Margin Money Against LC/BG: A Hidden Line in the Balance Sheet

access_time 2025-04-16T08:04:36.654Z face CA N Raja
Margin Money Against LC/BG: A Hidden Line in the Balance Sheet Vinu: Manu, I’ve seen something called “margin money against LC or BG” in a balance sheet. What does that mean? Manu: Great question, Vinu. When a company avails a Letter of Credit (LC) or Bank Guarantee (BG) from a bank, the bank usuall...

Understanding Book Debt Statements: How Banks Use Your Receivables for Loan Limits

access_time 2025-03-28T04:53:59.883Z face CA N Raja
Understanding Book Debt Statements: How Banks Use Your Receivables for Loan Limits Vinu: Manu, what is this Book Debt Statement that businesses submit to banks? I came across this term in a loan document. Manu: Good question, Vinu. A Book Debt Statement is a list of amounts receivable from customers...

Cash Flow Forecasting: The Key to Business Survival

access_time 2025-03-08T08:56:50.178Z face CA N Raja
Cash Flow Forecasting: The Key to Business Survival – A Conversation with Manu & Vinu Vinu: Manu, I keep hearing that cash flow forecasting is crucial for business survival, but I don’t really understand why. Isn’t it just about tracking cash inflows and outflows? Manu: You’re partially right, Vinu....

ROE vs. ROA: Understanding Profitability Across Manufacturing, Services, and Hospitality

access_time 2025-03-08T05:41:31.298Z face CA N Raja
ROE vs. ROA: Understanding Profitability Across Manufacturing, Services, and Hospitality Vinu: Manu, I’ve been hearing a lot about two important financial metrics—Return on Equity (ROE) and Return on Assets (ROA). Can you explain what these terms mean and why they are important? Manu: Sure, Vinu! Le...

Book Profit vs. Cash Profit: Understanding the Key Differences for Financial Stability

access_time 2025-02-25T07:54:04.557Z face CA N Raja
Book Profit vs. Cash Profit: Understanding the Key Differences for Financial Stability Vinu: Manu, I often hear about “Book Profit” and “Cash Profit” in financial discussions. Are they the same, or is there a difference? Manu: Good question, Vinu! They are quite different. Book Profit is the profit ...