Dr. Sujit Dutta

Understanding Operating Risk Adjustments in Financial Statements

Leave a Comment / International Finance /

A firm dealing with foreign exchange may be exposed to foreign currency exposures. The exposure is the result of possession of assets and liabilities and transactions denominated ‘in foreign currency. When exchange rate fluctuates, assets, liabilities, revenues, expenses that have been expressed in foreign currency will result in either foreign exchange gain or loss. A […]

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Financing through the International Debt Market

Leave a Comment / International Finance /

International capital markets refer to financial markets that facilitate the buying and selling of financial instruments such as equities, bonds, and derivatives across national borders. There are two main ways that someone accesses the capital markets—either as debt or equity. Companies may raise debt (ECB, Eurobond), equity (ADR, GDR), or hybrid securities (FCCB) depending on

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NPV and IRR

NPV and IRR in Capital Investment and Financing Decisions

Leave a Comment / Finance /

Net Present Value (NPV) and Internal Rate of Return (IRR) are two fundamental tools used to evaluate a project’s profitability. NPV is an absolute measure of the difference between the present value of cash inflows and the present value of cash outflows over a specific period of time. It considers the time value of money, which

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Retirement benefits under income from salary

A Conceptual Overview of Retirement Benefits under the Head “Income from Salary”

Leave a Comment / Indian Direct Tax /

During employment, many employees tend to focus mainly on their monthly take-home salary. However, an equally important aspect of compensation lies in retirement benefits such as Provident Fund (PF), Gratuity, Pension, Commuted Pension, and Leave Encashment. Under the provisions of the Income Tax Act, these benefits are taxed under the head “Income from Salary”, though

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Discounted Cash Flow and Present Value in Investment Decisions

Leave a Comment / Finance /

Present Value (PV) and Discounted Cash Flow (DCF) are terms we frequently hear in the financial world. They are widely used in corporate finance, banking, valuation, and even personal investment planning. But why are they so important? Let us begin with a very simple question. Suppose you invest in an LIC policy today and receive

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Allowances and perquisites

Allowances and Perquisites under Income from Salary

Leave a Comment / Indian Direct Tax /

When you receive your first appointment letter, you will often find several components listed in your salary structure—basic pay, allowances, perquisites, reimbursements, and other benefits. For many fresh professionals, the terms “allowances” and “perquisites” can be confusing. It is important not to overlook these terms. Understanding them properly helps you interpret your salary structure, estimate

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Understanding CAPM in the World of Returns and Wealth Building

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The Capital Asset Pricing Model (CAPM) is an equation that describes the relationship between the expected return of an investment and its risk. CAPM quantifies investment risk through beta, allowing investors to compare the volatility of an asset to the market. If you need to clear your concept of CAPM, let’s go through this classroom

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