In the situation where the covid-19 has increased, Lockdown has been declared in most places. A lot of people have lost their jobs and financial difficulties are also increasing. To overcome this difficult situation Government of Kerala Introduced the NORKA Pravasi Bhadratha Scheme.
Who is eligible for Pravasi Bhadratha?
Applicants are to be either members of Kudumabshree NHG or any organization formed under the aegis of Kudumbashree.
Applicants are to be Return emigrants who have completed at least two years of employment abroad.
Three major schemes under this rehabilitation Programme:
Pravasi Bhadratha – PEARL
It has been proposed to implement the scheme through the Kudumbashree Mission to address the targeted group with a sustainable livelihood.
Benefits and repayment of Pravasi Bhadratha – PEARL scheme?
Financial assistance up to 75% of the project cost or Interest-free loans up to Rs. 2 Lakhs.
Repayment with equal instalments within two years.
Pravasi Bhadratha – MEGA
It has been proposed through KSIDC is envisaged to provide loans in the range of Rs. 25 lakhs to Rs. 2 crores per enterprise.
Benefits and repayment of Pravasi Bhadratha – MEGA scheme?
Firstly, KSIDC provides loans @ interest of 8.25% to 8.75%.
NORKA-ROOTS will provide interest incentives up to 3.25% to 3.75% for the first 4 years.
Pravasi Bhadratha – MICRO
This scheme is envisaged to assist returned NRKs in setting up Micro and small-scale industries. The scheme is proposed to be implemented through the branches of Kerala State Financial Enterprises.
Benefits and repayment of Pravasi Bhadratha – MICRO scheme?
Loans up to Rs. 5 lakhs.
Capital subsidy @ Rs. 25% of the loan component up to a maximum of Rs. 1 lakh.
Interest subvention for initial 4 years @ 3%.
About Finline!
Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you must have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Also, all public and private sector banks working in India accept our project report. Click to create your report.
What are the main criteria for applying for a business loan?
Age Limit: The applicant should be a minimum of 21 years and a maximum of 65 years.
Income: The business should be profit-making at least for the past 2 years.
Turnover: ₹150,000 p.a. should be the minimum annual income.
Essential documents needed for applying for a business loan?
Identity Proof: For a company, firm or individual- a valid Identity proof and PAN Card.
Address Proof: Voter ID card, Ration card, Passport, or Driving License.
Bank Statements: Latest Bank Statements for the last 6 months.
Income Documents: This should include the latest ITR along with the computation of income, balance sheet, profit and loss account for the past two years and Project report. This has to be submitted after the requisite CA certification.
Proof of Continuation: TR/Trade license/Establishment/Sales Tax Certificate.
Other Documents: Sole Proprietorship Declaration or Certified Copy of the Partnership Deed, certified true copy of the Memorandum and Articles of Association (certified by the company Director) and the Board resolution.
About Finline!
Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your report.
Any individual above the age of 18 can apply for the scheme.
Persons with educational qualifications of 7th standard are eligible for this.
There will be no income ceiling for assistance in setting up projects under PMEGP.
Categories of Beneficiary’s Rate of subsidy under PMEGP (of project cost) Area (location of project/unit) General category 15% (Urban), 25% (Rural), Special 25% (Urban), 35% (Rural) (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.)
What are the benefits of PMEGP?
The maximum cost of the project/unit admissible in the manufacturing sector is ₹ 25 lakhs and in the business or service sector, it is ₹ 10 lakhs.
The balance amount of the total project cost will be provided by the banks in the form of term loans and working capital.
It would also include the installation of improved packaging techniques as well as anti-pollution measures, energy conservation machinery, in-house testing and online quality control.
2. MUDRA ( Micro Units Development & Refinance Agency Ltd )
Who is eligible for a MUDRA loan?
Individuals, Proprietary concerns, Partnership Firms, Private Ltd. Companies, Public Companies and Any other legal forms are eligible for the scheme.
The applicant should not be a defaulter to any bank or financial institution and should have a satisfactory credit track record.
The individual borrowers may be required to possess the necessary skills/experience/ knowledge to undertake the proposed activity.
How to repay the MUDRA loan?
Term Loan: – To be repaid in suitable instalments with a suitable moratorium period as per the cash flow of the business.
OD & CC Limit: – Repayable on demand. Renewal and Annual Review as per internal guidelines of the Bank.
3. CGTMSE ( Guarantee Fund Trust for Micro and Small Enterprises )
Who is eligible for CGTMSE?
New and existing Micro and Small Enterprises engaged in manufacturing or service activity excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions etc. are eligible for the scheme.
Under the Guarantee Scheme, a borrower is required to obtain an IT PAN number prior to availing of a credit facility from the eligible lending institution. Also, it is a mandatory requirement under section 139A(5) read with section 272(C) of the I. T Act 1961 to indicate IT PAN on all tax documents which include returns, challans, appeals, etc.
What are the benefits of CGTMSE?
The guarantee cover available under the scheme is to the extent of 50%/ 75% / 80% & 85% of the sanctioned amount of the credit facility. The extent of guarantee cover is 85% for micro-enterprises for credit up to 5 lakh. The extent of guarantee cover is 50% of the sanctioned amount of the credit facility for credit from 10 lakh to 100 lakh per MSE borrower for retail trade activity.
4. CLCSS ( Credit Linked Capital Subsidy Scheme )
Who is eligible for CLCSS?
Small and micro-enterprises that belong to sub-sectors specified by the Ministry of MSME will be deemed eligible for this subsidy scheme.
Small and micro-enterprises based in semi-urban and rural areas with a valid UAM number are also eligible.
What are the benefits of CLCSS?
Micro and small enterprises belonging to the 51 sub-sectors mentioned by the Ministry of MSME are eligible for capital subsidy.
The subsidy is available to both existing and new enterprises. The subsidy is available to small and micro enterprises in rural and urban areas.
The scheme provides eligible MSEs with a 15 per cent capital subsidy, capped at a maximum of INR 15 lakh, for upgrading their technology with the well-established and improved technology approved under the scheme.
5. NSIC ( National Small Industries Corporation )
Who is eligible for NSIC Subsidy?
All Entrepreneurs and MSMEs who have started their business and have started commercial production for 1 year or less can apply for a provisional NSIC certificate with a validity of 1 year.
The SC/ST units shall be eligible for an upfront 100% subsidy on the fee of NSIC for fresh registration/renewal/amendments/competency certificate and also the inspection fees of the empanelled Inspection Agencies or NSIC including Service Tax applicable.
Applicant must be an MSE with a valid Udyog Aadhar Memorandum.
What are the benefits of NSIC Subsidy?
Presently, there is a subsidy @ 75% on the rating fee charged by the rating agencies for all categories (General or SC/ST) of MSEs for fresh rating.
About Finline!
Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Also, all public and private sector banks working in India accept our project report. Click to create your report.
Entrepreneurship is the creation or extraction of value. In India entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business. In other words, the process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business or procedures.
GUIDELINES FOR ENTREPRENEURS
Find an idea: If you’re thinking about starting a business, you likely already have an idea of what you want to sell online, or at least the market you want to enter. Do a quick search for existing companies in your chosen industry.
Prepare a Business Plan: A business plan helps you figure out where your company is going, how it will overcome any potential difficulties and what you need to sustain it. When you’re ready to put pen to paper, these free templates can help.
Assess your finances: This is an essential element of financial planning that helps business owners determine when their company, product or service will be profitable.
Find out the Source of funds: This is an essential element of financial planning that helps business owners determine when their company, product or service will be profitable.
Preparation of project report: It is a document that provides details on the overall picture of the proposed business. It contains data on the basis of which the project has been appraised and found feasible.
Make an executive summary: Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company’s leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.
Start your business at the right place at the right time, with minimum cost and maximum profit.
About Finline!
Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.
Debt majorly refers to the money you borrowed, but liabilities are your financial responsibilities. At times debt can represent liability, but not all debt is a liability. Liability vs Debt is a vital part of any business that wants to become an industry leader or manage its operations successfully.
To get a good reading of a company’s relative financial stability, it is best to compare its current ratio to the average current ratio of similar companies operating in the same industry. You can also compare it to the company’s own current ratio in previous years, to identify whether the company is trending toward a higher or lower ratio. A liability is a debt owed by a company that requires the entity to give up an economic benefit (cash, assets, etc.) to settle past transactions or events. Borrowers must repay the amount they owe, typically with interest, by a specific date specified in the repayment terms for all these different forms.
Contingent liabilities are a special type of debt or obligation that may or may not happen in the future. The most common example of a contingent liability is legal costs related to the outcome of a lawsuit. For example, if the company wins the case and doesn’t need to pay any money, it does not need to cover the debt.
Liabilities Examples
A liability is typically an amount owed by a company to a supplier, bank, lender or other provider of goods, services or loans. Liabilities can be listed under accounts payable, and are credited in the double-entry bookkeeping method of managing accounts. Similar to businesses, individuals or households balance assets against liabilities to determine their net worth.
However, if your liabilities become too great for your income level and you no longer have the assets necessary to pay your debts when they’re due, you might find yourself considering bankruptcy. While this legal process resolves liabilities due to an inability to pay. It also has an adverse effect on your credit score and ability to borrow in the future. There is potential for successor liability in the purchase of a business, which means the buyer could assume the risk for certain liabilities. Asset sales are more complicated than stock sales because the individual assets and liabilities must be purchased and sold. However, we have discovered that this concept usually only applies to larger transactions. An expense is the cost of operations that a company incurs to generate revenue. Unlike assets and liabilities, expenses are related to revenue, and both are listed on a company’s income statement.
In general, anything that takes from you is your liability, while anything that adds to you is an asset.
Difference Between Liability and Debt
As a practical example of understanding a firm’s liabilities, let’s look at a historical example using AT&T’s (T) 2020 balance sheet. On the balance sheet, we separate current/short-term liabilities from long-term/non-current liabilities. A company utilizes liabilities to finance operations and fund significant expansions, making them a vital aspect. For example, in most cases, if a wine supplier sells a case of wine to a restaurant, it does not demand payment when it delivers the goods. Rather, it invoices the restaurant for the purchase to streamline the drop-off and make paying easier for the restaurant.
Company management will attempt to address that question by projecting their current liabilities for the next fiscal quarter or year and the expected cash inflows for the same period. For the Income statement, such salary and wage transactions contribute to the total salary and wage expenses for the accounting period. A company’s total liabilities are the sum of its short and long-term liabilities. In brief, liabilities represent the totality of a company’s outstanding debt. You can locate the information required to calculate a quick ratio on a company’s balance sheet, available in its most recent earnings report. In some cases, this may mean your liability transforms into an asset, like a mortgage balance becoming full home equity.
Asset Turnover Ratio: Definition and Formula
Accounting textbooks or an accounting professional can provide more detailed definitions. When failure is not an option, wise project managers rely on the power of statistical process control to uncover hidden schedule risks, build teamwork, and guarantee on-time delivery. Finish time-critical projects on time with the power of statistical process control tracking. The Excel-based system makes project control charting easy, even for those with little or no background in statistics. A clear, practical, in-depth guide to principle-based case building, forecasting, and business case proof. For analysts, decision-makers, planners, managers, and project leaders—professionals aiming to master the art of “making the case” in real-world business today.
Long-term debt, also known as bonds payable, is usually the largest liability and is at the top of the list.
Debt majorly refers to the money you borrowed, but liabilities are your financial responsibilities.
Find here the proven principles and process for valuing the full range of business benefits.
To get a good reading of a company’s relative financial stability, it is best to compare its current ratio to the average current ratio of similar companies operating in the same industry.
Within a year, companies typically pay current liabilities using current assets.
In that way, liabilities can actually help you build up assets over time. In addition to the above, businesses may also classify liabilities as either current or long-term. “If you default on a secured liability, the lender can take legal action to take your asset to pay off the liability.
Total Debt to Equities Ratio
The beta estimate generates the cost of equity, which one can use to estimate a cost of capital, but it is important to base the market value weight on debt on net debt. Once we discount the cash flows of the firm at the cost of capital, we should not add back cash. Instead, we should subtract the net debt outstanding to arrive at the estimated value of equity. wave accounting review In contrast, in a stock sale, the buyer purchases shares or membership interests and assumes everything that the business owns or owes. Liabilities are debts or obligations a person or company owes to someone else. For example, a liability can be as simple as an I.O.U. to a friend or as big as a multibillion-dollar loan to purchase a tech company.
Liabilities are settled over time through the transfer of economic benefits including money, goods, or services. Others use the word debt to mean only the formal, written financing agreements such as short-term loans payable, long-term loans payable, and bonds payable. When some people use the term debt, they are referring to all of the amounts that a company owes. A liability is a legally binding obligation payable to another entity. Liabilities are incurred in order to fund the ongoing activities of a business. Examples of liability accounts are trade payables, accrued expenses payable, and wages payable.
What Are Liabilities? Definition and Examples
Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioural finance. Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charter holder as well as holding FINRA Series 7, 55 & 63 licenses.
Second Circuit rules legal inaccuracy could trigger FCRA liability … – ABA Banking Journal
Second Circuit rules legal inaccuracy could trigger FCRA liability ….
For instance, the debt in a BB-rated firm is much riskier than the cash balance in the firm. Netting out one against the other can provide a misleading view of the firm’s default risk. In general, using net debt ratios will overstate the value of riskier firms. Because unsecured debt doesn’t have this built-in emergency asset payment attached, these types of liabilities are riskier for lenders.
Services, raw materials, office supplies, or any other categories of products and services, where no promissory note is issued, can be included in Accounts Payable (AP). Since companies typically do not pay for goods and services upon acquisition. A stack of bills waiting to be paid is equivalent to AP. Debt is always negative in a business. It allows others to have a claim of your profit in a case where you run a business. If you decide to use a credit card, a business line of credit or any other form. It is always advisable to pay careful attention to the details, in order to monitor the interest from your debt.
Upon the borrower’s promise to pay interest on the debt, the lender agrees to lend funds. A person or business acquires debt in order to use the funds for operating needs or capital purchases. Examples of debt accounts are short-term notes payable and long-term debt. For current assets (assets that are relatively liquid), everyone sees that the company has a shortage of working capital. As a result, the firm may have trouble meeting near-term financial obligations.
In some instances, the transaction absorbs the debt as part of the sale. If you’re unhappy with your net worth figure and believe liabilities are to blame, there are steps you can take. Strategies like debt consolidation and the “debt avalanche” — attacking debts with the highest interest rates first — can help you pay off debt efficiently. Our partners cannot pay us to guarantee favourable reviews of their products or services. We believe everyone should be able to make financial decisions with confidence.
About Finline!
Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.
Income is money (or some equivalent value) that an individual or business gets, usually in exchange through investing capital or providing a good or service. You don’t have to publish every employee’s salary publicly to have pay transparency. Learn the stages of pay transparency and how you can implement them to increase performance. On average, each year amounts to 52 weeks and 1 day, or 52 whole weeks total.
What is an example of annual income?
Annual income is the amount of money you bring home each year prior to deductions. For example, if your base pay is $45,000 per year, that's your annual income even though your take-home pay is less after deductions.
Beginning Dec. 1, 2016, the base salary rate was set to increase to $913 per week, but in November 2016 a court case in Texas put that ruling on hold. Compensation is the monetary payment employees earn for doing their jobs. Compensation is a major factor in where employees choose to work, with our research finding that 75% of employees would consider leaving their current job for a salary increase. In analyzing a company’s earnings, GAI will often be disaggregated into Gross Margin, which is GAI as a percentage of total revenue earned.
How Do Credit Cards Work?
This is usually calculated by taking a range of salary amounts for a role. For example, let’s say the average salary amounts for a role were €20,000, €30,000 and €40,000. To get the average, you’d add up these 3 numbers, then divide by the number of salaries (3).
Adjusted gross income is simply all the money you made for a year minus special adjustments the IRS allows to help lower taxes. Then, that $113,000 https://adprun.net/bookminders-outsourced-accounting-and-bookkeeping/ gross income is used to calculate other forms of income. Sometimes a credit application won’t specify if they want your net or gross income.
Credit Card Quick Links
Businesses operating as sole proprietorships, partnerships, or S corporations are not taxed. Any net income is passed through to the owners or partners, who pay federal taxes based on their individual tax brackets. State income taxes vary as well, ranging from 2.5% to 12%, although some states have no tax. The term household income generally refers to the combined gross income of all members of a household above a specified age. Household income includes every member of a family who lives under the same roof, including spouses and their dependents.
You’ll also get access to Statistics, our innovative feature which automatically categorises all of your transactions to help you understand your spending. Your gross income is used as the starting point for determining your taxable income, as well as your ability to pay rent and pay back loans. He gave his Accounting For Startups: Everything You Need To Know In 2023 accountant all his income receipts and after he reviewed them he estimated that Mr. Johnson’s gross annual income was $42,578. Now that he has this number he can figure out how much Mr. Johnson has to pay this year and he can also compare this figure with last year’s to see how he’s doing with the company.
Net Income Formula: How To Calculate Net Income
When preparing and filing your income tax return, gross annual income is the base number you should start with. If you know your gross income, you’ll have a better idea of what taxes you will either owe or be returned. Your gross annual income is also the number that’s used to qualify you for a loan or a credit card. Calculating annual income can be confusing for some, and it’s something you want to get right when it comes to reporting your income on Federal and state tax returns.
The federal government establishes base salary guidelines for certain employees including those working in executive, professional, and administrative positions.
State income taxes vary as well, ranging from 2.5% to 12%, although some states have no tax.
He gave his accountant all his income receipts and after he reviewed them he estimated that Mr. Johnson’s gross annual income was $42,578.
The financial state of a business or individual impacts their way of living and purchase decisions.
These expenses are typically referred to as the cost of goods sold (COGS), or cost of sales in the case of services businesses.
Our work has been directly cited by organizations including Entrepreneur, Business Insider, Investopedia, Forbes, CNBC, and many others.
