...units) for 20x0: | | | Light Coils | Heavy Coils | Projected sales | 60,000 | 40,000 | Add: Desired inventories, December 31, 20x0 | 25,000 | 9,000 | Total requirements | 85,000 | 49,000 | Deduct: Expected inventories, January 1, 20x0 | 20,000 | 8,000 | Production required (units) | 65,000 | 41,000 | 3. | Raw-material purchases budget (in quantities) for 20x0: | | | | Raw Material | | Sheet Metal | Copper Wire | Platforms | Light coils (65,000 units projected to be produced) | 130,000 | 65,000 | __ | Heavy coils (41,000 units projected to be produced) | 102,500 | 61,500 | 41,000 | Production requirements | 232,500 | 126,500 | 41,000 | Add: Desired inventories, December 31, 20x0 | 18,000 | 16,000 | 7,000 | Total requirements | 250,500 | 142,500 | 48,000 | Deduct: Expected inventories, January 1, 20x0 | 16,000 | 14,500 | 6,000 | Purchase requirements (quantity) | 234,500 | 128,000 | 42,000 | 4. | Raw-material purchases budget for 20x0: | | | Raw Material | Raw Material Required (units) | Anticipated Purchase Price...
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...guidance for completion of this project. I am also very thankful to my father Mr. Vimal Garg who provide me a unique platform to fulfillment of this project and provide practical exposure to earn knowledge in the field of sanctioning procedure of bank loans and learn the problems faced by customers and bankers during the financing a project that could be done in a bank. I also want to extend my sincere thanks to “Agarwal & Co.” who’s immense support and dedicated their time toward it to sharing their knowledge in the field of finance and learn the day-to-day activities that are carried out in the CA firm. I would like to thanks to, Prof. BALA BHASKARAN (Director of Shanti Business School, Ahmadabad) who provides me this golden opportunity by giving this project. Table of Contents ACKNOWLEDGEMENT 2 EXECUTIVE SUMMARY: 4 Objective: 4 Brief Description of Project: 4 INTRODUCTION 6 Introduction of Project Financing 6 Introduction of Banking 8 SIGNIFICANCE OF THE STUDY 14 PROJECT OUTLINE FOR PROJECT FINANCE 15 CASE STUDIES 23 CASE STUDY 1 23 CASE STUDY 2 26 CONCLUSION 31 BIBLOGRAPHY 33 ANNEXURE1 34 ANNEXURE 2 34 ANNEXURE 3 34 EXECUTIVE SUMMARY: Objective: * To meet the credit requirements of small business units, industrial unit, retail trader, artisan, Small Scale Industry (SSI) and tiny units. * The main purpose of this project is to learn and understand the concepts of...
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...time because they may not have the funds on hand at the given time. This is exactly what is going on in the case of our company. We need the funds up front and will promise to pay the loan back when we have set up our other locations and have the funds to do so. The bank in which we have chosen for our line of credit have some simulations to our proposed idea, so we must break them down to understand exactly what we are getting ourselves into. In this case we will be getting a line of credit or a loan from the bank to be paid back over the course of the next few years. During which time we will be externally audited by the bank and must adhere to their policies while going through the loaning process and payback period. The company will be named as the policy holder and will be liable for the full amount loaned. The elements involved in negotiable instruments are certificates of deposits, notes, checks and drafts. The Uniform Commercial Code governors over negotiable instruments and defines who is liable, both primary and secondary. The primary holder of the loan is liable for the loan, it is their duty to pay and their name on the papers. A secondary liability holder comes in to play when the primary has failed to pay the loan amount. Primary holder are the people who actually sign for the loan in the first place. From there it may go through different chains until the instrument is in play. If I were to write a check and give it to you, and you sign the check and give it to...
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...William D. Ford Federal Direct Loan Program Direct Subsidized Loan and Direct Unsubsidized Loan Borrower’s Rights and Responsibilities Statement Important Notice: This Borrower’s Rights and Responsibilities Statement provides additional information about the terms and conditions of the loans you receive under the accompanying Master Promissory Note (MPN) for Federal Direct Stafford/Ford Loans (Direct Subsidized Loans) and Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans). Please keep this Borrower’s Rights and Responsibilities Statement for your records. You may request another copy of this Borrower's Rights and Responsibilities Statement at any time by contacting your servicer. Throughout this Borrower’s Rights and Responsibilities Statement, the words “we,” “us,” and “our” refer to the U.S. Department of Education. The word “loan” refers to one or more loans made under the accompanying MPN. 1. The William D. Ford Federal Direct Loan Program. The William D. Ford Federal Direct Loan (Direct Loan) Program includes the following types of loans, known collectively as “Direct Loans”: Federal Direct Stafford/Ford Loans (Direct Subsidized Loans) Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans) Federal Direct PLUS Loans (Direct PLUS Loans) Federal Direct Consolidation Loans (Direct Consolidation Loans) 4. About the MPN. You may receive more than one loan under this MPN over a period of up to 10 years to pay for your educational...
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...Working-Capital Management ORIENTATION I. Managing current assets A. The firm’s investment in current assets (such as fixed assets) is determined by the marginal benefits derived from investing in them compared with their acquisition cost. B. However, the current fixed-asset mix of the firm’s investment in assets is an important determinant of the firm’s liquidity. That is, the greater the firm’s investment in current assets, other things remaining the same, the greater the firm’s liquidity. This is generally true, since current assets are usually more easily converted into cash. C. The firm can invest in marketable securities to increase its liquidity. However, such a policy involves committing the firm’s funds to a relatively low-yielding (in comparison to fixed assets) investment. II. Managing the firm’s use of current liabilities A. The greater the firm’s use of current liabilities, other things being the same, the less will be the firm’s liquidity. B. There are a number of advantages associated with the use of current liabilities for financing the firm’s asset investments. 1. Flexibility. Current liabilities can be used to match the timing of a firm’s short-term financing needs exactly. 2. Interest cost. Historically, the interest cost on short-term debt has been lower than that on long-term debt. C. Following are the disadvantages commonly associated with the use of short-term...
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...The new credit score to buy a house is now 580. This is 60 points lower than the previous requirement making it easier for those buying a house with bad credit to get into a home. If you have been thinking about buying a home, now is the time. FHA loan rates are very reasonable and the down payment minimum of 3.5% coupled with more lax underwriting requirements are making home loans for bad credit more attainable. How To Improve Your Credit Score Working to improve your credit score can have numerous positive effects. Therefore, even if you have some glaring credit issues on your credit report, there are still some things you can do to boost your current score while you're waiting for your past credit mistakes to age out. 1. Payoff your past due accounts. About 35% of your credit score is rated based on your payment history. 2. Check your credit reports for errors and contact the credit bureau about any mistakes you find. 3. Improve your debt-to-income ratio. This...
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...Solution to Toy World, Inc. Case 32A Toy World, Inc. Cash Budgeting Copyright ( 1996 by the Dryden Press. All rights reserved. CASE INFORMATION PURPOSE This case analyzes a straightforward cash budgeting problem. It is designed to illustrate the mechanics of a cash budget and the way cash budgets are used. Discussion questions focus on the rationale behind the use of cash budgets as well as on their inherent problems. The case also raises the issues of the target cash balance, the optimal size of the credit line, the investment of excess cash, and production scheduling for a seasonal business. TIME REQUIRED Without using the model, 3-4 hours of student preparation should be adequate for most students, with possibly another hour or so to write up the case if it must be handed in. Use of the spreadsheet model can greatly reduce preparation time, especially if the completed model or the easy macro version is given to students. COMPLEXITY A relatively simple, but with a fair amount of number crunching for students not using the spreadsheet model. However, a number of related issues can be discussed, so students can put in a significant amount of time on the case. Still, they can get the gist of it without too much trouble. WAYS WE HAVE USED THE CASE We have used this case in two very different ways. First, with both introductory and not very-well-prepared second course students, we ask them to read the case and to become generally...
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...Solution to Toy World, Inc. Case 32A Toy World, Inc. Cash Budgeting Copyright ( 1996 by the Dryden Press. All rights reserved. CASE INFORMATION PURPOSE This case analyzes a straightforward cash budgeting problem. It is designed to illustrate the mechanics of a cash budget and the way cash budgets are used. Discussion questions focus on the rationale behind the use of cash budgets as well as on their inherent problems. The case also raises the issues of the target cash balance, the optimal size of the credit line, the investment of excess cash, and production scheduling for a seasonal business. TIME REQUIRED Without using the model, 3-4 hours of student preparation should be adequate for most students, with possibly another hour or so to write up the case if it must be handed in. Use of the spreadsheet model can greatly reduce preparation time, especially if the completed model or the easy macro version is given to students. COMPLEXITY A relatively simple, but with a fair amount of number crunching for students not using the spreadsheet model. However, a number of related issues can be discussed, so students can put in a significant amount of time on the case. Still, they can get the gist of it without too much trouble. WAYS WE HAVE USED THE CASE We have used this case in two very different ways. First, with both introductory and not very-well-prepared second course students, we ask them to read the case and to become generally...
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... Cal Quality Electronics, Santa Ana, CA February 2010 – March 2014 Purchasing Department/ Buyer ▪ Enforces all applicable purchasing materials policies, interfaces with customers and suppliers for communication of product requirements, inventory builds and additionally ongoing material requirements. ▪ Purchase corporate requirements for assigned materials from approved qualified suppliers in sufficient lead-time to prevent material shortage. ▪ Follow purchasing accounting policies, update procedures as necessary to comply with all corporate quality requirements, maintain accurate supplier history performance data, negotiate best price, terms conditions. Indymac Bank, Irvine, CA April 2008 – October 2009 Retail Lending Officer ▪ Work with clients to identify their financial goals and to find ways of reaching those goals. ▪ Analyze potential loan markets and develop referral networks to locate prospects for loans. ▪ Submit applications to credit analysts for verification and recommendation. ▪ Review loan agreements to ensure that they are complete and accurate according to policy. ▪ Meet with applicants to obtain information for loan applications and to answer questions about the process. ▪ Explain...
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...Defining Subprime Lending The problem to be investigated is the effect of subprime mortgage loans on the economy. According to Merriam Webster subprime is defined as having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers; extending or obtaining a subprime loan (Webster, 2012). Subprime mortgage loans are loans given to people with a low credit score. Subprime borrowers normally don’t qualify for prime loans or prime lending. According to Jennings, the subprime mortgage market is defined to include those borrowers with a FICO (Fair Isaac Co.) score below 570 (Jennings, 2012, p. 434). The American Dream Home ownership has always been a big part of the “American Dream.” It allows you to have your piece of “the rock.” It gives one the ability to invest in your community. This need to have a piece of the American dream not only drives the average American to capitalize, it also drives mortgage lenders to take their portion of your dream as well. Initially, this relationship tends to have win/win connotations; however, true colors eventually prevail when dealing in subprime mortgage loans. Subprime Lenders It seems subprime lenders never call themselves just that. You have to be aware of the enormously high prices; prices much higher than your prime lenders. Subprime lenders based their rates and fees on the same factors as prime lenders. For example, rates were higher the lower the credit score and the...
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...Federal Family Education Loan Program OMB No. 1845-0005 Form Approved Exp. Date 06/30/2002 SCH WARNING: Any person who knowingly makes a false statement or misrepresentation on this form or on any accompanying documents shall be subject to penalties which may include fines, imprisonment or both, under the U.S. Criminal Code and 20 U.S.C. §1097. SECTION 1: BORROWER IDENTIFICATION Please correct or, if information is missing, enter below. If a correction, check this box: ❒ SSN Name Address City, State, Zip Telephone - Home ( Telephone - Other ( ) ) SECTION 2: DEFERMENT REQUEST Before answering any questions, carefully read the entire form, including the instructions and other information in Sections 5 and 6. s I meet the qualifications for the deferment checked below and request that my loan holder defer repayment of my loan(s): ❒ While I am enrolled at an eligible school as a FULL-TIME STUDENT. (For borrowers with any FFEL Program loan.) ❒ While I am enrolled at an eligible school as a LESS THAN FULL-TIME BUT AT LEAST HALF-TIME STUDENT. (For borrowers who, on the date they signed the promissory note, did not have an outstanding balance on a FFEL Program loan made before July 1, 1987.) NOTE: Your promissory note or other loan documents may state that a borrower with an outstanding balance on a FFEL Program loan made prior to July 1, 1993 must receive another loan in order to qualify for a half-time student deferment. This requirement was eliminated by the Higher...
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...Life Line (a complete series of personnel credit facility) Loan agst. Trust Receipt Transport Loan Real Estate Loan (Res. & Comm.) Loan Agst. Accepted Bill Industrial Term Loan Agricultural Term Loan Lease Finance Other Term Loan FMO Local currency Loan for SME FMO Foreign currency Loan Cash Credit (Hypothecation) Small Shop Financing Scheme Overdraft Dutch-Bangla Bank offers a wide range of corporate banking services. They include: Project finance The Bank encourages accepting purpose/project specific development funds on competitive terms towards economic upliftment and well being of the people/country by way of setting up a new stand alone, capital intensive project or for BMRE of an existing project. Working Capital finance The bank considers lending short –term working capital finance to entities engaged in manufacturing, assembling, processing, re-packaging of goods and commodities for domestic consumption or export market. However, unsecured loans (not collateralized) for working capital without justification or purpose is not considered. Syndications & Structured finance The Bank, on case to case basis, arranges loan syndications or approves disclosed participations in syndications provided such transactions meet the parameters separately established.oThe bank will at all times maintain at the minimum a pari-passu status to other banks in all lending relationships. Second mortgages or lower are not be accepted as primary collateral. Trade...
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...Riverside Bottling Company would suffer is that they would not meet the requirements of the cash account balance being maintained it $200,000 or more and thus default on the loan agreement. Also this would possibly result in higher loan interest rates being applied by the bank to the loan with Riverside Bottling Company. However, the person who would suffer if complying with Gena Schmitt’s instructions would also be Riverside Bottling Company and the bank. The reason the company would suffer is that it is not ethical to lie about the cash balance, which is at $80,000. Although this is not considered fraud, since it is not a dishonest act by an employee resulting in personal benefit to that employee. It is an act of dishonesty to the employer and an act of dishonesty against the company's internal control process. When the loan agreement was made, the bank required Riverside Bottling Company to maintain a minimum cash balance, which is called compensation balance, and it provided the bank with support for their loan. This would also be a breach of the Sarbanes-Oxley Act, which has put legal procedures in place to avoid these kinds of actions. The bank would suffer in that the agreed upon funds would not be in the bank collecting interest that the bank uses to fund other loans and such. Also, since the purpose of the compensating balance is to offset the expenses associated with extending and servicing the loan, if Riverside Bottling Company defaults, the bank is loosing on that offset...
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...Benefits Associated with Bad Credit Loans Bad credit loans are a blessing in disguise for those suffering from bad credit history. People unable to pay their bills or loans on time suffer from a bad credit score that affects negatively on their credit history. There are a number of reasons behind a bad credit history including financial crises, bankruptcy, inability to pay bills on time and many others. Recession is one of the major factors behind bad credit history of the people as they suffer from financial crises due to poor economic conditions and by loosing their jobs. Inflation is another solid reason that leads to poor credit scores. Bad credit loans help you enjoying the privilege of enjoying loans even if you suffer with poor credit history. Bad credit loans provide you financial assistance in a number of critical situations such as paying a sudden and unexpected medical bill, meeting the financial crunch at the end of the month, coping sudden personal financial needs when you run short of money. Bad credit loan is a perfect solution for all the above-mentioned problems as it let you get instant cash in order to fulfill your financial requirements. There are a number of lenders over the Internet and in the offline environment that offer ad credit loans to the people having no or poor credit history. The ultimate advantage of a bad credit loan is that you can instantly get the loan. You don’t need to wait for weeks to get your loan approved as you can get hot cash...
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...value for its shareholders. Strategic financial management also means that short-term goals may occasionally need to be sacrificed to meet longer-term objectives. A typical example is when a loss-making company trims its asset base through factory closures or headcount reduction in order to reduce operating expenses. While such actions have a detrimental effect on near-term results because of restructuring costs and other one-time items, it positions the company to achieve profitability in the longer term. (c ) Short Term Financial Management and Strategy Chapter 15: Short Term Financial Management Learning Goals Describe the scope of short-term financial management and the cash conversion cycle. Explain the funding requirements of the cash conversion cycle and strategies for minimizing negotiated liabilities. Understand inventory management:...
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