Financial Management and Corporate Finance

Financial Management and Corporate Finance session

The session started with glimpses of different effects that drive a market and slowly it progressed into a broader side of Economics i.e. Balance of Payments which actually forms the base of current Financial Market. Mr. Anindya Banerjee, an alumni of Globsyn Business School, effortlessly reflected his insight about the market scenario which he has gained through experiential learning.

He discussed on the entire Balance of Payment (BOP) and concluded it in terms of accounting statement. In this context, he told that the Accounting Standards prepared by The Institute of Management Accountants (IMA) is called the Balance of Payment Mechanisms 6 (BPM 6). This technique is used almost by every Government in the world. The NRI can access the two kinds of bank accounts which are Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts. The concept of Surplus and Deficit came along while describing Current Account and Capital Account.

He also highlighted on the conception of capital formation. He talked about the Foreign Portfolio Investment (FPI) which is also called Foreign Institutional Investor (FII) and also highlighted on the theory of Foreign Direct Investment (FDI) which means any type of investment beyond 10% holding and also pointed out the difference between the FII and FDI. He also mentioned the role and significance of NRI (NRE+NRO) and the theory of Corporate Borrowings (CR) with regard to capital formation. Borrowing is nothing but an indication of negative savings. He discussed about the concepts of open and closed economy. He also discussed about the Role of RBI which is the only institution in India that applies to every country in the world who only has the permissibility of printing currency.

The theories we have learned so far in different books of different subjects are important as it give us the path for recognition of different scenarios and problems in respect to Financial Management and Corporate Finance, but at the same time it give us the idea about all these under a specific context. The current market scenarios are ever changing and evolving and so the handling techniques. His use of practical examples and pictorial representations made us want to reach to the bottom of the facts easily and without putting much pressure on what we have known so far and what we should know.

He explained brilliantly how one’s income is one’s expenditure and without any expenditure there can’t be any income. The bridge he established between finance and economics through his vivid explanations has been truly amazing and worth knowing. Throughout this session he involved us in every bit of knowledge imparted thereby make the time spent interesting and exciting instead if unidirectional.

Ritiman Thakur
PGDM 08, Globsyn Business School
Aparna Ganguly
PGDM 08, Globsyn Business School

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