Receivables
AccountingMoney owed to the company by customers for goods already delivered.
In plain terms
Growing much faster than revenue is one of the earliest and most reliable warning signs.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Assets
AccountingEverything a company owns or is owed — cash, receivables, inventory, fixed assets, goodwill and investments.
In plain terms
One half of an identity that always balances, because every rupee of asset was funded either by a lender or by an owner.
Drawing power
Fundamental analysisThe amount actually available under a working capital limit at a point in time, recomputed against stock and receivables after prescribed margins.
In plain terms
It is why a sanctioned limit contracts exactly when the business contracts. The ceiling stays where it was and the money that can be drawn against it falls with the inventory and the debtors.
Working capital change
AccountingThe movement in receivables, inventory and payables, adjusted against profit on the way to operating cash flow.
In plain terms
Where profit recorded but not collected disappears. Profit of ₹300 crore plus ₹120 crore of depreciation, less a ₹410 crore rise in receivables, leaves about ₹10 crore of operating cash.
Related party web
Fundamental analysisA structure in which sales, purchases or loans are routed in a circle through entities the promoter also controls.
In plain terms
It manufactures revenue that never becomes cash. Where it surfaces is the related-party note and large receivables from group companies that persist year after year.