A SUMMER INTERNSHIP PROJECT REPORT

ON

“WORKING AND ANALYSIS OF COMMERCIAL

CREDIT”

Submitted To

MITTAL SCHOOL OF BUSINESS

In partial fulfillment of the requirements for the award of degree

Of

Master of Business Administration

Submitted By:

Sahil Gakhar

12204276

MITTAL SCHOOL OF BUSINESS

LOVELY PROFESSIONAL UNIVERSITY

2023-2024

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REPORT ON THE FIELD PROJECT

Master of Business Administration

LOVELY PROFESSIONALUNIVERSITY DEPARTMENT OF
MANAGEMENT

Submitted to Lovely Professional University

In partial fulfillment of the Requirements for the award of Degree of

Master of Business Administration

SUBMITTED BY
Sahil Gakhar
12204276

DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
JALANDHAR NEW DELHI GT ROAD, PHAGWARA PUNJAB

DECLARATION

I, Sahil Gakhar, hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere. Any literature, data or
work done by others and cited in the report has been given due acknowledgement and listed
in the reference section.

Date: 02/11/2024

ACKNOWLEDGEMENT

I have made efforts to write this report. 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 would like to express my gratitude towards my parents & members of “LOVELY

PROFFESIONAL UNIVERSITY” for their kind co-operation and encouragement which help
me in completion of this project.

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I would like to express my special gratitude to ‘’Akhil Khurana’’ for his support and guidance
at WNS GLOBAL SERVICES.

THANK YOU

CONTINUOUS ASSESSMENT (CA) for INTERNSHIP/OJT

Name of the student:
Registration Number Internship:
Project Title:
Name of Organization & Address:
Name of External Internship in-charge (with mobile number):
Contact No.:

Sr. No Parameters Maximum Marks Marks Obtained

1 Conduct of the student during 15
OJT
2 Interpersonal Skills 15
3 Technical Skills 20
4 Project 40
Performance/Assignments
5 Punctuality 10
Attendance
No. of Working Days No. of Days student was Present

Date_____________________
Name and Designation________________
Authority Signatory with Company’s Stamp_________________

Note: (This sheet filled by external internship in-charge from WNS and sent to LPU)

The feedback form that is to be uploaded along with the internship project report on the portal
will be shared by the WNS official, Mrs. Amrita Justin, directly with LPU. As per their company
Policy.

Undertaking by the student for submitting Final Certificate of Internship/OJT

Reg. No.: 12204276 Student Name: Sahil Gakhar

Program Name: MBA Batch Year: 2022-24
Course Code: MGNM577/729 Mobile No:8295959533

I fully understand that I have been provisionally allowed to appear for the ETP viva as I am
not able to produce my internship certificate either due to company constraints or my
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internship is still going on. Further, I assure to produce the same latest by 31/07/2024 till
which the result of my ETP viva shall stand I grade.
I am also aware that if I am unable to submit the training certificate till the above-mentioned
date, my ETP viva may be deemed cancelled, and I may be awarded an R grade.

EXECUTIVE SUMMARY

Commercial credit is a versatile financial instrument extended to companies, enabling them

to access a predetermined sum to cover their operational expenses. It serves as a crucial
resource for businesses to fulfill their working capital needs, acquire assets, and facilitate
capital investments. The interest levied on commercial credit is based solely on the amount
utilized by the company. For instance, if a company is approved for a credit line of $100,000
but only utilizes $50,000, it incurs interest solely on the utilized amount ($50,000).
Conversely, if the company utilizes the entire approved amount, it pays interest on the full
$100,000. This flexibility allows companies to borrow only what they need and pay interest
accordingly.

Commercial credit can be categorized as either secured or unsecured. Secured commercial

credit is backed by collateral, such as accounts receivable, inventory, or tangible assets. In the
event of default, the lender has the right to seize the collateral and liquidate it to recover the
outstanding balance. On the other hand, unsecured commercial credit lacks collateral but
typically requires a personal guarantee from the company's owner or another party. Due to
the higher risk associated with unsecured credit, companies must demonstrate a robust credit
history and financial stability to qualify. Consequently, the approved limit for unsecured
commercial credit is usually lower, accompanied by a higher interest rate.

TABLE OF CONTENTS

SR.NO CONTENT PAGE NO.

1. DECLARATION/ACKNOWLWDGEMENT 3

2. EXECUTIVE SUMMARY 4
3. PART-1 7-30

INTRODUCTION
-HISTORY
-MISSION
-VALUES
-PRODUCT & SERVICES
-COMPETITORS
- ORGANISATIONAL STRUCTURE
- SWOT ANALYSIS
- FINANCIAL ANALYSIS

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4. NEED OF STUDY/OBJETIVE 31
RESEARCH METHODOLOGY

5. STUDY OF NON-PAYMENTS OF DEBT IN INDIA 32-46

6. CONCLUSION 47
REFERENCES 48

7. PART 2: My Role in Internship 49-50

PART - 1
INTRODUCTION

WNS History:
WNS took wings as a captive for British Airways in 1996. In 2003, we began offering
Business Process Management (BPM) solutions to clients from different industries as well.
We grew by taking a judicious mix of organic and inorganic growth initiatives.

Some of the major acquisitions were:

– Town & Country Assistance Limited (now called WNS Assistance), a UK-based
automobile claims handling company
– Health claims management business of Greensnow Inc.
– Trinity Partners Inc., a provider of BPM services to financial institutions, focusing on
mortgage banking
– Marketics, a provider of offshore analytics services
– BizAps, a provider of Systems Applications and Products, or SAP®, solutions to optimize
the enterprise resource planning functionality for our finance and accounting processes
2012 – Fusion, a South Africa-based provider of a range of outsourcing services now known
as WNS Global Services SA (Pty) Ltd.
– Value Edge Research Services Pvt. Ltd., a leading provider of commercial research and
analytics services to clients in the Pharma / Biopharma industry.
– Denali Sourcing Services (Denali), a leading provider of strategic procurement BPM
solutions.
2017 – Health Help, Adds Industry-Leading Capability in Health Care Management. In July
2006, we became one of the earliest BPM companies to be listed on the New York Stock
Exchange (NYSE) under the symbol ‘WNS’, and a new, energized entity took root. The BPM
landscape changed dramatically over the next few years. To align with those disruptive
changes, in 2010 we took a vertical approach to BPM. Everything from our offerings in
technology and analytics to our training initiatives were closely connected with industry
specific expertise and needs. The collaborative approach we brought in made WNS an
extended part of our clients’ businesses.
Over the years, WNS has become a top-tier consultative player, co-creating end-to-end, high-
end, industry-specific technology and analytics-enabled solutions with clients. Our offerings
span over 10 industries and clients look to us for our innovative practices and ability to co-

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create new business models. Today, WNS is the strategic partner to hundreds of clients,
engaging deeply and constantly finding ways to better business outcomes.
About the Company

Figure-2

WNS Limited is a global business process management company headquartered in Mumbai,

India. It is a leading business Process Management Company. WNS enable businesses in
Travel, Insurance, Banking and Financial Services, Manufacturing, Retail and Consumer
Packaged Goods, Shipping and Logistics, Healthcare, and Utilities to re-imagine their digital
future and transform their outcomes with operational excellence.
They deliver an entire spectrum of BPM services in finance and accounting, procurement,
customer interaction services and human resources leveraging collaborative models that are
tailored to address the unique business challenges of each client. WNS co-create and execute
the future vision of 380+ clients with the help of our 43,000+ employees. Their global

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footprint spans 16 countries with 58 delivery centers worldwide including in China, Costa
Rica, India, the Philippines, Poland, Romania, South Africa, Spain, Sri Lanka, Turkey,
United Kingdom and the United States.
Type: Public
Industry: Business Process Management, Outsourcing, IT Consulting
Traded As: NYSE: WNS
CEO: Keshav R. Murugesh
Chairman: Adrian T. Dillon
Founded: 1996
Revenue: 912.6 million USD (2020-21)
Headquarters: Mumbai, India
Area Served: Worldwide
Founders: British Airways, Neeraj Bhargava
Number of Employees: 43,997 (2021)
Website: https://www.wns.com/

MISSION
Co- creating brand differentiation for our clients and enabling them to outperform with our
passion for services and innovation is our singular mission.
Outperformance is the game- changing difference between survival and dramatic growth for
companies across every industry, globally. The key catalyst for “outperformance” is the
ability to co- create high- impact solutions with clients, thus enabling their brand
differentiation.
Co-creation is the simple act of uniting the best of all worlds. We align our operational
excellence, domain knowledge, analytics and technology capabilities with the vision, goals,
and experiences of our clients so that they are front runners in a disruptive world.
Co- creation is in our dna. It’s core to everything we do. We go beyond client / customer
service. We collaborate with them to co- create outcomes that make them stay ahead of the
curve. We go beyond merely hiring the best talent. We work with them to co-create their
career paths and help them become future- ready. We go beyond the traditional realms of our
client’s engagement to co-cate exciting business models and innovations.

VALUES
Our mission is guided by our set of values, the CIRCLE.
 Client First
Place clients at the core of everything we do.
 Integrity
Be ethical, honest, and committed in all actions.
 Respect
Be sensitive to individual differences and treat everyone with dignity.
 Collaboration
Always keep “One WNS “as uppermost in everything we do.
 Learning
Learn from our experience; share knowledge and best practices to create innovative
solutions.

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 Excellence
Strive for excellence in everything we do and aspire to outperform of every stage.

Products & Services:

WNS Global Services is engaged in providing offshore business process outsourcing
services. The key services of the company are:

 Business Process Outsourcing (BPO) services

 Data services
 Voice services
 Analytical services
 Client’s processing services
These services, WNS bifurcated into two sections i.e., Industry Focused Solutions and Cross
Industry Solutions.

BUSINESS STRATEGY OF WNS

Expansion and re-organization of our sales force and the development of onshore digital
transformation teams, so as to be closer to our clients and address their business challenges
and needs;
Expansion of other sales channels including the development of new partnerships and
alliances, and broadening our engagement with industry advisors and analysts;
Increase in the range of services and solutions offered to our clients across different industries
and business functions, including services to assess, design and execute digital
transformations such as:
Building industry-specific and cross-industry digital BPM solutions, and augmenting our
digital capabilities through strategic partnerships and targeted acquisitions;
Building our digital transformation capabilities including digital business solutions,
hyperautomation, intelligent automation, customer/user experience and design, technology,
and data and analytics capabilities through new talent, internally developed intellectual
property, strategic partnerships and acquisitions; and

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Applying agile practices and approaches and our WNS Co-creation Labs (London, New
York, Pune) to support the design and delivery of our customer experience services,
including the use of targeted operating model design, CoE or shared services approaches,
business transformation assessments, solutions and execution, customer experience, and user
experience and design thinking.
Increasing expertise, management and digital capability of our workforce;
Expansion of our global delivery platform; and
Focused strategic acquisitions to improve our capabilities.

HUMAN CAPITAL of WNS:

As at March 31, 2021, we had 43,997 employees, of whom 28,545 are based in India, 8,374
are based in the Philippines, 3,586 are based in South Africa, 993 are based in the US, 872
are based in Sri Lanka, 438 are based in China, 393 are based in the UK, 341 are based in
Romania, 140 are based in Spain, 128 are based in Poland, 95 are based in Costa Rica, 31 are
based in Australia, 22 are based in Turkey, 14 are based in Germany, 14 are based in France,
six are based in Singapore, two are based in Switzerland, and three are based in the United
Arab Emirates. Most of our associates hold university degrees. As at March 31, 2020, we had
44,292 employees. Our employees are not unionized. We believe that our employee relations
are good. We focus heavily on recruiting, training and retaining our employees.

MAJOR SHARE HOLDERS

The following table sets forth information regarding beneficial ownership of our ordinary
shares as at March 31, 2021 held by each person who is known to us to have a 5.0% or more
beneficial share ownership based on an aggregate of 49,402,203 ordinary shares outstanding
as at that date. Beneficial ownership is determined in accordance with the rules of the
Commission and includes shares over which the indicated beneficial owner exercises voting
and/or investment power or receives the economic benefit of ownership of such securities.
Ordinary shares subject to options currently exercisable or exercisable within 60 days are
deemed outstanding for the purposes of computing the percentage ownership of the person
holding the options but are not deemed outstanding for the purposes of computing the
percentage ownership of any other person.

SWOT ANALYSIS OF WNS

STRENGTHS
High level of customer satisfaction – the company with its dedicated customer relationship
management department has able to achieve a high level of customer satisfaction among
present customers and good brand equity among the potential customers.
Strong distribution network – Over the years WNS (Holdings) Ltd. has built a reliable
distribution network that can reach majority of its potential market.
Strong Brand Portfolio – Over the years WNS (Holdings) Ltd. has invested in building a
strong brand portfolio. The SWOT analysis of WNS (Holdings) Ltd. just underlines this fact.
This brand portfolio can be extremely useful if the organization wants to expand into new
product categories.
Strong Free Cash Flow – WNS (Holdings) Ltd. has strong free cash flows that provide
resources in the hand of the company to expand into new projects.

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Highly skilled workforce through successful training and learning programs. WNS
(Holdings) Ltd. is investing huge resources in training and development of its employees
resulting in a workforce that is not only highly skilled but also motivated to achieve more.
Successful track record of developing new products – product innovation.
Successful track record of integrating complimentary firms through mergers & acquisition. It
has successfully integrated number of technology companies in the past few years to
streamline its operations and to build a reliable supply chain.
Good Returns on Capital Expenditure – WNS (Holdings) Ltd. is relatively successful at
execution of new projects and generated good returns on capital expenditure by building new
revenue streams.
WEAKNESS
Not very good at product demand forecasting leading to higher rate of missed opportunities
compare to its competitors. One of the reasons why the days inventory is high compare to its
competitors is that WNS (Holdings) Ltd. is not very good at demand forecasting thus end up
keeping higher inventory both in-house and in channel.
Investment in Research and Development is below the fastest growing players in the industry.
Even though WNS (Holdings) Ltd. is spending above the industry average on Research and
Development, it has not been able to compete with the leading players in the industry in
terms of innovation. It has come across as a mature firm looking forward to bring out
products based on tested features in the market.
Financial planning is not done properly and efficiently. The current asset ratio and liquid
asset ratios suggest that the company can use the cash more efficiently than what it is doing at
present.
The profitability ratio and Net Contribution % of WNS (Holdings) Ltd. are below the
industry average.
There are gaps in the product range sold by the company. This lack of choice can give a new
competitor a foothold in the market.

The marketing of the products left a lot to be desired. Even though the product is a success in
terms of sale but its positioning and unique selling proposition is not clearly defined which
can lead to the attacks in this segment from the competitors.
Need more investment in new technologies. Given the scale of expansion and different
geographies the company is planning to expand into, WNS (Holdings) Ltd. needs to put more
money in technology to integrate the processes across the board. Right now, the investment in
technologies is not at par with the vision of the company.

OPPORTUNITIES
Government green drive also opens an opportunity for procurement of WNS (Holdings) Ltd.
products by the state as well as federal government contractors.
Economic uptick and increase in customer spending, after years of recession and slow growth
rate in the industry, is an opportunity for WNS (Holdings) Ltd. to capture new customers and
increase its market share.
Organization’s core competencies can be a success in similar another products field. A
comparative example could be - GE healthcare research helped it in developing better Oil
drilling machines.
New customers from online channel – Over the past few years the company has invested vast
sum of money into the online platform. This investment has opened new sales channel for
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WNS (Holdings) Ltd. In the next few years, the company can leverage this opportunity by
knowing its customer better and serving their needs using big data analytics.
The market development will lead to dilution of competitor’s advantage and enable WNS
(Holdings) Ltd. to increase its competitiveness compare to the other competitors.
New trends in the consumer behaviour can open up new market for the WNS (Holdings) Ltd.
It provides a great opportunity for the organization to build new revenue streams and
diversify into new product categories too.

Management Team

1. Keshav Murugesh: - Keshav Murugesh serves as Group Chief Executive Officer

and Member of the Board of Directors of WNS. Based in Mumbai, Keshav is responsible for
executing the business strategy, and directing the overall performance and growth of the
organization. He is a member of The Wall Street Journal (WSJ) CEO Council and has been
the Chairman of NASSCOM* for 2019-2020. He was also the Chairman of the NASSCOM
Consumer Interest Protection Task Force. Keshav is a Member on the Board of WNS Cares
Foundation that focuses on community-related projects, especially education for lesser-
privileged children in WNS locations globally. Prior to WNS, he has held several leadership
positions in global companies, including President and CEO, Syntel Inc. and ITC Ltd. (an
affiliate of BAT Plc). Keshav is a social evangelist, who introduced the first-ever Cyber
Crime educational series for the Mumbai Police through WNS and Nasscom. He was the
founder Chairman of Students in Free Enterprise (SIFE) India, now known as Enactus, a
global organization involved in educational outreach projects in partnership with businesses.
He is a Fellow of The Institute of Chartered Accountants of India and a recipient of the
prestigious Chartered Accountants Business Achiever award, 2013. He has been honored as
an 'Outstanding CEO' at the Asia Pacific Entrepreneurship Awards, 2015. He has also won
the coveted 'India Disruptor of the Year' award at the CNBC-TV18 India Business Leader
Awards, 2018.
2. Gautam Barai: - Gautam Barai is the chief operating officer and is responsible for
the entire gamut of operations. Client Relations, Technology and Capability creation across
the organization. He began his tenure at WNS leading operations for the AVIVA business in
2009 and was instrumental in growing the Insurance practice at WNS before becoming the
business unit leader for Banking & Financial Services, Insurance, and healthcare. He recently
held the post of chief Business officer at WNS. He is also a member of the “WNS Executive
Management Council” Prior to joining WNS, Gautam was senior vice president – Business
Executive Operations at Bank of America, Prior to bank of America, he served an SVP &
head of BPO at countrywide financial corporation leading in both India and Costa Rica. He
holds MBAs from Columbia University and London Business School.
3. Sanjay Puria: - Sanjay Puria is the chief financial officer and leads the global
finance and information Technology functions. He is a member of the WNS Executive
Management Council. A large part of Sanjay’s experience has been in th offshore services
industry. Sanjay has held several leadership positions within WNS in the finance function. He
is a Chartered Accountant (CA) from the Institute of Chartered Accountants of India and a
certified public Accountant (CPA) from the American Institute of Certified Public
Accountants.
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4. R. Swaminathan: - R. Swaminathan (Swami) is responsible for the entire gamut
of people – oriented operations. He is a member of the “WNS Executive Management
Council” prior to WNS. Swami has held leadership positions at CA Technologies, he was the
head of HR at Syntel and has helmed diverse roles at GE spanning operations and sales. He is
a change management coach and a keen practitioner of six sigma. Swami has a master’s
degree in social work from the university of Madras.
5. Deepak Gupta: - Deepak Gupta is responsible for executing business strategy and
driving the overall growth and performance of key business units including Retail, Consumer
Packaged Goods and Telecom. He is also Global Capability and practice leader for customer
interaction services and manages the WNS south and has held several leadership positions
within WNS prior to WNS, he was with IBM Daksh Deepak comes with a strong expertise in
travel and tourism and has a degree in hospitality management.
6. Sanjay Jain: - Sanjay Jain supports the organization and clients in large and
transformative deals. He is a member of the WNS executive management council and assets
with the development and positioning of new capabilities and technologies prior to WNS.
Sanjay was the founding partner of several technology start- ups. Sanjay holds an engineering
degree in Electronics and communication from Delhi University.
7. Pervez working boxwalla: - Pervez working boxwalla is responsible for
enterprise risk management, business continuity management, information security and data
privacy. Operational risk management, Sarbanes Oxley compliance and group internal audit.
He has been with WNS for more than a decade, and prior to this, he was with Andersen
Consulting Pervez is a Chartered Accountant (CA) from the institute of chartered accountants
of India.
8. Gopi Krishnan: - Gopi Krishnan has decades of experience as an in-house
counsel, primarily in the IT industry. He is a member of the WNS Executive Management
Council. Gopi provides legal and regulatory advice to the board of directors and senior
management oversees the company’s customer and vendor contracts, dispute resolution,
mergers & acquisitions, and area around employment law. He has held several leadership
positions in Infosys. IBM and corporate law firms. He is an alumnus of the national law
school of India university.

Thought from CEO: -

The Mantra for Outperformance
Keshav defines what outperforming organizations do to stay ahead of the curve, and how
WNS, being an integral part of their ecosystem, drive successful solutions and outcomes.

 Co-creating Lives Through Education: -

 Our Corporate Social Responsibility (CSR) program, driven through WNS Cares
Foundation (WCF), advances our mission to Educate, Empower, and Enrich lesser privileged
communities as we work to make a difference around the world. We believe the future of a
nation must be built on the strong foundation of education. As a result, CSR at WNS revolves
around co-creating with the community to offer quality education to the young and
underprivileged. WCF reaches out to the less fortunate in Costa Rica, India, the Philippines,
Romania, South Africa, Sri Lanka, U.K., and U.S.

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 Backed by the senior leadership at WNS, WCF helps employees and clients channel
their passion for community service into a concrete platform for change and hope. WCF is an
example of how we are constantly finding ways to collaborate and co-create with all our
stakeholders. Our program reflects the WNS core values of learning and sharing knowledge,
our focus on co-creation, and our drive towards excellence in everything we do. It’s a
tangible example of a work environment that encourages passion and innovation.

 What makes WNS tick: -

Empowered by our key differentiators in domain expertise, and cutting-edge technology and
analytics, we co-create impactful solutions with our clients to enable them to outperform
market conditions.

 What our clients say about us: -

 For WNS, every client relationship is a collaborative one, uniting our domain
expertise and executional capabilities with our clients’ vision and business goals.
 Our client stories demonstrate how we co-create with organizations to enable them to
outperform.

 Our customers’ stories demonstrate our abiding commitment to collaboration as we

co-create with organizations to transform their business processes and enable them to
outperform.

 Awards and Recognition: -

WNS has received numerous awards that establish its leadership and drive towards innovation,
service excellence, work culture and social impact. We owe this recognition to our employees who
take our passion forward and our clients who have been an integral part of this journey.

 WNS is one of 380 companies across 11 sectors included in the 2021 Bloomberg
Gender-Equality Index (GEI). WNS was included in this year’s index for scoring at or above
a global threshold established by Bloomberg to reflect a high level of disclosure and overall
performance across the framework’s five pillars.

 WNS won the Merit Certificate of National Energy Conservation Award from
Ministry of Power, Government of India under the BPO sector. The Ministry of Power has
launched a scheme in 1991, to recognize industries and establishments that have taken special
efforts to reduce energy consumption while maintaining their production.

 WNS Cares Foundation (WCF) has won the Golden Peacock Global Award for
Corporate Social Responsibility for 2021. WCF won the award for Cyber Smart program, the
Foundation’s endeavor to provide a safe online browsing experience to children and cultivate
safe online behaviors.

 WNS won the Association for Talent Development (ATD) BEST Award 2021 in the
Talent Development category. The award is given in recognition of enterprise-wide success
through a future-looking talent development culture.
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The award is a testament to WNS’ commitment toward building a future-ready, Digi-capable,
and resilient workforce.

 WNS Cares Foundation (WCF) has won the coveted India CSR Award 2020 in the
category ‘Best Digital Education Project (BPM industry)’. WCF has been recognized for the
Foundation’s digital-led education initiatives such as Cyber Smart, Computer Literacy
Centers, Digital Treasure website and E-mentoring.

The award recognizes outstanding CSR initiatives in the country and acknowledges the
notable contributions that are raising benchmarks by bringing transformative changes in
society through innovation and excellence.

LEADERSHIP TEAM
1. Suhrid brahma :- Chief Technology officer
2. Krishnan Raghunathan :- Head, Finance& Accounting services
3. Adrian McKnight :- Head, Transformation & Quality
4. Akhilesh Ayer :- Head, Research & Analytics
5. Alpar Kamber:- Head, Procurement Services
6. Archana Raghuram :- Head, Marketing & Communications
7. Chris Lloyd:- Business Unit Head, Energy & Utilities
8. Danielle Head:- Head, WNS Assistance
9. David Mackey:- EVP, Finance & Head of Investor Relations
10. Dr. Gauri Puri :- Business Unit Head, Life Sciences & Healthcare Administration
11. Himanshu Bhardwaj:- Business Unit Head, Diversified Business, Manufacturing,
Retail, CPG & Telecom
12. Jay Venkateshwaran:- Business Unit Head, Banking & Financial Services, Consulting
& Professional Services
13. Jaison Augustine:- Business Unit Head, Shipping & Logistics
14. Jitender Mohan:- Head, Customer Interaction Services
15. Pieter Du Preez:- Managing Director, WNS South Africa
16. Kariena Greiten:- Chief Executive Officer, WNS- HealthHelp
17. Manish Vora:- Executive Vice President & Head of sales ( Horizontal offerings)
18. Manoj Chacko:- Business Unit Head, Travel and Leisure
19. Nimesh Akhauri :- Chief Growth Officer, EMEA & APAC
20. Suhas Sethi:- Business Unit Head, Insurance
21. Tarun Tandon:- Head of sales, Asia Pacific
22. Yogendra Goyal:- Chief Growth Officer, The Americas

Business Unit Management Team

1. Ambreesh Mahajan: - Business Unit Leader, Utilities and Head, International
Delivery Locations.
2. Anup Basrurkar: - Business Unit Leader, Banking and Financial Services.
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3. Arun Kharbanda: - Business Unit Leader, Research and Analytics Services.
4. C S Anand: - Business Unit Leader, Shipping and Logistics Services.
5. David P. Spencer: - Business Unit Leader Manufacturing, Telecom, Retail and
Consumer Packaged Goods, Diversified Businesses.
6. Deepak Gupta:- Business Unit Leader, Contact Centre Operations
7. Edwin Harrell:- Chief Executive Officer, WNS Assistance
8. Gautam Barai:- Business Unit Leader, Insurance Services
9. John Westfield:- Business Unit Leader, Travel and Leisure Services
10. Sulakshana Patankar:- Business Unit Leader, India Business and Strategic Initiatives
11. Tasneem Lakdawalla: - Business Unit Leader, Finance and Accounting Services.
As per Linkedin, Before WNS Global Services, Employees worked at Genpact LLC, EXL
Services, IBM Global Process Services and Wipro BPO. After WNS Global Services, most of
the WNS employees went to Accenture, Cognizant, Capgemini, Tata Consultancy Services,
Evalueserve, Intelenet Global Services and Infosys.

Competitors
Though WNS believes in delivering High Business Value, deep Domain expertise and
Operational excellence, there is stiff competition in BPO Industry. Some of the major
competitors are:
 Affiliated Computer Services, Inc.
 IBM
 Infosys Technologies Limited
 Tata Consultancy Services Limited
 First source Solutions Limited
 ExlService Holdings, Inc.
 Accenture Plc
 Genpact Limited
 HP Enterprise Services
Competitive Landscape of Top 3 Competitors:

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 WNS Infosys EXL Service Genpact
Annual sales $616,25M $6041,00M $252,75M $1,258.96M
Employees 21958 139,820 12,700 45,500
Location India India USA Bermuda

2011 Annual sales comparison:

(Source: Report by Abhishek Chikalkar)

16
 ORGANISATION STRUCTURE

SWOT ANALYSIS

17
SWOT analysis is a strategic planning tool that can be used by WNS (Holdings) Ltd.
managers to do a situational analysis of the organization. It is a handy technique to map out
the present Strengths(S), Weakness(W), Opportunities (O)& Threats (T) WNS (Holdings)
Ltd. is facing in its current business environment.
The WNS (Holdings) Ltd. is one of the leading companies in its industry. WNS (Holdings)
Ltd. maintains its prominent position in the market by carefully analyzing and reviewing the
SWOT analysis. SWOT analysis is a highly interactive process and requires effective
coordination among various department within the organization such as- marketing, finance,
operations, management information systems and strategic planning.

Strengths of WNS:-
As one of the leading organizations in its industry, WNS (Holdings) Ltd. has numerous
strengths that help it to thrive in the marketplace. These strengths not only help protect the
market share in existing markets but also help in penetrating new market. Some of the
Strengths of WNS (Holdings) Ltd. Are: -
 High level of customer satisfaction: - The company with its dedicated customer
relationship management department department has able to achieve a high level of customer
satisfaction among present customers and good brand equity among the potential customers.
 Strong distribution network: - over the years WNS (Holdings) Ltd. has built a reliable
distribution network that can reach majority of its potential market.
 Strong Brand Portfolio: - over the year WNS (Holdings) Ltd. has invested in building
a strong brand portfolio. The SWOT analysis of WNS(Holding)Ltd. just underlines this fact.
This brand portfolio can be extremely useful if the organization wants to expand into new
product categories.
 Strong free Cash Flow: - WNS(Holdings) Ltd. has strong free cash flows that provide
resources in the hands of the company to expand into new projects.
 Successful track record of developing new products: - product innovation.
 Successful track record of integrating complimentary firms through mergers &
acquisition. It has successfully integrated number of technology companies in the past few
years to streamline its operations and to build a reliable supply chain.
 Good Returns on capital expenditure:- WNS(Holdings) Ltd. is relatively successful at
execution of new projects and generated good returns on capital expenditure by
building new revenue streams.

Weaknesses of WNS:-
Weaknesses are the areas where WNS(Holdings) Ltd. can improve upon. Strategy is about
making choices and weakness are the areas where a company can improve using SWOT
analysis and build on its competitive advantages and strategic positioning.
 Not very good at forecasting product demand, leading to a higher rate of missed
opportunities compared to its competitors. One of the reasons why the inventory is high
compared to its competitors is that WNS(Holdings)Ltd. is not very good at demand
forecasting thus end up keeping higher inventory both in house and in channel.
 Financial planning is not done properly and efficiently. The current asset ratio and
liquid asset ratios suggest that the company can use the cash more efficiently than what it is
doing at present.

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 The profitability ratio and net contribution % of WNS (Holdings) Ltd. are below the
industry average.
 There are gaps in the product range sold by the company. This lack of choice can give
a new competitor a foothold in the market.
 The marketing of the products leaves a lot to be desired. Even though the product is a
success in terms of sales, its positioning and unique selling proposition is not clearly defined
which can lead to the attacks in this segment from the competitors.
Opportunities of WNS:-
 Government green drive also opens an opportunity for the procurement of WNS
(Holdings) Ltd. products by the state as well as federal government contractors.
 An economic uptick and increase in customer spending, after years of recession and
the slow growth rate in the industry, is an opportunity for WNS (Holdings) Ltd. to capture
new customers and increase its market share.
 Organization’s core competencies can be a success in similar fields. A comparative
example could be- GE healthcare research helped it in developing better oil drilling
machines.
 New customers from online channel-over the past few years the company has invested
vast sums of money into the online platform. This investment has opened a new sales channel
for WNS (Holdings) Ltd. In the next few years, the company can leverage this opportunity by
knowing its customers better and serving their needs using big data analytics.
 Market development will lead to dilution of competitors’ advantage and enable
WNS(Holdings)Ltd. to increase its competitiveness compared to the other competitors.
 New trends in consumer behavior can open market for WNS (Holdings) Ltd. It
provides a great opportunity for the organization to build new revenue streams and diversify
into new product categories too.
 The new technology provides an opportunity To WNS (Holdings) Ltd. to practices
differentiated pricing strategy in the new market. It will enable the firm to maintain its loyal
customers with great service and lure new customers though other value-oriented
propositions.
 The new taxation policy can significantly impact the way of doing business and can
open new opportunities for established players such as WNS(Holdings) Ltd. to increase its
profitability.
Threats WNS Ltd:-
 Changing consumer buying behavior from online channels could be a threat to the
existing physical infrastructure driven supply chain model.
 Liability laws in different countries are different and WNS(Holdings) Ltd. may be
exposed to various liability claims given change in policies in those markets.
 As the company operates in numerous countries it is exposed to currency fluctuations,
especially given the volatile political climate in number of markets across the world.
 The demand for the highly profitable products is seasonal in nature and any unlikely
event during the peak season may impact on the profitability of the company in the short to
medium term.
 Increasing trend toward isolationism in the American economy can lead to similar
reaction from other government thus negatively impacting the international sales.
 No regular supply of innovative products- over the year the company has developed
numerous products but those are often response to the development by other players.
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Secondly the supply of new products is not regular thus leading to high and low swings in the
sales figures over the period.
 Growing strengths of local distributors also present a threat in some markets as the
competition is paying higher margins to the local distributors.
 Rising pay level especially movements such as $15 an hour and increasing prices in
the china can lead to serious pressure on profitability of WNS(Holdings) Ltd.

Financial Analysis of WNS

Financial analysis, also known as analysis and interpretation of financial statements’, refers to
the process of determining financial strengths and weaknesses of the firm by establishing
strategic relationship between the
items of the balance sheet, profit and loss account and other operative data.
The following methods of analysis are.
1. Comparative statement
2. Common- size statements
3. Trend analysis
4. Cash flow analysis.
5. Ratio analysis
 Comparative Statements: - Comparative financial statements are a tool of financial
analysis used to study the magnitude and direction of changes in the financial position and
performance of the firm over a period. The preparation of comparative statements is based on
the premise that a statement covering a period of several years is more meaningful and
significant than for a single year only. The two comparative statements are.
1. Balance sheet
2.Income statement

20
Interpretation:-

21
A). The comparative balance sheet of the company reveals the during 2021 there has been an
increase in fixed assets of Rs. 2.98 million i.e. 1.37% while long – term liabilities to outsiders
have decreased by Rs. 6.33 million i.e. 3.68%. There has also been an increase of Rs. 96.98
million i.e. 16.52% in shareholder equity of the company. Thus, the company has used long-
term resources to finance additional working capital. The current assets have increased by Rs.
81.08 in year 2021 i.e., 18.9%. There has been sufficient increase in balance of cash. On the
other hand, current liabilities have increased by only Rs. 1.64 million i.e., 0.80%. This further
confirms that the company has raised long-term finances even for the current asset resulting
in an improvement in liquidity position of the company.

B). The comparative income statement reveals that there has been decrease in Revenue from
operations ( Net sales) of 2% while the cost of revenue has increased disproportionately by
1% thereby resulting in a decrease of gross profit of 5%. Although the operating income has
decreased there has been a decrease in Net profit of 12%. The company needs to investigate
the causes of the increase in the cost of revenue and control the same.

 Common – Size Statement: - The common- size statements, balance sheet and
income statements, are shown in analytical percentages.

The two common-size statements are: -

1. Balance sheet
2. Income statement

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23
+

Interpretation: -

A) In 2021 it is more traditionally financed compared to the year 2020. In the year 2021
shareholders’ equity consists of 62% total investments while the percentage is 58% in the
year 2020. In the year 2021 has relied more on shareholder equity. Generally, if shareholder
investment is 50% of total investment even then it is safe financial planning. In the year 2020
it has 58% investment from shareholders and has relied on an outsider for other funds. So, the
financial structure of the year 2021 is safer as compared to the year 2020.
Both the year have followed the policy of financing fixed asset from long- term funds. In
2021 investment in fixed asset are 81%, there figures in 2020 are 21% and 80%. This shows
that the yearly company has financed working capital from long- term funds also. In
comparison, the year 2020 has spared more funds for working capital (59%) than in the year
2021 (61%).
The working capital position of both years is good year 2021 has 46% of current asset while
current liabilities are 19% of total investment. In the year 2020 the current assets are 42%
while the current liabilities are 20%. Looking at the difference in percentage of current asset
and current liabilities, the position of working capital of year 2021 (current ratio- 2.42%) is
much better than that of year 2020 (2.1%).

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B) Revenue from operation has increased from 928.26 to 912.64. Selling expenses have
been reduced from 20% in 2020 to 19% in 2021. It has contributed to an increase in
profitability of the company. Depreciation and other expenses are also constant. The total
expenses have been constant from 21% to 21% of revenue from operation. The profitability
of the company has sufficiently improved.

 Trend analysis: - The financial statement may be analyzed by computing trends of

series of information. This method determines the direction upward or downwards and
involves the computation of the percentage relationship that each statements items bears to
the same items in base year.

Interpretation:-

The sales have continuously decreased in 2021. The percentage in 2021 is 98 compared to
100 in 2020. The decrease in sales is quite unsatisfactory. Profit before tax has decrease in
year 2021. The comparative increase in profit is much higher in 2020 as compared to 2021.

 Cash flow analysis: - Cash flow statements are a statement which describe the
inflows (sources) and outflows(uses) of cash and cash equivalents in an enterprise during a
specified period of time. A cash flow statements summaries the causes of changes in cash
positions of a business enterprise between dates of two balance sheet.

25
0
 Ratio analysis :- Ratio analysis is a technique of analysis and interpretation of
financial statements. It is the process of establishing and interpreting various ratios for
helping in making certain decisions.
Types of ratio analysis:-
1. Liquidity Ratios
2. Solvency Ratios
3. Activity Ratios
4. Profitability Ratios
 Liquidity Ratios: -liquidity ratio is calculated to measure the short- term solvency of
the business. These are analyzed by looking at the amount of current assets and current
liabilities in the balance sheet. The two-ratio included in this category are current ratio &
liquidity ratio.

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Interpretation:-
The current ratio is satisfactory if it is 2:1. The current ratio of WNS represents a safety
margin. As comparison of both years the current year is higher than previous year. It implies
that the current assets are increased but the rate of decrease in current liabilities is less than
the current asset.
 Quick Ratios: -Quick ratio also known as Acid Test or Liquid Ratio, is a more
rigorous test of liquidity than the current ratio. The term “Liquidity “refer to the ability of
firm to pay its short-term obligation as and when they become due.

Interpretation:-
The quick ratio indicates how faster a WNS company converts is current asset into cash. The
quick ratio is considered satisfactory, it is 1:1. In this case its current liabilities decrease its
quick asset. So quick ratio increases in comparison to the previous year.

 Solvency Ratio:-solvency ratio is calculated to determine the ability of business to

service its debt in the long run.

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Interpretation:-
The above ratio shows that in the year 2020 the proportion of debt is more than the
proportion of equity in the capital.
 Activity ratio: -these ratios indicate the speed at which activities of the business are
being performed. The activity ratio expresses no of the times employed or for the matter any
constituent of asset is turned into sales during an accounting period.

Interpretation:-
The net asset turnover should be interpreted cautiously. The net asset in denominator of a
ratio includes fixed asset net of depreciation. Old assets with lower book value may create a
misleading impression of high turnover without any improvement in sale of company.

Interpretation:-
The activity ratio in which asset turnover ratio measures how efficiently assets are used to
maximize sales. A firm ability to produce a large volume of sales for a given amount of net
asset is the most important aspect of its operating performance old asset with high book value
may create a impression of high turnover .the asset turnover ratio is increasing uniformly
over the period.

Interpretation:-

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Working capital turnover ratio implies that how efficiently we convert our working capital
into sales. As this ratio has been decreasing from the year 2020. So, it is proving, and the
company is able to convert its current assets over current liabilities into sales efficiently.
 Profitability ratio: - Profitability ratio is used to evaluate the company’s ability to
generate income as compared to its expenses and other costs associated with the generation of
income during a particular period. This ratio represents the result of the company.

Interpretation:-
Gross profit is the amount of profit deducting cost of revenue. The figure above interprets
that the gross profit ratio has decreased from the last year 2020 but with few points (i.e.
1.44%).

Interpretation:-
As is seen from the figures that operating ratio has decreased in comparison to the previous
year but with few point only.

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Interpretation:-
Net profit is the amount of profit which excludes all the expenses of business including tax.
In this company it is interpretation that the net profit decreases in comparison to the previous
year the reason behind this is that the amount of increase in profit is less than the sales.

Interpretation: -
Return of capital employed is obtained by dividing EBIT (1-tax rate) by capital employed.
Capital employed represents pool of funds supplied by shareholders and lenders. This ratio
therefore measures what a firm has earned in comparison to the investment made. The
movement of this ratio is almost like the trend of return on net worth ratio.

Interpretation:-
Shareholder fund includes equity shareholder preference shareholder reserve and surplus after
deducting their miscellaneous expenses and debt balance of profit and loss. This return is
calculated on profit after tax. In the company this ratio has decreased by 4.9%. This means
that profit after tax decrease by amount this shareholder.

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Need for study / Objective: -

1. Understand mortgage loan culture in India.

2. To understand the reason behind mortgage default in India.

Research Methodology:-

1. Tittle of study

“Study of non-payments of debt in India”

2. Research methodology.

The study is purely based on secondary sources of data collection. The details are collected
from websites, books, research papers, journals, and articles.

II INTRODUCTION TO RESEARCH PROJECT

Commercial credit is a pre-approved amount of money issued by a bank to a company that

can be accessed by the borrowing company at any time to help meet various financial
obligations.

Commercial credit is commonly used to fund common day-to-day operations and is often
paid back once funds become available. Commercial credit is usually offered as a revolving
line of credit. as opposed to a non-revolving line of credit. Commercial credit is also
commonly referred to as a "commercial line of credit" or "business credit."

Commercial credit is a line of credit offered to businesses that allow them to pay for a variety
of business needs when cash is not available. A business can use their commercial credit line
to pay for inventory, working capital needs, capital expenditures, and any unexpected
expenses that may arise from running a business. It can also be used by companies to help
fund new business opportunities that fall out of daily business operations.

To obtain a commercial credit line, a company would work with a bank to get approved,
based on an evaluation of the company's business profile. If the commercial credit line
extended to a company is a revolving line of credit, like a credit card, with a maximum
available amount, the company can draw on this at any time. The interest charged would only
be on the amount drawn until it is paid back.
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 To obtain proper working and analysis of credit we have to follow accounting standards.
There are two types of accounting standards: -

-GAAP

-IFRS

Let’s understand the accounting standards

 An accounting standard is a common set of principles, standards and procedures that define
the basis of financial accounting policies and practices. Accounting standards improve the
transparency of financial reporting in all countries.

- GAAP-In the United States, financial reporting practices are set forth by the Financial
Accounting Standards Board (FASB) and organized within the framework of the generally
accepted accounting principles (GAAP). Generally accepted accounting principles refer to a
common set of accepted accounting principles, standards, and procedures that companies and
their accountants must follow when they compile their financial statements.
- International Financial Reporting Standards (IFRS) are a set of international accounting
standards, which state how particular types of transactions and other events should be
reported in financial statements. IFRS are issued by the International Accounting Standards
Board (IASB), and they specify exactly how accountants must maintain and report their
accounts. IFRS was established in order to have a common accounting language, so business
and accounts can be understood from company to company and country to country.The aim
is to maintain stability and transparency throughout the financial world. IFRS enables the
ability to see exactly what has been happening with a company and allows businesses and
individual investors to make educated financial decisions.

INTRODUCTION TO FINANCIAL SECTOR: -

• The Indian Financial System is one of the most important aspects of the economic
development of our country. This system manages the flow of funds between the people
(household savings) of the country and the ones who may invest it wisely
(investors/businessmen) for the betterment of both the parties.

32
• The services that are provided to a person by the various Financial Institutions including
banks, insurance companies, pensions, funds, etc. constitute the financial system.

.2 OVERVIEW OF BANKING SECTOR IN INDIA: -

• As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised
and well-regulated. The financial and economic conditions in the country are far superior
to any other country in the world. Credit, market and liquidity risk studies suggest that
Indian banks are generally resilient and have withstood the global downturn well.
• Indian banking industry has recently witnessed the roll out of innovative banking models
like payments and small finance banks. RBI’s new measures may go a long way in helping
the restructuring of the domestic banking industry.
• The Indian banking system consists of 12 public sector banks, 22 private sector banks, 46
foreign banks, 56 regional rural banks, 1485 urban cooperative banks and 96,000 rural
cooperative banks in addition to cooperative credit institutions. As of September 2020, the
total number of ATMs in India increased to 210,049 and is further expected to increase to
407,000 by 2021.

CREDIT ANALYSIS PROCESS

It refers to evaluating a borrower’s loan application to determine the financial health of an
entity and its ability to generate sufficient cash flows to service the debt. In other words, a
lender conducts credit analysis on potential borrowers to determine their creditworthiness
and the level of credit risk associated with extending credit to them.

A credit analyst may use a variety of techniques, such as cash flow analysis, risk analysis,
trend analysis, ratio analysis, and financial projections. The techniques are used to analyse
a borrower’s financial performance data to determine the level of risk associated with the
entity and the number of losses that the lender will suffer in the event of default.

It is important for banks, investors, and investment funds. As a corporation tries to expand,
they look for ways to raise capital. This is achieved by issuing bonds, stocks, or taking out
loans. When investing or lending money, deciding whether the investment will pay off
often depends on the credit of the company.

For example, in the case of bankruptcy, lenders need to assess whether they will be paid
back. Similarly, bondholders who lend a company money are also assessing the chances
33
they will get their loan back. Lastly, stockholders who have the lowest claim priority
access the capital structure of a company to determine their chance of being paid. Of
course, credit analysis is also used on individuals looking to take out a loan or mortgage.

TYPES OF CREDIT: -
COMMERCIAL REAL ESTATE CREDIT - Commercial real estate (CRE) is income-
producing property used solely for business (rather than residential) purposes. Examples
include retail malls, shopping centres, office buildings and complexes, and hotels. Just as
with home mortgages, banks and independent lenders are actively involved in making
loans on commercial real estate. Also, insurance companies, pension funds, private
investors and other sources, including the U.S. Small Business provide capital for
commercial real estate.

While residential mortgages are typically made to individual borrowers, commercial real
estate loans are often made to business entities (e.g., corporations, developers, limited
partnerships, funds and trusts).

CONSTRUCTION FINANCE LOAN – A construction loan (also known as a “self-build

loan") is a short-term loan used to finance the building of a home or another real estate
project. The builder or home buyer takes out a construction loan to cover the costs of the
project before obtaining long-term funding. Because they are considered relatively risky,
construction loans usually have higher interest rates than traditional mortgage loans.
Construction loans are usually taken out by builders or a homebuyer custom-building their
own home. They are short-term loans, usually for a period of only one year.

After construction of the house is complete, the borrower can either refinance the
construction loan into a permanent mortgage or obtain a new loan to pay off the
construction loan (sometimes called the “end loan”).

SYNDICATED LOAN –

A syndicated loan, also known as a syndicated bank facility, is financing offered by a

group of lenders.

They work together to provide funds for a single borrower. The borrower can be a
corporation, a large project, or a sovereign government.

34
 Syndicated loans arise when a project requires too large a loan for a single lender or when
a project needs a specialized lender with expertise in a specific asset class. Syndicating the
loan allows lenders to spread risk and take part in financial opportunities that may be too
large for their individual capital base. Interest rates on this type of loan can be fixed or
floating.

The main goal of syndicated lending is to spread the risk of a borrower default across
multiple lenders or banks, or institutional investors, such as pension funds and hedge
funds.

Because syndicated loans tend to be much larger than standard bank loans, the risk of even
one borrower defaulting could cripple a single lender.

Stages in the Credit Analysis Process: -

The credit analysis process is a lengthy one, lasting from a few weeks to months.

The following are the key stages in the credit analysis process:

 Information collection

 Information analysis

 Approval (or rejection) of the loan application

Information collection
• The first stage in the credit analysis process is to collect information about the applicant’s
credit history. Specifically, the lender is interested in the past repayment record of the
customer, organizational reputation, financial solvency, as well as their transaction records
with the bank and other financial institutions. The lender may also assess the ability of the
borrower to generate additional cash flows for the entity by looking at how effectively
they utilized past credit to grow its core business activities.

• The lender also collects information about the purpose of the loan and its feasibility. The
lender is interested in knowing if the project to be funded is viable and its potential to
generate sufficient cash flows. The credit analyst assigned to the borrower is required to
determine the adequacy of the loan amount to implement the project to completion and the
existence of a good plan to undertake the project successfully.
35
• The bank also collects information about the collateral of the loan, which acts as security
for the loan in the event that the borrower defaults on its debt obligations. Usually, lenders

MORTGAGE LIFE CYCLE

Loan Origination
Purpose Mortgages - it is usually distinguished by whether it is used to buy a real asset
(called a purchase loan) or to replenish existing loans (disbursements). Refinance loans
are sometimes "borrowing" loans, made in addition to the main balance of existing loans. The
borrower receives a loan more than the amount required to repay the existing loan. Another
category is a “housing equity loan”, where the borrower can get money to use for any
purpose by borrowing equity from home. Equity is the value of an asset's current value;
subtract the remaining principal balance of any other collateral that the consumer has.
Flexible loans are available to older homeowners so that they can borrow as much as they can
from their homes
Lien Position Lien position determines which mortgage loans are preferred over other loans
in the event of a liquidation or collapse. First-time loans, sometimes called high-quality loans,
are very important in repaying loans at a lower rate in the event of further disclosure or
collapse. Revenue from the sale of goods is divided into false positions. “Second lien
simultaneously” is a second bond that arises at the same time as the first lien bond, which can
allow the consumer to borrow 100% of the total value of the home. Lenders sometimes allow
consumers to borrow more than the value of the property, although this practice is not
common in today's mortgage market.

Retail Channel - At the sales channel, the lender conducts the process of establishing itself
directly with the buyer, either in person or through an online system. The lender's employee,
usually called a loan officer, asks for a loan, takes an application, and follows the process
until the closing process

Wholesale Channel - At a wholesale station, the real estate agent borrows money and takes
the request from the buyer. Loan sellers are independent contractors and not employees of the
lender. The broker establishes relationships with multiple credit providers and offers a variety
of product loan products from these lenders. Consumers of securities usually do not make
written decisions and do not lend money. In this channel, a mortgage lender plans in writing,
based on the information provided by the lender. These mortgage lenders, referred to as
multiple lenders, are usually the categories of major investment institutions. Generally, a real
estate lender requires the seller to enter into a full loan agreement before the seller can begin
borrowing.
Correspondent Channel – It is a channel which is a hybrid for a broker-dealer and lender for
a brokerage channel, often includes small institutions, acting as book lenders. Journalist
lenders are a key means of communicating with consumers, pursuing every step of the way to
commencement of assets, and financing their loans. They often come up with and offer loans
according to the writing standards set by other lenders or investors, large standard loans, and
early price commitments. In addition to soliciting direct buyers, registered lenders can obtain
applications and mortgage documents from mortgage buyers and then speak directly to the
36
buyer. Typically, a major lender requires the author to enter into a written loan agreement
before the contact can begin borrowing a mortgage from the principal lender.
Loan Origination Stages
Pre-Qualification • The first step in the process of starting a loan before graduating. At this
stage, the potential borrower will receive a list of items they need to pull together to bring
them to the lender. • Current employment information includes hourly wage or loan
repayment.
Loan Application
• At this stage, the borrower needs to complete a loan application form. In some cases, the
paper application is terminated but usually today the electronic form is terminated and sent by
the borrower.
Section 1 - Type of Mortgage and Terms of Loan Terms. The information in this section
should be the same as the type of loan policy and the assets you have discussed with your
loan manager. By buying a property when you have not yet chosen, you can specify the
maximum amount you wish to borrow.
Section 2 - Property Information and Purpose of Loan • If you have already chosen a
house, in this section you need to provide details about the property including address, year
of construction, whether you want to buy or refine - and other details for the purpose of the
property loan you want.
Section 3 - Borrower Information • This section requires your personal information and any
associated credit provider involved. • This includes your social security number, date of birth,
marital status and contact details.
Section 4 - Employment information
Section 5 - Monthly income and combined housing expense information • At these stages,
you need to provide your employment history (where you worked and your time), your
monthly income and monthly expenses (monthly payments) as well as the latest payment
certificates and W-2 tax forms for the past two years. • With this information your loan
officer can decide if you can afford to pay the mortgage and your ability to pay the costs
associated with the mortgage.
If you have not worked in your current job for at least two years, or if you have multiple jobs,
you will need two to provide details of all back-up jobs until you have a two-year history. •
Your loan officer will sign you a Verification of Employment (VOE) form which will be sent
to your employer to confirm how you work and how you earn. The VOE form will also be
sent to previous employers if you have been on the job for less than two years.
Loan Application • Use your total income in the monthly income column in section 5. Your
income is the amount you make before tax or withdrawal. • This includes many sources of
income even though you must disclose maintenance, child support or separate maintenance
payments if you do not choose to be held to pay your mortgage. • The information you
provide will be confirmed later by a credit report filed by your lender. • Differences between
your figures and those in the credit report will raise questions and may delay the decision on
your mortgage loan so it is important that you are as accurate as possible when completing
this section.
Section 6 - Assets and Liabilities • This section shows your current financial status - how
much you own (assets) and how much you owe (debts). The difference between the two is
your Net Worth. • If you have bank accounts, savings, retirement funds, investments, cars or
trucks - even your home savings - these are the assets that will support your claims. • In the
Debt section, you will be asked to record all your current debts, loans and other debts
37
including current rates and monthly payments. Debts include car loans, credit cards, bank
loans, mortgages etc.
The details of the assets and liabilities that you provide to your loan officer in the loan
application will later be confirmed by the credit report filed by the lender. • If you have not
yet set up a credit record by getting a credit card or car loan, your loan manager can check to
see if you have paid your rent and other services on time to check your payment methods.

Important Documents to complete your application • Paycheck stubs for the past 30 days •
W-2 forms for the past 2 years • Information about long term debts • Recent bank account
statements • Tax returns for past 2 years if self employed • Proof of any supplemental income

Section 7 - Details of Transaction • This section provides all the important details of a
mortgage loan - expressed as rates - including the purchase price of your home, closing costs
and the total cost of your property loan (including interest, interest and fees) among other
information. • Your loan officer will complete the process. • Make sure it is consistent with
your understanding of the process and consider the estimated closing costs.
Section 8 - Declarations • In this section, you will be asked to answer questions about any
pending legal issues or other issues (past or present) that may affect your financial situation.
For example, have you ever announced that you are crazy? • This information, together with
your credit report, will help your lender to assess your mortgage debt. • In addition, you will
be asked to prove that you are a US citizen. If you are not a US citizen but can provide legal
documents in the US, you can still get a deposit.

Section 9 - Acknowledgment and Agreement • Your signature is your voice of honor. In

this section, you sign your name stating that the information you provide is accurate and true
to the best of your knowledge.

Section 10 - Information for Government Monitoring Purposes • In this section you will
need to provide details such as your race and ethnicity. • That is because the US government
wants to make sure that their financial housing program meets the needs of all races and
ethnicities in the country. • This is one of the ways to collect those statistics that the system
works for everyone equally
Once the application is finalized, your loan manager will review it with you and ask you and
your creditors to sign it. • Your loan officer will then send you through his or her
organization for approval. • If approved - you will receive a letter of first consent which is a
conditional commitment of the lender to lend you a certain amount of money to buy your
home.
Your credit report provides information on loans from credit bureaus in addition to your
payment history and includes: • Debt list and repayment history. • Any debts transferred to
the fundraising organization • This may include telephone and medical bills • Details of
public records • This may include tax and financial loss • Questions about debt • Ask
questions when applying for credit. Your credit report may also indicate whether you are
receiving credit according to the investigation.

Application Processing

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 • Once the application is approved by the credit bureau, the first step is to review it with
accuracy and completeness. All required fields must be completed, otherwise the application
will be returned to the borrower, or the credit analyst will need to reach out to the borrower to
obtain the required missing information. Depending on the technology used by the lender, the
sophisticated Loan Origination System (LOS) can automatically mark files with the required
missing fields and return them to borrowers for reuse. Depending on the organization, a
different process may be part of this process, or hand loan processors may review each
application for completeness.
Loan Estimate • Within three business days after applying, your loan officer must provide
you with the Lan Lo Estimate. • Loan Estimate gives you an estimate of your mortgage terms
and repayment costs (also called closing costs or the cost of completing your mortgage
transaction) if you are allowed to mortgage the property. • With this, you can check your
mortgage offer and check out a few more opportunities before accepting it. • The Loan
Estimate is a 3-page form with a summary of your loan terms, monthly payments and the
amount required to close on the first page, details of your second term coverage and
additional information about your loans on the third page.
You can use your Loan Estimate to compare prices and accommodation costs for other
lenders. • As the legal term for mortgages used in loan estimates may seem confusing, the
following explanations should help you understand some of the most important details in this
form. • Loan Terms - This section describes the basic terms of your mortgage loan, including
the original loan amount, interest rate and first monthly payment. This section also includes
important information showing whether your interest rate may increase and whether your
loan has a prepayment fee.

Escrow Account Information - Most lenders require you to pay in advance for some
of the items that will be paid after closing. These prepaid items usually include homeowner's
premiums and property taxes. The first page of the loan rate indicates whether a login account
is required or not and estimates your monthly payment amount.
The Commitment Letter • After your lender has approved of your loan application, you must
receive a letter of commitment specifying the loan amount, the number of years to repay the
mortgage (time), interest rate, APR and monthly expenses. • Usually, you must accept the
commitment by returning a signed copy to the lender within five to 10 days and you may be
required to pay part or all the initiation fee during this time. • Once a letter of commitment
has been received, you are assured that the money is needed to complete the purchase of your
home and you can now focus on completing the required closing details.

The Appraisal Disclosure: This document will inform you that you are entitled to
receive a copy of the inspection report obtained in connection with your application for
credit.
Other Disclosures
•There are many other disclosures you will be given, including disclosures about your credit
report and your right to receive a copy.
• You will also need to sign a declaration stating that you intend to occupy the property as
your primary residence rather than objecting to the use of the property as a second home or
investment.

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Your loan officer must provide you with a copy of Closing Disclosure at least 3 business days
before you sign the mortgage documents at the time of closing. This document sets out the
actual amount of money you will pay for the various amounts and services associated with
the closure of your mortgage loan. Your closure costs can usually range from 3 to 7 percent
of a mortgage loan, so it is important that you know about these costs and ask questions about
them.
• Disclosure The closing details the final terms of your loan, as well as the final cost of the
loan you will pay on closing. In addition to creating content for Loan Estimate, Closing
Disclosure provides details about the specific features of your loan, the amount paid, the
amount paid, and the total amount paid.
The amount paid is the loan amount available after paying your prepayment. The amount due
is the amount of the loan amount that you will repay, and the total amount of the payments
will be paid after you have paid all the principal payments, interest, property insurance and
loan costs, as planned.
• Closing disclosures also record the closing date. In many places, closures occur at a deed
holding company or at a customs office. The escrow officer is a third-party non-commercial
person, who will be able to answer common questions about your loan terms but will not be
able to give you legal advice.

Underwriting
If the application is considered complete, the writing process begins.
• The company runs the program through a multi-pronged process: credit points, risk points,
and many lenders will develop their own scoring strategies that are unique to their business or
industry. Sometimes this process is completely automatic; sometimes it’s a handbook or a
combination of both. Writing guidelines can be downloaded to the Loan Origination System
(LOS).
• Record the process of the mortgage loan process. The bank, credit union or mortgage lender
must determine whether you can repay the mortgage before deciding whether to approve your
application.

The Closing
You and your family are finally ready to move into your new home. Your mortgage loan is
approved, your house passed the inspection, your belongings are full, and everyone is looking
forward to the day of departure. All that’s left is to visit your closure
Closing is a meeting that involves all parties signing the final documents and handing over
the property to you legally.
• There are costs and costs in this last step you need to know.
• When you have finished signing the closing papers, you will be given the keys to your new
house. The loan process is over.

 Mortgage Industry’s Challenges

Inflation, which puts higher financial costs, as well as the emergence of selected mortgage
options are the most pressing issues for contractors in 2018, according to the Genworth Asset
Insurance Industry Inquiry conducted on Wednesday.

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The review, which found some information about their assessment of the most difficult
business and market they were looking at in 2018, revealed that 79% of respondents referred
to these as the most pressing issues in the remaining year. A further 17 percent were aimed at
lowering loan guidelines and four percent said overpayments in the home loan market were
stressful.
"Increased borrowing costs and extensions, combined with current stock shortages, are
accelerating domestic mortgage spending, prompting fewer banks and consumers to research
less viable home financing strategies," said Rohit Gupta, President and CEO, at Genworth
Mortgage Insurance.
Genworths also received information on what they thought were the best ways to further
increase credit in the home loan market. Eliminating the formal risk of FHA lenders initiating
FHA development has eliminated the growth rate by 44% of loan experts who say it will
reduce access to credit. The cost of banking cuts (33%) and the allocation of preferred
financial audits (14%) were part of various strategies to improve credit acceptance in the
home loan market, a review obtained. About 12% of the loan experts say that sound
investment targets in GSEs will also help.
Regarding GSEs, 68% of respondents said that they have started integrating or have now
fully implemented the GSE Day One Certification apparatuses in their cycles. However, 32%
said they had not yet started using external data permits on DU / LP credits, the study said.
Genworth research has similarly drawn attention from the industrial industry with pay-per-
view activity, best practices in debt management categories, and GSE Day One Certified
devices. It was found that 92% of industry experts had agreed that given the new increase in
Debt-to-Income (DTI) limits, the return parts should take part of the person to be registered
more than 45-DTI.
The renaming also worried some 54% bank lenders who said they were trying too hard to link
to the adaptive dashboard and build managers as top-notch helpers who might want to link it
to their first line (LOS) sections.

Conclusion:

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Credit analysis draws conclusion by way of comparing the available quantitative and qualitative data
regarding the creditworthiness. If a lender is confident that the borrower will honour his debt duty
in a timely style, the borrower is deemed credit worthy.

A commercial lending is a lending extended to businesses by a financial institution. The loan is

commonly used by small and middle-market corporate borrowers.

Advantages of a commercial loan include access to capital, an easier application process, and
retaining equity ownership of business.

The survey concluded that people are somewhat aware about the terms and types of credit and may
be some of them have opted also for the credit but are not much in reach of it.

REFERENCE:

www.wns.com/
www.investopedia.com
www.wikipedia.com
www.bloomberg.com
(Abhishek.C)
(WNS)
(Financial Analysis)
(MacroTrends)
(Cocco, 2014)
(Bandyopadhyay, Arindam and Saha, Asish, 2009)
(Rais Ahmad Itoo , Selvarasu Appasamy Mutharasu, José António Filipe, 2013)
(Thibodeau, 1985)
(Christopher Mayer, 2009)
(Neil Bhutta, Jane Dokko, and Hui Shan, 2010)
(Tiwari, 2001)
(John Krainer, 2009)
(DSNEWS)

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PART-2

Job Profile During Intership: Intern/Credit Analyst

Job Role: Credit appraisal of existing as well as new credit requests for clients by evaluating
their creditworthiness on multiple parameters, including the assignment of internal customer
risk rating, and covering detailed analysis of business profile, industry, management, and
financials.
To analyze the balance sheet, income, and cash flow statements of our clients,spreading the
financial. Analyse the operating trends, capital structure, liquidity, covenants, debt service
capacity and overall credit risk for conclusion and recommendation.
Conduct on-going Portfolio Monitoring to facilitate decision making through Financial
Modeling, Coverage Reports, Covenant Analysis, Forecast and Report writing.
Working on assigning the Risk rating of PD and LGD to the Borrower, and detailed risk
rating rationale write-up
Providing mentorship and training to newer members of the team; providing cross-functional
knowledge and training to support teams.

Achievements during OJT:

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Financial Analysis: Conducted in-depth financial analysis on company portfolios or specific
investments, identifying key trends or areas for potential growth, contributing to better
decision-making processes.
Report Generation: Developed comprehensive financial reports or presentations that were
used by senior management or teams to present data-driven insights and recommendations.
Process Improvement: Identified inefficiencies in financial processes and proposed
solutions, leading to the implementation of new procedures that improved accuracy or
efficiency in tasks like data entry, reconciliation, or reporting.
Research Contributions: Conducted market research or industry analysis that directly
contributed to strategic planning or investment decisions, providing valuable insights into
market trends or potential risks.
Team Collaboration: Actively participated in team projects, contributing ideas and solutions
that positively impacted project outcomes or team dynamics.
Learning and Development: Demonstrated a proactive approach to learning, mastering new
financial tools or software, and applying newfound knowledge to streamline tasks or enhance
analytical capabilities.
Learning from OJT with respect to functional areas:
Financial Analysis: Gaining proficiency in analyzing balance sheets, income statements, and
cash flow statements to assess debt capacity, liquidity, and overall financial health of clients.
Team Collaboration: Working closely with teams and findings and learning on various
important topics.
Decision-making Skills: Developing the ability to make informed credit decisions by
considering established guidelines, policies, and risk parameters.
Documentation and Reporting: Understanding the importance of preparing detailed credit
proposals, reports, and summaries to present analysis and recommendations effectively.

Constraints faced during OJT.

Limited Experience: Lack of prior experience might have been a hurdle when handling
complex financial tasks or using specific software/tools.
Time Constraints: Meeting deadlines and managing multiple tasks within a limited time
frame might have been challenging.
Adapting to Workplace Dynamics: Adjusting to the work culture and dynamics of a
professional finance environment might have been a learning curve.

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