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SOURCES OFFINANCE
CIA- 3
By:
Faalguni Agarwal 1011356
Mansi Bhatia 1011358
Arpitha Reddy 1011355
Khushboo Chopra 1011357
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,1'8675,$/ ),1$1&( &25325$7,21 2)
,1',$ ,)&,
Established in 1948 under the IFC Act, 1948.
Main objective has been to provide medium & long
term credit on Indian industrial concerns.
Authorized capital has been raised from Rs.10 croreto Rs.20 crore
Since July 1, 1993 it has been given the status of a
limited company.
the financial resources of IFCI consist of paid up
capital, reserves, repayment of loans, marketborrowings in the form of bonds/debentures, loans
from Govt of India, advances from the Industrial
Development Bank of India and foreign currency
loans.
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,)&,
The financial assistance of the corporation is
available to limited companies or co-operative
societies registered in India & engaged or proposing
to engage in
a) Manufacture, preservation or processing of
goods
b) The mining industry
c) The shipping businessd) The hotel industry
e) The generation or distribution of electricity or
any other form of power.
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)81&7,216 2) ,)&,
Functions ofIFCI
FinancialAssistance
PromotionalActivities
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),1$1&,$/ $66,67$1&(
The IFCI is authorized to render financial assistance in
one or more of the following forms:
a) Acting as an agent of the Central Govt or the
World Bank in respect of loans sanctioned to
the industrial concerns.
b) Guaranteeing of deferred payments for the
purchase of capital goods from abroad or within
India
c) Guaranteeing of loans raised by industrialconcerns from scheduled banks or state co-
operative banks.
d) Subscribing directly to the shares and
debentures of public limited companies.
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&217'
e) Granting loans or advances to or subscribing to
debentures of industrial concerns repayable
within 25 yrs. Also it can convert part of such
loans or debentures into equity share capita as
its option.
f) Underwriting the issue of industrial securities
i.e., shares, bonds, or debentures to be disposed
off within 7 years.
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&217'
Financial assistance is available from IFCI for the
following purposes:
For the setting up of new industrial
undertakings. For the expansion or diversification of the
existing concerns.
For the modernization & renovation of the
existing concerns. For meeting existing liabilities or working capital
requirement of industrial concerns in exceptional
cases
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352027,21$/ $&7,9,7,(6
IFCIs promotional role is equally important
Creating industrial opportunities
Helps in developing small & medium scaleentrepreneurs through guidance in identification of
projects, preparing project profiles, implementation
of the projects
Acts as an instrument of accelerating the
industrial growth & reducing regional industrial &income disparities.
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ICICI
ICICI Bank Limited is a
major banking and financial services company
based in Mumbai. It is the second largest bank in
India [and the largest private sector bank in
India by market capitalization. The bank also
has a network of 2,529 branches and about 6,102
ATMs in India and presence in 19 countries, as
well as some 24 million customers. ICICI Bank
offers a wide range of banking products andfinancial services to corporate and retail
customers through a variety of delivery.
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BASIC PURPOSE
The corporation has been established
for the purpose of assisting
industries in the private sector .
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FUNCTIONS
Assisting in the creation , expansion modernization of
such enterprises .
Encouraging and promoting participation of private
capital (internal and external) Encouraging and promoting private ownership
Expansion of investment market .
Providing finance in form of long term and short term
loans .
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Making funds available for investment .
Furnishing managerial , technical , administrative
services to Indian industry.
To extend guarantee for deferred payments. To advance loans in foreign currency towards the cost
of imported equipment .
Underwriting issue of shares or debentures.
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STATE FINANCIAL CORPORATION (SFCS)
The state financial corporation act was passed in the year 1951 by the
Government of India. At present we have 18 such corporations
functioning in the country. Some of its functions are -
To provide financial assistance to the Small Scale and Medium
Scale industries that are engaged in manufacture, preservation or
processing of goods, mining, hotel industry, generation and distribution
of power, transportation, fishing, packaging ,fishing etc.
To render assistance to all kind of industries in the form of private
limited companies, partnership firms or sole trading concerns
Granting loans or advances to industrial concerns repayable within
a period, not exceeding 20 years.
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CONTD..
Guaranteeing loans raised by industrial concernspayable within 20 years.
Underwriting the issue of stocks, shares, bonds ordebentures by the industrial concerns subject to their
being disposed off within 7 years. Guaranteeing deferred payments due from any
industrial concern in connection with purchase ofcapital goods in India.
It acts as an agent of the central government or
state government or the Industrial FinanceCorporation of India (IFCI) in respect to any businesswith an industrial concern in respect of loanssanctioned to them.
Subscribing to the debentures of industrial concernsrepayable within 20 years.
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STATE INDUSTRIAL DEVELOPMENT BANK
OF INDIA (SIDCS)
The State Industrial Development Corporations (SIDCs) were
established under the Companies Act, 1956 as wholly ownedundertakings of the governments with the specific objectives of
promoting and developing and large industries in their respective
states/union territories. Andhra Pradesh and Bihar were first
states to set up such corporations in 1960. Most of the states have
set up such institutions at present. At present there are 28 such
SIDCs working in the country. Many of these corporations areregistered under companies Act and two have been set up under
the statutes of legislative bodies.
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Grant of financial assistance.
Provision of industrial sheds or plots.
Promotion and management.
Promotional activities such as identification of project idea,
selection and training of entrepreneur, provision of technical
assistance during project implementation.
Providing risk capital to entrepreneur by way of equity
participation and seed capital assistance
To give term loans, guarantees and lease finance.
To administer incentives schemes of central and state
governments.
SIDCS PERFORM THE FOLLOWING FUNCTIONS
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THANK YOU!