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Wahid’s Review – the petite appearance of financial sustainability risk analysis & organizations Sustainability Process

 Meaning of financial sustainability

Sustainability is the capacity to bear. In bionetwork, the word explains how biological systems remain diverse and productive over time. Long-lived and healthy wetlands and forests are examples of sustainable biological systems. For humans, sustainability is the potential for long-term maintenance of well being, which has environmental, economic, and social dimensions as social entrepreneurship is not defined by any one standard model for achieving financial sustainability, working toward financial sustainability is essential if an approach to a social problem caused by market failure is to be successful enough to have transformative potential

Purpose of financial sustainability

To provide the Founders’ Forum with a report on the funding committees initial review of institutions sustainability. In the center of the most vital questions opposite the non-governmental, not-for-profit (NGO) segments in countries. In many countries of the region, foreign donors are withdrawing or reducing their levels of sustain, thereby growing the urgency of the confront of long-term sectoral sustainability.


The Finance Sector is responsible for the development of the city’s financial policy and overall financial management. This includes the development of a financial framework for the community entities under ownership and control of Council. The sector is also responsible for ensuring financial balance between the municipal entities, core administration, compliance with relevant legislation, regulations, and governance practices and finally guarantee the implementation of the Municipal Finance Management Act.

The Finance Department supporters the Financial Sustainability Sector; however the Revenue and Customer Relations Management Department partners in the realization of the sector goals.

Objectives of financial sustainability

The type 5-year planned objectives are largely premised from the following goals of the Financial Sustainability Sector Plan:

• Authorized customers, enjoying the highest standards of customer care and awareness

• A city with stable and rising revenue brooks

• Increasing assortment of capital backing selections supported by brawny capital finance risk management

• continued quality in financial management

The Financial Sustainability Sector Plan is contained in this. The short description preceding the table reflects on the Department’s mandate, challenges and opportunities, and revisions. The table indicates five-year objectives, programmed and annual deliverables

Organizational Sustainability

Most efforts to improve sustainability in shape care delivery focus first on organizational sustainability. Organizational sustainability is the ability of the organization to secure and manage adequate resources to enable it to fulfill its mission successfully and consistently over time without extreme reliance on any single funding source. The objective is to maintain and build the capacity of an organization that is providing a beneficial service in a community. The benefits of improving the organizational sustainability of health care organizations can be far-reaching because, in most cases, such organizations play a vital role in delivering services that would otherwise be unavailable or reaching people that would otherwise be unnerved

Sustainability of Services

Sustainability of services means that the services provided, and/or the health impact made, continue long after the original or primary supporter funding is withdrawn. Efforts to advance the sustainability of services center on maintaining and improving the provision, quality, and impact of services rather than on building the ability of the organizations that provide those services. In other words, the spotlight is on ensuring the continuation of services, not the organizations that deliver them.

Sustainability risk analysis

The financial sustainability of institutions is significant in most project situations. In some projects, the institutions under reflection will be financial institutions proper (like – state-owned or business agriculture banks, industrial development banks, credit unions, non-government organization-run operations, housing banks).

Many factors pressure the sustainability of an organization, including the operating environment, national and local politics and policy, the activities of other organizations, the availability of skilled personnel, and more. Understanding the nature and impact of these influences on organization and programs is critical because it better prepares to expect and respond to changes in your outside surroundings in order to generate adequate resources to always meet the clients’ needs. However, it is also important to differentiate between those factors can control and those cannot.

There are varying degrees of sustainability, and therefore some organizations are more sustainable than others. The “starting point” is different for each organization: each has strengths that can be enhanced and weaknesses that can be improved upon. For example, some organizations may always require international donor funding, while others may be able to generate sufficient funds through cost recovery and local donations

In other situations they will be project performing agencies managing or providing technical or consumer services ( for example –  a  municipality, a commercial bus company, a state-owned plantation, a water supply and drainage authority). In all luggages, lack of financial sustainability will compromise the delivery of project effects to beneficiaries, either by causing liquidity to dry up or for service provision to be suspended and/ or curtailed. Risk analysis can be used to assist in conniving projects so that there is less likelihood of this occurring.

For financial institutions such as banks, a major concern of their appraisal and deliberation for contribution in an ADB project is their situation with respect to risk. Following standard international banking practice, and as summarized in the Financial strategy, a number of standard procedures for credit risk (borrower default), value at risk (VaR), foreign exchange risk, maturity risk, contagion risk, etc. can be derived. They usually involve some subjective guess being made by financial analysts/ teams about the probabilities of specific outcomes, typically based on a mixture of expert judgment and some forecast data. It is suggested that in many cases it would be possible to extend this analysis for at least some procedures of risk to be based on probability distributions.

This is particularly true for the VaR, which is supposedly based on forecast values (which could be accessible in probabilistic terms), and is supposed to measure “over a 10-day period, what is dollar amount of “V” such that there is only a 1% prospect that a portfolio will lose more than V institution, are presently calculated as individual ‘point’ or ‘average’ estimates, and could gainfully be turned into financial forecasts if based on distributions of variables.

When the workshop first opened, approximately all of the funding was provided by this NGO. Over time, the clinic developed methods to raise its own money — through cost recuperation, diversified fundraising efforts, and successful marketing schemes. The international NGO gave the clinic its final grant last year. Because of its efforts, the clinic is fully capable of generating funding for itself and is not exclusively reliant on external sources. The clinic worked towards organizational sustainability so that when donor funding ended it could demonstrate to other funding sources, either local or international, that it is capable of managing resources to meet its clients’ needs.

The Sustainability Process

It begins when an organization defines its vision, values, and mission. The subsequently step is an organizational evaluation, which helps the organization expand a strategy for successfully implementing its vision and mission. The people within the organization must advance the review with an open mind as to what it may disclose, or there is no point in undertaking the review. Many tools exist that provide a good basis for implementing a thorough organizational assessment, but it is important to adapt any tool to the exact nature and condition of the organization.

1 .The individuals should have knowledge with organizational measurements.

2. They should have no straight risk in the institution.

3. They should have sound decision, as attested by people who have worked with them in the past

After the evaluation, the organization must design a arrangement that enables it to successfully execute its strategy. The key processes of the organization must then be outlined.

Finally, the organization must constantly examine the driving forces (positive) and constraints (challenges) it faces in order to adapt to changes in the operating environment. This cycle is continuous and comprehensive, and all key staff members must participate. However, different components of the model are reviewed with varying frequency.


This article introduced the different fundamentals of the process of sustainability. That is “Financial sustainability risk analysis” – “The Sustainability Process” this article is  provides background knowledge, exercises, and tools to help you implement  of this” Financial sustainability risk analysis” – “The Sustainability Process”

Role of a financial manager in corporate dividend decision


            One of the most important finance functions is to intelligently allocate capital to long term assets. This activity is also known as capital budgeting. It is important to allocate capital in those long term assets so as to get maximum yield in future. Following are the two aspects of investment decision

  1. Evaluation of new investment in terms of profitability
  2. Comparison of cut off rate against new investment and prevailing investment.

Since the future is uncertain therefore there are difficulties in calculation of expected return. Along with uncertainty comes the risk factor which has to be taken into consideration. This risk factor plays a very significant role in calculating the expected return of the prospective investment. Therefore while considering investment proposal it is important to take into consideration both expected return and the risk involved.

Investment decision not only involves allocating capital to long term assets but also involves decisions of using funds which are obtained by selling those assets which become less profitable and less productive. It wise decisions to decompose depreciated assets which are not adding value and utilize those funds in securing other beneficial assets. An opportunity cost of capital needs to be calculating while dissolving such assets. The correct cut off rate is calculated by using this opportunity cost of the required rate of return (RRR)

Financial Decision

Financial decision is yet another important function which a financial manger must perform. It is important to make wise decisions about when, where and how should a business acquire funds. Funds can be acquired through many ways and channels. Broadly speaking a correct ratio of an equity and debt has to be maintained. This mix of equity capital and debt is known as a firm’s capital structure.

A firm tends to benefit most when the market value of a company’s share maximizes this not only is a sign of growth for the firm but also maximizes shareholders wealth. On the other hand the use of debt affects the risk and return of a shareholder. It is more risky though it may increase the return on equity funds.

A sound financial structure is said to be one which aims at maximizing shareholders return with minimum risk. In such a scenario the market value of the firm will maximize and hence an optimum capital structure would be achieved. Other than equity and debt there are several other tools which are used in deciding a firm capital structure.

Dividend Decision

Earning profit or a positive return is a common aim of all the businesses. But the key function a financial manger performs in case of profitability is to decide whether to distribute all the profits to the shareholder or retain all the profits or distribute part of the profits to the shareholder and retain the other half in the business.

It’s the financial manager’s responsibility to decide a optimum dividend policy which maximizes the market value of the firm. Hence an optimum dividend payout ratio is calculated. It is a common practice to pay regular dividends in case of profitability Another way is to issue bonus shares to existing shareholders.

Liquidity Decision

It is very important to maintain a liquidity position of a firm to avoid insolvency. Firm’s profitability, liquidity and risk all are associated with the investment in current assets. In order to maintain a tradeoff between profitability and liquidity it is important to invest sufficient funds in current assets. But since current assets do not earn anything for business therefore a proper calculation must be done before investing in current assets.

Current assets should properly be valued and disposed of from time to time once they become non profitable. Currents assets must be used in times of liquidity problems and times of insolvency

Structure of Publicly Traded Companies

In a publicly traded company, management and the board of directors are kept separate. This provides checks and balances to ensure that shareholders’ and managers’ interests are both represented in the company’s decision making processes. The shareholders elect the board of directors, which hires managers to handle the company’s daily operations. The financial manager has the authority to set the company’s policies regarding debt and equity financing. Shareholders may have different voting and dividendrights depending on the class of stock they own.

Dividend Policy Guidelines

Dividends may be paid quarterly, semiannually or annually, depending on the company’s policy. Changes in dividend rate or frequency are typically announced annually. Sudden changes with short notice can negatively affect investor confidence. Shareholders must own stock at the close of trading on a specified date to be eligible for a dividend payout. Payments are usually made one month or more after the dividend cutoff date.

Uses of Dividend Policy

A company can use dividend payments to reduce cash reserves, reward shareholders and attract investors to bring in more capital. The financial manager can increase thedividend rate when the company is growing and decrease the rate when it is struggling. However, decreases should be used sparingly because they can scare off new investors. Complete termination of dividend payments is often a sign of a company about to go bankrupt.

Factors for the Financial Manager to Consider

The best dividend policy for a particular company depends on its financial stability and future goals — something financial managers should be well versed in. New companies that are growing rapidly typically need to preserve cash for expansion, so dividends may be low for the first few years. Stable companies operating in volatile industries may also choose to hold onto their cash so they can respond quickly to changes in market conditions. Older companies, or those in a saturated market, do not have as much room to expand, so their cash requirements are lower. These companies can redistribute some of their earnings to investors without losing ground in the market.

Financial activities of a firm is one of the most important and complex activities of a firm. Therefore in order to take care of these activities a financial manager performs all the requisite financial activities.

A financial manger is a person who takes care of all the important financial functions of an organization. The person in charge should maintain a far sightedness in order to ensure that the funds are utilized in the most efficient manner. His actions directly affect the Profitability, growth and goodwill of the firm.

Following are the main functions of a financial manager in corporate dividenddecision:

1.      Raising of Funds

In order to meet the obligation of the business it is important to have enough cash and liquidity. A firm can raise funds by the way of equity and debt. It is the responsibility of afinancial manager to decide the ratio between debt and equity. It is important to maintain a good balance between equity and debt.

2.      Allocation of Funds

Once the funds are raised through different channels the next important function is to allocate the funds. The funds should be allocated in such a manner that they are optimally used. In order to allocate funds in the best possible manner the following point must be considered

  • The size of the firm and its growth capability
  • Status of assets whether they are long term or short tem
  • Mode by which the funds are raised.

These financial decisions directly and indirectly influence other managerial activities. Hence formation of a good asset mix and proper allocation of funds is one of the most important activities

3.      Profit Planning

Profit earning is one of the prime functions of any business organization. Profit earning is important for survival and sustenance of any organization. Profit planning refers to proper usage of the profit generated by the firm. Profit arises due to many factors such as pricing, industry competition, state of the economy, mechanism of demand and supply, cost and output. A healthy mix of variable and fixed factors of production can lead to an increase in the profitability of the firm. Fixed costs are incurred by the use of fixed factors of production such as land and machinery. In order to maintain a tandem it is important to continuously value the depreciation cost of fixed cost of production. An opportunity cost must be calculated in order to replace those factors of production which has gone thrown wear and tear. If this is not noted then these fixed cost can cause huge fluctuations in profit.

4.      Understanding Capital Markets

Shares of a company are traded on stock exchange and there is a continuous sale and purchase of securities. Hence a clear understanding of capital market is an important function of a financial manager. When securities are traded on stock market there involves a huge amount of risk involved. Therefore a financial manger understands and calculates the risk involved in this trading of shares and debentures. Its on the discretion of a financial manager as to how distribute the profits. Many investors do not like the firm to distribute the profits amongst share holders as dividend instead invest in the business itself to enhance growth. The practices of a financial manager directly impact the operation in capital market

       5. Financial Oversight

Corporate financial managers serve as the highest authority in all finance-related departments, including accounting, accounts payable, accounts receivable and the internal audit department. Top departmental managers in these areas often report directly to the financial manager, who must be thoroughly knowledgeable about the policies, procedures, current issues and staff members of these departments. Top-level financial managers may be responsible for candidate selection and promotion for top departmental management positions as well.

       6. Corporate Reporting

According to the Bureau of Labor Statistics, financial managers are responsible for the creation and submission of quarterly and annual reports to the Securities and Exchange Commission (SEC), as well as the release of quarterly earnings figures. They are often tasked with drafting extensive explanations of financial statement line items in the appendixes of an annual report and are regularly subjected to serious legal scrutiny regarding the honesty and accuracy of company filings and news releases.

      7. Strategic Guidance

Crafting and communicating long-term financial strategies in the best interest of the organization is the domain of the financial manager. Such events as mergers and acquisitions, stock offerings and dividend declarations can have enormous impact on the success of a company. Corporate debt structure, accounting practices and tax management are included in a financial managers’ strategic responsibilities.

    8.Corporate Investing

Corporate investment strategies such as the management of employee retirement accounts, the purchase or sale of capital equipment and real estate and the maintenance of interest and capital gains income is ultimately the responsibility of the financial managers, although Chief Executive Officers (CEO) and board members are likely to have a good deal of input on these matters as well.

       9.Liaison Role

As the individual responsible for having a comprehensive understanding of a company’s finances, financial managers must be available to speak with reporters, government authorities, stockholders, employees and other company shareholders to address any questions or concerns they may have regarding the company’s financial position, policies or future expectations. This responsibility can be tricky, as the line between the fiduciary duty to protect company information and the legal responsibility to provide financial transparency can be thin and difficult to discern at times.

Dividend DecisionOverview of Dividend Decision

Dividend decision refers to the policy that the management formulates in regard to earnings for distribution as dividends among shareholders. Dividend decision determines the division of earnings between payments to shareholders and retained earnings .
The Dividend Decision, in Corporate finance, is a decision made by the directors of a company about the amount and timing of any cash payments made to the company’s stockholders. The Dividend Decision is an important part of the present day corporate world.

The Dividend decision is an important one for the firm as it may influence its capital structure and stock price. In addition, the Dividend decision may determine the amount of taxation that stockholders pay.

Factors influencing Dividend Decisions

There are certain issues that are taken into account by the directors while making the dividend decisions:

  • Free Cash Flow
  • Signaling of Information
  • Clients of Dividends

Free Cash Flow Theory

The free cash flow theory is one of the prime factors of consideration when a dividend decision is taken. As per this theory the companies provide the shareholders with the money that is left after investing in all the projects that have a positive net present value.
Signaling of Information

It has been observed that the increase of the worth of stocks in the share market is directly proportional to the dividend information that is available in the market about the company. Whenever a company announces that it would provide more dividends to its shareholders, the price of the shares increases.

Clients of Dividends

While taking dividend decisions the directors have to be aware of the needs of the various types of shareholders as a particular type of distribution of shares may not be suitable for a certain group of shareholders.

It has been seen that the companies have been making decent profits and also reduced their expenditure by providing dividends to only a particular group of shareholders.

For more information about dividend decision please refer to the following links:

Following are the different forms of Dividend :

Scrip Dividend– An unusual type of dividend involving the distribution of promissory notes that calls for some type of payment at a future date.

Bond Dividend– A type of liability dividend paid in the dividend payer’s bonds.

Property Dividend– A stockholder dividend paid in a form other than cash, scrip, or the firm’s own stock.

Cash Dividend– A dividend paid in cash to a company’s shareholders , normally out of the its current earnings or accumulated profits Debenture Dividend.

Optional Dividend– Dividend which the shareholder can choose to take as either cash or stock.

Significance of dividend decision

  • The firm has to balance between the growth of the company and the distribution to the shareholders.
  • It has a critical influence on the value of the firm.
  • It has to also to strike a balance between the long term financing decision( company distributing dividend in the absence of any investment opportunity) and the wealth maximization.
  • The market price gets affected if dividends paid are less.
    Retained earnings helps the firm to concentrate on the growth, expansion and modernization of the firm.
  • To sum up, it to a large extent affects the financial structure, flow of funds, corporate liquidity, stock prices, and growth of the company and investor’s satisfaction.

Factors influencing the dividend decision

  • Liquidity of funds.
  • Stability of earnings.
  • Financing policy of the firm.
  • Dividend policy of competitive firms.
  • Past dividend rates.
  • Debt obligation.
  • Ability to borrow.
  • Growth needs of the company.
  • Profit rates.
  • Legal requirements.
  • Policy of control.
  • Corporate taxation policy.
  • Tax position of shareholders.
  • Effect of trade policy.
  • Attitude of the investor group.
  • More Information Related to Corporate Finance.
  • Business Valuation Hybrid Financing.
  • Capital Budgeting Investment Decision.
  • Corporate Cash Flow Corporate Leasing.
  • Corporate Financing Concepts Corporate Finance Management.
  • Risk Analysis Corporate Finance Accounting.
  • Corporate Finance Advisory Corporate Finance Consulting.
  • Corporate Finance Statements Corporate Tax.
  • Corporate Finance journal Online Corporate Financing

Low Investment Franchise Business in India

 Everyone wants to own his/her own business, and starting a new venture requires a huge amount of investment. However, this has led to the emergence of low investment franchise opportunities producing high returns on investment. Thus, low cost franchise opportunities are a big advantage for entrepreneurs having limited capital for investment.

Various franchise sectors which demand Low Investments Franchise and yield high profits are:

Travel Service Sector: In the past few years travel industry has emerged successfully. Nowadays, people prefer to hire travel agents or portals for planning their tours. Considering this, one can easily say that travel sector has a brighter future ahead. Likewise, entrepreneurs who like travelling and are efficient in stays and accommodations in hotel have an advantage choosing this segment over the others. To name a few players in this sector are;, Travel Port, Travel E-Point etc.

Courier Service Sector: Franchising in courier sector has grown significantly with increase in the number of players taking the franchise route for reaching out a wider audience. Courier service companies’ role is to deliver important mails and parcels to any part in the country; therefore, franchising is the best mode for guaranteed delivery of the items. To give a few examples offering low cost courier franchise opportunity includes; Blue Dart Express, DTDC Courier, Overnite Express Limited and lots more.

Florist Services Sector: Flowers are a great way to express your feelings to the one you love. Whether there is a Birthday Party, Wedding Ceremony or for instance Valentine’s Day, people prefer to get a nice bouquet made rather than buying a gift. Thus, florist service franchise sector proves to be an advantage for the entrepreneur. Well known brand names are; Ferns n Petals, Florista, Fiore and many more.

Financial Service Sector: Financial services refer to services provided by the financial service companies. The finance service companies comprises of a broad range of organizations that deal with money management. A few of these organizations include; banks, insurance companies, stock brokerages, investment funds etc.  Companies like Motilal Oswal Securities Ltd, Capital Services Ltd, Wellindia Group, and CFS Financial Services Pvt. Ltd are some of the companies offering low cost investment benefit to the potential investors.

Abacus Learning Sector: Abacus education is becoming very popular with parents getting keener on giving the best to their kids. Abacus is one of the first calculating devices used for doing mathematical calculations, without any usage of pen and paper. It allows children to learn the most accurate and fast calculations in an easy manner. Genius Abacus and Vedic Maths, SIP Academy  etc. are few players in the abacus learning franchise sector.

To sum up all; here’s a chance for the potential investors to start their own business with choosing one of the above low cost franchise business opportunity. Pick the one that is within your budget and can yield in best returns.

Difficult Church Loan and Business Finance Solutions

 Church loans often suffer from several problems, and as a result specialized business finance strategies are required. Typical church financing will involve multiple difficulties.

Church loans are probably the most difficult form of commercial financing to successfully close. Churches are an integral part of local communities, so it is necessary to improve church financing solutions. In almost all cases financing will require a very specialized commercial real estate loan that is typically not widely available.

Churches are not typical commercial enterprises but they do have substantial business financing requirements. This article will offer an overview of four key church loan financing difficulties and a listing of six practical church financing strategies.

Four Major Church Financing and Business Finance Difficulties –

Before addressing possible solutions for the most common church loan needs, it is important to discuss the typical barriers to obtaining appropriate financing. Historically church financing has been difficult to arrange for several reasons:

(1) Church Loan Obstacle Number One: Church properties are unique. Lenders are therefore concerned that if commercial loan payments are not made in a timely manner and the lender is required to assume ownership of the property, it will be very difficult to find a new owner because of the unique property features.

(2) Church Financing Difficulty Number Two: Commercial lenders usually require individual guarantors for church financing, and this is inappropriate for a church loan. The financial structure of churches simply does not lend itself to a traditional lender/guarantor approach. Many commercial lenders are not comfortable with the potential lack of individual guarantors because of the difficulty of reselling the church property if negative financial circumstances occur in the future.

It is unfortunately very common for church financing to have been secured only after church members have authorized an individual guarantee for church financing. The need for individual guarantors acts as a serious barrier first because church members might be unwilling to do so and second because there might not be individuals who have enough financial resources to provide an individual guarantee for larger church financing needs.

(3) Church Financing Difficulty Number Three: When church financing is obtained, there are frequently unacceptable business finance terms such as very small loans, low loan-to-value (LTV) of 50% to 60%, short-term loans and high interest rates. These onerous terms are tantamount to the church loan being declined, and if the terms are accepted, the church is likely to experience continuing financial difficulties due to unrealistic commercial mortgagerequirements.

(4) Church Financing Difficulty Number Four: Construction, renovation and land acquisition are even more difficult for churches to finance than purchases or refinancing. As a result, needed repairs are often postponed indefinitely and new churches frequently take many years to become a reality.

Six Practical Church Loan and Commercial Mortgage Solutions –

There are common-sense financing solutions for the church loan issues described above. Here is an overview of church financing that is now available from some non-traditional lenders:

(1) Church Loan Financing Approach Number One: Non-Recourse Loans (instead of guarantors). As noted above, the willingness to forego traditional guarantors does require a non-traditional lender. With this church financing approach, church lending will not depend on individual guarantors.

(2) Church Loan Solution Number Two: Long-term business loans. Church financing will be much more successful when it is long-term instead of short-term (payments will be reduced dramatically).

(3) Church Loan Solution Number Three: Low interest rates (usually a maximum of prime plus 1-2%). In reality many churches have been taken advantage of and charged excessive interest rates because lenders perceived that they did not have any other realistic options.

With payments limited to prime plus 1-2% or less, church financing payments will be noticeably reduced. In combination with longer-term loans, the overall payment reduction will make a significant contribution to church cash flow improvements.

(4) Church Loan Solution Number Four: Church loan financing minimum of $500,000. This allows churches to complete most financing in one step rather than piecemeal over a period of years.

(5) Church Loan Solution Number Five: Higher LTV (75%-90% is possible). This results in a more workable amount of 10% to 25% (rather than 40% to 50% with traditional church financing) for the down payment or non-financed portion in refinancing.

(6) Church Loan Solution Number Six: Church financing can now include new construction, renovation, land acquisition, purchase and refinancing. Due to flexible church loan financing, it is not necessary for any of these important church loan activities to be postponed.

Collectively the six church financing solutions described above should benefit a large number of churches by allowing refinancing with much better financial terms and by facilitating the construction of new churches on an accelerated timetable. The six church loan financing approaches should result in financial covenants that will contribute to the long-term financial profile of prudent churches which adhere to the church financing approaches suggested.

Regardless of the practical business finance and commercial mortgage strategies that have been described above, it is appropriate to emphasize that arranging appropriate church financing will almost always be difficult. Due to the specialized nature of a church loan, unavoidable complications with the commercial real estate financing should be anticipated. As a result, prudent church borrowers should attempt to acquire a better understanding of these complex business loan issues.

Importance оf Financial Services

 Financial services аге аνаіӏаЬӏе оnсе tһе individuals аге gоіng tо υѕе Ьу individuals tһаt аге оftеn ргоνіԁеԁ Ьу banks аnԁ ѕоmе financial institutions. Tһеѕе services ѕһоυӏԁ mаkе banking mоге fitting tо tһе banks’ clients wһо аге һаνіng nо extra time tо visit tһе banks. Nоt оnӏу ԁо tһе personal accounts оf tһе clients gеt ѕоmе benefit һеге Ьυt аӏѕо business аnԁ corporation owners. Business owners’ everyday banking іѕ nоt оnӏу mаԁе easier, іt іѕ аӏѕо mаԁе cost effective, fast, аnԁ simple. Tһе business owners wіӏӏ һаνе tһе time tо concentrate mоге wіtһ tһеіг transactions аnԁ businesses wіtһ а lot оf time tо spare. Businesses ѕһоυӏԁ Ье attended 100% оf tһе time аnԁ tһіѕ ѕһоυӏԁ benefit tһеm greatly еѕресіаӏӏу wіtһ regard tо personal finance.

Refined services fог cash management аnԁ simple bookkeeping аге аӏѕо ргоνіԁеԁ аѕіԁе fгоm tһе financial services wһісһ banks υѕυаӏӏу provide tо business owners. Tһе banks offer business owners wіtһ management tools wһісһ assist tһеm tо increase аn efficient cash flow. Sоmе оtһег services offered Ьу banks аге cash management, payment processing, savings accounts, аnԁ checking accounts аmоng others. Tһеѕе tһіngѕ аге intended tо һеӏр tһе business owners access tһеіг funds easily wһіӏе earning interest. In addition, tһеу саn аӏwауѕ manage tһеіг money аnԁ ӏеt tһеm grow tһеге wһісһ іѕ а vital factor іn operating а business.

Financial institutions ѕυсһ аѕ banks һаνе gіνеn ѕоmе financial services tһаt саn Ье υѕеԁ Ьу tһеіг corporate аnԁ institutional clients. Included іn tһеѕе services іѕ tһе asset management wһісһ helps tһе clients іn keeping track аnԁ supervising tһеіг assets аѕ wеӏӏ аѕ tһе performances. Fог tһе corporate clients wһоѕе benefits аnԁ salaries аге managed Ьу tһе banks, retirement services аnԁ benefits аге primarily provided. Tһеѕе аге tһе оtһег services Ьеіng offered: trading аnԁ sales, trust services, risk management, domestic banking fог export needs, financing аnԁ lending, capital markets, аnԁ deposit services аnԁ cash managements.

Tһе corporate аnԁ business accounts security һаѕ tһе ѕаmе level аѕ tһе security іn personal bank accounts. Reputable banks ѕее tо іt tһаt tһе accounts оf tһеіг clients аге secured. Passwords аnԁ access codes аге gіνеn tо tһе clients аѕіԁе fгоm tһе encryption technology tһеу һаνе tо ensure tһаt аӏӏ transactions mаԁе аге confidential. Tһеѕе financial services аге ргоνіԁеԁ tо avoid ог prevent аnу account hacking. Comparing аӏӏ companies tһаt offer tһеѕе services ѕһоυӏԁ һеӏр tһеm іn finding tһе Ьеѕt financial service company. Reputable service companies wіӏӏ offer great services tо іtѕ clients ѕо tһеу mυѕt ensure tһаt tһеу wіӏӏ provide tһе offers.

Banks exist tо һеӏр tһеіг clients maintain tһеіг accounts еѕресіаӏӏу tһе personal ones. Businesses аnԁ corporations tһаt wаnt νегу high banking services ѕһоυӏԁ Ье аЬӏе tо enjoy tһіѕ security аnԁ convenience. Onе оf tһе financial services tһаt business owners wіӏӏ surely enjoy Ьесаυѕе оf іtѕ secured аnԁ convenience іѕ tһе online banking. Tһеу саn check tһе balance wһіӏе ԁоіng dome activities іn tһеіг accounts wіtһ ѕυсһ service. Wіtһ ѕυсһ services, tһеу wіӏӏ Ье аЬӏе tо ѕее tһе movement оf tһеіг money, аnԁ tһеу саn аӏѕо pay tһеіг bills. Tһе Ьеѕt financial service company mυѕt Ье аЬӏе tо provide ѕоmе retirement plans аnԁ online brokerages. Tһеѕе ѕһоυӏԁ provide tһеm information соnсегnіng tһе financial market аѕ wеӏӏ аѕ tһе stock market.

A Guide to Financial Management Course in India

 There is all the information that you might require regarding financial management programmes offered by leading management institutes in India. There is great scope for you if you have made up your mind to pursue a career in financial management. Several top UGC recognized as well as AICTE recognized institutes in India that offer a master’s degree in financial management. The very first step towards earning a seat in any of the top business schools is appearing for the common management entrance exams such as XAT, CAT or MAT.

Financial Management Course in India: Course Description

The global economy is progressing in leaps and bounds. The curriculum of financial management course in India is designed with a long term perspective of turning simple graduates from any discipline such as mathematics, sciences, arts, social sciences, law or humanity etc. into employable individuals. Main emphasis is laid on developing the thought process and financial abilities of students so that they can gain a thorough understanding of the financial policy decisions on the global arena.

The specific skill that is nurtured in financial management students is an understanding of the use of financial statements in decision making process. Professionals must possess knowledge regarding the time value of money along with knowledge of the nature of various financial markets. Financial management program curriculum trains individuals on the subjects of short and long term financing, multinational financial management, capital markets, cost of capital, short – term asset management and valuation of stocks and bonds etc. Apart from this you must also be well versed in use of spreadsheet or Database management softwares.

Financial management syllabus

Most of the major industries in India that offer a post graduate degree in financial management incorporate subjects such as corporate finance, monetary economics and global economy, business economics, advanced corporate finance, investment management, corporate valuation, real estate investment, international banking and fixed income securities etc. There are more than enough reasons why students all across India prefer financial management as their post graduate degree. High salaries and a rapid growth opportunity in one’s workplace are just the tip of the iceberg that makes earning a financial management degree one of the best alternatives for entrepreneurs.

It is recommended that after pursuing your degree you join any internship program at some finance related organization such as investment firms and banks etc. an internship programwill make you ready to face the actual market scenario. You might enter the industry as a financial sales agent or as a financial analyst for leading firms. Studying the global financial market and searching on the tax laws also fall under the premise of a financial manager.

5 Benefits of personal financial planning

 Personal financial planning involves aspects such as budgeting, planning your savings, investing, getting insured and looking after the smooth functioning of your overall financial health. It is very important for you to know how to effectively handle your finances as the benefits of personal finance planning are many.

Some of the benefits of personal finance planning are as follows.

1. Profit from investment plans : With the right financial planning you can identify those investment plans that will prove profitable for you. You will be able to prioritize, where and when you should invest first.

2. Evaluation of your financial condition : Budgeting is a very important aspect of personal financial planning. You may not like the idea of a budget but it helps you manage your finance. With a proper budget, you can evaluate your financial situation. This helps you assess how much you are spending currently and whether or not you can afford it.

3. Reduces marital stress : Money problems could lead to divorce. This is because when you are in debt you tend to be much stressed and any minor problem can become very severe. Thus, handling your finances responsibly can not only help save money but also your relationship with your spouse. Debt may also affect your relationship with others, so plan your finances well.

4. Helps you build a better future : A well plannedfinancial life helps build a better future. Financial planning involves saving for the future. If you plan well, then you will save a part of your income every month, for future use. Also your financial planning should give some importance to your retirement plan. By taking up a retirement plan you insure that in future when you no longer have an income, you will be financially secured.

5. Reducing impact of financial crisis : In case an emergency arises in your family, you can take care of it without waiting for someone else to help you out. If you have to borrow every time there is a financial need, then you may find yourself suffering from financial crisis in times of family emergencies. A family emergency could be anything from a family member falling ill or unexpected medical bills. However, good financial planning helps you come out of these situations with ease, as you will have savings to help you in your crisis periods.

Corporate Finance Services is About Trading Help

 Individuals who own their own firm or a small company often face situation when their payments get delayed due to their customers. Well, this situation can differ from thirty to sixty days and can create different types of problems. This brings major blockage in the growth of the company and lowers down the management process. Many small company owners have little amount accumulated in their invoices, but have less resource to implement in their bank account. This low cash situation can pause order received filling from emerging customers. Right at this point, you need the support of corporate finance Services Company that knows how to hype your company’s standard to higher level. If you desire to boost your company’s trade finance systems in the most ethical manner, financial services companies can assist you in every step.

Finance service companies help your small business to get connected with the outstanding invoices. A bill is nothing more than a promise to his client to be paid at a later time. These financial services companies through the purchase of bills of you and give you cash. You can use the money to invest in growing your business and take advantage of common functions, while financial firms and companies can play the waiting game. commodity trading companies also offer huge benefits to businesses to get qualify in their business. The commodity trading companies offer profit to business and makes sure to evade risk. Consequently, they also verify whether you will get profit or loss. is one of the leadingcorporate finance services that supports your business growth and brings good amount of profits.

With startups bumping into investment in trains, cafes and on sidewalks, early-stage investing has become vastly different from what it was a few years ago. The emergence of new sector focused networks, micro venture capital firms, online deal making platforms, and more entrepreneurs turned investors is forcing traditional networks of the lane, but the flag bearers of early stage investing are finally beginning to buck up. Entrepreneurs have become selective about raising capital from networks and are cherry picking individual who can value to their venture. With trade finance systems, you will get softness which means funds and companies are coming back the reality. The binary situation is coming up every fast, but there is no bubble in the seed stages. There is genuine intelligent company trading companies that help to make you aware of the right investment and approaches to deal with it.

Managing Business Cash Flow With Services of Pegasus Opera Supplier London

 Your business ventures are obviously well planned to follow a precise method and bring forth expected results. However, you need to check compare and assess the expenses of each business process before agreeing to execute it. Handling financial calculations for an array of deals can be quite challenging and somewhat confusing for inexperienced individuals. In such cases, fortunately, Pegasus Opera Supplier London can deliver services that can simplify all your finance managing processes without altering you existing business processes and methods. Let us discuss about how these services an help you out.

Managing Cash Flow Effectively

Managing finances is one of the primary objective for success through business. Without having a clear idea how to manage or track your expenses, you would not be able to generate revenue. But, with the help of Pegasus Opera, you an track your financial flow, and measure exactly how much revenue is being added to your company and how much is being deducted to pay the bills or to serve as an investment. This insight can help you to take profitable actions. Such facilities can help your company to grow beyond expectation and assure you whether to spearhead various endeavours or not. What this application offers is a realistic and fact filled revenue forecast which is great for intelligent business decision making.

Features and tools

This application comes with a whole host of features and meticulously designed tools for precise financial assessment of business based operations. Its conversion tools can help you to simplify the business processes and streamline resources to get the job done. It has a built-in import facility which assures a quick and glitch free data transfer. With Pegasus Opera application, users can check their finance, and other different divisions of their business without extensive infrastructure modification or heavy application implementation. Handling HR and payroll, CRM, supply chain, and document management is easy with the help of Pegasus software.

Low Maintenance and Usage Benefits

This applications is designed to cover huge financial requirement of companies. From managing business processes to tracking expenses, your finance management necessities would not any other support while Pegasus Opera is with you. Although, this application can deliver multitude of solutions, it does not come with an expensive price tag. Its design makes it easy to use and easy to update without frequent maintenance requirements. Its ‘easy to customize design’ helps business owners to maintain their existing company structure and processes while getting better results than ever.

These are few of the many benefits or features that make Pegasus Opera exceptionally important and capable of handling huge financial requirements with ease.

Property Investment Advice in Melbourne

 Property Investment is a big finance related task and needs to be worked out in the most meticulous and planned way. Property investment usually involves investment into properties of varied kinds depending on the future planning. The idea of property investment is a great one if you are willing to invest the extra finance to get great returns. There are many essential requirements and assessments which need to be understood before investing in properties. You can always look up for a property investment advisors who can help you out in the processing and management of your finances.

Various points to consider when investing in properties

There are many points that one should ponder into before investing in properties which include

1.Planning your finances 

2.Choosing the property which is right for you

3.Look up for an agency or a property manager

4.Analyze and understand the risk involved

5.Make your properties attractive to enhance the attention from the people who want to rent

6.Keep a continuous track of your finances and risks involved

There are many agencies and managers who provide you with all the advice you need for property investment in Melbourne or in any other areas.

Property investment advice in Melbourne

People in Melbourne are known for opting in buying property as the best method of investment. This is one of the ways of getting great returns for your investment after renting or re-sale. Hiring the correct people for advising you need to hire advisors to give you information on the pros and cons of property investment. These advisors help you in targeting the right property at the right place and on the right time. Property investment advisors not only help you in management of your finances but also provide you with advises on the future management of the property and finances.

The property advisors help you in budgeting and locating the best properties which can lead to the best returns of your investment. In case of re-sale, they also assist the customers in advising and spotting people who are interested in buying properties. The property advisors assist the customers throughout the process of property investment which starts fromfinance management, locating the best properties, renting and re-sale advising and much more.

Hiring reputed property investment advisors is the best way to go ahead and stay relaxed when it comes to various decisions and risk assessment advice related to property investment. They help you throughout the process and also in the later parts of financial management. The advices from the experts are based on the experience and research in the field. You can be completely relaxed and confident with your investment decisions. So if you are planning to invest in properties, the best way is to look up for property investment advisors to make your journey smooth and less bumpy. You will be well aware of all the risks involved, tips to manage your finances and enjoy all the benefits associated with property investment.

Know About Trade Finance and Corporate Finance Services

 Are you aware of trade finance services and what is the prime thing that includes in corporate finance services? If no, then this article will offer enough idea about trade finance and corporate finance services. Trade finance services incorporate exercises such as loaning, issuing letters of credit, calculating, fare credit and protection. Organizations included with exchange fund incorporate shippers and exporters, banks and agents, back up plans and fare acknowledge offices, and additionally other administration suppliers. It is true that the trade finance is of key significance to the global economy with the World Trade Organization that accesses around ninety percent of worldwide exchange on the stratagem for financing. Trade exchange has been in presence for a considerable length of time, exchange account created as a method for encouraging it further. 

The broad utilization of exchange account is one of the components that have added to the huge development of global exchange late decades. In its most straightforward method, trade structure works by accommodating the different needs of an exporter and merchant. While an exporter would want to be paid forthright by the shipper for a fare shipment, the danger to the merchant is that the exporter may essentially stash the installment and deny shipment. On the other hand, if the exporter stretches out credit to the merchant, the recent may decline to make installment or deferral it excessively. The most well-known answer for this issue is through a letter of credit, which is opened in the exporter’s name by the shipper through a bank in his or her nation of origin. 

The letter of credit basically ensures installment to the exporter by the bank issuing the letter of endless supply of narrative verification that the merchandise has been sent. In spite of the fact that this is a to some degree bulky procedure, the letter of credit framework is a standout amongst the most famous exchange money components. Now, let’s understand about corporate finance services. trade Finance services practice influences on our comprehension of corporate procedure, capital markets, and global wards and administrative necessities, to open the potential for development in organizations. Well, corporate finance services include:

•    Transacting Advisory: Most developing organizations need to definitely consider a residential or cross-fringe exchange, for example, setting up abranch outside local market or securing an abroad organization. These exchanges are regularly mind boggling and require cautious thought. With multidisciplinary mastery crosswise over divisions and industry verticals, we help our customers in proactively underscoring so as to execute key business exchanges – the significant worth drivers, and discovering the real dangers and opportunities in the exchange. 

•    Valuations: Putting a cost on something or assessing its value is never clear. Today, performing valuations are getting more mind boggling with persistent changes in the administrative and business environment. Valuation administrations are required for different reasons, for example, obtaining, speculation, transfer, and buyout, merger, rebuilding, bookkeeping, statutory/lawful and so forth. 

•    Mergers and Acquisitions: This offers neighborhood and global organizations a far reaching scope of M&A administrations. With the developing economy and also expanded cross outskirt vicinity.

Financial Planning in Sydney Saves Your Present and Future

 At every phase of life one needs money, from the beginning of the life till the ending, but surely everybody don’t start earning and continues earning at all the steps of life and also are certain responsibilities, one needs to take care of at various levels of life. Economic planning is extremely important to pay such responsibilities and to pay upcoming financialrequirements. Financial Planning in Sydney is actually a process of guaranteeing the supply of money where and when it is needed and to optimize the return of financial savings.

financial planning in SydneyIn layman vocabulary monetary planning could be a budget or perhaps plan to save current and long run income for certain group obligations such as marriage, education as well as Medicine. This plan of action allocates long run income to several types of expenditures, for example rent or utilities, as well as reserves some earnings for short-term plus long-term savings. Financial planning in Sydney also has investment of current and future income in some ventures or property to build maximum dividends on the savings, couple of such ventures can be an investment in start up business plan, Investment in stock exchange and in real estate investment.

When we invest in funds plus associated lending options such as bonds we overlook the loss related to instant access to the cash. More specifically, while investing in an economic product usually there remain managing charges or processing costs. Again regarding withdrawing the quantity before the period of maturity a foreclosure fee is added. It’s always important to make sure that the return of the spent amount must be greater than what invested and this too after all types of deductions. Additionally, it has been observed most of the financial companies charge a specific amount as penalty if the fund is taken out. In turn the individual even gets a lesser amount than he/ she invested. This is indeed often a negative situation for the investor.

A skilled financial consultant helps by giving transparency regarding distinctive investment strategies or ideas. The data about minimal amount you need to maintain after investment or other account associated charges or fees needs to get resolved. These are plainly known when the expenditure is initiated with involvement of an appropriate financial consultant. A Sydney monetary planner can help when you invest from any nooks of Australia. In this particular e-era information trade or consultation is a subject of a couple of seconds with best usage of internet technologies.

So if you’re looking to employ a financial planner in that case what is preventing you? Perhaps that you question of the efficiency of financial consultant, you are thinking aboutfinancial planning Sydney. Inquire and ask as much as you can. Inquire from your buddies or referrals already getting services of a financial consultant, question them about the functionality of their financial consultant and sum they have gained by different investment procedures and policies. Inquire from financial planners you are thinking about hiring for your monetary planning approach, asking the length of time they’ve been in the industry along with what are their biggest successes, ask about how many clients, what their qualifications are, how they function, and so on.

Lucrative Career Options in MBA Finance for Beckoning Individuals

 An MBA (management in business administration) is considered as a lucrative career option since after perusing this degree, your value will automatically gets increased in the present market. It’s a kind of degree that prepares you for a managerial role in the selected field. 

MBA has a lot of areas such as finance, banking, export, human resource, sales and marketing, advertisement, etc. However, according to the recent reports, there has been a tremendous growth of business schools in India in the last few years. This growth in turn resulted in a large number of MBA graduates which brought saturation in the industry (supply was more than demand). As such there have been cases where an MBA has had to accept job offers that were sub par according to industry standards. In other words there was an urgent need for the students to specialize in a particular field rather than choosing a general MBA degree. 

The top MBA finance college in Delhi offers huge employment opportunities to those pursuing it. The programme facilitates a holistic learning where the capabilities of the learner is enhanced and matches as per the industry standards. This degree fits individuals in the positions that are badly needed by corporations in the current financial scenario. With the subsequent financial crisis that has been prevailing in the business world for the last two years, companies all over the world require managers who can take quick financial decisions n order to sustain in the present volatile market.

Finance constitutes a significant part of the operations of any firm. Considering career prospects, there are countless options at executive levels if you have a degree in finance. 

Corporate Finance:

To enter into this position, you need a MBA in finance. Corporate finance requires handling the funds of a company, planning mergers, acquisitions as well as planning future investments. Your role would be to supervise company’s revenues as well as to raise funds, and to manage cash and assets of the company. Individuals in this field should have strong analytical skills as well as ability to motivate people. 

In addition to this, there are opportunities such as investor relations officer, financial planner, risk management, credit manager, insurance adviser, real estate planner, money management, and investment banking.

Many MBA colleges in Delhi that will help you kick start your career in the management field. However, you need to choose the best MBA finance college in Delhi since there is a huge impact of the standard of your institution in your studies. Search for the top MBA finance colleges in Delhi by using internet.

How to Get a Small Business Loan with Bad Credit?

 If you want to secure a small business loan, keep the fact in mind that most lenders will want you to demonstrate your repayment ability. They will also ask you to provide necessary information such as credit history, equity investment, collateral and business management experience so that they can be assured of your ability to repay the funds.

If you are not able to provide such information or have bad credit, it goes without saying, you will not get the loan from traditional banks. Practically speaking, in this unstable economic condition, small businesses with bad credit have to face a number of difficulties in getting their applications approved by traditional banks. Thus, procuring working capital with such credit history seems near to impossible take for small business owners. This situation puts businesses into debt, harming their credibility in the market.

However, if you still want financial assistance in order to establish or expand your business, you should approach lenders willing to provide the funds regardless of your financial history.

Here is what an alternative lender can do for you.

Alternative lenders offers small business loans for owners seeking working capital for establishing a new franchise, refurbishing existing franchises, purchasing or leasing new equipment, upgrading to latest technology, to name a few.

They understand your situation and provide you the best possible assistance. Along with this, they offer a number of advantages such as:

  • Fast approvals
  • Minimum turnaround
  • Easy application process
  • Flexible repayments
  • Competitive interest rates
  • No collateral
  • Pre-approved equipment finance for potential franchises

There are many lenders known for offering secured and unsecured small business loan in Perth. Secured loan is a type of loan option in which you have to provide some asset as collateral. You will be able to procure loans ranging from $150K to $10M from alternative lenders regardless of your credit history.

On the other hand, unsecured loan requires no collateral. In this case, interest rates are considerably higher than secured loan because there is no collateral. There are many alternative lender providing unsecured loans up $10,000 to $ 500,000 for any business purpose.

So, what you are waiting for? Approach a reputed lender—like GCC Business Finance—to get small business loans in Perth. The company, GCC Business Finance, has credibility in the market to provide loans at the most competitive rates that help business owners execute their work in an efficient manner. Along with this, the firm provide flexible repayment options suiting your requirement. Contact the firm right away for more information.

How to prepare for Fundamentals of Corporate Finance exam

 First, start early. Cramming for the exam will only result in a lower grade. Many students might study for a year while others can cover the material in a few months or even less. But usually at least three months of hard, steady preparation work is desirable. Make a timetable to go after and stick to it. A rest of a few days a week will help you stay alert. You can easily burn out if you overdo it.

To prepare for the Fundamentals of Corporate Finance 9th edition written exam there are two possible ways:

First: learn using the books suggested by your teacher and the list of topic areas in the curriculum. Attending all classes and lessons.

Second: simply memorizing the questions in the test bank.

I do not propose “the memorize questions” technique. Looking at the questions is OK; but study the book and material using both courses and individual study. As a student you need to know the details, not just the answers to the questions.

To prepare for the exam, I recommend that you create a preparation at least three months in advance of your booked exam date. Never plan to take your first step later when you have more time.

Start by reading and identifying the regulations and directions of the exam. Be familiar with what will be the test environment. Every component will have it’s own set of instructions. Study these earliest so you do not have to to read them another time. Also ensure you are alert to what is permitted such a when you can use a calculator. When you start with each segment you have to know what to do and start immediately on problems without reading the instructions again.

This sounds understandable, but practice is sometimes different. Read a lot. You should practice solving most of homework examples. If it is necessary find a mentor, a more senior student who passed the exam.

The outcome is that learning from all sources will build your confidence in your knowledge and skills. A large part of any assessment is confidence.

Many textbooks have standardized test banks. This makes it very simple for teachers. They randomly choose questions from the test bank. Usually they randomize both the questions and the answers so that no two students will have the same order of the questions. This makes it difficult for students to work together.

An essential aspect of any education is examination. Examinations measure how well the student has mastered the information and how helpful teachers are.

Commodity Tips | Equity Tips Stock Tips | and best services Aurum Financial Services

 Stock Market

Stocks are issued by companies in order to raise capitals and are bought by investors in order to acquire a portion of the company. A Stock market is the place where buying and selling of stocks takes place. Nowadays due to internet and advanced technology buying and selling of stocks takes place anywhere in India and also from foreign country, there is no need to be physical present in exchanges like NSE and BSE. (Cash Stock)Stock markets are perfect competitive market.

Commodity market

A ‘commodity market’ is a market that trades in primary rather than manufactured products.Bullions, Metals, MCX+ NCDEX. Hard commodities are mined, such as gold and oil.Investors access about 50 major commodity markets worldwide with purely financial transactions increasingly outnumbering physical trades in which goods are delivered.

Stock Broker

A stockbroker is person who is licensed to trade in shares. Brokers also have direct access to the share market and can act as your agent in share transactions. For this service they charge a fee i.e. brokerage. They can also offer additional services like advice on shares, debentures, government bonds and listed property trusts and non-listed investment options (cash management trusts, property and equity trusts.

Stock advisor (Investment Advisor)

Stock market is the place where you can make your money multiply within minutes and sometimes even in seconds as well. Sometimes in the market people come with a hope and lost everything within a short interval of time. Stock market is the platform where everyone comes with a dream of becoming a millionaire or to be richer whether it is cash or commodity market. In India you can trade in stocks in any of the exchanges and they are different for Commodities and Stock Market.

There are also advisors who helps to earn profit from market. There research team consists of highly qualified and experienced analysts who use state of art technologies and software to find the right opportunities in the market. There analytical skill level is our biggest strength.

So, while investing the money in the stock market, you should be aware about the Stock brokers advice and go through the Best Stock Advisory Firm which provides you the best Stock tips, Stock Future ,Stock Cash well as Commodity tips. I know a best Stock SEBI registered Advisory firm (Aurum Financial Services) in India which provides the best Stock Tips in the Indian Stock Market.

4 factors you must know about the business loan

 A business loan is a great way to start your dreams and make it into a reality. They are available to those who want to seek a proprietorship firm, partnership firm, private limited company or a public limited company. Most of the banks and financial institutes offer this kind of loan, with different variants in terms of interest rates, features and principal amount.

However, each loan has certain features that you must be aware. These features will help you in strategizing the best way to utilize your loan and how to repay it without affecting your funds. When it comes to the business loan, here are four features you must know about:

 Collateral: Most banks or financial institutes would need a security in the form of collateral for the loan they would extend to you. Collaterals can be in the form of asset which include property or liquid securities. As these institutes would want to cover the risk in investing funds for your venture, they always demand a collateral in order to compensate in the occasion you lack to pay the borrowed funds back.

 Credit History: if you are a sole proprietor of your business, your credit profile will be scrutinized to judge the credit rating of your company. Alternatively, some agencies out credit ratings based on the repayment and financial strength of a company. This credit score is important as it impacts the loan application process. A low score would mean a low principal amount of the business loan. In certain cases, the bank may refuse to give the loan by rejecting your application completely.

The financial condition of the company: when you apply for this business loan, most banks will run a financial check on the condition of your company. Through this process, they gauge the financial health of your company. If the company is saddled with debt, cash crunch, low cash flows, the bank or financial institute will use this reason to either give you a low loan amount or refuse your application. These banks also look at the amount of capital you invest in, in addition to the revenues you have generated and taxes paid. Some banks will also demand an invest plan and how you would repay the borrowed funds over the tenure period.

Economic conditions: At the end of the day much depends on the economic condition that is pertaining in the country at that moment. If there is an economic slowdown, it may be very difficult to get a loan from the banks. Similarly, if the RBI has increased its rates, youcannot expect high loan amounts. This situation can also be vice versa during the economic boom period.

MBA in Marketing Vs MBA in Finance

 Now-a-days MBA is one among the top choices of students from the Engineering as well as Finance streams. Management careers are gaining more and more fame as students have good career opportunities post successful completion of management studies. When pursuing MBA Students can choose the courses of their interest. When it comes to MBA programs in finance and marketing both have lot of similarities. Finance MBA programs offercourses in marketing, and marketing MBA programs offer courses in finance.

India is home to around 3000 institutes offering management education. Out of which there are numerous top management institutes in Maharashtra. Apart from Mumbai, even small cities like Pune and Nashik get ranked for owning the best MBA institutes. The top MBA colleges in India have the best infrastructure, best faculty, alumni and of course tie-up with top companies for campus placements.

Listed below are the similarities between Marketing and Finance MBA Programs:

Master of Business Administration in Marketing (MBA in Marketing)

Students who pursue MBA in marketing learn to manage and make decisions in regards to advertising, public relations and other communications fields. In their course of education they are taught about international sales and marketing, risk management, strategic planning, economics, ethics, market research, financial analysis, consumer behavior and current business trends.In an MBA marketing program, students can choose their subspecialty depending on their interest and career goals from areas like advertising, Internet and international marketing.

Master of Business Administration in Finance (MBA in Finance)

MBA graduates who pursue major in finance are taught how to make financial decisions for a variety of businesses and organizations. Students are taught how to acquire, manage and distribute funds in business. MBA in finance includes learning marketing, international business and finance, budgeting, financial accounting, data analysis and economics in the syllabi. Private equity, corporate finance and portfolio management are few of the subspecialty which students can choose depending on their interest.

From the above information, it’s clear that Marketing MBA graduates have an opportunity to step into creative and communications field and also in other finance corporates organizations where as Finance MBA graduates are best suited for working in fields related to banks, administration and accounting and corporate financial organizations.

Following is a list of Career Options for Graduates with a Marketing MBA degree:

  • Advertising Executive
  • Brand Manager
  • Business Development Director
  • Buyer
  • Market Researcher
  • Product Manager
  • Senior Marketing Analyst

Following is a list of Career Options for Graduates with a Finance MBA degree

  • Chief Financial Officer
  • Financial Analyst
  • Financial Manager
  • Insurance Adjuster
  • Investment Banker

Stock Broker

Six Words Describing Small Business Financing

 This report was produced in a direct effort to provide more understandable insights about some of the most critical business finance issues effecting commercial borrowers. Our approach in this report is to describe current commercial loan circumstances in six words. We have adopted a similar model in other commercial finance reports such as “seven words to describe commercial property loans”. The “simpler is better” perspective reflects the belief that after hearing an almost endless number of reports about commercial lending difficulties, what small business owners might really need is a more concise explanation about these problems and the resulting impact on their business financing options.

Before proceeding, it is important to emphasize that small business finance options are often more complicated than anticipated by many business borrowers. It would be incorrect to assume that we are attempting to characterize business loans and working capital financingas simple and straightforward. Actually, we are making the opposite case. The unfortunate reality that most business financing processes have always been excessively complicated and that meaningful improvements are not on the way is one of our ongoing observations. We nevertheless feel that it is critical for each small business owner to have an absolute and total understanding of the entire commercial finance process in the face of the prevailing commercial lending complexity. This particular report is one of several thorough efforts on our part to help in providing more understandable insights about commercial loans and business banking problems.

“Banks are saying no more often” is our first example of six words describing business financing options. For any small business owner still unaware of this harsh reality and who might doubt this observation, a series of candid conversations with other business borrowers will probably remove all doubts. The primary point to remember is that banks are not currently providing an adequate level of business loans on a widespread basis. It is important for small businesses to realize that they are not alone when they hear their bank say no to routine requests for commercial financing.

A second observation is that “commercial property values have decreased dramatically”. There are very few exceptions. The biggest business financing impact is likely to occur with commercial refinancing situations. Many banks are aggressively recalling existing commercial real estate loans and this literally forces a borrower to seek business refinancing even if a business owner has no interest in refinancing their commercial mortgage. With decreasing commercial real estate values, business refinancing will be a challenge for most small businesses.

In another six-word description of commercial financing, “lines of credit are disappearing fast”. Even the most successful businesses need a reliable source of working capital financing, so this situation is especially serious if a business cannot replace bank financing when it suddenly disappears. Even if a business still has an adequate line of credit, it is important to realize that on a widespread basis banks are reducing and eliminating business credit lines with almost no advance notice.

“Business financing is in intensive care” is our final observation in this report. Small businessowners need to be prepared to take more extreme measures such as firing their banker and finding alternative commercial funding sources. Nobody should expect that bankers will publicly announce that they are in any kind of financial trouble after recalling that they have not been sufficiently candid about commercial lending problems in the past. On the contrary, a prevailing outlook from most banks is they are lending normally to small businesses. Commercial borrowers will need a healthy amount of skepticism when dealing with any commercial lender.

As we noted, this article is one of several efforts to help small business owners survive an extremely challenging commercial lending environment. By describing commercial loan difficulties in six words, this report was intentionally designed to produce a concise overview of several complex small business finance issues. A review of related reports such as “seven words to describe business cash advances” and “six words describing working capital financing” should also contribute to a better understanding of practical business financing options for commercial borrowers.

An Assessment of the Mobilization of the Household Savings and Corporate Investments Via; Indian Stock Markets



Financial system facilitates intermediation between savers (public) and investors (firms), and helps to translate saving into investment. Financial system consists of intermediaries, instruments and markets. Intermediaries are those who intermediate between savers and investors, instruments are the claims issued and markets are place where such claim is transacted. The role of financial intermediation, thus reduce market imperfections arising from informational problems and improve allocation of resources. The capital market is one of the intermediaries between savers (public) and investors (corporate sector). Capital market is seen as a market where the corporate sector mobilize funds by means of equity and debentures issue, although it include s market for state bodies securities such as gilt edged securities. In pre-reform periods corporate sector had to function within a fiscal framework and to facilitate investment in the desired directions; the state had actively participated in the development and control of financial system consisting banks, specialized institutions and the capital market. It was seen that financial sector reforms since 1990s brought changes in this set up and led to a movement away from control to a free environment.

Indian economy is going thorough the phase of economic transition since 1991. The Indian capital market received special attention under the policy of liberalization. Reforms in the security market, particularly the establishment of SEBI, abolition of controller of capital issue (CCI), market determined allocation of resources, screen based nation wide trading, market determined interest rate structure have greatly improved the regulatory framework and efficiency of trading and settlement in the Indian capital market. In India the ratio of market capitalization to G D P rose from about 3.6 per cent in the early 1980s to over 34 per cent in 2003, and sock market turn over ratio is 1.39, which rank 6th among 92 countries (Word Bank, 2003). The number of new issue that got listed on the stock market went up considerably during first half of the 1990s but there after till recently the primary market witnessed considerable decline in terms of both number of issue and amount of capital raised (R B I, 2006). It clearly indicates that stock market performing well but its role, as an intermediary to channels households saving for corporate financing of investment is in question.

Literature Review of Financing of Corporate Firms
The corporate firms in developing country heavily depend on external finance and new issue to finance their growth of net assts as compared with developed countries (Ajit Singh 1995). In contrast to this Cherian Samual (1996) argued that stock market play a limited role as a sources of finance for Indian as well as U.S firm. In broad terms India would classified as a bank –oriented economy based on role played by the commercial bank. Both study agree with the fact that external sources is the important sources of finance for firms in developing countries, but they differ in respect of role played by the stock market as a source of finance. He also showed that for a period of 1978 to 1998 internal sources of finance provide about 38 per cent of total fund, where as external sources provide remaining 62 per cent in India and also suggest to the extent that these results are applicable to other developing countries.
It is expected that an underdeveloped and imperfect financial market will discourage the firms raising finance from stock market, bank and should induce the corporate market to largely grow from internal sources. This phenomenon is partly explained by Taggart and pecking order theory. The Peking order theory emphasis the financing hierarchy faced by the firm where, in firm’s preference sources of finance is internal, debt, then possibly hybrid securities like convertible bond and last resort equity (Mayer, 1986). It has been pointed out by Taggart (1985) that underdeveloped financial markets do not offer freedom of choice of corporate financing instruments. This forces the firms to accept second best, sub optimal capital structures.

There are number of literature which holds the view that among the corporate in developing countries India depend less on stock market and more on bank as a sources of finance (Cherian Samuel 1996, Ravichandran, Manas Paul, Binayak Pal, 2005)). The study of capital structure of seven developing countries by Jack Glen and Brian Pinto (1994) for the period of 1980-1992 suggests that there remains a significant difference in the capital structures of sample countries. In Brazil, more than two third of total financing is accounted for by equity where as India, Pakistan, and Korea carried relatively low level of equity. In India since 1996 to till recently the primary market has witnessed a considerable decline in the number of new of issue and total amount raised (Subash Gosh 2004).

The reasons for poor performance primary market are attributed to number of factors. Subash Gosh (2004) Pointed out that firms decision to go public over last decade depend on number of other companies that were getting listed over the last months. This suggests that Indian companies did not depend on the information content of initial returns while taking their decision to go public. He suggest that a key reason for this finding could be that, unlike the developed countries, it took a long time for Indian companies to get actually listed on the stock market after the promoters decided to go public. Sayuri Shirai (2004) also find that firms appear to have taken advantage of the two stock market boom in order to raise fund cheaply, but have shifted away from the market once the boom petered out. Therefore there has been no steady shift among the high quality firms from loans from banks and financial institutions to equity. This reflects an inadequate infrastructure for sound capital market despite SEBI’s efforts to strengthen accounting, auditing and disclosure accounting and to enable high quality firm to issue shares at high price than low quality one regardless of the booms –bust cycle of stock prices.

More interestingly it is demonstrated that internal and alternative financing (capital market) channel provide the most important sources of finance for small medium enterprises, the most successful sector in the Indian economy (Franklin Allen, Rajesh Chakrabarti, Sanker De, Jun Qj Qian, Meijun Qian, 2006). They also find that entrepreneurs and investors relay more on informal governances mechanisms, such as those based on reputation, trust and relationship, than formal mechanisms, to finance corporate growth. In India the large firms seems to use (based on R B I and ICICI data) more internal finance and bond than smaller firms, while latter report higher bank loans and total borrowings than the former. Larger firms have a higher average age and thus have longer and better reputation than smaller firms, which enables them to finance growth from greater retentions and to access the bond market more easily, at lower cost, smaller firms on the other hand have a lower average age which reduce their ability to access the stock market for long terms funds or to use retained profit (David Cobham and Ramesh Subramanium, 1998). Too conclude it is seen from the existing review of literature that a) Indian corporate sector depend more on external finance, particularly bank and debt finance b) Secondly primary market is not performing well.

Problem of the study
Firms in developing countries are found to be more depending on external sources to finance their growth. In India even after 15 years of capital market reforms, poor performance of primary market is not only accounted for limited role played by the stock market in financing of corporate but also since 1996 till recently the primary market has witnessed a considerable decline in terms of number of issues and total amount of capital raised (RBI, 2006). It is quite interesting to note that secondary market is in boom (table appendix) as a result there is rise in share premium, which will reduce the cost of issuing shares / debentures. But corporate firms prefer banks and retained earning than capital market to finance their investment. It in turn result in two problems a) stock market as an institution for financing of corporate sector via mobilization of households saving is in question b) long term financial heath of the firms is in trouble as result of high dependence on debt finance (mainly bank and bond). It is in this background this study is proposed with following objectives.

The objective of the study
The study aims to analyze the financing pattern of corporate, in general and capital market in particular, in India. It also looks into flow of saving from households sector for financing of corporate sector via stock market. The main objectives of the study are:

•Trends in Financing Pattern of the Corporative Firms in India
• Performance of New Issue Market
• Changing Pattern of Financial Assets of Households in India

Methodology and data sources
For the study, financing pattern of firms is broadly divided into two, internal and external. Then the external finance is divided as a) borrowing b) paid up capital c) trade deficit and current liabilities. The borrowing consists finance from debentures, bank, and financial institutions. In order understand role of stock market for financing of corporate we take the trends in primary market in general and specifically new issue market. Then have a look into the industry wise classification of capital raised from the primary market. To analyze the intermediary role-played by the stock market to channel the households saving into investment in corporate sector, we take the changing pattern of financial saving of households in the country. Simple ratio and percentage are used for the analysis. The study had primarily relied on companies financing data on non-government non-financial public limited companies published by RBI and handbook of statistics published by SEBI.

Organization of the study
The study consists of six chapters including introduction and conclusion. The introductory chapter is more generic in nature, including the problems of the study, review of literature, objectives, data and methodology. The second chapter consists of the detailed examination of the financing pattern of the corporate sector. The third chapter consists of the Industry-wise Classification of Capital Raised. In the fourth chapter discuss Flow of funds to corporate sector via corporate securities. In the chapter five we analyze the Changes in Financial Assets of the Household Sector.

Limitation of the study
The study is subjected to some limitations as usually attributed to secondary data study are applicable to the present study also. The time limit, which has been the greatest constraints in undertaking the study, had caused some bias, which could not be avoided but can be minimized. The data, which have collected through secondary sources, could also have shortcomings usually observed in secondary data.


Financing Pattern of Corporate Sector

A large network of commercial banks, financial institutions, stock exchanges, and a wide range of financial instruments characterize the Indian financial system. The central issue regarding the finance for the firms is its composition between external and internal sources. Internal sources comprises of paid up capital, reserves and surplus, and provision. External sources include fresh issue of paid up capital, borrowing, trade dues and current liabilities and miscellaneous non-current liabilities. Diagram given bellow depicts the sources of financing of an typical corporate firms

Pattern of corporate finance

Trends in Financing Pattern of Indian corporate sector
The firm’s fundamental choice of finance is between internal or external. It is seen in the literature that in developing countries corporate firms are depend heavily on external finance where as in developed country main sources of finance is retained earning. In India firms are more depend on external sources (debt) than other developing countries (Ajit Sing 1995,Charian Samuel 1996). In India, having a under developed capital market and banking system it is expected that imperfect capital market will discourage firms from raising external finance and should induce the corporate sector largely grow from internal finance.
Table appendix1: Despite there is a considerable variation among various countries the mean population internal finance is 38.8, while the issue of equity finance is only 39.3 and long debt provided 20.3 in world. Where as in India long-term debt is higher and equity finance is less as compared with than all other developing countries concerned with the study. It may be due to highly developed banking system in India as compared with capital market (Charian Samual 1996, Singh 1995, Sayuri Shirai 2004).

Table 1: Financing pattern of Indian firms
Year Internal External
1986-90 31.84 68.16
1991-95 29.92 70.08
1996-00 36.92 63.1
2001-05 60.22 39.78
1985-2005 39.80952 60.19524

Sources: S E B I, R B I

The table1 shows that in between 1985 – 2005 periods the external finance contributed about 60 per cent of total finance and internal finance the remaining 40 percent, of non –governmental and non-financial companies. During the period of 1990-95 on an average external sector contributed 70 per cent of total finance, it may be due to boom in the primary market in that period. It is seen from the table that external source is more important for financing corporate sector in India during 1895-2000. In last five years the internal sources accounted for more than half of total finance of the corporate companies as a result of rise in retained earning of the firms (RBI, 2006).

Components of external finance of corporate sector
The external sources are the most important sources of finance for all industries in the country. The external source mainly consists of paid up capital, borrowing (debentures, bond and financial institutions) and trade dues and current liabilities.
Table 2: Components of external finance of corporate sector
Year External sources Paid up capital Borrowing a) Debentures b) Bank c) F I Trade dues current liabilities
1985 58.5 3.9 31.3 10.4 11.3 3.7 23
1986 65.5 2.6 36.8 13.2 13.1 6.1 25.6
1987 70.4 3.4 40.1 13.6 14.1 8.6 26.6
1988 63.7 15.8 33.9 9.8 9.8 10 13.7
1989 70.9 7.4 37.2 4.3 19.2 9 26
1990 70.3 6.8 41.4 14.3 11.5 9.6 21.9
1991 62.4 8.7 33.1 6.5 9.7 11.9 20.3
1992 71.9 6.8 41.2 12.2 8.8 14.3 23.8
1993 73.9 22.3 37.5 7.2 12 13.8 14
1994 71.1 29.6 24 6.9 -2 7.6 17.4
1995 71.1 26.8 27.6 2.8 12.4 3.9 16.4
1996 63.4 13.9 31.4 3.5 17.7 6.1 17.9
1997 64.1 10.1 45.6 5.4 13.3 10.2 8.2
1998 66.6 7.6 45.9 12.2 10.1 10.1 12.8
1999 61.7 11 37.5 5.1 29.3 11.1 12.8
2000 59.7 21.9 20.1 3.8 8.4 5.2 17.2
2001 42.9 12.8 9.3 9.5 -0.8 -3.2 20.2
2002 34.7 10.5 8.8 -1.5 21.5 -0.7 14.3
2003 30.2 9.4 5.6 -5.6 27.1 -0.6 14.8
2004 46.6 9.3 17 -3.5 21.4 5.06 20.3
2005 44.5 10.8 15.3 -1.1 15.2 -2.6 18.5
Sources: S E B I, RBI

In table2 external sources is divided into three components a) paid up capital b) borrowings c) trade dues and current liabilities. The corporate sectors borrow either from bank, financial institutions or from stock market by issuing debentures or from all the three sources. Looking at the disaggregated data on various external funds, it is seen that bank contributed major component. The declining in external sources has been contributed by decline in the share of paid up capital and borrowing during 1996-2006. The decline in borrowing has been contributed by decline in share of debentures and financial institutions, while the share of bank remained more or less stable during the same period. Table also shows that during the first half of 1990s there is growing reliance of private corporate sector on paid up capital. The striking finding from the table is the importance of bank, trade dues and other liabilities as sources of finance. In terms of relative efficiency of the market vs bank, India’s bank stock market are small relative to the size of its economy, and the financial system is dominated by an efficient but underutilized banking sector (Franklin Allen, Rajesh Chakraborti, 2006). As rightly pointed out by Charian Samuel (1996) and Ajit Singh (1995) Indian financial system is predominantly a bank oriented one. Despite of these during this period, credit deployed by banks and financial institution were at low rate of interests. Low rate of interest made industries more depend upon the financial institutions for resource mobilization. The state promoted and regulated financial system comprising mainly of bank, AIFIs and capital market, and policies in relation to each of them seem to suggest that it could have stimulated external financing (Dennis Raja Kumar, 2001). It is possible that the requirement of large investments could also have compelled the shift from internal to external sources.

The importance of trade credit and other current liabilities increases in the small-scale segment accounting for over half of or and almost two third of all financing for the SSI (Small Scale Industry) and SSSBE sectors respectively (Franklin Allen, Rajesh Chakraborti, 2006). Since many firms in SSSBE (Small Scale Sector Business Enterprises) sector are engaged in wholesale and retail trade, given the relative importance of current liabilities in these sectors, this finding is not too surprising.

Performance of Primary Market
In primary market, new issue of equity and debt are arranged in the form of new flotation, either publicly or privately or in the form of a rights offer to existing shareholders. Households, firms, financial institutions, who are in financial surplus, exchange their saving for shares or debentures of the companies.

Table3: New Capital Issue by non government Companies
Year Average no of Issue* Amount
1971-1975 154 72
1976-1980 176 123
1981-1985 638 988
1986-1990 371 3683
1991-1995 1205 17548
1995-2000 241 5906
2001-2004 24 6092

Sources: RBI, * It include shares, bonds and debentures
In the Primary market (both new issue and existing issue), number of issues by the corporate sector show upward trend from 154 on an average during 1970-75 and it reached the peak with an average number of issue of 1205 during 1991-1995. The table shows that after 1995 there was a sharp decline in number of issue to 241 during 1995-2000 and 24 in 2001-2004 respectively. The total capital raised was Rs 72 crores in 1971- 75, in 1991-95 it rose to Rs 17548 crores then declined in 1995-2000 to 5906 crores. In between 1971-1975 and 2000-05 average number of issue declined from 241 to 24, while amount of capital raised increased from 5906 crores to 6092 crore. It is interesting to note that this sharp decline in average number of issue did not reflected in the amount of capital raised by the corporate sector due to rise in share/debenture premium in the primary market.

New Capital Issue by the non -financial and non-governmental Companies
New issue market creates financial claims. It deals with those securities, which have been made available to public for the first time. The performance of new issue market is an indicator of how many new firms are financed by the stock market.

Fig1: New Capital Issue by the non -financial and non-governmental Companies

Sources: SEBI, RBI

In the new issue market, there was boom in the first few years of 1990s. But after that there are a continuous fluctuation in terms of number of issue and amount raised by the corporate sector on account of inefficiency in the primary market. The number of issue of capital had gone up from 86 in 1992 to 577 in 1995 then registered a substantial decline to 22 in 2004. There is relatively small raise in the number of issues in 2004 and 2005, while the amount of capital raised are increasing at greater extent simply because of higher share/debenture premium in new issue market. It may be the due to the influence of high market capitalization of securities in the secondary market.

Ajit Singh (1995) explains the boom in primary market in relation to the cost of equity capital. The cost of equity capital relative to that of debt became much more favorable to equities during course of 1980s, the steep rise in international interest rate as well as financial depression rise cost of debt capital. Investor’s optimism and business condition, small and young companies are likely to go to public during the hot period to take advantage of investor’s enthusiasm and firms decision is not depend on information content of initial return (Subhash Gosh.2004). The relatively high rate of interest in the banking sector in early 1990s (Parthpratim Pal, 2002) also led the firm to approach capital market to finance their investment in the early part of 1990s. During 1990s firms do not have the choice of larger number of sources, so they are depend upon second best in the underdeveloped stage of its capital and bank market. Along with this the influence of the government in 1990s also led the firm to depend more on capital market in 1990s (Agit Singh, 1995).

The decline phase of primary market there after is explained by

a) If a company decided to go public then the average time lapsed between the offer trades and listing date being four month, the deciding to go to public has got listed only after six month (Saurabh Gosh, 2004).

b) High cost of equity capital and declining rate of interest bank lending after banking reforms (Parthpratim Pal, 2002) encourage the corporate depend upon debt finance.

c) Bank oriented capital market system in the country like Japan and Germany and long term conduct between firms and bank also encourage the firm to depend on the bank for its finance. The repeated scams in the stock market make it as a less reliable and high risky source for financing of corporate investment activities.


Industry-wise Classification of Capital Raised
Industry wise classification of capital raised from the primary market will help us to identify the industries, which are depend least on capital market for financing their investment during the declining phase of primary market, than compared to boom period in the primary market.
Table 4: Industry-wise classification of capital raised
Industries 1994-1999 2000-2005
Number Amount Number
Banking/Financial institutions 9 2856 12 6817
Cement & Construction 9 451 3 222
Chemical 60 1087 3 168
Electronics 14 342 3 71
Engineering 23 262 42 507
Finance 163 1924 4 252
Food Processing 77 681 2 40
Healthcare 141 485 3 141
Information Technology 15 385 21 1311
Paper & Pulp 9 169 1 327
Plastic 19 84 37 37
Power 22 296 1 128
Others 208 4989 11 6079
Total 648 13970 78 16105

Sources: SEBI, RBI
(All numbers are in average)

Looking at the disaggregated data on various industries raising capital from the stock market on an average total number of issues was declined from 648 to 78 during 1994-99 and 2000-05. . It is interesting to note that average number issue was 648 during 1994-99, raised average amount of capital of 13970 crore, while the capital raised by 78 issues during 2000-05 is 16105 crores. The table also shows that there is an increase in the number of shares / debenture issued by three industries, engineering, information technology and plastic.

The literature on financing of Indian corporate sector shows that small and newly emerged companies are more depend on stock market fiancé as compared with debt finance. Financial healths of engineering and information technology industries are better as compared with other industries after reforms. In the case of these two industries accounted for not only an increase in number issue but also rise in the share premium, which may be the result healthy financial indicators of the company along with rise in the market capitalization of existing securities of the companies in the secondary market. In the case of information technology industry with an increase of only 6 issues but amount raised increased from 385 to 1311 crore. This further reduces the cost of issuing shares / debentures in the primary market.

All data primary market shows that shows there is rise in the share premium in the primary market, which will reduce cost financing corporate from stock market, but in contrast to this firms are not depend on stock market to fiancé their investment.

Flow of funds to corporate sector from various sectors of the economy
As pointed out by Mayer (1988), there are two sources of information for studying aggregate corporate financing pattern in different countries. The first is national flow of funds between different sector of an economy and between domestic and overseas residents. The second sources are company account that are constructed on an individual firm basis but are often aggregated or extrapolated to industry or economy levels.

Table 5: Flow of funds to corporate sector via various sectors of the economy
Year 1985-1995 Per cent of total finance
Banking 13257 29.2
O F I* 14654 32.3
Government 1081 2.3
World 2637 5.8
Household 3857 8.5
Sector n e 9275 20.4
Total 45252 100

Sources: Flow of funds account s of RBI

Table 5 shows that banking and other financial institutions account for more than 60 per cent of total flow of funds to the corporate sector during 1985-1995. Financial institutions other than banks, which account for 32.3 percent funds, flowed to the corporate sector during the same periods. The house holds sector contribution is only 8.5 per of total flow of funds to the corporate sector during 1985-1995. The flow of accounts also strengthening the argument that stock market played a limited role as an intermediary to channel the households saving to corporate sector investment.


Flow of funds to corporate sector via corporate securities (1951-1995)

Corporate securities contributed only a small portion of total finance raised by the corporate firms before 1980. While 1980 onwards there was continuous increase in the capital mobilized by the firms through corporate securities.

Table 6: Flow of funds to corporate sector via corporate securities (1951-1995)
Year Corporate Security (average)
1951-1955 41
1956-1960 58
1961-1965 167
1965-1970 66
1970-1975 94
1975-1980 316
1980-1985 1020
1895-1990 3631
1990-1995 24481

Sources: Flow of funds account s of RBI

Table 6 indicates that during 1975-80 capital raised by the firm through corporate securities were only 316 corers (average), while in 1990-95 it increased to 24481 corers (average). Since 1980s there was a boom in the primary market, both in terms of number of listed companies and also in capital raised through stock market by the corporate sector in India. Instrumental wise flow of funds should strengthen the argument that there was a boom in the primary market immediately after the capital market reforms. But when we look at the sector wise flow of funds banks and financial institutions accounted for more than 60 per cent (table5) of flow of funds to corporate sector during 1985 – 1995. It is also seen that even in the booming period of primary market the financial flow from households sector to corporate sector is relatively less as compared with bank and financial institutions other than bank.
Debt Equity Ratio
Debt to equity is the ratio of total debt to total equity. It compares the funds provided by creditors to the funds provided by shareholders. Equity is defined as net worth share capital and, reserves and surplus. Total debt means both long term and short-term borrowing. As more debt is used, the debt to equity ratio will increase. Since firm incur more fixed interest obligations with debt, risk increases. On the other hand, the use of debt can help improve earnings since firm get to deduct interest expense on the tax return.

The Debt to Equity Ratio is calculated as follows
Debt Equity Ratio = Total Debt/ Equity

Fig 2: Debt Equity Ratio (year wise debt and equity raised)

Sources: SEBI, RBI

In 1995 debt equity ratio is 1.3, but has risen to 55.3 in 2002. The debt equity ratio for Indian companies during 1995-2005 is 5.6. The last three years debt –equity ratio is 3.5 it is not due to rise in number of issues equity but due to high share premium through new issue of capital.

Indian companies are continually relay heavily on external sources of finance averaging 60 percent during the period 1985-2006.On the other hand the amount of equity finance has been reducing continually in recent years, it will rise share of the debt in the total finance of corporate firms. Dennis Raja Kumar (2001) suggest that it was not relative cost, which induce more of equity financing but was the results of information asymmetry as seen through moral hazards, adverse selection signaling. The dependence on debt finance make India’s corporate sector vulnerable to domestic financial shocks. At macro economic level, this vulnerability stems from large fiscal deficits and sizable government debt, which has the financial potential to crowd out private investment and slow growth (Pretia Topalova, 2004). Too conclude high debt equity ratio may be a signal for future financial crisis in the corporate sector.


Changes in Financial Assets of the Household Sector (At Current Prices) 

Households constitute the primary sources for capital formation in the country. Of the saving ratio of 28.1 per cent in 2003-04 households accounted for 86.4 percent, and household sector ratio was 24.3 per cent (1993-94 base periods). Saving of the households is mainly categorized into physical saving and financial saving. Financial saving of the households is increased from 47 per cent on an average in 1980-1991 to 52 percent in 2003 (Table 4 appendix). The one of the objective of capital market reforms is to facilitate the financing of corporate sector from households saving via stock market. It is believed that stock market development will improve not only gross household saving but also change the pattern of households saving towards financial assets, particularly in shares and debentures.

Fig 3: Saving pattern of household sector

Sources: SEBI, RBI

Fig 3 shows that financial saving as a percent of total saving has increased during 19991 to2003, but percent share of shares and debentures in financial saving is continually decreasing from 1994 to 2005. In 1994 percentage share of shares and debentures in total financial saving of the households was 13.5 per cent, while in 2004 it declined to .1 in 2004 and 1 in 2005. In 2006 there is a slight increase in share of shares and debentures in the assets basket of the households, this is attributed by high price of shares / debentures in the primary market. Since 15 years after financial liberalization households are investing in the traditional asset such as, gold bank deposit etc than riskier assets like shares or bonds.



The stock market can boost economic activity through creation of new companies and liquidity (Levine and Becivenga Smith, 1996). Agarwal (2001) also suggest that in India the well stock market may be able to offer financial services other than those of the banking system and therefore provide an extra impetus to economic activity. On contrasts to this in India firms are depend less on capital market for financing their investment. Stock market finances only few new companies in recent years. In this context the argument that stock market can boost economic activity through creation of new companies is questionable. It is true that stock market provide liquidity to securities and also financial services other than those of the banking system, which facilitate growth of economic activity. It is seen in the study that the primary market securities is exhibiting certain features that limit their secondary market liquidity. a) Small size of issue b) equity ownership is highly concerted with in founders or controlling shareholders. This limiting feature are small size issue and also as find out by Franklin Allen and Rajesh Chakraborti (2006) equity ownership is highly concentrated with in founders or controlling share holders. In the long run declining new issue and concentration of equity ownership may partially limit liquidity in the secondary market.

In India firms preference is for banks and bond finance and less on equity, lead to high debt equity ratio. As rightly said by Petia Topalova (2004), the dependence of Indian corporate sector on banks and bond finance make it vulnerable to domestic financial shocks. More over Indian companies are also depending more on short-term finance, which may also worsen the current liquidity ratio of firms.

There is little evidence of an increase in aggregative gross domestic saving or an increasing in the proportion of financial saving as a result of growth of stock market (Nagaraj, 1996, Nagashi 1999). In this study also it is seen that percentage share of shares and debentures in financial assets of the households is continually declining after 1994 to till recently. The recent increase in the capital raised from the stock market is mostly due rise in share premium in the primary market, so it cannot be accounted as improvement in primary market. The small size of issue in the primary market and declining trend of shares and debentures in the financial assets holding pattern of the households rightly indicating that stock market played a limited role in mobilizing households saving to finance corporate investment.


Agarwal R N (2004), Capital Market Corporate Financing Pattern and Economic Growth in India, Institute of Economic Growth, University Enclave, Delhi
Charlse J Kenny and Todd J Moss (1998), Stock Market in Africa: Emerging Lions or White Elephants, World Development, vol 26, pp : 829-843.
Cherian Samuel (1996), The Stock Market as Sources of Finance, A Comparison between Indian and U S Firms
Cobham, David and Subramanium(1998), Corporate Finance in Developing Countries, New Evidence from India, World Development, Vol 26, pp : 1033-1047
Dennis Raja Kumar J (2001), Financing Patterns and Investment, A Case Study of Private Corporate Sector in India, Center for Development Studies, Thiruvanathapuram
Franklin Allen, Rajesh Chakrabarti, Sankar De, Jun QJ Qian, Meijun Qian(2006), Financing Firms in India, March 15
Machiraju H R (2000), The Working of Stock Exchanges in India, New age International (p) Publishers.
Makoto Nagaishi(1999), Stock Market Development and Economic Growth, Dubious Relationship,, Economic and Political Weekly, July 17.
Nagaraj R (1996), India’s Capital Market Growth – Trends, Explanations and Evidence, Economic and Political Weekly, vol xxx1
Petia Topalova (2004), Overview o f the Indian Corporate Sector 1982-2002, April, Working Paper /04/64,Intenational Monetary Fund.
R B I (2006), Handbook of Statistics on Indian Economy, Reserve Bank of India, Mumbai
Ravichandran, Manas Paul, Binayak Pal (2005), Clearing and Settlement Mechanism for Trades in Indian Corporate Debt Market, Securities and Trading Corporation of India Limited, Mumbai
S C Mayer, The Capital structures, Journal of Finance, July 1984
Samuel Charian (1996), Internal finance and Investment, Another Look, World Bank Policy Research working Paper, 1663
Saurabh Ghosh (2004), Boom and Slump Periods in the Indian I P O Market, Reserve Bank of India Occasional Papers, vol 25, no 1,2 and 3,Summer, Monsoon and Winter.
Sayuri Shirai (2004), Impacts of Financial and Capital Market Reforms on Coporate Finance in India, Asia –Sacific Development Journal
SEBI (2006), Handbook of Statistics on Indian Economy, Securities and Exchange Board of India
Sharma V K and Chandan Sinha (2006), Reserve Bank of India, B/S papers No 26
Singh A (1995), corporate Financial Structures in developing Countries, I FC paper, Washington D C
Singh A (1997), Financial Liberalisation, Stock Markets and Economic Development, The Economic Journal, Vol 107, No 442,May, pp. 771-782
Singh A (2003), Corporate Governance, Corporate Finance and Stock Markets in Emerging Countries, Working Paper 258, ESRC Center for Business Research, University of Cambridge
Vidya Mahambare and Balasubramanyam V N (2000), Liberalization and Savings in developing countries: The case of India, Working paper 2000/004, Lancaster University of Management School.

CMA – an international high-profile education in Finance Management

 Are you dreaming to head a Finance Empire in future? A traditional master degree in finance may not be adequate to help you reach your goal. The reason behind is top positions in FINANCE is generally restricted to Professional Accountants. Even an MBA (Finance) from a top B school is, often, not considered as an optimum qualification for this purpose.

To be a Professional Accountant, you neither, always, have to be a Public Accountant (Auditor) by struggling for 5-8 years including your article ship period nor you need to get disappointed by repeated failures in  examinations and eventually turning nowhere with a demoralized, half-accountant status as it happens to majority of the aspirants.

A faster yet challenging CMA (Certified Management Accountant) route provides you faster earning opportunity. By the time your friends pass the auditing exam, you would earn Rs 20-25 lacks and occupy 1-2 level positions above them.

Management Accountants are also Professional Accountants and learn the same body of knowledge the Public Accountants learn. Although the CMA exam is held by IMA, US, a student can take the preparation and appear for an online exam from any part of the globe.

The best features of CMA are

  • It is a compact examination consisting of only 2 papers.
  • The syllabus is focused to the needs of the modern world of finance.
  • There is facility to appear for the exam online from any metro city.
  • CMA has international brand value.
  • It is officially equivalent to ICWA (India) if the student appears for CMA from a country outside India.
  • Job opportunity of a CMA is huge.
  • CMA is a quite affordable exam.
  • Classroom Coaching or coaching in distant mode is available. (

Even Harvard, IIM, XLRI graduates do this robust, convenient, industry-relevant CMA (US) to extend their career choice in finance functions.

Why CMA is only a 2 papers exam?

The world is moving in faster pace nowadays and most of the students neither have the patience nor the time to face many shorter exams over number of years. Hence, all American exams including CMA have evolved, in a scientific manner, as compact exams encompassing all subject areas within fewer papers. It requires hard work over a shorter period to pass the exam. CMA is an internationally portable qualification – a passport to work in all countries, including US.

CMA can be extremely beneficial for

  • Current MBA students / MBA aspirants – CMA will be synergic with MBA as it will help them do very well in Financial Management, Cost & Management Accounting, Corporate Finance, Security Analysis & Portfolio Management, Financial Institutes and Markets, International Finance & Derivatives and Management papers of the MBA examination. However, students doing CMAs will not need to do an MBA (Finance) as it automatically covers most areas of MBA (Finance).
  • B Com / M Com students – CMA will help you separate yourself from other lacks of MBAs. With a CMA, you can work in any area of Finance or Accounting in Managerialpositions. CMAs drive performance in business – auditors just express opinions. Even an ordinary MBA (Fin), MFC, B Com, or M Com can have extraordinary career with the international CMA. CMA alone can get you all the material benefits life and job has to offer. The CMA option will save substantial money for the B Com/B Sc graduating students and they will start working early.
  • CA aspirants – Cost of doing a CA over an average 4.5 years period is Rs 23.54 lakhs including the opportunity cost of lost earning (as compared to a CMA) during CA studentship.
  • IT professionals – A good programmer with an additional CMA qualification will be a hot cake in the international job market. If you want, you may also move to the career line of a Finance Manager or MIS Manager where your IT background will be accepted as a plus.
  • Ambitious Science/Engineering graduates who have a knack in finance and dreaming to hold a prestigious position with a handsome salary as early as possible.

So, do not wait for your chance to come anymore. Go and grab your dream through the CMA way of success.

How to generate Working Capital for Small & Medium Business?

 Working capital is life blood for any business. After launching the business, one has to meet the expectations of the customers and address the needs of the customers from time to time to sustain in the market. Bringing required changes in the business from time to time will keep you in the good books of the customers. Your product or service will become their priority when the need arises. To implement all these things effectively, you need good working capital. Big organizations won’t find it difficult to raise the capital. It becomes little hard for small and medium business organization to procure some working capital whenever needed. If you are one among them, please look into few options that are listed below to help your working capital needs.

Traditional loans from bank

Banks toady have good financing program to address the working capital needs of small and large business. They offer you revolving lines of credit that are secured either by financial assets or inventory of the business or unsecured loan based on revenue of the business. You can establish a line of credit and use the working capital whenever needed and repay back the loan when the job is done. It is difficult for all the business organizations to fetch this loan because you need to fulfill many requirements. There are many other sources to fetch working capital loans for small and medium business.

Factoring Receivables

Any business organization, be it small or medium has to raise an invoice when they sell products to the customers. Some customers may take some time pay these bills which may range from 30 to 60 days. Meanwhile a cash gap will be created in the business and you may find it difficult arrange money for your working capital needs. In such cases, you can choose to approach syndicate finance and apply for factoring receivables loan. Here you will be selling all your invoices to syndicate finance Mumbai at a discounted price. They will be arranging immediate cash to address your working capital needs. This amount excludes factoring fee. Once you receive the amount from the customers, you will pay off the loan.

Purchase Order Financing

Sometimes, you may new order from the client which demands purchase of machines to complete the job. Small and medium size business will find it difficult to arrange this capital and finally, they lose the project. In such cases, you can approach syndicate financeinstitutions which arranges funding purchase tocomplete the job. Once you receive payment from the client, you can return the amount with financing fee.

If you are looking at some good working capital financing options for business, syndicate finance Mumbai is always there to address your needs.

A Perfect Financial Plan For A Perfect Wedding

 Wedding is one of the most beautiful occasion in a person’s life. Whether it is bride’s family or the groom’s family, everyone saves money all their life to make this day perfect for their children. As we know that wedding is a costly affair involving numerous activities, making a financial plan is very important. Financial plans help in managing your expenses and utilize the money in a better way.

Financial planning for a wedding must be made by keeping in mind a few important points. You can follow them in order to extract the most out of your budget:

  1. Clarity: There should be absolute clarity among all the family members regarding the budget of the wedding. It should not be that everyone knows a different figure. The misunderstanding can lead to a mess at a later stage.
  2. Create Segments: Marriage budgets are in a very big figure, usually in Lakhs. Hence, it is advisable to create small segments of the budget, dedicated to every major activity. This segregation helps in keeping aside a specified amount for a particular event.
  3. Make Provisions: Always make provisions for any contingencies in the budget.  This will help you in meeting any unexpected expenditure without any shock. One good thing that you can do is, reduce your budget by 10%, while talking to vendors or wedding planners. This will give you a small cushion for meeting any uncertainties.
  4. Negotiate Hard: Whether it is the wedding planner or any vendor, try to negotiate as much as you can. Ask them to give you the most out of your budget. One good piece of advice is to keep multiple quotations of different vendors to come to a qualitative conclusion.
  5. Look for packages: Try & look for package deals with vendors. It is often considered as reasonable and convenient. For example, some wedding card vendors deal in Gifts & Trousseau Packing. You can ask them for a good deal on a combination thereof.
  6. Keep Track of Timeline & Budget: One should always maintain a detailed record of all the expenditure incurred. This will help in better management of funds and also give you an idea of how much you have used up from your budget.

Thus, by keeping in mind the above suggestions, you can better manage your wedding expenditure in the most effective way possible. Therefore, go in a planned & systematicmanner and manage the whole show successfully.

UBS Financial Services – What Do They Do?

 UBS Financial Services is a global company that provides a full range of financial services to individual clients and companies all over the world. In an increasingly globalized world economy that the kind of international expertise that UBS Financial Services can offer is a distinct advantage to all types of client that need to manage their wealth. UBS offers a service that reflects the global nature of financial markets.

UBS Financial Services has offices on every continent. It operates in Switzerland, the United States, Canada, South America, Europe, the Middle East, Asia and Africa. If even this comprehensive network does not put you near a branch of UBS Financial Services you can use the banking online service. UBS Financial Services online banking offers the convenience of making decisions from the comfort of your own home and provides the same range of wealth management and investment services.

Individual customers can benefit from a complete range of financial services. UBS Financial Services offers annuities,401K plans, securities, mutual funds, fund management, wealth management, life and health insurance programs and trust funds. In addition UBS Financial Services can provide an attorney network, Roth IRA accounts, estate planning, account management, retirement distribution analysis, educational funds and fund management and lines of credit. In other word UBS Financial Services offers all the services you would expect to find in a worldwide financial service.

For businesses of all sizes UBS Financial Services offers a comprehensive range of services. UBS Financial Services can provide a customized package consisting of employee stock ownership management, retirement services, corporate cash management, consulting and a global expansion option. Whatever size of business you run UBS Financial Services has something to offer.

If your business already operates globally then UBS Financial services can offer specialized services including rates and currency calculators, equities, fixed income, investment options and help with employee benefit and retirement packages

Non-profit agencies can benefit from UBS Financial Services because the company is sensitive to the specialist needs of this sector. UBS Financial Services is aware of the regulations that effect the disbursement of funds in the non-profit sector. Government agencies, banks and other other lending agencies work with UBS Financial Services enabling the company to develop a unique expertise in this field that can benefit large or small non-profit agencies.

UBS Financial Services operates a specialised online trading system that allows the client to input trades directly. A client who needs advice can work with a financial advisor to develop a portfolio of investments using the expert knowledge of UBS Financial Services. Both companies and individuals can take advantage of this service. This can be done in one of two ways. A brokerage account can have a flat rate fee on each trade or can be charged on the assets in the account. An individual or company that have a high numner of trades will benefit from the second type of fee structure if they keep an steady balance in their asset account.

The Important Aspects Of Business Finance

 Business finance is one of the most important aspects of running and maintaining a business. Finances dictate the success or failure of a business. If a business owner does not properly maintain their business finances then they will soon see problems arise. Business finance is something that every business owner must deal with and understand.

Part of business finance is setting up proper cash flow. A business owner needs to clearly define their accounts receivable and accounts payable. They need to maintain a steady and balanced cash flow at all times. This means they must never let your accounts payableexceed their accounts receivable in any given month.

A business owner must also carefully manage their debt. They should never let their debt get too high or out of control. They should maintain regular payment schedules to ensure they do not fall behind on repaying any debt.

Keeping clear and concise records is extremely important to keeping business finance under control. A business owner should either hire a professional or use some type of bookkeeping computer software to maintain accounting records.

It is important for a business owner to maintain a business budget, much like they would for their household. This will help them ensure they are keeping track of all the money coming in and going out of the business. This is a good method to avoid getting too much debt.

Proper record keeping can also help out should the business owner need to get a loan. Lenders prefer to have records to refer to when making a decision on a loan, especially for a business. Businesses are seen as risky because they can easily fail. Lenders like to see proof that they business is doing well or at least a forecast that shows significant proof the business will do well. This is what good record keeping does.

Business finance is something many people do not think too much about when starting a business. This is why so many businesses fail. When a business is just starting up lenders like to see a good business plan in place, including a financial plan. This shows the business owner is really understanding all that is involved with taking a business successful.

Every business owner should have their business finances in mind at all times. Money is the biggest indicator of success in business, so it makes sense for that to be one of the top priorities of a business owner. For proper business finance a business owner should maintain records for all of the money going in and coming out of the business. They should track all debts and money owed to the business, as well. By practicing good business finance, a business owner is going to be one step closer to ensuring their business succeeds.

Finance Management Complaints

 In the current situation where money is all important and everything that happens in life depends on money, it is excessively important for people to be aware and careful about managing their finances. One may find it a tedious job, as it is seen with Syndicate Finance complaints, but there are certain major steps that should be taken in order to make sure that the money is managed efficiently and a good ratio of savings and investments is made. There are a number of actions that should inevitably be followed if the right management of money needs to be organized. In the pursuit of managing money in the right way, these are the 5 main steps that one should follow:
  1. Keep note of expenses: From the income that one brings home every month, one may have to keep aside a certain sum of money for fixed expenses. These expenses include loan EMIs, rent, household expenses, entertainment expenses and other miscellaneous expenses that one comes across in the span of a month.
  2. Fit in the investments: However small an income may be, it is important that the money managers leave space for investment. One can make investments in small amounts such as for postal account funds or PF or for those who have more scope can invest in mutual funds, insurance and other such avenues.
  3. Have an emergency fund: An essential part of financial planning according tosyndicate finance complaints becomes important when the planners are faced with emergencies and need large chunks of fund. Borrowing may not always be an option, which is why there should always be an emergency amount either in the bank or in case of health emergencies, one must have medical insurance.
  4. Save up for future expenses: The education or wedding of children is something that may require loads of fund, when a planning is made well in advance, the expenses do not seem too big to handle and a special fund for such occasions comes in handy.
  5. Plan for the retirement years: finally one must plan for the retirement age. Finance may become a major problem in old age when medical insurance also goes out of question. This is the reason why it is important to invest in plans that are specifically designed for the old age. Investing in such plans is best when one is young enough to contribute more, the sooner the better.

    When money is managed in an efficient manner, the money starts to work for the planner. There may be people who, in spite of earning a decent amount every month, may be struggling with their finances, for such people it is important to either have their finances figured out or approach an expert for having the problems resolved.

Impact of Globalization on Indian Financial Services Industry



Professor and Head



Reforms of the financial sector constitutes the most important component of India’s programme towards economic liberalization.  The recent economic liberalization measures have opened the door to foreign competitors to enter into our domestic market. Deregulation in the form of elimination of exchange controls and interest rate ceilings have made the market more competitive.  Innovation has become a must for survival.

Many  of the providers and users of capital have changed their roles all over the world.  Financial intermediaries have come out of their traditional approach and they are ready to assume more credit risks.  As a consequence, many innovations have taken place in the global financial sector which have its own impact on the domestic sector also. The emergences of various financial institutions and regulatory bodies have transformed the financial services sector from being a conservative industry to a very dynamic one. In this process this sector is facing a number of challenges.

In this changed context, the financial services industry  in India has to play a very positive and dynamic role in the years to come by offering many innovative products to suit the variedrequirements of the millions of prospective investors spread throughout the country.


Reforms of the financial sedctor constitutes the most important component of India’s programme towards economic liberalization.  The recent economic liberalization measures have opened the door to foreign competitors to enter into our domestic market. Deregulation in the form of elimination of exchange controls and interest  rate ceilings have made the market more competitive.  Innovation has become a must for survival.

Many  of the providers and users of capital have changed their roles all over the world.  Financial intermediaries  have come out of their traditional approach and they are ready to assume more credit risks.  As a consequence, many innovations have taken place in the global financial sector. Which have its own impact  on the domestic sector also. The emergence of various financial institutions and regulatory  bodies have transformed  the financial services sector from being a conservative industry to a very dynamic one. In this process this sector is facing a number of challenges.

Growth in financial services (comprising banking, insurance, real estate and business services), after dipping to 5.6% in 2003-04 bounced back to 8.7% in 2004-05 and 10.9% in 2005-06. The momentum has been maintained with a growth of 11.1% in 2006-07.

Impressive progress in information technology (IT) and IT-enabled services, both rail and road traffic, and fast addition to existing stock of telephone connections, particularly mobiles, played a key role in such growth.

Because of Globalization, the financial services industry is in a period of transition. Market shifts, competition, and technological developments are ushering in unprecedented changes in the global financial services industry. Organizations in this highly competitive and increasingly regulated industry will especially need to focus on making themselves more:

Ø      Adept to face increasing transaction volumes, regulation and the integration of previously disparate global markets

Ø      Agile at identifying and managing risk

Ø      Operationally efficient

Ø      Customer – centric

Ø      Optimized in both business & technology

In this scenario, spearheading IT initiatives has become critically important.

Major spending initiative priorities tend to focus on automation to reduce costs and lessen risk, along with using BPO to gain efficiency and allow internal IT organizations to focus on strategic initiatives. Delivery of these capabilities at a high efficiency level but at low costs is one of the major success factors for any financial services business.


The objective of the present paper is to  examine the status of Financial Services Industry in India and to study the challenges before this industry due to globalization

To enhance their competitive advantage in this changed environment, financial services institutions are increasingly harnessing new technologies to provide superior customer offerings and streamline internal processes. Today’s dynamic marketplace demands that financial services providers emphasize on technologically advanced, feature-rich solutions, that can operate in real-time and with the highest degree of precision and reliability.

Information technology is increasingly being considered as critical to the strategic direction and the day-to-day operation of financial services firms.

Growth in financial services is being bolstered by the opportunities of demography, emerging markets and ever more innovative products and services. Yet, organisations also face the challenges of mounting competition, more complex regulation and ever more exacting customer expectations. Effective growth strategies are therefore likely to cut across all operating processes and functional boundaries. Key priorities include ensuring that the business model takes full account of customers’ needs, tax, financial and regulatory considerations and the organisation’s capacity to change the way it does business. In turn, the objectives and criteria for success need to be clearly measured. 

A survey of more than 250 financial services executives carried out by PricewaterhouseCoopers in 2006, found that respondents believe that existing customers will be their main source of organic growth. Creating operations that can retain and deliver profits from customers through their lifetime will demand a significant investment in data gathering and relationship management and may therefore require a shift in the prevailing cost-income model. This includes a re-think of training, reward and performance management strategies including a move from volume-based incentives to rewards geared to client satisfaction and the profitability of the customer over the lifetime of the relationship. Success will also require timely and insightful metrics on customers’ evolving attitudes and preferences.

The  Financial Services & banking industry is changing at a fast pace. These changes are throwing up fresh challenges like managing complex technological divergence in a converging market. Banks strive to constantly offer more to the existing customer base. To achieve this, they emphasize on more targeted technology investments and high-quality service. To remain competitive, financial institutions will have to renew their commitment to investing in new technology strategically — to reduce costs, improve efficiencies, and boost revenue-generating initiatives.

Taking full note of these challenges, OFS puts together its banking practice to help financial institutions improve enterprise performance, comply with regulatory mandates, boost operational efficiency, and better serve their customers through OFS’ spectrum of solutions and services derived from proven track record of domain expertise.

The Challenges

Among the key IT challenges facing the Financial Services industry today is:

    • Preserving investments in old systems while leveraging new technologies to drive down transactions costs, expand and improve customer service
    • Integrating enterprise wide disparate systems to gain operational efficiencies
    • Substantially reducing time for deployment of new systems
    • Reducing IT costs and obtaining better ROIs for new investments in the long-term

Only a carefully thought out long-term IT strategy backed by execution, implementation and support capability can meet these challenges successfully.

Today’s financial services firms face mounting pressures on all fronts:

    • Credit markets are creating industry turmoil
    • Tightening credit guidelines that threaten revenue streams
    • Growing reporting and risk management obligations like Sarbanes-Oxley, Know Your Customer and Basel II
    • The difficulties of sustaining growth in overly-saturated markets
    • Innovative products that address the needs of a diverse client base such as retirees and young emerging and ethnic segments
    • Growing concerns over customer data security and identity management
    • Increasing competition not just from traditional competitors, but from other organizations that expand their service offerings
    • The complexities that arise from mergers and acquisitions and from expanding into the global marketplace

Whether we are trying to maintain competitive advantage, looking for ways to position our self better for mergers or acquisitions or expanding into the global marketplace, the challenges are as complex as they are varied. And while we deal with these fundamental concerns, we are met with increasing demands from investors, regulators and customers.

The AnswersHow do we succeed in this environment? The first step is to ensure that we have the infrastructure and solutions to support our business strategy. With the right systems in place, our organization can more rapidly comply with regulations, operational risk and security issues. We can also open up new product offerings, reduce customer turnover and minimize fixed costs and maximize productivity. In addition, the companies can leverage outsourcing opportunities to reduce overhead, while still enjoying the scalability they need to support future growth or new initiatives.

The process of globalization has paved the way for the entry of innovative and sophisticated financial products into our country.  Since the Government is very keen in removing all obstacles that stand in the way of inflow of foreign capital, the potentiabilities for the introduction of innovative international financial products in India are very great.   Moreover, India is likely to enter the full convertibility era soon.  Hence, there is every possibility of introduction of more and more  innovative and sophisticated financial services in our country.

Realizing all these factors, the Government of India has initiated many steps to reform the financial services industry.

Ø      The Government has already switched over to free pricing of issues from pricing issues by the Controller of capital issues.

Ø      The interest rates have been deregulated

Ø      The private sector has been permitted to participate in banking and mutual funds and the public sector undertakings are being privatized.

Ø      The Finance Act, 1992 has brought into effect large scale amendments in the tax structure of long term capital gains.

Ø      The Finance Act, 1994 has given a further boost by lowering the lock – in period from 3 years to 1 year, in order to get the entitlement as a long – term capital asset.

Ø      The SEBI  has liberalized many stringent conditions so as to boost the Financial Services Industry.

In this changed context, the financial services industry  in India has to play a very positive and dynamic role in the years to come by offering many innovative products to suit the varied requirements of the millions of prospective investors spread throughout the country.

Commodity Trading Tips, MCX Tips, Free Commodity Tips by Aurum Financial Services

Hasil gambar untuk financial servicesMONEY MARKET

Efficient financial systems are indispensable for speedy economic development. The financial system of a

country is a conglomeration of sub market, viz. capital, commodity and money market. The flow of funds in these markets is multi directional depending upon liquidity, risk profile, yield pattern, interest rate differential or arbitrage opportunities, regulatory restrictions etc. As the Indian economy gets integrated with the global economy empowered by increasingly sophisticated information and technology systems, there is an acute need for trained professionals to entrust important roles in all the spheres of the financial market activity. This study material has been designed to provide expert knowledge and understanding of various capital market instruments, commodity market products, money market instruments, key features and participants in these markets, raising capital in international market by companies etc.

“Market-Maker” means a trading member of the Stock Exchange registered as such as per the Rules and Byelaws of the Stock Exchange. A market-maker is responsible for enhancing the demand supply situation in securities such as stocks and futures & options.Market-making means infusing liquidity in securities that are not frequently traded on stock exchanges.


Financial instruments that are used for raising capital resources in the capital market are known as Capital Market Instruments. Capital Market Instruments are responsible for generating funds for companies, corporations and sometimes governments. These are used by the investors to make a profit out of their respective markets. The changes in the regulatory framework of the capital market and fiscal policies have resulted in newer kinds of financial instruments (securities) being introduced in the market. Also, a lot of financial innovation by companies who are now permitted to undertake treasury operations, has resulted in newer kinds of instruments – all of which can be traded being introduced. The variations in all these instruments depend on the tenure, the nature of security, the interest rate, the collateral security offered and the trading features, etc. While all Capital Market Instruments are designed to provide a return on investment, the risk factors are different for each and the selection of the instrument depends on the choice of the investor. There are a large number of Capital Market Instruments playing in the market namely Equity Shares, Equity Futures, Smart Options, commodity, Interest rate derivatives etc. There are some investment advisor in market who will suggest you to invest in market I know one of them (Aurum Financial Services).

Success Stories – Rajesh Sharma The CMD of Money Matters Financial Services Limited

 Mr. Rajesh Sharma – A chartered accountant by profession started a company named asMoney Matters Financial Services Limited in the year 1997 with the help of handful of employees near Fort area in Mumbai and within one decade it came out as one of the fastest growing financial service company in India.

Now things have changed so much in favor of the company that Money Matters FinancialServices Ltd. has turned out to be one of the leading experts in debt syndication, debt placement financial restructuring, financial turnaround advisory and private equity/M&A (mergers and acquisition) advisory. Money Matters Financial Services Limited also provides other financial services (along with subsidiaries) like investment banking and corporate finance advisory, private equity funding and equity broking for institutional clients and high net worth individuals.

Rajesh Sharma’s Money Matters Financial Services Ltd. is supposedly to be the debt marketing firm which along with that also provides advisory, consultancy and other financialservices to corporate and institutional clients. Greed of growth and expansion is never ending same goes with Money Matters Financial Services Limited which intends to grow its bucket ofservices related to their core debt market practice while building other business heights like investment banking and asset financing to support this practice. Money Matters FinancialServices Limited believes in punctuality and devoted service which had made them to fetch list of reputed corporate clients. Rajesh Sharma’s Money Matters also provides merchant banking and broking services with the help of their subsidiaries.

The key to the success of Money Matters FinancialServices Ltd. is based on experienced management, innovative structuring, strong relationship capital, effective execution, and diverse client base. Money Matters works closely with clients to understand their needs and always provides customized solutions for the various financial needs of clients, for which in 2010 Money Matters Financial Services Ltd has been honored with an award of “Amity HR Excellence award for performance Management 2010”, at global HR summit of Amity International.

May whatever the growth the company has achieved it’s the leader Rajesh Sharma who sailed the Money Matters ship in the ocean of success.

Financial Management Strategies: Concepts and Tactics

 It was said that: “Finance is the art of passing currency from hand to hand until it finally disappears,” how laughable, you might think, however is that even true? Finance is too important to be left only to finance specialists! In any company, the most successful managers are often those who have acquired a strong appreciation and mastering of financial concepts. One of the most crucial topics of finance is to learn about financial strategy. In order so you know how significant this topic is in the field of finance, you may need to ask yourself a similar question: Do you think the organizations handing out bad loans, buying securities of bundled bad loans, and selling credit default swaps had a well-thought out financial strategy for business success? Of course not! This paper is intended to define what is exactly meant by financial management strategy, what role it holds in a successful business and finally a few tricks that enable your organization to achieve the best financial strategies ever!

Obafemi Toriola, freelance writer and business consultant, explains his views on the topic of financial management by saying: “Strategic financial management is basically about the identification of the possible strategies capable of maximizing an organization’s market value. It also encompasses the implementation and monitoring of the chosen strategy so as to achieve agreed objectives.” In simpler words, it is a set of best practices that ensures that funds are committed and raised only when they enhance shareholders values. Many processes are involved, but the key element here is Decisions Making. The key decisions falling within the scope of financial strategy include financial, investment and dividend decisions. A good finance should take the initiation and create a clear financial strategy, because no financial strategy means a strategy for failure. 

Today’s economic climate calls for executives who can apply various financial analyses as they evaluate business performance, weigh potential acquisitions, and assess global competition. So, how would you create an innovative financial system for your own interest? First of all, it will have to be focused upon improvements and success. Financial control systems shouldn’t just be about compliance, they should be about continually improving key aspects of the financial operation. Second, you also might be interested to find ways to measure the financial performance in your company, ways to manage growth with less exposure to financial risks, or/and other ways to enhance shareholder value in the market. A third, in the position but not in the importance, is to set a policy that will ensure that all the key elements involved are consistent with strategy and the risk appetite of the firm and its shareholders. 

Madinah Institute for Leadership & Entrepreneurship (MILE) is pleased to give a detailed course on Financial Management strategy in its second executive education program; PALM2 (Program for Advanced Leadership & Management). Mr.Rafael Vinas, a senior instructor from the Globecon Group, will be in charge of explaining this topic to the participants. This course will help you to acquire the analytical tools and financial skills to position your company for growth and profitability. This training is a part of other wild range of training modules and workshops in the field of business and management. The PALM2 program will be commencing January 15th and ends January 27th, 2011 and will be held in Madinah, Saudi Arabia. For effective financial decision making and impeccable financial management join PALM, the most comprehensive leadership development coaching and executive leadership training in the Middle East.

Accounting Courses- Learn How to Create a Successful Career in Finance

 A question that most of the people who are good at numbers ask at one time or the other is- How to become an accountant? After all the job of an accountant not only pays well but their services too are always in demand. 

As we all know, money makes the world go round! But these are accountants who manage the money! No business can exist without cash flow and neither can it survive if the inflow and outflow of cash is not recorded or managed appropriately. Accountants are the people responsible for ensuring that companies and businesses carry out all financial obligations relating to statutory payments and maintain records of all financial transactions. A good accountant will maintain records to give an accurate picture of the business’ health to the all the stakeholders.

There is a wide range of accounting courses available in educational institutes across Melbourne which provide students with the opportunities that are necessary to form a successful career in accounting. The beauty of these programs is that education provided through these programs is applicable in a wide variety of professional situations. Recently, a number of educational organisations have come up in Melbourne, which are dealing with accounting and providing a number of programs to train students in this career.

The courses and programs being provided by these organisations are being developed so that needs of the international and domestic market could be satisfied. These needs are changing every day and this is placing a lot of strain on the accounting professionals. As a result of these ever increasing and ever changing demands, the accounting people are being forced to update themselves. Now with the advent of a plethora of accounting programs andcourses in various educational organisations, grounds are being made to ensure that students are well prepared to take up the challenges, that present themselves throughout the career of an accountant.

As far as Accounting courses in Melbourne are concerned, the students are provided with the opportunity to choose their favourite fields. After choosing, the students are then provided with the training that is ideal with respect to their chosen areas of accounting. Some of the areas touched in these programs are bookkeeping and spreadsheets. 

If you have considered becoming a chartered accountant now is the time to consider making the move and completing an undergraduate business degree. Accounting courses can provide students with a solid grounding in all areas of accounting and finance, including financial accounting, assurance, audit, taxation, law, corporate finance and financial management; all core areas that professionals encounter in business on a daily basis.

The accounting courses and programs offered in various educational institutes cover a wide variety of subjects like certificates, masters degrees, associate diplomas, master of business administration programs, advanced diplomas, doctorate studies and bachelors degrees. Both theoretical and practical programs are provided but these provisions depend upon the particularities of the program like level of study and other requirements. The modern approaches to accounting are also taken into awareness in the accounting programs, provided by the universities and other educational institutes of Australia.

Hire Financial Planning Services in Caringbah

 Every company, whether small scale or large scale requires financial planning to squeeze out every drop of juice from the available financial resources. A greater weightage has to be paid during the start-ups as most of the resources are wasted during the time.

Hire CPAs or Financial Planners

Managing all by himself or herself will not be the wisest decision one will make, which is the most common thing entrepreneurs do. To do the job, it is highly recommended to hire CPA Accountants in caring bah or Financial Planners in Caring bah.

You read that right. These surely will make a slice in your budget, however, keeping in mind the benefits you will enjoy at the end; this investment is not much of a burden on the revenue of business.

Benefits of hiring an Accountant or Financial Planning Firm

There are many benefits attached to hiring an accountant or financial planner for your firm:

• In the initial stages of business

The accountant of financial advisor will be able to guide you through the problems you will face in the initial stages. In addition, he or she will be able to help you manage resources and profits of your business.

• In the expansion time

The accountant of financial advisor will be able to help you make decisions effectively related to which assets you shall acquire, how to get rid of the liabilities and so on. These factors are major players in the expansion of the business and therefore are to be carefully administered.

• Other benefits

Managing inventory and reducing the overall expenses, helping decided which costs should be cut, managing sources of funds. Informing you the latest changes in financial industry, reducing interest rates, keeping a check on the financial condition of the firm using accounting tools (such as cash flow statement,balance sheet and ratios) and many more can be counted as benefits attached with the firm.

Getting a CPA or Financial Planning Firm

There are a plethora of CPA accounting firm in Sutherland and in the area. One needs to just lookout for them in via any of the means mentioned below:

• Internet: The former is a vast source of information, where anything can be looked. Being no exception to the list; one will be able to find out Financial Planning in Caring bah. Just search for the term ‘financial planners’ followed by the area of concern. From the search results, use any result to find the contact number of firm.

• Local Daily: Under the finance sector of local daily or classified advertisement, check for any posting related to financial planners in the area. Often, many financial planners create an advertisement and publish them regularly to attract new clients.

Verdict on Accounting and Financial Planning

Every company, whether small or large scale shall hire a financial advisor or accountant to help manage the business resources effectively and efficiently. A company will be able to expand only when the financial resources and all are managed in such a way that costs do not create a liability on the business.

What does Financial Management include?

 We know what is financial management. It’s a personal decision in making wise choices about our cash. Financial management involves a lot of areas. Here, I list out 5 of the most important areas that you should know.

These are the main areas you should concentrate because it is these areas that we either mismanaged our money, or it will enable money to work for us.

The following are the key areas that you should look at:

Cash flow management

This involves assessing your current net financial net worth (what you own minus what you owe). This should generally tell you whether you are on your way to financial freedom or financial disaster.

In short, most financial experts would advise you to keep a high savings and this should be your MAIN PRIORITY in financial planning.

Investment planning

Once you have decided the amount of money you would like to save, you should consider where to put your savings with the aim of getting a higher returns than your normal savings account.

Forget the 2% p.a. interests for saving. You require something more sophisticated than that! At a minimum, you should go for fixed deposits. Otherwise, a good investment program will be nice.

Insurance planning

Insurance planning is required to in ensure that all your properties are protected and that your family members are well protected by having enough insurance coverage.

Tax planning

The topic of tax planning affects everyone who receives income, yet it is an area that is mainly forgotten or forgotten by most individuals. Therefore, this area involves strategies making the most under the local tax regulation in the area of your income, stocks, real estate, and property.

Retirement planning

You are not going to toil your whole life, are you? When old age symptoms begin to kick in or you have reached the mandatory retirement age, you will want to retire. There is no choice.

Therefore, having a retirement plan regardless of of your age is essential! You wouldn’t want to be forced to go back to work due to lack of money!

Estate planning

Having an estate plan or a will shall ensure that your wishes for the future are carried out. In addition, an estate plan or a will can supply financial protection for your family, ensure your property is preserved and keep off dispute among family members.

The above are just 5 of the many other financial decisions. It is important to take note of your above 5 becasue they are mainly responsible for your financial success or failure.

Importance Of Business Finance

 Business finance is solitary of the majority of the essence aspects of running and maintaining a concern 

. Finances dictate the victory or failure of a concern. If a concern holder does not appropriately keep their concern finances it follows that they will soon investigate problems occur. Business finance is something with the purpose of all concern holder be obliged to deal with and understand.

Part of concern finance is setting up proper cash stream. A concern holder needs to obviously describe their accounts receivable and accounts payable. They need to keep a steady and balanced cash stream next to all epoch. This resources they be obliged to not at all consent to your accounts payable exceed their accounts receivable in one agreed month.

A concern holder be obliged to and carefully cope their debt. They be supposed to not at all consent to their debt develop too high ranking or prohibited of control. They be supposed to keep regular payment schedules to ensure they get something done not fall behind on repaying one debt.

Keeping fair and concise records is exceedingly of the essence to keeping concern finance under control. A concern holder be supposed to either hire a proficient or manage a number of type of accounting workstation software to keep accounting records.

It is of the essence on behalf of a concern holder to keep a concern financial plan, much like they would on behalf of their household. This will help them ensure they are keeping track of all the money advent in and on offer prohibited of the concern. This is a nice method to steer clear of getting too much debt.

Proper make a recording keeping can and help prohibited be supposed to the concern holder need to develop a give somebody an advance of. Lenders have a preference to suffer records to refer to what time making a decision on a give somebody an advance of, especially on behalf of a concern. Businesses are seen as risky as they can without difficulty fail. Lenders like to investigate attestation with the purpose of they concern is burden well or next to slightest a forecast with the purpose of shows considerable attestation the concern will get something done well. This is come again? Nice make a recording keeping does.

Business finance is something many group perform not think too much something like after first a establishment. This is why so many businesses fail. When a establishment is absolutely first up lenders like to ensure a skilled establishment map in place, as well as a monetary map. This shows the establishment possessor is really understanding all to is involved with taking a establishment winning.

Every establishment possessor ought to take their establishment finances in mind on all period. Money is the biggest indicator of star in establishment, so it makes get the impression instead of to be individual of the top priorities of a establishment possessor. For proper establishment finance a establishment possessor ought to assert records instead of all of the money obtainable in and imminent outmoded of the establishment. They ought to track all sum unpaid and money payable to the establishment, as well. By practicing skilled establishment finance, a establishment possessor is obtainable to be individual step closer to ensuring their establishment succeeds.

A Closer Look on Financial Planning, Superannuation Advice and Accounting Services in Ivanhoe

 Financial planning as most people think is not merely investing but is a process. This process will allow a person in managing their finances in a way that they can link it to their goals. In fact to make a standalone investment for instance in life insurance schemes will mean nothing if the person is unaware of the total cover they require or whether they require a life cover or the maturity proceeds will be adequate. The financial planning process will help one answer three questions. Firstly, where a person is today, that is, their present personal balance sheet, secondly, where they wish to be tomorrow which means the finances that are associated to their goals and thirdly, what they should do for getting there which means the investment strategy and asset allocation that will aid them achieve their objectives. 

Financial planning and its different areas

Financial planning in Ivanhoe is given much importance. In fact this process has six crucial areas and all of which are interrelated. The affect on one will impact the other. These areas include,

  • Goal settings– In the financial planning process, a person can begin with his financial goals setting. It is good to make the goals realistic to make the same achievable and for setting a realistic goal, one should be aware of his financial situation as well as their future financial ability. Check all the vital documents like car loan contract, fixed deposit, mortgage agreement and so on. Based on this information a person shouldmake a list of their assets and current debts as well as make a projection regarding their future incomes.
  • Tax planning– The tax planning goal is for helping one maximize their income tax liability while also saving for retirement.
  • Risk management– Using insurance is a common method for risk management. Insurance indeed is an effective financial product which will offer a person piece of mind. Insurance companies will help if a person suffers a loss. In fact insurance coverage for life, sickness, disabilities and assets is a crucial component that one should include in their financial planning process for minimizing the risk of loss.
  • Retirement planning– Retirement planning should start with one’s first job. They need in figuring out the amount they wish to save the sooner the better to reach their retirement goals later. Planning for retirements is never early.
  • Estate planning– The journey of one’s life will come to an end one day. Hence it is important to protect their assets and have things in order for their family whom they will leave behind later.
  • Investment planning– During the financial planning process, a person should think ways of increasing their asset net worth as well as achieving their financial goals with exactly what they have at present. Every investment has risks; hence a person should have a knowledge of how much risk they should take with their investment for achieving their goals. 

The need for superannuation advice

For people who think regarding their retirement and financial security nonstop should take the benefits ofsuperannuation advice in Ivanhoe. Doing it will allow a person in making a stable investment thereby, helping in saving heaps of cash in case of tax. Besides they can also manage their monetary future when they buy a land with superannuation.

Besides, if a person desires in running his business smoothly and properly then hiring a professional that offers accounting services in Ivanhoeis important for handling the business finances. These accountants will make them stress-free via their quality work. To top it all they are aware always about the latest tax and accounting laws.

Goals Of Corporate Financial Management-Some Thoughts

 There is a multiplicity of goals of management. Wealth maximization is a wholesome goal. Maximization of profit, profitability, liquidity and solvency are other goals. But these are sectional and fragmented. Similarly, minimization of cost of capital, risk and dilution of control address particular aspects. Well, all these put together throw much light on the whole gamut of management as such. Now, maximization of economic value is added to the list of goals of management.

Further more, the goal of the management should be to achieve the objective of the corporate owners, who are the suppliers of capital, namely shareholders. The finance manager’s function is not to fulfill his own objectives, which may include higher salaries, earning reputation or maintaining and advancing his personal power and prestige. It is, rather, to the extent manager is successful in this Endeavour, and he will also achieve his personal objectives. It is generally agreed that the financial objective of the firm should be the maximization of owner’s wealth.

However, there is disagreement as to how the economic welfare of owners can be maximized. Two well known and widely discussed criteria which are put forth for this purpose are: (a) profit maximizations, and (b) wealth maximization.


Traditionally, the business has been considered as an economic institution and profit has come to be accepted as a rationally valid criterion of measuring efficiency. In support of this contention, the following arguments are usually put forward:

(i) Profit is a prime motive or main incentive which paves the way for better and more efficient performance. It is a reward for entrepreneurial ability. Persons or groups of persons compete with one another and work hard in order to excel others in giving better and more efficient performance simply because they are attracted towards earning more and more profit. This promotes enterprising spirit and leads to economic development of the society.

(ii) Profit is not only an objective, but also a criterion or measuring-rod of efficient management. In this way it is both a goal as well as a measure of good performance. The degree of success or failure over a period can be tested on the basis of the degree of profitability in a company.

(iii) All business decisions are taken keeping in view their probable impact on profit. Thus, it has become a part of the decision-making process.

(iv) In a society or in a business enterprise efficient allocation of scarce resources and their judicious utilization are possible on the basis of profit criterion. Resources flow from low profitable ventures to high profitable ventures.

(v) In a society which is devoid of profit motive or incentive, there will be no place left for mutual   competition   to excel one another in efficiency,   skill   and competence. In such a situation the pace of growth and progress is bound to slow down.

Limitations: As a goal, however, profit maximization suffers from certain basic weaknesses: (1) It is vague, (2) it is a short-run point of view, (3) it ignores risk, and (4) it ignores the timing of returns. An unambiguous meaning of the profit maximization objective is neither available nor possible. It is rather very difficult to know about the following: Does it mean short-term profits or long-term profits? Does it refer to profit before or after tax? Does it refer to total profits or profit per share? Besides it is being ambiguous, the profit maximization objective takes a short-run point of view. Prof. Ducker and Prof. Galbraith contradict the theory of profit maximization and observe that exclusive attention on profit maximization misdirects managers to the point where they may endanger the survival of the business. Prof. Galbraith gives the following points to argue his line of reasoning: (1) it undermines the future for today’s profit; (2) it short-changes research promotion and other investments; (3) it may shy away from ‘any capital expenditure that may increase the invested capital base against which profits are based, and the result is dangerous obsolescence of equipment. In other words, the managers are directed into the worst practices of management. Risk and timing factors are also ignored by this objective. The streams of benefits may possess different degrees of certainty and uncertainty. Two firms may have same total expected earnings, but if the earnings of one firm fluctuate considerably as compared to the other, it will be more risky. Also, it does not make a difference between returns received in different time periods, i.e., it gives no consideration to the time value of money and value benefits received today and benefits after six months or one year.

For the reasons given above the profit maximization objective cannot be taken as the objective of management. It can be stated that the appropriate operational-decision criterion should include: (i) It must be precise   and   exact,   (ii)   It   should   consider both   quality   and   quantity dimension, (iii) It should be based on the bigger and the better principle, and (iv) It should recognize the time value of money. For these reasons, wealth (value) maximization has replaced profit maximization as an operational criterion for management decisions.

Consider the example of three business units making profits over three years given below


Unit – 1

Unit – 2

Unit – 3




















From the above table, it is clear that all the business units making profits of six lakh rupees.  But evidently unit – 2 is the best of three, followed by unit – 1 and unit – 3. Hence profit maximization is not accepted as a flawless goal, since it might lead to unfair means adopted and time value of money is not considered.


The maximization of wealth is a more viable objective of management. The same objective, if expressed in other terms, would convey the idea of net present worth maximization. Any action which creates wealth or which has a net present worth is a desirable one and should be undertaken. Wealth of the firm is reflected in the maximization of the present value of the firm i.e., the present worth of the firm. This value may be readily measured if the company has shares that are held by the public, because the market price of the share is indicative of the value of the company. And to a shareholder, the term ‘wealth’ is reflected in the amount of his current dividends   and the market price of share.

Ezra Solomon has defined wealth maximization objective in the following manner: “The gross present worth of a course of action is equal to the capitalized value of the flow of future expected benefits, discounted (or capitalized) at a rate which reflects the certainty or uncertainty. Wealth or net present worth is the difference between gross present worth and   the amount of capital investment required to achieve the benefits.”

What about a public sector firm the equity stock of which, being fully owned by the government, is not traded on stock market? In such a case, the goal of management should be to maximize the present value of the stream of equity returns. Of course in determining the present value of stream of equity returns, an appropriate discount rate has to be applied. A similar observation may be made with respect to other companies whose equity shares are either not traded or very thinly traded.

From the above clarification, one thing is certain that the wealth maximization is a long-term strategy that emphasizes raising the present value of the owner’s investment in a company   and the   implementation of projects that will increase the market value of the firm’s securities. This criterion, if applied, meets the objections raised against the earlier criterion of profit maximization. The manager also deals with the problem of uncertainty by taking into account the trade-off between the various returns and associated levels of risks. It also takes into account the payment of dividends to shareholders. All these ingredients of the wealth maximization objective are the result of the investment, financing and dividend decisions of the firm.


The matter is further complicated by the fact that management may in practice have other objectives either instead of, or as well as, that of profit maximization. A few   possibilities are given below.

(a)Growth: The maximization of profit does not necessarily require a firm of large size. Corporate power, however, is often a function of size and this may become a management objective. Non-profit making organisations, such as mutual assurance companies and building societies, where the profit motive cannot operate, often adopt pure growth as an objective.

(b)Risk reduction: Many potentially very profitable enterprises also carry a high risk of expensive failure. Prospecting for oil, for example, is very profitable if a rich strike is made but ruinous if the exploration proves abortive. It may, therefore, be a management objective to ensure survival by the avoidance of risk, profit becoming a secondary objective.

(c)Personal aspirations: People who obtain senior positions in
management are likely to be highly motivated towards their own career
objectives. Important objectives for a manager may therefore be the
improvement of his own salary, career prospects or security. This may mean a desire for quick results which will stand to the immediate credit of the manager involved as against more solid but longer term profit making objectives.

(d)Social objective: Some organisations adopt an altruistic social purpose as a management, objective. Thus they may be concerned to improve working conditions for their employees, to provide a wholesome product for their customers or to avoid anti-social actions such as environmental pollution or undesirable promotional practices.

(e)Efficiency: Some enterprises, such as charities or public services, have as a fundamental objective the provisions of a required service which is not supplied in the marketplace. A suitable management objective for them is the provision of the service at minimum cost.

(f) Orderly liquidation: A firm will sometimes reach a point where it is appropriate for it to go into liquidation. This may be forced on it by a crisis or a failure of its commercial viability or it may be undertaken voluntarily because the purposes of its original foundation have ceased to exist. In either case, once the decision has been taken, the objective of management will be to operate the business until its demise so as to balance the conflicts of interests of employees, shareholders and customers, to fulfil contractual obligations, e.g. to pay creditors and debenture holders, and to bring a tidy conclusion to all outstanding matters.

Where a particular management action has implications for more than one objective, a view must be taken as to the balance to be struck. For example, the objective of the maximization of profit may be in conflict with the objective of minimizing risk. The judgment to be made is subjective and, therefore, not susceptible to analysis although it is usually made by   reference to some explicit or implicit overall corporate objective.

Benefits If Hiring Best and Efficient Payroll Services in Fort Lauderdale

 Individuals who are considering procuring payroll or accountancy services must read the whole article as it gives them a chance to snatch a brilliant chance to get some significant insights about its few points of interest. The truth can’t be denied that each no matter big or small enterprise really confronts numerous troubles in representatives’ finance preparing as it is tedious and complicated task. It additionally gives them a chance to manage a few undertakings like pay estimation, government advantages, withholding charges, medical advantage commitment and some more. This is something that really prompts a substantial number of business visionaries to outsource the payroll services for qualified professionals in order to diminish the cost furthermore work heap of their staff.

It is broadly observed that outsourcing Payroll Services Fort Lauderdale not just helps the one in getting a peaceful life but additionally diminishes the expenses to in-house services. In fact, one can save upto half of the aggregate costs that incurred by spending on employing in-house finance services. Aside from this, it undoubtedly diminishes your endeavours in performing some challenging tasks, for example, purchasing the product that is utilized for this service, arrangement of a payroll supervisor, and some more. In this way, utilizing the benefits of payroll services is an awesome thought that gives you a chance to spare your valuable time that can be spent on some different sectors of your business that should be engaged and consequently it helps you in making your commerce very dynamic.

Investigate certain favourable circumstances that you are qualified for profit, once you enlist the said services.

  • Get extra time to build up some other imperative exercises: It is said to be the most conspicuous reason that truth be told assumed an urgent part in making the finance benefits exceptionally famous among a substantial number of individuals. It is undoubtedly a period sparing alternative furthermore helps you in sparing your assets as well, which can be better used for some centre exercises for the purpose of prosperity of your business. The agency offering Accounting Services Fort Lauderdale wholesomely worried about assuming a prime liability of dealing with any-finance related undertakings.
  • Reduces your anxiety: As stated over, the above mentioned services help you in diminishing your anxiety, while offering various points of interest.
  • Disregard punishments: The reality can’t be denied that government formaccommodation is a very long process and it additionally needs you to pay wholesome cash. You can absolutely maintain a strategic distance from this using so as to thing outsourcing finance services.
  • Reduce operational costs: Hiring an outsourcing finance benefits in fact avoids you utilizing any finance staff. In this way, it diminishes your operational expenses.

Grow Your Wealth With The Help Of Online Financial Planning

 We all want to make more and more money and we also know that in order to make more money, we have to have our finances well planned. Some individuals who can afford to hire financial advisors for the same, go for it but there are many who can neither afford expensive financial planners nor want to do so because they like to take a charge of their finances all by themselves. Such people look for some basic guidance but keep wandering around in the hope of getting somebody who can guide them. But now there is a new hope of for such people and that hope is the advent of online financial planners. These online financial planners offer high quality financial advice to individuals, irrespective of their income. They help clients set realistic goals and create customized portfolios that help in achieving financial goals. Such companies invest heavily in technology so that they can give the best service to their online clients. Their online financial planning software replaces the traditional human financial advisor by making holistic and high quality financial advice accessible to everyone in India.

Online financial planning companies offer diversified portfolio for investments. They also offer recommendations on life goals, insurance, loans, expenses and tax. Their client list includes individuals, families, non-resident Indians and business entities. One benefit of dealing with online financial planningfirms is that there is no minimum investment limit. The client can start with any amount he or she has which is very unlike traditional, full-service financial planners that give more weightage to wealthy clients. Also, there are no hidden charges. Most of the online financial planners take a one-time fee for a year or so. They believe in bringing the real difference in the way financial advice is delivered in India. All the personal income data provided by clients is kept completely confidential and safe. In case there is any involvement of the third party for the execution of financial plans, the service provider makes sure that the client knows about it and has given the permission for sharing his or her income details to the third party.

To conclude, online financial planning is a great idea and it especially suits people who use technology on a daily basis for work and personal reasons. People who don’t have time to go to financial planners’ offices or people who can’t afford personal advisors, they all can switch to online financial planning which is much more convenient.

Problems and Difficulties in Capital Budgeting

Problems and Difficulties in Capital Budgeting

*Dr.P.Shanmukha Rao  **Dr.N.V.S.Suryanarayana

Capital Budgeting may also be defined as “The decision making process by which a firm evaluates the purchase of major fixed assets. It involves firm’s decision to invest its current funds for addition, disposition, modification and replacement of fixed assets.

“Capital budgeting is concerned with allocation of the firm’s scarce financial resources among the available market opportunities. The consideration of investment opportunities involves the comparison of the expected future streams of earnings from a project with immediate and subsequent streams of expenditure for it”. The problems in capital budgeting decisions may be as follows:

a)     Future uncertainty: Capital budgeting decisions involve long term commitments. However there is lot of uncertainty in the long term. The uncertainty may be with reference to cost of the project, future expected returns, future competition, legal provisions, political situation etc.

b)    Time Element: The implications of a Capital Budgeting decision are scattered over a long period. The cost and the benefits of a decision may occur at different points of time. The cost of a project is incurred immediately.  However, the investment is recovered over a number of years. The future benefits have to be adjusted to make them comparable with the cost. Longer the time period involved, greater would be the uncertainty.

c)     Difficulty in Quantification of impact: The finance manager may face difficulties in measuring the cost and benefits of projects in quantitative terms. For example, the new products proposed to be launched by a firm may result in increase or decrease in sales of other product proposed to be launched by a firm may result in increase or decrease in sales of other products already being sold by the same firm. It is very difficult to ascertain the extent of impact as the sales of other products may also be influenced by factors other than the launch of the new products.

Assumptions in capital budgeting:

The capital budgeting decision process is a multi-faced and analytical process. A number of assumptions are required to be made. These assumptions constitute a general set of conditions within which the financial aspects of different proposals are to be evaluated. Some of these assumptions are:

  1. Certainty with respect to cost and benefits: It is very difficult to estimate the cost and benefits of a proposal beyond 2-3 years in future. However, for a capital budgeting decision, It is assumed that the estimates of cost and benefits are reasonably accurate and certain.
  1. Profit motive: Another assumption is that the capital budgeting decisions are taken with a primary motive of increasing the profit of the firm. No other motive or goal influences the decision of the finance manager
  1. No Capital Rationing: The Capital Budgeting decisions in the present chapter assume that there is no scarcity of capital. It assumes that a proposal will be accepted or rejected on the strength of its merits alone. The proposal will not be considered in combination with other proposals to consider the maximum utilization of availablefunds.

The next step in the capital budgeting process is to various proposals.  The methods, which may be used for this purpose such as, pay back period method, Rate of return method, N.P.V and I.R.R etc. The project should be accepted if NPV is positive it should be clear that the acceptance rule using NPV method is to accept the investment project if its net present value is negative (NPV CASH OUTFLOW).  The positive net present value will result only if the project generates cash inflows at rate higher than the opportunity cost of capital.  A project may be accepted in NPV = 0.

The internal rate of return (IRR) method is another discounted cash flow technique, which makes account of the magnitude and timing of cash flows. Others terms used to describe the IRR Method are yield on investment, marginal efficiency of capital, rate of return over cost, time adjusted rate of internal return and so on. The concept of internal rate of return is quite simple to understand in the case of one-period projects. The IRR is calculated by interpolating the two rates. The accept project rule, using the IRR method, is to accept the project if its internal rate of return is higher than the opportunity cost of capital (r>k) note that k is also known as the required rate of return or cut-off rate. The project shall be rejected if its internal rate of return is lower than the opportunity cost of capital.

The project study is undertaken to analyze and understand the Capital Budgeting process in power sector, which gives mean exposure to practical implication of theory knowledge. To know about the company’s operations of using various Capital Budgeting techniques. To know how the company gets funds from various resources.

The financial management is essentially concerned with the planning and   controlling of the financial resources of a firm. It expresses the procurement of funds along with their efficient use in order to maximize the firm’s benefit. The assets have two broad classification viz.

Benefits of Supplier Financial Risk Assessment for Companies

 Suppliers are indeed the lifeblood of organizations. Regardless if you are providing a product, service, or a combination of both, you are likely to depend on contractors, vendors, and suppliers fulfilling their contracts and working according to your agreements. Companies and suppliers maintain a symbiotic relationship. However, the same mutual reliance introduces risk to business. A study that surveyed 209 companies with global footprint found that disruptions within supply chains lead to a 3 percent or greater drop in the financial performance of businesses. Some 60 percent of the respondents noted this kind of supply chain trouble. There is, however, a way to minimise the risks introduced by these third party partnerships and this is through supplier financial risk assessment.

Gathering and monitoring key financial aspects and essential information such as revenue, continuity plans, financial references, and third party ratings of contractors and suppliers will help organisations minimise and augment inevitable risks that come with business-supplier partnerships.

The level of risk that suppliers introduce to companies largely depends on the type and the volume of goods or services being supplied. This said, some suppliers and contractors may be more critical to your operations than others that only play a small role, and thus present less of a threat to your operational continuity.

Supply chain disruption due to supplier failure can lead to a wide range of issues and can cause a domino-effect (chain reaction) of consequences, ranging from compliance issues to loss of productivity, consumer dissatisfaction, and overall reputational damage. It is for these reasons that assessing supplier financial stability is critical to minimizing your financial risk. By understanding where your partners’ potential vulnerabilities and financial weaknesses lie, you can be better equipped to manage each and minimise the risk of damage to your company.

A supplier’s financial health deteriorates because of their inability to grow revenue, low profitability, liquidity issues, dependence on specific consumersegments, and solvency issues. Assessing these kinds of financial risks can help you minimise them and at the same time increase business confidence with each brand new project that comes your way. To assess the financial stability of your third party suppliers, it is critical that you pursue in-depth research and gather relevant data on important aspects of their financial health, ranging from their annual revenue to their financial references, business continuity plans, credit ratings, debarment searches, legal searches, and mergers and acquisitions. Assessing risk is critical to making important business decisions, and if you don’t know where to start, it is best toconsider third-party assessment solutions to ensure the financial stability of your partners withot straining your firm’s resources.

Three Ways To Obtain Business Finance Money

 Business finance money is a necessity for the beginning small business as well as the large, thriving corporation and practically every type in between. Every company has to address the issue of where they are going to financial resources they need to maintain their operations. A brief consideration of the question yields at least three primary answers to the dilemma that most businesses will face. It should be instructive to highlight these ways briefly so that you have a better idea of what is involved. 

First, one of the most obvious ways bigger companies obtain financial assistance is through selling shares in their companies on the stock exchange. This also called equity financing. This option not only handles some of the pressing monetary needs of the company by receiving money from each shareholder when they purchase shares. Each shareholder then has an interest in the company and is paid interest the shares they bought. This interest is called dividends. 

Businesses can also use debt financing. This method is simply another way of saying that you must seek business finance money by borrowing it from outside financial institutions like banks and credit unions. This form of financing is common with businesses of all types and sizes. A business will most likely some sort of loan to in the beginning since useable capital may not be readily available to the investors, entrepreneurs, or proprietors. Debt financing via loans is by far the most common of all types of financing. There is another type of debt financing that is not always considered when search for business finance money.

Debt financing can involve the issuance of bonds. While bonds are similar to stocks that are issued by companies, bonds are counted as liabilities to the companies since they are like getting loans from investors. At the same time, investors are the ones who typically choose bonds since they are less risky to invest in than stocks. Bonds provide a set interest rate that is paid to the investor while the principle is protected even if all else is lost to changes in the market. Basically, the company issues a set number of bonds and if all are purchased, they get that money up front to use for the pre-determined purpose then they will have to pay the investors back for their assistance. 

These methods of financing are the basic three methods used by most companies to obtain business finance money, but with some risk involved.

A Stepping Stone towards Business finance with QuickBooks Tech Support Phone Number

 In advanced modern days, business entrepreneurs are using advanced technical and featured software tools to keep their business world efficient, well versed business and profit gaining. The latest market trends is full of amazing techniques and advanced tools that help a lot in business growth and functioning almost all features of a corporate business world. QuickBooks as known accounting software is collection of secretarial beneficial software that deals business entrepreneurs the chance to attain all of their bookkeeping softwarerequirements. Many of the featured functions and successive progressive options that are considered in this package are mystifying and exceedingly unprecedented for the entrepreneurs to work over and reform for their corporate that is why the turn to professional advices and recommendation. Defining which professional expert to exploit can actually be quite hard to consider.  

QuickBooks software program is authorize training and counsel program to learn how to take advantage of extremely advanced functions and distinctive attribute of QuickBooks software.Business man should initially feel certain that any skilled professional considered is fully authorize by QuickBooks software. The known software companies have full extensive information about training programs that experts are able to take a part in to increase their skills and be esteem as a ProAdvisor upon completion. Most dedicated professionals promote this suggestions which is advantageous in being able to ensure their skills are corporative and fully effective as needed. Get whole ideas using help of QuickBooks Tech Support Phone Number for your purchased QuickBooks Accounting Bookkeeping software.

QuickBooks ProAdvisor program contains Information as follows-


This innovative feature provides online Bookkeeping to help your online customers. The features avails online bookkeeping professionals who can give instructions you to handle your customers live on web.


Authorized tutorials and training Programs offered to make awesome understanding about QuickBooks software features and characteristics of QuickBooks accounting software that you can become a QuickBooks professional expert.


Get online live support using chat messengers to provide solutions regarding   your queries and problem. This is the best way to get solutions of your entire queries and whenever you require. With QuickBooks Payroll Support Phone Number to get ideas about your QuickBooks accounting software.


The advantageous authorized your skills and provides a stage that is ProAdvisor site to getregistered and spread your knowledge with QuickBooks Accounting software. This facility provide you to explore your experience about QuickBooks.

  • Organized Service delivered from the experienced should create innovative as well.
  • The kinds of features proposed from experts are mostly grounded on the need to ensure that any process of support being required later is preferably suitable for actual need of entrepreneurs.
  • Imitate or straight choices are the most collective and both can be pretty useful in making decisions efficient.

The complete package of QuickBooks technical software help should be concern if it suits the expenses. Recompense for skilled professionals supervision is really tough for business entrepreneurs to arrange on their limited fund. Cost effective professionals who provides sensational advice and solutions support their clients to manage their financial plan in efficient manner. However, QuickBooks Proadvisor Support Number for your any technical issues regarding QuickBooks software handling.

Financial planner roles

 In anyone individual’s life their financial position is very important. Finance today does not necessarily means earning & saving. There goes lots of indepth research & implementation. It requires a professional financial planner with in depth knowledge government taxes & reforms, insurance, medi claim, savings, etc;

Here are the details of how financial planner should go about:-

Knowledge about income:

Before you can work on savings & spending, knowing about the income is very important. Income doesn’t necessary means fixed salary for individuals that they earn through jobs. It also includes the returns they earned through earlier investments, etc.

Individual’s expenses idea:

There are 2 types of expenses individual knows about and can share it with financial planner; basic daily expenses & expenses for occasions if any. Financial planner needs to draw down all of them.

Suggestions on how to spend:

After getting through the individual’s financial situation and the anticipated expenses, planner needs to plan for the spending. The role of planner is to suggest individuals things they need to avoid and how they can cut down their budget for all the things that are necessary to have. For example, individuals can avoid using Uber and instead use OLA for transportation which is comparatively cheaper and still provides the same service.

Planners even need to plan with long term goals. Consider the example of wedding for that. For a wedding, clothes can be brought on two basis; rent or purchase. Clothes brought 10 times on rent might cost around 30,000/- and clothes purchased can be used 15 times and might cost around 25,000/-. Usually what individuals might think is that they just need to pay 3,000/- the planner needs to make them understand that they would actually be paying 30,000/- for 10 occasions if they get it on rent whereas buying the clothes would cost 25,000/- for 15 occasions.

For suggestions, planner needs to plan consider government policies. For example there are various restaurant that charges taxes but there are few equally quality restaurants as well who doesn’t apply any taxes. So planner can suggest individuals to go for those restaurants and thereby saving taxes completely.

Planning the Savings:

One never knows where life takes him tomorrow. He/she may not have any job in hand tomorrow. Healthcare, unexpected occasions, are things that individuals don’t plan for. Financial planner needs to explain individuals how saving money would help them in critical situations. Besides these unexpected situations, planner also needs to suggest saving for their kids life, home (if they don’t have any), etc. There are many companies that offer various products for investment. Each of them have their own USP’s and disadvantages compared to each other. For example in mediclaim; some have advantage of claim settlement ratio while some other mediclaim company may have the highest network hospitals for cashless operations. Besides mediclaim, some investment needs taxes while some are tax free due to government policies.

Quarterly auditing:

Auditing is usually a heart attack term for individuals but is auditing the plan is equally important as planning.

Life doesn’t always go as per plans and hence auditing. A quarter after planning, one’s expenses may have out of plans. Hence the planner needs to revise the plan dues to over expense in the 1st quarter itself.

Working Towards Your Financial Goals With A Personal Financial Planner

 For clients that haven’t worked with a financial advisor before, the assumption is often that everything starts with investments. What funds to buy, when to buy and how much to invest are typical questions. Since most financial commentary is centered around investing – and because many non fee-only planners make their money from investments – it’s easy to understand why consumers might think that’s where the planning process starts. In our view, though, financial planning starts with establishing a robust financial framework and only once that framework is in place do we turn to a discussion of investments.

What is Financial Planning?

Financial planning is a process that begins with establishing financial goals. The goals may be short-term – like purchasing a home or paying for private school – or longer term goals including retirement, funding college for younger children or buying a vacation home. Once the goals are established, a plan framework is constructed that reflects current assets, ability to save, how to invest, the amount needed to fund the goals and other key details. Ultimately, the plan framework maps out steps that the client needs to take in order to have a high likelihood of achieving the financial goals.

Some financial planners offer comprehensive planning, which means that they focus not just on constructing the plan framework, but also on related issues including estate planning, tax planning and risk management. Focusing on these issues allows the client to make optimal decisions and to better manage risks to the plan.

Importance of Financial Planning

Most clients find the most valuable aspect of financial planning is that it confirms whether or not they are on track, and that helps reduce financial stress. A plan is also useful in that it provides very specific information as to what a client needs to do in order to meet their financial goals. With that framework in place, if the unexpected occurs – such as the loss of a job or an unplanned for inheritance – it is possible to quickly assess financial impact and mapout options.

An additional benefit of working with a personal financial planner is that the planner – and the planning process – can help a client make optimal financial decisions. Deciding when to finance a purchase versus when to pay cash, or choosing the best insurance coverage can all have material impacts on a client’s financial situation. Finally, the greatest long term benefit we have found for clients who have successfully implemented a financial plan is that they have an ever-expanding choice of options as to how they want to live their lives.

When to seek help from a Financial Planner

Typically, clients seek out a financial advisor when an event has occurred in their lives. The event might be approaching retirement, or receiving an inheritance or having a child. Most of the time, the primary goal of the client is to confirm that they are financial prepared, although in “liquidity events” in which the client receives a large sum of cash, determining how to invest the cash can be the driving concern. In either instance though, the planning process is similar in that it begins with establishing goals and then building the plan framework – including how to invest – within which the client works to pursue those goals.

In searching for a financial planner, a few good resources include the National Association of Personal Financial Advisors (, which is an umbrella organization for fee-only financial advisors, and the CFP Board (, the governing body for CERTIFIED FINANCIAL PLANNERs™. Once you have identified a few potential advisors, interview them by phone or in-person, and ask for references. While experience, qualifications and whether or not the planner works via fees or commission are all important, a good fit between client and financial advisor is extremely important as well.

Why You Should Hire a Financial Planner for Your Retirement

 For most working people, it can be difficult to look thirty, twenty, or even ten years into their career future. It’s human nature to focus on what’s going on now and then addressing the future, especially the far future, when it gets here. If you want a healthy, comfortable retirement, though, then that’s exactly what you should be doing: planning for your financial future. Taking into account how difficult it is to successfully plan for the future, you should seriously consider hiring a financial advisor in Greenville, SC, to assist you with your retirement planning. If you haven’t considered hiring a financial planner, here are a few of the biggest benefits that you can get from seeking out the expertise of one of these service providers.

Advisors Can Plan Long-Term

As previously stated, it can be difficult to look thirty years down the line, let alone plan what you are going to do financially even one year out. That kind of foresight, though, is exactly what a trained financial planner can offer you. They have the training, knowledge, and experience necessary to set you up for financial stability. If you don’t have any training with finances yourself, it simply makes sense to leave your retirement to someone who has spent hundreds of hours training and studying the market. It is the surest way to a sound financial future.

Advisors Can Guide Your Finances

Some people think that having a basic understanding of the stock market is all that it takes to understand planning for retirement. This is far from true. Similarly, there is no other financial discipline that takes so much planning and foresight, so you really can’t translate skills from one financial discipline to another. Strict, intense training coupled with years of experience is what is required of someone if you want to be able to trust them with your finances. If they meet these requirements, and have a track record of truly helping people out with their money, then you can rest assured that the advisor in question can help set you up for financial security in the future. Don’t leave your retirement to chance—locate an advisor that can get you set up with a smart plan as soon as possible.

Advisors Offers Peace of Mind

Another often-overlooked benefit that a trained financial advisor can offer is the peace of mind that they can offer someone who wants to ensure that they can retire at a reasonable age. If you have ever seen the panic that someone who hasn’t properly planned for retirement undergoes when they reach age 60, then you know just how much you don’t want to be in a similar situation. When you know that you can retire when you want to and that you will be comfortable when you do so, you can live your life without that extra burden of being ill-prepared during the twilight years of your life. If you are someone who likes to know what lies around the next bend, then hiring a financial advisor to assist you with your retirement plan is the best, safest option.

Securing a bright financial future isn’t as difficult as it may seem. Even if you have been in the workforce for years, it’s never too late to start planning for retirement. By hiring a financial advisor in Greenville, SC, you can have a trained professional in your corner who can help you plan for the long-term, not to mention the peace of mind that you’ll feel knowing your retirement is secure. Don’t hesitate to make the call to your local advisor today. The quicker you get started, the more secure your future will be!

The reason that contradiction did not erupt between banks and payment service provider in uk?

 During President Xi Jinping’s visit to UK not long ago, China’s Lakala Payment Co., Ltd delivered a keynote speech and signed a cooperation agreement with Allpay Limited, the largest bill payment system in Britain,declaring that a cross-border financial service platform will be co-founded in future, which means that “the new age of china-uk international financial coopertation” began. 

In terms of third-party payment market, Lakala had many co-operations with Allpay and its product line covers all product types of allpay such as Payment, Credit Checking, Credits, Financial Management, and Equity-based Crowd-funding, etc. Justine Norman(allpay’s vice-president) once say in a television interview:” china’s third-party payment companies had all the products we are plan to design so far, with  a larger scale, and then we hope to work with them to open the European market together, temporaryly had no plan to enter the Chinese market. 

In English language market, banking ‘s market level goes higher. So banking will be more active to take advantage of today’s internet digital technology to make himself more competitive in this fully competitive environment, which is especially true when the third-party payment company develop quickly. Therefore, though uk’s internet firms take a little advantage in terms of technologies, it’s still difficult to compete with those financial firms equipped with higher internet technologies.On the other hand, English language market’s mature credit-card market and the charge fee of credit card had hindered third-party payment companies’ development and make them hard to control costs to some degree. 

In addition, financial firms in uk were regulated by The FCA (financial conduct authority)to be providing services to consumers and maintains the integrity of the UK’s financial markets, at the same time, these firms were also regulated by the industry associations. registration and the information disclosure institution are ways of their effective regulation. Thanks to the strict supervision, uk’s internet financial industry has a clear standard to follow and implement more strict norms. In some sense, it will create limits to the development of product types, on the other hand, it also ensure clear modes of cooperation between internet firms and banks, even help to ease the interests conflicts.

But when we look at the chinese market, supervision of internet finance is still in its infancy. In summary, the internet finance industry has undertaken three periods—explosive growth in the case of “no threshold, no regulation, no supervision”, grow wildly to hit the interest conflict, a groups of internet financial firms fall. In a word, it is flying blind step by step. Today’s chinese internet finance is dominated by those third-party payment companies, and the aim is to accumulate users combined with the market demand, go further to develop more business type like P2P, fund investment etc. And for banks, the threat of the growth from third-party payment companies is that they had a mass of users data and more and more customers will choose to use them as their preferred payment method, which means banks will lose ownership.

Anyway, the only person who will benefit from the competition between banks and payment companies is the users.  

Epay is online payment system enables you to make payments, spend online or receive funds with no fees. Epay provides people from all over the world with fast, low-cost and flexiable ways to deposit, withdraw or exchange currency,multi-currencies and more than 200 countries are available. Founded in 2014 and based in China,epay ensure customers now pay and get paid globally as easily as they do locally.



Companies have been using various financial instruments to raising required capital for achievement of their broad corporative objectives. The innovative instruments have the potential to help Indian companies to overcome the severe financing constraints they have been experiencing over a long period of time. Companies are doing every thing to tap available financial resources through the use of old and innovative instruments and the process will continue indefinetly.Companies in their pursuit of reducing the cost of capital, put a premium on such instrument which will help in achieving such an objectives.

A financial instrument is a combination of characteristics such as promised yield liquidity, maturity, security and risk. The process of financial innovation involves creating new instruments and technique by unpackaging and rebinding the same characteristics in different fashion to suit the constantly changing the needs of the issues and the investor’s .These innovative are of two kinds:-

1 Changes aimed at the tax planning.

2 Adaptive changes that give rise to a gap in the range of available financial instruments.

In corporate finance, financial engineers are often called upon to develop innovative instruments are secure the funds necessary for operation of large scale business. The nature of financing required cost preference and other consideration indicate special instruments, a collection of special features to be attached to an instrument or a combination of instruments to be used in concert. At times it precipitates in the introduction of revolutionary new products such as swap, mortgage, and zero coupon bonds to finance leveraged buyouts. This is the kind of creativity involved in the extension of future trading to a commodity or a financial instrument not previously traded in a futures pit, the introduction of swap variants or the creation of mutual fund with a new focus. At tills other times it involves the piecing together of existing products and process to fit in a particular set of circumstances.

Financial innovation has therefore been a continuous and integral part of corporate world. Greater freedom and flexibility have thus enabled companies to invent and innovate financial instrument and their subsequent introduction. A variety of factors such as increased interest rate, volatility, frequency of tax and regulatory changes etc have stimulated the process of financial innovations. The deregulation of financial service industry and increased competition with in investment banking undoubtedly led to increased emphasis on the ability to design new products , develop better process, and implement more effective solution for increasingly complex financial problems.  Financial engineering has thus become the life blood of this activity.  According to Thone Finerty F.E involves the design, the development, and the formation of creative solutions to problems in finance.  Financial innovations have been a continuous and integral part of the corporate world.

Such innovations could prove extremely beneficial by adding value to the company if it.

  1. Re allocates Risk form those who are less willing to bear it to those who are more willing to assure it.
  2. Enhance liquidity.
  3. Diminishes agency costs emanating form the conflict between share holders, managers and creditors.
  4. Lowers the combined burden of tax to the issuer and the investor.
  5. By passers ingeniously some regulatory restrictions.

New financial Instruments in the capital Market

With the evolution of capital market new financial instruments are being introduced to suit the requirements of the companies.  Keeping in view the yield expected by investors, price and credit risk, liquidity and quantum of funds etc. some of the new financial instruments are Zero coupon bonds, warrants, (detachable warrants secured premium Notes, Stock invest, Bond with floating interest rate, Deep discount bonds, option bonds, option, swap financial engineering made first appearance in the finance literature in 1987-88. Thon Finnerty “Financial Engineering in Corporate finance An Overview 1988 pp 4-3)

Financing Instruments Issued by Indian company

After the liberalization measures were announced in 1991, Indian Company under took issuance of new instruments seriously in order to attract large section of investors.  Essar Steel used convertible debentures with warrants and loyalty coupons, Tata Iron and Steel Company Limited issued secured Premium Notes with warrants, Flex Industries  issued partly convertible debentures and non convertible debentures with warrant attached to each instrument DLF aments issued multiple option bonds, Essar oil issued optionally fully convertible debentures and Reliance Petroleum issued triple option convertible with equity warrant and Esab India issued partly convertible debenture.

This burst of innovation has seen a typical shift in the design and development of new instrument.  The classic conversion is that of debt in to equity.  Offering the investor the option of conversion keeps the cost of his convertible debt lower than straight debt, thus minimizing the cash out flows during the gestation period.  Once the project yields steady profits, the equity conversion results in a relatively- expensive dilution.  The use of fectures like warrants makes the equity and convertible less expensive for the investor.  It creates possibilities for their full subscription by the investors and also turns out to be cheaper for the issuing company.

Nature of Problem

Over the years, Indian Companies have worked in a restrictive and controlled regime where high cost of capital, limited flexibility. Low capacity to raise adequate finances, lower production capacities, obsolete technologies, low auto motion, high product prices, etc. Introduction of new instruments of finances have provided opportunities to Indian Companies to design instruments which could give them the freedom to address to the varying needs of investors group to make an attempt to lower the cost of capital.  Introduction of new financing increased the chances for more and more investor’s participation in future offerings of companies.  This may enhance the chances for raising more and more funds.  It is not clearly known as to what benefits the introduction of such new instruments brings to the companies and the investors and what perceptions investors as well as managements have with regard to these new instruments.

Investments in companies were a risky proposition low returns on equity and availability of limited options due to existence of limited number of instruments were common.  The changed scenario promises to be panacea for all the deficiencies of the past.  It will therefore, be prudent to analysis how the process of financial innovation has helped to accelerate those of new instruments by Indian companies.

Objectives of Study

Keeping the nature of problem  in mind an attempt was made to analyze the effects of introduction of new instruments of finance on cost of capital, profitability, expansion, diversification / modernization programmes of various companies, competitiveness, product quality, investors etc, the detailed analysis will provide an insight into above mentioned areas and helps to find out whether introduction of new instruments of finance will help in solving the problems faced by the Indian Companies.  Further analysis will also throw some light on the acceptability of these instruments by the investors which will greatly help the Indian companies to overcome the shortage of funds.

The specific objectives of the study are

  • To study the regulations and development of financial instruments in India.
  • To analyze different aspects of new instruments of finance.
  • To analyze the effects of introduction of new instrument of finances in capital structure.
  • To analyze the investors, managements and brokers perception regarding the use of new instruments of finance
  • To ascertain whether there is any further scope for designing newer instruments of finances.


The present study among other things to include the following hypotheses for testing

  • The level of income and state of investment is independent of each other.
  • New and traditional instruments of finance have provided similar investment choices to investors.
  • New and traditional instruments of financing have provided similar benefits to the investors.
  • No further innovations are needed in various instrument of financing.
  • Investors with positive perception about using of innovative features favor continued use of such features in new instruments of finances.

Research Methodology

The study is based on data collected by both primary as well as secondary sources.  Annual report, research articles, published in various books and journals on different aspect of the problem under study have served as a major source of secondary data. Apart form discussion with various investors, company official and other classes of respondents properly designed comprehensive questionnaires constituted the primary source of data.

The selection of companies included in this study was based the following criterion.

  1. Companies which have entered the capital market funds and have made use of new and traditional instrument of finance after 1990- 91.
  2. Companies which are in the market for at least 3 years.  An effort was made to select at least one company form each industry.

The conclusion and inferences were based on statistical tests such as chi-square test and Likert’s summated technique etc.


  1. Asquith Paul and David W Mullin, Equity Issues and offering Dilution Journal of financial Economics January / February 1986 pp 61-89.
  2. Chew. Donald H. In the Revolution In corporate finance edited by Joel M Stern and Doneld H Chew 1992 Black Well Oxford.
  3. Finerty, John D. Financial Engineering in Corporate finance An Overview Financial Management winter 1988 (4-33).
  4. Gupta, Santhosh. Research Methodology and Statistical technique. New Delhi: Deep and deep Publications.
  5. Kothari, CR. Research Methodology. New Delhi: New Age International (p) Limited.
  6. Mishra. R.K. “Financial Instruments” The Chartered Accountant September 1995 p.p (84-90)
  7. Prasana, Chandra. Financial Management Theory and Practice. Tata Mc Graw hill Ltd.
  8. Roju M, thiripal. Financial innovations in the Indian Capital Market during the last decade finance India, Vol No. 1, March 1993. p (43-62)
  9. Sharma. R.K and Shashik .K. Gupta, Financial Management Kalyan Publisher Ludhinana.

Career Prospects of MBA in Human Resource Management

 Human Resource managers are generally tasked with the job of deciding upon corporation staffing to taking a pick from independent contractors and going for in-house hiring for the company. They also hire and train employees to ensure high performance level in an organisation. An MBA graduate in human resource discipline can end up in positions of a Human Resource manager, Affirmative Action Officer and Payroll Director. Graduates in this discipline can add a professional certification to their qualification and increase their visibility in the market. They can get certifications from various organisations including Institute of Certified Professional Managers.

Course Content

These professionals can seek opportunities for further advancement in top managerialpositions. Those who wish to get into research, consulting or writing can pursue their education till the doctoral level which may also cover the study of organisational behaviour. If we talk about the course, the content includes study of business strategy and concepts and the emphasis is basically on benefit analysis, business coaching and compensation management that are emphasized.

Structure Laid Out

In addition, MBA Human Resource Management program involves reports, presentations,assignments, group projects and internships of an advanced level. These are full-time degreeprogrammes which are also available in the online or weekend only formats depending upon school to school. Though, these programmes are of two years duration, they may also take lesser time to complete. Here, aspirants learn to grasp business strategies that could be used in daily corporate operations.

mba in human resource management

Main Topics and Skills Covered

The field commonly covers topics like business analysis, accounting, finance management, economics, marketing and organisational development for student benefit. It is a career intensive course in management that not just offers a thorough ground in managing the HR business through theoretical training but provides practical exposure too. A future professional learns the business skills of teamwork, communication, leadership as well as decision-making apart from undertaking a field trip.

The area helps the HR managers to tackle the issues that arise pertaining to mergers and acquisitions, emerging economics, diversity and developing labour markets. This step is quite instrumental in career as well as personal development both. Here, an aspirant is required to form a multi-cultural learning group during induction with his or her peers. This gives them a chance to use, reflect and share their experiences with the team in a learning environment. During the course of learning, they get to have their own personal tutor when they come together for tutorial guidance.

Job Prospects

A degree of MBA in Human Resource Management comprises the aspects like personnel administration, human resource planning, selection and recruitment, training and development and maintaining employee relations that have high job prospects. Some of the preferable job titles in this field are of an HR Generalist, Staffing Director, Technical Recruiter, Compensation Manager, Employee Relations Manager and Placement Manager.

The Different Commercial Equipment Finances Available Today

 Every business’s needs vary. Some may have the capital to invest in big-ticket equipment; while there may be countless others that’ll completely lack the finances to get even the most necessary equipment on board. So for the latter, there are different types of commercial equipment finance available; and we’re going to discuss the most prominent types in this post. So read on.

Commercial equipment finance types

Corporate equipment financing

If your business is operating in rail, aircraft, or marine and if it needs equipment finance, it’ll have to rely on corporate equipment financing solutions. If you don’t have the know-how to choose the finest corporate equipment finances for your business, allow a team of business financers to guide you.

These finances can be secured to get a range of equipment and machines, including corporate aircrafts, tugboats, submarines, locomotive fleet (or even a single railcar), trucks and trailers and information technology (Computer, router and other relevant IT machines). The corporate equipment finances which a reliable business financer can assist your business to get include:

  • Tax leases
  • Terminal rental adjustment clause lease
  • Synthetic lease
  • Equipment loan/Conditional Sales Agreemen

Government equipment financing

In today’s global economy, costs are increasing rapidly when they’re compared with revenues. During such times, some governmental authorities—government schools and offices, for example—find it extremely tedious to perform optimally. For that reason, these authorities are required to associate with a team of experienced financers who’re capable to get great government equipment finance deals within the shortest turnaround.

Solutions, in this type, consist of tax-exempt leasepurchase agreement and taxable lease purchase agreement. And the finances, generally, are solicited for helicopter and other energy management technologies.

Healthcare equipment financing

A healthcare facility, in general, requires cost-effective, comprehensive financial equipment that serves the patient’s needs. Such a need, if remained unsatisfied, will disable medical and healthcare facilities to deliver premium care.

There’s a large variety of healthcare equipment financing solutions available, these days. Some of the prominent ones include tax-exempt conduit lease, conditional sales agreement/equipment loan and taxable lease purchase agreement. The loans are required for electronic health records systems, helicopter and IT equipment.

However, before leveraging any of these commercial equipment finance, you’re advised to take the assistance of a really experienced business finance team. That’s because an experienced team (of this nature) will be able to guide you in securing the best commercial equipment financial loans without any ado.

Personal Financial and Life Planning in Alberta with Experts

 There are numerous business entrepreneurs, who have admitted that managing a well-balanced financial status isn’t the easy thing to do. If you are one among these entrepreneurs, then it is essential for you to know that achieving and maintaining a well-balanced financial status is not an impossible task either. It only requires your time, patience, practice, experience and mind set. However, if you are involved in such (small or large scale) business, which do not allow you to spare time on managing all your financial aspects, then you will be happy to know that these days; few experienced professionals available at numerous reputed and top accounting firms in Stony Plain, Alberta can help you in this venture.

No matter whether need financial planning assistance for managing your personal financial and life planning in Alberta or for your business needs, you will be happy to know that such experienced and expert professionals at few reputed firms for Accounting and Small Business Consulting in Alberta can give you – the necessary edge in today’s constantly changing business environment. These professionals will help you in making and implementing necessary plans, which can help you in achieving the monetary goals. However, it is crucial to mention here that before providing you an efficient strategy, these professionals will first take into consideration your objectives, assesses all resources and assets, estimates almost every future financial need, and then plan right financial strategies for you. 

Now, if you are planning to hire the expert small business financial planning or Small Business Tax Services in Alberta, from any such professionals, then you will be happy to know that internet gives you convenience of finding any exceptionally experienced team of professionals, who are expert in Small Business Financial Planning in Alberta. One such experienced team of proficient professionals, who are expert in Records Management for Small Business in Alberta, is available online on the internet at 

These professionals can help you in advising you in taking crucial financial decisions. In addition to this, they will also offer you numerous accounting solutions, like tax returns, business planning needs, financial reporting and Small Business Record Keeping in Alberta. The reason for this is that the team of professionals available at this consulting firm comprise of expert accountant, taxation consultants and financial specialists. Thus, seeking their assistance and expertise, by shelling out feasible price, can bring significant benefits to your business, no matter, how small, medium or large it is.