Leverage is used many times in Financial Management.

Leverage always comes with a responsbility. 

 - ICAI Journal, July,2010.

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Analysis : 

Whenever one borrows funds; he takes responsbility to repay it with interest in the committed time horizon. 

Derivatives are financial instruments the value of which are derived from  its underlying securities.

Derivatives are financial weapons for mass destruction. 

 - Warren Buffet

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In 2009, we have seen the bad results because many indian companies incurred huges losses due to non-hedging of  their foreign exchange exposure.  Since Amercian economy crashed hence all thought that dollar would become weak. But, it went reverse to the expectations of all. It increased.

The government had to withhold the application of provisions of AS 11 for two years so that many companies don't come under red and convert into sick industrial units.

thanku sir

I Liked it.

" SIR "

Today, it takes more brains and effort to make out the income-tax form than it does to make the income.  ~Alfred E. Neuman

"We are living in fear of our Godfather (Institute). When we go to answer (in exams) we don't know what to expect."

g8 Effords sir..Thanks...

thank u sir

"TURNOVER IS VANITY

PROFIT IS SANITY

BUT CASH IS REALITY"

Nice sir..

Keep sharing...

thank u sir...