New Non Convertible Debenture (NCD) isuue.

Are you looking for fixed income from interest?

You might be aware about Non Convertible Debenture (NCD). So let’s talk about new coming NCD in market.

Here I am trying to give you maximum useful details about NCD but it’s just factual data there is no recommendation or no opinion express by me for purchasing any of this NCD.

You have to analyze the details and have to choose which option is perfect for you.

First:- JM Financial Credit Solution Ltd                                 

 

Issue Opening Date: 28th May, 2018

Issue Closer Date    : 20th June, 2018

Application: Must be in Demate form not available in physical form.

Rating:

Agency	Rating	Outlook	Interpretation
ICRA	AAA	Stable	Low Risk
IND	AAA	Stable	Low Risk

Minimum Amount of Application is Rs. 10,000.00 (10 Debenture of Rs.1000.00 each)

Interest and Period: As define below.

Class / Series	I	II	III	IV	V	VI
Value Per NCD (INR)	1000	1000	1000	1000	1000	1000
Minimum Amount Required (INR)	10000	10000	10000	10000	10000	10000
Minimum NCD Required (No.)	10	10	10	10	10	10
Issue Price Per NCD (INR)	1000	1000	1000	1000	1000	1000
Frequency of Interest Payment	Annual	Cumulative	Annual	Monthly	Annual	Monthly
Period	38 Month	38 Month	60 Month	60 Month	120 Month	120 Month
Effective Yield (Per annum)	9.26%	9.24%	9.49%	9.49%	9.74%	9.74%

Second:- DEWAN HOUSING FINANCE CORPORATION LIMITED  [HDFC]

Opening Date: 22nd May, 2018

Issue Closer Date    : 4th June, 2018

Application: Demate form or Physical form.

Rating:

Agency	Rating	Outlook	Interpretation
CARE	AAA	Stable	Low Risk
BWR	AAA	Stable	Low Risk

Minimum Amount of Application is Rs. 10,000.00 (10 Debenture of Rs.1000.00 each)

Interest and Period: As define below.

For Category I & II (“QIBs”) / (“Corporates”)

Class / Series	I	II	III	IV	V	VI	VII**
Value Per NCD (INR)	1000	1000	1000	1000	1000	1000	1000
Minimum Amount Required (INR)	10000	10000	10000	10000	10000	10000	10000
Minimum NCD Required (No.)	10	10	10	10	10	10	10
Issue Price Per NCD (INR)	1000	1000	1000	1000	1000	1000	1000
Frequency of Interest Payment	Annual	Annual	Annual	Annual	Monthly	Monthly	Annual
Period	36 Month	60 Month	84 Month	120 Month	120 Month	60 Month	36 Month
Interest Type	Fixed	Fixed	Fixed	Fixed	Fixed	Fixed	Floting
Effective Yield (Per annum)	8.90%	9.00%	9.00%	9.00%	8.90%	9.00%	MIBOR + 2.16%

For Category III (“High Networth Individuals”) @ #

Class / Series	I	II	III	IV	V	VI	VII**
Value Per NCD (INR)	1000	1000	1000	1000	1000	1000	1000
Minimum Amount Required (INR)	10000	10000	10000	10000	10000	10000	10000
Minimum NCD Required (No.)	10	10	10	10	10	10	10
Issue Price Per NCD (INR)	1000	1000	1000	1000	1000	1000	1000
Frequency of Interest Payment	Annual	Annual	Annual	Annual	Monthly	Monthly	Annual
Period	36 Month	60 Month	84 Month	120 Month	120 Month	60 Month	36 Month
Interest Type	Fixed	Fixed	Fixed	Fixed	Fixed	Fixed	Floting
Effective Yield (Per annum)	8.90%	8.90%	8.90%	8.90%	8.90%	8.90%	MIBOR + 2.16%

For Category IV (“Retail Individual Investors”) @ #

Class / Series	I	II	III	IV	V	VI	VII**
Value Per NCD (INR)	1000	1000	1000	1000	1000	1000	1000
Minimum Amount Required (INR)	10000	10000	10000	10000	10000	10000	10000
Minimum NCD Required (No.)	10	10	10	10	10	10	10
Issue Price Per NCD (INR)	1000	1000	1000	1000	1000	1000	1000
Frequency of Interest Payment	Annual	Annual	Annual	Annual	Monthly	Monthly	Annual
Period	36 Month	60 Month	84 Month	120 Month	120 Month	60 Month	36 Month
Interest Type	Fixed	Fixed	Fixed	Fixed	Fixed	Fixed	Floting
Effective Yield (Per annum)	8.90%	9.00%	9.00%	9.10%	8.90%	9.00%	MIBOR + 2.16%

** Floating rates

            Benchmark MIBOR (as defined in Tranche 1 Prospectus) as Reference Overnight MIBOR published by FBIL computed on an annualized basis. Subject to reset annually based on Overnight MIBOR benchmark rates.

@ Incentive to senior citizens

Category III and Category IV Investors in the proposed Tranche 1 Issue who are senior citizens on the Deemed Date of Allotment shall be eligible for an additional incentive of 0.10% p.a. provided the NCDs issued under the proposed Tranche 1 Issue are continued to be held by such investors under Category III and Category IV on the relevant Record Date applicable for payment of respective coupons. This incentive shall be applicable on an amount not exceeding initial subscription amount.

# Loyalty additions

Category III and Category IV Investors in the proposed Tranche 1 Issue, who are initial allottees as on the Deemed Date of Allotment, shall be eligible for a one-time additional incentive of 0.50%, 0.70%, 1.00% and 0.50% for Series II, Series III, Series IV and Series VI respectively, payable along with last interest payment, provided the NCDs under Series II, Series III, Series IV and Series VI, as applicable, are held by such investors under Category III and Category IV on the relevant Record Date, for all interest payments including the last interest payment. This incentive shall be applicable on an amount not exceeding initial subscription amount.

I hope you can make decision based on above data provided.

Thanks.

Reference: JM Financial Services

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” – Warren Buffett”

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As i promised, I am here to explain each part of Financial Statement in details, so let’s start.

The income statement

Income statement, we already known it as “Profit & Loss Account”.

The income statement is an essential part of the financial statements that an organization releases. The income statement presents the financial results of a business for a stated period of time. The statement quantifies the amount of revenue generated and expenses incurred by an organization, as well as any resulting net profit or loss.

The income statement may be presented by itself on a single page, or it may be combined with other comprehensive income information. In the latter case, the report format is called a statement of comprehensive income.

There is different format to present Income Statement globally, but majorly following format as below:

Basic points that you need to kept in mind before analyzing statement is:

• History of entity, whose financial statement you want to analyse.
• Basic understanding of Accounting Standers followed by entity such as IFRS, Ind As, etc.
• Basic understanding of Main function / Service / Product of Entity.
• Basic understanding of Taxation Laws of that country in which such financial statement published.
• basic understanding of market share of company in total market.
• and such other thing as you required to know from that analysis.

The Statement of Income basically shows you the performance of entity in specified period. You will get to know that hoe much sales made by company and what is the gross profit from operation and also net profit after deducting Financial expenditures. Income statement mainly shows, Revenue, Cost of Production / Service, Other related cost, Net Profit, Depreciation, Taxation Cost and Earning Per Share.

We will continue our discussion on this Financial Statement.

Thanks.

What is “The FInancial Statement”?

What is “The Financial Statement” ?

 

 

 

Financial Statement if Formal Report of Financial Performance, issued by every entity at every specific period like Quarterly or yearly summary of performance by entity.

 

Financial Statement normally covered following statement/report:

• Income Statement (Profit & Loss Account)
• Cash Flow Statement
• Statement of Financial Position (Balance Sheet)
• Statement of Change in Equity.

This statements normally prepared by the company by following IFRS or GAPPs.

 

Let’s Understood each statement in the brief

 

Income Statement (Profit & Loss Account)

The income statement covers a specific period, which is a year for annual financial statements and a quarter for quarterly financial statements. The income statement provides an overview of revenues, expenses, net income and earnings per share. It usually provides two years of data for comparison.

 

 

Cash Flow Statement

The cash flow statement actually shows us how much company earning hard money, by different activities such as Operating Activity, Investing Activity & Financial Activity. Operating activities include cash flows made from regular business operations. Investing activities include cash flows due to the buying and selling of assets such as real estate and equipment. Financing activities include cash flows from debt and equity. This is where analysts can also find the amount of dividends paid and/or dollar value of shares repurchased

As Income statement mostly prepares on mercantile method, it can not show the actual cash profit earn by the company. Because of that reason and broad understanding of actual cash inflow Cash Flow statement required.

There are two methods to prepare cash flow statement

A) Direct Method

B) Indirect Method

 

Mainly companies following IFRS and GAAPs due to that all companies required to prepare cash flow in Indirect Method.

In this method Cash Flow statement show as a Reconciliation of Profit as per Income Statement and Cash Balance in Statement of Financial Position.

 

 

 

Statement of Financial Position (Balance Sheet)

The balance sheet provides an overview of assets, liabilities and stockholders’ equity as in a summary form. The date at the top of the balance sheet tells you the position as on that date, which is generally the end of the Financial year.

The balance sheet equation is

Assets = liabilities + stockholders’ equity

 

Because assets are paid for with either liabilities, such as debt, or stockholders’ equity, such as retained earnings and additional paid-in capital. Assets are listed on the balance sheet in order of liquidity. Liabilities are listed in the order in which they will be paid. Short-term or current liabilities are expected to be paid within the year, while long-term or noncurrent liabilities are debts expected to be paid after one year.

 

Statement of Change in Equity.

A Statement of changes in equity and similarly the statement of changes in owner’s equity for a sole trader, statement of changes in partners’ equity for a partnership, statement of changes in Shareholders’ equity for a company is one of the four basic financial statement and also mandatory in IFRS and GAAPs.

 

The statement explains the changes in a company’s Share Capital, accumulated reserves and retained earnings over the reporting period. It breaks down changes in the owners’ interest in the organization, and in the application of retained profit or surplus from one accounting period to the next. Line items typically include profits or losses from operations, dividends paid, issue or redemption of shares, revaluation reserve, and any other items charged or credited to accumulated other comprehensive income. It also includes the Non-Controlling Interest attributable to other individuals and organizations.

The statement is expected under the generally accepted accounting principles and explains the owners’ equity shown on the balance sheet,

where: owners’ equity = assets − liabilities

 

 

This is the just overview of Financial Statement. If you want to know more about this just wait for my next update I’ll try to explain each Statement in detail with proper explanation and example as per IFRS norms.

 

Thank You.

Gaurang Jani.