Definition and Functions of a Bank
Section 5(b) of the Banking Regulation Act of 1949 defines “banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, and order or otherwise”. Deposits accepted by the banking institution are the money received from the people…
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Understanding the funds flow statement
A company’s cash flow and fund flow statements reflect two different variables during a specific period. The funds flow statement takes both cash and non-cash items for accounting. A funds flow statement is useful to study the funds exactly available for working capital from long-term sources. It also enables the assessment of an entity’s ability…
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Understanding a cash flow Statement
In accounting there are generally four different kinds of financial statements namely the balance sheet, the income statement, the cash flow statement, and the fund flow statement. Here, we delve into the last two. The Cash flow statement represents the actual inflow, and outflow of cash, and the increased or decreased position of cash and…
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What are profitability ratios?
Profitability ratios help a business entity as well as the lenders/investors to evaluate the ability to generate income as compared to its expenses and other cost associated with generation of income during a particular period. Profitability Ratios also help the managements in making business decision in respect of expansion or diversification of the business. As…
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Great news: PF withdrawal from ATMs starting 2025
The Employees’ Provident Fund Organisation (EPFO) will introduce dedicated PF withdrawal cards to PF subscribers. The PF withdrawal cards will function similarly to regular bank ATM cards. Withdrawals will be capped at 50% of the PF balance to ensure fund availability for emergencies. According to various news reports, Labour Ministry Secretary Sumita Dawra announced the…
Impact of Ind AS on Financial Statements
The Indian Accounting Standards (Ind AS), as notified under section 133 of the Companies Act 2013, were first implemented voluntarily in India on April 1, 2015. They became mandatory for certain companies on April 1, 2016, and were later extended to other companies and sectors. The main objective of Indian accounting standards (Ind-AS) is to…
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