AMITY LAW SCHOOL KOLKATA

B.Com LL.B (Hons)

SEMESTER 3

FUNDAMNETAL PRINCIPLES OF STRATEGY

AND BUSINESS POLICY (STRA301)

TOPIC: FOCUS ON CURRENT TRENDS,

CHALLENGES AND OPPURTUNITIES

SUBMITTED TO: Ms MADHUMITA DAS GUPTA

SUBMITTED BY:
AMALU IYER
SHREYASI BOSE

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CONTENT
1. INTRODUCTION
2. CONCEPT
3. IMPORTANCE AND LEVELS
4. PUBLIC SECTOR
5. THE NEW ECONOMY
6. TRENDS IN THE EXTERNAL ENVIRONMENT OF
THE BUSINESS: 1990’S AND 2000’S
7. REDESINGING THE ORGAIZATION
8. NEW MODELS OF LEADERSHIP
9. COMPANY ANALYSIS: WEST BENGAL STATE
ELECTRICITY DISTRIBUTION COMPANY LIMITED
10. CONCLUSION

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INTRODUCTION

Strategic management is a crucial trend in business analysis and policy that

involves the formulation, implementation, and monitoring of an organization's
long-term goals and objectives. It encompasses a set of processes and activities
designed to help a company achieve its mission and vision while responding to
the challenges and opportunities in its external and internal environments. Here's
a breakdown of what strategic management entails:

1. Formulation of Strategy: This involves identifying an organization's strategic

objectives and creating a detailed plan to achieve them. This plan often includes
defining the company's mission, vision, values, and goals, and assessing its
strengths, weaknesses, opportunities, and threats (SWOT analysis).

2. Strategy Implementation: Once the strategy is formulated, it needs to be put

into action. This step involves aligning the organization's resources, processes,
and people with the strategic plan. It may require changes in organizational
structure, resource allocation, and the development of specific action plans.

3. Strategic Monitoring and Control: This is the ongoing process of tracking

the implementation of the strategy, measuring performance against established
targets, and making necessary adjustments. Monitoring ensures that the company
stays on course and is achieving its strategic objectives.

4. Adaptation to Environmental Changes: Strategic management also involves

a focus on the external environment. Businesses need to continuously scan the
external environment for changes, such as market trends, competitive pressures,
regulatory shifts, and technological advancements. They must adapt their
strategies as needed to respond to these changes.

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5. Competitive Advantage: One of the primary objectives of strategic
management is to help an organization establish and sustain a competitive
advantage. This could be achieved through cost leadership, differentiation,
innovation, or other strategic positioning in the market.

6. Risk Management: Strategic management includes the identification and

management of risks that could hinder the achievement of the organization's
objectives. This may involve contingency planning and risk mitigation strategies.

7. Stakeholder Engagement: Businesses need to consider the interests of various

stakeholders, including customers, employees, shareholders, suppliers, and the
community. Effective strategic management often involves maintaining positive
relationships with these stakeholders.

8. Long-Term Perspective: Strategic management takes a long-term

perspective, focusing on an organization's sustainable success over many years
rather than short-term gains.

9. Ethical Considerations: Ethical considerations and corporate social

responsibility are becoming increasingly important in strategic management.
Companies are expected to operate in a socially responsible and ethical manner.

CONCEPT

Strategic management is the systematic process through which organizations

define their mission, vision, and long-term goals, assess their internal strengths
and weaknesses, analyse external opportunities and threats, and formulate a
coherent and adaptable strategy to achieve sustained competitive advantage. This
discipline involves not only the development of strategies but also their effective
implementation, ongoing monitoring, and adjustment in response to changing
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circumstances. It ensures that an organization's resources, activities, and decision-
making align with its strategic objectives and that it remains agile in addressing
market dynamics. Ultimately, strategic management is a vital framework for
guiding an organization toward its desired future, maximizing its performance,
and staying responsive to the evolving business environment.

IMPORTANCE AND LEVELS

Strategic management is of great importance to organizations across various

levels, from the overall corporate level down to individual business units and
projects. Here's an overview of the importance and levels of strategic
management:

 Corporate Level:
1. Alignment with Mission and Vision: At the corporate level, strategic
management ensures that the organization's overall mission and vision are
translated into specific strategies and objectives.
2. Resource Allocation: It helps in allocating resources effectively across
business units or divisions to achieve the company's strategic goals.
3. Diversification and Portfolio Management: Strategic management aids
in decisions related to diversifying into new markets, acquiring or divesting
businesses, and managing the overall portfolio of business units.

 Business Unit Level:

1. Competitive Positioning: Each business unit within an organization needs
to define its unique competitive positioning and strategy, ensuring it
contributes to the overall corporate strategy.

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2. Market and Product Development: Business unit-level strategic
management focuses on market expansion, product development, and
market penetration strategies.
3. Performance Measurement: It includes measuring and improving the
performance of individual business units based on strategic goals and key
performance indicators (KPIs).

 Functional Level:
1. Functional Alignment: Functional areas (e.g., marketing, finance,
operations) need to align their strategies with the business unit and
corporate strategies to support the achievement of strategic objectives.
2. Operational Efficiency: Functional strategic management involves
optimizing processes and operations within each department to contribute
to overall efficiency.
3. Resource Utilization: It ensures the efficient utilization of resources
within specific functions while adhering to the broader organizational
goals.

 Project or Task Level:

1. Project Alignment: Strategic management at the project level ensures that
individual projects and tasks are in line with the objectives of the business
unit or organization.
2. Risk Management: It involves identifying and managing risks specific to
each project to ensure that they do not disrupt the overall strategic goals.
3. Outcome Measurement: Projects are evaluated based on their
contribution to the strategic objectives and whether they deliver the desired
outcomes.
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The importance of strategic management at these various levels lies in its ability
to provide direction, coherence, and adaptability to the organization. It helps in:

1. Enhancing Decision-Making: Strategic management provides a

structured approach to decision-making, ensuring that choices are aligned
with the organization's long-term goals.
2. Improving Resource Allocation: It helps in allocating resources
(financial, human, and technological) optimally to achieve strategic
priorities.
3. Adapting to Change: Strategic management enables organizations to be
proactive and adapt to changes in the external environment, maintaining
competitiveness.
4. Measuring and Monitoring Progress: It establishes a framework for
tracking progress toward strategic goals and making adjustments when
necessary.
5. Enhancing Organizational Communication: It fosters communication
and alignment among different levels and functional areas of the
organization, promoting a shared vision and purpose.

Overall, strategic management is essential for an organization's sustainability and

success, ensuring that it remains agile and responsive in a dynamic business
environment.

PUBLIC SECTOR
The portion of the economy and government that is owned and run by the state
or federal government is referred to as the public sector. It includes a broad
spectrum of endeavours and institutions that offer the general public a range of
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public goods and services. These services may encompass the following areas:
public administration, law enforcement, defence, healthcare, education, and
more.

Important traits of the public sector consist of:

1. Government ownership: Public sector organisations are neither privately
owned nor run for profit; rather, they are owned by the state or the federal
government.
2. Public funding: Taxes, government appropriations, or other public money
streams are usually used to support these organisations.
3. Provision of public services: The main objective of the public sector is to
supply the general public with necessities, frequently emphasising that all
citizens' needs be met regardless of their financial situation.
4. Regulatory role: The public sector oversees many facets of the economy
and society in addition to providing services. This is done to assure safety,
justice, and adherence to laws and regulations.

Examples of public sector entities include government departments, public

schools, public hospitals, law enforcement agencies, military services, public
transit systems, and more. The public sector is an essential component of most
modern societies, and it plays a crucial role in ensuring the well-being and
functioning of the nation and its citizens.

TYPES OF PUBLIC SECTOR

Public sectors can be categorized into various types based on the nature of the
activities they engage in and their ownership and control. Here are some common
types of public sector entities:

1. Government Departments: These are part of the core government

structure and are responsible for specific functions or services, such as
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 education, defence, health, transportation, and social services. They are
funded and operated directly by the government.
2. Public Corporations: Public corporations are government-owned entities
that operate like private businesses. They generate revenue and are
expected to cover their costs. Examples include national airlines, utilities,
and postal services.
3. Public-Private Partnerships (PPPs): PPPs involve collaboration between
the public and private sectors to provide services or infrastructure. The
private sector often plays a role in financing, constructing, or operating
public projects, such as toll roads, bridges, and hospitals.
4. Municipal or Local Government Entities: Local governments operate a
range of public services, including schools, public transportation, waste
management, and public libraries. They may be funded through local taxes
and fees.
5. Statutory Bodies: These are autonomous bodies created by legislation to
regulate specific industries or oversee specific activities. Examples include
regulatory agencies for telecommunications, broadcasting, and financial
services.
6. Government-Linked Companies (GLCs): GLCs are government-owned
or government-controlled companies that operate in various industries,
including finance, energy, and infrastructure. They may serve economic
and strategic purposes.
7. Non-Governmental Organizations (NGOs): While NGOs are typically
not considered part of the public sector, they often work closely with
governments to provide public services and address social and
environmental issues.
8. State-Owned Enterprises (SOEs): SOEs are government-owned or
government-controlled companies that may operate in sectors such as

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 telecommunications, energy, and transportation. They can have varying
degrees of autonomy from the government.
9. Social Enterprises: Some public sector organizations are focused on
addressing social and environmental issues, often through commercial
activities. They may include social enterprises that aim to create social
impact alongside economic sustainability.
10.Research and Development Organizations: Governments often fund
research and development organizations that work on scientific,
technological, and innovation-related initiatives. These organizations can
be crucial for advancing knowledge and technology.
11.Public Educational Institutions: Public schools, colleges, and
universities are government-funded and provide education services to the
public. They play a critical role in the development of human capital.

THE NEW ECONOMY

The management strategies in the Indian economy have evolved significantly

over the years, reflecting changes in economic policy, globalization, technology,
and market dynamics. Here is a brief overview of the changes in management
strategies in the Indian economy and its present form:

 Historical Context (Pre-1991):

License Raj: Before 1991, India followed a system known as the "License
Raj," which involved heavy government intervention, regulations, and
controls on various industries. This resulted in a highly protected and closed
economy, with limited foreign investment and competition.

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 Changes Post-1991 (Economic Liberalization):
1. Economic Liberalization: In 1991, India initiated economic reforms to
liberalize its economy. This included reducing trade barriers, opening up
to foreign investment, and deregulating many sectors. This shift led to
greater economic growth and opportunities.
2. Privatization: The government started privatizing state-owned
enterprises, allowing private sector participation in various industries. This
move aimed to improve efficiency and reduce the fiscal burden on the
government.
3. Globalization: India's integration into the global economy expanded
significantly. Trade barriers were reduced, and foreign direct investment
(FDI) rules were relaxed, attracting foreign companies to invest in India.
4. Technology and IT: The IT and software services industry in India
experienced rapid growth. Indian companies became leaders in
outsourcing and software development, contributing significantly to
economic growth.
5. Service Sector Growth: The services sector, including IT, business
process outsourcing (BPO), and financial services, saw substantial growth,
making it a significant contributor to India's GDP.

 Present Form (2020s):

1. Digital Transformation: India is undergoing a digital transformation,
with increased adoption of digital technologies, e-commerce, and online
services. This has impacted business strategies, focusing on digital
marketing, data analytics, and customer engagement.
2. Start-up Ecosystem: India has seen a thriving start-up ecosystem, with a
focus on innovation, entrepreneurship, and technology-driven businesses.

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 The government has launched initiatives to support start-ups and foster
innovation.
3. Sustainability and ESG: Environmental, Social, and Governance (ESG)
factors have gained importance in business strategies, with companies
focusing on sustainability, corporate social responsibility, and ethical
practices.
4. Economic Diversification: India's economy has become more diversified,
with growth in sectors like healthcare, renewable energy, and education.
Companies are exploring new opportunities beyond traditional sectors.
5. Competition and Consumer-Centric Approach: Increased competition
has led to a focus on delivering quality products and services, improved
customer experiences, and effective marketing strategies.
6. Government Initiatives: Government initiatives such as "Make in India,"
"Digital India," and "Skill India" have shaped business strategies,
promoting local manufacturing, digitalization, and skill development.
7. Global Trade Dynamics: India continues to engage in international trade
and has entered into various regional trade agreements, influencing the
strategies of companies engaged in global supply chains.

In the present form, management strategies in the Indian economy are marked by
a combination of traditional business practices, digital transformation,
innovation, and a focus on sustainability and social responsibility. The economic
landscape remains dynamic, with companies adapting to changing market
conditions and emerging as both domestic and global players.

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TRENDS IN THE EXTERNAL
ENVIRONMENT OF THE BUSINESS:
1990’S AND 2000’S

The 1990s were a period of significant change and transformation in the external
business environment. Several notable trends and developments characterized
this era, influencing the way businesses operated and adapted to emerging
challenges and opportunities. Here are some of the key trends in the external
environment of business during the 1990s:

1. Globalization: The 1990s saw a rapid acceleration of globalization.

Advances in technology, transportation, and communication made it easier
for companies to expand their operations internationally. This trend
allowed businesses to access new markets, but it also increased
competition and the need for international strategic management.
2. Technological Advancements: The proliferation of the internet and the
rise of personal computing revolutionized business operations. E-
commerce, email communication, and the adoption of software for various
business functions became prevalent. This technological transformation
opened up new business models and opportunities while necessitating
digital literacy and adaptation.
3. Information Revolution: The 1990s marked a significant shift towards the
information economy. Businesses increasingly relied on data and
information to make strategic decisions. This era saw the rise of data
analytics and the importance of data-driven decision-making.
4. Deregulation: Many industries, particularly in the United States,
experienced deregulation during the 1990s. This trend impacted sectors
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 like telecommunications, energy, and transportation, creating new
opportunities and challenges for businesses as they adapted to more
competitive environments.
5. Environmental Awareness: Environmental concerns gained prominence
during the 1990s, and businesses started to take sustainability and
corporate social responsibility more seriously. Regulations related to
environmental practices and reporting increased, affecting various
industries.
6. Changing Demographics: The 1990s marked the beginning of
demographic shifts, such as the aging of the population in many Western
countries and increased diversity in the workforce. Businesses had to adjust
their products, services, and HR policies to cater to changing customer and
employee demographics.
7. Emergence of the Asian Tigers: The Asian economies, often referred to
as the "Asian Tigers" (South Korea, Taiwan, Hong Kong, and Singapore),
continued to rise as economic powerhouses during the 1990s. This
presented new market opportunities and competition for businesses
globally.
8. Market Liberalization: In some parts of the world, market liberalization
and privatization efforts were in full swing, offering new avenues for
investment and business expansion. It was a time of economic reform in
several countries.
9. Economic Uncertainty: The decade was marked by economic crises, such
as the Asian financial crisis in 1997 and the bursting of the dot-com bubble
in 2000. These events brought economic uncertainty and influenced
business strategies.
10.Trade Agreements: The North American Free Trade Agreement
(NAFTA) came into force in 1994, significantly impacting trade
relationships between the United States, Canada, and Mexico. This trend
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 represented a broader shift toward regional and international trade
agreements.

Strategic Trends in the 2000’s:

The 2000s saw a number of variables impacting strategic developments in the
external corporate environment, including globalisation, economic shifts,
technical advancements, and shifting consumer tastes.

1. Technological Advancements: The rapid growth of the internet and the

proliferation of mobile devices fundamentally changed the way businesses
operated. E-commerce, online marketing, and digital communication
became essential elements of business strategy. The emergence of social
media platforms like Facebook and Twitter created new opportunities and
challenges for businesses to engage with customers and manage their
online reputation. Advances in information technology, cloud computing,
and data analytics provided companies with tools to improve efficiency,
decision-making, and customer insights.
2. Globalization: The 2000s witnessed increased globalization, with
companies expanding into international markets and supply chains
becoming more complex. Outsourcing and offshoring became prevalent
strategies as businesses sought cost savings and access to skilled labour in
other countries. The rise of emerging markets, particularly in Asia,
presented new opportunities for expansion and diversification.
3. Economic Uncertainty: The early 2000s were marked by the dot-com
bubble burst and the 2000-2001 recession. Later in the decade, the global
financial crisis of 2008 had a significant impact on businesses worldwide,
leading to increased financial risk management and a focus on cost control.
4. Environmental Concerns: Growing awareness of environmental issues
and climate change led to a focus on sustainability and corporate social

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 responsibility (CSR) within the business world. Businesses began to adopt
more eco-friendly practices, reduce carbon emissions, and market their
products as environmentally responsible.
5. Changing Consumer Behaviour: Consumer preferences evolved, with a
growing demand for convenience, customization, and personalized
experiences. The rise of online retail and the sharing economy (e.g.,
Airbnb, Uber) transformed traditional business models and encouraged
innovation.
6. Regulatory Changes: Governments around the world introduced new
regulations and compliance requirements, particularly in the financial and
healthcare sectors, which influenced business operations and strategies.
7. Supply Chain Complexity: Supply chain management became more
complex due to global sourcing, and companies had to adapt to manage
risks associated with supply chain disruptions.
8. Social and Political Unrest: The 2000s saw various geopolitical events,
including conflicts and terrorism, which had a direct or indirect impact on
businesses' international operations and strategies.
9. Demographic Shifts: Changing demographics, such as the aging
population in many developed countries, influenced industries like
healthcare, retirement planning, and senior services.

These trends had a profound impact on business strategies, prompting companies

to adapt and innovate to remain competitive and navigate the challenges and
opportunities presented by the external environment in the 2000s.

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NEED FOR REDESIGNING OF
ORGANISATION’S STARTEGIC
MANAGEMENT
There are several reasons why a company could need to redesign its strategic
management, and each company will have different demands. Redesigning an
organization's strategic management is sometimes done for the following reasons:

Changing Market Conditions: As the business environment evolves, an

organization may need to adapt its strategic management to respond to new
market dynamics, emerging technologies, shifts in consumer preferences, or
competitive pressures.

1. Performance Improvement: If the organization is not achieving its

strategic goals or experiencing declining performance, a redesign of the
strategic management process can help identify and address inefficiencies
or gaps in the existing strategy.
2. Mergers and Acquisitions: When organizations merge or acquire other
companies, their strategic management may need to be redesigned to
integrate the newly acquired businesses, align objectives, and create a
cohesive strategy.
3. Global Expansion: Companies expanding into international markets often
require a revaluation of their strategic management to account for the
complexities of operating in different countries and regions.
4. New Leadership: A change in leadership, such as a new CEO or executive
team, can lead to a revaluation of the organization's strategic direction and
the methods used to implement and manage that strategy.
5. Technology Advancements: Advances in technology can create
opportunities and threats that necessitate a redesign of an organization's

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 strategic approach. This may include adopting digital strategies,
implementing new systems, or leveraging data analytics.
6. Regulatory Changes: Shifts in regulations or government policies can
impact an organization's industry, requiring a redesign of strategic
management to ensure compliance and adapt to new rules.

Either way, rethinking an organization's strategic management should be a

deliberate and planned process that incorporates feedback from important
stakeholders and requires a thorough comprehension of the organization's
objectives and obstacles. For successful execution, it must also be supported by
a clearly stated implementation plan.

NEW MODES OF LEADERSHIP

Leadership models and theories continue to evolve as our understanding of
leadership and the workplace changes.

1. Servant Leadership: This model emphasizes the leader's role as a servant

to their team, focusing on their needs, development, and well-being.
Servant leaders prioritize empathy, active listening, and a commitment to
helping their team members grow and thrive.
2. Transformational Leadership: Transformational leaders inspire and
motivate their team through a shared vision. They encourage creativity,
innovation, and a commitment to organizational values. This model can be
particularly effective in dynamic and rapidly changing environments.
3. Authentic Leadership: Authentic leaders are genuine and true to
themselves. They build trust through transparency, honesty, and self-
awareness. This model values personal integrity and the alignment of a
leader's actions with their values.

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4. Distributed Leadership: Distributed leadership recognizes that leadership
can come from various levels within an organization, not just from the top.
It encourages collaboration and shared responsibility for achieving
organizational goals.
5. Agile Leadership: This model aligns with the principles of agile project
management and emphasizes adaptability and responsiveness to change.
Agile leaders foster a culture of flexibility, continuous improvement, and
quick decision-making.
6. Inclusive Leadership: Inclusive leaders create diverse and inclusive work
environments. They recognize the value of diversity and actively seek to
involve all team members in decision-making and problem-solving.
7. Ethical Leadership: Ethical leaders prioritize ethical behaviour and
decision-making. They set a strong moral example for their teams and
encourage ethical conduct throughout the organization.
8. Neuro leadership: This emerging field explores the intersection of
leadership and neuroscience. It seeks to apply insights from neuroscience
to enhance leadership practices, including understanding the impact of
stress, emotions, and cognitive biases on leadership effectiveness.
9. Digital Leadership: With the increasing influence of technology in the
workplace, digital leadership focuses on leading in the digital age. It
involves skills related to managing virtual teams, digital communication,
and leveraging technology for business success.

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COMPANY ANALYSIS: WEST
BENGAL STATE ELECTRICITY
DISTRIBUTION COMPANY LIMITED
WBSEDCL stands for West Bengal State Electricity Distribution Company
Limited. It is a government-owned utility company in the Indian state of West
Bengal. The primary purpose of WBSEDCL is to distribute electricity to
consumers in the state and undertake activities related to power distribution,
transmission, and generation to meet the energy needs of the region.

YEAR-WISE FINANLICAL ANALYSIS

Sales and purchase:

The provided financial data for the years 2014-15 through 2017-18 reveals certain
strategic risks that a business might face. Firstly, there is a consistent decline in
sales from 2014-15 to 2015-16, which may indicate a potential market slowdown
or increased competition. While sales show a subsequent recovery in 2016-17,
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the fluctuation suggests market volatility. On the procurement side, purchases
have steadily increased each year, signalling potential supply chain risks or rising
input costs. The discrepancy between sales and purchases could expose the
company to margin pressures, impacting profitability. Strategic planning should
consider these trends, emphasizing the need for diversification, cost management,
and risk mitigation strategies to navigate market uncertainties and maintain a
competitive edge. Additionally, a thorough analysis of the factors influencing
sales and purchasing patterns, such as market dynamics and industry trends, is
crucial for informed decision-making in the face of strategic risks.

It appears that the data provided is related to financial figures for two consecutive
years, 2018-2019 (18-19) and 2017-2018 (17-18), for a company involved in the
power sector, possibly in the context of electricity generation and distribution.

 Sales:

18-19: 29,302.72

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 17-18: 27,706.19

The sales have increased from the previous year, indicating potential growth in
revenue.

 Purchase:

18-19: 39,931.51

17-18: 38,848.53

The purchase cost has also increased, suggesting higher expenses in acquiring
resources for the company.

 Generation (including PPSP - possibly Power Purchase and Sale

Agreements):

18-19: 1,660.913

17-18: 1,437.09

There's an increase in the generation, indicating a growth in the company's power

production.

In summary, the company experienced growth in both sales and power generation
from 2017-2018 to 2018-2019. However, it's also notable that the purchase cost
has increased, so further analysis of cost structures, profit margins, and other
financial metrics would be necessary for a comprehensive assessment of the
company's financial performance. Additionally, comparing these figures to
industry benchmarks and considering the economic context would provide a more
informed perspective.

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  Sales:

19-20: 33,153.16

18-19: 29,302.72

There's an increase in sales, indicating potential growth in revenue from the

previous year.

 Purchase:

19-20: 42,411.99

18-19: 39,931.51

The purchase cost has increased, suggesting higher expenses in acquiring

resources for the company. However, the increase is not as substantial as the
increase in sales.

 Generation (including PPSP):

19-20: 1,621.793

18-19: 1,660.913
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 There's a slight decrease in generation compared to the previous year.

In summary, the company experienced growth in sales from 2018-2019 to 2019-

2020, but there's a decrease in power generation. The increase in purchase costs
should be carefully monitored to ensure that it does not disproportionately impact
profitability. Further analysis, including examining profit margins, cost
structures, and other financial metrics, would be necessary for a more
comprehensive understanding of the company's financial performance.
Additionally, considering industry benchmarks and the economic context would
provide a more informed perspective.

 Sales:

20-21: 32,258.84

19-20: 33,153.16

There's a decrease in sales from the previous year.

 Purchase:

20-21: 42,352.80
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 19-20: 42,411.99

The purchase cost has slightly decreased.

 Generation (including PPSP):

20-21: 1,867.859

19-20: 1,621.793

There's an increase in power generation compared to the previous year.

In summary, the company experienced a decrease in sales in the 2020-2021

financial year. The purchase cost has slightly decreased, and there's an increase
in power generation. Further analysis, including examining profit margins, cost
structures, and other financial metrics, would be necessary for a more
comprehensive understanding of the company's financial performance.
Additionally, considering industry benchmarks and the economic context would
provide a more informed perspective. The decrease in sales could be a point of
interest for the company to investigate and address potential factors influencing
this trend.

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  Sales:

21-22: 40,727.87

20-21: 32,258.84

There's a significant increase in sales from the previous year, indicating potential
growth in revenue.

 Purchase:

21-22: 49,451.34

20-21: 42,352.80

The purchase cost has increased, suggesting higher expenses in acquiring

resources for the company.

 Generation (including PPSP):

21-22: 1,801.738

20-21: 1,867.859

There's a slight decrease in power generation compared to the previous year.

In summary, the company experienced substantial growth in sales in the 2021-

2022 financial year. However, the increase in purchase costs should be carefully
monitored to ensure it aligns with the increased revenue. The slight decrease in
power generation could be a point of interest for the company to investigate
further. Further analysis, including examining profit margins, cost structures, and
other financial metrics, would be necessary for a more comprehensive
understanding of the company's financial performance. Additionally, considering
industry benchmarks and the economic context would provide a more informed
perspective.

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Ratio analysis:

Ratio analysis
Return on Net worth
Inventory Turnover ratio
Interest Coverage Ratio
Current Ratio
Debt Equity Ratio
0 1 2 3 4 5 6 7 8

2014-15 2013-14

The financial ratios provided offer insights into the company's financial health
and performance over the two fiscal years, 2013-14 and 2014-15. The Debt
Equity Ratio indicates a slight increase, suggesting a higher reliance on debt in
the later period, which could either signal aggressive expansion or a potential risk
in terms of financial leverage. The Current Ratio has decreased from 1.18 to 1.05,
indicating a decline in the company's short-term liquidity, possibly signalling a
need for better working capital management. The Interest Coverage Ratio has
remained relatively stable, implying consistent ability to cover interest expenses.
However, the Inventory Turnover ratio has decreased, reflecting a potential
inefficiency in inventory management. The Return on Net Worth has also
declined, indicating a decrease in the company's profitability in relation to its
equity base. Overall, strategic opportunities may involve optimizing working
capital, managing debt levels effectively, and enhancing inventory turnover to
improve profitability and financial stability.

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 Ratio analysis
Return on Net worth

Inventory Turnover ratio

Interest Coverage Ratio

Current Ratio

Debt Equity Ratio

0 2 4 6 8 10

2015-16 2014-15

The financial ratios provided offer insights into the company's financial health
and performance over the 2014-15 and 2015-16 periods. The Debt Equity Ratio
has increased from 7.53 to 8.18, indicating a higher level of financial leverage in
2015-16. While this may suggest increased risk, it could also imply strategic
opportunities for expansion or investment. The Current Ratio has improved from
1.05 to 1.23, reflecting better short-term liquidity and the potential for the
company to meet its immediate obligations. The Interest Coverage Ratio has seen
a marginal increase from 1.48 to 1.52, signalling a slight improvement in the
company's ability to cover interest expenses. The Inventory Turnover ratio has
decreased from 3.47 to 3.3, suggesting a longer time to sell inventory, which may
be an area for operational optimization. Notably, the Return on Net Worth has
significantly improved from 0.28 to 1.01, indicating a higher return on
shareholders' equity and suggesting positive strategic opportunities for value
creation. In summary, the company may have opportunities to capitalize on
improved liquidity, address inventory management, and leverage its enhanced
return on net worth for strategic initiatives.

P a g e 28 | 59
 Ratio analysis
Return on Net worth
Inventory Turnover ratio
Interest Coverage Ratio
Current Ratio
Debt Equity Ratio
0 2 4 6 8 10

2016-17 2015-16

The financial data provided indicates a notable shift in the company's financial
health between the fiscal years 2015-16 and 2016-17. The Debt Equity Ratio has
decreased from 8.18 to 4.65, suggesting a reduction in financial leverage,
potentially signalling improved financial stability. The Current Ratio has also
slightly decreased from 1.23 to 1.19, indicating a slight reduction in short-term
liquidity. However, the Interest Coverage Ratio has improved from 1.52 to 1.57,
reflecting a better ability to meet interest obligations. The significant drop in
Inventory Turnover Ratio from 3.3 to 1.18 raises concerns about inventory
management efficiency, potentially tying up more capital. On a positive note, the
Return on Net Worth has increased from 1.01 to 1.46, indicating enhanced
profitability relative to shareholders' equity. Strategic opportunities may lie in
capitalizing on improved solvency and profitability, while addressing challenges
in inventory management to optimize working capital. Additionally, a deeper
analysis of industry trends and market conditions could provide insights into
further strategic initiatives.

P a g e 29 | 59
 Ratio analysis
Return on Net worth
Inventory Turnover ratio
Interest Coverage Ratio
Current Ratio
Debt Equity Ratio
0 1 2 3 4 5 6

2017-18 2016-17

The financial ratios provided offer insights into the company's financial health
and performance over the 2016-17 and 2017-18 periods. The Debt Equity Ratio
has increased from 4.65 to 4.93, indicating a higher reliance on debt, which may
pose risks in terms of financial stability. The Current Ratio has slightly decreased
from 1.19 to 1.17, potentially indicating a tighter liquidity position. The Interest
Coverage Ratio has improved from 1.57 to 1.66, suggesting a marginal increase
in the company's ability to cover interest expenses. However, the Inventory
Turnover ratio has declined from 1.18 to 1.13, reflecting a slower rate of
inventory turnover, which could impact operational efficiency. On a positive
note, the Return on Net Worth has increased from 1.46 to 1.85, indicating
improved profitability in relation to shareholders' equity. In light of strategic
opportunities, the company may need to address its high debt levels and focus on
improving inventory management to enhance efficiency. Additionally, sustaining
the upward trend in Return on Net Worth is crucial for long-term value creation.

P a g e 30 | 59
The financial ratios for the years 2018-19 and 2017-18 provide insights into the
company's financial health and operational efficiency. The Debt Equity Ratio,
reflecting the proportion of debt used to finance assets, has improved from 4.93
in 2017-18 to 4.21 in 2018-19, indicating a potential reduction in financial
leverage. The Current Ratio, a measure of short-term liquidity, has remained
relatively stable at 1.16 and 1.17, suggesting the company's ability to meet its
short-term obligations has not significantly changed. The Interest Coverage Ratio
has shown a slight improvement from 1.66 to 1.73, indicating a modest
enhancement in the company's capacity to cover interest expenses with its
operating income. The Inventory Turnover Ratio has increased from 1.13 to 1.51,
implying a more efficient management of inventory. However, the Return on Net
Worth has seen a marginal increase from 1.85% to 2.11%, suggesting a modest
improvement in profitability. Overall, these ratios suggest a mixed financial
performance, with positive trends in debt management, liquidity, and operational
efficiency, but with room for further enhancement in profitability.

P a g e 31 | 59
Examining the financial ratios for the years 2019-20 and 2018-19 provides
insights into the company's financial performance and efficiency during this
period. The Debt Equity Ratio has increased from 4.15 in 2018-19 to 4.96 in
2019-20, suggesting a higher reliance on debt to finance assets. This could
potentially raise concerns about the company's financial leverage and ability to
meet long-term obligations. The Current Ratio has remained constant at 1.16,
indicating stability in the company's short-term liquidity. The Interest Coverage
Ratio has improved from 1.72 to 1.85, signalling an enhanced ability to cover
interest expenses with operating income. The Inventory Turnover Ratio has
increased from 2.7 to 3.31, reflecting more efficient management of inventory
during 2019-20. The Return on Net Worth has seen a modest improvement from
2.11% to 2.66%, indicating a slight increase in profitability. Overall, the company
has shown improvements in interest coverage, inventory turnover, and return on
net worth, but the increase in the Debt Equity Ratio warrants attention,
highlighting the importance of monitoring the company's leverage and financial
structure.

P a g e 32 | 59
Analysing the financial ratios for the years 2020-21 and 2019-20 provides
insights into the company's financial position and operational efficiency during
this period. The Debt Equity Ratio has increased from 4.96 in 2019-20 to 5.17 in
2020-21, indicating a higher reliance on debt for financing assets. This could raise
concerns about the company's financial leverage and ability to meet long-term
obligations. The Current Ratio has decreased from 1.16 to 1.05, signalling a
potential decrease in short-term liquidity. The Interest Coverage Ratio has
remained relatively stable at 1.84, indicating the company's ability to cover
interest expenses with operating income. The Inventory Turnover Ratio has
decreased from 3.31 to 2.97, suggesting a potential decrease in the efficiency of
inventory management. The Return on Net Worth has decreased from 2.66% to
2.00%, indicating a decline in profitability. Overall, the company faces
challenges in maintaining a balance between debt and equity, sustaining liquidity,
and optimizing inventory turnover, which may impact its financial performance
and profitability. Monitoring these ratios is crucial for assessing the company's
financial health and making informed decisions.

P a g e 33 | 59
Analysing the financial ratios for the years 2021-22 and 2020-21 sheds light on
the company's financial health and operational efficiency during this period. The
Debt Equity Ratio has decreased from 2.93 in 2020-21 to 2.91 in 2021-22,
suggesting a reduction in the company's reliance on debt for financing assets. This
can positively impact the company's financial stability and reduce the risk
associated with high debt levels. However, the Current Ratio has decreased from
0.38 to 0.43, indicating a potential decline in short-term liquidity, which could
raise concerns about the company's ability to meet its immediate obligations. The
Interest Coverage Ratio has slightly increased from 1.41 to 1.47, reflecting a
modest improvement in the company's ability to cover interest expenses with
operating income. The Inventory Turnover Ratio has seen a significant increase
from 34.47 to 54.89, signalling a substantial improvement in inventory
management efficiency. The Return on Net Worth has also increased from 2.00%
to 2.67%, indicating a positive trend in profitability. In summary, while the
reduction in the Debt Equity Ratio is favourable, attention should be given to the
decline in the Current Ratio, emphasizing the need for careful monitoring of
liquidity, despite positive trends in inventory turnover and return on net worth.

P a g e 34 | 59
Total income:

 Revenue from Operation:

2018-19: ₹20,483.97

2017-18: ₹18,923.02

The revenue from operations has increased, indicating potential growth or

increased sales.

 Other Revenues:

2018-19: ₹494.77

2017-18: ₹454.53

Other revenues have also increased, suggesting additional sources of income

apart from the core operations.

 Other Income:

2018-19: ₹608.75

2017-18: ₹474.72
P a g e 35 | 59
There is an increase in other income, which may include non-operating sources
such as investments, interest, or other financial activities.

 Movement in Regulatory Deferral Account Balances:

2018-19: ₹1,230.54

2017-18: ₹942.20

An increase in regulatory deferral account balances may be due to regulatory

changes, accounting adjustments, or changes in the economic environment.

 Total Income:

2018-19: ₹22,818.03

2017-18: ₹20,794.47

The total income has increased, reflecting the overall financial performance of
the entity.

In summary, the company or entity has experienced growth in revenue from

operations, other revenues, and other income. The movement in regulatory
deferral account balances suggests some financial adjustments. Overall, the total
income has increased, indicating positive financial performance between the two
fiscal years. However, a more in-depth analysis would require additional
information and context about the industry, expenses, and profitability.

P a g e 36 | 59
  Revenue from Operation:

2019-20: ₹22,261.25

2018-19: ₹20,483.97

There is an increase in revenue from operations, indicating potential growth or

improved sales performance.

 Other Revenues:

2019-20: ₹558.34

2018-19: ₹494.77

Other revenues have also increased, suggesting additional sources of income

apart from the core operations.

 Other Income:

2019-20: ₹1,022.33

2018-19: ₹608.75

P a g e 37 | 59
There is a substantial increase in other income, which may include non-operating
sources such as investments, interest, or other financial activities.

 Movement in Regulatory Deferral Account Balances:

2019-20: ₹1,230.54

2018-19: ₹1,230.54

The movement in regulatory deferral account balances remained constant

between the two years, suggesting consistent financial adjustments.

 Total Income:

2019-20: ₹25,072.46

2018-19: ₹22,818.03

The total income has increased, reflecting the overall financial performance of
the entity.

In summary, the company or entity has continued to experience growth in revenue

from operations, other revenues, and other income. The movement in regulatory
deferral account balances remained the same. The increase in total income
indicates positive financial performance and potentially improved operational
efficiency. However, a more comprehensive analysis would require additional
information and context about the industry, expenses, and profitability.

P a g e 38 | 59
  Revenue from Operation:

2020-21: ₹21,447.6

2019-20: ₹22,261.25

There is a slight decrease in revenue from operations, suggesting a potential

decrease in sales or economic challenges.

 Other Revenues:

2020-21: ₹549.24

2019-20: ₹558.34

Other revenues have slightly decreased.

 Other Income:

2020-21: ₹829.25

2019-20: ₹1,022.33

There is a decrease in other income, which may include non-operating sources

such as investments, interest, or other financial activities.

P a g e 39 | 59
  Movement in Regulatory Deferral Account Balances:

2020-21: ₹4,061.43

2019-20: ₹1,230.54

There is a significant increase in the movement in regulatory deferral account

balances, indicating substantial financial adjustments. This requires further
investigation to understand the nature of these adjustments.

 Total Income:

2020-21: ₹26,887.52

2019-20: ₹25,072.46

The total income has increased, suggesting that despite a decrease in certain
components, the overall financial performance of the entity has improved.

In summary, while there's a slight decrease in revenue from operations, other

revenues, and other income, the significant increase in the movement of
regulatory deferral account balances has contributed to a growth in total income.
It's essential to understand the reasons behind the changes in regulatory deferral
account balances and assess the overall impact on the company's financial health.
Additionally, further context about the industry, expenses, and profitability would
provide a more comprehensive analysis.

P a g e 40 | 59
  Revenue from Operation:

2021-22: ₹25,986.53

2020-21: ₹21,447.6

There is a significant increase in revenue from operations, indicating potential

growth or improved sales performance.

 Other Revenues:

2021-22: ₹680.52

2020-21: ₹549.24

Other revenues have also increased, suggesting additional sources of income

apart from the core operations.

 Other Income:

2021-22: ₹1,127.72

2020-21: ₹829.25

P a g e 41 | 59
There is an increase in other income, which may include non-operating sources
such as investments, interest, or other financial activities.

 Movement in Regulatory Deferral Account Balances:

2021-22: ₹-1,250.4

2020-21: ₹4,061.43

There is a significant decrease in the movement in regulatory deferral account

balances, indicating a reversal or reduction in financial adjustments. The negative
value suggests a decrease in regulatory deferral.

 Total Income:

2021-22: ₹26,544.37

2020-21: ₹26,887.52

The total income has slightly decreased, suggesting a potential impact of the
decrease in regulatory deferral account balances.

In summary, the company or entity has experienced a significant increase in

revenue from operations and other revenues. There is also an increase in other
income. However, the movement in regulatory deferral account balances has seen
a notable decrease, resulting in a slight decrease in total income. It's essential to
understand the reasons behind the changes in regulatory deferral account balances
and assess their impact on the company's overall financial health. Additionally,
further context about the industry, expenses, and profitability would provide a
more comprehensive analysis.

P a g e 42 | 59
Total expense:

 Power Purchase Cost including Transmission Charges:

There is an increase from INR 16,139.9 crore in 2017-18 to INR 18,232.03 crore
in 2018-19.

This increase might be due to higher power generation costs, increased

consumption, or changes in the pricing of power.

 Employee Cost:

There is a slight decrease in employee costs from INR 956.74 crore in 2017-18
to INR 902.57 crore in 2018-19.

This could be due to cost-cutting measures, changes in the workforce, or

efficiency improvements.

 Interest & Finance Charges:

The interest and finance charges have decreased from INR 1,542.83 crore in
2017-18 to INR 1,446.6 crore in 2018-19.

P a g e 43 | 59
This reduction may indicate a more favourable financing environment, lower
debt, or efficient financial management.

 Depreciation:

Depreciation costs have remained relatively stable, with a marginal decrease from
INR 927.5 crore in 2017-18 to INR 926.41 crore in 2018-19.

 Other Expenses:

Other expenses have increased from INR 1,170.28 crore in 2017-18 to INR
1,242.7 crore in 2018-19.

These expenses could include various operational costs, and the increase may
warrant further investigation to understand the reasons behind it.

 Total Expenses:

The total expenses for WBSEDCL have increased from INR 20,737.25 crore in
2017-18 to INR 22,750.31 crore in 2018-19.

This overall increase in expenses indicates that the cost of operations has risen
during the specified period.

In summary, the analysis suggests that while some costs have increased, others
have decreased or remained stable. It would be essential for WBSEDCL to further
investigate the reasons behind these changes to ensure efficient financial
management and sustainability. External factors such as changes in energy
market prices, regulatory environment, or infrastructure investments may also
contribute to these financial trends.

P a g e 44 | 59
  Power Purchase Cost including Transmission Charges:

There is an increase in power purchase costs from INR 18,232.03 crore in 2018-
19 to INR 20,148.38 crore in 2019-20.

This rise could be attributed to increased demand for electricity, changes in

energy prices, or alterations in the power generation mix.

 Employee Cost:

Employee costs have significantly increased from INR 902.57 crore in 2018-19
to INR 2,163.32 crore in 2019-20.

Such a substantial increase may be due to hiring more employees, salary

adjustments, or changes in employee benefits.

 Interest & Finance Charges:

Interest and finance charges have slightly increased from INR 1,446.6 crore in
2018-19 to INR 1,456.09 crore in 2019-20.

The marginal increase suggests a relatively stable financial structure and

borrowing costs.

P a g e 45 | 59
  Depreciation:

Depreciation costs have increased from INR 926.41 crore in 2018-19 to INR
979.32 crore in 2019-20.

This increase may be due to additional capital expenditures or the depreciation of

new assets.

 Other Expenses:

Other expenses have increased from INR 1,242.7 crore in 2018-19 to INR
1,387.66 crore in 2019-20.

Further analysis is needed to identify the specific factors contributing to this

increase.

 Total Expenses:

The total expenses have increased from INR 22,750.31 crore in 2018-19 to INR
26,134.77 crore in 2019-20.

This overall increase in expenses indicates a higher cost of operations during the
specified period.

In summary, the analysis suggests that WBSEDCL has experienced increases in

various expense categories, notably in power purchase costs, employee costs,
depreciation, and other expenses. It's essential for the company to investigate the
reasons behind these increases and consider strategies to manage costs effectively
while ensuring the reliability and sustainability of its operations. External factors
such as regulatory changes, market dynamics, and infrastructure investments may
also influence these financial trends.

P a g e 46 | 59
  Power Purchase Cost including Transmission Charges:

There is an increase in power purchase costs from INR 20,148.38 crore in 2019-
20 to INR 21,253.21 crore in 2020-21.

This rise could be attributed to increased demand for electricity, changes in

energy prices, or alterations in the power generation mix.

 Employee Cost:

Employee costs have decreased from INR 2,163.32 crore in 2019-20 to INR
1,498.33 crore in 2020-21.

This reduction might be due to cost-cutting measures, workforce optimization, or

changes in employee-related expenses.

 Interest & Finance Charges:

Interest and finance charges have increased from INR 1,456.09 crore in 2019-20
to INR 1,594.04 crore in 2020-21.

The increase may be influenced by changes in borrowing costs, debt levels, or

other financial strategies.

P a g e 47 | 59
  Depreciation:

Depreciation costs have increased from INR 979.32 crore in 2019-20 to INR
1,084.69 crore in 2020-21.

This could be due to additional capital expenditures or the depreciation of new

assets.

 Other Expenses:

Other expenses have remained relatively stable, with a slight decrease from INR
1,387.66 crore in 2019-20 to INR 1,387.16 crore in 2020-21.

 Total Expenses:

The total expenses have increased from INR 26,134.77 crore in 2019-20 to INR
26,817.43 crore in 2020-21.

This indicates a marginal overall increase in expenses, influenced by changes in

multiple cost categories.

In summary, the analysis suggests that while power purchase costs have
increased, there are variations in other expense categories. Employee costs have
decreased, interest and finance charges have increased, depreciation costs have
risen, and other expenses have remained stable. It's important for WBSEDCL to
further investigate these changes to understand the underlying reasons and
implement effective financial management strategies. External factors such as
market conditions, regulatory changes, and operational efficiency initiatives may
also impact these financial trends.

P a g e 48 | 59
  Power Purchase Cost including Transmission Charges:

There is a decrease in power purchase costs from INR 21,253.21 crore in 2020-
21 to INR 20,122.36 crore in 2021-22.

This could be influenced by changes in energy prices, improvements in energy

efficiency, or adjustments in the power generation mix.

 Employee Cost:

Employee costs have increased from INR 1,498.33 crore in 2020-21 to INR
1,700.3 crore in 2021-22.

The increase may be due to factors such as salary adjustments, hiring, or changes
in employee benefits.

 Interest & Finance Charges:

Interest and finance charges have increased from INR 1,594.04 crore in 2020-21
to INR 1,776.51 crore in 2021-22.

This rise may be influenced by changes in borrowing costs, debt levels, or other
financial strategies.

P a g e 49 | 59
  Depreciation:

Depreciation costs have increased from INR 1,084.69 crore in 2020-21 to INR
1,207.35 crore in 2021-22.

This could be due to additional capital expenditures or the depreciation of new

assets.

 Other Expenses:

Other expenses have increased from INR 1,387.16 crore in 2020-21 to INR
1,645.23 crore in 2021-22.

Further analysis is needed to identify the specific factors contributing to this

increase.

 Total Expenses:

The total expenses have decreased from INR 26,817.43 crore in 2020-21 to INR
26,451.75 crore in 2021-22.

This indicates a marginal overall decrease in expenses, driven by reductions in

power purchase costs, despite increases in other expense categories.

In summary, the analysis suggests a mixed trend in various expense categories.

While power purchase costs have decreased, employee costs, interest and finance
charges, depreciation, and other expenses have increased. The overall total
expenses have seen a marginal decrease, indicating a complex interplay of factors
affecting the financial performance of WBSEDCL during these periods. Further
investigation and context-specific analysis would be required to understand the
specific drivers behind these changes.

P a g e 50 | 59
Sources of income:

Sources of income (2014-15)

Revenue from Operations

Other Operating Revenue

Other Income

In the fiscal year 2014-15, the company reported a total Revenue from Operations
of 16920.76 crore, indicating a substantial income from its core business
activities. The supplementary revenue from Other Operating Revenue amounted
to 519.58 crore, suggesting diversification or additional streams of income
beyond primary operations. Moreover, the company demonstrated financial
strength with a significant Other Income of 1997.52 crore, reflecting earnings
from non-operational activities such as investments or asset sales. The Movement
in Regulatory Deferral account balances, totalling 145.48 crore, may indicate
adherence to regulatory requirements and potential impacts on future financial
performance. Strategically, the company seems to be focused on not only
optimizing its core business but also exploring ancillary revenue sources and
managing regulatory compliance effectively. This diversification and financial
prudence could be part of a broader strategy to enhance resilience and navigate
dynamic market conditions.

P a g e 51 | 59
 Sources of income(2015-16)

Revenue from Operations

Other Operating Revenue

Other Income

In the fiscal year 2015-16, the company reported a robust financial performance
with a Revenue from Operations of ₹15,813.92 crore, showcasing a strong core
business. The addition of Other Operating Revenue amounting to ₹417.5 crore
and Other Income of ₹271.52 crore contributed to the overall income
diversification. Notably, the Movement in Regulatory Deferral account balances
reflected a substantial amount of ₹2,135.63 crore, indicating the impact of
regulatory changes on the financials. Analysing these figures in light of strategic
trends, it appears that the company's financial health was not solely dependent on
its core operations, as it managed to generate significant revenue from other
sources. This diversification strategy could be a deliberate effort to mitigate risks
and enhance overall resilience in a dynamic business environment, showcasing a
strategic foresight in managing the financial portfolio. Additionally, the
movement in regulatory deferral account balances suggests a responsiveness to
regulatory changes, aligning with a proactive approach to compliance and risk
management.

P a g e 52 | 59
 Sources of income(2016-17 )

Revenue from Operations

Other Operating Revenue
Other Income
Movement in Regulatory Deferral account balances

In the fiscal year 2016-17, the company reported a total Revenue from Operations
of 17,878.88 crore, indicating its core business performance. The substantial
contribution from Other Operating Revenue (472.76 crore) and Other Income
(336.24 crore) suggests a diversified income stream, showcasing a strategic
approach to revenue generation beyond primary operations. The Movement in
Regulatory Deferral account balances, amounting to 1,243.8 crore, highlights the
impact of regulatory considerations on the financials. This data reflects a strategic
awareness of the regulatory environment, and managing deferral account
balances indicates a proactive approach to compliance and financial planning.
Companies with a diverse revenue mix and a strategic response to regulatory
dynamics are better positioned for long-term sustainability and adaptability in a
dynamic business landscape.

P a g e 53 | 59
 Sources of income(2017-18)

Revenue from Operations

Other Operating Revenue
Other Income
Movement in Regulatory Deferral account balances

In the fiscal year 2017-18, the company reported a total revenue of 18,923.02
crore, with additional income streams including 454.53 crore from other
operating revenue and 474.72 crore from other income. Notably, the movement
in regulatory deferral account balances accounted for 942.2 crore. This financial
snapshot suggests a diversified income portfolio for the company, indicating a
strategic focus on multiple revenue streams. The significant contribution from
regulatory deferral accounts might imply the company's engagement in industries
or sectors subject to regulatory mechanisms, possibly necessitating a careful
strategic approach to navigate regulatory landscapes. The detailed breakdown of
revenue sources provides insights into the company's financial resilience and
strategic adaptability in response to varying market conditions and regulatory
environments during the specified period. Understanding and optimizing these
revenue components could be crucial for the company's strategic planning and
sustained growth in the future.

P a g e 54 | 59
In the fiscal year 2018-19, the West Bengal State Electricity Distribution
Company Limited (WBSEDCL) generated a significant portion of its revenue,
approximately 89.75, from the sale of energy. This revenue is a key indicator of
the company's core operational activities in distributing electricity to consumers.
Additionally, the company earned 2.17 in other operating revenue, reflecting
income from various non-energy sources related to its operational activities. The
movement in the Regulatory Deferral Account balance amounted to 5.41,
indicating adjustments in deferred regulatory charges or credits. Other income,
totalling 2.67, contributed to the overall financial picture, encompassing revenues
beyond the core business operations. The diversification of income sources, as
evidenced by other operating revenue and other income, suggests a strategic
approach to financial sustainability. Overall, this financial snapshot indicates a
multifaceted revenue stream for WBSEDCL, with a substantial reliance on
energy sales, complemented by supplementary sources of income and regulatory
adjustments.

P a g e 55 | 59
In the fiscal year 2019-20, the West Bengal State Electricity Distribution
Company Limited (WBSEDCL) experienced a diverse financial performance.
The revenue from the sale of energy remained a significant contributor at 84.9,
albeit slightly lower than the previous fiscal year. This suggests a stable reliance
on electricity sales as a primary source of income. Other operating revenue and
movement in the Regulatory Deferral Account balance were reported at 2.13 and
3.9, respectively, reflecting supplementary income and adjustments in deferred
regulatory charges or credits. Notably, the company saw a substantial increase in
other income, rising to 9.07. This significant uptick in other income indicates a
more diversified revenue stream, potentially stemming from non-operational or
one-time financial activities. The overall financial landscape for WBSEDCL in
2019-20 appears dynamic, with a combination of core energy sales, additional
operating revenue, regulatory adjustments, and notably increased income from
other sources, showcasing adaptability and financial resilience.

P a g e 56 | 59
In the fiscal year 2020-21, the West Bengal State Electricity Distribution
Company Limited (WBSEDCL) demonstrated a financial profile marked by
certain distinctive trends. While the revenue from the sale of energy remained
substantial at 79.77, it exhibited a decrease compared to the previous year,
possibly influenced by various economic factors or changes in consumption
patterns. Other operating revenue and movement in the Regulatory Deferral
Account balance were reported at 2.04 and 15.1, respectively. The significant
increase in the Movement in Regulatory Deferral Account balance implies
notable adjustments in deferred regulatory charges or credits, reflecting the
regulatory dynamics impacting the company during the period. Other income
stood at 3.08, indicating a moderate contribution from non-operational or
supplementary sources. Overall, the financial data for 2020-21 suggests a
potential shift in the revenue composition, with a slight reduction in energy sales
revenue, a substantial increase in regulatory adjustments, and a relatively stable
contribution from other operating revenue and additional income sources. This
financial landscape may be reflective of both external economic conditions and
the company's response to regulatory changes.

P a g e 57 | 59
In the fiscal year 2021-22, the West Bengal State Electricity Distribution
Company Limited (WBSEDCL) witnessed a notable increase in its financial
performance. Revenue from the sale of energy surged to 97.9, showcasing a
substantial uptick compared to the preceding year. This growth suggests
increased energy consumption or potentially favourable market conditions. Other
operating revenue and the Movement in Regulatory Deferral Account balance
were reported at 2.56 and 4.71, respectively. While other operating revenue
remained relatively stable, the Movement in Regulatory Deferral Account
balance indicated ongoing adjustments in deferred regulatory charges or credits,
albeit at a lower level than the previous fiscal year. Other income amounted to
4.25, contributing to the overall financial picture. The significant rise in energy
sales revenue signifies a robust core operational performance, while the diverse
sources of income, including regulatory adjustments and other revenue streams,
reflect a well-rounded financial strategy. This positive trajectory in revenue
suggests that WBSEDCL effectively navigated market conditions and regulatory
dynamics in the fiscal year 2021-22, positioning itself for continued financial
stability and growth. (WBSEDEL, n.d.)

P a g e 58 | 59
 CONCLUSION
In conclusion, the fiscal year 2021-22 marked a notable success for the West
Bengal State Electricity Distribution Company Limited (WBSEDCL). The
substantial increase in revenue from the sale of energy, reaching 97.9, indicates a
robust core operational performance, potentially driven by increased energy
consumption and favourable market conditions. The stability in other operating
revenue and the lower but still significant Movement in Regulatory Deferral
Account balance reflect the company's adept management of deferred regulatory
charges or credits. Furthermore, the contribution of 4.25 from other income adds
to the overall positive financial outlook. This collective evidence suggests that
WBSEDCL not only effectively navigated market conditions but also
demonstrated a well-rounded financial strategy, positioning itself for continued
stability and growth in the future. The fiscal year's financial performance
underscores the company's resilience and adaptability within the dynamic energy
sector.

P a g e 59 | 59