This document provides background information on Nature Care India, a FMCG company that is issuing non-convertible debentures. It includes Nature Care's vision, mission, financial highlights, and current strategy of investing Rs. 150 crores in expansion through a public debt issue. The debt issue involves issuing 1.5 crore debentures of face value Rs. 100 each, with a coupon rate of 10.2% and maturity of 9 years. The document also lists some questions and calculations related to determining the intrinsic value, yield to maturity, and yield to call of the debentures.
Most business leaders believe that some portion of employee pay should be in the form of incentives, but are left struggling to find answers to key questions: How much of someone’s pay should be variable? And who should have incentive pay as part of their mix? How much of the incentive should be short-term and how much should be based on long-term performance? What type of incentive(s) should it be? What if I don’t pay incentives and just pay higher salaries than my competitors? Will that work just as well?
If these are questions you are facing, don’t miss this presentation!
Corporate Finance – A Study On Idea CellularSarang Bhutada
A Corporate Finance Perspective on Idea Cellular, a listed company in India (IDEA) by traditional methods like leverage analysis, EBIT-EPS Analysis, Dividend Policy Analysis and Alternate Funding Policy Analysis
Most business leaders believe that some portion of employee pay should be in the form of incentives, but are left struggling to find answers to key questions: How much of someone’s pay should be variable? And who should have incentive pay as part of their mix? How much of the incentive should be short-term and how much should be based on long-term performance? What type of incentive(s) should it be? What if I don’t pay incentives and just pay higher salaries than my competitors? Will that work just as well?
If these are questions you are facing, don’t miss this presentation!
Corporate Finance – A Study On Idea CellularSarang Bhutada
A Corporate Finance Perspective on Idea Cellular, a listed company in India (IDEA) by traditional methods like leverage analysis, EBIT-EPS Analysis, Dividend Policy Analysis and Alternate Funding Policy Analysis
Compensation And Benefits In Hrm PowerPoint Presentation SlidesSlideTeam
Presenting this set of slides with name - Compensation And Benefits In Hrm Powerpoint Presentation Slides. This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with thirty five slides is here to help you to strategize, plan, analyse, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Compensation And Benefits In Hrm Powerpoint Presentation Slide with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization.
Most business leaders know that some portion of their pay construct should be in the form of incentives, but are left struggling to find answers to these kinds of questions: How much of someone’s pay should be variable? And who should have incentive pay as part of their mix? How much of the incentive should be short-term and how much should be based on long-term performance? What type of incentive(s) should it be. If these are questions you struggle with, you will not want to miss this.
The COVID economy has likely created competing priorities for you as a business leader. You feel pressure to minimize your compensation expense and protect cash flow. At the same time, you need to incentivize employee performance so your people will be motivated to get results.
So, what should you do?
Tune into this webcast to learn why many enterprise leaders are finding phantom stock to be the answer. In this broadcast, we will show you how this kind of plan enables you to reward performance without increasing your compensation expense. You will also see how phantom stock allows you to share value without diluting owner equity.
In short, we will demonstrate why phantom stock is the compensation equivalent of “having your cake and eating it too.”
Muds Services:
Constitution of Trust
Formation of ESOP Plan
Identification & Appraisal of Eligible Employees
Valuation of Company
Creation of ESOP pool
Documentation & Granting of ESOPs
https://muds.co.in/esop/
Concept of Compensation, Exploring & Defining Compensation Context (Strategic Compensation, Total Compensation, Extrinsic Compensation, Intrinsic Compensation, Components of Compensation, Factors Influencing Compensation, Wage and Salary, Incentives, Fringe Benefits, Perquisites, Govt. Regulations for Compensation in India, Minimum Wage, Fair Wage, Living Wage, Calculation of Minimum Wages)
compensation in a knowledge based economy
,
compensation strategy
,
compensation history
,
what is compensation
,
importance of compensation
,
pay and social class
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
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Compensation And Benefits In Hrm PowerPoint Presentation SlidesSlideTeam
Presenting this set of slides with name - Compensation And Benefits In Hrm Powerpoint Presentation Slides. This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with thirty five slides is here to help you to strategize, plan, analyse, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Compensation And Benefits In Hrm Powerpoint Presentation Slide with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization.
Most business leaders know that some portion of their pay construct should be in the form of incentives, but are left struggling to find answers to these kinds of questions: How much of someone’s pay should be variable? And who should have incentive pay as part of their mix? How much of the incentive should be short-term and how much should be based on long-term performance? What type of incentive(s) should it be. If these are questions you struggle with, you will not want to miss this.
The COVID economy has likely created competing priorities for you as a business leader. You feel pressure to minimize your compensation expense and protect cash flow. At the same time, you need to incentivize employee performance so your people will be motivated to get results.
So, what should you do?
Tune into this webcast to learn why many enterprise leaders are finding phantom stock to be the answer. In this broadcast, we will show you how this kind of plan enables you to reward performance without increasing your compensation expense. You will also see how phantom stock allows you to share value without diluting owner equity.
In short, we will demonstrate why phantom stock is the compensation equivalent of “having your cake and eating it too.”
Muds Services:
Constitution of Trust
Formation of ESOP Plan
Identification & Appraisal of Eligible Employees
Valuation of Company
Creation of ESOP pool
Documentation & Granting of ESOPs
https://muds.co.in/esop/
Concept of Compensation, Exploring & Defining Compensation Context (Strategic Compensation, Total Compensation, Extrinsic Compensation, Intrinsic Compensation, Components of Compensation, Factors Influencing Compensation, Wage and Salary, Incentives, Fringe Benefits, Perquisites, Govt. Regulations for Compensation in India, Minimum Wage, Fair Wage, Living Wage, Calculation of Minimum Wages)
compensation in a knowledge based economy
,
compensation strategy
,
compensation history
,
what is compensation
,
importance of compensation
,
pay and social class
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
Dear students get fully solved SMU MBA Fall 2014 assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
RATIO ANALYSIS MEMORatio Analysis Memo – ACC291Univer.docxmakdul
RATIO ANALYSIS MEMO
Ratio Analysis Memo –
ACC/291
University of Phoenix
To: Ms. Kathy Kudler, CEO
From: Accounting
Re: Company Ration Analysis
Kudler Fine Foods accounting department has completed a full analysis on the 2003 financial statistics. Different tools of analysis are used to help complete the analysis measurement. Below you will find exact calculations on liquidity ratios, profitability ratios, and solvency ratios. Financials from 2003 have helped us get an overall view of the company’s well being and with further years to come we will be better able to estimate a yearly return.
To measure the company’s short-term ability to pay its maturing obligations and to meet unexpected needs for cash, or liquidity ratio, several ratios are used. First is the current ratio rate. This measures the company’s liquidity and short-term debt-paying ability. Kudler’s current ratio is 16.95:1. This means the company has $16.95 of current asset for every dollar of current liability. This is great in comparison to the average industry’s ratio, which is 1:06:1. Kudler’s acid-test ratio, which measure immediate liquidity, is 13:04:1. The average industry’s is 0.29:1. The receivable turn-over rate is 125.54. In other words, Kudler Fine Foods collects 125 receivables during its given period. This rate is over four times the industry average of 28.2. After measuring the inventory turnover, Kudler Fine foods inventory is sold 18.9 times during its accounting period. With the average industry rate being 7.0, its obvious to see the company is doing well.
Profitability ratios measure the income or operating success of a company for a
given period of time. To help determine profitability ratios, Kudler’s accounting department measured the company’s assets turnovers, profit margins, return on assets, and return on common Stockholder’s Equity. To begin, all ratio rates in their given field are higher than the industry’s average ratio rate. The asset turnover shows Kudler generate $4.04 of sales for each dollar the company invested in assets. The percentage of each dollar of sales that resulted in net income, or profit margin amount, is 6.7%. A return of asset rate of 25.3% shows the overall measure of profitability. This was determined by measured dividing net income by average assets. This rate is more than three times the industry’s average rate. The return on common Stockholder’s Equity has a high rate of 0.90%. This means the company earns $90 for each dollar invested by the owner.
Solvency ratios, which measure the ability of a company to survive over a long period of time, that were used are debt to assets ratios and times interest earned rations. The debt to assets ratios shows the Kudler’s creditors contribute 28% of total assets to the company. This low rate shows Kudler Fine Food contributes much of its success to the business assets. The times interest earned ratio, which measure the company’s ability to meet interest payments as t ...
Edelweiss Mid Cap Fund Details | Edelweiss MFJuneRobert1
Edelweiss midcap fund seeks to generate capital appreciation from a diversified portfolio investment in midcap companies. To invest in mid cap mutual funds visit Edelweiss MF today.
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Cargills (Ceylon) PLC & Nestle Lanka PLC financial position and the performa...Dulakshi Ranadeera
Chapter 1
1.1. Earnings per Share
1.2. Dividend per Share…
1.3. Market Value…
1.4. Cash Flow
1.5. Profitability Ratios
1.6. Net Asset per Share
1.7. Solvency Ratios
1.8. Liquidity Position
2. Chapter 2
2.1. Nestle Lanka
2.1.1. The level of the corporate governance and legal procedure of the company
2.1.2. Compliance for legal procedure
2.1.3. Employee relations and relationship with shareholders
2.1.4. Social Responsibilities of the organization
2.1.5. Share information
2.1.6. Market share Percentage
2.2. Cargills (Ceylon) PLC
2.2.1. The level of the corporate governance and legal procedure of the company
2.2.2. Compliance for legal procedure
2.2.3. Employee relations and relationship with shareholders
2.2.4. Social Responsibilities of the organization
2.2.5. Share information
2.2.6. Market share Percentage
Chapter 3
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
1. Symbiosis Institute of Business Management
MBA [Ex. Edu.] Batch 2012-2014
Semester II – Division - A, Group - 2
Anurag Verma: Roll No: 35413
Amol Surwade : Roll No: 35407
Arvind Verma : Roll No: 35415
Avinash Panchashkari : Roll No: 35417
Ameya Deshpande : Roll No: 35406
Aishwarya Dubey : Roll No: 35402
Jitendra Bhalerao : Roll No: 35429
Ghanashyam sahoo : Roll No: 35425
Sushant Jog : Roll No: 35481
Group 2
FM Assignment: Nature Care India
Date of Submission: 06/04/2013
2. Page 2 of 11
Group 2
MBA [Ex. Edu.] Batch 2012-2014, Semester – II
Assignment Nature Care India
Contents
Background .......................................................................................................................................3
Vision.........................................................................................................................................................3
Mission......................................................................................................................................................3
Company Highlights ..................................................................................................................................3
Sector (FMCG) Highlights..........................................................................................................................3
Current Strategy........................................................................................................................................3
Debt Issue .................................................................................................................................................4
Analysis .....................................................................................................................................................4
Investor Gains ...........................................................................................................................................4
Borrower Gains .........................................................................................................................................4
Questions ..........................................................................................................................................5
Q1: What is the Intrinsic value of the bond?............................................................................................5
Q2: What is the Yield to Maturity that the investor gets from these debentures? .................................6
Q3: If the Company calls the debentures at a premium of 10% of the face value at the end of 5th year,
and the investor decides to put the debentures, how much would be the yield to call for the
investors?..................................................................................................................................................7
Q4: Comparing the debt offerings of Nature Care with the other similar debt issues during the month,
Do you think that investing in the debt issue of Nature Care is more rewarding for the investors?.......9
Appendix.........................................................................................................................................10
Own Funds to Borrowed Funds ..............................................................................................................10
Income Statement ..................................................................................................................................10
Public Debts Issues..................................................................................................................................10
Key Market Rates....................................................................................................................................11
3. Page 3 of 11
Group 2
MBA [Ex. Edu.] Batch 2012-2014, Semester – II
Assignment Nature Care India
Background
Incorporated in 1974, the product line broadly categorized into healthcare, personal care, & foods. The
company has good depth into urban & rural India. It also has global distribution networks spread across
USA, Australia, APAC, Middle East, and Europe, Africa.
Vision
Dedicated to the health and well-being of every household
Mission
We will be a leading company in nature-based solutions & outperform by focusing on expansion,
innovation, & acquisition.
Company Highlights
Company has far reaching penetration into urban as well as rural India.
Delivered good results in the last 4 years despite adverse demand conditions.
Focusing on 3 key elements: Expansion, Innovation and Acquisition.
Extremely high Debt-Equity ratio.
Extremely comfortable position in terms of coverage of interest (See Income Statement)
Sector (FMCG) Highlights
FMCG sector still remains the fourth largest sector in economy with a total market size in excess
of USD 13.1 billion.
Top 15 FMCG companies clocked sales and profit growth of 23% and 12% for the quarter ended
Sep, 2006.
FMCG Sector set on rapid growth trajectory with a projected growth by over 60% by 2010. This
translates an annual growth of 10% over a 5 year period.
Hair Care, Household Care, male grooming, chocolates, and confectionaries are fast growing
segment.
Total size of FMCG sector will rise from around ₹ 56,500 crore in 2005 to ₹ 92,100 crore in 2010.
Current Strategy
In view of the emerging growth potential across the various segments of its products, the Board of
Directors have decided to invest ₹ 150 crore in its different product segments in the next two years.
Investments will be made primarily to spruce up its R&D, supply chain and IT infrastructure. The
extremely comfortable position, in terms of coverage of its interest reflected in the Income Statement,
has convinced the company management to raise the funds through the public issue of non-convertible
debentures (NCD).
On Jan 15, 2007 the management announced the public issue of debt to fund their capacity
enhancement initiative.
4. Page 4 of 11
Group 2
MBA [Ex. Edu.] Batch 2012-2014, Semester – II
Assignment Nature Care India
Debt Issue
Issue 1,50,00,000 non-convertible debentures with fixed interest rates.
Issue price of debentures is ₹ 100
Maturity Time is 9 years
Coupon rate or Rate of Interest offered is 10.2 %
Debentures have Call option. Company can call any time after 5 years.
Rating AAA, given by CRISIL
Analysis
Investor Gains
• As per the given market conditions of FMCG market growth and lower inflation will help to
increase bond value thus capital gains from bonds will be increased.
• Even though these bond has a call back facility with minimum default risk, Investor would like to
invest further in newly issued bonds with lower interest rate by issuer due to strong market
conditions
• Excellent FMCG market conditions for nature care products will keep investors interested in long
term investments
Borrower Gains
• AAA rating given by CRISIL will allow borrower to cut down on default risk premium on interest
rates.
• Therefore borrower can borrow money from market at lower interest rates
• Due to call back facility borrower can replace re -issue bonds with lower interest rates and at
higher Bond price.
• Higher Debt to equity ratio will always give Nature Care top management a control over
decisions unlike control given to equity shareholders.
5. Page 5 of 11
Group 2
MBA [Ex. Edu.] Batch 2012-2014, Semester – II
Assignment Nature Care India
Questions
Q1: What is the Intrinsic value of the bond?
"Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a
business during its remaining life." - Warren Buffett
Solution:
ParV or Par Value : ₹100
Coupon Rate : 10.2%
Years to Maturity : 9 years
Intrinsic Value or Bond Value or BV = n
n
2
2
1
1
k)(1
CF
k)(1
CF
k)(1
CF
+ n
k)(1
ParV
Where k = 12% i.e. the Discounted current bonds market rate, n = 9 years, Par Value = 100, Coupon Rate
= 10.2%
CF1 = CF2 … CFn = ((Par Value * Coupon Rate) / 100) = (100 * 10.2/100) = 10.2
BV = 921
0.12)(1
10.2
12).0(1
10.2
12).0(1
10.2
+ 9
0.12)(1
100
BV = 921
(1.12)
10.2
12).(1
10.2
12).(1
10.2
+ 9
(1.12)
100
Bond Value or Intrinsic Value = 90.41
Conclusion: Given the current market rate of 12.00% for a similar bond, a bond with a face value of
₹100.00 and paying a coupon rate of 10.20% (compounding Annually), should be selling for ₹90.41
(selling at a discount).
6. Page 6 of 11
Group 2
MBA [Ex. Edu.] Batch 2012-2014, Semester – II
Assignment Nature Care India
Q2: What is the Yield to Maturity that the investor gets from these debentures?
Solution:
ParV or Par Value : ₹100
Coupon Rate : 10.2%
Years to Maturity : 9 years
Current Bond Value : 90.41
Current Yield : The current yield is the annual interest payment divided by the bond’s
current price.
i.e. ((10.20/90.41) * 100) : 11.282 %
Yield to Maturity (YTM) for a bond is the total return, interest plus capital gain, obtained from a bond
held to maturity.
1. Substract the current bond value/price with the Par value
Val = 100 – 90.14 = 9.86
The result is a discount and is stored in Val
2. Divide the discount i.e 9.86 by the remaining years to maturity (9 yrs) of the bond. This way we
arrive at annualized capital gain.
Val = 9.86/9 = 1.0955
3. Add the Annualized gain to the yearly interest (10.2) to obtain total annualized return.
Val = 1.0955 + 10.2 = 11.2955
4. Divide the annualized return (11.2955) by the current price (90.14) to obtain yield
Val = (11.2955/ 90.14) * 100 = 12.53 % (Name as A)
5. Subtract Annualized capital gain (1.0955) from par value
Val = 100 – 1.0955 = 98.9045
6. Divide the Annualized return 11.2955 by the result from previous step
Val = (11.2955 / 98.9045) * 100 = 11.4206 (Name as B)
7. Take average of A and B. This is our YTM
i.e. Val = (A + B )/2 = (12.53 + 11.4206 )/2 = 11.975
Ideally YTM is generally same as the bonds market rate of interest so it should come be equal to 12 %
YTM : 11.975%
Conclusion: A bond with a face value of ₹100.00 purchased for ₹90.41, paying annual coupon payments
of ₹10.20, will have an annualized rate of return of 12.000% if the bond is held until its maturity (9
years).
7. Page 7 of 11
Group 2
MBA [Ex. Edu.] Batch 2012-2014, Semester – II
Assignment Nature Care India
Q3: If the Company calls the debentures at a premium of 10% of the face value
at the end of 5th year, and the investor decides to put the debentures, how
much would be the yield to call for the investors?
Solution:
BV or Bond Value : ₹90.41 (As calculated in Q2)
ParV or Par Value : ₹100
Coupon Rate : 10.2%
Years to Maturity : 9 years
N or Years Until Call date : 5 years
K or Yield to Call : ?
In order to calculate Yield to Call, we need to solve this equation
Bond Value = N21
k)(1
INT
k)(1
INT
k)(1
INT
+ N
k)(1
PriceCall
Where
Call Price : ₹110 (Par Value + premium of 10% of Par value)
INT : (ParV * Coupon Rate )/100 = 100 * 10.2/100 = 10.2
and k = Yield to Call
90.41 = 521
k)(1
10.2
k)(1
10.2
k)(1
10.2
+ 5
k)(1
110
After solving the above equation :
Yield to Call i.e. YTC would be 14.39%
8. Page 8 of 11
Group 2
MBA [Ex. Edu.] Batch 2012-2014, Semester – II
Assignment Nature Care India
9. Page 9 of 11
Group 2
MBA [Ex. Edu.] Batch 2012-2014, Semester – II
Assignment Nature Care India
Q4: Comparing the debt offerings of Nature Care with the other similar debt
issues during the month, Do you think that investing in the debt issue of
Nature Care is more rewarding for the investors?
Solution:
The comparison is not a real Apple to Apple one, because the Ratings, Maturity date, and the Current
interest rates of other debt issuers are not same as Nature Care’s issue.
However, a comparison can be done based on the Current Yield of all public debt issues with Nature
Care’s. This will tell, how much a investor can expect by seeing the Current Yield of all debt issuers for
the current year.
We have to first calculate the Current Bond Value and the Current Yield of all the existing issues.
Bond Value and Current Yield have been shown in the 2nd
last and last column in the below table.
Please note that, in the table below, the Current Rate has been taken from Table - 4 (See Appendix)
Sr
No
.
Name of Issuer Coupon
Rate
Maturity
(Years)
Current
Market
Rate
Par
Value
Bond
Value
Current
Yield
1 LIC Housing
Finance
9.10% 10 7.62 %
(Govt.
Security)
100 110.10 8.265 %
2 Punjab State
Industrial
Development
Corp.
9.32% 10 7.62 %
(Govt.
Security)
100 111.61 8.350 %
3 Rural
Electrification
Corp. Ltd.
8.85% 10 8.79%
(Govt. PSU)
100 100.39 8.815 %
4 Sundaram
Finance Ltd.
9.60% 5 12%
(Same as NCI)
100 91.35 10.509 %
5 Yes Bank Ltd. 9.6% 15 6 %
(Bank Rate)
100 134.96 7.113 %
6 Bank of Rajasthan 9.50% 10 6 %
(Bank Rate)
100 125.76 7.554 %
For Nature Care India
BV or Bond Value : ₹90.41 (As calculated in Q2)
Current Yield : 11.282 %
Yield To Maturity : 12%
By seeing the table above, The Current Yield of Nature Care India is greater than the Current Yield of
other debt issues, and it can be concluded that investing in this issue is more rewarding for the
investors.
10. Page 10 of 11
Group 2
MBA [Ex. Edu.] Batch 2012-2014, Semester – II
Assignment Nature Care India
Appendix
Own Funds to Borrowed Funds
Profit / Loss Mar 2005
(₹ Crore)
Mar 2006
(₹ Crore)
Net Worth 338.07 447.87
Reserves and Surplus 309.43 390.54
Total Borrowings 48.63 20.57
Secured Borrowings 15.7 19.23
Unsecured Borrowings 32.93 1.34
Current portion of Long-Term debt 8.06 00
Table - 1
Income Statement
Profit / Loss Mar 2005 Mar 2006
PBDIT 186.72 239.85
Financial charges 4.65 5.73
PBDT 182.07 234.12
Depreciation 17.10 19.05
PBT 164.97 215.07
Tax Provision 17.00 25.78
PAT 147.97 189.29
Dividends 81.37 114.39
Retained Earnings 66.6 74.90
Table - 2
Public Debts Issues
Sr
No.
Name of Issuer Rate Maturity
(Years)
Rating Amount
(₹ crores)
Instrument
Type
1 LIC Housing Finance 9.10 10 AAA 265 Bonds
2 Punjab State Industrial
Development Corp.
9.32 10 N.A 30 Bonds
3 Rural Electrification
Corp. Ltd.
8.85 10 AAA 500 Bonds
4 Sundaram Finance Ltd. 9.60 5 AA+ 100 NCD
5 Yes Bank Ltd. 9.60 15 A+ 75 Bonds
6 Bank of Rajasthan 9.50 10 A 100 NCD
Table - 3
11. Page 11 of 11
Group 2
MBA [Ex. Edu.] Batch 2012-2014, Semester – II
Assignment Nature Care India
Key Market Rates
Type of Debt Securities Rate of Interest
Government Securities
10 years 7.62 %
11 years 7.79 %
15 years 8.07 %
PSU Bonds (AAA) – 5 years 8.79%
Treasury Bill
91 days 6.98 %
182 days 7.32 %
364 days 7.39
Bank Rate 6.00 %
Commercial (PR + 1)- 90 days 9.40 %
Table - 4