Magme Guru

Tuesday, November 30, 2021

SEMINAR November 30, 2021

Abbreviations of Banks - 15 Mints Seminar Notes

ADR- American Depository Receipt

When a company issues receipt its known as ADR
For eg. When a Indian company goes to America and raises funds from the share market it issues a receipt called as American Depository Receipt (ADR)

AFS- Annual Financial Statement
This is also called as Budget (Article 112)
AIRCSC- All India Rural Credit Survey Committee
The chairman of this committee is AD Gorwala. On his recommendation this committee started SBI

ASSOCHAM- Associated Chambers of Commerce and Industry of India
The chairman is Vineet Agarwal. Headquarters at New Delhi
It represents the interest of trade and commerce in India
BIS- Bank for International Settlements
It is the oldest financial institute. The head office of BIS conducts BASEL meeting where worldwide central bank governor attends the meeting

BCBS- Basel committee on Banking Supervision
The committee that held the supervision of the banking activities it is called as Basel committee on Banking Supervision (BCBS)

BoP- Balance of Payment
The overall balance sheet of the foreign trades are recorded here.

CAG- Comptroller and Auditor General of India
        The chairman is Girish Chandra Murmu
        It audits all receipts and expenditure of the government of India

CC- Cash Credit
        It is a short term loan, which allows the borrowers to utilize money without holding a credit balance in an account.

CII- Confederation of Indian Industry
The chairman is TV Narendran. Headquarters at New Delhi
It strengthens the industry role in the economic development. It is a Non-government trade association

CRAR- Capital to Risk (Weighted) Asset Ratio
It’s also known as Capital Adequacy Ratio (CAR)
It is used to determine the minimum amount of capital that must be held by the banks

NPCI- National Payment Corporation of India
It enables digital payment and settlement systems in India

NBFC- Non-Banking Financial Companies

It provides banking services like facilating loan, investment, leasing …
For eg. Muthoot Finance

CIBIL- Credit Information Bureau India Limited

It maintains the credit records of individual customers in the bank. It gives a credit score to the customers based on their past loan details.

IFSC- Indian Financial System Code

It is 11 character code assigned by RBI to every bank branch uniquely.
First 4 characters represents Bank name. Fifth character is reserved as 0 for future use. Last 6 characters represents the Branch code of the bank.

RTGS- Real Time Gross Settlement

It is an electronic fund transfer system. Here a bulk amount can be transferred from one account to another account. The limit of minimum amount is 2 lakhs.

Presented by

Preethi Chouhan

Banking Student

Magme School of Banking

Magme Guru 0

SEMINAR November 30, 2021

Corporate Social Responsibility - 15 Mints Seminar Notes

SYNOPSIS
Introduction
Applicability
CSR Expenditure
CSR Committee
CSR Activities
Activities Not considered as CSR
Consequences of Non-Compliance
Cessation
Important points

INTRODUCTION
          CSR is governed by section 135 of Companies Act 2013. CSR can be briefly defined as the corporate giving back to the society.
           The concept of CSR is not new to India, it was started a way back in Mahatma Gandhi’s period and was known as Trusteeship but now in recent decades it has been coined as CSR.
          Boosting profits is no longer the sole business performance indicator for the corporate and they have to play the role of responsible corporate citizens as they owe a duty towards the society, where they operate and draw resources.
          CSR is the way companies manage their business to produce an overall positive impact on society through economic, environment and social action. CSR is used as a tool to increase the reputation of companies in the eyes of society.

APPLICABILITY
Section 135(1)
             Companies which have :
Net worth   500 Crore (or) more (or)
Turnover   1000 Crore (or) more (or)
Net Profit   5 Crore (or) more

Including their holding, subsidiary or foreign companies having branches in India exceeding the limit in immediately preceding financial year.

CSR EXPENDITURE
         A company should spend at least 2% of its average Net Profit made during the 3 immediately preceding financial year. If the company has not completed 3 years, then since its incorporation.

CSR COMMITTEE
        A CSR committee should be formed in those companies which were met with the applicability criteria. The committee should comprise of
Public company       2 directors and1 independent director
Private company   2 directors
Foreign company   2 directors , 1 being resident in India

ROLE
To frame CSR policies and recommend to the board .
Recommend the amount of expenditures to be incurred in the activity.
Monitor the CSR activities from time to time and
Display CSR report along with the Board report, Annual report during AGM(Annual General Meeting) and in its website.

CSR ACTIVITES
     Schedule VII of Companies Act 2013 comprise the list of CSR activities.

Eradication of Hunger, Poverty and Malnutrition.
Promoting Education.
Setting up homes, hostels, orphans, old age homes etc.
Protection of Flora and Fauna.
Restoration of Historical site.
Benefit for War Widows and their Dependents.
Promoting Sports, Olympics, Paralympics..etc.
Contribution to Research and Development.
Slum Area Development.
Funding for COVID 19 relief. (Finance Act 2020, 23/3/2020).

                                                                        (refer schedule VII for more)

ACTIVITIES NOT CONSIDERED AS CSR
Contributing directly or indirectly to political party.
Programs or activities benefit only to its employees.
Events like marathons, award functions, advertisement, sponsorship for TV programs.

CONSEQUENCES OF NON COMPLIANCE
        Company which fails to comply with sec 135 have to pay fine of minimum 50 thousand rupees which may extend to 25 lakh.
Every officer in default will be punished with an imprisonment for a term which may extend to 3 years or with a fine of minimum 50 thousand rupees which may extend to 5 lakh or with both.

CESSATION
       The CSR Rules specify that a company which does not satisfy the specified criteria for a consecutive period of three financial years is not required to comply with the CSR obligation.

IMPORTANT POINTS

CSR activities or programs undertaken ONLY in India shall amount to CSR expenditure.
Surplus arising out of the CSR project or programs shall not form part of business profit.
Infosys Limited has topped CSR in 2020 spent nearly Rs.360 Crs.
Net profit -- computed according to Financial Statements (P/L A/C).
Net worth -- Asset - Liabilities ( own-owe ).