1 Insolvency is the inability of a debtor to pay their debt.[1] Cash flow insolvency involves a lack of liquidity to pay debts as they fall due. Balance sheet insolvency involves having negative net assets—where liabilities exceed assets. Insolvency is not a synonym for bankruptcy‚ which is a determination of insolvency made by a court of law with resulting legal orders intended to resolve the insolvency. A business may be cash-flow insolvent but balance-sheet solvent if it holds illiquid assets
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[pic] [pic] [pic] CONTENTS | S.No. Title Page No. | ACKNOWLDGEMENTS 3 List of Tables 4 Chapter 1. Introduction 5 1.1 Theoretical background
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which has to be observed by the Debtor/Obligor) which the former may demand from him Juridical Necessity – in case of non-compliance the courts may call upon to enforce its fulfillment or‚ the economic value it represents. Damages – represents the SUM OF MONEY given as a compensation for the injury or harm suffered by the creditor/oblige for the violation of his rights. Creditor or Obligee – he who has the RIGHT TO THE PERFORMANCE of the Obligation. Debtor or Obligor – he who has the Obligation
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A SUMMER INTERNSHIP REPORT ON EFFECTIVNESS OF SARFAESI ACT AND DRT IN LOAN RECOVERY PROCESS UNDERTAKEN AS A PART OF MANAGEMENT OF BUSINESS FINANCE SUBMITTED BY: RAHUL NIGAM INDIAN INSTITUTE OF FINANCE UNDER THE SUPERVISION OF Mr. NAVIN NAMBIAR ASST. GENERAL MANAGER DEPARTMENT OF BANKING SUPERVISION RBI‚ NEW DELHI DECLARATION I hereby declare that this report on “EFFECTIVENESS OF SARFAESI ACT AND DRT IN LOAN RECOVERY” has been written and prepared by me during the academic
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CHAPTER-1 INTRODUCTION BACKGROUND OF STUDY: Whatever may be the organization‚ working capital plays an important role‚ as the company needs capital for its day to day expenditure. Thousands of companies fail each year due to poor working capital management practices. Entrepreneurs often don ’t account for short term disruptions to cash flow and are forced to close their operations. In simple term‚ working capital is an excess of current assets over the current liabilities. Good working capital
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In ‘000) Dr. Cr. Purchases 21‚750 Discount allowed 1‚300 Wages 6‚500 Sales 30‚000 Salaries 2‚000 Travelling Expenses 400 Commission 425 Carriage inwards 275 Administration expenses 105 Printing exp. 600 Interest 250 Building 5‚000 Furniture 200 Debtors 4‚250 Capital 13‚000 Creditors 2‚100 Cash 2‚045 45‚100 45‚100 Stock on 31-03-2004 was Rs‚ 60‚00‚000. (a) Discuss the WDV and SLM methods of depreciation. Also mention the 07 major provisions of the Income Tax Act regarding depreciation. (b) “As per
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lower rates redistribute income from creditors to debtors‚ who will presumably spend the windfall. Today’s critics argue that this reasoning no longer applies. Business and households can’t or don’t want to borrow‚ while the retired and corporate pension sponsors must slash spending to cope with lost interest income. Are the critics right? Start with redistributive effects. These depend on who are the creditors and who are the debtors. For a net debtor nation like America‚ lower rates raise national
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expenses during the operating cycle. The term "working" here implies continuity of production and distribution of want removing goods and services required by the society. Working capital is necessary to finance current assets which include inventories‚ debtors‚ marketable securities‚ bank‚ cash‚ short term loans and advances‚ payment of advance tax and so on. Fundamentally‚ there are two concepts of working capital and they are (i) Gross Working Capital and (ii) Net Working Capital. Gross Working Capital
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Contents page Introduction……………………….. Page 3 Ratio analysis…………………….. Page 4‚5‚6‚7‚8‚9 Conclusion/Recommendation…...Page 10 References……………………….. Page 11‚12 Appendix…………………………..Page 13 Introduction The role given for this report is to show a financial analyst acting on behalf of a large institutional investor advising them on their future investment in Sainsbury plc. This report will explore calculations of the financial ratios‚ such as gross margin which measures the performance
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CHAPTER 4 Final Accounts Meaning Preparation of final account is the last stage of the accounting cycle. The basic objective of every concern maintaining the book of accounts is to find out the profit or loss in their business at the end of the year. Every businessman wishes to ascertain the financial position of his business firm as a whole during the particular period. In order to achieve the objectives for the firm‚ it is essential to prepare final accounts which include Manufacturing and
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