ORGANISATIONAL STUDY REPORT

“UJJIVAN FINANCIAL SERVICE LTD”

Submitted By
MS. KAVANASHREE H R
USN: 4AL19MBA27
Submitted To

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE
Prof. Johnson Fernandes
Assistant professor
MBA Department
AIET, MIJAR

DEPARTMENT OF BUSINESS ADMINISTRATION

ALVA’S INSTITUTE OF ENGINEERING AND TECHNOLOGY
2020-21
 DECLARATION

I, Ms Kavanashree H R, hereby declare that the report on internship at

“UJJIVAN FINANCIAL SERVICE LTD” is prepared by me under the guidelines of
Prof. Johnson Fernandes, Assistant Professor, Department of Business
Administration, Alava’s Institute of Engineering and Technology, Mijar.

I also declare that this internship work is towards the partial fulfilment of the
university regulations for award of degree of Master of Business Administration by
Visvesvaraya Technological University, Belgaum.

I have undergone the internship for a period of 4 weeks. I further declare that this
report is based on the original study undertaken by me and has not been submitted for
the award of any degree/diploma from any other University/Institution.

Date: KAVANASHREE H R

Place: (4AL19MBA27)
 ACKNOWLWDGEMENT

I am glad to take this opportunity to thank all those who have supported me, directly
and indirectly for the completion of the project.

My heartful gratitude to the Prof. Johnson Fernandes, Assistant Professor. Department

of Business Administration, Alva’s Institute of Engineering and Technology, Mijar.
For providing me an opportunity to complete the study.

I am extremely thankful to my family for giving such beautiful feedbacks during this
project, special thanks to my father without his support I would not have been
successful.

I express my gratitude to all my lecturers, for guiding and teaching me. And big
thanks to my friend (Amrutha) for helping me throughout the project.

And Finally,

I would like to dedicate this project to my beloved parents (Mr. Ramesh

and Mrs Poornima) I am really grateful for your endless support, and countless
advices. Thank you both for everything Appa and Amma.

Thank You,
 TABLE OF CONTENTS

CHAPTER NO CONTENTS PAGE NO

Introduction about the organisation and

1 Industry
1-5

2 Organisational profile
6 - 23

Mckinsey’s 7S framework and

3 Porter’s five force model
24 - 30

4 SWOT Analysis
31 - 32

5
Analysis of financial statement 33 - 38

6
Learning Experience 39 - 40

7 Annexure 41-47
 LIST OF TABLES

TABLE NO TABLE SHOWING PAGE NO

2.1.1 Share holdings chart 15

3.1 Elements of Mckinsey’s model 24

5.1.1 Current ratio 34

5.1.2 Quick ratio 35

5.1.3 Net profit ratio 36-37

5.1.4 EPS 37

5.1.5 Proprietary ratio 38

 EXECUTIVE SUMMARY

This is an opportunity to know how the theories can be applied to practical situation.
As an MBA student of Alva’s institute of engineering and technology this is a part of
study for everyone to undergo internship at some good organisation. So, this purpose I
got the opportunity of internship program in “UJJIVAN FINANCIAL SERVICE
LTD”.

This report is divided into six chapters. And contains the background of the company
nature, vision and mission, and it involves work flow model owner ship pattern of
company.

In third chapter we have done study on Mckinsey’s 7s framework and this helps to
know about the company’s hard and soft elements. After this in fourth chapter we got
to know about the strength, weakness, opportunities, and threats of company. Fifth
chapter is all about analysis of financial statement.

At last in sixth chapter is learning experience here we have given us our own opinion
regarding the study
 CHAPTER: 01
INTRODUCTION ABOUT THE ORGANISATION &INDUSTRY

INTRODUCTION:

This project includes the detail analysis of assets management of the organisation. As
firm is financial institution, more importance given to know differences between bank
and financial institution. The project was of one-month duration. UJJIVAN
FINANCIAL SERVICE LTD. considered as largest MFI in the country in terms of
geographical spread; it was great opportunity for me to understand their system and
standards. Financial institutions are exposed to some level of environmental and
social risks through investees. Financial institutions are companies which are engaged
in the business of dealing with financial monetary transactions such as loans, deposit,
investments. Financial institution serves people by providing loan and all, its
operations are very critical part. Financial institutions are offering many product and
services for individuals and commercial clients. If we look up on business as a
system, it may be regarded as entity functioning in social, political, cultural, economic
environment of the country.

HISTORY OF BANKING INDUSTRY IN INDIA:

Banking in India forms the base for the economic development of the country. Major
changes in the banking system and management have been seen over the years with
the advancement in technology, considering the needs of people. The History of
Banking in India dates back before India got independence in 1947.The banking
sector development can be divided into three phases:

Phase I: The Early Phase which lasted from 1770 to 1969

Phase II: The Nationalisation Phase which lasted from 1969 to 1991

Phase III: The Liberalisation or the Banking Sector Reforms Phase which began in
1991 and continues to flourish till date

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Pre Independence Period (1786-1947):
The first bank of India was the “Bank of Hindustan”, established in 1770 and located
in the then, Indian capital, Calcutta. However, this bank failed to work and ceased
operations in 1832. During the Pre Independence period over 600 banks had been
registered in the country, but only a few managed to survive. Following the path of
Bank of Hindustan, various other banks were established in India. They were:

The General Bank of India (1786-1791)

Oudh Commercial Bank (1881-1958)

Bank of Bengal (1809)

Bank of Bombay (1840)

Bank of Madras (1843)

During the British rule in India, The East India Company had established three banks:
Bank of Bengal, Bank of Bombay and Bank of Madras and called them the
Presidential Banks. These three banks were later merged into one single bank in 1921,
which was called the “Imperial Bank of India.” The Imperial Bank of India was later
nationalised in 1955 and was named The State Bank of India, which is currently the
largest Public sector Bank.

Post Independence Period (1947-1991):

At the time, when India got independence, all the major banks of the country were led
privately which was a cause of concern as the people belonging to rural areas were
still dependent on money lenders for financial assistance.

With an aim to solve this problem, the then Government decided to nationalise the
Banks. These banks were nationalised under the Banking Regulation Act, 1949.
Whereas, the Reserve Bank of India was nationalised in 1949.

Liberalisation Period (1991-Till Date):

Once the banks were established in the country, regular monitoring and regulations
need to be followed to continue the profits provided by the banking sector. The last
phase or the ongoing phase of the banking sector development plays a significant role.

2
To provide stability and profitability to the Nationalised Public sector Banks, the
Government decided to set up a committee under the leadership of Sri M.Narasimham
to manage the various reforms in the Indian banking industry.

INTRODUCTION ABOUT THE ORGANISATION:

Ujjivan Financial Services Limited (UFSL) is a Limited Company domiciled in India

and incorporated under the provisions of the Companies Act 1956. The Company was
registered as NBFC-MFI under Non-Banking Financial Company Micro Finance
Institutions (NBFC-MFIs) directions on September 05 2013. The Company received
approval from Reserve Bank of India (RBI) to set up a Small Finance Bank. Pursuant
to the same the company executed an agreement to transfer its Business undertaking
to its wholly owned subsidiary Ujjivan Small Finance Bank Limited (the Bank). The
bank commenced operations w.e.f 1st February 2017 on which date UFSL ceased to
operate as a micro finance company. Pursuant to this change UFSL surrendered its
NBFC - MFI license and received approval and certificate of registration as NBFC-
ND-SI-CIC (Core Investment Company ) from the RBI on October 10 2017. Ujjivan
Financial Services was one of the largest microfinance institutions in the country
before it transferred its business undertaking to Ujjivan Small Finance Bank Limited
.Ujjivan's business is primarily based on the joint liability group lending model for
providing collateral free small ticket-size loans to economically active poor women.

During the year under review the company repaid majority of legacy borrowing and
reduced cost of funds from 10.4% to 9%. During the year under review USFB rolled
out 187 banking outlets including 47 in Unbanked Rural Centres (URCs). During the
year under review USFB expanded its non microfinance business viz. lending to
Micro And Small Enterprises (MSE) and housing finance. During the year under
review USFB improved backend efficiencies and productivity.

3
 COMPANY PROFILE

Name of organisation : UJJIVAN FINANCIAL SERVICE LTD.

Constitution : Private limited

Headquarters (South) : Bengaluru

Industry : Banking, Finance service

Area Served : National (within India)

Type : Micro finance institution

Founder : Samit ghosh

Nature : To provide full range of financial service

Location of Headquarters : Ujjivan Financial Services Ltd.

Grape Garden, 3rd A cross,

18th Main, 6th Block, Koramangala,

Bengaluru-560095

Founded : 28 December 2004.

Share Price : Rs. 245 (on 5/09/2020)

OBJECTIVE OF THE STUDY:

1. To know functions of financial institutions.

2. To know the distinguish between banks and financial institutions.
3. To know the financial strength and weakness that the firm might have.
4. To know the sources of incomes for financial institutions.

METHODOLOGY:

1. Primary data
Interaction with the branch manager of “UJJIVAN FINANCIAL
SERVICE LTD.”, internal guide of the project.

4
 2. Secondary data
Annual audited statements of “UJJIVAN FINANCIAL SERVICE
LTD.”
This project is based on analytical study on organisation.

LIMITATIONS OF THE STUDY:

1. As far as academic purpose is concern to the time period falls too short to
understand the complete detail of company’s debtors.
2. It is time consuming process.
3. It is based on secondary data.

5
 CHAPTER: 02
ORGANISATIONAL PROFILE

2.1: BACKGROUND OF COMPANY:

UJJIVAN Financial Service Limited started operations as an NBFC in 2005

with the mission of providing a full range of financial services to the economically
active poor who are not adequately served by financial institution. It is the largest
MFI in the country in terms of geographical spread having their operations was spread
across 24 states and union territories, and 209 districts across India. UJJIVAN’S
erstwhile business was primarily based on the joint liability group lending model for
providing collateral free, small ticket- size loans to economically active poor women.
They had also offered individual loans to Micro & Small Enterprises (MSEs).
UJJIVAN had adopted an integrated approach to lending, which combines a high
customer touch-point typical of microfinance, with the technology infrastructure and
related back-end support functions similar to that of retail bank.

On October 7, 2015, UJJIVAN received an in-principle approval from the RBI to set
up a small finance Bank and floated its wholly owned subsidiary “UJJIVAN Small
Finance Bank Limited”. The Company transferred its business to UJJIVAN Small
Finance Bank which subsequent to the RBI licence commenced its banking operations
from February 01, 2017. UJJIVAN Small Finance Bank Ltd. is also included in the
Second Schedule to the Reserve Bank of India Act, 1934.

Subsequent to the transfer of business, as mandated by the RBI, UJJIVAN Financial

Services Limited got itself registered as a Core Investment Company (NBFC-NDSI-
CIC). Its main objects are to carry on the business of making investments in group
company(ies) in the form of securities and providing guarantees etc. and to carry on
financial activities, whether in India or outside, in the nature of investment in bank

6
deposits, money market instruments (including money market mutual funds and liquid
mutual funds), government securities, and to carry on such other activities as may be
permitted and prescribed by the relevant statutory authorities for core investment
companies from time to time.

2.2: NATURE OF BUSINESS:

Ujjivan Financial Services Limited started operations as an NBFC in 2005 with the
mission of providing a full range of financial services to the economically active poor
who are not adequately served by financial institutions.

2.3: VISION AND MISSION OF COMPANY:

MISSION:

Provide full range of financial services to the economically active poor to build better
lives.

VISION:

❖ Provide full range of financial services required by the customers.

❖ Build an institution which is best in class in all aspects: customer service,
innovation, efficiency, work place engagement, leadership, governance and
reputation.
❖ Operate a viable business to provide satisfactory returns of investors.
❖ Provide professionally rewarding careers to employees and, attract and retain
quality talent.
❖ Holistically approach poverty reduction, in partnership with parinaam
Foundation, through social welfare; healthcare, education, vocational training,
shelter, and disaster relief, to enable customer lead a “better life”.

7
2.3: WORKFLOW MODEL:

CEO/MD

COO-
National
Head-HR Chief COO- COO- COO- COO-
Financial North South East West
Officer

Head- Chief tech Head- Head- Audit Head- Product

Operator officer Admin service Managers
quality

Regional COO

Audit Product Reg.HR Reg.opt Admin Accounts

team Manager Manager Manager Manager
leader

State head Reg.

Credit
Manager

Distribution
Manager

Area Manager

Program
Manager

Branch
Manager

Cashier Customer Customer

Regional service
staff Represent
ative

8
2.4: PRODUCTS AND SERVICES:

UJJIVAN prides itself on being a customer-centric organization that follows a

strategy of developing products that directly address customers’ needs. Our portfolio
of loan products encompasses solutions which understand the exact need of our target
segments. The product development process extensively relies on rigorous market
research and product pilots to gather customer insights from the field as inputs into
product development. Once the product is launched, regular customer feedback is
solicited and products are reengineered as required, to complete the loop. The range
of products, from Rs 2,000 to Rs 10,00,000 that UJJIVAN offers helps our customers
finance their various activities.

I. GROUP LOAN:

UJJIVAN originally operated as a semi-urban and urban poor focused

organization, for providing joint liability group based financial services. This
population segment was highly underserved by formal financial institutions
and presented a significant opportunity for UJJIVAN to accomplish its
financial inclusion objectives. In the recent years, UJJIVAN has evolved to
expand coverage to the rural poor, which now accounts for a significant
portion of outstanding portfolio. UJJIVAN operates in this segment primarily
through the joint liability group (JLG) model.

Core Group Loan Products:

1. Business loan:
Provides self-employed women (Fruit vendors/ vegetable vendors/ Petty
shop owners, tailors etc.) for financing diverse business needs such as
capital equipment expenditure, working capital, repayment of high cost
debt.

Features:

❖ Loan range: Rs.6,000–Rs 50,000

❖ Interest rate (Reducing balance): 21.25% p.a.
❖ Repayment tenure:
• Loan amount between Rs. 6,000 – Rs. 15,000: 1 year

9
 • Loan amount between Rs 16,000-30,000: 1 Year/ 2Years (50:50 or
80:20)
• Loan amount between Rs. 31,000-50,000: 2 Years (50:50 or 80:20)
❖ Processing fees: 1% of loan amount (exclusive of taxes)

2. Family Loan:
Family loan helps women with low income to finance a range of family
needs such as school expenses of children, medical care, house repairs,
social and religious obligations, buying consumer durables and the
repayment of high-cost debt previously taken for family needs.

Features:

❖ Loan range: Rs.6,000– Rs 35,000

❖ Interest rate (Reducing balance): 21.25% p.a.
❖ Repayment tenure:
• Loan amount between Rs. 6000 – Rs. 15000: 1 year
• Loan amount between Rs 16000-30000: 1 Year/ 2Years (50:50 or
80:20)
• Loan amount between Rs. 31000- 35,000: 2 Years (50:50 or 80:20)
❖ Processing fees: 1% of loan amount (exclusive of taxes)

3. Agriculture and Allied loan:

Agriculture is the backbone of Indian Economy. Keeping in view the
specific requirements of customers we offer them Agriculture and allied
loan. The Loan helps our women borrowers meet the cost of cultivation
and working capital activities for farming and allied activities.

Features:

❖ Loan range: Rs.6,000–Rs 50,000

❖ Interest rate (Reducing balance): 21.25% p.a.
❖ Repayment tenure:
• Loan amount between Rs. 6000 – Rs. 15000: 1 year
• Loan amount between Rs 16000-30000: 1 Year/ 2Years (50:50 or
80:20)

10
 • Loan amount between Rs. 31000- 50,000: 2 Years (50:50 or 80:20)
❖ Processing fees: 1% of loan amount (exclusive of taxes)
4. Education Loan:
To help promote education among our customers, this loan has been
designed to help finance the education expenses (admissions fees, text
books, uniforms) of children studying from Nursery to
Degree/Diploma/Vocational training.

Features:

❖ Loan range: Rs.5,000–Rs 15,000

❖ Interest rate (Reducing balance): 21.25% p.a.
❖ Repayment tenure: 12 Months
❖ Processing fees: 1% of loan amount (exclusive of taxes)

II. INDIVIDUAL BUSINESS LOAN:

The Individual Business Loan (IBL) caters to the needs of individual micro-
entrepreneurs; our existing Borrowers, who have a running business and
require funds for working capital or fixed assets. A variant of this product
called Individual Bazaar Loan (IBZL) is also offer to micro-entrepreneurs who
do not have a repayment track record with UJJIVAN in selected branches.

1. Individual Business Loan:

The Individual Business Loan (IBL) caters to the needs of individual micro-
entrepreneurs; our existing Borrowers, who have a running business and
require funds for working capital or fixed assets. A variant of this product
called Individual Bazaar Loan (IBZL) is also offer to micro-entrepreneurs who
do not have a repayment track record with UJJIVAN in selected branches.

Features:

❖ Loan range: Rs. 51,000 – Rs.1,50,000

❖ Interest rate (Reducing balance): 23.25% p.a.
❖ Repayment tenure: 6- 24 months
❖ Processing fees: 2% of loan amount (exclusive of taxes)

11
 2. Individual Livestock Loan:
Individual livestock loan is offered to dairy farmers living in villages in the
working areas of UJJIVAN’S branches. The loan helps them meet the finance
needs of livestock business, including purchase of cow/ buffalo, cattle shed
renovation, purchase of feed/fodder, purchase of machinery etc.

Features:

❖ Loan range: Rs. 51,000 – Rs.1,50,000

❖ Interest rate (Reducing balance): 23.25% p.a.
❖ Repayment tenure: 6- 24 months
❖ Processing fees: 1% of loan amount (exclusive of taxes)

3. Home Improvement Loan:

The purpose of this loan is to provide our customers who are renovating or
expanding their houses with timely credit facilities.

Features:

❖ Loan range: Rs. 51,000 – Rs.1,50,000

❖ Interest rate (Reducing balance): 23.25% p.a.
❖ Repayment tenure: 12 – 36 months
❖ Processing fees: 2% of loan amount (exclusive of taxes)

4. Higher Education Loan:

UJJIVAN’S Higher Education Loan (HEL) caters to the needs of the
customers who find it difficult to arrange for higher education of their
children. The product is for our customers who have children at home
pursuing higher education.

Features:

❖ Loan range: Rs.51,000 – 1,50,000

❖ Interest rate (Reducing balance): 23.25% p.a.
❖ Repayment tenure: 6 – 24 months
❖ Processing fees: 1% of loan amount (exclusive of taxes)

12
III. HOUSING & MSE:

1. Secured Home Loan

UJJIVAN offers a tailor-made product for the customers who have higher
amount requirements for house purchase or renovation through their secured
housing loan product.

Features:

❖ Purpose: Loans for Home Improvement/Renovation/Extension, Home

Construction and Home Purchase
❖ Loan range: Rs.2,00,000 – 15,00,000
❖ Interest rate (Reducing balance): 12.75% p.a.
❖ Repayment tenure: 24-180 months
❖ Processing fees: 2% of loan amount (Inclusive of Legal & Technical
Charges) (exclusive of taxes)

2. Unsecured Business Loan:

Unsecured business loan caters to the investment needs of micro and small
entrepreneurs to expand and boost their business. The loan will be free of any
collateral.

Features:

❖ Loan range: Rs.1,50,000 – Rs 3,00,000

❖ Interest rate (Reducing balance): 24% p.a. declining
❖ Repayment tenure: 12-36 months
❖ Processing fees: 2.25% of loan amount (exclusive of taxes)
❖ Processing fees: 2.5% of loan amount (Inclusive of Legal & Technical
Charges) (exclusive of taxes)

IV. PRAGATI INDIVIDUAL LOAN:

These individual loans are given to customers- both UJJIVAN’S existing and
open market- on an individual basis. There is no requirement of collateral
security and guarantor for the Pragati Individual Loan.

13
 Features:
❖ Loan range: Rs. 51,000 – Rs.1,00,000
❖ Interest rate (Reducing balance): 22.25% p.a.
❖ Repayment tenure#: 24-36 months
❖ Processing fees: 1.00% of loan amount (exclusive of taxes)
❖ Life Insurance Premium: As applicable. Please see the life insurance
premium chart in the insurance section.
❖ Stamp Duty, as applicable is the state, is paid by the customer.

Purpose/uses of Pragati Individual Loans:

The loan can be utilized for the following purposes:

❖ Business Expansion
❖ Purchase of Milk Animals and Dairying
❖ Home Improvement
❖ Higher Education (+2 and above) of Children
❖ Farming (Agricultural) Activities carried out by Marginal & Tenant Farmers
❖ Medical Emergency in the family of an Existing Pragati Loan Customer

2.6: OWNERSHIP PATTREN:

Holder's Name No of Shares % Share Holding

No. of shares
121610595 100%
Promoters
0 0%
Foreign institutions
28641725 23.55%
Banks/ Mutual funds
1114469 0.92%
Others
18334175 15.08%
General public
43803008 36.02%
Financial institutions
29717218 24.44%

14
(TAB.:2.1.1)

Share holdings

0% Foreign institutions
24% 24%
Banks/ Mutual funds
Others
1%
General public
15%
Financial institutions
36% Promoters

2.7: ACHIEVEMENTS AND AWARDS:

Ujjivan has consistently been recognized as a best in class institution, whether it is

about providing customer centric services, a fulfilling career to its employees, social
performance, transparency and innovations. Ujjivan was awarded the prestigious
"Microfinance organization for the year" in 2011 and since 2009 it has always been
recognized as 'Best Place to Work' in India- In the current year it has been ranked the
'16th Best Place to Work in Asia' and also among the ' Top 100 innovative
companies'. In 2010, Ujjivan was awarded the 'Gold Social Performance Reporting' as
well as 'MFI Transparency 'awards.

In the year 2010,

❖ Ujjivan wins gold Social Performance Reporting Award for the second year
November 2010.
❖ Ujjivan wins MFI Transparency Award October 2010.

In the year 2011,

❖ Ujjivan among India's top 25 best companies to work for Ranked #1 in the
microfinance industry.
❖ Ujjivan wins Microfinance Organisation of the Year 2011 award.

15
In the year 2012,

❖ Ujjivan ranked 2nd in Financial Services industry among best companies to

work for Ranked #3 in the leadership development.

In the year 2013,

❖ Ujjivan ranked #7 in overall ,#2 in Financial Services Industry as Best

Company to Work For, #2 in Rewards & Recognition Practice,#3in Engaging
the Field Force.
❖ Ujjivan Awarded Innovator in Responsible Business Award by Inc. India
Magazine

In the year 2014,

❖ Ujjivan receives the most inspiring workplace award in NBFC sector.

❖ Ujjivan ranked #9 in overall ,#2 in Financial Services Industry as Best
Company to Work For.

In the year 2015,

❖ Entrepreneur of the year.

❖ Ujjivan is consistently among the top 25 companies to work for in India &
number 1 in microfinance.
❖ Ujjivan Awarded Innovator in Responsible Business Award by Inc. India
Magazine.

2.8: FUTURE GROWTH AND PROSPECTS:

Investors looks for growth in their portfolio may want to consider the prospects of a
company before buying the shares. Buying a great company with a high outcome at a
cheap price is always a good investment, so let’s also take a look at the company’s
future expectations. Ujjivan Financial Services ltd. earnings over the next few years
are expected to double, indicating a very optimistic future ahead. This should lead to
stronger cash flows, feeding into a higher share value.

COMPETITORS:

1. Au small Finance Bank Ltd.

2. Equitas Holding Ltd.

16
QUALITY POLICY:

UJJIVAN has adopted a well-structured client grievance redressal mechanism and

provides customers a reliable and easily accessible interface for timely and fair
resolution of enquires and complaints. The policy aims to minimize the instances of
customer complaints through proper service delivery and review mechanism,

OBJECTIVES OF QUALITY POLICY:

1. Develop a comprehensive fair practices code to adopt guidelines

provided by regulator, self -regulatory organizations and global
standards of client protection principles.
2. Formulate operating guidelines for implementation of Fair Practices
code in an effective manner.
3. Disseminate the policy guidelines in an effective manner to all stake
holders in general and to customers and employee of UJJIVAN in
particular.
4. Review and reinforcement mechanism to ensure high level of
adherence to Fair Practices code.
5. Mechanism for constantly receiving feedback/grievances from
customers in order to improve the implementation of Fair Practices
code.

FAIR PRACTICES CODE:

1. INTEGRITY:

Core Values:
❖ To provide low-income clients and their families, with access
to financial services that are client focused and designed to
enhance their well-being, and are delivered in a manner that is
ethical, dignified, transparent, equitable and cost effective.

17
 2. QUALITY OF SERVICE:

Core values:
❖ To ensure quality services to clients, appropriate to their needs,
and delivered effectively in a convenient and timely manner.
❖ To maintain high standards of professionalism based on
honesty, non-discrimination and customer centricity.

3. TRANSPARENCY:

Core values:
❖ To provide complete and accurate information to clients
regarding all products and services offered.
❖ To create awareness and enable clients and all other
information provided with respect to financial services offered
and availed.

OTHER POLICIES:

1. Dividend distribution policy.

2. Policy on Preservation of documents.
3. Vigil mechanism / Whistle Blower Policy

V. Dividend distribution policy:

Regulation 43A of the Listing Regulations prescribes that the

dividend distribution policy shall include the following
parameters:

1. the circumstances under which the shareholders of the listed entities

may or may not expect dividend.
2. the financial parameters and internal and external factors that shall
be considered while declaring dividend.
3. policy as to how the retained earnings shall be utilized.

18
 4. parameters that shall be adopted with regard to various classes of
shares.
Procedure for payment of dividend:
• The MD & CEO of the Company shall consider and recommend any
amount to be declared/ recommended as dividend to the Board of
Directors of the Company.
• The Agenda for the Board of Directors of the Company where
dividend declaration or recommendation is proposed shall contain the
rationale for the proposal.
• Pursuant to the provisions of the applicable laws and this Policy, the
Board may declare dividend as and when they consider it fit, and
recommend to the shareholders for their approval in the general
meeting of the Company.
• The Company shall ensure compliance of provisions of all applicable
laws in relation to declaration and payment of dividend.

VI. Policy on preservation of documents:

A. Introduction:
In terms of Regulation 9 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations (“LODR” or “Listing
Regulations” or “Regulations”) requires the Board of Directors of a
Listed Company to frame a policy for Preservation of Documents
classifying them in to two categories:
i. Documents whose preservation shall be permanent.
ii. Documents to be preserved for not less than eight years.
B. Objectives:
To determine preservation period for records/documents based on their
reference value and legal requirements. The following aspects are
considered while arriving at the preservation period:
• Company’s own information retrieval needs (reference value)
• Statutory requirements under respective statutes.
• Litigation requirements
• To ensure easy retrieval.
• To ensure that unwanted records do not occupy storage space.
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 C. Mode of preservation:

Records/documents may be preserved either physically or in

electronic form.

D. Policy review:

The KMPs may review the policy from time to time. Material changes
to the policy will need the approval of the Board of Directors.

VII. Vigil mechanism / Whistle Blower Policy:

UJJIVAN Financial Services Limited (“UJJIVAN” or “the Company”), being

a Listed Company (its Equity Shares are listed with both NSE and BSE) in
compliance with the above Act and Regulations has established a Whistle
Blower Policy and effective whistle blower Vigil Mechanism.

Objective:
The Company is committed to adhere to the highest standards of ethical, moral
and legal conduct of business operations. To maintain these standards, the
Company encourages its employees who have concerns about suspected
misconduct to come forward and express these concerns without fear of
punishment or unfair treatment. A Vigil (Whistle Blower) mechanism
provides a channel to the employees and Directors to report to the
management about unethical behaviour, actual or suspected fraud or violation
of the Codes of conduct or legal or regulatory requirements incorrect or
misrepresentation of any financial statements and reports, etc.

Scope of the policy:

This Policy intends to cover serious concerns that could have grave impact on
the operations and performance of the business of the Company and
malpractices and events which have taken place / suspected to have taken
place, misuse or abuse of authority, fraud or suspected fraud, violation of
company rules, manipulations, negligence causing danger to public health and
safety, misappropriation of monies, and other matters or activity on account of

20
 which the interest of the Company is affected and formally reported by whistle
blowers concerning its employees. The policy neither releases employees from
their duty of confidentiality in the course of their work, nor is it a route for
taking up a grievance about a personal situation. Further, this policy also
specifically enables the employees of the Company and those of its subsidiary
to be fully aware of this whistle blower policy and to report instances of any
leak of unpublished price sensitive information by the employees of the
Company to any outsider which is not for legitimate business purposes. This is
to ensure the compliance of SEBI (Prohibition of Insider Trading)
Regulations, 2015, including the amendments carried out in 2018 and made
effective from April 01, 2019 and Code of Conduct for Prevention of Insider
Trading of UJJIVAN Financial Services Limited.

These are the main policies implemented by the company, based on these policies
they are performing.

OVERVIEW:

UJJIVAN Financial Service Ltd. seeks to enable economically active poor to build a
better life and promote financial inclusion by providing full range of financial
services. In pursuing its mission, UJJIVAN had been ensuring principles of
“responsible lending, transparency and ethical values” are followed in all its dealings
with customers, since its inception. UJJIVAN fallows various guidelines issued by
Reserve Bank of India (RBI) on Fair Practices code for NBFC-MFIs and has also
adopted Code of conduct developed by MFIN (Micro finance institution network)
and Sa-Dhan (The association of community Development Finance Institutions).

UJJIVAN also endorsed “Smart Campaign”, a global initiative committed to

embedding

strong client protection practices into the microfinance industry, and implemented
adequate global standards of client protection principles.

Since the organisation has expanded its operations to a greater number of states and
regions across India and number of staff are increasing proportionately, it is
considered appropriate to enhance the scope of existing Board approved policy for

21
better understanding of the fair practices code and effective implementation of the
policy guidelines.

UJJIVAN financial service ltd. serves over 37.13 lakh active customer through 441
branches and 10881 employees spread across 209 districts and 24 states in India.

CORPORATE SOCIAL RESPONSIBILITIES (CSR):

UJJIVAN CSR activities span fallowing key areas and our single-minded goal here is
to holistically approach poverty reduction, facilitating better education, providing free
medical aid to the community in need hence bettering quality of lives through various
social development projects:

❖ Public amenities, Health and hygiene:

• Educating hunger, poverty and malnutrition, promoting health
care including preventive health care and sanitation including
contribution to the Swatch Bharath Kosh set up by central
government for the promotion of sanitation and making
available safe drinking water.
• Community infrastructure development projects: Minor
construction and renovations such as Bus stands (waiting
sheds), Public parks. Schools and Anganwadis, Public toilets,
Water connection-public taps.

❖ Promoting Education:
• To promote education including special education, employment
enhancing vocation skills especially among children, women,
elderly and the differently abled and livelihood enhancement
projects.
• Providing facilities in Schools and Anganwadis initiatives for
girl child education, merit scholarship for technical education.
❖ Social welfare:
• To promote gender equality, empowering women, setting up
homes and hostels for women and orphans, setting up old age
homes, day care centres and such other facilities for senior

22
 citizens and measures for reducing inequalities faced by
socially and economically backward groups

❖ Others:
• Rural development projects and slum area development.
• Any other projects that are relevant and qualifies for CSR
activities under the companies act 2013.

ORGANISATIONAL STRUCTURE:
UJJIVAN has decentralized many activities as it has grown. UJJIVAN opened
regional offices to provide significant support functions in the North, East, and West
of India; operations in the South are supported by the ‘South Regional Team’, which
reports to the MFI’s corporate office in Bangalore. Each region has a Regional
Management Team with significant decision-making authorities. All departments
including Finance, IT, Operations, Audit, Product and Marketing, Administration and
Human Resources operate at the regional level. The majority of support functions for
field operations occur at the regional level. Only accounting and treasury functions
are centralized at the head office.

UJJIVAN offers flexibility in terms of processes across regions. For example,

branch timing and centre meetings vary in accordance with the local needs and
demands. UJJIVAN partners with different banks and service providers in different
regions, based on the local presence.

UJJIVAN has chosen to outsource some key functions. Data entry for all loan
applicants, and customers profiles is outsourced to external agencies. This is done at
the regional level, where regional offices partners with organizations operating in
their region. UJJIVAN also outsources most market research projects as well as IT
functions related to software development.

As UJJIVAN has grown geographically, it has continued to decentralize its’

organizational structure. UJJIVAN has built up the capacity of these regional offices
significantly, developing and institutionalizing the concept of the Regional Leadership
team.

23
 CHAPTER: 03

MCKINSEY’s 7s FRAMEWORK AND PORTER’S FIVE FORCE MODEL

Mckinsey’7s Framework:

In Mckinsey’s model, the seven areas of organisation are divided into the ‘Soft’ and
‘Hard’ areas. Strategy, structure and systems are hard elements that are much easier to
identify and manage when compared to soft elements. On the other hand, soft areas,
although order to manage, are the foundations of the organisation and more likely to
create the sustain competitive advantage.

(TAB:3.1 Elements of model)

Hard Elements Soft Elements

Strategy Style

Structure Staff

Systems Skills

Shared Values

HARD ELEMENTS:

Strategy:

Strategy is plan developed by a firm to achieve sustained competitive advantage

and successfully compete in the market. What does a well-aligned strategy mean in 7s
McKinsey model? In general, a sound strategy is the one that’s clearly articulated, is
long-term, helps to achieve competitive advantage and is reinforced by strong vision,
mission and values. But it’s hard to tell if such strategy is well-aligned with other
elements when elements when analysed alone. So, the key in 7s model is not to look

24
at your company to find the great strategy, structure, systems and etc. but to look if it
aligned with other elements. For example, short-term strategy is usually a poor choice
for a company but if it aligned with other 6 elements, then it may provide strong results.

Ujjivan prides itself on being a customer-centric organization that follows a strategy

of developing products that directly address customer needs. Ujjivan has developed its
entire product suite based on the needs of the various segments of financially
excluded customers. Ujjivan has segmented its customers by geographic location,
occupation and income level, to identify their needs in order to develop suitable
products and services for them. The product development process extensively relies
on rigorous market research and product pilots to gather customer insights from the
field as inputs into product development. Once the product is launched, regular
customer feedback is solicited and products are reengineered as required, to complete
the loop.

Structure:

Structure represents the way business divisions and units are organized and
includes the information of who is accountable to whom. In other words, structure is
the organizational chart of the firm. It is also one of the most visible and easy to change
elements of the framework.

Ujjivan has decentralized many activities as it has grown. By 2008, Ujjivan opened
regional offices to provide significant support functions in the North, East, and West
of India; Operations in the South are supported by the ‘South Regional Team,’ which
reports to the MFI’s corporate office in Bangalore. Each region has a Regional
Management Team with significant decision-making authorities. All departments
including Finance, IT, Operations, Audit, Product & Marketing, Administration and
Human Resources operate at the regional level. The majority of support functions for
field operations occur at the regional level. Only accounting and treasury functions
are centralized at the head office. Ujjivan offers flexibility in terms of processes
across regions. For example, branch hours and centre meetings vary in accordance
with the local needs and demands. Ujjivan partners with different banks and service
providers in different regions, based on the local presence. Ujjivan has chosen to
outsource some key functions. Data entry for all loan applications, and customer

25
profiles is outsourced to external agencies. This is done at the regional level, where
regional offices partner with organizations operating in their region.

Systems:

Systems are the processes and procedures of the company, which reveal
business’ daily activities and how decisions are made. Systems are the area of the firm
that determines how business is done and it should be the main focus for managers
during organizational change.

SOFT ELEMENTS:

Skills:

Skills are the abilities that firm’s employees perform very well. They also include
capabilities and competences. During organizational change, the question often arises
of what skills the company will really need to reinforce its new strategy or new
structure. Developing people is an essential part of life at Ujjivan. With each step
towards further growth, it becomes increasingly important to have a team that works
towards acquiring higher levels of knowledge and finely-honed abilities, with
multiple skills at different levels. Our training Department ensures that learning is a
part of our culture and that our environment is conducive to learning. Training and
development initiatives are broad in nature, from task oriented training to career
development programs. In this way, we not only expand our employees' horizons, but
also improve the capabilities of our teams and the organisation as a whole.

Ujjivan is currently witnessing a multitude of changes in its transitional path to

becoming a SFB. In its evolving phase, Ujjivan realizes the importance of training
and capacity building for meeting the emerging business challenges and attaining
competitive advantage. As such in this FY, on one hand, Ujjivan has continued with
the regular conventional trainings which is required to cover essential work, related
skills, techniques and knowledge; while on the other hand, employees are being
developed with knowledge that is relevant to the upcoming SFB.

Need-based Skill Development: These trainings not only develop our employees for
our organisation, but also provides a tremendous amount of personal growth as well.

26
 ❖ First Time Supervisors Training
❖ Interviewing Skills
❖ Communications Training
❖ People Management
❖ Change Management
❖ Advanced Presentation Skills:
❖ Excel Training
❖ Business Communication

Staff:

Ujjivan is about people who believe about a purposeful involvement that they can
make an extraordinary difference. This mind set forms the cornerstone of our culture.
In addition to a challenging and meaningful work, people here have the chance to give
back to the community and make a positive impact on the millions of lives.
Individuals find the support, coaching, and training it takes to advance their career.In
thier constant endeavor to stay connected with all the employees, we follow an open
door policy to foster a culture of innovation within the organization. Various
communication channels are made available to people for ideas and suggestions to
continually better our policies and processes.

Ujjivan has a distinct "Sexual Harassment Policy" in place, which provides the
employees an option to complain against any such behaviour. Gender sensitization
programs are held continually to primarily propagate our agenda in promoting gender
diversity at workplaceTo enforce safety measures especially for our female staff
employees, Ujjivan has developed a "Female Staff Travel Policy", that ensures that
appropriate measures of safety are undertaken when the female employee is
travelling. Other initiatives include maternity benefits, late night transportation, round
the clock security and many more.

Style:

Style represents the way the company is managed by top-level managers, how
they interact, what actions do they take and their symbolic value. In other words, it is
the management style of company’s leaders. Ujjivan also having a strong management
team because of their effort company got success.
27
Shared Values:

Shared values are at the core of McKinsey 7s model. They are the norms and
standards that guide employee behaviour and company actions and thus, are the
foundation of every organization.

Porter’s Five Force Model:

Porter's Five Forces is a business analysis model that helps to explain why various
industries are able to sustain different levels of profitability. The model was published
in Michael E. Porter's book, "Competitive Strategy: Techniques for analysing
Industries and Competitors" in 1980. The Five Forces model is widely used to analyse
the industry structure of a company as well as its corporate strategy. Porter identified
five undeniable forces that play a part in shaping every market and industry in the
world, with some caveats. The five forces are frequently used to measure competition
intensity, attractiveness, and profitability of an industry or market.

Porter's five forces are:

1. Competition in the industry

2. Potential of new entrants into the industry

3. Power of suppliers

4. Power of customers

5. Threat of substitute products

1. Competition in the industry:

The first of the five forces refers to the number of competitors and their ability to
undercut a company. The larger the number of competitors, along with the number of
equivalent products and services they offer, the lesser the power of a company.
Suppliers and buyers seek out a company's competition if they are able to offer a
better deal or lower prices. Conversely, when competitive rivalry is low, a company
has greater power to charge higher prices and set the terms of deals to achieve higher
sales and profits.

28
Competition in the financial sector matters for a number of reasons. As in other
industries, the degree of competition in the financial sector can affect the efficiency of
the production of financial services. Also, again as in other industries, it can affect the
quality of financial products and the degree of innovation in the sector. Specific to the
financial sector is the link between competition and stability that has long been
recognized in theoretical and empirical research and, most importantly, in the actual
conduct of prudential policy towards banks. Importantly, it has also been shown,
theoretically as well as empirically, that the degree of competition in the financial
sector can effect the access of firms and households to financial services and external
financing. However, hold-up problems may lead borrowers to be less willing to enter
such relationships. Furthermore, less competitive banking systems can be more costly
and exhibit a lower quality of services thus providing less financing and encouraging
less growth. These effects may further vary by the degree of a country’s financial
sector

2. Potential of New Entrants into an Industry:

A company's power is also affected by the force of new entrants into its market. The
less time and money it costs for a competitor to enter a company's market and be an
effective competitor, the more an established company's position could be
significantly weakened. An industry with strong barriers to entry is ideal for existing
companies within that industry since the company would be able to charge higher
prices and negotiate better terms.

3. Power of Suppliers:
The next factor in the five forces model addresses how easily suppliers can drive up
the cost of inputs. It is affected by the number of suppliers of key inputs of a good or
service, how unique these inputs are, and how much it would cost a company to
switch to another supplier. The fewer suppliers to an industry, the more a company
would depend on a supplier. As a result, the supplier has more power and can drive up
input costs and push for other advantages in trade. On the other hand, when there are
many suppliers or low switching costs between rival suppliers, a company can keep
its input costs lower and enhance its profits.

29
4. Power of Customers:
The ability that customers have to drive prices lower or their level of power is one of
the five forces. It is affected by how many buyers or customers a company has, how
significant each customer is, and how much it would cost a company to find new
customers or markets for its output. A smaller and more powerful client base means
that each customer has more power to negotiate for lower prices and better deals. A
company that has many, smaller, independent customers will have an easier time
charging higher prices to increase profitability.

5. Threat of Substitutes:
The last of the five forces focuses on substitutes. Substitute goods or services that can
be used in place of a company's products or services pose a threat. Companies that
produce goods or services for which there are no close substitutes will have more
power to increase prices and lock in favourable terms. When close substitutes are
available, customers will have the option to forgo buying a company's product, and a
company's power can be weakened.

Ujjivan financial services is microfinance institution, so here subtitute is nothing but

other micro finance institutions.

30
 CHAPTER: 04

SWOT ANALYSIS

STRENGTHS:

❖ Strong annual EPS growth

❖ Effectively using its capital to generate profit
❖ Effectively using shareholders fund -Return on equity (ROE)
❖ Efficient in managing assets to generate profits
❖ Growth in net profit with increasing profit margin (QoQ)
❖ Increasing profits every quarter
❖ Annual net profits improving
❖ Book value per share improving

WEAKNESSES:

❖ Companies with growing costs YoY for long term projects

❖ Red Flag: High interest payments compared to earnings
❖ Bearish Engulfing (Bearish Reversal)
❖ MFs decreased their shareholding last quarter
❖ Poor cash generated from core business-declining Cash flow from operations
❖ Decline in quarterly net profit (YoY)
❖ Decline in quarterly net profit with falling profit margin (YoY)
❖ Companies with high debt
❖ Declining net cash flow: companies not able to generate net cash
❖ Recent results: Declining operating profit margin and net profits (YoY)

OPPORTUNITIES:

❖ Brokers upgraded recommendation or target price in the past three months

❖ Highest recovery from 52 week low
❖ RSI indicating price strength

31
THREATS:

❖ Increasing trend in non-core income.

❖ Increase in provisions in recent results

32
 CHAPTER: 05
ANALYSIS OF FINANCIAL STATEMENT

Ratio Analysis:
I. Financial Ratios:

Financial ratios are measurement of a business financial performance.

Ratios help an owner or other interested parties develop an understand the
overall financial health of the company.

1. Liquidity Ratio:

Liquidity financial ratios show the solvency of a company based on its

assets versus its liabilities; things like working capital per dollar of
sales and the current ratio, quick ratio.

2. Profitability Ratio:

A firm's profitability financial ratios are designed to give you an idea

of how lucrative it is relative to some particular metric. A firm that
has high gross profit margins from a sustainable business from a core
product like bleach, laundry detergent, or chocolate, to provide an
illustration, is going to be much harder to put out of business when the
economy turns down than one that has razor-thin margins.

❖ Net profit ratio

❖ Earning per share
❖ Proprietary ratio

33
5.1.1 Current ratio:
The current ratio is a liquidity ratio that measures a company's ability to pay
short-term obligations or those due within one year. It tells investors and
analysts how a company can maximize the current assets on its balance sheet
to satisfy its current debt and other payables.
Current assets/Current liabilities=current ratio
(TAB: 5.1.1)
Year Current Assets Current Liabilities Current Ratio
2020 17,738.05 4,804.83 3.69:1
2019 13,600.21 4,677.95 2.91:1
2018 9,196.06 117.79 78.07:1
2017 6,293.70 3,826.56 1.644:1

current Ratio

90
78.07
80

70

60

50
current Ratio
40

30

20

10
3.69 2.91 1.64
0
2020 2019 2018 2017

Interpretation:
From the above chart, the current ratio is showing a declining trend and the
ratio is very high in the year 2018. Compared to the other years. This is due to
the huge fluctuation in economy.

34
5.1.2 Quick Ratio:
The quick ratio is an indicator of a company’s short-term liquidty position and
measures a company’s ability to meet its short-term obligations with its most
liquid assets.

Current Assets – Inventories/Current Liabilities

(TAB: 5.1.2)
Year Current Assets Current Liabilities Current Ratio
2020 17,738.05 4,804.83 3.69:1
2019 13,600.21 4,677.95 2.91:1
2018 9,196.06 117.79 78.07:1
2017 6,293.70 3,826.56 1.644:1

Quick Ratio

90
78.07
80

70

60

50
Quick Ratio
40

30

20

10 3.69 2.91 1.64

0
2020 2019 2018 2017

Interpretation:
There is no change in quick ratio it remains same as current ratio, because they
have not shown inventories to deduct from current assets.

35
5.1.3: Net Profit Ratio:
The net profit margin is equal to how much net income or profit is generated as
a percentage of revenue. Net profit margin is the ratio of net profits
to revenues for a company or business segment. Net profit margin is typically
expressed as a percentage but can also be represented in decimal form. The net
profit margin illustrates how much of each dollar in revenue collected by a
company translates into profit.

Net profit /Net Sales * 100

(TAB: 5.1.3)
Year NP Ratio
298.66/2859*100
2020 = 10.44%
150.44/1944.27*100
2019 = 7.73%
25.95/1514*100
2018 = 1.71%
207.67/1349.37*100
2017 =15.39%

Net Profit Ratio

18

16 15.39

14

12
10.44
10
7.73 Net Profit…
8

4
1.71
2

0
2020 2019 2018 2017

36
 Interpretation:
From the above chart of net profit ratio we can see the different trends. In
2017 its peak but in 2018 it had fell down. After that increasing accordingly.

5.1.4: Earning Per Share:

EPS is the portion of a company's profit that is allocated to every individual

share of the stock. It is a term that is of much importance to investors and
people who trade in the stock market. The higher the earnings per share of a
company, the better is its profitability.
Net Profit/ No. of Equity shares
(TAB: 5.1.4)
Year EPS
2020 Rs. 38.21
2019 Rs. 17.42
2018 Rs. 5.57
2017 Rs. 18.45

EPS

45

40 38.21

35

30

25
18.45
EPS
20 17.42

15

10
5.57
5

0
2020 2019 2018 2017

Interpretation:
EPS earning per share comparing to previous years, this year means 2020 has more
earnings.
37
5.1.5: Proprietary Ratio:
The proprietary ratio (also known as the equity ratio) is the proportion of
shareholders' equity to total assets, and as such provides a rough estimate of
the amount of capitalization currently used to support a business.

Share capital/ Total assets* 100

(TAB: 5.1.5)
Year Share capital Total assets Proprietary
Ratio
2020 121.60 18,711.08 0.649882
2019 121.17 14,025.89 0.863902
2018 120.86 9,522.24 1.269239
2017 119.38 8,478.59 1.408017

Proprietory ratio

1.6
1.408017
1.4
1.269239
1.2

1
0.863902
0.8 Proprietory ratio
0.649882
0.6

0.4

0.2

0
2020 2019 2018 2017

Interpretation:
Proprietary ratio showing same declining trend. From 2017 to 2020

38
 CHAPTER: 06
LEARNING EXPERIENCE

Knowledge comes out by studying volumes of books through continuous learning.

These practical situations can never be simulated. Only the real time experience would
allow a person to learn and there by acquire knowledge.

It had been great experience, I personally explored many things during the
project, and difficulty of documentation is also came to my knowledge. Being a finance
student its our duty to know about financial system of nation as well as global financial
system, because of this project I got to know our Financial system, Banks, Nationalized
banks, Private banks, Shares, Shareholders, Stakeholders, MFI, etc., likewise
understood many stuffs, along with these subject related matters even I learnt to analyse
the things by own. And also started use own vocabulary. It’s a beginning of new phase
I wish it goes long.

It helped me to knew, history of company, some rules and regulations regarding

financial system, principles of company, policies, their product and service,
organisational structure, ticket size, PO, financial position.

The study had provided chance to understand the cordial relationship between
the workers and the management, the success of the organization depends on the
combined efforts of both the employees and management, harmony is very important
thing. UJJIVAN FINANCILA SERVICE LTD. has many employee welfare policy,
they directly and indirectly taking care of their employees.

It is covered aspects like nature of the business, vision, mission, Quality policy, ,
organization structure, Achievement/Awards, if Any and Future growth. McKinsey’s
framework with reference to UJJIVAN FINANCIAL SERVICE LTD., I have learnt
SWOT analysis practical at UJJIVAN FINANCIAL SERVICE LTD. And the analysis
of financial statement is done using three techniques like comparative analysis,
common size analysis and ratio analysis, helped to learn the real financial practices.

39
Overall speaking, this project made me little serious and responsible towards work, as
I said it’s a kickstart to do things by own.

BIBLIOGRAPHY:

❖ Annual report of UJJIVAN FINANCIAL SERVICE LTD.

❖ Direct interview with branch manager.
❖ Previous project report.
❖ www.ujjivan.com

40
 ANNEXURE

FINANCIAL STATEMENT OF UJJIVAN FIANCIAL SERVICE LTD.

PROFIT AND LOSS ACCOUNT:

(in RS. Cr)

MAR 20 MAR 19 MAR 18 MAR 17

PARTICULARS 12 12 12 12
(months) (months) (months) (months)

INCOMES:

REVENUE FROM OPERATIONS

[GROSS] 2,859.76 1,944.27 1,514.78 1,349.37

Less: Excise/ Service Tax/Other

Levies 0.00 0.00 0.00 0.00

REVENUE FROM OPERATIONS

[NET] 2,859.76 1,944.27 1,514.78 1,349.37

TOTAL OPERATING REVENUES 2,859.76 1,944.27 1,514.78 1,349.37

Other Income 109.61 69.36 29.92 48.25

TOTAL REVENUE 2,969.38 2,013.62 1,544.71 1,397.62

EXPENSES:

Cost of Materials Consumed 0.00 0.00 0.00 0.00

Operating and Direct Expenses 0.00 0.00 0.00 0.00

Employee Benefit Expenses 734.71 540.53 373.35 271.62

Finance Costs 1,114.92 727.03 601.56 542.72

Depreciation and Amortisation

Expenses 165.99 60.62 41.38 12.63

Other Expenses 363.39 415.58 247.35 173.80

TOTAL EXPENSES 2,553.47 1,809.53 1,500.07 1,075.89

PROFIT/LOSS BEFORE
EXCEPTIONAL, 415.91 204.10 44.63 321.74

41
EXTRAORDINARY ITEMS AND
TAX

Exceptional Items 0.00 0.00 0.00 0.00

PROFIT/LOSS BEFORE TAX 415.91 204.10 44.63 321.74

TAX EXPENSES-CONTINUED
OPERATIONS

Current Tax 115.76 37.22 33.88 136.99

Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00

Deferred Tax 1.49 16.44 -15.20 -22.90

Other Direct taxes 0.00 0.00 0.00 0.00

TOTAL TAX EXPENSES 117.25 53.65 18.68 114.07

PROFIT/LOSS AFTER TAX AND

BEFORE EXTRAORDINARY
ITEMS 298.66 150.44 25.95 207.67

PROFIT/LOSS FROM
CONTINUING OPERATIONS 298.66 150.44 25.95 207.67

PROFIT/LOSS FOR THE

PERIOD 298.66 150.44 25.95 207.67

42
 BALANCE SHEET
(in RS. Cr) (Consolidated)

MAR 20 MAR 19 MAR 18 MAR 17

PARTICULARS
12 (Months) 12 (Months) 12 (Months) 12 (Months)
LIABILITIES:

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS:

Equity Share Capital 121.60 121.17 120.86 119.38

TOTAL SHARE CAPITAL 121.60 121.17 120.86 119.38

Reserves and Surplus 2,657.70 1,723.95 1,591.65 1,635.88

TOTAL RESERVES AND

SURPLUS 2,657.70 1,723.95 1,591.65 1,635.88

TOTAL SHAREHOLDERS
FUNDS 2,839.54 1,877.68 1,731.90 1,755.26

Minority Interest 331.20 0.00 0.00 0.00

NON-CURRENT LIABILITIES:

Long Term Borrowings 10,655.59 7,409.18 7,625.49 2,839.08

Deferred Tax Liabilities [Net] 0.00 0.00 0.00 0.00

Other Long Term Liabilities 33.06 27.17 22.73 5.98

Long Term Provisions 46.78 33.91 24.34 51.19

TOTAL NON-CURRENT
LIABILITIES 10,735.43 7,470.26 7,672.56 2,896.24
CURRENT LIABILITIES:

Short Term Borrowings 3,952.62 4,433.00 0.00 0.00

Trade Payables 64.05 44.32 24.99 14.01

Other Current Liabilities 788.16 200.63 92.80 3,713.00

Short Term Provisions 0.00 0.00 0.00 99.56

TOTAL CURRENT LIABILITIES 4,804.83 4,677.95 117.79 3,826.56

43
TOTAL CAPITAL AND
LIABILITIES 18,711.08 14,025.89 9,522.24 8,478.59

ASSETS:

NON-CURRENT ASSETS

Tangible Assets 721.44 207.15 118.46 72.19

Intangible Assets 77.42 75.25 75.71 64.42

Capital Work-In-Progress 20.63 2.10 4.20 3.17

FIXED ASSETS 819.49 284.50 198.38 139.77

Non-Current Investments 0.00 0.00 0.00 357.27

Deferred Tax Assets [Net] 89.21 75.90 92.00 46.97

Long Term Loans And Advances 0.00 0.00 0.00 21.98

Other Non-Current Assets 64.33 65.28 35.81 1,618.89

TOTAL NON-CURRENT ASSETS 973.03 425.68 326.18 2,184.89

CURRENT ASSETS:

Current Investments 2,429.20 1,547.81 1,244.08 1,089.41

Inventories 0.00 0.00 0.00 0.00

Trade Receivables 0.00 0.00 0.00 4,282.09

Cash and Cash Equivalents 1,344.42 1,097.25 613.09 760.08

Short Term Loans and Advances 13,933.73 10,930.53 7,322.62 83.93

Other Current Assets 30.69 24.62 16.27 78.20

TOTAL CURRENT ASSETS 17,738.05 13,600.21 9,196.06 6,293.70

TOTAL ASSETS 18,711.08 14,025.89 9,522.24 8,478.59

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AWARDS:

(2016) 3rd Best Place to Work For in India and #1 in Microfinance

(2016) PR Council of India- Chanakya Awards

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(2015) Ujjivan is consistently among the top 25 companies to work for in India &
number 1 in microfinance.

(2012) Ujjivan ranked 2nd in Financial Services industry among best companies to
work for Ranked #3 in the leadership development

(2011)Ujjivan wins Microfinance Organisation of the Year

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(2010)Ujjivan wins Gold Social Performance Reporting Award

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