Author: chowdhury.munna

What Is Working Capital “Working capital is calculated by subtracting current liabilities from current assets” as listed on the company’s balance sheet. Current assets include cash, accounts receivable and inventory. Current liabilities include accounts payable, taxes, wages and interest owed. Working capital is a financial metric calculated as the difference between current assets and current liabilities. Positive working capital means the company can pay its bills and invest to spur business growth. Working capital management focuses on ensuring the company can meet day-to-day operating expenses while using its financial resources in the most productive and efficient way. Importance of working capital…

Credit system for import/export: Import Business: The import business is broadly divided into the following three categories:-                               i) Import of Commercial goods.                               ii) Import of raw materials for production purpose.                                iii) Import of capital/machinery. The importer’s avail of investment facilities against all kinds of imports. But in case of imports under category (i) and (ii), investments are made under the Shariah approved Bai-Murabaha and Mai-Muajjal modes and in case of import under category (iii), investment is made under the Shariah-compliant mode of Hire Purchase under Shirkatul Melk (HPSM). Investment facilities are also provided for import business through Bai-Salam, Musharaka and Mudaraba modes.…

What is Project appraisal? Loan proposal considering factor is not same thing. Firstly we will know What is Project appraisal. Project appraisal is the process of assessing, in a structured way, the case for proceeding with a project or proposal, or the project’s viability. It often involves comparing various options, using economic appraisal or some other decision analysis technique. The entire project should be objectively appraised for the same feasibility study should be taken in its principal dimensions, technical, economic, financial, social and so far to establish the justification of the project or project appraisal is the process of judging…

Different types of loan security, Security is something of value given to a lender by a borrower to support his or her intention to repay. In the case of a mortgage, the security is the property that the loan is being used to purchase. It may include tangible, intangible assets, or even a personal guarantee. Different types of loan security for Bank Credit Personal securities: When a bank lends to a borrower on the security of a third party. Then it is called lending on personal security. In the case of personal security, one has to look at the financial status,…

What are bad loan reasons Perfect borrower selection loan cannot be turned into bad, A loan disbursed by a bank can be turned into a bad loan in course of time due to various reasons. A loan may be bad because of the selection of wrong borrowers. It may The selection of wrong borrowers is the main reason for which a loan goes bad. This article focuses on the process of selection of wrong borrowers by banks which results to a large number of bad loans in the banking sector of Bangladesh. What are bad loan reasons The lender and…

Fund flow statement The flow of funds refers to the transfer of economic value. The value from one asset to another, from one equity to another, from one asset to other assets. The term ‘flow’ indicates change, and hence, a fund flow refers to a change in funds or a change in working capital. Fund flow statement Importance 1. It shows the various sources and uses or applications of funds between the two accounting periods.2. Fund flow statements assist in determining the shift in amount of current assets investment and current liabilities.3. It works as a crucial instrument for allocation of resources of a…

Credit or investment card document for local, international and dual currencies introduced by several banks under the platform of cash credit concept. The products are mainly three types: (i) Gold & Classic (ii) International – Gold & Classic (RQ, RFCD & TQ) (iii) Dual Currency. Total Transaction in each month cycle will be treated as an individual deal and mark-up profit to be shown in card account against each month fresh deal amount @ 16% for one year. Credit or investment card document to be submitted to the branch alongwith the application of Local Card: (i) In…

House building Loan facility for employees is a Scheme approved by the Board of Directors of all banks. House Building Investment/Loan shall be provided to the employees of the bank up to the limit fixed for each grade and subject to fulfillment of other criteria to buy plot (40% of the ceiling for land & rest amount for construction), built in house, construction of building, renovation of existing building and to buy Flat/Apartment (mainly Investment. House Building Loan facility eligibility and main features to avail the Employees House Building Investment/Loan are as follows: a) The facility under the scheme will be…

What are mortgage documents? A mortgage is a mode of creation of charges on the immovable assets for securing the investment facility. According to Section 58 (a) of the Transfer of Property Act-1882, “ a mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payments of money advanced by way of investment/loan, an existing or future debt or the performance of an engagement which may give rise to a pecuniary (financial) liability. The transferor is called a mortgagor, the transferee a mortgagee. The principal money and the interest of which payment is…

What is Bank Guarantee?A Contract of Guarantee is a contract to perform the promise or discharge of liability of a third person in case of his default. The person who gives the Guarantee is called the ‘surety’, the person in respect of whose default the guarantee is given is called the ‘principal debtor’ and the person to whom the guarantee is given is called the ‘creditor’. The contract of guarantee may be either written or oral”. Purposes: Contracts of Guarantee are usually entered into (a) to secure the performances of something (b) to secure the honesty & fidelity of someone…