...Tangible assets: Assets which t have physical existence or which are touchable. Ex: Plant and machinery, buildings, furniture etc. Intangible assets: Assets which don’t have physical existence or which are not touchable. Ex: Goodwill, Patents, etc. Share warrants: (Page 74 of Tata steel annual report) A warrant gives the holder the right but not the obligation to buy an underlying security at a certain price, a specified quantity at predetermined future time. A share warrant cannot be issued by a private company. A share warrant can be issued only by public limited companies. The holder of the share warrant is entitled to receive dividend as decided by the company. Hybrid perpetual securities: The unique features of these securities are that they are perpetual in nature, with no maturity or redemption, and are callable only at the option of the Company thereby incorporating equity characteristics. (Page 154 and 128 of Tata steel annual report) Bonus issue: Capitalisation of reserves. It involves transfer of reserves and surplus to share capital account. It doesn’t involve cash inflows to the company. The number of shares outstanding increases. There is no change in the wealth of the shareholders effectively. Rights issue: It involves issue of shares to the existing shareholders. It involves cash inflows to the company. Number of shares outstanding also increases. Deferred tax liabilities/assets: (page 156, 179, 192 and 212) Deferred tax liability arises when the tax on...
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...History Of Tata Motors Tata Motors Ltd. is one part of the business conglomerate, Tata Group, and was formerly known as TELCO (Tata Engineering and Locomotive Company). The other ventures of Tata Group include Tata Steel, Tata Consultancy Services, Tata Technologies, Tata Tea, Titan Industries, Tata Power, Taj Hotels, and so on. Headquartered in Mumbai, India, Tata Motors is a multinational corporation accounting for 70% cumulative market share in the domestic commercial vehicle segment. Today, the company is the world’s second largest manufacturer of commercial vehicles, world’s fourth largest truck manufacturer and world’s second largest bus manufacturer. It is a dual-listed company, which is traded on both the Bombay Stock exchange as well as the New York Stock Exchange.. Information On Origin & Background Of Tata Motors Tata Motors was first established in 1935 as a locomotive manufacturing unit. The first commercial vehicle was manufactured in 1954, in collaboration with Daimler-Benz AG of Germany. In 1960, the first truck, quite similar to a Daimler truck, rolled out from the Tata factory in Pune. Ever since its launch, the truck became highly successful. However, the success of the commercial vehicles was just the beginning of the flourishing and booming future of Tata Motors. The company went ahead diversifying itself and took up other products as well. Apart from exporting heavy-duty trucks, the company decided to come up with lighter versions for the local...
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...Chap 20 - Inflation also has an impact on divident policy. -firm needs more sources of funds to finance the replacement of worn-out assets. -replacement is not same as expansion of firm's operations. -inflation means that the firm will have ti spend more to maintain its current operations. -source of funds : retention of earnigs. - no unique divident policy that all firms follow. - reasons : saving brokerage commission - prefer cash to capital gains. - other reasons: deferring capital gains taxes - prefer retention of earnings. - other reasons : availability of investment opportunities or need fir cash - if mgmt seeks to maximize wealth of SH : dividend decision depends on who has the better use for the money -- SH or the firm -SH who dont like the dividend policy may sell share and vice versa - if sellers exceed buyers, value of share will fall and mgmt will become aware of the stockholders' preference for the cash dividends instrad of the retention of earnings. CASH DIVIDENDS - Comp that do pay cash dividends usually have a policy that is eithet stated or implicitly known by the investment community. - Payout ratio : ratio if cash dividends to earnings ; cash dividends divided by earnings per share. -if dollar amt of dividend us stable, payout ratio will fluctuate w fluctuation in earnings. -stability un dividends: amt of earnings retained varues each year and that mgmt has decided to maintain a stable dividend at the expense of stable increases...
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...on the business of a "banking company" as defined by the Banking Companies Ordinance, 1962; 2. The borrowing, raising or taking up of money. 3. The lending or advancing of money either upon or without security. 4. The drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills of exchange, hundies, promissory notes, coupons, drafts, bills of lading, railway receipts, warrants, debentures, certificates, scrips, participation term certificates, term fmance certificates, musharika certificates, modaraba certificates and such other instruments as may be approved by the State Bank of Pakistan and other instruments and securities whether transferable or negotiable or not. 5. The granting and issuing of letters of credit, travelers' cheques and circular notes. 6. The buying, selling and dealing in bullion and species. 7. The buying and selling of foreign exchange including foreign bank notes. 8. The acquiring, holding, issuing on commission, underwriting and dealing in stock, funds, shares, debentures, debenture stock, bonds, obligations, securities, participation term certificates, term finance certificates, musharika certificates, modaraba certificates and such other instruments as may be approved by the State Bank of Pakistan and investments of all kinds. 9. The purchasing and selling of bonds, scrips or other forms of securities, participation term certificates, term finance certificates, musharika...
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...INTRODUCTION FINANCIAL SYSTEM: it is the system of country which deals with the financial aspects. COMPONENTS OF FINANCIAL SYSTEM: I. FINANCIAL MARKETS II. FINANCIAL INSTITUTIONS III. FINANICAL INSTRUMENTS IV. FINANCIAL SERVICES. I. FINANCIAL MARKETS * Primary markets: deals with new issues * Secondary markets: trading in existing securities II. FINANCIAL INSTITUTIONS: these are the institutions which deal with the financial instruments. They create the various instruments of credit. III. FINANCIAL INSTRUMENTS: these are the claims against an institution or a person for payment at a future date of sum of money in the form of dividend/ interest. IV.FINANCIAL SERVICES: financial services are those which help in borrowing and funding, buying and selling securities, lending and investing, making and enabling payments and settlements and managing risk exposures in financial markets * MEANING OF FINANCIAL SERVICES All types of activities which are of financial nature may be regarded as financial services. In simple words, the term financial services means mobilizing and allocating savings. Thus, it includes all activities in the transformation of savings into investments., The financial services is also called financial intermediation. Financial intermediation is the process by which funds are mobilized from savers and make them available to the corporate customers for investments. Financial intermediaries Money market intermediaries(...
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...------------------------------------------------- CHAP 19 When a company issues securities to the general public, it usually uses the services of an investment banker who underwrites (purchases at a fixed price on a fixed date) new securities for resale. For this service, investment bankers receive the difference, or underwriting spread, between the price they pay for the security and the price at which the security is resold to the public. There are three primary means by which companies offer securities to the general public: 1) Traditional (or firm commitment) underwriting If the issue does not sell well, either because of an adverse turns in the, market or because it is overpriced, the underwriter, not the company, takes the loss. They compensated the risk-bearing function through the underwriting spread Competitive-bid: the issuing company specifies the date that sealed bids will be received, Competing syndicates submit bids, and the syndicate with the highest bid wins the security issue. Negotiated Offering: The issuing company selects an investment banking firm and works directly with the firm to determine the essential features of the issue.Together they discuss and negotiate a price for the security and the timing of the issue.Depending on the size of the issue, the investment banker may invite other firms to join in sharing the risk and selling the issue.Generally used in corporate stock and most corporate bond issues. 2) Best efforts offering ...
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...produced extensive changes in the Structure of Company Law, which was existed in that time. At present in Bangladesh, The Companies Act 1994 is the parent instrument of Company Law. 1.2. Objects and Purposes of Company Legislation The Company is a form of business institution in which the funds of a large number of investors are managed by a few persons for the purpose of earning profits, which are shared by all the investors. Following are the main objects and purposes of statutes relating to companies. 1) Encourage investments in companies by providing certain facilities, i.e., limitation of liability, transferability of shares etc. 2) Ensure due and proper administration of the funds and assets of companies in the interest of the investing persons. 3) Present malpractices by directors and managers. 4) Arrange for investigation into the affairs of companies and provide for effective audit in dealing with cases of dishonesty and fraud in the corporate sector. 1.3. Definition of Company The term Company is used to describe an association of a number of persons, formed for some common purpose and registered according to the law...
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...PRIVATE AND PUBLIC COMPANIES A company is any entity engaging in business, such as a proprietorship, partnership, or corporation. A company is a private company if by its Regulations, it fulfills the following conditions: • Where it is a company registered with shares, there is a restriction of the right to transfer shares • The total number of members and debenture holders do not exceed 50. This number excludes genuine employees and ex-employees of the company who became members or debenture holders during their employment, and continued to be so after their employment. The exclusion of employees is designed to enable companies to institute co-partnerships schemes without forfeiting their private status • The company is prohibited from making of any public invitations for the acquisition of its shares and debentures • The company is prohibited from making an invitation to the public to deposit money for fixed periods or payable at call, whether interest-bearing or not. Any other company is a public company. PUBLIC COMPANY A company which has issued securities through an offering, and which are now traded on the open market. also called publicly held or publicly traded. opposite of private company. A company that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over the counter market. Although a small percentage of shares may be initially "floated" to the public, the act of becoming a...
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...INVESTMAP Fact Sheet for June 2012 Toll Free 1800 425 5959 www.sundarammutual.com SMS SFUND to 56767 Email service@sundarammutual.com Sundaram Mutual Fund Track Record Equity Funds Fund / Benchmark Satish Ramanathan Sundaram Select Mid Cap BSE Mid Cap Index S&P CNX Nifty Index Srividhya Rajesh Sundaram Select Focus S&P CNX Nifty Index S&P CNX Nifty Index Sundaram Capex Opportunities BSE Capital Goods Index S&P CNX Nifty Index Sundaram Equity Plus S&P CNX Nifty(65%) & Price of Gold in INR(35%) S&P CNX Nifty Index J Venkatesan Sundaram Growth Fund BSE 200 Index S&P CNX Nifty Index Sundaram India Leadership S&P CNX Nifty Index S&P CNX Nifty Index Sundaram Financial Opportunities CNX Banks Index S&P CNX Nifty Index Sundaram Rural India BSE 500 Index S&P CNX Nifty Index Sundaram Entertainment Opportunities CNX Media Index S&P CNX Nifty Index Sundaram PSU Opportunities CNX PSE Index S&P CNX Nifty Index S Krishnakumar Sundaram SMILE Fund CNX Mid Cap Index S&P CNX Nifty Index Sundaram Energy Opportunities BSE Oil & Gas Index S&P CNX Nifty Index Sundaram Equity Multiplier S&P CNX 500 Index S&P CNX Nifty Index Jointly Managed by Srividhya Rajesh and S Bharath Sundaram Balanced Fund CRISIL Balanced Fund Index S&P CNX Nifty Index Jointly Managed by Srividhya Rajesh and J Venkatesan Sundaram Tax Saver BSE 200 Index S&P CNX Nifty Index S Bharath Sundaram Global Advantage Fund MSCI Index CNX Nifty 30/06/11 30/06/10 ...
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...governments • You can take your savings and go into Direct Investments (like property, equipment, infrastructure) - these are called real assets • Or you can take your savings into Indirect Investments (like stocks; we buy share of a company and we give company the money, bonds; we lend money to companies and governments, GIC; we leave money with the bank and the bank pays us a level of interest) - these are called financial assets/ claims • Bonds are claims against asset • The money we give to users, they give us one of these claims (financial assets), they take the money and invest in real assets, so we buy a stock of the company that buys apartment buildings. Either way we're still investing in apartment buildings, directly we own the real thing and indirectly have a financial claim on the real thing 3 Characteristics of Capital: 1) It is mobile - it can travel anywhere in the world 2) Sensitive to the environment - if you're in an area with high taxes you can move to an area with low taxes. If you're in an area with low interest rates, low returns you can move to an area with high interest rates, high returns to get a better yield 3) Scarce - you have so much of it • The only source of capital is savers. If somebody can't save, they have no investment potential • Savers become investors. Investors can be retail (like you and I investing our extra earnings), institutions (like pension funds, insurance companies) or foreign investors (like other investors in other countries...
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... has come up with its public issue of Secured Non Convertible Debentures (NCDs) aggregating upto Rs. 375 crore with an option to retain over-subscription upto Rs. 375 crore for issuance of additional NCDs aggregating to a total of upto Rs. 750 crore. The Issue is open from August 11, 2011 to August 27, 2011 (The Company has the option of closing the issue on an earlier date, once it receives the amount it has targeted). The company will be paying an interest ranging between 11.50% and 12.10% p.a. on these bonds. Given the current scenario of rising interest rates in Indian debt markets where rates are expected to be close to their peak levels, the issue provides an opportunity to lock in attractive returns for a period of 3-5 years. This issue offers better interest rates compared to other alternatives though with slightly lower credit rating. Further, given its unique business model, decent financial history, reasonable credit rating and safety (Secured NCDs are 100% secured by assets of the company), investors comfortable with primary market offerings can participate in this issue (low to medium risk, medium - long term investment). If convinced, the investor needs to apply at the earliest as allotment is to be made on first come first serve basis. Investors can also look at NCDs of companies already listed on the exchanges that offer higher safety in terms of credit rating and similar or slightly lower interest rates. A table of such NCDs is pasted below in this note. Objects...
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...Indian Capital Market Nidhi Bothra Payel Jain Vinod Kothari & Company What are Financial markets Financial market is a market where financial instruments are exchanged or traded and helps in determining the prices of the assets that are traded in and is also called the price discovery process. 1. Organizations that facilitate the trade in financial products. For e.g. Stock exchanges (NYSE, Nasdaq) facilitate the trade in stocks, bonds and warrants. 2. Coming together of buyer and sellers at a common platform to trade financial products is termed as financial markets, i.e. stocks and shares are traded between buyers and sellers in a number of ways including: the use of stock exchanges; directly between buyers and sellers etc. Financial markets may be classified on the basis of • • • • types of claims – debt and equity markets maturity – money market and capital market trade – spot market and delivery market deals in financial claims – primary market and secondary market Indian Financial Market consists of the following markets: • • • Capital Market/ Securities Market o Primary capital market o Secondary capital market Money Market Debt Market Primary capital market- A market where new securities are bought and sold for the first time Types of issues in Primary market • • • • • Initial public offer (IPO) (in case of an unlisted company), Follow-on public offer (FPO), Rights offer such that securities are offered to existing...
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...Results Canadian National Railway Company (CN) * Generated $7.9 billion in revenues; $2.2 billion in income after expenses and income taxes * Owed $5.6 billion to creditors; Assets of $23.5 billion Organization - a collection of individuals pursuing the same goal or objective. Ex: Student groups, a government, a business, a club, or a charity * Need financial information to describe the resources they hold and to support the various financial decisions they make Forms of Organizations Business Entities: * organized to earn an income (also known as profit) Sole Proprietorships - A business with a single owner * Economic Entity Concept - The assumption that a single, identifiable unit must be accounted for in all students; financial statements prepared for a business must not intermingle one's personal affairs with the affairs of the entity. * The Canada Revenue Agency does not recognize the separate existence of a proprietorship from its owner. It is not a taxable entity; any income earned by the business is taxed on the tax return of the individual. Partnerships - A business owned by two or more individuals and with the characteristic of unlimited liability. Ex: PricewaterhouseCoopers * Starting out, partners need an agreement as to how much each will contribute to the business and how they will divide the income * Not a taxable entity; the individual partners pay taxes on their proportionate shares of the income of the business Corporations...
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...|FOR INDIVIDUAL & OTHER TAXPAYERS (OTHER THAN COMPANY) | FORM OF RETURN OF INCOME UNDER THE INCOME TAX ORDINANCE, 1984 (XXXVI OF 1984) Put the tick (() mark wherever applicable 1. Name of the Assessee: Mohammad Abu Baker Siddick 2. National ID No (if any) : 525501546008 |3. UTIN (if any): | | | | 14. Address (a) Present: Deputy Director , Anti Corruption Commission, Head Office , 1, Segun Bagicha, Dhaka-1000 ........................................................................................................ ........................................................................................................ (b) Permanent: 8/2 Rankin Street, Wari, Dhaka-1203............................................. ........................................................................................................ ......................................................................................................... 15. Telephone: Office/Business +88-02-9339162.. Residential: +88-02-9511884....................... 16. VAT Registration Number (if any): .......................................................................................... Statement...
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... | |Chapter 18: Operating & Financial Leverage | |Chapter Review Solutions | Note: Answers contain the new company tax rate of 30%. 1. | | |( i ) |( ii ) |( iii ) | | |E.B.I.T. | 400,000 | 400,000 | 400,000 | |Less |Interest | < 0 > | < 240,000 > | | | |E.B.T. | 400,000 | 160,000 | 280,000 | |Less |Tax @ 30% | < 120,000 > | < 48,000 > | < 84,000> | | |E.A.T. | 280,000 | 112,000 | 196,000 | |÷ |No. of Ordinary Shares |5,000,000 |3,000,000 |4,000,000 | |( |E.P.S |5.60 |3.73 ...
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