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A review of literature is the pillar of research and linked to the research area and the right research methodology. It is vital for researchers to have a solid structure of reference in mind before starting their research. Most of all a concrete framework represents the consistency of the theories selected.
The core of this research work is an analysis of Non –Banking Financial Companies in Kerala.
Shweta singh, Anuj Pratap Singh and Sharad Tiwari (2016) in their research paper tried to elicit an overview on the regulations of NBFCs in India. The NBFCs play a noteworthy role in meeting financial requirements of the Micro, small, medium scale industries and growth of Indian economy indirectly. NBFCs are also providing investment security for the investors. The paper primarily centers on the role of NBFCs in India, its importance, the funding sources & its prospects in the future. The paper commented on the structure of the Non-Banking Finance Companies in India and the status enjoyed by them in the Indian financial system. The paper focused on the significance of the NBFCs in meeting the financial needs of the economy not covered by the formal sector .The authors are of the opinion that the researches on NBFCs should be progressive and evaluation of the performance of NBFCs should be undertaken. It is suggested that the NBFCs should shrink the rate of interest so that they can support small initiatives to meet diverse capital requirements.
Sornaganesh V and Maria Nevis Soris N (2017) made an attempt to understand the impact of financial sector reforms and financial crisis on the NBFCs. The performances of NBFCs were evaluated during the post financial sector reforms along with the impact of financial crisis on NBFCs. The study was steered to appraise the working of Hire Purchase and Leasing companies with reference to Mahindra and Mahindra Financial Services and Shriram Transport Finance Company. Comparison was also done on the deposit pattern of NBFCs with Commercial banks. The research work found out that the main source of funds; fixed deposits constitute the most important element of total borrowings .CAMEL measure was used to evaluate the overall financial, managerial, and operational and compliance performance of NBFCs.
Rosalin Mishra (2016) in tried to scrutinize the progression, performance and pattern of resource deployment and evaluate the working of NBFCs in Orissa. The study observed that Non-banking finance companies experienced a satisfactory trend in the growth during early nineties. Some of the NBFCs functioning in Orissa were not able to balance their assets and liabilities and could hardly make correct use of resources and these were not able to sustain due to unwarrantable expenditure, mismanagement etc. It was observed that NBFCs which functioned as per the regulations performed well and were profitable. Study concluded that in Orissa, business of NBFCs was very poor and the reasons for their failure include factors like faulty accounting system, improper management, unsound investment policy etc.
T Jayaprakasam (2006) in his study analyzed the performance of NBFCs and customers satisfaction towards the service offered by those agencies. The scope of the study was limited to the NBFCs functioning in Tamil Nadu and the period of study was from 1999 – 2004. The research was conducted on the basis of two sample NBFCs namely Sundaram Finance Limited and Lakshmi General Finance Limited operating in Tamil Nadu. An attempt was also made to reveal the perceptions of customers about functioning of NBFCs in the state. The major finding of the study was that the respondents were not satisfied with the safety of investment in the sample companies.
According to the opinion of Vaibhav, NBFC sector is extensively controlled by the government, NBFC industry still face challenges in the year to come. Competition amongst NBFCS is high and the product is like two peas in a pod and can be easily replaced by the substitute’s products. The structure of the industry felt a key change emphasizing the ambiguity of supervisory changes. The study reveals that there is a link among the corporate sector and the NBFC sector according to the investor segment. The NBFCs have noteworthy power in niche areas and adore fabulous customer relations in specific segments.

Amita S kantawala in her study made an attempt to compare the financial performance of different categories of NBFCs. The work also tried to examine the groups that are having same ratios. The study was conducted on the basis of data collected from RBI Bulletin for the period 1985-86 to 1994-95. The study was carried out on four categories of NBFCs namely, Hire purchase, Loan finance, lease companies and companies trading in shares and investment holdings. For the purpose of the study, she used liquidity ratios, profitability ratios and leverage ratios. The analysis of the collected data revealed that the performance of the select NBFCs were significantly different. The profitability ratios, liquidity ratios and leverage ratios are significantly different for various groups of NBFCs.
Another attempt was made by Saravana to study the management of working capital in NBFCs. The study was conducted to examine the liquidity position of NBFCs and to identify the sources of working capital. The NBFCS were classified into medium sized and large sized on the basis of paid up capital. For the purpose of the study; data was collected from the annual reports of the companies for ten years from 1986 to 1996. Correlation, multiple linear regression, analysis of variance etc. were used for analyzing the data. The analysis of the collected data revealed that the select companies were having high proprietary ratio which indicates that the company is having a strong financial base. The companies have also efficiently utilized the debt for their working capital needs.

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