COMPANY PROFILE

History

Power Finance Corporation Ltd. is an Indian financial institution. Established in 1986, it is

the financial back bone of Indian Power Sector. Net worth of the company in the year 2007-
2008 was 8688 Crore Indian Rupees. Initially wholly owned by the Govt. of India, the
company issued an IPO in January, 2007. The issue was oversubscribed by over 76 times,
which is the largest for an IPO of any Indian Company in recent times. PFC is listed on
the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company
has been conferred with many prestigious awards, the latest of which is "KPMG-
Infrastructure Today Award 2008 for its contribution in development of power sector. It is
also an ISO 9001:2000 certified company and enjoys the status of Navratna Company in
India. The Vision of PFC Ltd is to be the leading institutional partner for the power and allied
infrastructure sectors in India and overseas across the value chain.

Power Finance Corporation Ltd was incorporated on July 16 1986 as a public limited
company. The Govt of India established the company as a financial institution in order to
finance facilitate and promote power sector development in India with the President of India
holding 100% of the equity share capital.

The Mission of PFC would be the most preferred Financial Institution; providing affordable
and competitive products and services with efficient and internationally integrated sourcing
and servicing, partnering the reforms in the Indian Power Sector and enhancing value to its
stakeholders; by promoting efficient investments in the power and allied sectors in India and
abroad. They believe to achieve this by being a dynamic, flexible, forward looking,
trustworthy, socially responsible organization, sensitive to their stakeholders' interests,
profitable and sustainable at all times, with transparency and integrity in operations.

PFC presently has nine subsidiary companies. PFC Consulting Ltd. (PFCCL) is a wholly
owned subsidiary handling fee based services. The six other companies, namely Coastal
Karnataka Power Limited, Coastal Tamil Nadu Power Limited, Coastal Maharashtra Power
Limited, Orissa Integrated Power Limited, Jharkhand Integrated Power Limited and Akaltara
Power Limited, are SPVs (Shell Companies) created for implementing the Ultra Mega Power
Projects.

Founder’s Profile
The company was an initiative by the Govt of India. Incorporated on July 16th 1986.

Product Profile

PFC offers various Products & Services, for various Power projects in Generation,
Transmission, and Distribution sector as well as for Renovation & Modernisation of existing
power projects, which is stated below:

1. Rupee Term Loan

2. Foreign Currency Loan
3. Short Term Loan

Fund Based Services

1. Rupee Term Loan

2. Foreign Currency Term Loan
3. Buyer’s Line of Credit
4. Working Capital Loan
5. Loan to Equipment manufacturers
6. Debt Restructuring/ Refinancing
7. Take out Financing
8. Bridge Loan
9. Lease Financing
10. Bill Discounting

Non-Fund Based Services

1. Guarantees
2. Exchange
3. Risk Management
4. Consultancy Services

New Business Initiatives

1. Acquisition Advisory Services

2. Financing of Equipment Manufacturing Facilities and Fuel Sources Development
3. Consortium Lending
4. Financing of Projects in the Renewable Energy Sector
Client Profile

1. State Electricity Boards

2. State Power Utilities
3. State Electricity/Power Departmentsc
4. Other State Departments (like Irrigation Department) engaged in the development of
power projects
5. Central Power Utilities
6. Joint Sector Power Utilities
7. Equipment Manufacturers
8. Private Sector Power Utilities

Organisation Structure

The Corporation is headed by the Chairman and Managing Director; who at present is Shri.
Rajiv Sharma. The company has three wings, each headed by a Functional Director namely,
Commercial Division, Projects Division and Finance & Financial Operations division. The
Commercial Division looks after the credit appraisal and categorization of borrower entities,
power sector reforms, review & analysis. The Projects Division controls the operation in
various states and project appraisal. Finance & Financial Operations Division looks after the
Fund Mobilization and Disbursement. PFC is a lean organization. The numbers of employees
during the year 2012-2013 were 427. At present there are 499 employees as on Dec 31st 2017.

PFC has the following Board of Directors:

 Shri Rajeev Sharma - Chairman & Managing Director

 Shri D. Ravi - Director(Commercial)
 Shri Chinmoy Gangopadhyay - Director (Projects)
 Shri N.B. Gupta - Director(Finance)
 Shri Arun Kumar Verma - Director(Govt.Nominee)
 Shri Sitaram Pareek - Independent Director
 Smt. Gauri Chowdhuri - Independent Director
Present Market Share

Power Finance Corporation Ltd. ISIN: INE134E01011

BSE Live as per March 01, 2018: Rs.102.45 (-2.80)

NSE Live as per March 01, 2018: Rs. 102.45 (-2.65)

Market capitalisation (Rs. Cr): 27,112

P/E Ratio: 8.69
Previous Close: 105.05
Open Price: 104.70

Future Strategies:

 Aims to capture a share of 20-25% of the total investment to be made in the Power Sector
during the 11th Plan period.
 Looking at the size of investment requirements, PFC wants to diversify its portfolio &
expand its services.
 To introduce new financial initiatives such as Universal Banking Services, Insurance,
 Equity Participation and Merchant Banking.
 PFC is also contemplating to explore opportunities available in the area of Private equity
investment with an objective to bridge the last mile equity gap of Private power projects
in India.
 The UMPPs are also expected to facilitate fee-based revenue & enhance PFC’s lending
operations.
 To spread into allied sectors.
 To make a foray into global markets.
 Diversification in terms of forward or backward integration in the power sector(financing
for fuel tie ups and laying down of gas pipelines)

Financial Statements

Standalone Balance Sheet Mar-17 Mar-16 Mar-15 Mar-14 Mar-13

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 2,640.08 1,320.04 1,320.04 1,320.04 1,320.02
Total Share Capital 2,640.08 1,320.04 1,320.04 1,320.04 1,320.02
Reserves and Surplus 33,830.13 34,445.99 30,899.17 26,054.57 22,734.10
Total Reserves and Surplus 33,830.13 34,445.99 30,899.17 26,054.57 22,734.10
Total Shareholders Funds 36,470.21 35,766.03 32,219.21 27,374.61 24,054.12
NON-CURRENT LIABILITIES
Long Term Borrowings 1,74,841.36 1,72,549.70 1,64,973.46 1,42,491.57 1,30,762.94
Deferred Tax Liabilities [Net] 250.51 302.06 189.25 274.22 219.79
Other Long Term Liabilities 6,142.58 548.75 333.81 347.62 539.8
Long Term Provisions 2,544.96 1,229.28 963.61 473.04 162.33
Total Non-Current Liabilities 1,83,779.41 1,74,629.79 1,66,460.13 1,43,586.45 1,31,684.86
CURRENT LIABILITIES
Short Term Borrowings 2,400.79 27,934.74 22,799.69 16,723.49 8,819.77
Other Current Liabilities 33,766.06 7,500.77 6,660.15 6,261.75 5,063.82
Short Term Provisions 1,927.11 805.44 525.23 217.8 193.99
Total Current Liabilities 38,093.96 36,240.95 29,985.07 23,203.04 14,077.58
Total Capital And Liabilities 2,58,343.58 2,46,636.77 2,28,664.41 1,94,164.10 1,69,816.56
ASSETS
NON-CURRENT ASSETS
Tangible Assets 61.88 62.56 64.06 68.18 70.56
Intangible Assets 0.69 1.35 1.73 2.45 3.78
Intangible Assets Under Development 0 0.16 0 0 0
Fixed Assets 62.57 64.07 65.79 70.63 74.34
Non-Current Investments 2,265.60 2,266.73 347.28 348.34 187.18
Long Term Loans And Advances 2,00,333.01 2,00,036.08 1,97,842.91 1,68,792.11 1,42,494.64
Other Non-Current Assets 5,450.62 314.98 224.72 209.68 376.07
Total Non-Current Assets 2,08,111.80 2,02,681.86 1,98,480.70 1,69,420.76 1,43,132.23
Foreign Currency Monetary Difference A/C 0 0 0 0 477.97
CURRENT ASSETS
Current Investments 1,325.53 410.74 504.04 3.83 3.83
Cash And Cash Equivalents 3,573.15 78.45 5,070.80 60.14 4,753.81
Short Term Loans And Advances 5,959.20 3,803.96 2,887.22 2,396.18 17,871.96
OtherCurrentAssets 39,373.90 39,661.76 21,721.65 22,283.19 3,576.76
Total Current Assets 50,231.78 43,954.91 30,183.71 24,743.34 26,206.36
Total Assets 2,58,343.58 2,46,636.77 2,28,664.41 1,94,164.10 1,69,816.56

Mar-17 Mar-16 Mar-15 Mar-14 Mar-13

Standalone Profit & Loss Statement 12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations [Gross] 26,586.42 27,355.27 24,729.99 21,354.49 17,260.27
Revenue From Operations [Net] 26,586.42 27,355.27 24,729.99 21,354.49 17,260.27
Other Operating Revenues 129.81 118.38 131.33 167.93 0
Total Operating Revenues 26,716.23 27,473.65 24,861.32 21,522.42 17,260.27
Other Income 302.34 90.66 45.48 15.04 12.28
Total Revenue 27,018.57 27,564.31 24,906.80 21,537.46 17,272.55
EXPENSES
Employee Benefit Expenses 114.97 90.37 85.81 79.56 80.94
Finance Costs 16,432.69 16,473.81 15,438.18 13,199.59 10,991.08
Provsions and Contingencies 5,093.57 1,705.58 843.97 469.74 80.85
Depreciation And Amortisation Expenses 5.56 6.17 6.09 4.93 5.7
Other Expenses 260.52 229.85 156.68 225.62 155.75
Total Expenses 21,907.31 18,505.78 16,530.73 13,979.44 11,314.32
12 mths 12 mths 12 mths 12 mths 12 mths
Mar-17 Mar-16 Mar-15 Mar-14 Mar-13
Profit/Loss Before Exceptional Items And Tax 5,111.26 9,058.53 8,376.07 7,558.02 5,958.23
Profit/Loss Before Tax 5,111.26 9,058.53 8,376.07 7,558.02 5,958.23
Tax Expenses-Continued Operations
Current Tax 3,074.39 2,822.26 2,502.42 2,075.81 1,543.57
Deferred Tax -90.9 112.81 -83.98 54.43 132.36
Tax For Earlier Years -0.09 12.11 0.46 10.32 -128.49
Total Tax Expenses 2,983.40 2,947.18 2,418.90 2,140.56 1,547.44
Profit/Loss After Tax And Before ExtraOrdinary
Items 2,127.86 6,111.35 5,957.17 5,417.46 4,410.79
Prior Period Items -1.47 2.13 2.16 0.29 8.81
Profit/Loss From Continuing Operations 2,126.39 6,113.48 5,959.33 5,417.75 4,419.60
Profit/Loss For The Period 2,126.39 6,113.48 5,959.33 5,417.75 4,419.60

Cash Flow Statement 12 mths 12 mths 12 mths 12 mths 12 mths

Mar-16 Mar-15 Mar-14 Mar-13
Mar-16
Net Profit/Loss Before Extraordinary Items 5,109.7
And Tax 9 9,060.66 8,378.23 7,558.31 5,967.04
- - - -
1,920.2 13,338.9 21,448.3 22,170.4 25,089.0
Net CashFlow From Operating Activities 3 7 6 1 9
Net Cash Used In Investing Activities -308.91 -1,855.85 -472.87 -189.69 -93.17
1,475.3 10,203.4 26,881.9 17,670.9 27,947.3
Net Cash Used From Financing Activities 6 4 8 2 6
3,086.6
Net Inc/Dec In Cash And Cash Equivalents 8 -4,991.38 4,960.75 -4,689.18 2,765.10
Cash And Cash Equivalents Begin of Year 28.06 5,019.44 58.69 4,747.82 1,983.97
3,114.7
Cash And Cash Equivalents End Of Year 4 28.06 5,019.44 58.64 4,749.07

Achievements

 Conferred with the ‘Navaratna’ status on 22nd June, 2007.

 ISO 9001-2000 certified Quality Management System of Project Division.
 ‘Highest safety’ ratings by CRISIL & ICRA for resource mobilization.
 International Credit ratings has been pegged at that of ‘Sovereign’ by Standard &
Poor’s(S&P), Moody’s & FITCH.
 ‘Golden Peacock’ award for excellence in Corporate Governance (National Category),
2007.
 IPO launched on February, 2007 was oversubscribed 77 times, a record by any PSE so
far.
 Tapped international financial markets to raise ECBs, setting benchmark rates for Indian
corporate.
 Complementing the efforts of Govt. of India, for its sponsored programmes Accelerated
Generation & Supply Programme and Accelerated Power Development & Reform
Programme.
 Introduced new tailor-made products and services like debt re-financing, interest
restructuring, funding to equipment manufacturers, short term loans, buyers' line of credit
and loans for asset acquisition.
 First Developmental Financial Institution to introduce Operational and Financial Action
Plans to improve efficiency in the State Power Sector.