Name: Ocier, Angelica

Course/Year/Sched: BSBA 2-3rd Schedule

Instructor: Mr. Danilo Makiling

Financial Management Activity

1. Explain the various sources of financing.

- Equity, debt, debentures, retained earnings, term loans, working capital loans, letter of
credit, euro issuance, venture funding, and other forms of business financing are source of
financing. This money is used in a variety of situations. They are classified according to their
time period, ownership and control, and source of generation. It is best to assess each
source of capital before deciding on one.
2. What is meant by security financing?
- The lending of securities (stocks, bonds, and asset-backed securities) by one party to
another in exchange for cash is known as securities financing.
3. What is debt financing?
- Debt finance is the technical word for borrowing money from a third party with the promise
to repay the principal plus a predetermined proportion of interest.
4. Critically examine the advantages and disadvantages of equity shares.
- The advantages of investing in equity shares include dividend entitlement, capital gains,
limited liability, control, claim over income and assets, right shares, bonus shares, liquidity,
and so on. The disadvantages include dividend uncertainty, high risk, market price
fluctuation, limited control, residual claim, and so on.
5. Discuss the feature of equity shares.
- The corporation retains its equity share capital. It is only returned when the company is
closed. Equity shareholders have voting rights and help to choose the company's
management. The dividend rate on equity capital is determined by the availability of surplus
capital.
6. What are the merits of the deferred shares?
- Commonly used, deferred shares give their holders a large amount of money;
generally higher than the average rate offered on other classes of shares, but is paid only
after all other classes have received their dividends.
7. Explain the merits and demerits of preference shares.
- Preferences shareholders experience both advantages and disadvantages. At the top, they
collect the payment of the dividend before the sellers receive the money. But on the other
hand, they do not get the voting rights that ordinary shareholders usually have.
8. List out the types of debentures.
- Secured, Unsecured, Registered, Bearer, Redeemable, Non-Redeemable, Convertible, Non-
Convertible, First, and Second Debentures.
9. Evaluate the overall view of debentures.
- Debentures are a fixed income instrument. It is provided by the company and depends
on its assets. It pays interest periodically and long term in nature. Payments are not
supported by guarantees; they depend on the reputation of the company and the respect of
the company.
10. How an internal source of finance is used in the industrial concern?
- Internal sources refer to income from within the company. There are many ways in which a
business building can be used, including owner's equity, equity financing, and asset sales.
 Owner's capital refers to the amount of money a homeowner invests. This usually comes
from their own money.
11. What is retained earnings?
- Retained earnings are the amount of profit a company has left over after paying all its direct
costs, indirect costs, income taxes and its dividends to shareholders. This represents the
portion of the company's equity that can be used, for instance, to invest in new equipment,
R&D, and marketing.
12. Evaluate the advantages and disadvantages of retained earnings.
- As you can see, there are pros and cons to having savings. Benefits include the ability
to increase profits and reserve funds for emergencies. However, on the other hand, the
negative aspects of retained earnings include the ability to stop shareholders from
keeping money that can be used for dividends.
13. How does a depreciation fund help the industrial concern as source of finance?
- However, in some cases, the depreciation of costs allows business companies to save
money and pay taxes on distribution and equity while retaining part of the income
from normal business activities. It is in this sense that depreciation can be considered as an
indirect source of income.
14. Evaluate overall structure of the loan financing.
- Loan structure refers to the loan term, interest rate, risk, collateral, and repayment. Loan
structure is designed to meet the borrowers' financing requirements while protecting the
lender from losses due to the borrowers' failure to repay the debt, interest, and fees.
15. Explain the Commercial Bank financing.
- A commercial bank is a financial institution that provides its customers with services such
as loans, certificates of deposit, savings accounts, bank loans, etc. These companies make
money by lending money to individuals and earning interest on the loans.
16. Enumerate the major development banks.
Major Multilateral Development Banks
- European Investment Bank: €555.8 billion ($606.5 billion) International Bank for
Reconstruction and Development, World Bank Group: $283 billion. Asian Development
Bank: $191.9 billion. International Development Association, World Bank Group: $188.5
billion.
17. Explain the UTI and LIC in industrial financing.
- Encourage savings of lower and middle-class people. Sell nits to investors in different parts
of the country. Convert the small savings into industrial finance. To give investors an
opportunity to share the benefits and fruits of industrialization in the country. Protect the
capital of the people by investing funds into government securities. Provide various loans
like direct loans to industries, housing loans, loans to various national projects at reasonable
interest rates.
18. What is cash credit?
- A Cash Credit (CC) is a source of short-term financing for companies. In other words, cash
credit is a short-term loan provided by a bank to a company. It allows businesses to
withdraw money from bank accounts without maintaining a credit balance. The account
is restricted to borrowing only up to the borrowing limit.
19. Mention the functions of IFCI.
- First, the main function of the IFCI is to provide medium and long-term loans and advances to
industrial and manufacturing concerns. It looks into a few factors before granting any loans.
They study the importance of the industry in our national economy, the overall cost of the
project, and finally the quality of the product and the management of the company. If the
above factors have satisfactory results the IFCI will grant the loan.
- The Industrial Finance Corporation of India can also subscribe to the debentures that these
companies issue in the market.
- The IFCI also provides guarantees to the loans taken by such industrial companies.
- When a company is issuing shares or debentures the Industrial Finance Corporation of India
can choose to underwrite such securities.
- It also guarantees deferred payments in case of loans taken from foreign banks in foreign
currency.
- There is a special department the Merchant Banking & Allied Services Department. They look
after matters such as capital restructuring, mergers, amalgamations, loan syndication, etc.
- It the process of promoting industrialization the Industrial Finance Corporation of India has
also promoted three subsidiaries of its own, namely the IFCI Financial Services Ltd, IFCI
Insurance Services Ltd and I-Fin. It looks after the functioning and regulation of these three
companies.
Name: Diaz, Levina M. Course/Schedule: BSBA 2- 3rd Schedule

Instructor: Mr. Danilo Makiling Course Description: Financial Management

1. Explain the various sources of financing.

— Sources of finance are the provision of finance for a business to fulfill its requirement for
short-term working capital and fixed assets and other investments in the long term. These
are the various source of financing:
 The internal sources of finance signify the money that comes from inside the
organization. 
Examples are: Capital brought by the owner, retained profit, discount selling, selling of
fixed assets.
 External sources of finance can come from individuals or other sources which do not
have direct trade with the organization. Long-term external sources of finance; Equity
shares, Debentures, Term loan. Short-term external sources of finance; Bank overdraft,
Trade credit.
Examples: Family and friends, Share issues, Business angels.
2. What is meant by security finance?
— If the finance is mobilized through issue of securities such as shares and debenture, it is
called as security finance. It is also called as corporate securities. This type of finance
plays a major role in the field of deciding the capital structure of the company.
3. What is debt financing?
— When a company borrows money to be paid back at a future date with interest it is known
as debt financing. It could be in the form of a secured as well as an unsecured loan. A
firm takes up a loan to either finance a working capital or an acquisition.
4. Critically examine the advantages and disadvantages of equity shares.
— Equity shares are a way for the investors to get part ownership of the companies, thereby
benefiting from the profits and share market’s upward movement of the share. The
companies issue their shares to the public and utilize the funds towards various activities
of the business. Investors of the company get the right to vote, share in profits, claim on
assets of the company, etc. Face value, par value, book value, etc. are some of the terms
used to express the value of the equity shares of the company.

Advantages of Equity Shares:

 Profit Potential. Equities have the potential to fetch good returns. In fact, these returns
can potentially be tad bit better than most other investment options. Equities are known to
give returns when you stay invested for a long run.
 Potential returns that tackle inflation. Equity shares have the potential to give returns that
are higher than inflation. This matters because any returns lower than inflation can mean
you lose your purchasing power.
 Dividend Income. The dividend is the income of the company that it distributes to its
shareholders out of the profits. The dividend income act as a source of income for the
shareholders of the company. It would not be wrong to say that dividend is one of the
ways through which an investor earns a return on his investment. The rate of dividend
varies from company to company according to their profits. Most long-term inventors
prefer investing in those companies which have a good and consistent record of
distributing dividend to the shareholders.
 Exercise Control. When you invest in the stock of a company, you get the voting rights in
it. Therefore, with the purchase of shares of a company you can exercise control and get
 ownership in the company. You can even participate in the shareholders or any other
important meeting of the company.
 Right Over Assets and Income. When you purchase the shares of a company, you get a
part of the ownership in the company. This makes you the owner of the assets that the
company owns. Also, investors can receive a share of the profits through dividends. They
also stand to indirectly benefit when the company makes profits over time by way of an
increase in the share's value.
 Diversification of Portfolio. Equity markets provide investors an opportunity to diversify
their portfolio. Diversification of portfolio helps in risk management and protects you
from volatile fluctuations in the stock price. What makes diversification beneficial to the
investor is the fact that underperformance of one sector can be compensated with the
outperformance of another sector.
 Bonus Shares. Many times the companies decide to issue bonus shares to their
shareholders. Bonus shares can be said as a type of dividend where the companies give
the shareholders free shares. On numerous occasions, the bonus shares are given in place
of dividends.
 Right Shares. Whenever a company requires further capital for expansion or any other
business use, it issues the right shares. Right shares are those shares which are first
offered to the existing shareholders of the company. The current investors have priority
over other general investors during the right issue of shares. Right shares are generally
(not always) issued at a price that is lower than the current market price of the stock.
Therefore, the existing shareholder can take the benefit of purchasing the shares at a
lower price or they can pronounce their right in someone's favour to get a value of right.
 Stock Split. Stock split is another advantage of equity shares. Stock split means splitting
the shares into parts and reducing the price of shares, leading to a higher interest of
investors. The reduction of share price makes the stocks even more liquid and higher
volumes lead to a spike in the price if the company is performing well. Thus, the stock
split proves to be very beneficial for investors in the long run.
 Liquidity. Liquidity is one of the main advantages of investing in equity shares. Liquidity
means the volume of shares that are traded on the stock exchange. When you purchase
the shares of a company, you have the option to easily sell them on the exchange. The
availability of buyers to purchase your stocks during the market session make the equity
market appealing. Therefore, whenever you are in urgent need of cash you can easily sell
your stocks on the exchange and get money credited into your bank account.
 Share in Growth. When you invest in the equity market you become the owner of the
company. So being a shareholder of the company you get the opportunity to witness the
growth and rise of the company. As an investor, it is a wonderful experience to be a part
of a company that rises from the bottom and reaches the glory. Furthermore, you also get
the reward of the growth of the company in the form of appreciation of the share price.
 Tax Advantages. Investment in equities has several tax benefits. The capital gains on
returns on equity shares are taxed at a much lower rate in comparison to other countries.
There is no lock-in period associated with equity shares from the viewpoint of taxation.
However, there are two types of taxes levied based on the time you stay invested: Long-
term capital gains (LTCG) and Short-term capital gains (STCG) tax.
 Residual Claim. The equity shareholder has the right to make a residual claim on the
assets and income of the company. This claim can be made on those assets or income that
are left after paying all the stakeholders like debenture holders, lenders, etc. This
advantage can become a major aspect if a company goes under. This is because, you can
still lay claim to something from the company and get some of your investment back,
instead of suffering complete loss.

Disadvantages of Equity Shares:

 More Equity Share Capital issued means less utilization of trading on equity
  As equity capital cannot be redeemed, there is danger of over capitalization
 Investors desirous of investing in safe securities with fixed income do not go for equity
shares.

Disadvantages from the Shareholders’ Point of View:

 Equity shareholders get dividend only if there remains any profit after paying
debenture interest, tax and preference dividend. Thus, getting dividend on equity
shares is uncertain every year.
 Equity shareholders are scattered and unorganized, and hence they are unable to
exercise any effective control over the affairs of the company.
 Equity shareholders bear the highest degree of risk of the company.
 Market price of equity shares fluctuate very widely which, in most occasions, erode
the value of investment.
 Issue of fresh shares reduces the earnings of existing shareholders.

Disadvantage from the Company’s Point of View:

 Cost of equity is the highest among all the sources of finance.

 Payment of dividend on equity shares is not tax deductible expenditure.
 As compared to other sources of finance, issue of equity shares involves higher
floatation expenses of brokerage, underwriting commission, etc.
5. Discuss the feature of equity shares.
— A company issues equity shares to raise capital at the cost of diluting its ownership.
Investors can purchase units of equity shares to get part ownership of the firm. By
purchasing the equity shares, investors will be contributing towards the total capital of the
company and becoming its shareholder.
 Permanent Shares: Equity shares are permanent in nature. The shares are permanent
assets of a company. And are returned only when the company winds up.
 Significant Returns: Equity shares have the potential to generate significant returns to the
shareholders. However, these are risky investment options. In other words, equity shares
are highly volatile. The price movements can be drastic and are dependent on multiple
internal and external factors. Therefore, investors with suitable risk tolerance levels
should only consider investing in these.
 Dividends: Equity shareholders share the profits of a company. In other words, a
company may distribute dividends to its shareholders from its annual profits. However, a
company is under no obligation to distribute dividends. In case a company doesn’t make
good profits and doesn’t have surplus cash flow, it can choose not to give dividends to its
shareholders.
 Voting Rights: Most equity shareholders have voting rights. This allows them to select
the people who will govern the company. Choosing effective managers assists the
company to enhance its annual turnover. As a result, investors can receive higher
average dividend income.
 Additional Profits: Equity shareholders are eligible for additional profits a company
makes. It, in turn, increases the wealth of the investor.
 Liquidity: Equity shares are highly liquid investments. The shares are trade on the stock
exchanges. As a result, you can buy and sell the share anytime during trading hours.
Therefore, one doesn’t have to worry about liquidating their shares.
 Limited Liability: Losses a company makes doesn’t affect the ordinary shareholders. In
other words, the shareholders are not liable for the company’s debt obligations. The only
effect is the decrease in the price of the stocks. This will have an impact on the return on
investment for a shareholder.
6. What are the merits of the deferred shares?
— Deferred shares are mostly used as a method of compensation for executives and
founders of a company, or as a means to induce investors to invest in a company.
 Deferred shares come with many restrictions, such as vesting periods, company
performance, the market price of the stock, and others. No longer commonly used,
deferred shares provide their holders with large dividend payouts; typically higher than
the average rate offered on other forms of shares, but are only paid after all other classes
of shareholders have received their distributions.
7. Explain the merits and demerits of preference shares.
— Preference shares are a mode for companies to raise capital on a regular basis. Considered as
a form of hybrid security, preference shares have a number of advantages and disadvantages
associated with it.

Merits of Preference shares:

 Dividends are paid first to preference shareholders : The primary advantage for
shareholders is that the preference shares have a fixed dividend. This payout is
typically done prior to any dividends being paid to common shareholders. If the
company turns a profit, the dividends are paid on some types of preference shares.
This generally permits for the aggregation of dividends that are unpaid. The
preferred shareholders get priority when it comes to remitting unpaid dividends, over
common shareholders.
 Preference shareholders have a prior claim on business assets : If the business
decides to file for bankruptcy or liquidates, preference shareholders can stake a
higher claim on the assets of the business. This makes the risk of investment
tolerable as opposed to the common shareholder. The preferred shareholders have a
guaranteed dividend payout annually. In fact, if the business does opt to shut down
its operations, the preferred shareholders will be adequately compensated for their
investments.
 Add-on Benefits for Investors: With preference shares, shareholders are allowed to
trade in their convertible shares for a pre-decided number of common shares. If the
company is able to meet a specified profit mark that was determined earlier, then the
shareholder has the opportunity to experience add-on dividends. This can be an
advantageous prospect, especially if the value of common shares starts increasing. In
order to generate long-term income, these particular segments of preference shares
are low risk and offer additional benefits as a type of investment instrument.

Demerits of Preference share:

 There are no voting rights for preference investor: The key disadvantage of
owning preferred shares is the absence of ownership rights in the business. From
an investor perspective, the business is not liable to preferred shareholders as
opposed to equity shareholders. If the business really turns a profit and the
interest rate increases, the preferred shareholders will be stuck on the fixed
dividend.
 Higher cost than debt for issuing company: In order to finance projects,
businesses will try to raise capital through debt and equity issues which are
basically costs associated with operations. Usually, large corporations issue
preferred stock to the public in addition to raising funds through the common
stock and corporate bonds. Businesses that choose equity in place of debt issues
are able to attain a lower debt to equity ratio. This offers them a significant
benefit in terms of leveraging for additional financing from new investors.
8. List out the types of debentures.
— Debentures mean a company’s debt. They are one of the most popular debt instruments
along with bonds. 

 Types of Debentures
 — A company has the authority to issue different types of debentures; however, they depend
on their objectives and requirements. The classification of a debenture is based on certain
things such as security, tenure, coupon rate, redemption mode, convertibility, security
etc.  Two types of debentures are issued by the companies: Convertible Debentures and
Non-Convertible Debentures.  Another category of debenture that is also available that is
of lesser-known type is a partially convertible debenture. In such cases, the company
which issues partially convertible debenture decides the fixed percentage of debenture
that may or may not be converted into company stocks. 

 Convertible Debentures. There is a type of debentures where the investors have a right to
convert their full debenture holdings into equity shares of the company. On a normal
note, the rights of the debenture holders, trigger date for conversion, the conversion date
is already mentioned at the time of issuing debentures. 

 Non-Convertible Debentures. Non-convertible debentures are issued by companies that

don’t give the option to convert debentures into equity shares.

 Registered Debentures. In the case of registered debenture, the company that issues the
debentures takes all the details of the holder such as the name and address of the
investors, in the register of debenture, the number of debentures issued by the company to
the debenture holder. 

 Unregistered Debentures. Also, known as bearer debentures, unregistered debentures

issued by a company allow their holders to not maintain any records. Here, the company
pays the principal amount along with the bearer of the debenture irrespective of the name
written in it.  Another feature of this type of debenture is easily transferable in the
market. 

 Redeemable Debentures. These types of debentures are redeemable where the

redeemable date is clearly mentioned on the company’s debenture certificate. Once the
redemption date comes, the company is bound to return the principal amount to the
debenture holder. 

 Irredeemable Debentures. These debentures are the exact opposite of irredeemable

debentures where irredeemable debentures have a specific redeemable date, these
debentures have no fixed date regarding the payment to the debenture holder. It is
redeemable only when the company goes into the liquidation process. 

 Use of Debentures. The primary reason behind the issuing of debentures is to raise funds
from the public. The company uses such funds for several purposes such as the
company’s growth and research and development in the market. 

Companies prefer issuing debentures over equity shares for two reasons: First, issuing
debentures has nothing to do with the ownership dilution. Two, the cost of raising funds
through debenture is quite cheaper than the cost of raising funds through equity shares.

9. Evaluate the overall view of debentures.

 — A debenture is a marketable security that businesses can issue to obtain long-term
financing without needing to put up collateral or dilute their equity. A debenture is a type
of long-term business debt not secured by any collateral.
10. How an internal source of finance is used in the industrial concern?
— Internal source of finance is used in the industrial concern because by using internal
sources of finance, the financial manager helps the company maintain ownership and
control. If the company were to alternatively issue new shares to raise funds, they would
be forfeiting a specific amount of control to their shareholders.
11. What is retained earnings?
— Retained earnings are the amount of profit a company has left over after paying all its
direct costs, indirect costs, income taxes and its dividends to shareholders. This
represents the portion of the company's equity that can be used, for instance, to invest in
new equipment, R&D, and marketing.

12. Evaluate the advantages and disadvantages of retained earnings.

— Advantages of Retained Earnings
These earnings are viewed favorably due to the following reasons:
 These earnings are readily available, and the firm is not required to seek help from the
shareholders or lenders in case of urgency of funds.
 The use of retained earnings reduces the cost of issuing the external equity and also
eliminates the losses incurred on under-pricing.
 There will be no dilution of control and ownership, in case the firm relies on the retained
earnings.
 Generally, the stock market views the equity issue as doubtful and therefore, these
earnings do not carry a negative connotation.

— Disadvantages of Retained Earnings

Despite several advantages of the accrual earnings, it is not free from certain bottlenecks
which are as follows:
 The amount raised through the accrual earnings could be limited and also it tends to
be highly variable because certain firms follow a stable dividend policy.
 The opportunity cost of these earnings is relatively high because it shows that amount
of earnings, which have been foregone by the equity shareholders.
 Some companies do not give much importance to the opportunity cost of these
earnings and invest these into sub-marginal projects that have negative NPV.
13. How does a depreciation fund help the industrial concern as source of finance?
— Depreciation funds are the major part of internal sources of finance, which is used to
meet the working capital requirements of the business concern. Depreciation means
decrease in the value of asset due to wear and tear, lapse of time, obsolescence,
exhaustion and accident. Generally depreciation is changed against fixed assets of the
company at fixed rate for every year. The purpose of depreciation is replacement of the
assets after the expired period. It is one kind of provision of fund, which is needed to
reduce the tax burden and overall profitability of the company
14. Evaluate overall structure of the loan financing.
— Loan structure refers to the loan term, interest rate, risk, collateral, and repayment. Loan
structure is designed to meet the borrowers’ financing requirements while protecting the
lender from losses due to the borrowers' failure to repay the debt, interest, and fees.
15. Explain the Commercial Bank financing.
— Commercial banking consists of taking deposits from the public, and loaning the money
to businesses and individuals. Historically banks have done other businesses as well,
including investment banking, which consists of underwriting securities—buying stocks
and bonds from businesses and selling them to the public.
16. Enumerate the major development banks.
 — A multilateral development bank (MDB) is an international financial institution
chartered by two or more countries for the purpose of encouraging economic
development in poorer nations. Multilateral development banks consist of member
nations from developed and developing countries. MDBs provide loans and grants to
member nations to fund projects that support social and economic development, such as
the building of new roads or providing clean water to communities.

Major Multilateral Development Banks

The following is a list of the major multilateral development banks, ranked by total
assets as of Dec. 31, 2018, except for the World Bank Group, which reflects Dec. 31,
2019 assets (exchange rates are as of April 15, 2020):
 European Investment Bank: €555.8 billion ($606.5 billion)
 International Bank for Reconstruction and Development, World Bank Group:
$283 billion
 Asian Development Bank: $191.9 billion
 International Development Association, World Bank Group: $188.5 billion
 Inter-American Development Bank: $129.5 billion
 European Bank for Reconstruction and Development: €61.9 billion ($67.7
billion)
 African Development Bank: 33.8 billion UA
 Asian Infrastructure Investment Bank: $19.6 billion
 Islamic Development Bank: 22 billion Islamic dinars ($18.5 billion)
 Central American Bank for Economic Integration: $10.9 billion
 New Development Bank: $10.4 billion
17. Explain the UTI and LIC in industrial financing.
 The role of UTI or Unit Trust of India in industrial financing is it encourages savings of
lower and middle-class people. Sell nits to investors in different parts of the country.
Convert the small savings into industrial finance. To give investors an opportunity to
share the benefits and fruits of industrialization in the country. While LIC or Life
Insurance Corporation of India is it protects the capital of the people by investing funds
into government securities. Provide various loans like direct loans to industries, housing
loans, loans to various national projects at reasonable interest rates.
18. What is cash credit?
— A cash credit is a working capital loan offered to a business entity to meet its working
capital requirements. It is a short-term source of finance with tenure of up to 12 months,
which can be renewed upon completion of the loan.
The cash credit limit is based on the following factors:
 Funds required
 Credit profile of the borrower
 Current assets and current liabilities of the business organization
 Past track record
 Collateral/security provided in exchange for a cash credit facility
 Repayment capacity of the borrower
— Cash credit helps businesses bridge the working capital gap and use the funds for the
following
 Buying raw materials, stores, fuel, etc.
 Paying labour wages, power charges, for storing goods until sold
 Financing the sales
19. Mention the functions of IFCI.
— Industrial Finance Corporation of India (IFCI) is actually the first financial institute
the government established after independence. The main aim of the incorporation of IFCI
was to provide long-term finance to the manufacturing and industrial sector of the country.

Functions of the IFCI:

 First, the main function of the IFCI is to provide medium and long-term loans and
advances to industrial and manufacturing concerns. It looks into a few factors before
granting any loans. They study the importance of the industry in our national
economy, the overall cost of the project, and finally the quality of the product and
the management of the company. If the above factors have satisfactory results the
IFCI will grant the loan.
 The Industrial Finance Corporation of India can also subscribe to the debentures that
these companies issue in the market.
 The IFCI also provides guarantees to the loans taken by such industrial companies.
 When a company is issuing shares or debentures the Industrial Finance Corporation of
India can choose to underwrite such securities.
 It also guarantees deferred payments in case of loans taken from foreign banks in
foreign currency.
 There is a special department the Merchant Banking & Allied Services Department.
They look after matters such as capital restructuring, mergers, amalgamations, loan
syndication, etc.
 It the process of promoting industrialization the Industrial Finance Corporation of
India has also promoted three subsidiaries of its own, namely the IFCI Financial
Services Ltd, IFCI Insurance Services Ltd and I-Fin. It looks after the functioning and
regulation of these three companies.