11-23, 2018. This research paper is
related to Peopleal financial aspects of individual assesses. As every individual assesses who
have earned yearly income which is more than a limit as prescribed by the income tax law is
liable to pay tax. Tax planning does not mean skipping the payment of income tax it is just
efficient allocation of earned income in different tax saving investment to acquire max benefit
by individual assesses. The objective of this paper is to study the relationship between tax
awareness and planning on wealth creation of individual assesses in the form of different
investment which is prescribed by income tax laws.

Benny Bitto (2018), A Study on Tax Awareness and Planning Measures adopted
by the Salaried Class in Bangalore City, Vol. 9, Issue 1, June 2018. This researcher
generally focuses on the study of tax planning and awareness class. The study has a crucial
role in the modern economy. As the citizen of the country individual is liable to pay tax for the
development of the country. The reviewed article point out the importance of tax planning
measures and the awareness among theindividual
 Prof. Uma Durgude, Prof. Hemant Malviya (2017), Financial Planning for salaried
Employee and Strategies for Tax Savings, Vol 02, Special Issue 03, 2017. The word Tax is
derives from the Latin word called “Taxove” and “Taxo” means to estimate appreciate or
value. The word income tax itself implies it is a tax on earnings. It plays vital role in the
national economy. The ever increasing function of the government have naturally lead to
increasing expenditure for instance achieving the social and economic objective laid down in
the constitution reducing the inequality of income, removing the concentration of economic
power in few hands balancing regional economic growth and soon.

K. Saravanan, K. Muthu Lakshimi (2017), Tax Saving Scheme and Tax Saving
Instruments of income Tax in India (A.Y 2017-18 & 2018-19), Vol 5, Issue 07, January
2017. This is done by legitimately taking advantage of all tax exemptions, tax saving scheme,
deductions under chapter VI A, rebates and allowances while ensuring that your investments
are in line with their long-term goals. The purpose of the study is to find out the most suitable
and popularly tax saving scheme and tax saving instrument used to save tax and also examine
the amount saved by using thatinstrument

V. Pallavi, P. S. Anuradha (2017), Tax Planning and Investment pattern of

academicians: A Study of Educational Institutions in Bangalore, Journal Taxation 4(2),
112-126, 2017. This research paper aims at studying the investment pattern and the
awareness of various tax planning schemes available for investment for academicians. The
study revealed that the level of awareness among the academicians on various tax saving
schemes is low and Peopleal factors influence the investmentdecisions.

Manjur Alam (2017), Tax Planning awareness and Techniques adopted by

Salaried Assesses(Having house property income), International Journal of Research
in Social Sciences 7(1), 425-437, 2017. Tax awareness is essential part of the tax planning
for the individual assesses. Income tax takes away major chunk of hard earning money of an
assesses. The objectives of tax planning are to reduce the tax liability to the minimum. That
is why in tax planning done in a haphazard manner. Furthermore, the study helps find if the
assesses are aware of the various tax provisions that are available to them and whether they
have made use of them efficiently in order to plan their taxes efficiently

Mr. Bhuvanesh K, Ms. Nandhini R. M (2017), A Study on Tax Planning of

Salaried People in Coimbatore City, Vol 7, Issue 12, Dec 2017. This research paper
indicates that the tax planning is much more than supplies opting for the investment or
financial route that offer the maximum tax breaks. It also does not entail making
unnecessary expenditure or needless investment solely for reducing taxes. Good tax planning
remains integrated and interlinked to a wider exercise that brings stability to financial goals.
Apart from ensuring lower than normal tax liability, the exercise requires considering other
factors. Tax planning of salaried people insists that proper planning of tax deductions to
reduce their tax burden legally. So this study is exploratory research was the data is collected
from the primary and secondary source and also it analyses the way the individual can
exempt from taxliability.

Van Rooij, Kool and Prast, 2021 that financial literacy may be endogenous variable.
Here, it should be better for researchers to study on other explanatory variables beyond
demographics such as age, income, experience, education, etc. which could predict the
financial knowledge level of individuals role on financial decision making or behavior.
These valuable studies highlighted that financial literacy among individuals While aiming to
explain financial decision making or behavior and finding strong evidence of the relationship
between financial literacy and financial decision making or behavior, many studies have not
provide a thorough and explicit explanation how this relation occurred. Accordingly, there
exists little research explaining how financial literacy levels of people caused to financial
behavior such as improved financial management.

Hilgerth, Hogarth and Beverly, 2021 have referred that the researchers should
conscientiously contemplate on the the nexus of causality. They examined the financial
literacy’s role on improved financial management behavior. . It also does not entail making
 unnecessary expenditure or needless investment solely for reducing taxes. Good tax planning
remains integrated and interlinked to a wider exercise that brings stability to financial goals.
Apart from ensuring lower than normal tax liability, the exercise requires considering other
factors..

CHAPTER 3

3.1 INDUSTRY PROFILE

INDUSTRY HISTORY

The Indian textile industry is one of the largest in the world with a massive raw material
and textiles manufacturing bases. Our economy is largely dependent on the textile manufacturing
and trade in addition to other major industries. About27% of the foreign exchange earnings is on
account of export of textiles and clothing alone.

The textile and clothing sector contributes about 14% to the industrial production and 3
% to the gross domestic product of the country. Around 8 % of the total revenue excise
collection is contributed by the textile industry. So much so, the textile industry accounts for as
large as 21 % of the total employment generated in the economy. Around 35 million people are
directly employed in the textile manufacturing activities. Indirect employment including the
manpower engaged in agricultural based raw material production like cotton and related trade
and handling could be stated to be around another 60 million.

This industry is poised to meet the increased global competition in the post 2005 trade
regime under WTO. The consequent effects of unleashing a flood of imported textiles into India
and also making the export markets far more competitive are being felt from now onwards. The
textile industry in India has a strong multi-fiber raw material production base vast pool of skilled
Peoplenel, entrepreneurial talent, and good export potential and low import content. Protection
systems are flexible, dynamic and vibrant.

The Indian Textile Industry counts among the leading textile industries in the world.
Apart from providing the basic necessities of life, its role in the country’s economic growth is
significant. India’s textile industry contributes about 14 per cent to industrial production; 4 per
cent to the country’s gross domestic product (GDP); 17 per cent to its export earnings; and is a
source of direct employment for over 35 million people, which makes it the second largest
provider of employment after agriculture. Abundant raw materials, healthy foreign direct
investments (FDI) and a government willing to invest ensures a bright future for India’s textile
sector.

India has the advantage of abundant resources of raw materials. It is one of the largest
producers of cotton yarn in the world and there are good resources of fibres such as polyester,
silk, viscose, etc. The country is also home to a wide range of cotton fibre and has a rapidly
developing synthetic fibre industry. The most significant change in the Indian textile industry has
been the advent of man-made fibres (MMF). India’s innovative range of MMF textiles finds
presence in almost all the countries across the globe.

PRODUCTION OF TEXTILE

India is the second largest producer of fibre in the world and the major fibre produced
is cotton. Other fibres produced in India include silk, jute, wool, and man-made fibers. 60% of
the Indian textile Industry is cotton based.
 Man Made Fibers: These includes manufacturing of clothes using fiber or filament
synthetic yarns. It is produced in the large power loom factories. They account for the largest
sector of the textile production in India.This sector has a share of 62% of the India's total
production and provides employment to about 4.8 million people.[7]
 The Cotton Sector: It is the second most developed sector in the Indian Textile industries. It
provides employment to huge amount of people but its productions and employment is
seasonal depending upon the seasonal nature of the production.
 The Handloom Sector: It is well developed and is mainly dependent on the SHGs for their
funds. Its market share is 13%.[7] of the total cloth produced in India.
 The Woolen Sector: India is the 7th largest producer. [7] of the wool in the world. India also
produces 1.8% of the world's total wool.
 The Jute Sector: The jute or the golden fiber in India is mainly produced in the Eastern
states of India like Assam and West Bengal. India is the largest producer of jute in the world.

order to overcome the economical and social basic problem of the people and to bring
sustainable development through giving high emphases to the private investment every
developing country must formulate suitable development strategies and policy. In Ethiopian
development endeavors, the relevant and effective policy is formulated and implemented for the
last 10 years. This policy has given emphases for the agriculture and industry sector. In regard to
the industrial sector policy, it prepared to achieve an accelerated pace of competitive and
sustainable industrial growth within a framework of increased market orientation and private
sector development. Such growth should also bring about greater socio-economic development,
including increased employment and incomes, and thereby improved living standards.

The Dire Dawa administration also has taken the federal development objective as frame work in
the administration GTP mainly include the higher growth of industry sector, the optimal use of
material and human resources, higher levels of income and employment, and significant
improvement in living condition and living standards.
In particular, the basic objectives of the industrial policy should be to achieve an accelerated
pace of competitive and sustainable industrial growth within a framework of increased market
orientation and private sector development. Such growth should also bring about greater socio-
economic development, including increased employment and incomes, and thereby improved
living standards. And also the industrial development strategy focuses on export manufacturing
with priority given to textile and garments, leather and leather products, agro-processing, and
small and micro-enterprises.
The very rational of the manufacturing project lies in the strategy of the government that is being
used for implementation of the policies to achieve the overall government goals. The success of
any policy demands for private sector investment, which in turn leads to the inevitability of
industrial development.
The foremost and basic step to make effective this policy is the government incetive to
encourage the investors by various ways. The incentive which the government implements
through its investment proclamation includes the following;
 100% exemption from the payment of import duties and other taxes levied on
imports of capital goods, equipment and spare part up to 15% of the value of
capital invested;
 Exemption from the payment of import duties levied on the import of raw
material for production of export- orientated goods;
 Income tax exemption for periods ranging from three to eight years; and
 Remittance from the proceeds of the sale or transfer of shares or assets upon
liquidation of enterprises to domestic investors is exempted from the payment of
any tax.
In general, in regard to the textile industry economic policy of the country considers it
directly since the industry absorbs large number of work force uses agricultural product
as raw materials.

Yarn is a generic term for a continuous strand of textile fibers, filaments, or material in a form
suitable for knitting, weaving, or otherwise intertwining to form a textile fabric. Yarns play an
important role in the fabric manufacturing process since a majority of the textile materials are
constructed with yarns. Yarns are also used for products such as sewing and embroidery thread,
string, and rope. The most commonly used natural fiber is cotton, accounting almost 50% of the
world-wide consumption of textile fiber. Cotton yarn is a type of yarn made from cotton fibers.
Of various yarns in the world at present, the cotton yarn is predominant not only because it has
many excellent properties in use but because it can be produced and supplied at stable and
reasonable prices. Therefore, with a long history and accumulation of technical know-how as the
largest textile industry of the world, the cotton yarn spinning industry has greatly improved its
productivity based on modernized facilities. Most woven fabrics and knitwear fabrics are made
from cotton yarn which is made in textile spinning factories. Yarn is produced to be an input for
the weaving department in textile mills and to be sold in the market to the handloom industry
where it is made to traditional clothes for women and men.
Regrinding the manufacturing Process of cotton yarn is known as spinning process.
Spinning process is shown in the flowchart given below. Cotton which is in the
form bales is fed to blow room followed by various operations like carding and
combing depends on the requirement. The final yarn of required specifications
are met through these operations and winded.

Cotton Mixing

Combing Blow Room

Drawing Drawing Open End

Ring Frames Ring Frames

 Winding Winding

Carded Yarn Carded Yarn Open end Yarn

Figure-1 Manufacturing Process of cotton yarn

MIXING

Various types of cotton bale is mixed with water depending upon the temperature. If the
temperature is high then the water required is also high, if the surrounding is moisture then the
water required is low.

BLOW ROOM

The process involves opening of cotton and elimination of impurities, such as land, seed
etc. and these principle function carried out by passing cotton a series of machines known as
blow room line.
 Raw materials are fed in the machine which has several hating points, the raw materials
cleaned to some extent and taken in the form of laps. The cleaned waste cotton and mixed waste
cotton are converted into a form of uniform compressed sheets which is rolled into a lap.

The laps have predetermined weight per unit length to meet the desired standard. The
machines are used bale breaker, hopper, and feeder, step cleaner, porcupine opener beater
culture.

In a beating operation, the flocks are subjected to a sudden strong below. The inertia of
the impurities accelerated to a high speed, is substantially greater than that of the opened flocks
due to the low air resistance of the impurities. The latter are hurled against the grid and because
of their small size, pass between the grid bars into the waste box, while the flocks continue
around the periphery of the rotating beater.

By using much shorter machine sequence, fibers with better elastic properties and
improved spin ability can be produced. Air streams are often used in the largest machine
sequence, to separate fibers form trash particles by buoyancy differences rather than beating the
material against a series of grid bars.

CARDING
 Carding process is considered as heart of spinning. Any defects occur in this process
continue throughout the remaining process of spinning resulting defecting yarn. In this process
the cotton fibers are passing through in between two sets of wire points moving in opposite
direction resulting in the parallelization of fibers and any remaining trashes from blow room
processing is removed and al the clean cotton fibers are consolidated in the silver from for easy
handling of cotton in further processes.

Secondly the seed particles are reduce to 0.1 %. In carding the lap is first converted into
web and then silver, it taken nearly 40 minutes for a lap to become silver.

Card sliver have variety over length and this need improvement both in weight, uniforms
and fibers straightening. The carding sliver are feed into drawing the fibers are drawn parallel
and collected in cans and stored in a place for open end spinning process.

COMBING
 Combing is the process which serves to improve the raw material. Combed yarn is
stronger, more uniform, has greater shine and is smoother and purer. The quality improvements
are obtained at the cost of additional expenditure on machines, floor and Peoplenel, together with
a loss of raw material.

This is only used for processing long stable fiber to make finer yarn counts. Several
carded slivers are drafted together to form a small lap.

These laps are taken into the comber, where the fibers are combed through final metal teeth.
Combing also includes fiber alignment. The combed fiber is again condensed into sliver and
taken to the draw frame.

SIMPLEX

The drawing sliver is too un widely to be used directly on ring frames due to its
bulkiness. So it is necessary to make the unwieldy sliver from drawing or comber into a package
which is easily handled in ring frames. For that it is the best way to reduce the thickness of the
sliver wind it on bobbins which can be fixed on ring frames for spinning final yarn. This process
is carried out in simplex frame.

It is the final process of making yarn. The roving is drawn between rollers according to
the count requirement and passed through ring to impart twist to the yarn and then the yarn is
wound on bobbins. As the bobbins are full it will be removed from the ring frames and send for
auto corner.

SPINNING

It is the final process where the roving bobbin is reeled in spinning frame to produce
yarn. The yarn wounds on bobbins are further twist at high speed and drafted to produce counts
and yarn. They are 6236 spindles are available in Aravind Kumar Textile (P) LTD.\
 This is a conventional spinning process for medium and fine counts. The drawn sliver is
fed to a “speed frame”, then to an inter and finally to the “ring frame”. In the ring frame the
roving (the output of the speed frame) passes through gear drafting rolls, a yarn guide and
through a rotating c-shaped traveler before being wound on the bobbin which is mounted on a
rotating spindle.

CONE WINDING

Yarn is converted into the cone by using acne winding machines. The yarn which is
converted from capital formation is about of grams. Every cone is having 1kg yarn. About
17caps are joined one after another. The purpose of cone winding is to prepare a large package of
in having a sound 68,000 meters of yarn.

The bobbins from the ring frame are small in size and hold too low a quantity of yarn to
facilitate continuous running of subsequent machines. Hence, this yarn is wound into larger
packages conical or cylindrical.

REELING

After spinning & simplex the yarn is soaked in the water for an hour to gain more
strength and elasticity. In reeling the yarn is converted.

PACKAGING
 After reeling the yarn is packed in a sack, each bundle contains 40 roles of yarn
i.e, nearly 47000 kg and in one sack these is 20 bundles. The yarns strength and elasticity is
checked before packaging.

INDIAN TEXTILE AND CLOTHING INDUSTRY

India’s textiles and clothing industry is one of the mainstays of the national
Economy. It is also one of the largest contributing sectors of India’s exports worldwide. The
Report of the Working Group constituted by the Planning Commission on boosting India’s
Manufacturing exports during 12th Five Year Plan (2012-17), envisages India’s exports of
Textiles and Clothing at USD 64.41 billion by the end of March, 2017. The textiles industry
Accounts for 14% of industrial production, which is 4% of GDP; employs 45 million people
And accounts for nearly 11% share of the country’s total exports basket.

MILESTONES:

 Exports of textiles and clothing products from India have increased steadily over
the last few years, particularly after 2004 when textiles exports quota stoodDiscontinued.

 India’s Textiles & Clothing (T&C) exports registered a robust growth of 25% in
2005-06, recording a growth of US$ 3.5 billion over 2004-05 in value termsthereby reaching a
level of US$ 17.52 billion and the growth continued in 2006-07with T&C exports of US$19.15
billion recording a increase of 9.28% over theprevious year and reached USD 22.15 billion in
2007-08 denoting an increase of15.7% but declined by over 5% in 2008-09. Exports of Textiles
& Clothing grewfrom USD 21.22 billion in 2008-09 to USD 22.41 billion in 2009-10 and
hastouched USD 27.47 billion in 2010-11. In the financial year 2011-12(P), exportsof textiles
and clothing, has grown by 20.05% over the financial year 2010-11 totouch USD 33.31 billion.
Textiles exports in the period 2012-13 are witnessing a(-) 4.82 percent growth in dollar terms
although there is 8.10 percent growth inrupee terms.

 The details of India’s textiles exports, principal commodity item-wise during the
last three years and current financial year for the period 2012-13 .
  During the year 2012-13, Readymade Garments account for almost 39% of the total
textiles exports. Apparel and cotton textiles products together contributenearly 74%
of the total textiles exports.

 India’s textiles products, including handlooms and handicrafts, are exported to

more than a hundred countries. However, the USA and the EU, account for about two-thirds of
India’s textiles exports. The other major export destinations are China, U.A.E., Sri Lanka, Saudi
Arabia, Republic of Korea, Bangladesh, Turkey,Pakistan, Brazil, Hong-Kong, Canada and Egypt
etc.

Current Textiles & Clothing Exports Trend:

(a) Trend during the period 2011-12 (P).

 In rupee terms, during 2011-12 (P) there has been a surge in exports of Handloom
product (68.51%), Coir & Coir Manufactures (40.49%), Cotton Textiles (37.23%),Man-made
textiles (25.99%), RMG (24.80%), Wool & Woolen textile (20.97%) andJute (4.72%).

 In US$ terms the surge during 2011-12 (P) registered in Handloom product (60.09%),
Coir & Coir Manufactures (33.46%), Wool & Woolen textile (14.93%), Man-madetextiles
(19.69%), RMG (18.56%), Cotton Textiles (30.37%) and Jute (-0.52).

(b) Latest Trend during the period 2012-13 (P)

 The total textile exports during 2012-13 (P) were valued at Rs 172494.71 crore as
againstRs 159570.55 crore during the financial year 2011-12, registering an increaseof 8.10
percent in rupee terms.

 In US dollar terms, the same was valued at US$31705.53 million (2012-13, P) as

against US$33310.21 million during the corresponding period of financial year 2011-12
registering a decline of 4.82 percent.

COUNTRY - WISE ANALYSIS

India’s textiles & clothing exports vis-à-vis total world exports are given below:
(In billion US$)

YEAR TEXTILES CLOTHINGS

World India’s India’s %age World India’s India’s %age

Export Exports share in Export Exports share in
world world
exports exports
2004 195 6.85 3.51 258 6.62 2.57

2005 203 7.85 3.90 276 8.29 3.00

2006 208.6 9.33 4.30 311.40 10.20 3.30

2007 241.3 9.81 4.06 347.06 9.93 2.86

2008 253.4 10.45 4.12 364.91 11.50 3.15

2009 211.1 9.12 4.32 315.62 11.45 3.62

2010 251 12.87 5.13 351 11 3.13

2011 293.5 15.01 5.13 412.45 14.36 3.48

Source: International trade statistics 2012, WTO Secretariat

The latest available data released by WTO Secretariat, the values of top ten exporters of textiles
& clothing in the world in calendar year 2012 are given below:

Textiles (2011) Clothing (2011)

Rank Name of the Value % of Rank Name of the Value % of

Country world Country world
share share
1 CHINA 94 32.2 1 CHINA 154 37.3
2 EU-27 77 26.1 2 EU-27 116 28.2
3 INDIA 15 5.1 3 HONG KONG, 25 -
china
4 USA 14 4.7 4 BANGLADESH 20 4.8
5 RP KOREA 12 4.2 5 INDIA 14 3.5
6 HONG KONG, 11 - 6 TURKEY 14 3.4
china
7 TAIPAI.CHINESE 11 3.8 7 VIETNAM 13 3.2
8 TURKEY 11 3.7 8 INDONESIA 8 2.0
9 PAKISTAN 9 3.1 9 USA 5 1.3
10 JAPAN 8 2.7 10 MAXICO 5 1.1
World Total 294 World Total 412

MARKET SIZE
 The Indian textile industry is set for strong growth, buoyed by both rising domestic
consumption as well as export demand. Abundant availability of raw materials such as cotton,
wool, silk and jute and skilled workforce has made India a sourcing hub.

The most significant change in the Indian textile industry has been the advent of man-
made fiber’s (MMF). India has successfully placed its innovative range of MMF textiles in
almost all the countries across the globe. Man-made fiber production recorded an increase of 2 %
during the year 2012-13.

Cotton yarn production increased by about 15 per cent during March 2013 and by about
14 per cent during the year 2012-13. Blended and 100 per cent non-cotton yarn production
increased by 10 per cent during March 2013 and production increased by 3 per cent during the
year 2012-13.

Cloth production by mill sector registered a growth of 19 per cent during the year 2012-
2013.

Cloth production by handloom and hosiery increased by 2 per cent and 14 per cent.The
total cloth production grew by 1 per cent during March 2013 and by 4 per cent during the year
2012-2013.
 CHAPTER 3

COMPANY PROFILE

Atlas Textiles Export Private Limited is an unlisted private company incorporated on 11 May,
1989. It is classified as a private limited company and is located in Karur 639001, Tamil Nadu.
It's authorized share capital is INR 25.00 lac and the total paid-up capital is INR 23.73 lac.

NAME : ATLAS EXPORT ENTERPRISES

ADDRESS : Atlas chambers,

29J-Pugalur Road

Karur- 639 001

CONSTITUTION : Registered Partnership Firm

CONTACT PEOPLE : M.NACHIMUTHU

N.SENTHILPRASATH

NATURE OF BUSINESS : Manufacture and export of Fabrics and Home Furnishing Textiles

EXPORTING COUNTRY : USA, EUROPE, JAPAN, AUSTRALIA, & etc.

STATUS : Government Recognized Export House

PRODUCTS : Fabrics and Home Furnishing products

Fabric, Table cloth, Table mats, Runners, Napkins, Curtains,

Bed Spreads, Duvet Covers, Pillow Covers, Cushion covers,

Chair pads, Kitchen Towels, Dish Cloths, Aprons, Oven mitts,

Pot holders, Throws, Shower Curtains etc.

STITCHING : 80 imported modern sewing machines located in house

PRODUCTIVITY

CAPACITY : Above 2 lakh meters of basic fabrics per month.

ANNUAL TURNOVER : Rs. 14.0 Crores

MEMBERSHIP : TEXTILE COMMITTEE, SSI, HEPC, AEPC,

TEXPROCIL, AND EEPC.

AWARDS FOR BEST

EXPORT : Gold medal winner for 1991 &1993

Silver medal winner for 1995-96

State medal winner for 1992, 1994,1995,1996,1998

Prize Award winner for 1982-1984, 1985-1989

CERTIFICATIONS & STRENGTHS

Atlas factory complies with all labor laws relating to wages, working hours, and health &
safety standards and strictly adheres to ethical business practices.  We provide a clean and
healthy working environment conducive for our workers.  We do not engage any child labor or
forced labor.Utmost importance is given to respect the human values. 

Atlas voluntarily gets its facilities certified for various - by maintaining all the required
standards in terms of infrastructure, employee welfare, social compliances, environment
consciousness, etc.

ISO 9001 – Quality Management System - In order to provide quality products at right time.

SA8000 – Social Accountability System – Fair labor practice system is followed in order to
ensure the products manufactured by adhering social compliance.

ISO 14001 – Environment Management System – Our company adheres Environment regulation
and thus contributes to save the environment.

OHSAS 18001 – Occupational Health and Safety Assessment Series – Taking care of
employees’ health and safety.

Organic Cotton (GSV & OE) – Adhering social compliance and environmental regulations.
Oeko Tex 100 – Meeting the customer’s Requirements for this Standard Products. 

MANAGEMENT & TEAM

M. NACHIMUTHU, CHAIRMAN

He entered into the textile trade in the name of Atlas Fabrics in the year 1975 which
became Atlas Export Enterprises in the year 1978, which is today one of the leading export
houses in Karur. 

As a manufacturing exporter of home textile products, by sheer hard work, over the
years he has successfully developed customers in various European Countries, the United States,
United Kingdom and Australia.  Over a period of three decades, his export business has grown
multifold and today it is a Star Export House.

Since 2008, he is the President of Karur Exporters’ Association and also, he is the Vice-
Chairman of Handloom Export Promotion Council (HEPC) and earlier for 9 years he has been a
member of the Executive Committee of HEPC and has contributed immensely to the cause of
handloom exports. 

He is the founder Chairman of the Karur Textile Park, the Special Purpose Vehicle
formed to implement Integrated Textile Park of Home Textile units with world class
infrastructure.

Karur Textile Park was formed under the Scheme for Integrated Textile Parks (SITP) of
the Ministry of Textiles, Government of India.  This Textile Park will offer direct employment to
about 5500 workers, besides generating 10000 indirect jobs. 

Karur Textile Park was formed under the Scheme for Integrated Textile Parks (SITP) of
the Ministry of Textiles, Government of India.  This Textile Park will offer direct employment to
about 5500 workers, besides generating 10000 indirect jobs. 
 On account of his active contribution towards the all-round improvement of the Karur
society with the above voluntary honorary positions, M. Nachimuthu has become a well-known
Peopleality in Karur and he could achieve this because of his hard work, sincerity, time
consciousness and honesty.  According to him all he has done is giving something back to the
soil that made him what he is today, something he believes is one’s responsibility.

INFRASTRUCTURE:

Atlas always assures on quality products and timely delivery to its clients.  To
substantiate this, Atlas does most of the processes in-house to save time and ensure quality.

Atlas has a total working area of 32,500 Sq. Meters. In four locations in Karur.  Each
location is exclusively taking care of certain processes.

LOCATION - 1: ATLAS-MAIN

Atlas Chambers is the Corporate Office of Atlas Export Enterprises, which is in the heart
of the Town with sufficient manpower and facilities.

Fabric Section: 

Fabric section have a huge space to store the fabrics received from weaving and the same
are checked thoroughly before sending them for conversion into made-up items.

Embroidery:

Brings our ideas/designs into beautiful products our in-house computer embroidery
facility enables to bring out our innovative designs on our products with creativity and cost
effective.
 ORGANIZATION STRUCTURE

Managing Director

General Manager

Dyeing Manager Production HR Manager Marketing Finance

Manager Manager Manager

Employees Quality control Assistant Assistant Assistant

Manager Manager Manager

Supervisor Supervisor Supervisor Supervisor

EDP Development HRD Assist Employees

Checking Weaving Packing

PRODUCTS

Cleaning cloth

Embroidery Placemat
Embroidery Placemat
 Quesstionnare

Name :

qualification

1Age of the respondents

a) 20-30
b) 30-40
c) 40-50
d) 50-60

2. Gender:’

a) Male

b) Female

4. Marital Status: a) Single b) Married

3. Occupation:

a)Teacher

b) Lawyer

c) Doctor

d) Engineer

e ) Banker
4. Annual Income of the respondents:

a. Up to Rs. 2 lakh
b. Rs. 2-3 lakh
c. Rs. 3-4 lakh
d. s. 4-5 lakh
e. Rs. 5 lakh

5. Annual savings of the respondents:

a. Less than Rs. 25,000

b. Rs. 25,000-50,000
c. Rs.50,000-75,000
d. Rs.75,000-1,00,00
e. More than Rs. 1,00,000

6. The motivators of savings of the respondents:

a. To meet specific purpose

b. To earn income
c. To meet contingent expenses
d. To get tax benefits
e. To get tax benefits

7. Factors considered by the respondents for increasing the size of savings?

a. Increase in salary
b. Additional income/increment
c. Future needs
d. Tax benefits
 e. Statutory requirements

8. Investment preferences of the respondent?

a. Bank Deposits
b. Mutual Funds
c. Fixed deposits
d. Insurance Policies
e. Govt. Securities
f. Post Office deposits 17
g. Equity Market
h. Gold

9. Respondents’ investment trend in the recent years:

a. Increasing
b. Decreasing
c. Remaining Constant

10. Time horizon of investments

a. Long-term (More than 10 yrs.) 44 23%

b. Medium-term (More than 5 yrs.).
c. Short-term (More than 1 yr)
d. Very short-term (Less than 1 yr)
e. As per convenience
11. Whose advice do the respondents take while investing?

a. Spouse/family members
b. Friends/ colleagues
c. Company Agents
d. Financial advisors
e. Self-decision

12. Where does the respondents get information for your investment:

a. T.V & Radio

b. Organization Reports
c. Family Members & Colleagues
d. Journals & Magazine
e. Agents & Advisors

13. Initiatives recommended by the respondents to createawareness among salaried employees

about investment:?

a. Training programmes
b. Workshops & seminars
c. Social welfare programmes
d. Advertisements
e. Investors’ meets

14. Respondents’ awareness of tax saving instruments?

a. Life Insurance
b. Health Insurance
c. ULIPs
d. NPS
 e. ELSS
f. PPF

15. The type of investment plan does the respondents prefer in future:

a. Regular return plan

b. Pension plan
c. Medical plan
d. Specific purposePlan
e. Multiple option plan

16. consult the following when taking my financial decision

a) I take financial decision entirely on my own

b) b) I consult my family
c) c) I consult my friends/relatives
d) d) I consult my financial agent e) Others
17. How do you invest your savings?

a. Saving Banks
b. b) Share, bonds,etc
c. c) Precious Metals
d. d) Mutual fund and other investment schemes
e. e) Real Estate f) Others
f. g) I don’t have any of these investment

18.In which area do you spend more on your monthly income?

e) Shopping
f) b) Investment
g) c) Savings
h) d) All of the above
19.How much return do you get from your investment ?

a) Up to 10%
b) b) 10- 20%
c) c) 20- 30%
d) d) 30- 40%
e) e) above 40%

20.Do you fully utilize income tax benefits eg.deductions from salary/income,rebates,etc.,?

a. Yes
b. b) No

21`.When do you formulate your tax plan during a financial year?

c. Beginning of the year

d. b) End of the year
e. c) At any time
f. d) No planning at all

22.Do you know about tax saving strategies under the income tax act?

g. Yes
h. b) No
23. What are the influencing factors of salaried individuals for investment & Financial
Planning?

a) Higher Return
b)Safety
c) Liquidity
d)Tax benefits