Working Capital – Premudraja http://premudraja.net/ Fri, 22 Oct 2021 20:37:30 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://premudraja.net/wp-content/uploads/2021/06/icon-4-150x150.png Working Capital – Premudraja http://premudraja.net/ 32 32 Donald Trump’s new media venture sees its course soar https://premudraja.net/donald-trumps-new-media-venture-sees-its-course-soar/ Fri, 22 Oct 2021 20:37:30 +0000 https://premudraja.net/donald-trumps-new-media-venture-sees-its-course-soar/ Shares of Donald Trump’s conservative new media company soared this week, mostly fueled by Reddit-online daytraders, but some well-known hedge funds have also proven to be early stage investors. Trump Media & Technology Group merged with a shell company called Digital World Acquisition Corp. (NASDAQ: DWAC) to go public. Last week’s transaction valued Trump’s group […]]]>

Shares of Donald Trump’s conservative new media company soared this week, mostly fueled by Reddit-online daytraders, but some well-known hedge funds have also proven to be early stage investors.

Trump Media & Technology Group merged with a shell company called Digital World Acquisition Corp. (NASDAQ: DWAC) to go public. Last week’s transaction valued Trump’s group at an initial amount of $ 875 million. By Friday, the company’s public valuation had climbed to $ 1.64 billion.

The stock, which started trading on Oct. 19 at just over $ 9.95 a share, closed at $ 94.20 on Friday, more than nine times its initial price. Including warrants – or securities that can be converted into shares – Trump’s shares have risen by more than $ 108.

Reddit day-traders have embraced the former president’s new social media venture, with many saying they bought the stock as part of their political backing. Trump Media has pledged to end “censorship” of mainstream media and create a on-demand streaming service with “non-awakened” entertainment.

Trump also said his company would compete with big tech platforms such as Facebook, Instagram and Twitter, where he was banned.

“YOU ARE SITTING ON A GOLD MINE !!!! Wrote a poster on the Reddit website dedicated to the action. “I’m not selling! Twitter banned the president and allowed the Taliban to have an account! It’s more than a stock! It’s about your digital freedoms! We are just getting started !!! ”

Among the more traditional investors listed in the files were Saba Capital, led by well-known hedge fund manager Boaz Weinstein. However, after learning of Trump’s affiliation in the merger agreement, Saba Capital sold almost all of its shares on Thursday, according to the New York Times.

Other investors included Capital of Hudson’s Bay, which is led by Sander Gerber, a major donor to conservative causes and a 1989 graduate of the University of Pennsylvania.

Trump says he plans to start with a social network called Truth Social, but wants to grow into a conglomerate in competition with Disney and CNN.

But is it a good long-term investment?

“It’s GameStop once again,” said Brad Adgate, former Comcast executive and media consultant, based in Cambridge, Mass., Referring to the popular stock “meme” that skyrocketed earlier this year.

Trump’s new company went public by merging with what is known as a “blank check” company – or a special purpose acquiring company – and within days its value multiplied.

These companies increased in number earlier this year, often as part of an enrichment program, but they’ve fallen behind lately, suggesting investors will want to see real returns.

The stock could stay up in the air like GameStop did – going from $ 10 per share in 2020 to over $ 340 per share and now to $ 170.

But at the end of the day, the share price should depend on the company’s earnings, Adgate said.

“If it’s a subscription media company, then we’ll see. He has notoriety and takes advantage of it. In addition, he needs money and takes advantage of the instant wealth that can be accumulated through an after-sales service. Plus, he has millions of dedicated followers who will do what he asks, ”Adgate said. “But will that support this price?” “

However, regulatory filings and a presentation of the company show that there were a lot of questions about the underlying business.

The Securities and Exchange Commission, Wall Street’s financial regulator, exchanged several letters with the company in August, asking for clarification on its unaudited financial data and negative cash balance. As of March 31, 2021, the Company had $ 25,000 in cash and offering costs of $ 62,500.

“We note that the second paragraph of the audit report refers to the working capital deficit as of June 30, 2021,” the SEC letter said. “We also note that the financial statements and accompanying notes to the financial statements for the period ended June 30, 2021 are not labeled as unaudited. However, the audit opinion does not cover the financial statements for the period ended June 30, 2021. Please clarify and revise to provide an audit report consistent with the audited financial statements included in the file.

This did not deter a shareholder, who posted on Reddit: “LOL outlets with their “meme” labels. Sorry boys, an uncensored social network with Trump isn’t a meme, it’s about to retire soon.


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Supply Chain Finance Mitigates Seasonal Fluctuations in Cash Flow https://premudraja.net/supply-chain-finance-mitigates-seasonal-fluctuations-in-cash-flow/ Thu, 21 Oct 2021 15:47:43 +0000 https://premudraja.net/supply-chain-finance-mitigates-seasonal-fluctuations-in-cash-flow/ Woodstream might not be a household name, but its brands make life more enjoyable for millions of Americans every year. The company produces, markets and distributes a wide range of insect and pest control products, from traditional wooden mouse traps to Wi-Fi enabled zap traps that send mobile alerts when they have successfully killed a […]]]>

Woodstream might not be a household name, but its brands make life more enjoyable for millions of Americans every year. The company produces, markets and distributes a wide range of insect and pest control products, from traditional wooden mouse traps to Wi-Fi enabled zap traps that send mobile alerts when they have successfully killed a rodent. Additionally, Woodstream manufactures electric fencing for livestock containment and is the global market leader in bird feeders. It sells both direct to the consumer online and through major retailers.

All of these businesses are seasonal in nature. “Retailers start stocking our brands in their lawn and garden section in March or April, and then typically wear them through the summer or fall, depending on the product line,” says Andrew Church, CFO of Woodstream. “We make products year round at two factories in the United States. We also use subcontractors, mainly in Asia. Their strong season runs from November to January, preparing us for expeditions that will culminate in the spring. “

This means that every year, business expenses accelerate in the winter, and it takes several months for revenue and customer collections to catch up. “At the start of the year, Woodstream is a net borrower,” Church says. “We are using a seasonal revolving credit facility as we ramp up production. Then, when we start to collect the receivables, the cash inflows exceed the outflows. By mid-spring, we fully paid off our gun debt.

Several years ago, Woodstream was acquired by a private equity firm, which set itself the goal of improving the cash conversion cycle. “We wanted to make acquisitions, and generating additional free cash flow would put us in a position to do so,” Church said. The managers reviewed their four main levers for improving working capital: accounts receivable (A / R), inventory, accounts payable (A / P) and accrued liabilities. They hatched a plan to attack each area, Church says, initially focusing on A / P.

“The timing of payments is something we have control over,” he explains. “We therefore focused on ways to optimize payment terms with our suppliers, while simultaneously providing them with a stable source of liquidity. We wanted to strengthen our supplier relationships and strengthen the health of our overall supply chain, even as we lengthen our payment cycle. “

Woodstream’s treasury and finance officials determined that a supply chain finance program would meet their needs. They worked with PrimeRevenue to design a program, secure funding from a PrimeRevenue partner institution, and integrate Woodstream’s Enterprise Resource Planning (ERP) system with the PrimeRevenue platform.

Church and his colleagues standardized their contracts to pay domestic suppliers and service providers in 90 days and to pay overseas suppliers in 150 days, two substantial increases from the company’s previous terms, which were as low as 30 days. days with some suppliers. When they introduced this change, they also explained the good news: Suppliers participating in the supply chain finance program can choose exactly when to be paid on each invoice.

When Woodstream’s A / P team approves an invoice for payment, the ERP system automatically uploads it to the supply chain finance platform. Suppliers can log in and see all of their approved invoices, as well as when and how much they can expect to be paid if they do nothing. But they have the possibility of choosing an advance payment between 10 days after the issuance of the invoice and 10 days before the due date of the payment. The financial partner who finances the prepayment is compensated by a reduction in the amount of the payment, calculated at a standard discount rate.

“Everyone on the program gets the same APR [annual percentage rate]Said Ryan Advena, vice president of finance at Woodstream. “They can choose when they want to receive payment bill by bill. Or they can choose to set it and forget about it, and the platform will exchange all of their bills the same number of days before they are due.

Advena says many program participants get a better interest rate than if they tried to borrow against the receivables. “Another way to look at it,” he says, “is to compare it with what’s typical when negotiating prepayment terms. Often times, a supplier will need to take a 1% discount to be paid 30 days earlier. This translates to an APR of 12 percent. The cost to suppliers of our supply chain finance program is well under half. “

Automation is one of the keys to the success of the program. “We didn’t want to start a new process that would require expanding our A / P department,” says Advena. “With this solution, suppliers are always paid on time and everything happens automatically in our system. “

David Ellis, the company’s senior director of global sourcing, adds: “Many of our suppliers have been able to improve their own liquidity by accessing liquidity independent of their banking relationships. Some salespeople were initially a little skeptical, but were pleasantly surprised at the extent to which this program gives them control over their own destiny.

The flexibility of getting paid months earlier was especially valuable for vendors struggling to weather the Covid-19 economy. “Some of our suppliers in Asia have been hit very hard by the supply chain issues resulting from the pandemic,” Church said. “They own the inventory until the goods pass through the transom of the ship at the Asian port or, in some cases, the US port. And there have been times over the past 18 months when the freighters weren’t available or the shipping containers just weren’t there.

“The delay in loading the product onto a boat also delays invoicing and payment,” he continues. “The flexibility of the supply chain finance program can be very important to a supplier’s cash flow when the payment cycle is disrupted by circumstances beyond their control. “

Advena sees the program’s rapid growth during Covid as proof that it has helped some vendors weather the economic storm. “At the end of March 2021, the volume of payments negotiated in our supply chain finance program was 251% higher than the previous year,” he said. “The demand for this solution has exploded during this time. “

Woodstream made the program available to its largest suppliers. Forty vendors, representing approximately 90% of the company’s total inventory spend, have been onboarded so far. On average, participating vendors choose to be paid on day 30. “So compared to our terms before this change, they take their money out for about 30 days,” Church says.

Ellis explains another benefit related to Covid: “With the rise of Covid in online orders for some of our brands, we needed large volumes of products produced faster than usual. Some of our suppliers generally have very long lead times to speed up their production. But by immediately accessing their money through this program, they were able to purchase materials for cash. It helped them manage their costs and they were able to release the product faster to meet our needs.

Due to the benefits of the program for suppliers, Woodstream was able to significantly extend its payment terms without damaging its supply chain. This, in turn, had a huge impact on the working capital of the business. The number of days to pay (DPO) increased by 67%, from approximately 63 days to 105 days.

“We’ve set an initial target of $ 16 million in cash flow gains on all of our $ 90 million annual spend with our leading suppliers,” Church said. “Fast forward to today ‘ hui: After expanding the program to include our tier two and tier three providers, as well as service providers, we actually hit about $ 24 million. We used that money to reduce debt, partially fund dividend to shareholders and make an acquisition.

What did Woodstream learn from this experience? “In the past, when we were looking to create shareholder value, we usually thought about increasing profits and getting a better return on capital investment,” says Church. “Obviously these areas are a great place to start, but it doesn’t make sense to focus exclusively on P&L management. We have learned that to improve shareholder value, we need to devote as much rigor and attention to the balance sheet, especially working capital, as to improving our profit margins.

“In business, sometimes you can have binary results: what is good for Woodstream is not necessarily good for the other party, and vice versa,” concludes Church. “This program, however, has been a win-win for Woodstream and for our supplier partners.”



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BondAval secures $ 7 million funding round led by Octopus Ventures https://premudraja.net/bondaval-secures-7-million-funding-round-led-by-octopus-ventures/ Wed, 20 Oct 2021 10:08:19 +0000 https://premudraja.net/bondaval-secures-7-million-funding-round-led-by-octopus-ventures/ BondAval secures $ 7 million funding round led by Octopus Ventures By Joy Dumasia BondDown, the start-up InsurTech offering a new form of payment security, announced that it had secured a $ 7 million funding round led by a UK-based venture capital fund Octopus companies. The company, which has offices in London and Austin, also […]]]>

BondAval secures $ 7 million funding round led by Octopus Ventures

By Joy Dumasia

BondDown, the start-up InsurTech offering a new form of payment security, announced that it had secured a $ 7 million funding round led by a UK-based venture capital fund Octopus companies. The company, which has offices in London and Austin, also received a co-investment from US fund Expa, as well as support from existing investors Insurtech Gateway and TrueSight Ventures and several leading entrepreneurs, including Tom Blomfield (Monzo and GoCardless), Charlie Delingpole (ComplyAdvantage) and Matt Clifford (Entrepreneur First).

Founded in 2020, BondAval addresses the imbalance in working capital solutions in supply chains between large companies and small businesses. Co-founders Tom Powell and Sam Damoussi have identified that providing businesses of all sizes with access to highly efficient and affordable investment-grade payment security in real time has far-reaching positive impacts on retail chains. ‘supply. At present, SMEs are forced to use sub-optimal instruments, resulting in high cost in time, money and opportunity.

BondAval currently lives in the UK and US, with North American operations headed by Charlie Evans, formerly of venture capital firm Hedosophia. The company plans to use the funds primarily for growth, hiring larger teams in the UK, US and new markets as it expands and further development and l scale of its proprietary platform and provisioning services.

Tom Powell, CEO and Co-Founder of BondAval, said: “We envision a world where the size of a company is no longer a barrier to achieving its ultimate goals. We build the infrastructure to give businesses of all shapes and sizes access to the most efficient forms of capital in real time. This round of funding is another major validation point for BondAval. The interest and support of all of our investor funds and angel investors is gratifying in the fact that they all see the opportunity before us. The capital raised will help us continue to hire the best talent available. I am proud of what this team has already accomplished and excited for the future.


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How this Chandigarh startup is helping MSMEs solve their payment problems through a digital court https://premudraja.net/how-this-chandigarh-startup-is-helping-msmes-solve-their-payment-problems-through-a-digital-court/ Tue, 19 Oct 2021 01:02:29 +0000 https://premudraja.net/how-this-chandigarh-startup-is-helping-msmes-solve-their-payment-problems-through-a-digital-court/ The problem of late payments among micro, small and medium enterprises (MSMEs) is a serious concern. Reports suggest that MSMEs have submitted nearly a lakh of claims over the past four years indicating non-payment of their contributions. It puts the financial health of these companies at stake, which still need a lot of support from […]]]>

The problem of late payments among micro, small and medium enterprises (MSMEs) is a serious concern. Reports suggest that MSMEs have submitted nearly a lakh of claims over the past four years indicating non-payment of their contributions. It puts the financial health of these companies at stake, which still need a lot of support from government institutions to break out of the traditional shell.

Although the government urged central and state departments, PSUs and others to pay MSME dues within 45 days of receiving the goods through its MSME – MSME Samadhaan deferred payment portal, the problem only grew. ‘aggravate.

To resolve these issues, Raman aggarwal begin MPME digital court under Judicial justice technologies in September 2021, one of the first “private digital courts” for private justice, which offers an amicable settlement, but digitally.

He says the problem is not only late payments, but also non-payment by the parties. There is an addressable solution to a late payment, but what if the party is in denial mode? In both cases, this gives rise to a dispute, which again has to go through a formal procedure of filing a complaint and appealing to the court by law, which takes a long time.

For this, Raman has developed one of India’s first digital courts to quickly resolve growing disputes between small and medium-sized businesses and assist civil and commercial disputes through the private justice mechanism.

He states: “The MPME digital court developed by Jupitice is committed to helping SME owners resolve commercial disputes through various ADR mechanisms, namely arbitration, conciliation and mediation, among others.

In an interaction with SMBShistory, Raman explains how he aims to improve MSME liquidity through Jupitice by providing fast, cost-effective and efficient dispute resolution through his online dispute resolution (ODR) platform. It also explains how it has endeavored to reduce the rate of litigation and hence reduce the burden on the judiciary / public system.

Edited excerpts from the interview:

SMBStory (SMBS): What is the major problem that the Jupitice MPME digital court is seeking to solve?

Raman Aggarwal (RA): Lack of working capital is one of the major issues facing startup owners in the country. Since MSMEs do not have sufficient security to offer the bank in return for raising alternative capital, they continue to work with their limited capital. Now, in the event of a dispute, the entire capital is doomed to be blocked. Therefore, it is imperative that MSMEs have expeditious justice given the long delay that litigation tribunals take.

Keeping the facts in mind, Jupitice announced one of the first digital MSME courts. The AI-powered platform will resolve civil, commercial, personal, consumer, and more disputes. within the framework of the private justice system.

Normally, it takes more than seven years to resolve an MSME dispute. However, Jupitice MSME Digital Court is developed in such a way that we promise MSMEs that their disputes will not take more than 90 days to be resolved.

SMBS: How is Jupitice different from MSME Samadhaan?

RA: The Ministry of MSMEs launched MSME deferred payment portal – MSME Samadhaan – allow micro and small entrepreneurs across the country to directly register their late payment cases by central ministries / departments / CPSE / state governments.

On the contrary, the Jupitice MSME Digital Court has a 360 degree approach to resolving MSME disputes. While the MSME Samadhaan only deals with late payments, which are mostly uncontested money, some of the other types of disputes or disputed amounts are a gray area that the government has yet to address. This is where the Jupitice MSME Digital Court comes as a relief for MSMEs.

Jupitice MSME Digital Court registers cases relating to late payments by the buyer, and also registers disputes between sellers and MSMEs, MSMEs and large companies, and MSME-buyers (delayed payments), among others.

Second, in order to file a case on Samadhaan MSMEs, MSMEs must be registered with the MSME Ministry and must also have a valid Udyog Aadhaar number and Udyam registration number. This criterion often excludes many small businesses that have not registered with the ministry. One of the other major differences is the quick resolution of disputes as Jupitice takes up to 90 days to resolve a dispute and MSME Samadhaan takes around 15 days to affect the board itself.

SMBS: What happens in the event of non-compliance with the verdict by one of the parties?

RA: It may happen that one of the parties does not comply with the verdict. In this case, there are two ways – compliance and enforcement.

To comply, under the Arbitration and Conciliation Act 1996, parties must comply with the

the award rendered by the arbitrator. But if this does not happen, then there is “enforcement”, or if one of the parties does not comply with the orders of the arbitrator, then the order can be filed with the jurisdictional court, and further, the court will enforce the order through the police or other designated officers.

SMBS: What has been the biggest challenge so far, and what goal are you aiming for?

RA: The biggest challenge the company faces is the lack of awareness among people regarding the private justice system. It’s been almost a month since we launched the digital MSME court, and we realized that few people knew about the out-of-court settlement. Every day we get dozens of calls from small business owners on our helpline and none of them has a clue how to resolve their disputes quickly.

Jupitice understands that capital plays an important role in any business large or small, so guiding more and more business owners on the idea of ​​the private justice system is our top priority.


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Everstone to Focus Further on Healthcare Industry in Indonesia, Says Co-Founder Atul Kapur https://premudraja.net/everstone-to-focus-further-on-healthcare-industry-in-indonesia-says-co-founder-atul-kapur/ Sun, 17 Oct 2021 23:42:00 +0000 https://premudraja.net/everstone-to-focus-further-on-healthcare-industry-in-indonesia-says-co-founder-atul-kapur/ Premium Everstone, a private equity firm focused on India and Southeast Asia, which is raising $ 950 million for its fourth private equity fund, is looking to bet big on the healthcare sector in Indonesia over the next 5-7 years. In the healthcare sector, Everstone has already invested in Indonesian DV Medika, a medical supplier […]]]>

Everstone, a private equity firm focused on India and Southeast Asia, which is raising $ 950 million for its fourth private equity fund, is looking to bet big on the healthcare sector in Indonesia over the next 5-7 years.

In the healthcare sector, Everstone has already invested in Indonesian DV Medika, a medical supplier and manufacturer of hospital beds, through its Everlife platform.

“As the COVID-19 pandemic has revealed glaring gaps in medical infrastructure in most countries, we will put more emphasis on the health sector in Indonesia,” said Atul Kapur, co-founder and CIO from Everstone Group at the DealStreetAsia Asia PE-VC Summit 2021, during a fireside conversation titled – Strong Capital Structures, Liquidity and a Key to Access to Credit to Get Through the Crisis.

Elaborating on the strategy for Southeast Asia’s largest market, Kapur said, “Our investments in Indonesia are based on two factors. We are very familiar with the Quick Service Restaurant (QSR) industry there. It’s a fabulous investment for us, as well as the medical device distribution industry. Second, we cannot be private equity investment tourists and cannot enter and leave Indonesia sitting in New York or Singapore or Mumbai. We need local partners to do what we want to do. It is unlikely that we will advance alone in Indonesia. “

Everstone is also gearing up for an exit from PT Sari Burger Indonesia (BK Indonesia), as Burger King India Ltd has expressed plans to take over the fast-food chain’s Indonesian franchisee.

During the fireside chat, Kapur also touched on India’s exit landscape, fundraising progress, milestones and prospects for real estate and renewable companies.

Edited excerpts: –


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Banks slow down stimulus loan disbursement https://premudraja.net/banks-slow-down-stimulus-loan-disbursement/ Sat, 16 Oct 2021 16:35:00 +0000 https://premudraja.net/banks-slow-down-stimulus-loan-disbursement/ To ward off Covid-19 shocks, the government has so far announced 28 stimulus packages amounting to over 1.87 lakh crore Tk 16 October 2021, 22:35 Last modification: October 16, 2021, 10:36 PM Representative image. Illustration: Collected “> Representative image. Illustration: Collected The loan disbursement of the second phase stimulus packages is advancing at a snail’s […]]]>

To ward off Covid-19 shocks, the government has so far announced 28 stimulus packages amounting to over 1.87 lakh crore Tk

16 October 2021, 22:35

Last modification: October 16, 2021, 10:36 PM

Representative image. Illustration: Collected

“>

Representative image. Illustration: Collected

The loan disbursement of the second phase stimulus packages is advancing at a snail’s pace as banks wait for government interest subsidies on the loans they distributed last year.

In the first two and a half months of the current fiscal year, banks distributed Tk 519 crore as a working capital loan between industry and service entities affected by Covid, which is only 7 , 6% of the target for the same period.

The Bangladesh Bank has set a target of disbursing Tk 33,000 crore in the current fiscal year in the sector. Until September 12, only 55 industries took advantage of the benefits.

In the last fiscal year, the government announced a loan package of Tk 40,000 crore for this sector and disbursed 81.75% of the amount among 3,306 companies.

To ward off the shocks of Covid-19, the government has so far announced 28 stimulus packages amounting to over 1.87 lakh crore Tk.

The Bangladesh Bank is directly involved in 10 of the stimulus packages. So far, three packages have been fully implemented and the remaining seven will be implemented during the fiscal year.

According to the latest data, the central bank aims to disburse Tk 20,000 crore as working capital among small and medium-sized enterprises. But only Tk477 crore has so far been disbursed, which is 2.38% of the target.

The central bank has set a target for the Tk 5,000 crore package in the pre-shipment credit refinancing program. The number of beneficiaries of this program so far is 65 business entities which have received a loan facility of Tk 375 crore. The amount is 7.51% of the target.

“The pace of stimulus loan disbursements has slowed because banks have not received the interest subsidy against the stimulus loans,” Dr Fahmida Khatun, executive director of the Center for Policy Dialogue, told The Business Standard.

“Also, as the impact of Covid was greater last year, affected borrowers took more loans. Now the situation with Covid is starting to normalize, so many have cut back on their borrowing.”

In April last year, the Bangladesh Bank issued a separate policy stating that the duration of the stimulus packages would be three years.

If the loans are not collected on time, then they would be considered regular loans from the distributing banks, he added.

The government painted a rosy picture in the loan disbursement of a Tk 3,000 crore refinancing program set up for low-income professional farmers and small entrepreneurs, who received 73.87% of the target just in the two and a half months of this fiscal year.

The Bangladesh Bank has implemented a Tk 2,000 crore credit guarantee program for the SME sector during the current fiscal year. Twenty-seven banks and four financial institutions have already signed agreements with the central bank for the disbursement of Tk 1,900 crore from the target.

During this time, only two trade organizations received Tk28 lakh.

Dr AB Mirza Azizul Islam, financial adviser to a former caretaker government, said: “We have just passed a few months of the new financial year. It would be clear after a while.

“However, many stimulus packages have not been fully implemented, even in the past fiscal year. To fully meet the loan disbursement target, the respective sectors need to be reviewed.”

The government has achieved complete success in two areas. A stimulus loan of Tk 5,000 crore has been allocated to pay wages and allowances for workers and employees in export-oriented industries. This sector has already been fully implemented.

At the same time, the government had set a target of Tk 2,000 crore for interest subsidies on loans disbursed by commercial banks in April and May of last year. This has also been fully implemented.


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Louisiana U.S. Senators Worried About SBA’s $ 4.5 Billion Loan Proposal https://premudraja.net/louisiana-u-s-senators-worried-about-sbas-4-5-billion-loan-proposal/ Thu, 14 Oct 2021 05:01:24 +0000 https://premudraja.net/louisiana-u-s-senators-worried-about-sbas-4-5-billion-loan-proposal/ Getty Images BATON ROUGE – The two U.S. senators from Louisiana are concerned about a provision in the $ 3.5 trillion congressional budget reconciliation bill that would allocate billions in direct government loans to small businesses. US Senators John Kennedy and Bill Cassidy, both Republicans from Louisiana, called the plan “ineffective, expensive and unfair,” with […]]]>
Getty Images

BATON ROUGE – The two U.S. senators from Louisiana are concerned about a provision in the $ 3.5 trillion congressional budget reconciliation bill that would allocate billions in direct government loans to small businesses.

US Senators John Kennedy and Bill Cassidy, both Republicans from Louisiana, called the plan “ineffective, expensive and unfair,” with 13 other senators in a letter addressed to the leaders of the United States House and Senate and to the chairmen of the small business committees of both chambers.

The arrangement, known as Section 100502, or Funding for Credit Enhancement and Small Dollar Loan Funding, would allow nearly $ 4.5 billion over 10 years for the US Small Business Administration (SBA) to issue direct loans 7 ( To).

Loan 7 (a) program provides up to $ 5 million to eligible borrowers to use for real estate, short- and long-term working capital, refinancing of current commercial debt, and “furniture, fixtures and supplies”.

The main concern raised by opposing senators relates to the liability of taxpayers. While the inclusion of private bank lenders in the SBA lending process involves integrated financial oversight, they said, direct government lending invites abuse.

“Aiming to get more 7 (a) loans into the hands of the smallest of small businesses by providing the SBA with $ 4.5 billion to run its own loan program is misplaced,” the letter said. “Without proper parameters, the direct loan program can fall into a lot of fraud and abuse. “

The letter cited an office of the SBA Inspector General report showing that the government-run Economic Disaster Lending Program (EIDL) processed and advanced $ 79 billion in potentially fraudulent loans.

The OIG was alerted to potential fraud issues with the government’s direct lending program when private financial institutions reported red flags when receiving loan deposits.

“We have received complaints about more than 5,000 cases of suspected fraud from financial institutions receiving loan deposits for economic harm,” the OIG report said.

Coincidentally, the day after Senators’ letter of October 6, the SBA Inspector General released another report showing that the EIDL program overpaid $ 4.5 billion in “illogical” claims from small businesses.

The OIG found 700,000 applicants claiming to be sole proprietors and independent contractors falsely received taxpayer-funded grants based on claims that they employed up to 1 million employees. The required tax identification numbers were also not submitted, the OIG said.

“The SBA has approved thousands of grant amounts for applications that were not sufficiently reviewed because no control system was in place to flag applications containing erroneous or illogical information,” the report concludes.

“Compare that to the Paycheck Protection Program (PPP), where only $ 4.6 billion in potential fraud has been identified,” senators said of the CARES Act loan program which involved 5,467 private lenders managing 12 million loans. . “Out of $ 800 billion for the full program, this is only 0.6% of the total.”

The proposed SBA 7 (a) loan provision is part of a $ 25 billion small business package that is itself tucked away in the 2,465-page budget reconciliation proposal.

The chair of the House Small Business Committee, Rep. Nydia Velázquez, DN.Y., said the funding was key to moving the U.S. economy forward beyond the COVID-19 pandemic when it was adopted by her committee in September.

“Small businesses are the foundation of our economy and ultimately the key to a full economic recovery of our country,” said Velázquez. “The small business policies we have proposed today represent a generational investment in American entrepreneurs and will help businesses recover from COVID now and thrive in the future. “

The Consumer Bankers Association, a retail banking group with members in all 50 states, argues that direct 7 (a) lending could hurt private lenders because of the SBA’s favorable lending terms.

In a letter in Congress, CBA President and CEO Richard Hunt said: “In addition to fraud concerns, a new direct loan program established by Congress raises concerns about a subsidized direct loan program by the SBA government which will compete with private market lenders who have invested heavily over the years to be able to offer 7 (a) loans.

Hunt proposed a compromise involving increased access to government support for very small businesses.

“Perhaps a more constructive policy would be for Congress to consider retaining the provisions of the CARES Act that enhance 7 (a) loans, such as the 100% loan guarantee for loans under $ 150,000.” , said Hunt.

By William Patrick for Place du Center


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NeuroOne Medical Technologies Corporation Announces Proposed Public Offering of Common Shares https://premudraja.net/neuroone-medical-technologies-corporation-announces-proposed-public-offering-of-common-shares/ Tue, 12 Oct 2021 23:03:00 +0000 https://premudraja.net/neuroone-medical-technologies-corporation-announces-proposed-public-offering-of-common-shares/ Posted: October 12, 2021 at 7:03 PM EDT|Update: 1 hour ago EDEN PRAIRIE, Minnesota, 12 October 2021 / PRNewswire / – NeuroOne Medical Technologies Corporation (Nasdaq: NMTC) (the “Company”), a medical technology company focused on improving surgical care options and outcomes for patients with neurological conditions, announced today ‘hui that it launched a subscription project […]]]>

Posted: October 12, 2021 at 7:03 PM EDT|Update: 1 hour ago

EDEN PRAIRIE, Minnesota, 12 October 2021 / PRNewswire / – NeuroOne Medical Technologies Corporation (Nasdaq: NMTC) (the “Company”), a medical technology company focused on improving surgical care options and outcomes for patients with neurological conditions, announced today ‘hui that it launched a subscription project for a public offering of shares of its ordinary shares.

(PRNewsfoto / NeuroOne Medical Technologies Corporation)

All of the common shares to be sold under the proposed offer will be sold by the Company. In addition, the Company intends to grant the Underwriter a 30 day option to purchase up to an additional 15% of the Common Shares sold under the Offer. The offered offer is subject to market and other conditions, and there can be no assurance that or when the offer can be made, nor as to the size or actual conditions of the offer.

The Company intends to use the net proceeds of this proposed offering for working capital and other general corporate purposes.

Craig-Hallum Capital Group is acting as the sole managing underwriter for the proposed offering.

The proposed offer is being made pursuant to a pre-registration statement on Form S-3 (File No. 333-256830) which has been declared effective by the United States Securities and Exchange Commission (“SEC”) on June 14, 2021. A preliminary prospectus supplement and accompanying prospectus relating to the proposed offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov or by contacting Craig-Hallum Capital Group LLC, 222 South Ninth Street, Suite 350, Minneapolis, Minnesota 55402, Attn .: Equity Capital Markets, Phone: 612-334-6300 or Email Prospectus@chlm.com.

This press release does not constitute and will not constitute an offer to sell or the solicitation of an offer to buy any securities, and there will be no sale of such securities in any State or other jurisdiction in which such offering, solicitation or sale would be illegal. prior to registration or qualification under the securities laws of any such state or other jurisdiction. Any offering, if any, will be made only by means of a prospectus, including a prospectus supplement, forming part of the actual registration statement.

About NeuroOne

NeuroOne Medical Technologies Corporation is a developmental company committed to providing minimally invasive and high definition solutions for EEG recording, brain stimulation and ablation solutions for patients with epilepsy, Parkinson’s disease, dystonia, essential tremors, chronic pain from failed back surgery, and other related neurological conditions that can improve patient outcomes and reduce procedural costs. For more information visit https://www.n1mtc.com.

Forward-looking statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except for statements of historical fact, any information contained in this presentation may be a forward-looking statement that reflects the Company’s current views on future events and is subject to known and unknown risks, uncertainties and other factors. that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by such forward-looking statements. In some instances, you may identify forward-looking statements by the words “may”, “may”, “will”, “may”, “should”, “should”, “expect”, “intend to” “,” plan “,” objective “,” anticipate “,” believe “,” estimate “,” predict “,” project “,” potential “,” target “,” seek “,” contemplate “,” continue “and “In progress”, or the negative of those terms, or any other comparable terminology intended to identify statements about the future. Forward-looking statements include statements relating to the proposed offering and the intended use of the product. Although the Company believes that we have a reasonable basis for each forward-looking statement, we caution you that such statements are based on a combination of facts and factors currently known to us and our expectations for the future, of which we cannot be. some. Our actual future results may differ materially from what we expect due to factors largely beyond our control, including risks and uncertainties associated with market and other conditions, the satisfaction of customary closing conditions associated with the proposed public offering, the impact of general economic, industry or political conditions in United States or internationally and those described under the heading “Risk Factors” in our documents filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release, and the Company assumes no obligation to revise or update any forward-looking statements for any reason, even if new information becomes available at that time. ‘to come up.

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SOURCE NeuroOne Medical Technologies Corporation

The above press release has been provided courtesy of PRNewswire. The views, opinions and statements contained in the press release are not endorsed by Gray Media Group and do not necessarily state or reflect those of Gray Media Group, Inc.


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7 charts that summarize OYO’s commercial health linked to the IPO https://premudraja.net/7-charts-that-summarize-oyos-commercial-health-linked-to-the-ipo/ Sun, 10 Oct 2021 11:38:27 +0000 https://premudraja.net/7-charts-that-summarize-oyos-commercial-health-linked-to-the-ipo/ Founded in 2013, OYO has so far raised total funding of $ 4.1 billion and seeks to raise $ 1.2 billion through the proposed IPO. It reported an improvement in its Adjusted EBITDA to -1,744.72 Cr (INR) in the year compared to -8,277.27 Cr in FY20. In fiscal year 2019, the company reported adjusted EBITDA […]]]>

Founded in 2013, OYO has so far raised total funding of $ 4.1 billion and seeks to raise $ 1.2 billion through the proposed IPO.

It reported an improvement in its Adjusted EBITDA to -1,744.72 Cr (INR) in the year compared to -8,277.27 Cr in FY20. In fiscal year 2019, the company reported adjusted EBITDA of -2,236.28 Cr.

In the DRHP, OYO said its “substantial amount of indebtedness” could “negatively affect” its financial flexibility and competitive position. As of July 31, 2021, he had Rs 4,890.55 Cr of total outstanding borrowings on a consolidated basis

Hospitality unicorn Oravel Stays, the parent company of OYO, has filed an initial public offering (IPO) of INR Cr 8,430 which will include new shares worth INR Cr 7,000 and a sale offer through which numerous Existing investors are expected to unload their shares, amounting to INR 1,430 Cr.

Here are four highlights before examining the company’s financial health:

  • As of March 31, 2021, OYO had 157,344 properties in more than 35 countries, including 17,820 hotels, 59,161 OYO Homes and 80,363 list the windows.
  • Hospitality unicorn has raised $ 4.1 billion in funding so far
  • SoftBank is the company’s largest shareholder, with 46.62% of the shares.
  • OYO recorded INR 4,157.38 of income in FY21 while its expenses amounted to INR 6,936.07.

Struck by the Covid-19 pandemic, OYO’s business has been on a downward trend with declining revenues. Ongoing losses and increasing debt remain the main concerns of the hotel company. To get her business back on track and forge a path to profit, she may need to put in considerable effort to move forward.

OYO saw a 70% drop in revenue in FY21

A review of its Draft Red Herring Flyer (DRHP) shows that the SoftBank-backed hotel startup’s total income fell almost 70% in FY21 to INR 4,157.38. Its total turnover amounted to INR 13,413.26 Cr during the previous financial year.

The drop in income was largely due to lockdowns induced by the pandemic in India and all other markets.

The company, however, recorded a 70% contraction of losses to 3,943.8 Cr INR in FY21 compared to the loss of 13,122.77 Cr INR in FY20, due to a huge drop in spending. Its total expenditure in FY21 was INR 6,936.07 Cr compared to INR 22,800.12 in FY20.

OYO cut employee costs to cut expenses

A reduction in spending on employee benefits has played a crucial role in reducing overall costs. During the pandemic, OYO resorted to several cost-cutting measures, including mass layoffs, time off and pay cuts. Its social charges fell by 63% to INR 1,742.12 Cr in FY21, against INR 4,765.28 Cr in FY20.

Currently, the company has 5,130 employees worldwide, including more than 3,600 in India. OYO had nearly 10,000 employees at the start of 2020, according to reports.

7 charts that follow the health of OYO's business linked to the IPO

OYO faces weakened gross reservation value amid pandemic

In the hospitality industry, Gross Booking Value (GBV) is a key indicator of the demand that a hotel or business attracts and its revenue streams. Struck by the Covid-19 pandemic, the gross value of OYO reservations plunged 67% to INR 6,638.89 Cr in the last fiscal year, from INR 20,088.37 Cr in FY20.

The GBV of hotels and houses is defined as the amounts payable by customers for reservations, after deducting cancellations and gross of discounts (such as loyalty points and OYO discounts) across all distribution channels, including the OYO website, mobile application, call centers, party OTA third parties and other offline channels.

GBV from listings is the amount of subscription fees paid by clients of its SEO activity to the business to list their storefronts on its platform.

Charts that follow the health of OYO companies linked to the IPO

Accumulation of debt can impact OYO

When a company is very indebted, we get a fair idea of ​​its financial situation. OYO’s debt levels have increased over the past two years and the company, in its DRHP, has recognized its “substantial amount of debt” which could “negatively affect” its financial flexibility and competitive position.

As of July 31, 2021, it had INR 4,890.55 Cr of the total outstanding loans on a consolidated basis.

Its debt ratio was -35.14% in FY19, followed by 33.98% in FY20 and 45.70% in FY21. Debt ratios are the financial ratios that compare a business owner’s equity to the debt or funds borrowed by the business.

“We have substantial debt, which requires significant interest and principal payments,” the company said in its DHRP. OYO noted that its debts could have significant effects on its business and make it more difficult for the company to meet its current and future debts.

“Our debt instruments contain restrictions that impact our business and expose us to risks that could materially and adversely affect our liquidity and financial condition. If we need additional funding to support our business, this additional funding may not be available on reasonable terms, if at all, ”he said in his HRD.

Among other adverse possibilities, high debt can also increase its vulnerability to adverse changes in prevailing economic, industrial and competitive conditions, including fluctuations in exchange rates.

This would require OYO to reserve a substantial portion of its operating cash flow to service its debt, thereby reducing the availability of cash flow to fund working capital and other operating and growth expenses.

According to the DRHP submitted to the capital market regulator SEBI, Oravel Stays plans to use nearly 2,441 Cr INR of its net proceeds from the IPO to repay part of the loans taken out by its subsidiaries.

Charts that follow the health of OYO companies linked to the IPO

Too many lawsuits can hamper OYO

Over the years, the IPO-linked startup has faced several controversies and lawsuits. Its IPO shows that the company, its subsidiaries and its promoters are involved in 65 legal cases.

Although OYO has qualified the amounts involved in several cases as “unquantifiable”, according to its DRHP, the total amount involved in the ongoing cases amounts to INR 347.52 Cr. These include 15 lawsuits involving the company, 16 against its directors and 34 concerning the subsidiaries of Oravel.

Of the 15 lawsuits involving the company, 14 were filed against it and one was filed by the startup. Among these 14, four relate to material disputes, two relate to actions of statutory bodies or regulatory authorities and eight relate to taxation.

At the date of filing the DRHP file, there had been no criminal proceedings against the technology-backed hotel start-up.

In addition, 16 lawsuits are also pending against the directors of the SoftBank-backed startup, and these mainly involve cases against founder and CEO Ritesh Agarwal.

8 charts that follow the health of OYO companies linked to the IPO

OYO Adjusted Gross Profit Improves Due to Global Portfolio Streamlining

Amid all the gloom in the hospitality unicorn, there are a few bright spots for the business with improved Adjusted Gross Margin and EDITDA. OYO has been able to improve its adjusted gross margin over the past two years, another indicator of a company’s consistent performance. Its adjusted gross profit for FY21 was 1,313.67 Cr against INR 1,277.18C for FY20.

In fact, adjusted gross profit in FY20 more than doubled from INR 575.4 Cr in FY19.

OYO’s DRHP said its adjusted gross profit margin (adjusted gross profit as a percentage of revenue) from contracts with customers increased from 9.7% in FY20 to 33.2% in during fiscal year 21. The company attributed it to several factors.

First, streamlining its global portfolio with a focus on profitable sourcing in its core growth markets. Second, a significant decrease in the number of establishments that came with minimum guarantees or fixed payment commitments. It went from 14.7% on March 31, 2019 to 0.1% on March 31, 2021.

8 charts that follow the health of OYO companies linked to the IPO

Improved OYO adjusted EBITDA

EBITDA, or earnings before interest, taxes, depreciation, and amortization, is an important indicator of financial performance because it measures profitability. Adjusted EBITDA is all about the standardization of EBITDA by removing anomalies. The result can be compared more accurately and easily to the EBITDA of other companies or the industry as a whole.

Although the income of the Gurugram-based unicorn fell in FY21, it reported an improvement in its Adjusted EBITDA to -1,744.72 Cr (INR) during the fiscal year. compared to -8,277.27 Cr in FY20. In fiscal year 2019, the company reported adjusted EBITDA of -2,236.28 Cr.

Charts that follow the health of OYO companies linked to the IPO

An in-depth analysis of its DRHP shows that since its creation in 2013, the rapid expansion of its activity and its footprint has also been accompanied by huge losses, lack of profitability and growing debt. The IPO could result in a positive change in its flow of funds.

With the proceeds of the IPO, he plans to reduce his debt levels and also achieve business growth, which depends on a successful listing.

Streamlining and streamlining its business and operations and finding better ways to generate revenue can increase profitability.


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Andhra CM calls for the Prime Minister’s intervention to face the energy crisis https://premudraja.net/andhra-cm-calls-for-the-prime-ministers-intervention-to-face-the-energy-crisis/ Sat, 09 Oct 2021 04:14:35 +0000 https://premudraja.net/andhra-cm-calls-for-the-prime-ministers-intervention-to-face-the-energy-crisis/ The Chief Minister of Andhra Pradesh, YS Jagan Mohan Reddy, on Friday requested the intervention of Prime Minister Narendra Modi to deal with the acute energy crisis facing the state, due to the shortage of stocks of coal. To avoid chaotic conditions likely to arise from the load shedding, the chief minister urged the prime […]]]>

The Chief Minister of Andhra Pradesh, YS Jagan Mohan Reddy, on Friday requested the intervention of Prime Minister Narendra Modi to deal with the acute energy crisis facing the state, due to the shortage of stocks of coal.

To avoid chaotic conditions likely to arise from the load shedding, the chief minister urged the prime minister to order the ministries of coal and railways to allocate 20 coal rakes to thermal states and banks to be tasked with supplying generously working capital loans to discoms (distribution companies) until the end of the crisis.

“In Andhra Pradesh, the demand for electricity post-COVID-19 has increased by 15% in the last six months and by 20% in the last month, coupled with the coal shortage, plunging the energy sector of the country in turmoil, ”Jagan said. in a letter to the Prime Minister.

It has become increasingly difficult to meet grid demand and circumstances are pushing the state towards load shedding, he said and urged: “We need your urgent interventions in this hour of crisis” .

Unplanned power cuts, once used, will lead to chaotic conditions in society, as the state witnessed in 2012, he added.

Seeking urgent measures to avoid load shedding, the CM demanded the revival of failed / non-functioning coal-fired power plants in India without PPAs or coal-fired in an emergency.

This will save the coal transport time and quantity limitations in transporting coal in coal-fired power plants without a mine head, he said.

Jagan also requested the deep water well gas supply available from ONGC and Reliance in an emergency for 2,300MW gas plants stranded / non-functioning in the state.

He further said that the nearly 500 megawatt (MW) shortfall in power plants due to plant maintenance can be made up by reviving plants early or postponing maintenance.

Highlighting the energy crisis facing the state, the chief minister said Andhra Pradesh responds to grid demand of around 185 to 190 mega units (MU) on a daily basis. The power plants operated by APGENCO, which supply about 45 percent of the state’s energy needs, barely have coal stocks for 1 or 2 days and their production could be further affected.

APGENCO’s coal-fired power stations are operating at less than 50 percent of their 90 CU capacity per day due to the coal shortage. Power plants (CGS) were also unable to deliver more than 75% of their 40 MU per day capacity, he said.

In addition, the CM said it absorbs the energy of 8,000 megawatts (MW) of renewable energy capacity, the state has not executed contracts with coal-fired power plants and therefore it is highly dependent on purchases. of the market to supply the missing energy.

The average daily market price of about CU40 per day of energy the state purchases has tripled from a daily average of ??4.6 per kWh (kilowatt hour) on September 15 at a daily average of ??15 per kWh on October 8 of this year, he added.

Jagan also mentioned that the tariffs in up-to-date and real-time electricity markets are skyrocketing day by day and have peaked at ??20 per unit at most times of the day regardless of peak or off-peak hours.

“Electricity is also not available at certain times in the market due to less generation availability in the country,” he said, adding that this is a “situation. alarming “and that the finances of distribution companies would deteriorate further if the situation persisted.

The power shortage is affecting the last stage of the harvest for farmers, he added.

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