EXPORT IMPORT CREDIT MCQs

EXPORT IMPORT CREDIT MCQs

1. Minimum andmaximum amount up to which the Gold Credit card can be issued to exporter is Rs

________ lac and Rs lac. : (a) 100,1000 (b) 50, 500 (c) 100, 5000

(d) 20,200 (e) None of these as it is based on anticipated turnover.**

2. Aspertheexchangecontrolregulations,thepaymentforexportsshouldingeneralberealizedwithina

periodof:(a) 12months fromdate of shipment** (b) 3months from date of shipment

(c) 6months fromthe date of shipment (d) 1month fromdate of shipment

(e) 45 days formdate of shipment

3. Units in a special economic zone are permitted to realise and repatriate to India the full export value of

goods or software within a period of......................................... from the date of shipment.

(a) 3months (b) 6months (c) 180 days (d) 360 days (e) none of these as there is no time limit*

4. In respectof shipmentsmade toIndianownedwarehouses abroad establishedwithpermissionof RBI,

export proceeds shouldbe realizedwithin:

(a) 6 months (b)3 months (c) 9 months (d)15 months* (e) 150 days

5. RBImonitorsoverdueexportbills-not realizedwithinthestipulatedtimeby calling for ahalf yearly

statement fromADs referredtoas : (a) BEF (b)XOS** (c) GTE-1 (d) ST-9 (e) ENC

6.Packing credit advances mean :

advances granted to industrial units for packing of manufactured goods for sale in Indiaadvances granted to eligible exporters for purchase/manufacture/processing/transporting/packing etc. of goods meant for export*

(c) advancesgrantedtoimporterstoenablethemtostoreandsubsequentlysellimportedgoodslocally

(d) any one or more of the above (e) none of the above.

7. To be eligible for packing credit advances the customer :

(a) should not be in the caution list of RBI or specific approval list of ECGC

(b) must be holding importer/exporter code number allotted byDGFT

(c) should be recognised export house (d) all above (e) both (a) and (b)**

8. Packing credit advances is normally allowed for :

(a) 90 days (b) 60 days (c) 360 days (d) 180 days (e) as per requirement of the exporter**

9. `Normal Transit Period ' in the context of export financemeans:

(a) the number of days the documents take to reach destination

(b) the gap between period taken by the ship and the documents to reach destination

(c) the number of days taken by a ship to complete a voyage

(d) the number of days fixed by FEDAI and is the average period normally involved from date of negotiation to credit to

NOSTRO account.**

(e) either (a)or (b)

10. For facilities grantedupto30.6.2010, rateof interestonpost shipment credit inrupeesupto180days in

respectofusancebills is :

(a) 12% (b) 15% (c) not exceeding BPLR

(d) not exceeding BPLR minus 2.5% (e) not exceeding BPLR plus 1.5%**

11. Refinance for export credit fromRBI is available for howmany days?

(a) 90 days . (b) 180 days** (c) 360 days (d) 270 days- (e) None of these

12. Refinance against eligible export finance is available from:

(a) RBI* (b) IDBI (c) ECGC (d) Exim Bank (e) None of these

13. On PCFC refinance is available to the extent of % of outstanding PCFC.

(a) 15% (b) 50% (c) 25% (d) Nil** (e) None of these

14. Forfacilitiesgrantedupto30.6.2010ConcessionalinterestrateonPostshipmentcreditinrupeesis

permittedupto:

(a) 180 days** (b) 90 days (c) 270 days (d) 360 days (e) None of these

15. Which of the following is not correct regarding Liberalised Remittance Scheme?

(a) Amount can be remitted for capital aswell as current account transactions

(b) Maximumamount that can be remitted in a financial year is restricted toUSD200,000

(c) Remittance for gift and donationwill bewithinUSD200,000 permitted under LRS

(d) Bank can allowadvance to a resident individual formaking remittance under this scheme**

(e) None of these

16_ For outward remittance formedical expenses, estimate fromthe doctor or hospital is required if the

remittance is more than USD : (a) 1 lac (b) 5 lac (c) 10 Lac (d) none of these as it is required in all cases

17. What is themaximumamount of inwardremittance that can bedone by a resident individual?

(a) USD 1 Lac (b) USD 5 lac (c) USD 10 Lac (d) None as there is no limit

*

18. How much amount can be released for remittance abroad for education on declaration basis and withou estimate

from educational institution?

(a) USD 1 Lac** (b) USD 5 lac (c) USD 10 Lac (d) None as there is no limit

19.Which of the following is true?

(a) If a bank has oversold position, Bankwill gain if the rate of foreign currency rises.

(b) If a bank has oversold position, Bankwill gain if the rate of foreign currency declines**

(c) If a bank has oversold position, Bankwill lose if the rate of foreign currency declines

(d) If a bank has overbought position, Bankwill gain if the rate of foreign currency declines

(e) None of these

20. ADsmay allowadvance remittance for import of goodswithout any ceiling.However, if the amount of

advance remittance exceedsUSD50,00,000 or its equivalent it ismandatory to obtain-

(a) unconditional irrevocable stand byUC of an international bank of repute situated outside India

(b) guarantee froman international bank of repute situated outside India(c) guarantee of anADinIndia, if such guaranteeis issuedagainst counter guarantee of aninternational

bankof reputesituatedoutside India

(d) any one of the above (e) either (a) or (b) only***

21. BEF statement containingdetailsof remittance exceedingUSD1,00,000where evidence of import is

not furnishedwithin6months fromdateof remittance is submittedby ADs toRBIon:

(a) monthlybasisby 10thof thefollowingmonth

(b) quarterlybasisby 15thof themonthfollowing closeofquarter

(c) half yearly basis forMarch/ September by 15th of succeedingmonth

(d) half yearly basis as of June/ December by 15th of succeedingmonth **(e) none of these

22. Crystallisation of import bill under UCmeans:

(a) bill is scrutinisedwhether it is as perUC terms or not

(b) it is ensured that currency of IJC and insurance is the same or not

(c) converting bill amount into Indian rupees and deciding customer's liability on due date in case of usance**

bill and on 10th day from date of receipt in case of demand bills.

(d) none of the above as the concept is gonewith the termination of PSCFC

23. ApplicationformakingpaymenttowardsimportsintoIndiahastobemadetoauthoriseddealersby

importersin:(a) ENC (b) R-3 (c) Form A-1 *(d) Form A-4 (e) none of the above

24. Advance remittance for import of goods into India is to be allowed after obtaining guarantee froman

international bank of repute situated outside India or guarantee of an AD in India against counter-guarantee of an

international bank when amount of advance remittance exceeds:

(a) US $ 10,000 (b) US $ 25,000 (c) US $5,000 (d) US $ 15,000 (e) US $ 50,00,000***

25. How much advance remittance is allowed for import of services without guarantee of a reputed

international bank?

(a) USD 1 Lac (b) USD 5 lac **(c) USD 10 Lac (d) None as there is no limit

26. Which of the following types of Bill of Lading is not acceptable by a bank under LC?

(a) On Board (b) Clean (c) Charter Party** (d) AN of these (e) None of these

27. Interest Subvention is available on rupee export credit at the rate of 2% for loan up to Rs

but

interest rate after subvention should not be less than 7%.

(a) Rs 3 lac (b) Rs 5 lakh (c) Rs 10 lakh (d) Rs 100 lakh (e) None of these**

-28. Interest rate charged by RBI on export refinance to banks is at the rate of :

(a) Bank Rate (b) Repo Rate** (c) Reverse Repo Rate (d) Base Rate (e) None of these

29. Export Refinance is provided by RBI at the rate of __________ % of eligible outstanding export credit?

(a) 15% **(b) 25% (c) 50% (d) 100% (e) None of these

30. R Return is submitted to RBI onwhich of the following dates of themonth?

(a) 7th and 2151 (b) 15th & last day **(c) 10th, 20th and last day (d) None of these

31.Overdue import demand bills and usance bills are crystalised onwhich dates?

(a)10thday&duedate **(b)15thdayand30thday (c)30thdayand60thday(d)10thdayand60thday(e)Noneofthese

132. Which of the following is incorrect regarding export declaration forms?

(a) GR formis usedfor declaration of exports other than by postwhere customoffice not linked to EDI

(b) ExportDeclaration formis not required to be submitted for exports up toUSD25000.

(c) Softex formis used for declaration of export of software in physical or electronic form.**

(d) None of these (e) All of these

33.. Presently rate of interest on pre-shipment credit in forex (PCFC) up to 180 days is not exceeding:

(a) 200 basis points above LIBOR ***(b) 100 basis points above LIBOR

(c) 150 basis points above LIBOR (d) 50 points above LIBOR (e) 350 basis points below LIBOR

34. As per current guidelines of RBI, for loans sanctioned up to 30.6.2010, rate of interest on pre-shipment credit in rupees up to

270 days should not exceed :

(a) Bank Rate plus 2.5% (b) BPLR plus 1.5% (c) BPLR minus 2.5%**

(d) Bank Rate minus 2.5% (e) lower of (a) and (b)

35. As per the exchange control regulations, the payment for exports should in general be realized within a period of:

(a) 12 months from date of shipment** (b) 360 days from date of packing of goods

(c) 180 days from the date of shipment (d) 270 days from date of shipment

(e) 180 days from the date of receipt of consignment by the buyer in foreign country

36. Which of the following is/are not true with regard to features of Gold Card Scheme for exporters:

(a) Only exporters whose accounts have been 'Standard' continuously for 3 years are eligible

(b) Gold Card holderswill be given preference is granting packing credit in foreign currency (PCFC)

(c) Time normfor disposal of fresh applications for credit under the schemewill be 25 days

(d) Gold Card for exporters will be issued for a period of 5 years (e) none of these**

EXPORTFINANCE

Case- STUDY

An exporter approaches the popular bank for pre-shipment loanwith estimated sales ofRs.100 lakh. The bank

sanctions a limit ofRs.50 lakh,with followingmargins: Pre-shipment loan on FOB value—25%; ForeignDemandBill -

10%; Foreign usance bilis—20%.

The firmgets an order forUSD50,000 (CIF) toAustralia.On 1.1.2011when theUSD/INRratewasRs.43.50 perUSD,

the firmapproached theBank for releasing pre-shipment loan (PCL),which is released.

On 31.3.2011, the firmsubmitted export documents, drawn on sight basis forUSD45,000 as full and final shipment.

The bank purchased the documents atRs.43.85, adjusted thePCL outstanding and credited the balance amount to the

firm's account, after recovering interest forNormalTransit Period (NTP). The documents were realized on

30.4.2011 after deduction of foreign bank charges of USD 450. The bank adjusted the outstanding post

shipment advance. against the bill. Bank charged interest for pre-shipment loan@7%up to 90 days and,@8%

over 90 days up to 180 days. For Post shipment credit, theBank charged interest@7%for demand bills and@7.5%

for usance (D/A) documents up to 90 days and@8.50%thereafter and on all over dues, interest@10%.

01 What is the amount that the Bank can allow as PCL to the exporter against the given export order,

considering the profit margin of 10% and insurance and freight cost of 12%?

a) Rs.2200000 b) Rs.1650000 c) R6.1485000 d) Rs.1291950

02What is the amount of post shipment advance that can be allowed by the Bank under foreign bills

purchased, for the bill submitted by the exporter?

a) Rs.19,80,000 b) Rs.17,75,925 c) Rs.19,73,250 d) Rs.21,92,500

03 What will be the period for which the Bank charges concessional interest on DP bills, from date of

purchase of the bill?

a) 90 days b) 25 days c) 31 days d) Up to date of realization

04 in the above case, when should the bill be crystallized (latest date), if the bill remains unrealized for

over two months, from the date of purchase-(ignore holidays)?

a) On 30.4.2011 b) On 24.4.2011 c) On 24.5.2011 d) On 31.5.2011

05 What rate of interest will be applicable for charging interest on the export bill at the time of realization,

for the days beyond Normal Due Date (NDD)?

a) 8% b) 7% c) 7.5% d) 10%

Ans. 1-d 2-c 3-b 4-c 5-d Explanations:

1. FOB value =

CIF Value i.e. 50000x43.5 = 2175000

Deduct Insurance & freight 12% of 2175000 = 261000

Balance = 1914000

Deduct profit margin 10% of 1914000 =191400

Balance = 1722600

Less Margin 25% = 430650

PCL = 1291950

2. 45000 x43.85=1973250

3. Concessional• rate will be charged for normal transit period of 25 days and there after overdue

interest will be charged.

4. Crystallisation will be done when the bill becomes overdue after 25 days of normal transit period. Date of

overdue will be 25.4.2011. if bill remains overdue, it will be crystalised within 30 days i.e. up to 24.5.2011.

5. Rate of interest will be 10%as the overdue interest is stated as 10%in the question.

Export credit

EXPORT CREDIT::

   Export sector has been recognised as a thrust area considering its importance
and contribution of this sector to the economy. Therefore, the sector is being
presently extended finance at concessional rates, with flexibility in financing norms.

Export finance is by a large regulated through the directive / guidelines issued by
the Reserve Bank of India (RBI), Director General of Foreign Trade (DGFT) and
the Foreign Exchange Dealers’ Association of India (FEDAI). Export finance is

broadly classified into two categories
:
(i) Pre-shipment finance and
(ii) Post-shipment finance

Pre-shipment finance often referred to as ‘Export Packing Credit (EPC)’ is extended
as working capital for purchase of raw materials, processing, packing, transportation
and warehousing of goods meant for export. Both manufacturers as well as merchant
exporters are eligible to avail Rupee Packing Credit at concessional rate of interest.
Pre-shipment credit is available in foreign currency also. It has two essential features,
viz.,. existence of an export order and / or letter of credit and liquidation of the credit by
submission of export documents within a stipulated period. In case of exporters of
proven standing, the facility can also be extended on a running account basis
provided the conduct of the account is satisfactory and orders are lodged
subsequently within a reasonable time. Substitution of contracts / export orders are
also permitted in case of running accounts.
EPC can also be provided to units established in SEZ / EPZ/ AEPZ/ EOUs for
supply to units in the same or another SEZ / EPZ/ AEPZ/ EOU although
no movement of merchandise takes place across the borders of the country.

 There is no fixed formula for determining the quantum of finance to be granted to an
exporter against specific order / LCs. The guiding principle to the applied in all such
cases is a concept of need-based finance. The period for which the Bank gives
packing credit depends upon the manufacturing / trade cycle or specific requirements
of the individual export, normally not exceeding 180 days. The percentage of
margin is determined depending on the nature of order, commodity, capability of
exporter, etc. keeping in view the spirit behind RBI guidelines for liberal finance to
export sector.

 Since packing credit loans are concessional and purpose oriented, it will be
necessary to ensure proper end use of amounts disbursed to the exporters.

 Post- shipment finance can be extended upto 100% of the invoice value of goods. It
can be short term or long term finance depending upon the payment terms offered
by Indian exporters to overseas buyers. The maximum period usually allowed for realisation of export proceeds is 180 days from the date of shipment, with certain
exceptions. Post- shipment finance is also available both in rupees and specified
foreign currencies. Very often export business takes place without support of
documentary Letters of Credit and the Bank normally extends finance to the exporters
by purchasing the bills drawn by them of foreign buyers or granting advance against
bills sent on collection basis. While purchasing the bill, the Bank takes into
consideration the track record of the exporter, country risk, nature of merchandise,
terms of payment, payment record of the drawee, etc. Advances against Duty
Drawback receivable are also granted under Post-shipment Finance.

 RBI has been traditionally pursuing a policy to make available export credit at
reasonably low interest rate with a view to helping the exporters to be competitive
vis-a-vis their competitors. RBI have rationalised the interest rates on export
credit which are indicated by RBI, periodically, in their Monetary & Credit Policy as
ceiling rate in respect of all categories of export credit so that interest rates
charged by the banks can actually be lower than the prescribed rate. Such ceiling
rates will be linked to PLRs of respective banks as applicable to other domestic
borrowers.

 As far as deferred exports are concerned, RBI has allowed banks to charge
their normal term lending rate based on the credit rating of the borrower. In this
connection, deferred exports are those where the realisation period exceeds 180
days, with certain exceptions. All deferred exports are subject or regulatory
guidelines contained in Project Export Manual (PEM) published by RBI.

The Export Credit Guarantee Corporation of India Ltd. (ECGC) provides support to
both exporters and financing banks through export credit insurance. The related
guarantee / policies issue by ECGC cover individual Packing Credit Guarantee
(IPCGO) cover from ECGC for pre-shipment credits on a case-to-case by authorities
empowered by the Bank for the same. As regards post - shipment credit, Bank
may stipulate Individual post- shipment Guarantee (IPSG) on a case-to-case basis
depending on the risk perception.

ARTICLES OF UCPDC 600

ARTICLES OF UCPDC 600

Article-1 : UCPDC-boo apply to any LC when its text expressly indicates that it is subject to these rules. The rules are binding on all

parties thereto unless expressly modified or excluded by the credit.

Article-2: Definitions : Advising bank, Applicant, Banking day, Beneficiary, Complying presentation, Confirmation, Confirming

bank, Credit, Honour, Issuing bank, Negotiation, Nominated, Presentation, Presenter.

Article-3 Interpretations:

 A credit is irrevocable even if there is no indication to that effect.

 Branches of a bank in different countries are separate banks.

 The expression "on or about" will be interpreted as an event to occur during a period of 5 calendar days before until 5

calendar days after the specified date, both start and end dates included.

 The terms "first half" and "second hal' of a month shall be construed respectively as the 1st to the 15th and the 16th to the

last day of the month, all dates inclusive.

 The terms "beginning", "middle" and "end" of a month shall be construed respectively as the 1st to the loth, the nth to the

loth and the 21st to the last day of the month, all dates inclusive.

Article-4 Credits v. Contracts: A credit is a separate transaction from the sale. Banks are not concerned with or bound by such

contract, even if any reference is included in the LC.

ArticIe-5 Documents v. Goods: Banks deal with documents and not with goods, services or performance to which documents

relate.

Article-6 Availability, Expiry Date and Place for Presentation: A credit must state an expiry date for presentation. An expiry date

for negotiation is deemed expiry date for presentation which must be made on or before the expiry date.

Article-7 Issuing Bank Undertaking: If stipulated documents are presented to the nominated bank or to the issuing bank, the

issuing bank must honour.

Article-8 Confirming Bank Undertaking: The confirming bank must honour the credit. It must reimburse another nominated bank

that has negotiated a complying presentation and forwarded the documents to the confirming bank.

Article-9 Advising of Credits and Amendments: A credit and any amendment may be advised to a beneficiary through an

advising bank. An advising bank advises the credit and any amendment without any undertaking to negotiate. By advising the

credit, the advising bank signifies that it has satisfied itself as to the apparent authenticity of the credit and the advice accurately

reflects the terms and conditions of the credit or amendment received.

Article-io Amendment: A credit can neither be amended nor cancelled without the agreement of the issuing bank, the

confirming bank and the beneficiary. Partial acceptance is not allowed and will be deemed to be notification of rejection of the

amendment.

Article-it Tele transmitted and Pre-Advised LC and Amendments: An authenticated teletransmission will be deemed to be the

operative credit or amendment, and any subsequent mail confirmation shall be disregarded. If it states "full details to follow" the

tele-transmission will not be operative credit or amendment.

Article-12 Nomination: By nominating a bank to accept a draft or incur a deferred payment undertaking, an issuing bank

authorizes that nominated bank to prepay or purchase a draft accepted or a deferred payment undertaking incurred by that

nominated bank.

Article-13 Bank-to-Bank Reimbursement Arrangements.: If a credit states that reimbursement is to be obtained by a nominated

bank, the credit must state if the reimbursement is subject to the ICC rules in effect on the date of issuance of the credit.

Article-14 Standard for Examination of Documents:

(a) A nominated bank and issuing bank shall each have a maximum of 5 banking days following the day of presentation to

determine if the documents are in order.

(b) A presentation must bemade by or on behalf of the beneficiary not later than 21 calendar days after the date of shipment as

described in these rules, but in any event not later than the expiry date of

the credit.

(c) A document may be dated prior to the issuance date of the credit, but must not be dated later than its date of presentation.

Article-15 Complying Presentation: a. When an issuing bank or confirming bank determines that a presentation is complying, it

must honour or negotiate the documents.

Article-16 Discrepant Documents,Waiver and Notice:

a. When a nominated bank determines that a presentation does not comply, it may refuse to honour or negotiate.

b. When an issuing bank determines that a presentation does not comply, it may approach the applicant for a waiver of

discrepancies.

Article-17 Original Documents and Copies: a. At least one original of each document stipulated in the credit must be presented.

Article-18 Commercial Invoice: (a) A commercial invoice, must appear to have been issued by the beneficiary; made out in the

name of the applicant, made out in the same currency as the credit; and need not be signed. (b) The description of the goods,

service or performance in a commercial invoice must correspond with that appearing in the credit.

Article-19 Transport Document Covering at Least Two Different Modes of Transport: The date of issuance of the transport

document will be deemed to be the date of dispatch, taking in charge or shipped on board, and the date of shipment

A transport document indicating that trans-shipment will or may take place is acceptable, even if the credit prohibits transshipment.

Article-2o Bill of Lading: a. A bill of lading, must indicate that the goods have been shipped on board a named vessel at the port

of loading stated in the credit. The date of issuance of the bill of lading will be deemed to be the date of shipment.

Article-21 Non-Negotiable Sea Waybill: It must indicate that the goods have been shipped on board a named vessel at the port

of loading stated in the credit.

Article-22 Charter Party Bill of Lading: It must indicate that the goods have been shipped on board a named vessel at the port of

loading stated in the credit. The date of issuance of the charter party bill of lading will be deemed to be the date of shipment.

Ai-tide-23 Air Transport Document: It must appear to indicate that the goods have been accepted for carriage and indicate

the date of issuance. This date will be deemed to be the date of shipment.

Artiele-24 Road, Rail or Inland Waterway Transport Documents: These must indicate the date of shipment or the date the goods

have been received for shipment, dispatch or carriage at the place stated in the credit. The date of issuance of the transport

document will be deemed to be the date of shipment.

Article-25 Courier Receipt, Post Receipt of Certificate of Posting: A courier receipt evidencing receipt of goods for transport,

must indicate a date of pick-up or of receipt or wording to this effect. This date will be deemed to be the date of shipment.

Article-26 "On Deck", "Shipper's Load and Count", "Said by Shipper to Contain" and Charges Additional to Freight: A transport

document must not indicate that the goods are or will be loaded on deck. A clause on a transport document stating that the

goods may be loaded on deck is acceptable.

Article-27 Clean Transport Document: A clean transport document is one bearing no clause or notation expressly declaring a

defective condition of the goods or their packaging.

Article-28 Insurance Document and Coverage: An insurance document can be an insurance policy, an insurance certificate or a

declaration under an open cover. Cover notes will not be accepted

(b) The date of the insurance document must be no later than the date of shipment, unless it appears from the insurance

document that the cover is effective from a date not later than the date of shipment

(c) The insurance document must be in the same currency as the credit (d) If there is no indication in the LC of the insurance

coverage required, the amount of insurance coverage must be at least no% of the CIF or CIP value of the goods.

Article-29 Extension of Expiry Date or Last Day for Presentation: If the expiry date of a credit or the last day for presentation

falls on a day when the bank to which presentation is to be made is closed, the expiry date or the last day for presentation, as the

case may be, will be extended to the

first following banking day. In such case, a nominated bank must provide a statement on its covering schedule that the

presentation was made within the time limits extended in accordance with article 29. The latest date for shipment will not be

extended as a result of article 29.

Article-30 Tolerance in Credit Amount, Quantity and Unit Prices:

(a) The words "about" or "apprx" used in connection with the amount of LC or the quantity or the unit price stated in the LC are

to be construed as allowing a tolerance not to exceed 10% more or 10% less than the amount, the quantity or the unit price to

which they refer.

(b) A maximum tolerance of 5% more or 5% less than the quantity of the goods is allowed, where the credit does not state

quantity in terms of a stipulated no. of packing units or individual items and the total amount of the drawings does not exceed

the amount of LC.

(c) Even when partial shipments are not allowed, a tolerance not to exceed 5% less than the amount of the credit is allowed,

provided that the quantity of the goods, if stated in the credit, is shipped in full and a unit price, if stated in the credit, is not

reduced or that sub-article 30 (b) is not applicable.

Article-31 Partial Drawings or Shipments: Partial drawings or shipments are allowed.

Article-32 Instalment Drawings or Shipments: If a drawing or shipment by instalments within given periods is stipulated in the

credit and any instalment is not drawn or shipped within the period allowed for that instalment, the credit ceases to be available

for that and any subsequent instalment.

Article-33 Presentation Time: A bank has no obligation to accept a presentation outside of its banking hours.

Article-34 Disclaimer on Effectiveness of Documents: A bank assumes no liability or responsibility for the form, sufficiency,

accuracy, genuineness, falsification or legal effect of any document, or for the general or particular conditions stipulated in a

document or superimposed thereon; nor does it assume any liability or responsibility for the description, quantity, weight, quality,

condition, packing, delivery, value or existence of the goods, services or other performance represented by any document, or for

the goods faith or acts or omissions, solvency, performance or standing of the consignor, the carrier, the forwarder, the consignee

or the insurer of the goods or any other person.

Article-35 Disclaimer on Transmission and Translation: A bank assumes no liability or responsibility for the consequences arising

out of delay, loss in transit, mutilation or other errors arising in the transmission of any messages or delivery of letters or

documents, when such messages, letters or documents are transmitted or sent according to the requirements stated in the

credit, or when the bank may have taken the initiative in the choice of the delivery service in the absence of such instructions in

the credit.

Article-36 Force Majeure: A bank assumes no responsibility for consequences arising out of the interruption of its business by

Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism, or by any strikes or lockouts or causes beyond its

control.

Article-37 Disclaimer for Acts of an Instructed Party: A bank utilizing the services of another bank for the purpose of giving effect

to the instructions of the applicant does so for the account and at the risk of the applicant.

Article 38- Transferable Credits: A transferable credit may be made available in whole or in part to 2nd beneficiary at the request

of the first beneficiary. It cannot be transferred at the request of a second beneficiary. The first beneficiary can substitute its own

invoice and draft for those of a second beneficiary for an amount not in excess of LC.

Article-39 Assignment of Proceeds: The beneficiary can assign any proceeds to which it may be or may become entitled under

the credit.

eUCP : Supplement to UCPDC for Electronic Presentation (Version IA)

eUCP has been created to take care of the demand of the market for the presentation of electronic documents or for a mixture of

paper documents and electronic presentation. It provides definitions permitting UCP 60o terminology and providing rules to

allow both sets of rules to work together.

Article el of eUCP narrates the scope of eUCP. eUCP also deals with relationship of eUCP and UCP 600 (e2), definitions (e3),

format (e4), presentation (e5), examination (e6), notice of refusal (e7), originals and copies (e8), date of issuance (e9), transport

(elo), corruption of electronic record after presentation (en) and additional disclaimer of liability for presentation of electronic

records under eUCP (e12).

INTERPRETATIONS USED IN UCPDC-600

 A credit is irrevocable even if there is no indication to that effect.

 On or about — Such expression will be interpreted as a stipulation that an event is to occur during a period of 5 calendar days

before until 5 calendar days after the specified date, both start and end dates included.

 The words `to', 'until', 'from' and 'between' when used to determine a period of shipment include the date mentioned and

the words 'before' and 'after' exclude the date mentioned.

 The words 'from' and 'after' when used to determine a maturity date exclude the datementioned.

 The terms 'first half and 'second half of a month shall be construed respectively as the 1st to the 15th and the 16th to the last

day of the month, all dates inclusive.

 The terms 'beginning', 'middle' and 'end' of a month shall be construed respectively as the ist to 10th, the 11th to the 20th and

the 21St to the last day of the month, all dates inclusive.

 Branches in different countries are considered to be separate banks.

 The date of issuance of the transport documents will be deemed to date of despatch, taking in charge or shipped on board

and the date of shipment. If the transport document indicates, by stamp or notation, a date of despatch taking in charge or

shipped on board, this date will be deemed to the date of shipment.

 Trans-shipmentmeans unloading from onemeans of conveyance and reloading to anothermeans of conveyance (whether or not in

different modes of transport) during the carriage, from the place of dispatch taking in charge or shipment to the place of final

destination stated in the credit.

 A clean transport documents is one bearing no clause of notation expressly declaring a defective condition of the goods or

their packaging.

 If there is no indication in the credit about insurance coverage, amount of insurance coverage must be at least 110% of CIF or

CIP value of the goods.

Caiib BFM recollected questions

CAIIB BFM Recollected  questions Exam  on (09.12.2018)

1.Case studies form TT rates , similar question of EPC case study given in book, Basel and stock ratios.

2.5 numericals from TT Rate

3.5 from CRAR

4.5 from STOCK RATIOS

5 from EPC  Export packing credit

6.1 direct question from Altzman score abt its definition

7.Numerical case study (5 questions) from yield and RWA

8.Pg no 563 for stock ratios, read definition and ratio formula

9.Pg no 123 for EPC- Pre n post shipment finance

10. Stock Approach and ratios

11.Volatile liabilities, total assets, deposits, loans etc given

12.Read the roles of various institutions like ECGC, EXIM Bank etc..In 1st sitting ECGC formation year was given, we had to identify the institution

13.1 case study on NRI a/c as well. Direct questions based on family tree.

14.1. VaR is used to find which type of risk?

15.. Select correct statement for exports to countries other than ACU

A) No export in INR

B) No export in any freely convertible currency

C) Export only in $ and euro

D) export from a 3rd party can be there

16.Like A is an Indian who now settled in UK and married B who is from Kenya but now a British citizen. They have 2  children (C &D) born in London. C is now married to a Pakistani citizen and settled in Karachi. D is working in London.

1. Status of D

A) NRI

B) Foreign National

C) Person of Indian origin

D) Person of Kenya origin

2. A can open which type of a/c?

3. Nominee A can make for her a/c out of her family)?

A) all

B) B

C) B&D

D) anyone

4. Can A add her dead Indian sister as nominee in FCNR a/c?

5. Can C open any account in India

17.case study on LC

18.Roles of various institutions like ECGC,EXIN bank

19. 2 to 3 corresponding bank questions

20.Questions on Treasury bills, NRI,RAROC

21.Question like How many days is NTP? How many days EPC canbe extended? ND all that

22.Total theoretical paper..

Numerical from NII, NIM, GAP, choose option in which to invest given risk weight and yield

23.5questions related to NRE

24.Max questions came from Market risk

25.Estimated level of operational risk,

Ratio in respect of liquidity risk management case study and one liner,

LCR,

T bills periods,

Policies for ALM,

identify risk,

CM period,

Case study on exchange rate,

Ripple effect which risk,

Going concern capital,

Vostro a/ c example,

NRE/NRO/FCNR,

SNRR,

LC case study for 5days, insurance risk cover, partial shipment,

DDA a/c,

Advance against undrwan balances,

Role of EXIM BANK,

SRP principles,

Tier I capital with CCB as on 31 mar 2018,

Stress testing,

Altman Zscore,

Securitization,

Heading meaning,

Operations risk cause based,

Operations risk measurement approach,

100%unpaired tier 1or usd10mn,

Interest rate swap,

RBI policy ratios,

Case study on call/put,

Case study on NII/NIM,

Crop loan NPA status,

Long term crop loan period,

Embedded option risk

WORK LIKE YOUR DOG

        WORK LIKE YOUR DOG

Work like a dog is an inspiring call to the readers to "come out and play" at work. People spend more time working, thinking about work, and traveling to and from work than all other waking activities combined. Employees are asked to do more for less-making their work lives more exhausting and less satisfying.  Having more fun at work isn’t a fantasy. It is a smart and savvy strategy to becoming a more creative, productive, and dynamic employee. The author advises to take pleasure from tasks, reduce levels of stress and recharge their creative side.

This article divided  in to three parts, in the first part he described the work as a game, in the second author described how to turn problems into opportunities and the last he advised how to learn to laugh and play with life.

1.     The Game of Work: first of all we have to know the rules of the game and he compares our work like a game.  When our life at work serves us an ace, many of us act as if it's the end of the world. Even the smallest of problems or mistakes can get blown completely out of proportion. We spend all kinds of time and energy living in the past, analyzing, criticizing, making excuses, worrying, and generally making ourselves miserable. "Hey, nobody's perfect -- how can I learn from my mistakes if I never make any" the author wants everybody to say this to himself. Everybody has to see every situation as an opportunity to play, to celebrate and to learn how to work less, play more and earn more. "The better you feel about yourself, the less likely you are to take yourself too seriously and the more you are able to laugh at yourself and the things that may go wrong all around you." In fact, if you haven't been rejected recently, then you probably haven't been trying hard enough. The author explained beautifully our pet dogs spend their days along with you. Waiting for your order, showing enthusiasm in the work we give, doing the things just like play and many more things and advise us to have fun at work and do the work differently and celebrate the fun. And as rule of play we have to play fair game and he compares ethics as good business.

2.     Turn the problems into Opportunities: The author advises to change the way you view the world and see the flowers in the garbage. In this part he explains three secrets of stress reduction, one out of them is-every person has to rethink in the difficult situations to get rid of. He also explains three ways to turn fights into frolics. Everybody has to learn to be happy when unhappy things happen.

3. Learning to laugh and play with life: Surround your self with people who like to laugh and play, stay in touch with your friends and live in the movement but not for the movement. He tells two ways to practice having fun. The author disagrees with the proverb "Practice makes perfect, rather he tells that "Practice makes permanent." In other words, if we practice something enough, it becomes habitual. And if we want to live a good life, which is meaningful, joyful, and happy, we need lots and lots of practice. If you want to become more comfortable  playing in your life think what can you change in your life?   And lastly the author advises us to take the pledge "I want you to lighten up on me already, will you! Now, let's go to work and have some fun".

By Book by Luke Barber and Matt Weinstein

JAIIB AFB RECOLLECTED QUESTIONS

JAIIB AFB RECOLLECTED QUESTIONS

1. Depreciation Related 3 questions
2. More theory questions than numericals
3.Two marks from Payback period NpV
4.Basis of accounting 0.5 theory
5.Foreign currency 1 mark 2 3 questions came

6.Numerical were so lenghty to calculate,  exam was quite tough

7.Asset is a
Source of funds
Use of funds
Cash inflow
None of these

8.Types of accounts in profit and Loss account
Only real account
Only nominal account
Some real some nominal
Only personal
9.wdv

. Business entity
10.Computerised accounting la data record system reltd ques
 Kyc relatd
Conditions for opening current acc
-

1. 5-10 questions from depreciation
2. Two marks from Payback period NPV
3. Basis of accounting 0.5 theory
4. Foreign currency 1 mark 2 3 questions
5. Asset is a ...... Source of funds/Use of funds*/Cash inflow/None of these
6. Types of accounts in profit and Loss account ...... Only real account/Only nominal account*/Some real some nominal/Only personal
7. From E-KYC - 5 questions
8. WDV method of depreciation
9. Today population is 5lac what will after 6year and before 4 year. It increases at 7% p.a.. and their difference
10. Accounting concepts - 3 4 questions
11. Going concern
12. Conservatism
13. Business entity
14. 1$ = _____ rupees, 100 rupees how much
15. Foreign exchange 3 marks
16. Current Ratio
17. Accounting standards
18. Cash book passbook diff
19. Cash book - standing instructions won't come under cash book
20. Yield to maturity
21. Banking definition comes under which act? Banking Regulation Act, 1949
22. Types of errors - Match the following - 5 Marks
23. 3 marks on computer
24. Calculation of of Future Value - 1 Mark
25. Coupon rate and current yield - 3 Marks
26. Opening stock closing - 4 Marks
27. Ratio Analysis - 2 Marks
28. Compound interest - 1 Mark
29. Type of accounts - 5 Marks
30. Debit credit...accounts - 5 Marks
31. Trademark... Under which account
32. Error classification
33. Question on tangible
34. Population based compound
35. Shares,debentures based problems
36. Definition of annuity
37. Many questions from capital shares
38. 1$=71.*** and 1$= 22.*** singapore dollar. What is the value of INR for 1spdollar
39. Current assets-2:1 quick ratio -1.5:1 current liabilities 160000 inventories??
40. Bond related int 12% face value 5000 market price 4500= current yield?
41. Some present anuity due present ordinary and also future annuity each 1 each
42. Calculate of net profit cost of goods sold
43. Some question from cost concept, business going
44. outsourcing of service in bank
45. Market price of bond 4500 face value 5000 coupon rate 12% current yield?? - 13.33% (YTM = 12/100)*(5000/4500)
46. Debt service coverage ratio formula parts were asked
47. equence of payment=annuity
48. Future value annuty Due
49. zero Coupe Bond
50. Forward rate
51. Bill of exchange
52. Balance sheet related questions
53. Subsidy Book
54. FCIL(Food corporation) type of company
55. Non-Voting Share
56. Computer/Hardware/Software
57. Front office/Back Office
58. KYC/Risk Category
59. Small a/c max Withdral in. Month
60. Cheque Collection days 7/10/14
61. Vault/Custody Key
62. DEAF Account
63. Certificate of deposit
64. Floating rate
65. CBS related questions
66. IND-FIU. (Txn 10 LAC in month)

Certified credit professional yesterday's exam review 28.09.2019

Certified credit professional yesterday's exam review 28.09.2019

Forfaiting ,factoring- 5Marks
IRR,NPV 5 Marks
Sarfaesi 1Mark
Cersai 2Marks
IBC 5Marks
LC MBPF 5Marks
Ratio 4 Marks

annual imports 2200 lakhs

fixed costs 70 lakhs
insurance 30 lakhs
customs duty 200 lakhs

EOQ 500 LAKHS

LEAD TIME 2 MONTHS
USANCE 5 MONTHS

CALCULATE NO OF LC'S REQUIRED
LC FREQUENCY
LC AMOUNT

GIVE ME SOLUTION PLS.
This question in today exam 5 Marks


Please read thoroughly Macmillan Book Bankers Hand Book on credit management and cover the follow topic:
Factoring and forfaiting,
CP, PSL, PSLC certificate,
5 marks on LC on EOQ based, numerical on ANBC, Ratio analysis, NPV, Payback period, NPV, IRR, Questions related to wc management, CR, Activity Ratio, CERSAI, MSME act, MSME Rehabilitation, credit monitoring, NCLT, CAP, IBC, Treds, margin on HL, etc..

CTP recollected questions on 28.12.2019

Certified treasury professional exam  28.12.19
1)question on price yield curve like nature of curve,meaning of intersection of curve with price axis, etc 5 question
2)option question... Like in the money, at the money, out of money, time Valueof option, intrinsic, call put questions on option based on strike and spot price
3)forward rate agreement.. Numerical 5 marks as per mac mill an book with some changes
4)repo question numerical like forward leg ready leg numerical as per mc millian book
5)bond question npv of coupons and principal related questions 5 marks
6)commercial paper theory questions 5 marks like who can issue, whether cp gives coupon, net worth for issuing cp etc.. Read Mac millian book ,all questions answerable
7)question on forex tt rate bill rate based on nature of transactions which rate to be selected.. 5 questions
8)numecrical on yield calculations and prices calculations for t bills.. Numerical similar to what has been given in appendix at back of Macmillan book 5 question
9)theoretical question were also conceptual.. Question related to bond option derivative swap
Overall questions were medium level of toughness for those who have not worked in this area
These questions I can recollect
Best of luck to those who wish to appear for CTP exam.

Numerical based on FRA, CURRENCY EXCHANGE, REPO TRANSCATION, BOND/YTM, YIELDS ON T-BILL, CURRENT YIELD
A 5 MARKS EASY SET OF QUESTION FROM COMMERCIAL PAPER

Other Theory questions from Bond theorem, Delta, gama etc.
35-40 marks numerical is there.

Caiib BFM recollected questions on June 2018

Memory recalled questions of BFM (Batch3 – 2.00 pm 10-06-2018)

1. WHAT IS NOSTRO ACCOUNT, QUESTION HAVING VERY CONFUSING DEFINATION
2. Case study on LC- question to find advising bank
3. Case study on LC- question to find negotiating bank
4. Case study on LC- question to find issuing bank
5. Case study on LC- question to find confirming bank
6. In LC nothing is mentioned and it should be considered which lc- answer was irrevocable
7. Case study  to find the best possible rate out of two banks rate for sending money abroad, whether tt selling rate, tt buying rate will be applicable
8. Case study to find the best possible rate out of two banks rate for sending money from FCNR deposit, answer none of these as FCNR is already in USD
9.  Case study on to find the best possible rate out of two banks rate tt selling rate, tt buying, currency buying/selling rate will be applicable
10.  Question related to Yield on bonds, numerical type
11. Leverage ratio calculation
12. Case study on TT buying rate to find the best possible rate out of two banks rate
13.  In stock of HQLA for the purpose of cap liquidity and coverage ratio
14. Notional transit period time- 25 days
15. Question can POA can send the remittance from NRE a/c – no
16. What is American style?
17. What is European option style
18. One question to calculate modified duration
19. Features of FIMMDA
20. Notice money time period- 2 to 14 days
21. Difference between CLN and CDS
22. Question to find the economic equity ratio
23. ONE question on at the money
24. One question of out of money
25. One question on in the money
26. Who developed FX clear- RBI, CCIL, SEBI, answer CCIL
27. Features of CBLO
28. What  is repo
29. Risk pricing related question to find the practical use of it out of options
30. Case study related to rating migration- %age change in the AAA, AA, B rate companies as compared to previous year- 3 questions were there
31. Role of Board of directors in management of risk, question was who makes policies, risk limits, system for the risk management
32. In the above question, who is responsible for implementation of the same
33. Penalty for not crediting the amount claimed by the correspondent bank, 1%, 2%, 3%,4%
34. Case study related to FC, NRI gets 20000USD and wants to get it credited in his NRE a/c is it possible- 4 option were given, correct one was  can be done by taking CDF
35. Capital charge for foreign exchange
36. Case study on NII- to find the %age change in NII when interest rate declines by 1% in given interest rates
37. Case study on NII- to find the %age change in NII when interest rate declines by .05% in given interest rates
38. Case study on NII- to find the %age change in NII when interest rate declines by 1% in assests in given interest rates
39. Question to find capital fund.
40. Questions to find the CRAR and RWA of Bank A and Bank B
41. Questions to make comparison of Bank A and B related to their asset liability management
42. key priniciples in Supervising review process of basel III
43. call option and put option case study to find whether the holder of call option will utilize the deal or not
44. call option and put option case study to find whether the holder of put option will have profit or loss by making the deal
45. impact of CRR

THE Ist 4 SECONDS

THE Ist 4 SECONDS

THE Ist 4 SECONDS

 By : Gautam Gary Gupta

We meet at least 25000 people by the time we are 50 and at the end of walking so many people in life, we remember only a handful. Wonder Why?

Because, only those who mattered to us in same way and those who created an impression in mind, even meeting could be brief, but it stay in min. The impression can be positive or negative.

Most of people would not like to ‘impress in the latter way’ so the goal is to make an impression in such a way that we remain etched in people’s memory,  that we are noticed wherever we go.

Our First and LAST impression as the first impression is obviously the Last.

The Ist Second

Smile a while

A sage and his disciple lived in a secluded cottage, near a village. The disciple would go to the village everyday to arrange for food. But he hated doing it, as he found the villagers very unfriendly. They hardly ever acknowledged his presence. The disciple never spoke to anyone in the village and when he did, it was to the bare minimum. He disliked the unfriendly and what he thought to be the ‘rude behavior’ of the villagers and therefore hated his visits to the village.

His guru had divined the disturbed state of mind of his disciple and one day decided to accompany him to the village. Upon entering the village, the disciple found to his utter amazement, that the same villagers greeted his Guru with smiles and salutations.

“Master, I have come to this village number of times and I’ve never seen the villagers so polite and friendly. What has brought this sudden change in them? What have you done?” asked the incredulous disciple.

“Nothing! I simply smiled at them “, replied the sage.

Then he went on to explain, “My smile brought them closer to me. And at close quarters I discovered that they are really friendly people and they discovered that I’m a friendly man.”

 “A smile is the best way to relieve the tension and break the ice.” You have Four seconds to create a wonderful first impression and you cannot do it without a smile. You might be wearing the best of attires but if you are not wearing a smile, you have lost upon the first crucial second of a first meeting. And this is true in every walk of life.

When you come across an unknown face, the lack of familiarity creates a chasm between the other person and you. A smile can help you bridge this chasm and give the ‘unfamiliar’ and opportunity to become ‘familiar’.

We want to reach out to people and build a connection with the world. The smile is surely the most economical and trusted way to forge such a connection.

“The way you smile reflects your attitude and before you realize, the other person has formed an opinion about you based on the way you smile.

Express the smile in a way that it exudes warmth. The only two facial features that you should move are your eyes and your lips. Make the jaw line responsive, so that the smile does not look artificial. Make your eyes reflect the smile on your lips. Your smile should convey confidence, not arrogance or pretence. Do not widen your eyes unnecessarily. Do not play with your nose. Do not have different smiles for different people. Do not put on a half smile. A half smile suggests reticence. Do not smirk. Smirking gives the impression of arrogance when you smirk to acknowledge somebody’s presence you are conveying that the other person is not important to you. A smile is another way of saying: I am happy with my life, I am happy with myself and I am very happy to get an opportunity to know who you are.”

Attitude stems from the way you think about people, and how you approach them. If your approach is not open minded and if you categorize people, then you are hindering your ability to meet new people and make better connections.

A smile costs nothing but gives you what no cosmetic on earth can – a pleasant and forthcoming appearance. A sincere and heartful smile elicits a similar response, bringing pleasure to the one who smiles and to the one who receives it. The ultimate valve of a smile lies in its ability to exude warmth. A genuine smile can induce feelings of happiness even if it is from a stranger. A smile is the most useful and economical way of making the first 4 seconds a gateway to a promising future. Smile your way, through life, for a smile is a win-win way of conquering life. When you smile, you form a situation. Your ability to form situations with the world is what makes you a good communicator. At the end of the day, the first four seconds do nothing but concludes how good a communicator you can be.

The 2^nd Second

An eye for Eye.

You should look into the person’s eyes and give him all the attention he deserves.

Every face speaks a language of its own, of which, the eyes are an important part. They determine how involved you are with another person, even before you start a verbal exchange/ when you meet a person, the most clinching part in the way your eyes are placed with that person, in that person. Look directly into that individually eyes. If your eyes are looking else where, then you are sending a signal that you are not interested, On the other hand, if you look directly into the person’s eyes, you create an instant bond. Keep your eyes completely open. While making eye contact. Do not wink or look half-heartedly. Do not stare at the person or look dazed. The expression in your eyes and the time span of your eye contact could determine your interest in the other person.

Eye contact plays a pivotal role in cross-cultural communication.

A prolonged eye contact, especially with ladies, can be taken as a offence in some cultures. Whereas in other cultures, not looking at a person in the eyes can be interpreted as a sign of dishonesty. Looking away while conversing can also prove to be a major hurdle in effective communication.

The 3^rd Seconds.

Shaken and Stirred.

Managing your hands in the most difficult thing to do while conversing. Many a time, the formalities of the spoken language take precedence over those of the body language. If you put your hands behind, it might make you look slavish. If you put them in the front, it may look as if you are attending a choir. The hands placed on the sides give you the perfect look. Maintaining such a posture requires practice. Limp hands on the sides do not portray the right image. Make sure the hands display energy. Keep your body erect and firm. Walk towards the person with a rhythm.

Handshake. The only physical warmth that you can share with somebody at the first instance is the handshake. It tells the other person how much you appreciate his being there.

The finger handshake: An extended finger instead of a palm suggests disinclination to meet the person.

The Double handshake: The double handshake tends to show excessive gratitude or inferiority complex and has a slavish undertone.

The halfhearted Handshake. A halfhearted handshake is a sure shot way of making the other person feels unimportant and defied.

The Gym Handshake. When you shake hands with some body, you are building a physical rapport and not displaying physical aggression.. So make sure that you are shaking the other person’s hand and not wringing it. Your handshake has to be firm and not bone-crushing.

The Perfect Handshake. Take your right handout at waist level and gracefully swing it into the other person’s hand. You have to make sure that the edge of your palm coincides with that of the person. Get a grip on the person’s palm and shake it steadily. Shake the hand and jerk it once. Do not keep jerking it, or holding it, as it will make the person uncomfortable.

A good handshake is very significant as this ordinary physical contact can symbolize the trust exchanged between two people. Though it is a simple gesture, it can be the deciding factor in meeting, interviews and social gathering.

Sometimes, some women may not shake your hand back. You must not take it personally or read it as an insult. It is best not to shake hands with a woman unless she offers her had first.

The 4^th Second

Speak well, Greet well

A greeting is the first verbal sign of respect that you show to the other person

Greeting is the beginning of vocal communication a greeting is always made while shaking hands. It can be of two kinds-formal or casual. One should always stick to a formal mode of greeting when meeting a person for the first time. A ‘good morning’ or ‘good afternoon is a very good way to greet a person.

While shaking hands, you have one second to address the person. A good greeting can make a lasting impression on a person.

Ø                        Do not lisp when you greet a person

Ø                        Be clear in your pronunciation

Ø                        Do not whisper or speak in a high pitch.

Ø                        Keep you tone melodious

The greeting is the last of the four seconds and the response you get from the person after you have greeted him is enough for you to judge the future.

How to respond to a greeting

There are close-ended answers and open-ended ones. A typical close-ended conversation would be as follows:

A:      Good afternoon

B:       Good afternoon

                                                  A:       How are you?

                                                 B:        Fine

      A:        Where do you live?

                                                 B        Nearby

A close-ended conversation leaves no scope for further dialogue and could lead to awkward silences.

On the other hand, a typical open-ended conversation would be as follows:

A         Good afternoon

B          Good afternoon

                                                A          How are you?

                                     B          Very well, thanks you. How about you?

                           A          I’m fine too. Where do you live?

                          B          Not too far from here. And you?

An open-ended conversation is full of reciprocity, where you are continuing the dialogue. While receiving importance from the other person, you must also learn to respond with appropriate question so that he feels equally important and attended to. This helps in prolonging a conversation after the first four seconds.

One of the most common problem is body odour, due to which people feel diffident. The simplest solution is to wear deodorants, perfumes or colognes.

A GREETING IN COMBINATION WITH A SMILE, EYE CONTACT AND HANDSHAKE HELPS YOU CREATE THE PERFECT, LASTING IMPRESSION!

WINNING STRATEGIES

WINNING STRATEGIES

The mantras are narrated below:

- Selecting the best: i.e. employing the right people especially at senior positions, having a positive attitude, the ability to inspire others and the potential to grow and assume higher responsibilities for contributing to the success of the organisation. ‘Superior talent will be tomorrow’s prime source of competitive advantages, we bet on people, not strategies’.

-Agile organisation: i.e. being able to take the changing scenario in its stride. A ‘High Speed’ culture enables an organisation to be more sensitive to its goals and objectives while taking into account the demand of the existing business department.

“Speed has to be inbuilt in the organisation’

-Be small but look big: Globalisation is erasing boundaries and building a network between nations and people. So, flat structure and adaptive people shall be the slogans of the next millennium and this could be done through out-sourcing secondary functions and by giving emphasis to and strengthening core competencies to boost up profit and future growth and build a strong reputation of the organisation in the corporate world.

-Investment in people: Human Resource in an organisation is its most renewable source.

The key issue should be optimum utilisation of intellectual capital and to capitalise the creativity and talent available by giving due recognition to those who have made exemplary efforts in implementing improvements and creating innovations.

Contd../2

(2)

A big strength of GE (General Electric) lies in its mastery in motivating people. GE’s CEO, Jack Welch, himself reviews the performance of the Co.’s top 3,000 managers every year and suggests the desired changes, thanks them, and takes note of their family crises.

So, to be successful, organisations need Managers who are “ Loving & Caring” and are employee- oriented.

-Culture of learning and adaptability: New and innovative concepts are to be continuously learnt and adapted in the organisations. By applying the latest and the best management practices and also by leveraging the knowledge of employees as well as database/ archives, an organisation could gain a significant competitive advantage

 

A closer interface/ interaction between Industry and Academic Institutions has immense potential to benefit both.

This has been corroborated by HDFC Chairman- Deepak Parekh when he says:   “The real advantage one company has over another in a highly competitive and  ‘information- sensitive’ economy, is the ability of its managers to learn faster than its competitors”.

-Synergy of resources is possible only when the team is integrated and the team can only be integrated when the team members share different thoughts and actions together.

The key to success is the optimum utilisation of resources, infrastructure and human capital and this can be done through skill tracking.

“Challenge is how to trap the organisation’s hidden wealth which means full utilisation of its human competencies”

Some companies like DR. Reddy’s laboratories and Crompton Greaves are already putting their human capital into the asset part of their balance sheet.

The second section, titled ‘Dynamics of Success’ is devoted to the importance of change and adaptability and unleashes the entire strategy of success. The phrase of  ‘Dynamics of Success’ is narrated letter by letter in this section

D :   Develop new generation business leaders who through their talent can bring about 

the metamorphosis from the existing state to the desired state. Leadership is the foundation of sustained profitability.

Y:    Young talent should be encouraged to give a fresh look to the organisation and also   

         to blend the past experience with future enthusiasm to achieve the future goals.

N :    Need for “ Knowledge Management” to regain the edge. Successful companies will

         be the ones that will best do the job of capturing, storing and leveraging what their

         employees know. ‘ Knowledge will be the new currency of the Millennium’.

A:     Adopt and adapt to a flexi system by switching over to flexible timings and

         adaptation to new technology to make the managers’ life easier.

M :   Make individuals a part of the Vision and the Objective of the company

Contd../3

(3)

“People perform better when the organisational goals are aligned with the individual interest.”

I :   Interface between the industries and various academic institutions  to make good use of genuine and innovative ideas of  professional institutes for achieving excellence

C :  Concentration on ‘Competency Development’ to ensure survival of contemporary business

S:  Shifting the attitude from Control to Support and giving the highest value to humanity- treating people with the fullest dignity and in a humane manner.

O :  Openness so as to ensure a paradigm shift in the organisational culture and environment along with free flow of information and knowledge through interactive forums.

F :  Focus on Excellence in All Spheres ranging from customers’ needs, customer service,  customer retention– it is very imperative for today’s managers to maintain their competitive edge.

S : Self motivation - ensure that people working in the organisations are motivated and inspired enough to be fit and to excel in work, and let them feel that opportunities never come to those who wait-  they are captured by those who attack.

U : Utilising the vast potential that lies dormant within each individual. Most of the individuals do not realise their hidden potential, which is to be tapped by a good leader

         

C : Continuous Improvement Process.

“ Success is not achieved by luck or fate, it is achieved only when an individual takes a decision to succeed  with a clear goal followed by persistent action.”

C : Creativity – It is an organisational necessity - because it helps the organisation to come up with improved productivity and higher consumer satisfaction, which is the goal of every dynamic organisation.

          “ Creative Solutions Need Creative Minds”

E : Effective Leadership and Participation – always makes a winning, unbeatable and result oriented team. Hence, thrust should be given to developing effective leadership , not only at the top level, but also at the middle management level and the floor level.

S : Sensitive to New Business Environment- revolution in IT and new business processes have made business more responsive, less time consuming, effective and productive.

S : Success – “ Success is a journey and not a destination”- To be successful we have to follow the very spirit of all the narrations made above and also to adapt to changes as  has been revealed by Theodore Livitt in the article “ Marketing Myopia” when he states that every major industry was once a growth industry……… In the case of industries with declining growth, the reason of failure was not always a saturated market, rather it was due to failure of the management to adapt to the impending change.

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The third section, on “Motivation for Enhancing Employee Morale”, emphasises the role of organisation in developing individuals as self starters to enable them to set their own goals and accomplish them within the prescribed time. The role of business is not only to make good quality products, make profits and serve the customer well but it is also necessary to keep the internal customers i.e. employees, satisfied, inspired and motivated.

“Unsatisfied employees can never satisfy external customers”

It is true that people work for money but they do need love, care, praise and recognition/ appreciation to go that extra mile. They want tangible proof that someone really cares about the job they do and reward is just a symbol of that.

So, identifying the strengths of individuals and spotting talent in them; Carrier Planning and Career Growth; Celebrating Success at every milestone; Competency Development etc. are some of the issues that are to be taken care of for the healthy growth of the organisation.

 ‘The seemingly under average employees could turn out to be the distinguished ones, if their area of strength is recognised and channelised, so as to match job assignment and also to make them feel that the superiors are consciously caring for their career and any suggestions for improvement are communicated for their own good.’

The fourth section –“Developing Goal Managers in a Cross Cultural Environment”-

reflects the significance of  Global Managers in the globalised environment who through  

 ‘Orientation to the global market’ and ‘Developing a Universally Acceptable Working Culture Ability’, are able to meet the expectations of the foreign counterparts to answer the  questions related to some critical issues, ranging from impact of competitiveness to

being late entrant, to chances of profitable growth, to their fitness in the new culture generated by the new international business scenario  ……

“ A Winning Manager is the one with winning ways across the globe”

The fifth section, titled ‘Speaking to Influence’ spells an effective strategy for developing the art of communication and presentation and starts with  a quote :

“ Mostly people are good at what to say but poor at how to say”

which has been very adeptly supported by a situation where a presentation is to be made to a foreign collaborator. The manager is ready with perfect data and slides but he is thoroughly  confused, nervous and his body language indicates that he wants to get over with the presentation as soon as possible and when the show is over , it creates such a weak/ poor impression that the foreign collaborators refuses to enter into any deal with the company.

“ All communications serve both, a practical purpose as well as an inspirational purpose. Make your communication both”

The sixth and the last Section – “Coping With Executive Stress” is devoted to the first and foremost priority of our lives i.e. managing stress in our personal as well as professional lives.  Stress is the most frequently used word in the workplace today. Long

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working hours, overload, deadline pressure, execessive touring, and no time for family leading to domestic disharmony are a few of the top stresses which executives of today are complaining about.

 

This section dwells in detail about the sources  and consequences of stress .  Sources of stress, ranging from the tension of the past to the anxiety of future, can be broadly classified  into :

External Sources – uncertain future, tyrannical superiors, unreasonable targets etc.

Self- generated stress  - confused priorities, poor time management, emotional immaturity, incompatibility with spouse and/or superiors and colleagues etc.

We should not ignore stress because it may be just the beginning of a long drawn battle with a problem related to stress such as  restlessness, sleeplessness, frustration etc..

 These long drawn consequences of stress may ultimately lead to acute depression and domestic disharmony if not treated timely because

“when under stress , an individual experiences symptoms which are not normal to his behaviour

So to ELIMINATE STRESS for SUCCESS

·        treat your family as the foundation for your success because it is the pillar of strength in your lives

·        develop your subordinates because if you make others winners, you are already a winner.

·        Keep refreshing surroundings because a healthy ambience helps a person to be cheerful, relaxed and away from stress

·        Plan the work and decide priorities ,understand constraints to accomplish your job successfully, and enjoy the success

·        Be self reliant and independent to make yourself ready for hiccups which may arise due to organisational changes like downsizing, retrenchment or unexpected increase in work load etc.

Stress is not always harmful. In the right amount, stress helps in making a person stay alert, reflexive and proactive. But an effort has to be made by the individual and the organisation as a whole to reduce the stress by mutual setting of goals, regular feedback etc. because - ‘If you look for the positive things in the life , you will find them’.

Ultimately, never forget :

 “If you want harmony in your country, you must have harmony in your society, you must have harmony in your family and you must have harmony in yourself.”

                                                                             (A quote by Confucious)