In this article we will discuss about the internal and sustainable growth rates of a firm. Internal Growth Rate (IGR): ICR is the maximum growth rate a firm can achieve without going for external financing. All the financing requirements are met internally from the internal accruals. IGR can be expressed as follows: Where, ROA = Return on assets i.e. (PAT/Total [...]
Here is a compilation of top five problems on funds flow analysis along with its relevant solutions. Problem 1: The bank balance of a business firm has increased during the last financial year by Rs.1,50,000. During the same period it issued shares of Rs.2,00,000 and redeemed debentures of Rs.1,50,000. It purchased fixed assets for Rs. 40,000 and charged depreciation of [...]
In this article we will discuss about the SEBI regulations and RBI guidelines as to infrastructure development funds. SEBI Regulations as to Infrastructure Development Funds (IDFs): In order to augment and accelerate capital funding in the form of long-term debt for Government infrastructure projects and provide a framework for setting up and operating Infrastructure Debt Funds (IDFs), the SEBI has [...]