Financial Risk Manager

Ways of Financial and Risk Management

CFO Required
Tuesday, March 31, 2009

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A renowned textile company requires a competent Chief Financial Officer. Details are as under;

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posted @ 9:16 AM, ,

Economic and Business Updates - March 23 to March 29, 2009
Monday, March 30, 2009

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Ref: Dawan dated 30-03-2009

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posted @ 12:46 PM, ,

Accounting Treatment of Mobile Phones and Depreciation
Friday, March 27, 2009

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An Asset is a resource:

Further, Property, Plant and Equipment are tangible items that:

If mobile phones are purchsed for the purpose mentioned above then these would be catagorised as Equipment or specifically as mobile phones as well if the its figure is very material with reference to assets of the company.


Depreciation is the systematic allocation of the depreciabale amount of an asset over its useful life. So if the company has intention to separately catagorised then rate should be charged according to their useful life otherwise if these are shown under Equipment then same rate that equipments are being charged as depreciation.

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posted @ 1:37 PM, ,

Nostro and Vostro Account

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Literal meaning of Nostro and Vostro is “ours and yours”. Speaking from the bank's point-of-view: A nostro is our account of our money, held by you and vostro is our account of your money, held by us.

Nostro Account: is a foreign currency current account maintained with another bank. The account is used to receive and pay currency assets and liabilities denominated in the currency of the country in which the bank is resident.

Vostro Account: is a local currency account maintained by a local bank for a foreign (correspondent) bank. For the foreign bank it is a nostro account.

For example: National Bank does some transactions (loans, foreign exchange, etc.) in US$, but banks in Pakistan will only handle payments in Pak Rs. So NBP opens a US$ account at foreign bank Citibank New York, USA, and instructs all counter-parties to settle transactions in US$ at "account no.123456 in name of NBP, at Citibank New York, USA. NBP maintains its own records of that account, for reconciliation; this is its nostro account. Citibank New York, USA record of the same account is the vostro account.

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posted @ 9:54 AM, ,

Aging
Thursday, March 26, 2009

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Aging means to identify and make catagories of companys receivables / payables into desired periods like day, months, or years.

For example: if a companys total receivable is amounting to Rs.100.000 Million. We can make aging of the said receivable as follows

Purpose of doing aging is to take actions to recover the receivables and for accounting point of view to make provision of bad debts , etc

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posted @ 5:44 PM, ,

Bangladesh - Economic Overview

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Today is the 38th Independence and National Day of People's Republic of Bangladesh. Some economic facts of the country is as under;

The economy has grown 5-6% per year since 1996 despite inefficient state-owned enterprises, delays in exploiting natural gas resources, insufficient power supplies, and slow implementation of economic reforms.

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posted @ 10:27 AM, ,

Cost of Capital

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As for as the paper of Business Finance Decision is concerned this topice is very important. So every student must has a sound knowledge of its concept and components.Cost of Finance is minimum rate of return that a firm must earn on its investment for the market value of the firm to remain unchanged.

Sources of Finances:

Finance required for investing purpose may be from one or combination of following sources;

Weighted Average Cost of Capital:(WACC) Capital is the combination of different components (sources) and cost of each component is called specific cost. When these costs are combined to arrive at overall cost of capital, it is referred to as Weighted Average Cost of Capital.Component of Cost of Capital:


In simple words, WACC is the combination of cost of equity and cost of debts.

Cost of Debt: is the after tax cost of long term funds through financing and

Cost of Equity: is the discount rate that equates the present value of all expected future cash dividends per share with the net proceeds of the sale of a share.

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posted @ 9:57 AM, ,

Difference between FATR and FIM
Wednesday, March 25, 2009

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Most of the people are confused with the financing facilities like Finance againt Trust Receipt (FATR) and Finance against Imported Merchandise (FIM). Actually these two facilities are available to cover and retire the LC facility. Brief and comprehensive nature of these facilities are as under;

Letter Of Credit-Sight
Finance Against Trust Receipt-Transit

Finance Against Imported Merchandise

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posted @ 9:15 PM, ,

Job in APSCO

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Asia Pacific Space Cooperation Organization (APSCO) is looking for following posts based in Beijing, China.
  1. Director General (Administration and Finance)
  2. Director General (External Relations and Legal affairs)
  3. Director General (Education and training and database)
  4. Director General (Strategic planning and program management)

For above post age limit is under55 years and salary package is upto US$66,500/- pa

  1. Senior Assistant (Administration and Finance)
  2. Senior Assistant (External Relations and Legal affairs)
  3. Senior Assistant (Education and training and database)
  4. Senior Assistant (Strategic planning and program management)

For above post age limit is under45 years and salary package is upto US$57,500/- pa

Interested candidates should send their application by email or for further details visit here!

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posted @ 9:08 AM, ,

Dreams Come True
Tuesday, March 24, 2009

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Everyone is interested to spend his spare time at place where he can enjoy the most and avails optimum utilization of his funds. In today’s world there are a lot of places available. There are different ways and recreational activities present to choose as mode of enjoyment. One of the best ways to have fun is to go to music concert or gala.

No one can find a best place except Mari Gras at Universal studio Orlando. The ultimate street party continues every Saturday night, through April 18. In addition, each week the Mardi Gras 2009 Concert Series showcases some of the world's hottest musical performers, including American Idol winner Kelly Clarkson, Grammy Award-winning rapper Nelly and Billboard Chart-topper Ne-Yo.

It would be great if you would spend the whole day around Islands of Adventure and Universal Studios Park before heading to the Mardi Gras Celebration at the Universal Studio Park. Visit Orlando Fun Tickets

Universal Studios tickets are very popular for the Orlando vacationers who are looking to experience some of the fastest and most exciting rides in Orlando.

You can save time and money with discount Universal Studios tickets! By buying ahead of time you can avoid the long ticket lines, and you can save money that can go towards other aspects of your vacation! There are many different types of admission tickets available, but they recommend a multi-day ticket for you to take advantage of all the fun that awaits you at both Universal Studios and Islands of Adventure, at The Universal Orlando Resort. Universal Studios and Islands of Adventure are very similar theme parks, but both parks offer completely unique and different experiences.

Therefore, I invite everybody to plan and visit Universal Studio Madri Gras and see what they have for you.

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posted @ 6:09 PM, ,

Foreign Currency Hedging

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Query from abid younas:

"If a company imports products through open account method (without having a letter of credit) or through contructual imports. What are the hedging instruments available to the company for foreign currency transactions since all of you are aware about exchange rate fluctuations in our country."

Comment:

Since SBP has temporarily restricted the farward booking of imports so that company has to pay at the spot rate prevailing at the time of getting documents and has to carry the risk of exchange rate fluctuation.

However, in normal circumstances Forward Rate Booking and Currency Swap Transaction would be avaialbe to hedge the imports without carrying the risk of exchange rate fluctuation.

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posted @ 1:46 PM, ,

Best Web Hosting

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A web hosting service is a type of Internet hosting service that allows individuals and organizations to provide their own website accessible via the World Wide Web. You would found a number of Web hosts companies that provide space on a server they own for use by their clients as well as providing Internet connectivity, typically in a data center.

Among all Web Hosting Geeks are the best – they offer best of the web hosts anywhere. Top 10 Web Hosting - Best Web Hosts (2009) and you will find an independent review of top 10 web hosting providers. Cheap professional web hosting services. What is more, you can rate and review your own web hosting services you find there. That will also help other users like you.

Explore the site and see what all they are offering and how. Web hosts are featured on front page and are also listed category wise on the side bar. There are sufficient accompanying details to give an idea of what one may be buying. You can find at the websith more details of web hosting instructions, web hosting guide, how to get best web services, how to make money with the web hosting. After reviwing all you would find that you got right what you are looking for. I personally liked Inmotion Review that I found there.

Web Hosting Geeks is users’ friendly site. Visit it and see what they have for you.

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posted @ 12:21 PM, ,

Difference between Discount Rate and Interest Rate
Saturday, March 21, 2009

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Discount Rate means the minimum rate of return to be paid by recipient of financing facilities from state bank of Pakistan for meeting temporary liquidity shortage. These days discount rate has been increased upto 15 % p.a. (Source: BPRD Circular # 14 of 2008). In simple words it is the rate that is used to discount the bill or receivalbe of the party.

Whereas Interest Rate means A rate which is charged or paid for the use of money. An interest rate is often expressed as an annual percentage of the principal. It is calculated by dividing the amount of interest by the amount of principal. Interest rates often change as a result of inflation and Federal Reserve Policies. These days local currency financing (lease or short/long term) cost KIBOR + 2.50 bps to 5.00 bps.

Normally the term used for lease and borrowing is interest rate rather than discount rate.

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posted @ 10:25 AM, ,

Cash Flow Statement Vs. Profit and Loss Account
Friday, March 20, 2009

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Para 4 of International Accounting Standard IAS-7 (Cash Flow Statement) states that;

To access the viability of poposed Capital Expenditure Projects, a cash flow statement is better than profit and loss account because it enables users to evaluate the changes in net assets of an entity, its financial structure ( including its liquidity and solvency) and develop models to assess and compare the present value of the future cash flows of different periods because it eliminates the effects of using different accounting treatments for the same transaction and event.

In simple words Profit and Loss accounts present the picture after all cash and on cash items adjustments whereas Cash Flow statements tells cash impact that is very important to assesst the viability of proposed capital expenditure

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posted @ 4:29 PM, ,

Cash Payment on Purchase of Prepaid Cards

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Section 21(I) states that;
Any expenditure for a transaction, paid or payable under a single account head which, in aggregate, exceeds fifty thousand rupees, made other than by a crossed cheque drawn on a bank or by crossed bank draft or crossed pay order or any other crossed banking instrument showing transfer of amount from the business bank account of the taxpayer would be inadmissible:
Provided that online transfer of payment from the business account of the payer to the business account of payee as well as payments through credit card shall be treated as transactions through the banking channel, subject to the condition that such transactions are verifiable from the bank statements of the respective payer and the payee:
Provided further that this clause shall not apply in the case of
(a) expenditures not exceeding ten thousand rupees;
(b) expenditures on account of

In the context of above provision of income tax while making payment of Rs.200,000/- to a single party you are required to make payment through cross cheque and further witholding tax is also required to be deducted from it subject to non-availability of exemption certificate, if any.

However we can make plea that its impossible to purchase prepaid cards from one vendor therefore you have to make payments in cash as there are a lot of vendors involved.

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posted @ 3:14 PM, ,

Global Economic Crisis Explained in Simple Analogy

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Phajja is the proprietor of a Siri-Paya and Nehari Shop in Lahore. Sales are low and, in order to increase them, he comes up with a plan to allow his customers to eat now and pay later. He keeps track of the meals consumed on a ledger. Word gets around and as a result increasing numbers of customers flock to Phajja's shop. Phajja's suppliers are delighted and are very willing to sell more and more raw materials for the meals he prepares. Phajja shows them his ledger of receivables and they extend him credit.

A young and dynamic customer service consultant at the local bank recognizes these customer debts as valuable future assets and gives Phajja a credit line and then increases Phajja's borrowing limit. Taking advantage of his customers' freedom from immediate payment constraints, Phajja jacks up the prices of his Nehari and Siri-Paye. Customers dont mind as they are not required to pay on the spot. Sales volume increases massively; Banks and suppliers lend more; Phajjaopens more outlets. He sees no reason for undue concern since he has the debts of the customers as collateral. At the bank's corporate headquarters, expert bankers recognize Phajja's customer loans as assets and transform these customer assets into BONDS. These negotiable instruments are given exotic names suchas SIRI-BOND, PAYA-BOND, MAGHAZ-BOND AND BONG-BOND an so on.These securities are then listed on the Stock Exchange and traded on markets worldwide. No one really understands what the names mean and how the securities are guaranteed but, nevertheless, as their prices continuously climb, the securities become top-selling items.


One day, although the prices are still climbing, a credit risk manager of the bank decides that the time has come to demand payment of one of the debts incurred by Phajja. Phajja, in turn, asks his clients to pay up. One by one they refuse; the clients cannot pay back the debts. Phajja refuses to serve them any more. The clients stop coming. Phajja is really screwed now. He cannot fulfill his loan obligationsand therefore claims bankruptcy. All Bonds drop in price by between 80% to 95%. The suppliers of Phajja, having granted generous payment due dates and having invested in the securities are faced with similar problems. The meat supplier defaults on payment to the sheep and cattle supplier and claims bankruptcy. The atta supplier is taken over by a competitor; Phajja lays off the cook and staff. Bankruptcies soar, unemployment mushrooms.

The bank that lent the money in the first place is set to collapse. It is saved by the Government following dramatic round-the-clock consultations by leaders from the governing political parties with Phajja commuting back and forth in his Executive jet and Mercedes 500SEL, brokering the deal.The funds required to save the economic collapse are obtained by a tax levied on the citizens, most of whom do not eat Nehari or Siri-paye.

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posted @ 10:33 AM, ,

My City - the City of Eight Bazzars
Thursday, March 19, 2009

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The growth of Fasilabad has far exceeded the pace at which the city can support its inhabitants. The result is that city is facing problems in providing basic amenities to its citizens. Largely, the burden of solving them falls on municipal authorities. These problems are exacerbated once the civic authorities (and other city development agencies) do not have funds, will and expertise to do that. Inhabitants of only 100 years old city are suffering mainly due to quantifiable deficiencies.

In 1896, a new settlement was founded by Lieutenant Government Punjab, Sir James Lyall, in the area known as Sandal Bar. The plan of this habitat was prepared on the pattern of British flag by Sir Ganga Ram, a civil engineer, town planner and renowned philanthropist. The construction of eight bazaars and adjoining colonies was completed in 1902. There used to be sweet water well and an old `bargad’ tree in the centre where ghanta ghar was erected in 1918.

People of the city played an important role in Pakistan Movement. Quaid-i-Azam visited the `heart of Pakistan,’ as he called it, when annual session of Muslim league was held in the city. Over 100,000 Muslims of area welcomed the Quaid on November 17, 1942 and presented him rupees 500.00 in a reception held at Dhobi Ghat

Lyallpur, named after Sir James Lyall was initially called Pakki Mari. The name was changed to Fasilabad by General Zia ul Haq on the recommendation of a local photographer Aziz. Era of industrialization started in 1930 and Fasilabad was declared as an industrial zone in 1955. Earlier, complexion of Sandal Bar area changed with the excavation of Lower Canal originating from khanki in 1892. Presently, this `Manchester of Pakistan’ has one of the biggest and best Yarn Markets in the world. Fasilabad has grown the second biggest industrial city in the country after Karachi.

The world is becoming more urban as people are moving to cities in search of employment, educational opportunities and high standard of living. Population growth in Fasilabad has been very rapid. In 1947, the biggest of all the Kachi abadies in the country came up in the city that was later converted into Sir Syed Town and other residential colonies. Jinnah colony, Ghulam Muhammad Abad, People Colony, Afghanabad, Nazimabad and Ayub Colony came into existence in first 10-15 years after the independence. This human settlement of only 9191 people in 1901 (first census) is now home to three millions. The municipal area of the city has expanded up to 45 square Kilometres.

One of the main problems facing the city is congestion: in open spaces, public transport, housing, roads and streets. Presence of Goods Forwarding Agencies and oil tankers’ `addas’, Iron Market, Sabzi Mandi and numerous industrial units inside the city has adversely affected the cityscape. The administration has not been able to shift them out despite recommendations in Fasilabad Master Plan and complaints by the concerned citizens. Presence of these agencies in the city, particularly in the areas from Chowk Ghumti to old municipality office on Circular Road, Kachary Bazaar and Railway godown have made the lives of the citizens difficult. Though there is a ban on the entry of trucks and heavy vehicles between 7 AM to 8 PM under police act 23 but still much of heavy traffic can be seen in the city where a fleet of more than 52000 donkey carts is also playing. By the way, donkey carts have been banned to go downtown recently. An owner of a cart told that he earns between rupees 500 to 1300 daily. “The poor perform most of the manual labour in this rich city — which would be paralysed without its rehri walas. Their children work in life and health threatening situations: on power looms, kilns and in carpet centres. They live without any civic facilities,” he says.

Eight bazaars are the centres of trade and always bustling with activities. They are over crowded and full of encroachments. The shopkeepers and cloth merchants throw all the packing material — plastic and paper wrappers and other crap that cannot be sold — in front of their shops that are promptly lifted by children with large sacks on their shoulders roaming about in the markets for `raddi’ collection. A shopkeeper in Bhawana Bazaar told, “any thing that is not cleared by them stays there because sanitary workers of Fasilabad (FMC), responsible for keeping the city clean, do not perform their duties.” The city is divided in two sanitary zones each headed by separate health officer having an army of sanitary workers and inspectors on their roll. Thanks to FMC, even public parks are not being cleaned. “In an industrial city like ours, they (the planners) should look at every thing including waste as a resource and provide incentives for recycle business,” he says.

Punjab Government has banned the manufacturing and uses of polythene shopper bags but how seriously this ban has been taken can be seen in Fasilabad. One finds them every where. “The polythene bags along with other industrial effluents are causing soil pollution when they reach the fields being irrigated by Rakh Branch Canal” informed an official from Irrigation Department.

Green spaces and vegetation covers — so important for ecological balance — in the city are decreasing. The `green belts’ in front of the houses, particularly in Madina Town and People Colony have been turned into filth depots because people deposit their domestic waste out side their houses and no body comes to lift it or are being used for parking. Gulistan colony, Shamsabad, Ghulam Muhammad Abad and Fateh Abad are other neglected and adversely effected areas. One can see, smell, hear and even taste the pollution in the city.

Municipal bodies, city development agencies and the traffic police seem to be at war with each other instead of jointly serving the tax payers. Muazam Ali, a resident of People Colony complains, “what is our fault if FMC or traffic police fail to pay the electric bills? WAPDA disconnects the supply to the street lights and newly installed traffic signal system. We suffer in the process.” And, “WASA alone needs rupees 3392 millions to provide full fledged sewerage facilities for the people of Fasilabad by the end of year 2000,” informed an official of WASA during a briefing to a foreign delegation.

There is no single authority to coordinate and oversee the growth and development in the city that was laid out under the concept of radical planning with clear zoning of different land uses. People now have converted their houses into industrial units. The Fasilabad development authority (FDA) has been lying useless since 1982 for the want of funds'. The Director General has pointed out, in case it had escaped the public notice, that the FDA with many officers and no assignment should be downsized. On the other hand, FDA has decided to sell its 470 residential and commercial plots and other assets to over come its financial crises. Naturally, thefinancial crises’ are for the salaries of the FDA staff. What else!

The Agricultural University (established as college in 1906), Punjab Research Institute of Agriculture and Biology, National institute of Biotechnology and Genetic Engineering, National Institute of Fertilizer, Forest Research Institute, Textile Engineering College, Punjab Medical College, Government Degree college –where I participated in declamation contest in 1972 — and other educational institutions have played very important role in spreading awareness and education in the country. The government has promised to open an other university as well. But, sadly, “thousands of children in the city do not get the see the school, though. They are engaged in various forms of labour to earn for their living,” claims a socialite Muhammad Ijaz who is working to end this servitude in collaboration with ILO and other agencies.

The problems of Fasilabad are specific and need specific solutions. FMC with its small annual budget needs to improve the services, which profoundly affect the daily lives and well being of the people. Requirement: promoting democratic rule, exercising public authority and using public resources in all public institution at the levels in a manner that is conducive to good governance.

Cross Posted from Light Within

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posted @ 9:41 PM, ,

Good Suggestion for Cost Cutting

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Boss in meeting:

Boss asked from subordinates:

All Subordinates raised their hands and said together:

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posted @ 2:01 PM, ,

Job in Dubai

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A leading food stuff company is Dubai is looking for the following:
ACCOUNTANT:
Candidates should be Graduate/Postgraduate with CA (Inter) having at least 7-8 years experience


DATA ENTRY OPERATORS:
Candidates should have a Degree in Accounts with experience of 3-4 years & Chartered Accountancy Firm

Interested candidates may send their CV to; here!

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posted @ 12:35 PM, ,

Accounting entry for the Customer Account

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Query from Zafar:

We are an export base firm. One of our customer declared himsel bankrupt and State Bank had asked us to route foreign currency through SBP from our own resources. We'll have to transact the said amount through our own foreign currency account. What would be the accounting entry for the Customer Account ?

Accounting Treatment:

There is no relation of routing foreign currency from your own source with the receivable balance of the party. Both are separte matters. In first transaction your own money would come back to your own account. SBP just wants you to show a foreign proceed whether through outside or local in it allows.

As for as party balance is concerned, if management is of the view that export proceed will not come then you have to write off the balance and charge it to profit and loss account.

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posted @ 11:37 AM, ,

Best Accountants Group

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At the start of my professional career, one of my friends told me to join an accounts related group to stay updated with major developments in ever expanding accounting field.s At that time I didn't have such information about groups but I visited yahoogroups and found Professional Accountants Forum - founded in Jan 29, 2003.

The aim of the group is to provide a platform to communicate and exchange views / information on matters of professional interest, conduct professional development programs, enhance economic knowledge, help students, co-ordinate with other forums, sharing research work and much more.

Being there for some time now, I recommend every body to join this one of the oldest and best groups among all. That has been the best place for me to share knowledge and interact with other. I have already met some wonderful folks there. My message for moderator of this group, "Keep it up man... You are the best."

Click here! to visit and join. I invite everybody to comment over the services of this group that it incurred during last six years.

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posted @ 9:58 AM, ,

Top 25 Companies for 2006
Wednesday, March 18, 2009

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KSE top 25 companies for 2006 are:
  1. Unilever Pakistan,
  2. Siemens (Pakistan) Engineering,
  3. Rafhan Maize Products,
  4. Oil & Gas Development Company,
  5. Lakson Tobacco Company,
  6. International Industries Limited,
  7. Arif Habib Securities Limited,
  8. Indus Motor Limited,
  9. Engro Chemical Pakistan Limited,
  10. Clariant Pakistan Limited,
  11. First National Equities Limited,
  12. Pakistan Cables Limited,
  13. Unilever Pakistan Foods Limited,
  14. Colgate-Palmolive (Pakistan) Limited,
  15. Fauji Fertiliser Company Limited,
  16. Pakistan State Oil Company Limited,
  17. Security Papers Limited,
  18. Dawood Hercules Chemicals Limited,
  19. Ferozsons Laboratories Limited,
  20. Shell Pakistan Limited,
  21. Al Ghazi Tractors Limited,
  22. Pakistan Petroleum Limited,
  23. Pakistan Premier Fund Limited,
  24. Atlas Honda Limited and
  25. IGI Insurance Limited.

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posted @ 9:50 AM, ,

Economic and Business Updates - March 09 to March 15, 2009
Monday, March 16, 2009

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Ref: Dawn - Economic and business review dated 16-03-2009

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posted @ 1:04 PM, ,

Is Revaluation Surplus part of Equity?
Saturday, March 14, 2009

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Revaluation reserves will remain part of the equity for first three years only, from the date of asset revaluation, during which time the borrower will strengthen its equity base to enable it to avail facilities without the benefit of revaluation reserves.

However, if a borrower gets revaluation during the three years period, the borrower will be allowed the benefit from fresh revaluation, to the extent of increase in revaluation reserves, but restricting the benefit of such incremental value to 3 years only.


Similarly, if after 3 years, the borrower again gets revaluation of the assets with resultant addition in their value, the benefit of such revaluation may also be allowed for the next 3 years, again to the extent of increase in revaluation reserves.


Ref: Prudential Regulation issued by SBP

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posted @ 2:20 PM, ,

Export Finance Scheme
Friday, March 13, 2009

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Export Finance Scheme (EFS) is a concessionary finance scheme available only to exporters of eligible commodities. Rate of finance is 7.5%. it’s a short term running finance type of facility available in two parts.

Facility is available only to exporters. Details are available here!.

Click here! to get not only details of EFS but Other Long Term facilities are also available there.

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posted @ 12:16 PM, ,

Last date of Advance Income Tax
Thursday, March 12, 2009

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Last Date is 15th March, 2009
Individuals, Association of persons and companies are required to pay quarterly installment of advance income tax. Details are
Individuals and Association of persons:
are liable to pay advance tax for the current year in 4 installments

Companies (other than banking companies):

are liable to pay advance tax for the current year in 4 installments

Ref: Income Tax Ordinance, 2001, FBR

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posted @ 2:16 PM, ,

Long Term Financing Facility (LTFF) for Second Hand Machinery

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State Bank of Pakistan has further ameneded LTFF Scheme vide SMEFD Circular Letter No. 03 of 2009. Salient features are
Second hand plant & machinery to be used in the eligible sectors / sub-sectors of LTFF Scheme shall also be eligible for financing under the Scheme subject to following terms & conditions;
  1. Only imported second hand machinery not more than three years old will qualify for financing under the Scheme.
  2. Second hand machinery purchased from local suppliers will not qualify under the Scheme.
  3. Further, fixed term loans extended by banks/DFIs against second hand imported machinery prior to the issuance of this circular will not be eligible for refinance.
  4. The useful life of such machinery should be more than the period of loan itself.
  5. The borrowers concerned should submit a report from PBA’s approved surveyors (acceptable to bank/DFI concerned) with regard to confirmation that machinery is in order and its useful life is more than the period of loan itself.
  6. Banks / DFIs can avail refinance for a maximum period of three years, to the extent of value of such machinery determined by the approved surveyor; or original cost less accumulated depreciation @ 10% p.a., which-ever is lower.
  7. LCs established from the date of this circular to December 31, 2009 shall be eligible for refinancing from SBP.

To see the circular click here!

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posted @ 10:08 AM, ,

Business Development Manager Brand Protection
Wednesday, March 11, 2009

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A Swiss Company is the leading global provider for integrated security solutions for banknotes, value documents and other products. Company currently holds a dominant market share globally in security printing inks for banknotes held through a continuous process of development and innovation.

Company headquarters, laboratories and primary high security manufacturing site is situated near Lausanne with offices/factories in 26 locations across continents.

Company Pakistan (Pvt) Ltd was established in 1995 as a joint venture and operates a facility in Karachi for producing security inks and anti counterfeit solutions. Company in Pakistan set up a unit in Karachi for developing security solutions and producing security labels which came on stream in Sep 2007.

Job Profile

This is a senior level job reporting to Operations Director who is the overall in charge of this business as well as head of operations for security inks manufacture. Operations Directors reports to the Chief Executive.

The job holder will be part of a team with the responsibility to design, develop and implement marketing strategy and plans for this business. 2008 was the first full year of operations with turnover of Rs 35m which is not representative of the potential. 2006 estimate of worldwide counterfeits was US$ 50 billion. No such estimate is available for Pakistan but the potential appears to be significant.

Pay Package:
Rs.100/125k per month cash. Bonus linked to business targets. Car 1300 cc under loan scheme with maintenance allowance. Medical, Provident Fund, Gratuity.

Preference:
MBA Marketing from a reputable local/foreign university. Experience 3 to 5 years in Institutional Selling.
Send you application at here!

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posted @ 11:23 AM, ,

Economic and Business Updates - March 02 to March 08, 2009
Monday, March 9, 2009

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Ref: Dawn - Business and Economic update dated 09-03-09

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posted @ 11:07 AM, ,

Latest Finance related Jobs

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Bank Auditor:
Credit Manager:
Manager Accounts:
Chief Financial Officer:

Chief Financial Officer: (Oversease employment)

Ref: Dawn dated March 08, 2009

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posted @ 9:51 AM, ,

SBP Policy for Opening of Overseas Office
Saturday, March 7, 2009

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Summary of the BPRD Circular No. 05 of 2009 issued by State Bank of Pakistan is that;
Banks are required to include / appoint following personnels for overseas operations in branch/subsidiary mode.

Click here! to see details of the circular.

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posted @ 9:41 AM, ,

New Name of Saudi Pak Commercial Bank

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Special business resolution is going to pass in 15th Annual General Meeting of share holders that is going to be held on Monday, March 30, 2009 that

"The name of the company be changed from Saudi Pak Commercial Bank Limited to SILKBANK LIMITED".

Every body is invited to comment that why owners of the banks are going to change such name of the banks that shows from its name a Pakistani or Muslim Bank? Yes you got right Muslim Commercial Bank has already changed its name as MCB Bank Limited.

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posted @ 9:19 AM, ,

How To Easily ‘Zip’ Files In Windows XP and Vista
Friday, March 6, 2009

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If you are running Windows XP or Vista, you don't need a Zip program such as WinZip anymore. You simply select the files or folders you want to zip, right-click and, from the pop-up menu, choose Send To then Compressed (zipped) Folder. This will create a zipped folder in the same location as the files.
Also, if you need to email this zipped file, simply right-click on the file, choose Send To, Mail Recipient and the zipped file will open already attached to a new email.

One of the best features of Compressed Folders in Windows is that to unzip them you open them just like any other folder by double-clicking or right clicking it. You can then open, copy, cut, move, paste, drag, drop, rename or any other function you would do with files in a normal folder. You can do all of this within the compressed folder, or you can extract the files from the compressed folder simply by using cut/copy/paste or right-click and choose Extract All.

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posted @ 12:26 PM, ,

Seminar On IFRS 7 and Changes in IAS 1
Thursday, March 5, 2009

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The Northern Regional Committee of Institute of Chartered Accountants of Pakistan (ICAP) has organized the seminar for its members to get acquainted with the disclosure requirements of IFRS 7 (Financial Instrument: Disclosures) and changes in IAS 1 (Presentation of Financial Statements).

Date / Day : March 11, 2009 – Wednesday

Venue : ICAP House, West Wood Colony, Thokar Niaz Baig Lahore

Schedule & Presentation :

Presentation by: Mr. Muhammad Maqbool FCA

CPD Credit : 3 Hours

Fee :

Registration:

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posted @ 9:46 AM, ,

Finance Jobs in IBA
Wednesday, March 4, 2009

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IBA invites application from dynamic, qualified and career oriented individuals for the following finance position:

Assistant Finance Manager and Accounts:

Finance Executive:

Age limit: 25-40 years

Other Qualities:

Send your appliation / CV with latest passport size photograph latest by March 15, 2009 to here! or visit here!

Source: Dawn dated 02-03-2008

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posted @ 4:52 PM, ,

RBS announces Pay and Rewards Settlement for 2008

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RBS Group can confirm that it has reached agreement with the UK Government as majority shareholder (through UK Financial Investments) on its approach to Pay and Reward for 2008/09. The outline of the approach is as follows:
Click here! to see details
Further, RBS Pakistan is available for sale as management has finalized to close its operation in Pakistan. Interested and prospective investors can approach concerned authorities.

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posted @ 2:00 PM, ,

Money Market, Forex and General News 04-03-2009
Tuesday, March 3, 2009

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Money Market:

Forex:

General News:

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posted @ 5:24 PM, ,

Mandatory Books of Accounts
Monday, March 2, 2009

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For businesses, professionals & manufactureres

Benefits of maintaining books of accounts:
Disavantages of non-maintaining books of accounts:

Books of accounts for Businesses:

With income up to Rs.200,000/-

With business income exceeding Rs. 200,000
(excluding wholesalers, distributors, dealers and commission agents:

Books of accounts for Professionals:(like medical practitioners, legal practitioners, accountants, auditors, architects, engineers etc.)

Books of accounts for Manufacturers (with turnover exceeding Rs. 2.5 million):

For details see rule 30 of Income Tax Rules 2002!

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posted @ 11:31 AM, ,

Economic and Business Updates - February 16 to March 01, 2009

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Ref: Dawn -Economic and business updates dated 02-03-2009

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posted @ 11:00 AM, ,

Finance related Jobs

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Financial Analyst (Karachi, Pakistan):
Breezecom is looking for a dynamic individual that can help lead the company in the right direction based on their acumen for analytical work. You will be required to do a lot of “number-crunching” and present data in a fashion that will help the management team make critical decisions.
To apply for the position: Click Here
Deputy Manager Finance (Sialkot, Pakistan):
Preparation of Annual Costing and Budget- Preparation of Quarterly Financial Reports- Application of Costing Measures- Independent Development of Finance / Accounts System- Handling of all Income Tax matters- Preparation of Feasibility for new projects
To apply for the position: Click Here
Accountant (Lahore, Pakistan):
To administer all aspects of payroll utilizing the payroll system To calculate sales commissions and bonuses Maintain payroll records & prepare the payroll summary on a monthly basis Complete correspondences regarding payroll information for unemployment.
To apply for the position: Click Here

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posted @ 10:29 AM, ,


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