All the best for your jaiib exam

All the best for your jaiib exam

Luck is a funny thing because sometimes it can be good and sometimes it can be bad. So take matters in your own hand, study hard and stop relying on something so fickle. All the best.

The best way to motivate yourself is to stop stressing about what’ll happen when things go wrong and start thinking about how awesome life will be when they go right. Good luck.

wish you success in your exams messages

If you believe in yourself you do not have to fear any challenge. I wish you all the success for your exam!

You prepared well, You know it all right, Just relax over the night. Morning will come and so will the test Don’t you worry; you just need a little rest. Best of luck for exam!

Today's 17.11.2018 msme recollected

115 Questions out of 120 was theoritical

1.FIWE location
2.MSME definition
3.ITCOT location
4.SMERA
4.CREDIT rating agency
5.DER
6.DSCR
7.BEP
8.Margin of safety
9.cluster in different countries
10.msme for IT sector
11. All 5 Numericals from ratios only.
12.WTO was established in
13.few questions with all the above , 1 and 2 above types..5 Q on sick unit npa and rehabilitation criteria ....
14. And other questions as discussed in this portal ..Today ques #MSME
priority sector 3que
Msme classification 3 ques
Composit lone limit
credit gurantee 2 ques
Export finance 3 ques
Pre shipment
cluster benifit
Ratio baesd 4ques
Service enterprises 3 ques
Llp3que
Minor
Partnership firm2quea
Ots by whom
Sickness 3..4que
Rehabilitation scheme
Viable state

Note = read book line by line with updated data nd recollected ques from grp


Questions on wto establishment year
Sarfaesi establishment year
Problems related to msme investment in service ans ma ufacturing
Problem on der,dscr,asset coverage ratio, working capital gap, working capital turnover ratio and current ratio,
Wilful defaulter,
Women entrepreneur
Internal and external cause of sickness,
Msme stages of establishment,
Cluster selection process,
5 c
Questions from named act

Internal Ombudsman Scheme 2018 Introduced For Scheduled Commercial Banks

Internal Ombudsman Scheme 2018 Introduced For Scheduled Commercial Banks

The Reserve Bank of India had, in May 2015, advised all public-sector and selected private and foreign banks to appoint Internal Ombudsman (IO) as an independent authority to review complaints that were partially or wholly rejected by the respective banks. The IO mechanism was set up with a view to strengthen the internal grievance redressal system of banks and to ensure that the complaints of the customers are redressed at the level of the bank itself by an authority placed at the highest level of bank’s grievance redressal mechanism so as to minimize the need for the customers to approach other fora for redressal.

As a part of this customer-centric approach, to enhance the independence of the IO while simultaneously strengthening the monitoring system over the functioning of the IO mechanism, RBI has reviewed the arrangement and issued revised directions under Section 35 A of the Banking Regulation Act, 1949 in the form of ‘Internal Ombudsman Scheme, 2018’. The Scheme covers, inter-alia, appointment/tenure, roles and responsibilities, procedural guidelines and oversight mechanism for the IO.

All Scheduled Commercial Banks in India having more than ten banking outlets(excluding Regional Rural Banks), are required to appoint IO in their banks. The IO shall, inter alia, examine customer complaints which are in the nature of deficiency in service on the part of the bank, (including those on the grounds of complaints listed in Clause 8 of the Banking Ombudsman Scheme, 2006) that are partly or wholly rejected by the bank. The implementation of IO Scheme, 2018 will be monitored by the bank’s internal audit mechanism apart from regulatory oversight by RBI. 

What is the Banking Ombudsman Scheme?

The Banking Ombudsman Scheme is an expeditious and inexpensive forum for bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995. Presently the Banking Ombudsman Scheme 2006 (As amended upto July 1, 2017) is in operation. 

Which are the banks covered under the Banking Ombudsman Scheme, 2006?

All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.

21 Banking Ombudsman centres: 

Currently, there are 21 Banking Ombudsman centres operating in the country. The 21 centres are located in different cities viz. Ahmedabad, Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Kanpur, Kolkata, Mumbai (I), Mumbai (II), New Delhi (I), New Delhi (II), Patna, Thiruvananthapuram, Dehradun, Ranchi, Raipur, and Jammu. 

40 powerful quotes to help you study hard for your exams

40 powerful quotes to help you study hard for your exams

The quotes are listed below according to the following categories:

Believing in yourself
Cultivating a success mindset
Overcoming procrastination
Hard work
Not making excuses
Perseverance

Believing in yourself
1. Believe you can and you’re halfway there.

2. You have to expect things of yourself before you can do them.

3. It always seems impossible until it’s done.

4. Don’t let what you cannot do interfere with what you can do. – John Wooden

Cultivating a success mindset
5. Start where you are. Use what you have. Do what you can. – Arthur Ashe

6. Successful and unsuccessful people do not vary greatly in their abilities. They vary in their desires to reach their potential. – John Maxwell

7. The secret of success is to do the common things uncommonly well. – John D. Rockefeller

8. Good things come to people who wait, but better things come to those who go out and get them.

9. Strive for progress, not perfection.

10. I find that the harder I work, the more luck I seem to have. – Thomas Jefferson

11. Success is the sum of small efforts, repeated day in and day out. – Robert Collier

12. Don’t wish it were easier; wish you were better. – Jim Rohn

13. I don’t regret the things I’ve done. I regret the things I didn’t do when I had the chance.

14. There are two kinds of people in this world: those who want to get things done and those who don’t want to make mistakes. – John Maxwell

Overcoming procrastination
15. The secret to getting ahead is getting started.

16. You don’t have to be great to start, but you have to start to be great.

17. The expert in everything was once a beginner.

Hard work
18. There are no shortcuts to any place worth going. – Beverly Sills

19. Push yourself, because no one else is going to do it for you.

20. Some people dream of accomplishing great things. Others stay awake and make it happen.

21. There is no substitute for hard work. – Thomas Edison

22. The difference between ordinary and extraordinary is that little “extra.”

23. You don’t always get what you wish for; you get what you work for.

24. It’s not about how bad you want it. It’s about how hard you’re willing to work for it.

25. The only place where success comes before work is in the dictionary. – Vidal Sassoon

26. There are no traffic jams on the extra mile. – Zig Ziglar

27. If people only knew how hard I’ve worked to gain my mastery, it wouldn’t seem so wonderful at all. – Michelangelo

Not making excuses

28. If it’s important to you, you’ll find a way. If not, you’ll find an excuse.

29. Don’t say you don’t have enough time. You have exactly the same number of hours per day that were given to Helen Keller, Pasteur, Michelangelo, Mother Teresea, Leonardo da Vinci, Thomas Jefferson, and Albert Einstein. – H. Jackson Brown Jr.

Perseverance
30. Challenges are what make life interesting. Overcoming them is what makes life meaningful. – Joshua J. Marine

31. Life has two rules: 1) Never quit. 2) Always remember Rule #1.

32. I’ve failed over and over and over again in my life. And that is why I succeed. – Michael Jordan

33. I don’t measure a man’s success by how high he climbs, but how high he bounces when he hits the bottom. – George S. Patton

34. If you’re going through hell, keep going. – Winston Churchill

35. Don’t let your victories go to your head, or your failures go to your heart.

36. Failure is the opportunity to begin again more intelligently. – Henry Ford

37. You don’t drown by falling in the water; you drown by staying there. – Ed Cole

38. The difference between a stumbling block and a stepping-stone is how high you raise your foot.

39. The pain you feel today is the strength you will feel tomorrow. For every challenge encountered there is opportunity for growth.

40. It’s not going to be easy, but it’s going to be worth it.

Current Affairs on 16.11.2018

Today's Headlines from www:

*Economic Times*

📝 BigBasket records sales of over Rs 2,000 crore

📝 Tata Sons said to have been asked by govt to explore buying Jet Airways stake

📝 Trai floats paper on discontinuing printed phone bills

📝 HDFC likely to raise $1 billion via 1st dollar bond sale

📝 Bharti Infratel seen as potential buyer of Voda Idea’s fibre assets

📝 ITC looks to expand food portfolio to boost turnover

📝 Mahindra Electric Mobility opens Rs 100-cr manufacturing hub in Bengaluru

📝 October trade deficit widens to $ 17.13 billion

*Business Standard*

📝 Hershey's still in the red, even as loss reduced to Rs 850 mn in 2017-18

📝 Amtek Auto lenders plan to take legal action against Liberty House

📝 Agri input firms see higher Q2 profits due to rise in sales, normal monsoon

📝 Gold imports dip 43% to $1.68 bn in Oct on low demand, depreciating rupee

📝 NHPC board approves buyback of equity shares at Rs 28 apiece for Rs 6 bn

📝 RInfra Q2 net profit posts 49% slip to Rs 2.77 bn from Rs 5.43 bn

📝 Top hedge fund Avendus Capital turns to state-run banks as bad loans wane

*Financial Express*

📝 India’s real GDP growth expected to be at 7.8% in FY19, up from 6.7% in FY18, says Fitch

📝 IL&FS arm defaults on Rs 4.66-crore NCD repayments

📝 Jawa re-enters India with three new bikes

📝 10-year G-Sec yield to trade in 7.6-8% range till December: Report

📝 Telcos instal 6.34 lakh BTSs, 65,000 mobile towers in last two years

📝 T-Series poised to take numero uno position on YouTube soon

📝 Walmart puts Amazon on notice with sales beat, rosy outlook

*Mint*

📝 Wall Street rises on hopes of easing US-China trade tensions

📝 Indian Hotels narrows Q2 loss to ₹5.21 crore

📝 NCLAT nod to UltraTech’s Binani Cement bid sets precedent

📝 Uber announces rewards program for ride-hailing, food delivery

📝 Tencent in talks to join group bidding for Amer Sports

📝 Govt invites bids from i-bankers for selling stakes in NIACL, GIC

📝 Tesla to deliver new Model 3 orders by year end.

Return on Assets – how it can be improved.

Return on Assets – how it can be improved.
 By improving the profits.
 Following are the major components of the Assets side of Bank‟s Balance Sheet.
 Fixed Assets. Furniture. Investments. Loans and Advances. Cash in hand and Balance with Banks (including RBI).
Other Sundry Assets.
 We have to minimize out spending on Fixed Assets and Furniture and maximise their utilization.
 The return on Investments are market driven and we do not have much control on them. However they have to be
cleverly deployed to maximise the returns with minimum risk.
 We should maintain the quality of our Loans and Advances and also maintain good Net Interest Income.
 We should not keep idle cash or bank balance which is a drain on our profits.
 Other Sundry Assets to be closely monitored so as to avoid long outstanding entries.

DRT MATTERS

DRT MATTERS

1. The normal cut off limit to file an application in DRT shall be Rs. 20 lakhs and above

2. Where the cases before Debt Recovery Tribunal are decided, Tribunal awards Certificate of

Recovery (RC – Recovery Certificate).

3. The appeal on a DRT judgment is to be filed at Appellate Tribunal at respective centres

4. Whether already decreed accounts in various courts can be transferred to DRT YES, Where E P

amount reaches Rs. 20 Lakhs & above

5. Cases before DRT are presented by- Empanelled Advcoate



6. An appeal against the decision of DRT can be filed by customers - Before appellate tribunal (DRAT)

7. Time limit for filing application with DRT for Recovery Certificate in respect of civil court decrees

passed for less than Rs.20 lakhs 3 years from the date when the decretal amount accrues to Rs. 20

lakhs

GENERAL ASPECTS

1. Garnishee order is issued by: Any competent court

2. An income tax attachment order has been received in the name of Mr. Mishra who has an FDR

with your branch. The FDR has already matured for payment. Before payment to IT authorities -The

bank need not insist on production of FDR

3. A banker owes to his customer certain duties as implied contract out of which the most important

duty is - Duty of secrecy

4. Under Bankers Book Evidence Act, 1891 certified copies of banks books are admissible as

evidence in the court.

5. Bank A requests the Bank B for opinion on one of its customers. Bank B Will give information in

general terms disclaiming any responsibility

6. The person attesting the thumb impression/furnishes the attestation in Form No.821 must know

the language in which the loan documents are executed

7. Following documents need not be witnessed Agreement, hypothecation, Pledge etc

8. Which of the following documents need attestation? Mortgage Deed, Sale Deed, Will, Indemnity

Bond etc

9. When an advance is made to a Joint Hindu Family, the Loan documents are to be Signed by Only

the Kartha. However it is advisable to get it signed by all major members including female members

and minors to be represented by respective natural guardians.

10. Registration of documents is compulsory under Section 17 of the Registration Act in the case of

Gift, Sale Deed, Simple Mortgage etc

11. Payment of a cheque is complete: When cash is parted with

12. The Registration of a Will is: Optional



13. Average Clause ― in the insurance policy restricts the amount of claim in proportion to amount

of insurance and value of security.

14. Following documents can be treated as legally valid only originally typed copy of loan agreement

(not on copy/ carbon copy)

15. Legally, Bank is in order if part of the blank columns in the loan papers are filled up subsequent

to execution, if The executants put their signature authorising such filling up, after filling up

16. Stop payment instructions can be issued by Drawer

17. When cheques or bills of exchange are collected by the bank on behalf of its customer, the

relationship between them is that of A principal and an agent

18. What is the alternative if presenter of a cheque refuses to sign on its reverse? Money can be paid

after obtaining receipt on separate paper

19. A corporate customer requests the bank for returning to them the cheques drawn by them and

already paid by the bank - The cheques can be returned periodically after retaining the true copies

on record. The cost to be borne by the customer

20. Can the original cheques be returned to the drawer after payment?

YES, the bank can return the paid cheques if requested within the period for which bank is required

to preserve them

21. The banker and purchaser of a demand draft have a relationship of Seller and purchaser

22. The Banker can disclose information about the customer - When the customer expressly or

impliedly permits disclosure/when the Banker is compelled by law/when the Banks own interest is to

be protected.

23. In case of telegraphic transfer (RTGS/NEFT) of funds the relationship between the banker and

the remitter is that of Principal and agent

24. Collection of supply bills is undertaken by banks on the strength of Power of Attorney given by

supplier in favour of bank

25. Presentment of the bills received for collection to the drawees is done at - The address

mentioned in the bill/hundi

26. Whether protection is available to the bank for collection of inward bills received by it Under N I

Act NO

27. Banks keep cash in currency chest as a bailee

28. Supply bills are Not accompanied by Document of Title to Goods, are actionable claims and not

governed by N I Act

29. A suit against a common carrier for loss of or injury to goods entrusted to him for carriage

cannot be filed - Unless a written notice of such a loss is given within 6 months from the date of

notice of loss before institution of suit

30. Whether partner‘ s interest in a firm can be attached before judgment YES

31. The time limit for impleading legal heirs in a pending suit is 90 days from the notice of the date

of death

32. The Stop-Payment Instruction given by one of the two joint account holders can be lifted by:

Both of them jointly

33. The periodical interest payable on such deposits should be credited... Credited to respective loan

account, if any loan is a sanctioned against it.

34. With in how many days the rectification and compliance report of shortcomings pointed by

Labour enforcement officials during their inspection under Payment of Gratuity Act, 1972, Equal

Remuneration Act, 1976 and Payment of Bonus Act, 1965 should be sent to Deputy Chief Labour

Commissioner/Regional Labour Commissioner and Labour Enforcement Officer -Within 2 days by

Regd Post

LETTER OF CREDIT

LETTER OF CREDIT
Aletterof credit isa commercial instrumentofassuredpaymentandwidelyusedbythebusiness community for its variousadvantages. InanLC,a
bankundertakes tomakepayment toa selleronproductionofdocuments stipulatedinthecredit.
Parties to LCs
a: Applicant- The buyer I importer of the goods (generally borrower of the issuing bank). The applicant has tomake payment if documents
asper LCaredelivered,whether the goods areasper contractbetween thebuyer andbeneficiaryornot.
b: Issuing bank - Importer's or buyer's bankwho lends its name or credit. It is liable for payment once the documents under LC are received
by it fromnominated (negotiating) bank, irrespective of the factwhether it is able to recover the payment fromapplicant or not. It gets 5.
banking days tocheck thedocuments.
c: Advising bank - Issuing bank's branch (or correspondent in exporter's country) towhomthe letter of credit is sent for onward transmission
to the seller or beneficiary, after authentication of genuineness of the credit. Where it is unable to verify the authenticity, it can seek
instructions from the opening bank or can advise the LC to beneficiary, without any liability on its part. This bank has no obligation to
negotiatethedocuments.
d: Beneficiary - The party to whomthe credit is addressed i.e. seller or supplier or exporter. It gets payment against documents as per LC
fromthenominatedbankwithinvalidityperiod for negotiation,maximum21 days fromdateof shipment.
e: Negotiating bank - The bank towhomthe beneficiary presents the documents for negotiation. It claims payment fromthe reimbursing
bank or opening bank and gets S banking days to check thedocuments,
f: Reimbursing bank- 3rd bank which repays, settles or funds the negotiating bank at the request of its prindpal, the issuing
bank.
g: Confirming bank - The bank adding confirmation to the credit, which undertakes the responsibility of payment by the issuing bank
and on his failure to pay. The confirmation is added on request of the opening bank.
TYPESOF LETTERSOFCREDITS
DA (Mance) or DP LCs:
DA LCs are those,where the payment is to bemade on thematurity date-in terms of the credit. The documents of title to goods are delivered
to applicantmerely on acceptanceofdocuments forpayment.Hemakes the payment onduedate.To thatextent these areunsecured.
DP LCs are thosewhere thepayment ismade against documentson presentation.
Irrevocable&Revocable LCs:
An irrevocable LC is one, which can be cancelled or amended with consent of beneficiary, applicant bank and confirming bank, if any. A
revocable credit is one that can be cancelled or amended at any time without the prior knowledge of the beneficiary. If the negotiating bank
makes a payment to the seller prior to receiving noticeof cancellation or amendment, the issuing bankmust honour the liability.
Ifnothing is stated, theLCis irrevocable.
With orwithout recourse LCs:
Where the beneficiary holds himself liable to the holder of the bill if dishonoured, it is considered with-recourse LC.Where he does not hold
himself liable, the credit is said to bewithout-recourse. As per RBI directive (Jan 23, 2003), banks should not open such LCs.Under LC, the Banks
can negotiatebillsbearing the 'without recourse' clause.
A restricted LC is onewherein&specified bank is designated to pay, accept or negotiate.
ConfirmedLCs:
It is a credit to which the advising or other bank at the request of the issuing bank adds confirmation that payment will be made. The
confirming bank's liability is similar to the issuing bank. The confirming bank has to negotiate documents if tendered by the beneficiary.
Transferable LCs:
It is an LC, where the beneficiary is entitled to transfer the LC, in whole or in part, to the 2' beneficiary/s (supplier of beneficiary). The 2'
beneficiary, however, cannot transfer it further, but can transfer the unused portion, back to the original beneficiary. It is transferable only
once.
A back to back credit is the 2nd LC opened by the original beneficiary in favour of the 2" beneficiarywho is his local supplier. Ile tenders the
original LC to the bank in his country as a cover for opening the 2' LC. The terms ' of such creditwould be identical except that the pricemay be
lower and validity earlier.
A red clause credit also referred to a packing or anticipatory credit, has a clause permitting the correspondent bank in the exporter's country to
grant advancetobeneficiaryat issuingbank'sresponsibility. Theseadvancesareadjustedfromproceedsofthebillsnegotiated.
A green clause LC permits the advances for storage of goods in a warehouse in addition to pre-shipment advance. It is an
extension of the red clause LC.
Standby credits is similar to performance bond or guarantee, but issued in the formof LC. The beneficiary can submit his claimbymeans of a draft
accompaniedby the requisitedocumentary evidenceofperformance, as stipulated inthe credit.
DocumentaryCredits:
When LC specifies that the bills drawn under LC must accompany documents of title to goods such as RRs or MTRs or Bills of lading etc. it is
termed asDocumentary Credit. If any such documents are not called, the creditis said to be Clean Credit.
RevolvingCredits:
These LCs provide that the amount of drawingsmade there underwould be reinstated andmade available to the beneficiary again and again for
further drawings during the currency of credit provided the applicant makes the payment of documents earlier negotiated. At times, an overall

turnover cap is also stipulated.
Instalment Credit:
It is a letter of credit for the full value of goods but requires shipments of specific quantities of goodswithin nominated period and allows for partshipment.
In case any one instalment of shipment ismissed, creditwill not be available for that and subsequent instalment unless LC permits it.
DOCUMENTSUNDER LETTEROF CREDIT
Liability of an opening bank in a letter of credit arises,when thebeneficiary delivers the documents strictly drawn asper terms of the letter of
credit. Thesedocuments include the following:
Bill of exchange: This is the basic document which requires to be discharged bymaking the payment. It is defined u/s 5 of NI Act. The right to
drawthis document is available to beneficiary and the amount, tenor etc. has to be in terms of the credit.
Invoice : This document provides relevant details of the sale transaction, which is made in the name of the applicant, by the
beneficiary. The details regarding, quantity, price, specification. etc. should be same as mentioned in the letter of credit.
Transport documents: It evidences the despatch of the goods by the beneficiary, by handing over the goods to the agent of the applicant, which
may be a ship, railways or a transport operator, who issues documents such as such as bill of lading, railway receipt, transport receipt. Other
documents could beAirway Bill or Postal or courier receipt.
Insurance : The despatched goods are required to be insured for transit. Insurance policy or insurance certificate should be signed by the
company or underwriter or their agent. Amount, kinds of risk etc. should be same asmentioned inthe letter of credit.
Other documents: The letter of creditmay also specify other documents to bepresented alongwith the abovedocumentswhichmay include
certificateoforigin, certificate fromhealth authorities etc.
Forward Contracts in Foreign Exchange
Forward contract is a contract which affords adequate protection to an exporter or an importer against exchange risk. Under these contracts, a
banker and customer enter into an agreement to buy or sell a fixed amount of foreign currency on a future specified date at a pre-determined
rate of exchange. Exporter, for instance sells foreign exchange of specified amount and currency at a specified future date which assures him
definite payment and the banker agrees to buy the same amount and currency at a pre determined rate, which assures himdefinite availability
of foreign exchange. A forward contract transactionmay end up in delivery on due date, early or late delivery, cancellation on due date, early or
late cancellation or extension on duedate and early or late extension.

GUARANTEES

GUARANTEES
During the course of business, banks are often required to furnish guarantees on behalf of their own customers in lieu of their
obligations, performance or other requirements. Section 126 of Indian Contract Act 1872, defines guarantees as a contract to
perform the promise or discharge the liability of a third person in case of his default.
Typesof guarantees
Financial Guarantees: These are direct credit substitutes wherein a bank, irrevocably undertakes to guarantee the repayment of 8 contractual
financialobligation. Financial guaranteesessentially can-ythesamecredit risk asadirectextensionof credit i.e., theriskof loss isdirectly linkedtothe
creditworthiness of the counterparty againstwhoma potential claimis acquired. Example : a)Guarantees for credit facilities; b)Guarantees in lieu
of repayment of financial securities; c) Guarantees in lieu ofmargin requirements of exchanges; d) Guarantees formobilisation advance, advance
money before the commencement of a project and formoney to be received in various stages of project implementation; e) Guarantees towards
revenuedues, taxes, duties, levies etc. in favour of Tax/ Customs / Port / ExciseAuthorities and for disputed liabilities for litigation pending at courts; f)
CreditEnhancements; g)Liquidityfacilitiesforsecuritisationtransactions; g)Acceptances(includingendorsementswiththecharacterofacceptance ; i)
Deferredpaymentguarantees.
PerformanceGuarantees: These are transaction-related contingencies that involve an irrevocableundertaking to pay a third party, in the event
the counterparty fails to fulfillor performa contractual non-financialobligation. Example : a. Bid bonds; b. Performancebonds and export
performance guarantees; c.Guarantees in lieu of security deposits / earnestmoney deposits (EMD) for participating in tenders;d. Retention
money guarantees; e.Warranties, indemnities
Deferred payment guarantee
This is a guarantee for a paymentwhich hasbeen deferred or postponed. In caseofpurchaseof capital goods likemachinery, thenecessity to
issuedeferred payment guarantee arises. In such guarantees, thebanks area undertaking to pay the instalmentsdue under thedeferred
payment schedule.Unlike allother LGshere thepaymentwill have to bemadeby thebanks on the accepted duedates and thereafter the
instalment is recovered fromthe party.
Advance payment under DPG: The terms of payment for the purpose of such guarantee, are normalt7 advance payment of 10-15% of the
price of the capital goods and payment of another 10-15% on receipt of the goods/documents. The balance amount, along with interest, is
payable ininstalments spreadover a period of 3-7years;which is secured by thedeferred payment guarantee.
Appraisal for DPG: The appraisal of a proposal involving issue of deferred payment guarantee has to be undertaken as it is done in case of a
termloan to see the long termviability of the operations, since the payment is tomadeout of the future cash generation fromthe activity.
PaymentMechanismunderDPG: As regards the paymentmechanism, normally the sellers drawusance bills of exchangewhich are accepted
by the buyer and counter-accepted by the buyer's bank (bank giving the guarantee). These bills are discounted by the sellerwith his bank and
on due date the seller's bank presents the bills for payment, which the issue bank pays to the debit of buyer's account.Where the buyer's
account does not permit such debit, bank has to pay the due amount and initiate steps to recover the payment from the buyer. Security :
Banks secure such guaranteesbyhaving chargeonthe assetspurchased andalso counter guaranteeof thebuyers.

SARFAESI ACT

SARFEASI ACT

• The act has two parts, first part stands for securitization and reconstruction of financial assets and

other part is enforcement of security interest.

• Eligible assets under the act may be enforced without intervention of court or tribunal with the laid

down procedure under the act.

• If party failed to deposit the amount, possession of charged/ secured assets is obtained from the

bank under section 13(4) of the act. Publication of possession notice in the act within 07 days is

mandatory.

• No secured creditor shall exercise any right, unless exercise of such right is agreed upon by the

secured creditors representing not less than 3/4th in value of the amount outstanding.

• If borrower restricts the bank to take physical possession of secured assets, petition is filed under

section 14 of the act to the CMM/DM praying to get the physical possession of the assets.

• No action is taken before 45 days of taking possession, as 45 days time is given under the act to

appeal against the action of the bank.

• Appeal with DRT can be filed by the party only after taking possession of the assets under section

17 of the act. Thereafter appeal can also be filed with DRAT under section 18 of the act. Civil court

does not jurisdiction to entertain any suit under provision of the act.

• Secured assets can be disposed off / sold giving 30 days notice to the parties concerned followed

by 30 days publication of sale through auction/ tender notice of these assets in the vernacular

newspaper and national daily.

• 60 days notice is served under 13(2) of SARFEASI

• Action is taken for the dues exceed Rs.1 lakh

• Agriculture Land and lease hold property can not be enforced

• Appeal is made within 45 days of possession of secured asset



• 30 days notice is served indicating there in the sale of asset

• 30 days publication is made for auction of secured assets

• Possession of property is obtained under 13(4) SARFEASI Act

• Publication of possession of property -within 7 days from the date of possession.

• SERFEASI ACT 2002 does not apply to the following assets –

A -lien on any goods, money or security.

B -A pledge of moveable.

C – Creation of any security in any aircraft or vessel.

D – Any property that can not be attached under any other law.

E – Any security interest for securing repayment any financial asset not exceeding Rs.1 lac.

F – Any case in which the amount due is less than 20% of the principal amt.

G – Any interest created in agriculture land.

LIMITED LIABILITY PARTNERSHIP ACT - 2008

LIMITED LIABILITY PARTNERSHIP ACT - 2008
Need for the New Corporate Entity – LLP

Concept, Condensed form of the Act
1. With the growth of the Indian economy, the role played by its entrepreneurs as well as
its technical and professional manpower has been acknowledged internationally.  It is
felt opportune that entrepreneurship, knowledge and risk capital combine to provide a
further impetus to India’s economic growth.  In this background, a need has been felt
for a new corporate form that would provide an alternative to the traditional partnership,
with unlimited personal liability on the one hand, and, the statute-based governance
structure of the limited liability company on the other, in order to enable professional
expertise and entrepreneurial initiative to combine, organize and operate in flexible,
innovative and efficient manner.
2.   The Limited Liability Partnership (LLP) is viewed as an alternative corporate business
vehicle that provides the benefits of limited liability but allows its members the flexibility
of organizing their internal structure as a partnership based on a mutually arrived
agreement. The LLP form would enable entrepreneurs, professionals and enterprises
providing services of any kind or engaged in scientific and technical disciplines, to form
commercially efficient vehicles suited to their requirements. Owing to flexibility in its
structure and operation, the LLP would also be a suitable vehicle for small enterprises
and for investment by venture capital.
3.  Keeping in mind the need of the day, the Parliament enacted the Limited Liability
Partnership Act, 2008 which received the assent of the President on 7th January, 2009.
The salient features of the LLP Act 2008 inter alia are as follows:
(i) The LLP shall be a body corporate and a legal entity separate from its partners. Any two
or more persons, associated for carrying on a lawful business with a view to profit, may
by subscribing their names to an incorporation document and filing the same with the
Registrar, form a Limited Liability Partnership.  The LLP will have perpetual succession.
(ii) The mutual rights and duties of partners of an LLP inter se and those of the LLP and its
partners shall be governed by an agreement between partners or between the LLP and
the partners subject to the provisions of the LLP Act 2008.  The act provides flexibility to
devise the agreement as per their choice.  In the absence of any such agreement, the
mutual rights and duties shall be governed by the provisions of proposed the LLP Act.
(iii) The LLP will be a separate legal entity, liable to the full extent of its assets, with the
liability of the partners being limited to their agreed contribution in the LLP which may
be of tangible or intangible nature or both tangible and intangible in nature. No partner
would be liable on account of the independent or un-authorized actions of other partners
or their misconduct. The liabilities of the LLP and partners who are found to have acted
with intent to defraud creditors or for any fraudulent purpose shall be unlimited for all or
any of the debts or other liabilities of the LLP.

(iv) Every LLP shall have at least two partners and shall also have at least two individuals as
Designated Partners, of whom at least one shall be resident in India. The duties and
obligations of Designated Partners shall be as provided in the law.
(v) The LLP shall be under an obligation to maintain annual accounts reflecting true and fair
view of its state of affairs.  A statement of accounts and solvency shall be filed by every
LLP with the Registrar every year.  The accounts of LLPs shall also be audited, subject to
any class of LLPs being exempted from this requirement by the Central Government.
(vi) The Central Government have powers to investigate the affairs of an LLP, if required, by
appointment of competent Inspector for the purpose.
(vii) The compromise or arrangement including merger and amalgamation of LLPs shall be in
accordance with the provisions of the LLP Act 2008.
(viii) A firm, private company or an unlisted public company is allowed to be converted into
LLP in accordance with the provisions of the Act. Upon such conversion, on and from the
date of certificate of registration issued by the Registrar in this regard, the effects of the
conversion shall be such as are specified in the LLP Act. On and from the date of registration
specified in the certificate of registration, all tangible (movable or immovable) and
intangible property vested in the firm or the company, all assets, interests, rights,
privileges, liabilities, obligations relating to the firm or the company, and the whole of
the undertaking of the firm or the company,  shall be transferred to and shall vest in the
LLP without further assurance, act or deed and the firm or the company,  shall be
deemed to be dissolved and removed from the records of the Registrar of Firms or
Registrar of Companies, as the case may be.
(ix) The winding up of the LLP may be either voluntary or by the Tribunal to be established
under the Companies Act, 1956. Till the Tribunal is established, the power in this regard
has been given to the High Court.
(x) The LLP Act 2008 confers powers on the Central Government to apply provisions of the
Companies Act, 1956 as appropriate, by notification with such changes or modifications
as deemed necessary.  However, such notifications shall be laid in draft before each
House of Parliament for a total period of 30 days and shall be subject to any modification
as may be approved by both Houses.
(xi) The Indian Partnership Act, 1932 shall not be applicable to LLPs.


A brief overview
ü An LLP is a body corporate.
ü Apart from individuals, even body corporates may be partners.
ü Minimum two partners and two Designated Partners who must be individuals, but no
limit on the maximum number of partners. Designated Partners are liable for compliance.
If any compliance is not carried out, they will be liable for all penalties.
ü LLP may carry on any lawful business, trade, profession, service or occupation. Unlike
the Naresh Chandra Committee Report, the flexibility has been provided for LLPs to be
incorporated in such manner as they deem fit.
ü Inter se relationship, rights and duties between partners is governed by LLP Agreement
(which would also require to be registered). In the absence of agreement principles set
out in schedule 1 apply (general principles of equality, in terms of sharing of profits and
losses, etc).
ü The Name of the LLP must end with either the words ‘Limited Liability’
‘Partnership’ or the acronym ‘LLP’
· Agency: Every partner is an agent of the LLP and not of the other partners
· Unauthorised Acts: An LLP is not bound by unauthorized acts of any partner in dealing
with a third person provided such third person
(a) is aware that the acts are unauthorised; or
(b) does not know or believe that the partner is a partner of the LLP
v Wrongful Acts or Omissions: An LLP is liable for wrongful acts or omissions
of partners in the course of business of the LLP or with its authority–The
partner(s) committing such act or omission will be personally liable – Other
partners not to be liable for such wrongful act or omission.
v An obligation of the limited liability partnership is solely the obligation of the
limited liability partnership.
v The liabilities of the limited liability partnership shall be met out of the property
of the limited liability partnership. Accordingly, unlike the Texas first law, even
liability for debt is limited.
Right to share profits transferable
v Right of a partner to share profits is transferable (either wholly or in part)
v Transfer does not imply that the transferor/assignor has ceased to be a Partner
v Transferee/ assignee not entitled to participate in the management of the LLP
v Transferee/assignee not entitled to any information relating to transactions of LLP
v Statements of Accounts and Solvency: An LLP must prepare a ‘Statement of Accounts’

v Why is there a need for a statutory provision of this nature?
v Would this prohibit subordinate debt, where partners agree not to recover their debts
until external debt is paid off?
v Section 71 – The provisions of this Act would be in addition to, and not in derogation of,
the provisions of any other law for the time being in force.
v Therefore one would need to analyse provisions of various statutes governing professionals
to decide whether they can take advantage of this LLP.
v For instance, the Chartered Accountants Act, 1949, provides uses in a number of places
the term “firm”, which would usually refer to a firm under the Indian Partnership Act,
1932. The said Act also prohibits companies from practicing as chartered accountants.
Are amendments necessary?
v For instance, for lawyers, under the Advocates Act, only Advocates can appear before
courts. As a firm is not a person in the eyes of law, a partnership firm is permitted. In
light of the LLP Act, where a firm would be treated as a person in the eyes of law with
perpetual succession, it is difficult to see how an LLP can be a firm under the provisions
of the Advocates Act, which could be recognised as having a right to practice. For instance,
even today, a lawyer cannot be part of a company and a company cannot be the lawyer
appointed for a client.
v Filing of accounts–Accounts of a firm is a private affair, except for disclosures which have
to be made to the income tax authorities Now accounts would have to be filed with the
Registrar.
v Would this be acceptable to the Indian legal firms, chartered accountants and other
professionals?
v One issue that arose in proposing a bill for limited liability partnerships was that paper
thin LLPs should not be permitted as they could completely undermine the credibility of
LLPs.
v At that point of time the Naresh Chandra committee had suggested that there should be
provisions for Compulsory Insurance under the LLP Act.
v The proposal has disappeared in the winds of changes.
v The entire proposal of LLPs is based on a one way street.
v While you can convert from a firm or a company to an LLP, there are no provisions for
erring and deciding to reconvert back into a partnership or a company.
v In such a case, the decision has to be well weighed realising that there is no “U turn”
available down the road.
v Section 27(4) of the Act states that the liabilities of a limited liability partnership shall be
met out of the property of the limited liability partnership.
v One issue that arises is whether this would preclude in any manner, lenders and contracting
parties from obtaining personal and corporate guarantees from the partners as a
precondition to providing any loans.
v The arguments against this is that the principles of a guarantee arise from contract law
and this would not preclude the application of such principles.
v The argument in favour of treating such guarantees as void is that this is a special law
that mandates that the liability is to be met out of the property of a limited liability
partnership.
v Perhaps the absence of the words “exclusively” or “only” would be a determinant in the
event any litigation happens around this point.
v Questions arise, whether like a traditional partnership, there could be paid partners,

JAIIB AFB today's Recollected questions ..updating continuously

JAIIB AFB today's Recollected questions ..updating continuously

1.More Theory based questions came.Approximatly 20% numerical
2.As 6
3.Spot rate
4.Numricals on sum digit depreciation
5.Computised accounting 2 question
6.Ration analysis : debt equity ration was given current ration was given total asset was given, find curren asset.
7.1 question on exchange rate.
8.3-4 question theory on rectification and error
9.4-5 questions related to daily banking activity

10.Calculation of net profit
11.Bills discounting
12. Brs 2 questions
13.3 qns NPV
14. 4 Depreciation- Sum of year method
15. Bond yield
16. YTM calculate
17.Questions were also on KYC norms
18.Like who can open current account
Illiterate
Minor
Blind
19.Non registered society
20.Documents required for opening acc of an trust
21.Opening stock 1000
Purchse 2000
Sales 1600
Expenses 500
Closing stock???
22.Error of commission
Error of ommission
Compensating error
23.
Sold goods to Mr.M ...trail balance entries will be?? Which account is debit

24.
Features of cost based concept accounting ??

25.
Process of Posting of entries in ledger is called??

26
Which of the one is not belongs to reporting stage??
27.Sweat equity
28.1 $ = in rupees and 1$ = in euros find 1 euro= in rupees
29.
Generally cash book and passbook is differs in following situations??


30.Regarding non voting shares one questions
31.Adjustment entry effect whch account
32. profit nd loss
33.Trading related
34.Current account can be opened by ......
35. Discount factor for 1 year for 10% rate.... 0.909
36. Which method doesn't take time value of money in consideration... NPC/IRR/PAYBACK METHOD - PAYBACK METHOD
37. If market value of the bond is equal to the face value..then intrest rate is?? YTM/Simple/Compound
38. 3 question on sum of digit method of depreciation... In one question dep. For 3rd year was asked and time period was 10 years.. In another que. Depreciation after 3rd year was asked
39. Which of the following is ont at the recording stage? Money measurement/Cost concept/Business entity/Going concern*
40. One question from reporting / recording stage
41. Overcasting in receipt side of cash book reconciled by what?
42DE ratio 4:1, Current ratio 2:1, Owned funds : 3 lakhs, Total assets : 34 lakhs, Find current assets?
43. Machine value 30000, Salvage value 2500, Life 10 years, What is the 3rd yr depreciation value?
44. Machinery value - 12,00,000, Salvage Value - 1,00,000, Useful Life in Years - 10 Years. Use sum of the years' digits method of depreciation to find the depreciation for 3rd year.
45. Generally cash book and passbook is differs in following situations??
46. Regarding non voting shares one questions
47. 1 $ = in rupees and 1$ = in euros. Find the value of 1 euro = in rupees
48. Housing loan priority sector 1 question
49 Process of Posting of entries in ledger is called?
50 Adjusting entries will effect which of the accounts?? p&l / balance sheet / trading account / None of the above
51 Opening stock 1000, Purchase 2000, Sales 1600, Expenses 500, Closing stock?

Current affairs

TOWER TALK head lines

👍🏻 NRB Bearings reported excellent results for H1FY19 with a 25% jump in sales and 89% jump in earnings. Its future looks bright. Accumulate.

👍🏻 Lux Industries reported good results for Q2FY19 and H1FY19. With its proposed amalgamation with J. M. Hosiery and Ebell Fashions, the new entity will become stronger. Buy.

👍🏻 Entertainment Network, a Times of India group company that owns and operates Radio Mirchi, reported 50% higher PAT for Q2. The management is positive about the company’s future.
Buy.

👍🏻 FMCG major Procter & Gamble Hygiene & Healthcare reported 25% higher PAT of Rs.144.1 crore for Q2FY19. Buy for the long term.

👍🏻 Tata Chemicals reported 17% higher PAT for Q2 at Rs.409 crore. Accumulate.

👍🏻 Bata India continued its strong performance in Q2FY19 with an EPS of Rs.4.3 v/s Rs.3.3 in the previous corresponding quarter. Its overall profitability for FY19 is likely to be 35% higher than FY18. Accumulate.

👍🏻 Hindalco Industries beat street estimates with 54% higher PAT for Q2.
Its performance for the next few quarters is likely to be equally good. Buy.

👍🏻 Godrej Consumer Products reported
excellent results for Q2 with an EPS of Rs.5.65. Accumulate.

👍🏻 After reporting fantastic results for Q2, Alkyl Amines Chemicals is expected to notch an EPS of Rs.28 for FY19. Buy.

👍🏻 Honeywell Automation India reported excellent results for H1 with an EPS of Rs.214 v/s Rs.146 in the previous corresponding quarter. Buy.

👍🏻 Since 21 September 2018, Dewan Housing Finance Corporation has repaid commercial paper holders Rs.9465 crore including buyback worth Rs.3240 crore. This shows the inherent strength of the company. Buy immediately.

👍🏻 The Infibeam Avenues counter has witnessed heavy volumes. The company seems to be on a comeback trail.
Investors with a risk appetite may enter with a strict stop loss.

👍🏻 Phoenix Mills aims to double its operational retail portfolio to 12 million sq.ft. in the next 1-2 years. Buy.

👍🏻 Graphite India, a big beneficiary of the rising electrode prices in India, is poised to appreciate. Buy.

👍🏻 Ashoka Buildcon reported excellent Q2FY19 results. With a growing order book, its future looks equally strong.
Buy.

👍🏻 IndiaBulls Real Estate contemplates selling 50% stake in two office assets in Gurgaon to a global investment firm.
It may report good results in the next quarter. Buy.

👍🏻 Many brokerage firms are now positive on Axis Bank based on its Q2FY19 results. Accumulate on dips.

👍🏻 PNB Housing Finance reported strong results for Q2FY19 with 33% higher PAT. The stock may regain its lost
ground. Buy.

👍🏻 Natco Pharma doubled its profitability in Q2FY19 on the back of new launches. It expects better times ahead.
Buy.

👍🏻 Deepak Spinners reported excellent Q2FY19 results with an EPS of Rs.7. Currently, the stock trades cheap and can easily appreciate by 50%.

👍🏻 National Peroxide has consistently posted good results. This Wadia group company posted an EPS of Rs.98 in Q2FY19. The stock is poised to cross Rs.10000.

👍🏻 Small-Cap IT stocks such as Trigyn Technologies and Take Solutions are trading near their 52-week lows despite reporting a good
quarterly performance. Buy for quick 20% gains.

👍🏻 Shree Ajit Pulp & Paper is a dark horse in the paper sector.
The stock has the potential to touch the 4-figure mark.

👍🏻 Falling crude oil prices will boost the earnings of Phillips Carbon considerably. A good proxy bet for the medium-to-long term.

👍🏻 An Ahmedabad-based analyst recommends 20 Microns, IOL Chemicals & Pharmaceuticals, Ruchira Papers and Umang Dairies.
From his previous recommendations,
Balrampur Chini Mills appreciated 68% from Rs.66.4 on 25-06-18 to Rs.110.9 last week; Lahoti Overseas appreciated 42% from Rs.18.35 on 8-10-18 to Rs.26 last week; and ASM Technologies appreciated 23% from Rs.114 on 27-8-2018 to Rs.140 last week!

most important banking terms

FIFTY BANKING TERMS FOR BANK INTERVIEWS/EXAMS

( Don't miss ... Read every one and Get knowledge)

1. Repo Rate

1.When RBI provides a loan to the bank for short-term between 1 to 90, RBI takes some interest from the bank which is termed as Repo Rate.

2. Reverse Repo Rate
⏫When bank deposit it's excess money in RBI then RBI provides some interest to that bank. This interest is known as Reverse Repo Rate.

3. SLR –(Statutory Liquidity Ratio)
⏫Every bank has to maintain a certain % of their total deposits in the form of (Gold + Cash + bonds + Securities) with themselves at the end of every business days.

4. Retail banking
⏫Retail banking is a type of banking in which direct dealing with the retail customers is done.
⏫This type of banking is also popularly known as consumer banking or personal banking.
⏫It is the visible face of banking to the general public.

5. Bitcoin
⏫Bitcoin is a virtual currency/ cryptocurrency and a payment system.
⏫It can be defined as decentralized means of tracking and assigning wealth or economy, it is a software protocol.
⏫Bitcoin uses two cryptographic keys, one public (username) and one private (password) are generated.
⏫1Bitcoin= 108 Satoshi.