Letter Khazana

Sunitha Krishnan fights sex slavery | Video on TED.com

noreply@blogger.com (Greatest Surfer) — Sat, 20 Nov 2010 12:39:00 +0000

Must watch .....

Sunitha Krishnan fights sex slavery Video on TED.com

Movie-"The man from Earth"

noreply@blogger.com (Greatest Surfer) — Sun, 19 Sep 2010 11:27:00 +0000

Hi friends!!

Today there is something extremely new on our blog. We have shared information traversing topics like finance, interview preparation, writing resumes etc. etc etc….

But today, I want to discuss about a movie that I saw recently. Its named as the man from Earth. It is directed by Richard Schenkman and was released in the year 2007

Some parts in the discussion could be found as profane to some religion, caste or belief. We aim at discussing the points put forth in the movie and owe no disrespect for any religion. We beg pardon if anything is found objectionable and request to bring in our notice so that we can act accordingly.

This Movie is about a professor who teaches History in the college and makes many friends like a psychologist, a Christian literal, an Anthropologist, an Archeologist and a student. The actor claims about being 14000yrs. Old and still has no signs of aging after being 35 yrs old. All the friends try to prove his point wrong by every logic possible but still are helpless infront of every answer he gives them. Among these conversations lie very interesting discussions which could gave us thoughts to ponder about.

This Movie takes us to the verge of breaking our psychological barriers that we guard through our scientific knowledge and experiences.

There is a point the actor makes in the movie in which he confesses that he is “The Jesus”. The people sitting there are astonished by this and find it profaning their religion and try to prove him wrong by verifying why was he called Jesus if he says his name is John. He tells that he spoke his name as John but due to various dialects and pronunciation differences it went ahead to be called as Jesus. He used the medication techniques he learnt from India to cure people which were treated as miracles and all the truth just snowballed into a massive false. The simple message he gave about love and affection among the people and to care for others turned into a religion that millions of people practice but over the time shadowed the very virtue he wanted to impart which was: To live in harmony with each other.

This, we can see is an irony, the good deeds he did to increase affection among the people turned into the religion which increases differences between the people.

It may not be what the religion speaks of but the very thought of being the most supreme religion gives all the holy wars that turn into brutal wars killing thousands innocent people which are then justified as the Divine order from God which atleast in perspective of the movie nowhere exists.

This story may be just an imagination of the Director, but still unfolds the very basics of human mind.
We just don’t let the things be as they are. No one just narrates what he/she feel, they either add things up or curtail things down and start a chain reaction of additions or alterations which completely transform the truth.

The actor in the movie confesses that he is Jesus but he has nothing to do with Old Testament, there is nothing holy in his immortalness, it’s just a metabolical miracle.

We can very well make out that he is talking about that old testament, the fallacies of which led to the death of Copernicus ( The Mathematician) In Old Testament it was written that the Earth is flat, when Copernicus advocated the fact that the Earth was spherical he was regarded as a person with unchristian thoughts and was hanged and the same was even tried with Galileo.

In the same way, the various characters in the movie disagree with the hero. It just shows us how we fear the fact that whatever we know and believe can be a myth and when all our beliefs and values just shatter like a castle of cards, we try to defend it inappropriately. The characters in the movie cried, spitted out abusive words and even try to kill the hero because he was shattering their very beliefs which they were growing ever since their birth.

I can remember that in Bible it is told to behave with others as we want them to behave with us. This is the simple message every religion, holy book tries to give us. This is what was imparted by all the religious and spiritual gurus/leaders. But along with the time the major part that is constructed/destructed by the intermediate priests and clergies have made the overall concept so complex which easily confuses the person and prevents him from having absolute belief on his religion and professes superstition and blind faith.

Please also see the below related post about "Knowns and Unknown"

Learning from my Business Ethics Session

noreply@blogger.com (Greatest Surfer) — Sun, 19 Sep 2010 11:24:00 +0000

The Knowns and Unknowns

As we know,
There are known knowns.
There are things we know we know.
We also know
There are known unknowns.
That is to say
We know there are some things
We do not know.
There are unknown unknowns,
The ones we don’t know
We don’t know
But there are also unknown knowns,
The ones we don't know
We know.

Among so many interesting topics discussed during the class sessions the one which I found most interesting and meaningful to me is “we don't know what we know”

Most of the time, when I was in sad mood I used to think in a very negative nod and always used to curse myself saying “I am a useless person, I don’t know anything”. But after the session in which we discussed about the topic “we don’t know what we know”, I turned back the pages of my life and found so many moments where I came to know that actually I was unaware of the immense potential present inside me.

One of the moments which I revisited was the incidence which took place in my school life. The incidence was like this - I went to the school with my friends for sports practice. After doing my Javelin throw’s practice, I was waiting for my friends, as they were practicing for long jump. While I was watching them practicing, one of my friend said to me – “why you are sitting here? You should also join us”. I replied to her that I don’t know how to do long jump. She said to me that you should first try it once and then you can improve upon it. “It doesn’t matter whether you jump good or bad we are just practicing here”. Hearing this I went in a queue and made an attempt for long jump. And surprisingly I jumped much better than all the others practicing there. Through this incidence I came to know that I was unaware of the fact that I know how to perform long jump. The simple attempt I gave for the long jump opened a box full of opportunity that which in turn gave me the chance to appear at the district level and win medals at the school level which at last resulted in me winning the school championship.

Like this incidence, there are many instances of which I haven’t thought of earlier but now I am able to weigh my potential. I came to know that each person is gifted with equal potential; the difference is that some are able to find it and others simply not.

From that session onwards, my thinking about myself has changed. Now, I know myself better. Thanks to sir, with the help of whom I got a life long lesson.

Finance terms: Integrations

noreply@blogger.com (Finance Explorer) — Thu, 26 Aug 2010 11:02:00 +0000

Vertical Integration
When a company expands its business into areas that are at different points of the same production path.
Example:
A car company that expands into tire manufacturing would be an example of vertical integration. A company such as this is often referred to as vertically integrated.

Horizontal Integration
When a company expands its business into different products that are similar to current lines.
Example:
A hot dog vendor expanding into selling hamburgers would be an an example of horizontal integration. Compare this to vertical integration.

Backward Integration
A form of vertical integration that involves the purchase of suppliers in order to reduce dependency.
A good example would be if a bakery business bought a wheat farm in order to reduce the risk associated with the dependency on flour.

Forward Integration
A business strategy that involves a form of vertical integration whereby activities are expanded to include control of the direct distribution of its products.
A good example of forward integration is when a farmer sells his/her crops at the local market rather than to a distribution center.

Looking For Your Face

noreply@blogger.com (Greatest Surfer) — Mon, 02 Aug 2010 17:03:00 +0000

From the beginning of my life
I have been looking for your face
but today I have seen it
...
Today I have seen
the charm, the beauty,
the unfathomable grace
of the face
that I was looking for

Today I have found you
and those who laughed
and scorned me yesterday
are sorry that they were not looking
as I did

I am bewildered by the magnificence
of your beauty
and wish to see you
with a hundred eyes

My heart has burned with passion
and has searched forever
for this wondrous beauty
that I now behold

I am ashamed
to call this love human
and afraid of God
to call it divine

Your fragrant breath
like the morning breeze
has come to the stillness of the garden
You have breathed new life into me
I have become your sunshine
and also your shadowa

My soul is screaming in ecstasy
Every fiber of my being
is in love with you

Your effulgence
has lit a fire in my heart
for me
the earth and sky

My arrow of love
has arrived at the target
I am in the house of mercy
and my heart
is a place of prayer

Jokes Humour Fun

noreply@blogger.com (Greatest Surfer) — Wed, 21 Jul 2010 16:49:00 +0000

Woman Keeping Secrets

Jeeto complained to her friend Preeto

"She told me that you told her the secret I told you not to tell her."

"Well," replied Preeto in a hurt tone, "I told her not to tell you I told her."

"Oh dear!" sighed Jeeto. "Well, don't tell her I told you that she told me."

Cowboy problems

The cowboy lay sprawled across three entire seats in the posh Amarillo theatre. When the usher came by and noticed this he whispered to the cowboy, "Sorry, sir, but you're only allowed one seat." The cowboy groaned but didn't budge. The usher became more impatient. "Sir, if you don't get up from there, I'm going to have to call the manager. The cowboy just groaned.

The usher marched briskly back up the aisle. In a moment he returned with the manager. Together the two of them tried repeatedly to move the cowboy, but with no success. Finally, they summoned the police. The cop surveyed the situation briefly then asked, "All right buddy, what's you're name?"

"Rambo," the cowboy moaned.

"Where ya from, Rambo?"

With pain in his voice Rambo replied.... "The balcony."

Crossing a Red Light

In the traffic court a young lady was brought before the judge to answer for a ticket given her for driving through a red light.

She explained to his honor that she was a school teacher and requested an immediate disposal of her case so she could get to the school on time.

A wild gleam came into the judge's eyes.

"You're a school teacher, eh?" he said. "Madam, I shall realize my lifelong ambition. I've waited years to have a school teacher in this court. Now sit down at that table and write 'I will not drive through red lights' 500 times!

Age that matters.

Father to son: Do you know how Mr.Jawaharlal Nehru was reading at your age, day and night?
Son: I do not know how he was studying at my age, but I know he was a prime minister at your age.

Performance Appraisal Report

Attention: Human Resources
Hemant Sharma, my assistant programmer, can always be found

hard at work in his cubicle. Hemant works independently, without

wasting company time talking to colleagues. Hemant never

thinks twice about assisting fellow employees, and he always

finishes given assignments on time. Often Hemant takes extended

measures to complete his work, sometimes skipping

coffee breaks. Hemant is an individual who has absolutely no

vanity in spite of his high accomplishments and profound

knowledge in his field. I firmly believe that Hemant can be

classed as a high-calibre employee, the type which cannot be

dispensed with. Consequently, I duly recommend that Hemant be

promoted to executive management, and a proposal will be

executed as soon as possible.

Regards,
Project Leader

e-mail two Attention: Human Resources
Hemant Sharma was reading over my shoulder while I wrote the report sent to you earlier today. Kindly read only the odd numbered lines [1, 3, 5, etc.] for my true assessment of his ability.
Regards,
Project Leader

Must Read for Sales Guys

Boss to Sales Executive: Get 5 lacs business by today evening anyhow.
Sales Executive:That's Impossible Sir!
Boss: What Impossible? Impossible word itself says I'm possible.

In Evening...,
Executive: Boss, I got 10 lacs business.
Boss: Great! How come this miracle happened?
Executive: I cheated the client.
Boss: That's Immoral.
Executive: What Immoral? Immoral word itself says I'm moral.

Anything else my lord

A small boy was standing in a street and was trying to ring the bell of a house. His hand was not reaching up there so he was trying to jump. An old man enters the street and as he sees that child unabling to ring the bell he smiles and turns up to the boy and ring the bell twice and says " Anything else my lord ?" The child replys sharply " Now run quickly before they come out and beat both of us ".

Appraisal.........

noreply@blogger.com (Greatest Surfer) — Wed, 21 Jul 2010 16:05:00 +0000

APPRAISAL

Appraisal ke naam par ek lambi aah bharte hain,
chaliye ab hum is "dukhad" kahani ki shuruat karte hain,

hamehsa ki tarah 10 baje thumakte hue office aya,
11 baje tak nashta kiya aur barah baje tak mail hi padh paya,

hamesha ki tarah aaj bhi mujhe alas aa raha tha,
aur mera PM mujhe tirchi nigaho se dekh-dekh gussa raha tha,

main bade concentration ke sath ek "Careful" mail padh raha tha,
tabhi dekha mere PM ke naam ka new mail kone main blink kar raha tha,

is mail ki amad se itna ghabara raha tha,
ki CLTR + F4 ki jagah shift + F5 daba rah tha,

phir koi trainig attend karni hogi, ye kya bakwas hai,
kya reply maim likh dun ki mere mailbox ka upwas hai ?

maine aankhen band ki aur 10 bar "om" "om" bola,
aur pranam karte hue maine wo mail khola,

PM ke is mail main ek ajeeb sa sukoon aur bholapan hai,
likha hai bhaiyon appraisal letters aa gaye,ab to one-to-one hai,

mujhe lag rah tha vb ke environment pe unix ka code likh diya ho kisi ne,
dil aise dhadak raha tha jaise baar baar dil pe double click kiya ho kisi ne,

man main aise bure bure khayal aa rahe the,
upar se kuch log mere "de-appraisal" ki gandi affvah uda rahe the,

appraisal aise aya jaise India main Michael Jackson aya ho,
jaise Indian football team ne ,Manchester United ko haraya ho,

PM ko letter late dekh har koi use dekhta jata hai,
jaise mallika ke kisi naye gane ko dekha jata hai,

akhir wo waqt aya,
PM ne ek ek kar sabko ander bulaya,

jo bhi ander jata hansta hua jata,
jo bahar ata , murjhaya hua ata,

jo bhi ander jata, sabko dekhte hue jata,
jaise hi bahar ata , sabse mooh chupata,

bahar aa kar insaan sambhal bhi nahi pata hai,
ki "kitna hua kitna mila" har koi uspe toot jata hai,

aisa lagta hai wo romm nahi "time machine" ho jo sabke ander leti ho,
aur "good time" se utha kar "bad time" main lakar chod deti ho,

kisi ko appraisal main 2000 rupaye mile the, main uski hansi uda raha tha,
tabhi maine dekha mera PM ishare se mujhe inder bula raha tha,

main confidence se utha aur age kadam badhaya,
tabhi meri belt ka buckle toot ke nikal aya,

meri halat to abhi se hi buri ho gayi,
sala izzat utarna to yahi se shuru ho gayi,

main ander pahuncha aur PM ne mujhe bithaya,
usne mera letter padha aur wo hansi rok na paya,

wo hansne laga aur hansta hi chala gaya,
use yaron hansi ka thaska a gaya,

wo itna hansa ki use ansu aa gaye,
mere appraisal digits use itne bha gaye,

jaise hi usne appraisal letter meri taraf badhaya,
meri ankhon ke age ghanghor andhera chaya,

mujhe laga jaise meri dil ki deewar ko kisi ne gobar se pota hai,
are yaar "bees rupaye" ? ye bhi koi increment hota hai ?

ye software indusrty hai akhada nahi hai,
ye "SALARY INCREMENT" hai , Dadar ane-jane ka bhada nahi hai,

meri charon taraf kali ghata chayi,
tabhi mere PM ki soothing awaz ayi,

tum soch rahe hoge ke companuy mgmt ka dimag phir gaya hai,
par beta hum kya karen , dollar ka bhav 2 rupaye jo gir gaya hai ,

par phir bhi mujhe lagta hai, ye letter fake hai,
mujhe to lagta hai ye printing mistake hai,

tum HR main jao,
aur ye confirm karke ao,

bhai HR main jane ke liye taiyyar hona padta hai,
wahi to aisi jagah hai jahan sunder ladkiyon se pala padta hai,

shitt!! jahan "Ronak" baith ti hai, aaj whan baitha "Aftab" hai,
main samajh gaya beta, aaj apna badluck hi kharab hai,

usne mera letter khola,
aur khush ho ke bola,

wo bola sir aap ke liye khushkhabri hai,
aap ke letter ne "Printing mistake" pakdi hai,

maine kaha boss ab der na lagayen ,
aur mujhe mera actual amount batayen,

sorry sir ye mistake just by accident hai,
bees rupaye nahi , do rupaye aap ka increment hai,

main kya karun aap ko ye batete hue mera dil ro raha hai,
par kya karen dollar ka bhav bhi to kam ho raha hai,

main bas wahan khada tha ,kuch samajh nahi aa raha tha,
mujhse zyada increment to security wala pa raha tah,

maine khud ko sambhala, khud ko uthaya ,
main lauta aur seedhe PM ke pass aya,

main seedha uske cabin gaya aur darwaza khola,
is se pehle ki wo bole, main hi us se bola,

sir ye paise wapis le lijiye, baat karna fizool hai,
main gareeb hun, par bheekh nahi leta ye mera usool hai,

doston ek ant main ek shayari --
"appraisal aisa laddu hai ,jise khane ka har kisi ka khwab hota hai,
par ek bar koi ise kha le , to bada bhayankar julaab hota hai,"

How to use new rupee symbol in documents

noreply@blogger.com (Greatest Surfer) — Tue, 20 Jul 2010 18:20:00 +0000

Hi,

Our Govt may take over 6 more months before it start using the New Rupee Symbol - ` - in official documents, including the currency note. But an internet engineering company based in India has developed the font - called Rupee Foradian and made it available. Following is the procedure to use the rupee symbol.

· Copy the attached font to "C:\WINDOWS\Fonts" folder of your PC

· Now the grave accent symbol i.e., (`) the key just above the "tab" button in your keyboard with the new rupee symbol

· Just select "rupee" font from the drop down list of your fonts in your application and press the key just above your tab button. it will display the new rupee symbol of India

Rajnikanth iss Backk..!!!!

noreply@blogger.com (Greatest Surfer) — Sat, 17 Jul 2010 13:27:00 +0000

Rajni Is Back..!!! So please Take Care..!!

1. When Rajnikanth does push-ups, he isn't lifting himself up. He is pushing the earth down.

2. There is no such thing as evolution; it's just a list of creatures that Rajnikanth allowed to live.

3. Rajnikanth can divide by zero.

4. Rajnikanth can judge a book by its cover.

5. Rajnikanth can delete the Recycle Bin.

6. Rajnikanth can slam a revolving door.

7. Rajnikanth once kicked a horse in the chin. Its descendants are today called giraffes.

8. Rajnikanth can make onions cry.

9. Rajnikanth destroyed the periodic table, because he only recognizes the element of surprise.

10. Rajnikanth once got into a knife-fight. The knife lost.

11. Rajnikanth never wet his bed as a child. The bed wet itself in fear.

12. Rajnikanth doesn't breathe. Air hides in his lungs for protection.

13. Rajnikanth does not own a stove, oven, or microwave, because revenge is a dish best served cold.

14. Rajnikanth has already been to Mars, that's why there are no signs of life there.

15. Rajnikanth doesn't move at the speed of light. Light moves at the speed of Rajnikanth.

16. Rajnikanth knows Victoria's secret.

17. Google won't find Rajnikanth because you don't find Rajnikanth; Rajnikanth finds you.

18. Rajnikanth leaves messages before the beep.

19. Rajnikanth calls Voldemort by his name.

20. Rajnikanth's calendar goes straight from March 31st to April 2nd, no one fools Rajnikanth.

21. Rajnikanth once had a heart attack. His heart lost.

22. Rajnikanth is so fast, he can run around the world and punch himself in the back of the head.

23. Rajnikanth doesn't wear a watch. He decides what time it is.

24. When you say "no one is perfect", Rajnikanth takes this a personal insult.

25. In an average living room there are 1,242 objects Rajnikanth could use to kill you, including the room itself.

26. When Rajnikanth is asked to kill some one he doesn't know, he shoots the bullet and directs it the day he finds out.

27. Rajnikanth can answer a missed call

New symbol for its currency rupee

noreply@blogger.com (Greatest Surfer) — Sat, 17 Jul 2010 13:24:00 +0000

India approves new symbol for its currency rupee

The Indian federal Cabinet on Thursday approved the new symbol for the Indian rupee

The Indian Cabinet on Thursday approved the new symbol for the Indian rupee – an amalgam of the Devnagiri 'Ra' and the Roman capital 'R' without the stem.

The symbol, designed by Indian Institute of Technology (IIT) postgraduate D. Udaya Kumar, was selected from among five shortlisted symbols before the Cabinet, Information and Broadcasting minister Ambika Soni said after the cabinet meeting. "It is just a symbol," she told reporters.

For Indians used to seeing the dollar symbol on the keyboard, this will be a welcome change. It will be just a matter of a few months for India's new rupee symbol to be a part of the software code to be easily accessible to users across the world, according to technology vendors.

CLEAN YOUR KIDNEYS IN LESS THAN Rs 1.00

noreply@blogger.com (Greatest Surfer) — Sat, 17 Jul 2010 13:23:00 +0000

Years pass by and our kidneys are filtering the blood by removing salt, poison and any unwanted entering our body. With time, the salt accumulates and this needs to undergo cleaning treatments and how are we going to overcome this?

· It is very easy, first take a bunch of parsley (MALLI Leaves) KOTHIMBIR (DHANIYA) and wash it clean.

· Then cut it in small pieces and put it in a pot and pour clean water and boil it for ten minutes, let it cool down, then filter it, pour in a clean bottle and keep it inside refrigerator to cool.

· Drink one glass daily and you will notice all salt and other accumulated poison coming out of your kidney by urination also you will be able to notice the difference which you never felt before.

Parsley is known as best cleaning treatment for kidneys and it is natural!

RESUME : Entry - Level Experience Resume

noreply@blogger.com (Greatest Surfer) — Mon, 07 Jun 2010 18:20:00 +0000

RESUME : Entry - Level Experience Resume :

Objective
A position as human resources manager of a company with 1,200-plus employees.

Summary of Qualifications
Excellent human resources background, including: applicant screening; employee orientation, evaluation and placement; safety and training; and benefits planning. Experienced in developing and implementing new safety, training and employee orientation programs.

Work Experience
Human Resources Assistant, Allied Associates, Lakeview, KY(March 1994-current)
- Designed new employee orientation package and established and facilitated all new employee activities and sessions, which provides (for the first time) continuity in all company and benefit information presented verbally and in writing.
- Assist vice president in budget reconciliation and other forecasting/planning activities.
- Assisted in administering a revised employee evaluation program, which allows for improvement on identified problem areas before final evaluation.
- Prepare confidential material for grievance and other personnel-related meetings. Researched and currently implementing flex benefits program, which allows employees to design their own benefits packages, resulting in higher employee satisfaction.
- Training and Safety Assistant, McMurtry and Co., Lexington, KY(October 1992-March 1994)
- Worked with training manager to develop new, in-house computer software training courses, saving $3,500 annually in outside training costs.
- Assisted training manager in developing Secretarial Training Program, which has successfully standardized procedures and enhanced office work flow. - Revised safety manual and initiated OSHA update bulletins, which reduced on-the-job injuries by 55% and reduced OSHA non-compliance warnings by 75%.
- Assisted in evaluating and scheduling all outside executive training programs.

Personnel Assistant, McMurtry and Co., Lexington, KY(May 1990-October 1992)
- Administered temporary service personnel program, which involved 40% of the secretarial and hourly work force on site.
- Scheduled and screened full-time job applicants and coordinated applicant testing and pre-employment physicals.
- Established and administered service award program.
- Created job descriptions for hourly employees."

Education
B.S. in Business administration, RGPV , Bhopal(1990)

Stock Valuation

noreply@blogger.com (Finance Explorer) — Fri, 04 Jun 2010 12:14:00 +0000

Preferred Stock Preferred stock is somewhat like a bond. They pay the same equal dividends forever.
Common Stock Common stock represents ownership in the company. Sometimes there are dividends, sometimes not.

What is the value of Preferred Stock?

This is easy. Preferred stock is basically a perpetuity.

What is the value of Common Stock?

This is not easy. This is a mess. Think about it. What is the value of a share of stock in a specific company? In one sense it is the price the stock trades at. Both the buyer and seller agree to exchange the stock at that price.

We assume that they are both rational people and both know something about the company and its future plans and profit potential. So, yes, that is one method: check the price of the stock in the paper or on the internet. But that's pretty darn easy. It's not really finance. It's more like reading. And I don't know if you realize this or not, but they don't give Nobel Prizes for reading. So there are other ways of doing stock valuation too.

The Gordon Growth Formula, also known as The Constant Growth Formula assumes that a company grows at a constant rate forever. This, by the way, is impossible. I mean, it can't grow forever. You know, if a company doubles in size every 5 years, pretty soon every single person in the world is their customer and then they can't grow at that rate anymore. (because the world population isn't doubling ever 5 years).

BUT, if we go ahead and assume that a company has a constant growth rate, we can use the following formula to get its value.

Constant Growth Formula Po = D 1 / ( Ks - G )

Po = Price
D1 = The next dividend. D1 = D0 (1 + G)
Ks = Rate of Return
G = Growth Rate
What is all this D1 and D0 stuff ?

D1 is the next dividend
D0 is the last dividend
Well we are assuming that the company has constant growth, right. So we take the last divided, multiply it by the growth rate and we can get the next dividend.

Example

Last years dividend = $ 1.00
Growth Rate = 5%
Rate of Return = 10%
First figure out D1.

D1 = D0 (1 + G)
D1 = $1.00 ( 1 + .05)
D1 = $1.00 (1.05)
D1 = $1.05
Next us the formula.

Po = D 1 / ( Ks - G )
Po = $1.05 / (10% - 5%)
Po = $1.05 / 5%
Po = $21.00
So, if we want to get a 10% rate of return on our money, and we assume that the company will grow forever at 5% per year, then we would be willing to pay $21.00 for this stock.

Bond Valuation

noreply@blogger.com (Finance Explorer) — Fri, 04 Jun 2010 12:12:00 +0000

Bond When a company (or government) borrows money from the public or banks (bondholders) and agrees to pay it back later
Par Value The amount of money that the company borrows. Usually it is $1,000.
Coupon Payments This is like interest. The company makes regular payments to the bondholders, like every 6 months or every year.
Indenture The legal stuff. A written agreement between the company and the bond holder. They talk about how much the coupon payments will be, and when the money (par value) will be paid back to the bondholder.
Maturity Date Date when the company pays the par value back to the bondholder.
Market Interest Rate This changes everyday.

The thing about bonds is that the interest rate (coupon payments) is fixed. It doesn't change. And bonds last a long time. Like 10 years or whatever. So in the meantime, the market interest rate (the interest rates in general) go up and down. OK, well, if the coupon payments are for 10% and then the market interest rates fall from 10% to 8%, then that bond at 10% is valuable, right. It is paying 10% while the overall interest rate is only 8%. Exactly how much is it worth? You mean 'what is the present value of a bond?'

The Present Value of a Bond = The Present Value of the Coupon Payments (an annuity) + The Present Value of the Par Value (time value of money)

Example

Par Value = $ 1,000
Maturity Date is in 5 years
Annual Coupon Payments of $100, which is 10%
Market Interest rate of 8%
The Present Value of the Coupon Payments (an annuity) = $399.27

The Present Value of the Par Value (time value of money) =$680.58

The Present Value of a Bond = $ 399.27 + $ 680.58 = $1,079.86

Kinds of Interest Rates

noreply@blogger.com (Finance Explorer) — Fri, 04 Jun 2010 12:02:00 +0000

Let's say I give you a credit card and the interest rate on the card is 3% per month. What is the annual rate that you are actually charged?? 36%?? Well, no. It's actually 42.57%.

Nominal Rate Nominal means "in name only". This is sometimes called the quoted rate.
Periodic Rate The amount of interest you are charged each period, like every month.
Effective Annual Rate The rate that you actually get charged on an annual basis. Remember you are paying interest on interest.

In the example
The Nominal Rate is 36%.
The Periodic Rate is 3% (you are charged 3% interest on your balance every month)
The Effective Annual Rate is 42.57%
Nominal Rate = Periodic Rate X Number of Compounding Periods
Effective Annual Rate = (1+ i / m)m -1

m = the number of compounding periods
i = the nominal interest rate
O.K., so let's try the example again.

Effective Annual Rate = (1+ i / m)m -1
Effective Annual Rate = ( 1 + .36 / 12 )12 -1
Effective Annual Rate = (1.03)12 - 1
Effective Annual Rate = (1.4257) -1
Effective Annual Rate = .4257
Effective Annual Rate = 42.57 %

Perpetuities

noreply@blogger.com (Finance Explorer) — Fri, 04 Jun 2010 11:58:00 +0000

Perpetuities - are equal payments made regularly, like every month or every year, that go on forever.

You are rich. (Yes, but are you really happy?) You want to start the YOUR NAME HERE Scholarship at your university. Every year, some student will receive a $1000 scholarship. You're paying for it. Even after you, your kids and your grandkids are dead, you are still paying for it. Forever.

The question is....How much money will it cost you. In today's dollars. What is the present value of this perpetuity. (Hint: starting now and going on forever and ever, you assume the interest rate at your bank is going to be 3%).
PV (of a perpetuity) = payment / interest rate

Every year the interest you earn is used to pay for the scholarship. The principal in your bank account doesn't really change year to year.

PV (of a perpetuity) = payment / interest rate
PV = $ 1000 / .03
PV = $ 33,333
So, you put $ 33,333 into the bank. Each year the money earns $1000 interest. That interest becomes the scholarship.

The Time Value of Money

noreply@blogger.com (Finance Explorer) — Fri, 04 Jun 2010 11:46:00 +0000

Present Value How much you got now.
Future Value How much what you got now grows to when compounded at a given rate

I give you 100 dollars. You take it to the bank. They will give you 10% interest per year for 2 year.

The Present Value = $ 100
Future Value = $121.
FV= PV (1 + i )N

FV = Future Value
PV = Present Value
i = the interest rate per period
n= the number of compounding periods

Understanding Basic Finance Terms

noreply@blogger.com (Finance Explorer) — Fri, 04 Jun 2010 11:40:00 +0000

If you are like many, you don't always understand what people are talking about when it comes to loans. Without understanding the basic terminology when it comes to loans you just aren't setting yourself up right to make an educated decision when it comes to applying for a loan. There are hundreds of terms; Below are some of the most important:

Assets

Assets can be described as anything that holds value. Assets can be all types of things from cars to houses. Assets can be used in helping to build credit. For example if you are applying for a house loan, you might use your car as an asset, to show that if you default on a payment, that you have assets to fall back upon such as your car.

Capital

Capital can be a bit of tricky term as it can be used in several different situations to do with finances. Capital can be described as the assets that are available for use towards creating further assets; it can also apply to the cash in reserve, savings, property, or goods.

Debt

Debt is amount of money or something of value that is borrowed from a person referred to as a debtor. Usually a debt that is borrowed will carry some type of penalty along with the payback such as an interest, or service.

Debt Consolidation

Debt Consolidation is replacing multiple loans with a single loan that is normally secured on property. This can often reduce your (the borrowers) monthly outgoing interest payments by paying only one loan which is secured on the property sometimes over a longer term. Because the loan is secured, the interest rate will generally be considerably lower.

Equity

Equity is the difference between the value of a product (for example a house) and the amount that is owed on it.

Liabilities

Liabilities refers to the sum of all outstanding debts in which a company or individual owes to it's debtors.

Principal

Principal is used to describe the amount of money that is borrowed without including any interest or additional fee's.

Term

Term refers to the length of a debt agreement. For example if you were to take out a loan for a house over 10 years. 10 years would be the term.

Glossary of Financial Terms

noreply@blogger.com (Finance Explorer) — Fri, 04 Jun 2010 11:30:00 +0000

List of Terms Definition
Bonds
A certificate of debt issued to raise funds. Bonds typically pay a fixed rate of interest and are repayable at a fixed date.

Capital Budgeting
The process of managing capital assets and planning future expenditure on capital assets.

Capital Investments
Funds invested by a business in its capital assets that are anticipated to be used before being replaced. Capital investments are generally significant business expenses, requiring long-term planning and financing.

Current Assets
A balance sheet item, current assets are those items owned by the firm with the intention to generate profits or other assets that can be converted to cash within one year. It includes cash, account receivables, inventory, cash equivalents and other cash equivalents.

Convertible Loans
A loan with a provision allowing it to be converted to equity within a specific time frame.

Convertible Preference Shares
Preference equity shares issued by a business that include a provision allowing them to be converted to ordinary equity shares after a specific time frame.

Creditors or Accounts Payable
Suppliers the company owes money to, usually for services or goods supplied.

Creditors' Turnover Rate
A short-term liquidity measure used to quantify the rate at which a business pays off its suppliers.

Debt Financing Debtors or Accounts Receivable
The money that you borrow to finance a business. Customers who owe the company money, usually for services or goods supplied.

Debtors' Turnnover Rate
A short-term liquidity measure used to quantify the rate at which a business receives payment from customers.

Default Risk or Risk of Default
The risk of loss due to non-payment by the borrower.

EBITDA
The earnings before interest, taxes, depreciation and amortization. It is the net cash inflow from operating activities, before working capital requirements are taken into account.

EBITDA Margin
A measure of operating performance. It is calculated by dividing EBITDA by sales and is usually expressed as a percentage.

Equity Financing
The issuance of ordinary shares to raise money for a business.

Factoring
Selling the interest in the accounts receivable or invoices to a financial institution at a small discount. It is sometimes called "accounts receivable financing". Factoring helps a company speeds up its cash flow so that it can more readily pay its current obligations and grow.

Fixed Assets
Fixed assets are those long-term tangible assets that the business has acquired for use to earn income over more than one year. These assets normally must have a useful life over a few years and not expected to be converted to cash in the current financial year. Examples include, factory, warehouse, equipment, fixtures and etc.

Initial Public Offering (IPO)
The sale of a company's shares to the public on a stock exchange for the first time.

Interest Coverage Ratio
An indication of the ability of a business to cover interest expenses with its income. It is calculated by dividing income before interest and taxes by interest paid.

Letter of Credit
A written undertaking by a bank, given to a seller at the request and on the instruction of the buyer, to pay up, at sight or at a future date, up to a stated sum of money within a prescribed time limit.

Trust Receipt
A financing facility for imports where a bank makes an advance to the buyer to settle an import sight bill. The advance is generally for a certain period. On the due date, the buyer is required to settle the bill with interest at an agreed rate.

Profit Margin
A measure of a company's profitability. It is calculated by dividing net profit by sales and is usually expressed as a percentage.

Return on Equity (ROE)
A measure of the return on each dollar of shareholder investment. It is calculated by dividing net profit by equity and is usually expressed as a percentage.

Stock Turnover
A measure of inventory performance to show how fast stock is converted from purchases to sales. It is calculated by dividing stock level by cost of sales x 365 days

Term Loan
A loan for a fixed period of more than one year and repayable by regular installments.

Some Simple yet important terms

noreply@blogger.com (Finance Explorer) — Thu, 03 Jun 2010 13:56:00 +0000

written down value (WDV)
Net book value of an asset computed by deducting the accumulated depreciation or amortization from the value shown in the account books (the book value).

Operating Expense or "OPEX"
A category of expenditure that a business incurs as a result of performing its normal business operations.For example, the payment of employees' wages and funds allocated toward research and development are operating expenses.

Operating Revenue
Income derived from sources related to a company's everyday business operations. For example, in the case of a retail business, inventory sales generate operating revenue, whereas the sale of a warehouse does not. Instead, the latter sale is considered to be an unexpected, or "one-time", event.
Also referred to as "regular revenue".

Operating Profit
The profit earned from a firm's normal core business operations. This value does not include any profit earned from the firm's investments.
Also known as "earnings before interest and tax" (EBIT).

Calculated as:
Operating Profit = Operating Revenue - Operating Expense

Substance over form:

When an entity practice the Substance Over Form, it means that the financial statements reflect the financial reality of the entity (Substance) rather than the legal form of the transactions and events(Form) which underlie them.To put it very simply: if it is a goat but it was disguised in a legal form to look like a dog, Substance Over Form would prevail to reinstate that it is a goat and not a dog!

To be able to differentiate Substance Over Form, we need to be vigilant, have very good inner knowledge of the company’s operation and takes a more investigative in-depth approach so as to seek further evidence or proof. This is because normally these types of events or transactions are often quite complex. These events or transactions happen just around the accounting year ended. (balance sheet date)

We have seen many cases whereby many accounting fraud occur as a result of this lack of Substance Over Form.

Cases like Enron and Computer Associate are describe below:

Examples:Exchanging revenue/revenue swap:

In the Computer Associate case, the CEO of the company swap or exchange revenue with another company. What it did was CSA purchased a certain software/service from the company A and in turn company A also purchased from CSA. Its look like a sale and it being recognized as revenues in the Income Statement

In the Enron’s case we have:

Enron group’s use of over 3000 Special Purpose Entities (SPEs) structured in such a way as to enable the company to avoid including extensive debt in the consolidated financial statements of the group.

Other examples like:-
Company itself fund its own revenue

An outright purchase of capital equipment, whereas in fact the substance of the transactions is a lease of (or perhaps an option to purchase) the equipment.

Accrued and deffered cost:-

Accrued costs are costs for services or materials received, but for which payment has not been made. Example - you order 1600 cubic yards of concrete. It is delivered to your site in 16 weekly increments of 100 cubic yards. You receive a bill at the end of the 16 weeks. The accrued cost reflects the cost of concrete delivered in a reporting period prior to receiving the bill. This is money that should be set aside (and costs to balance against earned value for the material).

Deferred cost are for services or materials not yet received, but for which payment has been made. Example - you purchase a plane ticket 6 weeks before a planned trip. The cost is incurred, but reporting may be deferred until the trip is made and value is earned.

Difference b/w prepaid and deffered expenses:-

prepaid expenses are those which we pay in advance! like rent of a building , its a prepaid expense . we first pay the rent and then use the building whenever we need.
deffered expenses are those which have been accumulated and are not paid yet. for example if we do not pay the rent of the building for 5 months , so it has been deffered means accumulated!

A prepaid expense usually relates to a specific time frame, like pre-paying rent as mentioned above. Whereas a deferred expense may not have a specific time frame in which to be recognized. It might even be a partial expense which will continue to increase (whether actually paid or not) until the time comes when it will be amortized. An example might be costs associated with the acquisution of a business or product line. Those costs might continue to accrue as deferred expenses for months (or longer) until the transaction is complete and revenues begin to flow.

Gross and Net

Gross is the profit from the transaction without deduction. Net is the profit from the transaction after deducting cost of goods and cost of the sale (manpower, taxes, rent, etc.)

Difference between amortization, depreciation and depletion

noreply@blogger.com (Finance Explorer) — Mon, 31 May 2010 06:06:00 +0000

Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally expensed based on the time period over which the asset was used. Both depreciation and amortization (as well as depletion) are methods that are used to prorate the cost of a specific type of asset to the asset's life. It is important to mention that these methods are calculated by subtracting the asset's salvage value from its original cost.

Amortization usually refers to spreading an intangible asset's cost over that asset's useful life. For example, a patent on a piece of medical equipment usually has a life of 17 years. The cost involved with creating the medical equipment is spread out over the life of the patent, with each portion being recorded as an expense on the company's income statement.

Depreciation, on the other hand, refers to prorating a tangible asset's cost over that asset's life. For example, an office building can be used for a number of years before it becomes run down and is sold. The cost of the building is spread out over the predicted life of the building, with a portion of the cost being expensed each accounting year.

Depletion refers to the allocation of the cost of natural resources over time. For example, an oil well has a finite life before all of the oil is pumped out. Therefore, the oil well's setup costs are spread out over the predicted life of the oil well.

"Salvage Value"

noreply@blogger.com (Finance Explorer) — Mon, 31 May 2010 06:05:00 +0000

The estimated value that an asset will realize upon its sale at the end of its useful life. The value is used in accounting to determine depreciation amounts and in the tax system to determine deductions. The value can be a best guess of the end value or can be determined by a regulatory body such as the IRS.

Explaination of Salvage Value
The salvage value is used in conjunction with the purchase price and accounting method to determine the amount by which an asset depreciates each period. For example, with a straight-line basis, an asset that cost $5,000 and has a salvage value of $1,000 and a useful life of five years would be depreciated at $800 ($5,000-$1,000/5 years) each year.

Within the tax system, when a person donates a car he or she receives a tax deduction. The value of this deduction depends on the salvage value of the car. This salvage value is determined to be the current fair market value that could be obtained had the car been sold on that day rather than donated.

"Amortization"

noreply@blogger.com (Finance Explorer) — Mon, 31 May 2010 06:04:00 +0000

What Does Amortization Mean?
1. The paying off of debt in regular installments over a period of time.

2. The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright.

Explaination of Amortization
Suppose XYZ Biotech spent $30 million dollars on a piece of medical equipment and that the patent on the equipment lasts 15 years, this would mean that $2 million would be recorded each year as an amortization expense.

While amortization and depreciation are often used interchangeably, technically this is an incorrect practice because amortization refers to intangible assets and depreciation refers to tangible assets.

"Accrual Accounting"

noreply@blogger.com (Finance Explorer) — Mon, 31 May 2010 06:02:00 +0000

Definition: An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. The general idea is that economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or received). This method allows the current cash inflows/outflows to be combined with future expected cash inflows/outflows to give a more accurate picture of a company's current financial condition.

Accrual accounting is considered to be the standard accounting practice for most companies, with the exception of very small operations. This method provides a more accurate picture of the company's current condition, but its relative complexity makes it more expensive to implement. This is the opposite of cash accounting, which recognizes transactions only when there is an exchange of cash.

Explaination of Accrual Accounting
The need for this method arose out of the increasing complexity of business transactions and a desire for more accurate financial information. Selling on credit and projects that provide revenue streams over a long period of time affect the company's financial condition at the point of the transaction. Therefore, it makes sense that such events should also be reflected on the financial statements during the same reporting period that these transactions occur.

For example, when a company sells a TV to a customer who uses a credit card, cash and accrual methods will view the event differently. The revenue generated by the sale of the TV will only be recognized by the cash method when the money is received by the company. If the TV is purchased on credit, this revenue might not be recognized until next month or next year.

Accrual accounting, however, says that the cash method isn't accurate because it is likely, if not certain, that the company will receive the cash at some point in the future because the sale has been made. Therefore, the accrual accounting method instead recognizes the TV sale at the point at which the customer takes ownership of the TV. Even though cash isn't yet in the bank, the sale is booked to an account known in accounting lingo as "accounts receivable," increasing the seller's revenue.

Jokes a a a part

noreply@blogger.com (Greatest Surfer) — Fri, 28 May 2010 16:59:00 +0000

Evolution

The teacher was going to explain evolution to the children.

The teacher asked a boy: Hrithik do you see the tree outside?

HRITHIK: Yes.

TEACHER: Hrithik, do you see the grass outside?

HRITHIK: Yes.

TEACHER: Go outside and look up and see if you can see the sky.

HRITHIK: Okay. (He returned a few minutes later) Yes, I saw the sky.

TEACHER: Did you see God up there?

HRITHIK: No.

TEACHER: That's my point. We can't see God because he isn't there. Possibly he just doesn't exist.

A girl spoke up and wanted to ask the boy some questions.

The teacher agreed and the girl asked the boy: Hrithik, do you see the tree outside?

HRITHIK: Yes.

LITTLE GIRL: Hrithik do you see the grass outside?

HRITHIK: Yessssss!

LITTLE GIRL: Did you see the sky?

HRITHIK: Yessssss!

GIRL: Hrithik, do you see the

teacher?

HRITHIK: Yes

GIRL: Do you see her brain?

HRITHIK: No

GIRL: Then according to what we were taught today in school, she possibly may not even have one!

Mother in Law is sweet

A man was traveling down a country road when he saw a large group of people outside a house. He stopped and asked a person why the large crowd was there.

A farmer replied, “Ram’s mule kicked his mother-in-law and she died.”

“Well,” replied the man, “she must have had a lot of friends.”

“Nope,” said the farmer, “we all just want to buy his mule.”

Indicators

Santa and Banta went for a drive.

Santa: Hey, look out from the window, are the indicators working or not?

Banta puts his head out & says "Yes-No, Yes-No, Yes-No, Yes-No!!!"

Secret of Santa’s long marriage

Some people ask the secret of Anthony’s long marriage.

They take time to go to a restaurant two times a week: a little candlelight dinner, soft music, and a slow walk home.

The Mrs. goes Tuesdays; He goes Fridays.

Ship Sinks ....

Titanic was sinking.

An Englishman asked Santa, "How far is land"?

Santa: 2 KMs.

Englishman jumped into sea.

Englishman: Now, which direction?

Santa: Downwards !

Men will be Men

Ek 99 year ka aadmi Swarg ki raunak aur sunder apsarao ko dekhke bola : “Ye Baba Ramdev ke chakkar me na pada hota to yaha 30 saal pehle aa gaya hota”.

GETTING INTO FIGHTS

They were married, but since the argument they had a few days earlier, they hadn’t been talking to each other.

Instead, they were giving each other written notes.

One evening he gave her a paper where it said:

“Wake me up tomorrow morning at 6 am.”

The next morning he woke up and saw that it was 9 o’clock.

Naturally he got very angry, but as he turned around he found a note on his pillow saying:

“Wake up, it’s 6 o’clock!”