FINANCIAL ANALYSIS

Corporate Finance

Financial Services

Derivative Market

Consulting

2

CORPORATE FINANCE

Corporate finance is primarily concerned with

maximizing shareholder value through long-

term and short-term financial planning and the

implementation of various strategies.

Everything from capital investment decisions

to investment banking falls under the domain

of corporate finance.

3

Corporate Finance - Profile Fund mobilisation

Long term

Project finance – equity / debt

Working capital – debt including bank funding

Short term

Working capital / Funding mismatch

Day-to-day functioning

Debt servicing

Working capital management - including cash

Treasury management - Investment of surplus funds

Managing legal covenants relating to funding

4

Corporate Finance – Profile (contd.)

Strategic issues

Feasibility study of proposed expansion projects

Feasibility of M&A issues – pricing structure

Dividend policies

Re-financing issues

Interest cost reduction operations

Role in operational cost control

Credit policy formulation, operation and control

5

FINANCIAL-SERVICES

it can be defined as the products and

services offered by institutions like banks

of various kinds for the facilitation of

various financial transactions and other

related activities in the world of finance

like loans, insurance, credit cards,

investment opportunities.

6

FUNCTIONON OF FINACIAL-SERVICE

7

Financial Services

NBFC Business

Leasing & HP

Corporate funding

Syndication

Own Treasury management

Portfolio Management Services

FACTORING services

CREDIT RATING

8

NON-BANKING FINAICIAL COMPANY

NBFCs, are financial institutions that providebanking services, but do not hold a banking license.These institutions are not allowed to take depositsfrom the public. all operations of these institutionsare still covered under banking regulations.

The number of non-banking financial companies hasexpanded greatly in the last several years as venturecapital companies, retail and industrial companieshave entered the lending business.

9

FACTORING SERVICES

A financial intermediary that purchases

receivables from a company. A factor is

essentially a funding source that agrees to pay

the company the value of the invoice less a

discount for commission and fees. The factor

advances most of the invoiced amount to the

company immediately and the balance upon

receipt of funds from the invoiced party.

10

CREDIT RATING

A credit rating can be assigned to any entity that

seeks to borrow money – an individual, corporation

or state Credit assessment and evaluation for

companies and governments is generally done by a

credit rating agency such as Standard & Poor’s or

Moody’s. These For individuals, credit ratings are

derived from the credit history maintained by credit-

reporting agencies such as Equifax, Experian and

Trans Union.

11

Financial Services (contd.)

BROKING Equity broking

Retail – research / advisory

Institutional broking - relationship, dealers, research

HNI – relationship, advisory

FIXED INCOME

Institutional – relationship, dealer, research

Proprietory – treasury management

Commodities Research

12

Financial Services (contd.)

Banking

Appraisal

Corporate Relationship

Treasury

Bill discounting

Term loan

Retail operations

Risk management

Forex

13

INSURANCES

Insurance is an economic institution that allows

the transfer of financial risk from an individual

to a pooled group of risks by means of a two-

party contract. Insurers may offer fixed, specified

coverage or replacement coverage, which takes

into account the increased cost of putting the

structure back to its original condition.

14

15

16

Financial Services (contd.)

Insurance

Risk assessment

Policy formulation

Treasury

Project Appraisal

Funding operations

Equity operations – Research, portfolio management

17

MUTUAL -FUND Mutual funds are operated by money

managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors.

One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult

18

Mutual Funds

Research

Fund management

19

Derivative market

It is another important scope of financial services,

That is Derivative market. A security whose price

is dependent upon or derived from one or more

underlying assets. . Its value is determined by

fluctuations in the underlying asset. The most

common underlying assets include stocks, bonds,

commodities, currencies, interest rates and market

indexes. Most derivatives are characterized by high

leverage.

20

CONSULTING

Corporate Consulting◦ Syndication

◦ Credit profile advisory

◦ M& A advisory

◦ Project advisory

◦ Risk advisory

◦ Forex advisory

Retail advisory◦ Wealth management –

insurance/equity/fixed income/ tax advisory/property/art/...

21

22