V.Krishnan & Associates

 

Telephone :044-28440272

Cell : 091-(0)-9444002896

Email:vkakrish@gmail.com

  

How to set up a business

Chartered Accountant Chennai is a Chennai based firm named V.Krishnan and Associates providing Accounting,Auditing, Tax Refunds,Company Registration's and Training for Chartered Accounts.

Opening a new organisation can always be difficult and the forms which have to be submitted and various people have to be met and a permission has to be obtained from reserve bank of india.

There are many people who are interested in becoming an Entrepreneur or an Industrialist. Their main difficulty is how to effectively procure finance for the project. First, let us know what is meant by a 'Project'. A 'Project' is an intention of person to carry out an activity as a part of his earning process. It may be starting a new business undertaking, expanding the existing business undertaking, diversification from the existing business or modernisation of the undertaking. All this requires a considerable amount of investment in the form of Land, Building, Plant & Machinery, Furniture & Fittings and/or Vehicles. For making this investment, there requires a source of finance, viz., Own & Outside Source. Own source is the finance that can be contributed by the Entrepreneur in the form of Money, Land, Building or other Assets which are already in his possession. The Outside Source refers to help in the form of finance obtained from friends, public, bankers, financial institutions and Government. Financial Requirement, based on the needs of finance, can be divided into three major types, viz.: - Long-term Requirement Medium-term Requirement Short-term Requirement Usually, in a Project Finance, the requirement is only long-term. However, there may be situation where such finance is required by the Management only on a medium term or short term basis. For example, major finance of the Entrepreneur is invested under a particular scheme which matures in a short/medium period, where however, the Entrepreneur is interested to execute the project immediately the Entrepreneur may go in for short-term financing or medium term financing. Long-term Requirement is usually in the range of 5 to 10 years or even more. These are usually raised in the form of Share Capital (Equity or Preference) Debentures Bonds Loan from Financial Institutions/Banks Venture Capital Funding and International Financing Medium-term Requirement is in the range of 1 to 5 years. However, as a general rule a period of 3 years is taken as Medium-term Requirement. These are usually raised in the form of Preference Shares Debentures Bonds Loan from Financial Institutions/Banks Deposits (Upto 3 Years) and External Commercial Borrowings Short-term Requirement is those that are required for a period less than 1 year. However, certain persons treat a period upto 3 years as Short-term. Usually, the credit period allowed by Suppliers/Service Providers or the advances received from the Customers are the major short-term financing availed. Besides, these financial requirements are met from Deposits and Commercial Banks. Every Project Finance raised has a cost involved therein, i.e., pay out in the form of interest/dividends. It also involves loss of control (as other stakeholders may also like to take part in the management) and risk (the risk of repaying these finances). Hence, raising this money requires lot of careful planning and execution. It requires analysis of Cost involved, Risk involved and diversion of Control acceptable to the Entrepreneur. It is here the professionals play an important role. We can work out a reasonably good financial structure for your projects.

Project Finance Chennai
 
Income Tax Chennai
Income Tax Refund

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