Incorporated as a public limited company to take over the assets and liabilities of Motor Finance & Guarantee (an existing partnership concern). Madras Motor Finance and Guarantee Company acquired, in 1981, a subsidiary company, South India Investment and Financial Consultancy, engaged in investment activities since 1980. This company was taken over by the P Rajarathinam group a year ago. It now engages in hire purchase, lease finance and investment activites and has been classified as a hire purchase finance company by the Reserve Bank of India, authorising it to accept deposits from the public. In 1981-82, it opened a branch in Karaikudi, Tamilnadu. Another came up in Madurai in 1983-84. Encouraged by the good performance, it expanded its network from 15 to 52 branches by 1991. This Madras-based finance company also provides banking services like fixed deposits and small saving schemes. Of late, it has been finding it difficult to repay its fixed deposit holders. The company went public in Jun.'94 to part-finance the acquisition of assets for leasing and to meet the expenses of the issue.