Leasing,Venture Capital & Export

Financing
AFTERSCHO☺OL
– DEVELOPING CHANGE MAKERS
CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME –
World’s Most Comprehensive programmes in social
entrepreneurship & spiritual entrepreneurship
OPEN FOR ALL FREE FOR ALL

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 Leasing,Venture Capital & Export
Financing
Dr. T.K. Jain.
AFTERSCHO☺OL
Centre for social entrepreneurship
Bikaner M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk, www.afterschoool.tk
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 What are the various sources of
Long term finance?
• Equity
• Preference
• Retained earnings
• Bonds (it is just like debenture, it carried interest).
• Loans
• Venture capital (when you start a high-tech
business, there are people, who give you money as
equity/ seed capital – this is called venture capital).
• Foreign currency loans, Euro issues, ADRs, GDRs,
• Debentures.

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 What are the various sources of
short term finance?
• CC account (cash credit account)
• Packing credit & letter of credit
• Bill discounting
• Forfaiting & Factoring
• Trade creditors
• Accrued expenses
• Deferred income
• Fixed deposits
• Working capital loans.
• Inter-corporate borrowings
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 What are the various sources of
medium term finance?
• Debentures
• Bonds
• Securitisation (here we pool together
some assets and issue securities on the
basis of those assets)
• Deposits

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 Pre-shipment finance
• Obtaining packing credit before exports is
called pre-shipment finance. There are
many types of pre-shipment finances:
• Clean packing credit
• Packing credit against pledge /
hypothecation
• ECGC (export credit guarantee
corporation)
• Forward exchange contract
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 CD (certificate of deposit)
• It is an instrument sold by bank. It is
similar to fixed deposit. The bank issues
CD and gets money. CD can be sold in
secondary market also. The bank can sell
the securities in the secondary market any
time. It is generally in very large amount. It
is a source of short term finance for Banks
/ very reputed corporate houses. It’s credit
rating is given by credit rating agencies.
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 Seed Capital
• Seed capital means the capital that is
given to start a business (just like a seed).
It is given in the beginning = so that the
business may start as a small enterprise
and grow larger and larger day by day.

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IDBI issued DDB (deep discounting
bond) in 1992 (face value Rs. 1
Lakh) issue price Rs. 2700. What
is the yield (interest rate) to the
customer, if its life is 25 years?
• 15.54% annual compounding interest rate.

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 F.R.N.
• Floating rate note (these are issued for 7
year maturity). They provide foreign
exchange finance.

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 Fully hedged funds?
• These are bonds that do not have
currency fluctuation risk as the entire
payments are hedged by forwards (for
both principal and interest). Thus there is
no exchange risk.

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 ADR
• American depository receipt
• These are issued in American market as per
SEC (securities exchange commission) USA
requirements
• The requirements include that the company
should disclose accounts as per GAAP.
ADRs are traded in NYSE (new york stock
exchange) through depository trust
company.
• Infosys, ICICI etc. have issued ADRs.

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 GDRs
• Global Depository Receipts – they are
securities issued against shares. They are
also traded in stock exchanges of other
countries. Companies have raised GDRs
from European countries.

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 Commercial paper
• It is also a short term financing instrument.
It is also in huge amount.

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 Zero coupon bonds?
• They are just similar to deep discount
bonds.

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 Ploughing back of profit?
• It is like retained earning. When you plough
back profit, you are putting profits back in
the business and thereby you are able to
earn even more profits. For example, if you
earn Rs. 30 on 100, instead of giving
dividends, keep it. Now you have 130, next
time you will earn 39 Rupees. You can further
retain it and next year you will have 50
rupees – and so on. Your assets will also
increase. It is cheaper than raising fresh
capital.
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 Lease financing ?
• Kapsa wants to start a travel agency. He
doesn’t have either money or taxis. He
takes taxis on lease (he will pay lease
rentals). Now he is comfortable – as he
earns, he pays lease rentals and retains
some money for the growth of business.

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 Capital budgeting
• The decision to analyse a capital
investment project is called capital
budgeting. In capital budgeting, we
analyse a project on the merit of capital
budgeting. We look at returns and
evaluate the returns on the criteria of our
minimum expected return on investments.

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 Solve it
• Kap Ltd is evaluating the purchase of a
new project with a depreciable base of Rs.
1,00,000; expected economic life of 4
years and change in earnings before taxes
and depreciation of Rs. 45,000 in year 1,
Rs. 30,000 in year 2, Rs. 25,000 in year 3
and Rs. 35,000 in year 4. Assume
straight-line depreciation and a 50% tax
rate. You are required to compute relevant
cash flows.
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 Solution
1 2 3 4
EBIT` 45000 30000 25000 35000
Depre. 25000 25000 25000 25000
EAT 10000 2500 O 5000
Add : 35000 27500 25000 30000
dep.
Total 117500
cash
inflow
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 ABOUT AFTERSCHO☺OL
Afterschoool conducts three year integrated PGPSE
(after class 12th along with IAS / CA / CS) and 18
month PGPSE (Post Graduate Programme in Social
Entrepreneurship) along with preparation for CS / CFP /
CFA /CMA / FRM. This course is also available online
also. It also conducts workshops on social
entrepreneurship in schools and colleges all over India –
start social entrepreneurship club in your institution
today with the help from afterschoool and help us in
developing society.

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 Why such a programme?
• To promote people to take up entrepreneurship
and help develop the society
• To enable people to take up franchising and
other such options to start a business / social
development project
• To enable people to take up social development
as their mission
• To enable people to promote spirituality and
positive thinking in the world

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 Who are our supporters?
• Afterschoolians, our past beneficiaries,
entrepreneurs and social entrepreneurs
are supporting us.
• You can also support us – not necessarily
by money – but by being promotor of our
concept and our ideas.

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 About AFTERSCHO☺OL PGPSE – the
best programme for developing great
entrepreneurs
• Most flexible, adaptive but rigorous programme
• Available in distance learning mode
• Case study focused- latest cases
• Industry oriented practical curriculum
• Designed to make you entrepreneurs – not just
an employee
• Option to take up part time job – so earn while
you learn
• The only absolutely free course on internet
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 Workshops from
AFTERSCHO☺OL
• IIF, Delhi
• CIPS, Jaipur
• ICSI Hyderabad Branch
• Gyan Vihar, Jaipur
• Apex Institute of Management, Jaipur
• Aravali Institute of Management, Jodhpur
• Xavier Institute of Management, Bhubaneshwar
• Pacific Institute, Udaipur
• Engineering College, Hyderabad

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 Flexible Specialisations:
• Spiritualising business and society
• Rural development and transformation
• HRD and Education, Social Development
• NGO and voluntary work
• Investment analysis,microfinance and inclusion
• Retail sector, BPO, KPO
• Accounting & Information system (with CA / CS /CMA)
• Hospital management and Health care
• Hospitality sector and culture and heritage
• Other sectors of high growth, high technology and social
relevance

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 Salient features:
• The only programme of its kind (in the whole world)
• No publicity and low profile course
• For those who want to achieve success in life – not just a
degree
• Flexible – you may stay for a month and continue the rest of
the education by distance mode. / you may attend weekend
classes
• Scholarships for those from poor economic background
• Latest and constantly changing curriculum – keeping pace
with the time
• Placement for those who are interested
• Admissions open throughout the year
• Latest and most advanced technologies, books and study
material

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 Components
• Pedagogy curriculum and approach based on IIM Ahmedabad and ISB
Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad)
• Meditation, spiritualisation, and self development
• EsGotitial softwares for business
• Business plan, Research projects
• Participation in conferences / seminars
• Workshops on leadership, team building etc.
• Written submissions of research projects/articles / papers
• Interview of entrepreneurs, writing biographies of entrepreneurs
• Editing of journals / newsletters
• Consultancy / research projects
• Assignments, communication skill workshops
• Participation in conferences and seminars
• Group discussions, mock interviews, self development diaryng
• Mind Power Training & writing workshop (by Dr. T.K.Jain)

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 Pedagogy
• Case analysis,
• Articles from Harvard Business Review
• Quiz, seminars, workshops, games,
• Visits to entrepreneurs and industrial visits
• PreGotitations, Latest audio-visuals
• Group discussions and group projects
• Periodic self assessment
• Mentoring and counselling
• Study exchange programme (with institutions out of
India)
• Rural development / Social welfare projects
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 Branches
• AFTERSCHO☺OL will shortly open its
branches in important cities in India
including Delhi, Kota, Mumbai, Gurgaon
and other important cities.
Afterschooolians will be responsible for
managing and developing these branches
– and for promoting social entrepreneurs.

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 Case Studies
• We want to write case studies on social
entrepreneurs, first generation
entrepreneurs, ethical entrepreneurs.
Please help us in this process. Help us to
be in touch with entrepreneurs, so that we
may develop entrepreneurs.

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Basic values at AFTERSCHO☺OL
• Share to learn more
• Interact to develop yourself
• Fear is your worst enemy
• Make mistakes to learn
• Study & discuss in a group
• Criticism is the healthy route to mutual support
and help
• Ask fundamental questions : why, when, how &
where?
• Embrace change – and compete with yourself
only
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 www.afterschoool.tk
social entrepreneurship for better
society

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