Tools to Raise Capital

8/6/2019 Tools to Raise Capital

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Tools to raiseTools to raise

capitalcapitalGroup-3


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CapitalCapital Capital in finance and accounting, refers to the

fundsprovided by lenders (and investors) tobusinesses topurchase real capital equipment forproducing goods/services.

Capital generally refers tosaved-up financialwealth, especially that used tostart ormaintain abusiness.

The mix of debt and equity is known as capital structure.


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Sources of capitalSources of capital Long term - usually above 7 years

o Share Capital

o Mortgage loan

o Retained Profit

o Venture Capital

o Debenture

o

Project Finance

Medium term - usually between 2 and 7 years

o Term Loans

o Leasing

o Hire Purchase

Short term - usually under 2 years

o Bank Overdraft

o Trade Credit

o Deferred Expenses

o Factoring


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Capital market

Long-term funds are bought and sold:

o S

hareso Debentures

o Long-term loans, often with a mortgage bond as security

o Reserve funds

o Euro Bonds

Money market

Financial institutions can use short-term savings to lend out in theform of short-term loans:

o Credit on open account

o Bank overdraft

o Short-term loans

o Bills of exchange

o Factoring of debtors


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TATA MOTORSTATA MOTORS Tata Motors is Indias largest automobile company, with

consolidated revenuesof USD 20 billion in 2009-10. It isthe leader in commercial vehicles and among the topthree in passengervehicles

Tata Motors is a part of the Tata Groupmanages itsshare-holding through Tata Sons

Net Income:$844 million

Total Assets:$20.192 billion

Total equity:$2.224 billion

Stake holders:

1. Tata (promoter and promoter group):34.83

2. Daimler Chrysler:6.65

3. Citibank NA:20.39

4. LIC:7.39


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State Bank Of IndiaState Bank Of India

S

tate Bank of India (S

BI) is the largest Indianbanking and financial services company (by turnoverand total assets) with its headquarters in Mumbai,India.

Established in 1955 Reserve bank of India holds 60% of stake.

Revenue:$29.728 billion

Operating income:$5.507 billion

Profit:$2.668 billion

Total assets:$322.077 billion

Total equity:$19.048 billion


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Sources of FundsSources of FundsTATAMOTORS

STATE BANKOF INDIA

1. Share capital

2. Cash reserves

3. Minority interest

4. Loans

1. Capital

2. Cash reserves

3. Minority interest

4. Loans

5. Deposits

6. Other liabilities and provisons


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Sources of FundsSources of Funds


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CapitalCapitalTata motors (in crores) State Bank of India (in crores)

Share capital:570.6

Total shareholders fund : 8206.48

Percentage of share capital in totalshare holders fund : 6.95

Total liabilities: 43,612.35

Percentage of share capital: 1.31

Capital : 634.88

Total liabilities: 14,51,219.84

Percentage of share capital: 0.044


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Cash Reserves

Cash Reserves

TATA MOTORS (in crores) STATE BANKOF INDIA (in

crores)

Reserves :7635.88

Total share holders fund : 8206.48

Percent of reserves in total shareholders fund :93.05

Total liabilities : 43612.5

Percentage of reserves in totalliabilities: 17.51

Reserves : 82500.70

Total liabilities: 1451219.84

Percentage of reserves in totalliabilities : 5.680


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Minority interestMinority interestTATAMOTORS (in crores) STATE BANKOF INDIA (in crores)Minority interest : 213.51

Total debt : 35192.36

Percentage of minority interest in totaldebt : 0.61


Percentage of minority interest in totalliabilities : 0.49

Minority interest : 2631.27


Percentage of minority interest in totalliabilities : 0.180


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Loans or BorrowingsLoans or BorrowingsTATAMOTORS (in crores) STATE BANKOF INDIA (in crores)Unsecured loans : 21290.03

Secured loans : 13902.33

Total debt : 35192.36

Percentage of unsecured loan in totaldebt : 60.50

Percentage of secured loan in totaldebt : 39.95


Percentage of debt in total liabilities :80.69

Borrowings : 122074.57


Percentage of borrowings in totalliabilities : 8.420


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DepositsDepositsTATAMOTORS (In crores) STATE BANKOF INDIA (in crores)Deposits : 0

Percentage of deposits in totalliabilities : 0

Deposits : 1116464.56

Percentage of deposits in totalliabilities :76.936


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Other liabilities andOther liabilities and

provisionprovisionTATAMOTORS (in crores) STATE BANKOF INDIA (in crores)Other liabilities and provisions : 0 Other liabilities and provisions

126913.86

Percentage of other liabilities andprovisions in total liabilities : 8.740


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Application of fundsApplication of fundsTATAMOTORS STATE BANKOF INDIA

1. Fixed assets

2. Investments

3. Current assets

4. Cash reserves

1. fixed assets

2. Cash with RBI

3. Cash with other banks

4. Loans and advances

5. Investments

6. Other assets


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Application of FundsApplication of Funds


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InvestmentsInvestmentsTATAMOTORS (in crores) STATE BANK OF INDIA (in crores)Investments : 2219.19

Total assets : 43612.35

Percentage of investments in totalassets : 5.09

Investments : 402754.13


Percentage of investments in totalassets :27.75


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Cash and Balances

Cash and BalancesTATAMOTORS (in crores) STATE BANK OF INDIA (in crores)

Cash and bank : 8743.32


Percentage of cash in total assets :20.05

Cash and balances with RBI :

82195.58


percentage of cash with RBI in totalassets : 5.66


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Balances with BanksBalances with BanksTATAMOTORS (in crores) STATE BANK OF INDIA (in crores)

Balances with banks : 0


Percentage of money at call in totalassets : 0

Balances with banks & money at call:

39653.42


Percentage of balances with bank andmoney at call in total assets :

2.73


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Fixed AssetsFixed AssetsTATAMOTORS (in crores) STATE BANK OF INDIA (in crores)

Fixed assets : 17366.7


Percentage of fixed assets in totalassets :

39.82

Fixed assets 6103.89


percentage of fixed assets in totalassets :

0.420


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Other AssetsOther AssetsTATAMOTORS (in crores) STATE BANK OF INDIA (in crores)

Fixed assets :0


Percentage of fixed assets in totalassets :

0

other assets : 51101.18


percentage of other assets in totalassets :

3.53


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Thank you.Thank you.

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