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Monday, June 13, 2011

Re: ::: vuaskari.com ::: Re: IMPORTANT INTERNSHIP FINI619 MDB TEACHER REPLIES REGARDING RATIOS AND FORMAT Must Read These.............

one more reply
Student's Message: Msg No. 482331
Subject: In case of Bank ratios

 Sir in case of bank ratios what we will consider in this formula Operating assets or operating fixed assets?

Return on Operating Assets Ratio=Earnings before Income Tax (EBIT) / Operating Assets

OR

Return on Operating Assets Ratio= Earnings before Income Tax (EBIT) / Operating Fixed Assets
Instructor's Reply:

Dear Student,

For Non banking organization Cash in hand, bank balances, inventory and bills receivables are operating assets.

For banking organizations Cash in hand, balances with treasury banks, advances, lending to financial institutions and operating fixed assets are operating assets.





On Thu, Jun 9, 2011 at 8:54 PM, MAHA SHAH <maha.shah.askari@gmail.com> wrote:
some more new mdb replies regarding ratios

Student's Message: Msg No. 482197
Subject: acid test ratio
dear sir sir i m wirting internship report on bank alfalah.unfortuantely i cant calculate acid test ratio because i can't recognize the inventory or prepayments which i will deduct form the current asset to calcute quick assets. in my previous mdb u told me to see the note no 12. i read note no 12 with full concentration but note no 12 contain only long term assets . and according to my poor knowledge for calcuting quick assets we deduct only the inventory or prepayment which are the part of current assets not long term assset form the current assets. sir i will be very very thank full to u if u kindly tell me that which current assets i have to deduct for the total current asset for calcuting current ratio.
Instructor's Reply:

Dear Student,

A bank's balance sheet is different from the balance sheet of other business forms. You won't find inventory, accounts receivable, or accounts payable. Instead, under assets, you'll see mostly loans and investments, and on the liabilities side, you'll see deposits and borrowings. 
The formula for quick ratio is current assets-inventory-prepaid expenses/current liabilities.
As banks do not have inventory therefore it cannot be subtracted. However, Prepaid expenses must be there in bank's annual reports. In balance sheet there will be a term "Advances and prepayments". Read the note given against them to know about prepaid expenses amount.


Subject: Help in Return on Operating Assets Ratio

 Kindly tell me in Return on Operating Assets Ratio we will take which formula as different websites says Net Income/ Operating assets and in books it is like this Earnings before Income Tax (EBIT) / Operating Assets

now please clearly mention what is correct formula for return on operating assets

and also we will calculate it in %age right?

Shall be very thankful to u
Instructor's Reply:
Dear Student,
Consider Earnings before interest and taxes for the calculation of this ratio.
Yes, it is calculated in %.






On Sun, Jun 5, 2011 at 8:27 AM, ADMIN MAHA <askari.finance110@gmail.com> wrote:
Subject: Quick Ratio
Dear Sir, How to calculate the "Acid Test Ratio" for the bank? what should be taken as the inventory?
Instructor's Reply:

Dear Student,
A bank's balance sheet is different from the balance sheet of other business forms. You won't find inventory, accounts receivable, or accounts payable. Instead, under assets, you'll see mostly loans and investments, and on the liabilities side, you'll see deposits and borrowings.
You will be required to subtract prepaid assets from current assets for the calculation of quick assets.

Prepaid expenses must be there in bank's annual reports. In balance sheet there will be a term "Advances and prepayments". Read the note given against them to know about prepaid expenses amount. 


Student's Message: Msg No. 479223
Subject: dividend per share
sir divedeind per share ratio the formula is divideend amount/ no of equity share sir in blance sheet where we get dividend amount
Instructor's Reply:

 

Dear Student,

You will find dividend paid amount from cashflow statement under the head of financing activities.



Student's Message: Msg No. 479915
Subject: Earning Per Share

Dear Sir,

How to calculate the EPS of the bank. i was looking at the "Notes to Financial Statement" of the bank, they have calculated by the following formula:

profit attributable to shareholders of the bank / weighted average number of ordinary shares
Instructor's Reply:
Dear Student,
EPS= Net profit/number of outstanding shares.

Student's Message: Msg No. 479938
Subject: Branch Analysis

Dear Sir,


I have need to prepare Branch Ration Analysis only or whole organization, if whole organization then where we got financial statement of National Bank of Pakistan

regards,
Instructor's Reply:

Dear Student,

Ratio analysis should not be done branch wise. It should of the whole organization. Complete annual reports of NBP are available in their website. You can easily download annual reports from their website. You can also buy their annual reports from the stock exchange then why you are asking it from the branch officials.


Student's Message: Msg No. 480168
Subject: Language of Viva

Sir what will be the language of viva
Instructor's Reply:

Dear Student,

 

The Presentation and Viva Voce session should be delivered in English.


Student's Message: Msg No. 480371
Subject: problem in ratio analysis
respected sir : i m doing internship in bank alfalah . i got balance sheet but still facing problem in ration analysis on the initial stage the information which the balance sheet of the bank shows is given below asset a. cash and balances whith tresury banks b. balances with other banks c. lending to the finacial intitutions d. investment e. advances f. fixed assets g. deffered tax h. other assets now i m to calculate the current ratio first two component are current assets but what about the third and forth components . are these components are current assets or long term assets.if i go with the bookish definations then these are long term asset. but i know that these are not completely long term asset.but it also contain some current assets. now what should i do .whether i should go with the bookish defination or i should go with my own iedas
Instructor's Reply:

Dear Student,

 

Cash and balances with treasury banks, and balances with other banks will be wholly included in the current assets. Deferred tax assets and operating fixed assets represents long term assets. You should read the Notes to the Financial Statements for the Lending to financial institutions, investments, other assets and advances in order to know whether these be included in the current or long-term assets.

Bills payable, borrowings will be wholly included in the current liabilities. The sub-ordinated loans, other liabilities and deferred tax liability represent long term liabilities. You should read the Notes to the Financial Statements for the deposits and other accounts.


Student's Message: Msg No. 480639
Subject: sales amount problem
Dear sir, I have a problem in ratio analysis. As the sales are included in many ratios but i did not confirm that what amount included in the sales. in profit and loss a/c of my bank first of all mark up\return\interest earned is given. will i use this amount as sales. Thank you.
Instructor's Reply:

Dear Student,

Yes, Mark-up/Return/Interest earned is considered as Sales of a Bank.

Student's Message: Msg No. 480611
Subject: inventory in case of bank..!!
respected sir. what should we do with ratios that involve inventory, as banks have no inventory so how we calculate ratios like acid test ratio etc. kindly guide me sir thanks.
Instructor's Reply:

Dear Student,

 

In quick/acid-test ratio you will deduct the prepayments from current assets NOT the inventory as the banks are the service-oriented organizations so they do NOT maintain inventory.

Student's Message: Msg No. 480496
Subject: working capital .. !!
respected sir, in ratio analysis, we have to calculate current ratio, also we are given working capital ratios, sir as in my knowledge these are same. so we calculate both of them?? kindly guide me sir. thanks in anticipation.
Instructor's Reply:

Dear Student,

 

All the formulas have been taught to you in the courses MGT101, FIN621 and FIN630. You are required to calculate both of these ratios. If you find any difficulty in the calculations please feel free to ask.


Student's Message: Msg No. 480479
Subject: operating assets

Dear Sir Kindly tell me which assets we take while calculating operating assets? Whether fixed assets or total assets?
Instructor's Reply:

Dear Student,

 

All assets are Operating Assets but for the purpose of Ratio Analysis the operating assets = cash and bank balances + inventory + bills receivable.


Student's Message: Msg No. 480714
Subject: pproblem of other assets
dear sir, Sir i have a confusion that in the case of other assets in balance sheet which assets are consider as current assets. The balance sheet of my bank other assets contains the folling assets. OTHER ASSETS Income / mark-up accrued in local currency Income / mark-up accrued in foreign currency Advances, deposits, advance rent and other prepayments Taxation (payments less provision) Receivable against sale of marketable securities Receivable against bancaassurance Stationery and stamps on hand Prepaid exchange risk fee Trustee fee receivable from a related party Unrealised gain on forward foreign exchange contracts Others Sir please tell me which assets are included in current assets.
Instructor's Reply:

Dear Student,

 

You should read the Notes to the Financial Statements for the Lending to financial institutions, Investments, Other Assets and advances in order to know whether these be included in the current or long-term assets


Student's Message: Msg No. 480706
Subject: question
can we give the picther the products of the company?
Instructor's Reply:

Dear Student

 

In your Internship Report you will NOT include any pictures, images, etcetera EXCEPT the scanned copies of the Financial Statements.


Student's Message: Msg No. 480883
Subject: debt
Respected sir, what particular in financial statements of bank used as debt. Thank you.
Instructor's Reply:

Dear Student,

 

Total Liabilities = Total Debt.


Student's Message: Msg No. 480882
Subject: total dividend
Respected sir, please tell me can we use (Accumulated losses) / Unappropriated profit) as total dividend. Thank you.
Instructor's Reply:

Dear Student,

 

The value of dividend is provided in the Cash Flow Statement in the third head that is financing activities.


Student's Message: Msg No. 480881
Subject: Net and operating income
Respected sir, Please tell me from the following particulars which item is used as net income and which is used as operating income. 1) (Loss)/ profit before taxation. 2) (loss)/ profit after taxation. Thank you.
Instructor's Reply:

Dear Student,

 

EBIT = operating income = Mark-up/Return/Interest expensed + Profit before taxation.

Generally, Net income = net income after tax


Student's Message: Msg No. 480879
Subject: EPS problem
Respected sir, Hope you are fine. Sir please tell me if an organisation bear loss rather than profit than how can we calculate the EPS. Thank you.
Instructor's Reply:

Dear Student,

 

In this case you will calculate the Loss per share NOT the Earnings per share ratio.


Student's Message: Msg No. 480877
Subject: EBIT problem
Dear sir, Please tell me what particular is used as the EBIT form the followings: 1) Net Mark-up / Interest Income after provisions 2) Total non-mark-up / interest income 3) (LOSS) / PROFIT BEFORE TAXATION thank you.
Instructor's Reply:

Dear Student,

EBIT = Mark-up/Return/Interest expensed + Profit before taxation.

Student's Message: Msg No. 480827
Subject: mc090404040-7
AOA: Dear sir i cannot understand about hierarchy which you give me answer. please tell me clearly that i give the hierarchy of (bank) branch or whole organization or both...?
Instructor's Reply:

Dear Student,

 

In Organizational Hierarchy chart you are required to provide the hierarchy of the branch where you have done your Internship as well as of the whole organization. You are required to draw the hierarchy of the organization where you have done your Internship in MS Word. Further in this hierarchy you are required to mention the designation of the employees only.


Student's Message: Msg No. 480824
Subject: other asset problem
Dear sir, In financial statments of my bank no guidline is provided in the regard of other assets whether they are current or long term assets. Please sir tell me what i will do in this regard. Thank you.
Instructor's Reply:

Dear Student,

If the Notes to the Financial Statements do NOT specify the time period as 3-5 years or long-term then you are required to consider these items as current.

Student's Message: Msg No. 480823
Subject: cgs problem
Dear sir, i asked you to about the problem of CGS. because in the ratio analysis we also take the gross profit margin. And the formula of gross profit margin is Gross profit= sales - cgs / sales Sir please tell me what particular in financial statment is used as CGS. Thank you.
Instructor's Reply:

Dear Student,

 

You will use the simple formula for this ratio that is Gross Profit/Sales where Net mark-up/ interest income represents gross profit of the bank.


Student's Message: Msg No. 480951
Subject: market value of share

Respected Sir, kindly tell me which market value of share we should take because the market value changes continuously day by day.
Instructor's Reply:

Dear Student,
On KSE website, there will be a link "Market information". Click on that link. There will be many sub links on that link. Click on historical data and take market price of your company from this link. Take closing price i.e. the one on 31st December for all three years.


Student's Message: Msg No. 480948
Subject: help

Dear Sir:

AOA

Thank you very much. But sir tells me where I discuss the details of these products of NBP in report. Please guide me. I think the details of products are given in the headings of NBP offerings, services or features.
And tell me According to report format where I include the products details in report and what section under I should mention.

Instructor's Reply:
Dear Student,
Mention only the names of the products and services offered by that organization. There is no need of writing descriptions and details.

Student's Message: Msg No. 481216
Subject: Long Term Loan

Respected Sir, kindly tell me if the company does not have any long term loan payable then how to calculate the Total Capitalization Ratio of the company.
Instructor's Reply:
Dear Student,
In that case it cannot be calculated. You will be required to give a note with that ratio that as Long term debt amount was not available therefore it cannot be calculated.

Student's Message: Msg No. 481156
Subject: debt problem
Respected sir, please tell me can we use borrowing as total debt. OR we must use Total debt= total liabilities. Thank you.
Instructor's Reply:
Dear Student,
Total debt=total liabilities i.e. short term as well as long term liabilities

Student's Message: Msg No. 481357
Subject: mc090404040-10
AOA: Dear sir: in report we made the analysis of SWOT, technical, theoretical, horizontal and vertical.....? because in report formate is not tell about these all analysis........
Instructor's Reply:

Dear Student,

 

You are only required to do the ratio analysis. The horizontal, vertical, industry and SWOT analyses have been removed from the Internship Report Format.


Student's Message: Msg No. 481354
Subject: mc090404040-9
AOA: Dear sir please tell me what is APA in report formate number 16.. and what is Annexes in 17 number...?
Instructor's Reply:

Dear Student,

 

The APA format is provided for the references/bibliography. The APA format specifies the guidelines regarding online resources for annexure or bibliography. You are required to follow this format for providing reference(s) in your Internship Report.

Annexure means something added at the end, esp. an appendix or supplementary document (for example: scanned copies of Financial Statements, etcetera).


Student's Message: Msg No. 481309
Subject: time interest earned
Respected sir, Please tell me if we have loss before taxation than how can we calculate the time interest earned. thank you.
Instructor's Reply:

Dear Student,

EBIT = Operating Profit = Mark-up/Return/Interest expensed + Profit before taxation will be taken in the numerator and Mark-up/Return/Interest expensed will be taken in the denominator to calculate times interest earned ratio.

Student's Message: Msg No. 481297
Subject: long term debt
Respected sir, Kindly please tell me sir how can we calculate the long term debt. Thank you.
Instructor's Reply:

Dear Student,

 

Bills payable, borrowings will be wholly included in the current liabilities. The sub-ordinated loans, other liabilities and deferred tax liability represent long term liabilities. You should read the Notes to the Financial Statements for the deposits and other accounts.

Student's Message: Msg No. 481283
Subject: Intern-ship Report
Kindly sir tell me how i can submit my intern ship report on-line?
Instructor's Reply:

Dear Student,

 

You are required to submit your internship report on VU-LMS. For this you are required to view the Semester Calendar available in Lesson 2 for the last submission date of Internship Report. The Assignment Submission tab on VU-LMS will be active 2 weeks prior to this last submission date of Internship Report.

Student's Message: Msg No. 481359
Subject: Advances
Respected Sir, Sir following are the particulars of the deposit and other accounts according to my bank financial statements. Fixed deposits Saving deposits current deposit (Non remunerative) Margin account Remunerative deposits Non remunerative deposits Sir please tell me what particular in above of these consider as current. Thank you.
Instructor's Reply:

Dear Student,


Fixed deposit                          Long term liability
saving deposit                         current liability (if no description given as long term or short term part)

Remunerative deposit               Long term liability

Non-remunerative deposit          current liability




Student's Message: Msg No. 481358
Subject: mc090400009

Dear sir.
I have done my intership in HBL.in intership report formate point 9 I can not understand.please tell me i have collect information the whole HBL or the specific branch which I done my intership.

Instructor's Reply:

Dear Student,

 

In all the parts of point 9 of the Internship Report Format you will provide the information of the whole bank and in Organizational Hierarchy chart you are required to provide the hierarchy of the branch where you have done your Internship as well as of the whole organization EXCEPT in sub-point f of point 9 of the Internship Report Format you will discuss the branch where you have or are doing your Internship.

--
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--

REGARDS

MAHA SHAH

MBA(FINANCE) 4th SEMESTER

ADMIN GIRLS

We are the ASKARIANS!!!! A Name of Quality






--

REGARDS

MAHA SHAH

MBA(FINANCE) 4th SEMESTER

ADMIN GIRLS

We are the ASKARIANS!!!! A Name of Quality



--
We say, "Be one as Pakistani Nation and grow up for Pakistan's Future". Wish you all the best. Join www.vuaskari.com,
To post to this group, send email to vuaskari_com@googlegroups.com
Visit these groups:
This (Main) Group:http://groups.google.com/group/vuaskari_com?hl=en?hl=en
MIT/MCS Group: http://groups.google.com/group/vu_askarimit?hl=en?hl=en
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Banking Group: http://groups.google.com/group/askari_banking?hl=en?hl=en
Management: https://groups.google.com/group/vuaskari_mgt?hl=en
Marketing: https://groups.google.com/group/vuaskari_mkt?hl=en
MIS Group: http://groups.google.com/group/askari_mis?hl=en
Posted by aaaa at 3:59 PM

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