Why Current Accounts Are Essential for Smooth Business Operations Vinu: Hey Manu, why is it advisable to use a current account instead of a savings account for business transactions? Manu: Good question, Vinu. The main reason is that current accounts allow unlimited transactions, while savings accou...
Understanding Minimum Alternative Tax (MAT): Ensuring Fair Corporate Taxation Vinu: Hey Manu, I came across something called Minimum Alternative Tax (MAT) while reading about corporate taxes. Can you explain what it is? Manu: Of course, Vinu! MAT is a provision under the Indian Income Tax Act, intro...
The Impact of Guarantor Liabilities on New Loan Approvals: A Deep Dive with Vinu & Manu Vinu: Hey Manu, I have a question. If a customer stands as a guarantor for a loan in another bank, what would be the implications when they’re applying for a new advance from us? The loan for which they’re a guar...
Understanding Loan Restructuring: Is Changing Installment Patterns Considered Restructuring? Vinu: Hey Manu, I’ve sanctioned a term loan of Rs 1.50 crore for 7 years, including a 6-month gestation period for plant and machinery, and a cash credit limit of Rs 0.45 crore. The client has been paying in...
Navigating Excess Borrowings: Effective Strategies for Businesses Vinu: Hey Manu, I've been hearing a lot about businesses struggling with excess borrowings. What are some effective ways a company can reduce its excess borrowings? Manu: That's a great question, Vinu. There are several strategies bus...