...__________________________ (Name of the Institution) __________________________ (Address) TO WHOM IT MAY CONCERN : We, the senior students of Finance & Treasury Management (FTM) under the College of Management and Entrepreneurship of Pamantasan Ng Lungsod Ng Maynila hereby respectfully request for the conduct of research / study about the following topics that concern your prestigious company, to wit: 1. Vision, Mission, Objectives, and Philosophy 2. Nature of Business 3. Corporate size 4. Rank in the industry as to profitability, liquidity, and solvency 5. Finance organizational structure and composition 6. Treasury department’s role, function, and delimitation of authority 7. Set qualification standards in the appointment or designation of a treasury manager 8. Treasury manager’s duties and responsibilities 9. Usual management practices that a corporate treasurer undertakes to ensure the company’s profitability 10. How does the treasury manager contribute towards the company’s growth 11. What are the common problems that the treasury manager encounters and how he resolves them? As such, the data and information that you may possibly disclose to us will be utilized in compliance with the terminal requirement of our currently being undertaken subject entitled TREASURY MANAGEMENT. Rest assured that all of your response to the aforesaid queries and other concerns will be used for academic purposes only, and shall be treated...
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...2013 MANAGERIAL ECONOMICS GROUP PROJECT: “US TREASURY BILLS AUCTION PRICING: ANALYSIS OF THE STRUCTURE AND PROCESSES” Professor: Done by: The goal of this paper was to analyze and explain the auction system process held by US Treasury and the possible alternatives for it (multiple-pricing auction). Introduction. The U.S. Treasury Department regularly borrows to finance the Federal Government's debt. From 1980 to 2006, the public debt of the United States grew from $930 billion to $8.68 trillion. Approximately one-half of that debt is held in Treasury bills, notes, and bonds, or "treasuries." The Treasury Department sells these securities at auctions held at the Federal Reserve Bank of New York, and the Bureau of Public Debt (BPD) in Washington, D.C. The rest of the debt is held mostly in federal and federally sponsored agency securities and U.S. Savings Bonds, and is not sold through the auction process.1 The modern auction process for bills, notes, and bonds begins with a public announcement by the Treasury. A typical announcement might read, "The Treasury will auction $11,000 million of 91-day bills to refund $9,000 million of maturing securities and to raise about $2,000 million new cash." This statement clearly describes the 2 goals of Treasury: to refund old debt and to raise new funds. Such announcement is carried by most...
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...A Treasurer's Guide to Money Market Funds 2012 The World Behind Fitch’s MMF Ratings by Charlotte Quiniou, CFA, Director in Fitch Ratings Fund and Asset Manager Rating Group Fitch money market fund (MMF) rating is far more than just a stamp on a fund. Its value for investors comes from the depth and breadth of the underpinning rating analysis and process. A key component of a Fitch MMF rating is also the regular, independent surveillance performed by Fitch’s analysts, which supports ongoing dialogue with fund managers, so that systematic mechanical reactions are avoided. To better serve investors, Fitch provides information on rated MMFs and developments in the money market industry, notably based on MMF surveillance information, through freely available periodic publications and online tools. A Disciplined procedures ensure consistency Fitch conducts analysis and assigns ratings on MMFs following a consistent, disciplined process that is applied globally. The diagram in Figure 1 provides a summary view of the major steps followed by Fitch when assigning or reviewing a MMF rating. At the start of the rating process, each MMF is assigned to a group of two analysts: the primary (or lead) analyst, and the secondary (or back-up) analyst. Analysts are responsible for leading the analysis and formulating a rating recommendation. The primary analyst is typically responsible for the continuous surveillance of the rating, once it has been assigned, and maintaining the...
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...various types of compensation plans, e.g., employee profit sharing. Non profit making organisation: A non profit organization exists to provide a particular service to the community. The word "non profit" refers to a type of business one which is organized under rules that forbid the distribution of profits to owners. "Profit" in this context is a relatively technical accounting term, related to but not identical with the notion of a surplus of revenues over expenditures. The main aim of these organisations is helping the community and is concerned with money only as much as necessary to keep the organisation operating. TREASURY MANAGEMENT. Treasury management (or treasury operations) includes management of an enterprise's holdings, with the ultimate goal of maximizing the firm's liquidity and mitigating its operational, financial and reputational risk. Treasury Management includes a firm's collections, disbursements, concentration, investment and funding activities. In larger firms,...
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...Treasury management (or treasury operations) includes management of an enterprise's holdings, with the ultimate goal of maximizing the firm's liquidity and mitigating its operational, financial and reputational risk. Treasury Management includes a firm's collections, disbursements, concentration, investment and funding activities. In larger firms, it may also include trading in bonds, currencies, financial derivatives and the associated financial risk management. Most banks have whole departments devoted to treasury management and supporting their clients' needs in this area. Until recently, large banks had the stronghold on the provision of treasury management products and services. However, smaller banks are increasingly launching and/or expanding their treasury management functions and offerings, because of the market opportunity afforded by the recent economic environment (with banks of all sizes focusing on the clients they serve best), availability of (recently displaced) highly seasoned treasury management professionals, access to industry standard, third-party technology providers' products and services tiered according to the needs of smaller clients, and investment in education and other best practices. For non-banking entities, the terms Treasury Management and Cash Management are sometimes used interchangeably, while, in fact, the scope of treasury management is larger (and includes funding and investment activities mentioned above). In general, a company's treasury...
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...After Jesus revealed to the Jews that He was the Light of the World (John 8:12-19), He began to talk to them about Heaven, the world from which He came. John recorded, These words spake Jesus in the treasury, as he taught in the temple: and no man laid hands on him; for his hour was not yet come (8:20). The location in the temple where Jesus was speaking was the treasury, which was openly accessible to the public. Specifically within the treasury, Jesus was in an area called the women’s court, which was the same location where the woman who was caught in adultery had just been brought before Him. Although Jesus was in His Father’s house, the enemy had control of the temple. The temple was the place where the chief priests and Pharisees...
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...Several investment pools have been established by the partners of the Partners Healthcare and the two main investment pools are the short term investment pool and the long term investment pool. The investment pools invest the funds of the hospitals in order to generate the desired risk objectives and under the minimum risk of their returns in order to fulfill the needs of all the hospitals. Furthermore, the investment assets in the short term pool comprised of about the short term fixed income financial assets with high quality in terms of the expected returns. These are the reasons that the STP is treated as the risk free portion of the entire investment portfolios of Partners Healthcare. However, the investment assets in the LTP comprised of high risk equity stocks and foreign stocks also which made the risks much higher for this specific class of the investment fund. Therefore, in order to diversify the risks associated with LTP and to decrease the volatility of the returns for this specific fund in the long term, the Investment Committee of Partners Healthcare sought to introduce a new type of investment assets in the LTP. This new type of the investment asset is called as the real asset. Two types of the real assets which were REITs and the commodities such as the futures were considered for incorporation in the LTP portfolios and a result of that the performance of LTP at the end of 2004 turned out to be excellent. Moreover, the Investment Committee wanted to expand...
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...There was a general increase in the Bank’s portfolio of both assets and liabilities for the year ending December 31, 2010 when compared to the previous comparative period. This was mainly attributed to increases in the Bank’s loans and advances, investment securities and customer deposits. Assets for the year ending December 31, 2010 increased by $240,359 (29.22%) when compared to the previous year and this was primarily due to increases in Loans and Advance and Investment Securities which were $127,732 (29.41%) and $101,654 (39.97%) respectively. Although there was an increase in the Loans and Advance figure, General Loan Loss Reserve also increased by $1,261 (63.40%). Included in the Investment Securities are USD investments totaling $70 million and this represents 19.66% of the total investment portfolio. Liabilities increased by $214,000 (31.47%) for the comparable periods. The Bank’s debt to equity ratio moved from 4.77 to 5.29 from December 31, 2009 to 2010 indicating the additional loans and investments and deposits obtained in 2010. A comparison the Bank’s current ratio doubled from 1.08 in 2009 to 2.11 in 2010 reflecting an increased liquidity position. These analyses also demonstrate a greater appetite for Bank T & T Ltd. Capital Management Bank T & T limited’s objective is to continue operating as a going concern and as such when managing capital would be required:- • To comply with the capital requirement set by the regulators under the Financial Institutions...
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...CURRICULUM VITAE ARADHYA SRIVASTAVA B 37/175, A-4, Birdopur, Baijanatha, Varanasi, 221010 Uttar Pradesh. Tel: 0542-2363829 ARADHYA SRIVASTAVA +919616164414 Email: - aradhyasrivastava@ymail.com OBJECTIVE:-. * To work in challenging environment in the organization and by using my capability to enhance the growth and prosperity of organization and to simultaneously enrich my skills. PERSONAL SKILLS:- * Comprehensive problem solving abilities, excellent verbal & written communication skill, ability to deal with people diplomatically willingness to learn, team, facilitator. ACADEMIC QUALIFICATION:- * High school from CBSE board in 2004 with 60%. * Intermediate from CBSE board in 2006 with 74% * Completed B.com for SCHOOL OF MANAGEMENT SCIENCE VARANASI affiliated to VBSP university in 2009 with 62% * Completed M.com from FACULTY OF COMMERCE BHU in 2011 with 68% * Pursuing PGDM (financial services) from JAIPUIAN INSTITUTE OF MANAGEMENT lucknow EXPERIENCE Six month experience with an C.A as an assistant audit officer in different office COMPUTER SKILLS:- * DIPLOMA IN FINANCE AND ACCOUNTING in 2011 from NIIT * ADVANCE DIPLOMA IN COMPUTER APPLICATION in 2009 from * TALLEY 7.2 form tally academy * Certificate of merit from school of management science PERSONAL DETAILS:- * Name : ...
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...Treasury stock is an outstanding share which was repurchased by the corporation. Treasury stock can be reported using the cost or par value method. The mostly commonly used method between the two is the cost method. The cost method only requires firms to record The par value method requires a company to record the cost of repurchased stock at the value that they assure to shareholders is backed. The cost method requires companies to record treasury stock at price it was purchased at. Recording the transaction of acquiring treasury stock below par value under the cost method would require a journal entry consisting of a debit to Treasury Stock and a Credit to cash, which ignores the loss or gain contributed. Using the par value method for the same situation requires a debit to Treasury Stock and Additional Paid in Capital –Treasury Stock and a credit to cash. The Additional Paid in capital account is used to account for the difference in the par values. If the stock is repurchased at price above par value the entry under cost method would remain the same. While the entry under the par value method would be a debit to treasury stock and a credit to Additional paid in capital-Treasury Stock and cash. Whether the stock was purchased under or above par value affects the recording of the resale of the treasury stock. If the stock is sold at a price below the purchase price but above par value it would be recorded as a credit to treasury stock for the purchase price and the...
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...Executive Summary Perwaja Steel Sdn Bhd has recently downgraded their bonds to non-investment grade and this has led to questioning regarding their ability to pay bondholders. The problem arise because of the operational risk involved due to the market price of steel is very low and by selling these steels to pay bondholders would be a loss to Perwaja as the selling price will be lower than its cost price. Perwaja also faced currency risk due to the weakened ringgit against country of suppliers whom they rely heavily upon imported raw material. Moreover, high reliance upon debt financing which in return has also directed to higher liquidity risk and cash flow problems. As the result of these, Perwaja may encounter higher interest rate risk, as it would be difficult for the company to source for funds and higher cost of borrowings. Company profile Perwaja Stell Sdn Bhd is primarily involved in manufacturing and trading of reduced iron, steel billets, beam blacks and blooms which is supplied to downstream producers, both domestic and international markets mainly in Asia and the Middle East. The company operates as a subsidiary of Perwaja Holdings Bhd. Perwaja is categorised under the MISC Structural Metal Work Industry. Perwaja Steel Sdn. Bhd. was founded in 1982 and is based in Kuala Lumpur, Malaysia. It was formerly known as Perwaja Terengganu Sdn Bhd, but in year 1989, the company changed its name to Perwaja Steel Sdn Bhd. The Executive Chairman is Tan Sri Abu Sahid...
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...CHAPTER 11 Corporations: Organization, Share Transactions, Dividends, and Retained Earnings ASSIGNMENT CLASSIFICATION TABLE Brief Exercises Do It! Exercises 1, 2, 3, 4, 5, 6 1 1, 2 1, 2 Record the issuance of ordinary shares. 7, 8, 9, 10, 11 2, 3, 4 3 *3. Explain the accounting for treasury shares. 12, 13, 14 5 4 *4. Differentiate preference shares from ordinary shares. 15 6 *5. Prepare the entries for cash dividends and share dividends. 17, 18, 19, 20, 21, 22 7, 8, 9 *6. Identify the items that are reported in a retained earnings statement. 16, 23, 24 Questions *1. Identify the major characteristics of a corporation. *2. 7. Prepare and analyze a comprehensive equity section. *8. Compute book value per share. B Problems 2, 3, 4, 7, 8, 11, 12 1A, 3A, 6A 1B, 3B 5, 7, 9 11, 12 2A, 3A, 6A 2B, 3B 6, 7, 10, 11, 12, 24 1A, 3A, 6A 1B, 3B 5, 6 13, 14, 15, 16, 25 4A, 5A, 7A 4B, 6B 10, 11 7 17, 18 5A 5B, 6B 8 10, 11, 19, 20, 21, 22, 23, 25 1A, 2A, 3A, 4A, 5A, 6A, 7A, 8A 1B, 2B, 3B, 4B, 5B, 6B, 7B Describe the use and content of the statement of changes in equity. *9 A Problems 12 Study Objectives 9A 25, 26 13 23, 24, 25 3A, 8A 3B, 7B *Note: All asterisked Questions, Exercises, and Problems relate to material contained in the appendix to the chapter...
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...Financial Accounting – Midterm Study Guide 1. Assets = Liabilities + Equity 2. Total Assets = Cash + A/R + Inventories + Prepaid Expenses 3. Income Tax – “corporate tax rate” 4. Assets = Liabilities + (C.C. + R.E.) (Retained Earnings) 5. BALANCE SHEET – is divided into 3 sections: assets, liabilities and stock holder’s equity. It provides information about the resources available to management and the claims against those resources by creditors and shareholders. The balance sheet reports the assets, liabilities and equity at a “point in time”. *** (Retained Earnings Beginning of year + Net Income) – Dividends = End of Year Retained Earnings *** Retained Earnings from the Beginning of the Year = Retained Earnings from the End of the Previous Year <PPE are not ASSETS> A. Liabilities – The difference between a company’s assets and its equity B. Return on Assets – Net Income divided by average assets C. Assets – Resources that a company owns or controls D. Net Income – sales, costs of goods sold and all other expenses are necessary to calculate this i. Proportion Financed by Non-Owners = Total Liabilities / Total Assets ii. Proportion Financed by Owners = Total Equity / Total Assets 1. ROA – Return on Assets = Net Income / Average Assets 2. ROE – Return on Equity = Net Income / Average Stockholders’ Equity 3. AT – Asset Turnover = Sales / Average Assets 4. PM – Profit Margin = Net Income / Sales ...
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...outstanding..................$2,600,000 c)= 0.60 x 360,000 = 216,000 $ d) It is likely that the company has repurchased its shares and retired them. 8.10 a. Annual dividend per share= $3.25 b. Preferred dividends= $3,900 Common dividends= $4,500 Total dividends received= $8,400 Exercise 8.18 a. 800 shares after the stock split b. Dividend income before the stock split= $3,600 $4.50 per share c. 33 1/3% stock dividend would accomplish the same Problem 8.22 a. Dr. Treasury stock- 330,000 Cr. Cash 330,000 b. Shares outstanding at beginning of year 574,600 shares purchased for treasury in first quarter (4,400) Shares outstanding during second quarter 570,200 Cash dividend per share *1.20 Dividend paid at the end of second quarter $684,240 c. assets=liabilities+owners equity<-net income=revenues-expenses cash Treasury stock +117,000 +105,000 additional paid in capital +12,600 d shares outstanding second quarter 570,200 treasury shares sold in third quarter 1,400 shares outstanding in fourth quarter 571,600 cash dividend per share *1.20 dividend paid at the end of fourth quarter 685,920 e...
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...CHAPTER 15 Debt and Equity Capital Review Questions 15–1 A trust indenture is drawn to protect the position of bondholders by imposing restrictions upon the borrowing corporation. One of the most common of these restrictions is that the company must not declare dividends that would cause the working capital to fall below a specified amount. An overly generous dividend policy could leave the company so short of cash as to endanger the position of bondholders. 15–2 Restrictions commonly imposed on a borrowing company by long-term creditors relate to (a) dividend payments, (b) acquisition of property and equipment, (c) increases in managerial compensation and (d) acquisition of additional debt. Such actions are usually permitted only if they will not reduce the current ratio and amount of working capital below specified levels, or increase the debt to equity ratio above a specified level. Creation of a sinking fund is another common requirement designed to assure that cash will be available to pay the long-term debt at maturity. 15–3 The trustee protects the interests of the bondholders by accounting for the issuance and redemption of bond certificates, determining that provisions of the borrowing agreement are observed by the corporation, and reporting periodically on the amount of the liability and of any related sinking fund. This work by the trustee leaves little opportunity for either error or fraud in the issuance, servicing, or redemption of bonds...
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