TISCO Group Finance Company Financial Set Up And Operation Plan

After25years of development, TISCO Group financial Co., LTD., which hasplayed an increasingly important role in financial management and capitalmanagement of the Group, becomes an endogenous demand for TISCO to optimizethe allocation of resources, improve the management level and realize the coordinateddevelopment between production and financing. At present, TISCO Group owns morethan60subsidiaries, along with the implementation of the "Twelfth Five-year" plan,the scale of group operation will be further expanded, number of subsidiary will growfurther as well, therefore, to establish the capital management system that based onthe Group finance company is just around the corner.Taking TISCO Group Finance Company as the example, combining theory withpractice, this paper make a study on establishment and operation of company, with thepurpose to find a path that is appropriate for the development of TISCO GroupFinance Company.First, the paper makes an intensive study on the theory and development ofTISCO Group Finance Company, and then gives a brief introduction on the basicsituation, development strategy, business condition and financial management modelof TISCO Group. On this basis the paper analyzes the feasibility and necessity of theestablishment of TISCO Group Finance Company, and finally puts forward the set upand operation program, and forecast the future operating conditions of TISCO GroupFinance Company.Construction program of TISCO Group Finance Company is divided into set upplan and operation plan, of which the set up plan is the key of the paper. Set up plan isbasic content and development direction for the establishment of the finance company,including the company’s capital structure, corporate governance, organizationalstructure, strategic goals, functional location, management aim, management principle,business structure, risk system design, compensation and performance managementscheme and etc. Operation plan is a guiding document for the operation of thecompany’s business, making plan design for the company main business capitalcollection and external financing coordinated business on the basis of functionorientation, including project goal, operation principle, implementation process andetc. Set up plan and operation plan is a blueprint for the establishment of TISCOGroup Finance Company, which may provide some experiences to the construction offinancial company in large group enterprises.