Financial Management & Financial Planning

Meaning of Financial Management

Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.

Scope/Elements

Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions.
Financial decisions - They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby.
Dividend decision - The finance manager has to take decision with regards to the net profit distribution. Net profits are generally divided into two:
Dividend for shareholders- Dividend and the rate of it has to be decided.
Retained profits- Amount of retained profits has to be finalized which will depend upon expansion and diversification plans of the enterprise.

Objectives of Financial Management

The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be-

To ensure regular and adequate supply of funds to the concern.
To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders.
To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost.
To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate of return can be achieved.
To plan a sound capital structure-There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.

Functions of Financial Management

Estimation of capital requirements: A finance manager has to make estimation with regards to capital requirements of the company. This will depend upon expected costs and profits and future programmes and policies of a concern. Estimations have to be made in an adequate manner which increases earning capacity of enterprise.

Determination of capital composition: Once the estimation have been made, the capital structure have to be decided. This involves short- term and long- term debt equity analysis. This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from outside parties.

Choice of sources of funds: For additional funds to be procured, a company has many choices like-
Issue of shares and debentures.

Loans to be taken from banks and financial institutions
Public deposits to be drawn like in form of bonds.

Choice of factor will depend on relative merits and demerits of each source and period of financing.

Investment of funds: The finance manager has to decide to allocate funds into profitable ventures so that there is safety on investment and regular returns is possible.
Disposal of surplus: The net profits decision have to be made by the finance manager. This can be done in two ways:
Dividend declaration - It includes identifying the rate of dividends and other benefits like bonus.
Retained profits - The volume has to be decided which will depend upon expansional, innovational, diversification plans of the company.
Management of cash: Finance manager has to make decisions with regards to cash management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintainance of enough stock, purchase of raw materials, etc.
Financial controls: The finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc.

Financial Planning - Definition, Objectives and Importance

Definition of Financial Planning

Financial Planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

Objectives of Financial Planning

Financial Planning has got many objectives to look forward to:

Determining capital requirements- This will depend upon factors like cost of current and fixed assets, promotional expenses and long- range planning. Capital requirements have to be looked with both aspects: short- term and long- term requirements.
Determining capital structure- The capital structure is the composition of capital, i.e., the relative kind and proportion of capital required in the business. This includes decisions of debt- equity ratio- both short-term and long- term.
Framing financial policies with regards to cash control, lending, borrowings, etc.
A finance manager ensures that the scarce financial resources are maximally utilized in the best possible manner at least cost in order to get maximum returns on investment.

Importance of Financial Planning
Financial Planning is process of framing objectives, policies, procedures, programmes and budgets regarding the financial activities of a concern. This ensures effective and adequate financial and investment policies. The importance can be outlined as-

Adequate funds have to be ensured.
Financial Planning helps in ensuring a reasonable balance between outflow and inflow of funds so that stability is maintained.
Financial Planning ensures that the suppliers of funds are easily investing in companies which exercise financial planning.
Financial Planning helps in making growth and expansion programmes which helps in long-run survival of the company.
Financial Planning reduces uncertainties with regards to changing market trends which can be faced easily through enough funds.
Financial Planning helps in reducing the uncertainties which can be a hindrance to growth of the company. This helps in ensuring stability an d profitability in concern.

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Non Performing Assets (NPAs) and its impact on Indian economy

The Centre on Tuesday unveiled an ambitious plan to infuse Rs. 2.11 lakh crore capital over the next two years into public sector banks (PSBs)saddled with high, non-performing assets and facing the prospect of having to take haircuts on loans stuck in insolvency proceedings.

Introduction:

The move is vital for the slowing economy, as private investments remain elusive in the face of the “twin-balance sheet problem” afflicting corporate India and public sector banks reflected in slow bank credit growth.
The Government has decided to take a massive step to capitalise PSBs in a front-loaded manner, to support credit growth and job creation.
The government’s capitalisation package for public sector banks will provide a strong booster dose of relief for the capital starved public sector banks.
What are Non-Performing Assets?

A loan or lease that is not meeting its stated principal and interest payments.
A loan is an asset for a bank as the interest payments and the repayment of the principal amount create a stream of cash flows.
Banks usually treat assets as non-performing if they are not serviced for some time. If payment has not been made as of its due date then the loan gets classified as past due.
Once a payment becomes really late the loan gets classified as non-performing. A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
Types of NPA’s:

Banks are required to classify NPAs further into Substandard, Doubtful and Loss assets:-

Substandard assets: An assets which has remained NPA for a period less than or equal to 12 months.
Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.
Loss assets: As per RBI, “Loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.”

What are the reasons for growth?

Governance Issues:

Diversion of funds by companies for purposes other than for which loans were taken.
Due diligence not done in initial disbursement of loans.
Inefficiencies in post disbursement monitoring of the problem.
Restructuring of loans done by banks earlier to avoid provisioning. Post crackdown by RBI, banks are forced to clear their asset books  which has led to sudden spurt in NPAs
During the time of economic boom, overt optimism shown by corporates was taken on face value by banks and adequate background check was not done in advancing loan
In the absence of adequate governance mechanism, double leveraging by corporates, as pointed out by RBI’s Financial Stability Report.

Economic Reasons

Economic downturn seen since 2008 has been a reason for increasing bad loan
Global demand is still low due to which exports across all sector has shown a declining trend for a long
In the case of sectors like electricity, the poor financial condition of most SEBs is the problem; in areas like steel, the collapse in global prices suggests that a lot more loans will get stressed in the months ahead
Economic Survey 2015 mentioned over leveraging by corporate as one of the reasons behind rising bad loans
Another factor that can contribute to the low level of expertise in many big public sector banks is the constant rotation of duties among officers and the apparent lack of training in lending principles for the loan officers
Poor recovery and use of coercive techniques by banks in recovering loans

Political reasons

Policy Paralysis seen during the previous government affected several PPP projects and key economic decisions were delayed which affected the macroeconomic stability leading to poorer corporate performance.
Crony capitalism is also to be blamed.
Under political pressure banks are compelled to provide loans for certain sectors which are mostly stressed

Problems of Exit

In the absence of a proper bankruptcy law, corporate faced exit barriers which led to piling up of bad loans
Corporates often take the legal route which is time consuming leading to problems for the banks

Impacts of NPAs:

The higher is the amount of non-performing assets (NPA) the weaker will be the bank’s revenue stream.
Indian Banking sector has been facing the NPA issue due to the mismanagement in the loan distribution carried by the Public sector banks.
As the NPAs of the banks will rise, it will bring a scarcity of funds in the Indian markets. Few banks will be willing to lend if they are not sure of the recovery of their money.
The shareholders of the banks will lose of money as banks themselves will find it tough to survive in the market.
This will lead to a crisis situation in the market.
The price of loans, interest rates will shoot up badly. Shooting of interest rates will directly impact the investors who wish to take loans for setting up infrastructural, industrial projects etc.
It will also impact the retail consumers, who will have to shell out a higher interest rate for a loan.
All these factors hurt the overall demand in the Indian economy.
Finally, it will lead to lower growth and higher inflation because of the higher cost of capital.

Current developments on NPA:

According to the Reserve Bank of India’s latest “Financial Stability Report”, Gross Non-Performing assets (NPAs) rose from 9.2% in September 2016 to 9.6% in March 2017.
Stress tests conducted by the RBI indicate that this number could rise to 10.2% under the baseline scenario.

Return on assets is negative.

The net non-performing advances (NNPA) ratio marginally increased to 5.5% in March 2017 from 5.4% in September 2016.
The RBI in its Financial Stability Report (FSR) highlighted that stressed advances ratio declined from 12.3 % to 12% due to fall in restructured standard advances.

Recent NPA issues in India:

The Internal advisory committee (IAC) of the Reserve Bank of India (RBI) had recently identified 12 accounts for insolvency proceedings with each of them having over Rs 5,000 crore of outstanding loans, accounting for 25 percent of total NPAs of banks.
According to RBI, these 12 accounts would qualify for immediate reference under the Insolvency and Bankruptcy Code (IBC).
The total amount for gross non-performing assets (NPA) as on March was estimated to 11 Lakh crore
Any missed installment not paid to the bank until the due date is a bad loan. If this further extends beyond 90 days, it is termed as Non-performing asset or (NPA).

Steps proposed by RBI:

Restructured standard account provisioning has been increased to 5% making it easier for banks to go for restructuring. On the flip side, this has the potential to enhance tendency of ever greening of loans.
RBI has directed banks to give loans by looking at CIBIL score and is encouraging banks to start sharing information amongst themselves.
RBI has directed banks to report to Central Repository of Information on Large Credit (CRILC) when principle/interest payment not paid between 61-90 days
RBI has asked banks to conduct sector wise/activity wise analysis of NPA
SEBI has eased norms for banks to convert debt of distressed borrowers into equity

5/25 scheme

For existing and new projects greater than 500 crores and also for existing projects which have been classified as bad debt or stressed asset, bank can provide longer amortization periods of 25 years with the option of restructuring loans every 5 or 7 year
The advantage of this scheme is that it provides for longer lending period with inbuilt flexibility. Shorter lending periods leads to companies stretching their balance sheet to pay back loan
From bank’s point of view it is helpful as freshly restructured asset is considered as bad debt and requires 15% provisioning by banks against such loans leading to erosion of profitability for banks
Strategic Debt Restructuring Scheme

This scheme provides for an alternative to restructuring. Wherever restructuring has not helped, banks can convert existing loans into equity. The scheme provides for creation of Joint Lenders Forum which is to be given additional powers with respect to
Management change in company getting restructured
Sale of non core assets in case company has diversified into sectors other than for which loans were guaranteed
Decision by JLF on debt restructuring by a majority of 75% by value and 60% by number
On the positive side, willful defaulters are dissuaded as they fear the loss of their company
Issues with the scheme:

Banks do not have expertise of managing companies

The Joint Lenders Forum mechanism has an inherent conflict between large banks and small lenders. The large banks have huge exposure and thus they want to restructure the loans so as to avoid provisioning. The smaller lenders fear arm twisting by large banks. Since they have less exposure they are unwilling to throw good money after bad and prefer to sell their exposure to ARCs as HDFC did in case of EssarSte

Assessment of SDR

SDR is not performing too well. Of the 21 cases in which SDR has been invoked, only 4 have been closed. The problems are:
Difficulty in finding buyers
Buyers demanding prices that are unacceptable
Creditor’s concern over their source of funding and credibility
In the absence of potential buyers, bank wouldn’t want to hold onto these assets indefinitely. Unless and until a mechanism is devised which charts out a course of what to do thereafter, it doesn’t make much sense to do this conversion
Disagreement over valuations
Banks not willing to take severe haircuts
Problem particularly acute in the infra sector where the valuations have drastically declined over the past 2-3 years
Scheme for sustainable structuring of stressed assets – Thisallows banks to split the stressed account into two heads – a sustainable portion that the bank deems that the borrower can pay on existing terms and the remaining portion that the borrower is unable to pay(unsustainable). The latter can be converted into equity or convertible debt giving lenders a chance to eventually recover funds if the borrower is unable to pay. The Scheme will help those projects which have started commercial operations and have outstanding loan of over Rs 500crore. Banks will also need to set aside higher provisions if they choose to follow this route.
Advantages of new scheme
To help restore credit flow to stressed sectors such as steel etc as credit lending condition have been eased in the scheme
Banks can rework their stressed accounts under the oversight of an external agency. This means greater transparency in functioning of banks. This is a provision of the scheme itself. Banks had earlier complained of activism by investigative agencies in probing bad debt which made it difficult for them to go for restructuring in even genuine cases
This scheme would not only strengthen the lenders’ ability to deal with stressed assets, but would also put real assets back on track, benefitting both banks and the promoters of troubled entities.

Other suggestions:

Banks need to be more conventional in yielding loans to sectors that have a history of being found as contributors in NPAs.
The loan sanctioning process of banks needs to be harsher and well beyond the conventional practices of analysis of financial statements and history of promoters.
A suitable agenda to attract and reassure quality professionals to join the discipline of insolvency professionals is vital.
Any plan to alleviate the current scenario especially relating to the Debt recovery tribunals must be given urgency, to ease the burden on NCLT
If the public sector has to compete in the fierce financial markets, they have to create and nurture a good cadre of officers in various disciplines.
As per the RBI directive, banks will now have to agree to a common approach forrestructuring or recovery of each non-performing loan (NPL).
The common approach will be the one adopted by the lead bank, along with a few more banks so as to meet the thresholds of 60% of lenders by value and 50% by number.
This approach assumes that the interests of all banks need to be aligned with or subsumed within the interest of the lead bank.
There is an urgent need to develop specialized skills in the area of appraisal, monitoring and recovery to ensure the quality of credit portfolio.
Banks should be equipped with latest credit risk management techniques to protect the bank funds and minimize insolvency issues.
Banks should explore the possibilities to develop credit derivative markets to avoid these risks.
Timely follow up is the key to keep the quality of assets intact and enables the bank to recover the interest/installments in time.
Selection of right borrowers, viable economic activity,adequate finance and timely disbursement, end use of funds and timely recovery of loans should be the focus areas so as to prevent or minimize the incidence of fresh NPAs.

What is Bankruptcy code?

The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India that administers the insolvency proceedings and establishes a framework for insolvency resolution processes effectively.
The Insolvency and Bankruptcy Code was introduced by (FM) ArunJailtely in December’15 and was subsequently passed by the LokSabha on 5 May’16. However the act was finally approbated on 28 May 2016.

Key Features:

The Code outlines separate insolvency resolution processes for individuals and companies
The Code acts as a regulator by establishing the Insolvency and Bankruptcy Board of India.
The board oversees the insolvency proceedings in the country and regulates the entities registered below it. The Board has 10 members, which includes representatives from the Ministries of Finance and Law, and the Reserve Bank of India.
The insolvency process is accomplished by licensed professionals. These professionals also control the assets of the debtor during the insolvency procedure
The Code proposes two distinct tribunals to supervise the process of insolvency resolution, for individuals and companies:
How NPA are different from stressed assets?

Stressed assets:

A stressed asset is an indicator of the health of the banking system.
It is a combination of NPA, Restructured loans and Written off assets.
Assets of the banking system comprises of loans given and investment in bonds made by banks.
Quality of the asset indicates how much of the loans taken by the borrowers are repaid in the form of interests and principal.

Restructured loans:

These are assets which got an extended repayment period, reduced interest rate, converting a part of the loan into equity, providing additional financing.
Under restructuring a bad loan is modified as a new loan.
This is because a restructured loan was a past NPA or it has been modified into a new loan.
Corporate Debt Restructuring Mechanism (CDM) allows restructuring of loans.
Written off Assets:

These are those bank or lender doesn’t count the money borrower owes to it.
The financial statement of the bank will indicate that the written off loans are compensated through some other way.
The ratio of stressed assets to gross advances of the Indian Banking System is increasing from 2013 onwards.
It has risen from around 6 per cent at end of March 2011 to 11.1 per cent by 2015.

Government initiatives to tackle NPAs:

Promulgation of Banking Regulation (Amendment) Ordinance: It helps in the following ways:
It empowers the RBI to direct Banks to initiate insolvency resolution, wherever such need arises.
It also give advise to baking agencies on ways of tackling with its stressed asset problems.
It aims to check this menace in a time bound manner and helps in timely recovery of the stressed assets.
Incorporation of SARFAESI ACT:The Securitization and Reconstruction of Financial assets and Enforcement of Security Interest Act 2002 empowers the banking systems to auction residential or commercial properties (except agricultural land) to recover their loans.
Debt Recovery Acts: These laws established debt recovery tribunals with the power to recover debts of Banks and Financial Institutions.
Concept of Bad Banks: In this concept the banking institutions sell their bad loans to an intermediary and thus they write off their bad loan and intermediary has to recover the loan from the defaulter.
Mediation for loan recovery: This concept was introduced so that genuine defaulter, who are unable to pay off their loans, but are not able to put forward their situations with the banking authorities, hire a mediator, who discusses this with the banking officer and come to a solution.
Strategic Debt Restructuring (SDR): Creditors could take over the assets of the firms and sell them to new owners.
Sustainable Structuring of Stressed Assets (S4A): An independent agency hired by the banks will decide on how much of the stressed debt of a company is sustainable
The government recently passed an ordinance to amend certain sections of the Banking Regulation Act, 1949: This allow the banking companies to resolve the issue related to stressed assets by initiating the insolvency proceedings whenever required. This is in addition to the recently promulgated Insolvency and Bankruptcy Code, 2016 which provides for time bound resolutions of stressed assets.
Government promulgated the Banking Regulation(Amendment) Ordinance, 2017 with the following features:
It was passed to deal with stressed assets, particularly those in consortium or multiple banking arrangements.
It authorize the RBI to direct banking companies to resolve the issue related to specific stressed assets, by initiating insolvency resolution process wherever required.
Public asset reconstruction agency(PARA):

The Public Sector Asset Rehabilitation Agency (PARA) colloquially called “Bad Bank” is a proposed agency to assume the Non-Performing Assets (NPA) of public sector banks in India and to deal with the recovery of the bad loans. This agency has been proposed in Economic Survey 2016-17.

How would a PARA actually work?

It could solve the coordination problem since debts would be centralised in one agency.
It could be set up with proper incentives by giving it an explicit mandate to maximise recoveries within a defined time.
It would separate the loan resolution process from concerns about bank capital.
It would purchase specified loans from banks and then work them out, depending on professional assessments of the value-maximising strategy.
Once the loans are off the books of the public sector banks, the government would recapitalise them, thereby restoring them to financial health.
Similarly, once the financial viability of the over-indebted enterprises is restored, they will be able to focus on their operations, rather than their finances.
Conclusion:

Looking at the giant size of the banking industry, there can be hardly any doubt that the menace of NPAs needs to be curbed. It poses a big threat to the macro-economic stability of the Indian economy. An analysis of the present situation brings us to the point that the problem is multi-faceted and has roots in economic slowdown; deteriorating business climate in India; shortages in the legal system; and the operational shortcoming of the banks.  The recommendations given by RBI are a welcome step in this regard.

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Indian Currency Demonetization: Advantages and Disadvantages

The government of India recently took a bold step to demonetize Rs 500 and Rs 1000 currency, which means that the legal tender of currency units is declared invalid from the specified date. 
Demonetization of currency means discontinuity of the said currency from circulation and replacing it with a new currency.
Most of the people hailed the Modi's strong decision, while poor were shocked by the move. The overnight decision changed the life of many as black money holders were worried about the pile of cash they were sitting on. Many poor daily wage workers were left with no job and income as owners were unable to pay their daily wage.

It is no doubt a bold step taken by the government which will definitely help India to become corruption-free. Here are some advantages and disadvantages of de-monetization:

Black Money tracking 

This move will help the government to track unaccounted black money or cash on which income tax has not been paid. Individuals who are sitting on a pile of cash usually do not deposit the amount in the bank or invest anywhere as they would be required to show income or submit PAN for any valid financial transactions. They would hide it somewhere and use it as and when necessary. Banning high-value currency will impact people who will have no option, but, to declare income and pay tax on the same or destroy the cash somehow. Now, it is not possible to hide the money as the notes have been declared invalid.

Reduction in illegal activity 

Banning high-value currency will halt  illegal activity as the cash provided for such activities has no value now. Black money is usually used to fund the illegal activity, terrorism, and money laundering. Fake currency circulation will come to a halt in a single shot. Corrupt officers, money launderers are under threat as Income tax department is taking all the measures to track such people.

Tax payment 

Most of the businessmen who have been hiding some income are ready to pay advance tax as current year's income. Tax payers who have been hiding some income can come forward to declare income and pay tax on the same. Individuals are required to submit PAN for any deposit above Rs 50,000 in cash, which will help tax department to track individuals with high denominations. Also, deposit up to Rs 2.5 lakh will not come under Income tax scrutiny.

Jan Dhan Yojana 

Now individuals are depositing enough cash in their Jan Dhan accounts which they were reluctant to do so a few days back. The amount deposited can be used for the betterment of the country.

Disadvantages of Currency Demonetization 

It may cause inconvenience for initial few days for those who have to start running to the banks to exchange notes, deposit amount or withdraw the same. The situation can turn chaotic if there is a delay in the circulation of new currency. Individuals who have an upcoming wedding are the ones who have to make alternative arrangements to make payments. However, the government has given higher withdrawal limit in such cases.

Cost of currency destruction 

After the news, we have seen that many individuals have burnt their cash and discarded the same, which is a loss to the economy. The government has to bear the cost of printing of new currency and its circulation. It makes sense when benefits of demonetization are higher. The cost of currency printing is a burden on the tax payers and is one of the many disadvantages of de-monetization.

Conclusion

There are only advantages of demonetization in the long term. The government is taking all the necessary steps and actions to meet the currency demand and ensure the smooth flow of new currency.

New notes now in circulation 

We now have new notes in circulation with denomination of Rs 2,000 for the very first time. There are also new Rs 500 notes in circulation, which are very thin and have great security features. So, now there is whole lot of new currency that is in circulation. There are also plans to include new currency in other smaller denominations, especially Rs 100. In any case, nobody seems to be unduly worried now that the entire demonetization episode and the time frame to exchange the old notes now stands completed.

RBI on demonetization 

The government had announced demonetization of Rs 1000 and Rs 500 note on November 8, 2016. A demonetization is a tool useful for eradication of black money. After demonetization of Rs 1000 and Rs 500, the government introduced new Rs 500 but not Rs 1000. Instead of Rs 1000, the new Rs 2000 introduced not only these the RBI printed new RS 200 notes. Many now argue that the process of demonetization had little impact on balck money, given that 99 per cent of the notes were surrendered back to the bank. The cash ban had forced the RBI to print new notes and in new denominations.

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ABOUT INDIAN ECONOMY GROWTH RATE & STATISTICS

Introduction

India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers of the world over the next 10-15 years, backed by its strong democracy and partnerships.

Market size

India’s GDP is estimated to have increased 6.6 per cent in 2017-18 and is expected to grow 7.3 per cent in 2018-19. In April-July quarter of 2018-19, the GDP grew by 8.2 per cent.

India has retained its position as the third largest startup base in the world with over 4,750 technology startups, with about 1,400 new start-ups being founded in 2016, according to a report by NASSCOM.

India's labour force is expected to touch 160-170 million by 2020, based on rate of population growth, increased labour force participation, and higher education enrolment, among other factors, according to a study by ASSOCHAM and Thought Arbitrage Research Institute.

India's foreign exchange reserves were US$ 400.49 billion in the week up to September 14, 2018, according to data from the RBI.

Recent Developments

With the improvement in the economic scenario, there have been various investments in various sectors of the economy. The M&A activity in India increased 53.3 per cent to US$ 77.6 billion in 2017 while private equity (PE) deals reached US$ 24.4 billion. Some of the important recent developments in Indian economy are as follows:

Exports from India increased 20.7 per cent year-on-year to US$ 221.83 billion in April-August 2018.
Nikkei India Manufacturing Purchasing Managers’ Index (PMI) was at 51.7 in August 2018, showing expansion in the sector.
Mergers and acquisitions (M&A) activity in the country has reached US$ 74.8 billion in 2018 (up to August).
Income tax collection in the country reached Rs 10.03 lakh crore (US$ 137.75 billion) in 2017-18.
Companies in India have raised around Rs 21,000 crore (US$ 2.88 billion) through Initial Public Offers (IPO) in 2018 (up to August).
India's Foreign Direct Investment (FDI) equity inflows reached US$ 389.60 billion between April 2000 and June 2018, with maximum contribution from services, computer software and hardware, telecommunications, construction, trading and automobiles.
India's Index of Industrial Production (IIP) rose 5.4 per cent year-on-year in April-July 2018.
Retail inflation in the country was at a 10 month low of 3.69 per cent in August 2018, while wholesale inflation was at 4.53 per cent.
Around 10.8 million jobs were created in India in 2017.

The top 100 companies in India are leading in the world in terms of disclosing their spending on corporate social responsibility (CSR), according to a 49-country study by global consultancy giant, KPMG.

The bank recapitalisation plan by Government of India is expected to push credit growth in the country to 15 per cent, according to a report by Ambit Capital.
India has improved its ranking in the World Bank's Doing Business Report by 30 spots over its 2017 ranking and is ranked 100 among 190 countries in 2018 edition of the report.
India's ranking in the world has improved to 126 in terms of its per capita GDP, based on purchasing power parity (PPP) as it increased to US$ 7,170 in 2017, as per data from the International Monetary Fund (IMF).

India is expected to have 100,000 startups by 2025, which will create employment for 3.25 million people and US$ 500 billion in value, as per Mr T V Mohan Das Pai, Chairman, Manipal Global Education.

The World Bank has stated that private investments in India is expected to grow by 8.8 per cent in FY 2018-19 to overtake private consumption growth of 7.4 per cent, and thereby drive the growth in India's gross domestic product (GDP) in FY 2018-19.
Moody’s upgraded India’s sovereign rating in November 2017 after 14 years to Baa2 with a stable economic outlook.

Government Initiatives

The Union Budget for 2018-19 was announced by Mr Arun Jaitley, Union Minister for Finance, Government of India, in Parliament on February 1, 2018. This year’s budget will focus on uplifting the rural economy and strengthening of the agriculture sector, healthcare for the economically less privileged, infrastructure creation and improvement in the quality of education of the country. As per the budget, the government is committed towards doubling the farmers’ income by 2022. A total of Rs 14.34 lakh crore (US$ 196.94 billion) will be spent for creation of livelihood and infrastructure in rural areas. Budgetary allocation for infrastructure is set at Rs 5.97 lakh crore (US$ 81.99 billion) for 2018-19. All-time high allocations have been made to the rail and road sectors.

India's unemployment rate is expected to be 3.5 per cent in 2018, according to the International Labour Organisation (ILO).

Numerous foreign companies are setting up their facilities in India on account of various government initiatives like Make in India and Digital India. Mr. Narendra Modi, Prime Minister of India, has launched the Make in India initiative with an aim to boost the manufacturing sector of Indian economy, to increase the purchasing power of an average Indian consumer, which would further boost demand, and hence spur development, in addition to benefiting investors. The Government of India, under the Make in India initiative, is trying to give boost to the contribution made by the manufacturing sector and aims to take it up to 25 per cent of the GDP from the current 17 per cent. Besides, the Government has also come up with Digital India initiative, which focuses on three core components: creation of digital infrastructure, delivering services digitally and to increase the digital literacy.

Some of the recent initiatives and developments undertaken by the government are listed below:

The Union Cabinet gave its approval to the North-East Industrial Development Scheme (NEIDS) 2017 in March 2018 with an outlay of Rs 3,000 crores (US$ 460 million) up to March 2020.
Around 855,000 houses have been constructed up to August 21 2018, under Government of India’s housing scheme named Pradhan Mantri Awas Yojana (Urban).
Village electrification in India was completed in April 2018.

Around 10.16 million households have been electrified up to August 09, 2018 under the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA).

Prime Minister's Employment Generation Programme (PMEGP) will be continued with an outlay of Rs 5,500 crore (US$ 755.36 million) for three years from 2017-18 to 2019-20, according to the Cabinet Committee on Economic Affairs (CCEA).

In February 2018, The Union Cabinet Committee has approved setting up of National Urban Housing Fund (NUHF) for Rs 60,000 crore (US$ 8.24 billion) which will help in raising requisite funds in the next four years.

The target of an Open Defecation Free (ODF) India will be achieved by October 2, 2019 as adequate funding is available to the Swachh Bharat Mission (Gramin), according to Ms Uma Bharti, Minister of Drinking Water and Sanitation, Government of India.

The Government of India has decided to invest Rs 2.11 trillion (US$ 32.9 billion) to recapitalise public sector banks over the next two years and Rs 7 trillion (US$ 109.31billion) for construction of new roads and highways over the next five years.

The mid-term review of India's Foreign Trade Policy (FTP) 2015-20 has been released by Ministry of Commerce & Industry, Government of India, under which annual incentives for labour intensive MSME sectors have been increased by 2 per cent.

The India-Japan Act East Forum, under which India and Japan will work on development projects in the North-East Region of India will be a milestone for bilateral relations between the two countries, according to Mr Kenji Hiramatsu, Ambassador of Japan to India.

The Government of India will spend around Rs 1 lakh crore (US$ 13.73 billion) during FY 18-20 to build roads in the country under Pradhan Mantri Gram Sadak Yojana (PMGSY).
The Government of India plans to facilitate partnerships between gram panchayats, private companies and other social organisations, to push for rural development under its 'Mission Antyodaya' and has already selected 50,000 panchayats across the country for the same.
The Government of India and the Government of Portugal have signed 11 bilateral agreements in areas of outer space, double taxation, and nano technology, among others, which will help in strengthening the economic ties between the two countries.

Road Ahead

India's gross domestic product (GDP) is expected to reach US$ 6 trillion by FY27 and achieve upper-middle income status on the back of digitisation, globalisation, favourable demographics, and reforms.

India's revenue receipts are estimated to touch Rs 28-30 trillion (US$ 385-412 billion) by 2019, owing to Government of India's measures to strengthen infrastructure and reforms like demonetisation and Goods and Services Tax (GST).

India is also focusing on renewable sources to generate energy. It is planning to achieve 40 per cent of its energy from non-fossil sources by 2030 which is currently 30 per cent and also have plans to increase its renewable energy capacity from to 175 GW by 2022.

India is expected to be the third largest consumer economy as its consumption may triple to US$ 4 trillion by 2025, owing to shift in consumer behaviour and expenditure pattern, according to a Boston Consulting Group (BCG) report; and is estimated to surpass USA to become the second largest economy in terms of purchasing power parity (PPP) by the year 2040, according to a report by PricewaterhouseCoopers.

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PRIVATE LOCK & KEY FINANCE CIBIL CASES WE CONSIDER

Construction Loan
Home Loan
Business Loan
Project Loan
NRI Home Loan
NRI Mortgage Loan
Loan Against Shares
Private Finance
New / Refurbished Machinery & Equipment Finance
Machinery Loan-All type of Machinery to all type of manufacturer
Term Loans (such as Loan Against Property - Resident / Commercial / Industrial)
Working Capital Demand Loans
Financing to Hotels, Restaurants & Food chains.
Education Institute funding
Medical Equipment & Healthcare funding
Hospital & Infrastructure Finance
Generator Funding
Office Equipment Finance(Printing machine,Xerox Machine, Color lesser printing Machine)
L.A.P. Commercial & Industrial property.
L.R.D. (Lease rent Discounting)
Bill Discounting, L.C. Discounting, Bank Guarantee, O.D., C.C.
USP- Machine up to 2 Crore No additional Collateral Required Very quick process -within limited time.

Service All Over India. Cibil cases are welcome Secured. mail your requirement or call fore more details.
Surematrix Services
Kandivali Charkop Branch Mumbai.

https://www.facebook.com/homefinanceloan?ref=profile
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Loan against machinery & L.A.S.

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Private finance available against sale deed

1.    L.A.P. Commercial & Industrial & Residential property.

2.    Business Loan

3.    Construction Loan

4.    Home Loan

5.    Project Loan

6.    LRD (Lease rent Discounting)

7.    Loan Against Shares

8.    Personal Loan

9.    Bill Discounting, L.C. Discounting, Bank Guarantee, O.D., C.C.

10.  New / Refurbished Machinery & Equipment Finance

11.  Machinery Loan-All type of Machinery to all type of manufacturer

12.  Term Loans (such as Loan Against Property - Resi / Commercial / Industrial)

13.  Working Capital Demand Loans

14.  Financing to Hotels, Restaurants & Food chains.

15.  Education Institute funding

16.  Medical Equipment & Healthcare funding

17.  Hospital & Infrastructure Finance

18.  Generator Funding

19.  Private Finance Available 

20.  Office Equipment Finance(Printing machine, Xerox Machine, Colour lesser printing Machine)

USP- Machine up to 2 Crore No additional Collateral Required Very quick process -within limited time.


Service All Over India. Cibil cases are welcome. mail your requirement or call fore more details.
Surematrix services
Kandivali Charkop Branch Mumbai.

http://surematrixservices.in/
https://www.facebook.com/homefinanceloan?ref=profile
http://in.linkedin.com/pub/surematrix-service/76/309/4b4

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LOAN AVAILABLE FOR ALL YOUR NEEDS

We consider below profile for all type of loan, Civil contractor, Share broker, Estate agent / Broker, Media, Lal dora properties, Ware houses, Property dealer, Khasra Khatuni Property, Jeweller, Property wherein more than 5 tenants. All types of alternate collaterals like godowns, Industrial gala etc... Residential property, Commercial & commercial purchase , industrial & industrial purchase , NA open Land.. Geo limit- Maharashtra /Karnataka / M P only...,

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