A

presentation
On
Financial Accounting

NAME : JAY KUMAR VASANT BHAI SOLANKI.

STUDENT ID : 18BBA098

Project NAME : Joint Venture

FACULTY GUIDE : Aarzoo Ben Vohra

Semester : 5

INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT

Introduction of Joint Venture
• A joint venture is a new enterprise owned by two or more participants.
• It represents a combination of subsets of assets contributed by two (or more)
business entities for a specific business purpose and a limited duration.
• It is essentially a medium to long-term contract which is specific and
flexible.
• Though, the joint venture represents a newly created business enterprise, its
participants continue to exist as separate firms.
• A joint venture can be organized as a partnership firm, a corporation or any
other form of business organisation which the participating firms choose to
select. 
characteristics
• Contribution by partners of money, property, effort, knowledge, skill
or other assets to the common undertaking.
• Joint property interest in the subject matter of the venture.
• Right of mutual control or management of the enterprise.
• Right to share in the property.
Example Of Joint Ventures
• 1. Boeing and Tata Advanced Systems 
• have a joint venture company, Tata Boeing Aerospace (TBAL). it is
being described as the sole global producer of fuselages for AH-64
Apache helicopter delivered by Boeing to its global customers
including the U.S. Army.
• 2. Kalyani Rafael Advanced Systems (KRAS),
•  a joint venture between Kalyani Strategic Systems Ltd. and Rafael
Advanced Defense Systems Ltd. of Israel,They make advanced anti-
tank guided missiles.
Example Of Joint Venture
• 3. Rafael Advanced Defense Systems and Astra Microwave Products
Limited in Hyderabad, 
• it is a joint venture to make software-defined radios.
• 4. Dassault Reliance Aerospace Limited (DRAL)
•  is a joint venture between Dassault Aviation and Anil D. Ambani's Reliance
Group.
• 5. Mahindra Aerospace Private Limited and Canada's Viking Air Ltd .
• Apart from these there are hundreds and thousands of other joint ventures in
india. Above mentioned are those which were in the news recently.
 Example Of Joint Venture
• Example 6 :
• PNB MetLife– India’s state owned Punjab National Bank (PNB) which holds 30 percent stake has
entered into a joint venture with America’s largest life insurer known as Metropolitan Life Insurance
Company (MetLife) which holds 26 percent stake in the joint venture to offer PNB-MetLife insurance
plans. PNB MetLife India Insurance Company Limited (PNB MetLife) is one of the leading life
insurance companies in India which was established in the year 2001. These insurance plans are made
available to PNB customers as well as to the general public. Other Public Sector Undertaking (PSU),
private and cooperative banks in India are also distributing these PNB MetLife plans. The company
continues to be consistently profitable and has declared profits over the last few Financial Years.
• Example 7 :Indo Cat Pvt Limited– Indian Catalyst Private Ltd is a joint venture entered with Intercat
whose holders are USA. It was established on 1st of June 2006 where the areas of operation are
focused on marketing as well as manufacturing of catalysts and FCC additives. Indo Cat Pvt Ltd is
considered to be one of the joint venture companies which play an important role in the domain of
manufacturing and distribution of various additives.
Example Of Joint Ventures
• Example 8
• Sony and Ericson’s example is also a good example of Joint Venture as they joined hands to
manufacture smartphones and gadgets. After several operating years, Sony eventually acquired
Ericson mobile manufacturing division.
• Example 9
• The 2008 Joint venture of NBC Universal Television Group (Comcast) and Disney ABC Television
Group (The Walt Disney Company). 
• Example 10
• Another famous example of joint venture formation is the agreement between Kellogg and Wilmar
International Limited. Kellogg International entered the market in order to expand its presence in the
Chinese market to sell cereals and other snack foods to consumers in China. Joining hands together
with Wilmar resulted in a profitable synergic relationship for both the companies as Wilmar
International provided extensive distribution and supply chain network to Kellogg International and
also Kellogg managed to enter into a new geography with this agreement and relationship.
What is Consignment?

• Consignment is an agreement between an owner and a third-party

consignee whereby the consignee agrees to sell the owners goods in
exchange for a fee. 
How Does Consignment Work?
• Consignment is an arrangement in which an item is placed in the care of another until purchased by a buyer. Until the
item is sold, the consignor still claims ownership and is still responsible for anything that may happen to the item
while it is in the care of the consignee.
• Example : suppose Frank consigns his antique Watch to Joy, who offers to sell it for him at his store. Frank (the
consignor) and Joy (the consignee) have not exchanged any money; no purchasewas transacted, and Frank still owns the
watch.One day a customer purchases the watch at Joy’s store. Joy gives the proceeds to Frank, less an agreed-upon
consignment fee for Joy’s service as the seller.
Thank You