finances plural : money or other liquid resources of a government, business, group, or individual The library closed due to a lack of finances.

1. FINANCES

2. *
*Financial management is more than keeping
accounting records.
*It is an essential part of organisational management
and cannot be seen as a separate task to be left to
finance staff or the honorary treasurer.

3. *Financial management involves planning, organising, controlling and
monitoring financial resources in order to achieve organisational
objectives.
*You can only achieve effective financial management if you have a
sound organisational plan.
*A plan in this context means having set
objectives and having agreed, developed
and evaluated the policies, strategies,
tactics and actions to achieve these
objectives.

5. *
*Return on Investment
It is a known fact that a project collects funds from two sources for any long
term investment. The amount collected is used to create assets and operation,
which generates surplus for the enterprise. The surplus is required to be
distributed to the contributors of the funds. Interest is the compensation given
to contributors of borrowed capital and net profit and depreciation are given to
the contributors of own capital.

6.  Debt Service Coverage Ratio: DSCR
Running an enterprise with financial support from banks/financial institutions
require their loans to be repaid with interest.
Therefore, an entrepreneur must generate surplus, adequate to meet
repayment obligations.
The debt service coverage ratio is a tool used to determine this. The formula is
as mentioned below:
(Net profit + Interest (on long term loans)+ depreciation)/Interest (on long term
loans) + term loan instalments.

8. *Depreciation
Though depreciation reduces the profit, it is a non cash provision made in recovering
the original investment. Thus, the cash profit of the enterprise is increased to the extent
of depreciation.
The total surplus generated by the project over its entire life has to be averaged to find
out yearly return. This yearly return, when calculated on the total investment required
for the project provides details about the return on investment. Simply speaking, this
ratio tells about the surplus generating capacity of the investment.

11. PMEGP
Government of India has approved the
Introduction of a new credit linked subsidy
programme called Prime Minister's Employment
Generation Programme (PMEGP) .
 To generate continuous and sustainable employment
opportunities in Rural and Urban areas of the country.

12. *To provide continuous and sustainable employment to a large
segment of traditional and prospective artisans, rural and
urban unemployed youth in the country through setting up of
micro enterprises.
*To facilitate participation of financial institutions for higher
credit flow to micro sector.
*The Scheme is formulated by merging Prime Minister’s Rojgar
Yojana (PMRY) and Rural Employment Generation Programme
(REGP).

14. CMRY
• The CMRY is a loan scheme sponsored by the
government of Goa and implemented by the Goa
economic development corporation since 2001.
 It aims to boost self-employment and to curb the
problem of unemployment in Goa.
 Applicants must belong to the age bracket of 18 to 40 years with five years
relaxation given to reserved categories. Applicants need to be at least VIII
standard pass but this is relax able in deserving cases.
 The loan amount under CMRY has been enhanced from 4 lakh to 15 lakh for
non-technical persons and from 6 lakh to 20 lakh for professionals and
technically qualified persons.