Potential Problems with Performance Appraisals free essay sample

This paper takes a gander at the inborn issues of execution examinations and offers approaches to maintain a strategic distance from them. This paper analyzes the utilization of execution evaluations in the working environment. The three structure squares of execution examination are attribute based, social based, and rate based, all offer The creator assesses these three strategies, and how they are influenced by the propensities for the bosses directing evaluations. From the paper: An association ought to have the option to show their managers the best possible strategies for rating and having the evaluations executed with high moral thought. ?Supervisors, just as, subordinates, are worried about the legislative issues and absence of reasonable treatment, genuineness, and honesty inside an exhibition audit? (Axline, 1996, 44). To give an exact portrayal of the presentation a worker achieves two things ought to be finished. One is that administration ought to require appraisers who give helpless appraisals to archive a framework methodology for improving execution as well as start end. We will compose a custom exposition test on Possible Problems with Performance Appraisals or on the other hand any comparative theme explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page

Role of Social Worker in Non-Profit Long Term Care

A few examinations have featured the effectiveness of benefit situated associations contrasted with non-benefit associations. In the nursing homes or long haul care office as well, this is no exemption, where the benefit driven homes are believed to be in fact and financially effective than the non-benefit offices. The activity of the non-benefit homes is coordinated to guaranteeing that incomes and expenses are generally equivalent. The non-benefit nursing homes, run by government, strict bodies and even by private generous affiliations are not genuinely ordered for their exhibition and quality, and are to a great extent arranged together (Knox, Blankmeyer and Stutzman).Research done into staffing levels of benefit and non-benefit nursing homes notwithstanding, show that nursing homes in the non-benefit part have higher staffing levels, contrasted with benefit situated nursing associations. Writing on nursing homes in the US show that non-benefit care offices have higher number of d irect consideration staff and lower staff turnover rates. It ought to be noted here that most of nursing homes in the US are benefit arranged while in Canada, the dominant part are non-benefit care homes (Margaret J et al., 2005).Social specialists in social insurance have tended to the issues and circumstances related with diseases, seeing things in the greater viewpoint, while likewise tending to the quick concerns. The biggest territory of center in social work is maybe in the wellbeing field. Social specialists have played out their normal or required jobs, and have likewise brought issues to light among other medicinal services experts to look past ailment or sickness of the patient; into the mental and social parts of the illness and its treatment (Dhooper, 1997).The duties related with social work in long haul nursing homesâ include undertakings with patients and their families, both inside and outside the emergency clinic. Most social specialists in medical clinics are liab le for capacities like high hazard screening, social and mental appraisals, facilitated tolerant consideration, release arranging and follow up.In long haul care offices, the social laborer is required to know about the customary and non conventional social work inclusion and their jobs, and fittingly look at the most reasonable application. The social laborers survey the proof base efficiently and as needs be create conventions and proposals for training. They support scholastic and practice associations and attempt to recognize comparable regions of worry, with their clinical colleagues.The social specialists play out a few jobs, even past that normal of a social assistance laborer. Anyway there is no proper profile of the undertakings related with social laborer in nursing home consideration. The law and administrative overseeing are confined to discovering the nearness and nonattendance of the social laborer. There is no accreditation or acknowledgment procedure to assess the co mmitments of the social specialist especially in the non-benefit nursing homes.An significant part of social work in wellbeing setting is evaluation, including psychosocial appraisal. Customer issues should be evaluated to start treatment intercession, independent of the sickness or the individuals. Appraisal helps in social event, investigating and assessing significant data dependent on which suitable treatment methodologies are executed. In some cases the social laborer might be required to support atâ homes of customers. Meeting customers at home, especially the older ones, offers a casual environment and strengthens to the customer that the person in question is bolstered and isn't disregarded (Mellor and Solomon, 1996).Use of client’s first name, embracing, tolerating some tea are all piece of an expert lead of a social specialist. The social specialist is additionally tried to address psychosocial needs in nursing homes, to treat psychological well-being issues. The s ocial work provider’s point of view in diagnosing and rewarding tension, dementia and despondency is viewed as vital. Through fitting in-home mediations, social work suppliers even find out incapable analysis and conveyance of unseemly consideration.  They address a few issues with social pertinence like relationship misfortune, change in accordance with condition, terminal consideration etc.In the non-crisis nursing home confirmations, social work staff do the psychosocial appraisal of the customer during the underlying contact. In view of this appraisal, the degree of required social work contribution, readiness of social work action and release plans are settled. This appraisal additionally denotes the start of the patient-social specialist relationship. The social laborer may now and again be required to caution different doctors on existing psychosocial issues, which they ought to consider before clinical interventions.Here the social specialist must guarantee that pat ient subtleties or clinical history are not penetrated or abused by anybody approaching it. Preadmission screenings by social specialists can decrease undesirable readmissions while likewise lessening the stay in nursing homes. Release arranging might be associated with numerous moral issues or even legitimate issues for the social specialist. The social specialist has a urgent job in arranging struggle betweenâ patient desires and nursing home commitments. At the point when patients with next to no expectation of recuperation or irreversible conditions are released, they and their families consider the nursing home to have relinquished them and experience lost expectation. Here the social specialist, endeavors to change this discernment by getting ready for the future through issue solving.The job of social laborer in non-benefit long haul care is exceptionally various from being a psychotherapist, social work advisor and an expert on psychosocial issues. They help customer monstr ously in their change to and from long haul care. They partner seniors and families to network offices and administrations through suitable expediting, cause and needs advocacy.They help in arranging long haul care with the customer and their family and resolve issues in money, lawful and social necessities. In care arranging, the social specialist organization needs to form plans thinking about the courses of action and psychosocial support for more established people. The plans, especially long haul care plans must be accommodative of any physical or intellectual changes, as and when it arises.Social laborers should be insightful to acknowledge and regard the way that customers, especially more established customers in long haul care reserve the privilege to pick or choose matters relating to their treatment (Vourlekis, et. al, 2005). Social laborers likewise should be aware of the moral issues emerging in their work with more seasoned clients.Long term care isn't simply limited t o the minding of old individuals. Long haul care can be related with any age, as even with youngsters having long haul wellbeing implications.The administrations gave by social specialists are differing and is related with both, a wellbeing point of view and a social viewpoint. The nature of conveyance for the wellbeing factor is passed judgment on dependent on specialized parts of care like treatment results and assessment of care process. The nature of social administrations gave is made a decision about dependent on the supposition and impression of the clients. Rather than intense consideration which is related to reclamation of ordinary wellbeing, long haul care is more related in smothering or forestalling further decrease in wellbeing condition or progress of incapacity (Gooloo, Wunderlich, Kohler, 2001). At some point individuals would adjust to beneficiary handicaps and unfriendly wellbeing conditions and may even start to rely less upon social or clinical help for an impre ssively extensive stretch of time.The job of social laborer in the non-benefit long haul care is massive and can't be neglected. They are engaged with all parts of patient consideration from evaluation to release, aside from guaranteeing their social prosperity. Given the pattern in present day medication, where more current and complex medicines increment life length, the number of inhabitants in old individuals has been expanding fundamentally, and all the more older individuals are probably going to look for nursing care for different reasons. Additionally with more up to date maladies, related with creating ways of life, food propensities, and condition; individuals are probably going to look for progressively clinical intercession for eccentric infections. Accordingly individuals over all ages and foundations looking for clinical intercession would have increasingly social ramifications and social pertinence, depending more on the social laborer to deliver.REFERENCESKnox K.J., Blankmeyer E.C and Stutzman J.R., (2006) Comparative Performance and Quality among Nonprofit Nursing Facilities in Texas, Nonprofit and Voluntary Sector Quarterly. Sage Publications [Electronic Version] downloaded on tenth May 2008 from http://nvs.sagepub.com/cgi/republish/35/4/631Margaret J et al., (2005) Staffing levels in not-for-benefit and for-benefit long haul care offices: Does sort of possession matter? Canadian Medical Association Journal, March 1, 2005 [Electronic Version] downloaded on tenth May 2008 from http://www.cmaj.ca/cgi/content/full/172/5/645 Vourlekis B, Zlotnik J.L, Simons K., (2005) Institute for the headway of Social Work Research, Evaluating Social Work Services in Nursing Homes: Toward Quality Psychosocial Care [Electronic Version] downloaded on eleventh May 2008 from http://www.charityadvantage.com/iaswr/IASWRNursingHome.pdf Dhooper S.S., (1997) Social Work in Health Care in the 21st Century. Sage Publications, London Mellor J and Solomon R., (1996) Geriatr ic Social Work Education Haworth Press. Gooloo S, Wunderlich, Kohler P.O., (Eds) (2001) Improving the Quality of Long-term Care, National Academies Press Job of Social Worker in Non-Profit Long Term Care A few examinations have featured the productivity of benefit situated associations contrasted with non-benefit associations. In the nursing homes or long haul care office as well, this is no special case, where the benefit driven homes are believed to be in fact and financially proficient than

Stippling - Art Definition

Texturing - Art Definition As a transitive verb,â the demonstration of texturing includes covering a zone with specks. What comes option to mind is an uncontrollably tedious strategy, finished with a specialized pen and ink (generally dark), in which a picture is drawn dab by speck by dab. (One may likewise texture glass, an etching plate, a blanket, or even an inside divider.) The subsequent picture contains no lines. It is an assortment of dabs, deliberately positioned to propose structures, shapes, complexity, and profundity. It is left to the watchers eye to finish the image a recommendation which only sometimes fizzles. Texturing is additionally the manual harbinger of Benday specks and halftones. (For you younguns out there, these were realistic picture devices utilized before the appearance of the PC pixel.) Comparable Technique Pointillism is a nearby relative of texturing, in which the craftsman, utilizing brushes and various shades of paints, makes a whole organization out of specks. As a thing in this occurrence, texturing is the thing that one sees, and is the final product of somebody utilizing texturing as an action word.

Comorbid Manner In Context To A Case Study-Myassignmenthelp.Com

Question: Examine About The Comorbid Manner In Context To A Case Study? Answer: Presentation The report expects to talk about the pathophysiology of various constant complex infections happening in a comorbid way in setting to a contextual investigation. The concerned contextual investigation is of a multi year old woman, Angela who is enduring with three distinctive comorbid condition specifically Chronic Obstructive Pulmonary Disorder, hypertension and joint pain. We initially talk about the pathophysiology of COPD and hypertension and afterward proceed onward the characterizing certain terms, for example, comorbidity, chronicity and unpredictability of sicknesses all in all lastly set up a likely connection between the comorbid conditions. Pathophysiology and related clinical sign of COPD and Hypertension Incessant Obstructive Pulmonary Disorder is a fiery issue of the lungs that continuously develops and prompts clinical signs, for example, constant bronchitis, emphysema and showcasing of the aviation route section. Overall investigations have uncovered the confusion to be the third biggest reason for mortality making it one of the emanant illnesses requiring the board in the ongoing future. The most powerful hazard factors distinguished are introduction to tobacco. Indoor and open air poisons, hereditary qualities, sexual orientation, financial status and decreased lung volumes because of certain beforehand happening ailments. There is an expand pathophysiology related with the sickness that has been concentrated generally contemplated. Various provocative cells are related with COPD including CD8+, T-lymphocytes, B-cells, and macrophages. At the point when actuated by some remote particles provocative falls are enacted in these cells in the long run creating incendiary go betweens, cytokines, chemokines and chemoattractants, for example, interferon gamma, tumor putrefaction factor-alpha, fibrinogen, C-receptive protein, network metalloproteinases, etc (Zakynthinos, Daniil, Papanikolaou Makris, 2011). These go betweens continue the irritation prompting cut off tissue harm to the lungs in the long run impeding wind current. Further neurotic changes can be cured by lopsidedness in oxidant-cell reinforcement levels bringing about oxidative pressure, which may prompt inactivation of antiproteases and surfactants, hyper emission of bodily fluid, sub-epithelial fibrosis, bronchoconstriction and film lipid peroxidation. There are three significant clinical indications of the fundamental cell occasions. Flexible backlash weight and development of air in bronchioles principally rely upon elastin proteins, which experience proteolysis in COPD patients. Thus, wind stream in the lungs is decreased because of narrowing of the section and air-catching happens. Drawn out irr itation causes development of the bodily fluid organs covering the internal dividers of the lungs and disturbance of the mucocilliary transport framework dependable of clearing bodily fluid from the aviation routes, coming about aggregately into blocking wind stream because of the nearness of abundance bodily fluid (Higginson, 2010). Further, narrowing of aviation routes is brought about by fibrotic redesigning, which expands aviation route opposition. Elements causing basic redesigning are develop of scar tissue, peribronchial fibrosis and overproduction of epithelial cells coating the aviation routes. In conclusion, surface region of the alveoli is generously decreased because of alveolar and bronchiolar epithelial cell apoptosis causing diminished vaporous trade and upset ventilation-flow, taking after histological highlights of Emphysema (Brashier Kodgule, 2012). Hypertension is the drawn out incessant height of the circulatory strain that may in the end result into organ harm and expanded mortality. Significant disarranges caused because of hypertension are coronary illness, renal disappointment, and cerebro-vascular infections. To consider the pathophysiology behind hypertension we first investigate the physiological components that control the circulatory strain in human body. Typical circulatory strain to a great extent relies upon the cardiovascular yield and the fringe vascular opposition of the little arterioles encompassed by smooth muscles. Drawn out centralization of the smooth muscles because of expanded degrees of intracellular calcium particle fixation may prompt thickening of the blood vessel dividers causing irreversible ascent in fringe opposition. It has been proposed that at first hypertension is brought about by expanded cardiovascular yield due expanded thoughtful movement; thusly to make up for expanded weight in the slen der bed fringe opposition is expanded. Renin-angiotensin framework is the most significant endocrine framework controlling pulse. Renin discharged from the juxtaglomerular mechanical assembly of the kidney changes over angiotensinogen into angiotensin I which is quickly changed over to dynamic angiotensin II in the lungs. Angiotensin II is a strong vasoconstrictor and furthermore incites arrival of Aldosterone which further raises circulatory strain by water and sodium maintenance (Delacroix, Chokka Worthley, 2014). In patients with hypertension there is a diminished affectability to the baroreceptors and the baroreflexes are upset to changed augmentations concealment the impact of the renin-angiotensin framework. In conclusion, incitement of the thoughtful sensory system can cause both choking and dilatation of the arteriolar dividers. Expanded arrival of norepinephrine and expanded fringe affectability to the equivalent has been broadly seen in patients with hypertension. In any c ase, examines have demonstrated that hypertension results from the connection of thoughtful and renin-angiotensin framework with other related factors, for example, sodium and water maintenance and activity of certain different hormones like eicosanoids, atrial natriuretic peptide, and nitric oxide, etc. (Safar O'Rourke, 2012) As a result of expanded vascular solidness and fringe vascular opposition the heap on the left ventricle is significantly expanded causing left ventricular hypertrophy and diastolic brokenness. Ventricular dystrophy may prompt extreme cardiovascular issue and unexpected passings in specific cases. Ceaseless hypertension frequently prompts myocardial infraction and myocardial ischemia which further disturbs typical working of the heart. Strokes are the most well-known clinical appearances of incessant hypertension for the most part because of apoplexy, thrombo-embolism and intracranial drain (Humbert, 2010). Be that as it may, intense renal sicknesses are analy zed in later phases of the hypertension and its movement is nearly more slow. Co-horribleness, Chronicity and Complexity Comorbidity is characterized as the event of at least two particular issue in an equivalent patient either simultaneously or in a specific consecutive example. Moreover it suggests the connection between the illnesses, which regularly brings about condition a lot of more terrible than that brought about by a solitary ailment. Nonetheless, the suitable definition for the term comorbidity is broadly contended. Albeit all definition depend on a solitary idea of event of more than one unmistakable clinical condition in a solitary patient, differentiation are frequently made dependent on the idea of the wellbeing state of the patient, hugeness of the co-happening condition, the time range and grouping of the conditions and the patient intricacy (Parekh Barton, 2010). Clinical administration and medicinal services costs are frequently higher for patients experiencing comorbid ailments. A few basic causal connections can be available that prompts comorbidity in a patient. A confusion might be straightforwardly liable for causing another infected condition. Aberrant impacts of one issue on another may cause comorbidity. Further, one issue can be related with certain hazard variables of another turmoil and in conclusion comorbid infections might be caused because of regular causal components for them two. In basic terms interminable ailments are characterized as those that keep going on a drawn out premise. Interminable condition are regularly more mind boggling than intense ones in that they are still less comprehended and don't carefully follow the reason impact relationship. It regularly includes a different complex factors that meet up to cause eccentric unfriendly consequences for the patient. Further, social, social and natural elements assume a critical job in indication and treatment of the unhealthy condition. It has been contended that achievement in the clinical and pharmacological segments have expanded future by decreasing mortality however have neglected to oversee constant maladies proficiently, on the opposite has expanded defenselessness towards mishaps and hazard factors for interminable sickness (Allotey, Reidpath, Yasin, Chan Aikins, 2011). Constant sicknesses require a delayed time of treatment mediation and clinical management. Alongside long haul clinical oversi ght, the board of incessant ailment may rely upon a few different factors, for example, sociocultural elements, openness of human services administrations, social perspectives on the ailment, legislative approaches and projects identified with the infected condition, and the financial status of the patient. Complex sicknesses are those which are brought about by a total impact of a few hereditary, natural and way of life factors that are yet to be distinguished particularly. As such infections don't show any clear example or legacy they are hard to analyze and treat. The contributing components of complex sickness are for the most part non-perceivable and happen in a comorbid way which makes it unrealistic to force a solitary factor as an ailment causing one. Then again unpredictability of a ceaseless sickness is characterized as different morbidities in a patient simultaneously. It regularly requires individual focused consideration including more than one medicinal services supplier. The higher the quantity of morbidities related, higher is the unpredictability of the patient. Every multifaceted nature requests a remarkable arrangement of requirements and restrictions as per which one of a kind intercession programs must be structured. Self-administration and social help assumes a sig nificant job in handling such illnesses. Chronicity and Complexity of patients condition

Fast Paced Financial Term Paper Example | Topics and Well Written Essays - 2000 words

Quick Paced Financial - Term Paper Example Intended to work with existing location book measures and improve similarity between generally contrasting frameworks, the ldap standard was received by the ietf in 1997 and now shapes the premise of many white-page catalogs on the web. It has additionally been consolidated straightforwardly into some product programs and working frameworks, making it conceivable to discover email addresses without visiting a registry site† (Ldap. 2003). LDAP was built up after X.500 convention, which was additionally an index administration standard convention. In any case, X.500 consolidated high overhead and ensuing dillydallying reaction because of overwhelming X.500 customers. Subsequently, remembering the overheads of X.500 moderate reaction, Light Weight Directory Access Protocol (LDAP) was made. LDAP is executed for both Microsoft Windows and Linux/UNIX customers. So as to make LDAP operational for Linux/UNIX, windows dynamic index setup is required. LDAP is capable regarding getting to catalog data because of reconciliation of a planned database. The engineering incorporates the security conventions including Kerberos that is characterized as â€Å"An get to control framework that was created at MIT during the 1980s. Gone over to the IETF for normalization in 2003, it was intended to work in both little organizations and enormous ventures with different areas and verification servers. The Kerberos idea utilizes an ace ticket acquired at logon, which is utilized to get extra administration tickets when a specific asset is required† (Gallaher, Link, and Brent R. Rowe,). Kerberos gives verification and approval. In addition, LDAP administrations give, computerized impersonation of data to numerous workstations, giving transcending execution, excess and raised accessibility. So as to give versatility wile putting away information, extensible blueprints are consolidated. The conventions including Kerberos and LDAP are perfect to different framework stages becau se of normalization (Likewise capacity administrations). Notwithstanding, LDAP usage with merchant characterized registries are not effective with the Windows situations, bringing about administration of a few catalogs and store recognizable pieces of proof. Dynamic catalog is â€Å"an execution of LDAP index benefits by Microsoft for use in Windows conditions. Dynamic Directory permits executives to dole out big business wide approaches, convey projects to numerous PCs, and apply basic updates to a whole association. An Active Directory stores data and settings identifying with an association in a focal, sorted out, open database. Dynamic Directory systems can change from a little establishment with a couple hundred articles, to an enormous establishment with a great many objects† (Active Directory. 2007). Hardly any agendas are pertinent including the system availability testing and raising the Active catalog area useful level to Windows 2003. The business advantage concent rating on business coherence is additionally overseen productively, as the client profiles alongside touchy information is put away in brought together Active registry servers. In the event of a framework disappointment, or crash, information can be recouped from client profiles to another framework. In addition, absolute expense of possession is likewise diminished, as it very well may be designed and overseen by an incorporated area. Besides, powerful IT asset the board is done by means of the whole system that will give a

5 Ways Mentally Strong People Deal with Rejection

5 Ways Mentally Strong People Deal with Rejection Rejection is painful.It triggers a fountain of emotions. It is debilitating and discouraging. After rejection what feels natural is to get in your pajamas, close the shutters, cover yourself with a blanket, and never ever try to accomplish anything again.Can rejection lead to something good? Is there a path that leads from rejection to success?There are five stories in this article that tell us there is.Enjoy.LAW OF ATTRACTION. THE CASE OF JIM CARREY.Jim Carrey was born James Eugene Carrey in Canada back on January 17, 1962. His mother was a stay-at-home mom and his father was an accountant and a jazz musician who had a hard time keeping jobs and had a difficult time supporting his four children.When he was in high school, Jim was working 8-hour shifts as a janitor after the last school bell, feeling the effects on his grades, his morale and his health.The family even lived in a camper for a while, before Jim’s first stage appearance, in a stand-up club in Toronto, called ‘Yuk Yu k’. By his own account, he did not do that well with his first stand-up attempt. He was booed off stage. And that was the first greatest rejection in his life.Nevertheless, Jim continued performing in Yuk Yuk, perfecting his work, preparing for something greater.In 1980 he auditioned for the cast of Saturday Night Live, which ended up being was his second greatest rejection.By 1985 he was a high-school drop off, recently divorced and failed actor.Nevertheless, Jim Carrey never gave up to negative thinking. Later in his life he would be interviewed by Oprah Winfrey and would confess to her how he would drive up Mulholland Drive and have pretend conversations with directors and producers he admired. He would imagine them saying how much they appreciated his work and that would make him feel more determined.‘I had nothing at that time but it just made me feel better’, Carrey says.Later he would go on to write himself a fake check for $10 million. For ‘acting services rendered†™. He gave himself three years to substitute the fake check for a real one, from a movie. The check deteriorated and deteriorated in his wallet, until one day, Carrey would learn he would get a $10 million commission for his role in the comedy ‘Dumb and Dumber’.Today Carrey is one of the most beloved comedians of his time for his iconic roles in ‘Ace Ventura: Pet Detective’; the sequence, ‘Ace Ventura: When Nature Calls’; ‘The Mask’; for his role of The Joker in ‘Batman Forever’; for ‘Me, Myself Irene’; for ‘Bruce Almighty’; for the ‘Yes Man’ and others.How to react to rejection like Jim Carrey?Visualize yourself as being successful. Rejection is painful because you stop believing in yourself. Visualizing the successful version of you will help you change how you think of yourself. Subconsciously, you will get better ideas â€" Where can you be successful? What will make you successful? How do you look when you are successful? What does success look l ike to you?Work on your vision. Start looking the part. Maybe get a new, more professional looking suit. Put yourself in the situations you visualized yourself in â€" attend events and meetings, work on diversifying your contact list, get yourself out there.Quit dreaming and start planning. What else are you missing? Write down a step by step plan for what separates your reality from your vision of success. As Jim Carrey says, ‘That’s the thing. You can’t just visualize and go eat a sandwich.’Watch young but already accomplished Jim Carrey confess his life philosophy of wishful thinking to Oprah Winfrey: FOCUS. THE CASE OF J.K. ROWLING.Famously, the idea for Harry Potter first came to J.K. Rowling on a train ride from Manchester to London back in1990. She was overwhelmed by this interconnected world of a boy wizard who survived a tragic accident when he was young. As soon as the ideas hit her, she started writing and could never quite put the idea of Harry to rest ever since .However, less than a year later, on December 30, 1990 a great personal tragedy stroke J.K. After complications of Multiple Sclerosis and a tough battle with the disease of 10 years, her mother passed away.Rowling fell into a deep debilitating depression that kept her away from her work. Later she would base the character of the Dementors on that crushing feeling:‘Dementors are among the foulest creatures that walk this earth.’ she would write ‘They infest the darkest, filthiest places, they glory in decay and despair, they drain peace, hope, and happiness out of the air around them Get too near a Dementor and every good feeling, every happy memory will be sucked out of you. If it can, the Dementor will feed on you long enough to reduce you to something like itself soulless and evil. You will be left with nothing but the worst experiences of your life.’In an attempt to get away and try to focus on her work, J.K. Rowling moves to Portugal to teach English and to write in her free time.It turned out to be the wrong decision for her. She got married and had a daughter. But the marriage was unsuccessful. Rowing couldn’t make any progress with her writing. She went back to the UK.Broke, unaccomplished, and with another mouth to feed. She and her little girl had to survive off of government welfare. She had hit rock bottom. And in failure she found liberation. ‘Failure meant stripping away of the inessential. I stopped pretending to myself that I was anything other than what I was, and began to direct all my energy into finishing the only work that mattered to me.’She finished three chapters of her book and proposed it to the twelve greatest publishers in the United Kingdom. They all rejected her. But J.K. was no longer afraid of rejection and failure. She persevered.A small publishing company, Bloomsbury Publishing agreed to read the manuscript. After years of fighting for her idea, Harry Potter was published. The first edition was in a humble amount of 1000 books. And this is how to story started.Today more than 500 million Harry Potter books have been sold worldwide. There are audiobooks, movies, websites, conventions and a theme park based on the story.How to react to rejection like J.K.Rowling?Don’t give yourself to fear. Rejection has the power to liberate you. The worst has happened and you are alive, you are breathing. Gather your powers and go on. What doesn’t kill you makes you stronger.Strip your life from the inessential. What does success mean to you? Define your purpose better, make a plan. Do not allow distractions in your life.One rejection does not mean the end of the world. Explore all options. Can you go another way? Can you send another email? Can you turn to another authority?Believe in yourself. J.K.Rowling never let Harry go. Ever since that trip to London, she never gave up on the boy wizard. Through her depression, her failed marriage and her relying on welfare. She was not stopped by a mailbox full of rejections. And today the world knows his story, and hers.ADAPT. THE CASE OF STEVE JOBS.Steve was born in the United States, California, on February 24th, 1955. His parents had put him up for adoption. His family name, Jobs, coming from his adopted parents Paul and Clara Jobs. A lower middle class family.Growing up at Silicon Valley, Jobs would be surrounded by engineers in his neighborhood, always busy with some gadget in their garage in the weekends. Always working, not always achieving.There, at age 13, he met 18-year-old Stephen Wozniak, someone who would play a very important role later in his life. After a brief attempt and failure of studying Liberal Arts, Jobs went back to California and worked for the game company Atari, while growing closer to Woz.Wozniak, at that point, was attending the Homebrew Computer Club and was working towards building personal computer kits. Jobs thought it was a good idea to offer Woz’s product to software enthusiasts from the neighborhood who were eager to try and write software themselves. Together, the two started a little venture for that purpose, called Apple.Wozniak created the Apple II computer, a powerful system that would support color graphics. It was this prototype that helped Steve Jobs convince Mike Markkula to invest a quarter million dollars in Apple and set it on the path of greatness.Jobs was always focused on the competition, insisting to add Graphic User Interface and a mouse to the next Apple project, the Lisa computer, named after his daughter. His hot temper and his perfectionism got him kicked off the Lisa project. Which he did not take that well.He then took on another small project, called the Macintosh, adding most of the features he was seeing for the Lisa, but insisting the Mac was to be created very user friendly â€" ‘as easy to use as a toaster’.He and his team were antagonizing the teams working on the Apple II and Lisa, when the latter seemed to be heading towards failure. John Scul ley, whom Jobs had hired as an CEO was supporting the Macintosh.After a short success the sales of the Macintosh were plummeting, but Jobs refused to acknowledge that, he kept acting as the saving grace of Apple. He started acting out against Sculley, who had now withdrawn his support â€" trying to get him fired. Instead, the board of directors agreed it was Jobs who was toxic to the company.Steve Jobs was put in a position of no power in Apple and, powerless, resigned within a few months.‘At thirty, I was out. And very publicly out. What had been the focus of my entire adult life was gone. And it was devastating… I was a very public failure and I even thought about running away from the Valley. But something slowly came to dawn on me. I still loved what I did.‘Discouraged and at the same time full of himself, Jobs decided to incorporate a competing company that would specialize in higher education, despite Apple’s threats to sue. It was called NeXT. It was a good product bu t a failure nevertheless. It wasn’t selling.At that point Jobs felt disassociated from his work. He was losing his passion and he was focusing more on his new family. He decided to invest in the graphics division of George Lucas’s company. He accumulated a team. And created Pixar. in 1991, Disney signed with Pixar for making a full-feature computer-animated movie. Toy Story was born.The success of the movie allowed Steve Jobs to take the company public. The company he actually considered his ‘hobby’ and not his business made his net worth rise to over $1.5 billion â€" five times the money he had ever made at Apple in the 1980s.Jobs was rejuvenated. He took advantage of a CEO change in Apple and restored his place in the company by selling the NeXT software to Apple. And as of the following year, he would once again be Apple’s CEO.How to react to rejection like Steve Jobs?Take a good look on the inside. Recognize your failures and apologize about what you did wrong.Don’t lose your passion. Work towards what you love.Have faith your passion will lead you back to success. ‘Of course it was impossible to connect the dots looking forward’, says Jobs, ‘But it was very-very clear looking backwards… You have to trust the dots will somehow connect in your future. You have to trust in something… because believing that the dots will connect down the road will give you the confidence to follow your heart even when it leads you off the well-worn path. And that will make all the difference’Watch Steve Jobs’ Stanford Commencement speech. STAY AUTHENTIC. THE CASE OF ELLEN DEGENERESEllen Lee DeGeneres was born in Metairie, Louisiana on January 26, 1958 to the family of a speech therapist and an insurance agent. After finishing high school in Texas and a short attempt at following a Communications major, Ellen headed for the standup stage.Slowly but surely, she worked her way up to her first appearance on The Tonight Show Starring Johnny Carson in 1986 where she was noticed for her witty jokes, her great comedic timing and her original content.Ellen stroke a great success, landing her own sitcom on ABC called originally ‘These Friends of Mine’. It was later renamed to match her and her character’s name Ellen in 1994, after its first season.In April 1997 Ellen makes television history when she, through playing her character, comes out as gay as part of the sitcom plot, and as her public confession.The decision is deemed controversial and the ratings of the show go down until 1998 when the sitcom is dropped.‘I wasnt sure if I was going to work again’ â€" says Ellen, quoted here by the NY Daily News ‘and although I was out, I was still trying to alter myself â€" not dressing the way I wanted to dress or wearing my hair the way I wanted to…  I slowly gained the confidence to be authentic, and what Ive learned about other people is that they strive to be authentic, too. So whether they fully support me, love my lifestyle or love that Im married to a woman, I think they like that authenticity, and theyre drawn to it.In 2001 she comes back, via CBS. Ellen launched a new series, called The Ellen Show. Her talk show suffers from low ratings, too. And Ellen was cancelled. Again.It was only in 2003 that Ellen comes back in full capacity. The Ellen DeGeneres Show is now a success. With 15 Emmy Awards within the first three seasons, Ellen is becoming one of the most beloved talk show hosts fast, which led her to later host the Grammy Awards and the Oscars.How to react to rejection like Ellen DeGeneres?Never try to be someone else. You want to achieve success as yourself. Doing what you love, being who you are. Winning someone else’s game is not worth the hassle. Only by letting people know who you are authentically can you know if they approve of you or not.Build your self-image. Stay true to who you are. Share your opinions. Stand behind what you believe in. You will feel more confident and will find it easier to walk your path.Fight your battles. Today, Ellen DeGeneres is largely appreciated for being the first to talk the talk and walk the walk, taking a blow to her career because of the bravery of coming out. She paved the way for others, including, famously, Portia De Rossi, whom she inspired to come out, and who, later, became her wife.‘If this isnt an example of “It gets better” than I dont know what is… Time is a strange thing. I was at rock bottom and out of money, with no work in sight, but one step at a time, it gets better. It gets much better.’BELIEVE IN CHANGE FOR THE BETTER. THE CASE OF OPRAH WINFREYOprah Winfrey was born January 29, 1954 in Kosciusko, Mississippi, to the family of a maid and a coal miner. Her mother was a teenager and had an issue keeping jobs.Shortly after birth her mother abandoned her and left her to be raised by her grandmother. They lived in a bad neighborhood and Oprah was a victim of her circumstances. She was sexually abused as of young age by family members and family friends.During her childhood, Oprah was often left alone, which made her both very independent and very defiant against the adults whose care she was put in. Able to read and write the word of the Lord as of very young age, because of her religious grandmother, Oprah always knew she would be doing something involving speaking, or drama, as her career.Last year of high-school, Oprah was given a job reading the news on the radio. Her dream was on the path of coming true. With winning a public-speaking contest, Oprah found herself with scholarship to Tennessee State University. She majored in Speech Communications and Performing Arts.During college, Oprah was offered a job as a co-anchor on a CBS television station. Her strive to get out of Nashville took her to Maryland, to a job for which she sacrificed her graduation.She was hired as a reporter.And the job did not work out.Winfrey describes the experience as ‘being marred by sexual harassment , sexism and humiliation’. After several months of being the co-anchor she was fired and demoted to a position where she just had to read the morning headlines.‘Not all my memories of Baltimore are fond ones… But I do have fond memories of Baltimore, because it grew me into a real woman. I came in naive, unskilled, not really knowing anything about the business â€" or about life. And Baltimore grew me up.’In 1978, she became the host of a morning talk show called People Are Talking. And she knew that was it. That is what she wanted to do. ‘The Oprah Winfrey Show’ ran from September of 1985 to May of 2011 and changed television forever. Oprah became the richest African American of the 20th century. Today, Oprah has her OWN network.How to react to rejection like Oprah Winfrey?Don’t lose faith. Sometimes rejection comes to you for the better. When one door closes another one opens, showing you a better path to continue on.Rejection shapes you. It teaches you to attack and defend. It helps you get stronger and tougher. It teaches you lessons for the future.CONCLUSIONJim Carrey, J.K. Rowling, Steve Jobs, Ellen DeGeneres and Oprah Winfrey are all incredibly accomplished people. They all take on a path of success of their own. Going though hurdles. Beating challenges their own way. One common thing â€" none of them ever gave up.Rejection is NOT a necessary part of success. But having a healthy attitude towards failure is.You cannot be afraid. You have to be ready to take a risk. To crash and burn. To always be yourself. To try one more time.And trust that good days are ahead.

Non-banking financial institutions - Free Essay Example

OBJECTIVE OF THE PROJECT: To develop and understanding of the Non-Banking Financial Institutions (NBFIs) and their business operations in India. To do a detailed research on SREI Equipment Finance Private Limited, its market share and the SWOT analysis. To thoroughly review SREIs credit appraisal and credit management process. To understand the risk management process of the company. To gain a detailed knowledge of the parameters that affects various risks. To determine weightages and scores for designing and developing risk assessment model based on market forces for assessing SREIs Customers. . METHODOLOGY: In order to achieve the said objectives, will be to go through the entire NBFs history, thrust areas; growth opportunities, present scenario. This will be the ongoing process and will be done using internet, news and books. To understand the functioning of SREI pertaining to credit risk management and appraisal process followed for financing large corporates (risk exposures more than Rs.5 crores). Factual data, credit appraisal memorandum prepared by the company and the credit risk policy of the company will be referred in this regard. Then comes the technical part of conducting Balance Sheet Analysis, Ratio Analysis and Cash Flow Analysis. To propose a statistical credit rating model, data have been collected from credit officers and the relationship managers in the institution. Financial ratios were used to measure the strength of the customer. Score model for assessing risk to convert responses to scores. Weighted average method applied to assign appropriate importance to various parameters. LIMITATIONS OF THE STUDY: The study will only be focusing on the LARGE CORPORATES (risk exposure more than Rs.5 crores) not the retail and SME sectors of SREI. Study is on the basis of first-hand information collected from employees/head of the division of the company that might be incorrect or biased. Duration of the internship imparts the pressure of covering this vast spectrum in a limit period of 14 weeks. The accuracy of the Risk Assessing Model depends on the accuracy of information provided by the customer. The risk rating model doesnt take into the consideration where in the company doesnt follow the rules norms strictly. The relationships with the customers are given more importance. INDUSTRY ANALYSIS: Structure of Indias Financial Services Industry: The RBI, the central banking and monetary authority of India, is the central regulatory and supervisory authority for theIndian financial system. SEBI and IRDA regulate the capital markets and insurance sector, respectively. A variety offinancial intermediaries in the public and private sectors participate in Indias financial sector, including the following: Commercial banks; NBFCs; Specialised financial institutions like NABARD, EXIM Bank, SIDBI and TFCI; Securities brokers; Investment banks; Insurance companies; Mutual funds; and Venture capital. NON-BANKING FINANCIALCOMPANIES: Non-banking financial companies (NBFCs) are fast emerging as an important segment of Indian financial system. It is an heterogeneous group of institutions (other than commercial and co-operative banks) performing financial intermediation in a variety of ways, like accepting deposits, making loans and advances, leasing, hire purchase, etc. They raise funds from the public, directly or indirectly, and lend them to ultimate spenders. They advance loans to the various wholesale and retail traders, small-scale industries and self-employed persons. Thus, they have broadened and diversified the range of products and services offered by a financial sector. Gradually, they are being recognized as complementary to the banking sector due to their customer-oriented services; simplified procedures; attractive rates of return on deposits; flexibility and timeliness in meeting the credit needs of specified sectors; etc. The working and operations of NBFCs are regulated by the Reserve Bank of I ndia (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III B) and the directions issued by it under the Act. As per the RBI Act, a non-banking financial company is defined as:- (i) a financial institution which is a company; (ii) a non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; (iii) such other non-banking institution or class of such institutions, as the bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify. NBFCs VsBANKING SECTOR IN INDIA: Non-Banking Finance Companies (NBFCs) are an integral part of the countrys financial system complementing theservices of commercial banks. The main reason attributed to the growth of NBFCs is the comprehensive regulation of thebanking system. Other factors include higher level of customer orientation, lesser pre/post sanction requirements andhigher rates of interest on deposits being offered by NBFCs. NBFCs have traditionally been extending credit across various parts of the country through their geographical presence,with NBFCs being a supplier of credit to segments such as equipment leasing, hire purchase, and consumer finance. Theseare areas which warrant infusion of financing due to the existing demand-supply gap. NBFCs have been a more flexiblesource of financing and have been able to disburse funds to a gamut of client, from the local common man to a varietyof corporate client. NBFCs are also able to accelerate the pace of decision making to disburse funds, customise andta ilor their products according to the client needs and take on excess risks on their portfolio. NBFCs can be divided intodeposit taking NBFCs, i.e., which accept deposits from public and non-deposit taking NBFCs being those which do notaccept deposits from public. The activities carried out by NBFCs in India can be grouped as under The types of NBFCs registered with the RBI are:-  § Equipment leasing Company: is any financial institution whose principal business is that of leasing equipment or financing of such an activity.  § Hire-purchase Company:is any financial intermediary whose principal business relates to hire purchase transactions or financing of such transactions.  § Loan Company: means any financial institution whose principal business is that of providing finance, whether by making loans or advances or otherwise for any activity other than its own (excluding any equipment leasing or hire-purchase finance activity).  § Investment Company: is any financial intermediary whose principal business is that of buying and selling of securities. Now, these NBFCs have been reclassified into three categories:-  § Asset Finance Company (AFC)  § Investment Company (IC) and  § Loan Company (LC). Under this classification, AFC is defined as a financial institution whose principal business is that of financing the physical assets which support various productive/economic activities in the country. GOVERNMENT ROLE IN PROMOTING INFRASTRUCTURE FINANCE: Infrastructure is expected to be a key area of growth in a developing country like India. The Government has been activelypromoting the countrys infrastructure through a sustained focus on area like power, roads, ports and urbantransportation. Private sector participation through public private partnerships as well as privately funded projects isbeing encouraged in order to enable quick scale up of governments efforts and better management. As per PlanningCommissions estimates the investments in infrastructure during the Tenth Plan aggregated to Rs. 4, 52,900 crores whichis expected to increase to Rs. 11, 25,000 crores in the Eleventh Plan. The chart below describes the anticipated andestimated investments under the two plans respectively. PROJECTED INVESTMENT IN INFRASTRUCTURE in the 11th FIVE YEAR PLAN: COMPANY PROFILE: A started operation in 1989, Srei is a leading infrastructure focused private sector Non-Banking Financial Company (NBFC) in India. It is currently the only institution in India offering holistic infrastructure solutions financing, advisory services development. Milestones Achieved: 1989 Started operations and identified the infrastructure sector as its core Business area. 1992 Initial Public Offering with listing on all major stock exchanges. 1997 IFC, FMO DEG invested as strategic equity partners Promoters stake. 2002 Conceived Quippo, Indias first equipment bank. 2004 All India presence, currently 63 offices. 2005 First Indian NBFC to be listed on the London Stock Exchange. 2006 Geographical expansion into Russia; equity partners EBRD, DEG, FMO. 2007 Joint venture with BNP Paribas Lease Group, 100% subsidiary of BNP Paribas. 2008 Holistic Infrastructure Institution, financing, advisory services Development. Services: Ø Infrastructure Equipment Financing Leasing Ø Infrastructure Project: Financing, Advisory services and development Ø Insurance Broking Ø Venture Capital Ø Capital market Ø Sahaj e-village Ø Quippo Equipment Bank GROUP STRUCTURE: About Srei Equipment Finance Private Limited: Srei BNP Paribas (Registered name: Srei Equipment Finance Private Limited) is a 50:50 joint-venture between Srei Infrastructure Finance Limited, Indias leading and only private sector Non-Banking Financial Institution in the infrastructure space and BNP Paribas Leasing Solutions(BPLS), a wholly owned subsidiary of BNP Paribas, France. Srei BNP Paribas started its operation from January 01, 2008 with the infrastructure and construction equipment financing and insurance businesses and has further plans to expand its business to new verticals. Industry leader in the infrastructure and construction equipment financing, Srei BNP Paribas is aptly benefitting from the Indian expertise and insight of Srei and global leasing insight in diverse product classes of BNP Paribas. Srei BNP Paribas has deep insight on diverse equipment used in the infrastructure and construction sector and acts a valuable advisor to its customers. It has tied up with all the leading equipment manufacturer s. Over the years, Srei BNP Paribas has been innovating new marketing programs bringing together the manufacturers and customers on a single platform, creating immense value and sharing this value with all the stake holders. Paison Ki Nilami and Srei BNP Paribas Partnership Week are two such prominent programs. Srei BNP Paribas has already started financing Technology Solutions (financing of IT equipment, software and services) and has effectively partnered with leading global IT vendors for financing their customers. It has also forayed into financing of new Equipment classes: Agriculture Equipment, Healthcare Equipment, Office Automation, and Equipment in Education sector etc. With its foray into new equipment classes, Srei BNP Paribas has become probably the one and only Company to offer complete Equipment Solutions. With a customer base of over 20,000, Srei BNP Paribas has grown from strength to strength enjoying a strong national presence with a network of 86 offices acro ss India. VISION: To be the most inspiring global holistic infrastructure institution. MISSION: To be an Indian multinational company providing innovative integrated infrastructure solutions. CORE VALUES: Customer Partnership: At Srei, customer satisfaction is the benchmark for success. Srei delights its customers through a comprehensive range of financial services that are personalized, fast, reliable, convenient, quality driven, and yet cost effective. Integrity: Business integrity is a way of life at Srei. The company strongly stands by integrity in all its dealings and ensures strict adherence to the highest standards of business ethics. Passion for Excellence: Sreis passion for excellence is instrumental in positioning the company as the most innovative infrastructure solution provider in India. Respect for People: Srei acknowledges the fact that its people are its most valuable assets and accordingly provides the best possible work environment and treats them like family members. The company rewards excellence and initiative. Stakeholder Value enhancement: Srei is committed to earning the trust and confidence of all its stake holders. Its growth focus, the ability to constantly enlarge its product basket while controlling risk and reducing the cost of its services have resulted in enhanced value for its stakeholders. Professional Entrepreneurship: Sreis in depth knowledge of infrastructure financing business in India, coupled with its spirit of entrepreneurship, and helps the company to overcome the obstacles and complexities with professional expertise. MANUFACTURING PARTNERS: MARKET SHARE OF SREI BNP PARIBAS: Source: Company. MAJOR COMPETITORS: 1. MAGMA FINCORP LIMITED: Magma Fincorp Ltd (Magma) is a Kolkata based asset financing company. The company is engaged in financingof commercial vehicles, cars, construction equipment, tractors and utility vehicles.The companys target customers are mostly first time users and small entrepreneurs. The Company provides construction equipment finance across retail and strategic customer segments. In the retail segment, it focuses on first-time buyers and small customers. The Company has established contracts with large value vendors addressing multiple projects. It finances a range of construction equipment like excavators, backhoe loaders, compactors, compressors, cranes, tippers and drillers of prominent brands like JCB, Telcon, LT, Ingersoll-Rand, Caterpillar, ECEL, Escorts and Atlas Copco etc. Magma provides unsecured EMI-based loans to SMEs for working capital, business expansion and business maintenance. It has developed proprietary financial analysis tools to make safe credit assessments. The shar e of this segment is increasing in the total disbursements (5% in FY10). Going forward the company intends to maintain the proportion of these loans at 5% and would adopt a cautious approach while lending. In Commercial Vehicle Finance Segment, Magma provides loans on used commercial vehicles and construction equipment. Magma refinanced popular models of Tata Motors and Ashok Leyland. Magma Fincorp predominantly was engaged in financing of construction equipment and passenger cars, utility vehicles and commercial vehicles (CVs). These business verticals accounted for 90% of the companys disbursements in FY10. Recently the company has ventured into high-yield segments, viz; financing of used CVs, tractors and SME loans. Most of the loans disbursed are retail loans and have small ticket size except in the construction equipment segment. MFL has a concentrated focus on the under tapped semi urban and rural market to finance first time users, Small Road Transport operators, small contractors etc. 2. TATA CAPITAL: The Company was incorporated on March 8, 1991 and actively commenced business operations since September, 2007. The Company is a wholly owned subsidiary of Tata Sons Limited, the apex holding company of the Tatas. Their fund based businesses comprise Corporate Finance, Infrastructure Finance and Retail Finance fee based businesses comprise investment banking, broking and distribution, wealth management, private equity, treasury advisory, services relating to travel, forex and infrastructure. With the wide array of products and customized service, the commercial finance business, helps small, medium and large corporates grow their business. The companys team of handpicked professionals offers in-depth expertise to help customers keep pace with the changing marketplace and offer them appropriate solutions to meet their ever-growing financial needs. The companys management structure enables them to leverage relationships across lines of our businesses. Their product knowledge and multi-channel delivery model enhances the ability to cross-sell the companys services. TATA Capital is in the advanced stages of setting up institutional broking, insurance broking and rural finance businesses which would supplement the aforementioned lines of business. TATA Capital believes that the following are the key strengths: Unified financial services platform; Diversified and balanced mix of businesses; Experienced management team; Innovative solutions model; Respected brand; Controls, processes and risk management systems; and Access to capital. 3. LT FINANCE LIMITED: LT Finance Limited (LTF) is a subsidiary of Larsen and Toubro. It was incorporated as a Non-Banking Finance Company in November 1994. Through LTF, LT aims at making a strong foray in the ever-expanding financial services sector.LT Finance understands the intricacies of your business. We at LT Finance offer financing for your Construction Equipment in the form of term loans, working capital loan and operating lease facilities. In 1996, LT Finance had made a foray in financing of commercial vehicles. LT Finance offers financing Commercial Vehicles of all makes and sizes. We also undertake funding of the body for the Commercial Vehicles. LT Finance has an extensive network from where you can easily avail financing for your Commercial Vehicle. Advantages of partnering with LT Finance Presence in more than 70 locations Flexible repayment option Competitive interest rates Finance for used vehicles available Faster loan approval and disbursement A brief Comparison between SREI EQUIPMENT FINSNCE its Competitors: Magma Fincorp Ltd. TATA Capital LT Finance SREI Product Profile Commercial Vehicle Finance,Construction Equipment Finance,Car and Utility Vehicle Finance,Suvidha Loans (Refinance),Strategic Construction Equipment Finance,Tractor Finance,SME Loans,Insurance Fund based businesses: Corporate Finance, Infrastructure Finance and Retail Finance. Fee based Businesses:Investment banking, broking and distribution, wealth management, private equity, treasury advisory, services relating to travel Commercial Vehicle Finance,Construction Equipment Finance, Rural finance, microfinance, Working Capital Finance, Corporate Finance, Loan against Securities, Project Finance, Insurance Mutual Funds Fund based businesses:Equipment Financing, Project Financing. Fee based Businesses:Project Advisory, Investment Banking, Venture Capital / Fund Management. Presence PAN India Presence PAN India Presence PAN India Presence PAN India Presence Focus Segment First Time Users Small Entrepreneurs Retail finance, small and mediumEnterprise finance and construction equipment and infrastructure finance. Strategic Retail Strategic Retail Branch Network 172 100 200 86 Credit Ratings LAA+(ICRA) LAA+(ICRA) Date of Incorporation 1989 8th March, 1991 (commenced business operations since September,2007 November, 1994 1989 2008 JV with BNP Paribas Leasing Solutions REASON FOR THE JOINT VENTURE WITH BNP PARIBAS LEGAL SOLUTIONS: Mr.HemantKanoria, Vice Chairman and Managing Director of SREI, termed this joint venture as a very significant step in the Indian Financial Services Market. â€Å"We are the largest player in the financing of infrastructure equipment and collaborating with BPLG will help in increasing our market share further and also expanding the product line into financing of agriculture, information technology, medical and other equipment.† Speaking at the occasion Mr. Bertrand Gousset, member of the Executive Committee of BPLG, in charge of Corporate Development, said, â€Å"We are delighted to be associated with the SREI group, who are the leaders in the financing of infrastructure equipment and provide a wide range of equipment finance products to large strategic clients as well as to retail customers, with pan-India coverage. This joint venture is very significant for us and we look forward to a long and prosperous association with them.† Mr. Sunil Kanoria said, â€Å"T his joint venture signifies the coming together of two companies with the same shared values. Both SREI and BPLG are convinced that they are well positioned to build on the already strong platform established by SREI and that this will enable in reduction in cost of funds resulting in higher profitability.† Mr.Amoudru, CEO of BNP Paribas India and Head of Territory, said The acquisition of a 50% stake in this joint-venture with SREI a highly recognised firm in equipment and infrastructure financing further evidences the willingness of the BNP Paribas Group to expand its presence in India in activities where it has a strong expertise. It represents another substantial capital commitment from the Group- the largest so far- in this country and testifies our confidence in the long term prospects of the Indian economy. SWOT ANALYSIS: LITERATURE REVIEW: FLOW OF THE PROCESS AT SREI: CREDIT APPRAISAL: Credit Appraisal is a process to ascertain the risks associated with the extension of the credit facility. It is generally carried by the financial institutions which are involved in providing financial funding to its customers.These financial institutions appraise the technical feasibility, economic viability and bankability including creditworthiness of the prospective borrower. Credit appraisal starts from the time a prospective borrower walks into the branch and culminates in credit delivery and monitoring with the objective of ensuring and maintaining the quality of lending and managing credit risk within acceptable limits. Credit appraisal involves analysis of liquidity position/ financial soundness of the company. Although, the analysis also covers understanding growth trends in revenues and earnings, and profit margins, more emphasis is required to be placed on liquidity-both long term and short term. There are basically two types of proposals that are received by the companies for funds. The first types of proposals are financing against new and first hand assets to be purchased (EQUIK) and the other proposals are financing against pre owned assets (REQUIK). Asset finance is generally divided into three departments depending upon the risk exposure*: Retail: Aggregate risk exposure not exceeding Rs.1 crore. SME (Small Medium Enterprises): Aggregate risk exposure between Rs.1 5 crores. Strategic: Aggregate exposure more than Rs.5 crores. *NOTE: Risk exposure to a client is determined by the summation of Net Finance Amount for the approval(s) being considered, together with all existing exposures to the client all related concerns in aggregate and residual Net Finance Amounts under all previous valid approvals for the Client pending part or full disbursement. SOME IMPORTANT TERMINOLOGIES: ASSET FINANCE: Asset Finance category includes secured business loan in which the borrower pledges as collateral an asset used in the conduct of its business. Asset finance also includes business in which a client takes an asset on lease for use in the conduct of his business for a defined period with or without right of onward sub lease the asset. ASSET COST: In case of Equik, the invoice values of the Asset including all duties and taxes which are not refundable or adjustable under drawback or otherwise any scheme. Spares, consumables, accessories auxiliaries, consultancy fees, installation and erection charges, etc. shall not be considered as part of asset cost. In case of Requik, Asset cost will be determined by the lowest of: Present Intrinsic Value of Asset as determined through a process by an expert approved by SREI. Actual purchase price to be paid by the consumer Current Insured Declared Value. MARGIN: Margin means the clients contribution on the Asset Cost payable upfront or any amount deposited with us as Security Deposit in relation to the transaction before the disbursement or release of facility. AIRR: Internal Rate of Return (IRR) by definition is the rate of return at which the Net Present Value of the stream of payments (repayment of installments and interest by the customer vis-à  -vis the actual disbursement made by the company) become equal to zero. FIRR: Financial IRR (FIRR) shall mean the transaction IRR without factoring any benefit available to Srei BNPP in terms of normal MOU entered into by srei BNPP with concerned manufacturer. Management fees/ RTE/ Commitment Charges collected upfront, an extra credit period, subvention or other cash incentives extracted from the manufacturer over and above those available workings. YIELD: Yield means the rate of return to Srei-BNPP from the transaction, factoring all the benefits available to Srei-BNPP under normal MOU and otherwise from the manufacturers/vendors. ETR (Excellent Track Record): ETR means peak delay of not more than 30 days and average delay of not more than 15 days for payment of dues in all existing and past accounts of the proposed customer. GTR (Good track Record): GTR means peak delay of not more than 45 days and average delay of not more than 30 days for payment of dues in all existing and past accounts of the proposed customer. PTR (Poor track Record): PTR means peak delay more than 45 days and average delay of more than 30 days for payment of dues in all existing and past accounts of the proposed customer. ANALYSIS OF CREDIT APPRAISAL MEMORANDUM: Credit risk of each individual transaction is studied and managed from the five different perspectives: Customer credit worthiness Asset quality Asset deployment Collateral security Facility type Background of the proponent/ management: The identification of the borrower is done properly through scrutiny of his antecedents, experience, competence, integrity, initiative etc. This may be done by obtaining status reports from previous bankers. In case of corporate, the management structure, the background of the top management needs to be scrutinized. KYC guidelines as framed by RBI are adopted by the company. Commercial Appraisal: The nature of the product, demand for the same, the existing and perceived competition in the segment, ability of the proponents to withstand the same, government policies governing the industry etc. need to be taken into consideration. Technical Appraisal: Technical appraisal of the project needs to be carried out for industrial activity proposals beyond the cut off limits prescribed from time to time. Such appraisal may be carried out in house by technical officers. Financial Appraisal: Apart from ascertaining the need based character of the limits requested for, the financial health of the proponents, ability to absorb unanticipated financial costs need to be looked into which would include scrutiny of the cost of the project, means of financing, financial projections etc. important performance indicators like profitability ratios, debt equity ratio, operating profit margin etc. need to be within acceptable parameters for that industries/ activities. INTRODUCTION TO RISK: The interpretation of the word risk will determine the approach to risk management. The word risk is interpreted in three distinct senses namely risk as hazard, risk as opportunity and risk as uncertainty. Risk as hazard is the most commonly used meaning of risk and it means likely financial losses arising from negative events such as control failures, bad publicity and loss of reputation. Risk management in this context would mean eliminating possibilities of losses from such negative events by putting in place adequate control systems. Risk as an opportunity means, taking risks and earning adequate returns on them. This implies the trade-off between risk and return. Here risk management, becomes risk optimization meaning maximizing the upside potential and minimizing the downside. Here capacity and ability to manage risk is used to increase shareholders value and achieve a competitive advantage. Risk, as uncertainty is basically a statistical concept, which assumes a nor mal distribution for future outcomes. Here risk management means narrowing the difference between the expected outcomes and actual results. Banks and other similar financial institutions need to manage the risk inherent in the entire portfolio as well as the risk in individual credits or transactions. The effective management of risk is a critical component of a comprehensive approach to risk management and essential to the long-term success of any banking organization. In simple words, risk is the possibility of losses associated with decrease in the credit quality of borrowers. In a financial institution, loss may stem from default due to inability or unwillingness of a customer to meet his commitments in relation to lending, trading, settlement and other financial transactions. A default reduces the present value of the loan and consequently the value of the banks business. Thus, it is imperative that these institutions have a robust risk management. MODEL BUILDING: Need for Study: A Risk Assessment Model (RAM) is necessary to avoid the limitations associated with a simplistic and broad classification of applicants into a good or bad category The comapny currently uses a judgemental risk assessing model. Grading System for Standardization of Risk: The grades (symbols, numbers, alphabets, and descriptive terms) used in the internal credit-risk grading system represent, without any ambiguity, the default risks associated with an exposure. The grading system will enable comparisons of risks for purposes of analysis and top management decision-making. The grading system is therefore, be flexible and should accommodate the refinements in risk categorization. STEPS IN DEVELOPING OF MODEL: STEP- 1: Identification of all the key risk components in the principal business: The first step in the development of the model was the identification of the various parameters to be taken into consideration. For this purpose, the various manuals and documents pertaining to appraisal were carefully studied. More factors were added to the list to make it comprehensive, effective and statistical. This was done through literature survey and scanning the companys appraisal system. The following was the result..Risk assessment can be done from 2 aspects: Quantitative aspect: Quantitative aspect refers to managing the credit risk by using the quantitative tools and techniques such as ratio analysis, and reaching a concrete number for every loan which would indicate the magnitude of risk and expected returns, on a case by case basis. Qualitative aspect: Qualitative aspect is taking a holistic view by a financial institute at its overall portfolio, deciding the lending limits to a sector, setting up the broad policies and procedures, and so on. Both quantitative and qualitative aspects need to be taken into consideration while computing the risk levels. In the case of corporate clients, post-mortem of the balance sheet is one of the main instruments. Ratio analysis helps us determine whether the loans have to be extended. But, past performance is not an ideal indicator of the future performance. This raises the necessity to consider other qualitative parameters such as technological status, reputation, repayment track with others and so on. Classification of Risk: The risk faced by financial institutions extending commercial vehicles or construction equipment finance has been regrouped as follows: A. Liquidity Risk: Liquidity risk is the non-availability of cash to pay a liability that falls due. A company is deemed to be financially sound if it is in a position to carry on its business smoothly and meet all the obligations both long term as well as short term without strain. Assessment of the efficiency with which the funds are put to use is very important for credit analysis. The study of efficiency of debt-service management becomes essential to banks as the ratios reveal: Whether the profit of the firm is enough to cover not only the interest payment, but also to provide a reasonable cushion against future uncertainty Whether the profit is sufficient to provide enough coverage for repayment bligations Whether the assets of the firm provide adequate security for loanssanctioned. In short, the coverage ratios show the relationship between the debt servicing commitments and the sources for meeting these burdens. Debt Equity Ratio: The ratio brings out the extent to which the firm is dependent on outsiders for its existence and indicates the proportion of the owners stake in the business. A high ratio means that claims of creditors are greater than owners funds. Excessive liabilities tend to cause insolvency. This is the most unfavourable situation for a banker, as he may gain the position of just one among the many creditors of the company. Current Ratio: The current ratio is an index of the concerns financial stability since it shows the extent of the working capital, which is the amount by which the current assets exceed the current liabilities. A high current ratio indicates inadequate employment of funds while a poor current ratio is a danger signal to the management. It shows that business is trading beyond its resources. Interest Coverage Ratio: It tells the analysts the extent to which the firms current earnings are able to meet current interest payments. When this ratio is high it shows that the business would earn sufficient profits to pay the interest charges periodically. A low interest coverage ratio may result in financial embarrassment. Funded Debt Ratio: The ratio of secured loans to turnover is known as Funded Debt Ratio. This ratio varies from sector to sector. A low Funded Debt Ratio is preferred. B. Operations Risk: In a competitive market, it is critical for any business unit to control its costs at all levels. To measure the operational efficiency, the turnover ratios and profitability ratios are used. They measure how efficiently the firm is employing the assets. They also represent the relationship between profit and sales, and between profit and investment. Net profit margin: The final profit figure arrived at after charging all the expenses of the firm against all its income is called net profit. A credit officer would look at the trend of net profit over the years. A company, which has been consistently achieving positive growth rates, reflects a healthy industry position and the managements commitment to the business, effective steps taken by the management to promote their sales in the market. Fixed Assets Turnover Ratio: This ratio measures the sales per rupee of investment in fixed assets or the efficiency with which fixed assets are employed. A high ratio indicates a high degree of efficiency in asset utilization and a low ratio reflects inefficient use of assets. Total Assets Turnover Ratio: This takes the total view of the business as a producing unit. It determines the produce ability of the assets of the business, which also indicates the managerial capacity of the entrepreneur in putting the assets to best use. Free Assets to Total Assets: This ratio is critical to firms employing commercial vehicles and construction equipment as it determines the level of assets available to a banker in case of default. The higher the ratio more secured the funding would be. Construction Equipment / Vehicles Turnover Ratio: This ratio measures the sales per rupee of investment in construction equipment and vehicles. In simple terms it measures the fleet strength of the clients. Experience in the Industry: Experience in the industry also helps in determining the operation risk. Basically it helps in measuring the work orders and the cost involved in the same. If it is a well-established industry the risk to finance them will be low and vice versa C. Credit Risk: Credit risk is risk resulting from uncertainty in a counter partys willingness to meet his contractual obligations. The business character of a borrower rests on traits as trustworthiness and commitment. Repayment track with others: The repayment track of the borrower with others determines how well they have carried out their business in the past years. A business with prompt payment has less credit risks than those whose reputation is a question mark in the market. Srei has its own different categories based on the repayment track i.e. ETR, GTR PTR. Percentage funding to total cost: This helps us measure the level of financial commitment of the borrower in the proposal. Lower ratio means more contribution from the borrower and the risk on the bankers end is low. Category of assets: At Srei, there are basically two types of assets: Standard assets Non-Standard Assets. The approvals, interest charged, and risk assessment is done on the basis of the category. Standard Assets are charged comparatively low interest rate with respect to Non-Standard Assets. D. Market Risk The factors influencing the relative competitive position of the customer are examined in detail. The result of these factors is reflected in the ability of the issuer to maintain or improve its market share. It may be mentioned that the customers, whose market share is declining, generally do not get favourable long-term ratings. Net Worth to Net Sales: The net worth of a business provides that important cushion to withstand shocks from adverse changes in external (economic, financial and legal) and internal environments of the business. Net worth is thus referred to as the risk capital. When compared to the sales of the business, it shows the efficiency with which the capital is rotated in the business. Technology Status Obsolescence is another problem that an industry faces. A firms competitive position is decided based on the technological competence it possesses. Advances in technology can dramatically alter a firms landscape. The firm is at an advantageous position when it holds superior technology. The risk is more among the players in the industry when the technological competence is inferior. The risk of not keeping up with the progress of changing technology may affect the growth. Hence a firm with a good technological background is more attractive. Competitions: The competitions prevailing in the market also determines the risk involved while financing a client. If there is less competition the customer is the major player then there is less risk involved and vice versa. Geographical Factors Affecting the Industry: The geographical factors where the customers are established are also taken into consideration while assessing the risk. STEP IV: ARRIVE AT THE RISK RATING ON THE RISK ASSESSMENT MODEL: Based on the information on weights which was collected from the credit team of the company, a standard and comprehensive model was developed. Each of the customers will be rated on each of the parameters based on the key provided. The final score of the customer decides the risk involved in operating with him. To aid the assessment process and to systematize the entire process, key for assessment has been developed in consultation with people well versed in this field. The key will not only quicken the assessment, but also standardizes it. The parameters in each risk category should be analysed based on the key and must be given a score. The scores should be multiplied with the weights assigned, in proportion to the importance of the parameter, to arrive at an aggregate for each risk category. Each risk category is measured separately and is also expressed as a percentage, which would help to measure the risk easily. After calculating the risks under each category, they must be summed up and the grand score will be on 1000. To get a single point indicator of the risks, it is divided by 10 and expressed as a score on 100. Based on the final score the company is given a rating by referring to the scoring guide of the model. As mentioned earlier, the grades used in the internal risk grading system should represent, without any ambiguity, the default risks associated with an exposure. Here, we employ a numeric rating scale. A numeric scale developed is such that the lower the risk, the lower is the rating on the scale. The rating scale consists of 6 levels, of which levels 0 to 2 represents various grades of acceptable credit risk and levels 3 to 5 represents various grades of unacceptable credit risk associated with an exposure. The scale, starting from 0 (which would represent lowest level credit risk and highest level of safety) and ending at 5 (which would represent the highest level of credit risk and lowest level of safety), is deployed to standar dize, benchmark, compare and monitor credit risk associated with the banks loans and give indicative guidelines for risk management activities. The model, the key for assessment and the scoring guide along with the interpretation are illustrated below. # Parameters Weight Score Weighted score LIQUIDITY RISK 1 Debt Equity Ratio 8.5 2 Current Ratio 5 4 Interest Coverage Ratio 6 5 Debt Service Coverage Ratio 10 6 Secured Loans to Turnover Ratio 9 Sub Total OPERATIONS RISK 6 Net Profit Margin 9 7 OperatingProfit Margin 9 8 Fixed Assets Turnover Ratio 6 9 Return on Capital Employed 7.5 10 Free Assets to Total Assets 7 11 Construction Equipment / Vehicles Turnover Ratio 8 12 Experience in the Industry 9 Sub Total CREDIT RISK 18 %age Funding to Total Cost 7 19 Repayment Track with Others 10 22 Category of Assets 6.5 Sub Total MARKET RISK 100 23 Geographical factors affecting the Industry 7 24 Net Worth to Net Sales 6 25 Promoters stake in the Industry 8 26 Technology status 5 27 Competitions 6.5 Sub Total GRAND TOTAL SCORE (in %ge) The Risk Assessment Model Table showing the key for assessment # Parameters Scores Ratings Best Worst 5 4 3 2 1 1 Debt Equity Ratio 1 1.5 1.5 2 2 2.5 2.5 3 Above 3 2 Current Ratio Above 2.5 2 2.5 1.33 2 1 1.33 Below 1 Interest Cov-erage Ratio Above 4 2.5 4 1.5-2.5 1.5 1 Below 1 4 Debt Service Coverage Ratio Above 2.5 1.5 -2.5 1.25 -1.5 1 -1.25 Below 1 5 Funded Debt Ratio Very High High Moderate Low Very Low 6 Net profit Margin Increasing sharply Increasing Constant Inconsis- tent Decreasing 7 Operating Profit Margin Increasing sharply Increasing Constant Inconsis- tent Decreasing 8 Fixed assets turnover Ratio Above 3.5 3 3.5 2.5 3 2.5 3 2 2.5 9 Return on Capital Employed Very High High Moderate Low Very Low 10 Free Assets to Total Assets Very High High Moderate Low Very Low Construction Equipment/ Vehicles Turnover Ratio Very High High Moderate Low Very Low 12 Experience in the Industry More than 20 years 10 20 years 5 10 years 2 5 years 0 2 years 13 %age funding to Total Cost Below 75 % 75 80% 80 85% 85 90% More than 90 % Repayment Track with Others ETR GTR PTR VPTR Category of Assets Standard Non Standard Geographical Factors Affecting the Industry Most favourable Favour- able Moderate Less Favour- able Very Less Favourable. Net Worth to sales Very High High Moderate Low Very Low Promoters Stake in the Industry 100% 80% 70% 60% Less than 60% 26 Technology Status Superior Updated Comfort -able Competitions No Competitio-n Very Less Competitio-n Less Competitio-n High Competito-n Very High Competition THE SCORING GUIDE RISK SCORE (%) RISK CATEGORY EXPLANATION NATURE OF CASE 100 -81 0 Very low risk Excellent 80 71 1 Low risk Very good 70 61 2 Comfortable risk Good 60 51 3 Tolerable risk Fair 50 41 4 High risk Doubtful Below41 5 Undesirable risk Poor Interpretation: RISK CATEGORY 0 Indicates fundamentally strong position. Risk factors are negligible. There may be circumstances adversely affecting the degree of safety but even such circumstances are not likely to affect the timely payment of principal and interest as per terms. RISK CATEGORY 1 The risk factors are more variable and greater in periods of economic stress. Any adverse change in circumstances may alter the fundamental strength and affect the timely payment of principal and interest as per terms. RISK CATEGORY 2 Considerable variability in risk factors. The protective factors are below average. Adverse changes in economic circumstances are likely to affect the timely payment of principal and interest as per terms. RISK CATEGORY 3 Risk factors indicate that obligations may not be met when due. The protective factors are narrow. Adverse changes in economic conditions could result in inability or unwillingness to service debts on time as per terms. RISK CATEGORY 4 Ther e are inherent elements of risk. Timely servicing of debts could be possible only in case of continued existence of favourable circumstances. RISK CATEGORY 5 Extremely speculative. Either already in default in payment of interest and/or principal as per terms or expected to default. Recovery is likely only on liquidation or re-organization. NOTE: The above proposed risk rating Model will not be applicable in following situations: When the financing is done on the basis of the SREIs Relationship with the clients. When the financing is done to a new or recently formed company. When financing is done to a Manufacturing Unit.