When it comes to banking knowledge or the general awareness component of bank examinations, the basics of banking are crucial. Banking fundamentals are also vital for future banking and finance professionals. For its customer base, the banking business handles credit, currency, and several other sorts of financial transactions. Table of Content Key Abstract Banking Fundamentals:…
As you know, the review area is a non-monetary reserve created by the company to operate when the market value of other assets occurs above or below the value of the book or book value. Analysis is usually used to show the effect of the difference between the market value of an asset and the…
Auditors are required to express their views on the financial statements as a whole. This includes notes to the financial statements that form part of the account, providing additional information on balances and transactions and other relevant information. It is, therefore, important that at all stages of the audit and auditor’s judgment be properly considered…
The main purpose of a loan is to help people get out of financial trouble or finance fixed costs even if they do not have immediate cash available. Loans, such as financial products, are based on natural needs, which are often chosen to achieve certain goals. For example, home building/purchase/renovation loan, higher education loan, repayment…
The process of accessing the capital necessary and opting for its competition is known as financial planning. It is the process of establishing financial rules for an organization’s purchase, investment, and administration of funds. Financial planning is the practice of putting together a plan for your future, specifically around how you will manage your finances…
External Commercial Borrowings (ECB) is borrowings taken by an eligible entity in India for commercial purposes from any recognised entity outside India. Debt financing has long been a preferred source of funding for business due to intrinsic benefits such as security creation, minimum assured returns, and tax efficiency for both the lender and the borrower….
Foreign Direct Investment is the buying of shareholding in a firm by a corporation / investment based outside the nation’s boundaries for the expansion of their services overseas. Indian entities are not enough to meet the requirements. However, foreign direct investment (FDI) by the NRI (Non-Resident Indian) will help to grow the industrial sector and…
Consolidation is the process of including the financial statements of all subsidiaries into the parent company’s financial accounts. Companies with one or more subsidiaries are necessary to prepare Consolidated Financial Statements under Clause 3 of Section 129 of the Companies Act, 2013. Financial statements are formal financial performance records that demonstrate how a company did…
Meaning of Equity Shares A company limited by shares ‘equity shares’ mean share capital which is not preference share capital. This is the portion of the company’s money that is raised in exchange for a share of ownership in the company. Equity share capital is negatively defined by Section 43 of the Companies Act, 2013, being…
TransUnion CIBILTM, Equifax, Experian, and CRIF High Mark are the four credit information bureaus in India. The Reserve Bank of India’s Department of Banking Operations and Development has direct oversight of these credit information bureaus. According to the provisions of the 2005 Credit Information Companies (Regulations) Act (CICRA), all banks, financial institutions, and non-bank financial…