Understanding Bad Debts vs. Provision for Bad Debts: A Simple Breakdown for Business Owners Vinu: Hey Manu, I've been hearing about bad debts and provisions for bad debts in my accounting class, but I'm still a bit confused. Could you explain the difference to me? Manu: Sure, Vinu! Let me explain it...
Bill Discounting vs. Bill Purchase: Understanding the Key Differences and Risks Vinu: Hey Manu, I’ve been hearing about bill purchase and bill discounting a lot lately, but I’m still not sure what the difference is. Can you explain? Manu: Sure, Vinu! Let's break it down. Bill discounting is when you...
Understanding Loan Equivalent Risk (LER): How Banks Manage Risk Beyond Currency Fluctuations Vinu: Hey Manu, I heard about this "Loan Equivalent Risk" (LER) today, but I’m confused about how it works. Could you explain it with a real example? Manu: Sure, Vinu! Let’s take an example. Imagine ABC Ltd....
Understanding Treasury Yields: A Beginner's Guide to Bond Returns and Market Signals Vinu: Hey Manu, can you explain what a treasury yield is? I've heard about it, but I'm not really sure what it means. Manu: Sure, Vinu! Treasury yield refers to the return an investor gets on a U.S. government bond ...
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...