Summer Internship Report

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A

PROJECT REPORT

ON

“STUDY OF CRITICAL FINANCIAL POSITION OF KLA INDIA


PUBLIC LTD.”

FOR

THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE


DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION (2022-2025)

SUBMITTED TO: SUBMITTED BY:

Ms. Jyoti Jalal Prasanjeet Chakravarti

Roll No.- 220305250020

Department of Business Administration


Sardar Bhagat Singh Govt. Post Graduate College

Rudrapur (U. S. Nagar)


TO WHOM SO EVER IT MAY CONCERN

This is to certify that this project work titled “ Study of critical financial
position”
Submitted by Prasanjeet Chakravarti of BBA V Semester for partial fulfillment
of award of the degree of Bachelor of Business Administration was carried out by
him under my guidance. He was sincere in putting efforts to present this project
report.

Ms. Jyoti Jalal


Designation________________
Department of Business Administration

S.B.S. Govt. Post Graduate College


Rudrapur (U. S. Nagar)
STUDENT DECLARATION

I hereby declare that project report entitled "Study of


financial modeling of KLA INDIA PUBLIC Ltd.” is
written and submitted by me under the guidance of Mrs.
Jyoti Jalal, Department of Business Administration, S.B.S. Govt.
Post Graduate College , Rudrapur (U. S. Nagar). The information
incorporated in this project is true and original to the best of
my knowledge. This report is my original work and has not
been copied from any other sources.

Prasanjeet Chakravarti

BBA- V SEMESTER

ROLL NO.: 220305250020


ABSTRACT

This report presents a comprehensive analysis of financial modeling techniques employed to


forecast company performance and assess investment opportunities. We explore various
modeling frameworks, including discounted cash flow (DCF), comparative company analysis,
and scenario planning. The objective is to highlight the importance of accurate financial
projections in decision-making processes. Through case studies, we demonstrate the
application of these models in real-world contexts, addressing both strengths and
limitations. Our findings indicate that robust financial models not only enhance valuation
accuracy but also improve strategic planning and risk management. The report concludes
with best practices for developing effective financial models tailored to diverse business
environments.
ACKNOWLEDGEMENT

I want to take this opportunity to express my heartfelt thanks to KLA India Public Limited for
providing me with an exceptional learning experience during my internship. It was truly a
pleasure to be part of such an esteemed organization for 30 days.

Firstly, I extend my gratitude to Mr. Bhuwan Chandra, CFO, and a special acknowledgment
to Mr. Arun Agarwal, M.D., as well as all other staff members who supported and guided me
throughout the internship, enriching my industrial experience.

Additionally. I am equally thankful to all other employees and department members for their
kind cooperation and prompt assistance

Lastly, I would like to express my appreciation to Dr. B.S RAJPUT , Coordinator at my


college. His invaluable guidance sharing of knowledge, and inspiration were instrumental in
my successful completion of the internship program.

PRASANJEET CHAKRAVARTI

BBA VTH SEMESTER


TABLE OF CONTENTS
Page No.
Chapter 1 1
 1.1 Introduction
 1.2 Theoretical Background
Chapter 2 2
 2.1 Industry profile
 2.2Company profile
Chapter 3 10
 3.1 Objective of study
 3.2 Period of study
 3.3 Research Methodology
 3.4 Scope of the study
Chapter 4 15
 4.1 Data analysis & Interpretation
Chapter 5 16
 5.1 Findings
 5.2 Suggestions & Recommendations
 5.3 Limitation of study
 5.4 Conclusion

 Bibliography 19
INTRODUCTION
Financial modeling is the process of creating mathematical representations of a company's
financial performance. It involves building models that forecast future financial outcomes
based on historical data and assumptions about future trends. These models are used to
evaluate potential business decisions, assess risks, and optimize financial strategies.

Theoretical background of financial model


Financial modeling is both an art and a science that combines quantitative skills with
financial and business knowledge to project the future performance of a company or asset. It's
crucial for decision-making, planning, and evaluation in corporate finance, investment
banking, private equity, project finance, and even corporate budgeting.
1. Historical Data: The model often starts with the company's past financial data, typically
from its income statement, balance sheet, and cash flow statement. This data provides the
foundation for forecasting future performance.
2. Assumptions: Financial models rely heavily on assumptions about things like growth rates,
cost structures, interest rates, taxes, and other macroeconomic variables. These assumptions
can either be based on historical trends or external factors like industry performance, market
conditions, or management goals.
3. Forecasts: Once assumptions are set, the model predicts future performance by projecting
key financial statements (Income Statement, Balance Sheet, and Cash Flow Statement). The
forecasted periods can range from a few months to several years.

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INDUSTRY PROFILE

Overview

Rice is a staple food for billions of people worldwide, making it one of the most important
agricultural commodities globally. The rice industry encompasses a complex network of
production, processing, trade, and consumption. The global rice trade is influenced by various
factors, including climate conditions, government policies, consumer preferences, and
economic trends.

Key Players and Regions


 Major Producing Countries:
o India

o China

o Indonesia

o Bangladesh

o Vietnam

 Major Exporting Countries:


o India

o Thailand

o Vietnam

o Pakistan

o United States

o Myanmar

 Major Importing Countries:


o China

o Philippines

o Saudi Arabia

o United States

o Iran

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COMPANY'S PROFILE
KLA INDIA PUBLIC LIMITED

The logo symbolizes KLA's mission to advance the


Agriculture Industry with continuous growth and values. It
features two green leaves representing growth and
humanity, complemented by an orange circle depicting
the rising sun and core values. Together these elements R
embody KLA's commitment to achieving "Growth with
values in agriculture, paving the way for sustainable development and prosperity

Project Overview:

 KLA's inception, nurtured by Mr. Kundan Lal Agarwal's visionary leadership, began half
a century ago with a focus on rice export.
 Over the years, KLA has diversified into multiple sectors including Fruits & Vegetables
Processing. Agro products (sugar, maize. soybean meal, sugar beans). Solar Power, and
Global Farming.

KLA's Genesis:

 Founded in a region known for the green revolution, KLA aimed to promote the food
industry, benefiting Northern India's Himalayan and Tarai regions
 Built on pillars of determination, dedication, and foresight, KLA emerged as a symbol of
sustainable growth

Our Vision:

 KLA strives to set new benchmarks in rice and vegetable production quality through
aggressive expansion diversification.
 We uphold integrity, dedication and enduring relationship with partners and workforce,
fostering a thriving work environment.

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Insight into Rice Exports:

The global rice trade is a massive industry, with annual volumes reaching 40 million tons,
driven by trends in liberalization globalization, and privatization. This environment presents
significant opportunities for India, positioning it as a major player in the international rice
market KLA is actively expanding its market share by enhancing infrastructure and
establishing new facilities to meet stringent global standards.

Significance of BASMATI Rice:

BASMATI rice, renowned for its exceptional quality is primarily cultivated in the fertile
Tarai Belt of Northern India, particularly in Uttarakhand. The region's unique blend of fertile
soil and favourable climate conditions at the base of the Himalayas ensures the production of
premium-grade BASMATI rice. recognized worldwide for its aroma and taste.

Rice Processing Expertise

Their proficiency in handling BASMATI rice extends seamlessly to non-BASMATI


varieties, including IR-64. IR-36. IR-8, PR-106, 1001. Mahamaya, Common (Mota). Swarna,
Sona Mansoori, Parmal, Pant-4, and 100% Broken rice. Specializing in both Parboiled

 Dedication: At KLA, there's a strong sense that "This is Company, emphasizing personal
responsibility and accountab to meet dynamic business demands.
 Commitment to Customer Satisfaction: KLA priorit understanding customer needs
deeply and developing taila solutions that ensure a mutually beneficial outcome.
 Teamwork: Collaboration at KLA is characterized by mutual transparency, and a global
mindset, where everyone encouraged to honestly advocate ideas and recognize pote risks.

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 Integrity: Integrity is at the core of KLA's operations, foste honest relationships with
consumers, business partners, and v the team to uphold ethical standards and achieve
long- success.

VISIONARIES

Kundal Lal Agarwal

The visionary of KLA group, the man who has always led by example. Mr. K.L. Agarwal is
the Chairman of the company. The foundation of the rice processing unit in the year 1975 at
Rudrapur was laid by him. He actively took part in the success of Green revolution by
providing support to the farmers. His vision for the company was mainly driven to contribute
towards the self- sufficiency of India in terms of food grains after independence K. L.
Agarwal has also been actively associated with various soc commitments and has been a
forerunner in fulfilling his social obligations. He has played a major role in the construction
of various charitable hospitals and temples in India. He is actively involved in propagating
Yoga. He is president of Yog Sadhan Ashram, Rishikesh. He was Chairman M. A. Eye
Hospital. Rudrapur He is also managing various trusts for the social welfare.

Arun Agarwal

The Managing Director of the company and a stalwart in the of Economics and is well versed
with the concepts of agro-trading policy changes and adaptability in the export arena. After
completing his majors in Economics, he joined the family business of manufacturing and
trading of food grains. Under his guidance, we bagged the award by paying the highest
Mandi Tax in the whole state in the year 1995. He is also a member in the Indian Railway
Advisory Board Because of his contribution to the nation in the growth of industries, he has
been awarded Rajiv Gandhi Shiromani Award by the National Integration and Economic
Council. For his outstanding contribution he has also been conferred Uttarakhand Ratan
Award He is actively involved for the upliftment of rural children by supporting Ekal
Vidyalaya (Solo Schools) which imparts education in remote villages.

Ashok Agarwal

A Gold Medallist Engineering graduate from IIT-ISM. Dhanbad: Mr. Ashok Agarwal is
Director in the company, who along with his analytical skills and experience with Coal India

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Ltd paved the right path for KLA to tread in international markets and diversity into various
segments. The technical edge which he acquired helped him to quickly understand the
nuances of the game and his proactive approach led to the upgrading of rice mill and
establishing Food processing industry to international standards. His technological know-how
is continually helping KLA to adapt to the latest advancements.

 He was member IMC (Institute Management Committee) for ITI.


 He is ex Cll (Confederation of Indian Industries) Co-Chairman.

Kumaon Zone- Uttarakhand.

 He has been awarded Bharat Udyog Rattan Award by the Institute of Economic Studies
due to his contribution to national industrialization.
 He is governing body member of AIREA (All India Rice Exporters Association).

Utsav Agarwal

He has done MBA in International Business from prestigious IIFT (Indian Institute of
Foreign Trade). He is member of Young Captains Committee of AIREA (All India Rice
Export Association). He is widely travelled across the globe and has added new countries to
the basket of KLA Group.

Lakshya Agarwal

He has done MBA from prestigious SP Jain. Mumbal. He is a business wizard and has helped
company to tie up with the modem r‫ الماء‬business like Big Bazaar and online platform
Amazon, Flipkart. Paytm, Shop Clues. GeM etc. He got company upgraded to 15O 22000:
2018 HACCP certificate (International quality certificate) which has enabled company to
have access to quality discerning buyers across the globe.

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 KLA has emerged as one of the leading export houses of Uttarakhand and hence trying to
fulfil its Corporate Social Responsibility fowards the society.
 KLA is supporting Ekal Vidyalaya (Solo Schools), which imports education in remote
villages.
 KLA is actively involved in bringing orphan children in mainstream by supporting SOS
village.
 KLA also supports the education of the under privileged children by supporting primary
Government schools.
 KLA has been actively involved in the community welfare of Rudrapur city. It has
installed Fountain for the beautification o the city. It has done landscaping at important
public places.
Their Customers
KLA has the privilege of partnering with major Trading Houses located in Singapore,
Switzerland, UAE, and France. Our primary export destinations for rice include South
Africa, Benin, Togo Ghana, Ivory Coast Guinea, Senegal, Angola, Kenya, Namibia.
Madagascar Mauritius, Djibouti UAE. Saudi Arabia. Oman. Egypt Sudan Somalia
Mexico Mozambique, Philippines, Nepal Venezuela, Russia.
Organic Farming Initiative
In Uttarakhand organic agriculture represents an organized and forward-thinking
approach to revitalize hill agriculture. KLA actively promotes organic farming and
markets its own brand of Organic Basmati Rice. We engage in contract farming of
organic rice specifically for customers in Europe. the UK. and the USA, contributing to
sustainable farming practices and meeting global

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Awards and Certificates

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OBJECTIVES OF STUDY
1. To study strategic planning used in finance to maintain position and
its growth in KLA Ltd.
Strategic planning is a critical tool for rice industry players to maintain their position and
foster growth. By carefully analyzing market trends, competitive landscapes, and
financial performance, companies can make informed decisions to optimize their
operations and secure a sustainable future.
Financial Tools for Strategic Planning:
 Financial Modeling: Use financial models to forecast future performance, assess the
impact of different strategies, and identify potential risks.
 Performance Measurement: Implement key performance indicators (KPIs) to track
progress and measure the effectiveness of strategies.
2. To study GST and revenue model of KLA Ltd. To maintain cash
inflow and outflow time to time.
 GST Impact Assessment:
 Analyze the impact of GST on the company's input and output taxes.
 Identify opportunities for GST input credit utilization and tax savings.
 Assess the compliance requirements and potential risks associated with GST.
 Revenue Model Analysis:
 Evaluate the company's current revenue streams and their contribution to overall
revenue.
 Identify potential areas for revenue growth and diversification.
 Analyze the impact of GST on the pricing strategy and profitability of the company's
products and services.

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PERIOD OF STUDY
Financial Modeling Internship at KLA Ltd.
 Duration: June 13 - July 13, 2024
 Mentor: Lakshya Aggarwal
 Key Skills Gained:
o Financial Administration and GST Management
o Export Refund Management
o Forecasting Techniques
o Financial modeling best practices

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RESEARCH METHODOLOGY

Research methodology is a scientific and systematic way to solve the research problem. It is
conceptual structure within which research is conducted. In preparing of this project, the
information collected from the following sources:

DATA COLLECTION (Qualitative Method)

SECONDARY DATA

The major sources for secondary data are as follows:

Annual GST Statements of the KLA.

News, announcements and bulletins already available on company online portal

Newspaper publications in Economics Times.

SAMPLING DESIGN

Sampling Unit: GST statements from annual report

Sampling Size: last five years GST statement

RESEARCH OUTCOMES

During my internship at KLA, I focused on researching finance and Goods and


Services Tax (GST) practices within the agricultural export industry. This
methodology outlines the steps taken to gather and analyze data relevant to
KLA's financial management and GST compliance.

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SCOPE OF THE STUDY

When considering the scope of study in financial modeling specifically for a company like
KLA Corporation, a leading supplier of process control and yield management solutions for
the semiconductor industry, here are some tailored aspects to focus on:

1. Business Planning: Companies use it to plan for future growth or decide on new projects.

2. Investment Decisions: Investors use financial models to decide whether to invest in a


company

Studying financial modeling in the context of KLA Corporation provides insights into the
unique challenges and opportunities within the semiconductor industry, making it a vital area
for finance professionals in this field.

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DATA ANALYSIS AND INTEPRETATION OF KLA Ltd.

Data Analysis

1. Industry-Specific Financial Analysis:

o Understanding the semiconductor market dynamics, including demand cycles


and pricing pressures.

o Analyzing KLA's position within the industry and its competitive advantages.

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2. Revenue Modeling:

o Developing models based on KLA's product lines, such as inspection systems


and metrology tools.

o Forecasting revenue streams based on market trends and customer adoption


rates.

o Conducting sensitivity analysis to assess how changes in key assumptions


impact financial outcomes.

3. Performance Metrics:

o Monitoring key performance indicators (KPIs) specific to KLA, such as order


backlog, gross margin, and return on equity.

o Benchmarking KLA’s performance against industry standards

Data Intepretation
1. Stagnation: The company may struggle to grow if cash inflows don't exceed outflows. It
might lack funds for expansion, research, or innovation.

2. Limited Investment: Without surplus cash, the company may find it difficult to invest in
new projects, equipment, or marketing, potentially hampering competitive advantage.

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FINDINGS
1. Sustainable Growth:
o A balanced financial position often indicates that the company can grow
without over-leveraging or compromising its financial health.

2. Debt Management:
o A balanced position typically suggests that the company has managed its debt
levels appropriately, maintaining a healthy debt-to-equity ratio.

3. Cash Flow Stability:


o Consistent cash flows indicate the company's ability to meet obligations and
invest in growth opportunities, reducing the risk of financial distress.

Suggestion and Recommendation


1. Monitor Key Performance Indicators (KPIs):
 Regularly track KPIs related to profitability, liquidity, and solvency to ensure
continued financial health. Consider metrics like operating margin, current ratio, and
return on assets.

2. Invest in Innovation:
 Allocate resources towards research and development to maintain a competitive edge
and adapt to market changes.

3. Focus on Cash Flow Management:


 Enhance cash flow forecasting to ensure liquidity and the ability to capitalize on
strategic opportunities as they arise.

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LIMITATIONS
1. Rapid Technological Changes:
o The semiconductor industry evolves quickly, making it challenging for
financial training programs to keep up with new technologies and market
dynamics.

2. Specialization Requirements:
o The complexity of KLA’s products may require specialized financial
knowledge that general training programs might not cover.

3. Resource Constraints:
o Limited budget and time for training can restrict the frequency and depth of
financial training sessions.

4. Focus on Compliance Over Strategy:


o Training may lean heavily toward compliance and regulatory aspects,
neglecting strategic financial planning and analysis.

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CONCLUSION

In conclusion, my internship experience at KLA has been immensely enriching and


educational, particularly in the areas of finance and GST management within the context of
agricultural exports. Throughout my time here, I have gained a comprehensive understanding
of GST compliance, delving into the intricate details of tax regulations and their practical
application in a dynamic business environment. This hands-on experience has not only
enhanced my knowledge of financial analysis and export financing strategies but also
sharpened my research skills in gathering and interpreting data to support informed decision-
making.

Moreover, my internship has provided valuable insights into the complexities of international
trade, including market dynamics and regulatory challenges specific to the agricultural sector.
Collaborating with professionals at KLA has not only broadened my industry perspective but
also honed my ability to communicate effectively and work collaboratively within a team.

Looking forward, I am confident that the skills and insights gained during my internship will
serve as a solid foundation for my future career endeavours in finance and business
administration. I am grateful for the opportunity to learn and grow in such a supportive and
professional environment at KLA, and I look forward to applying these experiences to
contribute meaningfully to the finance sector in the years ahead.

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BIBLIOGRAPHY

info@klaindia.com
https://www.goldsteinresearch.com/
https://en.wikipedia.org/
https://www.mordorintelligence.com/
https://www.statista.com/
https://www.britannica.com/
https://ourworldindata.org/

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