What is Bill Rediscounting Scheme (BRDS)?
Reserve Bank of India formulated a scheme whereby a bank may raise funds by issuing Usance Promissory Notes in convenient lots and maturities on the strength of genuine trade bills discounted by it. Under the above scheme, Scheduled Commercial banks and permitted financial entities may invest by way of rediscounting trade bills of other eligible…
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Appraisal of Working Capital Finance to Information Technology and Software Industry
Reserve Bank of India has framed guidelines for extending working capital finance to the Information Technology and Software Industry, based on the recommendations of the National Taskforce on Information Technology and Software development. However, said guidelines prepared by the central bank are not mandatory for lenders. They are free to modify RBI framed guidelines, built…
Read article How banks finance against supply bills?
Payments from Government departments or Public sector Units take time for the goods supplied to them. Similarly, a party might have taken a contract for execution and he is entitled to progressive payments based on the PSU/Government departments on work executed, for which the contractor has to submit bills in accordance with the terms and…
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Analytical Approach to Projected Financial Statements
IntroductionProjected Financial Statement analysis is a critical internal tool used by organizations to evaluate their future financial trajectory. It builds on historical financial performance and recent earnings to forecast future outcomes. This analytical process supports informed decision-making by assessing various scenarios, such as changes in sales volume or operating expenses, and their potential impact on…
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Comprehensive Analysis of Financial Statements: Techniques, Components, and Strategic Importance
IntroductionFinancial statement analysis refers to the systematic examination of a company’s financial reports—namely, the income statement, balance sheet, and cash flow statement—to evaluate its financial performance and position. This analysis assists stakeholders in assessing a company’s profitability, liquidity, solvency, operational efficiency, and overall financial health. The insights derived from this process are essential for informed…
Financial Analysis and Governance Considerations in Related Party Transactions
IntroductionRelated Party Transactions (RPTs) refer to financial or commercial dealings between a company and entities with which it shares a pre-existing relationship, such as subsidiaries, parent companies, joint ventures, key managerial personnel, or significant shareholders. While RPTs are not inherently improper or illegal, they can give rise to concerns related to conflicts of interest, lack…
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