The goal of financial statement analysis is to equip the business with the knowledge it needs to effective decisions. It evaluates the past and projects a company’s future performance. It is also known as interpretation of financial statements. They are the means to present the firm’s financial situation to the users. Preparation of the financial statement is the responsibility of top
Open market operations are a method for influencing the money supply by purchasing or offering securities - generally government securities. Basically, if the Central Bank needs to increase the supply of money, it swings to the business sector and buys Treasury securities, (for). When it purchases these securities, it gives the venders money, and that expands the supply of money in the economy. Central banks influence the amount of cash in circulation by purchasing or offering government securities through the procedure known as open business sector operations (OMO). At the point when a central bank is hoping to build the amount of cash in circulation, it buys government securities from business banks and foundations.
ASSET LIABILITY MANAGEMENT IN BANKS BANK’S LIEN Banks need to maintain certain ratios and quantity of money with them in their day to day operations. Asset Liability management is a dynamic process of organizing, planning and controlling of assets and liabilities along with their yields, returns and maturity to maintain certain parameters such as liquidity and NII (Net Interest Income). ALM tries to maintain and sustain long term profits and the short term earnings along with any long term prospects of the bank. The parameters that make up the concept of ALM are: 1. Net Interest Income(NII) 2.
When these cheques are presented, the customer account becomes debit. b. Outward Bills for collection: All the cheques which were delivered by the bank to other banks come under outward clearing and their record is kept in outward clearing book. When these cheques are presented, customer account becomes credit. The cheques presented for clearing are being stamped with Bank Endorsement stamp, Clearing Stamp and the signature at the backside of cheque. 22.214.171.124.
Accounting cycle is the financial process starting with recording business transactions and leading up to the preparation of financial statements. This process demonstrates the purpose of financial accounting to create useful financial information in the form of general purpose financial statements. Beside that, the sole purpose of recording transactions and keeping track of expenses and revenues is turn this data into meaning financial information by presenting it in the form of a balance sheet, income statement, and cash flows. The accounting cycle is a set of steps that are repeated in the same order every period. The culmination of these steps is the preparation of financial statements.
Internal control is a process designed and affected by those charged with governance, management and other personnel to provide reasonable assurance about achievement of the entity’s objective with regards to reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable laws and regulations. Internal control is designed and implemented to address risks that threaten achievement of any of these objectives. Internal control system as described by Basu (2006), is the whole system of controls, financial or otherwise, established by the management in order to carry on the business of the enterprise in orderly and efficient manner, ensure adherence to management policies, safeguard assets and secure as far as possible the completeness and accuracy of records. According to COSO (2002), internal control comprises of the following components; the control environment, the entity’s risk assessment process, the information and communication system, control activities and
They are the records that document the complete financial transactions of a business. A ledger contains the account information needed to prepare financial statements, and includes accounts for assets, liabilities, owners’ equity, revenues and expenses. • Accounts Payable - This enters bills and pays out money to where it’s owed to creditors, such as suppliers or overheads. • Accounts Receivable - This enters money received from debtors, such as clients or customers. • Billing - Billing handles invoices to passengers for ticketing.
Working Capital Loans In view of the client's particular needs, the Corporate Bank offers various diverse working capital financing offices including Running Finance, Cash Finance, Export Refinance, Pre-shipment and Post- shipment and so on. Tailor- made arrangements are produced keeping in view the remarkable prerequisites of your business. Term Loans MCB offers Short to Medium Term Finance to meet capital use and fleeting working capital prerequisites of our clients. The advances are organized on the premise of hidden venture qualities and money streams of the business. Exchange Finance Services Under Corporate Banking MCB offers exchange fund benefits that incorporate a whole scope of import and fare exercises including issuing Letters of Credit (L/Cs), acquiring fare reports, giving sureties and other help administrations.
’Commercial’ word is used to differentiate from ‘investment bank’, which is a kind of financial service body, which assists businesses raise capital from other institutions in the form of bonds or stock, instead of simply giving money directly for the business. The main functions of the banks are: • Securing the cash kept there and enabling withdrawal whenever required. • Giving cheque books for all kinds of bills as well as payments to be delivered through post. • Gives loans like, personal, commercial, and mortgage for purchasing houses, property or for business. • Gives credit cards and deals with the transactions and billings through credit card.
IMPORTANCE OF CAPITAL MARKET The capital Market sector part serves a to a great degree valuable need by pooling the capital resources of the country and making them open to the venturesome financial specialists, all around created capital markets expand assets by drawing in and loaning stores on the worldwide scale. A very much created capital Market sector segment can deal with this issue of lack of benefits. For a composed capital Market sector area can activate and pool together even the little and scattered store finances and expand the openness of investible resources. While the quick advancement of capital markets, the improvement of joint stock Market has in its turn enabled the change of capital markets. A created capital Market sector