Healthy Living Report Essay Example for Free

Healthy Living Report Essay Healthy livingâ€Å" Campaign report 1. Background research to the issue To find the way linked to my group topic and target made us to meet many times and discuss about social issues among students and young people. It made my group to think a lot what topic for campaign would be interesting to us – while working for this, and similarly what would be interesting for other people especially for students in Middlesex University. First of all, everyone in my group pay attention on unhealthy food and ingredients which make daily food able to be fresh for long term and even dangerous. My group decided to start doing campaign â€Å"tricky food† and we all fell into research on dangerous ingredients in popular supermarkets’ food. As we published in our Wiki page â€Å"Unhealthy substitutes used in food production† had to be our campaign stage. (Wiki, ResearchS08G1). From long list of various chemicals and acids which are used in food our group made a decision to focus on Aspartame the most. Aspartame is artificial sweetener which is 200 times sweeter than sugar and commonly used in food industry. In the internet is not difficult to find many articles and discussions about it, some people claim that it is very dangerous to human’s health because of its force to cause cancer, nerve disorders, birth defects and other healthy imbalances. From the other side of view, probably from the business side, some people are ready to prove that aspartame is not so bad, the right amount of it in food is not dangerous and it is cheaper to use in food industry than sugar. However, this sweetener is widely used and found in drinks such as diet coke, energy drinks and even some juice. In the United States aspartame is regulated by FDA – Food and Drug Administration which has set the ADI (acceptable daily intake) for aspartame 50mg/kg and similarly in the European Union – by European Food Safety Authority ADI is 40mg/kg. (American Cancer Society, Learn About Cancer 2011). Well, when the national administration has set the secure quantity of this sweetener it became allowable to use it in food widely. Due to that my group decided that there are no argues with food industry and during our campaign it is hard to change sweeteners usage in nourishment and we made another decision: to change campaign topic and target substantially. Every one of us is surrounded by bright adverts and slogans to be eco-friendly, to eat healthy food, to avoid junk food, to choose food without any preservatives and so on. My group and I also decided to join in those who are providing healthy living style. We started to do another research linked to it, to search what vitamins human need to recover healthy organism after winter and which fruit and vegetables have beneficial vitamins, minerals and antioxidants. Also very important issue that UK is on the leading position in regards to obese citizens in Europe (Wiki, ResearchS08G1). Regarding to New York Times (2010, The World is Fat) in almost half of developed countries, one out of every two people is overweight or obese. In the figure is clearly visible that England was and will be second nation after United States which has overweight, till 2020 it can reach 70 per cent limit! These facts made us to take care for obese issue in United Kingdom. As a united group of different countries: two Lithuanians, Polish and two English we see our target to start informing students about this growing problem by providing healthy eating habits and healthy life style including exercises and view of it. 2. Process of campaign planning Firstly, we had chosen to run the campaign about â€Å"tricky food† and especially aspartame but as I mentioned in the first part of report, during the research we found facts that aspartame is legal sweetener and the right amount of it is not dangerous to human’s health. With our campaign we would be having too less force and evidence in order to avoid this sweetener use in food industry. Regarding to this, we left the idea about tricky food and during more than two meetings we were discussing about many topics which could be interesting and worthy to pay attention. It was not easy part of planning our campaign because we all understood that to find the topic with strong target and serious attitude it is difficult. We mentioned points such as how we could include more people to our team, how we could represent information for them and for our university, should we stay only in university or shall we go further: inform people about issue in our living areas, in the social websites, etc. how we could do our event and what to do so as to attract an attention. We were sure that we will have leaflets with useful information, that we will set up facebook page for our campaign and we will do our event in the university. In our meeting we had not have one  person as a chairperson, we all were equivalent and we all were suggesting our ideas. My idea was to look deeper how we are living, what are ours daily diet, daily routine – are we healthy enough or should we change something in our lives. While suggesting the topic Healthy living I also had an idea to raise the charity fund. Even more, to visit children schools or other meeting places and inform them about our campaign and targets. Unfortun ately, I had not got any assent from my team members for this action. However, I sent some emails to charities such as British Red Cross and Save the Children. I informed them about our campaign and targets, mentioned that we would like to do our campaign as a charity. While giving healthy food (fruit or veg) in university my team could collect some donation for one of the charities and later we could collaborate by doing volunteering jobs or events providing healthy living. I have got an answer from British Red Cross, they were interesting in our action and targets. Unfortunately, I had got that answer too late because we were already doing our campaign on ourselves without any outside organizations. 3. Work as a group From my view at this point I am quite happy while working with my group. As in every team work we faced with some advantages and disadvantages but the final result was nice. The best times and really strong team work were when all group members were attending the meetings. Sure, it had happen only few times, however, those meetings were pretty good. We had never have any argues or complaints, our discussions were always polite and with respect to each other. We always listened to each other’s ideas and discussed them together with giving some agreements or reasoned rejections. Usually our meetings were with three attended group members. Nevertheless, we were able to consider what would be the next step, what research we had to do until next meeting and all jobs or duties were apportion between every team member equally. Even more, if we were having enough spare time after meeting, some of us were going to library to do research together or to write down the minutes into the wiki page. For more questions or advice we were chatting online, by sending emails we arranged for the next meeting. On the other hand, this low attendance made some difficulties to organize all team work, it always takes time to text messages to inform other members about further actions. Because everyone has jobs it was difficult to find right times in order to meet all together, some group members were paying more attention for their jobs than to studies and especially for this campaign. Due to these issues our campaign was small and weak, its background were just two people who pay more attention to every organizing step. 4. Your action I value my action in the group as big part of whole campaign. The background and topic of Healthy living was my idea suggested in the group meeting. I came with the wide idea of it and I had some plans how to reach the main aim. As I mentioned above, I offered to do a campaign as a charity: while providing fruit or vegetables for students we can collect donation for a charity, later collaborate with that organization and hope for getting some support. Personally I always like to communicate with organizations such as charities or other help centres, I have previous experience by searching the support for some events that is why I feel free and confident while asking others to promote my plans. This time I had asked some charities but unfortunately I have not got any help from them. First of all, I think I had to call them straight away and reject sending emails and waiting for answers, second , I think I had to let them know more about my action, about our campaign, purpose and all details so as to make them interesting enough to support us. Finally, if I would be able to have enough force to influence others I would have asked other my group members to help me and to pay more attention on our campaign because I felt too weak to take this huge part alone. Anyway, at the end of March and beginning of April I was communicating with Community Fundraiser from British Red Cross. She replay to my email a bit too late than I was expected but it is always nice to let other communities know about my actions and attitude. I can be brave to say that I was that person in my group who was the most enthusiastic about campaign planning and actions. It was not difficult to take care and organize the event during which we were giving free apples, apple shaped stickers and leaflets with interesting information about fruit. In order to get apples each of us asked local shops to support us by giving some apples. I am living Hendon, so here I found many local shops where I am shopping almost every day and I visited them with my special request. First of all, while talking to the manager of the shop I let him know who I am and what I am doing, later I asked him to support our campaign and in the same way I made him sure that he is making big help not only for my group but also for some students who maybe will start thinking more about healthy life style. Some shops rejected my request but I did not give up and went ahead. Finally, I found one shop near to the Hendon Central Station which was very helpful and polite. People who are working there wished me luck and even know they look at me as at friendly shopper. 5. Supporting other campaigns Our group was working alone without any collaborate with other campaigns from our module. As we all got the topic food almost all campaigns were linked to healthy products. Some of them had chosen specifically one product (energy drink, junk food – hamburgers, etc. ) and they run campaigns in order to change people attitude and inform them how dangerous it is. Differently, we had not chosen any products – we looked into whole lifestyle which includes food, exercises and attitude. I really appreciate other people job, how they did their campaigns, how they had represented their ideas and what targets they had. Only one thing what I might to change could be the way how they did their events. Most of all campaigns were too silent, working only on social websites such as Facebook or Twitter, I would rather do it loudly in the centre of our university. References: Wiki, S08G1 â€Å"Healthy Living†, research 2012 [online], http://mcs1000campaigns. middlesex. wikispaces. net/ResearchS08G1 American Cancer Society, Learn about cancer 2011. [online], http://www. cancer. org/Cancer/CancerCauses/OtherCarcinogens/AtHome/aspartame The New York Times, The World is Fat 2012, [online], http://economix. blogs. nytimes. com/2010/09/23/the-world-is-fat/

SREI India Financial and SWOT Analysis

SREI India Financial and SWOT Analysis OBJECTIVE OF THE PROJECT: To develop and understanding of the Non-Banking Financial Institutions (NBFIs) and their business operations in India. To do a detailed research on SREI Equipment Finance Private Limited, its market share and the SWOT analysis. To thoroughly review SREIs credit appraisal and credit management process. To understand the risk management process of the company. To gain a detailed knowledge of the parameters that affects various risks. To determine weightages and scores for designing and developing risk assessment model based on market forces for assessing SREIs Customers. METHODOLOGY: In order to achieve the said objectives, will be to go through the entire NBFs history, thrust areas; growth opportunities, present scenario. This will be the ongoing process and will be done using internet, news and books. To understand the functioning of SREI pertaining to credit risk management and appraisal process followed for financing large corporates (risk exposures more than Rs.5 crores). Factual data, credit appraisal memorandum prepared by the company and the credit risk policy of the company will be referred in this regard. Then comes the technical part of conducting Balance Sheet Analysis, Ratio Analysis and Cash Flow Analysis. To propose a statistical credit rating model, data have been collected from credit officers and the relationship managers in the institution. Financial ratios were used to measure the strength of the customer. Score model for assessing risk to convert responses to scores. Weighted average method applied to assign appropriate importance to various parameters. LIMITATIONS OF THE STUDY: The study will only be focusing on the LARGE CORPORATES (risk exposure more than Rs.5 crores) not the retail and SME sectors of SREI. Study is on the basis of first-hand information collected from employees/head of the division of the company that might be incorrect or biased. Duration of the internship imparts the pressure of covering this vast spectrum in a limit period of 14 weeks. The accuracy of the Risk Assessing Model depends on the accuracy of information provided by the customer. The risk rating model doesnt take into the consideration where in the company doesnt follow the rules norms strictly. The relationships with the customers are given more importance. INDUSTRY ANALYSIS: Structure of Indias Financial Services Industry: The RBI, the central banking and monetary authority of India, is the central regulatory and supervisory authority for the Indian financial system. SEBI and IRDA regulate the capital markets and insurance sector, respectively. A variety offinancial intermediaries in the public and private sectors participate in Indias financial sector, including the following: Commercial banks; NBFCs; Specialised financial institutions like NABARD, EXIM Bank, SIDBI and TFCI; Securities brokers; Investment banks; Insurance companies; Mutual funds; and Venture capital. NON-BANKING FINANCIALCOMPANIES: Non-banking financial companies (NBFCs) are fast emerging as an important segment of Indian financial system. It is an heterogeneous group of institutions (other than commercial and co-operative banks) performing financial intermediation in a variety of ways, like accepting deposits, making loans and advances, leasing, hire purchase, etc. They raise funds from the public, directly or indirectly, and lend them to ultimate spenders. They advance loans to the various wholesale and retail traders, small-scale industries and self-employed persons. Thus, they have broadened and diversified the range of products and services offered by a financial sector. Gradually, they are being recognized as complementary to the banking sector due to their customer-oriented services; simplified procedures; attractive rates of return on deposits; flexibility and timeliness in meeting the credit needs of specified sectors; etc. The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III B) and the directions issued by it under the Act. As per the RBI Act, a non-banking financial company is defined as:- (i) a financial institution which is a company; (ii) a non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; (iii) such other non-banking institution or class of such institutions, as the bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify. NBFCs VsBANKING SECTOR IN INDIA: Non-Banking Finance Companies (NBFCs) are an integral part of the countrys financial system complementing theservices of commercial banks. The main reason attributed to the growth of NBFCs is the comprehensive regulation of thebanking system. Other factors include higher level of customer orientation, lesser pre/post sanction requirements andhigher rates of interest on deposits being offered by NBFCs. NBFCs have traditionally been extending credit across various parts of the country through their geographical presence,with NBFCs being a supplier of credit to segments such as equipment leasing, hire purchase, and consumer finance. Theseare areas which warrant infusion of financing due to the existing demand-supply gap. NBFCs have been a more flexiblesource of financing and have been able to disburse funds to a gamut of client, from the local common man to a varietyof corporate client. NBFCs are also able to accelerate the pace of decision making to disburse funds, customise andtailor their products according to the client needs and take on excess risks on their portfolio. NBFCs can be divided intodeposit taking NBFCs, i.e., which accept deposits from public and non-deposit taking NBFCs being those which do notaccept deposits from public. The activities carried out by NBFCs in India can be grouped as under The types of NBFCs registered with the RBI are:-  § Equipment leasing Company: is any financial institution whose principal business is that of leasing equipment or financing of such an activity.  § Hire-purchase Company:is any financial intermediary whose principal business relates to hire purchase transactions or financing of such transactions.  § Loan Company: means any financial institution whose principal business is that of providing finance, whether by making loans or advances or otherwise for any activity other than its own (excluding any equipment leasing or hire-purchase finance activity).  § Investment Company: is any financial intermediary whose principal business is that of buying and selling of securities. Now, these NBFCs have been reclassified into three categories:-  § Asset Finance Company (AFC)  § Investment Company (IC) and  § Loan Company (LC). Under this classification, AFC is defined as a financial institution whose principal business is that of financing the physical assets which support various productive/economic activities in the country. GOVERNMENT ROLE IN PROMOTING INFRASTRUCTURE FINANCE: Infrastructure is expected to be a key area of growth in a developing country like India. The Government has been activelypromoting the countrys infrastructure through a sustained focus on area like power, roads, ports and urbantransportation. Private sector participation through public private partnerships as well as privately funded projects isbeing encouraged in order to enable quick scale up of governments efforts and better management. As per PlanningCommissions estimates the investments in infrastructure during the Tenth Plan aggregated to Rs. 4, 52,900 crores whichis expected to increase to Rs. 11, 25,000 crores in the Eleventh Plan. The chart below describes the anticipated andestimated investments under the two plans respectively. PROJECTED INVESTMENT IN INFRASTRUCTURE in the 11th FIVE YEAR PLAN: COMPANY PROFILE: A started operation in 1989, Srei is a leading infrastructure focused private sector Non-Banking Financial Company (NBFC) in India. It is currently the only institution in India offering holistic infrastructure solutions financing, advisory services development. Milestones Achieved: 1989 Started operations and identified the infrastructure sector as its core Business area. 1992 Initial Public Offering with listing on all major stock exchanges. 1997 IFC, FMO DEG invested as strategic equity partners Promoters stake. 2002 Conceived Quippo, Indias first equipment bank. 2004 All India presence, currently 63 offices. 2005 First Indian NBFC to be listed on the London Stock Exchange. 2006 Geographical expansion into Russia; equity partners EBRD, DEG, FMO. 2007 Joint venture with BNP Paribas Lease Group, 100% subsidiary of BNP Paribas. 2008 Holistic Infrastructure Institution, financing, advisory services Development. Services: Ø Infrastructure Equipment Financing Leasing Ø Infrastructure Project: Financing, Advisory services and development Ø Insurance Broking Ø Venture Capital Ø Capital market Ø Sahaj e-village Ø Quippo Equipment Bank GROUP STRUCTURE: About Srei Equipment Finance Private Limited: Srei BNP Paribas (Registered name: Srei Equipment Finance Private Limited) is a 50:50 joint-venture between Srei Infrastructure Finance Limited, Indias leading and only private sector Non-Banking Financial Institution in the infrastructure space and BNP Paribas Leasing Solutions(BPLS), a wholly owned subsidiary of BNP Paribas, France. Srei BNP Paribas started its operation from January 01, 2008 with the infrastructure and construction equipment financing and insurance businesses and has further plans to expand its business to new verticals. Industry leader in the infrastructure and construction equipment financing, Srei BNP Paribas is aptly benefitting from the Indian expertise and insight of Srei and global leasing insight in diverse product classes of BNP Paribas. Srei BNP Paribas has deep insight on diverse equipment used in the infrastructure and construction sector and acts a valuable advisor to its customers. It has tied up with all the leading equipment manufacturers. Over the years, Srei BNP Paribas has been innovating new marketing programs bringing together the manufacturers and customers on a single platform, creating immense value and sharing this value with all the stake holders. Paison Ki Nilami and Srei BNP Paribas Partnership Week are two such prominent programs. Srei BNP Paribas has already started financing Technology Solutions (financing of IT equipment, software and services) and has effectively partnered with leading global IT vendors for financing their customers. It has also forayed into financing of new Equipment classes: Agriculture Equipment, Healthcare Equipment, Office Automation, and Equipment in Education sector etc. With its foray into new equipment classes, Srei BNP Paribas has become probably the one and only Company to offer complete Equipment Solutions. With a customer base of over 20,000, Srei BNP Paribas has grown from strength to strength enjoying a strong national presence with a network of 86 offices across India. VISION: To be the most inspiring global holistic infrastructure institution. MISSION: To be an Indian multinational company providing innovative integrated infrastructure solutions. CORE VALUES: Customer Partnership: At Srei, customer satisfaction is the benchmark for success. Srei delights its customers through a comprehensive range of financial services that are personalized, fast, reliable, convenient, quality driven, and yet cost effective. Integrity: Business integrity is a way of life at Srei. The company strongly stands by integrity in all its dealings and ensures strict adherence to the highest standards of business ethics. Passion for Excellence: Sreis passion for excellence is instrumental in positioning the company as the most innovative infrastructure solution provider in India. Respect for People: Srei acknowledges the fact that its people are its most valuable assets and accordingly provides the best possible work environment and treats them like family members. The company rewards excellence and initiative. Stakeholder Value enhancement: Srei is committed to earning the trust and confidence of all its stake holders. Its growth focus, the ability to constantly enlarge its product basket while controlling risk and reducing the cost of its services have resulted in enhanced value for its stakeholders. Professional Entrepreneurship: Sreis in depth knowledge of infrastructure financing business in India, coupled with its spirit of entrepreneurship, and helps the company to overcome the obstacles and complexities with professional expertise. MANUFACTURING PARTNERS: MARKET SHARE OF SREI BNP PARIBAS: Source: Company. MAJOR COMPETITORS: 1. MAGMA FINCORP LIMITED: Magma Fincorp Ltd (Magma) is a Kolkata based asset financing company. The company is engaged in financingof commercial vehicles, cars, construction equipment, tractors and utility vehicles.The companys target customers are mostly first time users and small entrepreneurs. The Company provides construction equipment finance across retail and strategic customer segments. In the retail segment, it focuses on first-time buyers and small customers. The Company has established contracts with large value vendors addressing multiple projects. It finances a range of construction equipment like excavators, backhoe loaders, compactors, compressors, cranes, tippers and drillers of prominent brands like JCB, Telcon, LT, Ingersoll-Rand, Caterpillar, ECEL, Escorts and Atlas Copco etc. Magma provides unsecured EMI-based loans to SMEs for working capital, business expansion and business maintenance. It has developed proprietary financial analysis tools to make safe credit assessments. The share of this segment is increasing in the total disbursements (5% in FY10). Going forward the company intends to maintain the proportion of these loans at 5% and would adopt a cautious approach while lending. In Commercial Vehicle Finance Segment, Magma provides loans on used commercial vehicles and construction equipment. Magma refinanced popular models of Tata Motors and Ashok Leyland. Magma Fincorp predominantly was engaged in financing of construction equipment and passenger cars, utility vehicles and commercial vehicles (CVs). These business verticals accounted for 90% of the companys disbursements in FY10. Recently the company has ventured into high-yield segments, viz; financing of used CVs, tractors and SME loans. Most of the loans disbursed are retail loans and have small ticket size except in the construction equipment segment. MFL has a concentrated focus on the under tapped semi urban and rural market to finance first time users, Small Road Transport operators, small contractors etc. 2. TATA CAPITAL: The Company was incorporated on March 8, 1991 and actively commenced business operations since September, 2007. The Company is a wholly owned subsidiary of Tata Sons Limited, the apex holding company of the Tatas. Their fund based businesses comprise Corporate Finance, Infrastructure Finance and Retail Finance fee based businesses comprise investment banking, broking and distribution, wealth management, private equity, treasury advisory, services relating to travel, forex and infrastructure. With the wide array of products and customized service, the commercial finance business, helps small, medium and large corporates grow their business. The companys team of handpicked professionals offers in-depth expertise to help customers keep pace with the changing marketplace and offer them appropriate solutions to meet their ever-growing financial needs. The companys management structure enables them to leverage relationships across lines of our businesses. Their product knowledge and multi-channel delivery model enhances the ability to cross-sell the companys services. TATA Capital is in the advanced stages of setting up institutional broking, insurance broking and rural finance businesses which would supplement the aforementioned lines of business. TATA Capital believes that the following are the key strengths: Unified financial services platform; Diversified and balanced mix of businesses; Experienced management team; Innovative solutions model; Respected brand; Controls, processes and risk management systems; and Access to capital. 3. LT FINANCE LIMITED: LT Finance Limited (LTF) is a subsidiary of Larsen and Toubro. It was incorporated as a Non-Banking Finance Company in November 1994. Through LTF, LT aims at making a strong foray in the ever-expanding financial services sector.LT Finance understands the intricacies of your business. We at LT Finance offer financing for your Construction Equipment in the form of term loans, working capital loan and operating lease facilities. In 1996, LT Finance had made a foray in financing of commercial vehicles. LT Finance offers financing Commercial Vehicles of all makes and sizes. We also undertake funding of the body for the Commercial Vehicles. LT Finance has an extensive network from where you can easily avail financing for your Commercial Vehicle. Advantages of partnering with LT Finance Presence in more than 70 locations Flexible repayment option Competitive interest rates Finance for used vehicles available Faster loan approval and disbursement A brief Comparison between SREI EQUIPMENT FINSNCE its Competitors: REASON FOR THE JOINT VENTURE WITH BNP PARIBAS LEGAL SOLUTIONS: Mr.HemantKanoria, Vice Chairman and Managing Director of SREI, termed this joint venture as a very significant step in the Indian Financial Services Market. â€Å"We are the largest player in the financing of infrastructure equipment and collaborating with BPLG will help in increasing our market share further and also expanding the product line into financing of agriculture, information technology, medical and other equipment.† Speaking at the occasion Mr. Bertrand Gousset, member of the Executive Committee of BPLG, in charge of Corporate Development, said, â€Å"We are delighted to be associated with the SREI group, who are the leaders in the financing of infrastructure equipment and provide a wide range of equipment finance products to large strategic clients as well as to retail customers, with pan-India coverage. This joint venture is very significant for us and we look forward to a long and prosperous association with them.† Mr. Sunil Kanoria said, â€Å"This joint venture signifies the coming together of two companies with the same shared values. Both SREI and BPLG are convinced that they are well positioned to build on the already strong platform established by SREI and that this will enable in reduction in cost of funds resulting in higher profitability.† Mr.Amoudru, CEO of BNP Paribas India and Head of Territory, said The acquisition of a 50% stake in this joint-venture with SREI a highly recognised firm in equipment and infrastructure financing further evidences the willingness of the BNP Paribas Group to expand its presence in India in activities where it has a strong expertise. It represents another substantial capital commitment from the Group- the largest so far- in this country and testifies our confidence in the long term prospects of the Indian economy. SWOT ANALYSIS: LITERATURE REVIEW: FLOW OF THE PROCESS AT SREI: CREDIT APPRAISAL: Credit Appraisal is a process to ascertain the risks associated with the extension of the credit facility. It is generally carried by the financial institutions which are involved in providing financial funding to its customers.These financial institutions appraise the technical feasibility, economic viability and bankability including creditworthiness of the prospective borrower. Credit appraisal starts from the time a prospective borrower walks into the branch and culminates in credit delivery and monitoring with the objective of ensuring and maintaining the quality of lending and managing credit risk within acceptable limits. Credit appraisal involves analysis of liquidity position/ financial soundness of the company. Although, the analysis also covers understanding growth trends in revenues and earnings, and profit margins, more emphasis is required to be placed on liquidity-both long term and short term. There are basically two types of proposals that are received by the companies for funds. The first types of proposals are financing against new and first hand assets to be purchased (EQUIK) and the other proposals are financing against pre owned assets (REQUIK). Asset finance is generally divided into three departments depending upon the risk exposure*: Retail: Aggregate risk exposure not exceeding Rs.1 crore. SME (Small Medium Enterprises): Aggregate risk exposure between Rs.1 5 crores. Strategic: Aggregate exposure more than Rs.5 crores. *NOTE: Risk exposure to a client is determined by the summation of Net Finance Amount for the approval(s) being considered, together with all existing exposures to the client all related concerns in aggregate and residual Net Finance Amounts under all previous valid approvals for the Client pending part or full disbursement. SOME IMPORTANT TERMINOLOGIES: ASSET FINANCE: Asset Finance category includes secured business loan in which the borrower pledges as collateral an asset used in the conduct of its business. Asset finance also includes business in which a client takes an asset on lease for use in the conduct of his business for a defined period with or without right of onward sub lease the asset. ASSET COST: In case of Equik, the invoice values of the Asset including all duties and taxes which are not refundable or adjustable under drawback or otherwise any scheme. Spares, consumables, accessories auxiliaries, consultancy fees, installation and erection charges, etc. shall not be considered as part of asset cost. In case of Requik, Asset cost will be determined by the lowest of: Present Intrinsic Value of Asset as determined through a process by an expert approved by SREI. Actual purchase price to be paid by the consumer Current Insured Declared Value. MARGIN: Margin means the clients contribution on the Asset Cost payable upfront or any amount deposited with us as Security Deposit in relation to the transaction before the disbursement or release of facility. AIRR: Internal Rate of Return (IRR) by definition is the rate of return at which the Net Present Value of the stream of payments (repayment of installments and interest by the customer vis-à  -vis the actual disbursement made by the company) become equal to zero. FIRR: Financial IRR (FIRR) shall mean the transaction IRR without factoring any benefit available to Srei BNPP in terms of normal MOU entered into by srei BNPP with concerned manufacturer. Management fees/ RTE/ Commitment Charges collected upfront, an extra credit period, subvention or other cash incentives extracted from the manufacturer over and above those available workings. YIELD: Yield means the rate of return to Srei-BNPP from the transaction, factoring all the benefits available to Srei-BNPP under normal MOU and otherwise from the manufacturers/vendors. ETR (Excellent Track Record): ETR means peak delay of not more than 30 days and average delay of not more than 15 days for payment of dues in all existing and past accounts of the proposed customer. GTR (Good track Record): GTR means peak delay of not more than 45 days and average delay of not more than 30 days for payment of dues in all existing and past accounts of the proposed customer. PTR (Poor track Record): PTR means peak delay more than 45 days and average delay of more than 30 days for payment of dues in all existing and past accounts of the proposed customer. ANALYSIS OF CREDIT APPRAISAL MEMORANDUM: Credit risk of each individual transaction is studied and managed from the five different perspectives: Customer credit worthiness Asset quality Asset deployment Collateral security Facility type Background of the proponent/ management: The identification of the borrower is done properly through scrutiny of his antecedents, experience, competence, integrity, initiative etc. This may be done by obtaining status reports from previous bankers. In case of corporate, the management structure, the background of the top management needs to be scrutinized. KYC guidelines as framed by RBI are adopted by the company. Commercial Appraisal: The nature of the product, demand for the same, the existing and perceived competition in the segment, ability of the proponents to withstand the same, government policies governing the industry etc. need to be taken into consideration. Technical Appraisal: Technical appraisal of the project needs to be carried out for industrial activity proposals beyond the cut off limits prescribed from time to time. Such appraisal may be carried out in house by technical officers. Financial Appraisal: Apart from ascertaining the need based character of the limits requested for, the financial health of the proponents, ability to absorb unanticipated financial costs need to be looked into which would include scrutiny of the cost of the project, means of financing, financial projections etc. important performance indicators like profitability ratios, debt equity ratio, operating profit margin etc. need to be within acceptable parameters for that industries/ activities. INTRODUCTION TO RISK: The interpretation of the word risk will determine the approach to risk management. The word risk is interpreted in three distinct senses namely risk as hazard, risk as opportunity and risk as uncertainty. Risk as hazard is the most commonly used meaning of risk and it means likely financial losses arising from negative events such as control failures, bad publicity and loss of reputation. Risk management in this context would mean eliminating possibilities of losses from such negative events by putting in place adequate control systems. Risk as an opportunity means, taking risks and earning adequate returns on them. This implies the trade-off between risk and return. Here risk management, becomes risk optimization meaning maximizing the upside potential and minimizing the downside. Here capacity and ability to manage risk is used to increase shareholders value and achieve a competitive advantage. Risk, as uncertainty is basically a statistical concept, which assumes a normal distribution for future outcomes. Here risk management means narrowing the difference between the expected outcomes and actual results. Banks and other similar financial institutions need to manage the risk inherent in the entire portfolio as well as the risk in individual credits or transactions. The effective management of risk is a critical component of a comprehensive approach to risk management and essential to the long-term success of any banking organization. In simple words, risk is the possibility of losses associated with decrease in the credit quality of borrowers. In a financial institution, loss may stem from default due to inability or unwillingness of a customer to meet his commitments in relation to lending, trading, settlement and other financial transactions. A default reduces the present value of the loan and consequently the value of the banks business. Thus, it is imperative that these institutions have a robust risk management. MODEL BUILDING: Need for Study: A Risk Assessment Model (RAM) is necessary to avoid the limitations associated with a simplistic and broad classification of applicants into a good or bad category The comapny currently uses a judgemental risk assessing model. Grading System for Standardization of Risk: The grades (symbols, numbers, alphabets, and descriptive terms) used in the internal credit-risk grading system represent, without any ambiguity, the default risks associated with an exposure. The grading system will enable comparisons of risks for purposes of analysis and top management decision-making. The grading system is therefore, be flexible and should accommodate the refinement SREI India Financial and SWOT Analysis SREI India Financial and SWOT Analysis OBJECTIVE OF THE PROJECT: To develop and understanding of the Non-Banking Financial Institutions (NBFIs) and their business operations in India. To do a detailed research on SREI Equipment Finance Private Limited, its market share and the SWOT analysis. To thoroughly review SREIs credit appraisal and credit management process. To understand the risk management process of the company. To gain a detailed knowledge of the parameters that affects various risks. To determine weightages and scores for designing and developing risk assessment model based on market forces for assessing SREIs Customers. METHODOLOGY: In order to achieve the said objectives, will be to go through the entire NBFs history, thrust areas; growth opportunities, present scenario. This will be the ongoing process and will be done using internet, news and books. To understand the functioning of SREI pertaining to credit risk management and appraisal process followed for financing large corporates (risk exposures more than Rs.5 crores). Factual data, credit appraisal memorandum prepared by the company and the credit risk policy of the company will be referred in this regard. Then comes the technical part of conducting Balance Sheet Analysis, Ratio Analysis and Cash Flow Analysis. To propose a statistical credit rating model, data have been collected from credit officers and the relationship managers in the institution. Financial ratios were used to measure the strength of the customer. Score model for assessing risk to convert responses to scores. Weighted average method applied to assign appropriate importance to various parameters. LIMITATIONS OF THE STUDY: The study will only be focusing on the LARGE CORPORATES (risk exposure more than Rs.5 crores) not the retail and SME sectors of SREI. Study is on the basis of first-hand information collected from employees/head of the division of the company that might be incorrect or biased. Duration of the internship imparts the pressure of covering this vast spectrum in a limit period of 14 weeks. The accuracy of the Risk Assessing Model depends on the accuracy of information provided by the customer. The risk rating model doesnt take into the consideration where in the company doesnt follow the rules norms strictly. The relationships with the customers are given more importance. INDUSTRY ANALYSIS: Structure of Indias Financial Services Industry: The RBI, the central banking and monetary authority of India, is the central regulatory and supervisory authority for the Indian financial system. SEBI and IRDA regulate the capital markets and insurance sector, respectively. A variety offinancial intermediaries in the public and private sectors participate in Indias financial sector, including the following: Commercial banks; NBFCs; Specialised financial institutions like NABARD, EXIM Bank, SIDBI and TFCI; Securities brokers; Investment banks; Insurance companies; Mutual funds; and Venture capital. NON-BANKING FINANCIALCOMPANIES: Non-banking financial companies (NBFCs) are fast emerging as an important segment of Indian financial system. It is an heterogeneous group of institutions (other than commercial and co-operative banks) performing financial intermediation in a variety of ways, like accepting deposits, making loans and advances, leasing, hire purchase, etc. They raise funds from the public, directly or indirectly, and lend them to ultimate spenders. They advance loans to the various wholesale and retail traders, small-scale industries and self-employed persons. Thus, they have broadened and diversified the range of products and services offered by a financial sector. Gradually, they are being recognized as complementary to the banking sector due to their customer-oriented services; simplified procedures; attractive rates of return on deposits; flexibility and timeliness in meeting the credit needs of specified sectors; etc. The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III B) and the directions issued by it under the Act. As per the RBI Act, a non-banking financial company is defined as:- (i) a financial institution which is a company; (ii) a non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; (iii) such other non-banking institution or class of such institutions, as the bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify. NBFCs VsBANKING SECTOR IN INDIA: Non-Banking Finance Companies (NBFCs) are an integral part of the countrys financial system complementing theservices of commercial banks. The main reason attributed to the growth of NBFCs is the comprehensive regulation of thebanking system. Other factors include higher level of customer orientation, lesser pre/post sanction requirements andhigher rates of interest on deposits being offered by NBFCs. NBFCs have traditionally been extending credit across various parts of the country through their geographical presence,with NBFCs being a supplier of credit to segments such as equipment leasing, hire purchase, and consumer finance. Theseare areas which warrant infusion of financing due to the existing demand-supply gap. NBFCs have been a more flexiblesource of financing and have been able to disburse funds to a gamut of client, from the local common man to a varietyof corporate client. NBFCs are also able to accelerate the pace of decision making to disburse funds, customise andtailor their products according to the client needs and take on excess risks on their portfolio. NBFCs can be divided intodeposit taking NBFCs, i.e., which accept deposits from public and non-deposit taking NBFCs being those which do notaccept deposits from public. The activities carried out by NBFCs in India can be grouped as under The types of NBFCs registered with the RBI are:-  § Equipment leasing Company: is any financial institution whose principal business is that of leasing equipment or financing of such an activity.  § Hire-purchase Company:is any financial intermediary whose principal business relates to hire purchase transactions or financing of such transactions.  § Loan Company: means any financial institution whose principal business is that of providing finance, whether by making loans or advances or otherwise for any activity other than its own (excluding any equipment leasing or hire-purchase finance activity).  § Investment Company: is any financial intermediary whose principal business is that of buying and selling of securities. Now, these NBFCs have been reclassified into three categories:-  § Asset Finance Company (AFC)  § Investment Company (IC) and  § Loan Company (LC). Under this classification, AFC is defined as a financial institution whose principal business is that of financing the physical assets which support various productive/economic activities in the country. GOVERNMENT ROLE IN PROMOTING INFRASTRUCTURE FINANCE: Infrastructure is expected to be a key area of growth in a developing country like India. The Government has been activelypromoting the countrys infrastructure through a sustained focus on area like power, roads, ports and urbantransportation. Private sector participation through public private partnerships as well as privately funded projects isbeing encouraged in order to enable quick scale up of governments efforts and better management. As per PlanningCommissions estimates the investments in infrastructure during the Tenth Plan aggregated to Rs. 4, 52,900 crores whichis expected to increase to Rs. 11, 25,000 crores in the Eleventh Plan. The chart below describes the anticipated andestimated investments under the two plans respectively. PROJECTED INVESTMENT IN INFRASTRUCTURE in the 11th FIVE YEAR PLAN: COMPANY PROFILE: A started operation in 1989, Srei is a leading infrastructure focused private sector Non-Banking Financial Company (NBFC) in India. It is currently the only institution in India offering holistic infrastructure solutions financing, advisory services development. Milestones Achieved: 1989 Started operations and identified the infrastructure sector as its core Business area. 1992 Initial Public Offering with listing on all major stock exchanges. 1997 IFC, FMO DEG invested as strategic equity partners Promoters stake. 2002 Conceived Quippo, Indias first equipment bank. 2004 All India presence, currently 63 offices. 2005 First Indian NBFC to be listed on the London Stock Exchange. 2006 Geographical expansion into Russia; equity partners EBRD, DEG, FMO. 2007 Joint venture with BNP Paribas Lease Group, 100% subsidiary of BNP Paribas. 2008 Holistic Infrastructure Institution, financing, advisory services Development. Services: Ø Infrastructure Equipment Financing Leasing Ø Infrastructure Project: Financing, Advisory services and development Ø Insurance Broking Ø Venture Capital Ø Capital market Ø Sahaj e-village Ø Quippo Equipment Bank GROUP STRUCTURE: About Srei Equipment Finance Private Limited: Srei BNP Paribas (Registered name: Srei Equipment Finance Private Limited) is a 50:50 joint-venture between Srei Infrastructure Finance Limited, Indias leading and only private sector Non-Banking Financial Institution in the infrastructure space and BNP Paribas Leasing Solutions(BPLS), a wholly owned subsidiary of BNP Paribas, France. Srei BNP Paribas started its operation from January 01, 2008 with the infrastructure and construction equipment financing and insurance businesses and has further plans to expand its business to new verticals. Industry leader in the infrastructure and construction equipment financing, Srei BNP Paribas is aptly benefitting from the Indian expertise and insight of Srei and global leasing insight in diverse product classes of BNP Paribas. Srei BNP Paribas has deep insight on diverse equipment used in the infrastructure and construction sector and acts a valuable advisor to its customers. It has tied up with all the leading equipment manufacturers. Over the years, Srei BNP Paribas has been innovating new marketing programs bringing together the manufacturers and customers on a single platform, creating immense value and sharing this value with all the stake holders. Paison Ki Nilami and Srei BNP Paribas Partnership Week are two such prominent programs. Srei BNP Paribas has already started financing Technology Solutions (financing of IT equipment, software and services) and has effectively partnered with leading global IT vendors for financing their customers. It has also forayed into financing of new Equipment classes: Agriculture Equipment, Healthcare Equipment, Office Automation, and Equipment in Education sector etc. With its foray into new equipment classes, Srei BNP Paribas has become probably the one and only Company to offer complete Equipment Solutions. With a customer base of over 20,000, Srei BNP Paribas has grown from strength to strength enjoying a strong national presence with a network of 86 offices across India. VISION: To be the most inspiring global holistic infrastructure institution. MISSION: To be an Indian multinational company providing innovative integrated infrastructure solutions. CORE VALUES: Customer Partnership: At Srei, customer satisfaction is the benchmark for success. Srei delights its customers through a comprehensive range of financial services that are personalized, fast, reliable, convenient, quality driven, and yet cost effective. Integrity: Business integrity is a way of life at Srei. The company strongly stands by integrity in all its dealings and ensures strict adherence to the highest standards of business ethics. Passion for Excellence: Sreis passion for excellence is instrumental in positioning the company as the most innovative infrastructure solution provider in India. Respect for People: Srei acknowledges the fact that its people are its most valuable assets and accordingly provides the best possible work environment and treats them like family members. The company rewards excellence and initiative. Stakeholder Value enhancement: Srei is committed to earning the trust and confidence of all its stake holders. Its growth focus, the ability to constantly enlarge its product basket while controlling risk and reducing the cost of its services have resulted in enhanced value for its stakeholders. Professional Entrepreneurship: Sreis in depth knowledge of infrastructure financing business in India, coupled with its spirit of entrepreneurship, and helps the company to overcome the obstacles and complexities with professional expertise. MANUFACTURING PARTNERS: MARKET SHARE OF SREI BNP PARIBAS: Source: Company. MAJOR COMPETITORS: 1. MAGMA FINCORP LIMITED: Magma Fincorp Ltd (Magma) is a Kolkata based asset financing company. The company is engaged in financingof commercial vehicles, cars, construction equipment, tractors and utility vehicles.The companys target customers are mostly first time users and small entrepreneurs. The Company provides construction equipment finance across retail and strategic customer segments. In the retail segment, it focuses on first-time buyers and small customers. The Company has established contracts with large value vendors addressing multiple projects. It finances a range of construction equipment like excavators, backhoe loaders, compactors, compressors, cranes, tippers and drillers of prominent brands like JCB, Telcon, LT, Ingersoll-Rand, Caterpillar, ECEL, Escorts and Atlas Copco etc. Magma provides unsecured EMI-based loans to SMEs for working capital, business expansion and business maintenance. It has developed proprietary financial analysis tools to make safe credit assessments. The share of this segment is increasing in the total disbursements (5% in FY10). Going forward the company intends to maintain the proportion of these loans at 5% and would adopt a cautious approach while lending. In Commercial Vehicle Finance Segment, Magma provides loans on used commercial vehicles and construction equipment. Magma refinanced popular models of Tata Motors and Ashok Leyland. Magma Fincorp predominantly was engaged in financing of construction equipment and passenger cars, utility vehicles and commercial vehicles (CVs). These business verticals accounted for 90% of the companys disbursements in FY10. Recently the company has ventured into high-yield segments, viz; financing of used CVs, tractors and SME loans. Most of the loans disbursed are retail loans and have small ticket size except in the construction equipment segment. MFL has a concentrated focus on the under tapped semi urban and rural market to finance first time users, Small Road Transport operators, small contractors etc. 2. TATA CAPITAL: The Company was incorporated on March 8, 1991 and actively commenced business operations since September, 2007. The Company is a wholly owned subsidiary of Tata Sons Limited, the apex holding company of the Tatas. Their fund based businesses comprise Corporate Finance, Infrastructure Finance and Retail Finance fee based businesses comprise investment banking, broking and distribution, wealth management, private equity, treasury advisory, services relating to travel, forex and infrastructure. With the wide array of products and customized service, the commercial finance business, helps small, medium and large corporates grow their business. The companys team of handpicked professionals offers in-depth expertise to help customers keep pace with the changing marketplace and offer them appropriate solutions to meet their ever-growing financial needs. The companys management structure enables them to leverage relationships across lines of our businesses. Their product knowledge and multi-channel delivery model enhances the ability to cross-sell the companys services. TATA Capital is in the advanced stages of setting up institutional broking, insurance broking and rural finance businesses which would supplement the aforementioned lines of business. TATA Capital believes that the following are the key strengths: Unified financial services platform; Diversified and balanced mix of businesses; Experienced management team; Innovative solutions model; Respected brand; Controls, processes and risk management systems; and Access to capital. 3. LT FINANCE LIMITED: LT Finance Limited (LTF) is a subsidiary of Larsen and Toubro. It was incorporated as a Non-Banking Finance Company in November 1994. Through LTF, LT aims at making a strong foray in the ever-expanding financial services sector.LT Finance understands the intricacies of your business. We at LT Finance offer financing for your Construction Equipment in the form of term loans, working capital loan and operating lease facilities. In 1996, LT Finance had made a foray in financing of commercial vehicles. LT Finance offers financing Commercial Vehicles of all makes and sizes. We also undertake funding of the body for the Commercial Vehicles. LT Finance has an extensive network from where you can easily avail financing for your Commercial Vehicle. Advantages of partnering with LT Finance Presence in more than 70 locations Flexible repayment option Competitive interest rates Finance for used vehicles available Faster loan approval and disbursement A brief Comparison between SREI EQUIPMENT FINSNCE its Competitors: REASON FOR THE JOINT VENTURE WITH BNP PARIBAS LEGAL SOLUTIONS: Mr.HemantKanoria, Vice Chairman and Managing Director of SREI, termed this joint venture as a very significant step in the Indian Financial Services Market. â€Å"We are the largest player in the financing of infrastructure equipment and collaborating with BPLG will help in increasing our market share further and also expanding the product line into financing of agriculture, information technology, medical and other equipment.† Speaking at the occasion Mr. Bertrand Gousset, member of the Executive Committee of BPLG, in charge of Corporate Development, said, â€Å"We are delighted to be associated with the SREI group, who are the leaders in the financing of infrastructure equipment and provide a wide range of equipment finance products to large strategic clients as well as to retail customers, with pan-India coverage. This joint venture is very significant for us and we look forward to a long and prosperous association with them.† Mr. Sunil Kanoria said, â€Å"This joint venture signifies the coming together of two companies with the same shared values. Both SREI and BPLG are convinced that they are well positioned to build on the already strong platform established by SREI and that this will enable in reduction in cost of funds resulting in higher profitability.† Mr.Amoudru, CEO of BNP Paribas India and Head of Territory, said The acquisition of a 50% stake in this joint-venture with SREI a highly recognised firm in equipment and infrastructure financing further evidences the willingness of the BNP Paribas Group to expand its presence in India in activities where it has a strong expertise. It represents another substantial capital commitment from the Group- the largest so far- in this country and testifies our confidence in the long term prospects of the Indian economy. SWOT ANALYSIS: LITERATURE REVIEW: FLOW OF THE PROCESS AT SREI: CREDIT APPRAISAL: Credit Appraisal is a process to ascertain the risks associated with the extension of the credit facility. It is generally carried by the financial institutions which are involved in providing financial funding to its customers.These financial institutions appraise the technical feasibility, economic viability and bankability including creditworthiness of the prospective borrower. Credit appraisal starts from the time a prospective borrower walks into the branch and culminates in credit delivery and monitoring with the objective of ensuring and maintaining the quality of lending and managing credit risk within acceptable limits. Credit appraisal involves analysis of liquidity position/ financial soundness of the company. Although, the analysis also covers understanding growth trends in revenues and earnings, and profit margins, more emphasis is required to be placed on liquidity-both long term and short term. There are basically two types of proposals that are received by the companies for funds. The first types of proposals are financing against new and first hand assets to be purchased (EQUIK) and the other proposals are financing against pre owned assets (REQUIK). Asset finance is generally divided into three departments depending upon the risk exposure*: Retail: Aggregate risk exposure not exceeding Rs.1 crore. SME (Small Medium Enterprises): Aggregate risk exposure between Rs.1 5 crores. Strategic: Aggregate exposure more than Rs.5 crores. *NOTE: Risk exposure to a client is determined by the summation of Net Finance Amount for the approval(s) being considered, together with all existing exposures to the client all related concerns in aggregate and residual Net Finance Amounts under all previous valid approvals for the Client pending part or full disbursement. SOME IMPORTANT TERMINOLOGIES: ASSET FINANCE: Asset Finance category includes secured business loan in which the borrower pledges as collateral an asset used in the conduct of its business. Asset finance also includes business in which a client takes an asset on lease for use in the conduct of his business for a defined period with or without right of onward sub lease the asset. ASSET COST: In case of Equik, the invoice values of the Asset including all duties and taxes which are not refundable or adjustable under drawback or otherwise any scheme. Spares, consumables, accessories auxiliaries, consultancy fees, installation and erection charges, etc. shall not be considered as part of asset cost. In case of Requik, Asset cost will be determined by the lowest of: Present Intrinsic Value of Asset as determined through a process by an expert approved by SREI. Actual purchase price to be paid by the consumer Current Insured Declared Value. MARGIN: Margin means the clients contribution on the Asset Cost payable upfront or any amount deposited with us as Security Deposit in relation to the transaction before the disbursement or release of facility. AIRR: Internal Rate of Return (IRR) by definition is the rate of return at which the Net Present Value of the stream of payments (repayment of installments and interest by the customer vis-à  -vis the actual disbursement made by the company) become equal to zero. FIRR: Financial IRR (FIRR) shall mean the transaction IRR without factoring any benefit available to Srei BNPP in terms of normal MOU entered into by srei BNPP with concerned manufacturer. Management fees/ RTE/ Commitment Charges collected upfront, an extra credit period, subvention or other cash incentives extracted from the manufacturer over and above those available workings. YIELD: Yield means the rate of return to Srei-BNPP from the transaction, factoring all the benefits available to Srei-BNPP under normal MOU and otherwise from the manufacturers/vendors. ETR (Excellent Track Record): ETR means peak delay of not more than 30 days and average delay of not more than 15 days for payment of dues in all existing and past accounts of the proposed customer. GTR (Good track Record): GTR means peak delay of not more than 45 days and average delay of not more than 30 days for payment of dues in all existing and past accounts of the proposed customer. PTR (Poor track Record): PTR means peak delay more than 45 days and average delay of more than 30 days for payment of dues in all existing and past accounts of the proposed customer. ANALYSIS OF CREDIT APPRAISAL MEMORANDUM: Credit risk of each individual transaction is studied and managed from the five different perspectives: Customer credit worthiness Asset quality Asset deployment Collateral security Facility type Background of the proponent/ management: The identification of the borrower is done properly through scrutiny of his antecedents, experience, competence, integrity, initiative etc. This may be done by obtaining status reports from previous bankers. In case of corporate, the management structure, the background of the top management needs to be scrutinized. KYC guidelines as framed by RBI are adopted by the company. Commercial Appraisal: The nature of the product, demand for the same, the existing and perceived competition in the segment, ability of the proponents to withstand the same, government policies governing the industry etc. need to be taken into consideration. Technical Appraisal: Technical appraisal of the project needs to be carried out for industrial activity proposals beyond the cut off limits prescribed from time to time. Such appraisal may be carried out in house by technical officers. Financial Appraisal: Apart from ascertaining the need based character of the limits requested for, the financial health of the proponents, ability to absorb unanticipated financial costs need to be looked into which would include scrutiny of the cost of the project, means of financing, financial projections etc. important performance indicators like profitability ratios, debt equity ratio, operating profit margin etc. need to be within acceptable parameters for that industries/ activities. INTRODUCTION TO RISK: The interpretation of the word risk will determine the approach to risk management. The word risk is interpreted in three distinct senses namely risk as hazard, risk as opportunity and risk as uncertainty. Risk as hazard is the most commonly used meaning of risk and it means likely financial losses arising from negative events such as control failures, bad publicity and loss of reputation. Risk management in this context would mean eliminating possibilities of losses from such negative events by putting in place adequate control systems. Risk as an opportunity means, taking risks and earning adequate returns on them. This implies the trade-off between risk and return. Here risk management, becomes risk optimization meaning maximizing the upside potential and minimizing the downside. Here capacity and ability to manage risk is used to increase shareholders value and achieve a competitive advantage. Risk, as uncertainty is basically a statistical concept, which assumes a normal distribution for future outcomes. Here risk management means narrowing the difference between the expected outcomes and actual results. Banks and other similar financial institutions need to manage the risk inherent in the entire portfolio as well as the risk in individual credits or transactions. The effective management of risk is a critical component of a comprehensive approach to risk management and essential to the long-term success of any banking organization. In simple words, risk is the possibility of losses associated with decrease in the credit quality of borrowers. In a financial institution, loss may stem from default due to inability or unwillingness of a customer to meet his commitments in relation to lending, trading, settlement and other financial transactions. A default reduces the present value of the loan and consequently the value of the banks business. Thus, it is imperative that these institutions have a robust risk management. MODEL BUILDING: Need for Study: A Risk Assessment Model (RAM) is necessary to avoid the limitations associated with a simplistic and broad classification of applicants into a good or bad category The comapny currently uses a judgemental risk assessing model. Grading System for Standardization of Risk: The grades (symbols, numbers, alphabets, and descriptive terms) used in the internal credit-risk grading system represent, without any ambiguity, the default risks associated with an exposure. The grading system will enable comparisons of risks for purposes of analysis and top management decision-making. The grading system is therefore, be flexible and should accommodate the refinement

How to Play Hockey Essay -- essays papers

How to Play Hockey Ice Hockey is believed to have begun during the Middle Ages, when northern Europeans played games on makeshift ice skates. The French explorers who watched the Indians, who would also play this stick and ball game, called it "hoquet". Before beginning to play hockey you must know the rules of the game. A hockey team consists of a goal tender, two defenders, and three forwards ( a center and two wings ). Hockey is played in three twenty-minute periods. The team that hits the most pucks into the opponent's goal wins. The game is played in an ice-covered rink shaped like a rectangle. Wooden walls about three or four feet high surround the rink. At each end is a cage, or goal which the players try to hit the puck into. They hit the pucks with wooden or graphite sticks with curved ends. The puck is a disc-like object made of black rubber. In order to begin the game each player must be appropriately dressed. A hockey uniform consists of a series of pads and a helmet to protect you from the lighting fast pucks, the rock hard ice floor and of Course the aggressive players. The helmet is the most important thing to wear. It protects your head in case of a direct impact like airbags protect your head from hitting the dash in a car. There are many brands and sizes to choose from. The most reliable and well known is a company called "Bauer." The size usually depends on the shape and measurements of your head. The next impo...

Shakespeares Macbeth as Tragic Hero :: GCSE English Literature Coursework

Macbeth as Tragic Hero The character of Macbeth is a classic example of a Shakespearean tragic hero.   There are many factors which contribute to the degeneration of Macbeth of which three will be discussed.   The three points which contribute greatly to Macbeth's degeneration are the prophecy which was told to him by the witches, how Lady Macbeth influenced and manipulated Macbeth's judgment, and finally Macbeth's long time ambition which drove his desire to be king.   Macbeth's growing character degenerates from a noble man to violent individual.   Ã‚  Ã‚  Ã‚   The prophecies which were told by the witches were one of the factors which contributed to the degeneration of his character.   If it had not been for the witches telling him that he was to be Thane of Cawdor, Thane of Glamis, and King of Scotland, Macbeth would still be his ordinary self.   As a result of the prophecies, this aroused Macbeth's curiosity of how he could be King of Scotland.   As the play progresses, Macbeth slowly relies on the witches prophecies.   Shakespeare uses the witches as a remedy for Macbeth's curiosity which corrupts his character.   Ã‚  Ã‚  Ã‚   The influence of Macbeth's wife, Lady Macbeth also contributed to his degeneration of character.   Lady Macbeth's character in the beginning reveals that she is a lovable person. When Lady Macbeth was ready to kill King Duncan herself, it showed that Lady Macbeth could not murder King Duncan because he reminded her of her father.   This proves that Lady Macbeth has a heart deep inside her.   Lady Macbeth plays an important role in this play because she provided a scheme which caused Macbeth to assassinate King Duncan.   After Macbeth had killed King Duncan, he later regrets on his wrong doing.   At the point of this play the audience can note the change in Macbeth's character. Macbeth's first murder was a trying experience for him, however after the first murder, killing seemed to be the only solution to maintain his reign of the people of Scotland. Therefore, it was Lady Macbeth who introduced the concept of murder to Macbeth.   Ã‚  Ã‚  Ã‚   Macbeth's ambition also influenced his declining character. However, Macbeth's ambition had not been strong enough to carry the motive to kill King Duncan.   Lady Macbeth's influence also comes in to play because if not for Lady Macbeth, his ambition would not have been intensified enough to drive him to obtain and maintain his title of King of Scotland no matter what it took, even if it meant murdering.

Ronald Takakis Hiroshima :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Although WW II ended over 50 years ago there is still much discussion as to the events which ended the War in the Pacific. The primary event which historians attribute to this end are the use of atomic bombs on the cities of Hiroshima and Nagasaki. Although the bombing of these cities did force the Japanese to surrender, many people today ask â€Å"Was the use of the atomic bomb necessary to end the war?† and more importantly â€Å"Why was the decision to use the bomb made?† Ronald Takaki examines these questions in his book Hiroshima. The official reason given for dropping the bomb was to bring a quick end to tht war and save American lives. However, Takaki presents many different explanations as to why the decision to use the bomb was made. He disagrees with the popular belief that the decision to use the bomb was made solely to quickly end the war in the Pacific and to save American lives. Takaki presents theories such as international concerns, American sentiment, and racism in an attempt to more fully explain why this decision was made.   Ã‚  Ã‚  Ã‚  Ã‚   The United States entered WW II immediately following the Japanese attack on Pearl Harbor on December 7, 1941. The U.S. entry was a major turning point in the war because it brought the strongest industrial strength to the Allied side. The Americans helped the Allies to win the war in Europe with the surrender of Germany on May 7, 1945. However, the war in the Pacific continued. The war with Japan at this point consisted primarily of strategic bombings. America had recently completed an atomic bomb and was considering using this weapon of mass destruction for the first time. The goal was to force the â€Å"unconditional surrender† of the Japanese. Roosevelt had used the term â€Å"unconditional surrender† in a press conference in 1943 and it had since become a central war aim. Truman and his staff (still feeling bound by FDR’s words) demanded unconditional surrender from the Japanese. Consequently on July 26, 1945 Truman issued an ultimatum to Japan. This ultimat um stated that Japan must accept â€Å"unconditional surrender† or suffer â€Å"utter devastation of the Japanese Homeland†. This surrender included abdication of the throne by their emperor. Japan was not willing to surrender their dynasty and ignored the ultimatum. On August 6th and August 9th, atomic bombs were dropped on the cities of Hiroshima and Nagasaki respectively.

Assessment and Learners

4 Understand how to involve learners and others in assessment 4. 1 Explain the importance of involving the learner and others in the assessment process Assessment is all about making judgements. A major argument for involving students in self and peer-assessment is that it helps them to develop the ability to make judgements, in particular about themselves and their work. This is an important life skill as well as an academic one.If an assessor wants to observe a specific piece of evidence but is unable to because maybe it hasn’t occurred in any methods of assessment; this is where it’s important for others to get involved for example the managers or the colleagues. The workers can motivate the learner when the assessor is not around. The workers can act as an expert witness, so when the assessor goes to visit the candidate he/she could provide the assessor with a witness testimony, and this will be put as evidence in the portfolio 4. Summarise types of information that should be made available to learners and others involved in the assessment process Students should be made aware of the criteria in which they will be assessed from the start of the course as well as the forms of assessments that will be used during the process and the length of time it will take. The learners should be given information on what the outcome will be for the different assessments undertaken as well as what qualification is expected on completion of the course. 4. Explain how peer and self-assessment can be used effectively to promote involvement and personal responsibility in the assessment of learning There are many benefits of peer assessment. Students assessing each other’s learning can help the learners to feel supported by their peers. There is also the benefit that the learners may be able to relate more easily with their peers than with a tutor. Peer assessment assists the learners gain confidence and social skills and shares the roles of assessing and being assessed equally between the learners.One suggested peer assessment activity is to have students work in groups, discussing each other’s' in-class assignments and ways to improve, develop and adapt for improvements providing their peers with peer led feedback and assessment. Self-assessment is a natural progression and grows out of peer assessment. It allows the students to examine their own work and discover strengths and weaknesses for themselves. This can be carried out through reflective practice through a diary of learning or learning log that allows the student to see progression and reflect upon the journey.It's important to incorporate some aspect of self-assessment every day, if possible, in order for students to take responsibility and interest in their abilities. Another way of using self-assessment is by asking the students to give themselves a grade on the work that they have completed before handing in the work to the marking criteria set, or for student l ooks at their assignment and marks green for questions that they feels confident about, yellow for questions that they are unsure of and red for questions that will require help. 4. Explain how assessment arrangements can be adapted to meet the needs of individual learners Assessment arrangements can be adapted by allowing the learners to have an element of choice on how the criterion is assessed. This will allow the learners to feel included and means that the tutor is not offering an alternative or necessarily forcing the learner to disclose their lack of understanding or forcing adjustment. An example would be giving all learners the choice of having a Unit assessed either by portfolio or by written examination or by observation.In short, as long as the assessment criteria are being assessed to the same standard, the assessment method can be flexible and should meet the needs of the learners 5 Understand how to make assessment decisions 5. 1 Explain how to judge whether evidence is: sufficient, authentic and current All assessments must be valid, reliable, practicable, and equitable and assessors must apply the standards of assessment uniformly and consistently. . Ensuring assessments are capable of generating sufficient evidence for learners’ to demonstrate that they have met the assessment criteria.Having this process gives the learners clear instructions to the assessments that will be used during the course as well as clear and precise guidelines for completion. It gives both the tutors and the learners the recommended guidelines on how work for the course should be presented and what evidence is required for verification, this in turn allows the tutor and the organisation to map the developments of the learner through the assessment criteria being met.This ensures that all courses awarded are valid and that the course has worked to the set Quality Assurance of the awarding body and organisation; thus being assessed accurately, consistently and f airly to set standards. Sufficient evidence must cover all aspects of the assessment criteria for each unit the learner is seeking to achieve and collect enough evidence to demonstrate knowledge and competence. The learner must be able to show that the work produced is authentic and able to explain and substantiate the evidence the learner has put forward.It is important, therefore, to ensure that any work that the learner submits is only evidence relating to your own performance. Current’ means evidence relating to skills, attitudes and knowledge you can currently demonstrate in relation to the criterion and unit being taught. 5. 2 Explain how to ensure that assessment decisions are: made against specified criteria, valid, reliable and fair The assessor should follow as far as possible the criteria set down in the relevant unit and qualification.All qualifications go through a standardisation process that enables each assessor to consistently make valid decisions; that all a ssessors make the same decision on the same evidence base and all candidates are assessed fairly. All corresponding evidence from the learner should be reliable in that they have concrete knowledge and skill to back up their evidence. The evidence should be fair in that any leaner will have the same opportunity to complete the assignment.

External/Internal Factors Paper Essay

External/Internal Factors Internal and external factors can affect the four functions of management within a business. Globalization, technology, innovation, diversity, and ethics are key factors that a company must consider in order to be successful and stay competitive with other companies in the same field. This paper will identify the role UPS is taking to be a successful company. UPS is a global company with one of the most widely recognized brands around the world. UPS is also the world’s largest package delivery company and leading global provider of specialized transportation and logistics services (UPS, 2008). The flow of goods, funds and information is managed on a daily basis in more than 200 countries and territories worldwide. Planning – Internal Internal factors affect planning for UPS. Planning is based on knowledge of the company’s finances, type of services provided, quality control, employee motivation and morale. In order for UPS for continue to be a profitable company, management must consider all available options while still delivering quality service and maintaining the happiness of its employees. Finances will depend on the amount of business UPS receives. The demand for services will determine how many employees UPS will hire and train to keep the production line moving to avoid delays in the delivery of packages. Planning – External External factors can also play an important role in planning. Several factors such as weather, gas prices and holidays can affect planning. If possible management must plan around hurricanes, floods, snowstorms and other natural disasters. When gas prices rise, shipping cost increase, which can cause profits to decrease. Holiday’s will also increase the demand for  delivery services and must be planned accordingly. Organizing – Internal UPS is a well-organized company. However, several factors exist which can affect how UPS does business in the industry. Organization is important and plays a major role for UPS and its employees. UPS employees play an essential role in developing an approving perception by its customers. In order to stay organizes; UPS daily operations depend on employees in varies departments. For the internal factors the first line of communication will be the employee which are assigned to take and distribute the orders, then passes the information to the person which loads the delivery trucks. In the distribution center the employees loading the truck and the driver works together to ensure the customers receives their packages in a timely manner. Employees working in the distribution center must make sure the packages are separated and loaded on the trucks correctly. Once the trucks have been loaded the driver is responsible for making the delivers on schedule. Through planning, organizing and effective teamwork the employees are able to keep the customers satisfied. Organizing – External External factors affect how UPS does business. Several factors such as the increase in gas prices, mechanical problems with delivery trucks and or regulatory laws implemented by the US Department of Transportation. According to UPS, the Department of Transportation has modified the shipping paper requirements to include the number and type of packages (UPS, 2008). All hazardous material items shipped must follow the new regulations (UPS, 2008). Due to the new regulations production and delivery time maybe affected. With the increase in gas prices a surcharge may be added to all shipments. Addition steps will need to be taken to make sure delivery trucks maintenance is completed on a routine basis to ensure trucks do not break down because it will cause a delay in the delivering of packages. Company performance is thus affected by such external factors. Leading – Internal Management effectiveness, an internal factor, also affects company performance. Highly effective managers must be leaders of the people around them. A good leader can motivate employees to function and work as a collective unit. At UPS, every employee is assigned a specific duty and  responsibility. To keep the employees aware of the status of the department weekly or monthly meetings are held to facilitate employee/management communications and discuss any problems that may arise. Occasionally, employees will experience problems and report to management immediately for resolution. The role of UPS management is to encourage the employee to perform at a high level of competence. Management must seek to motivate their employees and stay in contact with them in order to meet the goals of the company. Leading – External Based on the information from UPS website, external factors is address in the UPS Code of Business Conduct (UPS, 2008). According to the UPS Cod of Business Conduct, UPS is committed to conducting its business compliance with all applicable laws and regulation in accordance with the highest ethical principles. In addition all employees must comply and abide by the same rules to maintain the UPS status for honesty, integrity and high quality service. The external factors also include reporting employees misconduct by customers, the time frame of delivering packages and customer complaints due to late deliveries or damaged goods. Globalization According to The State of Business Magazine UPS Corporate Globalization, globalization at UPS began in the 1970s outside of the U.S (Robinson). Globalization was implemented in West Germany and Canada when UPS built â€Å"brown operations† that resembled the U.S. domestic model. With the potential of a single European economy on the horizon, in the mid-1980’s UPS recognized a need to expand their operations and expanded their international presence beyond West Germany and Canada (Robinson). UPS customers were looking for an integrated carrier that would handle all the transport requirements, door-to-door in the U.S. and throughout the world. Through an aggressive strategy of acquisitions and service partners agreements UPS was able to a worldwide distribution network. The worldwide distribution network included the first pan-European integrated air and ground distribution network that was similar to the UPS domestic U.S. operation UPS has in place. Today, the UPS service area includes morn than 200 countries and territories as well as every address in and around the United States. Technology In the event of major problems, UPS has an IT professional technology solution department that can be trusted (UPS, 2008). UPS technology system is easy and enables customer to track, rate and ship their packages. The IT department makes sure the system has up-to-date software that enables customers to process their shipments without any delays. By staying organized, UPS customers can be assured their packages will be delivered on time. With the tracking system UPS has in place customers can track the status of packages on the UPS website with a tracking number. UPS delivers internationally and use advanced technology which enables UPS to track and process shipments. Advances in today’s technology allow UPS to reassure its customer important documents are safe. UPS also offers a technology that enables users to have a shortcut on his or her laptop for the purpose of checking the status of shipping and delivery of packages. Innovation In 1991-1999 Consistent Innovation stated in 1993 UPS delivered 11.5 million packages and documents daily for more than one million regular customers (pressroom). Due to the massive volume of clients UPS decided to implement a new system device that could maintain efficiency, keep prices competitive and provide additional customer service. The handheld Delivery Information Acquisition Device (DIAD) was implemented to capture and upload delivery information to the UPS network. The device include a digital image of a recipient’s signature, allowing the driver quicker confirmation of final delivery. The device also allows the driver to stay in contact with the distribution center to provide current information on changes in pick-up schedules and other important messages that need to be relayed. Diversity UPS supports diversity by maintaining respect throughout the company from both employee and customers. This visibly helps direct the way UPS does business with its customers and suppliers and strengthens the bond with a multi-cultural community of friends and neighbors for fast and continual service. Diversity affects every aspect of management including planning, organizing, leading and controlling. In planning UPS must take into account the company is a international company. UPS must consider the carrying customs of its global customers. In order to be effective UPS must train its  employees in both America and abroad in cultural differences and tolerance through continual workshops, seminars or computer-based training. Manager’s delegations Organizing the company forces around the world can be difficult, but UPS must keep tables on all locations. Each location should have a headquarters base for each region and have headquarters report regional activities on a regular basis. Additional requirements are set forth in detain in various individual compliance programs developed by the appropriate departments based on specific expertise and training. UPS drivers have a regular routine for sorting our packages and identifying specific times of delivers. Should a delivery problem occur, the issue is addressed by delegating work to another employee to complete. By researching and understanding UPS policy and procedures the company is doing a good job. As long as the UPS continue to satisfy its customers the company will continue to grow and succeed. References Ups.com (2008). Important Hazardous Materials Regulatory Changes. Retrieved April 15, 2009 from http://www.ups.com/content/us/en/about/news/service_updates/regulatory_update.html Ups.com (2008) IT Professional. Retrieved April 15, 2009 from http://www.ups.com/content/us/en/bussol/itprof/index.html Ups.com (2008). Diversity. Retrieved April 15, 2009 from http:///www.ups.com/content/us/en/bussol/ititprof/index.html Pressroom.com (1991-1999). Consistent Innovation. Retrieved April 16, 2009 from http;//www.pressroom.ups.com/about/history/consistent_container/0,27530 0.html Robinson.edu. The State of Business Magazine UPS Corporate Globalization. Retrieved April 16, 2009 from http://www.robinson.gsu.edu/magazine/forporate.html