Professional Documents
Culture Documents
A PROJECT REPORT
SUBMITTED BY:
ISHAN
MBA II SEMESTER
Last but not the least I would like to thank company officials, my friends &
family members for their constant support.
ISHAN
MBA (II SEMESTER)
STUDENT DECLARATION
Date : Signature
Place : Bhopal VANSHA AGRAWAL
MBA (II SEMESTER)
CONTENTS
PAGE No.
Chapter I Conceptual Overview 7
Chapter II Research Methodology 9
Chapter III Theoretical Background 12
Chapter IV Company Profile 21
Chapter V Data Analysis 27
Chapter VI Findings 38
Bibliography
Annexure
CHAPTER - I
CONCEPTUAL OVERVIEW
CONCEPTUAL OVERVIEW
Renewable energy in India comes under the purview of the Ministry of New
and Renewable Energy (MNRE). Newer renewable electricity sources are
targeted to grow massively by 2022, including a more than doubling of India's
large wind power capacity and an almost 15 fold increase in solar power from
April 2016 levels. Such ambitious targets would place India amongst the world
leaders in renewable energy use and place India at the centre of its International
Solar Alliance project promoting the growth and development of solar power
internationally to over 120 countries.
In this project I have analyzed financing of LED Lights and Solar Products of
Maa Bagulamukhi Energy Pvt. Ltd. For this a survey of 100 existing customer
was conducted. The list of customers was provided by the company.
Objectives of the study is to analyze the Financing of LED Lights / Solar Panel
System of Maa Bagulamukhi Energy Pvt. Ltd. Second objective is to analyze
the Financing Process of Maa Bagulamukhi Energy Pvt. Ltd. Third objective is
to analyze the customers view towards Fees, Interest Rates, EMI,
Documentation procedure and processing of finance for LED Lights / Solar
Panel System of Maa Bagulamukhi Energy Pvt. Ltd.
It was found that Finance scheme on Solar Products and LED Lights of the
company is satisfactory.
CHAPTER - II
RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY
MEANING OF RESEARCH
Research includes any gathering of data, information and facts for the
advancement of knowledge. Research must be systematic and follow a series of
steps and a rigid standard protocol. These rules are broadly similar but may
vary slightly between the different fields of science.
Analysis of past data a helps the management of the company to plan its future
polices according to the external environment. Based on this, study has been
taken up financial analysis of the company. Any sound research must have a
proper design to achieve the required result, this study id constructed on the
basis of descriptive design.
TYPES OF RESEARCH
The study conducted is a conclusive descriptive statistical study. Conclusive
because after conducting the study the researcher comes to a decision which is
precise and rational.
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis
of data in a manner that aims to combine relevance to the research purpose with
economy in procedure.In fact the research design is a conceptual structure
within which the research is conducted It constitute the blue print for the
collection, measurement and analysis of data. Decisions regarding what, when,
where, how much, by what means concerning an inquiry or research study
constitute a research design. Research design is needed because it facilitates the
smooth sailing of the various research operations thereby making research as
efficient as possible yielding maximal information with minimal expenditure of
effort, time and money.
In this study both Primary and Secondary Data has been used.
SAMPLE DESIGN
This project is special in nature and therefore method used for sample
technique in random sampling method.
SAMPLE SIZE
100 respondents
TOOLS OF ANALYSIS
I have used Structured Questionnaire Method. Some of the softwares used for
making this project will be Ms Word and Ms Excel.
LIMITATIONS
1. The respondents were limited and cannot be treated as the whole
population.
2. The respondents may be biased.
3. The accuracy of indications given by the respondents may not be consider
adequate
4. Inspite of precautions taken there are certain procedural and technical
limitations.
5. Lack of sufficient time to exhaust the detail study of the above topic became
a hindering factor in my research.
6. Resources were limited.
7. Respondents are not willing to respond properly.
CHAPTER - III
THEORETICAL BACKGROUND
THEORETICAL BACKGROUND
India was the first country in the world to set up a ministry of non-conventional
energy resources, in the early 1980s. India's overall installed capacity has
reached 329.4 GW, with renewables accounting for 57.472 GW as of 14 June
2017. 61% of the renewable power came from wind, while solar contributed
nearly 19%. Large hydro installed capacity was 44.41 GW as of 28 February
2017 and is administered separately by the Ministry of Power and not included
in MNRE targets.
From 2015 onwards the MNRE began laying down actionable plans for the
renewable energy sector under its ambit to make a quantum jump, building on
strong foundations already established in the country. MNRE renewable
electricity targets have been upscaled to grow from just under 43 GW in April
2016 to 175 GW by the year 2022, including 100 GW from solar power, 60
GW from wind power, 10 GW from bio power and 5 GW from small hydro
power. The Ministry of Power has announced that no new coal-based capacity
addition is required for the 10 years to 2027 beyond the 50 GW under different
stages of construction and likely to come online between 2017 and 2022 The
ambitious targets would see India quickly becoming one of the leading green
energy producers in the world and surpassing numerous developed countries.
The government intends to achieve 40% cumulative electric power capacity
from non fossil fuel sources by 2030.
Solar Power
India is densely populated and has high solar insolation, an ideal combination
for using solar power in India. Much of the country does not have an electrical
grid, so one of the first applications of solar power has been for water pumping,
to begin replacing India's four to five million diesel powered water pumps,
each consuming about 3.5 kilowatts, and off-grid lighting. Some large projects
have been proposed, and a 35,000 km2 (14,000 sq mi) area of the Thar Desert
has been set aside for solar power projects, sufficient to generate 700 to 2,100
gigawatts. Solar power in India has been growing at a rate of 113% yoy and
now dropped to around 4.34 (6.8 US) per kWh, which is around 18% lower
than the average price for electricity generated by coal-fired plants.
India is also the home to the world's first and only 100% solar powered airport,
located at Cochin, Kerala.
FINANCING
Over time retailing and retail banking have developed side by side, albeit far
from independently. There are several intersection points. The most important
ones are cantered round the point of sale (POS) and the customer payments of
purchased goods. At least three parties, i.e. retailers, banks and customers, are
generally involved and to a greater or less extent interrelated at the financial
settlement of purchasing and selling transactions. This implies that the
evolution of retailing and retail banking may be analyzed and understood
within a relationship framework (Zavvos, 1989).
Kangis conducted a research on private vs. public bank which have discussed
lot of secondary literature on customer expectations and perceptions and it
noted that the Greek banking system suffers from two lasting problems: first, a
great part of this industry (approximately 75 per cent) is under the control of
the public sector, which creates certain distortions. Second, there is an
extensive intervention by the state through the appointment of governors and
directors of public banks, and through the introduction of sundry restricting
regulations; it is unlikely, though not proven, that issues of interference would
be unique to this country (Kangis and Vassilis, 1997).
LOANS
A loan is when you receive money from a friend, bank or financial institution
in exchange for future repayment of the principal, plus interest. The principal is
the amount you borrowed, and the interest is the amount charged for receiving
the loan. Since lenders are taking a risk that you may not repay the loan, they
have to offset that risk by charging a fee - known as interest. Loans typically
are secured or unsecured. A secured loan involves pledging an asset (such as a
car, boat or house) as collateral for the loan. If the borrower defaults, or doesn't
pay back the loan, the lender takes possession of the asset. An unsecured loan
option is preferred, but not as common. If the borrower doesn't pay back the
unsecured loan, the lender doesn't have the right to take anything in return.
Types of Loans-:
Indian commercial banks or financial institutions usually sanction three types
of loans.
1. Term loan
2. Personal loans
3. Secured loan
4. Unsecured loans
5. Consumer loans
6. Motor vehicle loan
7. House loan
Term Loan:-
Term Loan is one which is sanctioned usually to industrial undertakings for a
fixed period. The following are the features of term-loan:
Loans are sanctioned for a fixed period.
Short-term loans are sanctioned for 3 years.
Medium-term loans are sanctioned for 5-7 years.
Long-term loans are sanctioned for 10-20 years.
Periodical installments are usually the mode of repayment.
The bank before sanctioning term loans examines the following in order to
safeguard its interest:
Personal Loan:-
Personal Loan is one which is sanctioned on personal security to individuals.
These loans are intended to help the people of fixed income group to raise their
standard of living by having their own.
A house constructed.
A house repaired.
Source of livelihood (self-employment).
Goods and other equipment for professional pursuit.
Other goods of fixed nature for consumption purposes etc.
Secured Loans:-
A secured loan or advance means a loan or advance made on the security of
assets, the market value of which is not at any time less than the amount of
such loan or advance. Unsecured loan or advance means a loan or advance not
so secured.
Unsecured Loans:-
Unsecured or clean advances are granted against the promissory not (pm) of the
borrower. In order to safeguard its position, the bank/ financial institutions may
insist for the signatures of one or more independent surety/sureties or
guarantor/guarantors or on the promissory not executed by such a person. If the
principle debtor does not make the payment and the bank/financial institutions
is not able to receive the payment from the property of the debtor, it can claim
for the surety/sureties. Unsecured advances are of risky nature and
bank/financial institutions realize entirely on the reputation, goodwill, integrity
and character of the borrower.
While granting unsecured loans the bank/financial institutions should be very
cautious as to the capacity and character of the borrower. Bank/ Financial
Institutions allows unsecured advances in the following ways:
Cash credit against the hypothecation of movable property.
Purchasing and discounting of bills.
Advanced against government supply bills.
Purchasing and discounting of documentary D/A bills covering exports.
Advances against Promissory notes guaranteed by one or more persons of
good credit worthiness.
Consumer loans
Motor vehicle loan
House loan
Principles guiding a Banker in granting loans to a Customer-:
The business of the banking essentially involves the lending. The deposits are
accepted by the banks for the purpose of lending or investment. It is most
profitable employment of its funds. The principles of sounding lending are:
Safety- The first and foremost principle of lending is to ensure the safety
of funds lent. While lending money, the banker must carefully consider
the chance of its being repaid by the borrower along with interest. The
repayment of the loan will depend on borrowers capacity to pay and
borrowers willingness to pay. Borrowers capacity to pay is determined
by the financial soundness of the borrower and willingness to pay
depends upon his honesty and integrity.
Liquidity- The next principle of sound commercial bank lending is that
the advance should be liquid. They should be readily realisible into cash
without much loss of value, which is possible when they are short-term,
temporary advances granted to finance some purchase of stock, raw
material etc. Long-term advances will be repaid out of profits, but
subject to periodical reductions over a period.
Profitability- Banks is profit earning institutions. They must employ
their funds profitably so as to earn sufficient income out of which to pay
interest to the depositors, salaries to the staff and to meet various other
establishments expenses and distribute dividends to the shareholders.
The variations in the rates of interest charged from different customers
depend upon the degree of risk involved in lending to them. A customer
with high reputation is charged to an ordinary customer. The sound
principle of lending is not to sacrifice safety or liquidity for the sake of
high profitability.
The cost of credit is the additional amount, over and above the amount
borrowed, that the borrower has to pay. It includes interest, arrangement fees
and any other charges. Some costs are mandatory, required by the lender as an
integral part of the credit agreement. Other costs, such as those for credit
insurance, may be optional; the borrower chooses whether or not they are
included as part of the agreement.
Interest and other charges are presented in a variety of different ways, but under
many legislative regimes lenders are required to quote all mandatory charges in
the form of an annual percentage rate (APR). The goal of the APR calculation
is to promote "truth in lending", to give potential borrowers a clear measure of
the true cost of borrowing and to allow a comparison to be made between
competing products. The APR is derived from the pattern of advances and
repayments made during the agreement. Optional charges are usually not
included in the APR calculation.
CHAPTER - IV
COMPANY PROFILE
COMPANY PROFILE
Maa Baglamukhi Energy Pvt. Ltd. Formally known as MBM INDIA Energy is
Renewable energy Company with a strong presence in global energy market for
over 3 years. MBM INDIA Energy was established in 2013. Its corporate office
is at Bhopal, Madhya Pradesh. It is in the business of installation, system
integration, and wind and solar product trading for competitiveness for working
personals.
MBM INDIA Energy is one of the Indias renowned and fast growing
companies, in the fields of Renewable Power Generation.
MBM INDIA Energy offers engineering procurement design and services for
wind and Solar Photovoltaic Power System designed to operate efficiently. It
also offers services for turnkey Solar Power Producer EPC, eco-friendly, high
standards of quality and very low maintenance systems, for large, medium &
small solar power plant ranging from kW to MW scale and Manufacturing of
Led Lights and Other Led Lighting Products.
VISION
By constantly working in the field of Non-conservational energy
resource to save earth with Solar Technology.
MBM INDIA energy is a Flag Shipping company with a Vision to Go
Green and to provide worlds best quality product with refinement of
highest level service.
MBM INDIA energy will Excel, Expand and Exceed rest of the world
under Indian Flagship.
VALUES
To be a Most Trusted Company,
Quality,
Customer centricity,
Result oriented
FOCUS
Our main focus is to harvest the Renewable Energy products & services as it is
need of this age. We are one of the pioneers in creating awareness & achieving
the good market share in Renewable Energy products. Nationwide market is
also demanding Renewable Energy products in commercial, industrial,
domestic & end user market.
SOLAR PRODUCTS
LED LIGHTS
CHAPTER - V
DATA ANALYSIS
DATA ANALYSIS
Q1. Are you using Solar Panels / Solar Lights sold by Maa Bagulamukhi
Energy Pvt. Ltd.?
Interpretation:
100% respondents surveyed are using Solar Panels / Solar Lights sold by Maa
Bagulamukhi Energy Pvt. Ltd. This is because survey was limited to 100
customers and conducted only for the customers of the company.
Q2. Are you satisfied with the range of LED Lights and Solar Panel Setup?
Interpretation:
88% of the respondents are satisfied with the range of LED Lights and Solar
Panel Setup and 12% of the respondents are not satisfied with the range of
LED Lights and Solar Panel Setup.
Q3. How did you purchase LED Lights/ Solar Panel System from Maa
Bagulamukhi Energy Pvt. Ltd.?
Options Percentage of Respondents
Cash 56
Finance 44
Interpretation:
56% of the respondents say that they have made cash payments for purchasing
LED Lights / Solar Panel System from Maa Bagulamukhi Energy Pvt.
Limited and 44% of the respondents have purchased products through
Finance.
Q4. Reason for taking LED / Solar Systems on Finance from Maa Bagulamuki
Energy Pvt. Ltd.?
Options Percentage of Respondents
Faster Processing 32
Interest Rates 22
Brand image of the Maa Bagulamuki 16
Energy Pvt. Ltd.
Amount of Finance 20
Others 10
Others
10%
Faster Processing
32%
Am ount of Finance
20%
Interpretation:
32% of the respondents say that they have taken LED / Solar Systems on
Finance from Maa Bagulamuki Energy Pvt. Ltd. because of Processing Time
required by the Maa Bagulamuki Energy Pvt. Ltd., 22% of the respondents say
that interest rate of Maa Bagulamuki Energy Pvt. Ltd. is satisfactory.
Q5 How do you rate the Interest rates charged by Maa Bagulamuki Energy
Pvt. Ltd.?
Options Percentage of Respondents
Highly Satisfactory 46
Satisfactory 48
Averagely Satisfactory 6
Dissatisfactory 0
Highly Dissatisfactory 0
Interpretation:
46% of the respondents say that Interest Rates charged by Maa Bagulamuki
Energy Pvt. Ltd. is highly satisfactory, 48% of the respondents say that Interest
rates charged by Maa Bagulamuki Energy Pvt. Ltd. is satisfactory, 6% of the
respondents say that Interest rates charged by Maa Bagulamuki Energy Pvt.
Ltd. is averagely Satisfactory.
Q6. How do you rate the EMI of Maa Bagulamuki Energy Pvt. Ltd. as
compared to other companies?
Options Percentage of Respondents
Highly Satisfactory 38
Satisfactory 56
Averagely Satisfactory 4
Dissatisfactory 2
Highly Dissatisfactory 0
Interpretation:
56% of the respondents say that Equated Monthly Installments of Maa
Bagulamuki Energy Pvt. Ltd. is satisfactory as compared to other banks, 38%
of the respondents say that EMI of Maa Bagulamuki Energy Pvt. Ltd. is Highly
Satisfactory, 4% of the respondent say that EMI of Maa Bagulamuki Energy
Pvt. Ltd. is averagely satisfactory as compared to other banks.
Q7 How do you rate the Documentation Procedure of Maa Bagulamuki
Energy Pvt. Ltd.?
Options Percentage of Respondents
Highly Satisfactory 46
Satisfactory 48
Averagely Satisfactory 4
Dissatisfactory 2
Highly Dissatisfactory 0
Interpretation:
Documentation procedure of Maa Bagulamuki Energy Pvt. Ltd. is Satisfactory.
Q8. How do you rate the Processing Fees of Maa Bagulamuki Energy Pvt.
Ltd.?
Options Percentage of Respondents
Highly Satisfactory 56
Satisfactory 38
Averagely Satisfactory 4
Dissatisfactory 2
Highly Dissatisfactory 0
Interpretation:
Most of the respondents are satisfied with the Processing Fees charged by Maa
Bagulamuki Energy Pvt. Ltd..
Q9. How do you rate the Finance Sanctioning Procedure of Maa Bagulamuki
Energy Pvt. Ltd.?
Options Percentage of Respondents
Highly Satisfactory 46
Satisfactory 48
Averagely Satisfactory 4
Dissatisfactory 2
Highly Dissatisfactory 0
Interpretation:
Most of the respondents say that Finance Sanctioning Procedure for LED /
Solar Systems from Maa Bagulamuki Energy Pvt. Ltd. is satisfactory.
Q10 How do you rate the Finance Scheme of Maa Bagulamuki Energy Pvt.
Ltd. For Solar Panel System and LED Lights?
Options Percentage of Respondents
Highly Satisfactory 46
Satisfactory 48
Averagely Satisfactory 6
Dissatisfactory 0
Highly Dissatisfactory 0
Interpretation:
Most of the respondents are satisfied with Finance Scheme of Maa Bagulamuki
Energy Pvt. Ltd. For Solar Panel System and LED Lights. This finance scheme
of the company attract customers to purchase LED Lights / Solar Products of
the company.
CHAPTER - VI
FINDINGS
FINDINGS
100% respondents surveyed are using Solar Panels / Solar Lights sold by
Maa Bagulamukhi Energy Pvt. Ltd. This is because survey was limited to
100 customers and conducted only for the customers of the company.
88% of the respondents are satisfied with the range of LED Lights and
Solar Panel Setup and 12% of the respondents are not satisfied with the
range of LED Lights and Solar Panel Setup.
56% of the respondents say that they have made cash payments for
purchasing LED Lights / Solar Panel System from Maa Bagulamukhi
Energy Pvt. Limited and 44% of the respondents have purchased products
through Finance.
32% of the respondents say that they have taken LED / Solar Systems on
Finance from Maa Bagulamuki Energy Pvt. Ltd. because of Processing
Time required by the Maa Bagulamuki Energy Pvt. Ltd., 22% of the
respondents say that interest rate of Maa Bagulamuki Energy Pvt. Ltd. is
satisfactory.
46% of the respondents say that Interest Rates charged by Maa Bagulamuki
Energy Pvt. Ltd. is highly satisfactory, 48% of the respondents say that
Interest rates charged by Maa Bagulamuki Energy Pvt. Ltd. is satisfactory,
6% of the respondents say that Interest rates charged by Maa Bagulamuki
Energy Pvt. Ltd. is averagely Satisfactory.
56% of the respondents say that Equated Monthly Installments of Maa
Bagulamuki Energy Pvt. Ltd. is satisfactory as compared to other banks,
38% of the respondents say that EMI of Maa Bagulamuki Energy Pvt. Ltd.
is Highly Satisfactory, 4% of the respondent say that EMI of Maa
Bagulamuki Energy Pvt. Ltd. is averagely satisfactory as compared to other
banks.
Documentation procedure of Maa Bagulamuki Energy Pvt. Ltd. is
Satisfactory.
Most of the respondents are satisfied with the Processing Fees charged by
Maa Bagulamuki Energy Pvt. Ltd..
Most of the respondents say that Finance Sanctioning Procedure for LED /
Solar Systems from Maa Bagulamuki Energy Pvt. Ltd. is satisfactory.
Most of the respondents are satisfied with Finance Scheme of Maa
Bagulamuki Energy Pvt. Ltd. For Solar Panel System and LED Lights. This
finance scheme of the company attract customers to purchase LED Lights /
Solar Products of the company.
BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS
H.L.Bedi , Pratical Banking Advances 7th edition, 2008
Subba Rau R.S., A Book on Practical Banking, Ashrama publishing, Page
no. 56, 57
Kumar N. & R.Mittal R., Banking Law & Practice, Anmol publications
Pvt.Ltd. New Delhi.
Rao P., Management of Bank & financial Institutions, Page no. 318
WEBSITE:
www.wikipedia.org
www.mbmindiaenergy.com
ANNEXURE
QUESTIONNAIRE
Name : ___________________________________
Address : ___________________________________
Contact No. : ___________________________________
Q1. Are you using Solar Panels / Solar Lights sold by Maa Bagulamukhi
Energy Pvt. Ltd.?
a. Yes b. No
Q2. Are you satisfied with the range of LED Lights and Solar Panel Setup?
a. Yes b. No
Q3. How did you purchase LED Lights/ Solar Panel System from Maa
Bagulamukhi Energy Pvt. Ltd.?
a. Cash b. Finance
Q4. Reason for taking LED / Solar Systems on Finance from Maa
Bagulamuki Energy Pvt. Ltd.?
a. Faster Processing b. Interest Rates
c. Brand image of the Maa Bagulamuki Energy Pvt. Ltd.
d. Amount of Finance e. Others
Q5 How do you rate the Interest rates charged by Maa Bagulamuki Energy
Pvt. Ltd.?
a. Highly Satisfactory b. Satisfactory
c. Averagely Satisfactory d. Dissatisfactory
e. Highly Dissatisfactory
Q6. How do you rate the EMI of Maa Bagulamuki Energy Pvt. Ltd. as
compared to other companies?
a. Highly Satisfactory b. Satisfactory
c. Averagely Satisfactory d. Dissatisfactory
e. Highly Dissatisfactory
Q7 How do you rate the Documentation Procedure of Maa Bagulamuki
Energy Pvt. Ltd.?
a. Highly Satisfactory b. Satisfactory
c. Averagely Satisfactory d. Dissatisfactory
e. Highly Dissatisfactory
Q8. How do you rate the Processing Fees of Maa Bagulamuki Energy Pvt.
Ltd.?
a. Highly Satisfactory b. Satisfactory
c. Averagely Satisfactory d. Dissatisfactory
e. Highly Dissatisfactory
Q9. How do you rate the Finance Sanctioning Procedure of Maa Bagulamuki
Energy Pvt. Ltd.?
a. Highly Satisfactory b. Satisfactory
c. Averagely Satisfactory d. Dissatisfactory
e. Highly Dissatisfactory
Q10 How do you rate the Finance Scheme of Maa Bagulamuki Energy Pvt.
Ltd. For Solar Panel System and LED Lights?
a. Highly Satisfactory b. Satisfactory
c. Averagely Satisfactory d. Dissatisfactory
e. Highly Dissatisfactory