@Leisure - Vol-4 | srei
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@Leisure - Vol-4

Newsletter
 

The Euro: Birth of a new currency

The Euro was introduced on January 1, 1999 as a result of the collective decision made by eleven countries with territories stretching from the Arctic Circle to the Mediterranean called the European Union (EU). The EU introduced its new currency, the Euro, to provide several economic benefits as a result of a single currency.

The Euro was created among Member States for closer co-operation, a stable currency and economy. Originally, the currency was an all-embracing tool used for exchange between countries within the union while people within the countries continued to use their domestic currencies. Over a period of three years, the Euro started getting recognized as an everyday currency and replaced the domestic currencies of individual member states.

The benefits of the Euro are diverse and provide the following economic advantages to individual citizens and businesses of the EU:

  • Stable and transparent prices across the EU for consumers and citizens.
  • Greater opportunities and improved security for businesses to grow.
  • More integrated financial markets.
  • Easy travelling in EU without the need for exchanging money.
  • Currency risks removed from the European trade.
  • Stronger footprint for the EU in the global economy.

Many smaller member nations believe the system is inclined to favour of the large nations. While this may be true, the benefits of being a member outweigh the negatives, and there is no shortage of nations seeking membership. The Euro is managed by the European Central Bank (ECB); its primary focus is on balancing the needs of all member nations and is therefore, more insulated from political pressure. The Euro has to a large extent managed to remove inflation from the European currency markets, making it easier for the growth of the overall economy and trade of the EU to grow.

 
 

Strong partnership, Great Performance

SREI Equipment Finance Limited (SREI BNP) is one of the largest Non-Banking Finance Companies (NBFCs) in India with current AUM of Rs 18, 307 Crores as on 31st March 2014.

SREI Equipment Finance Limited is a market leader in ECE financing with 30,000-strong diversified customer base. The company’s distribution network spans 86 branches in India which includes 12 regional offices. SREI Equipment Finance Limited is a 50:50 joint venture between SREI Infrastructure Finance Limited (SIFL) and BNP Paribas Lease Group (BPLG). One of early movers, SIFL is the leading NBFC player in the infrastructure sector while BPLG is a leading group in Europe with a presence in 15 countries.

SREI Infrastructure Finance Limited (SIFL)began operations in 1989 as a construction equipment finance and leasing concern. SREI can be credited with:

  • Being the first player to focus on infrastructure as a niche segment.
  • Creating an arena of construction equipment financing, rental and auction in India.
  • Introduction and development of a manufacturer marketplace in India and helping it grow.

The company has attracted equity investments from global development institutions like IFC, FMO, DEG, etc.

SREI Equipment Finance Private Limited has achieved many milestones. These are:

  • Ventured into financing technology solutions as well as medical and healthcare equipment.
  • Alliance forged with Volvo Financial Services.
  • Entered the rural equipment financing arena.
  • Alliance with Atlas Copco India formed.

Conclusion: SIFL and BPLG have been benefitting from each other’s expertise and skills ever since the joint venture between the two was announced in 2008-09. SREI Equipment Finance Limited (SREI BNP) is a unique company with the advantage of creating a niche in the segment it operates within.

 
 

Bonds can help you earn regular/monthly income

Every investment activity is done with an objective, which could be growth, income generation, tax saving, etc. A retired person or a housewife may look at getting a regular income from their investments for their living. So, receiving an assured and periodical pay out from their investment becomes extremely important for them.

Bonds offer a good way of generating such regular incomes. Since they are operationally very similar to fixed deposits, they are equally suitable to provide you a periodical flow of cash to meet your requirement. Here is why bonds are a good option for you:

  • Certainty: They come with fixed interest rate commitments and hence, you know right at the beginning what income it can generate. This provides a level of certainty to the amount of income you can expect
  • Flexibility: You may opt to receive interest half-yearly, annually or even monthly in some cases. This would enable you to plan your expenditure accordingly. By providing your bank details, the interest payments would automatically be credited to your bank account on the specified date, thus relieving you from the trouble of encashing cheques etc.
  • Investment term: Bonds are available for varying periods of investment. So even if you want a long term assured income for say 20 years, you may invest in such a bond and relax since a steady and certain flow of income is assured
  • Tax advantage: Bonds traded on stock exchanges do not deduct tax (TDS – Tax Deducted at Source) on the interest they pay out. So, if you do not have any tax liability, you are relieved of the troubles of getting refunds from the income tax department. Without TDS, you have a higher amount in your hands.

In a nutshell, bonds can be a reliable and attractive source of generating periodical income in addition to the other benefits they offer.

 
 

Buddy Jokes

1. A thief stole my wife’s purse which contained all her credit cards.
I did not report it as the thief was spending less than she was!

2. Accountant: Doctor, I took the medicine you told me to, but its not working. Is there anything else I can do?
Doctor: Try using a calculator.
Accountant: How will a calculator help?Doctor: Not sure, but it’s something you can count on.

3. Teacher: Did your father help you with your Maths home work?
Student: No! He did it all by himself.

4. A young man to his Gym instructor: I want to impress this cute girl next door. Which machine should I use?
Gym instructor: The ATM machine outside the Gym.