Bank Statutory Audit - An Overview

Auditing in Banking sector is one of the most booming sectors owing to increasing number of complexities involved in their operational structure and the directions issued by the regulator RBI. Bank Audit is itself a large branch of auditing involving audits of varying scope and objectives. Audits of Banks are generally assigned as per the nature and size of Bank Branch to Chartered Accountant Firms, where the size of Branch itself depends upon the Size of Advances made by the respective Branch. Statutory Audit is also one of such audits which is of significant value to the Bank as well as Auditors comprising of the reporting of entire year operations and future viability of the respective Bank. Statutory Audit: The name itself describes the nature of audit i.e. as mandated by a Statute....

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SAWBUCK

When I first time read this term, wondered if its the sibling of a duck ..!!..:-)But surprisingly, its a financial term. Lets see what does it mean..SAWBUCK = SAW + BUCKWhere BUCK is a slang commonly used for currency in US and SAW itself associates to a carpenter. So, can you guess..?Ok, check out the answer:-Sawbuck is a Slang term for the US ten dollar paper currency. The slang is derived from the Roman numeral for ten. "X". The "X" looks like the shape of a Sawbuck; a device used to hold wood in place for sawing it into pieces and so the slang formed SAW + BUCK = SAWBU...

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CORPORATE STOCK - A Layman's view

CORPORATE STOCK: It can trigger in anybody's mind that stock held in a corporate is Corporate Stock. Yes, its right.Lets check out the definition:-An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation's assets and profits. However, the claim to a company's assets and earnings of most stockholders is subordinated to the claim that the company's debtors have on its assets and earnings. Two inferences can be drawn from the above definition-- There must be an Ownership Position.AND- It must represent a claim in the Corporation's assets and profits.The above inferences conclude that Debt i.e. Debentures and Bonds do not constitute Corporate Stock, Since there is a Claim but no ownership position.So,...

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Calculate EMI - Manually

Usually while preparing Project Reports for banks, we need to calculate EMI for the proposed loan so as to frame out the loan repayment schedules. Though, there are many online calculators available, I believe its the Best when you can do it Yourself. Moving on the same lines, I found a simple formula to find out EMI, given the other particulars as detailed below:EMI = (P*r) [(1+r) ^ n /(1+r) ^ n -1]WhereP= Principal i.e. Amount of Loanr= Rate of Interest per installment period i.e. monthly, quarterly etc.n= The tenure of the loan.** These days we usually, actually mostly use spreadsheets for preparing Project Reports. Use 'PMT' function to calculate EMI and add to your productivity.P.S.: EMI payment loan are heavily tilted towards interest payments at the start and principal repayments at...

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THE RULE OF 72 - Quite Interesting

Yesterday, while surfing a book, I got something interesting to share with you..THE RULE OF 72; some of you might be knowing it but for me it was quite new and may be for most of you. So here it goes..I have Rs. 10000/- to invest into but i want to know how long it will take to get my money doubled if a rate of 6% p.a. is offered. Of course, there are many other ways to find the same, but the easiest one I have found is the 72 RULE i.e.Divide 72 with the rate of return i.e. 6% which comes out to be 72/6 = 12. So, it will take 12 full years to get my money doubled. Wait..there is one assumption, the simple one actually i.e. any part of amount is not withdrawn during the peri...

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DURABLE POWER OF ATTORNEY

A legal document that an individual to designate another person, called the Attorney-in-fact, to act on his/her behalf, even in the event the individual becomes disabled or incapacitated. An advanced directive (sometimes called a 'healthcare directive' ) combines a Living will and 'durable power of attorney' either in one document or two separate ones.The above definition includes two new terms i.e.Attorney-in-factLiving willLets see what these two terms tell us:-Attorney-in-fact: A person who holds power of attorney and therefore is legally designated to transact business and execute documents on behalf of other person.Living will: A document in which one specifies which life-prolonging measure one does and does not want to be taken if one becomes terminally ill or incapacitated.So, I guess...

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Incorporation of a Company

Steps to be taken to get a new company incorporated:Select, in order of preference, at least one suitable name upto a maximum of six names, indicative of the main objects of the company.Ensure that the name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950) by availing the services of checking name availability on the portal.Apply to the concerned RoC to ascertain the availability of name in eForm1 A by logging in to the portal. A fee of Rs. 500/- has to be paid alongside and the digital signature of the applicant proposing the company has to be attached in the form. If proposed name is not available, the user has apply for a fresh name on the same application. (HENCE, ONE NEEDS...

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VAT

VAT- Value Added Tax Persons liable to pay tax under the VAT Acts of their respective States are required to register under the Act. On registration, a VAT number, known as VRN (VAT Registration Number) in common parlance is allotted to the applicant. The following provisions are with reference to Punjab VAT Act, 2005:- In addition to the regular registration, the Act allows a person to take voluntary registration for VAT, provided his turnover is above the specified threshold. However, Casual traders and persons dealing exclusively in tax-free goods are exempted from registration. TOT: TURNOVER TAX There is a composition scheme for small traders if they are doing business within the state only and are not registered under the Central Sales Tax Act. They can get registered for TOT (Turnover...

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TAN- TAX DEDUCTION ACCOUNT NUMBER

Tax Deduction Account Number is an alphanumeric number issued to individuals who are required to deduct tax on payments made by them under the Indian Income Tax Act, 1961. The Tax deducted at Source on payments made by assessees has to be deposited with Central Government under the following number. Application for TAN An application for allotment of TAN is to be filed in Form 49B and submitted to any TIN-FC. Addresses of TIN-FCs are available at www.tin-nsdl.com. Alternatively, you can apply for TAN online at the NSDL-TIN website. No documents are required to be submitted along with the application for allotment of TAN. However, where the application is being made online, the signed acknowledgment which is generated after filling up the form should be forwarded to NSDL. Detailed guidelines...

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All About PAN

PAN - PERMANENT ACCOUNT NUMBER As per the common perception PAN is only a pre-requisite to file Income Tax Return. However, now a days, as per the guidelines of Reserve Bank of India and Income Tax Department, a number of financial transactions requires one to quote PAN. Application for PAN PAN can be applied at any of the authorised centers of UTITSL and NSDL, by filling up Form 49A. The form is available at all the centers of UTITSL and NSDL or can be downloaded from www.incometaxindia.gov.in. Alternatively, PAN can be applied by filling up an online form by visiting the website of UTITSL (www.utitsl.co.in). An identity proof and address proof of the applicant is also required to be submitted along with the duly signed form. Know your PAN PAN is generally a 10 digit alphanumeric number. For...

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