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PROJECT REPORT

MBA in marketing (Chandigarh University)

Studocu is not sponsored or endorsed by any college or university

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ONLINE SUMMER PROJECT REPORT

COMPANY ANALYSIS
OF
Power Finance Corporation Ltd

SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIRMENTS FOR THE MASTER OF
BUSINESS ADMINISTRATION (MBA) OF
CHANDIGARH UNIVERSITY, GHARUAN,
MOHALI

SUBMITTED TO: SUBMITTED BY:

Name: Dr.Shalini Aggarwal STUDENT NAME: Rohit Garg
Designation: Associate Professor UID: 19MBA 1339
Chandigarh University MBA-Batch 2019-21
Location: Gharuan, Mohali

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CERTIFICATE

I have the pleasure in certifying that ROHIT GARG is a bonafide student of

2nd semester of the Master’s Degree in Business Administration (Batch 2019-
21), of Chandigarh University, UID-19MBA1339.

He has completed his project work entitled ““Company analysis- “POWER

FINANCE CORPORATION LIMITED ” under my guidance.

I certify that this is his original efforts & has not been copied from any other
source. This project has also not been submitted in any other institute/university
for the purpose of award of any Degree.

Signature:
Name of the Guide: Dr. Shalini Aggarwal
Designation: Associate Professor
Date: 01/JUNE/2020

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ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. I
would like to extend my sincere thanks to all of them. I am highly indebted to
Dr. Shalini Aggarwal for their guidance and constant supervision as well as for
providing necessary information regarding the project & also for their support
in completing the project.
I would like to express my gratitude towards my parents & member of
Chandigarh University for their kind co-operation and encouragement which
help me in completion of this project.

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TABLE OF CONTENT

CHAPTER 1: Introduction 5-7

CHAPTER2: Objective of Study 8-9
CHAPTER 3: Analysis of Market Sector 10-19
CHAPTER 4: Analysis of Company 20-27
CHAPTER 5: Functional Profile Analysis 28-41
CHAPTER 6: Functional Elective Area Analysis 42-59
CHAPTER 7: Learning Outcomes & Limitations 60-61
CAHPTER 8: Conclusion 62

Bibliography 63

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CHAPTER- 1
INTRODUCTION

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INTRODUCTION
Power Finance Corporation Ltd is an Indian financial institution. Established in 1986, it is the
financial back bone of Indian Power Sector. PFC's Net worth as on 30 September 2018 is INR 383
billion. PFC is the 8th highest profit making CPSE as per the Department of Public Enterprises
Survey for FY 2017-18. PFC is India's largest NBFC and also India's largest Infrastructure Finance
Company.

Initially wholly owned by the Government of India, the company issued an Initial Public
Offering in January, 2007. The issue was oversubscribed by over 76 times, which is one of
the largest for an IPO of any Indian Company. PFC is listed on the Bombay Stock Exchange
(BSE) and the National Stock Exchange (NSE). It is also an ISO 9001:2000 certified
company and enjoys the status of Navratna Company in India. On 6 December 2018, the
Government of India approved PFC's takeover of REC. The acquisition transaction was
completed on 28 March 2019 with PFC paying almost Rs. 14,500 Cr to the Govt. of India for
the 52.63% stake.
Power Finance Corporation was dedicated to power sector financing and committed to the
integrated development of the power and associated sectors. The corporation was notified as
a public financial institution in 1990 under the Companies Act, 1956.
The company was conferred with the status of Navratna PSU by Government of India on
22nd June, 2007. Under the Navratna status, the government has delegated enhanced powers
to CPSEs having comparative advantage and the potential to become global players. The
corporation is registered as a Non-Banking Financial Company with the RBI.
PFC is providing large range of financial products and services like project term loan, lease
financing, direct discounting of bills, short term loan, consultancy services etc for various
power projects in generation, transmission, distribution sector as well as for renovation &
modernisation of existing power projects.

The Ministry of Power, Central Electricity Authority and PFC are working together to
facilitate development of Ultra Mega Power Projects with the capacity of about 4000 MW
each under Tariff based competitive bidding route. Being large in size, these projects will
meet the power needs of number of states through transmission of power on regional and
national grids.
The company clients are State Electricity Boards, State Power Utilities, State
Electricity/Power Departments, Other State Departments (like Irrigation Department)
engaged in the development of power projects, Central Power Utilities, Joint Sector Power
Utilities, Equipment Manufacturers and Private Sector Power Utilities
The registered office of the company is located in New Delhi, whereas regional offices are in
Mumbai and Chennai.
Headquarters: New Delhi

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Owner: Government of India

Revenue: 402 crores USD (2017–2018)
Number of employees: 500 approx.
Total assets: 4,332 crores USD (Apr'18)
Subsidiaries: REC, PFC Consulting Limited

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CHAPTER- 2

OBJECTIVES OF THE STUDY

OBJECTIVE OF THE STUDY

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• “To analyse the Financial sector in terms of Business, key players and markets.”

• “To analyse the Power finance Corporation Limited company in terms of present business,

competition position and future growth.”

• “To find out job opportunities available within the company and do their analysis.”

• “To do in depth analysis of two sectors financial and marketing of the company

CHAPTER- 3
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FINANCIAL SECTOR ANALYSIS

OF POWER FINANCE
CORPORATION

LIMITED

FINANCIAL SERVICES SECTOR

The financial sector is a section of the economy made up of firms and institutions that
provide financial services to commercial and retail customers. This sector comprises a broad
range of industries including banks, investment companies, insurance companies, and real
estate firms.

A large portion of this sector generates revenue from mortgages and loans, which gain value
as interest rates drop. The health of the economy depends, in large part, to the strength of
its financial sector. The stronger it is, the healthier the economy. A weak financial sector
typically means the economy is weakening.

Understanding the Financial Sector

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Many people equate the financial sector with Wall Street and the exchanges that operate on
it. But there's much more to it than that. The financial sector is one of the most important
parts of many developed economies. It is made up of brokers, financial institutions, and
money markets—all of which provide the services needed to help keep Main Street
functioning every day.

In order for an economy to remain stable, it needs to have a healthy financial sector. This
sector advances loans for businesses so they can expand, grants mortgages to homeowners,
and issues insurance policies to protect people, companies, and their assets. It also helps
build up savings for retirement and employs millions of people.

The financial sector generates a good portion of its revenue from loans and mortgages.
These gain value in an environment where interest rates drop. When rates are low, the
economic conditions open up the doors for more capital projects and investment. When this
happens, the financial sector benefits, meaning more economic growth

India has a diversified financial sector undergoing rapid expansion, both in terms of strong
growth of existing financial services firms and new entities entering the market. The sector
comprises commercial banks, insurance companies, non-banking financial companies, co-
operatives, pension funds, mutual funds and other smaller financial entities. The banking
regulator has allowed new entities such as payments banks to be created recently thereby
adding to the types of entities operating in the sector. However, the financial sector in India
is predominantly a banking sector with commercial banks accounting for more than 64 per
cent of the total assets held by the financial system.

The Government of India has introduced several reforms to liberalise, regulate and enhance
this industry. The Government and Reserve Bank of India (RBI) have taken various measures
to facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These
measures include launching Credit Guarantee Fund Scheme for Micro and Small Enterprises,
issuing guideline to banks regarding collateral requirements and setting up a Micro Units
Development and Refinance Agency (MUDRA). With a combined push by both government
and private sector, India is undoubtedly one of the world's most vibrant capital markets. In
2017, a new portal named 'Udyami Mitra' has been launched by the Small Industries

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Development Bank of India (SIDBI) with the aim of improving credit availability to Micro,
Small and Medium Enterprises' (MSMEs) in the country. India has scored a perfect 10 in
protecting shareholders' rights on the back of reforms implemented by Securities and
Exchange Board of India (SEBI).

The country’s financial services sector consists of the capital markets, insurance sector and
non-banking financial companies (NBFCs). India’s gross national savings (GDS) as a
percentage of Gross Domestic Product (GDP) stood at 30.50 per cent in 2019. The total
amount of Initial Public Offerings increased to Rs 84,357 crore (US$ 13,089 million) by the
end of FY18. In financial year 2019, total funds raised stood at Rs 19,900 crore (US$ 2.85
billion). The number of Ultra High Net Worth Individual (UHNWI) is estimated to increase to
10,354 in 2024 from 5,986 in 2019.

India has scored a perfect 10 in protecting shareholders' rights on the back of reforms
implemented by Securities and Exchange Board of India (SEBI) in World Bank's Ease of Doing
Business 2020 report.

The asset management industry in India is among the fastest growing in the world. In March
2019, corporate investors Assets Under Management AUM stood at Rs 9,54,627.51 crore
(US$ 136.59 billion), while HNWIs and retail investors reached Rs 7,51,666.95 crore (US$
107.55 billion) and Rs 6,29,848.68 crore (US$ 90.12 billion), respectively. In the Asia-Pacific,
India is among the top five countries in terms of HNWIs. The value of alternative investment
funds rose from Rs 13,776 crore in June 2016 to Rs 74,817 crore (US$ 10.70 billion) in June
2019.

The MF industry’s Assets Under Management (AUM) has grown from Rs 10.96 trillion (US$
156.82 billion) in October 2014 to Rs 28.18 trillion (US$ 403.32 billion) in January 2020. In
FY19, equity mutual funds have registered a record net inflow of Rs 990.87 billion (US$ 14.18
billion). The equity mutual funds registered a net inflow of Rs 4,499 crore (US$ 643.73
billion) in December 2019.

Total equity funding's of microfinance sector grew at the rate of 39.88 to Rs 9,631 crore (Rs
4.49 billion) in 2017-18 from Rs 6,885 crore (US$ 1.03 billion) in 2016-17. The public deposit
of NBFCs increased from Rs 40,955.54 crore (US$ 5.86 billion) in FY09 to Rs 31,905 crore

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(US$ 4.95 billion) in FY18, registering a compound annual growth rate (CAGR) of 36.86 per
cent. The equity mutual funds registered a net inflow of Rs 6,489 crore in September 2019.

In November 2018, Bombay Stock Exchange (BSE) has enabled offering live status of
applications filed by listed companies on its online portal and introduced weekly futures and
options contracts on Sensex 50 index from October 26, 2018. The Government of India is
planning to launch a global exchange traded fund (ETF) in FY20 to raise long term
investments from overseas pension funds.

The Government of India has taken various steps to deepen the reforms in the capital
markets, including simplification of the Initial Public Offer (IPO) process which allows
qualified foreign investors (QFIs) to access the Indian bond markets. In 2018, Rs 30,959 crore
(US$ 4.43 billion) were raised from initial public offerings (IPOs) whereas Rs 10,300 crore
(US$ 1.47 billion) have been raised in H1 2019.

As per Union Budget 2019-20, 100 per cent foreign direct investment (FDI) will be permitted
for insurance intermediaries. The insurance sector could be opened to 74 per cent FDI from
49 per cent. Government has approved 100 per cent FDI for insurance intermediaries.

EVOLUTION OF INDIAN FINANCIAL SYSTEM

Economic development of the nation is completely depending on its financial structure. Both
in long run and short run, the financial system and its efficiency dictates the success of the
nation in terms of economic growth. The larger, the proportion of financial assets to real
assets, the greater the scope of economic growth1. Investments which are considered as the
core of financial structure are apre-condition of economic growth. This apart, to sustain
growth, continued

investment in the growth process is essential. As finance is an important input in the growth
process, it has a crucial role to play in the development off economy. The increasing rate of
saving is correlated with the increase in the proportion of savings held in the form of

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financial assets relative to tangible assets. The word "system", in the term "financial system",
implies a set of complex and closely connected or interlined institutions, agents, practices,

markets, transactions, claims, and liabilities in the economy2. The financial system is
concerned about money, credit and finance-the three terms are intimately related yet are
somewhat different from each other. Indian financial system consists of financial market,
financial instruments and financial intermediation. In simple terms, financial system is the
set of inter-related activities/services working together to achieve some predetermined
purpose or goal3. It includes different markets, the institutions, instruments, services and

mechanisms which include the generation of savings, investment capital formation and
growth. Van Horne4 defined the financial system as the purpose of financial markets to
allocate savings efficiently in an economy to ultimate users either for investment in real
assets or for consumption. Christy has opined that the objective of the financial system is to
“supply funds to various sectors to activities of the

economy in ways that promote the fullest possible utilization of resources without the
destabilizing consequence of price level changes or unnecessary interference

with individual desires. According to Robinson, the primary function of the

system is “to provide a link between savings and investment for the creation of new wealth
and to permit portfolio adjustment in the composition of the existing

wealth.

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Financial system provides services that are essential in a modern economy. The use of a stable,
widely accepted medium of exchange reduces the costs of transactions. It facilitates trade and
therefore, specialization in production. Financial assets with attractive yield, liquidity and risk
characteristics encourage savings in finical form. By evaluating alternative investments and
monitoring the activities of borrowers, financial intermediaries increase the efficiency of resource
use. Access to variety of financial instruments enables an economic agent to pool, price and
exchange risks in the markets. Trade, the efficient use of resources, saving and risk taking are the
cornerstones of a growing economy. In fact, the country could make this feasible with the active
support of the financial system. Seekers of Funds (Mainly business firms and government) Suppliers
of funds (Mainly households) 41 The financial system5 has been identified as the most catalysing
agent for growth of the economy, making it one of the key inputs of development.

Investments/Developments

 In 2019, FPI investments in Indian equities touched a five-year high of Rs 101,122

crore (US$ 14.47 billion).
 Total Merger and Acquisition (M&A) worth US$ 25.162 billion was recorded in first
ten months of 2019.
 Total value of Private Equity (PE)/Venture Capital (VC) investments grew 44 per cent
over past three years in value terms to reach US$ 48 billion in 2019.
 Mutual Funds asset base stood at Rs 27,22,937 crore (US$ 389.60 billion) at end of
February 2020.
 In November 2019, the government will invest Rs 10,000 crore (US$ 1.43 billion) in
the Rs 25,000 crore (US$ 3.58 billion) alternative investment fund (AIF).
 In October 2019, ICICI Lombard General Insurance Company acquired Unbox
Technologies for an aggregate cash consideration of Rs 225 crore (US$ 32.19
million).
 In 2018, Rs 30,959 crore (US$ 4.43 billion) were raised from initial public offerings
(IPOs) whereas in financial year 2019, total funds raised stood at Rs 19,900 crore
(US$ 2.85 billion).
 The equity mutual funds registered a net inflow of Rs 6,489 crore in September 2019.
 There were 9,659 non-banking financial companies (NBFCs) registered with the
Reserve Bank as on March 31, 2019.

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 In FY19, over 3,133 core digital transactions were registered and reached 1,527 crores
in FY20 (till September 2019)

The growth of the financial sector in India at present is nearly 8.5 per cent per year. The
Government of India has helped in this development, introducing reforms to liberalise,
regulate and enhance the country's financial services. Today, India is recognised as one of
the world's most vibrant capital markets.

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REPORT OF FINANCIAL SECTOR

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Government Initiatives

 In November 2019, government allocated Rs 10,000 crore to set up AIFs for revival
of stalled housing projects.
 Under the Interest Subvention Scheme for MSMEs, Rs 350 crore (US$ 50.07 million)
has been allocated under Union Budget 2019-20 for 2 per cent interest subvention for
all GST registered MSMEs, on fresh or incremental loans.
 In December 2018, Securities and Exchange Board of India (SEBI) proposed direct
overseas listing of Indian companies and other regulatory changes.
 Bombay Stock Exchange (BSE) introduced weekly futures and options contracts on
Sensex 50 index from October 26, 2018.
 In September 2018, SEBI asked for recommendations to strengthen rules which will
enhance the overall governance standards for issuers, intermediaries or infrastructure
providers in the financial market.
 The Government of India launched India Post Payments Bank (IPPB), to provide
every district with one branch which will help increase rural penetration. As of August
2018, two branches out of 650 branches are already operational.

Future Goals of financial Services Sector

 India is expected to be fourth largest private wealth market globally by 2028.

 India is today one of the most vibrant global economies, on the back of robust
banking and insurance sectors. The relaxation of foreign investment rules has received
a positive response from the insurance sector, with many companies announcing plans
to increase their stakes in joint ventures with Indian companies. Over the coming
quarters there could be a series of joint venture deals between global insurance giants
and local players.
 The Association of Mutual Funds in India (AMFI) is targeting nearly five-fold growth
in assets under management (AUM) to Rs 95 lakh crore (US$ 1.47 trillion) and a
more than three times growth in investor accounts to 130 million by 2025.

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 India's mobile wallet industry is estimated to grow at a Compound Annual Growth

Rate (CAGR) of 150 per cent to reach US$ 4.4 billion by 2022 while mobile wallet
transactions to touch Rs 32 trillion (USD $ 492.6 billion) by 2022.

SWOT ANALYSIS

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CHAPTER- 4
COMPANY ANALYSIS OF
POWER FINANCE
CORPORATION
LIMITED

Organization Structure

The Corporation is headed by the Chairman and Managing Director; who at present is Rajeev
Sharma. The company has three wings, each headed by a Functional Director namely,
Commercial Division, Projects Division and Finance & Financial Operations division. The
Commercial Division looks after the credit appraisal and categorization of borrower entities,

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power sector reforms, review & analysis. The Projects Division controls the operation in
various states and project appraisal. Finance s Division looks after the Fund Mobilization and
Disbursement. PFC is a lean organization. The number of employees as on 31 March 2019
were around 500. Since its inception, PFC has been providing financial assistance to power
projects across India including generation, transmission, distribution and RM&U projects.
Recently, it has forayed into financing of other infrastructure projects which have backward
linkages to the power sector like coal mine development, fuel transportation, oil & gas
pipelines etc. The borrower profile includes State Electricity Boards, State sector power
utilities, Central sector power utilities and Private sector companies. PFC is also the nodal
agency for the implementation of the ambitious Ultra Mega Power Plants (UMPPs) and the
R-APDRP programme of Govt. of India. The company also has the mechanism of rating
different state Power Utilities on its performance.

Vision and Mission

"To be the leading institutional partner for the power and allied infrastructure sectors in India
and overseas across the value chain.

"PFC would be the most preferred Financial Institution; providing affordable and competitive
products and services with efficient and internationally integrated sourcing and servicing,
partnering the reforms in the Indian Power Sector and enhancing value to its stake holders; by
promoting efficient investments in the power and allied sectors in India and abroad. Company
will achieve this being a dynamic, flexible, forward looking, trustworthy, socially responsible
organization, sensitive to our stakeholders' interests, profitable and sustainable at all times,
with transparency and integrity in operations."

Operations

Since its inception, PFC has been providing financial assistance to power projects across
India including generation, transmission, distribution and RM&U projects. Recently, it has
forayed into financing of other infrastructure projects which have backward linkages to the
power sector like coal mine development, fuel transportation, oil & gas pipelines etc. The
borrower profile includes State Electricity Boards, State sector power utilities, Central sector
power utilities and Private sector companies. PFC is also the nodal agency for the
implementation of the ambitious Ultra Mega Power Plants (UMPPs) and the R-

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APDRP programme[6][7] of Govt. of India. The company also has the mechanism of rating
different state Power Utilities on its performance.

Subsidiary and Associate Companies

PFC presently has ten subsidiary companies. PFC Consulting Ltd. (PFCCL) is a wholly
owned subsidiary handling fee-based service. The six other companies namely Orissa
Integrated Power Limited, Coastal Karnataka Power Limited, Coastal Tamil Nadu Power
Limited, Coastal Maharashtra Power Limited, Jharkhand Integrated Power Limited and
Akaltara Power Limited, are SPVs (Shell Companies) created for implementing the flagship
Ultra Mega Power Projects. After purchase of the entire holding of Govt of India in Rural
Electrification Corporation Limited (REC) in FY 2018-19, REC has now become a subsidiary
of PFC.

PFC is also one of the promoters in Energy Efficiency Services Limited (EESL), with NTPC,
PowerGrid and REC being the other promoters. EESL is currently implementing of world's
largest energy efficiency portfolio and has been instrumental in energy savings of more than
50 billion kWh/year and estimated GHG reduction of more than 40 million tonne CO2/year.

Awards & recognitions

1 MOU Excellence Award 2009-10 January 2012

2 KPMG-Infrastructure Today Award 2011 December 2011

3 Dainik Bhasker India Pride PSU Award 2011 October 2011

4 SCOPE Commendation Certificate 2009-10 April 2011

5 Global HR Excellence Awards 2011 February 2011

6 KPMG-Infrastructure Today Award 2008 December 2008

7 India Power Award 2008 November 2008

8 Golden Peacock Award 2007 September 2007

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9 Navratna Company June 2007

COMPANY VALUATION

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COMPANY SHARE HOLDERS

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POWER FINANCE CORPORATION COMPETITOR ANALYSIS

Threats, Risks & Concerns

CHAPTER- 5

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FUNCTIONAL (JOB) PROFILES

ANALYSIS OF POWER FINANCE
CORPORATION LIMITED

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Commercial Director
Commercial Directors are usually responsible for planning, developing and implementing
commercial strategies based on company goals and objectives with the main goal to support
and accelerate growth.

Project Director

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A project director is a project management role in which an individual strategically oversees,

monitors and manages an IT project from an executive level. As the most responsible
authority over a project, this individual is charged with managing IT team members and
allocated resources

Finance Director
Finance directors are members of a senior executive team with responsibility for their
company's financial health. They combine operational and strategic roles, manage accounting
and financial control functions, and establish a financial strategy for the profitable long-term
growth of the business

DIFFERENT FUNTIONAL JOB PROFILES WORK UNDER THE DIRECTORS OF

COMPANY

ACCOUNTS MANAGER

The Account Manager will be responsible for the following up on missing documentation,

scheduling of site surveys and installs, calendar and schedule management, system turn on,

exceptional customer service and such other responsibilities as Company may request from

time to time.

JOB DESCRIPTION:

RESPONSIBILITIES:

 Build and maintain strong, long-lasting client relationships

 Negotiate contracts and close agreements to maximize profits

 Develop trusted advisor relationships with key accounts, customer stakeholders and

executive sponsors

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 Clearly communicate the progress of monthly/quarterly initiatives to internal and

external stakeholders

 Forecast and track key account metrics (e.g. quarterly sales results and annual

forecasts)

 Prepare reports on account status

SKILLS REQUIRED:

 Communication and Presentation Skills

 Service Tax and Sales Tax

 Data Annotator

EDUCATIONAL QUALIFICATION: MBA in Finance

EXPERIENCE: Minimum 4 to 5 years’ experience in accounts, sales tax, tds, service tax

filing, day book, ledger book maintaining other account related works.

SALARY: Not Disclosed

HR MANAGER

HR Manager will implement and manage all human resource policies, labour and employee

relations, benefits administration, regulatory compliance, performance management and

compensation review.

JOB DESCRIPTION

RESPONSIBILITIES:

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 To handle all aspects of recruitment i.e. source, shortlist and interview candidates,

prepare offer letter and ensure all requisite documentations are properly signed off, filed

and with copies transmitted.

 To handle on boarding and new hire administration (i.e. to ensure that the necessary

working equipment are ready, to conduct orientation, to introduce the new employee,

immigration assistance etc.).

 To ensure timely & accurate processing and submission of employee payroll &

statutory contributions.

 To handle all aspect of benefits administration:

 Contract renewal for benefits, include liaison with brokers/vendors, renewal terms and

clearance with HQ HR.

 To maintain employee health insurance benefits and process changes & terminations

to benefits as and when it arises and to respond promptly to employee queries regarding

enrolment, benefits coverage and related.

 To work with Country Director to drive and implement HR initiatives related to

Employee Engagement action plans.

 To manage employee relations issues including counselling and

consultation/collaboration with Country Director and regarding performance, conduct and

discipline issues.

 To ensure the company’s operations are within legal boundaries of the laws governing

employment practices and to advise Country Director and management on legal standards

in relation to company practices.

 To be responsible for other HR tasks/projects which are assigned on an ad hoc basis.

SKILLS REQUIRED:

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 Excellent communication and interpersonal skills

 Mature, self-motivated and independent

 Must be hands on and comfortable as a single contributor

 Familiar with working in a matrix reporting organization

EDUCATIONAL QUALIFICATION: MBA in Human Resource Management

EXPERIENCE: 3-5 years of work experience in Human Resources.

SALARY: Not Disclosed

CREDIT ANALYST

A credit analyst is a person employed by an organization to analyse the credit worthiness of

customers and potential customers.

Key Responsibilities
 Conduct thorough analysis of financial statements and assessment of credit requests,
including new requests, changed requests, refinancing and annual due diligence
 Provide recommendations tied to analysis and assessment of credit risk
 Present analysis, findings, and recommendations to managers, especially findings that
involve a borrower’s ability to repay
 Keep up to date with the company’s lending protocols
 Reconcile credit files and identify discrepancies and variances
 Develop and prepare spreadsheets and models to support analysis of new and existing
credit applications
Relevant Skills, Knowledge, and Experience
 Bachelor’s degree in finance, accounting, or other business-related fields
 Two to five years of strong quantitative experience
 Strong proficiency in MS Office and general computer use
 Ability to effectively manage competing deadlines for projects in a high-pressure
work environment, with varying degrees of supervision
 Strong attention to detail and ability to notice discrepancies in data
 Impeccable understanding of financial statements, ratios, and concepts

FINANCIAL ANALYST

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DUTIES

 Perform financial forecasting, reporting, and operational metrics tracking

 Analyse financial data and create financial models for decision support
 Report on financial performance and prepare for regular leadership reviews
 Analyse past results, perform variance analysis, identify trends, and make
recommendations for improvements
 Work closely with the accounting team to ensure accurate financial reporting
 Evaluate financial performance by comparing and analysing actual results with plans
and forecasts
 Guide the cost analysis process by establishing and enforcing policies and procedures
 Provide analysis of trends and forecasts and recommend actions for optimization
 Recommend actions by analysing and interpreting data and making comparative
analyses; study proposed changes in methods and materials
 Identify and drive process improvements, including the creation of standard and ad-
hoc reports, tools, and Excel dashboards
 Increase productivity by developing automated reporting/forecasting tools
 Perform market research, data mining, business intelligence, and valuation comps
 Maintain a strong financial analysis foundation creating forecasts and models
 Proficiency with Microsoft Excel is mentioned in virtually any financial analyst job
description; familiarity with data query/data management tools is extremely helpful
(Access, SQL, Business Objects)
Basic Qualifications
 0-3+ years of business finance or other relevant experience
 High proficiency in financial modelling techniques
 Strong fluency with Excel formulas and functions
 BA, BS, or B. Com degree required (Bachelor’s Degree in
Accounting/Finance/Economics)
 Strong analytical and data gathering skills
 Good business acumen
Preferred Qualifications
 3-5+ years of business finance or other relevant experience
 MBAs are preferred
 Finance, Accounting, Economics, or Statistics are preferred major fields
 Proven work experience in a quantitatively-heavy role
 FMVA or similar designations preferred
 Strong quantitative and analytical competency
 Self-starter with excellent interpersonal communication and problem-solving skills
 Advanced knowledge of Excel
Personality and Interpersonal Skills
 Ability to streamline functions and passion to learn and grow
 Strong interpersonal skills, including written and oral communication skills
 Comfort dealing with ambiguity and the ability to work independently
 Experience working with, and presenting to, senior executives

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 Excellent communication and presentation skills; be comfortable interacting with

executive-level management
 Strong financial modelling experience

INTERNAL AUDITOR

Internal auditing is an independent, objective assurance and consulting activity

designed to add value to and improve an organization's operations
RESPONSIBILITY
 Performing the full audit cycle including risk management and control management
over operations’ effectiveness, financial reliability and compliance with all applicable
directives and regulations
 Determining internal audit scope and developing annual plans
 Obtaining, analysing and evaluating accounting documentation, reports, data,
flowcharts etc
 Perform and control the full audit cycle including risk management and control
management over operations’ effectiveness, financial reliability and compliance with
all applicable directives and regulations
 Determine internal audit scope and develop annual plans
 Obtain, analyse and evaluate accounting documentation, previous reports, data,
flowcharts etc
 Prepare and present reports that reflect audit’s results and document process
 Act as an objective source of independent advice to ensure validity, legality and goal
achievement
 Identify loopholes and recommend risk aversion measures and cost savings
 Maintain open communication with management and audit committee
 Document process and prepare audit findings memorandum
 Conduct follow up audits to monitor management’s interventions
 Engage to continuous knowledge development regarding sector’s rules, regulations,
best practices, tools, techniques and performance standards

Requirements
 Proven working experience as Internal Auditor or Senior Auditor
 Advanced computer skills on MS Office, accounting software and databases
 Ability to manipulate large amounts of data and to compile detailed reports
 Proven knowledge of auditing standards and procedures, laws, rules and regulations
 High attention to detail and excellent analytical skills
 Sound independent judgement
 BS degree in Accounting or Finance

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PROJECT MANAGER

A project manager is a professional in the field of project management. Project managers

have the responsibility of the planning, procurement and execution of a project, in any
undertaking that has a defined scope, defined start and a defined finish; regardless of industry.
Project managers are first point of contact for any issues or discrepancies arising from within
the heads of various departments in an organization before the problem escalates to higher
authorities, as project representative.

Project management is the responsibility of a project manager. This individual seldom

participates directly in the activities that produce the end result, but rather strives to maintain
the progress, mutual interaction and tasks of various parties in such a way that reduces the
risk of overall failure, maximizes benefits, and minimizes costs

Responsibilities:

• Develops sponsored project proposals in compliance with sponsor guidelines and College
policy

• Initiates the routing and obtains appropriate approvals prior to proposal submission

• Assists with negotiation of award terms as needed

• Monitors project's financial status

• Manages project within budget limits

• Approves expenditures

• Assures that expenses incurred are allowable, reasonable, and allocable to the project to
which they are charged

• Seeks prior approval for budget changes when required

• Approves sub-recipient agreements and related invoices

• Ensures that cost-share requirements are met

• Reviews final financial statements

• Assists with accounts receivable collections as needed

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• Diligently pursues project aims, as described in the application • Manages project personnel

REQUIREMENTS

 Leadership Skills: You will have to keep your employees motivated, resolve conflicts
and make hard decisions for your employees.
 Time Management: You will be working with employees, customers and
management, often spinning multiple plates at once.
 Math and Budgeting: Project managers are expected to keep and maintain a budget in
almost every field. You will need to be confident in using math skills to make sure
you know where your company's money is going.
 Analytical Skills: You will also need analytical skills to be able to solve problems that
may come up during a typical work day. You will be analysing data and making
decisions that affect the project on a regular basis.

BUSINESS DEVELOPMENT MANAGER

Business development managers are the cornerstone of any successful organization because

they ultimately generate new revenue and help a company grow. The primary objective is to

identify new business opportunities and looking for identify new markets, new partnerships,

new ways to reach existing markets, or new product or service offerings to better meet the

needs of existing markets.

JOB DESCRIPTION:

RESPONSIBILITIES:

 A good grasp on numbers and an ability to write documents in a professional style.

 Passion to stay up to date on economic matters.

 Prospect for potential new clients and turn this into increased business.

 Meet potential clients by growing, maintaining, and leveraging your network.

 Identify potential clients, and the decision makers within the client organization.

 Research and build relationships with new clients.

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 Set up meetings between client decision makers and company s practice leaders

Principals.

 Handle objections by clarifying, emphasizing agreements and working through

differences to a positive conclusion.

 Present new products and services and enhance existing relationships.

 Work with technical staff and other internal colleagues to meet customer needs.

 Identify opportunities for campaigns, services, and distribution channels that will lead

to an increase in sales.

SKILLS REQUIRED:

 Good Communication and Interpersonal Skills.

 Good business knowledge and negotiation skills.

 Problem solving skills.

LEGAL OFFICER

Legal Officers are responsible for monitoring all legal affairs within their organization. They
handle both internal and external legal concerns, and are tasked with doing everything in their
power to keep their organization out of legal trouble

Duties and Responsibilities

Provide Legal Advice

Using oral or written platforms, Legal Officers will be expected to brief team of staff
members on legal issues, potential liabilities and possible courses of actions. This involves
translating complicated legal jargon into language which everyone can understand, as well as
taking all possible legal problems into consideration before making any recommendations.
All recommendations which the Legal Officer makes must be in complete compliance with
the law, and must also strive to minimize risk for their organization.

Process Documents

Any sort of legal work involves a great deal of paperwork, and the job of a Legal Officer is
no exception. Legal Officers will frequently need to write and review settlement documents,

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contracts, agreements, stock certificates and more. This task makes up of a significant portion
of the day-to-day work of Legal Officers, and requires both focus and precision.

Perform Research

Since laws and regulations are always changing and being modified, it’s up to the Legal
Officer to continuously research legal resources such as articles, codes, statutes, judicial
decisions and more. Doing so will allow the Legal Officer to stay up to date on all current
laws and make well-educated legal recommendations.

Identify Risks

Ideally, legal issues should be nipped in the bud before they even begin. This is why it’s
essential for Legal Officers to regularly analyse the actions and decisions of their companies
in order to identify problem areas, suggest alternative courses of action and mitigate risk as
much as possible.

Direct Staff

When a legal matter is underway, it’s up to the Legal Officer to direct all claim adjusters,
liability attorneys and other members of the legal staff. With proper leadership, the legal staff
can proceed with clarity, efficiency and confidence and hopefully resolve the matter swiftly.

Legal Officer Skills

Successful Legal Officers are stellar multitaskers, analytical thinkers and enthusiastic leaders.
They don’t shy from setting aside their managerial duties to perform clerical tasks, and
always have their organization’s best interests in mind. In addition to these general skills and
personality traits, employers are looking for Legal Officers with the following skills.

Core skills: Based on our analysis of various online job postings, employers are seeking
Legal Officers with the following core skills. If you’d like to pursue a career as a Legal
Officer, hone in on these.

 Excellent written and verbal communication

 Exceptional leadership skills
 Knowledge of all applicable laws, rules and regulations
 High attention to detail
 Strong negotiation skills
 Ability to prepare complex legal documents

Qualification: LLB with Graduation in any Stream or 5 years integrated Law Course.

Age Limit: 35 years

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FINANCIAL CONSULTANT

A Financial adviser or Financial Consultant, is a professional who suggests and renders

financial services to clients based on their financial situation. In many countries
financial advisors have to complete specific training and hold a license to provide
advice.

Duties:

 Markets services by asking for referrals from current clients; meeting prospects at
community functions; responding to inquiries; developing promotions; presenting
financial planning seminars.
 Assesses clients' financial situation by gathering information regarding investments,
asset allocation, savings, tax planning, retirement planning, and estate planning;
evaluating risk tolerance.
 Develops financial strategies by guiding client to establish financial goals; matching
goals to situation with appropriate financial plans.
 Obtains clients' commitment by explaining proposed financial plans and options;
explaining advantages and risks; providing explanations; alleviating concerns;
answering questions.
 Monitors clients' financial situation by tracking changes in wealth and life
circumstances; analysing financial plan results; identifying and evaluating new
financial strategies; recommending changes in goals and plans.
 Provides financial management information by preparing financial status analyses and
reports.
 Updates job knowledge by tracking financial markets, general economic conditions,
and new financial products; participating in educational opportunities; reading
professional and technical publications; maintaining personal networks; participating
in professional organizations.
 Accomplishes organization goals by accepting ownership for accomplishing new and
different requests; exploring opportunities to add value to job accomplishments.

Financial Consultant Skills and Qualifications:

Corporate Finance, Financial Diagnosis, Financial Operations, Financial Planning and

Strategy, Financial Skills, Financial Software, Selling to Customer Needs, Informing Others,
Financial Licenses, Analysing Information, Business Knowledge

EXPERIENCE

Minimum 5 years

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CHAPTER- 6

FUNCTIONAL ELECTIVE AREA

ANALYSIS OF POWER FINANCE

CORPORATION

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FINANCIAL ANALYSIS -

ACCOUNTING ANALYSIS

INCOME STATEMENT ( Rs in Cr)

Annual MAR 2019 MAR 2018 MAR 2017 MAR 2016 MAR 2015

Sales 28,842.00 25,975.85 26,907.53 27,473.65 24,861.32

Other Income 9.29 4.40 111.04 90.66 45.48

Total Income 28,851.29 25,980.25 27,018.57 27,564.31 24,906.80

Total Expenditure 53.74 3,179.25 5,474.62 2,031.97 1,092.55

EBIT 28,797.55 22,801.00 21,542.48 25,534.47 23,816.41

Interest 18,981.76 16,955.89 16,432.69 16,473.81 15,438.18

Tax 2,862.87 1,458.34 2,983.40 2,947.18 2,418.90

Net Profit 6,952.92 4,386.77 2,126.39 6,113.48 5,959.33

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BALANCE SHEET ( Rs in Cr)

Equities & MAR 2019 MAR 2018 MAR 2017 MAR 2016 MAR 2015
Liabilities

Share Capital 2,640.08 2,640.08 2,640.08 1,320.04 1,320.04

Reserves & Surplus 40,647.91 34,316.07 33,830.13 34,445.99 30,899.17

Current Liabilities 5,833.43 5,633.87 38,093.96 36,240.95 29,985.07

Other Liabilities 295,734.27 237,318.43 183,897.28 174,629.79 166,460.13

Total Liabilities 344,855.69 279,908.45 258,461.45 246,636.77 228,664.41

Assets

Fixed Assets 28.33 26.97 62.57 64.07 65.79

Current Assets 339,895.95 274,590.62 50,231.78 43,954.91 30,183.71

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Equities & MAR 2019 MAR 2018 MAR 2017 MAR 2016 MAR 2015
Liabilities

Share Capital 2,640.08 2,640.08 2,640.08 1,320.04 1,320.04

Other Assets 4,931.41 5,290.86 208,167.10 202,617.79 198,414.91

Total Assets 344,855.69 279,908.45 258,461.45 246,636.77 228,664.41

Other Info

Contingent Liabilities 2,033.53 2,706.76 0.00 700.43 1,283.60

CASH FLOW STATEMENT

Mar 2019 Mar 2018 Mar 2017 Mar 2016 Mar 2015

-44,501.30 -24,708.39 2,086.54 -13,338.97 -21,448.36

Operatin
g
Activities

Investing -13,819.57 1,427.79 -475.22 -1,855.85 -472.87

Activities

Financin 58,091.65 23,775.44 1,475.36 10,203.44 26,881.98

g
Activities

Others 0.00 0.00 0.00 0.00 0.00

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g eCash -229.22 494.84 3,086.68 -4,991.38 4,960.75
Flow
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RATIO ANALYSIS OF COMPANY

Ratio analysis is the comparison of line items in the financial statements of a business. Ratio

analysis is used to evaluate a number of issues with an entity, such as its liquidity, efficiency

of operations, and profitability

Per share Ratio

Earnings per share (EPS) is calculated as a company's profit divided by the outstanding
shares of its common stock. The resulting number serves as an indicator of a company's
profitability. It is common for a company to report EPS that is adjusted for extraordinary
items and potential share dilution.

Diluted EPS is a calculation used to gauge the quality of a company's earnings per
share (EPS) if all convertible securities were exercised. Convertible securities are all
outstanding convertible preferred shares, convertible debentures, stock options, and warrants.

Book value is the value of an asset according to its balance sheet account balance. For assets,
the value is based on the original cost of the asset less any depreciation, amortization or
impairment costs made against the asset

A dividend is defined as a payment made by a corporation to its shareholders. Usually these

pay-outs are made in cash (called “cash dividends”), but sometimes companies will also
distribute stock dividends, whereby additional stock shares are distributed to
shareholders. Stock dividends are also known as stock splits.

Face value is the amount of a debt obligation that is stated as payable in a debt document. ...

The face value of a bond may also be known as its par value. Face value can also apply to

preferred stock, where the amount stated on a stock certificate is used to calculate the

percentage dividend paid to investors

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Per Share Ratios MAR 2019 MAR 2018 MAR 2017 MAR 2016 MAR 2015

Basic EPS (Rs.) 26.34 16.62 8.05 46.31 45.15

Diluted Eps (Rs.) 26.34 16.62 8.05 46.31 45.15

Book Value [Excl. 163.96 139.98 138.14 270.95 244.08

Reval
Reserve]/Share
(Rs.)

Dividend/Share 0.00 7.80 5.00 13.90 9.10

(Rs.)

Face Value 10.00 10.00 10.00 10.00 10.00

Margin Ratio Analysis

The profit margin is a ratio of a company's profit (sales minus all expenses) divided by

its revenue. The profit margin ratio compares profit to sales and tells you how well the

company is handling its finances overall. It's always expressed as a percentage.

There are three other types of profit margins that are helpful when evaluating a business.

The gross profit margin, net profit margin, and operating profit margin.

The net profit margin tells you the profit that can be gained from total sales, the operating

profit margin shows the earnings from operating activities, and the gross profit margin is the

profit remaining after accounting for the costs of services or goods sold.

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How to Calculate Profit Margin

The profit margin formula simply takes the formula for profit and divides it by the

revenue. The profit margin formula is:

((Sales - Total Expenses) ÷ Revenue) x 100

Gross profit margin

This margin compares revenue to variable costs. It tells you how much profit each product

creates without fixed costs. Variable costs are any costs incurred during a process that can

vary with production rates (output). Firms use it to compare product lines, such as auto

models or cell phones.

Service companies, such as law firms, can use the cost of revenue (the total cost to achieve a

sale) instead of the cost of goods sold (COGS).

Determine the gross profit by:

Revenue - (Direct materials + Direct labour + Factory overhead)

And net sales using:

Revenue - Cost of Sales Returns, Allowances and Discounts

The gross profit margin formula is then:

(Gross Profits ÷ Net Sales) x 100

Operating profit margin

This margin includes both costs of goods sold, costs associated with selling and

administration, and overhead. The COGS formula is the same across most industries, but

what is included in each of the elements can vary for each. The formula is:

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Beginning inventory + Purchases - Ending Inventory

You then add together all of your selling and administrative expenses, and use it with the

COGS and revenues in the following formula:

((Revenues + COGS - Selling and Administrative Expenses) ÷ Revenues) x 100

Net profit margin

The net profit margin ratio is the percentage of a business's revenue left after deducting all

expenses from total sales, divided by net revenue. Net profit is total revenue minus all

expenses:

Total Revenue - (COGS + Depreciation and Amortization + Interest Expenses + Taxes +

Other Expenses)

You then use net profit in the equation:

Net Profit ÷ Total Revenue x 100

This gives you the net profit margin for the company.

This ratio is not a good comparison tool across different industries, because of the different

financial structures and costs different industries use

COMPANY MARGIN RATIO

Margin Ratios MAR 2019 MAR 2018 MAR 2017 MAR 2016 MAR 2015

Gross Profit 99.86 87.80 80.08 92.95 95.81

Margin (%)

Operating Margin 99.84 87.77 80.06 92.93 95.78

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Margin Ratios MAR 2019 MAR 2018 MAR 2017 MAR 2016 MAR 2015

(%)

Net Profit Margin 24.10 16.88 7.90 22.25 23.97

(%)

Liquidity Ratio ANALYSIS

Liquidity ratio: liquidity ratio used for the testing the ability of the business to meet its
short-term obligations. (Timely)

LIQUIDITY
RATIO

QUICK RATIO

A). current ratio: a ratio that measures whether or not a firm has enough resources to meet
its short-term obligations.

CURRENT RATIO = CURRENT ASSETS

CURRENT LIABILITIES

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B). quick ratio: acid ratio is a calculation that measures a company’s ability to meet its short
obligations with its most liquid assets.

QUICK RATIO = [CURRENT ASSETS – INVENTORY – PREPAID

EXPENSES] / CURRENT LIABILITIES

Liquidity Ratios MAR 2019 MAR 2018 MAR 2017 MAR 2016 MAR 2015

Current Ratio (X) 58.27 48.74 1.32 1.21 1.01

Quick Ratio (X) 58.27 48.74 1.32 1.21 1.01

LEVERAGE RATIO ANALYSIS

The leverage ratio is the proportion of debts that a bank has compared to its

equity/capital. There are different leverage ratios such as

 Debt to Equity = Total debt / Shareholders Equity

 Debt to Capital = Total debt / Capital (debt+equity)

 Debt to Assets = Total debt / Assets

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Leverage Ratios MAR 2019 MAR 2018 MAR 2017 MAR 2016 MAR 2015

Debt to Equity (x) 6.82 6.41 4.86 5.61 5.83

Interest Coverage 1.51 1.39 1.31 1.55 1.55

Ratios (%)

TURNOVER RATIO ANALYSIS

Asset Turnover Ratio

The asset turnover ratio measures the value of a company's sales or revenues relative to the

value of its assets. The asset turnover ratio can be used as an indicator of the efficiency with

which a company is using its assets to generate revenue.

The higher the asset turnover ratio, the more efficient a company is at generating revenue

from its assets. Conversely, if a company has a low asset turnover ratio, it indicates it is not

efficiently using its assets to generate sales.

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Turnover Ratios MAR 2019 MAR 2018 MAR 2017 MAR 2016 MAR 2015

Asset Turnover 8.36 9.28 10.41 11.13 10.87

Ratio (%)

GROWTH RATE RATIO ANALYSIS

Growth rates refer to the percentage change of a specific variable within a specific time

period. For investors, growth rates typically represent the compounded annualized rate of

growth of a company's revenues, earnings, dividends or even macro concepts, such as gross

domestic product (GDP) and retail sales. Expected forward-looking or trailing growth rates

are two common kinds of growth rates used for analysis.

Growth Ratios MAR 2019 MAR 2018 MAR 2017 MAR 2016 MAR 2015

3 Yr. CAGR Sales (%) 3.53 -2.76 4.03 12.98 20.02

3 Yr. CAGR Net Profit (%) 80.83 -15.29 -40.27 6.23 16.12

VALUATION RATIO ANALYSIS

Financial ratios are relationships based on a company's financial information and they can

serve as useful tools to evaluate a company's investment potential.

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Valuation is the financial process of determining what a company is worth. Valuation ratios

put that insight into the context of a company’s share price, where they serve as useful tools

for evaluating investment potential. Here is a list of principle valuation ratios.

Price-to-earnings

Price-to-earnings ratio (P/E) looks at the relationship between a company's stock price and its

earnings. The P/E ratio gives investors an idea of what the market is willing to pay for the

company's earnings. The ratio is determined by dividing a company's current share price by

its earnings per share. For example, if a company is currently trading at $25 a share and its

earnings over the last 12 months are $1.35 per share, the P/E ratio for the stock would be 18.5

($25/$1.35). As the P/E goes up, it shows that current investor sentiment is favourable. A

dropping P/E is an indication that the company is out of favour with investors.

Price-to-book value

Price-to-book value (P/B) is a measurement that looks at the value the market places on the

book value of the company. It is calculated by taking the current price per share and dividing

by the book value per share. The book value of a company is the difference between the

balance sheet assets and balance sheet liabilities. It is an estimation of the value of the

company if it were to be liquidated. For example, a company with a share price of $60 and a

book value of $65 per share would have a P/B ratio of 0.9. A ratio over 1 generally implies

that the market is willing to pay more than the equity per share, while a ratio under 1 implies

that the market is willing to pay less.

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Price-to-sales

The price-to-sales ratio (P/S) shows how much the market values every dollar of the

company's sales. To calculate it, take the company's market capitalization and divide it by the

company's total sales over the past 12 months. A company's market cap is the number of

shares issued multiplied by the share price. The P/S ratio can be used in place of the P/E ratio

in situations where the company has a net loss. One of the advantages of using the P/S ratio is

that sales are much harder to manipulate than earnings. Since a company's sales are generally

more stable than its earnings level, any large changes in the P/S ratio are often more likely to

indicate a departure from the intrinsic value of the company (either up or down).

Price-to-cash flow

Price-to-cash flow ratio (P/CF) evaluates the price of a company's stock relative to how much

cash flow the company generates. It is calculated by dividing the company's market cap by its

operating cash flow in the most recent 12 months. It can also be calculated by dividing the

per-share stock price by the per-share operating cash flow. P/CF ratio is an alternative method

to P/E ratio. Many investors prefer to use a P/CF metric because it is considered harder to

manipulate cash tallies than it would be to massage earnings reports under generally accepted

accounting principles, which could make the cash-based benchmark a more reliable indicator.

Price/earnings-to-growth (PEG)

Price/earnings-to-growth ratio is the relationship between the P/E ratio and the projected

earnings growth of a company. It is calculated by dividing the P/E ratio by the earnings-per-

share growth. For example, if a company’s P/E ratio is 16.5 and its earnings-per-share growth

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over the next 3 years is expected to be 10.8%, its PEG ratio would be 1.5. A PEG of 1 or less

is typically taken to indicate that the company is undervalued. A PEG of more than 1 is

typically taken to indicate that the company is overvalued. To get a clearer picture of value,

the PEG of the company should also be compared with the PEG of the market and with the

industry that the company competes in.

Valuation Ratios MAR 2019 MAR 2018 MAR 2017 MAR 2016 MAR 2015

P/E (x) 4.67 5.15 18.12 1.85 3.02

P/B (x) 0.75 0.61 1.06 0.63 1.12

EV/EBITDA (x) 10.89 11.35 9.85 8.74 9.18

P/S (x) 1.13 0.87 1.43 0.83 1.45

MARKETING ANALYSIS OF POWER FINANCE CORPORATION LIMITED

RISK ANALYSIS

Risk analysis is the process of identifying and analysing potential issues that could negatively

impact key business initiatives or projects. This process is done in order to help organizations

avoid or mitigate those risks

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Performing a risk analysis includes considering the possibility of adverse events caused by

either natural processes, like severe storms, earthquakes or floods, or adverse events caused

by malicious or inadvertent human activities. An important part of risk analysis is identifying

the potential for harm from these events, as well as the likelihood that they will occur.

Enterprises and other organizations use risk analysis to:

 anticipate and reduce the effect of harmful results from adverse events;

 evaluate whether the potential risks of a project are balanced by its benefits to aid in

the decision process when evaluating whether to move forward with the project;

 plan responses for technology or equipment failure or loss from adverse events, both

natural and human-caused; and

 identify the impact of and prepare for changes in the enterprise environment,

including the likelihood of new competitors entering the market or changes to

government regulatory policy

RISKS IN RELATION TO BUSINESS

Company have a significant concentration of outstanding loans to certain borrowers,

particularly public sector power utilities, many of which are historically loss-making, and if

these loans become non- performing, the quality of our asset portfolio may be adversely

affected.

We are a Public Financial Institution (“PFI”) focused on financing of the power sector in

India, which has a limited number and type of borrowers, primarily comprising of state power

utilities (“SPUs”) and state electricity boards (“SEBs”), many of which have been historically

loss making. Our past exposure has been, and future exposure is expected to be, concentrated

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towards these borrowers. As of March 31, 2019, our government sector (including SPUs and

SEBs) and private sector borrowers accounted for 82.96% and 17.04% respectively, of our

total outstanding loans. Historically, SPUs or SEBs have had a relatively weak financial

position and have in the past defaulted on their indebtedness. Consequently, we have had to

restructure some of the loans sanctioned to certain SPUs and SEBs, including rescheduling of

repayment terms. In addition, many of our public sector borrowers, particularly SPUs, are

susceptible to various operational risks including low metering at the distribution transformer

level, high revenue gap, high receivables, low plant load factors and high AT&C losses,

which may lead to further deterioration in the financial condition of such entities.

As of March 31, 2019, our total outstanding loans were ₹ 3,14,666.93 crore, of which, our

single largest borrower accounted for 7.91% (₹ 24,905.35 crore) of our total outstanding

loans, and our top five and top 10 borrowers accounted for, in the aggregate, 26.97% (₹

84,865.56 crore) and 41.34% (₹ 1,30,073.63 crore), respectively, of our total outstanding

loans. In addition, we have additional exposure to these borrowers in the form of non-fund-

based assistance. Our most significant borrowers are primarily public sector power utilities.

Any negative trends, or financial difficulties, or inability on the part of such borrowers to

manage operational, industry, and other risks applicable to such borrowers, could result in an

increase in our non-performing assets (“NPAs”) and adversely affect our business, financial

condition and results of operations. For further details of our NPAs, see the risk titled “– If

the level of non-performing assets in our loan portfolio were to increase, our financial

condition would be adversely affected.”

 Financial risk: If the Company’s cash flow proves inadequate to meet its financial

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obligations, its status as a going concern might be invoked.

 Competition risk: With growing westernization and increase in the penetration of
global players and growing popularity of individual themed cafés, it might be a
challenge for the Company to maintain its existing consumer base.
 Regulatory risks: Operating in the food industry space is subject to various
regulatory risks with respect to failure of compliance to quality standards and various
regulations imposed by the government policies. Failure to meet with the standards
might result in legal implications and loss of business.
 Climatic risks: Bad monsoon might result in lower production of coffee leading to
soaring high coffee prices. Passing it to the customers would incur menu costs and
loss in price sensitive segment of consumer base. Thus, inadequate monsoon might
result in falling revenues and profit.
 Economic risk: Sluggish growth of the economy impacts the spending power
reducing consumption. Overall macroeconomic instability results in a lower demand.
Thus, fluctuations in the economic scenario possess a major risk to the business of the
Company. Performance of the backward and forward linked industries is of vital
importance for the logistics sector to perform.
 Social and political risk: Government policies play a major role in determining the
fate of an industry. Relaxation of various regulations and simplification of tax regime
give the much-needed push to the concerned sectors. Change in orientation with
change in government possesses a threat to the business.

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CHAPTER- 7
LEARNING OUTCOMES
&
LIMITATION

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LEARNING OUTCOMES

 Power Finance Corporation limited company continued to accomplish a healthy

growth during the FY 2018-19

 Earning per share value increases of company in 2019 as compare to past years.

 Ratio Analysis

 Analyzing Financial documents

 Analyzing the Market in terms of business

 Personal Development by learning time managing, gather information, MS word &

Researches

 Learn about different functional Profiles in company

 Analyze the Financial sector

 Understand the role and function of the financial system in reference to micro &

macro economy

LIMITATIONS
• Due to outbreak of Covid-19 there is a lockdown in whole country because of this I
have completed this project from home.

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 Time Constraint

CONCLUSION

Power Finance Corporation limited company continued to accomplish a healthy growth

during the FY 2018-19. The total income stood at ` 28,851 crore as compared to ` 25,980
crore in FY 2017-18. Profit after Tax (PAT) grew by 58% from ` 4,387 crore in FY 2017-18
to ` 6,953 crore in FY 2018-19. Further, Net Worth (share capital plus all reserves) of the
company grew by 17% in FY 2018-19 to ` 43,288 crore as compared to ` 36,956 crore in FY
2017-18 and the loan assets as at March 31, 2019 grew by 13% to ` 3,14,667 crore from `
2,79,329 crore as at March 31, 2018. Because of improved financial health of the company,
all the important financial parameters have gone up in the FY 2018-19. Return on net worth
has increased from 12.12% in FY 2017-18 to 17.33% in FY 2018-19. Return on total assets
has increased from 1.65% in FY 2017-18 to 2.33% in FY 2018-19. Although Debt Equity
Ratio have slightly gone up from 6.21 time in FY 2017-18 to 6.66 time in FY 2018-19.
Company Corporate Social Responsibility and Sustainable Development initiatives, aims to
become a socially responsible corporate entity committed to improve the quality of life of the
society at large. In line with this, your company's Corporate Social Responsibility and
Sustainability Policy (CSR and Sustainability Policy) ensures that your Company becomes a
socially responsible corporate entity by undertaking projects for Sustainable Developments.
During the year, PFC implemented wide range of activities in the field of Environment
Sustainability, Skill development, Sanitation, Healthcare and supporting the differently abled.
For the FY 2018-19, the Board of Directors had approved the CSR budget of ` 148.15 crore.
In the preparation of financial statements, the Company has followed Indian Accounting
Standards ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules,
2015 (as amended) with effect from April 1, 2018, issued by the Ministry of Corporate
Affairs, to the extent applicable.

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BIBLOGRAPHY

Wikipedia.org
https://en.wikipedia.org/wiki/Power_Finance_Corporation

http://www.pfcindia.com/Home

https://www.moneycontrol.com/india/stockpricequote/finance-term-lending-
institutions/powerfinancecorporation/PFC02

https://www.pfcindia.com/DocumentRepository/ckfinder/files/Investors/Annual_Reports/PFC%20AR
%202018-19%20final.pdf Annual Report

https://www.ibef.org/industry/financial-services-india.aspx

https://www.owler.com/company/pfcindia

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