Allahabad Bank e-Learning Project

IRT, Panchkula

DIVIDEND STRIPPING
Is used for tax avoidance by buying units at the time dividend is declared and selling it at the post dividend price to create an artificial loss. This loss is set against other capital gains to avoid paying tax DIVIDEND PAYOUT RATIO Has been raised to 40 pc. Banks to exclude the extra-ordinary profit or income while calculating this ratio DERIVATIVE FUNDS Of late seem to be catching the fancy of the Mutual Fund industry. Arbitrage funds, as they are called , look at delivering returns by exploiting arbitrage opportunities available in the cash market & future market, These funds have a hybrid character with percentage of the funds invested in short term debt or cash. The rest is invested in the hedged funds or equity. These funds aim to exploit the interest rate differentiation between the cash and the future markets for a stock. DIGITAL BLUE TOOTH Pen can transmit hand written text to a nearby computer or beam it as an email to the users mobile phone, The Cigar shaped pen are only compatible with blue tooth devices DERIVATIVES/ARBRITAGE FUNDS A financial asset that is derived from another financial asset. Thus an option to buy a share is derivative. The option could not exist without the share , from which it is derived. Look at delivery return by exploiting arbitrage opportunities available in the cash & future markets. DEPB Is an incentive given to exporters y the Govt. --- They are given a license to This is culled from various sources by IRT Panchkula. Consult HO circulars for finality. 1 These funds have hybrid characters, short term debt, cash. The rest is invested in hedged equity

Allahabad Bank e-Learning Project

IRT, Panchkula import duty free goods in proportion to their exports---These licenses are saleable -- I T dept., could restart the assessment, on the income arising out of DEPB- Duty Entitlement
Pass Book

DEFERRED SHARES Shares in a company that receives no payment in the event of a liquidation until preference and ordinary shareholders have been paid the their shares in full. These are usually held by the people relationship with the company, such as its founders DISCLOSURES The legal requirement of companies to reveal information to certain parties at certain times. DISTRESS SALE A sale that occurs when owners of the goods find themselves in a position of having to sell those goods at DEEP DISCOUNT difficulties DOCUMENTARY CREDIT A method of financing trade in which the documents proving that the sale has been made are used as collaterals for loan EASIEST Electronic Accounting System in Excise & Service Tax CBEC has e-payment route mandatory for high value transactions where receipts would be available thru TIN often because of the cash flow NORMAL VALUE of who have a special

e-business
Coined by IBM, is an integration of key business processes through the use of internet technology. It can be thought of as a tool to cut customer servicing time, reducing inventory turnover time & cutting production cost 5 Pillars of e-commerce This is culled from various sources by IRT Panchkula. Consult HO circulars for finality. 2

Allahabad Bank e-Learning Project

IRT, Panchkula

Confidentiality Integrity Authenticity Non-repudiation Universality E-money An electronic store of money value on a technical device used for making payments to undertakings other than the issuer without involving necessarily bank account It is a pre-paid instrument EVA The ratio measures the profit that a company earns over the cost of capital ----It tells you whether or not the return earned on capital employed is higher than the cost of capital---- It can be compared with peers EXPORTS (Imp. sectors) Textiles ECONOMIC LIFE The length of the time during which a machine or a piece of equipment will produce more REVENUE than it cost to maintain EMBARGO A ban on transferring something from one party to another. It may be goods such as trade embargo preventing the export of arms to a particular country . EMERGING ECONOMY A country that is on the way of becoming a developed economy in terms of its GDP per head. ENVIRONMENTAL AUDIT This is culled from various sources by IRT Panchkula. Consult HO circulars for finality. 3 jewellery engg goods agri prod petr prod leather

Allahabad Bank e-Learning Project

IRT, Panchkula An audit of a companys impact on the environment. ESCROW When a contract or an asset such as money is placed with a third party until certain conditions are met, is said to be held in escrow account. EUORO DOLLAR The name given to dollars held outside the Us, particularly those held by the European banks and by American Banks in Europe. EXCHANGE CONTROL Govt imposed controls that restrict the amount of currency that can be bought in or out of the country by the individuals or corporations.

This is culled from various sources by IRT Panchkula. Consult HO circulars for finality. 4