...Responsibilities of Local Government Unit * the giving of allotments and grants by the national government (NG) to local government units (LGUs) * sharing of taxing powers between the NG and the LGUs, and among LGUs units * policy on tax rates and structure * revenue and expenditure planning * revenue utilization and expenditure allocation * monitoring and approval of budgets, tax ordinances and other fiscal measures * policy on borrowing and borrowing instruments * appointment and supervision of local fiscal officers Fundamental Principle * No money shall be paid out of the local treasury except in pursuance of an appropriations ordinance or law * Local government funds and monies shall be spent solely for public purposes * Local revenue is generated only from sources expressly authorized by law or ordinance, and collection thereof shall at all times be acknowledged properly * All monies officially received by a local government officer in any capacity or on any occasion shall be accounted for as local funds, unless otherwise provided by law * Trust funds in the local treasury shall not be paid out except in fulfillment of the purpose for which the trust was created or the funds received * Every officer of the local government unit whose duties permit or require the possession or custody of local funds shall be properly bonded, and such officer shall be accountable and responsible for said funds and for...
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...proximity between the decision maker and his constituents, and, more opportunities for empowering communities through consultation and collaborative planning and implementation. This study puts some realism into proposals to organize the Philippine government into a federal government with several states. Realism entails estimating the resources required to enable a state to carry out basic functions of governance and the financial capability of the different administrative regions in the country. Basic indicators such as estimates of Regional Gross Domestic Product, local revenues, and regional collection of taxes and duties are used. The study starts with indicators on how centralized is the current system of governance and looks at scenarios where “states” can finance the requirements of governance. 1. How Big is the Philippine Government? The budget of the national government in 2008 was P1.23 trillion or 18.45 percent of our GDP in 2007. The biggest slice of the budget, 24.0 percent, went to the Debt Service Fund. The second largest expenditure was allotments to local governments, the IRA, which accounted for 19.0 percent of the budget. The other major expenditures were those on education, 12.0 percent (Department of...
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...Sub Section‐ I Issues by Indian Companies in India This sub‐section attempts to cover the basic concepts and questions related to issuance of securities by unlisted Indian companies1 offering the shares to public and by listed Indian companies2. For full particulars of laws governing primary markets, please refer to the Acts/Regulations/Guidelines appearing in the Legal Framework Section . FAQs are presented under following 12 broad headings. 1. Different kinds of issues 2. Types of offer documents 3. Issue requirements 4. Pricing of the issue 5. Understanding book building 6. Investment in Public/Rights issues 7. Categories of Investors 8. Intermediaries involved in the issue process 9. Guide to understand an offer document 10. SEBI’s role in an issue 11. New terms 12. Additional information 1 2 “Unlisted Company” means a company which is not a listed company. “Listed Company” means a company which has any of its securities offered through an offer document listed on a recognized stock exchange and also includes Public sector Undertakings whose securities are listed on a recognized stock exchange. 1 1. Different kinds of issues What are the different kinds of issues which can be made by an Indian company in India? Primarily, issues made by an Indian company can be classified as Public, Rights, Bonus and ...
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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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...PUBLIC ISSUE IPO Initial Public Offer• When an unlisted company makes either a fresh issue of securities or offers its existing securities for sale or both for the first time to the public, it is called an IPO. This paves way for listing and trading of the issuer‟s securities in the Stock Exchanges. Eligibility for IPO • a) Net tangible assets of at least Rs. 3 crore in each of the preceding three full years • b) Distributable profits for at least three out of the immediately preceding five years • c) Net worth of at least Rs. 1 crore in each of the preceding three full years • d) The issue size should not exceed 5 times the pre-issue net worth • e) If there has been a change in the company‟s name, at least 50% of the revenue for preceding one year should be from the new activity denoted by the new name • Alternative routes Recognizing that many good companies, for one reason or the other, may not be able to comply with all the eligibility norms, two other alternative routes are available to such companies: • Alternative I: • Issue shall be through book building route, with at least 50% to be mandatory allotted to the Qualified Institutional Buyers (QIBs). (b) The minimum post-issue face value capital shall be Rs. 10 crore or there shall be a compulsory market-making for at least 2 years OR • Alternative II: • A) The “project” is appraised and participated to the extent of 15% by FIs/Scheduled Commercial Banks of which...
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...discovery. It is a process used for marketing a public offer of equity shares of a company. It is a mechanism where, during the period for which the book for the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The process aims at tapping both wholesale and retail investors. The offer/issue price is then determined after the bid closing date based on certain evaluation criteria. 1.1 The Process: • • • • • • • • The Issuer who is planning an IPO nominates a lead merchant banker as a 'book runner'. The Issuer specifies the number of securities to be issued and the price band for orders. The Issuer also appoints syndicate members with whom orders can be placed by the investors. Investors place their order with a syndicate member who inputs the orders into the 'electronic book'. This process is called 'bidding' and is similar to open auction. A Book should remain open for a minimum of 5 days. Bids cannot be entered less than the floor price. Bids can be revised by the bidder before the issue closes. On the close of the book building period the 'book runner evaluates the bids on the basis of the evaluation criteria which may include o o o • • Price Aggression Investor quality Earliness of bids, etc. The book runner and the company conclude the final price at which it is willing to issue the stock and allocation of securities. Generally, the number of shares is fixed;...
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...‘’If you have an query about this document you can consult the company, the issue manager or the underwriter’’ Prospectus Bangas Limited Bangas Limited REGISTERED OFFICE: DOULATDIAR, CHUADANGA CORPORATE OFFICE: SOUTH AVENUE TOWER (6TH FLOOR), HOUSE # 50, ROAD # 37. GULSHAN AVENUE. DHAKA-1212. TEL: 8829458, 8828948, 8828832, 8814875, 8827926 FAX: 88-02-9862312, 9862803 SHARE DEPARTMENT: SARATOWER, 11/A, TOYENBEE CIRCULAR ROAD (18TH FLOOR), MOTIJHEEL, DHAKA-1000. TEL: 9575854, FAX: 88-02-9563442 Re-issue of public offering of 2,70,270 ordinary shares at tk 10 each at an issue price of 370 per share, including a premium of tk. 360 per share, totaling tk 100,000,000. Opening date of subscription: 20th July, 2014 Closing date of subscription: 25th July, 2014 Non Resident Bangladeshi subscription opens on: 20th July, 2014 Non Resident Bangladeshi subscription closes on: 29th July, 2014 Issue manager IDLC Finance Limited Bay’s Galleria (1st Floor), 57 Gulshan Avenue, Gulshan 1 Dhaka-1216 Underwriters IDLC Finance Limited Bay’s Galleria (1st Floor), 57 Gulshan Avenue, Gulshan 1 Dhaka-1216 LankaBangla Securities Limitted A.A. Bhaban (Level-5), 23 Motijheel C/A Dhaka- 1000 The City Bank Limited Jiban Bima Tower, 10, Dilkusha C/A Dhaka- 1000 Green Delta Insurance Co. Ltd. Hadi Mansion (4th Floor), 2, Dilkusha C/A Dhaka- 1000 Bankers to the issue HSBC Bank Asia Limited The City Bank Limited Citibank, N.A....
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...1) What is accounting? Option 1- Accounting is the process of identifying, measuring and communicating the economic information of an organization to its users who need the information for decision making. Option 2- Accounting is a process of knowing whether the business is on sound track. Option 3 – It enables to prepare a list of customers and suppliers to ascertain the amount to be received or paid. Option 4 – Accounting is compulsory in case of registered firm. Explanation: Ans- Option 1, In simple terms according to the information system accounting is a process of identifying, measuring and communicating the economic information of an organization to its users so that they can make a decision as to how to make an investment in any organization, i.e. whether the company in which they are investing is profit making or loss bearing company. 2) Who are the owners of the company? Option 1- investers Option 2- Management Option 3- Shareholders Option 4- Directors Answer –Option 3—As shareholders are the people who pay money and invest their capital in the company and so indirectly they become the owners of the company. A company form of organisation is the third stage in the evolution of forms of organisation. Its capital is contributed by a large number of persons called shareholders who are the real owners of the company. But neither it is possible for all of them to participate in the management of the company nor considered desirable...
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...(Updated till May 24, 2007) SECURITIES AND EXCHANGE BOARD OF INDIA (DISCLOSURE AND INVESTOR PROTECTION) GUIDELINES, 2000 CONTENTS Page no. Chapter I Preliminary 4 Chapter II Eligibility Norms for Companies Issuing Securities 9 Chapter III Pricing by Companies Issuing Securities 22 Chapter IV Promoters’ Contribution and Lock-In Requirements 26 Part I Promoters’ Contribution 26 Part II Lock-In Requirements 31 Part III Other Requirements in Respect of Lock-In 34 Chapter V Pre-Issue Obligations 36 Chapter VI Contents of Offer Document 48 Contents of the Prospectus 48 Section I 93 Section II Contents of Abridged Prospectus 102 Section III Contents of the Letter of Offer Section IV Contents Of the Abridged Letter Of Offer 109 Chapter VIA Issue of Indian Depository Receipts (IDRs) 111 General Requirements Part I 111 Part II Disclosures in a Prospectus for IDRs 112 Applicability of provisions of the SEBI (DIP) Guidelines, 2000 123 Part III Part IV Contents of Abridged Prospectus (See Rule 8(i) of the IDR Rules) 123 Chapter VII Post-Issue Obligations 130 Chapter VIII Other Issue Requirements 138 Chapter VIII-A Green Shoe Option 153 Chapter IX Guidelines on Advertisement 158 Chapter X Guidelines for Issue of Debt Instruments 164 Chapter XI Guidelines on Book Building 174 Chapter XI A Guidelines on Initial Public Offers through the Stock 196 Exchange On-Line System (e-IPO) Chapter XII Guidelines for Issue of Capital by Designated Financial 202 Institutions Chapter XII-A Shelf Prospectus...
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...Ecommerce or high-traffic site. It is going to be the size, complexity, and expected traffic load of the site that are going to need to be considered when shopping for a host. Personal and Hobby sites are typically used for sites that will be used to communicate with friends and family and/or share information about hobbies with other people. These sites will typically be small and have low-traffic. Personal and Hobby sites are easier to publish and less expensive. There are two free options in this category. The first is your internet service provider as most of them give customer’s access to a personal Web page as a part of their regular service. This option does have strict limits on the amount of bandwidth the website is able to use though; too many pictures can push the website over the limit. The second option is free web hosts. This allows someone to get a free site and the host gets to advertise on it, although storage and download amounts are an issue here too. With this option the host is able to shut down the website if it exceeds the bandwidth allotment until the next month when the bandwidth counter restarts. Small business sites are sites that will contain basic company information. These sites are typically called “brochure sites”. This is because the information in the website can probably be found on a printed advertisement brochure. These are pretty simple sites, but because they are still a business the creator will want a reliable host...
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...Forwarding Letter To Course Instructor Anup Kumar Saha Lecturer, Department Of Business Administration. ASA UNIVERSITY BANGLADESH Subject: Submission of Report. Dear Sir, Here is the report that you have assigned us to prepare on summary of corporate finance. In the preparation of this report, I try to utilize the various related issues that are relevant for corporate finance. However, it is an educational and interesting report. I am very much delighted to be able to work on such a report and learned a lot. FROM, MD.ARIFUL ISLAM ID NO-103-14-0070. SECTION-A. REPORT ON CORPORATE FINANCE Cost of capital The cost of capital is a term used in the field of financial investment to refer to the cost of a company's funds (both debt and equity), or, from an investor's point of view "the shareholder's required return on a portfolio of all the company's existing securities". It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet. Cost of debt The cost of debt is computed by taking the rate on a risk free bond whose duration matches the term structure of the corporate debt, then adding a default premium. This default premium will rise as the amount of debt increases (since, all other things being equal, the risk rises as the amount of debt rises). Since in most cases debt expense is...
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...projects, Designing Capital Structures and Instruments – Issue Pricing Pricing- Preparation of prospectus selection of bankers, Advertising Consultants etc. – Role of Registrars –Underwriting Arrangements. Dealing with Bankers to the Issue, Underwriters, Registrars, and Brokers. –Offer for sale – Book- Building – Green Shoe Option –E –IPO Private Placement- Bought out Deals –Placement with FIs, MFs, FIIs, etc. offShore Issues. – Issue Marketing – Advertising Strategies-NRI Marketing- Post Issue Activities. UNIT III - OTHER FEE BASED MANAGEMENT Mergers and Acquisitions – Portfolio Management Services – Credit Syndication – Credit Rating – Mutual Funds – Business Valuation. UNIT IV - FUND BASED FINANCIAL SERVICES Leasing and Hire Purchasing – Basics of Leasing and Hire Purchasing – Financial Evaluation – Tax Implication. UNIT V - OTHER FUND BASED FINANCIAL SERVICES Consumer Credit – Credit Cards- Real Estate Financing – Bills Discounting – Recent Developments in Factoring and Forfeiting – Venture Capital. REFERENCES 1. M.Y.Khan, ‗Financial Services‘ – Tata McGraw –Hill, 3 rd Edition, 2005. 2. Machiraju, ‗ Indian Financial System ‗- Vikas Publishing House, 2 nd Edition, 2002. 3. J.C.Verma, ‗ A Manual of Merchant Banking ‗, Bharath Publishing House, New Delhi, 2001. 4. K.Sriram, ‗Hand Book of Leasing, Hire Purchase & Factoring‘, ICFAI, Hyderabad, 1992. 5. Economic Dailies, Relevant Publication of AMFS. 6. Bhalla....
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...EXTERNAL (IE) MATRIX 20 GRAND STRATEGY MATRIX 21 SUGGESTIONS AND RECOMMENDATIONS 22 REFERENCES 23 Executive Summary The repot at hand provides useful overview about Engro Pakistan Ltd, a private fertilizer firm that keeps about 22 % of market share in the milk food industry Pakistan, established in 2005, a 100% owned subsidiary –First investment of dairy plant Processed milk market is growing at approx: 20% per year. Olper’s achieved peak market shares of 12.3% within 6 months of launch. Other products are launched such as –Olper’s Cream, OLwell –High Calcium Low Fat Milk (Premium Brand) Plans to expand product portfolio Milk processing capacity to increase by 200 million liters annually will become the only company in Pakistan covering the entire milk catchments area. It already has the 2ND largest cooled milk collection system in the country. Distribution network was also doubled from 58 to 119 towns by the end of 2007 and achieved advanced stage of negotiation. Forces in the external environment that affect company’s performance are, political, economic, social and technological whereas company-specific external forces are Major Players in the food Industry, which are small in number; Nestle being the leader with high market share. Typical packed...
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...hereinafter appearing to qualify for the admission and continuance of the said securities upon the list of the Exchange NOW THEREFORE in consideration of the Exchange listing the said securities the Company hereby covenants and agrees with the Exchange as follows: 1. The Company agrees — (a) that Letters of Allotment will be issued simultaneously and that in the event of its being impossible to issue Letters of Regret at the same time a notice to that effect will be inserted in the press so that it will appear on the morning after the Letters of Allotment have been posted; (b) that Letters of Right will be issued simultaneously; (c) that Letters of Allotment, Acceptance or Right will be serially numbered, printed on good quality paper and examined and signed by a responsible officer of the Company and that whenever possible they will contain the distinctive numbers of the securities to which they relate; (d) that Letters of Allotment and renounceable Letters of Right will contain a provision for splitting and that when so required by the Exchange the form of renunciation will be printed on the back of or attached to the Letters of Allotment and Letters of Right; (e) that Letters of...
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...“If you have any query about this document, you may consult issuer, issue manager and underwriter” PROSPECTUS of GSP FINANCE COMPANY (BANGLADESH) LIMITED For Public Issue of 20,000,000 ordinary share of Tk.10.00 each at an issue price of Tk.25.00 per share including a premium of Tk. 15.00 per share totaling Tk. 500,000,000.00 Opening date for subscription Closing date for subscription Non‐Resident Bangladeshi (NRB), subscription opens on Non‐Resident Bangladeshi (NRB), subscription closes on Credit Rating Status Entity Rating Date of Rating Validity of Rating : : : : January 08, 2012 January 12, 2012 January 08, 2012 January 21, 2012 Short Term ST‐4 Long Term BBB3 06 March 2011 30 June 2012 RATING ASSIGNED BY: CREDIT RATING AGENCY OF BANGLADESH LTD.(CRAB) UNDERWRITERS IDLC Investment Limited Eunoos Trade Center (Level 21) 52‐53 Dilkusha C/A, Dhaka. ICB Capital Management Limited 8, DIT Avenue, BDBL Bhaban (Level‐16), Dhaka. MTB Capital Limited 68 Dilkusha (6th Floor) C/A, Dhaka. City Bank Capital Resources Limited st Jibon Bima Tower, 1 Floor 10, Dilkusha C/A, Dhaka. Lanka Bangla Finance Ltd. Safura Tower (Level 11), 20 Kemal Ataturk Avenue, Banani, Dhaka‐1213. Sonali Investment Limited Sara Tower, 11th Floor, 11/A, Toynbee Circular Road, Motijheel C/A, Dhaka. Issue date of the Prospectus: November 29...
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