Insights from My Internship at PhobosGold Technologies

Introduction

I recently finished a very enlightening internship at PhobosGold Technologies Pvt. Ltd. , which is a company aiming at changing the current gold loan appraisal and reappraisal solutions market in India. This papers content is based on insights and observations made during my tenure here and provides an understanding of the company’s operations, industry, and competition sectors and benchmarks and markets. Furthermore, I will submit weekly summaries that include notes on my undertakings and learnings acquired during the process.

About PhobosGold Technologies Pvt. Ltd.

PhobosGold Technologies Pvt. Ltd. , founded on May 15, 2020, in Bangalore, Karnataka, aims at offering banks from India accurate and solid gold appraisal solutions that are also efficient and secure. The company has been established by knowledgeable banking professionals, Mr. N S Bose, Mr. D S Sridhar and Mr. Krishnaraj K Menon whose vision involved the improved gold loan appraisals accuracy and reliability. PhobosGold clarifies that the introduced indicators and applicable bank policies contribute to the improvements in the gold appraisal process, assuming minimal risk and focusing on reducing risks and enhancing the quality of service.

This is the main reason PhobosGold operates within the framework of its key functions, which is focused on giving access to gold valuation services to banks together with the preliminary assessment of gold’s value as a security. It also benefits from having a team of highly trained and experienced appraisers, who utilize modern methods and tools to determine the weight, purity, and market prices of any offered gold. It can be as a result of the rigorous method that is herein applied, to ensure that all the valuations completed and presented are accurate and credible hence contributing to the solute and credit worthiness of the banking institutions, which have entered into partnership with PhobosGold.

Sectoral Analysis

It can thus easily be argued that the gold loan sector remains among the most growth-oriented segments in the entire financial market of India. This rise is due to several reasons include; It is more culturally relevant in India where apart from being metal, it is considered a precious and secure commodity. In addition, gold falls under the highly liquid securities to enable the buyer or selling in the market directly making it preferred by borrowers and lenders. Effectively, due to increased adequacy of gold loans, there is a higher demand for gold appraisal services – what PhobosGold Technologies does.

It is necessary to mention that PhobosGold operates in the significantly competitive environment where capability to perform estimations and properly is the key aspect. With regard to other companies, the company can reverse the challenges associated with it by adopting creative approaches, on the policy of appraisal work; as well as using innovative technological solutions. Some of the common issues which are relevant to auto appraisal industry include: deficiencies in the appraisal; and appraisal frauds The challenges that PhobosGold has had to encounter include the following: Despite facing these challenges, PhobosGold has been able to address the problems affecting auto appraisal through enhancing his appraisal prowess and buying better apparatus. Due to this commitment it is possible to justify that the companiy will continue to act as a reliable and credible market member for banks, and financierial houses for India.

Benchmarking and Market Analysis

In order to achieve this and also to avoid cases where there is a technical error in the services that the firm offers, the firm sets its services to suit the market. This is a method of assessing the optimal or ideal pattern of operation in the organization’s field, competitor results, and other factors relating to the company. It also benefits the company PhobosGold as it provides the means for steadiness and continuous improvement of the services by responding to emerging issues and addressing competitors.

Converting the decision-making advertising capacity in terms of comprehending the signals from the market, PhobosGold is very sensitive to the factors that drive the price of Gold up. These factors include:

1. Inflation Rates: This, in a nutshell, is why gold is normally associated with being in a position to hedge against inflation. Therefore, if inflation rates on domestic product is raised, the value of currency is anticipated to drop, and investors begin to purchase the metal which ultimately lead to the rise in price of gold.

2. Currency Exchange Rates: The other aspect of vulnerability in supply shocks is changes in the exchange rate especially the Rupee rates as compared to other currencies particularly the US Dollar that affect the price of gold. In India, most of the products that are imported are priced in Dollars; that is, higher Rupee price, translates to expensive gold.

3. Geopolitical Events: It should also be noted that, with the help of these fluctuations, during political unrests, conflict and / or economic crises there is a rise in demand for gold and therefore the prices rises or decline correspondingly.

4. Global Supply and Demand: In general, the supply of gold within the worldwide market, as well as the consumers’ demand of gold, impacts the price of gold. Some of these are mining production, holding by central Banks, and Jewelry etc demand among others.

Thus, under these dynamics while working, PhobosGold pushes a goal of presenting the appropriate knowledge and valuable appraisal services to help banks make correct funding decisions. According to this element, it elevates the value it offers to financial institutions since the company can predict the gold price trends based on these factors for free .

Weekly Reports Summary

In my workplace, in order to cover the required number of hours and demonstrate my work as an intern, I collected weekly filing records. Below is a summary of the key activities and learnings from my weekly reports:

The following is a brief of the activities and the lessons that were grasped from the weekly reports:

1. Preparation and Mailing of Authorization Letters: Similarly one of the activities I meaningfully engaged in was in writing and posting of authorization letters to several banks. These letters were highly significant in putting into motion the procedure for the appraisal and to ensure that every decision made adheres to the available laws and regulations. That is why, I gained knowledge on how to transmit the information in a correct manner and definitely adhere to some of the procedures in the organization.

2. Assistance in Reappraisal Process: I was also engaged in reappraisal obligations especially when working with the North Operations Manager. This entailed gathering of appraisal data and authorisations, drafting of authorisations letters, obtaining the completion certificates, and assembling the data therefrom as well as reviewing them accurately and comprehensively. This put me in a position of also receiving practical information about the type of methods used when assessing gold and also what happens inside the company.

3. Model Development and Validation: Apart from the appraisal service activities, I also participated in the construction of further models, which is to help predict the market price of gold. This involved using previous trends in the commercial domain to formulate probabilistic models that were then calibrated with previous economic data. This made it turn into a fun experience as it sharpened my analysis skills and paved way in enhancing my comprehension on the challenges that come across with the formulation of a realistic financial forecast.

4. Weekly Meetings and Presentations: I also had a weekly meeting to review on what team had done, what impedes progress and what steps should be taken to address the problem. I think it is important to mention that such meetings proved to have resulted in raising awareness of what cross-functional teamwork and identification with organisational goals implies. I also availed myself into presentation, making power point presentation to summarize after what I was to see and offer the way forward with analyzing some of the problems that I was to comprise of in my analysis.

Conclusion

As for the Internship with PhobosGold Technologies Pvt. Ltd. , I have to mention that it was quite insightful as the received experience became the fine learning in terms of the gold loan appraisal segment. In substituting the brief, I went with the right type of understanding regarding the more driving forces of gold prices, and to nomenclature must get the appraisal right whenever making justifications on the financial decisions made. The high level bearing emphasis on methods to value the gold as well as matter of absorbing accuracy and reliability, all these aspects are the ones that distinct a company in marketplace for which I am privileged to be a part of.

Acknowledgments

I would like to thank my Internship guide Mrs Anuradha S Pai, Asst. Professor – PES University, Bangalore and Mr. Harikrishna, Operations Manager – PhobosGold Pvt. Ltd for their guidance and assistance during the completion of my internship.