A study with reference to HDB Financial Services Ltd.

Mandya

TABLE OF CONTENT

Title Page No.

Chapter - I: Introduction:
Ø Introduction
Ø Statement of the Problem
Ø Scope of the Study
3-8
Ø Need for the Study
Ø Objectives of the study
Ø Research Methodology
Ø Limitations of the study
Ø Chapter Scheme (Description of each chapter’s paragraph wise).
Chapter - II: Conceptual Framework (Related to topic at Industry
Level)
Ø Theoretical Concept related to topic 9-12
Chapter - III: Company Profile
13-34
Ø Regarding the Company
Ø About the Topic with respect to the company chosen
Chapter - IV: Analysis and Interpretation
Ø Data Collection
Ø Focus Group
Ø Research Instrument 35-93
Ø Sampling Technique
Ø Sample Size
Ø Statistical Tools Used for Analysis and Interpretation
Ø Analysis and Interpretation
Chapter - V: Summary of Findings, Suggestions and Conclusion
Ø Bibliography 94-100
Ø Annexure

1
A study with reference to HDB Financial Services Ltd. Mandya

No. Title Page No.

1 Table of Total Revenue and chart 45
2 Table of Profit before tax and its chart 46
3 Table of Profit after tax and its chart 47
4 Table of share-holders fund and chart 48
5 Table of Borrowings and chart 49
6 Table of Earning per share and chart 50
7 Table of Book value per share and chart 51
8 Balance sheet of the year ended 2020 78
9 Balance sheet of the year ended 2021 79
10 Balance sheet of the year ended 2022 80
11 Balance sheet of the year ended 2023 81
12 Balance sheet of the year ended 2024 82
Profit and loss account of the year ended
13 2023 83
Profit and loss account of the year ended
14 2024 84
15 Cash flow statement of the year ended 2023 86
16 Cash flow statement of the year ended 2024 87
17 Financial ratios 92
18 Dividend history 93

2
A study with reference to HDB Financial Services Ltd. Mandya

CHAPTER: 1 INTRODUCTION

INTRODUCTION

The Indian financial services industry has undergone a metamorphosis

since1990. Before its emergence the commercial banks and other financial institutions
dominated the field, and they met the financial needs of the Indian industry. It was only after
the economic liberalisation that the financial service sector gained some prominence. Now
this sector has developed into an industry. In fact, one of the world’s largest industries today
is the financial services industry.

Financial service is an essential segment of financial system. Financial services are

the foundation of a modern economy. The financial service sector is indispensable for the
prosperity of a nation.

Meaning of Financial Services In general, all types of activities which are of

financial nature may be regarded as financial services. In a broad sense, the term financial
services mean mobilisation and allocation of savings. Thus, it includes all activities involved
in the transformation of savings into investment. Financial services refer to services provided
by the finance industry.

The finance industry consists of a broad range of organisations that deal

with the management of money. These organisations include banks, credit card companies,
insurance companies, consumer finance companies, stockbrokers, investment funds and some
government sponsored enterprises.

Financial services may be defined as the products and services offered by

financial institutions for the facilitation of various financial transactions and other related
activities. Financial services can also be called financial intermediation.

Financial intermediation is a process by which funds are mobilised from a

large number of savers and make them available to all those who are in need of it and
particularly to corporate customers. There are various institutions which render financial
services. Some of the institutions are banks, investment companies, accounting firms,
financial institutions, merchant banks, leasing companies, venture capital companies,
factoring companies, mutual funds etc.

3
A study with reference to HDB Financial Services Ltd. Mandya

These institutions provide variety of services to corporate enterprises. Such services

are called financial services.

Thus, services rendered by financial service organisations to industrial enterprises and

to ultimate consumer markets are called financial services. These are the services and
facilities required for the smooth operation of the financial markets. In short, services
provided by financial intermediaries are called financial services.

Analysis of financial statement is a systematic process of critical evaluation of the

financial information given in financial statement so that this information may be understood
properly. For the purpose of analysis individual items are studied, their relationship with
other relevant figures is establish and the data are sometime re-arranged to have better
understanding of the information with the help of various tools for the purpose.

According to Bernerd Needles “Financial statement analysis comprises all the

technique employed by user of financial statement to show important relationship in the
financial statement”. In short it is a technique of X- raying the financial position and the
performance of the enterprise.

“The analysis and interpretation of financial statement are an attempt to determine

the significance and meaning of financial statement data so that the forecast may be made of
the prospects for future earning, ability to pay interest and debts maturities and profitability
of a sound dividend policy”. – Kennedy and Muller

STATEMENT OF THE PROBLEM

 The study is confined to a period of last five years

 As most of the data is from the secondary sources, hence the accuracy is limited
 The study was based on available information and documents.
 Difficulty in the data collection because this study only Mandya Branch.

SCOPE OF THE STUDY

The scope of the study involves the various factors that affect the efficiency of the
company. To increase the profit and sales growth of the company. This study finds out the

4
A study with reference to HDB Financial Services Ltd. Mandya

operational efficiency of the organisation and allocation of resources to improve the

efficiency of the organisation.

 The information is obtained from the primary and secondary data was limited
 The financial statement was on the last five years
 Comparision analysis was done last five years data

NEED FOR THE STUDY

The project work is done for analysing the financial position of the HDBFS. The
analysis of the financial position gives a better picture of the organisation in order to take
better decisions. Financial management is very important for both individuals and
organizations because it deals with managing funds. It guides a company and individual to
make optimum use of money to achieve maximum returns.

 Financial performance of the Bank will affect other types of performance and also the
earnings is good
 The study of non-economic factors like consumer satisfaction
 The assumption of the services like loans

OBJECTIVE OF THE STUDY

 To assess the performance of HDB financial services on the basis of earnings

and also evaluate the solvency position of the company
 To study all the financial statements for the past five years to identify the
changes in the various items present them
 To examine the impact of changes in the financial statements on the financial
position and profitability of the board
 Preparation of comparative statements to know the changes in the absolute
figures as well as percentage 4
 To inform the management about the financial condition of HDB
 To identify the financial strengths and weaknesses of the organisation
 To give the appropriate suggestions to the investors
 To help them make more informed decision
 To view services offered by the HDBFS

5
A study with reference to HDB Financial Services Ltd. Mandya

 To get the knowledge about Balance-sheet and Profit and Loss account
 To get the knowledge about securities for sanctioning the loans
 To know the progress and customer satisfaction of HDBFS

LIMITATION OF THE STUDY

 Some of the information was confidential so much information was not revealed.
 The financial are on the basis of on-going concept, as much as it does not reflect the
current position of the business
 Continuous and reliable information was not available
 Based on specific time period
 The statement does not necessarily provide any value in the pretending what will
happen in the future
 The time span of the survey was short, and hence only major aspects were considered
 As most of the data is from secondary sources, hence the accuracy is limited

RESEARCH METHODOLOGY

Research methodology is a structured and scientific approach used to collect,

analyse, and interpret quantitative or qualitative data to answer research questions or test
hypotheses. A research methodology is like a plan for carrying out research and helps keep
researchers on track by limiting the scope of the research. Several aspects must be considered
before selecting an appropriate research methodology, such as research limitations and ethical
concerns that may affect your research.

The research methodology section in a scientific paper describes the different

methodological choices made, such as the data collection and analysis methods, and why
these choices were selected. The reasons should explain why the methods chosen are the most
appropriate to answer the research question. Good research methodology also helps ensure
the reliability and validity of the research findings.

6
A study with reference to HDB Financial Services Ltd. Mandya

There are three types of 5 research methodology—quantitative, qualitative, and

mixed-method, which can be chosen based on the research objectives

1. Sampling
2. Tools
3. Data collection procedures
4. Data analysis methods
5. Ethical considerations

PRIMARY DATA:

Those data which are collected afresh and for the first time and thus happen to be
original in character and known as Primary data. These data are in the shape of raw material.
The information collected directly without any reference is primary data. In the study it is
mainly through conversation with concerned officers or staff members either individually or
collectively.

The data includes:

 Conducting personal interview with the officers of the company

 Individual observation and inference
 From the people who are directly involved with the transaction of the firm
 Original and independent collection increased the authenticity of data.
 Directly Collection enhances the reliability of data.
 Used in both quantitative and qualitative research methods.
 Hidden information can be collected through primary data.
 After analysed primary data can be used as secondary data.

SECONDARY DATA:

Those data which have been collected by someone else and which have already
been passed through the statistical process or analysed by someone else are known as
Secondary data. It is the data which may be published or unpublished but has been collected
and is used for some other purpose earlier. This Study has been taken from secondary sources

7
A study with reference to HDB Financial Services Ltd. Mandya

i.e. published annual reports of the company, classification and tabulation of the financial
data.

 These data can be quickly manageable.

 Time and cost balance remains maintained.
 Information available is already analysed by experts.
 Used to update data or reinterpret existing ones.
 Helpful for philosopher, thinker or authors for developing new concept.
 Field work is less.

CHAPTER SCHEME:

Chapter 1: Introduction

The chapter 1 deals with introduction. It includes Statement of the problem,

Importance of the study, Scope and Objectives of the study, Need for the study,
Limitation of the study and Research methodology.

Chapter 2: Conceptual Framework

The chapter 2 deals with Conceptual framework (related to the topic) ,

Theoretical concept related to topic.

Chapter 3: Company Profile

The chapter 3 deals with Company Profile, Regarding the bank, About the
topic with respect to the company chosen.

Chapter 4: Analysis and Interpretation

The chapter 4 contains the Data collection, Focus group, Research instruments,
Sampling technique, Analysis and interpretation, Statistical tables, Balance sheet, Profit and
loss account, Cash flow statement, Financial ratios and Dividend history.

Chapter 5: Summary of Findings, Suggestions and Conclusion

The chapter 5 contains Findings, Suggestions and Conclusion on the basis of

collected data. Then Bibliography and Annexure.

8
A study with reference to HDB Financial Services Ltd. Mandya

CHAPTER: 2

Conceptual Framework

THEORITICAL FRAMEWORK RELATED TO THE TOPIC:

Important information:

 PM Vishwakarma scheme: In September 2023, Prime Minister Narendra Modi

launched a key scheme for the craftsmen and artisans which is named PM
Vishwakarma Yojana
 NPA Classification norms: RBI has issued a classification on prudential norms. To
check revised NPA norms.
 HDB Financial Services Ltd. or its representatives never ask for any process loans.

Policies:

 Dividend distribution policy

 Corporate governance code
 Policy for dealing with related party transactions
 Corporate social responsibility policy
 Whistle blower policy
 Code of practices and procedures for fair disclosure of UPSI
 Archival policy
 Code of conduct for board of directors and senior management personnel
 Familiarisation program for independent directors
 Nomination and remuneration policy
 Code of conduct philosophy
 Environmental, social and governance policy framework
 Policy for claiming unclaimed interest or principal on non-convertible debentures
 Board diversity policy
9
A study with reference to HDB Financial Services Ltd. Mandya

Importance of ratio analysis:

 Financial Statement Analysis - Understanding financial statements are important

for stakeholders of the company. Ratio analysis helps in understanding the
comparison of 8 these numbers; furthermore, it helps in estimating numbers from
income statements and balance sheets for the future. For e.g. Equity shareholder
looks into the P/E ratio, the Dividend payout ratio etc. while creditors observe
Debt to Equity ratio, Gross margin ratio, Debt to asset ratio, etc.
 Efficiency of Company-Ratio analysis is important in understanding the
company’s ability to generate profit. Return on Asset, Returns on Equity tell us
how much profit the company is able to generate over assets of the firm and
equity investments in the firm, while gross margin and operating margin ratios tell
us the company’s ability to generate profit from sales and operating efficiency.
 Planning and Forecasting- From a Management and investor point of view, ratio
analysis helps to understand and estimate the company’s future financials and
operations. Ratios formed from past financial statement analysis helps in
estimating future financials, budgeting, and planning for the future operations of
the company.
 Identifying Risk and Taking Corrective Actions- The company operates under
various business, market, operations related risks. Ratio analysis helps in
understanding these risks and helps management to prepare and take necessary
actions. Leverage ratios help in performing sensitivity analysis of various factors
affecting the company’s profitability like sales, cost, debt. Financial leverage
ratios like Interest Coverage ratio and Debt Coverage ratio tell how much the
company is dependent on external capital sources and the company’s ability to
repay debt.
 growth or not over a period from past financials and whether the company’s
financial position is improving or not.
 Financial Solvency- The company’s ability to pay short-term debt is determined
by liquidity. Current Ratio, Acid-test ratio tells us whether a company is able to
pay its short-term obligation within a year. The company continuously runs

10
A study with reference to HDB Financial Services Ltd. Mandya

analysis on past financial statements to understand and prepare for payment of

short-term obligations.
 Decision Making- Ratios provide important information on the operational
efficiency of the company, and the utilization of resources by the company. It
helps management to forecast and planning for future, new goals, concentrate on
the different markets, etc.

ADVANTAGE OF FINANCIAL STATEMENT ANALYSIS:

The advantages of financial statement analysis are listed below:

The most important benefit if financial statement analysis is that it provides an

idea to the investors about deciding on investing their funds in a particular company. Another
advantage of financial statement analysis is that regulatory authorities like IASB can ensure
the company following the required accounting standards. Financial statement analysis is
helpful to the government agencies in analyzing the taxation owed to the firm. Above all, the
company is able to analyze its own performance over a specific time period.

LIMITATION OF FINANCIAL STATEMENT ANALYSIS:

 Financial Statements Are Derived from Historical Costs - Transactions are initially
recorded at their cost. This is a concern when reviewing the balance sheet, where the
values of assets and liabilities may change over time. Some items, such as marketable
securities, are altered to match changes in their market values, but other items, such as
fixed assets, do not change. Thus, the balance sheet could be misleading if a large part
of the amount presented is based on historical costs.
 Financial Statements Only Cover a Specific Period of Time - A user of financial
statements can gain an incorrect view of the financial results or cash flows of a
business by only looking at one reporting period. Any one period may vary from the
normal operating results of a business, perhaps due to a sudden spike in sales or
seasonality effects. It is better to view a large number of consecutive financial
statements to gain a better view of ongoing results.

11
A study with reference to HDB Financial Services Ltd. Mandya

 Financial Statements Could be Wrong Due to Fraud- The management team of a

company may deliberately skew the results presented. This situation can arise when
there is undue pressure to report excellent results, such as when a bonus plan calls for
payouts only if the reported sales level increases. One might suspect the presence of
this issue when the reported results spike to a level exceeding the industry norm, or
well above a company’s historical trend line of reported results.
 Financial Statements Do Not Cover Non-Financial Issues-The financial
statements do not address non-financial issues, such as the environmental
attentiveness of a company's 10 operations, or how well it works with the local
community. A business reporting excellent financial results might be a failure in these
other areas.

12
A study with reference to HDB Financial Services Ltd. Mandya

CHAPTER 3

COMPANY PROFILE

REGARDING THE COMPANY:

HDB Financial Services HDB Financial Services (HDBFS) is a leading Non-

Banking Financial Company (NBFC) that caters to the growing needs of an Aspirational
India, serving both Individual & Business Clients.

Incorporated in 2007, we are a well-established business with strong

capitalization. HDBFS is accredited with CARE AAA & CRISIL AAA ratings for its long-
term debt & Bank facilities and an A1+ rating for its short-term debt & commercial papers,
making it a strong and reliable financial institution.

❖ Lending:

We offer a wide range of secured and unsecured loans to our customers. We provide a
one-stop-shop for all requirements, be it loans, investments or protection. We have quickly
grown to have more than 1680 Branches spread across 27 States & 4 Union Territories.

❖ BPO Services:

Our BPO services division delivers back-office services such as forms processing,
documents verification, finance and accounting services and correspondence management.
We also deliver front office services such as Contact centre management, Outbound
marketing and collection services.

VISION, MISSION AND VALUES:

Living our Values @ HDB Financial Services Limited We, at HDB Financial
Services Limited, strive to uphold our core values in every action we take. Our values define

13
A study with reference to HDB Financial Services Ltd. Mandya

our culture. They are Integrity, Collaboration, Agility, Respect, Excellence & Simplicity.
These values are the foundation of everything we do, from how we interact with each other to
how we serve our customers. When it comes to describing our company values, our leaders
are very clear in stating what, how and why of living our values in letter and spirit.

Vision:

To Be India’s most Admired NBFC; Through Great Execution, Driving Simplicity &
Developing Humility.

Mission:

To deliver innovative products and services to cater to the growing needs of an

Aspirational India, serving both Individual & Business Clients.

Values:

Integrity:

We ensure that the highest standard of professional conduct is embedded in every

corner of the Organization. It defines how we go about our business, treat our people,
customers and stakeholders.

 We are transparent and ethical in the way we conduct ourselves.

 We are honest and fair and base our conclusions on facts.
 We have a strong moral code and take responsibility of our actions.

Respect:

As we continue to increase our reach in every corner of the country, we value those
who work with us and the contributions that they make to our business.

 We respect our people's individuality and diversity.

 We conduct ourselves in a manner that reflects the spirit of inclusion and humility.
 We treat all our customers, employees and stakeholders with respect and empathy.

Excellence:

In our journey of becoming India’s most admired NBFC, we want to excel and set
high standards in every aspect.

14
A study with reference to HDB Financial Services Ltd. Mandya

 We aim to execute flawlessly and deliver the highest quality of service and value
through simple relevant solutions.
 We challenge ourselves to meet our goals and pursue excellence.
 We consistently strive to exceed the expectations of our customers, colleagues and
stakeholders.

Simplicity:

We keep our customers, employees and stakeholders at the heart of everything we do.

 We focus on removing complexities.

 We deliver solutions that are simple and relevant.
 Our communication, policies and processes are simple to understand and easy to follow.

Collaboration:

 We believe success is achieved not by any one individual but by teams that work together.
 We operate in a spirit of collaboration and teamwork.
 We support and encourage people to use their expertise and experience to solve everyday
challenges.
 We embrace a mindset of openness and trust that helps in breaking silos.

Agility:

We proactively respond to the changing market environment and the evolving needs of
our customers.

 We strive to deliver the highest sustainable standards through efficient and timely execution.
 Our speed of action reflects our readiness to continuously improve and our openness to
change and discovery.
 We are flexible and constantly looks for ways to enhance efficiencies.

Parent Company:

HDB Financial Services Limited is a subsidiary company of HDFC Bank.

For more information visit: www.hdfcbank.com

Disclosure:

15
A study with reference to HDB Financial Services Ltd. Mandya

“The company is having a valid Certificate of Registration dated 31.12.2007 issued by the
Reserve Bank of India under Section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI
does not accept any responsibility or guarantee about the present position as to the financial soundness
of the company or for the correctness of any of the statements or representations made or opinions
expressed by the company and for repayment of deposits/ discharge of liabilities by the company”

ABOUT THE TOPIC WITH RESPECT TO THE COMPANY CHOSEN:

 OBJECTS OF THE COMPANY TO BE PURSUED BY THE COMPANY ON

ITS INCORPORATION ARE:
1. To carry on the business as a finance company and to provide finance
and to provide on lease, leave and license or hire purchase basis or on
deferred payment basis or on any other basis all types of plant,
equipment, machinery, vehicles, vessels, ships and real estate and any
other moveable and immovable properties whether in India or abroad
for industrial, commercial or other uses.
2. To carry on the business as investment company and to acquire and
hold and otherwise deal in shares, stocks, debentures, debenture-stock,
bonds, obligations and securities issued or guaranteed by any company
and debentures, debenture-stock, bonds, obligations and securities
issued or guaranteed by any government, sovereign ruler,
commissioners, public body, or authority supreme, municipal, local or
otherwise, landed property, whether in India or elsewhere and to carry
on the business of issue house, underwriting, factoring, bills
discounting, cross border leasing, merchant banking, issuance of credit
cards, consultancy and to undertake and carry on and execute all such
operations.
3. To set up companies for the purpose of carrying on the business related
to asset management, mutual fund and to act as sponsor or co-sponsor
by undertaking financial and commercial obligations required to
constitute and/or settle any trust or any undertaking to establish any
mutual fund or trust in and/or outside India with the prior approval of
the concerned authorities with a view to issue units, stocks, securities,

16
A study with reference to HDB Financial Services Ltd. Mandya

certificates or other documents, based on or representing any or all

assets appropriated for the purposes of any such trust and to settle and
regulate any such trust and to issue, hold or dispose of any such units,
stocks, securities, certificates or other documents.
4. To carry on the business of labour contractor, recruitment agency,
appointment, hiring, seconding and/or supplying manpower, human
resources of all types of grades and skills to facilitate, handling,
carrying out, processing, managing, controlling, facilitating
documentation, documentary services, maintenance, upkeeping, and all
kinds of services, undertaking and or completion of any works,
projects, assignments, contracts, joint ventures.
5. To carry on business of business process outsourcing agent by
providing financial, insurance, technical, information technology,
documentary, advisory and other support services and to undertake
such activities in the nature of accounting, finance, documentation,
banking and other services, including as a call center as may be
outsourced by any company, institution, corporation or any other body
corporate, whether incorporated or otherwise.
6. Subject to the provisions of the Insurance Regulatory and
Development Authority (Insurance Brokers) Regulations, 2002
(“hereinafter referred to as “Insurance Broking Regulations”) and other
applicable statutes, to carry on business of insurance and reinsurance
brokers, agents, consultants and advisors or representatives for
insurance and reinsurance brokers, agents, consultants and advisors
dealing with all classes of insurance (including life, non-life, general
insurance and such other insurance), in all forms, within India and
outside India, to provide risk management services in the field if
insurance and reinsurance business, to undertake run-off attendants,
activities to any of the general insurance companies in any of the
insurance and reinsurance matter, to assist insurance companies and
insurance brokers in the matter of arranging inspections, surveys and
recovery from any of the parties in respect of the claims and to appoint
subagents for carrying the activities under this clause, providing on-
line services or online marketing or to develop & maintain relations

17
A study with reference to HDB Financial Services Ltd. Mandya

with insurance companies in order to secure differentiated products,

competitive prices, enhanced remuneration and technology integration
or to market the company’s products, website development, customer
oriented functionality, data analytics and monitoring, process flow &
linguistic analytics, IT development, management information
systems, online marketing, human resources, compliance management,
accounting and financial services, IT maintenance, administration &
logistics.
7. To carry on business of providing services relating to sourcing,
marketing, publicizing, promotions, sales and/or generating leads fore
sale of financial products and/or services for and/or on behalf of
financial institutions, banks and/or finance companies whether
incorporated in India or outside India, and providing services relating
to accounting, data, administration, price support services, door-to-
door agents for the collection, receipt or payment of money, market
research, market survey, telemarketing services etc. and to act as agent
for or render services to customers, finance companies, financial
institutions, banks etc. and to act as fund mobilisers and to carry on
other activities including those activities covered under clause (n) of
sub-section (1) of section 6 of the Banking Regulation Act, 1949 (10 of
1949) to promote the spread of business of banking/ financial services
in India or outside India and to appoint sub-agents for carrying the
activities under this clause.
8. The Company shall carry on the business of:
 Drawing, making accepting, discounting, buying, selling,
collecting and dealing in bills of exchange, hundies, promissory
notes, coupons, drafts, bills of lading, railway receipts,
warrants, debentures, certificates, scrip and other instruments
and securities whether transferable, or negotiable or not.
 To organize, manage, and operate receivables and remedial
management of key assets products (including credit cards) that
also includes tele calling customers who have slipped the
payment due date, reminder/awareness calls to customers,
service calls, managing portfolio through legal means, and

18
A study with reference to HDB Financial Services Ltd. Mandya

payment assistance through field collections and all support and

back-end documentation assignments.
 Buying, selling and dealing in bullion and specie;
 Buying and selling of and dealing in foreign exchange
including foreign bank notes.
 Acquiring, holding, issuing on commission, under writing and
dealing in stocks, funds, shares, debentures, debenture stock,
bonds, obligations, securities and investments of all kinds.
 Receiving of all kinds of bonds, scrip, or valuables on deposit
or for safe custody or otherwise.
 Collecting and transmitting of money and all kinds of
securities.

 MATTERS WHICH ARE NECESSARY FOR THE FURTHERANCE OF THE

OBJECTS SPECIFIED IN CLAUSE III (A) ABOVE ARE :-

1. To sell, improve, manage, develop, exchange, lease, mortgage, enfranchise, abandon,

dispose of, turn to account or otherwise deal with all or any part of the property,
assets, undertakings and rights of the Company for such consideration as the
Company may think fit and in particular for shares, stocks, debentures and other
securities of any other company whether or not having objects all together or in part
similar to those of the Company.
2. To search for and to purchase or otherwise acquire from any government, state or
authority any licences, concessions, grants, decrees, rights, powers and privileges
which may seem to the Company capable of being turned to account and to work,
develop, carry out, exercise and turn to account the same.
3. To purchase or otherwise acquire, protect, prolong and renew any patents, rights,
brevets, invention, licenses, protections and concessions which may appear likely to
be advantageous or useful to the Company and to use and turn to account the same
and to grant licenses or privileges in respect of the same.
4. To adopt such means of making known the business of the Company as may seem
expedient and in particular by advertising in the press, public places and theaters, by

19
A study with reference to HDB Financial Services Ltd. Mandya

radio, by television, by circulars, by purchase and exhibition of works of art or

interest, by publication of books, pamphlets, bulletins or periodicals, by organizing or
participating in exhibitions and by granting prizes, rewards and donations.
5. To carry on business which may seem to the Company capable of being conveniently
carried on in connection with the above business or any of them or calculated, directly
or indirectly to enhance the value of or render profitable any of the properties or rights
of the Company.
6. To aid, pecuniary or otherwise, any association, body or movement having for an
object, the solution, settlement or surmounting of industrial or labour problems or
troubles or for the promotion of industry or trade.
7. To establish, promote or concur in establishing or promoting any company or
companies for the purpose of acquiring all or any of the property, rights and liabilities
of the Company for any other purpose which may seem directly or indirectly
calculated to benefit the Company and to place or guarantee the placing of underwrite,
subscribe for or otherwise acquire all or any part of the shares, debentures or other
securities of any such other company.
8. To purchase, acquire and undertake all or any part of the businesses, properties and
liabilities of any person or company carrying on or proposing to carry on any business
which the Company is authorized to carry on or possessed of property suitable for the
purposes of the Company, or which can be carried in conjunction therewith or which
is capable of being conducted so as, directly or indirectly to benefit the Company and
to subsidise or assist any such person or company financially or otherwise and in
particular by subscribing for or guaranteeing the subscription of shares, stocks,
debentures, debenture-stocks or other securities of such company.
9. To guarantee the payment of money unsecured or secured by or payable under or in
respect of promissory notes, bonds, debentures, debenture-stocks, contracts,
mortgages, charges, obligations, instruments and securities of any company or any
authority supreme, municipal, local or otherwise or of any person whomsoever,
whether incorporated or not incorporated and generally to guarantee or become
sureties for the performance of any contracts or obligations.
10. To take over, operate, recover, manage, any non productive assets/non-performing
assets (NPA) of any organization and have infrastructure and machinery for
recovering such NPA’s to act in the best interest of the Company.

20
A study with reference to HDB Financial Services Ltd. Mandya

11. To carry on the business of providing the consulting, risk management, finance and
support services relating to marketing, production, finance, accounts, data collection,
data sorting, data analysis, human resource services, , bills collection, direct or
indirect marketing of the products of clients, after sales service and administration
support services. To carry on the business as advisors, consultants, investment
consultants, investment analyst, agents, wealth management, financial planning,
venture capital, for financial mergers and acquisitions, fund raising, marketing, issue
and placement of securities, advisors and portfolio investment managers, advisors for
debt trading or derivative trading.
12. To carry on business as proprietors of buildings, apartments and flats and to let or
lease or give on hire-purchase basis or otherwise buildings, apartments and flats and
to provide for the tenants and occupiers thereof all or any of the conveniences
commonly provided in residential buildings, apartments and flats.
13. To carry on the business of Share and Stock Brokers and to apply for and become
members of any Stock Exchange.
14. To render organization development services, staff recruitment, development and
training services and assistance in equipment handling and establishing of systems
and procedures including preparation / procurement of manuals of all kinds, literature,
business forms and instructions, sets, consultancy and operational services, relating to
management, economic, commercial, financing and technical in all fields of endeavor
whether business, governmental, social, educational or any other spheres and to
render marketing, market research and development services.
15. To establish bureaus for providing computer services to process data and develop
systems of all kinds by processing jobs and hiring out machine time and assist to set
up, operate and supervise the operation of the data processing divisions of other
companies or organizations in India or elsewhere.
16. To carry on all or any of the business of money lending, acting as finance brokers,
insurance brokers, agents, underwriters, consultants, assessors, valuers, surveyors,
mortgage brokers and undertaking the provision of hire purchase and credit sale
finance and of acting as factors and brokers in any line of activity. Provided that
nothing contained herein shall enable the Company to carry on the business of
Banking as defined in the Banking Regulation Act, 1949.

21
A study with reference to HDB Financial Services Ltd. Mandya

17. To act as investment consultant and advisors to individuals, firms or companies and
for that purpose to keep records and statistics of other companies either manually or
by computer.
18. To create a full service trading portal which would act as a trading platform for all
types of financial products and services, consumer durables and non-durables, real
estate and all other value added services related to these.
19. To borrow or raise or secure the payment of money or to receive money on deposit at
interest for any of the purposes of the Company and at such time or times and in such
manner as may be thought fit and in particular by the issue of debentures or
debenture-stock, perpetual or otherwise, including debentures or debenture-stocks
convertible into shares of the company or any other company or perpetual annuities
and as securities for any such money so borrowed, raised or received, or of any such
debenture-stock so issued to mortgage, pledge or charge the whole or any part of the
property, assets or revenue and profits of the Company, present or future, including its
uncalled capital by special assignment or otherwise or to transfer or to give the
lenders power of sale and other powers as may seem expedient and to purchase,
redeem or pay off any such securities and also by a similar mortgage, charge or lien to
secure and guarantee the performance by the Company or any other person or
Company of any obligation undertaken by the Company or any other person or
company as the case may be. The Company shall not carry on banking business as
defined under the Banking Regulation Act, 1949, subject to provisions of Section 58A
and directives of the Reserve Bank of India.
20. To vest immovable property, rights or interest acquired by or belonging to the
Company in any person or company on behalf of or for the benefit of the Company
and with or without any declared Trust in favour of the Company.
21. To pay or satisfy the consideration for any property, rights, shares, securities or assets
whatsoever which the Company is authorised to purchase or otherwise acquire, either
by payment in cash or by issue of shares or other securities of the Company or in such
other manner as the Company may agree or partly in one and partly in another or
others.
22. To draw, accept, make, endorse, discount and negotiate promissory notes, hundies,
bills of exchange, bills of lading and other negotiable or transferable instruments or
securities.

22
A study with reference to HDB Financial Services Ltd. Mandya

23. To finance or assist in financing the sale/purchase of houses, buildings, flats, either
furnished or otherwise by way of hire purchase or deferred payment or similar
transactions and to institute, either into, carry on, subsidise, finance or assist in
subsidising or financing the sale and maintenance of any such houses, buildings, flats
furnished or otherwise as aforesaid upon any term whatsoever.
24. To apply for, promote and obtain any act of Parliament or legislative, charter,
privilege, concession, license or authorisation of any government, state or
municipality, provisional order or license of the board of trade or other authority for
enabling the company or for effecting any modification of the constitution of the
Company or for any other purpose which may seem expedient and to oppose any
proceedings or applications which may seem calculated directly or indirectly, to
prejudice the interest of the Company.
25. To enter into any arrangement with any government or authorities, municipal, local or
otherwise, or any person or company that may seem conducive to the to the objects of
the Company or any of them and to obtain from any such government, authority,
person or company any rights, privileges, charters, contracts, licenses and concessions
which the Company may think it desirable to obtain and to carry out, exercise and
comply therewith.
26. To insure the whole or any part of the property of the Company either fully or
partially, to protect and indemnify the Company from liability or loss in any respect
either fully or partially and also to insure and to protect and indemnify any part or
portion thereof either on mutual principle or otherwise.
27. To create any depreciation fund, reserve fund, sinking fund, insurance fund or any
special or other fund whether for depreciation or for repairing, improving, extending
or maintaining any of the properties of the Company or for redemption of debentures
or redeemable preference shares or for any other purposes whatsoever conducive to
the interest of the Company.
28. To place, to reserve or to distribute as bonus shares amongst the members or
otherwise to apply any moneys received by way of premium on shares or debentures
issued at a premium by the Company or any moneys received in respect of or arising
from the sale of forfeited shares.
29. To distribute any of the properties of the Company amongst members in specie or
kind.

23
A study with reference to HDB Financial Services Ltd. Mandya

30. To act as agents or brokers and as trustees for any person or company and to
undertake and perform sub-contracts.
31. To acquire by purchase, lease or otherwise any premises for the construction and/ or
establishment of a safe deposit vault or vaults and to maintain therein fire proof and
burglar proof strong rooms, safes and other receptacles for purposes of safe custody or
deposit of securities and valuables and to carry on the business of letting on hire the
safe deposit lockers to such persons and on such terms and conditions as the Company
may deem fit.
32. To acquire, build, construct, alter, maintain, enlarge, pull down, remove or replace and
to work, manage and control any buildings, offices, shops, machinery, engines, and
other works and conveniences which may seem necessary to achieve the objects of
the Company and to join with any other person or company in doing any of these
things. To refer to or agree to refer any claims, demands, dispute or any other question
by or against the Company or in which the Company is interested or concerned and
whether between the Company and the member or members of the Company and/ or
his representatives or between the Company and third parties to arbitration and to
observe and perform and do all acts, matters and things to carry out or enforce the
awards.
33. To apply for and become member of any company, association, body corporate or
society having any objects similar to or identical with those of the Company or likely
to directly promote the interest of the Company.
34. To act as agents of sellers, lessees, or any other person, incidental to the leasing or
other objects of business and to enter into any contracts incidental/ancillary thereto.
35. To enter and take possession of the premises whether mortgaged or not and to manage
or carry on the business of any individual, firm, company or any other person in the
event of any default by such person/persons of any of the terms and conditions of any
agreements in respect of loans advanced by, or any arrangement made with the
Company and to enforce the rights or securities held against such loans advanced or
arrangement made.
36. To purchase, hire or otherwise acquire and maintain suitable buildings, ownership
flats, apartment’s furniture and other fittings for the purpose of achieving any of the
objects for which the Company is established and to construct, alter or keep in repair
any buildings, flats or premises required or used by for the Company.

24
A study with reference to HDB Financial Services Ltd. Mandya

37. To sell, improve, manage, develop, exchange, loan, lease or let, under-lease, sub-let,
mortgage, dispose off, turn or account or otherwise deal with any property of the
Company.
38. To undertake, financial and commercial obligations, transactions and operations of all
kinds.
39. To accept payment of any property or rights sold or otherwise disposed off or dealt
with by the Company either in cash, by installments or otherwise or in fully/partly
paid-up shares of any company or corporation, including shares with or without
preferred or guaranteed rights in respect of dividend or repayment of capital or
otherwise or in debentures or mortgage debentures or debenture stock mortgages or
other securities of any company or corporation, or partly in one mode and partly in
another and generally on such terms as the Company may determine and to hold,
dispose off or otherwise deal with any shares, stock or securities.
40. To form, promote, subsidize, organize and assist or aid in forming, promoting,
subsidizing, organizing or aiding companies, syndicates or partnership of all kinds for
the purpose of accepting and undertaking any property and liabilities of the Company
or for advancing directly or indirectly the objects thereof, or for any other purpose
which the Company may think expedient.
41. To invest surplus funds of the Company from time to time in government securities or
in other securities including bills of exchange, acceptance, as may from time to time
be determined by the directors and from time to time to sell or vary all such
investment and to execute all assignments, transfers, receipts and documents that may
be necessary in that behalf.
42. To establish competitions in respect of contributions or information suitable for
insertion in any publications of the Company or otherwise for any of the purposes of
the Company and to offer and grant prizes, rewards and premium of such character
and on such terms as may seem expedient.
43. To take part in the formation, management, supervision or control of the business
having similar business or operation of company or organisation having similar
business and for that purpose to act as administrators, advisors, consultants or in any
other capacity.
44. To act as trustees of any deeds, constituting or securing any debenture stock or other
securities and to undertake and execute any such trusts and also to undertake the

25
A study with reference to HDB Financial Services Ltd. Mandya

office of or exercise the powers of executors, administrators, receivers, custodians,

etc.
45. To guarantee the payment of any principal moneys, interest or any other moneys
secured by or payable under any debentures, bonds, stocks, mortgage, charge,
contract, etc.
46. To negotiate loans, equity participation, cash credits and other financial facilities from
banks, financial institutions and others in connection with the objects of the Company.
47. To negotiate, enter into agreements and contracts with companies, firms and
individuals for technical assistance, know-how, secret formula, design and technical
and financial assistance in the manufacturing, marketing, importing and exporting of
any product.
48. To engage in and carry on, provide and act as consultants covering all branches and
disciplines of management such as organisational studies, systems analysis,
marketing, personnel, finance, corporate legal affairs, taxation, administration,
secretarial, accounting, information systems and other allied areas, to conduct market
research, operations research, studies in organisation behaviour, to advice, assist and
suggest ways and means of industrial promotion and for this purpose to undertake the
preparation of project reports, detailed financial studies, schemes for mergers,
amalgamation and reconstruction and for planning and promoting new businesses.
49. To provide for the welfare of employees or ex-employees of the Company and the
wives, families or dependents of such persons by building or contribution to the
building of houses, dwellings or chawls or by grants of money, pensions, allowances,
gratuities, bonus or other payments or by creating and from time to time subscribing
or contributing to provident and other funds, institutions and trusts and by providing
or subscribing or contributing towards places of instruction and recreation, hospitals
and dispensaries, medical and other attendance and assistance as the Company shall
think fit.
50. To amalgamate with any company or companies having similar business.
51. To amalgamate, enter into partnership or into any arrangement for sharing or pooling
of profits, amalgamation, union of interest, co-operation, joint ventures, reciprocal
concessions or otherwise with any person, firm or company carrying on or engaged in
or about to carry on or engage in any business or transaction which may seem capable
of being carried on or conducted so as directly or indirectly, to benefit the Company.

26
A study with reference to HDB Financial Services Ltd. Mandya

52. To undertake and execute any trust, the undertaking of which may seem to the
Company desirable and either gratuitously or otherwise.
53. To subscribe or continue or otherwise to assist or to guarantee money to charitable,
benevolent, religious, scientific, national, public or any other useful institutions,
objects or purposes or for any exhibition.
54. To establish and maintain or procure the establishment and maintenance of any
contributory or non-contributory pension or superannuation of funds for the benefit of
and give or procure the giving of donations, gratuities, pensions, allowances or
emoluments to any persons who are or were at any time in the employment or service
of the Company or of any company which is a subsidiary of the Company or is allied
to or associated with the Company or with any such subsidiary company or who are
or were at any time Directors or officers of the Company or of any such other
company as aforesaid and the wives, widows, families and dependents of any such
persons and also establish and subsidies and subscribe to any institutions,
associations, clubs or funds calculated to be for the benefit of or to advance the
interest and well-being of the Company or of any other Company as aforesaid and
make payments to or towards the insurance of any such person as aforesaid and do
any of the matters aforesaid, either alone or in conjunction with any such other
company as aforesaid.
55. To do all or any of the above things either as principals, agents, trustees, contractors
or otherwise and either alone or in conjunction with others and either by or through
agents, sub-contractors, trustees and otherwise.
56. To undertake, carry out, promote and sponsor or assist any activity for the promotion
and growth of national economy and for discharging social and moral responsibilities
of the Company to the public or any section of the public as also any activity likely to
promote national welfare or social, economic or moral uplift of public or any section
of the public and in such manner and by such means and without prejudice to the
generality of foregoing, undertake, carry out, promote and sponsor any activity for
publication of any books, literature, newspapers etc., or for organising lectures or
seminars likely to advance these objects or for giving merit awards for giving
scholarships, loans or any other assistance to deserving students or other scholars or
persons to enable them to prosecute their studies or academic pursuits or researches
and for establishing, conducting or assisting any institutional fund, trust, etc. having
any one of the aforesaid objects as one of its objects, by giving donations or otherwise

27
A study with reference to HDB Financial Services Ltd. Mandya

in any other manner and in order to implement any of the above mentioned objects or
purposes transfer without consideration or at such fair or concessional value and
subject to the provisions of the Companies Act, divest the ownership of any property
of the Company to or in favour of any public or local body or authority or central or
state government or any public institutions or trusts or funds.
57. To do the above things in any part of the world and as principals, agents, contractors,
trustees or otherwise and by or through trustees, agents or otherwise and either alone
or in conjunction with others.
58. To do the above things as are incidental or as the Company may think conducive to
the attainment of the objects or any of them.
59. To carry on business as developers, consultants, importers, exporters, distributors,
dealers of any type of software, computer or electronic, hardware, internet based
products and services, to carry on the business of e-commerce, electronic commerce,
electronic trading, internet trading, web-page design, creation and hosting, any
business relating to the internet or e-mail, networking and communication
environments, to manufacture, design, medical transcription, data entry, B P O
services, CAD-CAM-CAE, purchase, sell, buy, import, export and deal in all kinds of
computer based electronics and electromechanical systems for dispensing and
vending machines, automatic teller machines, with or without foreign collaborations
and/or imported technology, to provide a wide range of computer and
telecommunication related services including network installation and management,
to set-up and run value added communication services, to develop multi-media
applications and data base services and to act as distributors / dealers for computers,
peripherals, communication equipment, computer accessories, training material,
components, spare parts and other electronic items and consulting in all round
required for software implementation and applications.
60. To carry on the business of processing both manual as well as with use of data
processing equipment and computers, of financial instruments like shares, debentures,
bonds issued by private and public sectors companies, financial institutions,
commercial banks, government and semi-government bodies, local authorities and
such other bodies and to act and carry on the business of registrar and transfer agents,
and to perform all such services associated with such business.
61. To carry on the trade or business of providing complete data centre, data entry/
conversion, data processing services on block time or shares time, self service or

28
A study with reference to HDB Financial Services Ltd. Mandya

operator assisted basis, technical and management consultancy services in all areas of
computers, computer oriented systems, computer programming, facilities
management, telecommunications, software publishing and information technology
for business, industrial and general purpose requirement on turnkey basis or otherwise
in domestic markets and for exports.
62. To install hardware and software and to provide service thereon such as programming
systems, design analysis, documentation data preparation, program planning,
computerisation services, project planning, scheduling, production and commercial
systems, and such other services to the above hardware and software whether such
services be on closed or open shop basis, block time or shares time basis, self service
or operator assisted basis or on turnkey contract basis or otherwise.
63. To carry on business as advisers consultants, collaborators on matter and problems
relating to the industries, administration, management, organization, accountancy,
costing, financial, marketing, import, export, commercial or economic activities,
labor, quality control and data processing technical know-how operation,
manufacture, production, storage, distribution, sale and purchase of goods, property
and other activities of an in relation to any business, trade commerce industry, mine
agriculture, housing or real estate and upon the means, methods and procedure for the
establishment, construction, development expansion of business, trade, commerce
industry agriculture, building, real estates, plant or machineries and all systems,
methods techniques, processes, principles, in relation to the foregoing, in India and
outside India and to act as financial consultants, management consultants, brokers,
dealers, agents and carry on the business of share broking money broking exchange
broking, bill broking and general brokers for shares, debentures stocks, bonds units,
obligations, securities, commodities, bullion currencies and to manage the funds of
any person or Company by investment in various avenues like income fund, risk fund,
tax exemption funds, pension / superannuation funds, and to pass on the benefits of
portfolio investment to the investors as individuals as dividends bonus, interest.
64. To provide or assist in obtaining directly or indirectly, financial and business advisory
or consulting services to customers for buying, selling or otherwise dealing in, shares,
stocks, debt instruments, units of mutual funds or otherwise, certificate of deposits,
commercial paper, participation certificates, warrants instruments and any other
securities or money market instruments, whatsoever including but not limited to
options, futures and other derivatives, buying, selling, marketing, distributing or

29
A study with reference to HDB Financial Services Ltd. Mandya

providing any financial products, advisory services and / or any other services either
directly or through intermediaries and / or acting as agents or brokers of other entities
and / or forming other entities for carrying on financing and other financial activities.

CONSUMER LOANS:

 Personal loan
 Consumer durable loan
 Digital product loan
 Gold loan
 Auto loan
 Two-wheeler loan
 Loan against property

ASSET FINANCE LOAN:

 Commercial vehicle loan

 Construction equipment loan
 Tractor loan

ENTERPRISE LOAN

 Unsecured business loan

 Loan against property
 Enterprise business loan
 Auto refinance
 Personal loan for properties
 Gold loan

THIRD PARTY PRODUCTS

 Life insurance
 General insurance

Abhar Card:

30
A study with reference to HDB Financial Services Ltd. Mandya

Abhar card is a loyalty card to be applied voluntary by HDBFS customers. It

comes with plethora of benefits not only for the Primary Applicant / user but also for
dependents.
The holder of this card is also eligible to avail insurance and other service benefits attached to
it. The user is covered for illnesses including Covid - 19 for Platinum holders and disability /
death coverage of upto Rs. 10 Lacs*.

Features & Benefits

 Easy & HassleFree Loans from HDBFS.

 Customer can know their Loan eligibility and the process to avail the same just by
showing this card.
 Customer is also eligible to avail insurance and other service benefits complimentary
with this card.

Types of abhar card:

1.Blue Abhar Card:

Benefit Covered Coverage Benefit

Accidental Death Benefit

Common Sum Insured for Accidental Primary Applicant Only Upto INR 5,00,000
Death Benefit, Permanent Total
Disability (PTD) and Permanent Partial
Disability (PPD)

Natural Death Benefit

Sum insured to the extent of the Principal o/s + Interest OR Rs. 2

Primary Applicant Only
outstanding loan balance of the lac whichever is lower
customer

In-patient Hospitalization Cover Primary Applicant Only INR 50,000

31
A study with reference to HDB Financial Services Ltd. Mandya

Benefit Covered Coverage Benefit

Covered in case of accidents only

Hospital Daily Cash (Including Covid

-19) 1. Unmarried - Primary
Applicant + 2 Parents (Father
Maximum 10 days of coverage where & Mother) 2. Married INR 1,000 per day
customer can claim multiple times in Primary Applicant + (Spouse
the year. + 2 Children)

Income Protection Cover

1. Unmarried - Primary
One time fixed benefit payable on Applicant + 2 Parents (Father
₹ 20,000
detection of Air borne diseases, & Mother) 2. Married
(On detection)
*Vector borne diseases or Broken Cardholder + (Spouse + 2
bones only Children)

Loan Repayment to Loan Provider

Upto INR 1,00,000 for
Outstanding loan principal amount to CDL/DPL/TW
To HDBFS
be paid in case of Accidental death or Upto INR 5,00,000 for
Permanent Total Disability Car/CV/TRL

EMI PROTECT Upto 3 EMI of INR 20,000 for

Car/CV/TRL
Valid only in case of continuous To HDBFS
Upto 3 EMI of INR
hospitalisation 5,000 for TW

Road Side Assistance (RSA)

5 years RSA support for Car, CV &
Vehicle purchase attached to
Battery Jump start, Towing, Lost Key Tractor
the card
Support, Fuel Delivery, Repair on site 3 years RSA support for TW

Online/Tele Consulting
Primary Applicant + 4 family
1 Year (Unlimited)
Health/ Lifestyle related consulting members

Tele Consultation Doctor Services

Family of 4 1 Year (Unlimited)
(General Practioner)

1 Year INR 50,000 for CD/DPL

Home Appliances Protect 3 Years INR 50,000 for TW
Home Protect Benefit*
Cover 3 Years INR 1,00,000 for
Car/CV/TRL

*Vector Borne Diseases (VBD) - Dengue, Malaria, Chikungunya, kala-azar, Filariasis,

Japanese encephalitis

32
A study with reference to HDB Financial Services Ltd. Mandya

Insurance & other service benefits attached to TW/Car/CV/Tractor Loans will be applicable
for 3 years
Insurance & other service benefits attached to CD/DP Loans will be applicable for 1 year
*Home Protect Benefit & Home Assure benefit will be applicable from 6th May, 2024

2.Platinum Abhar Card:

Benefit Covered Coverage Benefit

Accidental Death Benefit

Upto INR 5,00,000 for
Common Sum Insured for Accidental
CDL/DPL/RELPL
Death Benefit, Permanent Total Primary Applicant Only
Upto INR 10,00,000 for
Disability (PTD) and Permanent
TWL/Car/CVL/TRL
Partial Disability (PPD)

Natural Death Benefit

Sum insured to the extent of the Principal o/s + Interest OR
Primary Applicant Only
outstanding loan balance of the Rs. 2 lacs whichever is lower
customer

Upto INR 50,000 for CDL/DPL/RELPL

In-patient Hospitalization Cover
Primary Applicant Only Upto INR 1,00,000 for
Covered in case of accidents only
TWL/Car/CVL/TRL

Hospital Daily Cash (Including Covid - 1. Unmarried - Primary

INR 1,000 per day for 10 days for
19) Applicant + 2 Parents (Father
CDL/ DPL/RELPL
Maximum 10 days of coverage where & Mother)
INR 2,000 per day for 10 days for
customer can claim multiple times in 2. Married Primary Applicant
TWL/Car/CVL/TRL
the year. + (Spouse + 2 Children)

Income Protection Cover 1. Unmarried - Primary

INR 20,000 (On detection) for
One time fixed benefit payable on Applicant + 2 Parents (Father
CDL/DPL/RELPL
detection of Air borne diseases, & Mother)
INR 40,000 (On detection) for
*Vector borne diseases or Broken 2. Married Primary Applicant
TWL/Car/CVL/TRL
bones only + (Spouse + 2 Children)

Loan Repayment to Loan Provider Upto INR 1,00,000 for

Outstanding loan principal amount to CDL/DPL/RELPL
To HDBFS
be paid in case of Accidental death or Upto INR 2,00,000 for TWL
Permanent Total Disability Upto INR 5,00,000 for Car/CVL/TRL

33
A study with reference to HDB Financial Services Ltd. Mandya

Benefit Covered Coverage Benefit

1 Year Upto 3 EMI INR 5,000 for

EMI PROTECT CD/DPL/RELPL & 3 Years Upto 3 EMI
Valid only in case of continuous Primary Applicant Only INR 5000 for TWL 3 Years Upto 3
hospitalisation EMI INR 20,000 for Car and Upto 3
EMI INR 80,000 for CVL/TRL

Extended Warranty
1 year extended warranty on
Consumer Durables & Laptop,
Appliances attached to the 1 Year Warranty only on
applicable once the manufacturer
card/ Primary Applicant only Laptop(DPL)
warranty is over (Repair benefits
maximum upto the invoice value of
the product)

Screen Protection
Customers Purchasing Mobile/Smart
Phones will get Screen protection
plan for 1 year from the date of Appliances attached to the 1 Year Screen Protection only on
purchase (One time repair service card/ Primary Applicant only Mobile/Smart Phones
during the contract period)
(One time repair service during the
contract period)

Road Side Assistance (RSA) 3 Years RSA support for TW

Vehicle purchase attached to
Battery Jump start, Towin, Lost Key 5 Years RSA support for
the card
Support, Fuel Delivery, Repair on site Car/CVL/TRL

Online/Tele Consulting Primary Applicant + 4 family Unlimited (3 Years for TW 5 Years

Health/Lifestyle related consulting members for Car/CV/TRL)

Tele Consultation Doctor Services

Family of 4 1 Year (Unlimited)
(General Practioner)

1 Year INR 1,00,000 for

Home Appliances protect CD/DPL/RELPL
Home Protect Benefit*
cover 3 Years INR 1,00,000 for TW
3 Years INR 2,00,000 for Car/CV/TRL

Home Assure* Maintenance of Appliances Upto 4 Home Appliances (1Year)

34
A study with reference to HDB Financial Services Ltd. Mandya

CHAPTER 4

ANALYSIS AND INTERPRETATION

DATA COLLECTION:

Data is a collection of facts, figures, objects, symbols, and events from different
sources. Organizations collect data using various methods to make better
decisions. Without data, it would be difficult for organizations to make appropriate decisions,
so data is collected from different audiences at various times.

For example, an organization must collect data on product demand, customer

preferences, and competitors before launching a new product. If data is not collected
beforehand, the organization’s newly launched product may fail for many reasons, such as
less demand and inability to meet customer needs.

Although data is a valuable asset for every organization, it does not serve any
purpose until it is analyzed or processed to achieve the desired results.

35
A study with reference to HDB Financial Services Ltd. Mandya

Data collection methods are techniques and procedures for gathering information for
research purposes. They can range from simple self-reported surveys to more complex
quantitative or qualitative experiments.

Some common data collection methods include surveys, interviews, observations,

focus groups, experiments, and secondary data analysis. The data collected through these
methods can then be analyzed to support or refute research hypotheses and draw conclusions
about the study’s subject matter.

Understanding Data Collection Methods:

Data collection methods encompass a variety of techniques and tools for gathering
quantitative and qualitative data. These methods are integral to the data collection and ensure
accurate and comprehensive data acquisition.

Quantitative data collection methods involve systematic approaches, such as

 Numerical data,
 Surveys, polls and
 Statistical analysis
 To quantify phenomena and trends.

Conversely, qualitative data collection methods focus on capturing non-numerical

information, such as interviews, focus groups, and observations, to delve deeper into
understanding attitudes, behaviors, and motivations.

Combining quantitative and qualitative data collection techniques can enrich

organizations’ datasets and gain comprehensive insights into complex phenomena.

Effective utilization of accurate data collection tools and techniques enhances the
accuracy and reliability of collected data, facilitating informed decision-making and strategic
planning.

Importance of Data Collection Methods:

Data collection methods play a crucial role in the research process as they determine
the quality and accuracy of the data collected. Here are some major importance of data
collection methods.

 Quality and Accuracy: The choice of data collection technique directly impacts the
quality and accuracy of the data obtained. Properly designed methods help ensure
that the data collected is error-free and relevant to the research questions.

36
A study with reference to HDB Financial Services Ltd. Mandya

 Relevance, Validity, and Reliability: Effective data collection methods help ensure
that the data collected is relevant to the research objectives, valid (measuring what
it intends to measure), and reliable (consistent and reproducible).
 Bias Reduction and Representativeness: Carefully chosen data collection methods
can help minimize biases inherent in the research process, such as sampling or
response bias. They also aid in achieving a representative sample, enhancing the
findings’ generalizability.
 Informed Decision Making: Accurate and reliable data collected through appropriate
methods provide a solid foundation for making informed decisions based on
research findings. This is crucial for both academic research and practical
applications in various fields.
 Achievement of Research Objectives: Data collection methods should align with the
research objectives to ensure that the collected data effectively addresses the
research questions or hypotheses. Properly collected data facilitates the attainment
of these objectives.
 Support for Validity and Reliability: Validity and reliability are essential to research
validity. The choice of data collection methods can either enhance or detract from
the validity and reliability of research findings. Therefore, selecting appropriate
methods is critical for ensuring the credibility of the research.

The importance of data collection methods cannot be overstated, as they play a key role in the
research study’s overall success and internal validity.

Types of Data Collection Methods:

The choice of data collection method depends on the research question being
addressed, the type of data needed, and the resources and time available. Data collection
methods can be categorized into primary and secondary methods.

1. Primary Data Collection Methods

Primary data is collected from first-hand experience and is not used in the past. The
data gathered by primary data collection methods are highly accurate and specific to the
research’s motive. Primary data collection methods can be divided into two
categories: quantitative and qualitative.

37
A study with reference to HDB Financial Services Ltd. Mandya

2.Secondary Data Collection Methods:

Secondary data is data that has been used in the past. The researcher can obtain
data from the data sources, both internal and external, to the organizational data.

Internal sources of secondary data:

 Organization’s health and safety records

 Mission and vision statements
 Financial Statements
 Magazines
 Sales Report
 CRM Software
 Executive summaries

External sources of secondary data:

 Government reports
 Press releases
 Business journals
 Libraries
 Internet

Secondary data collection methods can also involve quantitative and qualitative
techniques. Secondary data is easily available, less time-consuming, and expensive than
primary data. However, the authenticity of the data gathered cannot be verified using these
methods.

Secondary data collection methods can also involve quantitative and qualitative
observation techniques. Secondary data is easily available, less time-consuming, and more
expensive than primary data.

However, the authenticity of the data gathered cannot be verified using these methods.

Regardless of the data collection method of your choice, there must be direct
communication with decision-makers so that they understand and commit to acting according
to the results.

For this reason, we must pay special attention to the analysis and presentation of the
information obtained. Remember that these data must be useful and functional to us, so the
data collection method has much to do with it.

38
A study with reference to HDB Financial Services Ltd. Mandya

Steps in the Data Collection Process:

The data collection process typically involves several key steps to ensure the accuracy
and reliability of the data gathered. These steps provide a structured approach to gathering
and analyzing data effectively. Here are the key steps in the data collection process:

 Define the Objectives: Clearly outline the goals of the data collection. What
questions are you trying to answer?
 Identify Data Sources: Determine where the data will come from. This could include
surveys, interviews, existing databases, or observational data.
 Choose Data Collection Methods: Select appropriate methods based on your
objectives and data sources. Common methods include:
o Surveys and questionnaires
o Interviews (structured or unstructured)
o Focus groups
o Observational Research
o Document analysis

 Develop Data Collection Instruments: Create or adapt tools for collecting data, such
as questionnaires or interview guides. Ensure they are valid and reliable.
 Select a Sample: If you are not collecting data from the entire population, determine
how to select your sample. Consider sampling methods like random, stratified,
or convenience sampling.
 Collect Data: Execute your data collection plan, following ethical guidelines and
maintaining data integrity.
 Store Data: Organize and store collected data securely, ensuring it’s easily accessible
for analysis while maintaining confidentiality.
 Analyze Data: After collecting the data, process and analyze it according to your
objectives, using appropriate statistical or qualitative methods.
 Interpret Results: Conclude your analysis, relating them back to your original
objectives and research questions.
 Report Findings: Present your findings clearly and organized, using visuals and
summaries to communicate insights effectively.

39
A study with reference to HDB Financial Services Ltd. Mandya

 Evaluate the Process: Reflect on the data collection process. Assess what worked
well and what could be improved for future studies.

FOCUS GROUP:

Focus groups are a type of qualitative research. Observations of the group’s dynamic,
their answers to focus group questions, and even their body language can guide future
research on consumer decisions, products and services, or controversial topics.

Focus groups are often used in marketing, library science, social science, and user
research disciplines. They can provide more nuanced and natural feedback than individual
interviews and are easier to organize than experiments or large-scale surveys

1. Choose your topic:

 You’re interested in real-time, unfiltered responses on a given topic or in the
dynamics of a discussion between participants
 Your questions are rooted in feelings or perceptions, and cannot easily be
answered with “yes” or “no”
 You’re confident that a relatively small number of responses will answer
your question
 You’re seeking directional information that will help you uncover new
questions or future research ideas

2. Define your research scope and hypotheses:

Once you have determined that a focus group is the right choice for your topic,
you can start thinking about what you expect the group discussion to yield.

Perhaps literature already exists on your subject or a sufficiently similar topic

that you can use as a starting point. If the topic isn’t well studied, use your instincts to
determine what you think is most worthy of study.

Setting your scope will help you formulate intriguing hypotheses, set clear
questions, and recruit the right participants.

3. Determine your focus group questions:

The questions that you ask your focus group are crucially important to your
analysis. Take your time formulating them, paying special attention to phrasing. Be careful to
avoid leading questions, which can affect your responses.

Overall, your focus group questions should be:

40
A study with reference to HDB Financial Services Ltd. Mandya

 Open-ended and flexible

 Impossible to answer with “yes” or “no” (questions that start with “why” or “how” are
often best)
 Unambiguous, getting straight to the point while still stimulating discussion
 Unbiased and neutral

If you are discussing a controversial topic, be careful that your questions do not cause social
desirability bias. Here, your respondents may lie about their true beliefs to mask any socially
unacceptable or unpopular opinions. This and other demand characteristics can hurt your
analysis and lead to several types of reseach bias in your results, particularly if your
participants react in a different way once knowing they’re being observed. These include self-
selection bias, the Hawthorne effect, the Pygmalion effect, and recall bias.

4. Select s moderator or co-moderator:

It is important to have more than one moderator in the room. If you would like to
take the lead asking questions, select a co-moderator who can coordinate the technology, take
notes, and observe the behavior of the participants.

If your hypotheses have behavioral aspects, consider asking someone else to be

lead moderator so that you are free to take a more observational role.

Depending on your topic, there are a few types of moderator roles that you can choose from.

 The most common is the dual-moderator, introduced above.

 Another common option is the dueling-moderator style. Here, you and your co-
moderator take opposing sides on an issue to allow participants to see different
perspectives and respond accordingly.

5. Recruit your participants:

Depending on your research topic, there are a few sampling methods you can
choose from to help you recruit and select participants.

 Voluntary response sampling, such as posting a flyer on campus and finding

participants based on responses

41
A study with reference to HDB Financial Services Ltd. Mandya

 Convenience sampling of those who are most readily accessible to you, such as
fellow students at your university
 Stratified sampling of a particular age, race, ethnicity, gender identity, or other
characteristic of interest to you
 Judgment sampling of a specific set of participants that you already know you want
to include

Beware of sampling bias and selection bias, which can occur when some members of the
population are more likely to be included than others.

6. Step up your focus:

A focus group is not just a group of people coming together to discuss their
opinions. While well-run focus groups have an enjoyable and relaxed atmosphere, they are
backed up by rigorous methods to provide robust observations.

 Confirm a time and date:

Be sure to confirm a time and date with your participants well in advance. Focus groups
usually meet for 45–90 minutes, but some can last longer. However, beware of the possibility
of wandering attention spans. If you really think your session needs to last longer than 90
minutes, schedule a few breaks.

 Confirm whether it will take place in person or online:

You will also need to decide whether the group will meet in person or online. If you
are hosting it in person, be sure to pick an appropriate location.

 An uncomfortable or awkward location may affect the mood or level of participation

of your group members.
 Online sessions are convenient, as participants can join from home, but they can also
lessen the connection between participants.

As a general rule, make sure you are in a noise-free environment that minimizes distractions
and interruptions to your participants.

42
A study with reference to HDB Financial Services Ltd. Mandya

 Consent and ethical considerations:

It’s important to take into account ethical considerations and informed consent
when conducting your research. Informed consent means that participants possess all the
information they need to decide whether they want to participate in the research before it
starts. This includes information about benefits, risks, funding, and institutional approval.

Participants should also sign a release form that states that they are comfortable
with being audio- or video-recorded. While verbal consent may be sufficient, it is best to ask
participants to sign a form.

A disadvantage of focus groups is that they are too small to provide

true anonymity to participants. Make sure that your participants know this prior to
participating.

There are a few things you can do to commit to keeping information private. You can
secure confidentiality by removing all identifying information from your report or offer to
pseudonymize the data later. Data pseudonymization entails replacing any identifying
information about participants with pseudonymous or false identifiers.

 Preparation prior to participation:

If there is something you would like participants to read, study, or prepare beforehand, be
sure to let them know well in advance. It’s also a good idea to call them the day before to
ensure they will still be participating.

7. Host your focus group:

Consider conducting a tech check prior to the arrival of your participants, and note
any environmental or external factors that could affect the mood of the group that day. Be
sure that you are organized and ready, as a stressful atmosphere can be distracting and
counterproductive.

 Starting the focus group:

Welcome individuals to the focus group by introducing the topic, yourself, and your
co-moderator, and go over any ground rules or suggestions for a successful discussion. It’s
important to make your participants feel at ease and forthcoming with their responses.

43
A study with reference to HDB Financial Services Ltd. Mandya

Consider starting out with an icebreaker, which will allow participants to relax and
settle into the space a bit. Your icebreaker can be related to your study topic or not; it’s just
an exercise to get participants talking.

 Leading the discussion:

Once you start asking your questions, try to keep response times equal between
participants. Take note of the most and least talkative members of the group, as well as any
participants with particularly strong or dominant personalities.

You can ask less talkative members questions directly to encourage them to
participate or ask participants questions by name to even the playing field. Feel free to ask
participants to elaborate on their answers or to give an example.

As a moderator, strive to remain neutral. Refrain from reacting to responses, and be

aware of your body language (e.g., nodding, raising eyebrows) and the possibility
for observer bias. Active listening skills, such as parroting back answers or asking for
clarification, are good methods to encourage participation and signal that you’re listening.

Many focus groups offer a monetary incentive for participants. Depending on your
research budget, this is a nice way to show appreciation for their time and commitment. To
keep everyone feeling fresh, consider offering snacks or drinks as well.

8. Analyze your data and report your results:

After concluding your focus group, you and your co-moderator should debrief,
recording initial impressions of the discussion as well as any highlights, issues, or immediate
conclusions you’ve drawn.

The next step is to transcribe and clean your data. Assign each participant a number
or pseudonym for organizational purposes. Transcribe the recordings and conduct content
analysis to look for themes or categories of responses. The categories you choose can then
form the basis for reporting your results.

44
A study with reference to HDB Financial Services Ltd. Mandya

Advantages and disadvantages of focus groups:

Just like other research methods, focus groups come with advantages and disadvantages.

Advantages:

 They are fairly straightforward to organize and results have strong face validity.
 They are usually inexpensive, even if you compensate participant.
 A focus group is much less time-consuming than a survey or experiment, and you get
immediate results.
 Focus group results are often more comprehensible and intuitive than raw data.

Disadvantages:

 It can be difficult to assemble a truly representative sample. Focus groups are

generally not considered externally valid due to their small sample sizes.
 Due to the small sample size, you cannot ensure the anonymity of respondents, which
may influence their desire to speak freely.
 Depth of analysis can be a concern, as it can be challenging to get honest opinions on
controversial topics.
 There is a lot of room for error in the data analysis and high potential for observer
dependency in drawing conclusions. You have to be careful not to cherry-pick
responses to fit a prior conclusion.

1.Table of total revenue:

Total revenue (in

Year lacs)
2019-20 10756
2020-21 10944
2021-2022 11306
2022-23 12403
2023-24 14171

45
A study with reference to HDB Financial Services Ltd. Mandya

Total revenue

14171
12403
11306
10944
10756

2 0 1 9 -2 0 2 0 2 0 -2 1 2 0 2 1 -2 2 2 0 2 2 -2 3 2 0 2 3 -2 4

2.Table of Profit Before Tax:

Profit before
Year tax(in lacs)
2019-20 1464
2020-21 501
2021-2022 1348

46
A study with reference to HDB Financial Services Ltd. Mandya

2022-23 2627
2023-24 3305

profit before tax

2019-20 2020-21 2021-22 2022-23 2023-24

3.Table of Profit After Tax:

Year Profit after tax

2019-20 1005
2020-21 391
2021-2022 1011
2022-23 1959
2023-24 2461

47
A study with reference to HDB Financial Services Ltd. Mandya

profit after tax

2019-20 2020-21 2021-22 2022-23 2023-24

4. Table of Share Holders Fund:

Year SHF
2019-20 8018
2020-21 8446
2021-2022 9540
2022-23 11437
2023-24 13743

48
A study with reference to HDB Financial Services Ltd. Mandya

SHF

2019-20 2020-21 2021-22 2022-23 2023-24

5.Table of Borrowings:

Year Borrowings
2019-20 49804
2020-21 50359
2021-2022 48973
2022-23 54865
2023-24 74331

49
A study with reference to HDB Financial Services Ltd. Mandya

Borrowings

Borrowings

0 10000 20000 30000 40000 50000 60000 70000 80000

2023-24 2022-23 2021-22 2020-21 2019-20

6.Table of Earnings per Share:

Earnings per
Year share
2019-20 12.78
2020-21 4.97
2021-2022 12.81
2022-23 24.78
2023-24 31.08

50
A study with reference to HDB Financial Services Ltd. Mandya

Earning per share

31.08

24.78

12.78 12.81

4.97

2019-20 2020-21 2021-22 2022-23 2023-24

7.Table of Book Value per Share:

Book value per

Year share
2019-20 101.8
2020-21 107.02
2021-2022 120.69
2022-23 144.52
2023-24 173.28

51
A study with reference to HDB Financial Services Ltd. Mandya

Book Value per Share

200
180
160
140
120
100
80
60
40
20
0
Book value per share

2019-20 2020-21 2021-2022 2022-23 2023-24

RESEARCH INSTRUMENTS:

A research instrument is a tool you will use to help you collect, measure and
analyze the data you use as part of your research. The choice of research instrument will
usually be yours to make as the researcher and will be whichever best suits your
methodology.

There are many different research instruments you can use in collecting data for your
research:

 Interviews (either as a group or one-on-one). You can carry out interviews in many
different ways. For example, your interview can be structured, semi-structured, or
unstructured. The difference between them is how formal the set of questions is that is

52
A study with reference to HDB Financial Services Ltd. Mandya

asked of the interviewee. In a group interview, you may choose to ask the
interviewees to give you their opinions or perceptions on certain topics.
 Surveys (online or in-person). In survey research, you are posing questions in which
you ask for a response from the person taking the survey. You may wish to have
either free-answer questions such as essay style questions, or you may wish to use
closed questions such as multiple choice. You may even wish to make the survey a
mixture of both.
 Focus Groups. Similar to the group interview above, you may wish to ask a focus
group to discuss a particular topic or opinion while you make a note of the answers
given.
 Observations. This is a good research instrument to use if you are looking into
human behaviors. Different ways of researching this include studying the spontaneous
behavior of participants in their everyday life, or something more structured. A
structured observation is research conducted at a set time and place where researchers
observe behavior as planned and agreed upon with participants.

These are the most common ways of carrying out research, but it is really dependent on your
needs as a researcher and what approach you think is best to take. It is also possible to
combine a number of research instruments if this is necessary and appropriate in answering
your research problem.

SAMPLING TECHNIQUE:

Sampling is very useful in research. It helps in determining the accuracy of the

research or survey. If there is a mistake in the sample then it has a direct implication on the
result. We can use various techniques to help us gather a sample based on the situation and
need of the researcher. For the purpose of quantified research, sampling techniques are used
extensively and their importance cannot be downplayed in any field of research.

53
A study with reference to HDB Financial Services Ltd. Mandya

It is of great importance for our day to day activities. For example, when we buy
fruit or vegetables we do not look at each individual piece, we just pick and examine a few
items and form an idea about the whole lot.

As said by famous researcher (Snedecor) “A cart load of coal is accepted or rejected

on the evidence gained from testing only a few pounds. The physicians make inference about
a patient’s blood through examination of a single drop. Samples are devices for learning
about large masses by observing a few individuals”.

Sampling is also widely used in the field of education and the census being hardly
used like the case of population count. For investigating a sample, we select a small number
of units from the entire domain and think of them as being representative. Then we study
them in depth and reach to the conclusions that are generalized for the entire domain. A
sample investigation does not study all units like a census investigation, it only chooses a few
unit on certain predefined basis.

Characteristics of Sampling Technique:

The significance and value of the sampling techniques are brought forward by the
following characteristics

1) Cost & Time: It is highly cost effective and efficient thereby taking less time than census
technique. (Technique of Measuring the variables of whole population).

2) Reliability: If we choose the sample units carefully and the matter surveyed is not diverse
in character then the results derived from the sample should have the same reliability as the
census survey.

3) In-depth Study: Due to the fact that the number of units in a sample are relatively small,
they can be studied in depth and observed from various angles and viewpoints.

4) Scientific Approach: The sampling technique follows and scientific approach and the
results garnered from a particular set of units can be verified and also applied to other set of
units. The deviation from the norm can be determined by taking random samples.

5) Suitability: Maximum number of researches and surveys use a sampling Sampling

Techniques technique because whenever the matter is not diverse in nature; the study of a
small number of unit is enough. This is applicable to most situations.
54
A study with reference to HDB Financial Services Ltd. Mandya

Errors of Sampling Technique:

Few of the errors of sampling technique can be discussed as follows:

 Accuracy: While comparing it to a census, the observations from a sample can have
more faults, hence it can be less accurate in comparison to a census technique.
 Changeability of Units: In the field of survey the units can change and if these are
not in harmony then the sampling technique can prove to be wrong. It will no longer
be scientific to extend the results from one set to other.
 False conclusions: If we do not take enough care while selecting samples the results
from the survey can be wrong if extended to all the units. If we go back to our earlier
example of food expense and choose only well off students then the result for the food
expense will be misleading if extended to the entire university.
 Requirement of Specific Knowledge or Expertise: The success of sample technique
depends on the skills of the researcher; any researcher with mediocre skill level can
jeopordise the entire selection process.
 Impossible Sampling: There are certain circumstances that make it difficult to apply
the sample technique. If we need 100% accuracy or the time is too less to make a
selection then this technique cannot be applied. It might not be used when the material
is diverse in nature.

When and Where to Use Sampling Technique:

Despite of the shortcomings or errors that can occur in sampling techniques, yet
they are used significantly. Below mentioned are few of the points to keep in mind before
applying this technique:

o Large or Infinite Data Size: If the total size of the data is very large then sampling
technique is used as it reduces the cost and effort and time involved in the research.
o If full accuracy is not required: If the researcher does not require absolute accuracy
then he/she can go for a sampling technique.

55
A study with reference to HDB Financial Services Ltd. Mandya

o Where Census is not possible: Suppose one wants to know the salt content in
oceans, she cannot measure it in all the water of the oceans, she/he will have to take a
sample.
o Homogeneity: If there is no difference between the units of a domain then sampling
technique is most suitable to use.

QUALITIES OF AN IDEAL SAMPLE:

An ideal sample contains the following essentials:

 Representation: A perfect sample is where the whole data can be represented

adequately. It must be ensured that units with same characteristics are selected as
represented in the data.
 Independent: The other aspect of a sample is it being independent which means the
units should be interchangeable. There should be a freedom for every unit has a
chance to be included in the sample.
 Adequate: The size of the sample should be adequate in order to infer any results and
apply the conclusions to the entire data.
 Homogenous: The sampling units must have the same characteristics as other units or
else the sample will be rendered unscientific

METHODS/TECHNIQUES USED IN SAMPLING:

There can be many methods to derive a sample from a given data. The problem,
its scope and nature will determine the method used by the researcher but there must be a
careful consideration given to the choice.

As mentioned in the previous unit that the sampling technique can be broadly
categorized into two:

56
A study with reference to HDB Financial Services Ltd. Mandya

1. Probability Sampling
 Simple random sampling
 Startified sampling
 Cluster sampling
 Systematic sampling
 Multi-stage sampling
2. Non- Probability Sampling
 Purposive sampling
 Quota sampling
 Convenience sampling
 Referral/Snowball sampling

Advantages and Disadvantages of Probability Sampling

Advantages:

 Is easier to undertake
 Lesser degree of preconceived notions and judgement involved
 The research finding are highly reliable
 Sampling error can be estimated accurately
 Is easily performed even on non-technical persons
 There is no sampling and systematic bias.

Disadvantages:

 Monotonous
 Chances that only a specific class may be chosen
 Degree of complexity is higher
 Is generally more time consuming and costly.

Advantages and Disadvantages of Non-Probability Sampling:

Advantages:

57
A study with reference to HDB Financial Services Ltd. Mandya

 In case an individual is not willing to participate, s/he can be easily replaced by

someone else
 Less expensive
 Highly time effective
 Sampling methods are easy to execute.

Disadvantages:

 Only accessible individuals are chosen and this reduces the chance of assimilating
important data
 No way to judge the accurate representation of population
 Too much dependence on researchers’ judgement
 No way to estimate margin of error
 There can be a bias while selecting units
 Does not focus on effectiveness, instead thrives on simplicity.

SAMPLE SIZE:

Sample size is the number of observations or individuals included in a study or

experiment. It is the number of individuals, items, or data points selected from a larger
population to represent it statistically. The sample size is a crucial consideration in research
because it directly impacts the reliability and extent to which you can generalize those findings
to the larger population.

A larger sample size can potentially enhance the precision of estimates, leading to a
narrower margin of error. In other words, the results from a larger sample will likely be closer
to the true population parameter. A larger sample size can also increase the power of a
statistical test. This means that with a larger sample, you are less likely to find results that are
not actually true.

However, having a sample size that is too large can cost unnecessary resources and
time. A good study will be able to find the most accurate results with the least amount of
subjects.

58
A study with reference to HDB Financial Services Ltd. Mandya

How do you determine sample size?

Determining the appropriate sample size for a study will usually involve considering
the purpose of the study, population size, risk of committing an error, and available resources.
When determining the appropriate sample size, you should consider factors such as the
following:

o Your study design:

Different types of studies might require different sample sizes. For example, a study
aiming to understand a rare disease might need a larger sample size to ensure it captures
enough cases for analysis. Whether you choose to conduct an observational study, cohort study,
case-control study, or experimental study will affect the sample size you need.

o Your population:

In general, with a smaller population, you will need a higher sampling ratio than in a
larger population. If you are conducting a survey, you may also need to factor in your estimated
response rate to ensure you are sampling enough people to get the number of responses you
need. If you have a high degree of variability in your target population, you may also need to
increase your sample size to increase the likelihood that your sample represents the population
of interest.

o Your statistical methods:

You can use several statistical methods to calculate an appropriate sample size, such
as power analysis. This method considers the effect size, significance level, and power to
calculate the sample size. Essentially, you will need to determine what level of confidence you
want to have in your results, and how much error you are willing to accept.

59
A study with reference to HDB Financial Services Ltd. Mandya

o Your available resources:

Lastly, practical considerations like time, money, and availability of subjects can affect
the chosen sample size. While a larger sample size may offer more accurate results, it can also
require more resources to collect and analyze.

SWOT Analysis:

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework

used to evaluate a company's competitive position and to develop strategic planning. SWOT
analysis assesses internal and external factors, as well as current and future potential. A
SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the
strengths and weaknesses of an organization, initiatives, or within its industry.

 SWOT analysis is a strategic planning technique that provides assessment tools.

 Identifying core strengths, weaknesses, opportunities, and threats leads to fact-based
analysis, fresh perspectives, and new ideas.
 A SWOT analysis pulls information from internal sources (strengths or weaknesses
of the specific company) and external forces that may have uncontrollable impacts
on decisions (opportunities and threats).
 SWOT analysis works best when diverse groups or voices within an organization can
provide realistic data points rather than prescribed messaging.
 The findings of a SWOT analysis are often synthesized to support a single objective
or decision that a company is facing .

Understanding SWOT Analysis:

SWOT analysis is a technique for assessing the performance, competition, risk,

and potential of a business, as well as part of a business such as a product line or division, an
industry, or other entity.

Using internal and external data , the technique can guide businesses toward
strategies more likely to be successful, and away from those in which they have been, or are
likely to be, less successful. Independent SWOT analysts, investors, or competitors can also
60
A study with reference to HDB Financial Services Ltd. Mandya

guide them on whether a company, product line, or industry might be strong or weak and
why.

SWOT analysis was first used to analyze businesses. Now, it's often used by
governments, nonprofits, and individuals, including investors and entrepreneurs. There is
seemingly limitless applications to the SWOT analysis.

Components of SWOT Analysis:

Strengths:
Strengths describe what an organization excels at and what separates it from the
competition: a strong brand, loyal customer base, a strong balance sheet, unique technology,
and so on. For example, a hedge fund may have developed a proprietary trading strategy that
returns market-beating results. It must then decide how to use those results to attract new
investors.

Weaknesses:
Weaknesses stop an organization from performing at its optimum level. They are
areas where the business needs to improve to remain competitive: a weak brand, higher-
than-average turnover, high levels of debt, an inadequate supply chain, or lack of capital.

Opportunities:
Opportunities refer to favorable external factors that could give an organization a
competitive advantage. For example, if a country cuts tariffs, a car manufacturer can export
its cars into a new market, increasing sales and market share.

Threats:
Threats refer to factors that have the potential to harm an organization. For
example, a drought is a threat to a wheat-producing company, as it may destroy or reduce
the crop yield. Other common threats include things like rising costs for materials,
increasing competition, tight labor supply, and so on.

61
A study with reference to HDB Financial Services Ltd. Mandya

SWOT Table:

Analysts present a SWOT analysis as a square segmented into four quadrants,

each dedicated to an element of SWOT. This visual arrangement provides a quick overview
of the company’s position. Although all the points under a particular heading may not be of
equal importance, they all should represent key insights into the balance of opportunities and
threats, advantages and disadvantages, and so forth.

The SWOT table is often laid out with the internal factors on the top row and the
external factors on the bottom row. In addition, the items on the left side of the table are
more positive/favorable aspects, while the items on the right are more concerning/negative
elements.

How to Do a SWOT Analysis:

A SWOT analysis can be broken into several steps with actionable items before
and after analyzing the four components. In general, a SWOT analysis will involve the
following steps.

Step 1: Determine Your Objective

A SWOT analysis can be broad, though more value will likely be generated if the
analysis is pointed directly at an objective. For example, the objective of a SWOT analysis
may focused only on whether or not to perform a new product rollout. With an objective in
mind, a company will have guidance on what they hope to achieve at the end of the process.
In this example, the SWOT analysis should help determine whether or not the product
should be introduced.

Step 2: Gather Resources

Every SWOT analysis will vary, and a company may need different data sets to
support pulling together different SWOT analysis tables. A company should begin by
understanding what information it has access to, what data limitations it faces, and how
reliable its external data sources are.

In addition to data, a company should understand the right combination of personnel

to have involved in the analysis. Some staff may be more connected with external forces,
while various staff within the manufacturing or sales departments may have a better grasp of

62
A study with reference to HDB Financial Services Ltd. Mandya

what is going on internally. Having a broad set of perspectives is also more likely to yield
diverse, value-adding contributions.

Step 3: Compile Ideas

For each of the four components of the SWOT analysis, the group of people assigned
to performing the analysis should begin listing ideas within each category. Examples of
questions to ask or consider for each group are in the table below.

Internal Factors:

What occurs within the company serves as a great source of information for the
strengths and weaknesses categories of the SWOT analysis. Examples of internal factors
include financial and human resources, tangible and intangible (brand name) assets, and
operational efficiencies.

Potential questions to list internal factors are:

 (Strength) What are we doing well?

 (Strength) What is our strongest asset?
 (Weakness) What are our detractors?
 (Weakness) What are our lowest-performing product lines?

External Factors:

What happens outside of the company is equally as important to the success of a

company as internal factors. External influences, such as monetary policies, market changes,
and access to suppliers, are categories to pull from to create a list of opportunities and
weaknesses.

Potential questions to list external factors are:

 (Opportunity) What trends are evident in the marketplace?

 (Opportunity) What demographics are we not targeting?
 (Threat) How many competitors exist, and what is their market share?
 (Threat) Are there new regulations that potentially could harm our operations or
products?

63
A study with reference to HDB Financial Services Ltd. Mandya

Strengths Weaknesses
1. What is our competitive advantage? 1. Where can we improve?
2. What resources do we have? 2. What products are underperforming?
3. What products are performing well? 3. Where are we lacking resources?

Opportunities Threats
1. What new technology can we use? 1. What regulations are changing?
2. Can we expand our operations? 2. What are competitors doing?
3. What new segments can we test? 3. How are consumer trends changing?

Companies may consider performing this step as a "white-boarding" or "sticky note"

session. The idea is there is no right or wrong answer; all participants should be encouraged
to share whatever thoughts they have. These ideas can later be discarded; in the meantime,
the goal should be to come up with as many items as possible to invoke creativity and
inspiration in others.

Step 4: Refine Findings

With the list of ideas within each category, it is now time to clean-up the ideas. By
refining the thoughts that everyone had, a company can focus on only the best ideas or
largest risks to the company. This stage may require substantial debate among analysis
participants, including bringing in upper management to help rank priorities.

Step 5: Develop the Strategy

Armed with the ranked list of strengths, weaknesses, opportunities, and threats, it is
time to convert the SWOT analysis into a strategic plan. Members of the analysis team take
the bulleted list of items within each category and create a synthesized plan that provides
guidance on the original objective.

For example, the company debating whether to release a new product may have
identified that it is the market leader for its existing product and there is the opportunity to
expand to new markets. However, increased material costs, strained distribution lines, the
need for additional staff, and unpredictable product demand may outweigh the strengths and

64
A study with reference to HDB Financial Services Ltd. Mandya

opportunities. The analysis team develops the strategy to revisit the decision in six months in
hopes of costs declining and market demand becoming more transparent.

Use a SWOT analysis to identify challenges affecting your business and opportunities
that can enhance it. However, note that it is one of many techniques, not a prescription.

Common Mistakes When Preparing SWOT Analysis:

When preparing a SWOT analysis, several common mistakes can undermine its
effectiveness. Let's take a look at some ways your SWOT analysis may go awry.

One easy error to make when preparing a SWOT analysis is failing to be objective
and honest in the assessment. Companies often tend to overemphasize their strengths while
downplaying weaknesses, resulting in an overly optimistic and unrealistic analysis. This bias
can lead to missed opportunities for improvement and leave the organization vulnerable to
unforeseen threats. As difficult as it may be to be honest in your analysis, the validity of
underlying assumptions is the cornerstone of how useful the SWOT analysis will be.

Another significant mistake is conducting the analysis in isolation, without input from
diverse key stakeholders. You should try get to input from employees at various levels,
customers, suppliers, and industry experts. Each may have a unique view of your company,
and each may come up with different items to be listed in each quadrant based on how they
specifically interact with the company.

Yet another common pitfall is neglecting to prioritize or weight the factors identified
in the SWOT analysis. Not all strengths, weaknesses, opportunities, and threats are equally
important or impactful. Failing to distinguish between major and minor factors can lead to
misallocation of resources and misguided strategic decisions. It can be easy for the important
items to be buried if too many non-material items are identified.

Another frequent error is treating the SWOT analysis as a one-time exercise. You
should be prepared to do a SWOT analysis periodically, The business environment is
constantly changing, and a SWOT analysis should be regularly updated to remain relevant.
In addition, the analysis itself is just the beginning; its true value lies in using the findings to
develop and implement strategic actions. You can then check future SWOT analysis to make
sure the company is addressing the major points.

65
A study with reference to HDB Financial Services Ltd. Mandya

Benefits of SWOT Analysis:

A SWOT analysis won't solve every major question a company has. However,
there's a number of benefits to a SWOT analysis that make strategic decision-making easier.

 A SWOT analysis makes complex problems more manageable. There may be an

overwhelming amount of data to analyze and relevant points to consider when
making a complex decision. In general, a SWOT analysis that has been prepared by
paring down all ideas and ranking bullets by importance will aggregate a large,
potentially overwhelming problem into a more digestible report.
 A SWOT analysis requires external considerations. Too often, a company may be
tempted to only consider internal factors when making decisions. However, there are
often items out of the company's control that may influence the outcome of a
business decision. A SWOT analysis covers both the internal factors a company can
manage and the external factors that may be more difficult to control.
 A SWOT analysis can be applied to almost every business question. The analysis
can relate to an organization, team, or individual. It can also analyze a full product
line, changes to brand, geographical expansion, or an acquisition. The SWOT
analysis is a versatile tool that has many applications.
 A SWOT analysis leverages different data sources. A company will likely use
internal information for strengths and weaknesses. The company will also need to
gather external information relating to broad markets, competitors,
or macroeconomic forces for opportunities and threats. Instead of relying on a single,
potentially biased source, a good SWOT analysis compiles various angles.
 A SWOT analysis may not be overly costly to prepare. Some SWOT reports do
not need to be overly technical; therefore, many different staff members can
contribute to its preparation without training or external consulting.

SWOT Analysis Example:

Let's perform a SWOT analysis together by analyzing the strengths, weaknesses,

opportunities, and threats of Tesla.

 Strengths: Tesla has a strong position in the EV market because of its strong brand
recognition as an industry pioneer. The company's advanced battery technology

66
A study with reference to HDB Financial Services Ltd. Mandya

allows for superior range in its vehicles. Tesla's extensive Supercharger network also
provides a significant advantage in terms of charging infrastructure.2
 Weaknesses: Tesla has struggled with production capacity limitations, often failing
to meet demand and delivery targets.3 Quality control issues have also been a
recurring problem from time to time. Tesla's vehicles are generally priced higher than
those of competitors, which may limit market penetration in more price-sensitive
regions.
 Opportunities: Tesla stands to benefit from the growing global demand for electric
vehicles. The company has opportunities to expand beyond automotive into related
fields such as energy storage and solar power, leveraging its battery expertise. The
development of autonomous driving technology also presents another significant
growth avenue, as Tesla has already begun implementing self-driving
cars.4 Additionally, Tesla has the potential to tap into large, emerging markets like
China and India where EV adoption could accelerate where it hasn't already.
 Threats: The competitive landscape for Tesla is intensifying as traditional
automakers and new entrants invest heavily in electric vehicle technology. This
increased competition could erode Tesla's market share and profit margins. Economic
factors such as economic downturns could impact sales of Tesla's primarily luxury-
oriented vehicles. The company also faces risks related to supply chain disruptions,
particularly for critical materials used in battery production where it may already
have manufacturing constraints.

What Are the 4 Steps of SWOT Analysis?

The four steps of SWOT analysis comprise the acronym SWOT: strengths,
weaknesses, opportunities, and threats. These four aspects can be broken into two analytical
steps. First, a company assesses its internal capabilities and determines its strengths and
weaknesses. Then, a company looks outward and evaluates external factors that impact its
business. These external factors may create opportunities or threaten existing operations.

Why Is SWOT Analysis Used?

A SWOT analysis is used to strategically identify areas of improvement or
competitive advantages for a company. In addition to analyzing thing that a company does
well, SWOT analysis takes a look at more detrimental, negative elements of a business.
Using this information, a company can make smarter decisions to preserve what it does well,

67
A study with reference to HDB Financial Services Ltd. Mandya

capitalize on its strengths, mitigate risk regarding weaknesses, and plan for events that may
adversely affect the company in the future.

What Are the Limitations of SWOT Analysis?

While SWOT analysis is a powerful tool, it does have some limitations. It can
sometimes oversimplify complex situations and is susceptible to the subjectivity and bias of
participants. The analysis also doesn't provide specific guidance on how to address identified
issues and can lead to analysis paralysis if not followed by concrete action.

ANALYSIS AND INTERPRETATION:

The process of critical evaluation of the financial information contained in the

financial statements in order to understand and make decisions regarding the operations of
the firm is called ‘Financial Statement Analysis’. It is basically a study of relationship among
various financial facts and figures as given in a set of financial statements, and the
interpretation thereof to gain an insight into the profitability and operational efficiency of the
firm to
assess its financial health and future prospects.

The term ‘financial analysis’ includes both ‘analysis and interpretation’. The term
analysis means simplification of financial data by methodical classification given in the
financial statements. Interpretation means explaining the meaning and significance of the
data.

 Financial statement analysis is used by internal and external stakeholders to evaluate

business performance and value.

 Financial accounting calls for all company

 To create a balance sheet, income statement, and cash flow statement, which form the
basis for financial statement analysis.

 Horizontal, vertical, and ratio analysis are three techniques that analysts use when
analyzing financial statements.

68
A study with reference to HDB Financial Services Ltd. Mandya

Types of Financial Analysis:

The various forms of analysis may be involved. It is typically divided into four
categories based on the information used and the modus operandi.

 External analysis.

 Internal analysis.

 Horizontal analysis.

 Vertical analysis.

External analysis
 External analysis is an analysis based on information easily available to outsiders
(externals) for the business.

 Outsiders include creditors, suppliers, investors, and government agencies regulating

the business in a normal way.

 These parties do not have access to the internal records (information) of the concern
and generally obtain data for analysis from the published financial statements. Thus
an analysis done by outsiders is known as external analysis.

Internal analysis
 Internal analysis is an analysis done on the basis of information obtained from the
internal and unpublished records and books. While conducting this analysis, the
analyst is a part of the enterprise he is analysing.

 Analysis for managerial purposes is the internal type of analysis and is conducted by
executives and employees of the enterprise as well as governmental and court
agencies which may have major regulatory and other jurisdiction over the business.

Horizontal analysis
 Horizontal analysis is also known as ‘dynamic analysis’ or ‘trend analysis’.

 This analysis is done by analysing the statements over a period of time. Under this
analysis, we try to examine as to what has been the periodical trend of various items
shown in the statement.

69
A study with reference to HDB Financial Services Ltd. Mandya

 The horizontal analysis consists of a study of the behaviour of each of the entities in
the statement.

Vertical analysis
 Vertical analysis is also known as ‘static analysis’ or ‘structural analysis’.

 It is made by analysing a single set of financial statement prepared at a particular date.

Under such a type of analysis, quantitative relationship is established between the
different items shown in a particular statement.

 Common size statements are the form of vertical analysis. Thus vertical analysis is the
study of quantitative relationship existing among the items of a particular data.

Objectives of Financial Statements:

The following are the important objectives of financial statements :

 To provide adequate information about the source of finance and obligations of

the finance firm.
 Toprovide
reliable information about the financial performance and financial soundness of the
concern.
 Toprovide sufficient information about results of operations of
business over a period of time.
 Toprovide useful information about the financial conditions ofthe business and move
ment of resources in and out of business.
 Toprovide necessary information to enable the users to evaluate the earning performa
nce of resources or managerial performance in forecasting the earning potentials of
business.

Types of Financial Statements:

Companies manage the operations of their business and give transparency to their
stakeholders by using the balance sheet, income statement, and cash flow statement. The
three assertions are connected to one another and produce various interpretations of a
company’s operations and performance.

70
A study with reference to HDB Financial Services Ltd. Mandya

Balance Sheet:
 The balance sheet is a report of a company’s financial worth in terms of book value. It
is broken into three parts to include a company’s assets, liabilities, and shareholder
equity.
 Short-term assets such as cash and accounts receivable can tell a lot about a
company’s operational efficiency; liabilities include the company’s expense
arrangements and the debt capital it is paying off; and shareholder equity includes
details on equity capital investments and retained earnings from periodic net income.
 The balance sheet must balance assets and liabilities to equal shareholder equity.

Income Statement:
 The income statement breaks down the revenue that a company earns against the
expenses involved in its business to provide a bottom line, meaning the net profit or
loss.
 The income statement is broken into three parts that help to analyze business
efficiency at three different points. It begins with revenue and the direct costs
associated with revenue to identify gross profit.
 It then moves to operating profit, which subtracts indirect expenses like marketing
costs, general costs, and depreciation. Finally, after deducting interest and taxes,
the net income is reached.

Cash Flow Statement:

 The cash flow statement provides an overview of the company’s cash flows from
operating activities, investing activities, and financing activities.
 Net income is carried over to the cash flow statement, where it is included as the top
line item for operating activities.
 The financing activities section includes cash flow from both debt and equity
financing.

Techniques of Analysis and Interpretation:

The most important techniques of analysis and interpretation are:

1. Ratio Analysis

71
A study with reference to HDB Financial Services Ltd. Mandya

2. Fund Flow Analysis

3. Cash Flow Analysis.

1. Ratio Analysis:
Two distinct items on the statements can be compared to one another, and the
comparison results in an expression of the relationship as a ratio. For items on the same
financial statement or on multiple statements, ratios are calculated. To make these ratios more
significant, they are compared to those from previous years and to those from other
companies.

An easy mathematical expression is a ratio. Various methods can be used to express

ratios. It is a number that has been converted into another number. It is a metric for
measuring the relationship between two figures in statistics.

2. Fund Flow Analysis:

The most notable aspect of the development of accounting theory and practise has
been funds flow analysis. Only a limited amount of information about a business’s financial
activity is provided by its financial statement. The balance sheet displays changes in assets
and liabilities, while the income statement only addresses operations.

In fact, this study of static financial statement components is largely what these
statements are. The fund movements in the business concern must be studied and analysed in
this perspective. The “Statement of Sources and Uses of Funds,” also known as the “Fund
Statement” or “Fund Flow Analysis,” is another financial analysis instrument that may be
used to conduct such a study or analysis.

3. Cash Flow Analysis:

The Fund Flow Statement is unable to accurately reflect the amount of cash coming
in and going out. When we talk about cash, we’re talking about the company’s bank balances
at the end of the accounting period as shown on the balance sheet of the company. Similar to
inventory and accounts receivable, cash is a current asset. Cash displays its current liquidity
situation.

72
A study with reference to HDB Financial Services Ltd. Mandya

The term cash can be viewed in two senses. In a narrow sense, it includes actual cash
in the form of notes and coins and bank drafts held by a firm and the deposits withdrawable
on demand the company has held in commercial banks. But in a broader sense, it also
includes what are called ‘marketable securities’ which are those securities which can be
immediately sold or converted into cash if required.

Cash flow statement is a statement of cash flow and cash flow signifies the
movements of cash in and out of a business concern. Inflow of cash is known as sources of
cash and outflow of cash is called uses of cash. This statement also depicts factors for such
inflow and outflow of cash.

Advantages of Financial Statements Analysis:

The various advantages of financial statement analysis are:

 The government authorities use financial statement analysis to determine the amount
of taxes owed by the company.

 Any business can examine its own performance over any time period by looking at its
financial accounts.

 The information provided to investors is sufficient for them to decide whether to place
their money in a certain company.

 The most significant advantage of financial statement analysis is that it gives investors
guidance on whether to invest their money in a particular business.

 Another advantage of financial statement analysis is that regulatory authorities like

IASB (International Accounting Standards Board) can ensure the company following
the required accounting standards.

 Financial statement analysis is helpful to the government agencies in analyzing the

taxation owed to the firm.

 Above all, the company is able to analyse its own performance over a specific time
period.

Limitations of Financial Statements Analysis:

 Financial analysis does not consider price level changes.

73
A study with reference to HDB Financial Services Ltd. Mandya

 Financial analysis may be misleading without the knowledge of the changes in

accounting procedure followed by a firm.

 Financial analysis is just a study of reports of the company.

 Monetary information alone is considered in financial analysis while non-monetary

aspects are ignored.

 The financial statements are prepared on the basis of accounting concept, as such, it
does not reflect the current position.

Statistical tool used for analysis and interpretation:

Statistical tools and methods can make analyzing complex data and information
easier. Businesses use a variety of statistical tools to gather insights from customer and
market data. Learning more about common statistical tools, methods, and models can help
you understand how to use them effectively.In this article, we define statistical methods,
discuss their application, and explain six commonly-used statistical tools along with their
formulas.

Statistical methods and analytical tools help collect and analyze samples of data to
identify patterns and trends. These insights help make predictions that can be useful in
making strategic business decisions. Statistical analysis tools are also effective at analyzing,
describing, summarizing, and comparing data of different organizations in the same industry.

Many digital analytical tools can automate the process of using specialized software
and algorithms. Most businesses use a variety of data collection, management, and analytical
tools to manage data and gather in-depth insights and reports.Statistical analysis can help
businesses leverage the benefits of big data, large and complex data sets that are usually
unstructured. Companies can create better data collection processes, surveys, and tests to
make data-based decisions using statistical tools. These analytical tools also help align
different functions of a business, set realistic goals, and measure progress effectively.

Application of statistical methods:

Here are some prominent uses and applications of statistical tools and formulas:

74
A study with reference to HDB Financial Services Ltd. Mandya

 Problem framing

One of the most important uses of statistical methods is that it helps when
framing a problem. This includes finding out what type of problem it is, how to classify it,
and the types and inputs of the problem. The framing of a problem may not be obvious
sometimes, especially for beginners or researchers with limited experience, and may require
significant exploration. Statistical analysis, such as exploratory data analysis and data mining,
helps frame the problem effectively.

 Data sorting and cleaning

Statistical tools help with data sorting and cleaning. They also help to identify
and remedy issues with the quality of data through various data cleaning techniques. It's
essential to note that when dealing with large data sets, not all data may be relevant. Data
sorting and classification tools remove data that are irrelevant or obsolete.

 Data understanding

Data understanding involves knowledge of variables and the relationship between

them. Both experts and beginners can benefit from understanding the different parameters
and formats of big data and establishing their relationships. For understanding data, summary
statistics and data visualization are some essential methods and tools. Businesses can improve
their data understanding by defining its elements and learning about its content and location.
Expressing data understanding can take the form of business glossaries, database directories,
and metadata.

 Evaluating models

An important part of predictive analysis is evaluating a learning method. Many

statistical tools aid the process of training and evaluating a predictive model. This helps
compare the effect of independent variables on an outcome. Statisticians use re-sampling
methods for splitting a dataset into subsets for training and evaluating a predictive model.

 Presenting models and making forecasts

Once the final model is ready for presentation to stakeholders, statistical tools can
help in making real-world predictions based on real data. They can also be beneficial in
making model predictions for new data where the eventual outcome is unknown. Estimation
statistics tools usually quantify this uncertainty for a prediction via prediction intervals.

75
A study with reference to HDB Financial Services Ltd. Mandya

6 common statistical tools and analysis

Here are a few commonly used statistical tools and their formulas:

1. Mean:

Mean is an important method for performing statistical analysis and presents the
average data to provide a common measure of central tendency. To calculate it, you simply
add up the list of values in a data set and then divide that number by the total number of items
in the set. In statistics, the arithmetic mean is the summation of all observations divided by
the number of observations. It represents the central value of a data set or distribution through
a single value.

The formula for mean is as follows:

Mean = (sum of all values) / (total number of values in the data set)

For example, to find the mean for the values 2, 4, 6, 8, and 10, follow these steps:

1. Summation: Add all the different values in the data set (2+4+6+8+10) to find 30.

2. Division: Divide the total value (30) by the total number of values in the data set (5)
to yield 6.

The mean of the above data set is 6.

2. Standard deviation:

Standard deviation is the measure of the spread of a data set. The degree of variance
of the data set is the average square of the difference between the mean value and each data
value. Standard deviation is the spread of data values around the mean or average data.

The formula for standard deviation is:

σ = √(∑x−¯x)2 /n)The symbol for standard deviation is "σ," where "Σ" stands for the sum of
the data, "x" stands for the value of the data set. In the formula, n stands for the number of
data points in the population.

3. Hypothesis testing:

A hypothesis is a claim or assumption about a data set. Hypothesis testing is a

standard process to draw conclusions about the property of a population parameter or a

76
A study with reference to HDB Financial Services Ltd. Mandya

population probability distribution. It's also called T Testing and is helpful while testing the
two sets of random variables within the data set. Hypotheses testing compares the data
against various hypotheses and assumptions and assists in forecasting and decision-making.

The formula for hypothesis testing is:H0: P = 0.5H1: P ≠ 0.5Researchers interpret

statistical hypothesis test results to make a specific claim. They measure the p-value, which
has a 50% chance of being correct. The null hypothesis is the basic assumption that
researchers make while starting a test or experiment and accept or reject as per the findings.
They test the alternative hypothesis, which is the opposite of the null hypothesis, to determine
whether the null hypothesis is true. If they find adequate evidence of the null evidence not
being true, the alternative hypothesis replaces the null hypothesis.

4. Regression:

Regression is the relationship between a dependent variable and an independent

variable. Researchers and statisticians use it to explain how one variable influences another or
how the changes in a variable trigger change in another. Regression analysis graphs and
charts can help show the relationships between the variables and trends over a specific
amount of time.

The formula for regression is: Y = a + b(x) + Є In this formula, "Y" is the
dependent variable, "x" is the independent variable, "a" stands for the intercept, "b" is the
slope, and "Є" denotes the regression residual.

5. Sample size determination:

In statistics, it is critical to determine the right size of the sample to get accurate
results and predictions. In most cases, businesses have a large amount of data to process and
analyze and may study only a part of it in greater detail. Statisticians determine the correct
sample size by considering factors like cost, time, or convenience. There is no specific
formula for sample size determination. Researchers and statisticians design special data
collection and sampling methods as per the study or the population size. For a generic study,
using a table to create a sample size and analyze it can be helpful.

6. Variance:

77
A study with reference to HDB Financial Services Ltd. Mandya

Variance in statistics refers to the expected deviation between values in a specific

data set. Businesses use this to measure the average value and volatility of the market and the
stability of a specific investment return within a period. It's helpful in the mathematical sense
to analyze data, but to use the insights gathered from variance, you may have to take the
square root of the sample variance. It simply measures the variability of data from the
average.To calculate it, take the differences between each number in the data set and the
mean. Then square the difference in the number to make them positive. Finally, divide the
sum of the squares by the number of values.

The formula for variance is: σ² = ∑(x−xˉ)2 / (n−1) The symbol "σ²" illustrates
variance, while its square root, the standard deviation, is "σ." In this formula, "x" represents
the data point, "xˉ" is the mean value of all data points, "n" denotes the number of data points.

 BALANCE SHEET:

1.HDB Financial Services Ltd. Balance sheet of the year ended 31-03-2020.

Particulars 31-03-2020
Assets
Financial assets
Cash and cash equivalents 650000
Bank balances other than above 560000

78
A study with reference to HDB Financial Services Ltd. Mandya

Derivative financial instruments 210000

Trade receivables 135000
Loans 890000
Investments 345000
Other financial assets 408000
Non-financial assets
Current tax assets 950000
Deferred tax assets(net) 173000
Property, plant and equipment 233000
Capital work-in-progress
Other intangible assets 385000
Right of use assets 908000
Other non-financial assets 444000
Total assets 6291000
Liabilities and equity:
Financial liabilities
Derivative financial instruments 525000
Trade payables
Total outstanding dues of creditors other than micro enterprises and small enterprises 458000
Debt securities 503000
Borrowings (other than debt securities) 604000
Subordinated liabilities 673000
Other financial liabilities 819000
Non-financial liabilities
Current tax liabilities(net) 592000
Provisions 608000
Other non-financial liabilities 480000
Equity
Equity share capital 808000
Other equity 221000
Total liabilities and equity 6291000

2.HDB Financial Services Ltd. Balance sheet of the year ended 31-03-2021

Particulars 31-03-2021
Assets
Financial assets
Cash and cash equivalents 640000
Bank balances other than above 540000

79
A study with reference to HDB Financial Services Ltd. Mandya

Derivative financial instruments 190000

Trade receivables 124000
Loans 860000
Investments 338000
Other financial assets 390000
Non-financial assets
Current tax assets 410000
Deferred tax assets(net) 939000
Property, plant and equipment 162000
Capital work-in-progress
Other intangible assets 220000
Right of use assets 326000
Other non-financial assets 900000
Total assets 6039000
Liabilities and equity:
Financial liabilities
Derivative financial instruments 510000
Trade payables
Total outstanding dues of creditors other than micro enterprises and small enterprises 440000
Debt securities 438000
Borrowings (other than debt securities) 560000
Subordinated liabilities 680000
Other financial liabilities 863000
Non-financial liabilities
Current tax liabilities(net) 580000
Provisions 520000
Other non-financial liabilities 450000
Equity
Equity share capital 798000
Other equity 200000
Total liabilities and equity 6039000

3.HDB Financial Services Ltd. Balance sheet of the year ended 31-03-2022

Particulars 31-03-2022
Assets
Financial assets
Cash and cash equivalents 800000
Bank balances other than above 550000
Derivative financial instruments 910000
Trade receivables 126000
Loans 350000
Investments 702000

80
A study with reference to HDB Financial Services Ltd. Mandya

Other financial assets 225000

Non-financial assets
Current tax assets 480000
Deferred tax assets(net) 339000
Property, plant and equipment 405000
Capital work-in-progress
Other intangible assets 145000
Right of use assets 600000
Other non-financial assets 150000
Total assets 5782000
Liabilities and equity:
Financial liabilities
Derivative financial instruments 853000
Trade payables
Total outstanding dues of creditors other than micro enterprises and small enterprises 695000
Debt securities 496000
Borrowings (other than debt securities) 876000
Subordinated liabilities 618000
Other financial liabilities 345000
Non-financial liabilities
Current tax liabilities(net) 767000
Provisions 297000
Other non-financial liabilities 345000
Equity
Equity share capital 215000
Other equity 275000
Total liabilities and equity 5782000

4.HDB Financial Services Ltd. Balance sheet of the year ended 31-03-2023

Particulars 31-03-2023
Assets
Financial assets
Cash and cash equivalents 996000
Bank balances other than above 652000
Derivative financial instruments 405800
Trade receivables 218000
Loans 825000
Investments 678000
Other financial assets 568000
Non-financial assets

81
A study with reference to HDB Financial Services Ltd. Mandya

Current tax assets 758000

Deferred tax assets(net) 579000
Property, plant and equipment 804500
Capital work-in-progress
Other intangible assets 607500
Right of use assets 564000
Other non-financial assets 358000
Total assets 8013800
Liabilities and equity:
Financial liabilities
Derivative financial instruments 1368000
Trade payables
Total outstanding dues of creditors other than micro enterprises and small enterprises 999400
Debt securities 728000
Borrowings (other than debt securities) 564000
Subordinated liabilities 367000
Other financial liabilities 876000
Non-financial liabilities
Current tax liabilities(net) 798000
Provisions 643000
Other non-financial liabilities 535400
Equity
Equity share capital 667000
Other equity 468000
Total liabilities and equity 8013800

5.HDB Financial Services Ltd. Balance sheet of the year ended 31-03-2024

Particulars 31-03-2024
Assets
Financial assets
Cash and cash equivalents 1052000
Bank balances other than above 825000
Derivative financial instruments 486000
Trade receivables 762000
Loans 994000
Investments 1250000
Other financial assets 880000
Non-financial assets

82
A study with reference to HDB Financial Services Ltd. Mandya

Current tax assets 376000

Deferred tax assets(net) 572000
Property, plant and equipment 864000
Capital work-in-progress
Other intangible assets 468000
Right of use assets 765400
Other non-financial assets 268000
Total assets 9562400
Liabilities and equity:
Financial liabilities
Derivative financial instruments 1150000
Trade payables
Total outstanding dues of creditors other than micro enterprises and small enterprises 1025000
Debt securities 854000
Borrowings (other than debt securities) 1550000
Subordinated liabilities 694400
Other financial liabilities 463000
Non-financial liabilities
Current tax liabilities(net) 1158000
Provisions 689000
Other non-financial liabilities 769000
Equity
Equity share capital 561000
Other equity 649000
Total liabilities and equity 9562400

 PROFIT AND LOSS STATEMENT:

1.HDB Financial Services Ltd. Profit and loss statement for the year 2023 (in lacs)

Particulars 31-03-2023
Interest income 8927.78
Sale of service 2633.93
Other financial charges 756.41
Net gain on fair value changes 85.07

83
A study with reference to HDB Financial Services Ltd. Mandya

Net gain/(loss) on derecognition of financial instruments under amortised

cost category -0.31
Total revenue from operation 12402.88
finance cost 3511.92
Impairment on financial instruments 1330.4
Employee benefits expenses 4057.57
Depreciation, amortisation and impairment 111.84
Others expenses 763.75
Total expenses 9775.48
Profit/(loss) before tax 2627.4
Current tax 621.3
Deferred tax (credit) 46.75
Profit for the year 1959.35
Other comprehensive income
Remeasurement loss on defined benefit plan -5.48
Income tax relating to items that will not be reclassified to profit or loss 1.38
Movement in cash flow hedge reserve 19.59
Income tax relating to items that will be reclassified to profit or loss -4.93
Other comprehensive income for the year 10.56
Earning per equity share (for continuing operations) 1969.91

2.HDB Financial Services Ltd. Profit and loss statement for the year 2024 (in lacs)

Particulars 31-03-2024
Interest income 11,156.72
Sale of service 1,949.55
Other financial charges 953.11
Net gain on fair value changes 113.69
Net gain/(loss) on derecognition of financial instruments under amortised cost
category -1.95
Total revenue from operation 14,171.12
finance cost 4864.32
Impairment on financial instruments 1067.39

84
A study with reference to HDB Financial Services Ltd. Mandya

Employee benefits expenses 3850.75

Depreciation, amortisation and impairment 145.14
Others expenses 938.85
Total expenses 10866.45
Profit/(loss) before tax 3304.67
Current tax 770.67
Deferred tax (credit) 73.16
Profit for the year 2460.84
Other comprehensive income
Remeasurement loss on defined benefit plan -31.54
Income tax relating to items that will not be reclassified to profit or loss 7.94
Movement in cash flow hedge reserve -17.1
Income tax relating to items that will be reclassified to profit or loss 4.3
Other comprehensive income for the year -36.4
Earning per equity share (for continuing operations) 2424.44

 CASH FLOW STATEMENT:

1.HDB Financial Services Ltd. cash flow statement for the year ended 31-03-2024 (in
lacs)

Particulars 2024
Cash flow from operating activity
Profit/(loss) before tax 3304.67
Adjustments for
Interest income -11156.7
Interest expenses 4771.63
(profit)/loss on sale of asset -0.85
Realised net loss/(gain) on FVTPL investments -89.91
Unrealised gain on FVTPL investments -23.78

85
A study with reference to HDB Financial Services Ltd. Mandya

Discount on commercial paper 77.01

Provision for compensated absence and gratuity 29.87
Employee share-based payment expenses 55.24
Depreciation, amortisation and impairment 145.14
Impairment on financial instruments 1067.39
Operating cash flow before working capital changes -1820.31
Adjustments for working capital changes
(Increase)/decrease in loans -21406
(increase)/decrease in trade receivables -58.85
(Increase)/decrease in other financial assets and others 291.32
(Increase)/decrease in other financial assets and non-financial liabilities and
provisions -44.6
(Increase)/decrease in trade payables 217.16
Cash generated from/ (used in) operations before adjustments for interest
received and interest paid -22821.3
Interest paid -4110.5
Interest received 10946.14
Cash generated from/ (used in) operations -15985.6
Direct taxes (paid)/ net of refunds -750.42
Net cash flow generated from/ (used in) operating activities -16736
Cash flow from investing activity
Purchase of investments -52917.3
Sale of investments 50893.87
Purchase of fixed assets -123.35
Sale of fixed assets 1.18
Net cash generated (used in)/from investing activities -2145.56
Cash flow from financing activities
Debt securities issued 22167.71
Debt securities repaid -14490
Borrowings other than debt securities issued 29910.87
Borrowings other than debt securities repaid -20307.3
Subordinated debt issued 2337.07
Subordinated debt repaid -230
Process from issue of shares and security premium 71.45
repayment of lease liabilities -80.87
Dividend paid -245.38
Net cash generated (used in)/from financing activities 19133.55
Net (decrease)/ increase in cash and cash equivalents 251.95
Add: cash and cash equivalents as at the beginning of the year 395.9
Cash or cash equivalents as at the end of the year 647.85
Components of cash and cash equivalents
Balances with banks 606.1
Demand drafts on hand 6.3
Cash on hand 35.45
Total 647.85

86
A study with reference to HDB Financial Services Ltd. Mandya

2.Cash flow statement of HDB Financial Services Ltd from the year ended 31-03-
2023(in lacs)

Particulars 2023
Cash flow from operating activity
Profit/(loss) before tax 2627.4
Adjustments for
Interest income -8927.78
Interest expenses 3502.92
(profit)/loss on sale of asset -1.01
Realised net loss/(gain) on FVTPL investments -90.67
Unrealised gain on FVTPL investments 5.6
Discount on commercial paper 9
Provision for compensated absence and gratuity 6.59
Employee share based payment expenses 43.64
Depreciation, amortisation and impairment 111.84
Impairment on financial instruments 1330.4
Operating cash flow before working capital changes -1382.07
Adjustments for working capital changes
(Increase)/decrease in loans -10462.7
(increase)/decrease in trade receivables 76.06
(Increase)/decrease in other financial assets and others -0.19
(Increase)/decrease in other financial assets and non financial liabilities and
provisions 506.53
(Increase)/decrease in trade payables 44.93
Cash generated from/(used in) operations before adjustments for interest
received and interest paid -11217.4
Interest paid -3842.14
Interest received 8841.36
Cash generated from/(used in) operations -6218.2
Direct taxes (paid)/ net of refunds -632.41
Net cash flow generated from/(used in) operating activities -6850.61
Cash flow from investing activity
Purchase of investments -49267.7
Sale of investments 50350.8
Purchase of fixed assets -111.32
Sale of fixed assets 1.5
Net cash generated (used in)/from investing activities 973.32
Cash flow from financing activities
Debt securities issued 10099.18
Debt securities repaid -8210.6
Borrowings other than debt securities issued 17207.75
Borrowings other than debt securities repaid -12507.2
Subordinated debt issued
Subordinated debt repaid -600
Process from issue of shares and security premium 33.93

87
A study with reference to HDB Financial Services Ltd. Mandya

repayment of lease liabilities -76.81

Dividend paid -150.25
Net cash generated (used in)/from financing activities 5795.99
Net (decrease)/ increase in cash and cash equivalents -81.3
Add: cash and cash equivalents as at the beginning of the year 477.2
Cash or cash equivalents as at the end of the year 395.9
Components of cash and cash equivalents
Balances with banks 358.51
Demand drafts on hand 8.87
Cash on hand 28.52
Total 395.9

Here is a summary of the Cash Flow Statement for the year 2024:

Cash flow from operating activities:

 Profit/(loss) before tax:

The company reported a profit before tax of Rs.3304.67 lakhs in 2024,

up from Rs.2627.40 lakhs indicating an improvement in profitability.

Adjustments:

 Interest income:

Increased significantly from Rs.8927.78 lakhs in 2023 to Rs.11156.72

lakhs in 2024, reflecting higher earnings from interest-bearing assets.

 Interest expenses:
Increased from Rs.3502.92 lakhs in 2023 to Rs.4771.63 lakhs in 2024 it
indicating higher interest costs.

 (Profit)/loss on sale of asset:

A minor profit of Rs.0.85 lakhs in 2024 compared to Rs.1.01 lakhs in

2023

 Realised net loss /(gain) on FVTPL:

88
A study with reference to HDB Financial Services Ltd. Mandya

Slightly decreased from a gain of Rs.90.67 lakhs in 2023 to Rs.89.91 lakhs

in 2024.
 Unrealised gain on FVPTL investments:

Shifted from a loss of Rs.5.6 lakhs in 2023 to a gain of Rs.23.78 lakhs in

2024.

 Discount on commercial paper:

Increased from Rs.9 lakhs in 2023 to Rs.77.01 lakhs in 2024.

 Provision for compensated absence:

Increased from Rs.6.59 lakhs in 2023 to Rs.29.87 lakh in 2024.

 Employee share-based payment expenses:

Increased from Rs.43.64 lakhs in 2023 to Rs.55.24 lakhs in 2024.

 Depreciation, Amortisation and impairment:

Increased from Rs.111.84 lakhs in 2023 to Rs.145.14 lakhs in 2024.

 Impairment on financial instruments:

Decreased from Rs.1330.40 lakhs in 2023 to Rs.1067.39 lakhs in 2024

 Operating cash flow before working capital changes:

The operating cash flow before working capital changes showed a larger
outflow, increasing from Rs. - 1382.07 lakhs in 2023 to Rs. -1820.31 lakhs in 2024

Adjustments for working capital changes:

 (Increase)/Decrease in Loans:
The outflow increased significantly from Rs 10462.68 lakhs in 2023 to
Rs 21405.98 lakhs in 2024, indicating a higher amount of loans issued.
 (Increase)/Decrease in other financial assets and others:

Changed from a decrease of Rs 0.19 lakhs in 2023 to an increase of Rs

291.32 lakhs in 2024.

 Increase/(Decrease) in other financial and non-financial liabilities and provisions:

89
A study with reference to HDB Financial Services Ltd. Mandya

shifted from an increase of Rs 506.53 lakhs in 2023 to a decrease of Rs 44.6

lakhs in 2024
 Increase/(Decrease) in trade payables:
Increase from Rs 44.93 lakhs in 2023 to Rs. 217.16 lakhs in 2024
 Cash generated from/ (used in) operations before adjustments for interest
received and interest paid:

The cash outflow increased significantly from Rs -11217.42 lakhs in 2023 to

Rs 4110.50 lakhs in 2024

 Interest paid:
Increased from Rs.3842.14 lakhs in 2023 to Rs. 4110.50 lakhs in 2024
 Interest received:
Increased from Rs.8841.36 lakhs in 2023 to Rs. 10946.14 lakhs in 2024
 Cash generated from/ (used in) operations:
The cash outflow increased from Rs -6218.20 lakhs in 2023 to Rs -15985.62
lakhs in 2024
 Direct taxes (paid)/net of refunds:
Increased from Rs-632.41 lakhs in 2023 to Rs. -750.42 lakhs in 2024

Net cash flow generated from/ (used in) operating activities:

The net cash outflow increased from Rs -6850.61 lakhs in 2023 to Rs -

16736.04 lakhs in 2024, indicating a larger operational cash deficit.

 Purchase of investments:
Increased from Rs.49267.66 lakhs in 2023 to Rs. 52917.26 lakhs in 2024
 Sale of investments:
decreased slightly from Rs.50350.80 lakhs in 2023 to Rs. 50893.87 lakhs in
2024
 Purchase of fixed assets:
Increased slightly from Rs.111.32 lakhs in 2023 to Rs. 123.35 lakhs in 2024
 Sale of fixed assets:
Increased from Rs.1.5 lakhs in 2023 to Rs. 1.18 lakhs in 2024

90
A study with reference to HDB Financial Services Ltd. Mandya

Net cash generated(used)/from investing activities:

The net cash inflow decreased from Rs 973.32 lakhs in 2023 to a net outflow of
Rs 2145.56 lakhs in 2024.

 Debt securities issued:

Increased slightly from Rs.10099.18 lakhs in 2023 to Rs. 22167.71 lakhs in
2024

 Debt securities repaid:

Increased from Rs.8210.60 lakhs in 2023 to Rs.14490.01 lakhs in 2024
 Borrowing other than debt securities issued:
Increased from Rs.17207.75 lakhs in 2023 to Rs. 29910.87 lakhs in 2024
 Borrowing other than debt securities repaid:
Increased from Rs.12507.21 lakhs in 2023 to Rs. 20307.29 lakhs in 2024
 Subordinated debt issued:
A new issuance of Rs 2337.07 lakhs in 2024 with no comparable issuance in
2023
 Subordinated debt repaid:
Decreased from Rs.600 lakhs in 2023 to Rs. 230 lakhs in 2024

 Proceeds from issue of shares and security premium:

Increased from Rs.33.93 lakhs in 2023 to Rs. 71.45 lakhs in 2024
 Repayment of lease liabilities:
Increased slightly from Rs.76.81 lakhs in 2023 to Rs. 80.87 lakhs in 2024
 Dividend paid:
Increased from Rs.150.25 lakhs in 2023 to Rs. 245.38 lakhs in 2024

Net cash generated (used in)/from financing activities:

The net cash inflow increased significantly from Rs 5795.99 lakhs in 2023 to
Rs 19133.55 lakhs in 2024, reflecting higher financing activities. Net increase/ (decrease) in
cash and cash equivalents was Rs 251.95 lakhs in 2024, compared to a decrease of Rs 81.3

91
A study with reference to HDB Financial Services Ltd. Mandya

lakhs in 2023, indicating a positive cash position at the end of the year. Cash and cash
equivalents at the beginning and end of the year.

 Beginning balance:
Decreased from Rs.477.2 lakhs in 2023 to Rs. 395.9 lakhs in 2024
 Ending balance:
Increased from Rs.395.9 lakhs in 2023 to Rs. 647.85 lakhs in 2024, indicating
improved liquidity.
Components of cash and cash equivalents:

 Balances with banks:

Increased from Rs.358.51 lakhs in 2023 to Rs. 606.1 lakhs in 2024
 Demand drafts on hand:
Decreased from Rs.8.87 lakhs in 2023 to Rs. 6.3 lakhs in 2024
 Cash on hand:
Increased from Rs.28.52 lakhs in 2023 to Rs. 35.45 lakhs in 2024
 Total:
Increased from Rs.395.9 lakhs in 2023 to Rs. 647.85 lakhs in 2024, indicating
a stronger cash position at the end of the year.

Financial ratios of HDB Financial Services Ltd.

Particulars 2024
Commercial paper as a percentage of total public fund 1.55%
Commercial paper as a percentage of total liabilities 1.46%
Commercial paper as a percentage of total assets 1.24%
Other short-term liabilities as a percentage of total public funds 37.89%
Other short-term liabilities as a percentage of total liabilities 35.75%
Other short-term liabilities as a percentage of total assets 30.43%

92
A study with reference to HDB Financial Services Ltd. Mandya

Here is a summary of the financial and operational metrics for HDB

Financial Services Limited for the year 2024.

Commercial paper as a percentage of total public fund:

This indicates that 1.55% of HDBFS total public funds are financed through
commercial paper, suggesting a relatively low reliance on this short-term borrowing
instrument.

Commercial paper as a percentage of total liabilities:

Commercial paper constitutes 1.46% of the total liabilities. This low percentage
highlights that commercial paper is a minor component of the company’s overall liability
structure.

Commercial paper as a percentage of total assets:

With commercial paper accounting for 1.24% of total assets, the company has
limited its use of this short-term financing method, ensuring a more balanced asset structure.

Other short-term liabilities as a percentage of total public fund:

Other short-term liabilities make up 37.89% of the total public funds. This
significant percentage indicates a considerable reliance on short-term liabilities, which may
impact liquidity management.

Other short-term liabilities as a percentage of total liabilities:

These liabilities constitute 35.74% of the company’s total liabilities,

suggesting that a significant portion of the company’s liabilities are due in the short-term,
necessitating robust short-term liquidity management.

Other short-term liabilities as a percentage of total assets:

With 30.43% of total assets financed by other short-term liabilities, HDB

Financial Services shows a notable reliance on short-term funding sources. This could pose
liquidity risks if not managed effectively.

Dividend history of HDB Financial Services Ltd.

93
A study with reference to HDB Financial Services Ltd. Mandya

Particulars 2024 2023

Dividend per share (final dividend) 1.00 1.10
Dividend per share (interim dividend) 2.00 0.90

Dividend per share:

The specific final dividend per share figure for 2024 and 2023 is Rs.1.00 and 1.10
and the interim dividend paid by the company during the year 2024 and 2023 is Rs. 2.00 and
Rs. 0.90.

Dividend per share represents the portion of a company’s earning that is

distributed to share holders in the form of dividends. A higher dividend per share may
indicate that the company is sharing more of its profits with share-holders.

CHAPTER: 5

SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUTION

FINDINGS:

 The bank focuses on understanding the needs of customers and offering them superior
products and services.
 They focus on to create quality of customers and quantity of customer.
 Current ratio indicates that banks liquidity and its repayment of debts are sound
during the period.

94
A study with reference to HDB Financial Services Ltd. Mandya

 Debt equity ration explains that creditors are safe during the study period.
 As mentioned earlier, the second wave of COVID-19 disrupted business activities for
close to two third of the quarter, leading to a decrease in the efficiency in collecting
efforts and a high level of provisions.
 The Balance sheet size as on March 2024 was Rs. 9562400 lakhs as against Rs.
8013800 as on March 2023, a growth of 16.3%
 There has been a consistent decline in fixed assets in 2023 and 2024, 804500 and
864000 respectively.
 The bank’s net revenue (net interest income plus other income) increased from Rs.
8927.78 lakhs for the year ended March 2023 to Rs. 11156.71 lakhs for the year ended
March 2024.
 The other comprehensive income for the year 2023 is Rs.10.56 lakhs decreased from
the year of 2024 is -36.4 lakhs.
 The Earning Per Equity Share for the year of 2023 is Rs. 1969.91 lakhs and the year
of 2024 is Rs.2424.44 is increased.
 Profit for the year 2023 is Rs.1959.35 lakhs and the year of 2024 is 2460.84 it’s a
growth.
 HDB Financial Services shows a notable reliance on short-term funding sources. This
could pose liquidity risks if not managed effectively.

SUGGESTIONS:

 There are market leader but their nearest competitor is very close with respect to
market share so it is necessary to utilize their resources in best way
 Better inventory management is required because it is consistently decreasing which
is an obstacle be in competition.

95
A study with reference to HDB Financial Services Ltd. Mandya

 Dividend per share represents the portion of a company’s earning that is distributed to
share-holders in the form of dividends. A higher dividend per share may indicate that
the company is sharing more of its profits with share-holders.
 A significant portion of the company’s liabilities are due in the short-term,
necessitating robust short-term liquidity management.
 HDBFS total public funds are financed through commercial paper, suggesting a
relatively low reliance on this short-term borrowing instrument.

Conclusion:

HDBFS is a largest private sector bank in India. The research was on financial
performance of HDBFS. The data has been collected from annual reports of the bank and the
website. The research presented sought to know the financial viability and financial health of
HDBFS.

96
A study with reference to HDB Financial Services Ltd. Mandya

In th e study of Financial Performance of HDB Financial Services Ltd., it

is clear that the company’s financial performance is satisfactory. The company has stable
growth and it shows a greater efficiency in all the areas it works.

Wide geographicalpenetration impressive growth in deposit mobilisation as well

as in credit expansion. However, there have been several adverse factors such as high reserve
requirements deterioration in quality of loan assets, priority and weaker section advances,
high fixed and operating costs, organizational weakness, lack of internal control, defecting
accounting policies, under capitalisation, which damaged productivity, profitability and
efficiency of banking sector.

If the company utilizes its working capital then the company can go heights
which it wanted to achieve. The comparative income statement shows increase in the
current year of net profit and it depict the companies
current profit position. To improve the efficiency the company will strive for better performa
nce and increase the market share the company.

The suggestions provided through the study will help the company to improve the
operational performance efficiently. The suggestions provided through the study will help the
company to improve the operational performance efficiently.

 The bank not utilizing the capital funds in fixed assets.

 The bank is investing the huge funds in current assets which leads to idle funds.
 The long term solvency position of the bank is not satisfactory.

BIBLIOGRAPHY:

 Financial management - Amit Kumar Arora.

 Accounting factors affecting the capital structure in the economy.

97
A study with reference to HDB Financial Services Ltd. Mandya

 Audit process, private information and insider trading of HDBFS.

 Bradshaw MT ‘How do analysts use their earnings forecasts in generating stock
recommendations?’ in Accounting review – Menasha.
 Financial management – I M Pandey.
 www.hdbfs.com-HDB financial services ltd annual report
 Wwipl.com HDB financial services annual report 2023-24
 www.hdfcbank.com
 Financial analysis of HDB financial services
 Financial statement of HDFC bank annual report

Annexure:

Questionnaire:

a) The bank performs the service right the first time?

98
A study with reference to HDB Financial Services Ltd. Mandya

Yes No
b) The bank shows the sincere interest to solving the customer
problems?
Yes No

c) The bank insists on error free records?

Yes No

d) The bank employees tells exactly when the services will be

performed?
Yes No

e) The employees of the bank are always willing to help?

Yes No

f) The empoyees gives the prompt service?

Yes No

g) The customers pay the loan within the due date?

Yes No

h) The bank operating hours convenient to all the customers?

Yes No

i) The bank has provides a best interest?

Yes No

j) The employees collect proper documents to the customer for

sanction a loan?

99
A study with reference to HDB Financial Services Ltd. Mandya

Yes No

k) The recovery agent faces any problems?

Yes No

l) The customer and the recovery agent relationship is trustworthy?

Yes No

1. Name of the Student : Prabhu Murthy M

2. Roll No. : 08P212013100084
3. Specialization : MBA in Finance
4. Study Centre : Mukthagangotri, KSOU, Mysuru.
5. Title of the Project :Financial Statement Analysis-A study

100
A study with reference to HDB Financial Services Ltd. Mandya

with reference to HDB financial services

6. Internal guide : Dr Somashekhar I C

7. Designation : Associate Professor Vidyavardhaka college
8. External guide : Sharath Babu C M
9. Designation : Assistant Manager

I would like to thank everyone to encouraged me and contributed

their ideas and perspectives its greatly enriched the project.

Signature of the student

101