SAFETY TIPS FOR USE OF ATM CARD USEFUL TIPS(Automated Teller Machines)

Protecting Your Card

1.                            Keep your card in a safe place to avoid damage.

2.                            Memorize your Personal Identification Number (PIN). Never write the PIN down on anything in your wallet or on the card itself.Never tell your PIN to any third person, whether to family member, office staff.

3.                            When selecting a PIN, avoid numbers and letters that relate to your personal information. For example, don't use your initials, birthday, telephone or vehicle number ,if you have such a number, contact your bank and get a new PIN issued.In most of ATM ,you can change your ATM pin yourself.

4.                            Immediately report a lost or stolen card to your financial institution.

5.                            To help guard against fraud, keep your ATM receipts until you check them against your monthly statement.

Safety Tips at the time Of withdrawal

·  Observe your surroundings before using an ATM. If the machine is obstructed from view or poorly lit, visit another ATM..

·  Take a friend with you - especially at night.

·  Have your card out and ready to use.

·  Shield the screen and keyboard so anyone waiting to use the ATM cannot see you enter your PIN or transaction amount.

·  Put your cash, card and receipt away immediately. Count your money later, and always keep your receipt.

·  If you see anyone or anything suspicious, cancel your transaction and leave immediately. If anyone follows you after making a transaction, go to a crowded, well-lit area and call the police.

·  When using an enclosed ATM that requires your card to open the door, avoid letting strangers follow you inside.

·  Check with your financial institution to determine what the daily limit of funds that can be withdrawn from your account is.

·  Use swap ATM machine ,Machine which take ATM card inside are risky and some time they ate your ATM card ,due to input of wrong ATM pin ,withdrawal amount given is more than balance and for other reason .

·  Use Your own Bank machine ,where ever possible .the reason is that if there is a problem in Transaction then problem can be solved by your bank directly but if other banks ATM is used then to solve dispute you have to contact two bank branches.

·  If your card jammed in ATM, report this immediately to the bank.

TAX PLANNING – ITS NEED AND WAYS TO DO AT DIFFERENT STAGES OF LIFE

Direct tax collections is one of the easiest and safest ways of collecting revenues by the Government. In spite of our greatest reluctance all of us are in the tax net and contribute a sizeable portion of the revenue of the exchequer. The law provides for levying of taxes at different stages and forms of income .On the contrary it provides impetus for effective savings out of the income generated by us through which we can reduce our tax liability. Such investments provide dual purpose for both the assessee and for the Government. On the one hand it reduces tax liabilities in our hand and on the other hand it provides sizeable funds in the hands of the Government

Our main aim in tax planning is to pay minimum taxes by abiding with the legal statute and maximizing return on our investments by investing on the correct instruments at the correct time of our life.

I endeavor herein below in brief some of the important aspects in this respect:

Some people have a wrong notion that tax planning is useful only once you reach an advanced stage of life or are well settled in a business or profession. That is not true. In fact, the best time to start tax planning is right from day one when you start having any income in your name. The sooner you enter the wonderland of tax planning, the better it will be for you in the long run. The benefits of tax planningadopted in the initial years of life will come in very handy when you are planning your retirement. The longer the duration of your tax planning, the better results it will yield to you in years to come. Thus, the right time to begin tax planning is when a person becomes a major. And, it should be continued in right earnest, year after year. Here is how …

Tax Planning upon Becoming a Major

·                            Take your first lesson of tax planning when you attain the age of 18

·                            Document all the amounts you receive

·                            Small cash presents you receive on various ceremonial occasions should be put into the bank

·                            Separate income tax files for each individual so that one’s income is not added with that of other family members.

Tax Planning Once You Start Earning

·                            Systematically maintain your withdrawals, banks deposits, etc.

·                            Save as much as you can because being single you have fewer financial commitments

·                            Open a PPF account and put money in the account as much as you can. This investment is tax free and also remains blocked for a minimum period of 15 years.

·                            Stop luxurious spending as this is not the age for that.

·                            Go for some insurance policy with long period of maturity.

Tax Planning When You Get Married

·                            Avoid gifts to your spouse after marriage as the income arising from the same will be clubbed with your income. Best planning would be to make a gift to your prospective spouse just a few months before your marriage.

·                            If your spouse is not a working woman, do not withdraw for household expenses from her account. Utilize that fund for tax saving investments.

·                            Start some pension plan investment which will be beneficial when you retire.

·                            Start savings for a house of your own if you don’t have one

·                            If yours is a joint family open a HUF account and maintain separate file for the same.

.Tax Planning after a Decade of Your Marriage

·                            Start investments in the name of your children

·                            Incase of fund constraints take some small but long term insurance policies in the children name for their education and marriage.

·                            Invest the maturity value of your certain early age investments into long term risk free investments.

Tax Planning after the Marriage of Your Children

·                            Income in the group is distributed amongst yourself your spouse and your son, daughter in law

·                            Prepare your will and adopt tax planning relating to your will to secure tax saving to the family members.

Tax Planning for Senior Citizens

·                            Open joint bank accounts and put all your maturity value in the same.

·                            Invest is safe instruments and in joint names.

Conclusion

Intelligent tax planning calls for changes in approach every few years. It is, therefore, recommended that you must review your investment and tax planning perspective at least every decade and reorient it depending on the facts and circumstances of the situation.

A GOOD AUDITOR

An auditor has to keep himself abreast of the latest developments in the audit field by constant upgradition of his skills and knowledge through Internet, seminars, self-study and correspondence course.  The Satyam multi-crore scam is still fresh in people’s mind and investigations are in progress with the Chairman and Chief Finance Officer in jail pending investigation.

Suddenly, there seems to have been a debate on the role of auditors, internal as well as external. In future, the role of these auditors would be under the scanner. People expect them to be independent and honest and would not connive with the management to hide scams or dubious dealings under the carpet.

Role of auditor

An auditor is expected to serve as the eyes and ears of a management. A timely warning followed by corrective measures prevents a problem becoming too big or embarrassing later on to handle. That’s why an auditor has to be on his toes all the time and serve the management faithfully and that too without any personal bias or influenced by anyone, internal or external. It’s a highly responsible job and so the skills required are somewhat different from a job, which is done routinely. An auditor’s job could be interesting as well as challenging. However, there could be never a dull moment provided the auditor gives up his mindset that an auditor’s job is `routine’ and not interesting enough like a research and development job.

The interest in certification as per International Standards like ISO 9000 by companies has given rise to opportunities for the auditors whose demand is increasing day by day thanks to the ever growing global business trends that call for International recognition of systems, procedures and qualified personnel.

There are consultive firms and independent consultants who take up certification on behalf of clients who could be national or international. The global meltdown has affected job opportunities in various sectors but the demand for auditors has not changed much considering the importance this job.

An auditor besides being qualified and experienced, should be a person who:

*Has a pleasant personality

*Is unbiased

*Does not act superior

*Does not throw his / her weight around

*Is patient and listens more and talks less.

*Does not sermonise

*Has a keen nose, ear and eye for deviations and out-of-the-ordinary

*Has communication skills

*Can prepare good reports

*Is fearless and independent but not aggressive

*Takes up the job seriously and with dedication

*Is ethical and honest to the core

Auditors are needed in every business house, industry and any activity that calls for independent internal or external assessment.

Types of auditors

There are management auditors, financial auditors, quality auditors, quantity auditors, system auditors, energy auditors and so on. Qualification for an auditor depends upon which area one wants to become an auditor.

For example a prospective financial auditor should be a qualified graduate in commerce or finance or a chartered accountant. Those who intend to do systems audit might be graduate in any discipline. However, a person with an engineering background would be better suited for doing energy or process audit in an industry. Sometimes a jack-of-all- trade is preferred given the wide and varied background of that person.

Added asset

Experience of working in a business house or industry is an asset as that person would have been exposed to actual working conditions.

In general auditing is done with a written set of questions that are known to the clients too so that they are prepared themselves with set of responses. Whether a business house, factory or company is conforming to what is supposed to be doing as laid down in a manual is what should come out of an audit with suggestions for compliance.

An auditor has to keep himself abreast of the latest developments in the audit field by constant upgradition of his skills and knowledge through Internet, seminars, self-study and correspondence course. These are challenging times for auditors who could look for lucrative offers by clients.

WHAT IS DEMAT ACCOUNT

Demat refers to a dematerialised account.

Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks.

So it is just like a bank account where actual money is replaced by shares.

You have to approach the DPs (remember, they are like bank branches), to open your demat account.

Let's say your portfolio of shares looks like this: 40 of Infosys, 25 of Wipro, 45 of HLL and 100 of ACC.

All these will show in your demat account.

So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account.

As you buy and sell the shares, they are adjusted in your account.

Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.

Is a demat account a must?

Nowadays, practically all trades have to be settled in dematerialised form.

Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more.

So a demat account is a must for trading and investing.

Where do I begin?

Look for a DP to have an account with. Most banks are also DP participants, as are many brokers.

You can choose your very own DP.

To get a list, visit the NSDL and CDSL websites and see who the registered DPs are.

A broker is separate from a DP. A broker is a member of the stock exchange, who buys and sells shares on his behalf and on behalf of his clients.

A DP will just give you an account to hold those shares.

You do not have to take the same DP that your broker takes. You can choose your own.

But many brokers offer special incentives in the form of lower charges for opening demat accounts with their DPs.

Get your documents in place

Once you approach your DP, you will be guided through the formalities of opening an account.

You must fill up an account opening form and sign an agreement with your DP.

The DP will ask for some documents as proof of your identity and address.

Check with them what they require. For instance, some may accept a driver's license, others may not.

Here is a broad list (you won't need all of them though):

• PAN card
• Voter's ID
• Passport
• Ration card
• Driver's license
• Photo credit card
• Employee ID card
• Bank attestation
• IT returns
• Electricity/ Landline phone bill

While they only ask for photocopies of the documents, they will need the originals for verification.

You will have to submit a passport size photograph on which you sign across.

How many shares you need to have to open an account?

When opening an account with a bank, you need a minimum balance.

Not so with a demat account. A demat account can be opened with no balance of shares.

And there is no minimum balance to be maintained either. You can have a zero balance in your account.

What will it cost?

The charges for account opening, annual account maintenance fees and transaction charges vary between DPs. To get a comparative idea, visit the websites of NSDL and CDSL.

Can I nominate?

Sure. You can nominate whoever you like by filling up the nomination details in the account opening form.

This is to enable the nominee to receive the securities after the death of the holder of the demat account.

Finally?

When you open an account, the DP will allot a unique BO ID (Beneficial Owner Identification) Number, which you need to quote for all future transactions.

If you want to sell your shares, you need to place an order with your broker and give a 'Delivery Instruction' to your DP.

The DP will debit your account with the number of shares sold. You will receive the payment from your broker.

If you want to buy shares, inform your broker about your Depository Account Number, so that the shares bought are credited into your account.

What's the difference between a depository and a depository participant?

A depository is a place where the stocks of investors are held in electronic form.

The depository has agents who are called depository participants (DPs).

Think of it like a bank. The head office where all the technology rests and details of all accounts held is like the depository. And the DPs are the branches that cater to individuals.

There are only two depositories in India -- the National Securities Depository Ltd (NSDL) and the Central Depository Services Ltd (CDSL). There are over a 100 DPs. 

WHAT DO U MEAN BY                SENSEX

The Sens*x , an abbreviation of the BSE sensitive index, is a market capitalisation-weighted index of  stocks representing a sample of large, well-established and financially sound companies. It is the oldest index in India and has acquired a unique place in the collective consciousness of investors. The index is widely used to measure the performance of the Indian stock markets. Sens*x is considered to be the pulse of the Indian stock markets as it represents the underlying universe of listed stocks on The Stock Exchange, Mumbai. Further, as the oldest index of the Indian stock market, it provides time series data over a fairly long period of time (since 1978-79). Sens*x is not only scientifically designed but also based on globally accepted construction and review methodology. Sens*x Calculation Methodology As per the methodology, the level of index at any point of time reflects the free-float market value of  component stocks relative to a base period. The market capitalisation of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalisation is further multiplied by the free-float factor to determine the free-float market capitalisation. The base period of Sens*x is 1978-79, and the base value is 100 points. This is often indicated by the notation 1978-79=100. The calculation of Sens*x involves dividing the free-float market capitalisation of  companies in the index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the Sens*x. It keeps the index comparable over time and is the adjustment point for all index adjustments arising out of corporate actions, replacement of scrips etc. During market hours, prices of the index scrips, at which latest trades are executed, are used by the trading system to calculate the Sens*x every 15 seconds and disseminated in real time.

DIFFERENCE BETWEEN NSC & PPF

Public Provident Fund (PPF) scheme : Investment Limit, Income tax benefit, Features

The Public Provident Fund is the darling of all tax saving investments.No wonder! You invest in it and you get a deduction on your income. Besides, the interest you earn on it is tax-free. Since it is a scheme run by the Government of India, it is also totally safe. You can be sure no one is going to run away with your money. Here, we summarise the scheme, tell you how to open a PPF account and what to expect.

1 . To open a PPF account, drop  by a State Bank of India branch. SBI’s subsidiary banks can also open accounts. Alist of these subsidiary banks is available on the bank’s Web site.You can even visit the nationalised bank in your neighbourhood. Selected branches of nationalised banks can also open accounts.The head post office or selection grade sub-post offices also open PPF accounts.

2. You will have to fill up a form. You can take a look or download the form from SBI’s web site. Along with the form, attach a photograph and submit your Permanent Account Number. If you do not have a PAN, then furnish an attested copy of either your ration card, voter’s identity card or passport. When you open an account, you will be given a passbook (just like a bank pass book) in which all subscripttions, interest accrued, withdrawals and loans are recorded.

3. You can have only one PPF account in your name. If, at any point, it is detected that you have two accounts, the second account you have opened will be closed, and you will be refunded only the principal amount, not the interest.

4. You cannot open a joint account with another individual. The account can only be opened in one person’s name. You are free to nominate one or more individuals. On the death of the account holder, nominees cannot keep the account going by making contributions. If there are no nominees, the legal heirs get the money. You can open one account for yourself and others for your child/ children. But, on your death, your children cannot make any additional contributions.

5. The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000. The interest you will earn is 8% per annum.

Let’s say you open an account for your minor child. You can deposit Rs 70,000 in your account and Rs 70,000 in your child’s account. In this case you can in my opinion take the maximum benefit of Rs. 1,00,000/- U/s. 80C.  As Limit of Maximum Investment in a year of 70000/- is fixed by Public provident Fund Act not byIncome Tax law.

You can make up to 12 deposits in one year. You don’t have to put in this money at one go.

6. The PPF account is valid for 15 years. The entire balance can be withdrawn on maturity, that is, after 15 years of the close of the financial year in which you opened the account. So, if you opened it in FY 2006-07 (this financial year), you will be able to withdraw it 15 years later, starting March 31, 2007 (end of thisfinancial year). That means your PPF matures on April 1, 2022. It can be extended for a period of five years after that. During these five years, you earn the rate of interest and can also make fresh deposits. Once your account expires, you can open a new one. The only limitation is that you cannot withdraw it until seven years are completed, after which 50% of your deposits can be withdrawn, if needed.

What are the differences and similarities between the National Savings Certificate (NSC) and PPF?

Do consider opening a PPF account if you do not have one. You can put in as little as Rs 500 a year to keep it going.

Peer Review – Documentation – Tax Audit under Income Tax Act

Auditing as a profession has grown in the society to undertake the responsibility of assuring the users of financial statements regarding their accuracy, usability, reliability and transparency. Hence, this profession calls for a high level of professional capability and excellence on the part of the auditor. A professional’s personality is only as good as his current state of knowledge and skills. However, even the best of the professionals need approbation. They are only human   beings.  They need and deserve the reconfirmation of their abilities and the way they work, from their peers. Such reconfirmation that professional seek is provided by the process of “Peer Review” (PR).

Peer Review Board was established by the Council of the Institute in March 2002 to conduct the system of PR. As you must be aware, it has been made mandatory for the auditors of the listed company to undergo PR on/before 31^st March 2009. If they fail to do so, their reappointment is made invalid. Earlier, only Bank audit units were covered under PR. It is mandatory for all the practice units who are auditing listed companies and also Bank branches.

Quality is the prime driving factor of this whole concept of PR. Its aim is to ensure that the practice units comply with the technical standards for maintaining the quality of the attestation works they perform.

Attestation services includes auditing, verification of financial transactions, books, accounts or records or preparation, verification or certification of financial accounting and related statements as defined U/Sec 2(2)(ii) of the CA Act,1949 but does not include

(i)                  Management consulting

(ii)                Representing clients before authorities

(iii)               Engagements for the compilation of financial statements

(iv)              Engagements to prepare tax returns or advising clients in taxation matters

(v)                Engagements solely to assist the client in preparing, compiling or collating information other than financial statements

(vi)              Testifying as expert witness and

(vii)             Providing expert opinion on AS or applicability of certain laws.

PR shall focus on

a)      Compliance with technical standards

b)      Quality of reporting

c)      Office system and procedure with regard to compliance of attestation service systems and procedures

d)      Training programs for staff (including articled and audit clerks) concerned with attestation functions including appropriate infrastructure.

Technical Standards include

(i)                  Accounting Standards

(ii)                A.A.S now renamed as “Engagements and quality control statements”

(iii)               Framework for preparation and presentation of financial statements & Framework of statements on SAP and Guidance Notes on related services

(iv)              Statements

(v)                Guidance Notes

(vi)              Notifications

(vii)             Compilations of provisions of the various relevant statutes &/or Regulations which are applicable in the context of the specific engagements being reviewed.

As of now, there are totally 32 accounting standards issued by the Institute. All these accounting standards are mandatory except A.S 3 – Cash flow statements. For small and Medium Enterprises, certain relaxations are there.

The ICAI has prescribed several mandatory Auditing Standards also. Besides this, based on the trends and needs of the sector the ICAI has been issuing several statements and Guidance Notes which deal with the profession of auditing. The aim of these prescripttions is to strengthen transparency, enhance objectivity and fix responsibility on the auditor.

The basic concepts in auditing deal with the true and fairness and materiality aspects.

The Auditing and Assurance Standards (A.A.S) have been renamed as ‘Engagement and Quality Control Standards’ w.e.f   01.04.2008.

‘Statements’ are mandatory. Hence their non-compliance or deviation shall be disclosed adequately in the audit reports. Material departures may lead to qualifying the report.

‘Guidance Notes’ are recommendatory in nature. Hence the auditor while discharging his attest function may consider the disclosure of deviations from the Guidance Notes at his discretion.

In general, if we can call accounting standards as necessary ingredients for cooking the food, we can call the auditing standards as prescripttions for serving the food – when where and how.

When a member is not able to perform an audit in accordance with the auditing standards then he should draw attention to his report to the material departures there from.

DOCUMENTATION

Every professional work needs to be backed up by adequate documents, more so when an auditor is performing an audit. AAS 3 (SA 230) deals in detail about the documents to be maintained when discharging the attest function. Broadly documents can be classified into two files ie, Permanent & Current. Further they can be classified into mandatory records and recommendatory records. Working papers are part of mandatory records. Recommendatory records include the Practice Unit’s profile, Staff details, general office procedures etc.

The mandatory documents include audit plan, audit programme, the nature, timing and extent of audit procedures, data sampling and verification details, the observations, explanations and conclusions drawn there from.

Permanent File:

This should contain the letter of engagement, correspondence with retiring auditor, constitution of the entity, nature and history of business, location and process details, internal controls evaluation sheets, methods of accounting, EDP security etc, earlier year’s financial statements etc.

Current File:

This should contain annual appointment letter, acceptance letter, draft financial statements, work estimate, work assignment, queries raised and explanations received, checklists, authorization levels, Management Representation letter, other expert’s opinion, applicable accounting standards and their appliance details, detailed working papers and conclusions, analytical tests conducted and results, third party confirmations and certificates, finalized Balance Sheet and P&L account with all schedules duly signed by the Management, draft and finalized Audit Report.

Standards on Quality Control (SQCs) :

SQC 1, “Quality Control for Firms that Perform Audit and Reviews of Historical Financial Information, and other Assurance and Related Services Engagements”

This is the mother standard for all other standards and is all pervasive standard in respect of quality control. This is applicable for all the audit services from 01.04.2009. Some of the relevant auditing standards are as follows.

A.A.S 3                             (SA 230)      Documentation

A.A.S 5                             (SA 500)      Audit Evidence – External/internal

A.A.S 7                             (SA 501)      Reliance on the work of internal auditor

A.A.S 8                             (SA 300)      Audit Planning

A.A.S 9                             (SA 620)      Reliance on expert opinion.

A.A.S 34                           (SA 501)      Additional Consideration for specification of evidence

There is no exhaustive list suitable for any one audit. If it is a charitable trust that is audited, to issue Form 10B audit report all the questions in that audit report are to be answered first by the management, then after due verification only the auditor should issue the Audit Certificate. Similarly in the case of a limited company, the CARO 2003 queries are to be answered with due working papers.

TAX AUDIT UNDER SECTION 44AB OF THE INCOME TAX ACT 1961 :

It is the duty of the management, where tax audit is applicable, to prepare all the required details as per Form 3CD. After due verification only, the auditor has to issue the Form 3CA/Form 3CB audit report together with Form 3CD certificate. This is a statutory compliance. The purpose of the audit is not only to assure the tax department the true and fairness of the financial statement but to assure

a) Proper maintenance of books and records

b) From the I.T Act point of view, the allowable and disallowable expenses, taxable and exempt incomes which facilitates the work of the revenue authorities.

c)  To ensure the compliance and reliability of various income tax provisions.

A reasonable sample checklist for conducting tax audit

Particulars                                                       Relevant Standards

Auditing starts with vouching. Selecting a right sample size to represent the total data and to draw right conclusions is the process of auditing. After applying all the above tools only, audit conclusions are to be drawn by way of a report. Though the above given lists are not exhaustive, depending upon the nature and size of the auditee, and the systems and procedures adopted by the auditee the whole process of auditing varies from case to case.

IPO Procedure 

INTERVIEWING TIPS
 
Well, it’s that time again. Time to prepare yourself for the journey that lies ahead. It can be a little scary, but with the proper preparation you will do much better. Below are some general tips to get your focus on track. With a few interviews you'll be on your way!  

Interview Tip 1: Plan Ahead - Do a little homework! Research the company and the position if possible, as well, the people you will meet with at the interview. Review your work experiences. Be ready to support past career accomplishments with specific information targeted toward the companies needs. Have your facts ready!

Interview Tip 2: Role Play - Once you have finished studying, begin role playing (rehearsing). Use the general questions provided below in the Interview Preparation Area. Write down answers if it helps to make your presentation more concise. Try to keep your answers to the information your new employer will want to know.

Interview Tip 3: Eye Contact - Maintain eye contact with your interviewer. Show you want the job with your interest.

 
Interview Tip 4: Be Positive - In particular, avoid negative comments about past employers.

 
Interview Tip 5: Adapt - Listen and adapt. Be sensitive to the style of the interviewer. Pay attention to those details of dress, office furniture, and general decor which will afford helpful clues to assist you in tailoring your presentation.

Interview Tip 6: Relate - Try to relate your answers to the interviewer and his or her company. Focus on achievements relevant to the position.


Interview Tip 7: Encourage - Encourage the interviewer to share information about his or her company. Demonstrate your interest. Some suggested questions to ask the interviewer are provided in the "Questions You Could Consider Asking the Employer" section.

  Interview Preparation Area

Below are questions you may be asked in the interview 

1.      Tell me about yourself? (try to hold your response to 2 minutes)

2.      What do you know about our company?

3.      Why should we hire you?

4.      What can you do for us that someone else can't?

5.      What do you look for in a job?

6.      What skills and qualifications are essential for success in the position of ______?

7.      How long would it take for you to make a meaningful contribution?

8.      How does this assignment fit into your overall career plan?

9.      Describe your management style.

10.  What do you believe is the most difficult part of being a supervisor of people?

11.  Why are you looking for a new career?

12.  How would your colleagues describe you?

13.  How would your boss describe you?

14.  How would you describe yourself?

15.  What do you think of your present or past boss?

16.  What were the five most significant accomplishments in your last assignment?

17.  What were the five most significant accomplishments in your career so far?

18.  Can you work well under deadlines or pressure?

19.  How much do you expect if we offer you this position?

20.  Why do you want to work for us?

21.  What other positions are you considering?

22.  Have you kept up in your field with additional training?

23.  What are your career goals?

24.  What are your strong points?

25.  What are your weak points?

26.  How did you do in school?

27.  What position do you expect to have in 2 to 5 years?

28.  If you took the job what would you accomplish in the first year?

29.  What was wrong with your current or last position?

30.  What kind of hours are you used to working or would like to work?

31.  Do you have your reference list with you? (Remember don't give it out unless it is asked for).

32.  Can you explain your salary history?

33.  What questions didn't I ask that you expected?

Do you have any question for me? (See Questions for the Interviewer that you might want to ask below).

Interview Preparation Area 2.

Below are questions you may want to ask the Interviewer 

1. Why is this position open?
    
2. How often has it been filled in the past five years? What were the main reasons?
    
3. What would you like done differently by the next person who fills this position?
    
4. What are some of the objectives you would like to see accomplished in this job?
    
5. What is most pressing? What would you like to have done in the next 3 months?
    
6. What are some of the long term objectives you would like to see completed?
    
7. What are some of the more difficult problems one would have to face in this position?
    
8. How do you think these could best be handled?
    
9. What type of support does this position receive in terms of people, finances. etc?
    
10. What freedom would I have in determining my own work objectives, deadlines, and methods of measurement?
     
11. What advancement opportunities are available for the person who is successful in this position, and within what time frame?
     
12. In what ways has this organization been most successful in terms of products and services over the years?
     
13. What significant changes do you foresee in the near future?
     
14. How is one evaluated in this position?
     
15. What accounts for success within the company?
            

WHAT IS INFLATION

In last month or so every body have read the words "CRR" "repo rate" & SLR in News paper and wanted to know about it and interested in its effect on various things like Inflation,bank Interest rate and stock price of Bank and other Interest rate sensitive stocks .so we have divided this story in three parts.
(A) Meaning of terms
(B) Impact on Inflation & interest rates
(C) other measure which can be taken

(A) Meaning of terms

• CRR(Cash Reserve Ratio):Cash reserve Ratio (CRR) is the amount of Cash(liquid cash like gold) that the banks have to keep with RBI. This Ratio is basically to secure solvency of the bank and to drain out the excessive money from the banks. If RBI decides to increase the percent of this, the available amount with the banks comes down and if RBI reduce the CRR then available amount with Banks increased and they are able to lend more.RBI has reduced this ratio three times and reduced it from 9 % to 5.5% in last one month or so.

• Repo Rate:Repo rate is the rate at which our banks borrow rupees from RBI. This facility is for short term measure and to fill gaps between demand and supply of money in a bank .when a bank is short of funds they they borrow from bank at repo rate and if bank has a surplus fund then the deposit the funds with RBI and earn at Reverse repo rate .So reverse Repo rate is the rate which is paid by RBI to banks on Deposit of funds with RBI.A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive.To borrow from RBi bank have to submit liquid bonds /Govt Bonds as collateral security ,so this facility is a short term gap filling facility and bank does not use this facility to Lend more to their customers.present rate is 7.5% and reverse repo rate is 6%.

• SLR((Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank credit.Generally this mandatory ration is complied by investing in Govt bonds.present rate of SLR is 24 %.But Banks average is 27.5 % ,the reason behind it is that in deficit budgeting Govt landing is more so they borrow money from banks by selling their bonds to banks.so banks have invested more than required percentage and use these excess bonds as collateral security ( over and above SLR )to avail short term Funds from the RBI at Repo rate.

Impact on Inflation and Interest rates:

As we all have read the famous line "if all thing remain the same ......".so In all my below paragraphs please note that there are many assumption in fixing the relation between this ratio and interest rates .

SLR and Cash reserve ratio is maintained for bank solvency and Higher ratio of SLR and CRR makes bank relatively safe as higher ratio means they have more of their funds deposited in liquid securities and can fulfill the demand on redemption of deposit from the Bank.lets take an example :suppose a Bank has taken a deposit of 100 from public and CRR is 9 and SLR is 25 then available funds to lend from deposits with the bank will be 100-9-25=66 so their is direct relation between CRR ,SLR and Funds available with bank to lend to public out of deposit received from public .

Now take point what will be the impact on Interest rates of this ratio:Interest rate are fixed on the Demand supply situation of the amount available with person who want to lend and and person who want to borrow and interest rate is fixed on demand supply of the funds if demand is more and supply is less then interest rate rises up and if demand is less and supply is excessive then interest rate comes down .this relation is based on many assumption as said above.

So RBI is controlling the supply side of the Funds and by changes in CRR and SLR they effective control the supply side of the money.so when RBI increase these ratio then available funds with the banks will go down and as demand remain the same then people will have to pay more as interest and interest rate will go up.On the reverse if RBI reduce these rates ,then amount available with bank for lending will be increased and they have to reduce rates to lend more.In these situation bank also reduce the rate of higher short term deposit from public as they have surplus money already to lend.so these rates have double impact the first direct effect is bank reduce rate of lending so more money is available with people and second is interest on Deposit will be reduced so more money will be available with the people.

As from the above para we have understood that how these ratio reduce or increase the money supply in the system and we know if more person is demanding few goods then price of goods tends to increase and its called inflation so when RBI reduce these ratios then money supply in market increases and inflation is rises further but in present case this is not the correct and right relation.This time the reduction of these ratio is to maintain liquidity without disturbing inflation much.while marked is falling and each and every commodity rate going downwards.In these situation after increasing of money supply inflation rate does not goes up as the demand is slow and reduction in commodity prices will nullify the impact of increase in money supply and have less inflationary effects.

Measure which may be taken in this Crise:(this is based on measures taken by other countries )

1. Share market:Govt should create a Fund which may be called as Market stablisation fund ,which should me managed by professional agency and should buy good reputed stock from the Market when share are available at throw away prices and sell them when they seems to be overvalued.and the purpose of the fund should be stablisation of the market and welfare of the Investor and not to earn a profit from the market and buying and selling should be on the basis of Long term period.By doing this sentimate will improve ,volitality will be reduced and selling from large FII can be absorbed and in my point of view there is no chance of loss in these venture.To start with 5000-10000 cr fund is enough.russian govt has adopted this system.
2. Buying of stocks of private sector Banks:if govt By sybolically purchase shares of some major private banks then it will improve the sentimate and increse the confidense of public in private sector bank .This measures Indicate that banks are sound and govt is also investing in them .More over money received from selling of shares also improve the liquidity position of the banks
3. you can add more if you wish to ,in comment section.

 DISCLAIMER : THE RATE TAKEN IS A EXAMPLE.FOR ALL RATES.THEY ARE NOT PRESENT RATES.

Eligibility Criteria for Listing
IPOs by Companies

Qualifications for listing Initial Public Offerings (IPO) are as below:

1.      Paid up Capital

The paid up equity capital of the applicant shall not be less than Rs. 10 crores * and the capitalisation of the applicant’s equity shall not be less than Rs. 25 crores** 

Provided however that where the market capitalisation (at issue price) of the applicant’s equity is not less than Rs.100 crores, the paid up capital of the applicant can be less than Rs. 10 crores but in any case it shall not be less Rs. 5 crores.

* Explanation 1

For this purpose, the post issue paid up equity capital for which listing is sought shall be taken into account.

** Explanation 2

For this purpose, capitalisation will be the product of the issue price and the post issue number of equity shares. In respect of the requirement of paid-up capital and market capitalisation, the issuers shall be required to include, in the disclaimer clause of the Exchange required to put in the offer document, that in the event of the market capitalisation (Product of issue price and the post issue number of shares) requirement of the Exchange not being met, the securities would not be listed on the Exchange.

2.      Conditions Precedent to Listing:

The Issuer shall have adhered to conditions precedent to listing as emerging from inter-alia from Securities Contracts (Regulations) Act 1956, Companies Act 1956, Securities and Exchange Board of India Act 1992, any rules and/or regulations framed under foregoing statutes, as also any circular, clarifications, guidelines issued by the appropriate authority under foregoing statutes.

3.      Atleast three years track record of either:

a.  the applicant seeking listing; or
b.  the promoters****/promoting company, incorporated in or outside India or
c.  Partnership firm and subsequently converted into a Company (not in existence as a Company for three years) and approaches the Exchange for listing. The Company subsequently formed would be considered for listing only on fulfillment of conditions stipulated by SEBI in this regard.

For this purpose, the applicant or the promoting company shall submit annual reports of three preceding financial years to NSE and also provide a certificate to the Exchange in respect of the following: 

• The company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR).

• The networth of the company has not been wiped out by the accumulated losses resulting in a negative networth

• The company has not received any winding up petition admitted by a court.

****Promoters mean one or more persons with minimum 3 years of experience of each of them in the same line of business and shall be holding at least 20% of the post issue equity share capital individually or severally.

4.      The applicant desirous of listing its securities should satisfy the exchange on the following:

a) No disciplinary action by other stock exchanges and regulatory authorities in past three years

There shall be no material regulatory or disciplinary action by a stock exchange or regulatory authority in the past three years against the applicant company. In respect of promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) of the applicant company, there shall be no material regulatory or disciplinary action by a stock exchange or regulatory authority in the past one year.

b) Redressal Mechanism of Investor grievance
 

The points of consideration are:
 

o                                The applicant, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) track record in redressal of investor grievances

o                                The applicant’s arrangements envisaged are in place for servicing its investor.

o                                The applicant, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) general approach and philosophy to the issue of investor service and protection

o                                defaults in respect of payment of interest and/or principal to the debenture/bond/fixed deposit holders by the applicant, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) shall also be considered while evaluating a company’s application for listing. The auditor’s certificate shall also be obtained in this regard. In case of defaults in such payments the securities of the applicant company may not be listed till such time it has cleared all pending obligations relating to the payment of interest and/or principal.

c) Distribution of shareholding
 

The applicant’s/promoting company(ies) shareholding pattern on March 31 of last three calendar years separately showing promoters and other groups’ shareholding pattern should be as per the regulatory requirements.

d) Details of Litigation
 

The applicant, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) litigation record, the nature of litigation, status of litigation during the preceding three years period need to be clarified to the exchange.

e) Track Record of Director(s) of the Company
 

In respect of the track record of the directors, relevant disclosures may be insisted upon in the offer document regarding the status of criminal cases filed or nature of the investigation being undertaken with regard to alleged commission of any offence by any of its directors and its effect on the business of the company, where all or any of the directors of issuer have or has been charge-sheeted with serious crimes like murder, rape, forgery, economic offences etc.

 

Note:

a) In case a company approaches the Exchange for listing within six months of an IPO, the securities may be considered as eligible for listing if they were otherwise eligible for listing at the time of the IPO. If the company approaches the Exchange for listing after six months of an IPO, the norms for existing listed companies may be applied and market capitalisation be computed based on the period from the IPO to the time of listing.

Documents Required For Applying to Bank for Cash Credit:-

Photograph : main applicants

ID proof : Pan card/ Passport/c Driving License

Signature Proof : Pan card/ Passport/Driving License

Age Proof : Pan card/ Passport/Driving License/DOB Certificate

Residence Proof : Passport/ Voter Card/Driving License/Ration Card/ Telephone Bill.

Office Proof : Telephone Bill/ Sales Tax registration certificate/ Electricity Bill

Ownership Proof : Electricity Bill/house tax/property papers

Income Proof : last 3 years audited financial along with audit report with all

Bank statement : main account last 6 month.

Sanction letter of existing Cash credit or overdraft limit availed by the

company.

Collateral Security : Property papers which are offered.

Constitution proof : MOA/ partnership deed

Others : any Govt. registration like service tax, sales Tax, excise,

Loan Proof : Repayment Schedule of all running loans

Oh my god.........Its EXCELLENT....................Good post.........VERY INFORMATIVE..........

WOW WHAT A GREAT EFFOR......KEEP TO UP AYUSH