Working Capital (WC) in Business Assessment of Working Capital Requirement Any business entity requires two types of capital -‘fixed/permanent capital” for purpose of acquisition of fixed assets and other long term investments to run the business and ‘working capital’ for the purpose of carrying out it’s...
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As we realize that the devaluation is bookkeeping’s approach to record wear and tear on an organization’s property, plant, and hardware (PP&E). Despite the fact that it’s a cost on the pay explanation, devaluation isn’t a money charge, so it’s additional back to net pay.
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Net Income is a useful financial management term for an individual or a family and also the same as the profit of a business, or earnings. It is taken specifically from an organization’s pay articulation. Net salary is the beginning stage of how much money an...
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Why Cash Flow from Operating Activities is Important. Since income demonstrates the quick wellbeing of an organization, income is a critical factor that decides an organization’s capacity to pay its present costs. These costs incorporate working costs, for example, work costs and the reimbursement of...
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Credit Risk Grading or CRG is a great tool for measuring credit risk. It directly works for credit risk management. It helps to determine credit risk for banks and financial institute. This credit risk grading system is vital to take decisions both before or after...
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Classified Loan in banking industry is considered a great threat. The loans which passed it’s normal paid up time as per pre schedule is termed as classified loan. In the event that any advance or progress is named ‘Sub-standard’ and ‘Doubtful’, intrigue collected on such...
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On the off chance that any advance or progress is named Sub-standard, Doubtful and Bad and Loss, intrigue collected on such advance will be credited to Interest Suspense Account, rather than attributing the same to Income Account. In the event that we go for such...
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Credit Risk Grading score calculation is the basic module for developing a credit risk management system. It arranges a number or symbol as a primary indicator of total risk involved in credit or loans in business. All banks should adopt a credit risk grading system. This...
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International practice to give a fair face to the balance sheet. Loan classification as ‘Bad & Loss” for five (5) years and more. Case are to be filed before write off. 100% provision should be maintain. May be write off without filing case, if the...
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