In business the current assets includes cash. Cash is necessary for going concern. It should be kept sufficiently for meeting the obligation. In case shortage of cash occurs then it will slow down the operation of the business & in case any excess of it then it is unproductive. In assets, cash is more unproductive i.e. it doesn’t contribute anything to business, while fixed assets like plant, machinery etc. & in current assets such as inventory will add to business earning capacity. The money can
means the difference between current assets and current liabilities Pandey (2004). According to Rose et al. (2000) a company’s working capital policy refers to the determination of an appropriate level for each of the component of working capital viz. cash, accounts receivable, inventories etc. And they defined working capital management as setting working capital policy and implementing it on day today basis. A company’s working capital affects its liquidity as well as profitability. Hence, it should
or company. When the situation arises to consider the financial position of a company; financial statements would be required to be analyzed in various detailed reports. In the case of Anthony’s Orchard, the provided financial statement will assist by assessing the financial situation of the Antony’s Orchard. In this case and most commonly, the balance sheet of the company is considered as it grants a clear indication of the company’s
applied in appraisals of all the projects irrespective of the industry. However, 10% sensitivity factor may be applied in highly volatile industries by assessing the expected volatility in sale price/ cost price of major raw materials in future on case to case basis. Techno-Economic Viability
has asked the firm’s financial analyst to prepare a report to brief the firm’s executives on this topic. In this case study, the concepts of enterprise risk management, the various components of an ERM framework, the reasons risk manage might increase the corporation’s value, the description of risk events, and how companies can reduce these risks are discussed. Also, the case study contains illustr4ations on how the use of forward contracts and future contracts can reduce exchange
insurance company, we conducted a feasibility study to show the viability of the project. A financial feasibility study states how much start-up capital is needed, from where the capital is going to be raised, returns on investments, and other financial considerations. It shows how much cash is needed, the sources of cash, and how it will be spent. This study answers the questions: will the idea work? And should you proceed with it? A feasibility study has six components: 1) Description of the Business:
This part of the currency will be extinguished since it would notbe replaced in any manner. The government might choose to replace only a part of the currency which was in circulation as cash. In the other words, the rest would be available only as electronic money. This could be a mechanismused to force a transition to cashless medium of exchange. The empirical extent of these two components will be unraveled only over the next six months
working capital could be optimized and cash flows could be improved by reducing the time frame of the physical flow from receipt of raw material to shipment of Finished goods, i.e. inventory management, and by improving the terms on which firm sells goods as well as receipt of cash. However, the further suggested that working capital investment could be optimized also (1) by improving the terms on which firms bought goods i.e. creditors and payment of cash, and (2) by eliminating the administrative
there is 7 per cent chance that it will incur the loss of INR 20,000. Another example is of any typical investment portfolio of a firm or an individual. If INR 10000 is the determined measure of VaR, at the rate of 38 per cent confidence level over a holding period of 29 days and theirs is no investment or sale till the 29th day, then there’s a 38 per cent chance that the portfolio holder will lose out INR 10000. VaR is approximation of the likely utmost loss. Actual losses may be above or below the estimated
Mark-to-market accounting is a key assumption made in the model described above which facilitates contagion through common portfolio holdings. In recent years there has been a considerable debate on the advantages and disadvantages of mark-to-market or fair-value accounting (FVA). Proponents argue that fair values for assets or liabilities reflect current market conditions and hence provide