A

SYNOPSIS
ON

Capital Venture
Submitted in the partial fulfillment of the requirement
For the award of degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)
To
AMITY UNIVERSITY HARYANA

SUBMITTED TO: -

SUBMITTED BY:Vikas Singh

Sikarwar
MBA(GEN)- 4th

MR P.K.SHARMA SIR

Sem

AMITY BUSINESS SCHOOL,

(2014-15)

PERFORMA FOR APPROVAL OF PROJECT PROPOSAL

Name of the Student

Class Roll No.

:A50001913014

Institutes Name

Title of the project

VIKAS SINGH SIKARWAR

Amity Business School

CAPITAL VENTURE

Subject Area

FINANCE

Name and Designation of

MR P.K.SHARMA SIR

the Supervisor

Signature of the Supervisor

Signature of the Director

Date:-

Signature of the Student

SYNOPSIS

APPROVED

NOT APPROVED

Comments/Suggestion for reformulating the project:-

Authorised Signatory
Date:

TABLE OF CONTENTS
Page No.
Introduction
Significance of the study
Conceptualization
Focus of the problem
Objectives of the study
Review of existing literature
Research Methodology
Organization of the study
Limitations of the study
Bibliography

INTRODUCTION

Venture capital (VC) is financial capital provided to early-stage, highpotential, growth startup companies. The venture capital fund earns money by
owning equity in the companies it invests in, which usually have a novel
technology or business model in high technology industries, such
as biotechnology and IT. The typical venture capital investment occurs after
the seed funding round as the first round of institutional capital to fund growth
(also referred to as Series A round) in the interest of generating a return through
an eventual realization event, such as an IPO or trade sale of the company.
Venture capital is a type of private equity.

OBJECTIVE
TO UNDERSTAND ROLE OF CAPITAL VENTURE IN COUNTRIES
ECONOMIC GROWTH
TO MATCH THE PERFORMANCE OF THE IDFI AND IFCI

TO EVALAUTE THE FINANCIAL STABILITY OF BOTH THE

COMPANIES

IFCI
BALANCE SHEET

Balance Sheet of IFCI

------------------- in Rs. Cr. ------------------Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

1,924.96

1,925.88

1,001.68

1,001.68

1,001.68

Equity Share Capital

Sources Of Funds
1,661.12

1,662.04

737.84

737.84

737.84

Share Application Money

0.00

0.00

0.00

0.00

0.00

Preference Share Capital

263.84

263.84

263.84

263.84

263.84

Reserves

5,055.64

4,757.31

3,575.79

3,023.72

2,413.80

Networth

6,980.60

6,683.19

4,577.47

4,025.40

3,415.48

310.00

17,915.25

0.00

0.00

0.00

Secured Loans
Unsecured Loans

17,280.06

0.00

17,877.66

19,264.57

13,562.46

Total Debt

17,590.06

17,915.25

17,877.66

19,264.57

13,562.46

Total Liabilities

24,570.66

24,598.44

22,455.13

23,289.97

16,977.94

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

1,559.56

1,540.60

1,498.79

1,513.61

1,738.55

Application Of Funds
Gross Block
Less: Revaluation Reserves
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances

0.00

0.00

958.28

978.00

1,194.32

418.06

387.30

347.41

313.57

307.38

1,141.50

1,153.30

193.10

222.04

236.85

5.62

19.29

20.29

12.57

18.93

7,513.53

8,641.41

10,761.87

8,005.56

5,882.43

0.00

0.00

0.00

0.00

0.00

33.82

106.03

15.58

75.67

59.95

535.83

514.67

40.59

36.51

20.59

569.65

620.70

56.17

112.18

80.54

19,759.01

15,448.94

15,336.07

16,093.25

12,158.20

0.00

0.00

858.02

491.35

17.94

20,328.66

16,069.64

16,250.26

16,696.78

12,256.68

Deferred Credit

0.00

0.00

0.00

0.00

4,138.67

1,043.86

4,543.92

1,036.85

811.53

279.98

241.34

226.47

610.13

605.42

Total CL & Provisions

4,418.65

1,285.20

4,770.39

1,646.98

1,416.95

Net Current Assets

15,910.01

14,784.44

11,479.87

15,049.80

10,839.73

0.00

0.00

0.00

0.00

0.00

24,570.66

24,598.44

22,455.13

23,289.97

16,977.94

1,185.60

2,880.99

216.29

154.70

372.22

40.41

38.62

58.46

50.98

42.71

Current Liabilities
Provisions

Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)

0.00

IFCI
Cash Flow

------------------- in Rs. Cr. ------------------Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax

660.45 664.12 957.74 1166.25 1115.26

Net Cash From Operating Activities

131.07 -675.97 467.24

Net Cash (used in)/from

Investing Activities
Net Cash (used in)/from Financing Activities

964.74

520.74

-6.63 -48.30 -11.34 -2166.45 -1996.13

-194.23 840.33 -85.15 1691.04 1030.33

Net (decrease)/increase In Cash and Cash Equivalents

-69.79 116.06 370.75

489.33 -445.06

Opening Cash & Cash Equivalents

605.62 398.61 527.86

38.53

483.59

Closing Cash & Cash Equivalents

535.83 514.67 898.61

527.86

38.53

IFCI
Standalone Profit &
Loss account

------------------- in Rs. Cr. -------------------

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Income
Sales
Turnover
Excise Duty
Net Sales

2,884.51
0.00
2,884.51

2,705.85 2,607.81 2,286.51 1,655.66

0.00

0.00

0.00

0.00

2,705.85 2,607.81 2,286.51 1,655.66

Other Income

66.75

53.45

56.93

151.87

23.67

Stock
Adjustments

0.00

0.00

0.00

0.00

0.00

Total Income

2,951.26

2,759.30 2,664.74 2,438.38 1,679.33

Expenditure
Raw Materials
Power & Fuel
Cost
Employee
Cost
Other
Manufacturing
Expenses
Selling and
Admin
Expenses
Miscellaneous
Expenses
Preoperative
Exp
Capitalised
Total
Expenses

Operating
Profit

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

58.89

60.94

64.37

64.92

57.28

0.00

0.00

0.00

0.00

0.00

0.00

0.00

-140.47

585.85

333.82

552.89

209.30

24.31

25.23

20.28

0.00

0.00

0.00

0.00

0.00

611.78

270.24

-51.79

676.00

411.38

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

2,272.73

2,435.61 2,659.60 1,610.51 1,244.28

PBDIT

2,339.48

2,489.06 2,716.53 1,762.38 1,267.95

Interest

1,665.99

1,814.61 1,871.08 1,318.97

PBDT
Depreciation
Other Written
Off
Profit Before
Tax
Extra-ordinary
items
PBT (Post
Extra-ord
Items)
Tax

891.18

673.49

674.45

845.45

443.41

376.77

13.04

10.33

11.67

10.28

8.98

0.00

0.00

0.00

0.00

0.00

660.45

664.12

833.78

433.13

367.79

0.00

0.00

123.96

733.12

747.47

660.45

664.12

957.74 1,166.25 1,115.26

152.35

213.25

294.12

460.00

444.32

Reported Net
508.10
450.87
663.62 706.25
670.94
Profit
Total Value
611.78
270.24
-51.79 676.00
411.38
Addition
Preference
0.26
0.26
0.26
0.26
0.26
Dividend
Equity
166.20
166.20
73.78
73.78
71.81
Dividend
Corporate
28.30
27.01
12.02
12.02
11.97
Dividend Tax
Per share data
(annualised)
Shares in
16,620.37 16,620.37 7,378.37 7,378.37 7,378.37
issue (lakhs)
Earning Per
3.06
2.71
8.99
9.57
9.09
Share (Rs)
Equity
10.00
10.00
10.00
10.00
10.00
Dividend (%)
Book Value
40.41
38.62
58.46
50.98
42.71
(Rs)

IDFI COMAPANY
BALANCE SHEET
Balance Sheet of IDFC

------------------- in Rs. Cr. -------------------

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

1,516.29

1,514.73

1,512.36

2,300.95

1,300.61

Equity Share Capital

Sources Of Funds
1,516.29

1,514.73

1,512.36

1,460.95

1,300.61

Share Application Money

0.12

0.30

0.60

4.14

0.26

Preference Share Capital

0.00

0.00

0.00

840.00

0.00

Reserves

13,192.66

11,942.58

10,627.61

8,765.06

5,522.24

Networth

14,709.07

13,457.61

12,140.57

11,070.15

6,823.11

Secured Loans

42,867.49

38,597.23

33,535.98

35,435.01

0.00

Unsecured Loans

3,385.13

1,478.24

3,645.56

862.26

26,522.88

Total Debt

46,252.62

40,075.47

37,181.54

36,297.27

26,522.88

Total Liabilities

60,961.69

53,533.08

49,322.11

47,367.42

33,345.99

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

438.05

435.38

436.05

441.67

433.26

Application Of Funds
Gross Block
Less: Revaluation Reserves

0.00

0.00

0.00

0.00

0.00

Less: Accum. Depreciation

160.38

143.72

121.86

99.71

75.44

Net Block

277.67

291.66

314.19

341.96

357.82

0.90

0.00

0.16

0.64

4.63

11,198.88

11,272.40

8,485.71

8,107.42

5,778.84

Capital Work in Progress

Investments
Inventories

0.00

0.00

0.00

0.00

0.00

Sundry Debtors

643.10

50.76

371.46

15.45

45.93

Cash and Bank Balance

217.46

127.52

17.82

225.55

32.03

Total Current Assets

860.56

178.28

389.28

241.00

77.96

Loans and Advances

Fixed Deposits

61,426.32

58,251.91

50,966.60

39,558.82

28,121.22

0.00

0.00

572.00

743.00

0.00

62,286.88

58,430.19

51,927.88

40,542.82

28,199.18

0.00

0.00

0.00

0.00

0.00

12,185.23

15,776.84

10,840.25

1,158.41

774.23

617.41

684.33

565.58

467.00

220.25

Total CL & Provisions

12,802.64

16,461.17

11,405.83

1,625.41

994.48

Net Current Assets

49,484.24

41,969.02

40,522.05

38,917.41

27,204.70

0.00

0.00

0.00

0.00

0.00

60,961.69

53,533.08

49,322.11

47,367.43

33,345.99

3,499.04

3,042.74

2,645.74

2,183.55

914.84

97.01

88.84

80.27

70.00

52.46

Total CA, Loans & Advances

Deferred Credit
Current Liabilities
Provisions

Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)

IDFC
Cash Flow

------------------- in Rs. Cr. -------------------

Net Profit Before Tax

Net Cash From Operating Activities
Net Cash (used in)/from
Investing Activities
Net Cash (used in)/from Financing Activities
Net (decrease)/increase In Cash and Cash Equivalents

Mar '14 Mar '13 Mar '12

Mar '11 Mar '10

12 mths 12 mths 12 mths

12 mths 12 mths

2358.19 2467.98 2201.36

1730.45 1317.14

-1604.32 -5768.05 -9223.31 -11592.53 -3401.99

553.39 -1194.45

-38.97

-496.98

57.63

1145.83 7002.32 9099.08 13008.83 2720.08

94.90

39.82 -163.20

919.32 -624.29

Opening Cash & Cash Equivalents

101.20

61.38

224.58

31.27

655.55

Closing Cash & Cash Equivalents

196.10

101.20

61.38

950.59

31.27

IDFC
Standalone Profit &
Loss account

------------------- in Rs. Cr. -------------------

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

8,214.21

7,765.30

6,094.32

4,271.82

3,144.71

0.00

0.00

0.00

0.00

0.00

8,214.21

7,765.30

6,094.32

4,271.82

3,144.71

Other Income

17.72

11.19

-33.49

177.08

423.41

Stock
Adjustments

0.00

0.00

0.00

0.00

0.00

8,231.93

7,776.49

6,060.83

4,448.90

3,568.12

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

129.00

136.99

149.12

107.63

104.43

0.00

0.00

0.00

0.00

0.00

0.00

0.00

226.91

64.37

47.52

713.49

478.88

29.68

170.06

121.99

Income
Sales
Turnover
Excise Duty
Net Sales

Total Income
Expenditure
Raw Materials
Power & Fuel
Cost
Employee
Cost
Other
Manufacturing
Expenses
Selling and
Admin
Expenses
Miscellaneous
Expenses

Preoperative
Exp
Capitalised
Total
Expenses

0.00

0.00

0.00

-11.38

0.00

842.49

615.87

405.71

330.68

273.94

Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Operating
Profit

7,371.72

7,149.43

5,688.61

3,941.14

2,870.77

PBDIT

7,389.44

7,160.62

5,655.12

4,118.22

3,294.18

Interest

5,006.96

4,665.19

3,422.48

2,354.94

1,944.10

PBDT

2,382.48

2,495.43

2,232.64

1,763.28

1,350.08

24.29

27.45

31.28

32.70

32.84

0.00

0.00

0.00

0.00

0.00

2,358.19

2,467.98

2,201.36

1,730.58

1,317.24

0.00

0.00

0.02

0.00

0.00

2,358.19

2,467.98

2,201.38

1,730.58

1,317.24

657.07

703.00

598.70

453.44

304.40

Depreciation
Other Written
Off
Profit Before
Tax
Extra-ordinary
items
PBT (Post
Extra-ord
Items)
Tax

Reported Net
1,701.12 1,764.98 1,602.96 1,277.15 1,012.84
Profit
Total Value
842.49
615.87
405.71
330.68
273.95
Addition
Preference
0.00
0.00
43.63
32.17
0.00
Dividend
Equity
394.24
393.84
347.87
292.51
195.13
Dividend
Corporate
67.00
63.00
52.27
45.07
22.21
Dividend Tax
Per share data
(annualised)
Shares in
15,162.86 15,147.28 15,123.63 14,609.48 13,006.12
issue (lakhs)
Earning Per
11.22
11.65
10.31
8.52
7.79
Share (Rs)
Equity
26.00
26.00
23.00
20.00
15.00
Dividend (%)
Book Value
97.01
88.84
80.27
70.00
52.46
(Rs)

COMAPARISON OF IFCI AND IDFC

IDFC
BSE: 500106
BSE: 532659

NSE: IFCI

ISIN: INE039A01010

NSE: IDFC

Industry : Finance - Term Lending Institutions

ISIN: INE043D01016

Mar '10

Industry : Finance - Term Lending Institutions

Mar '10

Mar '11

Mar '12

Mar '13

Mar '14

12 mths

12 mths

12 mths

12 mths

12 mths

Sources Of
Funds

Total Share
1,300.61 2,300.95 1,512.36 1,514.73 1,516.29
Capital
Equity Share
1,300.61 1,460.95 1,512.36 1,514.73 1,516.29
Capital
Share
Application
0.26
4.14
0.60
0.30
0.12
Money
Preference
0.00
840.00
0.00
0.00
0.00
Share Capital
Reserves
5,522.24 8,765.06 10,627.61 11,942.58 13,192.66
Revaluation
0.00
0.00
0.00
0.00
0.00
Reserves
Networth
6,823.11 11,070.15 12,140.57 13,457.61 14,709.07
Secured Loans
0.00 35,435.01 33,535.98 38,597.23 42,867.49
Unsecured
26,522.88
862.26 3,645.56 1,478.24 3,385.13
Loans
Total Debt
26,522.88 36,297.27 37,181.54 40,075.47 46,252.62
Total
33,345.99 47,367.42 49,322.1153,533.08 60,961.69
Liabilities
Mar '10

Mar '11

Mar '12

Mar '13

Mar '14

12 mths

12 mths

12 mths

12 mths

12 mths

Application Of
Funds

Gross Block
433.26
441.67
436.05
435.38
438.05
Less: Accum.
75.44
99.71
121.86
143.72
160.38
Depreciation
Net Block
357.82
341.96
314.19
291.66
277.67
Capital Work in
4.63
0.64
0.16
0.00
0.90
Progress
Investments
5,778.84 8,107.42 8,485.71 11,272.40 11,198.88
Inventories
0.00
0.00
0.00
0.00
0.00
Sundry
45.93
15.45
371.46
50.76
643.10
Debtors
Cash and
32.03
225.55
17.82
127.52
217.46
Bank Balance
Total Current
77.96
241.00
389.28
178.28
860.56
Assets
Loans and
28,121.22 39,558.82 50,966.60 58,251.91 61,426.32
Advances
Fixed Deposits
0.00
743.00
572.00
0.00
0.00
Total CA,
Loans &
28,199.18 40,542.82 51,927.88 58,430.19 62,286.88
Advances
Deffered Credit
0.00
0.00
0.00
0.00
0.00
Current
774.23 1,158.41 10,840.25 15,776.84 12,185.23
Liabilities
Provisions
220.25
467.00
565.58
684.33
617.41
Total CL &
994.48 1,625.41 11,405.83 16,461.17 12,802.64
Provisions
Net Current
27,204.70 38,917.41 40,522.05 41,969.02 49,484.24
Assets
Miscellaneous
0.00
0.00
0.00
0.00
0.00
Expenses
Total Assets 33,345.99 47,367.43 49,322.1153,533.08 60,961.69

Mar '11

Mar '12

Mar '13

Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of
Funds

Total Share
Capital
Equity Share
Capital
Share
Application
Money
Preference
Share Capital
Reserves
Revaluation
Reserves
Networth
Secured
Loans
Unsecured
Loans
Total Debt
Total
Liabilities

1,001.68 1,001.68 1,001.68 1,925.88 1,924.96

737.84

737.84

737.84 1,662.04 1,661.12

0.00

0.00

0.00

0.00

0.00

263.84

263.84

263.84

263.84

263.84

2,413.80 3,023.72 3,575.79 4,757.31 5,055.64

1,194.32

0.00

0.00

4,609.80 5,003.40 5,535.75 6,683.19

17,915.2
0.00
0.00
0.00
5
13,562.4 19,264.5 17,877.6
0.00
6
7
6
13,562.4 19,264.5 17,877.6 17,915.2
6
7
6
5
18,172.2 24,267.9 23,413.4 24,598.4
6
7
1
4

6,980.60

Mar '10

978.00

Mar '11

958.28

Mar '12

Mar '13

310.00
17,280.0
6
17,590.0
6
24,570.6
6
Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Application
Of Funds

Gross Block 1,738.55 1,513.61 1,498.79 1,540.60

Less: Accum.
307.38 313.57 347.41 387.30
Depreciation
Net Block
1,431.17 1,200.04 1,151.38 1,153.30
Capital Work
18.93
12.57
20.29
19.29
in Progress
10,761.8
Investments 5,882.43 8,005.56
8,641.41
7
Inventories
0.00
0.00
0.00
0.00
Sundry
59.95
75.67
15.58 106.03
Debtors
Cash and
20.59
36.51
40.59 514.67
Bank Balance
Total Current
80.54 112.18
56.17 620.70
Assets
Loans and
12,158.2 16,093.2 15,336.0 15,448.9
Advances
0
5
7
4
Fixed
17.94 491.35 858.02
0.00
Deposits
Total CA,
12,256.6 16,696.7 16,250.2 16,069.6
Loans &
8
8
6
4
Advances
Deffered
0.00
0.00
0.00
0.00
Credit
Current
811.53 1,036.85 4,543.92 1,043.86
Liabilities
Provisions
605.42 610.13 226.47 241.34
Total CL &
1,416.95 1,646.98 4,770.39 1,285.20
Provisions
Net Current 10,839.7 15,049.8 11,479.8 14,784.4
Assets
3
0
7
4
Miscellaneou
0.00
0.00
0.00
0.00
s Expenses

1,559.56
418.06
1,141.50
5.62
7,513.53
0.00
33.82
535.83
569.65
19,759.0
1
0.00
20,328.6
6
0.00
4,138.67
279.98
4,418.65
15,910.0
1
0.00