Comparative Financial Statements: It is used in making inter-period and inter-firm comparisons. They highlight the trends in performance, efficiency and financial position of a firm.
Comparative income statement: It analyze the operational efficiency and profitability of the business
Comparative Balance sheet: Trend of some items, group of items in two or more balance sheets of the same business on different dates. Company will form various policies for progress.
The Financial slack is unused capacity for debt and is equivalent to the unutilized cash that a company has on hand. This extra money is available to help a company survive difficult times, such as decrease in sales, revenues or profits
Impact of Russia-Ukraine war on India’s International Trade
|
Month |
Growth rate of Exports in
2021 |
Growth rate of Imports in 2021 |
Growth rate of Exports in 2022 |
Growth rate of Imports in 2022 |
|
February |
-0.39 |
7.5 |
34.45 |
37.18 |
|
March |
64.06 |
55.38 |
26.43 |
29.02 |
|
April |
202.27 |
169.49 |
29.19 |
30.95 |
|
May |
67.82 |
69.88 |
20.96 |
62.99 |
|
June |
47.47 |
97.43 |
30.41 |
57.57 |
1. Public Issue: Securities are issued to all the people and anyone can subscribe to them. Public issue of equity shares can be categorized as follows:
i. Initial Public Offer (IPO): Where first public offer of shares is made by a company. An IPO can be in the following forms:
- Fresh issue of shares: Where shares are issued by the company to the public investors. In this kind of an issue, the funds of investors will go to the company to be used for the purpose for which the issue is made.
- Offer for sale: Where existing shareholders such as promoters or financial institutions or any other person offer their holding to the public. In this kind of an issue, the funds of the investors will go to such sellers of the shares and not to the company.
ii. Follow on Public Offer (FPO): It is made by an issuer/ company that has already made an IPO in the past and is making a fresh issue of securities to the public.
2. Preferential issue: In this issue, securities are issued to an identified set of investors like promoters, strategic investors, employees, etc..
3. Right issue: When the company gives its existing shareholders the right to subscribe to newly issued shares, in proportion to their existing shareholding.
4. Bonus issue: When the existing shareholders of a company are issued additional free shares, in proportion to their existing shareholding and without any additional cost.
Climate crisis is a term describing global
warming and climate change, and their impacts. The term has been used to
describe the threat of global warming to the planet, and to urge aggressive
climate change mitigation. We should think on how to protect us from the ills
of industrial farming, petrochemicals, genetically modified seed, and the
corporate greed around our food table.
The concept of buyback was introduced in the 1960s in the US and remained popular in the 1980s. Even today, buyback of shares in practiced frequently in the US and other countries. In India, share buyback was first introduced in 1998 by the Securities and Exchange Board of India (SEBI) under Section 77A of the Companies Act, 1956. The introduction of buyback around the world has put pressure on the Indian corporate sector to allow them to buyback shares so that they can also use their internal surplus cash. The Bombay Stock Exchange (BSE) defines buyback as: 'a caproate action in which a company buys back its shares from the existing shareholders usually at a price higher than market price' . There are numerous reasons for buyback like achieving capital structure, improving certain financial ratios, etc.
Process of developing financial statements and ratios which deal typically with future projections based upon a defined set of assumptions and logical relationship. In simple financial modeling refers Cash flow forecasting involving the preparation of large detailed spreadsheets for management decision making process
Techniques of Financial Modeling
1. Spreadsheet
2. Mathematical programming package
3. Simulation package
