RBI on Monday, in its notification, observed that consequent to the implementation of Ind AS, some Asset Reconstruction Companies (ARCs) have been recognising management fees even though the said fee had not been realised for more than 180 days. In view of the above the notification said that ARCs preparing their financial statements as per…
(This article gives the details like rights of secured creditors, Application of mind and care is required in the service of notice of SARFAESI DEMAND NOTICE, POSSESSION NOTICE & SALE NOTICE, Special care to be taken while taking possession of movable properties, method of sale of secured property by way of inviting tenders from the public or by…
In the case of running accounts like current accounts or cash credit accounts, normally there is no specific appropriation of funds to exact debit. In such cases, it is the first item on the debit side that is discharged or reduced by the first item on the credit side. This principle was originally formulated in…
The banker’s right to combine different accounts of a person against the debt it holds against the same person is called the right to set off. The right of set-off is available to the bank only when the money owed to the bank is a certain sum, which should be due at the time of…
In this article, we’ll explain what credit migration risk and credit metrics are, and how to incorporate them into the financial analysis of companies by lenders and investors. Credit Migration risks: Credit ratings for public companies or Governments are similar to credit scores for individuals. These ratings for the long-term and short-term are provided by…
Both the terms credit ratings and credit scores assess creditworthiness and risk involved in lending to an entity. A credit rating agency provides an opinion relating to future debt repayments by borrowers. The rating is assigned to a security or an instrument that even assigns an issuer rating. A credit bureau (Credit information Company) provides…
Before listing out the new slabs in the budget 2023, the finance minister announced that the Old Tax Regime will only be available on request now, and what was known as the New Tax Regime so far will thus be considered the default regime. The taxpayers can choose the regime while filing income tax returns.…
India’s central bank on Wednesday announced that all inbound travelers to India are permitted to access UPI for their merchant payments (P2M) using their international mobile numbers, while they are in the country. This is an enhancement to the earlier provision of UPI access to non-resident Indians who have international mobile numbers linked to their…
The guidelines on Trade Receivables Discounting System (TReDS) were issued in December 2014 with the objective of facilitating the financing of trade receivables of MSMEs. Small businesses can use the TReDS platform to raise capital by auctioning off their trade receivables. Before the buyer pays, a finance provider or a bank (basically the vendor) bids…
TReDS (Trade Receivables Discounting System) is an institutional setup for the flow of finance to micro, small, and medium enterprises (MSMEs) through multiple financiers at a competitive rate. The model outlined for TReDS in the paper, envisages its operation both in the primary market segment as well as a secondary market segment as authorised payment…