financial management

Views:
 
     
 

Presentation Description

financial terms like buy back, financial services, leasing, venture capital and mutual funds

Comments

Presentation Transcript

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT PRESENTATION OF FINANCIAL MANAGEMENT FOR THE TOPIC OF FINANCIAL TERMS Prepared by : Vishal D. Patel

PowerPoint Presentation:

PRESENTATION ON FOLLOWING TOPICS: BUY BACK FINANCIAL SERVICES LEASING MUTUAL FUNDS VENTURE CAPITAL 1/10/2013 FINANCIAL MANAGEMENT

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT Buy Back of Shares

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT Buy back……..Concept What Does Buyback Mean? The repurchase of outstanding shares (repurchase) by a company to reduce the number of shares in the market Companies will buy back shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be looking for a controlling stake

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT Why companies buyback Unused cash Tax gains Market perception Exit option Escape monitoring of accounts and legal contracts Increase promoters stake

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT Ways of Buyback Book building method Open market Dutch method

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT Legal aspects Indian Companies Act 1956, Section 77A, SEBI (Buy Back of Securities) Regulations, 1998 are applicable A special resolution has to be passed in general meeting of the shareholders If the buyback is more than 10% of the total paid up capital Buyback should not exceed 25% of the total paid-up capital and free reserves The company should not make any further issue of securities within 2 years , except bonus, conversion of warrants

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT Valuation of buy back Average closing price (which is a weighted average for volume) for a period immediately before to the buyback announcement In the 2 nd, shareholders are invited to sell some or all of their shares within a set price range Generally, the price is fixed at a mark up over and above the average price of the last 12-18 months

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT FINANCIAL SERVICES

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT INTRODUCTION Financial services refer to services provided by the finance industry . these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises.

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT LEASING

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT A lease is a contractual arrangement in which a party owning an asset (lessor ) provide the asset for use to another party ( lessee) for a agreed period of time in consideration of a periodic payment (rentals). At the end of the contract (lease period ), the asset reverts back to the lessor, unless there is a provision for the renewal of the contract Definition

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT Essential Elements Parties to the contract Essentially two parties : lessor and lessee Both can be individuals, partnerships, joint stock companies Joint lessor and lessee , where amount is enormous Contract may involve lease financiers , who refinance lessor

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT Asset The asset is the subject matter of the contract Asset must be of lessee's choice , suitable for his business needs . Separation of ownership from user Term of lease The time period for which lease remain operational A definite time period is required otherwise , it will be legally inoperative The period may stretch over the entire economic life of the asset Lease rentals So structured as to compensate the lessor for the investment made in the asset

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT Classification basis : ■ The lease transaction can differ on the basis of: The extent to which risk and reward of ownership are transferred Risk refers to possibility of loss for under utilization or technological obsolescence of the equipment Reward mean cash flow generated from the usage of equipment and residual value No. of parties to the transaction A Domicile of lessor and lessee

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT Finance lease and operating lease Sales and lease back and direct lease Single investor lease and leveraged lease Domestic lease and international lease Types of leasing:

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT MUTUAL FUNDS

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT What is Mutual Fund? A money-managing systems that are introduced to professionally invest money collected from the public. The Asset Management Companies (AMCs) manage different types of mutual fund schemes

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT 4 phases in the Indian Mutual Funds investment First Phase - 1964- -1987 Second Phase - 1987-1993 (Entry of Public Sector Funds) Third Phase - 1993-2003 (Entry of Private Sector Funds) Fourth Phase - since February 2003

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT Closed-end mutual funds :-A closed-end mutual fund bears a number of shares which are issued to the public by an initial public offering (IPO). Open end mutual funds : - Open end funds are managed by mutual fund houses for raising money from shareholders and they invest in a group of assets . CA TA GO RI ES :

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT Top mutual funds in India Reliance Mutual Fund HDFC Equity Fund ICICI Prudential Fund SBI Mutual Fund

PowerPoint Presentation:

1/10/2013 FINANCIAL MANAGEMENT THANK YOU

authorStream Live Help