Advanced Financial Management

Group Members:
Name
Nagesh Gujetti Kshitij Hunari

Roll no.
A-19 A-20

Anil Jain Deepak Kamble

Shreya Kanjariya Priyank Mehta

A-21 A-23
A24 A-27

Q.1 Investment banker and His role in primary issue Management

Acts as an underwriter or agent for corporations and municipalities issuing securities and also offer advisory services to investors.

Important role of investment banker

Investigation, Analysis & research (origination) Underwriting (Public Cash Offerings) Distribution

Q.2 Methodology Used by Credit Rating Agencies to Rate Financial Instruments

For rating to Financial Instruments like Equity stocks, Mutual Funds, Insurance Product, Bonds, etc. the credit rating agencies like CRICIL, ICRA, CARE, etc. A large Number of Variables affect the quality of rating of a debt instrument of an organization.

Methodology Used by Credit Rating Agencies to Rate Financial Instruments

Variable likes :

History Accounting Quality Business Fundamental Liquidity Management Quality of Management Quality of Assets

Methodology Used by Credit Rating Agencies to Rate Financial Instruments

Profitability Return on Equity and Investment Capital Structure Past Performance Effect of Normal Business Cycle Interest and the debt coverage ratio including tax consideration

Q.3 Causes of an industrial unit becoming sick and What are its revival programmes

There are two factors

Internal Mismanagement Wrong location of a unit. External Energy crisis arising out of power cuts Failure to achieve optimum capacity

Overestimation of demand
Poor implementation of projects Poor inventory management Unwarranted expansion and diversion of resources Failure to modernise the productive apparatus Poor labour-management relationship

Infrastructural problems
Credit squeeze Market Situations International pressures

Consequences of industrial sickness:

Loss of substantial revenue Increases the non-performing assets (NPAs) Loss of production Problem of unemployment Worker-management disputes Affects the overall investment climate of the economy.

Revival Programmes
Sick Industrial Companies (Special Provisions) Act, 1985

Objectives: Timely detection of sick and potentially sick companies. Speedy determination by a body of experts

Thank u

Mag. Maria Peer

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