Decoding Other Comprehensive Income (OCI): Beyond the Profit & Loss Statement Vinu: Vinu: Manu, I was going through a company’s Balance Sheet, and I noticed a section called Other Comprehensive Income (OCI). What exactly is it? Manu: Good question, Vinu! Other Comprehensive Income (OCI) represents c...
Mastering Cash Flow: Why It Matters More Than Profits – A Conversation with Manu & Vinu Vinu: Hi, Manu. I've been hearing a lot about Cash Flow Analysis lately, but I'm not exactly sure what it is or why it's important. Can you explain it to me? Manu: Sure, Vinu. Cash Flow Analysis is the process of...
Banks' Margin Application on Current Assets: Understanding DP Calculation & Verification of Inventory & Receivables Vinu: Hi Manu, I have a question about how banks apply margin on the Current Assets (CA) like inventory and receivables when computing Drawing Power (DP) in Cash Credit (CC) accounts. ...
Decoding DSCR: Why CC/OD Interest is Excluded & The Role of the Working Capital Cycle Vinu: Hey Manu, I've been scratching my head over something related to the Debt Service Coverage Ratio (DSCR). Can you help me out? I'm confused about why the interest on cash credit (CC) or overdraft (OD) faciliti...
Term Loan Appraisal: Key Considerations for Evaluating Borrowers and Start-ups Vinu, a credit analyst, is relatively new to the banking industry and has been assigned to work closely with Manu, an experienced credit manager. They are sitting in the bank's conference room, reviewing a term loan propo...