DIVIDEND

DIVIDEND

Dividends are payments made by a corporate to its share holder members.  It is the portion of corporate profits paid our to stockholders.

                      When a corporate earns profit, that profit can be put in two uses:-

1. Re-invested in the business known as "Retained earnings". In that case the intrinsic or face value of share increase.
2. It can be distributed to shareholders.

Mostly business retain a portion of their earnings and pay the remainder as a dividend.

• A dividend is allocated as a fixed amount per share. Therefore, a shareholder receives a dividend in proportion to their shareholding.
• Public companies usually pay dividends on a fixed schedule but co-operatives allocate dividends according to member,s activity.
• Dividends are usually paid in the form of cash, store credits and as shares in the company.

Types of Dividends    

• Cash Dividends :- cash dividends are those paid out in currency. This is the most common method of sharing dividends among shareholders.

                                  For each share owned, a declared amount of money is distributed.

•  Stock or Scrip dividends :- Stock dividends are those paid out in the form of additional stock shares of the issuing company. They are usually issued in proportion to shares owned.

• Property Dividends :- Property dividends are those paid out in the form of assets from the issuing corporation. It may be securities of other companies owned by issuer or product & services.

                             In India, companies declaring dividend, are required to pay a corporate dividend tax in addition to the tax leived on their income.

Dividend Yield

Dividend yield tells an investor the yield he/she can except by purchasing a stock. 

            This allows a basis of comparison between other investments such as bonds, certificates of deposit etc.

                 To calculate the dividend yield , divide the annual dividend by a current stock price. Thus-

              Dividend Yield =    Annual Dividend per share / Price per share.           

GAP ANALYSIS

GAP ANALYSIS

Gap analysis is a business technique use to determine what steps needs to taken in order to move from its current state to its desired future state.

                         It consists of following steps:-

• Listing the Characteristic factors (such as attributes, competencies, performance level etc.) of the present situation.

• Listing factors needed to achieve future objectives.
• Highlighting the gaps that exist and need to be filled.   

It is also known as "need - gap analysis" and "needs assessment".

ALBERT EINSTEIN

"We owe a lot to the Indians, who taught us how to count, without which no worthwhile scientific discovery could have been made."     ALBERT EINSTEIN

हम भारतीयों के बहुत ऋणी  हैं कि उन्होंने हमे गिनना सिखाया ,
जिसके बिना हम इस दुनिया में कुछ नहीं कर सकते थे !      अल्बर्ट आइंस्टीन 

NOBLE PRIZE 2012

•  Noble prize are given in the memory of Alferd Nobel.
• It is given in six categories:-

1. Medicine
2. Chemistry
3. Physics
4. Literature
5. Economics
6. Peace

• These awards were announced in stockholm, Sweden and oslo,Norway.
• Prize money is Swedish kronur(8 million)
• British researcher John. B. Gourdon and Shinya Yamanaka of Japan won nobel prize in medicine for discovery that mature , specialized cells of the body can be reprogrammed into blank states that can become any kind of cell.  
• Serge Haroche of france and David.j.Wineland of the US won the nobel prize for work in quantum physics.
• Robert.J.Lefkowitz and Brain.K.Koboka won the nobel prize in chemistry for studies of protein receptors that let body cells sense and respond to outside signals. These are called "G-protein coupled receptors."  
• Chinese autor Mo Yan has been awarded the 2012 Nobel prize for Literature.

                              57 year old Mo Yan is the first chinese resident to win this prize. Chinese born "Gao Xingjian" was honored in 2000, but he is a french citizen.

•    The 2012 Noble Peace prize was awarded to the European Union(EU) for over six decades contributed to the peace.
• The last organisation to be given the award was Medicins sans frontiers in 1999.
• US scholars Alvin.E.Roth & Lloyd.SShapley shared the 2012 Nobel prize for Economics.

                             It is given for the theory of stable allocations and the practice of market designs work.

• Name of Nobel committee President is :- Thorbjoern Jagland.
•     

MONEY LAUNDERING

Money Laundering

Money laundering is the process of moving illegally acquired cash through financial system so that it appears to be legally acquired.

                 Dirty money is proceeds derived from criminal conduct and crminal want the money to look like it came from a legitimate source. Some of the offenses of this type are:-

• Illegal arms sales, smuggling, drug trafficking and prostitution rings.
• Insider trading, bribery and computer fraud schemes.

Money laundering has three parts:-

• Placement:- where large amount of money broken  into small amounts.
• Layering:- Movements of funds to distance from their original sources.
• Integration:- Such funds re-enter into legitimate economy.

              Then such funds are invested into real estate, luxury assets or business ventures. 

Anti Money Laundering Act

• In India , anti money laundering is controlled by the Prevention of Money Laundering Act(PMLA), 2002 which came in effect from 1st july, 2005.
• RBI, SEBI AND IRDA have been brought under the act, so all FI's are included in this act.
• The agency monitoring the AML activities in India is called Financial Intelligence Unit(FIU).

     

CABINET MINISTERS

CABINET MINISTERS

Scope                                                                          Ministers

Atomic energy, Space                                          Manmohan Singh

planning and Pensions                                              

Defence                                                                 A.K Antony

Agriculture                                                           Sharad pawar

Finance                                                                 P.Chidambaram

External Affairs                                                    Salman Khursid

Home Affairs                                                       Sushil Ku. Shinde

Communication & IT                                          Kapil Sibbal

Human Resource Development                            Pallam raju

Law and Justice                                                   Ashwani kumar

Civil Aviation                                                       Ajit Singh

Railway                                                                Pawan Bansal

Science & Tech. , Earth                                       Jaipal Reddy

science        

Industry, Commerce &

Textiles                                                                 Anand Sharma

Mines                                                                    Dinsha Patel

Petroleum & Natural Gas                                     Veerapa Moily

Rural Development                                               Jairam Ramesh

Urban Development &

Parliamentary Affairs                                            Kamal Nath

Water Sources                                                        Harish Rawat

Overseas Indian Affairs                                         Vayalar Ravi

Health & Family welfare                                    Ghulam Nabi Azad

Heavy Industries & 

Public Enterprises                                                 Prafful patel

Road Transport & highways                                 C.P. joshi

Steel                                                                    Beni prasad verma

Minority Affairs                                                    K.Rahman khan

Panchayati Raj & 

Tribal Affairs                                                       Kishore chandra

New and Renewable Energy                               Farroq Abdula

Housing & Urban

Poverty Alleviation                                               Ajay makan

Information & Broadcasting                                 Manish Tiwari

Tourism                                                                 Chiranjeevi

Corporate Affairs                                                  Sachin Pilot

Power                                                                    J.A. Sindhiya

Environment & Forests                                     Jayanthi Natrajan

Youth Affairs & Sports                                         Jitendra Singh

                 

DEPOSITORY RECEIPTS

Depository Receipts(DR) are a type of negotiable financial security, representing a security usually in the form of equity, issued by a foreign publicly listed company.
                     These DR's are traded on local stock exchange though the foreign public listed company is not traded on the local exchange.

• In general, DR's are physical certificates which allow investors to hold share in equity of other countries.

Creation of DR's  :- when a foreighn company wants to list its securities on another country,s stock exchange , it can do this through DR's Mode.
              The shares of the foreign company, which the DR present , are first of all delivered and deposited with the custodian bank. On receipt of the delivery issues the custodian bank creates DR's and issues the same to investors in the country., where the DR,s are inteded to be listed. These DR's are then listed and traded in the local stock exchanges of that country.

Indian Depository Receipt  :-DR's issued by India is known as Indian Depository Receipt(IDR).
                 foreign companies who wish to raise capital in India can do by issuing IDR.
             Thus IDR's will be transferable securities to be listed on Indian stock Exchange in the form of DR's created by a domestic depositories in India against the underlying equity shares of the issuing company which is incorporated outside India(foreign company).

• NRI & FII have not been allowed to purchase IDR's without special permission through RBI.

    

MOTHER THE ONLY GOD ON EARTH

TOUCHING STORY:

My mom only had one eye. I hated her… She was such an embarrassment. She cooked for students and teachers to support the family.
There was this one day during elementary school where my mom came to say hello to me. I was so embarrassed.
How could she do this to me? I ignored her, threw her a hateful look and ran out. The next day at school one of my classmates said, ‘EEEE, your mo

m only has one eye!’
I wanted to bury myself. I also wanted my mom to just disappear. I confronted her that day and said, ‘ If you’re only gonna make me a laughing stock, why don’t you just die?’
My mom did not respond… I didn’t even stop to think for a second about what I had said, because I was full of anger. I was oblivious to her feelings.
I wanted out of that house, and have nothing to do with her. So I studied real hard, got a chance to go abroad to study.
Then, I got married. I bought a house of my own. I had kids of my own. I was happy with my life, my kids and the comforts. Then one day, my Mother came to visit me. She hadn’t seen me in years and she didn’t even meet her grandchildren.
When she stood by the door, my children laughed at her, and I yelled at her for coming over uninvited. I screamed at her, ‘How dare you come to my house and scare my children!’ GET OUT OFHERE! NOW!!!’
And to this, my mother quietly answered, ‘Oh, I’m so sorry. I may have gotten the wrong address,’ and she disappeared out of sight.
One day, a letter regarding a school reunion came to my house. So I lied to my wife that I was going on a business trip. After there union, I went to the old shack just out of curiosity.
My neighbours said that she died. I did not shed a single tear. They handed me a letter that she had wanted me to have.
‘My dearest son,
I think of you all the time. I’m sorry that I came to your house and scared your children.
I was so glad when I heard you were coming for the reunion. But I may not be able to even get out of bed to see you. I’m sorry that I was a constant embarrassment to you when you were growing up.
You see……..when you were very little, you got into an accident, and lost your eye. As a mother, I couldn’t stand watching you having to grow up with one eye. So I gave you mine.
I was so proud of my son who was seeing a whole new world for me, in my place, with that eye.
With all my love to you,
Your mother.’

MORAL LESSON:
Always LOVE your parents. They are a blessing to you.

NOTE:
We only have one mom, so love her, you will come to cry when she's gone.

GAAR

GAAR

GAAR(General Anti Avoidance Rule):- is a set of general rules to minimise the avoidance of Tax.

          Mainly there are four methods to reduce tax liabilty: Tax Evation, Tax Avoidance, Tax Mitigation, Tax planning.

   So to reduce 2nd category i.e. Tax avoidance, general anti- avoidance rules(GAAR) are applied. This is done to raise the Tax-collection by governments.

Introduction of GAAR in India  

                       It is introduced in 12 august 2009 with Direct Tax Code Bill(DTC). However owing to negative publicity and pressure it is postponed to 2013.

       The p.m. Manmohan singh set an expert committee(shome committee) to review the guidance of GAAR. The latest reports indicates that this will be postponed for 3 years means to 2016-2017.

SHARE CAPITAL

SHARE CAPITAL

A company's share capital be defined or categorized in following four ways:-

• Authorized capital :- This is the maximum amount of capital that can be raised by the company.                                                                    It is fixed in the Memorandum of an association and the Articles of a company as required by the company's act. It is also known as NOMINAL CAPITAL. 
• Issued Capital:- This is the amount of capital which company intends to raise at a given point of time.
• Subscribed Capital  :- This is the capital which has actually been subscribed by individuals or firm.
• Paid up Capital :-This is the amount of capital that has been called and received against the subscribed capital.

BEAUTIFUL FLOWERS