This document discusses the assessment of term loans and working capital limits. It provides details on:
- Term loans being provided for medium to long term periods for new/existing projects, secured by fixed assets, with repayment over a specific period.
- Factors considered in term loan appraisal like technical feasibility, commercial viability, financial viability, etc.
- Projections of balance sheets, profit and loss statements, and key financial ratios for term loan assessment.
- Types of working capital facilities provided by banks like cash credit, overdrafts, and short term loans.
- Methods of working capital assessment like turnover method and inventory method based on the operating cycle.
- Non-fund based
Quantitative Study of Comparison between Indian GAAP and IFRS - Corporate Fin...Aakriti Agarwal
Based on the thesis "Cash Flow Ratios to Predict Soundness of Business Investment" we've tried to see how the performance of a company might seem different financially just because of difference in accounting standards. This is also an attempt to unmask the true picture of a company's financial health from its operations alone.
The main Financial Statements and Tables are following as simply forms;
Balance Sheet,
Income Statement,
Cash Flows Statement,
Retained Earning Statement
are here for you.
Best regards,
Sümeyye Karaca
This is a useful template depicting the analytical method used by Banks & Financial Institution to assesse the working capital requirement of Customer.
Project Loan is the financing of long term infrastructure, industrial projects and public services.
Business financing is a loan structure that relies primarily on the project’s cash flow for repayment, with project’s asset, rights and interests held as secondary security or collateral
.Purpose of loans
To expand the business
To expand business location
To build credit for future requirements
To purchase equipment's for business
To purchase more inventories .
Quantitative Study of Comparison between Indian GAAP and IFRS - Corporate Fin...Aakriti Agarwal
Based on the thesis "Cash Flow Ratios to Predict Soundness of Business Investment" we've tried to see how the performance of a company might seem different financially just because of difference in accounting standards. This is also an attempt to unmask the true picture of a company's financial health from its operations alone.
The main Financial Statements and Tables are following as simply forms;
Balance Sheet,
Income Statement,
Cash Flows Statement,
Retained Earning Statement
are here for you.
Best regards,
Sümeyye Karaca
This is a useful template depicting the analytical method used by Banks & Financial Institution to assesse the working capital requirement of Customer.
Project Loan is the financing of long term infrastructure, industrial projects and public services.
Business financing is a loan structure that relies primarily on the project’s cash flow for repayment, with project’s asset, rights and interests held as secondary security or collateral
.Purpose of loans
To expand the business
To expand business location
To build credit for future requirements
To purchase equipment's for business
To purchase more inventories .
SBI Money Market Funds : Investment in Debt & Money Market Securities - Apr 2016SBI Mutual Fund
SBI Money Market Fund comprises of SBI Premier Liquid Fund and SBI Ultra Short Term Debt Fund. SBI Premier Liquid Fund is a liquid fund and the scheme investments would be made in securities with maturity less than or equal to 91 days. SBI Ultra Short Term Debt Fund would seek to generate regular returns while providing investors with a high degree of liquidity through investment in a portfolio comprising predominantly money market instruments with maturity / residual maturity up to one year. Check SBI MF Premier Liquid Fund On https://www.sbimf.com/Products/LiquidSchemes/SBI_Premier_Liquid_Fund.aspx and SBI Ultra Short Debt Fund on https://www.sbimf.com/Products/DebtSchemes/SBI_Ultra_Short_Term_Debt_Fund.aspx
Financial planning for businesse startersrobert377655
The document brings a skill of establishing what financial information is required before you actually start mobilizing resources for business operations
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.
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
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.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
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 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.
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.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
3. Term loan
Provided for medium & long term ( 3 to 15 years) periods for
new / existing projects for expansion / diversification
Repayment is for specific period with initial holiday period
Secured by fixed assets such as land/ building/ plant / machinery/
other fixed assets
Basic aspect in T L is that the borrower should repay the amount
with interest from the anticipated income earned from the
assets acquired.
Technical & economic viability of the project is a must for
considering the term loan.
In India, the commercial banks extend term loan along with other
banks & F I’s in the Consortium / multiple banking modes.
4. Term loan appraisal
No item to be ignored in project financing
Costs shown should be true & not overstated.
Three sets of quotation from various suppliers to be obtained
Suppliers details and credibility need to be verified
Building construction estimates to be properly vetted
Funds to be released based on progress of the work.
Security coverage is to be assessed.
5. Term loan appraisal
Technical
feasibility
Commercial
viability
Managerial
competence
Financial
viability
Technology / process
Indian/ foreign/
Collaboration
back up arrangement
Infrastructure
Availability of land /
R M / transport/
power / water
Pollution/
Project implementation
E I C analysis
Demand/ supply of
the product
Competition/ market
Marketing abilities
Product / service
differentiation
Organization set up
CCC of the borrower
finance,
management
Operations
H R
Qualified technical
persons
Cost of the project &
means of finance
Production/
profitability
Cash flow/ funds flow
Projected balance sheet
profitability statements
B E P / CMA
6. Cost of project
Land (inc dev charges)
Building / Machinery
(inc fright / transp. erection charges)
Other fixed assets
Technical Know- how
Consultancy charges
Preliminary expenses
Contingent expenses
Working capital margin
Total
Means of Finance
Capital (equity)
USL from others
Term loan from bank/s
Term loan from F I’s
Subsidy from Government (if any)
Total
7. Balance sheet Projections
Balance sheet Base
yr
1st yr
Esti
2nd yr
Proj
3rd yr
Proj.
4th yr
Proj.
5th yr
Proj.
6th yr
Proj
7th yr
proj
Share capital
Reserves & surplus
Other term liabilities
Other current
liabilities
Total liabilities
Net Fixed assets
L. T Investments
L T loans /advances
Current assets
Investments/ others
Intangibles
Total assets
8. Profit & loss projections
Base
yr
1st yr
Esti
2nd yr
Proj
3rd yr
Proj.
4th yr
Proj.
5th yr
Proj.
6th yr
Proj
7th yr
proj
Total sales/ revenue
Cost of production
Raw materials
Labour
Power/ fuel
Repairs
Administrative exp
Depreciation
Interest
Operating profit
Taxes
PAT
9. Specific Ratios for term loan
Debt-equity= long term liabilities / Net worth ( 2 to 3 )
Debt to total funds ratio= L T Debts / share holders funds + Long term
debts
Debt to total asset ratio= Total debt/ total assets
Interest coverage ratio= EBIT/ fixed interest charges. ( 1.5 to 2 )
DSCR= PAT + Depreciation + Interest on Term Loans ( 1.5 to 2 )
Interest on term Loan + Term Loan installments
B E P= Fixed costs / Contribution (Sales – Variable Costs )
For long term projects - IRR, PBP & N P V is also calculated
11. Working capital
Types of working capital provided by Indian Banks are cash credit
(Open/ Key) / overdraft / Bills discounting or purchase , STL
Cash credit / bills limits are assessed based on the production/
sales/inventory/ past credit limits.
Customer allowed to draw the amount from the cash credit account as
per his requirement & also deposit the amount based on the surplus
funds available.
Cash credit / overdrafts are running accounts & the credits in the
account should reflect the sales of the company.
The drawals permitted to the extent of the drawing power
D P is calculated based on the stock statement submitted on monthly
and suitable margins are maintained for RM/ SFG/ FG/ B D
12. Working capital (cont’d)
Interest is charged on the actual usage of the limit.
There are three methods of working capital assessment.
The turn over method (Nayak committee) , the inventory method &
II method of lending (Chore committee)
The turn over method / inventory method is normally used for
working capital limits up to Rs 5 crs & second method thereafter.
If the operating cycle is three months & less , the turnover method
is followed & inventory method for more than three months .
It should be ensured that the projected turn over is following
similar trend as per the last three years. Any deviation may need a
closer look for further inputs.
Operating cycle method is applied
13. Temporary & permanent W C
WorkingcapitalinRs
Time
Regular Working capital
Temporary Working capital
Working capital for a growing company
14. Working capital Cycle
1. Cash
4. F G
3. SFG
6.
Debtors
5. Sales
2. R M
Operating cycle for manufacturing firm
15. Working capital cycle
1. Cash
2. F G
4. Debtors
3 . Sales
Operating cycle for non manufacturing firm
16. Factors influencing Working capital
Nature of business
Size of the business
Production cycle process
Production policy
Terms of purchase & sales
Business cycle ( Up ward/ down ward)
Growth & expansion
Availability of R M
Profit level
Operating efficiency
Availability of credit
17. Working capital (cont’d)
Turn over method (Nayak committee )
Operating cycle of three months & less
25% of the projected turn over
Minimum working capital margin ( NWC) - 5% of the projected
sales
Borrower has to bring additional margin if it is less than the
prescribed limit
Working capital eligibility = (25 % of projected turn over – min
NWC or actual NWC ) which ever is less
NWC = Current assets - current liability
18. Working capital (cont’d)
Inventory method (Operating cycle of more than three months )
1 Build up of current assets
2 Build up of current liabilities
(other than Bank borrowings for W C)
3 Working capital gap ( 1-2)
4 Actual NWC
5 Required NWC ( min 15% of current assets )
6 Maximum permissible bank borrowings ( 3-4 ) or
( 3-5) which ever is less
7 Margin to be brought in ( 5-4)
The minimum stipulated margins can vary from banks to banks
based on the credit policy guidelines
Ex; ( It can be 15% / 20% / 25% )
19. Working capital (cont’d)
II method of lending (Chore committee ) for credit limits above Rs 5 crs
1 Build up of current assets Amt
2 Build up of current liabilities
(other than Bank borrowings for W C)
3 Working capital gap ( 1-2)
4 Actual NWC
5 Required NWC ( min 25% of current assets )(excluding export
receivables)
6 Maximum permissible bank borrowings ( 3-4 ) or ( 3-5) which ever
is less
7 Margin to be brought in ( 5-4)
Borrower provides the required CA , CL for the next year based on the past
performance in CMA . The build up has to be in line with past
Min 25% of the Current assets has to provided as NWC by the borrower .
21. NON Fund based limits- L C
Parties to LC
1. Applicant/ Importer
2. Beneficiary/ Exporter
3. Issuing bank / Importers bank
4. Advising bank / Exporters bank
22. Types of L C
ILC/ FLC Sight/
Usance
Revocable/
Irrevocable
Confirmed
Unconfirmed
Back to Back
Red clause
(LC authorizes negotiating bank to
provide PC to exporter)
Green clause
( Also provides payments for storage)
Revolving
23. N FB Limits Assessment of FLC
ILC/ FLC is opened by Banks for credit purchase of Raw Materials
FLC is also opened for purchase of Imported capital goods.
FLC limit (For R M) (Rs in lakhs)
1 Annual purchase of imported R M 50 .00
2 Import component 24 .00
3 Average monthly purchase 2.00
4 Import duty element 0.50
5 Net value component ( 3-4) 1.50
6 Transit time 2 months
7 Usance period 2 months
8 Total period 2+2=4 months 6.00
9 FLC requirement 6.00
24. N FB Limits Assessment of ILC
1 Annual purchase of domestic R M on LC 36 .00
2 Average monthly purchase 3.00
3 Credit purchase 3 months
4 Transit period 0.5
months
5 Total period of RM purchased on LC 3.5 month
6 Total worth of R M on LC purchase 10.50
7 Total ILC requirement 10.50
25. N FB Limits Assessment of B G
B G is normally provided for three purposes.
Performance , Advance payment and Bid Bond guarantee
BID Bond guarantee (Rs in lakhs)
1 Projected contracts for the ensuring year 1000
2 Projected bids for the ensuring year 1800
3 Average monthly bids 150
4 Average Bid period 3 months
5 BG requirement 450
26. N FB Limits Assessment of B G
1 Orders received 1000
2 Advance payment to be received (10%) 100
3 BG for advance payment of the contract 100
4 Performance BG (10%) of the contract
( after completion of the project)
100
BG for advance payment/ performance