Cia:1 financial management

SUBMITTED BY:DIVYANG AGARWAL

ROLL NO:2023291
SUBMITTED ON:16TH,AUGUST 2021
INTRODUCTION TO VIHAN MOTORS
Vihan Motors Limited, a USD 10 Billion Organization is a
leading global automobile manufacturer with a portfolio that
covers a wide range of Cars, SUVs, Buses, Trucks, Pickups
and Defense vehicles.
Brief history and range of current business
They were incorporated on August 10, 2021as a public limited
company under the Indian Companies Act VII of 1913 as
vihan Locomotive and Engineering Company Limited and
received a certificate of commencement of business on
August 12 2021.. Vihan Motors Limited is incorporated and
domiciled in India. Since 2021, we have been manufacturing
automotive vehicles. The automotive vehicle business
commenced with the manufacture of commercial vehicles
under financial and technical collaboration with Daimler-Benz
AG (now Daimler AG) of Germany.
They offer a broad portfolio of automotive products, ranging
from sub-1 ton to 49-ton GVW, trucks (including pickup
trucks) to small, medium, and large buses and coaches to
passenger cars, including the world’s most affordable car—
the , premium luxury cars and SUVs.
Vihan Motors operate six principal automotive manufacturing
facilities in India: at Jamshedpur in the state of Jharkhand, at
Pune in the state of Maharashtra, at Lucknow in the state of
Uttar Pradesh, at Pant Nagar in the state of Uttarakhand,
Sanan in the state of Gujarat and at Dharwad in the state of
Karnataka.
ELIGIBILITY CRITERIA

Credit Score: Credit score serves as a direct reflection of

your repayment history, and hence financial responsibility.
Apart from eligibility, credit score can also influence personal
loan interest rates.

Net Monthly Income: A greater monthly income indicates

greater repayment capacity, and hence improves the chances
of getting the loan.

Work Experience: Greater work experience is suggestive of

greater income stability. Thus, it also plays an important role
in determining the eligibility for a personal loan.

Credit Utilization Ratio: This refers to the proportion of the

credit used by you out of the total credit available to you.

Fixed Obligation to Income Ratio (FOIR): This refers to

the proportion of ongoing loan EMIs and credit card dues in
your monthly income.

Recommendation from an Incubator funded by

Government of India in relation to a scheme to promote
innovation.
Recommendation from an Incubator recognized by
Government of India.
Letter of funding from Central Government or State
Government as a part of any
scheme to promote innovation
WAYS TO INCREASE ELIGIBILITY RATIO-
➢ Maintain a high credit score, as it increases the chances of
getting a personal loan.
➢ Try to maintain a low fixed obligation to income ratio. It
allows a greater part of your income to be available for the
loan repayment
1. Delaying any capital purchases that would require
any cash payments.
2. Looking to see if any term loans can be re-
amortized.
3. Reducing the personal draw on the business.
4. Selling any capital assets that are not generating a
return to the business (use cash to reduce current
debt).

DOCUMENTS REQUIRED FOR

AVAILING FUNDS

1.Any one of the government-recognized identity proofs such

as Passport, Aadhaar Card, Voter ID Card, Driving License.
2.Any one of the government-recognized address proofs such
as Passport, Driving License, Voter ID, utility bills, telephone
bills, registered lease deed or sale agreement.
3.Non-Disclosure Agreement.
4.Term Sheet.
5.Amendment in AOA (Articles of Association).
6.Share Subscription Agreement and Shareholder Agreement.
7.Recent passport-sized photographs.
8.Duly filled and signed loan application form.
9.One cancelled cheque for RTGS or refund (if any).
10.A bank statement that shows clearance of last month’s EM

VARIOUS SOURCE OF RAISING FUNDS

Vihan Motors raise funds from various providers of capital –

shareholders, bond issuers, banks and the financial markets.
Using these funds optimally, we create value and drive
growth. The Company also raises funds through sale of
investments, including divestment in stakes of subsidiaries on
a selective basis.
The Company intends to continue to invest in new products
and technologies to meet consumer and regulatory
requirements. These investments are intended to enable the
Company to pursue further growth opportunities and
improve the Company's competitive positioning. The
Company expects to meet most of its investments out of
operating cash flows and cash liquidity available. In order to
meet the remaining funding requirements, the Company may
be required to raise funds through additional loans and by
accessing capital markets from time to time, as deemed
necessary.
With the ongoing need for investments in products and
technologies, the Company (on a standalone basis) was free
cash flow (a non-GAAP financial measure, measured at cash
flow from operating activities less payments for property,
plant and equipment and intangible assets. The Company
expects that with an improvement in macroeconomic
conditions and business performance, combined with steps
like raising funds at subsidiary levels, reviewing non-core
investments and raising additional long-term resources at
Vihan Motors Limited on a standalone basis, the funding gap
could be appropriately addressed. In order to refinance the
Company's borrowings and for supporting long-term fund
needs, the Company continued to raise funds, through issue
of various debt securities and Rights issue of shares.

VARIOUS SOURCE OF AVAILABLE

FUNDS

Inventories as at March 31, 2015, were Rs. 29,272.34 crores

as compared to Rs. 27,270.89 crores as at March 31, 2014, an
increase of 7.3%. Inventory at Tata and other brand vehicles
(including vehicle financing) was Rs. 4,802.08 crores as at
March 31, 2015 crores as compared to Rs. 3,862.53 crores as
at March 31, 2014. In terms of number of days of sales,
finished goods represented 31 inventory days in Fiscal 2015
as compared to 30 days in Fiscal 2014.
Trade Receivables (net of allowance for doubtful debts) were
Rs. 12,579.20 crores as at March 31, 2015, representing an
increase of 19.0% compared to Rs. 10,574.23 crores as at
March 31, 2014. Trade Receivables have decreased at Tata
and other brand vehicles (including vehicle financing) by Rs.
102.22 crores in Fiscal 2015. The allowances for doubtful
debts were Rs. 737.86 crores as at March 31, 2015 compared
to Rs. 621.70 crores as at March 31, 2014.

Cash and bank balances were Rs. 32,115.76 crores, as at

March 31, 2015 compared to Rs. 29,711.79 crores as at
March 31, 2014, an increase of 8.1%. The Company holds
cash and bank balances in Indian rupees, GBP, and Chinese
Renminbi The cash balances include bank deposits maturing
within one year of Rs. 23,638.08 crores compared to Rs.
21,628.97 crores as at March 31, 2014.

Loan - A business loan is a sum of money obtained by a

company to cover expenses that it is unable to cover on its
own. Some entrepreneurs utilize business loans to pay for
salary and wages while their new firm is getting off the
ground, while others use borrowed funds for office supplies,
inventory, or business projects.

Interest Rate - The personal loan interest rate offered by

Vihan Capital is one of the lowest in the industry, starting at
just 10.99%. Your loan interest rate greatly depends on your
personal loan eligibility, income, CIBIL Score, and other
criteria.

Repayment options - Repayment can be made through Fund

Transfer, Cheques, or Cash etc.

DRAWING INFERENCES ON THE USE OF

DIFFERENT SOURCES OF FUNDS
1.Share Capital: Vihan Motors have raised funds through the
share capital of 23,638.08(Rs) Cr.

2.Retained Earnings: The maximum amount of funding in

Vihan Motors was done through reserves which constituted
Rs.23,638.08 Cr.

3.Trade Receivables: Vihan Motors accounted for

Rs.12,579.20 Cr. Of trade receivables.
4.Provisions: The company accounted for Rs.727.86 Cr. as
allowance for doubtful debts.

5.Inventories: Inventories at Vihan Motors and other brand

vehicles were Rs. 29,272.34 Cr.

6.Cash and Bank Balance: Vihan motors have cash and bank
balance of Rs.32,115.76 Cr.

THANK YOU….