Liaison is often defined as corporation among different entities or organizations. It is also referred to as an exchange of information among various organisations. In the corporate world, a business liaison is regarded as a trained professional who performs a variety of duties. these duties maintain and building relationships, exchanging information and promoting operations. These are the individuals who are appointed by the company to act as a point of contact outside or inside the company. Liaison happen in both medium and large companies because direct communication from the top management is not practically possible. Communication often refers to imparting or exchanging information either by speaking, writing, or using some other medium. It plays an integral role as it helps to transmit information, ideas, thoughts and emotions. Therefore, effective communication is a must to establish a successful business.
Business liaison is the one of the most commonly used methods in corporate world. It helps to maintain and build relationships between the organisations and their external partners. It also aids in maintain relationships between internal departments. With the advancement of technology, the scope of business liaison has also been expanded.it is done through equipment’s such as acquisitions, setting up for trade shows, outsourcing of data storage, designing an in-house end user tool etc. The other responsibilities of business liaison include negotiating contracts with clients, securing new opportunities for the company, communicating with customers related to change in products, services, rates and policies, coordinating events such as trade shows, conventions, or seminars, assisting in developing market strategies, etc.
Business liaison is not limited to the corporate world. It has also expanded to the government sector. These days, business liaisons are working with government agencies. They act as a representative of, corporations, business associations, and commercial organizations. They often coordinate activities with other departments, such as compliance, public relations, and business development. This led to the establishment of strong relationship with the businesses.it has happened because of regular face to face interactions, which help foster support as well as encourage participation. The main role business liaison in government sector includes:
Even India has taken steps to interlink business liaison and government/companies. the country has established an office to act as a communication channel between the parent company, which has settled abroad. moreover, foreign companies also started to register themselves in India to explore and support the business opportunities in the country.
Liaison officers often work in high place environments. Some of the responsibilities of the liaison officer are mentioned below:
Project Identification, Formulation, Evaluation and Implementation _ Role of consultants in project management. Sources of finance for a project: Public issue of Shares, Debentures, Public deposits, Leasing, Internal generation of funds, Commercial Papers, Global Depository Receipts, Borrowings from banks and FIs _ Venture Capital _ Innovative instruments in the capital market. Project financing - Estimating the total capital requirements _ Factors determining the fixed capital and working capital _ judicious financing plan _ Capital gearing _ Matching of project requirements with available financial assistance from various sources. Process of lending for a project _ Presentation appraisal.
Appraisal of managerial and technical aspects: Evaluation of managerial skills, past records, Management and Working of other group company’s evaluation of appropriateness of technology, Availability of raw materials and utilities and safeguards against pollution, effluent disposal/treatment. Project appraisal _ Evaluation of Commercial aspects: Estimation of demand supply gap, Distribution Channels and Selling arrangements _ Evaluation of financial aspects: Dept. Equity Ratio, Current Ratio, Dept. Service Coverage Ratio, Return on Investment, Security Margin, Internal Rate of Return and Breakeven analysis. Project appraisal _ Economic analysis: Economies of scale, Employment generation, Social Cost Benefit Analysis, Contribution to government revenue, Political Stability, Priority and evaluation of international competitiveness. Project monitoring _ post sanction supervision and follow up _ How to improve recovery? _ Industrial sickness: Warning signals and causes _ Rehabilitation of a sick industrial unit _ Role of the Board for Industrial and Financial Reconstruction (BIFR)
The term trade profit fund is not a widely recognized or standardized term in finance or economics as of update in DECEMBER 2024.However, it could refer to a fund or account that manages profits derived from trade activities, possibly for investment or operational use. The companies transferring double the amount when trusts or companies give them liquid cash, this seems to involve a specific financial arrangement or practice that may not be universally applicable. Here are a few possible explanations for such a scenario: In some jurisdictions, companies can receive tax deductions or credits for donations or investments made to companies or trusts. If a company gives double the amount back to a project funded by a company or trust, it might benefit from reduced tax liabilities, thus improving its financial standing.
By transferring double, the amount, companies may be investing in corporate social responsibility(CSR) initiatives. This can enhance their public image, attract customers, and improve employee morale, leading to long-term benefits that outweigh the initial cash outlay. In some cases, the transfer might be part of a funding mechanism where the company or trust is acting as an expected to yield a return, which could justify the double transfer as part of a broader investment strategy. Companies may enter operational capabilities or access new markets. The transfer of funds could be a part of such an arrangement, where both parties benefit from shared resources and goals.
The benefits to the company in such transactions could include enhanced reputation, potential financial returns, tax advantages, and alignment with social or environmental goals. Each situation can differ significantly based on the specifics of the transaction, the nature of the NGO or trust involved, have a specific case or example in mind, providing more details could help in delivering a more tailored explanation.
Trade profit fund is a financial and accounting framework established by law to enable to adopt certain accounting and management practices common in the private sector. The fund operates on a self –financing basis and does not need to regularly seek funding from the legislature to finance its daily operations after its establishment…the intention is that such an institutional change would provide the appropriate flexibility in resource management and nurture a new working culture to improve services in terms of both quality and cost-effectiveness.
It’s more like the surplus funds of a company which usually doesn’t appear in any of the company’s balance-sheet so basically you can assume it as a black money. Now they need to convert black into white, so they prefer to provide this amount as unsecured loan to trusts and investment to private companies. With some % deduction in return but they do all sort of formalities in terms of documentations and the entire process is legally followed. In return trust or company gives them liquid cash after few days’ company will close the loan or investment case by showing partial payment received and bankruptcy of that trust or company.