The document discusses the financial planning process for corporations. It describes financial planning as determining a company's financial needs and goals for the future and how to achieve them. The key components of financial planning are current resources, investment options, and financial goals. It also provides steps for setting financial goals and analyzes the financial planning of the National Transmission and Despatch Company Limited project to build a new 500kV grid station in Lahore.

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CORPORATE FINANCE (8524)
Topic: Financial Planning Process in a Corporation
Submitted To:
Mr. Shahbaz Noor
Submitted By:
Mudassar Afzal
Roll No.
AR523807
Class:
MBA (B&F) 4th Semester

3. Financial Planning Process
The process of determining a company's
financial needs or goals for the future and how
to achieve them. Corporate financial planning
involves deciding what investments and
activities would be most appropriate under
both the company's individual and broader
economic circumstances.
A company’s financial plan is essential for
growth and increasing profitability.
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4. Financial Planning Process
Planning in business is very important. It
provides a guide for the overall operation of
the business. financial planning provides a
structure to the way finances are handled
within the organization or company.
Financial planning manages the flow of cash
in and out of the business. Essentially, it’s
impossible for an organization to function and
be financially stable without financial planning.
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5. Components of FPP
There are only 3 major components in the Financial
Planning process:
Current Resources (CR)
Investment Options (IO)
Financial Goals (FG)
Financial Planning: CR + IO = FG

7. Steps Steps ffoorr sseettttiinngg FFiinnaanncciiaall GGooaallss
1. Write Goals and Specific
2. Identify time-specific goals
 Short -Term Goals (Upto 01 Year)
 Medium–Term Goals (Upto 05 Year)
 Long–Term Goals (After 05 Year )
3. Priority
4. Identify the types of resources needed to achieve
these objectives
5. Analysis of Current Financial Situation
 Cash Flow Statement
 Net Worth
 Budgeting

8. CCaassee SSttuuddyy
National Transmission and
Despatch CompanyLimited

9. Introduction
National Transmission & Despatch Company (NTDC)
Limited was incorporated on 6th November, 1998
and commenced commercial operation on 24th
December, 1998. It was organized to take over all
the properties, rights and assets obligations and
liabilities of 220 KV and 500 KV Grid Stations and
Transmission Lines/Network owned by Pakistan
Water and Power Development Authority (WAPDA).
NTDC operates and maintains twelve 500 KV and
Twenty Nine 220 KV Grid Stations, 5077 km of
500 KV transmission line and 7359 km of 220 KV
transmission line in Pakistan.

10. Projects
 220KV GIS Grid Station at Ghazi Road LHR, along with 02 Nos
220 KV T/Lines (KfW Finance)
 500 KV New Lahore
 220 KV Gujarat
 220 Kv Chishtian Grid Station & Allied T/Lines
 220KV GIS Shalamar Substation & 220KV T/Lines
 220 KV GIS Islamabad University
 220 kV T.T Singh Grid station
 220kv Okara Grid station

11. 500 kV New Lahore GRID
STATION

12. 500 kV New Lahore Grid Station
Capital Cost Estimates:
Local : 5502 Million
Foreign 7022 Million
Total 12524 Million
Annual Operating Cost
Local: 1261.86 Million
Foreign: 7.02 Million
Total: 1268.88 Million

13. 500 kV New Lahore Grid Station
Financial Plan :
Equity: -
Debt:
Local : 10975 Million
Foreign : 13342 Million
Total : 24317 Million
Interest Rate:
Local : 10.56% P/A
Foreign : 12:00% P/A
Repayment Period: 20 Years

14. 500 kV New Lahore Grid Station
Financial Analysis:
Annual Income: (Rs. In Million ) NTDC UOSC Value)
UOSC (Use of System Charges) Value : 1587.79
Unit Cost Rs./kWh (net) = 0.183

15. Conclusion
Planning in business is very important. It
provides a guide for the overall operation of
the business. Likewise, financial planning
provides a structure to the way finances are
handled within the organization or company.
Financial planning manages the flow of cash
in and out of the business. Essentially, it’s
impossible for an organization to function
and be financially stable without financial
planning.

16. Question