Financial Analysis and Planning - Assingment: BBA - VI Semester BATCH 2021-22

1.
FINANCIAL ANALYSIS AND PLANNING – ASSINGMENT

BBA – VI Semester BATCH 2021-22
SECTION : E GROUP NO:

NAME
S NO. NAME REGISTRATION CONTRIBUTION REMARKS
NO. TO THE
ASSIGNMENT
1 VARUN AGRAWAL 19BBAR0458 Q1 , Q2 , Q3 ,
Q4
MARKS ALLOTED: /100

COMMENTS:
Signature of the Faculty:

Question 1: About Paytm
Introduction:
Incorporated in 2000, One 97 Communications Ltd is India's leading digital ecosystem

for consumers as well as merchants. As of March 31, 2021, the company has a 333
million+ client base and 21 million+ registered merchants to whom it offers payment
services, financial services, and commerce and cloud services.
In 2009, the company launched the first digital mobile payment platform, "Paytm App"
to offer cashless payment services to customers and now, it became India's largest
payment platform and the most valuable payments brand with a total brand value of
US$6.3 billion as per Kantar Brandz India 2020 Report. The app enables customers to
do cashless transactions at stores, top-up mobile phones, online money transfers, pay
bills, access digital banking services, purchase tickets, play games online, buy
insurance, make investments, and more. However, merchants can use the platform for
advertising, online payment solutions, offering products to customers, and loyalty
solutions.
Competitive strengths
• India's leading digital payment service platform.
• Strong brand identity with a brand value of US$6.3 billion.
• Large customer base with 333 million total customers, 114 million annual
transacting users, and 21 million registered merchants.
• Paytm Super-app to access a wide range of digital payment services over mobile
phones.
Evolution:
Initially, Paytm was launched in 2010 as a website that offered a prepaid online
mobile recharge facility. Today, it is available as a web app that is easily accessible
through browsers as well as a native mobile app. Paytm app is available on mobiles
with Android and iOS operating systems.
Paytm launched its wallet service in 2014. According to expanded ramblings, till July
2019, there were more than 450 million registered users and 130 million active users
on Paytm, making it India’s largest mobile payment service platform. The growth of
Paytm witnessed an exponential rise after the Indian Government announced the
demonetization of the 1000 and 500 currency notes in 2016.
The huge success of Paytm attracted many big investors. Even the well-renowned
Indian industrialist Ratan Tata also invested in Paytm in March 2015. Also, the
Alibaba group of China made an investment of $575 million in Paytm while Ant
Financial Services Group bought 25% stakes in One97 in the same month. For
expanding its business, Paytm borrowed a hefty sum of ₹300 Cr from ICICI Bank as
working capital in March 2016. Organizing structure:
flat organizational structure Paytm has a very flat organizational structure Staff on
demand: ExOs instead of owing employees utilize the external resources Hired more
than 10,000 temporary employees for KYC compliance Community and crowd: ExOs
develop communities to connect, collaborate and work beyond organizational
boundaries.
Entrepreneurs wanted to grow exponentially by offering products and services which
can be better, cheaper and more customized simultaneously (Mostert, 2016). Paytm
has moved from being an e-wallet to a payments bank who offers multiple solutions to
multiple businesses. The table below attempt to compare the ExO attributes with that
of initiatives of Paytm in order to possibly establish Paytm as an exponential
organization.
Paytm product and services rendered:

How about a bank in your pocket?
India's most sincere bank, as they call themselves, Paytm Payments Bank offers saving
account with no opening charges and zero minimum balance requirements. Account
holders can deposit up to Rs. 1 lakh and enjoy benefits such as RuPay debit cards, real
time updated Passbook, interest at 4% per annum, and so on. Notably, users need to
complete their KYCs to get their accounts activated.
Paytm Forex Prepaid Forex cards by Paytm
Paytm offers prepaid Forex cards which makes travelling abroad easy. Forex prepaid
cards are the safest way of carrying currency in the form of VISA/Mastercard cards
which are accepted globally. Paytm also offers Forex cash which has a limit capped at
$3000 or equivalent. The rates displayed are constantly refreshed on a real time basis.
Paytm Gold
Paytm has truly made buying gold a cakewalk!
Investing in physical gold is quite an old-school thing to do now. Do you know you
can invest in gold on Paytm? It allows you to acquire as little as you want, and there's
no need to spend a huge amount at once. The quantity one need to redeem is minimum
1 gram and you can transact even on public and bank holidays.
Paytm Mall Experience the new age mall: Paytm Mall
Paytm offers plenty of merchant cashbacks on its website, which can be redeemed on
nextpurchases from the app itself. Users just need to redeem promo codes to get the
required cashback. With the introduction of the Paytm Mall, brands sell their products
on Paytm like pancakes. The products are available at huge-discounts, and the
additional cashbacks are cherry on the cake.
Food Wallet
Time to satisfy your taste buds!
Paytm Food Wallet is a facility for all the employers who consider employee welfare a
priority. It lets users to pay seamlessly through the app with some exciting offers
round- theyear, eradicates the need for physical cards, and also facilitates tax-saving.
Paytm Food Wallet is compliant with I-T and RBI norms and food allowance is just a
click away through an intuitive corporate dashboard.
Market share:
Question 2:
PAYTM LIMITED
(0NE97 COMMUNICATIONS LTD)
STANDALONE INCOME STATEMENT FOR LAST TWO YEARS

F.Y 20- 21 AND F.Y 19-20
Question 3:
Conclusion:
1. Total Income is decreased by 6.76%.
2. Total loss for the year is decreased by 44.93%.
3. Finance costs decreased by 26.08%
4. Total expenses have decreased by 21.42%.
5. Basic and diluted earnings per share decreased by 46.74%.
6. Total comprehensive Income/loss for the year decreased by 44.89%,
compared to previous year.
One97 Communication Ltd. has performed marginally well in the year

2021 compared to 2020 by decreasing its total loss for the year by
44.93%, total expense is also decreased by 21.42%. It’s total
comprehensive Income/loss for the year decreased by 44.89% compared
to previous year
Question 4: Comparative balance sheet for two years :

Question 5: conclusion on comparative balance sheet for the year
Financial year Fy-2019 Fy-2020 Fy-2021

Current assets 6,671 6435.67 7399.88
Non current assets 1910.99 3867.44 1751.46
Total asset 8581.99 10303.11 9151.34
Current liabilities 2700.16 1665.95 2155.26
Non current liability 56.98 545.93 479.87
Total liabilities 2757.14 2211.88 2635.13
Total equity 5824.85 8091.23 6516.21
Total common shares 5,72,56129 6,01,87,655 60,59,30,140
outstanding
Total liabilities & 8581.99 10,303.11 9151.34
shareholders’ equity
comparative balance sheet above, the current assets of Paytm. have decreased by
Rs1151.77 in the year 2020 over 2021.
On the other hand, the current liabilities have increased by Rs 489.31 FY2020-21.
Now, such a change might have a negative impact on the liquidity position of Paytm.
This is because current assets have increased ,whereas current liabilities have inclined.
• Outstanding Shares
Company issued some ESOPs and equity shares last year, which resulted in increase in
outstanding shares.
• Total Assets
Company has seen downfall in total assets due to reduction in right to use assets and
investments, as this year Paytm has ended their contract with some of the leaseholders
of land and office premises. The company has also reduced its investments in fixed
deposits, though in last few years total assets of the company has grown at CAGR of
23.76%
The End

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1.

FINANCIAL ANALYSIS AND PLANNING – ASSINGMENT

SECTION : E GROUP NO:

MARKS ALLOTED: /100

Signature of the Faculty:

Incorporated in 2000, One 97 Communications Ltd is India's leading digital ecosystem

Paytm product and services rendered:

STANDALONE INCOME STATEMENT FOR LAST TWO YEARS

One97 Communication Ltd. has performed marginally well in the year

Question 4: Comparative balance sheet for two years :

Financial year Fy-2019 Fy-2020 Fy-2021

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