Lecture 17: What is Current ratio and ways to improve the current ratio, Practical understanding

[@soninisha]

Aapse bahut kuch seekh Rahi hun sir,bank mein itna detail mein koi nahi samjhata.. Mostly logon ko itna pata bhi nahi hota bank mein.. Thank you sir

[@AnkushJain]

Thank you 👍

[@rohitbhatia1537]

Sir, You rightly said without logical knowledge, employee will be like only who will be waiting for salary only, we can't grow. You are having a deep understanding of each and every concept and your way of imparting knowledge is superb. You are doing a great job for society. Thanks and Regards

[@AnkushJain]

Thank you Rohit 👍

[@nitinsoni390]

No words will suffice to thank you enough. The way you explain is no where available on the internet. Your lectures are certainly going to be our long terms funds which we'll utilise to create long term assets that will yield benefits to us in future. Thank you sir 🙏

[@AnkushJain]

Thank you nitin 👍

[@bhikhaji8725]

Lakho Logo ki Dua Milegi Sir Apko

[@PremanshuVerma]

How beautifully and logically you explained the whole chapter was enormous!! Thanks a ton!! Regards Premanshu Verma Working Capital

[@AnkushJain]

Thank you

[@krishankamra4249]

Sir, you are doing such a nobal job for professionals as well for students going to persue their career having non commerce background . Thanks alot.

[@AnkushJain]

Thank you

[@roshnijoshi3323]

Sir i am from uco bank. Ratio analysis ab tak sirf exams ke liye memorise kar ke kare hai aur confuse hoti rahi uske actual logic aur practical implementation main par samaj nahi aaya in depth uska practical implementation par abhi lagta hai ke mujhe mere sawal ke jawab mil rahe hai...this is great knowledge.. Thank you so much sir

[@AnkushJain]

Your welcome 👍

[@krishnapandey3088]

I have recently appeared in ca final group 2 examination in nov 2023, if will get qualified in coming January looking to shape my carrier in banking industry as a credit manager. These videos are knowledgeable booster for me to enhance my knowledge as fresher credit manager.. A lot of thanks for bringing such conceptual and logical videos.. Looking forward to complete the series as earliest as possible.. Your shorts videos are also very interesting to watch.. Keep going sir, U are doing a great work.❤❤

[@AnkushJain]

Thank you

[@muskanbansal8900]

I visit this channel for the first time. It's very knowledgeable. Thank you so much for providing such knowledgeable insights. These are those core concepts which no one explained in this way!!! Your videos are great!!!!!!! This is practical knowledge which can broke the gap between our education system and real world work. Thank you so much sir!!!!!!!!!!!

[@AnkushJain]

Thank you Muskan 😊

[@karuneshkvaiswar612]

Very very thank uPlease make more videos like this

[@AnkushJain]

Your welcome

[@karuneshkvaiswar612]

Please make more videos like thisVery very thank u

[@AnkushJain]

Your welcome

[@amangarg4331]

Getting something new each day sir.. please keep up the good work..I am sure this will definitely help me in product change and cracking the interview easily...Thank you so much

[@AnkushJain]

All the best aman

[@amangarg4331]

@@AnkushJain Thank you Sir

[@AnkushJain]

👍

[@caaman93]

Great 👏👏 Best videos available on internet to understand credit analysis

[@AnkushJain]

Thank you Aman 👍

[@sanujpadhi768]

I m doing credit assessment in working capital and in office nobody explain me in detail the way you have explained, Thank you sir...

[@sanujpadhi768]

Thanks God you have given me opportunity to learn from such a great professional!!

[@AnkushJain]

Your welcome

[@AnkushJain]

Thank you

[@technicaltrade499]

Sahi kah rahe hai sir. This channel very useful

[@AnkushJain]

Thank you

[@learningmortgage]

You are great sir , I am becoming fan of you.. Really highly Appreciated. keep us educate.

[@AnkushJain]

Thank you

[@bhikhaji8725]

Thanks a lot sir for Valuable Knowledge Sharing to us.

[@AnkushJain]

Your welcome

[@vimleshkumar-br2jn]

Great sir, now clear why the eqity infusion is stipulated in sanction terms..Thank u so much

[@AnkushJain]

If existing equity is low then bank ask promoter to contribute more.

[@shankygupta2418]

@@AnkushJain what of customer withdraw infused capital after getting the loan

[@AnkushJain]

@@shankygupta2418 we take it before giving loan. Customers can't be trusted that much. After giving loan, customer may refuse to bring the capital but bank will get at risk due to loan being given to client

[@ganeshabhaktichannelpriya995]

True sir

[@AnkushJain]

Thank you

[@harishpatil992]

Explain in very simple language, thanks

[@AnkushJain]

👍

[@vickyparmar3371]

Excellent Lecture!! I want to ask you how did u gain this much in depth knowledge in this field.. is it just experience or have u done any qualifications in banking other than CA . I am asking because I am also CA finalist and have interest in banking industry.

[@AnkushJain]

No such course, just expecting and curiosity that led me to this

[@anujchoudhary310]

Sir jee Thankyou for Providing such a great lecture.

[@AnkushJain]

Your welcome

[@sriram2sri]

Thanks for Vedio , request to share live case study or any proposal it will help ; conceptual Vedio was excellent looking live proposal

[@AnkushJain]

Yeah. Live case study I will do for sure. But it will take time. Let me clear all the concepts first

[@rupalimalviya8391]

Ur right no shares these details in office. Not even credit managers with their colleagues.

[@AnkushJain]

I understand. That's why made this platform

[@VIKASHKUMAR-ch4fn]

Great work Sir. Kindly also make some video on other financial ratio like DSCR, leverage, debtors turnover days and so on.

[@AnkushJain]

Yes they are coming soon by the end of this month

[@dineshchoudharydc]

Sir Dscr pr bna do

[@AnkushJain]

Will be done for sure.

[@satishkumar-ee2mf]

Thank you sir for this extremely informative video.

[@AnkushJain]

Your welcome 👍

[@harshverdhansaxena9166]

sir mza aa gya kasam se! 🙏 mene punjab national bank me internship ki hai.. Sir wha ke sir and college ke sir bhi itne aache se nhi btate the..

[@AnkushJain]

Thank you Harsh

[@PVA747]

Through this video I practically understand why Client ask for Capital infusion Certificate from CA

[@AnkushJain]

Thank you

[@janakbhimani6071]

thank u sir for detail explanation about current ratio

[@AnkushJain]

Your welcome

[@swapnilsrivastava9760]

Commendable work sir

[@AnkushJain]

Thank you

[@ashishijardar1334]

Superb and knowledge

[@AnkushJain]

Thank you

[@KiranPatil-wj1wi]

Nice Video Sir Is there any video on how to analyze large corporate ?

[@AnkushJain]

Thank you. No particular video as such

[@rahulsrivastava5988]

Thank you sir ...Really appreciated

[@AnkushJain]

👍

[@gopalkrishna8977]

sir in some org..loan emis payable in next 12 months they include in current liabilities and some people they dont include while calculating ratio...pls cover this one as well.

[@AnkushJain]

Ok

[@TheAnkitraoyadav]

Sir i have one question that in last you have asked to put 100/- in long term investment. But if customer will invest 100/- in short term asset then his current ratio will be 1:1 Please explain where I'm making mistake

[@AnkushJain]

Jo paise uthaya hai vo long term liability hai aur Paisa utha k jaha invest Kia vo current asset hai.. so current asset to increase ho gye but current liabilities same Rahi kyuki long term liability increase Hui hai

[@gurpreetSingh-pz7bo]

Thanks sir , Yes u r ryt sir, no one can explain or teach like u doing sir, --- Sir , after finishing all this series pls Cover topics - ITR analysis, Computaion, Cibil analysis, ... Make video on

[@AnkushJain]

Thanks. Will look into it

[@hardikchawla8599]

Sir please clear the following doubt - Current Ratio of a client's business is less than 1. If we ask the client today to infuse more capital and invest the same in current assets so that current ratio becomes 1:1, which will be reflected in the balance sheet of 31/03/2023, then how to appraise that loan application with present books of accounts in which current ratio is less than 1.

[@AnkushJain]

You ask customer to infuse capital prior to disb. Of loan. That way current ratio will actually become equal to or greater than 1 as on the date of disb. Of loan itself. Therefore concern of balance sheet date does not arise

[@hardikchawla8599]

@@AnkushJain Thank you sir.

[@AnkushJain]

👍

[@nikunjgoyal7054]

Excellent video

[@AnkushJain]

Thank you Nikunj.

[@rahulkhandelwal989]

Thanks for the video👍

[@AnkushJain]

Your welcome

[@rahulwagh6070]

Superb!!!

[@AnkushJain]

Thank you

[@vipindhingra8562]

Great video ❤️❤️

[@AnkushJain]

Thank you

[@ravibhati1508]

Thank you sir.

[@AnkushJain]

Your welcome

[@akshaysharma4481]

Thank you so much Sir 😊

[@AnkushJain]

Your welcome 👍

[@kumarparimal9688]

Will complete it today

[@AnkushJain]

👍

[@manishact]

Thank you paaji

[@AnkushJain]

Your welcome

[@ravinaahuja922]

Thank y so much

[@AnkushJain]

Your welcome

[@vivekm7971]

Ankush - Can A HL credit manager get opportunity to do Credit assessment of WCF

[@AnkushJain]

You mean by changing bank or department in same bank?

[@sachinchoudhary92]

Thank you sir... :)

[@AnkushJain]

👍

[@vishalotwani5116]

Sir, My interview is scheduled on 12th July for MSME segment... Pls guide

[@AnkushJain]

I have made a video on interview for credit managers. Pl watch it

[@anirban28]

outstanding sir......

[@AnkushJain]

Thank you

[@tusharpawar3472]

Sir I have 1 doubt in current ratio - If current ratio is less than 1 then how can customer increase his non current liability.. Balance sheet to already finalize h or agar usko paisa long term bank finance se Lana he to sales wala bolega ki tum hi secured loan de do taki uska non current liability badh jayegi ... Please guide

[@AnkushJain]

Yes you can give WCTL but why will give if his own contribution is too low. We will ask him to put his contribution

[@amitagarwal7510]

Sir, Any lecture on Ratios analysis to know fincual health of company

[@AnkushJain]

There is whole playlist on that. Will be useful for companies as well. Pl refer below link kzbin.info/aero/PLjlclsu02a_z210w1g5SBcZLMGOK4QaQm

[@RohitSharma-bw5cx]

Sir please explain the process of capital infusion in a sole proprietorship

[@AnkushJain]

There is no as such process. Proprietor has to transfer funds from his personal saving account to the account of the proprietorship firm

[@RohitSharma-bw5cx]

@@AnkushJain in case of a partnership/ company how can a banker make sure that fresh capital has been infused. In a balance sheet it is just a figure ?

[@AnkushJain]

There is no way to figure out. You have to trust the figures. Just cross check that the individual in their individual cibil don't have open ended loans which could carry a risk that these loans may be infused as capital in business

[@RohitSharma-bw5cx]

@@AnkushJain thanks sir

[@AnkushJain]

👍👍

[@creativecub9603]

sir what if current ratio is high like 3 or 4. Is this means that firm or entity does not need any working capital? or it can be refer for some other senarios?

[@AnkushJain]

No, such high current ratio is a kind of negative situation as firm has invested way too much long term funds in business which should have been used for further capex and overall growth.. it also signifies heavy funds stuck in current assets which are moving too slowly

[@creativecub9603]

@@AnkushJain thanks sir... it is helpful... i was asked same question in one interview.

[@AnkushJain]

Ok

[@rajanshah2507]

sir, If company having current ratio more than 1 and not utilizing their CC limit sanctioned (having enough DP), so can it be used for buying fixed assets rather to take new term loan?

[@AnkushJain]

No even then it should not be allowed since it will deplete the current ratio in projections

[@mohitchandrajoshi4454]

Dear sir, Will diversion of fund affect current ratio of firm

[@AnkushJain]

Yes as it will reduce capital in business

[@mohitchandrajoshi4454]

But from which component will we deduct diversion amount in current asset and liability

[@AnkushJain]

It will not form part of your current assets thus you will reduce current assets and deduct it from capital

[@amanbhardwaj1000]

Sir, do we include existing working capital in current liability while calculating current ratio?

[@AnkushJain]

Yes

[@amanbhardwaj1000]

@@AnkushJain thank you so much sir

[@AnkushJain]

Your welcome 😊👍

[@nareshz999]

standard ratios max & min. are set by RBI?

[@AnkushJain]

No, market practice actually

[@nareshz999]

tq

[@AnkushJain]

👍👍

[@AJ-ll9kz]

What is diff betn gearing and leverage ratio

[@AnkushJain]

Check this video kzbin.info/www/bejne/nZ6vnIyOhZekobM

[@chetanagarwal9898]

Thank You Sir!

[@AnkushJain]

👍

[@chetanagarwal9898]

@@AnkushJain Sir, can you please share your email ID?

[@AnkushJain]

You can connect with me on LinkedIn

[@RameshKumar-ou3oy]

16.54 ke entry adjust karni Balance sheet main

[@AnkushJain]

Matlab, samjha nahi main

[@RameshKumar-ou3oy]

@@AnkushJain video 16.54 100 add kiye woh adjust kaise haiga

[@AnkushJain]

Let me check once I get free

[@RameshKumar-ou3oy]

@@AnkushJain Sir time nikal lo Maine agey ka lecture bhi complete karna hai

[@AnkushJain]

100 rupees Jo introduce hoga vo long term funds mein aayega and balance sheet ki asset side mein us amount se cash increase ho jayega jisse current assets increase honge

[@nikitasharma5110]

Sir but ye short term investment me kaise hoga short term investment to 900 hi hai

[@AnkushJain]

Main samjha nahi..

[@nikitasharma5110]

@@AnkushJain sir jaise ap ne btaya agar 1000 current liabilities hai or 900 current assets or hme apni current ratio maintain krne ke liye directors ya promoters ki capital chahiye to vo short term hogi capita ya kaise q ki capital to hmara long term Liability me hoga na

[@nikitasharma5110]

@@AnkushJain and sir one more confusion agar capital kaha denge to uska current assets or kaise impact padega q ki isse to hmari liability side hi badhegi.. sir please explain i m in very confusion

[@AnkushJain]

Jab director se capital ka Paisa aayega tb liability side pe capital bd jayegi jiska matlab hai k current liabilities utni hi rahegi. Plus jab directors business mein capital dalege to company ka cash balance bd jayega and cash to short term ya current asset hai. So current liabilities same hain and current assets bd gyi hai.. iska matlab current ratio improve ho jayegi

[@nikitasharma5110]

@@AnkushJain thanku so much sir also making videos on pari passu charges

[@Infojoshi]

Sir, please suggest a video for a sales guy to understand the case basics so he don’t waste his bandwidth or you can say underwriting basics. Already uploaded h toh plz link de do Sir.

[@AnkushJain]

Basics k liye lecture 1 se start krdo

[@karuneshkvaiswar612]

Please make more videos like thisVery very thank u

[@AnkushJain]

Your welcome