The term ratio means a simple division of one number by another. It is measured by the number of times one number is contained by the other, either integrally or in fraction. The ratio analysis of financial statement means the process of calculating structural relations of different items and groups in the financial statements. Generally,…
If any lending decision is to be properly made, the risk involved in the transaction should be properly evaluated. Risk evaluation primarily consists in the ascertainment of the ability of the prospective borrower to repay the proposed loan. To ascertain this ability, apart from financial analysis many other vital considerations such as the character of…
(This article explains the method of computation and the purposes of capital structure ratios viz. Current ratio, Quick ratio/Acid test ratio, Debt Equity Ratio, Solvency Ratio, Proprietary or Equity asset ratio, Fixed assets to tangible net worth plus term debt, Current debt to tangible net worth ratio, Inventory to net working capital ratio, Current debt…
The term “accounting treatment” represents the prescribed manner or method in which an accountant records and presents a specific business transaction or event in the establishment’s financial statements. The accounting policies of Banks require banks to disclose the key areas of operations in one place (under Schedule 17) along with notes to accounts in their…
(This article identifies the non-current assets to be separated from current assets while appraising the working capital limits to borrower). Non-current assets are assets that a business holds for more than a year and are expected to generate economic benefits in the future. They are also known as long-term assets. Non-current asset examples · Land…
The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the prudential regulation of banks and provides a forum for regular cooperation on banking supervisory matters. Its 45 members comprise central banks and bank supervisors from 28 jurisdictions. Basel III reforms are the response of the Basel Committee on Banking Supervision…
In terms of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) read with SEBI circular no. CIR/ CFD/ CMD/4/2015 dated September 09, 2015; the Bank is required to make disclosures of any events or information which, in the opinion of the board of directors is material. Listing Regulation…
Many methods and techniques are used in the analysis of financial statements including profit and loss accounts. They include (i).Trend analysis (Historical standard): A comparison is done of current performance with past figures of the firm. (ii). External Standards: Comparison is done between the two business concerns of the same size, which can also be…
The Government of Uttar Pradesh vide order No. 870/3-2024-39(2)/2016 dated 17.12.2025 declared following days as General Holidays for the year 2025 Sr.No Date Day Occasion/Festival Date 1 14.01.2025 Tuesday MD.HAZARAT ALI’S BIRTHDAY 2 26.01.2025 Sunday REPUBLIC DAY 3 26.02.2025 Wednesday MAHA SHIVRATRI 4 13.03.2025 Thursday HOLIKA DAHAN 5 14.03.2025 Friday HOLI 6 31.03.2025 Monday ID-UL-FITR…
Financial statement disclosures are non-financial information that appears at the end of a financial statement. This information helps investors, lenders, and others make decisions. The Basel Framework’s Pillar 3 outlines a set of public disclosure requirements for internationally active banks. These requirements provide market participants with information to assess a bank’s capital adequacy and material…
