Audit and economical analysis

Table172

Balance   procedures   construction   and   financing

Assets	Do not add up	Responsibility	Do not add up	Source of financing
Long-term assets	A4	Source of financing	P4	P4A4, A3
Current assets at   including:		liabilities at   including:
Inventory	A3	Long-term loans and borrowings	P3	P3A4
Debtors liabilities	A2	Short term loans and borrowings	P2	P2A3, A2
Cash	A1	Creditor's obligations	P1	A1P1, P2, P3

 

Addition to   intended use and duration of review   it is necessary to assess the level and effectiveness   their use   .

This implies not only the repayment of the loan and the interest rate in the bank, but also   efficiency   sectors, networks and businesses borrowed or financed by credit   .

Loans will certainly be directed to the implementation of specific projects. Banks need to estimate the effectiveness of funds allocated for project implementation before lending or financing projects.

If a   we will take into account   practice   lending and   financing   projects in   economically developed   countries   We see that   they are paying close attention   efficiency of lending to enterprises and organizations.

If the project funds will be   economically and financially   viable, the project will be funded.   

The effectiveness of the loan depends on the volume of production and sales.   Basis for implementation   principles of efficiency  credit.   Efficiency requires a clear, targeted use of credit.   

The higher the level of production and sales, the less   credit cycle turnover   by that   higher efficiency of credit investments.

 

 Risk analysis. Duration of credit monitoring

 

Problems   with credit risk   and the need for risk management   are considered   by one   of   key issues of deepening the market economy and globalization of the international economy.

Credit   the risk is concerned, the focus on the nature of these   risks   character,   causes and socio-economic consequences   should   be.

In international banking practice, risk relationships occur mainly during active operations.   T   passed the risk structure of banks   ,  associated with the activities of credit and investment   operations.

Bank risks arise,   by-   It appears to be different, all of them in terms of money,   as   owner   The loan and interest payments are not fully returned to the reference value.

Credit risk or default risk arises from uncertainty about the timely repayment of the loan and the ability to satisfy the loan terms on the basis of the lender’s loan agreement .   Credit   risk   is the biggest of risks   faced   bank  .   Therefore, commercial banks should focus on this process in their credit policy.

It is envisaged that full repayment or partial repayment of loans (which often happens at interest rates and commission fees) or delays in terms of timely repayment of the loan and non-fulfillment of credit conditions.

Credit risk is the risk that a borrower will not be able to repay its obligations in a timely manner in accordance with the terms of the loan agreement.

The best solution for risk banking   lending is to ensure that the borrower's creditworthiness and constant monitoring of its financial sustainability are key   factors in liquidity and independence (autonomy)   special attention is paid to risks.

Credit risk arises from the inability of the borrower to repay debts, inability to correct cash flows, financial difficulties, low business reputation of managers and business owners or the superiority of criminal sentiment.

At the same time, due to the pressure of state bodies and individuals, these risks are accepted.

High credit risk also depends heavily on low staffing, social tensions and bribery.

Credit risk assessment begins primarily by familiarizing with potential borrowers.   Customer reputation, entrepreneurship, production, marketing and financial management are evaluated.   It is important to pay close attention to the degree of readiness of the loan offer, its economic, social, environmental significance, the purpose of the loan and its significance for the bank, the borrower, the individual social sector, the network and the region. A positive assessment allows you to make important decisions about your credit products. This process allows the client to assess creditworthiness, financial position and cash flow directly. The final process is definitely a loan agreement.

An important aspect of risk management is the creation of a schedule and the organization of regular monitoring.   This process is associated with the rapid monitoring of loans.   Its main goal is to identify unpleasant loans and take measures to recover them.

Failure of urgent loans is one of the most noticeable situations.   Its main causes include the following: a decrease in receivables;   Low liquidity ratio;   decline in sales;   operating losses;   excessive accumulation and maintenance of reserves;   loss of important customers, caution of the borrower's business partners, the inability of the management to contact the bank, refuse or postpone their request.

Internal risk assessment factors include: client's credit rating (preventive   measures  ,   risk prevention   limiting borrowing opportunities at the expense of debt and the potential level of risk,   co-financing of the project, partial financing of the debtor’s own funds, problem loans in business management and management; protection of contractual obligations (security, security, fines, interest) If paid);internal joint activity   (at the Bureau of Economic Analysis, Security, etc.); legal liability except in cases of use, etc.

Actions,   aimed at reducing   credit risk   (   minimal consequences, damages   ): diversification of the loan portfolio; the formation of alternative cash flows; limiting the net amount of loans to one client; discounted loans; Debt repayment may be included in a third party sale.

Credit enhancement measures   of enterprises   determined on the basis of their financial position and results.   In other words,  measures that are not feasible for   being   at   disadvantage   enterprises,   and measures that are impossible to perform,   fundamentally different from   financial unstable   of enterprises.   One of them seeks to maintain financial stability, while the other is trying to solve the problem and survive.

Below are some of the most important steps you can take to improve your credit or credit worthiness.

Revision of assets and liabilities   of enterprises.   What does understanding its content mean?

Businesses   liquidity surplus,   in order to speed up aylanuvchanligini working capital and intangible assets,   necessary for the production of more turnover (sell them, soil, and   other ways), the repayment of receivables and payables ( Mod ), short and targeted placement of long-term financial investments.

A negative change in the ratio between payment and payment obligations should be sought from the lower parts of production and management, and not because of financial burden.   That is, the lack of production and sale of goods, excessive production costs, inadequate pricing and much more.

It is necessary to first identify and use internal opportunities to solve the problem of insufficient financing.   In a disability environment, there is no economic opportunity to borrow from another organization and justify its trust.

Watch   enterprises non-governmental   management levels, the balance of their criteria for   activities of other objects   ajatlarini to reduce or stop self financing.

Companies   in cash and cash equivalents I really   solid plan in of them and install it   constant   need   at   application.   Besides,  use of funds for debt obligations should be clear moth plan.

To increase acceleration capabilities   turnover, it is necessary to eliminate, suspend and terminate current forms of payments.

It is necessary to pay attention to investment activity.  Enterprises for   ensure their creditworthiness. Investment activity is very different from borrowing and redemption.

One of the key factors in assessing   credit standing   of enterprises   are their cash flows, which should be estimated on the basis of current assets associated with the source of borrowing.   In turn, excessive asset turnover leads to a trend towards welding. In rare cases, this can lead to artificial growth.

One of the most important measures to improve the creditworthiness of enterprises is the transition to valuation practice by compiling internal and external obligations directly into accounts.   Removing internal obligations for a number of corporate obligations does not eliminate these costs.   But it also gives a significant breakthrough in increasing solvency.