The Live Nagpur
  • Nagpur City
  • Nagpur Education
  • Nagpur Sports
  • Business
  • Featured
  • Crime
  • Entertainment & Lifestyle
  • Health & Wellness
  • Nation
  • Politics
  • Trending
  • Vidarbha
  • Obituary

The Live Nagpur

  • Home
  • City
  • Politics
  • Business
  • Education
  • Entertainment
  • Sports
  • Health
  • Crime
  • Forest
  • Featured
  • Vidarbha
Business

Finance is life blood of any business organization –CA Julfesh Shah

by TLN Team May 14, 2021May 14, 2021
written by TLN Team May 14, 2021May 14, 2021
Finance is life blood of any business organization –CA Julfesh Shah

Finance is said to be life blood of any business organization and project finance is a long-term financing of any business venture including infrastructure, commercial and industrial projects based upon the projected cash flows of the project rather than appraising the financial statements of its stake holders & sponsors said CA Julfesh Shah while addressing a webinar on Essentials of Project Finance organized by Dhule & Nandurbar Chapters of WIRC.

CA Shah further clarified that organizations require long term finance to meet basic objectives, to set up, modernize & expand business activity,to acquire fixed assets for facilitating productive endeavor and require short term finance to meet the day-to-day working capital requirements i.e operating cycle. 

A portion of current assets is to be met through long term sources for  having long term stability, liquidity etc in the event of exigencies. Project Finance is a process of evaluating and selecting long term investments that are consistent with the goal of shareholders (owners) which is wealth maximization.

He further enlightened that due to the complexity and uniqueness involved,a capital project needs to be launched after analyzing past environment, studying existing environment and forecasting future environment. Proper presentation and detailed analysis is necessary for seeking any type of financial assistance from financial institutions.

A detailed & descriptive project report is prepared. Important points that are necessarily to be incorporated in the project report are nature of projects, general information, information about promoters, technical details of the project, marketing & selling arrangement, financial feasibility, economic benefits.

CA Shah further said that we need to determine the nature of Project whether it is a New / Green Field Project, Expansion /Modernization of existing facilities at the same or different location, Forward / Backward Integration, Cost Reduction Project ,Diversification, Debt Restructuring Schemes), Technical details like Capacity, Available working days/shifts, Manufacturing process, Location, Raw materials, Power requirement, Man power requirement, Product mix,Finalization of Source of Finance Own Funds  i.e. Retained Earnings, Promoter’s Contribution, Borrowings – Internal Sources, External Sources,Economic Benefits like whether helpful for development of ancillary units, Local manpower engaged, Foreign Exchange & Eco-friendly elaborated CA Shah.

The key to any project finance is to use a right mix of debt and equity. There are a number of issues highlighted which need to be considered for the purpose of financing of the project. Besides, it is important that due care is taken in drafting the documents concerning the financing of the project. 

The companies should adopt the project financing structures so that the objective of shareholder’s wealth maximization can be achieved.

As the world is heading towards a global integrated market and as the demand for private capital in infrastructure assets is increasing, project finance will continue to play an important role in both developed and developing markets,concluded CA Shah.CA Avinash Ghundiyal,Chairman made welcome remarks & CA Santosh Nankani,Convenor, introduced the speaker & proposed vote of thanks

0 comment
FacebookTwitterLinkedin
TLN Team

previous post
Nagpur distt reports 1996 fresh cases, 70 deaths
next post
Trains run via Nagpur Cancelled Due to Poor Occupancy

You may also like

Interaction Meeting with Ms Ebtesam Alkaabi, Head of...

September 20, 2023

Promoting Peace through Literature and Music- Eminent Scholars...

September 17, 2023

Industry meet on Sept 17

September 15, 2023

Loans for Maratha entrepreneurs available through Annasaheb Patil...

September 14, 2023

WCL and Vensar ink MoU for Walani underground...

September 12, 2023

VIA LEW Session on CRM – The Golden Pot...

September 11, 2023

Badjate Stock & Shares Pvt. Ltd. leads the...

August 30, 2023

Booking of Stalls for VIALEW 26th “Udyojika – An...

August 28, 2023

Rajesh Sarda elected as new president of Steel...

August 27, 2023

Char-Choughi Expo received good response

August 23, 2023

Trending News

  • Heavy Rain – Alert by NMC

    September 23, 2023
  • Holiday announced for schools & colleges in Nagpur district

    September 23, 2023
  • DCM Devendra Fadnavis is continuously monitoring the heavy rain situation in Nagpur.

    September 23, 2023
  • Streets, Houses Submerged After Heavy Rain In Nagpur

    September 23, 2023
  • National Cinema Day will allow viewers to watch movies for Rs99 per admission

    September 22, 2023

Important Links

  • Politics
  • Crime
  • Business
  • Education
  • Entertainment
  • Sports

Available on Playstore & Coming Soon on Appstore

Sign-Up Form

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

Footer Logo
  • Nagpur City
  • Nagpur Education
  • Nagpur Sports
  • Business
  • Featured
  • Crime
  • Entertainment & Lifestyle
  • Health & Wellness
  • Nation
  • Politics
  • Trending
  • Vidarbha
  • Obituary
  • Privacy Policy
  • Cookie Policy
  • Terms Of Use
  • Advertise with Us

© 2020 - The Live Nagpur . All Rights Reserved.