Assessing Financial Stability: Balancing Capital, Debt, and Profitability in Business Proposals

access_time 2024-12-08T14:22:58.147Z face CA N Raja
Assessing Financial Stability: Balancing Capital, Debt, and Profitability in Business Proposals Vinu: Hey Manu, I was going through the proposal for the proprietary concern and noticed they have an unsecured loan of Rs. 51 lakhs and capital of Rs. 36 lakhs. What does that imply about their financial...

Understanding TDS Receivable: Resolving Discrepancies in Financial Statements

access_time 2024-12-05T06:29:36.313Z face CA N Raja
Understanding TDS Receivable: Resolving Discrepancies in Financial Statements Vinu: Hey Manu, I was looking at the provisional financials, and I noticed something strange. The Profit Before Tax (PBT) is 298 Lakhs, but the TDS receivable in the balance sheet is showing 215 Lakhs. Is that right? Manu:...

Why Supplier Advances Are Excluded in Drawing Power (DP) Calculations

access_time 2024-12-05T06:25:26.352Z face CA N Raja
Why Supplier Advances Are Excluded in Drawing Power (DP) Calculations Vinu: Hey Manu, I have a question about determining the Drawing Power (DP) for a loan. Can we include the advance payments made to suppliers in the DP calculation? Manu: That's a great question, Vinu. Actually, advances to supplie...

Interchangeability in Credit Facilities: A Flexible Solution for Business Financing

access_time 2024-12-03T06:41:54.075Z face CA N Raja
Interchangeability in Credit Facilities: A Flexible Solution for Business Financing Vinu: Hey Manu, I was reading through some business loan sanction letters and came across the term "interchangeability facility between credit facilities." Can you explain what that means? Manu: Sure, Vinu! The inter...

Evaluating a Cash Credit Limit Enhancement: A Comprehensive Approach

access_time 2024-12-03T06:35:48.815Z face CA N Raja
Evaluating a Cash Credit Limit Enhancement: A Comprehensive Approach Vinu: Hey Manu, I heard the firm dealing in wholesale marine sea fish in Ernakulam wants to increase their cash credit limit from Rs. 200 lakhs to Rs. 400 lakhs. What's your take on that? Manu: Yes, Vinu, they made the request citi...