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...
Quasi Equity in Balance Sheet Analysis: Enhancing Debt-Equity Ratio or Hidden Risk? Vinu: Hey Manu, I've been hearing about something called Quasi Equity in the context of balance sheet analysis. Can you explain what it is and how it can impact the analysis? Manu: Sure, Vinu! Quasi Equity refers to ...