SUMMER INTERNSHIP REPORT ON

Capital Structure of BSES Yamuna Power Ltd.

Undertaken at

Submitted in partial fulfillment of the requirements

for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

to
INDIRA GANDHI DELHI TECHNICAL UNIVERSITY
FOR WOMEN, DELHI
Submitted by
NANDINI GROVER
06007132020
BBA(B&I) 5-SEM

Session 2020 – 23

INDIRA GANDHI DELHI TECHNICAL UNIVERSITY

FOR WOMEN
 ACKNOWLEDGEMENT

I am very thankful to BSES Yamuna Power Ltd. for giving an opportunity to undertake my
summer internship at their prestigious Company.
I offer my sincere gratitude towards Mr. Rajiv Gupta, ASVP of BSES Yamuna Power, for his
outstanding help and direction in fruition of this Summer Internship the whole time.

I would also like express my sincere gratitude towards Mrs. Rakhi Gupta General Manager of
Finance for her exceptional support and guidance in completion of my Finance Internship. I also
deeply thank Mr. Anil, Assistant Supervisor for his immense help in the completion of this
Internship.

At last, I also want to thank the entirety of my course mate in Indira Gandhi Delhi Technical
University for Women, who actively supported and helped me while finishing both the
internships and with due regard my parents for their steady help and persistence.

Nandini Grover

(06007132020)
 UNDERTAKING REGARDING ANTI-PLAGIARISM

I, Nandini Grover hereby, declare that the material/ content presented in the report is free from
plagiarism and is properly cited and written in my own words. In case, plagiarism is detected at
any stage, I shall be solely responsible for it.

Nandini Grover

(06007132020)
 CERTIFICATE FROM INSTITUTE

This is to certify that the Project Report titled _________________________________________

____________________________________________, is a bona fide work carried out by
Ms./Mr.____________________________________ of BBA 2020-23 and submitted to
IGDTUW, Delhi in partial fulfillment of the requirement for the award of the Degree of Bachelor
of Business Administration.

Signature of Guide Signature of Head (DSM)

Seal of Head

Place:

Date:
 DECLARATION

I, Nandini Grover, solemnly declare that the project report, is based on my own work carried
out during the course of our study under the supervision of Mrs. Rakhi and Mr. Rajiv Gupta. I
assert the statements made and conclusions drawn are an outcome of my research work. I further
certify that:
I. The work contained in the report is original and has been done by me under the
supervision of my supervisor.
II. The work has not been submitted to any other Institution for any other
degree/diploma/certificate in this university or any other University of India or abroad.
III. We have followed the guidelines provided by the university in writing the report.
IV. Whenever we have used materials (text, data, theoretical analysis/equations,
codes/program, figures, tables, pictures, text etc.) from other sources, we have given due
credit to them in the report and have also given their details in the references.

Nandini Grover

(06007132020)
 EXECUTIVE SUMMARY

The objective of the study is to analyze the Capital Structure in BSES in which the
proposals are analyzed in terms of return on investment and Payback period and
also the internal rate of return.
The acceptance rules for the proposal are decided by the management of the
Organization.
In Capital Structure we analyze the process we use to make decisions concerning
investments in the long-term assets of the firm.
The general idea is that the capital, or long-term funds, raised by the firms are used
to invest in assets that will enable the firm to generate revenues several years into
the future.
Often the funds raised to invest in such assets are not unrestricted, or infinitely
available; thus the firm must budget how these funds are invested.
The main objective of this internship was to learn the work that is being done in
different fields by different companies. To learn and enhance the skills that will
help in choosing in specialization for my BBA course in the next year and to have
a clarity about the different methods used in different fields to solve the
organizational problems to achieve their objective.
As an Finance intern in BYPL, I learned about GST invoices, GST MIS and in
filing GST Return, analysis of GST notification and circulars. This helped me
prepare TDS MIS and TDS Returns Analysis of TDS Provisions w.r.t. new
amendments and circulars issued by Income Tax Department.
LIST OF ABBREVIATIONS

Abbreviation Description
BBA Bachelor of Business Administration
FIN Finance
HR Human Resource
GST Goods And Services Tax
 INDEX

Certificate
Undertaking regarding anti plagiarism
Acknowledgement
Declaration
List of Abbreviations
Summary/Abstract
1. Introduction
2. History Of BSES
3. Company Profile
3.1 Vision, Mission, Core Values &n
3.2 BRPL & BYPL
3.3 Rewards And Recognition
4. Research Methodology
5. Industry Analysis
5.1 Board Of Directors
5.2 Efforts
5.3 Major Departments
6. Capital Structure
6.1 Net Income Approach
6.2 M.M. Approach
6.3 Ratios
7. Swot Analysis
8. Conclusion
9. Bibliography
Bio data
 Introduction

BSES Limited is India’s premier utility firm engaged in the generation, transmission and
distribution of electricity. Formerly, known as Bombay Suburban Electric Supply Limited, it was
incorporated on 1st October 1929, for the distribution of electricity in the suburbs of Mumbai,
with a pioneering mission to make available uninterrupted, reliable and quality power to the
customers and provide value added services for the development of the power and infrastructure
sectors.
On 1st March 2002, BSES Ltd. was renamed as Reliance Energy. Post takeover by the Reliance
Group, BSES has announced mega investment plans in the power sector. Upon implementation
of these, the Mumbai market will probably account for a minority of its sales and profits. BSES
have setup its own power plant at Dahanu power station and a dedicated distribution line, which
shows that it has in-house capabilities ranging from engineering, operation & maintenance of
power plants and transmission and distribution systems.
BSES through international competitive bidding acquired an early stake of 51% in three of the
four distribution companies of Orissa. At present, BSES along with its subsidiaries provide
electricity to more than 33.96 lakh consumers in an area covering about 1,23,000 sq. km.
As part of its active support in privatization process, BSES has recently acquired an equity stake
of 51% in two of the three distribution companies of Delhi after unbundling and privatization of
the erstwhile Delhi Vidyut Board. The two distribution companies-

1) BSES Rajdhani Power Limited

2) BSES Yamuna Power Limited

Fig 1.1 Range of power distribution
S Particular Unit BYPL BRPL BSES
N (East & (South & Delhi
Central) West)
1 Area sq. km 200 700 900
2 Customer Density Cons / 2200 3100 5300
(As of Mar ’21) sq km
3 Total Registered Customers  Million 1.8 2.7 4.5
(As of Mar ’21)
4 Peak Demand (YTM FY 21) MW 1653 3211 4864

Table 1.1
 History of Electricity in Delhi

The history of electricity in Delhi dates back to 1905 when M/s John Fleming Company was
awarded the license as per Indian Electricity Act, 1903, for generation and distribution of power
in Delhi. It was replaced by Delhi Tramway and Lighting Company, which was subsequently
renamed as Delhi Electricity Supply & Traction Company. In 1939 The Delhi Central Electric
Power Authority (DCEPA) was formed to run the services. In 1951, the DCEPA was taken over
by Delhi Electricity Board, constituted under Indian Electricity Supply Act 1948. In 1958, Delhi
Electricity Supply undertaking came into existence and was once again converted to Delhi
Vidyut Board in 1997.
The power sector in Delhi has undergone a major transformation since 2002. From a single State
Electricity Board called Delhi Vidyut Board, and its erstwhile avatar Delhi Electricity Supply
Undertaking (part of Municipal Corporation of Delhi), the entire sector was divided into five
companies namely, three distribution companies, one transmission / holding company and one
generation companies. This was the outcome of the Delhi Electricity Reform Act, 2000. It is the
far sightedness of the then government, led by Smt. Sheila Dikshit, which made such far
reaching changes possible even in the absence of a central legislation providing for reform of the
electricity sector, which was enacted much later in the form of Electricity Act, 2003.

Elements of the reform:

Distribution is a sector, which can be largely self-financing over the long term once the
investments have been made in bringing the system to technological modern standards. The
transmission and generation system require large capital investments.
The concept of loss reduction namely Aggregate Technical and Commercial Losses (AT&C)
were taken as the measure of bidding and the assets were valued on “Going Concern” basis as
per Companies Act provisions.
The five years of reforms (2002 – 2007) have brought both brick bats and kudos to the
government.
The entire 66/33/11 KV distribution system was privatized by setting up three distribution
companies:
North Delhi Power Limited (NDPL)
BSES Yamuna Power Limited (BYPL)
BSES Rajdhani Power Limited (BRPL)

In these companies, 49% stakes is that of government by the way of holding assets and land on
lease, and in turn government has three directors on each of the boards of the three companies
whereas the Managing Director is appointed by the larger shareholder namely TATA Power in
case of NDPL, Reliance Energy in case of BYPL and BRPL.
COMPANY
PROFILE
Basically, BSES Yamuna Power Limited, Delhi is a part of service Sector Company. It is a
power industry which distributes electricity to Delhi consumers. It is semi governmental
company i.e. joint venture with ADA Group (Anil Dhiru Bhai Ambani Group of Companies). It
is a nationalized company which operates their business in the city of Delhi in some particular
region.
BSES DELHI is a service sector industry and the specific function of the
company is distribution of power (electricity). The company has both the major department like
HR (Human Resources Department) and Finance Department. The company has also store,
maintenance & operations and IT department because store department is required for
maintaining the inventory and management & operations required for smooth running of
operations.

 Name of the company: BSES Yamuna Power limited

 Address: Shakti Kiran Building, Karkardooma,New Delhi-110092, India
 Phone number: +91 11 3009 9999
 Fax no: +91 11 3999 9403
 Website address: www.bsesdelhi.com
 VISION OF BYPL:

 To be amongst the most admired and most trusted integrated utility companies in the
world.
 To deliver reliable and quality products and services to all customers at competitive costs,
with international standards of customer care thereby creating superior value for all
stakeholders.
 To set new benchmarks in standards of corporate performance and governance, through
the pursuit of operational and financial excellence, responsible citizenship and profitable
growth.

MISSION OF BYPL

 To attain global best practices and become a world-class utility

 To provide uninterrupted, affordable, quality, reliable, safe and clean power to our
customers.
 To achieve excellence in service, quality, reliability, safety and customer care.
 To earn trust and confidence of all customers and stakeholders by exceeding their
expectations, and make the company a respected household name.
 To earn trust and confidence of all customers and stakeholders by exceeding their
expectations, and make the company a respected household name.
 To consistently achieve high growth with the highest levels of productivity.
 To be a technology driven, efficient and financially sound organization.

 To be a responsible corporate citizen nurturing human values and concern for society, the
environment and above all, people.
 To contribute towards community development and nation building.
 To promote a work culture that fosters individual growth, team spirit and creativity to
overcome challenges and attain goals.
 To encourage ideas, talent and value systems.
 To uphold the guiding principles of trust, integrity and transparency in all aspects of
interactions and dealings.
 CORE VALUE’S OF BYPL-:

Honesty-: Truthful in all our actions & forthright with one another & all our stakeholders.

Integrity-: We say what we mean and deliver what we promise and promise to stand for what is
right.

Respect-: Appreciate and value the skills, strengths and perspectives of our diverse workforce.

Fairness-: Justice, impartiality and consistency in all our operations.

Purposefulness-: Observe all our activities in terms of higher purpose and ideals.

Trust-: Foster a culture of teamwork with open, candid and speedy communication.

Responsibility-: Demonstrate highest levels of responsibility and accountability for

individual actions for pursuit of organizational excellence.

Product Range of BSES Delhi-:

Basically the company BSES, DELHI the key player of Delhi facilitate for providing of power
(electricity) .The Company has only one product range i.e. power. The company purchases the
power from their supplier and distribute to their customers.
The company has co-product range of the key product i.e. power which helps in the process of
distributing to their customers. The co-product ranges are:
 Transformer
 Wires
 Poles.
 Size of the organization-:

The size of the organization can be measured in two terms i.e.-

 Manpower
 Annual Turnover

1) Manpower-
Total number of employees in BSES Delhi is approximately 5400. The Employees in
BSES Delhi are categorized into three -
 Government Employee - 2500
 CTC Employee - 2500
 Contract Based Employee - 400

2) Annual Turnover-
The total turnover of the company in the current financial year 2022-21 is 4818 (Rs./
Crore). The last two years annual turnover has been mentioned below:

Financial Year Annual Turnover (Rs / cr)

2022-21 4818
2021-20 4272
2020-19 4725

Table 1.2 Annual turnovers

BSES Rajdhani Power Limited

BRPL is a limited company incorporated under the companies Act 1956 and engaged in the
business of distribution of electricity within its licensed area in NCT of Delhi. It distributes
power to an area spread over 750 sq. km with a population density of 2665 per sq km. Its’ over
19.99 lakh customers are spread in 19 districts across South and West areas including -
 Alaknanda

 Khanpur

 Vasant Kunj

 Saket

 Nehru Place

 Nizamuddin

 Sarita Vihar

 Hauz Khas

 R K Puram

 Janakpuri

 Najafgargh

 Nangloi

 Mundka

 Punjabi Bagh

 Tagore Garden

 Vikas Puri

 Palam

 Dwarka
 BSES Yamuna Power Limited

BYPL distributes power to an area spread over 200 sq kms with a population density of 6989 per
sq km. Its 13.98 lakh customers are spread over 14 districts across Central and East areas
including
 Chandni Chowk
 Daryaganj
 Paharganj
 Shankar Road
 Patel Nagar
 G.T. Road
 Karkardooma
 Krishna Nagar
 Laxmi Nagar
 Mayur Vihar I & II
 Mayur Vihar III
 Yamuna Vihar
 Nand Nagri
 Karawal Nagar

Market Share & Market Position of the Company:

Basically BSES, Delhi is a power distribution company. In the sector of power distribution,
BSES, Delhi has covered 75% market Share in terms of revenue and out of that BSES Yamuna
has 45% revenue and remaining is covered by BSES Rajdhani Power limited i.e. 30%.
Actually for the player of power distribution in position Delhi, each player has a specific area for
power distribution and so there is no specific market position for any player. Each player has full
monopoly for the power distribution in its respective region.
 Category of Consumers

BSES Delhi caters to supply of electricity to more than two million consumers, who are further
divided into 4 circles and 33 divisions (14 BYPL & 19 BRPL). BSES has a wide variety of
consumers and are distinguished into house, residential complexes, high buildings, commercial
complexes, industrial houses, government establishment, municipal hospitals and many more.
The consumers are broadly divided into two categories:-
1. On the Basis of Load
a. SLCC-Consumers having load less than 11KW
b. MLCC -Consumers having load in between 11KW and 45KW
c. KCC -Consumers having load more than 45KW
d. GCC -Government premises and consumers.

2. On the Basis of Tariff

The highest number of consumers falls under the domestic category followed by non- domestic.
The consumption pattern shows that domestic consumer uses more than 50% of the electricity
followed by non-domestic and industrial.
Figure 1.3 Consumption Profile

Customer Profile
 Category BRPL BYPL

Domestic 22,93,242 13,31,796

Industrial 8,483 7,568

Commercial 3,41,415 3,85,348

Others 11,558 6,382

*Customer Base as of 31st March 2020 (2020-19)

Table 1.3 Customer profile

An interesting observation is that though domestic consumers are 80.04% of the total population,
still they consume less than 50% of electricity. This is because the consumption per consumer is
high for industrial sector.

It must be admitted that the distribution system in Delhi was abysmally poor due to the inability
of erstwhile Delhi Vidyut Board to make the necessary investments at the distribution level. This
required large capital investments to be made by the companies to provide an uninterrupted and
stable power to the people of Delhi. This explains an increase in the capital expenditure in the
initial years. The distribution companies have lived up to the expectations in making large
investments in improving the distribution system. The technical improvements made by BSES
Yamuna Power Limited show a high level of improvement in the 66, 33 and 11 KV systems. The
use of High Voltage distribution systems has ensured that the small groups of consumers are not
able to hook on to the lines and steal power, thereby reducing AT & C losses while at the same
time they get stable power.
REWARDS & RECOGNITION

 On Dec 17, 2002, BSES won Rajiv Gandhi National Quality Award.
 On Jan 30, 2003, FITCH Ratings India assigned AAA(ind) ratings to BSES.
 On July 25, 2005, ‘Network Innovation Award’ was conferred on BSES.

 On August 6, 2010, BSES supplied power to all CWG venues. All electricity related
work was completed at a cost of Rs 74 crore.
 On March 26, 2012, BYPL was selected for the prestigious 54 th British International
Safety Award. It was the 1st Indian Discom to do so.
 On January 29, 2014, BYPL has been recently Awarded for GREENTECH
ENVIRONMENT AWARD 2013.
 On February 13, BYPL has been awarded with Asia Oil and Gas Award for
“INNOVATION IN SAFETY”.

 On March 2014, BYPL and Delhi Police Special Unit for Women & Children conducted
the 4th women self defence camp at Maharaja Agrasen College in Delhi.
 On April 15, 2014, BSES receives the 'Best Practice CSR Award' at the National CSR
Conclave & Awards 2014.
 On April 25, 2014, BYPL wins British Safety Council Award.
Research Methodology
RESEARCH

Research is a process in which the researchers wish to find out the end result for a given problem
and thus the solution helps in future course of action. The research has been defined as “A
careful investigation or enquiry especially through search for new facts in branch of knowledge”

RESEARCH DESIGN

The research design used in this project is Analytical in nature the procedure using, which
researcher has to use facts or information already available, and analyze these to make a critical
evaluation of the performance.

DATA COLLECTION

● Primary sources

It is also called as first handed information; the data is collected through the observation
in the organization and interview with officials. By asking question with the accounts and
other persons in the financial department. Apart from these some information is collected
through the seminars, which were held by BSES.

● Secondary sources

● From the annual reports maintained by the company.

● Data are collected from the company’s website.

● Books and journals pertaining to the topic.

INDUSTRY

PROFILE
ORGANIZATIONAL CHART

BYPL
Board Of Directors
BYPL
Chairman Sh. Lalit Jalan
Chairman’s
Strategy Cell

CEO-BYPL
(PREM R. KUMAR)

|
Board of Directors- BSES Yamuna Power Ltd-

Directors name Date of appointment Date of appointment

SURINDER SINGH KOHLI 05 November, 2012 Director

AJIT KESHAV RANADE 28 July, 2015 Director

ANJANI KUMAR SHARMA 28 July, 2015 Director

VIRENDRA SINGH VERMA 20 July, 2017 Director/ Professional

NAVEEN ND GUPTA 27 November, 2019 Director

JAGJEET SINGH DESWAL 27 November, 2019 Director

JASMINE SHAH 27 November, 2019 Director

PUNIT NARENDRA GARG 01 July, 2021 Director / Professional

SATEESH SETH 01 July, 2021 Director

AMAL SINHA 01 July, 2021 Director

VIJAYALAKSHMY GUPTA 25 October, 2021 Director

BSES YAMUNA EFFORTS :

To cut AT&C losses BSES Yamuna has implemented various measures like replacing electro-
mechanical meters with electronic meters, bringing new consumers into un-electrified areas,
aggressive drive to curb theft, improved collection efficiency, speedy settlement of disputes
through special courts, recovery of dues etc.
Network and Infrastructure
 System up-gradation and improvements:
BSES has been upgrading and modernizing its distribution systems. It has adopted
technologies and processes conforming to global benchmarks, and electrified previously
un-electrified areas. It has also introduced high-voltage distribution systems to ensure there
is no theft. There has been notable growth in ground facilities of new grids, power
transformers, distribution transformers, extra-high voltage cable lengths, and LT lines.
BSES has augmented its network strength for Delhi distribution to cater to peak demand of
 4200 MW against approximately 2900 MW in financial year 2002. It has also shown
significant improvement in reducing equipment failures and breakdown resolution.
Through all these efforts, the Delhi consumer is experiencing improved load shedding,
voltage quality, stability in power supply, fault repairing, and response time.

 Electronic metering
With domestic consumers constituting 84 per cent of the consumer mix, a strong meter
measurement system to arrest revenue leakage was a pre-requisite. BSES has installed
electronic meters, despite extensive opposition, with Government support and favorable
court verdicts. Electronic meters are downloadable with no manual intervention and the
quality of meter reading has improved, reducing leakages. Electronic meters also
facilitate an analysis of consumer usage patterns, and the data is useful in resolving
related grievances. For the high-end key consumers another milestone has been achieved
by introducing automatic meter reading. BSES has also metered all the 9000-plus
distribution transformers, which will enhance effective energy audits to identify high loss
areas.

 Network and asset mapping

BSES advocates importance of network and asset mapping through global edge
technologies available on SCADA and GIS platform. It has implemented SCADA across
all extra-high voltage grid networks with remote management through a centralized
station. Further, all electrical assets including transformers have been, or are, in the
process of GIS mapping.

 IT infrastructure enhancement
For end-to-end integration of various functions and processes, BSES has made major
investments to bring its IT capabilities to global standards. It has developed the largest
single-location IT network in North India; 330 offices are networked with 24x7x365
monitoring and uptime maintained at 99 per cent. It has deployed about 3800 PCs and
800 printers across these locations. With large consumer database to manage on a round-
the-clock basis, BSES has continuous database support and monitoring of 40 servers and
 network attached centralized storage set up of 4 TB with 200 users connected, ensuring
100 per cent uptime. It has a work force of nearly 9000 people trained in related IT
capabilities. Functions of finance, materials, metering and billing are all integrated on
SAP. BSES is now implementing a more advanced IT system for revenue cycle
management – SAP (ISU/CCS).
In the finance function, all aspects of accounting, capitalization, collections,
payments, payroll etc, are online, real time on the S.A.P- FICA platform. The cash
management system with 200 cash counters and multiple payment options is well
integrated, robust, and online. The entire capitalization process is totally integrated from
the project clearance stage to material consumption, completion, and monitoring. The
process extending from ‘downloading of meters’ to billing and then to cash, is a key
component of the ‘revenue management cycle’. The whole process is purely system
driven with minimum human intervention.

AT&C Losses-:
Aggregate Technical & Commercial (AT&C) loss is one of the most critical business efficiency
measures for power distribution companies, and is a factor of two clearly identifiable and
measurable parameters. First, the amount collected (kWhs realized) by the Discom for energy
sold, and second, the energy input (kWhs supplied) to the Discom periphery. ‘Amount collected’
means money actually received from retail consumers as opposed to what they were billed. Thus
it captures the entire gamut of leakages in the Revenue stream.

 Technical losses are attributable to heat and friction caused by the physical operation and
design of any distribution system. Energy input at the Discom periphery is transmitted
through a complex and multi-tier distribution network before it is finally delivered to
consumers. The quantum of technical losses during transmission depends on the quality
of distribution network and infrastructure.

 Commercial losses are controllable and are a combination of theft, un-metered supply,
defective and slow meters, un-billed meters, billing errors, fictitious customers and bad
debts. Commercial efficiency thus plays a significant role while measuring business
 efficiency, and Discom need to take all technical and commercial interventions to contain
/ reduce losses.

GENCO generates energy and then through TRANSCO it is transferred to DISCOM. DISCOM
then gets the electricity distributed to final consumers through district supply offices. Then
DISCOM generates bills to the consumer according to the usage. The amount paid by the
consumers is converted into units and then those units are compared to the actual units
transmitted by the TRANSCO. The loss of units is called AT&C Loses.
VARIOUS PROCESSES-:
New Connection:-
The consumer approaches the nearest office for submitting application of new connection. An
applicant can be domestic, non- domestic, agricultural or industrial connection purpose. The
process is explained below

Commercial

Security Deposit
Technicality

Demand Note
Service Line

Deposits
Meter Group

Installation

Fig 1.4 New Connection Process

Meter Reading & Billing:

Meter reading is done monthly or bi- monthly depending on connection category. Domestic
consumers are billed bi-monthly where as other categories are billed on a monthly basis.
Institutions like schools, colleges, hospitals, etc. are given non-domestic load. However they are
billed as per domestic tariff.

Bills -:

Bills are of two types – Actual and Average / Provisional.

In actual bill original reading of the consumer meter is taken and accordingly bill amount is
calculated. But if due to some reasons actual reading cannot be taken then in that case Average
or Provisional Bill is issued in which consumption is calculated on basis of past reading trend.
Issuance of Average Bill is allowed only twice. After that no Average Bill can be issued.

A unique CRN No. is allowed to every meter. In case of Domestic consumer, the consumption
units are on monthly basis. Issue Date and Due date are given on the bill. According to the tariff
scheduled issued by the commission, the bill amount is calculated.

The Actual Work Performed by the Finance (Billing) Department.

1. Firstly, the IT Department provides the data to finance (billing) department consisting of
the Billing amount for the month, the revised data i.e. adjustment (if any) and the net of
both i.e. net bill.
2. Then the data that is received is checked by the finance department –
Actual + Adjustment = Net Bill
if the data is okay , then it will be uploaded to SAP server for further posting to GLs.
 MAJOR DEPARTMENTS OF BYPL ARE
1. Finance
In finance department there are 14 sub head. These are as follows:
 Banking
Apply for loans, bulk payment, normal banking transactions such as salary
payments, SD Refund etc……
 Central Account
 Procurement:
Day to day normal expenses such as car rental, courier service , gifts….
 Revenue Collection:
Collection of bills generated, by the way of cash and cheque.
 Contract Payment:
Work order related payments, such as civil works, construction of sub- station,
installation of street lights, transformer etc
 Statutory Compliances.
Compliances of tax related matters like VAT, TCS, TDS, WCT
 Revenue Billing:
Supply of electricity to consumers & billing of electricity consumed by them.
 Security Deposits Refund (SD)
Advanced consumption deposit is taken from consumer at the time of providing
connection.
 JOB Costing.
It is required to maintain a budget and estimate is given and on completion actual
cost
 Power Purchase.

Purchase of power from the different sources.

 Cost Audit.
Maintenance of cost records & get audited by consultant. (Cost Accountant).
 Fixed Asset Verification.
 Actual site verification of assets such as transformer,
 Salary
Disbursement of salaries to the employees through ECS.(Electronic Clearing
System)
 LTA (Leave Travel Allowances)
It is a part of salary head. It is reimbursed to the employees.
 Medical reimbursement.
Medical expense reincured by the employees is reimbursed.

2. Human resource
 In their HR department they have many sub division like......IRR ,ESC
 For new hire they manly invite fresher and experience from open market
 Time to time they provide training to their employee so their employee improve
and update their knowledge and skill so efficient and effective work on work
floor.
 Regular Feedback collected by HR to improve their organisation and provide best
facilities to their employee.

3. Business management groups

In business management groups they are sub divided into two major departments are
 Commercial Department - new connection release, additional load & reduction of
load, name change, final bill issued, NOC ,
 Collection Department.- Bank deposit, clearing of cheques, additional cost on
dishonoured cheques.
 CAPITAL
STRUCTURE
 Capital structure

The assets of a company can be financed either by increasing the owner’s claim or the creditor’s
claim. The owner’s claim increases when the firm raises funds by issuing ordinary shares or by
retaining earnings; the creditor’s claim increases by borrowing. The various means of financing
represents the financial structure of an enterprise.

The term capital structure is used to represent the proportionate relationship between debt and
equity. Equity includes paid-up share capital, share premium and reserve and surplus (retained
earnings). The company will have to plan its capital structure initially at the time of its
promotion. Subsequently, whenever funds have to be raised (financing decision), a capital
structure decision is involved. Capital structure refers to the mix of sources from where the long-
term funds required in the business may be raised. A demand for raising funds generates a new
capital structure; a decision has to be made to the quantity and forms of financing. This decision
will involve an analysis of the existing capital structure and the factors, which will govern the
decision at present. The company’s policies to retain or distribute earnings affect the owner’s
claim.
Shareholder’s equity position is strengthened by retention of earning. The debt equity mix has
implications for the shareholder’s earnings and risk, which in turn will affect the cost of capital
and the market value of the firm.

Patterns of the Capital Structure

In case of new company, the capital structure may be of any of the following patterns-:
a) Capital Structure with equity shares only.

b) Capital Structure with equity and preference.

c) Capital Structure with equity and debentures.

d) Capital Structure with equity, preference shares and debentures.

 Debt is the liability on which interest has to be paid irrespective of the company profits.
While equity consists of shareholder or owner’s funds on which payment of dividend depends
upon the company’s profit, a high proportion of the debt content in the capital structure increases
the risk and may lead to financial insolvency in adverse time. However, raising fund through
debt is cheaper as compared to financing through shares. Dividend is considered to be an
appropriation of profits; hence payment on dividend does not result in any tax benefit to the
company.

Optimum Capital Structure

A firm should try to maintain an optimum capital structure with a view to maintain financial
stability. The optimum capital structure is obtained when the market value per equity share is the
maximum. It may be defined as that relationship of debt and equity securities which maximizes
the value of a company’s share in the stock exchange .In case a company borrows and this
borrowing helps in increasing the value of company’s share in the stock exchange, it can be said
that the borrowing has helped the company in moving towards its optimum capital structure. In
case, the borrowing results in fall in market value of the company’s equity shares, it can be said
that the borrowing has moved the company from its optimum capital structure. The objective of
the firm should therefore be to select the financing or debt equity mix, which will lead to
maximum value of the firm.
Features on an appropriate capital structure

1. Profitability: 
The most profitable capital structure is one that tends to minimize cost of financing and
maximize earning per equity share.

2. Flexibility:
The capital structure should be such that company can raise funds whenever needed.

3. Conservation:
The debt content in the capital structure should not exceed the limit which the company can bear.
4. Solvency:
The capital structure should be such that firm does not run the risk of becoming insolvent.

5. Control:
 The capital structure should be so devised that it involves minimum risk of loss of control of the
company.

Importance of Capital Structure

The term capital structure refers to the relationship between the various long-term forms of
financing such as debentures, preference share capital and equity share capital. Financing the
firm’s asset is a very crucial problem in every business and as a general rule there should be a
proper mix of debt and equity capital in financing the firm asset’s. The use of long term fixed
interest bearing of debt and preference share capital along with equity shares is called financial
leverage or trading on equity.
The long term fixed interest bearing debt is employed by a firm to earn more from the use of
these sources than their cost so as to increases the return on owners equity. It is true that capital
structure cannot effect the total earnings of a firm but it can affect the share of earning’s
available for equity shareholders.
2.17 Sources of Funds

 Security Financing- This includes financing through shares including both equity and
preference shares and debentures.
 Internal Financing- This includes financing through funds produced from a business
operation, as opposed to external financing, such as the issuance of debt or equity.
 Loan Financing- This includes both short term and long-term loans.

Long term financing:

The sources of financing include ordinary share capital, preference share capital and debenture,
long term borrowings from financial institutions and reserves and surplus.

Short term financing:

The short term financing is obtained for a period less than one year. It is arranged in advance
from banks and other suppliers of short-term finance in the money market. Short-term finance
includes working capital funds from banks, public deposits, etc.

INTERPRETATION OF THE FINANCIAL YEAR (2021-22)

CAP ITAL STRUCTURE
Components of Capital Structure Amount ( in Rupees Thousands)
Paid- up Capital 556
Reserves & Surplus 255.72
Loan Fund 2097.86
Consumer Contribution for Capital Works 160.47
Consumer Security Deposits 348.24
Service Line Deposits 29.28
 Amount in Rs(Crore)
Share capital Reserves & Surplus Loan Fund
Consumer Contribution Consumer Security Deposits Service line deposits
5% 1%
7% 17%

8%

63%

Fig-1.4 Capital Structure

The above graph clearly depicts that the proportion of debt (loan fund) in the financing mix of
BSES Yamuna Power Limited is much more as compared to share capital. The debt content is
62.67% whereas the proportion of share capital, reserves & surplus, consumer contribution for
capital works, service line deposits and development charges from consumers and consumer
security deposits is 16.60% , 7.63 % ,4.79% , 0.87 %, 7.42% respectively.
Capital structure of BSES Delhi for three years (from 2018-19 to 2020-21)

Particulars 2020-21 2019-20 2018-19

Share Capital 16.60 15.72 15.07

Reserves & Surplus 7.63 6.68 6.10

Loan Fund 62.67 63.08 66.39
Consumer Contribution for Capital 4.79 3.97 3.20
Works
Consumer Security Deposits 7.42 9.84 8.58
Service Line Deposits 0.87 0.67 0.64

Total 100 100 100

70
60
50
40
30
20
10
0 2012-13
l 2013-14
ta us nd ks its its
api r pl Fu or pos pos 2014-15
eC Su an lW e e
ar & Lo ita tyD eD
Sh es ap r i in
r v
rC cu eL
se fo Se
rv
ic
Re on er Se
ti um
bu ns
ntri Co
Co
er
m
n su
Co

Fig 1.5 Capital Structure of BYPL

Theories of Capital Structure

The objective of a firm should be directed towards the maximization of the value of the firm, the
Capital Structure, or leverage decision should be examined from the point of view of its impact
on the value of the firm. If the value of the firm can be affected by Capital Structure or financing
decision, a firm would like to have a Capital Structure, which maximizes the market value of the
firm.
There are broadly four approaches in this regard. These are:
 Net Income Approach.
 Net Operating Income Approach.
 Traditional Theory.
 Modigliani- Miller Approach.

These approaches analyze the relationship between the leverage, cost of capital and the value of
the firm in different ways.

Assumptions of theories:-

a) There are only two sources of funds used by the firm: perpetual riskless debt and ordinary
shares.
b) There are no corporate taxes.
c) The dividend pay-out ratio is 100%.That is, the total earnings are paid out to the
shareholders as dividend and there are no retained earnings.
d) The total assets are given and do not change. The investment decisions are, in other
words, assumed to be constant.
e) The total financing remains constant. The firms can change its degree of leverage (capital
structure) either by selling shares and use the proceeds to retire debentures or by raising
more debt and reduce the equity capital.
f) The operating profits (EBIT) are not expected to grow.
g) Business risk is assumed to be constant overtime and is assumed to be independent of its
capital structure and financial risk.
h) The firm has a perpetual life.
 Net Income Approach

According to net income approach, suggested by David Durand, the capital structure decision is
relevant to the valuation of the firm. In other words, a change in the financial leverage will lead
to a corresponding change in the overall cost of capital as well as the total value of the firm. If,
therefore, the degree of financial leverage as measured by the ratio of debt to equity is increased,
the weighted average cost of capital will decline, while the market value of the firm as well as
the value of ordinary shares will increase. Conversely, a decrease in the leverage will cause an
increase in the overall cost of capital and a decline both in the value of the firm as well as market
price of the equity shares.

The net income approach is based on three assumptions: first, there are no taxes; second, that the
cost of debt is less than the equity-capitalization rate or the cost of equity; third, that the use of
debt does not change the risk perception of investors. The financial risk perception of the
investors does not change with the introduction of debt or change in leverage implies that due to
change in leverage, there is no change in either the cost of debt or the cost of equity. The
implications of the three assumptions underlying the NI Approach is that as the degree of
leverage increases, the proportion of a cheaper source of funds, that is, debt in the capital
structure increases. As a result, the WACC tends to decline, leading to an increase in the total
value of the firm. Thus, with the cost of debt and the cost of equity being constant, the increased
use of debt will magnify the shareholder’s earnings and, thereby, the market value of the
ordinary shares.

The financial leverage, is according to the NI Approach, an important variable in the capital
structure of a firm. With a judicious mixture of debt and equity, a firm can evolve an optimum
capital structure which will be the one at which value of the firm is the highest and the overall
cost of capital is the lowest. At that structure, the market price per share would be maximum.
If the firm uses ne debt or if the financial leverage is zero, the overall cost of capital will be
equal to the equity-capitalization rate. The WACC will decline and will approach the cost of debt
as the degree of leverage reaches one.

For example-

A company’s expected annual net operating income (EBIT) is Rs.50,000. the company has
Rs.2,00,000, 10% debentures. The equity capitalization rate (ke) of the company is 12.5%.

Solution- With no taxes, the value of the firm, according to the NI Approach is

PARTICULARS AMOUNT
EBIT 50,000
(-) interest on debentures 20,000
Earnings available to equity shareholders(NI) 30,000
Equity capitalization rate (ke) 0.125
Market value of equity (S) = NI/ke 2,40,000
Market value of debt (B) 2,00,000
Total value of the firm (S+B) = V 4,40,000
Overall cost of capital = ko = EBIT/V (%) 11.36
 Net Operating Income Approach

Net Operating Income Approach was also suggested by Durand. This approach is of the opposite
view of Net Income approach. This approach suggests that the capital structure decision of a firm
is irrelevant and that any change in the leverage or debt will not result in a change in the total
value of the firm as well as the market price of its shares. This approach also says that the overall
cost of capital is independent of the degree of leverage. 

Features of NOI approach:

1. At all degrees of leverage (debt), the overall capitalization rate would remain constant.
For a given level of Earnings before Interest and Taxes (EBIT), the value of a firm would
be equal to EBIT/overall capitalization rate.
2. The value of equity of a firm can be determined by subtracting the value of debt from the
total value of the firm. This can be denoted as follows: 
Value of Equity = Total value of the firm - Value of debt
3. Cost of equity increases with every increase in debt and the weighted average cost of
capital (WACC) remains constant. When the debt content in the capital structure
increases, it increases the risk of the firm as well as its shareholders. To compensate for
the higher risk involved in investing in highly levered company, equity holders naturally
expect higher returns which in turn increases the cost of equity capital.
 Traditional Approach

The Net Income theory and Net Operating Income theory stand in extreme forms. Traditional
approach stands in the midway between these two theories. This Traditional theory was
advocated by financial experts Ezta Solomon and Fred Weston. According to this theory a
proper and right combination of debt and equity will always lead to market value enhancement
of the firm. This approach accepts that the equity shareholders perceive financial risk and expect
premiums for the risks undertaken. This theory also states that after a level of debt in the capital
structure, the cost of equity capital increases.
 Modigliani-Miller Approach

Modigliani Millar approach, popularly known as the MM approach is similar to the Net
operating income approach. The MM approach favors the Net operating income approach and
agrees with the fact that the cost of capital is independent of the degree of leverage and at any
mix of debt-equity proportions. The significance of this MM approach is that it provides
operational or behavioral justification for constant cost of capital at any degree of leverage.
Whereas, the net operating income approach does not provide operational justification for
independence of the company's cost of capital. 

Basic Propositions of MM approach:

1. At any degree of leverage, the company's overall cost of capital (k o) and the Value of the firm
(V) remains constant. This means that it is independent of the capital structure. The total value
can be obtained by capitalizing the operating earnings stream that is expected in future,
discounted at an appropriate discount rate suitable for the risk undertaken.
2. The cost of capital (ke) equals the capitalization rate of a pure equity stream and a premium for
financial risk. This is equal to the difference between the pure equity capitalization rate and k i
times the debt-equity ratio.
3. The minimum cut-off rate for the purpose of capital investments is fully independent of the way
in which a project is financed.

Assumptions of MM approach:

1. Capital markets are perfect.

2. All investors have the same expectation of the company's net operating income for the
purpose of evaluating the value of the firm.
3. Within similar operating environments, the business risk is equal among all firms.
4. 100% dividend payout ratio.
5. An assumption of "no taxes" was there earlier, which has been removed.
Arbitrage process

Arbitrage process is the operational justification for the Modigliani-Miller hypothesis.

Arbitrage is the process of purchasing a security in a market where the price is low and selling it
in a market where the price is higher. This results in restoration of equilibrium in the market
price of a security asset. This process is a balancing operation which implies that a security
cannot sell at different prices. The MM hypothesis states that the total value of homogeneous
firms that differ only in leverage will not be different due to the arbitrage operation. Generally,
investors will buy the shares of the firm that's price is lower and sell the shares of the firm that's
price is higher. This process or this behavior of the investors will have the effect of increasing
the price of the shares that is being purchased and decreasing the price of the shares that is being
sold. This process will continue till the market prices of these two firms become equal or
identical. Thus the arbitrage process drives the value of two homogeneous companies to equality
that differs only in leverage.

Limitations of MM hypothesis:

1. Investors would find the personal leverage inconvenient.

2. The risk perception of corporate and personal leverage may be different.
3. Arbitrage process cannot be smooth due the institutional restrictions.
4. Arbitrage process would also be affected by the transaction costs.
5. The corporate leverage and personal leverage are not perfect substitutes.
6. Corporate taxes do exist. However, the assumption of "no taxes" has been removed later.
 Approaches to establish appropriate Capital Structure

The following are the 3 most common approaches to decide about a firm’s capital structure:
1. EBIT-EPS approaches- The EBIT-EPS analysis is an important tool in the hands of the financial
manager to get an insight into the firm’s capital structure management. He can consider the possible
fluctuations in the EBIT and examine their impact on EPS under different financial plans. If the
probability of earning a rate of return on the firm’s assets less than the cost of debt is insignificant, a
large amount of debt can be used by the firm to increase the earnings per share. This may have a
favourable effect on the market value per share. On the other hand, if the probability of earning a rate of
return on the firm’s less than the cost of debt is very high, the firm should refrain from employing debt
capital. It may, thus, be concluded that the greater level of EBIT & lower the probability of downward
fluctuation, the more beneficial is to employ debt in the capital structure. However, it should be realized
that the EBIT-EPS is a first step in deciding about a firm’s capital structure.
2. Cost of Capital and Valuation Approach- The cost of a source of finance is the minimum return
expected by its suppliers. The expected return depends on the degree of risk assumed by investors. A
high degree of risk is assumed by the shareholders than the debt-holders. In case of debt-holders, the rate
of interest is fixed and the company is legally bound to pay interest whether it makes profits or not. The
loan of debt-holders is returned within a prescribed period, while shareholders will have to share the
residue only when the company is wound up. This leads one to conclude that debt is a cheaper source of
funds than equity. The preference share capital is also cheaper than equity capital, but not as cheap as
debt.
3. Cash Flow Approach- One of a feature of a sound capital structure is conservatism. Conservatism does
not mean employing no debt or small amount of debt. Conservatism is created by the use of debt or
preference capital in the capital structure and the firm’s ability to generate cash to meet these fixed
charges. The fixed charges of a company include payment of interest, preference dividends, and the
principal, and they depend on both the amount of loan securities and the terms of payment. The amount
of fixed charges will be high if employs a large amount of debt or preference capital with short-term
maturity. The company expecting larger & stable cash inflows in the future can employ a large amount
of debt in their capital structure.
One important ratio which should be examined at the time of planning the capital structure is the ratio of
net cash inflows to fixed charges (debt- servicing ratio). It indicates the number of times the fixed
financial obligations are covered by the net cash inflows generated by the company. The greater the
coverage, the greater is the amount of debt a company can use.
 CALCULATION OF RELATED RATIOS
Earnings before Interest, Taxes, Depreciation, Amortization (EBITDA)
EBITDA is a widely used measure of core corporate profitability. EBITDA is calculated
by adding interest, tax, depreciation, and amortization expenses to net income.

Particulars 31 March 2021 31 March 2020 31 March 2019

(in Rs Crore) (in Rs Crore) (in Rs Crore)

EBITDA 836.57 944.25 1,426.85

EBITDA
1,600.00

1,400.00

1,200.00

1,000.00

800.00

600.00

400.00

200.00

0.00
(in Rs Crore) (in Rs Crore) (in Rs Crore)
31-Mar-19 31-Mar-20 31-Mar-21

Fig 1.6 EBITDA

Interpretation: The above finding shows that the EBITDA of last three years in BYPL are- In
2021-20 EBITDA is 836.57 and in 2020-19 EBITDA was 944.25 and in 2019-18 EBITDA was
1,426.85 which shows an decrement in EBITDA. The EBITDA of BSES YAMUNA POWER
LIMITED has decreased by -12.34 % over the previous year.
Interest Coverage ratio-: The interest coverage ratio is a debt and profitability
ratio used to determine how easily a company can pay interest on its
outstanding debt. 

Interest Coverage Ratio = EBIT

Interest Expense

Particulars 31st March 21 31st March 20 31st March 19

Interest Coverage Ratio 0.57 0.70 0.17

Interest Coverage Ratio

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2018-19 2019-20 2020-21

Interest Coverage Ratio

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 Ratio = Current Assets

Current Liabilities

Particulars 31st March 21 31st March 20 31st March 19

Current Ratio 0.07 0.08 0.08

Current Ratio
0.082

0.08

0.078

0.076

0.074

0.072

0.07

0.068

0.066

0.064
31st March 19 31st March 20 31st March 21

Current Ratio
Debt equity ratio-: The debt to equity ratio is the most popular leverage ratio and it provides
details about the amount of leverage (liabilities) a company has in relation to the equity. A high
ratio here means less protection for creditors. A low ratio, on the other hand indicates a wider
safety cushion.

Debt to Equity Ratio = Total Liabilities

Shareholder’s Equity

Particulars 31st March 21 31st March 20 31st March 19

Debt Equity Ratio 1.74 2.14 2.69

Debt-Equity Ratio

2.5

1.5

0.5

0
31st March 21 31st March 20
Debt-Equity Ratio 31st March 19

Interpretation: The above finding shows that the Debt Equity Ratio of last three year in BYPL
are in 2011-12 was 9.45 , in 2012-13 it was 11.57 and 2013-14 it became 13.48 . This increase
in the debt-equity ratio is due to No fresh issue of equity.
 SWOT Analysis Of BSES Delhi

Strengths –
 Improving the distribution infrastructure.
 Focusing on consumer.
 Using best technology for distribution of electricity.

Weaknesses -
 There is no such decision-making process. All the decisions come from the PAN India
Corporate Offices (Mumbai).
 Man power skills are less developed.
 Recovery of payment dues is not proper. Bad debts are high.

Opportunities -
 BSES Delhi has no close competitors available in the market.
 Backward integration.

Threats -
 There is no such threat to BSES Delhi till date. At present it is a pure monopoly.

P & L Statement As At 31ST MARCH’21:

BSES Yamuna Power Limited
As on (units in INR) 31 March, 2021 31 March, 2020 31 March, 2019
Continuing Operations
Revenue from operations 48,59,06,54,576 54,68,39,01,749 58,99,04,93,875
Other income 37,92,01,203 33,19,25,951 63,88,59,446
Total revenue 48,96,98,55,779 55,01,58,27,700 59,62,93,53,322
Cost of materials consumed 33,17,44,07,346 38,52,13,16,710 38,48,79,26,359
Purchases of stock in trade 0 0 0
Changes in inventory 0 0 0
Employee benefit expenses 3,88,20,55,616 3,42,69,96,098 3,44,79,92,236
Finance costs 11,11,93,85,287 10,65,63,94,497 10,64,86,42,855
Depreciation and amortization 1,97,82,15,350 1,93,58,30,451 1,82,52,31,508
Other expenses 3,54,77,25,744 3,62,50,34,406 3,42,49,68,319
Total expenses 53,70,17,89,344 58,16,55,72,161 57,83,47,61,277
Profit before exceptional items and tax -4,73,19,33,565 -3,14,97,44,461 1,79,45,92,044
Exceptional items before tax 8,40,36,44,800 5,77,00,82,781 -54,12,50,406
Profit before tax 3,67,17,11,235 2,62,03,38,320 1,25,33,41,639
Current tax expense -43,78,50,128 43,67,76,904 10,46,37,249
Deferred tax expense 0 0 -56,85,70,906
Net movement in regulatory deferral 0 0 0
account balances
Profit / loss from continuing operations 4,10,95,61,362 2,18,35,61,416 1,71,72,75,296
Profit / loss from discontinuing operations 0 0 0
(after tax)
Net profit/loss after tax 4,10,95,61,362 2,18,35,61,416 1,71,72,75,296
Other comprehensive income 62,54,309 52,48,075 28,05,340
Total comprehensive income / losses for 4,11,58,15,671 2,18,88,09,491 1,72,00,80,636
the year
Balance sheet AS AT 31ST MARCH’21:

BSES YAMUNA POWER LIMITED

As on (units in INR) 31 March, 2021 31 March, 2020 31 March, 2019
Equity & Liabilities
Equity share capital 5,56,00,00,000 5,56,00,00,000 5,56,00,00,000
Other equity 10,14,32,13,525 6,02,73,97,854 3,83,85,88,362
Non-current liabilities
Financial liabilities
Borrowings 9,43,14,96,420 8,67,42,53,046 9,56,65,16,276
Trade payables 0 0 0
Other financial liabilities 4,74,48,55,148 4,67,88,17,520 4,66,99,28,998
Provisions 41,78,74,345 51,59,48,674 52,76,14,815
Deferred tax liabilities (net) 0 0 0
Other liabilities 4,54,07,77,398 4,66,29,78,134 4,24,92,41,211
Current liabilities
Financial liabilities
Borrowings 2,25,21,03,502 2,17,12,73,063 2,37,26,91,676
Trade payables 83,56,93,28,342 80,29,57,49,876 75,08,15,68,233
Other financial liabilities 3,36,76,99,985 2,36,69,87,950 1,97,39,33,665
Provisions 83,41,15,673 1,52,99,07,625 1,29,90,20,737
Current tax liabilities (net) 0 0 0
Other liabilities 2,98,75,92,800 2,18,84,77,303 2,45,62,03,447
Liabilities associated with assets in 0 0 0
disposal group
Regulatory deferral account credit
balances
Total liabilities 1,12,14,58,43,614 1,07,08,43,93,191 1,02,19,67,19,058
Total equity and liabilities 1,27,84,90,57,140 1,18,67,17,91,045 1,11,59,53,07,420

Assets
Non-current assets
Property plant and equipment 23,71,38,82,176 22,80,76,65,194 22,51,71,46,609
Capital work in progress 46,65,83,873 1,02,04,38,376 71,88,34,039
Investment property 0 0 0
Goodwill 0 0 0
Intangible assets 16,57,16,385 12,80,14,745 9,58,11,083
Intangible assets under development 0 0 0
Financial assets
Investments 0 0 0
Trade receivables 0 0 0
Loans 47,272 1,71,520 3,28,295
Other financial assets 90,16,94,145 1,07,05,28,560 1,00,63,13,418
Deferred tax assets (net) 0 0 0
Other assets 64,38,75,843 16,14,59,814 10,42,64,517
Current assets
Inventories 16,24,67,480 18,02,53,961 16,12,25,704
Financial assets
Investments 0 0 0
Trade receivables 2,94,29,30,821 2,96,83,10,360 2,46,93,47,847
Cash and cash equivalents 45,39,66,328 35,07,55,309 47,09,35,519
Other bank balances with banks 35,05,22,127 51,03,79,219 88,49,735
Loans 29,17,096 95,74,758 58,69,199
Other financial assets 1,80,70,70,609 1,85,56,14,187 2,35,31,57,066
Current tax assets 1,22,01,145 1,22,01,145 1,22,01,145
Other assets 1,19,54,14,574 1,02,78,20,570 93,03,47,497
Noncurrent assets held for sale 0 0 0
Regulatory deferral account debit
balances
Total assets 1,27,84,90,57,140 1,18,67,17,91,045 1,11,59,53,07,420
 CONCLUSION

“Capital Structure is concerned with the allocation of the firm’s scarce financial resources
among the available market opportunities. The consideration of investment opportunities
involves the comparison of the expected future streams of earnings from a project with the
immediate and subsequent stream of expenditure for it.”

Thus, the capital structure decision may be defined as the firm’s decision to invest its current
funds most efficiently in long-term activities in anticipation of an expected flow of future
benefits over a series of years. Such decisions may consist of addition, disposition, modification,
mechanization or replacement of any fixed assets.

BSES is the leading organization in India. BSES maintains the standard, quality of services and
the brand image through its uncompromising customer service. It has separate finance
department which is entrusted with the task of carrying out its various roles efficiently.

The business of BSES is carried on in a very scientific manner. The procedure followed in the
capital budgeting of the proposal is in the scientific manner. The organization also does the
sensitivity analysis so that in case of any contingency the organization will not have loss.

Overall, the financial performance of the organization is very well as it is having a continuous
growth.
 BIBLIOGRAPHY

 Reference Material provided by BSES Power Ltd.,Karkardooma, New Delhi.

 Balance Sheet of BSES Rajdhani and BSES Yamuna Power Ltd.

Internet References

 http://www.ndtv.com/?site=classic

 www.google.com

 http://en.wikipedia.org/wiki/Capital_sturcture

 http://www.studyfinance.com/lessons/capbudget/index.mv?page=03

 www.company360.com

 www.bses.com

Study Material

 Financial Management by Khan & Jain