Presentation

for
Viva

Aishwarya Sanjeevan
Damle
1
 
UNDERTAKING BY CANDIDATE

I Aishwarya Damle declare that project work entitled is my own work conducted as part of
my syllabus .
 
I further declare that project work presented has been prepared personally by me and it is
not sourced from any outside agency. I understand that, any such malpractice will have very
serious consequence and my
admission to the program will be cancelled without any refund of fees.
 
I am also aware that, I may face legal action, if I follow such malpractice.
 
 
Signature of Candidate
 
 
 
 
 

2
WE LOUNGE

3
 1.SHORT TERM SORCES OF FINANCE
FOR SME’S- Prof. Rahul Shah
 Meaning of SME’s :
As per the Reserve Bank of India Notification Small medium Enterprises (SME’s)
defined as ,
“Any Units with investment in plant and machinery in excess of SSI limits and
up to Rs.10 Crores may be treated as Small Medium Enterprises (SME).’’

4
Characteristics of SME’s

 Companies that are not quoted on stock exchange i.e. they are unquoted.
 Ownership of the business is typically restricted to a few individuals, Often
this is a family business connection between the shareholders.
 Many SME’s are the means by which individuals (or Small groups) effectively
achieve self-employment.

5
SHORT TERM SOURCES OF FINANCE:

A Short Term sources of Finance means any instrument which can

help companies to bring funds/ asset in Less than one year.

Types Time Period Examples

Long term Period Exceeding 5 Investment in Fixed assets viz Land,
years Building, Plant & Machinery
Medium Above one year but Costs of incentive advertising Campaign or
Term less than five years similar deferred revenue expenditure.
Short Less than One year Investment in Current Assets – For Working
Term Capital Requirements. 6
Need for Short Term Finance
The Short Term Finance serves following purposes :

1. Short- term finance becomes more essential which is necessary to increase

the volume of production at short notice.
2. Short-term funds are also required to allow flow of cash during the
operating cycle. Operating cycle refers to the time gap between
commencement of production and realization of sales.
 Cash inflows to a business(Revenue from sales, loans, Interest, Sale of Assets
etc)
 Cash Outflows from a business( Payment for raw materials, stock, Labour,
Insurance, Rent, rates etc.)

7
SHORT TERM SOURCES OF FINANCE

1. Trade Credit
2. Bank Credit- Loans, Cash Credit, Overdraft & Discounted bills.
3. Customers’ Advances
4. Instalment Credit
5. Loans from Co-operative Banks
6. Account receivable Financing
7. Commercial Paper (CP)

8
Merits and Demerits of Short Term
Finance Demerits of Short Term
Merits of Short Term Finance Finance

 Economical  Fixed Burden

 Flexibility  Charge on Assets
 No interference in management  Difficulty of raising finance
 May also serve long-Term Purpose  Uncertainty
 Legal Formalities

9
2.Medium Term Sources of Finance
For SME’s
Prof. Rahul Shah

10
Medium Term Sources of Finance

 Medium Term sources of Finance means any instrument which can help
companies to bring in funds from One year above but less than five years.
 Tends to be spent on projects which will pay back over a medium period of
time.
 Less risky as compared to long term sources so lenders tend to ask for some
form of insurance or security if company is unable to repay loan.
 Public deposits is an example of secured medium term finance.

11
 Medium Term Sources of Finance

1. Preference Capital
 Preference Shares is a special class of shares that may have any combination
of features not possessed by common stock. Preference in dividends,
Preference in assets in the event of liquidation, convertible into common
stock.
2. Debentures and Bonds:
 They pay a fixed rate of interest on the nominal value at a specified time
whether company make profit or not.
 Debenture and bond holder are creditors and do not have any voting rights.

12
Medium Term Sources of Finance

3.Medium Term Loans from Financial Institutions Or Commercial Banks:

 This is most commonly used funding instrument in India. Financial Institution
like IDBI, ICICI, HDFC, All Nationalised Banks , Co-operative Banks , NBFCs.
 Medium Term loans in India typically range from above one year but less than
five years.
4. Public Deposits is the source of fund for private and non- banking companies .
To accept deposits from public. Interest rate of deposits are more than interest
which is given by bank and post office.

13
Medium Term Sources of Finance

5. Leasing :
A lease is a contractual arrangement calling for the lessee to pay the lessor for
use of an asset. Property, buildings and vehicles are common assets that are
leased. Industrial or business equipment is also leased. Broadly put, a lease
agreement is a contract between two parties, the lessor and the lessee.
Types of Leasing
Financial Leasing, Operating Leasing, Leveraged Leasing, Sale and Lease Back,
Cross Border Lease

14
3. Mutual Fund
Prof. Amit Oak

15
What is a Mutual Fund ?

 A Mutual fund is a collective investment that allows many investors , with a

common objective to pool individual investments and give to a professional
manager who in turn would invest these monies in line with common
objective.
 Types of Mutual Funds Schemes
 By constitution
 By Investment Objective
 By Nature of Investments

16
 By constitution

 OPEN –END  CLOSE-END

 No fixed maturity  Fixed Maturity
 Variable Corpus  Fixed Corpus
 Not Listed  Generally Listed
 Buy from and sell to the fund  Buy and Sell in the Stock Exchanges
 Entry / Exit at NAV related prices  Entry/Exit at the market prices.

17
 Investment objectives / Patterns
Why Mutual Funds…..?

 Growth- Equity  Stock markets are very

sophisticated
 Income-Debt
 Free Pricing & integration with
 Balanced –Equity and Debt
would markets.
 Money Market- Liquid Debt
 Time, Knowledge and luck
 Tax Saving- Equity
 Substantial capital for
 Specialised- Equity diversification
 Assured Return- Equity and Debt.

18
Who can invest ?

 Residential Indian Individual

 Indian Companies
 Trusts/ Charitable Institutions/ PFs
 Banks / FIs / NBFCs
 Insurance Companies
 NRIs / OCBs / FIIs
 Partnership firms etc

19
Loads:

 Entry load or front ended load.

Paid at the time of Purchase
Sale Price= NAV / (1-Sales Load. If any)
 Exit Load or Back ended load.
Paid at the time of exit
Redemption price= NAV Exit Load)
 Contingent Deferred Sales Load (CDSL)- Deferred exit load depending on the
period also known as deferred load.

20
4. Risk Management in
Banking Sector
By Ketan Shan

21
What is Risk?

 Risk is defined as the probability of occurrence of unexpected event, that

may alter the result under normal circumstances.
 Higher the probability of unexpected event, higher the risk.

22
What is Risk Management ?
 Risk is unpredictable and inherent in all business including
Banking
 Risk management is analysis of risk coupled with
implementation of risk controls.

23
What is Risk Management ?

 To Manage the risk we need to

 Identify the potential risk
 Measure the impact of the identified risk
 Find requisite solution to mitigate the risk.
 Monitor and control risk.

24
Types of Risk in Banks

Credit Risk

Operational Risk

Market Risk

Liquidity Risk

25
 Types of Risk
 Credit Risk: Credit risk taken on
the borrower, if borrower defaults
on repayment principal and
Interest amount.
 Credit Risk involves two types of
risk counterparty Risk and Country
Risk.
 With loans forming large part of
banking asset for most banks it is
the clear source of credit risk.
 Operational Risk is the risk of loss
from inadequate internal process
and systems. Human factors and
external events.
 Operation Risk often associated
with one-off events operational are
thus non financial risk .
 Operation Risk is classified as ,
Cause Based, Effect Based & Event
based.
26
Types of Risk
 Market Risk is the risk arising from
the adverse movements in the
market prices of the investment
portfolio.
 Standard Market risk factors are:
 Interest rate risk
 Fx rates risk
 Equity/ Commodity Market Risk
 Liquidity Risk is the risk of losses
arising due to lack of funds to
meet its obligations.
 Role of banks in the maturity
transformation of short-term
deposits into long-term loans
makes them vulnerable to liquidity
risk.
27
Managing Credit Risk ……..
Risk Measurement
 Every Bank has the own Credit Risk Model that ranks the customer according
to the risk.
 Borrowers with low credit risks are ranked higher and vice versa.
 Typical example of assessing credit risk by ranking is ratings given by External
Rating agencies.

28
Managing Market Risk…..

 Effective Risk Control & Monitoring includes.

 Investment discipline such as no investments in sub-investment grade
securities.
 Guidelines on portfolio size and mix.
 Setting up of Limits and Triggers and monitoring them.
 Strict approval process for high value transactions.
 Defined policy for Mark to Market
 Risk reporting to enhance risk communication across different level.

29
Managing Operation Risk……

 Effective Risk Control & Measuring includes

 Gather Operational Risk information
 Regular monitoring of issues involving operational risks.
 Collation of data and assessing its frequency / probability
 Regular reporting and setting strict standards to restrict these risks.

30
Managing Liquidity Risk……

 Effective liquidity risk management helps ensure a banks ability to meet cash
flow obligations.
 Assess short terms and Long Term liquidity needs.
 Diversification of funding sources by product, currency, maturity and
counterparty.
 Maintaining high transparency of financial dealings resulting in high investor
confidence.
 Liquidity stress testing
 Assessing external sources of funds in case of need.

31
 5. Must Know Facts about
Dematerialization
Depositories
Buying & Selling of Securities

Prof. Ajay Prabhu

32
 Dematerialization

 In a commercial world dematerialization refers to the substitution of paper-

form securities by book-entry securities.
 The term “demat”, in India, refers to a dematerialised account.
 In a demat account, securities are held electronically instead of the investor
taking physical possession of certificates.

33
What is Depository

 The Depository Act defines a depository as a “ company formed and

registered under the Companies Act 1956 & which has been granted a
certificate registration under sub- section (1A) of section 12 of Securities and
Exchange Board of India Act, 1992.”
 The main function of a depository is to dematerialize securities and enable
their transactions in book-entry form ( exist only as electronic records.)
 There are two depository namely :
  National Securities Depository Limited (NSDL)
 Central Depository Services(India) Limited (CDSL)

34
Functions of Depository

 Account Opening / Modification/ Closure

 Dematerialisation
 Account Transfer
 Transfer and Registration (registering the ownership of shares in the name of
the depository )
 Pledge and Hypothecation
 Corporate Actions
 Linkages with Clearing System

35
Benefits of Depository

 A safe & convenient way to hold securities in electronic form.

 No stamp duty to be paid on transfer of securities.
 Investor gets enhanced liquidity by instantaneous transfer / pledging
 Even a small market lot of one share can be traded.
 Reduction in paper work.

36
 Buying and Selling of Securities.

 The stock exchange is a market place, like any other centralized market,
where; buyer and seller can transact business in securities at a given point of
time in a convenient and competitive manner at the fairest possible price.
 Once the trading period is over buyer broker pays money and seller broker
delivers securities to the CC/CH on a predefined day this process is called as
Pay-in.
 After pay-in the CC/CH gives securities to the buyer brokers and money to the
seller broker this process is called as Pay-out.
 This Pay-in and Pay-out process known as settlement

37
Settlements

 Initially the trading cycle was of one fortnight. (later reduce to one week).
 The weekly settlement period was replaced by daily settlements, popularly
known as Rolling Settlement .
 T+2 rolling settlement cycle means that final settlement of transactions done
on T i.e. trade day by exchange of monies and securities between the buyers
& sellers respectively occurs on second business day after the trade day
excluding Saturday, Sundays, bank holidays and exchange holidays.

38
WE LOUNGE

39
 Mr. Ajay Walimibe
Head Legal & Company Secretary,
Phoenix ARC Private Limited
40
Learnings

 From this video I understood that Ajay sir is an qualified Company Secretary
with over 18 years of experience. He has worked in various areas of law
including corporate, Commercial and Industrial laws. He has diverse
professional experience having worked as company secretary and in-house
counsel with various Multinational Corporates including Ciba, ThyssenKrupp,
Fiat and DHI.
 He is well versed with all secretarial matters, risk management and legal
documentation. Presently he is working with Phoenix ARC Private Limited is a
company dedicated to the asset reconstruction business.

41
 From this video we can understand Importance of SME’s and MSME’s and legal
issues involved in set up of SME’s and MSME’s.
 SME’s stands form Small Scale Enterprises and MSEM’s stands form Micro
Small Enterprises .
 It based on criteria of investment . MSME’s investment above Rs.25 Lakhs up
to Rs.2 crores and SME’s investment above RS.2 Crores up to Rs.5 Crores this
for service sector. For manufacturing industry the SME’s investments above 5
crores up to 10 crores.
 Our Country is like a agricultural country. 2nd income generation is SME’s and
MSME’s

42
LEARNINGS:

 Employment through SME’s & MSME’s around 70 Million of population of our

country. Financial year 2011 GDP contribution through 17%. Around 32 Million
small sectors and manufacturing units manufacture around 8000 items
through SMS’s and MSEM’s the items like pin to computer. This industry not
growing at the pace what we want.
 Government want to promote industry. In International Market 0% funding,
there are no labour laws, higher and fire policy.
 In India if we have start the SME’s we have to comply the 52 acts. The layman
face the problem of more legal formalities involved. Many problems faced by
layman to set-up SME’s and MSEM’s.

43
Mr.Prasanth Nair

Global HR Head-CIPLA

44
LEARNINGS

 In this video we learned about Mr.Prasanth Nair he is currently heading the

Global HR function of Cipla. Served as the president & Head HR & financial
services at Thomas Cook.
 Founded the centre of learning – A Business initiative of creating talent for
the industry. Pioneered a Leadership Development program at RPG Group .
 He served as the HR committee of the Bombay Chamber of Commerce and
Industry. He was student of IIM Ahmedabad.
 HR people need to take responsibilities of the organisation.
 HR involved in people issues in organisation.
 He likes the meeting the people.
 His secrate mantra for life is GOD.
45
 Work life balance is very important time spent to family and friends.
 Biggest strength relate to people . Weakness if people not on to their
commitment.

46
 Mr. Subrata Basu
AVP- Marketing , Nitco Ltd .

47
LEARNINGS

 Mr. Subrata Basu has more than 15 years of extensive experience in Business
Development, Strategy and Marketing roles. Has worked in various markets
across urban and rural India and South Asia.
 From this video I understand what actually marketing is all about. Marketing
making belief, belief in the eyes of the customers that yes. This is the
product they need or they have been looking for.
 He spoke about how Nitco is being catering its customers and the variety of
tiles, marbles etc they have for their customers.
 With the wide range in level of tile, from lower to higher. In order to cater
ach kind of customer across he globe.

48
 He spoke about people involved in this making of tile. Such as architects the
designers , the marketers etc.
 He spoke about various people involved in this making of tile. Such as
architects the designers , the marketers etc.
 He spoke about before marketing anything or making any strategies to market
a product , we should first understand that what does the customer has a
interest in.
 These things need to be understood first, as we now know our customers and
their need then we can market a product in the way they want us to.

49
 It will be just an another product, but we have to think in this manner and
plan our marketing strategy in this way that the customers will think “this is
the product”.
 I learned that we should make a list of things we know and the list of things
that we don’t know this will help us to know the things which are unaware.
 And then try to make those fill ups in our knowledge as well as our
personality.

50
NEWSWIRE

51
1. STEPS TO BECOMING A BETTER LEADER
Source-Entrepreneur
 If your work is not aligned with your values, take a deeper look to find work
that is.
 In this Articles talked about steps to becoming better leader.
 Let go of Shoulders it means you have take step to settle into your own
expression of self and learn and grow from what life is offering . Action plan
should be made by your self only do not advice and expect from others.
 Take responsibility: You should take full responsibility of your work and
world.
 Get to know yourself : You should know the qualities , core values . You
should SWOT Analysis of your own .

52
 Accept all of yourself : you Should accept all your strengths , qualities,
disqualification. Stop trying to change who are. Try to behave as you are.
 Embrace Challenges : Every Challenge is an opportunity to learn something
new, either about your field or about yourself. Try to grab every opportunity.
 Let go of limiting beliefs that no longer serve you : When you imagine you
ideal life or career . When you do your inner work and clean up the
basement. Every one is a natural leader but you have to adapt qualities to
become good qualities.

53
 2.The 5 P’s of Strategy Explained
Marketing91

 The 5 P’s of Strategy model was developed by the Canadian management

scientist Henry Mintzberg with an objective to develop five distinguished
visions for the organization. The five strategic visions are Plan, Pattern,
Position, Perspective and Ploy. All the five components allow the
organizations to implement the strategy in a more effective manner.
 Analysis of 5 P’s by Henry Mintzberg
 Plan: It is always better for the organizations to have plan of action much in
advance to be prepared for any unforeseen internal and external situations
and a well planned strategy is a plan to deal with such situations. A plan
needs to be made with a long-Term and futuristic approach in mind with its
execution and development followed up in a detailed and intricate manner.

54
 Ploy : The facet of ploy is also one of the strategic options to beat the
competition in the market and gain the advantage. In this scenario, the
organizations can come up with something very outlandish and unexpected. And
surprise the market environment that also creates the waves of the ruckus within
the minds of competitors. It can be a well placed promotional tool or feature in
the product or service that is sure to outsmart and beat the competitors as a ploy.
 Pattern: The earlier patterns that have worked wonders for the organization
before are an integral part of developing the new strategy. The regular pattern
that has been quite successful in nature is used in the decision making flow and
process. The strengths of such patterns are included in the future strategies as
intentionally or unintentionally , there is a consistent positive behaviour of
employees and internal teams is displayed towards these patterns and are well
accepted without any prejudice and issues.

55
 Position : It focuses on how the organization wants to portray itself in the market
and in the minds of the consumers that will gain it a competitive advantage. What
will be the core values, unique selling propositions, nature and attributes of the
offerings of products and services and the overall brand strength and value
proposition ? Working on all these factors in a detailed manner will help the
organization carve a distinctive position in the market with an edge over others.
 
 Perspective: The organization formulates the strategy by dwelling on the crucial and
important details such as how does the target audience think about the organization?
How do employees of the company perceive the management and the brand as a
whole ? What is the perspective of the investors and other stakeholders of the
organization? The culmination and thought patterns of all these individual
perspectives work as the valuable source of information for the company and help it
to make a strategic choice.
56
3. RATAN TATA THE GREAT INDIAN INDUSTRIALIST WITH
VISION
Techstory
 This article talk about Mr. Ratan Tata Ratan Tata – the man who took the Tata
Groups to new heights by establishing the as a multinational conglomerate.
Moving from their conventional business approach to building the $100 Million
company that it is now, Ratan Tata has managed to take the Tata groups to a
Well celebrated global Level.
 Moving on with our series of the ‘Tech Entrepreneurial Genius’, our next man
is the legendary industrialist –Ratan Tata. This visionary genius is not only
famous for his successful industrial ventures but also for his wisdom and
philanthropic deeds.
  In his tenure of 21 years as the Chairman , the revenues grew over 40 times
and profits over 50 Times. He boldly made moves which made the Tata name
felt in the global market. Some of these strong moves include

57
 Tata Tea acquiring Tetley, the largest UK tea producing company.
 Tata Motors bought Jaguar Land Rover.
 And Tata Steel obtained Corus.
The legendary business magnet, Ratan Tata received.
 
 The Padma Bhushan in 2000, the third highest civilian honor.
 And Padma Vibhushan in 2008 , the second highest civilian honor awarded by the
Government of India , Hs is also the receipt of numerous global award .
 The Ratan Tata believes in giving back what the people gave him. He donated
more than 60-70% pf his wealth for the welfare of the society including the
health and education sector.
58
4.Digital Payments Volumes Rise Threefold
ET

This articles talks about payment through E-payment and digital wallets.
 The digital payment transaction rise in India rapidly . Massive adoption of
digital payment modes over the last years, the government promote digital
payment wallets.
 We have received many cash back offers when we pay through via digital
payment wallets.
 The figures shown in articles in October 2016 79.67 Crores , the number
digital payment major rise in to 244.81 crores in August 2018.

59
 Government has introduced the payment apps Bharat Interface for Money –
Unified Payment Interface (BHIM-UPI) , Aadhar Enabled payment.
 Paytm, Freecharg, Phone pay, Google Pay are examples of digital payment
wallets.
 New generation in our country using the digital payment wallets for making
the payment like utility bills, booking of movie tickets etc..

60
 5. Google MAPS
TechStory
 In this articles we have learning about Google Maps, how it works, how
people using the maps for reach their location
 Google maps used for our day to day life.
 Through Google maps we can explore near by Traffic , Restaurants , Shopping
Centres, Services like ATM, Pertol Pump, Hospital, Beauty Salons, Libraries
etc..
 We may think that location services are only to help you use your GPS and get
to reach our destination.
 The red, yellow and blue lines you see on your Google Maps are a indicator of
information that is spewed out after crowdsourcing.

61
 Every Google Map user can personally contribute to the information Maps has.
By suggesting corrections in streets, reviewing business on Maps, or adding
new hiking trails or travel modes, users have a lot control of what goes onto
Maps.
 Google also has a physical vehicle deployed in major cities that provision
Google with Google street View.

62
6.Must- Read Books that will make you
smarter- Techstory
 From this articles we can learn that books are real friends of human beings.
 Books plays very important role in human life. Habits of reading a books give
guidance to human to become smart.
 A room without book is a body without a soul.
 Books will enhanced smartness , improved analytical thinking, improved
memory, Increase vocabulary , improved writing skills.

63
7.Snapchat’s New Redesign for Android in Testing
Phase.
Financial express
 Photo messaging app Snapchat is reportedly testing the new redesign on
Android that the company plans to introduce very soon, the media reported
 Snapchat’s new faster Android user interface (UI) is underway. It’s generally
smoother than the old one.
 Snapchat is a popular messaging app that lets users exchange pictures and
videos (called snaps) that are meant to disappear after they're viewed. It's
advertised as a "new type of camera" because the essential function is to take
a picture or video, add filters, lenses or other effects and share them with
friends.

64h
 Snap chat introduced the new feature on the app is Snapchat stories.
User can compile photos / videos for all their friends to view and publish them as
a story . The Snapchat stories last for 24 hours and can be viewed more than
once.

65
8. Digital Transformation & Achievements of Financial
Services Cos.
Infotechlead
 This article teach us financial services companies are making huge
investments in their digital transformation journey.
 CEO’s and CFO’s of Visa, Deutsche Bank, Nomura Holdings, Mastercard among
others have revealed their digital achievements in the last 12 months.
 Digital Transformation ease of functioning, branch less banking, paperless
baking.
 Adoption of new digital capabilities to improve the customer experience and
add safety and security across all transaction types and channel.
 Digital platform is key to competing effectively in the near future.

66
 9. Soon GET CASH FROM ATMS Using UPI APP
Times of India

 Digitalisation is more important for every filed banking filed rapidly grow in
digitization .
 This is new revolutionary change happen in banking filed in near future
possible to customer can withdraw cash from ATMs by scanning QR code on
the machine’s screen.
 The UPI cash services does not require users to sign on to any new service or
download any new app. All that is needed for an account holder is a
subscription to a mobile application that is already UPI-enabled

67
To get such a payment. The customer needs to scan QR code as if he were
making a UPI payment.
 This transformation is welcome by banks because this is positive change for
customer as well as banks.

68
10. Liability of Mobile Wallet users to be zero, Limited
in case of fraud on par with credit card Users.
Retail ET
 In this article we have lo learn regarding the cyber attack/ fraud while using
mobile wallets and credit cards while making the payment .
 As per the existing rule, the onus is on the banks to prove that a fraud has
taken place but customers should inform the bank as soon as possible to avoid
being penalised.
 If a customer lose money through an unauthorised electronic banking
transaction such as a cyber attack on the bank or hacking of your online
account, your extent of liability will be limited , even zero if you inform the
bank immediately.
 Where loss is due customer negligence the customer need to bear the entire
loss until the unauthorised transactions is reported to the bank .

69
 Customer need not bear any loss if the deficiency is on the part of the bank
and in cases where the fault lies neither with the bank nor with the customer
but lies elsewhere in the system and the customer informed the bank within 3
working days of receiving the communication from the bank about
unauthorised transactions.
 In short customer have to alter while using unauthorised mobile wallets.

70
THANK YOU

71