Kerala Financial Corporation

Presentation about Kerala Financial Corporation

1. -GROUP NO. 10 Nasiha PC Anusree Mohan Sheethal VV

2. Introduction I ncorporated under the State Financial Corporations Act of  1951. A trend setter and path breaker in the field of long term finance, playing a major role in the development and industrialization of Kerala. It was established as the Travancore Cochin Financial Corporation on 01.12.1953 . I n November 1956, Kerala State was formed and the Travancore Cochin Financial Corporation was renamed as Kerala Financial Corporation.

3. Now KFC has 16 Branch Offices- Head Quarters at Thiruvananthapuram and Zonal Offices at Kozhikode , Ernakulam and Thiruvananthapuram . The provisions of SFCs Act 1951 as amended in 2000 control and guide the functions of Corporation. The main objective of KFC is the rapid industrialization of the state by extending financial assistance to Micro, Small and Medium Enterprises in manufacturing and service sector.  SFCs Act empowers KFC to formulate suitable loan schemes for achieving the above said objectives .

4. Headquarters at Thiruvananthapuram

5. Corporation can give financial assistance for setting up of new units and for the expansion / modernization / diversification of existing units in both manufacturing and service sectors. Since inception KFC has disbursed over Rs. 3000 Crores to more than 40,000 projects , spread over the length and breadth of the State. The Corporation is the first PSU in Kerala and first SFC in India to initiate Corporate Social Responsibility activity . As part of its Corporate Social Responsibility, KFC has set up KFC-CARE (Centre for Assistance and Rehabilitaion ) to rehabilitate and serve the marginalized sections of the community.

6. Going Forward Now emerged as a financial supermarket giving the customers a wide range of products and services . The Corporation is one of the best State Financial Corporations in the country with a competent tech savvy team of professional at the core of services . Constant endeavour has been to bring a sharper focus on the requirements of our customers and to provide the highest levels of service. KFC  now means more than  term  loans -also provides Working  Capital  finance   and  Short  Term Finance  apart  from schemes focused at the weaker sections   of  the  society.

7. Modernization schemes for SSIs, Special schemes for Resorts, Hospitals, TV Serial Production etc are some of the innovative schemes introduced to suit changing customer requirements. KFC has also set up KFC Consultancy Division with a view to render excellent Consultancy Services to our Clients as a Total Solution provider. KFC has also has made a small beginning to nurture and develop a new managerial cadre that can dream, envision and create a new future by starting the KFC Training Division. Offers training programs which are at par, with the programs offered by any institutions of advanced learning in India .

8. Sri.Sanjeev Kaushik IAS (Chairman & Managing Director )

9. Shareholders Rs. in crores % of Shareholding Government of Kerala 215.63 97.19 SIDBI 6.13 2.76 LIC 0.07 0.03 SBT 0.02 0.01 Others 0.01 0.01 Total 221.86 100.00 Share Holding Pattern as on 31 st March 2009  

10. Loan schemes 1.Scheme for Term Loan for industrial activities    To meet long term requirements for projects. All new and existing enterprises, eligible to be funded by the Corporation, except CRE projects. 2.Working Capital Revolving Fund Loan    To provide working capital, on a revolving basis . All new and existing enterprises, eligible to be funded by the Corporation, except CRE projects. 3.Scheme for Financing Construction Activities & Housing Projects     Promoters should be financially sound and successful in their other business areas.  Promoters should be prompt in servicing loans availed by them.  Existing clients of the Corporation will get preference.  Minimum cibil score shall be 600.

11. 4.Short Term Loan Scheme    New and existing units.  Should be prompt in servicing their liability, if any, in this and other projects of theirs. 5.Scheme for Special Working Capital Assistance to Hotels     To provide short term working requirements of well run hotels with minimum procedures . 6.Modified Scheme for Financial Assistance to Contractors    To provide financial assistance to eligible customers for execution of eligible activities and to offer guarantee for the eligible activities, either before start of work or during the work period. 7.Scheme for Financial Assistance for Producing Feature Films & TV Serials    To extent short term finance to meet costs in producing feature films, documentaries and TV serials .

12. 8.Vehicle Loan Scheme    Purchase of all types of vehicles which are used for commercial purposes. Purchase of two wheelers, if required as part of the project and if their number is at least ten . 9.Working Capital Term Loan Scheme    Existing and New Enterprises in Manufacturing & Service Sectors, except CRE projects . 10.Scheme for Modernisation , Upgradation , Expansion and Diversitation of Existing Manufacturing Units/Hotels/Hospitals     To provide financial assistance for modernization, upgradation , expansion and diversification so as to enable the existing enterprises keep pace with the current requirements in technologies, amenities and market requirements.

13. 11.Special Revolving Fund Scheme for Existing Customers    To meet urgent credit requirements of existing customers of the Corporation, connected with the working of the enterprise and with proper justification. 12.Receivable Finance Scheme    To ease the cash flow of MSME units by discounting bills for a maximum period of 180 days. 13.Liberalised Scheme for Financing up to Rs 100 lakhs to Units under KSEDM    To finance the expansion/scaling up of enterprises set up under KSEDM to meet their requirements for purchase of fixed assets, working funds for marketing, launch, salary, other eligible tangible and intangible expenses.

14. 14.Startup Support Scheme    A startup is a newly formed entity, the purpose of which is to develop new, usually innovative products or services in uncertain circumstances. If it satisfies a new need, present in a broader area or even globally, it also has great growth potential. Startup entrepreneurship is crucial because of innovations, new jobs and bringing competitive dynamics into the business environment. Being the developmental agency of the State, in line with Government policy towards Startups, Kerala Financial Corporation aims to support such Startups with all necessary hand holding and mentoring support. Since the CGTMSE limit available to the Corporation is Rs.10 Crores, it is proposed to extend the facility to 100 deserving startups.

15. 15.Scheme for Financing Working Capital Requirements of Start-ups for Executing Purchase Orders    Should be a Start-up . Start-up is an entity which was set up less than 7 years from the date of application and whose turnover has never exceeded Rs 25 crores in any financial year.  Constituted as a Private Limited Company or Limited Liability Partnership. Private Limited Companies have greater acceptability  The applicant entity shall be a MSME, registered with the Government.  The Applicant Entity has firm purchase orders from Reputed Companies.  The Applicant Entity should have successfully executed purchase orders worth, value of, three times the amount applied for.  Preference shall be given to proposals recommended by Kerala Startup Mission (KSUM)

16. 16.Scheme for Funding Venture Debt for IT Hardware & Software Enterprises    Constituted as a Private Limited Company or Limited Liability Partnership.Private Limited Companies have greater acceptability. The applicant entity shall be a MSME, registered with the Government.  The Applicant Entity has undergone due diligence by a SEBI accredited Venture Capital Fund and they have confirmed the amount to be invested and the mode of the same.  Preference shall be given to proposal recommended by Kerala Startup Mission (KSUM)

17. Special package for Women Entrepreneur KFC offers special scheme to Women Entrepreneurs of the state. Only enterprises owned and administered by woman entrepreneur/ entrepreneurs having 100% financial interest shall be eligible under this scheme . Scheme for Energy Saving Projects The objective of this scheme is to promote energy saving measures in SMEs by providing financial assistance for the implementation of Energy Saving Devices/Projects and thereby contributing to environmental improvement and economic development of the country.

18. Services Consultancy Division KFC aims at enhanced Customer Satisfaction through Professional Management, Team Work and Continuous Improvement. Now as part of diversification, the Kerala Financial Corporation has set up KFC Consultancy Division with a view to render excellent Consultancy Services to clients as a Total Solutions provider including training .

19. Core Areas of Management Consultancy that are provided: Industrial Solutions • Valuations of Assets . • Appraisal of Project Reports. • Operational Analysis of Industries. • Preparation of Project Proposals. • Preparation of Rehabilitation Proposals . • Winding up proposals.  Financial Solutions • Cost Analysis .• Financial Management . • Due diligence analysis . • Comprehensive Financial Engineering . • Operations Research. • Analysis and Assessment of Financial Statements. • Financial Restructuring. • Implementation &Accounting Systems. 

20. Marketing Solutions • Market Potential Assessment . • Marketing Audit & Appraisal. • Pricing Strategy . • Market Research & Product Launching. • Marketing Strategies & Designs . •Communication Strategies & designs. Technology & Manufacturing • Technology Selection .• Technology Audit . Non Profit Sector Management • Supporting the formation and Management of Non-Profit Organizations. • Designing and Implementing CSR Strategies. Man Power Solutions • Search and Recruitment Advice . • Placement of Consultants • Placement of Personnel . • Manning Cost Preparation. • Human Resource Audit. 

21. Training Division Training for Trainers Entrepreneur's Training Financials for Non Finance Persons Manpower Planning Training Career Development Training Organisational Development Training Better Communication Skills Training Motivation , Management & Launching Training Product Positioning Training Customer Relations Training

22. Corporate Social Responsibility In line with the decision of the Government of India to up grade 1396 Industrial Training Institutes across the country, KFC has taken up the Women's ITI, Kozhikode to make it a Centre of Excellence. KFC is designated as the 'Industry Partner' for this venture and Chairman of the Institutes Management Committee, which oversees matters such as selection of trainees, arranging training for the faculty, appointment of contract / guest faculty, facilitating on the job training's, development of curriculum, improving the infra-structure and other such matters it deems essential for the development of the institute . On completion of course, placement assistance will be given to successful students, in the units financed by KFC. The launching of the Corporate Social Responsibility Cell ( KFC-CARE ) is the first act of social responsibility commitment being undertaken by any SFCs in India and any public sector undertakings in Kerala.