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Analysis of Financial Statements
What is the core skill required for every bank lending decision?
Ability to read and interpret financial statements to assess borrower's net worth, repayment capacity, and business viability.
Name four key reasons banks analyse financial statements.
Net worth assessment, repayment capacity verification, activity viability check, and availability of unencumbered security.
What are the two mandatory financial statements for every business enterprise?
Balance Sheet (point-in-time snapshot) and Profit & Loss Account (period income and expenditure flow).
Under AS-3, when is a cash-flow statement mandatory?
For listed companies and entities with turnover exceeding ₹50 crore during the accounting period.
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