Understanding AUM in NBFCs: A Conversation Between Manu and Vinu Vinu: Hey Manu, I've been reading the annual report of an NBFC, and they keep mentioning AUM. What exactly is AUM, and how is it calculated for NBFCs? Manu: Good question, Vinu! AUM, or Assets Under Management, refers to the total valu...
Understanding Recourse Structures in Bank Guarantees - A Discussion Vinu: Hey Manu, I was reading about bank guarantees and came across the term “recourse structure.” Can you explain what that is? Manu: Sure, Vinu. A recourse structure in a bank guarantee means that if the principal, the person or c...
Exploring Different Types of Bill Discounting Vinu: Hey Manu, I’ve heard about bill discounting as a way to manage cash flow, but I’m not sure about the different types. Can you explain the types of bill discounting to me? Manu: Sure, Vinu! Bill discounting is a financial arrangement where a busines...
Cash Credit against Book Debts - A Discussion Vinu: Hi Manu, can you help me understand how to assess the Cash Credit or Overdraft limit for a business entity against Book Debts as security? Manu: Sure, Vinu. Assessing the limit involves a thorough evaluation of the business’s financial health and t...
Unhedged Foreign Currency Exposure Vinu: Hey Manu, I came across the term "unhedged foreign currency exposure" in a finance article. Can you explain what it means? Manu: Sure, Vinu! Unhedged foreign currency exposure refers to a situation where a company is exposed to fluctuations in foreign exchang...