Self-esteem an Example of the Topic Psychology Essays by

Self-esteem Personality trait has long been the subject of many research studies. But perhaps, the most discussed personality trait that has generated a considerable amount of theoretical and empirical research is the topic of self-esteem. This paper seeks to further examine the nature of self-esteem through new conceptualizations of its properties and dimensions, and to explore how these new ideas in self-esteem research impact on a specific area of psychological well-being an inpiduals vulnerability to depression. Need essay sample on "Self-esteem" topic? We will write a custom essay sample specifically for you Proceed First, self-esteems definition is examined. According to Rosenberg (1965), self-esteem is the evaluation which the inpidual makes and customarily maintains with regard to himself; it expresses an attitude of approval or disapproval (p. 5). Most researchers who investigate self-esteem utilize this definition as a starting point for their own definition of self-esteem. Coopersmith (1967) states that self-esteem is the component of the self-concept that refers to .ones feelings of self-worth. Holland and Andre (1994) explains that self-esteem is how an inpidual perceive the value or sense of worth about their selves. As it is, self-esteem can be best defined as an inpiduals feelings of self-worth or self-regard. While it is necessary to define self-esteem, it is equally important to acknowledge the motivational aspect of self-esteem (especially this investigation deals with depression). Gecas (1991) maintains that because an inpidual has a self-concept, he will be motivated to maintain and enhance it, to conceive of it as efficacious and consequential, and to experience it as meaningful and real (p. 174). Gecas further explains that one way a person can do this is through the self-esteem motive. The self-esteem motive refers to a persons desire to view ones self favourably and behave in such a way that will maintain or enhance a favorable view of ones self. In short, self-esteem can be motivational. Motivation is that which gives direction to action and intensity and persistence to the directed action. Taking these two definitions into account, it can be said that a persons level of self-esteem dictates what types of behaviour that particular person may engage in. With this motivational aspect of self-esteem develops a debate that has long been the interest of many researches. There has been a long standing debate on the impact of self-esteem to an inpiduals psychological well-being, especially his vulnerability to depression. According to Whitley (1983), self-esteem is related to psychological well-being both empirically and theoretically; that is, high self-esteem is seen by clinicians to be a healthy and desirably characteristic and that many literatures has examined the connection of self-esteem to depression, anxiety, poor general adjustment, and self-referral to mental health professionals. One position in this debate sees self-esteem as a powerful influence on inpidual health and stability. Research in depression provides an example of evidence for a hypothesized protective factor of high self-esteem against the development of symptomatology. Although Becks (1967) theory of depression does not seem to be as emphatic on the idea that high self-esteem is a protective factor; it does suggest that low self-esteem results in a type of vulnerability to depressive symptoms. Beck also records the common finding people suffering from depression commonly express negative feelings about themselves, specifically feelings of worthlessness. A negative evaluation of the self forms one leg of Becks primary cognitive triad of depressive symptoms where the depressed inpidual not only sees himself as inferior, but he dislikes himself for it (p. 259). A connection between level of self-esteem and coexisting depressive symptoms has been recorded across many studies. Many researchers in psychology have adopted this position. Feathers (1985) study of the relations among gender roles, self-esteem, and depressions suggested that self-esteem may be as much as construction of Western, inpidualized culture as are masculinity and femininity. Feather found the widely reported negative correlation between masculinity and depression disappeared when the effects of self-esteem were controlled. This suggested that masculinity and self-esteem might reflect the same construct. Thus, according to Feather, ...self-esteem may reflect in part the dominant masculine values of Western-type cultures (p. 491). Thus, traits researchers attributed to self-esteem were in fact the same traits that researchers attributed to masculinity. Thus one who is masculine, goal- or action-oriented is reinforced for reflecting dominant cultural goals and by virtue of those traits is said to have high self-esteem. It is, however, still unclear as to what is assigned the protective factor against depression high self-esteem or adoption of male-oriented socially supported roles. In 1993, Andrews and Brown compared Rosenbergs (1965) SES to their interview measure. They called their measure the Self Evaluaton and Social Support scale (SESS). The SESS was designed to measure positive and negative self-evaluation using scales measuring personal attributes, role performance, and self-acceptance across occupational, domestic and interpersonal contexts. Andrews and Brown reported that the interview measure was more successful at predicting subsequent depression due to its focus on specific dimensions of self-dissatisfaction for each inpidual. Each interview was conducted by a researcher who gathered facts and coded emotional tone, salience, and frequency of positive and negative comments. This meant the interviewer was responsible for judging the relevance of information and emotional context for inclusion into the data set, comparing them with anchors, and then making ratings of self-esteem for the inpidual. This is clearly a more fluid, state-based approach to self-esteem. Andrews and Brown contrast this approach to the trait-based self-report questionnaires, which they hypothesize are handicapped by their demands on reliability and comparability of item responses across inpiduals. They argue that this focus of the trait-based measures is not sensitive to specific abilities or domain that have salience to the inpidual subject. However, since previous research demonstrates that the prediction of depressive symptoms from level of self-esteem is inconsistent, many researchers have begun looking at a different aspect of self-esteem for a better definition of its relationship with vulnerability to depressive symptoms. This they called the lability of self-esteem. Self-esteem lability is the tendency of an inpiduals self-esteem to fluctuate over time in response to environmental or social influences (Butler, Hokanson & Flynn, 1994). Butler et al. (1994) found that self-esteem lability is a better index of vulnerability to depression than trait or level-bases self-esteem (whether self-esteem is high or low). This research suggested that self-esteem lability interacts with daily events to produce depressive symptoms wherein an inpidual with labile self-esteem had a higher reactivity to life stressors than an inpidual with a more stable sense of self-esteem. Whisman and Kwon (1993) examined the role of self-esteem and hopelessness to life stress and dysphoria. They assessed eighty undergraduates on self-esteem, hopelessness, and dysphoria and reassessed them after three months on life events, daily hassles, hopelessness, and dysphoria (Whisman and Kwon, 1993). They found a significant association between residual change in dysphoria and self-esteem, life stress and an extreme interaction of both. Furthermore, they found that residual change in hopelessness mediated the relations between residual change in dysphoria and both self-esteem and life stress (Whisman and Kwon, 1993, abstract). These studies provide a reasonably solid basis upon which to advance the idea that self-esteem lability has a strong connection with vulnerability to depression. The models generally proposed using self-esteem lability follow a diathesis-stress structure in which an inpidual carries some kind of vulnerability to depressive symptoms that, while predisposing him to a depressive illness, will not develop into depression unless triggered by the correct environmental stressors. The vulnerability to illness is not enough to trigger expression of symptoms. Vulnerability and stressor must both be present at sufficient levels and interact to produce depressive symptoms. The existing research literature is generally supportive of the role of social self-esteem in prediction of depressive symptoms. Many models of depressive vulnerability use the concept of reliance upon external sources for self-esteem or social comparison as a diathesis for future illness. However, there are substantive differences for the relation of personal relevance of this concept. For inpiduals endorsing low levels of social esteem relevance, depressive symptoms were predicted by adverse events and an interaction of social self-esteem and self-esteem lability. Further analysis of the relation between the variables in this interaction term revealed a negative relationship between these variables. This would suggest that for inpiduals endorsing low relevance of social self-esteem, high levels of lability may have a predictive relationship with depressive symptoms when those inpiduals experience low levels of self-esteem derived from social sources. For inpiduals endorsing high relevance of social esteem, depressive symptoms were predicted through an interaction of social self-esteem level and adverse events. While exploratory at this time, these findings would seem to leave little doubt that social self-esteem and its centrality to the inpidual have important effects in a model of vulnerability to depressive symptoms. References Andrews, B., & Brown, G. W. (1993). Self-esteem and vulnerability to depression: The concurrent validity of interview and questionnaire measures. Journal of Abnormal Psychology, 102, 565-572. B.E. Whitley, J. (1983). Sex role orientation and self-esteem: A critical meta-analytic review. Journal of Personality and Social Psychology, 44(765-778). Beck, A. (1967). Depression: Clinical, experimental, and theoretical aspects. London: Staples. Butler, A. C., Hokanson, J. E., & Flynn, H. A. (1994). A comparison of self-esteem lability and low trait self-esteem as vulnerability factors for depression. Journal of Personality and Social Psychology, 66, 166-177. Coopersmith, S. (1967). The antecedents of self-esteem. San Francisco: W.H. Freeman and Company. Feather, N. T. (1985). Masculinity, femininity, self-esteem, and subclinical depression. Sex Roles, 12, 491-500. Gecas, V. (1991). The self-concept as a basis for a theory of motivation. In J. A. Howard & P. L. Callero (Eds.), The self-society dynamic: Cognition, emotion, and action (pp. 171-187). New York: Cambridge University Press. Holland, A., & Andre, T. (1994). The relationship of self-esteem to selected personal and environmental resources of adolescents. 29(114), 345-360. Rosenberg, M. (1965). Society and the adolescent self-image. Princeton: Princeton University Press. Whisman, M. A., & Kwon, P. (1993). Life stress and dysphoria: The role of self-esteem and hopelessness. Journal of Personality and Social Psychology, 65(5), 1054-1060.

Self-esteem an Example of the Topic Psychology Essays by

Self-esteem Personality trait has long been the subject of many research studies. But perhaps, the most discussed personality trait that has generated a considerable amount of theoretical and empirical research is the topic of self-esteem. This paper seeks to further examine the nature of self-esteem through new conceptualizations of its properties and dimensions, and to explore how these new ideas in self-esteem research impact on a specific area of psychological well-being an inpiduals vulnerability to depression. Need essay sample on "Self-esteem" topic? We will write a custom essay sample specifically for you Proceed First, self-esteems definition is examined. According to Rosenberg (1965), self-esteem is the evaluation which the inpidual makes and customarily maintains with regard to himself; it expresses an attitude of approval or disapproval (p. 5). Most researchers who investigate self-esteem utilize this definition as a starting point for their own definition of self-esteem. Coopersmith (1967) states that self-esteem is the component of the self-concept that refers to .ones feelings of self-worth. Holland and Andre (1994) explains that self-esteem is how an inpidual perceive the value or sense of worth about their selves. As it is, self-esteem can be best defined as an inpiduals feelings of self-worth or self-regard. While it is necessary to define self-esteem, it is equally important to acknowledge the motivational aspect of self-esteem (especially this investigation deals with depression). Gecas (1991) maintains that because an inpidual has a self-concept, he will be motivated to maintain and enhance it, to conceive of it as efficacious and consequential, and to experience it as meaningful and real (p. 174). Gecas further explains that one way a person can do this is through the self-esteem motive. The self-esteem motive refers to a persons desire to view ones self favourably and behave in such a way that will maintain or enhance a favorable view of ones self. In short, self-esteem can be motivational. Motivation is that which gives direction to action and intensity and persistence to the directed action. Taking these two definitions into account, it can be said that a persons level of self-esteem dictates what types of behaviour that particular person may engage in. With this motivational aspect of self-esteem develops a debate that has long been the interest of many researches. There has been a long standing debate on the impact of self-esteem to an inpiduals psychological well-being, especially his vulnerability to depression. According to Whitley (1983), self-esteem is related to psychological well-being both empirically and theoretically; that is, high self-esteem is seen by clinicians to be a healthy and desirably characteristic and that many literatures has examined the connection of self-esteem to depression, anxiety, poor general adjustment, and self-referral to mental health professionals. One position in this debate sees self-esteem as a powerful influence on inpidual health and stability. Research in depression provides an example of evidence for a hypothesized protective factor of high self-esteem against the development of symptomatology. Although Becks (1967) theory of depression does not seem to be as emphatic on the idea that high self-esteem is a protective factor; it does suggest that low self-esteem results in a type of vulnerability to depressive symptoms. Beck also records the common finding people suffering from depression commonly express negative feelings about themselves, specifically feelings of worthlessness. A negative evaluation of the self forms one leg of Becks primary cognitive triad of depressive symptoms where the depressed inpidual not only sees himself as inferior, but he dislikes himself for it (p. 259). A connection between level of self-esteem and coexisting depressive symptoms has been recorded across many studies. Many researchers in psychology have adopted this position. Feathers (1985) study of the relations among gender roles, self-esteem, and depressions suggested that self-esteem may be as much as construction of Western, inpidualized culture as are masculinity and femininity. Feather found the widely reported negative correlation between masculinity and depression disappeared when the effects of self-esteem were controlled. This suggested that masculinity and self-esteem might reflect the same construct. Thus, according to Feather, ...self-esteem may reflect in part the dominant masculine values of Western-type cultures (p. 491). Thus, traits researchers attributed to self-esteem were in fact the same traits that researchers attributed to masculinity. Thus one who is masculine, goal- or action-oriented is reinforced for reflecting dominant cultural goals and by virtue of those traits is said to have high self-esteem. It is, however, still unclear as to what is assigned the protective factor against depression high self-esteem or adoption of male-oriented socially supported roles. In 1993, Andrews and Brown compared Rosenbergs (1965) SES to their interview measure. They called their measure the Self Evaluaton and Social Support scale (SESS). The SESS was designed to measure positive and negative self-evaluation using scales measuring personal attributes, role performance, and self-acceptance across occupational, domestic and interpersonal contexts. Andrews and Brown reported that the interview measure was more successful at predicting subsequent depression due to its focus on specific dimensions of self-dissatisfaction for each inpidual. Each interview was conducted by a researcher who gathered facts and coded emotional tone, salience, and frequency of positive and negative comments. This meant the interviewer was responsible for judging the relevance of information and emotional context for inclusion into the data set, comparing them with anchors, and then making ratings of self-esteem for the inpidual. This is clearly a more fluid, state-based approach to self-esteem. Andrews and Brown contrast this approach to the trait-based self-report questionnaires, which they hypothesize are handicapped by their demands on reliability and comparability of item responses across inpiduals. They argue that this focus of the trait-based measures is not sensitive to specific abilities or domain that have salience to the inpidual subject. However, since previous research demonstrates that the prediction of depressive symptoms from level of self-esteem is inconsistent, many researchers have begun looking at a different aspect of self-esteem for a better definition of its relationship with vulnerability to depressive symptoms. This they called the lability of self-esteem. Self-esteem lability is the tendency of an inpiduals self-esteem to fluctuate over time in response to environmental or social influences (Butler, Hokanson & Flynn, 1994). Butler et al. (1994) found that self-esteem lability is a better index of vulnerability to depression than trait or level-bases self-esteem (whether self-esteem is high or low). This research suggested that self-esteem lability interacts with daily events to produce depressive symptoms wherein an inpidual with labile self-esteem had a higher reactivity to life stressors than an inpidual with a more stable sense of self-esteem. Whisman and Kwon (1993) examined the role of self-esteem and hopelessness to life stress and dysphoria. They assessed eighty undergraduates on self-esteem, hopelessness, and dysphoria and reassessed them after three months on life events, daily hassles, hopelessness, and dysphoria (Whisman and Kwon, 1993). They found a significant association between residual change in dysphoria and self-esteem, life stress and an extreme interaction of both. Furthermore, they found that residual change in hopelessness mediated the relations between residual change in dysphoria and both self-esteem and life stress (Whisman and Kwon, 1993, abstract). These studies provide a reasonably solid basis upon which to advance the idea that self-esteem lability has a strong connection with vulnerability to depression. The models generally proposed using self-esteem lability follow a diathesis-stress structure in which an inpidual carries some kind of vulnerability to depressive symptoms that, while predisposing him to a depressive illness, will not develop into depression unless triggered by the correct environmental stressors. The vulnerability to illness is not enough to trigger expression of symptoms. Vulnerability and stressor must both be present at sufficient levels and interact to produce depressive symptoms. The existing research literature is generally supportive of the role of social self-esteem in prediction of depressive symptoms. Many models of depressive vulnerability use the concept of reliance upon external sources for self-esteem or social comparison as a diathesis for future illness. However, there are substantive differences for the relation of personal relevance of this concept. For inpiduals endorsing low levels of social esteem relevance, depressive symptoms were predicted by adverse events and an interaction of social self-esteem and self-esteem lability. Further analysis of the relation between the variables in this interaction term revealed a negative relationship between these variables. This would suggest that for inpiduals endorsing low relevance of social self-esteem, high levels of lability may have a predictive relationship with depressive symptoms when those inpiduals experience low levels of self-esteem derived from social sources. For inpiduals endorsing high relevance of social esteem, depressive symptoms were predicted through an interaction of social self-esteem level and adverse events. While exploratory at this time, these findings would seem to leave little doubt that social self-esteem and its centrality to the inpidual have important effects in a model of vulnerability to depressive symptoms. References Andrews, B., & Brown, G. W. (1993). Self-esteem and vulnerability to depression: The concurrent validity of interview and questionnaire measures. Journal of Abnormal Psychology, 102, 565-572. B.E. Whitley, J. (1983). Sex role orientation and self-esteem: A critical meta-analytic review. Journal of Personality and Social Psychology, 44(765-778). Beck, A. (1967). Depression: Clinical, experimental, and theoretical aspects. London: Staples. Butler, A. C., Hokanson, J. E., & Flynn, H. A. (1994). A comparison of self-esteem lability and low trait self-esteem as vulnerability factors for depression. Journal of Personality and Social Psychology, 66, 166-177. Coopersmith, S. (1967). The antecedents of self-esteem. San Francisco: W.H. Freeman and Company. Feather, N. T. (1985). Masculinity, femininity, self-esteem, and subclinical depression. Sex Roles, 12, 491-500. Gecas, V. (1991). The self-concept as a basis for a theory of motivation. In J. A. Howard & P. L. Callero (Eds.), The self-society dynamic: Cognition, emotion, and action (pp. 171-187). New York: Cambridge University Press. Holland, A., & Andre, T. (1994). The relationship of self-esteem to selected personal and environmental resources of adolescents. 29(114), 345-360. Rosenberg, M. (1965). Society and the adolescent self-image. Princeton: Princeton University Press. Whisman, M. A., & Kwon, P. (1993). Life stress and dysphoria: The role of self-esteem and hopelessness. Journal of Personality and Social Psychology, 65(5), 1054-1060.

Writing the Century

Writing the Century Writing the Century Writing the Century By Maeve Maddox Melvin Merzon sets me this multi-part question: How would you write 21st Century?  In a legal document? In a business letter? In fiction? In   a   nonfiction context?    21st Century? 21st century? Twenty-first Century? Twenty-First Century? twenty-first century? My short answer for all specified contexts is twenty-first century. Unless the name of the century begins a sentence or is part of a proper name, it is written in all lowercase letters: We are living in the twenty-first century. When a century is part of a proper name, no hard and fast rule can apply. Someone naming a program, company or a book may express the century any way they wish: Twenty-first Century Scholars Twenty-First Century Foundation Twenty-First-Century Gateways (In this book title the century name has become an adjective.) 20th Century Fox Century 21 Realty Newspaper headline writers may also exercise freedom when writing the century: New Year Rings in 21st Century Bottom line: go with twenty-first century unless there is some reason not tofor example, contrary guidelines in a style manual you are required to follow. Writing the Decades Decades may be spelled out or expressed in numerals: the eighties the 1980s NOTE: Theres no apostrophe between the numerals and the letter s. The same rule about capitalization applies to decades as to centuries: if the decade is part of a proper name or title, it will be capitalized; otherwise leave it in lowercase. For example, write the nineties, but the Gay Nineties Referring to the first two decades of a century can be tricky. For example, if you want to talk about the first decade of the century, you cant write the 1900s, or the 2000s because too many readers would assume youre referring to the entire century. Another problem is that not all authors agree as to what years are included in a decade. Is the first decade of the 1900s 1900 to 1909, or 1900-1910? And what about the second decade? Some writers talk about the teens of a century, but what about the years ending in -10, -11, and -12? When writing about the first two decades of a century, its probably best to be a little wordy for the sake of clarity. For example: History seemed to repeat itself in the decade 2000-2009. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Writing Basics category, check our popular posts, or choose a related post below:Comparative Forms of AdjectivesBody Parts as Tools of Measurement35 Synonyms for Rain and Snow

Chevron Corporation Case Study Example | Topics and Well Written Essays - 4250 words

Chevron Corporation - Case Study Example The company owns or has stakes in 9,700 gas stations in the US which operate under the Chevron and Texaco brands. Outside the US it owns or has stakes in 15,400 gas stations, which also use the Caltex brand. The study examines in detail, the three different sectors or industries that Chevron has a stake in: oil and gas exploration and production, petroleum refining, and chemical industry. Earnings for the upstream segment are closely aligned with industry price levels for crude oil and natural gas. Crude oil and natural gas prices are subject to external factors over which the company has no control. Earnings for the downstream segment are closely tied to margins on the refining and marketing of products that include gasoline, diesel, jet fuel, lubricants and fuel oil. The company recorded sales growth of 5.1 percent to $221 billion and net income of $18 billion. Revenue of the company rose to $61.4 billion from $47.7 billion. Worldwide oil-equivalent production fell by 42,000 barrels to 2.61 million barrels per day. A detailed SWOT Analysis has also been conducted in the study, analyzing the various internal sources to examine the strengths and weaknesses, and external factors to examine the opportunities and threats in the environment. Finally, the conclusion and recommendations analyze the different strengths of the company to offset the weaknesses and environmental threats faced by Chevron. Chevron - Company overview Chevron Corporation (Chevron) is one of the largest oil refiners in the United States. The company was incorporated in 1926 and currently has operations in the United States and approximately 180 additional countries. Chevron Corporation, then called Standard Oil Company of California, in 1938 made a huge oil discovery in Saudia Arabia, which eventually led to the discovery of 52 oil fields. After World War II, the company began a major effort to market Arabian crude oil, which was probably the single most important factor in establishing Chevron as a major multinational company. The company acquired thousands of service stations and terminals on the East Coast and part ownership of many more throughout Europe, East Africa, and Asia. The Chevron discovery changed the course of history throughout the world (Jiffynotes, 1998). Today, the company is engaged in every aspect of the oil and natural gas industry, including exploration and production, refining, marketing and transportation, chemicals manufacturing and sales, geothermal and power generation. It is headquartered in San Ramon, California and employs approximately 65,000 people. The company recorded revenues of $204,892 million, during the fiscal year ended December 2006, an increase of 5.8% over 2005. The operating profit of the company was $32,497

Strategic Management Unit 5 IP Assignment Example | Topics and Well Written Essays - 1500 words

Strategic Management Unit 5 IP - Assignment Example A business is as good as its planning, controlling and implementation. During this study different strategic discussions will be there which would help the company to keep its footsteps in the Tennessee market. Strengths: - It is a very well known company throughout the USA. As it is very well known people can easily recall its name. Management of the company would not find any problem regarding their recognition of their products. Company makes good quality of musical instruments. Products are of very high quality. Customers are very stratified with the products made by company. Quality assurance is a real strength for the company. Price ranges of their products are also well within the reach of normal customers. Company is having a great pool of experienced work force. Tools Corp Corporation is having great after sales services facilities for their customers. After sales service is also a great strength for the company. Weakness: - Modern day musical instruments companies are coming up with different kinds of innovative products. Company is having certain set of products. Company is lacking in innovative products. Company has lesser stocks of products for sudden demand in the market. Company’s total working model is not that much technically advanced like other companies in the industry. Company is over dependent on one or two vendors. Every other player in the industry are giving importance to promotion and branding. Company is lacking in this aspect also. Opportunities: - Tennessee is a music loving state. People here are very fond of their music. As a musical instrument company it would create lots of opportunity for the company. Opportunities are very high as cost-effective musical instrument companies are in few numbers in this market. Whole lot of middle income people of Tennessee can be opportunity for the company. New and young people are making new bands. These types of new budding members of the state can be opportunity for the

Fox's Book of Martyrs Religious Essay Example | Topics and Well Written Essays - 1000 words

Fox's Book of Martyrs Religious - Essay Example The main objective of writing this book is to attack the Roman Catholic Church and it' s hypocritical values. The writer has given detailed accounts of the corruption in the Roman Catholic Church and also the illegal or unethical ways; the Popes resorted to, to attain the position of Pope. The motive behind writing this book was to create awareness amongst the masses to rise against the tyrannical rule of the Romans. Fox himself was the victim of the unjust rule of the king and the notorious Bishop. Bishop had made an unsuccessful attempt of nabbing Fox and persecuting him. He was lucky enough to escape from his country. Being the witness of such gruesome incidents, he was provoked to write a book, and he did this with utmost dedication and sincerity. He even neglected his health and continued writing for this noble cause. The book speaks of the atrocities of Queen Mary on the Protestants and about the cruel Bishop Bonner. It was only after the accession of Queen Mary to the throne t hat the reign of terror began. For the sake of restoring the supremacy of the Roman Empire and the Roman Catholic Church, she ordered the persecution of those who protested against her power and Roman Catholicism. Hundreds of Protestants were burnt alive during her reign. It is really ironical that both the Romans and the Protestants fought in the name of God but Romans followed the unethical way and massacred those who followed the right path as directed by God. Although they shared common values, their motive was eclipsed by the vices like that of thirst for power and they adopted immoral ways to restore their supremacy. Thus this book not only deals with the tyranny of the Romans but also it speaks about the bravery of the martyrs who sacrificed their lives for the sake of their God and his Gospels. This book appeals not only to the heart but also to the head or mind of every Englishmen. The work of Fox was so appealing and so realistic that it was ordered that his work be displa yed along with the Bible in the churches and all public places where people could read the book. During the reign of Queen Elizabeth I, the Englishmen accepted this book as an expression of national faith, second in place to the Bible. Whenever an Englishman entered any church, he discovered for himself about the ruthless behavior of Roman Catholics and about the valor of the Martyrs. The aim of this book was not merely to glorify the Protestants and undermine the Romans, but also about the human values as a whole as suggested by the Almighty. In the first part of the book, in the early Christian days we come across the saints like St. Stephen, James The Great, St. Luke, St. Philip, St. Mathew, James The Less, St. Peter and St. Paul etc. St. Stephen was stoned to death by the murderers of Christ, just because he tried to preach the Gospels of Christ to them in a faithful manner. Immediately after the persecution of St. Stephen all those who professed their beliefs in Jesus Christ as their Lord, had to face martyrdom. After 10 years of the persecution of St. Stephen, James the Great was beheaded. He was the son of Zebede and relative of Christ. He was beheaded by Herod Agrippa, the Governor of Judea. Agrippa used the strategy of attacking the leaders of the

SREI India Financial and SWOT Analysis

SREI India Financial and SWOT Analysis 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 the Indian 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 India (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 andtailor 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 manufacturers. 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 across 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 share 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: 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"This 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 normal 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 refinement SREI India Financial and SWOT Analysis SREI India Financial and SWOT Analysis 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 the Indian 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 India (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 andtailor 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 manufacturers. 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 across 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 share 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: 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"This 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 normal 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 refinement

Earthquakes Essay example -- essays research papers

I chose to research earthquakes and the prediction of earthquakes because I was curious as to how they work. In this paper, I will discus the history of earthquakes, the kinds and locations of earthquakes, earthquake effects, intensity scales, prediction, and my own predictions. An earthquake can be defined as vibrations produced in the earth's crust. Tectonic plates have friction between them which builds up as it tries to push away and suddenly ruptures and then rebounds. The vibrations can range from barely noticeable to a disastrous, and destructive act of nature. Six kinds of shock waves are generated in the process. Two are classified as body waves, that is, they travel through the inside of the earth and the other four are surface waves. The waves are further classified by the kinds of motions they incur to rock particles. Primary or compressional waves, known as P waves, send particles moving back and forth in the same direction as the waves are traveling, as secondary or transverse shear waves, known as S waves, create vibrations perpendicular to their direction of travel. P waves always travel at faster speeds than S waves, so whenever an earthquake occurs, P waves are the first to arrive and to be recorded at geophysical research stations worldwide. During ancient times very little was know about. Some of the ancient Greek philosophers connected earthquakes to underground winds, where others blamed them on fires in the depths of the earth. Around AD 130 the Chinese scholar Chang Heng, believing that waves must ripple through the earth from the source of an earthquake, created a bronze object to record the directions of such waves. Eight balls were carefully balanced in the mouths of eight dragons placed around the outside of the object. When a passing earthquake occurred the wave would cause one or more of the balls to drop. Earthquake waves were observed in this and other ways for centuries, but more scientific theories as to the causes of quakes were not proposed until modern times. One such concept was recreated and advanced in 1859 by an Irish engineer, Robert Mallet. Perhaps recalling on his knowledge of the strength and behavior of construction materials, Robert Mallet proposed that earthquakes occurred "either by sudden flexure and constraint of the elastic materials forming a portion of the earth's crust or by their giving way an... ...orth of the earthquake that occurred the day before, this time I was wrong, there were two that occurred near the San Francisco bay area and none within a 50 mile radius of my approximation. The next couple days I predicted earthquakes that were within a 100 mile radius than were they actually occurred. From my experiments I concluded that predicting earthquakes was easy, you just have to pick a spot on the fault. The only thing that troubled me and probably most scientists, is magnitude, there is no possible way of predicting an earthquakes magnitude. Which is what we are really trying to predict. Earthquakes happen all the time, but what we are really trying to figure out how to predict is when a major earthquake is going to occur. I learned that earthquakes are almost unpredictable, and devastating acts of nature. I also learned how earthquakes occur and almost all of the "earthquake dictionary". There is still alot more to be known about earthquakes that we still do not know about today. Prediction of large earthquakes is still under development, where prediction of small, unnoticeable earthquakes can be easy to predict because they happen mainly around fault lines.