Financial management
 
Category: Financial management
Microfinance is a form of financial services for entrepreneurs and small businesses lacking access to banking and related services. The two main mechanisms for the delivery of financial services to such clients are: (1) relationship-based banking for individual entrepreneurs and small businesses; and (2) group-based models, where several entrepreneurs come together to apply for loans and other services as a group.
1187 days ago
 
During 2003-04 the average monthly turnover in the Indian foreign exchange market touched about 175 billion US dollars. Compare this with the monthly trading volume of about 120 billion US dollars for all cash, derivatives and debt instruments put together in the country, and the sheer size of the foreign exchange market becomes evident. Since then, the foreign exchange market activity has more than doubled with the average monthly turnover reaching 359 billion USD in 2005-2006, over ten times the daily turnover of the Bombay Stock Exchange. As in the rest of the world, in India too, foreign exchange constitutes the largest financial market by far
1187 days ago
 
The foreign exchange market is global, and it is conducted over-the-counter (OTC) through the use of electronic trading platforms, or by telephone through trading desks. Some shorten the term to “forex” or “FX”. The OTC market is also known as the “spot”, “cash”, or “off-exchange” forex market. (A spot transaction refers to an exchange of currencies at the prevailing market rate.)
1187 days ago
 
Goods are imported in India or exported from India through sea, air or land. Goods can come through post parcel or as baggage with passengers. Procedures naturally vary depending on mode of import or export. Procedures discussed in this Chapter are applicable for imports by sea, air or land, but not as baggage or postal dispatch.
1187 days ago
 
Risk is inherent part of bank’s business. Effective risk management is critical to any bank for achieving financial soundness. In view of this, aligning risk management to bank’s organisational structure and business strategy has become integral in banking business. Credit risk is the bank’s risk of loss arising from a borrower who does not make payments as promised. Such as event is called as default.
1187 days ago
 
1. Determining minimum cash requirements, maintaining the checking account and managing the cash balance Related liquidity ratios: Quick ratio = Current assets - Inventories/ Current liabilities Related financial statement: Statement of Cash Flows (operating activities)
1187 days ago
 
Each proposal must contain a budget for each year of support and a cumulative budget for the duration of the project. Contributions of participating sponsor/s must be detailed and documentary evidence of commitment submitted with the proposal. The budget must identify and itemise direct costs associated with each line item. Expenditures should be budgeted inclusive of any Goods & Services Tax payable. Any direct cost charged to an SERC grant award must be reasonable and directly allocable to the supported activity. Detailed justifications for the resources required, showing what alternatives have been considered and rejected, providing a cost-benefit appraisal where appropriate should be provided
1187 days ago
 
• Finance is about the bottom line of business activities. • Every business is a process of acquiring and disposing assets: – Real assets (tangible and intangible). – Financial assets. • Two objectives of business: – Grow wealth. – Use wealth (assets) to best meet economic needs
1187 days ago
 
Starting with the seminal work of Lintner (1956), several studies have proposed various theories in explaining the issue of why companies pay dividends. While many earlier studies point out the taxpreference theory, more recent studies emphasize signaling and agency cost rationale of dividend payments. From the practitioners’ viewpoint, dividend policy1 of a firm has implications for investors, managers and lenders and other stakeholders. For investors, dividends – whether declared today or accumulated and provided at a later date - are not only a means of regular income2, but also an important input in valuation of a firm.
1187 days ago
 
Working Capital is considered as the lifeblood and nerve centre of any business (Khan and Jain) In the present day modern industrial world the term Working Capital refers to the short term funds required for financing the entire duration of the operating cycle of a business known as “Accounting Year”. It is a trading capital not retained in the business in a particular form for more than a year. This is used for carrying out the routine or regular business operations consisting of purchase of raw materials, payment of direct and indirect expenses, carrying out production, investment in stock, etc. In short it represents the fund by which the day-to-day business is carried on
1187 days ago
 
State legislatures are the public policymakers that establish set broad policy for the regulation of insurance by enacting legislation providing the regulatory framework under which insurance regulators operate. They establish laws which grant regulatory authority to regulators and oversee state insurance departments and approve regulatory budgets. State insurance departments employ 11,600 regulatory personnel (2010 figures). Increases in staff and enhanced automation have allowed regulators to substantially boost the quality and effectiveness of their financial oversight of insurers and expand consumer protection activities.
1187 days ago
 
• Have knowledge and understanding of: o Marketing, its philosophy and significance o The 4 P’s – Product, Price, Place and Promotion o Concept of Services Marketing o Emerging trends and challenges of global markets o Social and ethical issues in Marketing
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An Act to make provision about the regulation of financial services and markets; to provide for the transfer of certain statutory functions relating to building societies, friendly societies, industrial and provident societies and certain other mutual societies; and for connected purposes.
1187 days ago
 
The development of 'Banking' is evolutionary in nature. There is no single answer to the question of what is banking, because a bank performs a multitude of functions and services which cannot be comprehended into a single definition. For a common man, a bank means a storehouse of money, for a businessman it is an institution of finance and for a worker it may be a depository for his savings.
1187 days ago
 
The relationship between a banker and a customer depends on the activities; products or services provided by bank to its customers or availed by the customer. Thus the relationship between a banker and customer is the transactional relationship. Bank’s business depends much on the strong bondage with the customer. “Trust” plays an important role in building healthy relationship between a banker and customer
1187 days ago
 
It is easy to understand that over time the used and even unused property loses its value due to various reasons. Definition. The process of decline in the property value over time is called the depreciation. Assets can be very diverse, but their valuation methods are the same. Here are some concepts that will be used in solving the tasks of property depreciation. This section will explore the depreciation issues of the long-term assets (the property which may function more than one year). On the other hand, it will also analyze the long-term assets, which does not lose its physical appearance at the time of production or service and its value is not less than the specified minimum value.
1188 days ago
 
The present worth value (P) or (PW) is used to compare between alternatives Assumptions for using the present worth comparisons: 1. Cash flows are known (no risks taken) 2. Cash flows are in constant value dollars (no inflation) 3. Interest rate is known 4. Taxes are not included in calculations 5. Intangibles are not considered 6. Funds are considered to exist at all times
1188 days ago