The world’s biggest lockdown imposed to contain the spread of COVID-19 has severely impacted domestic economic activities as it brought nearly 70% of economic activity, investment, exports, and discretionary consumption to a standstill.

And will eventually drag down the GDP growth of the country to a negative single-digit band for FY21E.

So, to improve the prevailing turbulent economic environment and to provide a boost to the ailing economy the current government announced the Atma Nirbhar Bharat Abhiyan, a financial package of Rs 20 lakh crore equaling 10% of the national GDP.

Delisting of shares is a process in which the stocks listed on the bourses i.e. on stock exchanges are delisted from trading.

It means the permanent removal of shares from the stock exchanges and hence they are unavailable for trading.

Delisting is either voluntary or involuntary in nature.

Voluntary refers to the company’s discretion in delisting its stock i.e. the company decides to delist its shares from the bourses.

Involuntary delisting refers to various wrongdoings like non-compliance or violating various rules which will force the company to delist its stock.

In the case of voluntary delisting, the delisting shall be considered successful only when the shareholding of the acquirer together with the shares tendered by public shareholders reaches 90% of the total share capital of the company.

Financial ratios are widely used to analyze a bank’s performance, specifically to gauge and benchmark the bank’s level of solvency and liquidity.

These financial ratios should be used before investing in the banks.

Liquidity and Solvency play an imperative role in the smooth survival of the banking sector.

These are some of the fundamental factors in the maintenance of the bank’s financial viability. This is a vital parameter on which a bank is analyzed.

Liquidity is the ability of a bank to increase the assets and meet obligations as and when they come due, without incurring any losses.

Solvency of the bank refers to the ability of the bank to meet long-term obligations as and when they arise.

In the most lucid way, solvency measures the long-term position of the bank, and liquidity measures the short-term position of the bank.

Both of these parameters are important for the banking sector to function smoothly.

Due to the highly volatile nature of the Stock Markets, the long-term theory is losing some ground as Investors are now becoming traders.

Thus the quarterly results become an important metric to look out for not only for short-term traders but also for long-term Investors.

We know that according to the Indian corporate regulations, the listed Indian companies have to file their quarterly results to the exchanges on a regular basis.

How do we as a layman interpret the quarterly results?

Corporate has to be dynamic in nature and the quarterly results are the mirror of their dynamism.

The quarterly results are the best way to judge the ongoing performance of the company and to get the latest updates on the company that we are invested in or want to invest.

Nowadays a host of stuff is published by the companies for the investors to get a better understanding of the performance and the future outlook.

There are numerous platforms and analysts giving their viewpoints on the same.

So, it is imperative for us to know which critical points we should analyse in order to get a better understanding of the company for trading or investing.

Let's discuss How to analyse Quarterly Results?

What is Accounts Receivable?

Companies while doing business mostly need to do it on credit, where some businesses demand more credit and some get away with very few days of credit. Let’s understand what this credit is.

Companies generally sell goods and services to their customers on credit.

That is, they deliver the goods and services immediately, send an invoice, and then get paid later.

They keep track of all the money their customers owe them using an accounting entry in their books called accounts receivable.

It is also known as trade receivable which is the accounting term used to refer to the money that the Company should receive from its customers for the goods or services it provided on credit.

Stock markets are very volatile but as we know that they are the ones who have been providing us with consistent returns beating many kinds of alternate Investment tools like FD, EPF, PPF, etc.

Whenever we speak about stock market Investment or read about the same, one question that plagues all minds is what the right price should be for investment and how one can quantify stock price calculation.

Whether it will give good returns or not. How much can it grow etc? But one more thing which is very important to know about a company is its Qualitative criteria.

A fatal mistake is when one neither understands the Qualitative nor the Quantitative criteria of the company.

No one wants to get stuck in the wrong Investment. So let us understand the difference between the wrong and the right investment.

This is a very apt kind of Investment philosophy where you need to check whether or not that stock can fulfill your return expectations.

What Are Accounts Payable?

Company when purchasing goods, it is not always in monetary terms, purchases are also made in credit.

What this means is, that the company receives goods and services immediately from the seller and then receives an invoice from the seller which asks to pay money later to them.

This is the liability for the company and comes under the head ‘CURRENT LIABILITY’ as Accounts Payable.

It is a liability, due to a particular supplier when the purchase of goods and services happens without paying cash immediately.

What is Inventory Management?

Companies in order to do business purchase the raw material from the supplier then convert them to new products and then sell them to the customer.

The company needs to keep a track record of the purchases, manufacturing of the goods and sale of the goods.

They even need to keep a track record for the time period the raw materials and the finished goods are kept in the godown of the company.

In accounting terms, these goods that the company handles including the raw material are termed Inventory.

And, keeping a track record for the flow of goods from the purchase of the raw material to the sale of finished goods is known as Inventory Management.

Let's discuss Inventory Management – Example, Importance & Turnover Period

Whenever one wants to start their Investment destination then knowing the correct value of their stock is prima facie. So understanding what Net Worth is the first step in taking any investment decision.

Every Company has its own personal assets like office premises, factory machinery, etc., and also some investments. Apart from assets they even have certain long-term debts like loans that need to be paid back.

Therefore the difference between the Assets that the company owns and the Debt that it needs to pay is known as the Net Worth of the company.

It represents the total value of a company.

In order to carry on the business, the company has to plan for future needs and also meet its day-to-day expenses, such as payrolls or paying for raw materials, tools, and supplies. To meet these expenses the company requires cash.

Therefore, the funds that are required by a company to meet its short-term expenses (within 1 year) are known as ‘Working Capital’.

Working Capital meaning is the cash required to meet the company’s short-term expenses.