Category Archives: FINANCE

Going by experience and common sense, it seems that there cannot be any human activity that does not expose the people involved in that activity to some form of risk or the other. Whether it is the common activity of taking food and the possibility that bits of it may get lodged in the windpipe, or it relates to taking a vital investment decision, everywhere we find that risk is unavoidable. Therefore, we can say, “risk taking is a way of life”. It is said: “ a person who does not take risk in life, risks everything in life”.

Trade Finances and Foreign Direct Investment

Corporates are big private entities which generates large-scale employment, and help to induce the good amount of an economic boost to country. Corporates works with resources of the nation and empower with the good amount of social service and betterment of citizens.

In this article we will understand what are the various foreign funding options for corporates. At what time, corporates should go for this option. Is it at the start of business point or is it at the peak of business points or when there is loss and what point of time business should go for foreign funding.

First take the example of Jio which is one of the brightest spot in Indian corporate history. First it started a fourth generation of internet. It is pricing war and Jio won it full-heartedly. It is a wonderful story of complete development of how a corporate and its aggressive pricing policy helps to spread this corporate in its complete maximum.

After takeover of most of corporate entities and putting behind every top team to further backwards, it is now also making this pricing policy to work in its complete freedom. In its latest news in the April 2019, Jio is planning to take future upgrade through Japanese company.

In its state of absolute benefits company like Jio is now venturing into  the stage to make it more upgrade towards achieving the latest technological innovations to make it most of complete up gradation.

What it makes is that it is the futuristic policy that makes, companies to go for foreign funding to make it most of the wonderful journey as that will not only, make futuristic up gradation and make company future proof against cut throat competition.

Similarly, those companies do not see, their future and only wants to get profits through other corrupt practices then the future of these companies stays in the complete vacuum. That is why first every corporate should stay at the state of absolute self-sufficient and then move towards the state of complete up gradation so that after taking help of foreign funding still the control is with the native company.


At every point of time no companies should ever endeavour to manage their finances through foreign funding. First each and every companies must move for their betterment and the sources and ideas that comes infront to make the company most sociable and most prominent to make it the most profitable entities.

Only the need for up-gradation through looking out to seal for future upgrades must make the companies to go for foreign funding options to upgrade companies for betterment of its functions. It makes these future functions to its complete maximum, and that makes foreign funding to its absolute profitablility.

With due course of time any of companies or corporate should never ever engage themselves in to the state of absolute difficulties as absolute dependances on foreign funds should not be there at any point of time.

with due course of time most of we have seen an absolute development of ideas where one needs to be self-sufficient and later on should move towards the most of the times where there should not be need but the want to make better for your organisation in terms of technology and for betterment of futuristic happenings where makes the future of companies for betterment of corporate.

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Basel II Risk Management

Basel Accords are suggestions and rules and regulations with which banking industries should perform. Banking rules and regulations begin with Basel I, Basel II and now Basel III. During the year 2015 when this article wrote by me during that time Basel II was used by many banks and now slowly they are moving to the Basel III.

The Basel committee comprised of G-20 countries and other prominent countries of reserve banks heads or central banks’ head. The suggestions of this committee are for recommendation only but most of the member nations find it easy and good at administration to implement these policies.

These policies update itself through more and more Basel accords that are going to the stage of understanding present-day banking rules and regulations. Many organisations and nation tend to implement these suggestions or at times mould it with their national concern to make a better place for most the people who use banking standards.

It tires to advice banking industries to have minimum capital levels so that it can fight against any such emergencies of liquidity of funds. it removes competitive spirits among bank of different nations and thus create one of most standardise banking management.

In the Basel I accord the existing capitals such as shares, bank reserves comes into mind when calculating banking reserves. In Basel II hybrid capitals of banks such as time duration of loans, and other banking liquidity measurements come into force. In this Basel accord risk of capitals comes into consideration while calculating liquidity ration of banks.

It looks for credit rating and the higher it is safer for banks and the lower is vice versa. Banks are physical institution and in order to observe and manage absolute risks one need to understand the physical risks such as whether the building of bank is of its own or is at rented and then what are cash flow in terms of liquidity risks and what is the current liquidity value, and legal risks in terms of bad loans and how much time it is taking to solve this.

All of these comes under financial statements, calculate risk exposures and assessment of risks and management of it provide adequacy of judgement for calculation of capital adequacy that is maintained inside the banking system.

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Chit Fund Cheating Cases

Chit Funds are such financial organisation which collects money from people and lured them to provide them with higher terms and returns. In this way mostly illiterate people deposit money in order to have higher amount of return. What it utimately did is that these companies are not registered with Government of India but the poor and illiterate does not know this and in this way after accumulating all of these money these companies moved away from that location within darkness and downtrodden and thei dreams in complete tatters.

Chit Funds theme are there in every house hold when people of some experience and honsety of that locality used to fund these money from the people and then lend these money to others and the money accured from these intrests equally divided among depositors during some holy occasion such as during Kumar Purnima or any related occasion.

All of these are going on for ages but most of these poeple are from the same locality and stays there for ages and those have honest propostion. Those persons who stays inside that location, knows that fund raiser so there is in noway one can escape from that location.

On the other hand when we do see and find information about chit fund cases those companies came from nowhere and people have hardly any idea about those companies and still, eple depend on them and believe them and that becomes extremely surprise denomination as funding money to an unknown institution itself one need to know about that in complete detail.

Poeple must check where that compnay and what are the origins of that compnay as this is a must for these people as their hard earned money is going to be invested here and for this one need to be extremely cautious about it and one should deeply check up the rigin and authenticity of that chit fund company in which they deposit their hard earned money for.

it is not the same as that of depositing the money with the person in your locality as you know that person but in the case with chit fund company one need to exactly and completely understand from where these companies have reached and what are the motives of these companies for.

If some one have no access to all of these then he or she could approach to the person whom they believe and investigate about that particular chit fund company and then move forward and find out whether these are the well established company or mere cheat companies aiming to cheat people through the gate of chit fund.

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The decisions made today determine how tomorrow will be

The simple ambition to become rich has made all the while feelings of going towards the edge of feelings, when one can find the short cur route to anything where one should not be worried about the present and dreaming of a long future but in due course of time it has seen that to become rich and famous has not always been the same as before. One has to plan it prudently as well as in the strong mind in order to find the correct way out of every bit of life saving incidents where one can see related future and its stronger sense of anticipations to make it work for more to achieve and clear it in the sense of future.

Many a time, poorer persons are always dreamt bigger to achieve rich and affluent by investing on buying vehicles. It is one such situation where one can find the easiest path to become rich and famous, where one can for sure is trying hard to invest on something which might not have been there as of the most eminent understanding of illiterate people.

In this manner when we think of the most dramatizing moments where rich can have the chance to become more richer but when poor is trying hard to get over the difficulties, then by buying a vehicle on loan one does not think that more than 10,000 bucks for month have to sell from time to time in each month. Many a times, poor thinks that with the advent of zero day percentages, one thinks about such position when he or she thinks that repaying of loans would be easier that it would be anticipated but it is not so. The repaying of loans and also its related happenings can only be known after a certain span of time when at the middle of solving of interest payment one can find really hard to see what is the state of the matter of financial situations.

So, in a way one has to find the answers of each and every financial problems as with long term solving of money one should not always hesitate to see and find the worse part of analyzing why financial management goes overdrive and why certain part of financial takings is not launching as it is expected to do so and all these in summary signifies about the real worries that is comes crippling at you all the time and it would make a whole lot of problems in each part of life and durations. It should be calculated in strong and clear manner whether someone would easily repay all those interests that would be accumulated on the certain part of month and if it is not being paid at the right time then certainly it would not be for good health of yours financial management.

So, one non-repayment of loans lead to other form of debt and in this way the whole course of financial management lead to the black hole of debt and for this it is always essential to have strong sense of futuristic version of each and every aspect of mind and related ideas in order to get rid of all those worries and other troubles. It should not feel awkward to you as each and every decision should be taken in cognizance with other forms of monetary factors and with it the form and the anticipation of a stronger monetary management should bear the main stream of decision making.

One should always be cautious of decisions and its related actions and reactions. One should not always be stayed inside the whole set of boundaries of restrictive part of decision making where the scope of exact limitations should not cross the boundaries of other side of the fence. Decisions always taken but many a times it is not reversible so it is for better to see the flipside of decisions where one can find the exact details and outcomes of each facets of it and try to compare yours financial situations and also add some break down expenses of vehicles as well as other sudden expenses where you would not be able to pay for it and in this case it is always better to calculate the risk parameters and for the poor the risk taken should not be more than what will cross the premium boundaries.

In short fiscal decision making is not an easier task to do and accomplish. One has to be extremely careful and properly guided otherwise one could be in a difficult situation all the time and thinking of solving the mystery after getting into the trap seemingly unwanted.

After one year on the parts of the vehicle will be worn out and the cost of replacement is on the higher side and this one should also be prepared to pay it after repaying of interests in each month. One should always be cautious of additional burdens that have been there for you and for this one should always be thinking about after one year of payment one should always be cautious of everything and be prepared for bonus payments all the time.

Always feel for it and do not have to take it as the sad state of affairs and try hard to find the real answer to all these and do not just seat and cry in front of others and try to take manual loans from here and there. Suddenly, you feel that after some time though you are repaying your interests but manual loans always get to be on the higher side and this makes life difficult.

Suddenly after two years of buying vehicles on one fine day you realize that though you have given the interest of two lacs but at the same time have generated loan of 70,000 manually. So, in a way, you are trapping yourself into an arena of loan cage where you would be getting out from one cage to the other but not to the outside. This is one such intricate part of life where one should not always think of tinkering outside yet one has to find the way out otherwise there would be difficulties all the way for you.

In every financial decision making one has to deal with various aspects of life such as how could such money be easily payable and who could not be easily solved the fiscal constraints. All these seeming to be the actual path of solving the knotty part of different permutations and combinations but still life does revolve around it and how to solve all these mysteries on one go is the most elementary part of getting an answer to it.

So, is it real or part f temporary movement to see and find the related professional answer it is hard to tell but in reality one can sense with the sixth sense to find out whether all these investments are going to be healthy or not or whether these would be like the same set of understandings and attachments with which all has been claiming to be doing perfect financial decisions is hard to imagine and understand.

Be brave, and religious and always consider when you are taking the decisions it should be in such manner that would not hurt you in the long term.

A Tale for examples, when you go to the temple during the holidays or during festive seasons one should always try hard to find that while entering into the temple at the door side beggars has been sitting there. They would ask for money from you. When you pay for it, all the money they will be receiving from the person would be taken by their leader and then at their home in the night or when they finish up these professions they would be sharing the money equally. This has been made in just t clear the competitive spirits among themselves.

It is one such major part of budgetary management where each and every part of people there would be taking the same size of cake or money in this case as it gives them immense joy to work together.

Similarly, when someone is planning to buy a vehicle on loans it is better to take care and think of the rigorous life span of repayment and with it you will reach a sufficient and correct conclusion without any such disturbances and problems. It is all about perfect calculations and reaching to conclusions in proper time and manner.

One should not always be feel left out of such situations where one has to pay and repay day in and out and ultimately hard to face the brunt of nor repaying the loans and what matters the worst is that after few months even if you have repaid something still you are going to lose all those, and then you cannot repay all those sums. It should make you feel depressed and dissatisfied.

So, when you are making a huge financial decision it is always been the best idea to look beyond and find the authentic path of ideas and the difficulties that have been lying here and there. Many times it is the tricky part and most of the wrong decisions taken in the lure of money and for this it is always advisable to have a strong sense of mind over your head when you are taking such humongous financial decisions.

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