Gyaanleikh

Meaning- The statement informs the client about the utilisation of the available margin. It gives an idea of the free margin available in the account to take new positions without incurring a penalty. The daily margin statement is prepared in a definite format prescribed by the Securities and Exchange Board of India.  How to read it? The daily margin statement offers a comprehensive view of the margin status including the amount deposited towards margin, amount utilized, etc.  This is a password protected statement and you can access it by entering your PAN as the password. Further, every trade has a margin requirement. So, if you trade on multiple exchanges, then the portal will send you a combined daily margin statement. What is daily Margin Statement? A daily margin statement is a report that provides clients with information regarding their margins. It includes information on deposited margins, such as fund transfers and pledged collateral, as well as blocked margins for h...

The basic idea of LAP As the name says it all, loan against property is the loan you get from the bank against the mortgage of your property. This type of loan comes under the category of secured loan. The security in this case is the property of the borrower. Here, the property can include your home, your commercial property, or land. The amount of loan is decided based on the market value of your property. As the name implies, a loan against property (LAP) is exactly that! A loan given or disbursed against the mortgage of your property. This loan is given at a certain percentage of the property's market value, usually around 40% to 60%, which is what immediately differentiates it from a Home Loan. Difference between Home loan and LAP- HOME LOAN LAP When do you apply for it? When do you apply for it?  You can apply for a Home Loan when your new home is under construction or you are seeking aid in the process of purchasing of a new house You can apply for LAP when you wish to seek ...

Hypothecation occurs when an asset is pledged as collateral to secure a loan. The owner of the asset does not give up title, possession, or ownership rights, such as income generated by the asset. However, the lender can seize the asset if the terms of the agreement are not met. Hypothecation is different from a mortgage, lien, or assignment. Hypothecation in Mortgages Hypothecation occurs most commonly in mortgage lending. A mortgage is a type of loan that's secured by an underlying property. The borrower technically owns the house, but because the house is pledged as collateral, the mortgage lender has the right to seize the house if the borrower cannot meet the repayment terms of the loan agreement—which occurred during the foreclosure crisis. Auto loans are similarly secured by the underlying vehicle. Unsecured loans, on the other hand, do not work with hypothecation because there is no collateral to claim in the event of default. As hypothecation provides security to the lende...

Moratorium  Meaning- A moratorium is a temporary suspension of an activity or law until future consideration warrants lifting the suspension, such as if and when the issues that led to moratorium have been resolved. A moratorium may be imposed by a government, by regulators, or by a business. Moratoriums are often imposed in response to temporary financial hardships. For example, a business that has exceeded its budget might place a moratorium on new hiring until the start of its next fiscal year. In legal proceedings, a moratorium can be imposed on an activity such as a debt collection process during bankruptcy proceedings. But it has other meanings too- A Moratorium on loan is a specified period during which the borrower is not obligated to make EMI payments of their loans as mandated by the Reserve Bank of India. The moratorium period in loan postpones repayment and gives the borrower a grace period during which they can choose to not make EMI payments for a loan. Apart from the...

 What is the meaning of ticket size? Ticket size is the common slang for the amount of capital that a single venture capital firm invests in individual funding rounds. The ticket size varies from firm to firm, with institutional firms with prior experience and large reserves of capital available for deployment often writing the largest checks. Ticket size is commonly known as check size. Close to half of the funding in a round is given by the lead investors, with the remaining given by other participants. This meaning of ticket size is in terms of investment by an institution for equity.  Whereas, a ticket size is the amount of loan that will be given to individual borrower restricted by its capacity to repay or market trend. This is what I understood after going through a lot of financial statements and got a understanding. It may be wrong but I use it this way to be said as slang. But the meaning is not available on internet which astonish me.

Meaning of - Financial Forecasting- Financial forecasting is the process by which a company thinks about and prepares for the future. Forecasting involves determining the expectations of future results. Financial Modelling- On the other hand, financial modelling is the act of taking a forecast's assumptions and calculating the numbers using a company's financial statements. Financial forecasting and modelling can be used in budgeting, investment research, project financing, and raising capital. Detailed difference between Financial Modelling and Financial Forecasting: Financial Forecasting- When a company conducts its financial forecasts, it seeks to provide the means for the expression of its goals and priorities to ensure they are internally consistent. Forecasts can also help a company identify the assets or debt needed to achieve its goals and priorities. A common example of a financial forecast is forecasting a company's sales. Since most financial statement accounts a...

Q. What is reserves? A. The portion of profit kept aside for unforeseen obligations of a business. Q. What is Provision? A. A portion of money from the business set aside for meeting known liabilities or expenses. Q. What is CL in finance/accounting? A. Current liabilities are the obligations of the company which are expected to get paid within one year and include liabilities such as accounts payable, short term loans, Interest payable, Bank overdraft and the other such short term liabilities of the company.

 What is PIM?  PIM that is Preliminary Information Memorandum is a crucial document before starting any project, whereas I'm in Merchant banking I look towards this in that way. But in lay man work it can be any project.  In this blog I will share all the steps necessary for making a PIM and I hope you learn to organize things through this reading of blog, if not anything.  First thing you need to do is have a deep understanding and reading of all the document and information available. This will help you to organize the things when each and every point comes. The example in this blog will be of a NBFC analysis. 1. So the first thing we will do is write all the information that is general to know for basic understanding of the company or any other kind of information.  To give example, you can write when the company was established, any demerger or merger or reorganization, current fund raise or equity distribution or IPO.  Then this may also include there ...

 Credit Ratings and Meaning of every Parameters  Rating -Description   CRISIL AAA -(Highest Safety) Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.   CRISIL AA -(High Safety) Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.   CRISIL A -(Adequate Safety) Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.   CRISIL BBB -(Moderate Safety)         Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.   CRISIL BB -(Moderate Risk) Instruments with th...

 What is Rating Rationale? Meaning:  Rating Rationale means a brief of underlying factors to arrive credit rating decision, among others, including background of the issuer or issue, business modalities, key rating factors, sensitivity indicators, financial positions, obligations, etc. The detailed Credit Rating Report covers information on: Rating drivers Recent developments & scenarios Performance update Key credit factors Commentary on various factors concerning the company Business risk profile Financial risk profile It is is the basic or underlying reason or explanation because of which the rating has been arrived. A brief rational comprises of following: Company background( Incorporation, Promoters, Business) Business modal Key rating factors-(both Positive and Negative) Rating sensitivity pointers (Because of which rating may change in future) Brief financial snapshot with Ratios.