Role of Creditor in Working Capital Management

access_time 2023-06-30T18:11:04.172Z face CA N Raja
Role of Creditor in Working Capital Management Vinu: Hey Manu, I was curious about the role creditors play in the working capital cycle. Could you enlighten me? Manu: Hi Vinu! Creditors play an important role in the working capital cycle. They are the suppliers or vendors from whom a company purchas...

Understanding Inventory Holding Period: Insights for Bankers

access_time 2023-06-30T14:07:55.235Z face CA N Raja
Understanding Inventory Holding Period: Insights for Bankers Introduction: Welcome to our blog, where we dive into the concept of inventory holding period and its relevance for bankers. In this scenario, Vinu, a curious banker, approaches Manu, an expert in inventory management, seeking clarificatio...

Why Cost of Debt is different in WACC?

access_time 2020-04-20T12:35:25.18Z face CA N Raja
Why Cost of Debt is different in WACC ? When you pay interest on one side, on the other side you save tax due to interest (because your profits gets reduced to the extent of interest). Lets say, your profit before tax is 100 Mn and if you are paying interest of 30Mn (10% of 300Mn Loan), then your pr...

Difference between Cash Flow and Fund Flow Statements

access_time 2019-02-04T05:03:57.764Z face CA N Raja
Fund flow statement is basically prepared to know what caused changes in financial position between two accounting periods.It analyses what are the reasons for the changes. so the focus is what and why of changes whereas cash flow statement will ascertain what caused changes in cash and cash equival...

What is Bridge Finance?

access_time 2019-01-07T10:14:14.857Z face CA N Raja
Let's say your company has taken up a big project and it has approached financial institution for a long term loan and let's say that loan also has been sanctioned but Financial institution is taking time for finalising its procedures related to security creation Or tie up with other institutions. H...