Sources and Perspectives on Risk in Capital Budgeting
In the world of banking and corporate finance, risk is a constant companion. Every capital budgeting decision—whether it’s funding a new branch, adopting new technology, or entering a new market—comes with uncertainties about future cash flows. Understanding the sources and perspectives on risk is vital for making informed and profitable investment choices. Main Sources of…
Read article Adjustment of Risk and Uncertainty in Capital Budgeting Decisions
In banking and corporate finance, capital budgeting decisions are pivotal because they involve substantial investments in long-term projects or assets. These decisions directly influence an institution’s financial health, strategic direction, and competitive position. However, the future is inherently unpredictable, making risk and uncertainty integral challenges in the capital budgeting process. Adjusting for these factors is…
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India’s Cheque Clearing System to Get Real-Time Upgrade from October 2025
Mumbai, August 2025 – The Reserve Bank of India (RBI) has announced a significant overhaul of the country’s cheque clearing process, promising to reduce settlement times from days to mere hours. The new system, set to be implemented from October 4, 2025, will shift cheque processing from the existing batch-based method to a continuous, real-time…
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Breaking from Parliament – The Income-Tax (No. 2) Bill, 2025 Passed in Lok Sabha
After more than six decades, India bids farewell to the Income-tax Act, 1961. On August 11, 2025, the Lok Sabha passed the Income-Tax (No. 2) Bill, 2025, marking the most sweeping tax reform in generations. The Bill—shaped by 285 recommendations from the Parliamentary Select Committee led by MP Baijayant Panda—promises **S.I.M.P.L.E.** compliance: *Streamlined, Integrated, Minimized…
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Transfer pricing: Impact on overseas projects
Transfer pricing has a significant impact on overseas projects and multinational corporations (MNCs) by influencing how profits, costs, and tax liabilities are allocated among different subsidiaries operating in various countries. This practice affects international capital budgeting, tax compliance, investment decisions, and overall financial performance of MNCs. Key impacts of transfer pricing include: In summary, transfer…
Evaluation methods for overseas projects
Evaluation methods for overseas projects encompass various approaches tailored to assess financial viability, risk, effectiveness, and broader impacts. These methods are designed to address the unique challenges of international contexts, such as currency risk, political environment, and cultural differences. Here is a detailed overview: 1. Pre-Project Evaluation (Feasibility Assessment) 2. Financial Evaluation Methods 3. Risk…
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