English PPT 7
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Transcript of English PPT 7
IN THE NAME OF GOD
THE MOST COMPASSIONATE,
THE MERCIFUL
Construction Fund
Securities and Exchange Organization
Definition & Objectives 1
Steps for launching a Construction Fund2
Net Asset Value per unit (NAV)3
Construction Sale6
NAV Calculation process4
Acceptable Expenditures5
CONTENT
7 Liquidation process
Construction Fund is a financial institution, which is authorized by SEO as an independent legal entity; (in Iran in form of a noncommercial institute)
1. DEFINITION & OBJECTIVES
Object of Construction Fund: To collect macro & micro savings, devote them to build specified Constructing Project, sell the construction & eventually distribute obtained benefits among investors.
2 .STEPS FOR LAUNCHING A CONSTRUCTION FUND
Establishment license & public offering permission
Selecting
ProjectFund Manager
Preparing article of association, prospectus, business plan & cash flow, along with related documents Investors
Appointing Governing & Supervisory Bodies
ConstructorSupervisor
Trustee
Secondary Market
Market maker
Underwriter
STEPS FOR LAUNCHING A CONSTRUCTION FUNDINITIAL PUBLIC OFFERING
INITIAL PUBLIC OFFERING
SPENDING MONEY ON PHASE 1
SPENDING MONEY ON PHASE 1
SECONDARY MARKET FOR UNITS
SECONDARY MARKET FOR UNITS
CAPITAL RISING
Investors
SEO
Board of Directors
Fund Manager
Proposing Capital Rising according to Business Plan
Approving Capital Rising
Requesting Permission for public offering
Issuing the Permission for public offering
CAPITAL RISING
3. NET ASSET VALUE PER UNIT
Net Asset
Value per unit
Project Value Liabilities
Outstanding Units
Other Assets
1- (Percentages of up front selling)× + -
Space sold in advance, divided by sum of utilizable space
Sum of the following at Cost or Replacement Value: • Field• Labor Expenditures• Consumed materials• Equipments & plants• Other Expenditures
Includes : • Cash• Receivables• Prepayments• Securities• Investments
NAV
Includes all liabilities except liabilities arises from up front selling
4. NAV CALCULATION PROCESS
Board of Directors
Auditor
Chartered Assessor
Renders to
Disclosure to the public
Clean Report/with Immaterial Paragraphs
Audit Report
Replacement Value for Assets & Expenditures
List of Assets
Financial Statements(At end of each 3 months period)
Financial Statement
Fund Manager
Expresses
Opinion
Nominate Chartered
Assessors
Prepares
Appoints
List of Assets & Expenditures
5. ACCEPTABLE EXPENDITURESField & Acquisition
Costs
Fees payable to Governing & Supervisory
Bodies
Architectonics
Project Implementation
Costs
FoundationCosts
Licenses & Permission Costs
Advertisement Costs
InsuranceCosts
Chartered Assessors Fees
Finance costs
Costs
Qualified individuals who
apply for participating in
auction & render their bid price
Executes the auction along with regulations & Assembly & Board of Directors Approvals
Approves:• Basic Price• Ads budget
• Financial statements
6. CONSTRUCTION SALE
Those who have rendered the best bid price are appointed as
winners
Offers :• Auction documents
• Ads budget• Draft contracts
• Basic Price
• Newspapers & magazines
• Websites• TV & RadioAdvertising
Applicants
WinnersFund Manager
General Assembly
Board of Directors
Trustee
Qualified individuals who
apply for participating in
auction & render their bid price
• Newspapers & magazines
• Websites• TV & Radio
Those who have rendered the best bid price are appointed as
winners
Offers:• Auction documents
• Ads budget• Draft contracts
• Basic Price
Approves:• Basic Price• Ads budget
• Financial Statements
Executes the auction along with regulations
and Assembly & Board of Directors
Approvals
7 .LIQUIDATION
PROCESS
1- Fund Manager executes the auction process according to related regulations,Article of Association and Assembly & Board Approvals to sell out the construction.2- Fund Manager makes his effort to liquid other assets (including receivables), & avoids acquisition of new assets. 3- Fund Manager settles all the matured liabilities, under the trustee supervision(Fund Manager & Trustee fees are exception) 4-Fund Manager prepares the Funds’ financial statements & performance reports and renders them to the Auditor by the end of first part of liquidation period (at this time all or almost all assets are liquidated).
5- Auditor announces his opinion about financial statements & performance report to SEO, Fund Manager & Trustee. 6- If the auditor report is clean, Fund Manager pays to investors an amount not less than 80% of cash reflected in financial statements, nor more than the total net Asset value of outstanding units .Units cannot be traded from 5 days before the payment day. 7- After mentioned payment, an announcement issued by Fund Manager declares the results; then unit trading is permitted. Above steps should be repeated, at least every 3 months, until the liquidation of all assets. 8- When the Construction is sold out, unit trading is not allowed. Fund Manager redeems all units at price equal to replacement NAV. Fund Managerprepares final reports which should be audited then.9- Equity account is settled, the balance (if exists) is transmitted to Fund Managers' account after approval of Trustee. The rest of liabilities, including Governing & Supervisory Bodies’ fees (except Fund Manager Fees), Should be paid then. If there is not enough cash in fund accounts, Fund Manager would provide the rest.
10- Fund Manager is responsible for preparing the deed notes for construction buyers. This duty is done by the Fund Manager on behalf of the Fund. The related costs are charged from liquidation fee provision account ( in case the provision is not adequate, the Fund Manager would take on charges).
11-All of the commitments are performed & Fund Manager’ receivables are settled & rest of assets are transferred to the Fund Manager for the final liquidation stage.
Thank you
REPLACEMENT VALUE
Field
Equippingworkhouse
Plans &Designation
Material in Process
License
Installation & set up
Replacement Value
Fund Manager
Supervisor
Liquidity guarantor
Board of Directors
AuditorTrustee
Underwriter
GOVERNING & SUPERVISORY BODIES FEES
Constructor MarketMaker
Fund Manager
Assembly
Constructor
Supervisor
Trustee Underwriter
MarketMaker
Auditor
Board of Directors
GOVERNING & SUPERVISORY BODIES OF CONSTRUCTION FUND
Approving construction plan of the Project
Taking part in Funds’ assembly sessions & voting on behalf of absent investors
Supervising other Bodies to make sure they perform their responsibilities & pursue probable violations.
Provide liquidity of Fund units with regard to related directives & requirements of prospectus (price deviation limit, quote range & minimum daily transaction)
Liquidity guarantor
Purchasing that part of Construction which has not been sold during the liquidation period
Performing the Project independently or having it done by qualified Contractors (Managing the construction project)
Rendering physical progress reports to supervisor
Steps for Launching
Underwriting Fund units in IPOs
Front office of the Fund (specially in unit issuing)
Recording units transactions, if the Fund is not listed in an exchange
Underwri ter
Capital Rising
Fund Managerkeeping investors’ accounts
Participating in issuing units process
Order payments after approved by Trustee
Proposing capital rising and other financing resources to the board of directors
Book keeping and Preparing financial statements
Calculating net asset value per unit
Setting up Fund software & website
Performing auctions & tender
Representing the Fund against third interested parties
Capital Rising
Steps for Launching
NAV Calculatio
n
Performing the Project independently or having it done by qualified Contractors (Managing the construction project)
Rendering physical progress reports to supervisor
Rendering financial progress reports to Fund Manager
Const ructor
Steps for Launching
Approving construction plan of the Project
Supervising the construction to be along with construction plan & national construction Laws & Regulations
Approving physical progress reports
Preparing periodic progress reports
Executing duties of a supervisor according to “ Framework of Engineering & Control of Constructions Law”
Supervisor
Steps for Launching
TrusteeTaking part in Funds’ assembly sessions & voting on behalf of absent investors
Supervising other Bodies to make sure they perform their responsibilities & pursue probable violations.
Considering & approving Fund Managers’ appeal for opening new bank accounts
Nominate auditor to be appointed by General Assembly
Approving Fund Manager reconciliations of debates
Supervising the authenticity of auctions or tenders
Determining how Funds’ securities should be maintained
Steps for Launching
Market Maker
Provide liquidity of Fund units with regard to related directives & requirements of prospectus (price deviation limit, quote range & minimum daily transaction)
Steps for Launching
Board of Direc tor
Approving the amount and methods of Financing or Capital rising
Approving qualification of Constructor & its nominated Contractors to execute each stage
Making necessary decisions about auctions and tenders
Determine Constructor responsibility, when there is delay in construction operations
Change the charges and/or schedule of the Project when it is necessary
Capital Rising
Steps for Launching
NAV Calculatio
n
Audi tor
Supervising on authenticity of Book keeping
Expressing opinions on NAV calculations
Expressing opinions on Fund Managers’ reports to assembly
Steps for Launching
NAV Calculatio
n
MARKET MAKERS’ FUNCTIONALIT
Closing Price of yesterday
200
Price Limit (10%)
220180Bid Ask
Quote Range
Steps for Launching
Risk Analyses
Financial Analyses
Technical Analyses
Market Analyses
General Information
Construction process & plan
Detailed Expenditures (Endured & Predicted)
Detailed Maps
BUSINESS PLAN
1 Full text of article of Association & Prospectus
2 Financial Statements
3 Monthly Progress Reports
4 Market Makers’ Bid & Ask Quotes
5 NAV Reports both in Cost & Replacement Value
6 Announcements of General Assembly Meetings
7 Announcements about Capital Rising (Effecting Date & Capital Rising Results)
INFORMATION TO BE DISCLOSED THROUGH FUND WEBSITE
8 Any other reports requested by SEO