Leasing,Venture Capital & Export Financing 8 NovemberPresentation Transcript
Leasing,Venture Capital & Export Financing AFTERSCHO☺OL – DEVELOPING CHANGE MAKERS CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME – World’s Most Comprehensive programmes in social entrepreneurship & spiritual entrepreneurship OPEN FOR ALL FREE FOR ALL
Leasing,Venture Capital & Export Financing Dr. T.K. Jain. AFTERSCHO☺OL Centre for social entrepreneurship Bikaner M: 9414430763 [email_address] www.afterschool.tk , www.afterschoool.tk
What are the various sources of Long term finance?
Bonds (it is just like debenture, it carried interest).
Venture capital (when you start a high-tech business, there are people, who give you money as equity/ seed capital – this is called venture capital).
Foreign currency loans, Euro issues, ADRs, GDRs,
What are the various sources of short term finance?
CC account (cash credit account)
Packing credit & letter of credit
Forfaiting & Factoring
Working capital loans.
What are the various sources of medium term finance?
Securitisation (here we pool together some assets and issue securities on the basis of those assets)
Obtaining packing credit before exports is called pre-shipment finance. There are many types of pre-shipment finances:
Clean packing credit
Packing credit against pledge / hypothecation
ECGC (export credit guarantee corporation)
Forward exchange contract
CD (certificate of deposit)
It is an instrument sold by bank. It is similar to fixed deposit. The bank issues CD and gets money. CD can be sold in secondary market also. The bank can sell the securities in the secondary market any time. It is generally in very large amount. It is a source of short term finance for Banks / very reputed corporate houses. It’s credit rating is given by credit rating agencies.
Seed capital means the capital that is given to start a business (just like a seed). It is given in the beginning = so that the business may start as a small enterprise and grow larger and larger day by day.
IDBI issued DDB (deep discounting bond) in 1992 (face value Rs. 1 Lakh) issue price Rs. 2700. What is the yield (interest rate) to the customer, if its life is 25 years?
15.54% annual compounding interest rate.
Floating rate note (these are issued for 7 year maturity). They provide foreign exchange finance.
Fully hedged funds?
These are bonds that do not have currency fluctuation risk as the entire payments are hedged by forwards (for both principal and interest). Thus there is no exchange risk.
American depository receipt
These are issued in American market as per SEC (securities exchange commission) USA requirements
The requirements include that the company should disclose accounts as per GAAP. ADRs are traded in NYSE (new york stock exchange) through depository trust company.
Infosys, ICICI etc. have issued ADRs.
Global Depository Receipts – they are securities issued against shares. They are also traded in stock exchanges of other countries. Companies have raised GDRs from European countries.
It is also a short term financing instrument. It is also in huge amount.
Zero coupon bonds?
They are just similar to deep discount bonds.
Ploughing back of profit?
It is like retained earning. When you plough back profit, you are putting profits back in the business and thereby you are able to earn even more profits. For example, if you earn Rs. 30 on 100, instead of giving dividends, keep it. Now you have 130, next time you will earn 39 Rupees. You can further retain it and next year you will have 50 rupees – and so on. Your assets will also increase. It is cheaper than raising fresh capital.
Lease financing ?
Kapsa wants to start a travel agency. He doesn’t have either money or taxis. He takes taxis on lease (he will pay lease rentals). Now he is comfortable – as he earns, he pays lease rentals and retains some money for the growth of business.
The decision to analyse a capital investment project is called capital budgeting. In capital budgeting, we analyse a project on the merit of capital budgeting. We look at returns and evaluate the returns on the criteria of our minimum expected return on investments.
Kap Ltd is evaluating the purchase of a new project with a depreciable base of Rs. 1,00,000; expected economic life of 4 years and change in earnings before taxes and depreciation of Rs. 45,000 in year 1, Rs. 30,000 in year 2, Rs. 25,000 in year 3 and Rs. 35,000 in year 4. Assume straight-line depreciation and a 50% tax rate. You are required to compute relevant cash flows.
Afterschoool conducts three year integrated PGPSE (after class 12 th along with IAS / CA / CS ) and 18 month PGPSE (Post Graduate Programme in Social Entrepreneurship) along with preparation for CS / CFP / CFA /CMA / FRM . This course is also available online also. It also conducts workshops on social entrepreneurship in schools and colleges all over India – start social entrepreneurship club in your institution today with the help from afterschoool and help us in developing society.
Why such a programme?
To promote people to take up entrepreneurship and help develop the society
To enable people to take up franchising and other such options to start a business / social development project
To enable people to take up social development as their mission
To enable people to promote spirituality and positive thinking in the world
Who are our supporters?
Afterschoolians, our past beneficiaries, entrepreneurs and social entrepreneurs are supporting us.
You can also support us – not necessarily by money – but by being promotor of our concept and our ideas.
About AFTERSCHO☺OL PGPSE – the best programme for developing great entrepreneurs
Most flexible, adaptive but rigorous programme
Available in distance learning mode
Case study focused- latest cases
Industry oriented practical curriculum
Designed to make you entrepreneurs – not just an employee
Option to take up part time job – so earn while you learn
The only absolutely free course on internet
Workshops from AFTERSCHO☺OL
ICSI Hyderabad Branch
Gyan Vihar, Jaipur
Apex Institute of Management, Jaipur
Aravali Institute of Management, Jodhpur
Xavier Institute of Management, Bhubaneshwar
Pacific Institute, Udaipur
Engineering College, Hyderabad
Spiritualising business and society
Rural development and transformation
HRD and Education, Social Development
NGO and voluntary work
Investment analysis,microfinance and inclusion
Retail sector, BPO, KPO
Accounting & Information system (with CA / CS /CMA)
Hospital management and Health care
Hospitality sector and culture and heritage
Other sectors of high growth, high technology and social relevance
The only programme of its kind (in the whole world)
No publicity and low profile course
For those who want to achieve success in life – not just a degree
Flexible – you may stay for a month and continue the rest of the education by distance mode. / you may attend weekend classes
Scholarships for those from poor economic background
Latest and constantly changing curriculum – keeping pace with the time
Placement for those who are interested
Admissions open throughout the year
Latest and most advanced technologies, books and study material
Pedagogy curriculum and approach based on IIM Ahmedabad and ISB Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad)
Meditation, spiritualisation, and self development
EsGotitial softwares for business
Business plan, Research projects
Participation in conferences / seminars
Workshops on leadership, team building etc.
Written submissions of research projects/articles / papers
Interview of entrepreneurs, writing biographies of entrepreneurs
Editing of journals / newsletters
Consultancy / research projects
Assignments, communication skill workshops
Participation in conferences and seminars
Group discussions, mock interviews, self development diaryng
Mind Power Training & writing workshop (by Dr. T.K.Jain)
Articles from Harvard Business Review
Quiz, seminars, workshops, games,
Visits to entrepreneurs and industrial visits
PreGotitations, Latest audio-visuals
Group discussions and group projects
Periodic self assessment
Mentoring and counselling
Study exchange programme (with institutions out of India)
Rural development / Social welfare projects
AFTERSCHO☺OL will shortly open its branches in important cities in India including Delhi, Kota, Mumbai, Gurgaon and other important cities. Afterschooolians will be responsible for managing and developing these branches – and for promoting social entrepreneurs.
We want to write case studies on social entrepreneurs, first generation entrepreneurs, ethical entrepreneurs. Please help us in this process. Help us to be in touch with entrepreneurs, so that we may develop entrepreneurs.
Basic values at AFTERSCHO☺OL
Share to learn more
Interact to develop yourself
Fear is your worst enemy
Make mistakes to learn
Study & discuss in a group
Criticism is the healthy route to mutual support and help
Ask fundamental questions : why, when, how & where?
Embrace change – and compete with yourself only
www.afterschoool.tk social entrepreneurship for better society