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IRR: Internal rate of return is the rate at which the sum total of discounted cash inflows equals the discounted cash out flow.

Treasury management: It means it is defined as the efficient management of liquidity and financial risk in business.

Concentration banking: It means identify locations or places where customers are placed and open a local bank a/c in each of these locations and open local collection canter.

Marketable securities: Surplus cash can be invested in short term instruments in order to earn interest.

Ageing schedule: In an ageing schedule the receivables are classified according to their age.

Maximum permissible bank finance (MPBF): It is the maximum amount that banks can lend a borrower

towards his working capital requirements.

Commercial paper: A cp is a short term promissory note issued by a company, negotiable by endorsement and delivery, issued at a discount on face value as may be determined by the issuing company.

Bridge finance: It refers to the loans taken by the company normally from commercial banks for a short period pending disbursement of loans sanctioned by the financial institutions.

Venture capital: It refers to the financing of high-risk ventures promoted by new qualified entrepreneurs who require funds to give shape to their ideas.

Debt securitization: It is a mode of financing, where in securities are issued on the basis of a package of

assets (called asset pool).

 Lease financing: Leasing is a contract where one party (owner) purchases assets and permits its views by another party (lessee) over a specified period.

Trade Credit: It represents credit granted by suppliers of goods, in the normal course of business.

Over draft: Under this facility a fixed limit is granted within which the borrower allowed to overdraw

from his account.

Cash credit: It is an arrangement under which a customer is allowed an advance up to certain limit against credit granted by bank.

Clean overdraft: It refers to an advance by way of overdraft facility, but not back by any tangible security.

Share capital: The sum total of the nominal value of the shares of a company is called share capital.

Funds flow statement: It is the statement deals with the financial resources for running business activities. It explains how the funds obtained and how they used.

Sources of funds: There are two sources of funds internal sources and external sources. Internal source: Funds from operations is the only internal sources of funds and some important points add to it they do not result in the outflow of funds

(a) Depreciation on fixed assets

(b) Preliminary expenses or goodwill written off, Loss on sale of fixed assets Deduct the following items, as they do not increase the funds: Profit on sale of fixed assets, profit on revaluation Of fixed assets External sources: (a) Funds from long-term loans

(b)Sale of fixed assets

(c) Funds from increase in share capital

 Application of funds:

A. Purchase of fixed assets.

B.  Payment of dividend.

C. Payment of tax liability.

D.  Payment of fixed liability.

CD (Inter corporate deposits): Companies can borrow funds for a short period. For example 6 months or less from another company which have surplus liquidity? Such deposits made by one company in another company `are called ICD.

Certificate of deposits: The CD is a document of title similar to a fixed deposit receipt issued by banks there is no prescribed interest rate on such CDs it is based on the prevailing market conditions.

Public deposits: It is very important source of short term and medium term finance. The company can accept PD from members of the public and shareholders. It has the maturity period of 6 months to 3 years.

Euro issues: The euro issues means that the issue is listed on a European stock Exchange. The subscription can come from any part of the world except India.

GDR (Global depository receipts): A depository receipt is basically a negotiable certificate, dominated in us dollars that represents a non-US company publicly traded in local currency equity shares.

ADR (American depository receipts):

Depository receipts issued by a company in the USA are known as ADRs. Such receipts are to be issued in accordance with the provisions stipulated by the securities Exchange commission (SEC) of USA like SEBI in India.

Commercial banks: Commercial banks extend foreign currency loans for international operations, just like rupee loans. The banks also provided overdraft.

Development banks: It offers long-term and medium term loans including foreign currency loans

International agencies: International agencies like the IFC,IBRD,ADB,IMF etc. provide indirect assistance for obtaining foreign currency.

Seed capital assistance: The seed capital assistance scheme is desired by the IDBI for professionally or technically qualified entrepreneurs and persons possessing relevantexperience and skills and entrepreneur traits.

Unsecured loans: It constitutes a significant part of long-term finance available to an enterprise.

Cash flow statement: It is a statement depicting change in cash position from one period to another.

Sources of cash:

Internal sources

(a)Depreciation

(b)Amortization

(c)Loss on sale of fixed assets

(d)Gains from sale of fixed assets

(e) Creation of reserves

External sources-

(a)Issue of new shares

(b)Raising long term loans

(c)Short-term borrowings

(d)Sale of fixed assets, investments

Application of cash:

(a) Purchase of fixed assets

(b) Payment of long-term loans

(c) Decrease in deferred payment liabilities

(d) Payment of tax, dividend

(e) Decrease in unsecured loans and deposits

Budget: It is a detailed plan of operations for some specific future period. It is an estimate prepared in advance of the period to which it applies.