1.Define the term Business Cycle and also explain the phases of business or trade cycle in brief. Definition of Business cycle Explanation of Phases of business cycle
Ans: Will Be Available Soon, Or Email to kvsude@gmail.com Or Dial +91 9995105420
SUMMER 2014-15 Assignments available now.
Dear Students,
Summer 2014 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420, +966 54 697 6607 we will reach back you with in 24H ”
For Online Booking, Kindly Click Here
Caution : We seen , many unknown persons , copied our caption and using it for their advertisement Kindly beware of this kinda activities and don\t lose your Money by fake people. Always choose smumbaassignment.com for getting your solutions.
Kindly visit our Facebook & LinkedIn Profile suing the following Links
FB: https://www.facebook.com/smumbaassignments
LinkedIn : http://www.linkedin.com/in/smumbaassignments
For more info Email to : kvsude@gmail.com.
since 2005 [ 9.5 years of experience in Solving Assignments ] our Skype ID : kvsude
Bangalore | Delhi | Kerala | Himachal | Chennai | Hyderabad | Qatar | Saudi Arabia | Kuwait | Austria | Canada |
6 Consider two situations, a young man X in his early twenties– and single another young man, Y, in his late thirties–married with responsibilities. X and Y earn the same amount of money. Y has a family, a house, a car and all the encumbrances associated with the marital status. Both of them like to invest in securities. What would be their constraints and objectives? 10 Marks
Answer:- In the given situation X can be identified responsibility free young man whereas Y is a middle aged responsibility clad man. So their investment behavior is bound to be different given their differences in current situation. Married man is less likely than single man to choose a riskier portfolio.
5 Following are data for Anand Products (Rs. in lakhs) 10 Marks
| 1998 1998 |
| Assets 6000 Revenues 6600Short term liabilities 450 Operating expenses 5950
EBIT 650 8% debenture 1250 Dividend 50 10% bonds 500 Interest 150 Common stock (Rs.10 par) 3500 EBT 500 Surplus 300 Taxes 200 |
6 Prepare a comparative income statement of X Ltd., with the help of the following information 10 Marks Â
Solution: X Ltd. COMPARATIVE INCOME STATEMENT
| Year | Change-increase(Decrease)
|
|||
| Particulars | 2007Rs | 2008Rs | Absolute | Percentage |
| Net SalesLess: Cost of Goods Sold | 10000060000 | 200000140000 | 10000080000 | 100133 |
| Gross ProfitLess: Indirect Expenses | 400004000 | 600006000 | 200002000 | 5050 |
5 The following figures relate to the trading activities of ABC Ltd. for the year ended as on 31 March 2012: Sales Rs.10,00,000; Purchases Rs 7,00,000; Opening stock Rs 1,10,000; Closing stock Rs 1,40,000, Sales return Rs 40,000; Selling and distribution expenses: (a) Salaries Rs 18,000; (b) Advertising Rs 7,000; (c) Travelling Rs 5,000; Administrative expenses; (a) Salaries Rs 30,000; (b) Rent Rs 6,000; (c) Stationery, Postage etc., Rs 2,000; Depreciation Rs 10,000; Other Charges Rs 20,000; Provision Taxation Rs 70,000. Non-operating Incomes: (a) Dividend Received Rs 12,000 (b) Profit on sale of fixed assets Rs 6,000. Non-operating expense: Loss on sale of shares Rs 3,000. You are required to rearrange the figures in a form suitable for analysis. 10 Marks
Solution: INCOME STATEMENT
| RS | RS | ||||
| Less: | Gross SalesSales Returns
Net Sales for the Year
|
(1) |
10,00,00040,000 |
9,60,000 |
|
| Less: | Cost of SalesOpening Stock | (2) | 1,10,000
7,00,000 |
||
| Add: | Purchases | ||||
SPRING 2014 -15 Assignments available now.
Dear Students,
Spring 2014 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420, +966 54 697 6607 we will reach back you with in 24H ”
For Online Booking, Kindly Click Here
Caution : We seen , many unknown persons , copied our caption and using it for their advertisement Kindly beware of this kinda activities and don\t lose your Money by fake people. Always choose smumbaassignment.com for getting your solutions.
Kindly visit our Facebook & LinkedIn Profile suing the following Links
FB: https://www.facebook.com/smumbaassignments
LinkedIn : http://www.linkedin.com/in/smumbaassignments
For more info Email to : kvsude@gmail.com.
since 2005 [ 9.5 years of experience in Solving Assignments ] our Skype ID : kvsude
Bangalore | Delhi | Kerala | Himachal | Chennai | Hyderabad | Qatar | Saudi Arabia | Kuwait | Austria | Canada |
6 Modern portfolio theory helps an investor to identify his optimal portfolio from umpteen number of security portfolios that can be constructed. Elaborate on Arbitrage Pricing Theory and principle of Arbitrage theory.
Answer:- Explanation of Arbitrage pricing theory
Capital Asset Pricing Model (CAPM), and Arbitrage Pricing Theory (APT) are two of the most commonly used models for pricing risky assets based on their relevant risks.
CAPM calculates the required rate of return for any risky asset based on the security’s beta. Beta is a measure of the movement of the security’s return with the return on the market portfolio, which includes all available securities and where the proportion of each security in the portfolio is its market value as a percentage of total market value of all securities.
5 Technical analysis is a method used to evaluate the worth of a security by analyzing statistics pertaining to its market activity. Explain on Dow theory and its assumptions.Write complete information on Technical indicators.
Answer:-Explanation of Dow Theory and its assumptions
The Dow Theory was originated by Charles Dow, the founder of the Dow Jones Company and editor of the Wall Street Journal. The Dow Theory presumes that the market moves in persistent bull and bear trends. Dow Theory was originally used for market as a whole, but it is now used for individual securities as well.
Dow Theory recognises that it is the actions of traders in the marketplace responding to news that cause prices to change rather than the news itself, and that, once established, a market trend tends to continue.
4 Elaborate on Intrinsic value of securities and issues with fundamental analysis.Explain on company analysis and its areas of focus.
Answer:- Explanation on intrinsic value of securities Issues with fundamental analysis
This exercise capitalises on the observed discrepancy in market price and intrinsic value of company shares. In other words, the valuation gap exposed by the fundamental analysis is used by the investors to reap capital gains till price corrections take place in the market.
When the market is in equilibrium, the current market price reflects the average intrinsic value evaluations made by all investors. If this value differs for an investor, it effectively means differing from the market consensus on the expected return or risk or both. Such investors may profit by acting before the market consensus reflects the correct information.
3 Risk is the likelihood that your investment will either earn money or lose money. There are some factors that affect the risk. Explain the factors that affect the risk and solve the below given problem Mr. A has purchased 100 shares of Rs.10 each of TVS Motors in 2005 at Rs.78 Per share. The company has declared a dividend @40% for the year 2006-07. The market price of a share as on 1-4-2006 was Rs.104 and on 31-3-2007 was Rs.128. Calculate the annual return on the investment for the year 2006-07
Answer:- Explanation of factors affecting the risk
The common risk factors are:
Business risk: As a security holder you get dividends, interest or principal (on maturity in case of securities like bonds) from the firm. But there is a possibility that the firm may not be able to pay you due to poor financial performance. This possibility is termed as business risk. The poor financial performance could be due to economic slowdown, poor demand for the firm’s goods and services and large operating expenses. Such a performance affects the equity and the debt holder. The equity holder may not get dividends and residual claim on the income and wealth of the firm. Similarly a debt holder may not get interest and principal payments.
2 Financial markets permit the businesses and governments to raise the funds needed by sale of securities. The economy requires a sound financial markets for its proper functioning. Explain in detail on financial derivatives and the financial intermediaries
Answer:- Explanation on financial derivatives
Derivatives are financial instruments that have no intrinsic value, but derive their value from something else. They hedge the risk of owning things that are subject to unexpected price fluctuations, for example foreign currencies, commodities (like wheat), stocks and bonds. The term ‘derivative’ indicates that it has no independent value, i.e. its value is entirely ‘derived’ from the value of the cash asset. For example, price of a stock option depends on the underlying stock price and the price of currency future depends on the price of the underlying currency.
1 Investment operation is one which upon through analysis promises safety of principal and an adequate return. Explain the investment process and write down the common errors in investment management
Answer:- Explanation of investment process
1. Setting investment policy
This initial step determines the investor’s objectives and the investible amount. Since there is a definite relationship between risk and return, the objectives should be stated in terms of both risk and return.
This step concludes with the asset allocation decision, which is identification of the potential categories of financial assets for consideration in the portfolio that the investor is going to construct. Asset allocation involves dividing an investment portfolio among different asset categories, such as stocks, bonds and cash.
b. A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper in a week. There are 160 production hours in awake. It requires 0.20 and 0.40 hours to produce a ton of grade X and Y papers. The mill earns a profit of Rs. 200 and Rs. 500 per ton of grade X and Y paper respectively. Formulate this as a Linear Programming Problem.
Answer : Objective function is to maximize the profit
Thus Max. Z=200X1+500X2
6 Facebook bought WhatsApp on Feb, 19, 2014 for $19 billion. This was split between $4 billion in cash, $12 billion worth of Facebook shares, and $3 billion in restricted stock units to be paid in four years. Do you think the market capitalization has played a significant role in pricing the valuation. Discuss the Walter’s model assumptions in this context.
Answer:- Prof. James E. Walter considers that dividend pay-outs are relevant and have a bearing on the share prices of the firm. He further states that investment policies of a firm cannot be separated from its dividend policy and both are inter-linked. The choice of an appropriate dividend policy affects the value of the firm.
Walter model clearly establishes a relationship between the firm’s rate of return “r” and its cost of capital “k” to give a dividend policy that maximizes shareholders’ wealth. The firm would have the optimum dividend policy that enhances the value of the firm.
5 Below Table gives the complete details of sales and costs of the goods produced by XYZ ltd for the year 31.03.12. Table -Sales and Costs Produced by XYZ Ltd.
| Sales | 80,000 | Inventory | |
| Cost of goods | 56,000 | 31.03.07
31.03.08 Accounts Receivables 31.03.07 31.03.08 Accounts Payable 31.03.07 7,000 31.03.08 |
9,000
12,000
12,000 16,000
7,000 10,000 |
What is the length of the operating cycle? What is the cash cycle?
Assume 365 days in a year.
a) length of the operating cycle
b) cash cycle
Solution
Operating Cycle = Inventory Conversion Period + Accounts Receivables Conversion Period
From the above formula we need to first calculate the individual conversion periods.
inventory conversion period
4 A project requires an initial outlay of Rs. 1,00,000. It is expected to generate the cash inflows shown in table
| Table: Cash Inflows Year | Cash inflows |
| 1 | 50,000 |
| 2 | 50,000 |
| 3 | 30,000 |
| 4 | 40,000 |
Solution:-
Step 1: The average of annual cash inflows is computed as shown in table 8.16.
| Year | Cash flows |
| 1 | 50,000 |
| 2 | 50,000 |
| 3 | 30,000 |
| 4 | 40,000 |
| Total | 170000 |
3 The concept of financial leverage is a significant, as it has direct relation with capital structure. Do you agree? If so, substantiate your arguments.
Answer:- Financial leverage relates to the financing activities of a firm and measures the effect of EBIT on Earnings Per Share (EPS) of the company. A company’s sources of funds fall under two categories:
- Those which carry fixed financial charges like debentures, bonds, and preference shares
- Those which do not carry any fixed charges like equity shares Debentures and bonds carry a fixed rate of interest and are to be paid off irrespective of the firm’s revenues.
The dividends are not contractual obligations, but the dividend on preference shares is a fixed charge and should be paid off before equity shareholders. The equity holders are entitled to only the residual income of the firm after all prior obligations are met.
2 A) If you deposit Rs 10000 today in a bank that offers 8% interest, how many years will the amount take to double?
2 A) If you deposit Rs 10000 today in a bank that offers 8% interest, how many years will the amount take to double?
Solution :- 9 years (using rule of 72); 8.975 years (using rule of 69)
B) What is the future value of a regular annuity of Re 1.00 earning a rate of 12% interest p.a. for 5 years?
Solution: FVAn = A * FVIFA (12%, 5yrs)
1 When a firm follows wealth maximization goal, it achieves maximization of market value of a share. Do you agree? Substantiate your arguments
Answer:- Explain Wealth maximization
The term wealth means shareholder’s wealth or the wealth of the persons those who are involved in the business concern. Wealth maximisation is also known as value maximisation or net present worth maximisation. This objective is an universally accepted concept in the field of business.
Wealth maximisation is possible only when the company pursues policies that would increase the market value of shares of the company. It has been accepted by the finance managers as it overcomes the limitations of profit maximisation.
The following arguments are in support of the superiority of wealth maximisation over profit maximisation:
SPRING 2014 -15 Assignments available now.
Dear Students,
Spring 2014 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420, +966 54 697 6607 we will reach back you with in 24H ”
For Online Booking, Kindly Click Here
Caution : We seen , many unknown persons , copied our caption and using it for their advertisement Kindly beware of this kinda activities and don\t lose your Money by fake people. Always choose smumbaassignment.com for getting your solutions.
Kindly visit our Facebook & LinkedIn Profile suing the following Links
FB: https://www.facebook.com/smumbaassignments
LinkedIn : http://www.linkedin.com/in/smumbaassignments
For more info Email to : kvsude@gmail.com.
since 2005 [ 9.5 years of experience in Solving Assignments ] our Skype ID : kvsude
Bangalore | Delhi | Kerala | Himachal | Chennai | Hyderabad | Qatar | Saudi Arabia | Kuwait | Austria | Canada |
6 What is transaction channel? Explain in detail the two important aspects of transaction channel.
Answer : The transactional approach is based on the four traditional elements of marketing, sometimes referred to as the four P’s:
Product — Creating a product that meets consumer needs.
Pricing — Establishing a product price
2 Explain the concept of charter arrangement.
Answer : A charter party is the contract between the owner of a vessel and the charterer for the use of a vessel. The charterer takes over the vessel for either a certain amount of time (a time charter) or for a certain point-to-point voyage (a voyage charter), giving rise to these two main types of charter agreement. There is a subtype of time charter called the demise or bareboat charter.
In a time charter, the vessel is hired for a specific amount of time. The owner still manages the vessel but the charterer gives orders for the employment of the vessel, and may sub-charter the vessel on a time charter or voyage charter basis.
3 Write short notes on:
v Interaction between shippers and conference
Answer : The most common way for a conference, or carrier, to bind shippers is through use of a service contract. In the United States trades various reports indicate over ninety percent of all general cargoes move under service contract. In some markets (although not those involving U.S. ports) a system of deferred rebates is used with the shipper always having money due him on deposit with the conference.
v Air cargo documentation
Answer : The most important document in air cargo transportation is the transportation contract, or air waybill (AWB). A cargo agent or airline draws up the contract by issuing an air waybill, the form of which is approved by the International Air Transport Association (IATA). Instructions given by the shipper, and air transportation
v Container railway in India
Answer : Indian Railway’s strategic initiative to containerize cargo transport put India on the intermodal freight transport map for the first time in 1966. Given India’s size (almost 3,000 kilometres (1,900 mi) from North to South and East to West), rail transport is often a cheaper option for all cargo over medium and long distances, especially if the cost of inter-modal transfers can be reduced. Seeing that containerized
v Freight forwarders
Answer : A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel operating common carrier (NVOCC), is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.[1] Forwarders contract with a carrier to move the goods. A forwarder does not move the goods but acts as an expert in supply
4 What is payment? Explain the different methods of payment
Answer : Different Modes or Types of Payment ↓
The payment can be made in many different ways like by giving Cash, doing Telegraphic Transfer or Mail Transfer, via Money Order or Postal Order, Bill of Exchange, Promissory Note, Cheque, Bank Draft, etc.
1 Write short notes on: v Logistical packaging
Answer : Concept of Logistical Packaging
Logistical Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. It also refers to the process of design, evaluation, and production of packages. As explained
v Global supply chain collaboration
Answer : Supply Collaboration reduces supply chain variability by sharing demand and supply forecast with customers and suppliers across multiple tiers.
Key Features:
· Ability to share forecasts and confirm capacity with suppliers and customers
· Complex, multi-tier
v Free trade zones
Answer : A free trade zone is a designated area that eliminates traditional trade barriers, such as tariffs, and minimizes bureaucratic regulations. The goal of a free trade zone is to enhance global market presence by attracting new
1 Write short notes on: v Logistical packaging
Answer : Concept of Logistical Packaging
Logistical Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. It also refers to the process of design, evaluation, and production of packages. As explained Read the rest of this entry →
6 What is the need and role of Focus Market Scheme? Discuss in detail.
Answer : Focus Market Scheme
The objective of the Focus Market Scheme is to offset the high freight cost and other disabilities to select international markets with a view to enhance our export competitiveness to these countries.
Exports of all products to the notified countries shall be entitled for duty credit scrip equivalent to 2.5% of the FOB value of exports for each licensing year commencing from 1st April, 2006. The scrip and the items imported against it would be freely
4 Write short notes on:
a. Export promotion councils
Answer : The basic objective of Export Promotion Councils is to promote and develop the exports of the country. Each Council is responsible for the promotion of a particular group of products, projects and services. The list of Export Promotion Councils (EPCs) and specified Agencies/ Boards which shall be regarded as EPCs are given in Appendix – 31 of the Handbook
The main role of the EPCs is to project India’s image abroad as a reliable supplier of high quality goods and services. In particular, the EPCs shall encourage and monitor the observance of international standards and specifications by
b. India Trade Promotion organization
Answer : India Trade Promotion Organisation (ITPO) is synonymous with the country’s trade promotion around the world all round the year. Indeed at ITPO, the promotion of trade is an exacting mission, translating into a search for new frontiers and new horizons in the world of commercial interactions, both at macro and micro levels. A mission that finds expression in the successful organisation of trade exhibitions in India and abroad, buyer-seller meets, promotion through department stores, contact promotion
5 What are Special Economic Zones? Write one sentence each on any 5 SEZs in India.
Answer : A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country’s typical economic laws. The category ‘SEZ’ covers a broad range of more specific zone types, including Free Trade Zones (FTZ), Export processing zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free ports, Urban Enterprise Zones and others. Usually the goal of a structure is to increase foreign direct investment by foreign investors, typically an international business or a Multi National Corporation (MNC). Read the rest of this entry →
2 What is the role of services exports in recent years in India’s composition of trade? Discuss.
Answer : Role of services exports in recent years in India’s composition of trade
Foreign Trade is one of the significant macro fundamental variable of an economy. India till recently was predominantly a primary goods exporting and mainly an industrial goods importing country.
In 1950s, India’s share in the world trade was 1.78% which was decline to 0.59% in 1990 and continues to remain around 0.60% till now. India’s share in world exports was 0.8% in 2006.
A. Composition of India’s Exports Read the rest of this entry →
1 Give a brief overview of India’s foreign trade since independence.
Answer : India has formal diplomatic relations with most nations; it is the world’s second most populous country, the world’s most-populous democracy and one of the fastest growing major economies. With the world’s eighth largest military expenditure, third largest armed force, tenth largest economy by nominal rates and third largest economy in terms of purchasing power parity, India is a regional power,a nascent great power and a potential superpower. India’s growing international influence gives it a prominent voice in global affairs. The Economist magazine argues, however, that underinvestment in Read the rest of this entry →
4 Write short notes on:
a) Letter of credit
Answer : A letter of credit is a promise to pay. Banks issue letters of credit as a way to ensure sellers (and sometimes even buyers) that they will get paid as long as they do what they’ve agreed to do.
Letters of credit are common in international trade, but they are also used in domestic transactions. Either way, a bank acts as an uninterested party between buyer and seller and guarantees that a payment will be made if certain conditions are met.
The concept of a letter of credit can be Read the rest of this entry →
6 What are the modes of settlement of disputes in international business? Discuss.
Answer : Chapter VI of the UN Charter lists the following methods of peaceful settlement of disputes: negotiation, enquiry, mediation, conciliation, arbitration, judicial settlement, resort to regional agencies or arrangements, or other peaceful means of their own choice.
Litigation and arbitration are both considered to be judicial as opposed to political means of settlement because their results are both legally binding. The terms of arbitration are agreed on in advance either through an ad hoc agreement or a
5 Discuss the rights of an unpaid seller. What are the remedies available to the buyer against seller for breach of contract?
Answer : Broadly speaking, rights of an unpaid seller may be divided under two heads:
1. Right against the goods.
2. Right against the buyer personally.
I. Rights of unpaid seller against the goods
(a) When property in the goods has passed :
1. Right of Lien (Sees. 47 to 49): Read the rest of this entry →
3 Discuss the general principles of the Law of Contract. What is an agreement?
Answer : Contract: An agreement between two or more parties to perform or to refrain from some act now or in the future. A legally enforceable agreement.
Requisites for Contract Formation (Elements)
– Agreement: One party must offer to enter into an agreement, and the other party must accept the terms of the offer
– Consideration: Something of value received or promised, to convince a party to agree to the deal;
– Contractual Capacity/
4 Write short notes on:
a) Letter of credit
Answer : A letter of credit is a promise to pay. Banks issue letters of credit as a way to ensure sellers (and sometimes even buyers) that they will get paid as long as they do what they’ve agreed to do.
Letters of credit are common in international trade, but they are also used in domestic transactions. Either way, a bank acts as an uninterested party between buyer and seller and guarantees that a payment will be made if certain conditions are met.
2 Explain the various incoterms involved in international contract.
Answer : International trade contracts and Incoterms
Different countries have different business cultures and languages. It’s a good idea to make sure you have a clear written contract to minimise the risk of misunderstandings.
The contract should set out where the goods are being delivered. It should cover who is responsible for every stage of the journey, including customs clearance, and what insurance is required. It should also make it clear who pays for each different cost.
1 Explain PEST analysis. How is it used in international business?
Answer : The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. A PEST analysis is a business measurement tool. PEST is an acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit. The PEST analysis headings are a framework for reviewing a situation, and can also, like SWOT analysis, and Porter’s Five Forces model, be used to review a strategy or position, direction of a Read the rest of this entry →
6 What is custom duty? Discuss its types.
Answer : n economics, a duty is a kind of tax, often associated with customs, levied by a state. The term is often used to describe a tax on certain items purchased abroad.Properly, a duty differs from a tax in being levied on specific commodities, financial transactions, estates, etc., and not on individuals. Duties may be import duties, excise duties, stamp duties, death or succession duties, etc.; but income tax levied on a
5 Discuss the payment options available to exporter and importer.
Answer : Consignment Purchase
Consignment purchase terms can be the most beneficial method of payment for the importer. In this method of purchase, importer makes the payment only once the goods or imported items are sold to the end user. In case of no selling, the same item is returned to the foreign supplier. Consignment purchase is considered the most risky and time taking method of payment for the exporter.
4 Write short notes on:
a) Export credit guarantee corporation
Answer : Export Credit Guarantee Corporation is a central government undertaking body to provide credit guarantee on the default of payments by the buyer. It works as an insurance firm who guarantees export payment, if the buyer defaults in making payment.
Procedures with ECGC to cover insurance:
Once after finalizing the order, the buyer execute a purchase order to the seller with the terms and conditions as agreed by both. The purchase order should contain full details of buyer and buyer’s bank account details. The exporter approaches Export Guarantee Corporation to get approval on the buyer with amount of limit. Here, the ECGC
b Foreign exchange risk
Answer : Foreign exchange risk is the risk to the value of one’s assets when it is valued in another currency. The exchange rate of a currency to another may be volatile. It is this change in value of the currency that gives rise to foreign exchange risk. A depreciation in the currency in which your assets are denominated will result in a lower Read the rest of this entry →
3. Advance Against Export Bills Sent on Collection Basis
Bills can only be sent on collection basis, if the bills drawn under LC have some discrepancies. Sometimes exporter requests the bill to be sent on the collection basis, anticipating the strengthening of foreign currency.
Banks may allow advance against these collection bills to an exporter with a concessional rates of interest depending upon the transit period in case of DP Bills and transit period plus usance period in case of usance bill. Read the rest of this entry →
2 What is the need for export finance in India? Write a short note on export financing facilities in India.
Answer : Need for export finance in India
Trade Finance is a specific topic within the financial services industry. It’s much different, for example, than commercial lending, mortgage lending or insurance. A product is sold and shipped overseas, therefore, it takes longer to get paid. Extra time and energy is required to make sure that buyers are reliable and creditworthy. Also, foreign buyers – just like domestic buyers – prefer to delay payment until they receive and resell the goods. Due Read the rest of this entry →
