Hello Senior Puys...
I'm Pursuing MBA 2011-13 Batch with Finance Specialization and I going for my Summer Internship in BANK Probably....
Now i need some suggestion on good Summer Project Topic for Banking Sectors...????
Hello Senior Puys...
I'm Pursuing MBA 2011-13 Batch with Finance Specialization and I going for my Summer Internship in BANK Probably....
Now i need some suggestion on good Summer Project Topic for Banking Sectors...????
You can choose any of the topics such as
Treasuries (Forex , Fixed Income Securities , Capital Markets)
Corporate Banking (B2B)
Retail Banking , Wholesale Banking , Commercial banking
Non Fund related services such as Letter of Credit , Bank Guarantees etc
Asset Liability Management
Basel III
Risk Management (Credit , Interest Rate , Liquidity , Market, Operational)
Credit Research , Credit Appraisal etc..
All these topics cover different aspects of banking and important for a management graduate to understand .. whichever topic you select go as deep as possible .. it will help you during your final placements ..
in financial services'
what is the starting salary offered to a finance-b school passout from a decent b school of mum lik kj
as in if i hv already a pckg of 3.3,,,n nw i wish to do pgdm in fs--wl it be really worthh--please gv opinion
I think the best answer can be given by KJ seniors , so kindly PM them for the same
Q3. In India, do we have double taxation of dividends i.e. taxes on dividends both at the corporate level and at the individual level?
Cheers
Would like to answer your third and second question as of now , rest will try come up later ..
Double taxation afaik is for corporate as the dividend is distributed from Profit after tax (PAT) and after that Dividend Distribution Tax of 15% is levied on corporate for the dividend payout . No tax is levied on retail investors
Q2.For a corporate house, how are dividend payouts (not share repurchase) and interest payments taxed? Do corporates save tax on interest payments?
Dividends are paid out after the annual general board meeting of the company where the dividend pay out is passed , an x day is decided for the ownership of the stocks for dividend pay .. and cheques are issued in the name of investors for the same .. Dividends are paid wrt to face value of the share and not the market value ..
In case the dividend is not claimed for a period of 7 years the money is transferred to investor protection fund ..
Yes Interest Rate is tax deductible .. they do claim tax benefits on interest expenses as they do for depreciation
Which one is better MFC DELHI or IIT kanpur?suggetions please
Sharing a Post from another thread on PG , Investment Banking is very well explained here ...
Dear Jain.Er,
I will try to explain in layman's language, so here it goes
Any Ibank is divided into 3 main units:
1) Front office : consists of traders, M&A; guys, corporate/commercial bankers, etc
2) Middle office : consists of analysts doing research, financial & accounting work, risk, analytics, etc to support front office
3) Back office : consists of teams doing F&A; operations to low level processing and software teams to maintain trading systems, etc
IB F&A; ops are basically the teams in any IBank which take care of post trade activities which include:
a) Trade processing from front office
b) Trade confirmation with global offices and clients
c) maintaining cash balances with local custodian banks to settle trades
d) reconcialiations between legders and statements
e) maintaining stock balances, rates, financial data, etc
f) taxations, etc, etc
Risk management in IB is divided into various segments:
a) one segment is the financial risk, market risk, credit risk, forex risk, VaR calculations, etc: this is predominantly done by middle office associates
b) other segment is the operational risk, fraud management, controls testing, audits, etc : this is done jointly by middle office and back office risk managers.
CFA/FRM is a preferred qualification for financial risk management in middle offices, but not a constraint.
The following companies have IB ops offices in India (middle & back offices)
1) JPMC
2) GS
3) RBS
4) SCB
5) Northern Trust
6) Bank of new york mellon
7) NomuraCitiBank
9) UBS
10) barclays
11) Deutsche bank
12) morgan stanley
13) BoA - ML
14) wells fargo
Money wise : please ask a specific question, mention the role/level/company
CitiBankhey puys, I seek your guidance on a couple of issues... (these are not career related queries but just some finance related, thirst for knowledge questions I had :P).
Q1. How do NBFCs and Microfinance companies in India raise capital? Did some reading and I found that these guys cannot accept 'demand deposits'. Are demand deposits the same as regular deposits?
If so, is equity their only option for raising capital?
Cheers
Few examples
Microfinance institutions use women cluster loans to raise capital - Economic Times
MICROCAPITAL BRIEF: Indian Microfinance Institutions Allowed to Raise $10m Each in External Commercial Borrowings
Puys, thanks for the quick and informative answers :). read the articles. informative 😃
can somebody tell me which method of calculating depriciation is used in INDIA straight ine method or written down value method??..i was asked this in my interview
pallavi70 Sayscan somebody tell me which method of calculating depriciation is used in INDIA straight ine method or written down value method??..i was asked this in my interview
As far as india is concerned, the methods and rates for depreciation are governed by law under the Companies Act, 1956 and the Income Tax Act.
The two main methods of calculating depreciation are the Straight Line Method and the Written-Down Value Method.
The choice of method depends on a number of factors, including legal requirements, the type of asset and current business conditions.
As far as india is concerned, the methods and rates for depreciation are governed by law under the Companies Act, 1956 and the Income Tax Act.
The two main methods of calculating depreciation are the Straight Line Method and the Written-Down Value Method.
The choice of method depends on a number of factors, including legal requirements, the type of asset and current business conditions.
follow up question - if the only 2 we use are straight line and written down value, does this mean we dont use accelerated dep/double declining balance at all?
if not, is it because it is not permitted or the st line and written down are preferred in India?
pallavi70 Sayscan somebody tell me which method of calculating depriciation is used in INDIA straight ine method or written down value method??..i was asked this in my interview
Generally WDV method is used only Power generation companies have the option to se SLM acc Income Tax Act
follow up question - if the only 2 we use are straight line and written down value, does this mean we dont use accelerated dep/double declining balance at all?
if not, is it because it is not permitted or the st line and written down are preferred in India?
Accelerated dep methods are not quite prevalent coz under the income tax act the rates provided for depreciation are already diff from the one provided under the companies act. Using accelerated methods would further lead to creation of Deferred tax Assets/Liablities in the B/s which are difficult to justify. Hence companies generally avoid acccelerated dep methods & opt for WDV which provides the same benefits of accelerated depreciation & is much easier to justify to Tax authorities.
follow up question - if the only 2 we use are straight line and written down value, does this mean we dont use accelerated dep/double declining balance at all?
if not, is it because it is not permitted or the st line and written down are preferred in India?
Afaik , accelerating depreciation/DDB are not used in india .. I might be wrong as well ..
Companies Act gives the rate of depreciation for SL and WDV method .. so that clearly suggests Indian accounting dont follow it .
SL is very simple method but i dont think many companies use it .
As harry said , WDV is the most used depreciation method in india
There are many methods to calculate depreciation. SLM and WDV may be the most common that most are aware of, however, there are others like double declining, Activity based like SOYD, Time based or PV based etc
In India, Depreciation for Company Law (profit reporting) and Income Tax (tax calculation) purposes has to follow separate rules.
Companies Law
Here depreciation is in accordance with Schedule XIV of the Act. This schedule gives the rates under both the SLM and the WDV method for various classes of assets.
The company has the choice which method to apply, but they must justify if they are changing the depreciation method from one to another.
Income Tax
For income tax purposes, companies must follow the WDV method with rates specified for a block of assets.
Note: The rates prescribed under the Income Tax Act are the maximum rates that a company can charge while the rates prescribed under the Companies Act are the minimum rates that a company may charge.
Majority of companies follow the SLM for companies act and WDV for IT purposes. There are some specific exceptions like power companies, high capitalization companies.
Hope this clarifies
pallavi70 Sayscan somebody tell me which method of calculating depriciation is used in INDIA straight ine method or written down value method??..i was asked this in my interview
Majority of companies follow the SLM for companies act and WDV for IT purposes. There are some specific exceptions like power companies, high capitalization companies.
Hope this clarifies
So, does that mean when company prepares it's financial statements at the end of the day it uses SLM approach to show the depricaiation expenses??(with reference to india)as u said companies uses SLM for companies act
Also i had not given the panel a detailed answer but i said that WDV is used in India.
also one more question- they asked me that if we keep reducing the value of an asset by charging depriciation each year, for eg if today the value is 1000rs. the value will decrease in subsequent years owing to depriciation and suppose if the value comes down to, lets say 50.45 rs at some point of time then what do we do with this value??
Majority of companies follow the SLM for companies act and WDV for IT purposes. There are some specific exceptions like power companies, high capitalization companies.
In fact Majority of companies use WDV so that they dont have to maintain separate financial statements for Accounting & Tax purposes
So, does that mean when company prepares it's financial statements at the end of the day it uses SLM approach to show the depricaiation expenses??(with reference to india)as u said companies uses SLM for companies act
Also i had not given the panel a detailed answer but i said that WDV is used in India.
also one more question- they asked me that if we keep reducing the value of an asset by charging depriciation each year, for eg if today the value is 1000rs. the value will decrease in subsequent years owing to depriciation and suppose if the value comes down to, lets say 50.45 rs at some point of time then what do we do with this value??
The balance is generally adjusted against sale value if the asset is discarded or it is charged off to the P & L.
Afaik, only 'qualified' investors can invest in Private Equity. Appreciate if someone can throw some light on the qualification to be an investor? Any chance only HNIs can invest?
Hi Seniors,
I am having 2 years of work ex in an I.T company. This year i am joining MBA. I have decided to take Systems as major and Finance as minor. I want to know whether the choice of finance as minor is a good option to go up in the hierarchy in an IT industry.Also please enlighten what are the opportunities available in the market with my subject combination other than I.T industry?
slipstream100 SaysAfaik, only 'qualified' investors can invest in Private Equity. Appreciate if someone can throw some light on the qualification to be an investor? Any chance only HNIs can invest?
There is no written qualification to be a PE Investor anyone with a high risk apetite combined with money to invest can be a PE Investor.
harry4u9 SaysIn fact Majority of companies use WDV so that they dont have to maintain separate financial statements for Accounting & Tax purposes
Correction. Most companies use SLM for reporting purposes. I suggest you check the Annual Reports of major companies and look under "Notes to Accounts" > "Depreciation and Amortisation" head. The method of depreciation will be clearly stated.
- There have been lot of papers / research studies conducted that also indicate the same.
- Have a look at this book - page 50
Understanding Financial Statements - Aileen Ormiston, Lyn Fraser - Google Books - According to "Accounting Trends and Techniques" American Institute of Public Accountants, the vast majority of companies use SLM method for financial reporting (even in USA).
In fact, separate statements are not required to be prepared. We just prepare a reconciliation between the tax and reporting depreciation to arrive at the adjustment.