...in stock market and speculation in real estate. External Commercial Borrowings (ECB) are defined to include commercial bank loans, buyer’s credit, supplier’s credit, securitised instruments such as floating rate notes, fixed rate bonds etc., credit from official export credit agencies, commercial borrowings from the private sector window of multilateral financial institutions such as IFC, ADB, AFIC, CDC etc. and Investment by Foreign Institutional Investors (FIIs) in dedicated debt funds Applicants are free to raise ECB from any internationally recognised source like banks, export credit agencies, suppliers of equipment, foreign collaborations, foreign equity - holders, international capital markets etc. While FCCB are convertible Bonds issued in Foreign...
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...Table of Contents Capital Account Transactions Pages 03 to 08 FEMA Regulations – Capital Account Types of Capital A/c Transactions Foreign Institutional Investors Pages 09 to 11 Foreign Direct Investment Pages 12 to 15 American Depository Receipts Pages 16 to 17 Global Depository Receipts Pages 18 to 19 External Commercial Borrowings Pages 20 to 21 Foreign Currency Convertible Bonds Pages 22 to 25 Capital Account Convertibility Pages 26 to 28 Tarapore Committee and Current Status Pages 29 to 35 What is Capital Account Transaction? Capital account transaction is defined as a transaction which:- ➢ Alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India. In other words, it includes those transactions which are undertaken by a resident of India such that his/her assets or liabilities outside India are altered (either increased or decreased). For example:- (i) a resident of India acquires an immovable property outside India or acquires shares of a foreign company. This way his/her overseas assets are increased; or (ii) a resident of India borrows from a non-resident through External commercial Borrowings (ECBs). This way he/she has created a liability outside India. ➢ Alters the assets or liabilities in India of person resident...
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...RBI/2014-15/3 Master Circular No. 12/ 2014-15 July 01, 2014 (Updated up to January 23, 2015) To All Authorised Dealer Category – I banks and Authorised banks Madam / Sir Master Circular on External Commercial Borrowings and Trade Credits External Commercial Borrowings and Trade Credits availed of by residents are governed by clause (d) of sub-section 3 of section 6 of the Foreign Exchange Management Act, 1999 read with Notification No. FEMA 3/ 2000-RB viz. Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, dated May 3, 2000, as amended from time to time. 2. This Master Circular consolidates the existing instructions on the subject of "External Commercial Borrowings and Trade Credits" at one place. The list of underlying circulars / notifications, consolidated in this Master Circular, is furnished in the Appendix. This Master Circular may be referred to for general guidance. The Authorised Persons and the Authorised Dealer Category – I banks may refer to respective circulars/ notifications for detailed information, if so needed. 3. This Master Circular is being updated from time to time as and when the fresh instructions are issued. The date up to which the Master Circular has been updated is suitably indicated. Yours faithfully (B P Kanungo) Principal Chief General Manager 1 Index PART I EXTERNAL COMMERCIAL BORROWINGS (ECB) I.(A) AUTOMATIC ROUTE i) Eligible Borrowers ii) Recognised Lenders iii) Amount...
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...Q1] what is the maximum permissible bank finance? As per the recommendations of Tandon Committee, corporates should be discouraged from accumulating too much of stocks of current assets and should move towards very lean inventories and receivable levels. The committee even suggested the maximum levels of Raw Material, Stock-in-process and Finished Goods which a corporate operating in an industry should be allowed to accumulate These levels were termed as inventory and receivable norms. Depending on the size of credit required, the funding of these current assets (working capital needs) of the corporates could be met by one of the following methods: · First Method of Lending: Banks can work out the working capital gap, i.e. total current assets less current liabilities other than bank borrowings (called Maximum Permissible Bank Finance or MPBF) and finance a maximum of 75 per cent of the gap; the balance to come out of long-term funds, i.e., owned funds and term borrowings. This approach was considered suitable only for very small borrowers i.e. where the requirements of credit were less than Rs.10 lacs · Second Method of Lending: Under this method, it was thought that the borrower should provide for a minimum of 25% of total current assets out of long-term funds i.e., owned funds plus term borrowings. A certain level of credit for purchases and other current liabilities will be available to fund the build up of current assets and the bank will provide the balance (MPBF)....
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...International Financial Management (IFM) Individual Project Report Title of the project- Foreign Debt crisis management of RCOM Batch–PGCBM -21 Centre –DAKC, Mumbai Name- Rajesh Kumar Verma Email- rkv3466@gmail.com, rajesh.kr.verma@relianceada.com SMS No- 110387 SID- RB12044 Table of Contents 1. Introduction 2. Purpose of the assignment 3. Gratitude to Professor and support staff 4. Introduction of IFM Assignment topic- Foreign Debt Crisis Management of RCom 5. Company Profile 6. Assignment analysis and study A. Reliance Communications has secured loans from a host of Chinese banks to refinance $1.18 billion B. RCom has filed a prospectus with the Singapore Stock Exchange and plans to divest as much as 75% stake in Flag Telecom to raise about $1 Billion i) Background of Reliance Globalcom (Flag Telecom) ii) Cable network of Flag Telecom iii) Solutions offered by Reliance iv) Strategic Move by Reliance to fight with debt crisis C. Reliance Communications has put on hold the initial public offering of its undersea cable unit Flag Telecom in Singapore D. Impact of heavy debt on company's financial credit worthiness and impact of rupee devaluation on overseas loan E. The impact of the high-debt levels has been further compounded because of the steep depreciation of the rupee 7. Impact of Un-hedged foreign currency debts due to rupee devaluation 8. Conclusion INTRODUCTION As a student of International Finance Management...
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...A PAPER On “CONVERTIBILITY OF INDIAN RUPEE” By, Sr. No | Name | PRN | 1 | Mr. Sachin Jadhav | 15020448102 | 2 | Mr. Santosh Ghongade | 15020448103 | 3 | Mr. Rajan Batra | 15020448104 | 4 | Mr. Narayan P.S | 15020448105 | 5 | Mr. Sameep Gadkari | 15020448106 | 6 | Mr. Nandkumar | 15020448015 | 7 | Mr. Bhushan Patil | 15020448027 | 8 | Mr.Vikrant Birje | 15020448056 | Guided By, Prof.S.K.Vaze International Financing TABLE OF CONTENTS Sr. No | Topics | Page No. | 1 | Objectives | 3 | 2 | Foreign Exchange-An Overview | 3 | 3 | Convertibility of Indian Rupee-History | 4 | 4 | Convertibility of Currency-Meaning | 4 | 5 | Current Account Convertibility | 5 | 6 | Capital Account Convertibility * Important Provisions under FEMA | 6,7 | 7 | Convertibility of Indian Rupee-Positive Effects | 9 | 8 | Capital Account Convertibility-Negative Effects | 10 | 9 | Key Points and Analysis | 12 | 10 | Conclusion and Recommendations | 14 | 11 | Bibliography | 15 | Objectives: A. To know Foreign exchange mechanism followed in the past and current practices. B. To understand the concept of “Convertibility of Currency” C. To Study journey of convertibility of Indian rupee pre and post Liberalisation and impact on exchange rate. D. Brief study of Indian laws of regulations and prohibitions in context of the currency convertibility...
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...We explore, we discover, we’re the first to conquer. We make our own uncontested space which others follow. And create new pathways where no one exists. Dr. Lalit Khaitan - Chairman & Managing Director Abhishek Khaitan - Managing Director Dear Shareholders, I write this at a time when the world has begun to heave a sigh of relief as the first sign of the end of recession start appearing on the horizon. With this positive transformation taking place at the macro level, your company too has started gearing itself to reach new heights of business success. It will be our endeavor to take advantage of the emerging optimism in the global as well as Indian economy in the larger interest of our stakeholders. India today is at the cusp of a major growth era that may last for a very long time. Your company is well poised, after emerging relatively well from the recessionary period, to ride the rising curve of Indian growth story. While we intend to retain the ‘old is gold’, we are fully conscious to grab the new business opportunities that synthesize well with the growth pattern of the Indian economy. Year 2009-10 was indeed a fruitful year as we achieved an overall 23% net revenue growth. Our total volume stood at 14.6 mn c/s. Our brands like Magic Moments Vodka, 8 PM Whisky and Old Admiral Brandy were top earners and our new brand last year, Morpheus, struck a chord with our esteemed consumers. I assure you that your company will continue to gain significant market share in the...
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...Communications Annual Report 2009-10 (28th December, 1932 - 6th July, 2002) Reliance Group - Founder and Visionary Dhirubhai H. Ambani Profile Reliance Communications Limited is the flagship Company of Reliance Anil Dhirubhai Ambani Group, India’s third largest business house. Reliance Communications is India’s foremost and truly integrated telecommunications service provider. The Company, with a customer base of 109 million including over 2.5 million individual overseas retail customers, ranks among the Top 4 Telecom companies in the world by number of customers in a single country. Reliance Communications corporate clientele includes 2,100 Indian and multinational corporations, and over 800 global, regional and domestic carriers. Reliance Communications has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire communications value chain, covering over 24,000 towns and 600,000 villages. Reliance Communications owns and operates the world’s largest next generation IP enabled connectivity infrastructure, comprising over 2,77,000 kilometers of fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region. Mission: Excellence in Communication Arena To attain global best practices and become a world-class communication service provider – guided by its purpose to move towards greater degree...
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...TOPIC : RANBAXY LABORATORIES Submitted to: Prof. Deepak Shyam MBA Dept Submitted by: Nithin Unnikrishnan Nair 1PT12MBA36 CONTENT * INTRODUCTION * VISION AND MISSION * INDUSTRY ANALYSIS(PORTER’s FIVE MODEL) * SWOT ANALYSIS * COMPETITIVE STRATEGY OF RANBAXY * BCG MATRIX * GLOBAL STRATEGY FOR GROWTH * RANBAXY LABORATORIES INTRODUCTION Ranbaxy Laboratories ltd is an Indian multinational pharmaceutical company that was incorporated in India in 1961. The company went public in 1973 and Japanese pharmaceutical company Daiichi Sankyo acquired a controlling share in 2008. Ranbaxy exports its products to 125 countries with ground operations in 43 and manufacturing facilities in eight countries. In 2011, Ranbaxy Global Consumer Health Care received the OTC Company of the year award . Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a portmanteau of the names of its first owners Ranbir and Gurbax. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir and Gurbax. After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw an increase in scale. In June 2008, Daiichi-Sankyo acquired a 34.8% stake in Ranbaxy, for a value $2.4 billion. In November 2008, Daiichi-Sankyo completed the takeover of the company from the founding...
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...Together good things happen... Bharti Airtel Annual Report 2009-10 Airtel centre The Airtel Centre – Inaugurated on November 13, 2009 Centre of excellence that houses more than 3,000 employees, 13 offices and spread over 600,000 sq.ft. Table Bharti Airtel Annual Report 2010 of contents 1 Corporate information 2 Corporate history and Top 30 shareholders 3 Performance at a glance 4 Awards & honours 5 Chairman’s message 6 Board of directors 7 CEO (International) & JMD’s message 8 CEO (India & South Asia)‘s message 9 Together good things happen 10 Corporate social responsibility 11 Directors’ report 12 Management discussion & analysis 13 Report on corporate governance 14 Secretarial audit report 15 Standalone financial statements with Auditors’ report 16 Consolidated financial statements with Auditors’ report 17 Notice of annual general meeting 2 3 4 5 6 8 12 14 18 24 32 40 46 63 64 115 159 1 Corporate Board of directors Sunil Bharti Mittal Chairman and Managing Director information Group General Counsel & Company Secretary Vijaya Sampath Statutory Auditors Manoj Kohli CEO (International) & Joint Managing Director Non-executive directors Ajay Lal Akhil Gupta Arun Bharat Ram Chua Sock Koong Craig Edward Ehrlich Lim Chuan Poh N. Kumar Nikesh Arora Pulak Chandan Prasad Rajan Bharti Mittal Rakesh Bharti Mittal Tan Yong Choo CEO (India & South Asia) Sanjay Kapoor S.R. Batliboi & Associates, Chartered Accountants Auditors – US GAAP Ernst & Young...
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...INITIAL PUBLIC OFFERINGS (IPOs) REGULATIONS & PROCESS Options for Raising Funds Fund Raising Options Debt Equity IPO FPO Hybrid From Banks & FIs Various forms of Convertibles In India Public issue of Bonds/Debentures Rights Issue Pref. Issue outside India ECB ADR/GDR FCCB & FCEB Why IPOs? For Funding Needs •Funding Capital Requirements for Organic Growth •Expansion through Projects •Diversification •Funding Global Requirements •Funding Joint Venture and Collaborations needs •Funding Infrastructure Requirements, Marketing Initiatives and Distribution Channels •Financing Working Capital Requirements •Funding General Corporate Purposes •Investing in businesses through other companies •Repaying debt to strengthen the Balance Sheet •Meeting Issue Expenses For Non-funding Needs •Enhancing Corporate Stature •Retention and incentive for Employees through stock options •Provide liquidity to the shareholders Related Regulations Companies Act, 1956 --Provisions Relating to Prospectus --Provisions on Minimum Subscription, Allotment, Return of Allotment --Power to SEBI under section 55 A relating to Issue & transfer of securities Securities Contract (Regulation) Act, 1956 Securities and Exchange Board of SCRR- Rule 19(2)(b) - prior to 4.6.2010 Rule 19 (2)(b) provides that a company can get listed with just 10 per cent holding with the public provided the minimum net offer to the public is Rs 100 crore (Rs 1 billion)...
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...Communications Annual Report 2011-12 Profile Reliance Communications Limited Reliance Communications Limited is the flagship Company of Reliance Group, one of the leading business houses in India. Reliance Communications is India’s foremost and truly integrated telecommunications service provider. The Company, with a customer base of 161 million as on March 31, 2012 including over 2.5 million individual overseas retail customers, ranks among the Top 4 Telecom companies in the world by number of customers in a single country. Reliance Communications corporate clientele includes over 35,000 Indian and multinational corporations including small and medium enterprises and over 800 global, regional and domestic carriers. Reliance Communications has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire communications value chain, covering over 24,000 towns and 600,000 villages. Reliance Communications owns and operates the world’s largest next generation IP enabled connectivity infrastructure, comprising over 2,77,000 kilometers of fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region. Mission: Excellence in Communication Arena To attain global best practices and become a world-class communication service provider – guided by its purpose to move towards greater degree of sophistication and maturity...
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...INITIAL PUBLIC OFFERINGS (IPOs) REGULATIONS & PROCESS Options for Raising Funds Fund Raising Options Debt Equity IPO FPO Hybrid From Banks & FIs Various forms of Convertibles In India Public issue of Bonds/Debentures Rights Issue Pref. Issue outside India ECB ADR/GDR FCCB & FCEB Why IPOs? For Funding Needs •Funding Capital Requirements for Organic Growth •Expansion through Projects •Diversification •Funding Global Requirements •Funding Joint Venture and Collaborations needs •Funding Infrastructure Requirements, Marketing Initiatives and Distribution Channels •Financing Working Capital Requirements •Funding General Corporate Purposes •Investing in businesses through other companies •Repaying debt to strengthen the Balance Sheet •Meeting Issue Expenses For Non-funding Needs •Enhancing Corporate Stature •Retention and incentive for Employees through stock options •Provide liquidity to the shareholders Related Regulations Companies Act, 1956 --Provisions Relating to Prospectus --Provisions on Minimum Subscription, Allotment, Return of Allotment --Power to SEBI under section 55 A relating to Issue & transfer of securities Securities Contract (Regulation) Act, 1956 Securities and Exchange Board of SCRR- Rule 19(2)(b) - prior to 4.6.2010 Rule 19 (2)(b) provides that a company can get listed with just 10 per cent holding with the public provided the minimum net offer to the public is Rs 100 crore (Rs 1 billion)...
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...The derivative word rūpaya[citation needed] was used to denote the coin introduced by Sher Shah Suri during his reign of 1540 to 1545 What is Rupee Appreciation & Rupee Depreciation Rupee Appreciation & Rupee Depreciation (instead of using the word ‘currency’ we are using ‘rupee’ for the Indian context and explain the fluctuation with respect to dollar). When rupee is said to be appreciating it means that our currency is gaining strength and its value is increasing with respect to dollar. However, when rupee depreciates it means our currency is getting weaker & its value is falling with respect to dollar. You can understand it with the following example: Suppose, currently, the exchange rate is Rs. 45 = $1, 10 months later, either of the following two cases can happen Case1: The exchange rate is say Rs. 40 = $1. This means rupee has appreciated or gotten stronger by approx 11% and you would be paying less to for a dollar Case2: The exchange rate is at Rs. 50 = $1. This means rupee has depreciated or gotten weaker by approx 11% and you end up paying more for a dollar. Factors Influencing rupee fluctuation Rupee’s appreciation or depreciation against the dollar depends on the change in demand and supply for both the currencies. If the demand for rupee is comparatively high, rupee appreciates; if low, it depreciates. The important question here is ‘what factors drive the demand for a currency?’ They are: * Interest Rate: A demand for a currency is hugely...
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...Assignment No. 2 Bhagyanagar India Ltd.: Bhagyanagar India Ltd. Is a company working under the telecom sector & is unified in 1985. It is a share of surana group. Nonferrous & ferrous are the major product of the company. Here, we have to analyze any one company’s balance sheet & profit and loss account of 5 years from the previous assignment to forecast the company’s working for year 2013-2014. * PROFIT & LOSS ACCOUNT | | | | | | | | | | PROJECTED | SR.NO. | PARTICULARS | 2008-2009 | 2009-2010 | 2010-2011 | 2011-2012 | 2012-2013 | CAGR | 2013-2014 | 1) | SALES | -5.61% | -7.96% | 6.58% | 6.41% | 4.44% | 1.74% | 5.00% | 2) | EBIT | -59.08% | -16.82% | -5.80% | 104.38% | -63.43% | -10.15% | 13.00% | 3) | INTEREST | -21.63% | -58.41% | 3.93% | 14.33% | -77.05% | 8.74% | -15.00% | 4) | EBT | -64.23% | -4.20% | -6.78% | -92.13% | 327.10% | -21.39% | 7.00% | 5) | TAX | -18.95% | -70.40% | 175% | -84.82% | -14.24% | -38.80% | | 6) | PAT | -70.48% | 20.92% | -23.67% | -94.58% | 646.82% | -17.86% | 7.00% | 7) | DIVIDEND | 20% | - | - | - | - | | 20.00% | * BALANCE SHEET | | | | | | | | | | PROJECTED | PARTICULARS | 2008-2009 | 2009-2010 | 2010-2011 | 2011-2012 | 2012-2013 | CAGR | 2013-2014 | | LIABILITIES & EQUITY | | | | | | | | | 1) Shareholder's Fund | - | -7.48% | -7.64% | -6.44% | - | -2.996% | STABLE | | 2) Long Term Liabilities | -23.88% | -21.61%...
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