CSR – An Access To Finance

Many of us are of the thought that CSR is for the good benefits of the society better. But do they benefit the companies or the organizations that follow this? Of course, it is a beneficial thing for the companies too who strive to follow these concepts. CSR is basically about how the company takes into account the social welfare of the society too in their process of designing and production of services. There have been a lot of research and analysis that shows how CSR has benefitted the companies in allocating extra funds for their new projects. Now you might be thinking as to how this is related to following the concepts of CSR.

CSR- higher allocations

Now when there is a company following the concepts of CSR, it would be able to produce products and services that are safe and sound for not only the customers but also the nature because generally CSR talks and elaborates on social responsibilities and awareness and pays attention to how nature too needs to be preserved in its greenery and not spoilt for the reason of some new products and services. So when this is followed meticulously, the services of this company are rated higher than the others in the market which attracts more customers and this way the company gets to earn more. So when there is an increase in the profits of a company, it gets to allocate more for CSR initiatives. And not only this but also funds for more new projects.

SME`s and CSR

CSR is a concept followed by all the companies irrespective of their size and business type. But when compared to the big businesses, it is a little difficult for the small and the medium industries and companies to follow this especially when they are in the initial few days of their incorporation because their major goals and concentration would be on core business and survival in the market amidst heavy competition. This is something very important for all the companies because for them the first thing is an established position in the market and once this is achieved, it would become easy for the company to implement and appoint CSR concepts easily in all its business operations.

So in any which way at any stage of a businesses’ growth and development stage, it would be important for the company to follow CSR for this is a must and a mandatory one for all.

Investments – A Gambling Game

Investments in stocks and shares are like a gambling game which is fun playing. This is a market that has been through all types of market situations. There have been some really good times and have also seen some declines sweeping off everything from the stock market and the stockholders. So is there a need for a new approach to investing in stocks? Do the investors have to look for something new in this market? If so what are the promises or affirmations that these options or new experiments would be a success?

New rules in investments in stocks

Here are some new rules that would make the investments in stocks a better and an enhanced one and these are like guidelines that would make it easy for the investors to understand the market slow and steady and then make choices between the various options before making their expenditure in this market.

  • It is not necessary that all the shares and stocks that are bought need to be sold immediately for they can be held for a certain period of time. is it because they would present a very lavish opportunity? This is not a sure happening here for there are all possibilities for their prices to either go up high or fall down badly. But when you decide to hold them for a period of time, you will always have the opportunity, the time to understand and study the market. So when there is an opportunity for these shares to be sold at a really good price the shareholder would be placed better than the other shareholders and it would add value and worth to his wait.
  • Assess the market well especially when it is recouping from a fall. Now at this time, it is important that you think about what you did with the stocks, whether you bought them, sold them or were holding them; inspect the damage or the hit the market has taken and the portion of it that you have taken; examine the risks that you would be able to take the hit for the period after this would be a dawning period, in fact, a new beginning like and hence you will be able to make the best of it.
  • Now, this is a period that would present a lot of new options for diversification. Try to make the maximum use of this and make the diversification vast so that the loss from one gets easily set off from the profits made from the other option. This diversification would also open you up to many different choices present in the market.

Important Aspects Of Financial Modelling

If you have a fresh business concept or an already established company, at any point in time it is quintessential to have a precise financial model for the complete operation of the business. The process of creating and maintaining a reliable financial model represents the past, present and future aspects of the company and is based on specific mathematical models or calculations, done with the help of statistical tools.

Constructing a financial model is important for the following purposes:

  • Construct or reconstruct financial decisions, cash flows and revenues.
  • Expansion or take-over of a current business, which is primarily in business valuation
  • Starting a new venture
  • Attracting investments
  • Decide the market direction of its products or strategic planning for finding new arenas
  • Calculate the cost of capital for new projects
  • Capital budgeting and resource diversions
  • Market comparisons and performance chart organizing
  • Annual financial reports and statements

A financial model may be created for the entire performance parameters of the business or for a particular event. The primary task of an analyzer who is assigned the task of creating a financial model is to collect all the variables representing the company figures. These figures are then placed in a preset position based on theories and suitable model is structured around them. Specific mathematical formulae are derived from these variables and the event or performance is portrayed through spreadsheet language.

Variable section for constructing a Financial Model

The accuracy of a model depends on the selection of proper variables used for construction. A skilled analyzer will be able to selectively pick out only the relevant ones, and this depends usually on the objective of model creation. Variables significant for reconstruction is different from the ones required for forecasting. Each of the variables picked out should be powerful enough to have an impact on the model during its testing and use.

The sensitivity of the models to these variables can appear in two ways when an input is given to the built model:

  1. Any kind of change in even a single variable can influence the final outcome or result of the model.
  2. A change in one variable can cause an alteration in one more of the other variables used in the model.

A simple example can be used for illustration. You want to forecast the revenue growth of a company and the model used for this is the 3-statement model. To construct this model, you need three variables: balance sheet, statements of income and cash flow and the schedules for supporting the data. If there is a change in the income, the revenue created by the model will be altered and so will the cash flow. An ideal model should be presented in a simple format and give the desired assumptions to the user.