#Life #Quote by a #CharteredAccountant on #BalanceSheet and #ProfitLossAccount @ChartAcc

Thursday, October 15, 2015

ChartAcc.com - Here is one of the different quotes we came across, which defines life beautifully in accounting terms; especially as it is written by a Chartered Accountant.
"May your Profit and Loss account of deeds for humanity be in profits; for you have to present your Balance Sheet on the Judgment Day."
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Best Repo and Reverse Repo definition #ChartAcc @EYIndia @DeloitteIndia @KPMGIndia @PWCIndia @CAClubIndia

Thursday, October 8, 2015

ChartAcc.com - Santa: I have heard recently that Mr. Rajan has reduced Repo Rate by 50 basis points and everyone is saying that this is good for the market. Loan EMI may also come down. What is this rate cut means actually? I want to understand this.

Banta: To understand this you first need to know, how does a bank function.

Santa: Why?

Banta: Because all these are inter-related. Tell me – what does a bank do?

Santa: Bank takes money from depositors and gives loan to earn interest. That way they keep everyone happy and make a profit also.

Banta: Correct, but there are more to it. Let me explain this in a very simplistic way. Bank needs money. Bank can get money from depositors like you and me and also from RBI. But bank also needs to pay certain interest to us and also to RBI.

Santa: Ok.

Banta: Let us try to understand first – what happens when we deposit, say, Rs. 100 with a bank.

Santa: I know that. Bank gives that Rs. 100 to someone who needs a loan.

Banta: No, it is not that simple. Remember, though bank can earn interest by giving away loans, but it is also very risky. There are many cases of loan defaults. This way banks can put all our money into high risk areas. It has to be protected.

Santa: How?

Banta: Ok, RBI has made it mandatory that upon receiving, say, Rs. 100 – banks first have to deposit Rs. 4 with RBI. RBI keeps this Rs. 4 in its current a/c and hence banks do not receive any interest on this money. This is known as Cash Reserve Ratio or CRR, which is currently at 4%.

Santa: Hmmm, then?

Banta: RBI has also made it mandatory that upon receiving, say, Rs. 100 – banks need to compulsorily buy central and state govt. securities of Rs. 21.50. Of course banks will earn some interest income here. This is known as Statutory Liquidity Ratio (SLR), which is currently at 21.50%.

Santa: Ok, so you mean to say that upon receiving Rs. 100, banks can spend only Rs. 74.50 at its own will.

Banta: Correct. 100 – (4 + 21.50) = 100 – 25.50 = 74.50

Santa: But you were saying that banks can also borrow from RBI. What interest banks pay to RBI?

Banta: Before 30th September, banks were paying 8.25% interest to RBI when it borrows money from RBI. Now this rate has been reduced by 50 basis points. So banks now need to pay interest to RBI, if it borrows from RBI, at the rate of 7.75%. This is known as Repo Rate.

Santa: Can fixed deposit rate be affected by reduction of Repo Rate?

Banta: Of course. If banks get money from RBI @7.75%, why will banks pay higher interest to you and me? One year FD rate is already revised by many banks and it is equal to or very close to 7.75%.

Santa: But as now banks are getting money at a cheaper rate, then they should reduce the loan interest rate i.e. passing on the benefits it receives.

Banta: Correct. They should. And on that hope market is cheering. If companies get loan at a cheaper rate, they will likely to expand their businesses. That will create more jobs, more income and boost the economy.

Santa: How is inflation linked to this?


Banta: See, when loan becomes cheaper, people tends to borrow more. That means people will have more money to spend. This will increase the demand for goods, and if supply does not increase to match this demand, then prices will increase.

Santa: So there is a chance, that inflation may rise also?

Banta: Well, yes. But inflation depends on many other factors as well, like production (industrial and agricultural), manufacturing, export – import, foreign currency movement etc. So inflation may increase or may not.

Santa: One last question. Like we deposit our money with banks, can banks also deposit their money with someone?

Banta: Yes, they can deposit with RBI and earn interest too. This interest is typically 1% less than the repo rate. This rate is known as Reverse Repo Rate.

Santa: Great! So now I understand CRR, SLR, Repo Rate, Reverse Repo Rate and their impact on deposit rate, loan interest rate and on inflation. Thanks.

Banta: Welcome!

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Challenges Ahead? Huh! Who cares! I am a CA, Chartered Accountant. 10 quotes for CAs students result May 2015

Friday, July 17, 2015

ChartAcc.com - Here is a message from a CA for students:

"Don't treat yourself as if you have failed. Take it as a challenge and come up with more enthusiasm and a robust study plan; because..

Don't get disheartened. I too had failed in CA and I am happy today as I chose to reappear. Don't listen to people who say you can't do it. Prove them wrong by re-appearing and becoming a CA. It's your dream and you only have to toil to achieve it. Plan well, revise well and you'll be able to crack it.
Read more at www.Vikrmn.com

  1. From the Balance sheet of humanity, to the Profit & Loss account of emotions, I am all in good books. I am a Chartered Accountant.
  2. Happiness is.. Starting your study with 3 principles of accounting, then your profession, with 3 principles of life.. CHALLENGE it, ACHIEVE it, Loop it. I am a Chartered Accountant.
  3. CA means Can-do Attitude. I may fail, but I would not give-up because I believe I can. I am a Chartered Accountant.
  4. CA means Chakra of Ambitions. I am a Chartered Accountant.
  5. CA means Charismatic Amalgamation of great experiences of life. I am a Chartered Accountant.
  6. CA means .. Read more at www.Vikrmn.com
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10 Golden Rules by a Chartered Accountant on 1 July 2015 CA Day

Friday, June 26, 2015

ChartAcc.com - A CA not only knows about Investments and Financials Statements but the rules of leading a great life too. A Chartered Accountant, on an average, goes through so many experiences of life while dealing with different situations. Hereunder are the ten best and universally applicable golden rules:

1.   Live life full time:
Life is like a guitar; Tune. Play. Repeat. Give your best shot to life. Be passionate about the things you do. Life is like a Guitar. First you need to TUNE yourself, update yourself before you start something new or re-start something old with new style or method. Once you know ABC of it, PLAY it with your best efforts. Give your best shot. Once you achieve your target, take some rest, cherish the moment and then REPEAT.

2.   Never Quit:
They are the victorious who dare not to give up. Never ever dare to give up. “You are the failure not the moment you are defeated, but the moment you give up fighting.” A student having passion for CA may
 fail once or twice or many a times in CA study course but the passion to get up again and appear for next attempt never dies. Because life after becoming CA changes.

3.   Utilise time well:
Time spent for temporary happiness like movie or outing or weekend on a beach is all synthetic; with shelf life of a day or two. Work for your bigger dreams that should last for whole life. Then movie and beach would seem more interesting, realising that you have done something. 
Make a goal and start spending your value time in it. It’s not necessary that you should be earning from your hobby. First nurture your leisure time in the things you love doing or you always wanted to do but never got time. Be it painting or playing guitar or book writing. Once you get a taste of it, you won’t know when you would complete a milestone and you would be addicted to it. You shall cherish that moment.

4.   Define your destiny:
Sometimes.. Life is like a vacuum cleaner. You know what it does. All you need to do is to kick the power plug and take the charge. Never give the charge of your life in the hands of others; you’ll get screwed and people would ... Continued here..

Read the full article here..

Posted by Vikrmn: CA Vikram Verma; author of 10 Alone (Novel) and MICS Unleashed’ (Academics).

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Novel by a CA - 10 Alone - featured in #Limca book of records 2015 #LBR

Saturday, February 28, 2015

ChartAcc.com -  "10 Alone", a novel authored by a Chartered Accountant, has been featured in "Limca book of records - 2015 Special Literature Edition" under the title "First Novel with 10 songs".

 10Alone in Limca book of records 2015 in Literature First Novel LBR 
by Vikrmn: Complex means simply difficult (CA Vikram Verma) 
 10Alone in Limca book of records 2015 certificate in Literature First Novel LBR 
by Vikrmn: Complex means simply difficult (CA Vikram Verma) 

CA Vikram Verma, the author of this novel, released it under his mononymous pen name Vikrmn"Music album of the novel would be released in two parts of five songs each," says Vikrmn. All the songs have been scripted by Verma himself where genre of the songs range from love to motivation and also includes one song that is dedicated to mother. Languages used in the songs, wholly or partly, are Hindi, Punjabi, English and Arabic.

"10 Alone" is a story about friendship of ten Chartered Accountants. The verdict "met by chance" shows their journey through the corporate world. Cultures from ten different states of India are included in the novel and whole plot is based out of Middle-East. More details about the novel are available at 10Alone.com

Vikrmn released his first academic book "MICS Unleashed" in 2007. Multi-forte persona, his dexterity bags creative pursuits like chalk carving, oil painting, spreadsheet programming, stop-motion, photography and Guitar. A Chartered Accountant by profession, he also blogs on finance related topics at ChartAcc.comAs the founder of Quoterian.com he serves motivational quotes. Raised in Mohali, Punjab (India), he currently resides in Delhi.

Link to the novel website

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and Financial Professionals

Novel by a Chartered Accountant

10 Alone

A novel by Vikrmn (CA Vikram Verma)

a saga of 10 friends.. 10 Dreams.. 10 hearts.. 10 Minds..

It's a story of 10 Chartered Accountants.. who celebrate personal and professional life.. all together.. Ten Together..

www.10Alone.com | www.Vikrmn.com