FINANCIAL ANALYSIS

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Scope for MBA /PGDM- Finance

Corporate Finance Financial Services Derivative Market Consulting

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CORPORATE FINANCECorporate 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.

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Corporate Finance - ProfileFund 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

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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

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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.

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1. Facilitating transactions (exchange of goods and services) in the economy.2. Mobilizing savings (for which the outlets would otherwise be much more limited).3. Allocating capital funds (notably to finance productive investment).4.Monitoring managers (so that the funds allocated will be spent as envisaged).

FUNCTIONON OF FINACIAL-SERVICE

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Financial ServicesNBFC Business

Leasing & HP Corporate funding Syndication Own Treasury management Portfolio Management Services

FACTORING services

CREDIT RATING

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NON-BANKING FINAICIAL COMPANY

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

  The number of non-banking financial companies has expanded greatly in the last several years as venture capital companies, retail and industrial companies have entered the lending business.

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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.

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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.

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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

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Financial Services (contd.)

Banking AppraisalCorporate RelationshipTreasuryBill discountingTerm loanRetail operationsRisk managementForex

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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.

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Financial Services (contd.)

InsuranceRisk assessmentPolicy formulationTreasuryProject Appraisal Funding operationsEquity operations – Research,

portfolio management

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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

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Mutual FundsResearch Fund management

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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.

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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/...

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