Evidence Law Burden of Proof

Evidence Law Burden of Proof The legal or persuasive burden of proof is defined as the ‘burden of persuading the tribunal of fact, to the standard of proof required and on the whole of the evidence, of the truth or sufficient probability of every essential fact in issue’. In our scenario, the claimant will bear the legal burden of proving each element of his claim and this entitles him to call evidence first, giving evidence through witnesses, who will also be cross-examined. The legal burden of proof can only be judged in the light of all the evidence presented in a case, and this can only be done once the defendants have also presented their case. The prosecution has the legal burden to prove its case beyond reasonable doubt and to disprove beyond reasonable doubt the defences that an accused raises. In simple terms, there is an obligation of proving or disproving facts at issue. The burden is ‘legal’ in the sense that it is imposed by a legal rule and ‘persuasive’ in the sense that the party bearing the burden will lose on that issue if he fails to discharge the burden by persuading the tribunal of fact to the relevant standard. In Jayasena, Lord Devlin said that the prosecution discharges the evidential burden â€Å"â₠¬ . In Ching, reasonable doubt is described as a doubt to which you can give a reason as opposed to a mere fanciful sort of speculation. The evidential burden of proof is the burden of adducing evidence fit for consideration by the jury and there is the need to adduce sufficient evidence to satisfy a judge that the matter can be left to the jury to decide. There is an obligation upon both prosecution and defence to present sufficient evidence in support of their case. If the defence fails to discharge the evidential burden, the judge relieves the prosecution from the burden of disproving it. According to Lord Devlin, this requirement may be conveniently called ‘evidential burden’. The prosecution does not have to disprove every possible defence in advance, so if a party has an evidential burden, it does not mean that they actually have to prove anything. The prosecution discharges the evidential burden by establishing a prima facie case, that is enough evidence to entitle, but not compel, the tribunal to find in favour of claimant, had it been no further evidence. In this case, the claimant has thereby defeated a submission of ‘no case to answer’, while the defendant is not obliged to give evidence or call any witnesses. In established the principle of ‘golden thread’, according to which ‘throughout the web of the English Criminal Law one golden thread is always to be seen, that it is the duty of the prosecution to prove the prisoner’s guilt’. Where the accused pleads one of the exceptions, insanity, he bears the persuasive burden which is discharged on a balance of probabilities. However, if the defendant’s defence involves pleading issues, such as non-insane automatism, provocation or self-defence, the onus of disproving them rests on the prosecution. This formulation creates dif ficulties to juries as to the nature of reasonable doubt. As a result, a second formulation was put forward by Lord Goddard, the ‘satisfied so that you feel sure’. In Summers he stated ‘ if the jury told that it is their duty to regard the evidence and see that it satisfies them so that they can feel sure when they return a verdict, that is much better than using the expression ‘reasonable doubt’. When the defence bears the legal burden on an issue, they must prove it on balance of probabilities , as illustrated by Lord Denning in Miller. As the prosecution must disprove the defence ‘beyond reasonable doubt’, the defendant is required to demonstrate to a judge that a jury might have a reasonable doubt as to whether his defence will be disproved by the prosecution. The evidential burden will have been discharged if the defence was ‘a reasonable possibility’ worth leaving to the jury to consider, but not if ‘no reasonable jury, properly directed as to the law, could fail to find the defence disproved’. Therefore, the defendant must to call witnesses or give evidence to substantiate any defence and then it is for the prosecution to illustrate beyond reasonable doubt that the defendant did not act in self-defence and acted with the necessary mental element. Question 2 a confession is defined as inclusive of any statement that partly or wholly adverse to someone who made it, whether made to someone in authority or not, or made in words or otherwise. A confession may be oral, in writing, by conduct or in any other way of communicating information. As stated in, if the defendant accepts an accusation made by the victim of the crime, or by someone else who is on an equal footing, then to the extent that he has accepted it, the statement becomes his own. However, any breach of the procedure may be used as ground for excluding a confession. First, as soon a police officer has grounds to suspect that a person has committed an offence and wishes to question him, the necessary steps needs to be follow, including access to legal advice, as anything said is considered as evidence under. The admissibility and relevance of a confession are questions to be decided by the judge, whereas the weight to be given to the confession is a question for the jury. The defendant cannot be compelled to testify as this may be regarded as a breach of the legal procedure. If the witness is wrongly compelled to answer such a question, his answer may not be admitted as evidence against him at his later prosecution. Under the defence may represent to the court that the confession may to be obtained by suasion and should automatically excluded, even if it turns out to be true. As defined in the method of questioning may amount to oppression. For example, in the deliberate misuse of the truth about the defendant’s mother health by the police could amount to harsh or improper treatment and therefore oppression. Finally, the Court of Human Rights restated the importance of the right to silence and privilege against self-incrimination under Article 6 ECHR regarding access to justice and fair procedure. Pursuant, there is the legal advice privilege, according to which communications passing between lawyer and client, materials prepared for the purposes of litigation and advice given are privileged. To quote the words of Lord Taylor, ‘’, being sure that nothing will be revealed without his consent. It arises out of a relationship of confidence between lawyer and client. Thus, the privilege must prevail over purely procedural subordinate legislation. The only limitations imposed are in relation to the relevant legal context as held in Balabel and Three Rivers. Finally, it is submitted that no breach of confidentiality and no loss of privilege is involved when they are present during interviews or involved in preparing or transmitting communications with the client. Question 3 Opinion evidence is not admissible because it is for the tribunal of fact, and not for the witnesses, to form its opinion on the evidence. They must confine themselves to their personal perception of facts and not make any inferences from those directly observed facts. The opinion of expert-witnesses is helpful when the jury or the judge are unable to form an opinion based on bare facts and require additional expert assistance or when matters arise which concern other sciences or faculties. Although the ‘helpfulness principle’ of an expert witness has been criticized , expert opinion evidence to be admissible it must be able to provide the court with information which is probably outside of jury’s or a judge experience and knowledge, but it must also be evidence which gives the court the help it needs in forming its conclusions. There is no closed category where evidence cannot be placed before a jury, as ‘it would be wrong to deny to the law of evidence the advances to be gained from new techniques and new advances in science’ . An expert’s opinion in order to be reliable it have to be illustrated by admissible evidence. In Hodges was held that part of an expert’s experience and expertise might lie in his knowledge of unpublished material and in his evaluation of it. In R v Gilfoyle, the court suggested that if an opinion given by an expert may not be independently reconsidered by any criteria, this may to hinder its admittance. This is why provides that a jury shall not to make a determination [on unfitness to be tried]†¦except on the written or oral evidence of two at least medical registered practitioners. In our scenario, Dr. Khan’s opinion will not be admissible in evidence, because the method used is an innovative one, which cannot be independently reviewed yet and in any case it is essential that another registered medical practitioner confirms Dr Khan’s opinion. Question 4 (a)provides that ‘any person who without legal authority or presumable excuse and whereof the proof shoul lie on him, has into his possession any offensive weapon in any public area shall to be regarded guilty of violation †¦Ã¢â‚¬â„¢. In R v Williams , it was concluded that imposes a legal burden on the defendant and it was then for the prosecution to make the jury sure that the appellant was not aware and did no has any reason to be suspected that it was readily convertible. Pursuant toan imitation weapon is one that looks as a such weapon; and it can be easily be converted into a weapon which a shot may be discharged. S. 1(6) mentions ‘readily convertible’ as requiring someone without special skills to converting it and for the work involved no tools or outfit other than such as are in common use by individuals performing manufacture and maintenance works in their own homes. The burden of proof on the defendant relies on the plea of diminished responsibility, as per section William has the legal burden of proof and to establish, on the balance of probabilities, that he has not been aware that the imitation firearm could be converted to fire live ammunition and thus he had no intention to use it and thus he may be able to rely upon this defence at trial. (b)In Bowers , it was held that clearly allows an adverse inference to be drawn from silence at a police interview where an accused had not given evidence, as to hold otherwise would permit an accused to preclude the drawing of such inferences by choosing not to give evidence. permits conclusion to be assumed when a accussed remain silent at the time he questioned. , the defendants silent was inadmissible, but the jury had to conclude to an unfavorable conclusion because of defendants silence at charge according to section 34(1)(b). Subsequently, this section cannot be applied to William case. In criminal proceedings, the general rule is that everybody has to be regarded innocent until guilty is proven. The prosecution has to illustrate that the defendant committed an offence by establishing ‘beyond reasonable doubt’ all elements of the violation. permits the jury and the court to conclude to such presumptions as may be regarded proper from the defendant failure or refusal to give evidence and answer any question without good reason. Conclusion is not permitted when the court understands that the mental or physical condition of the defendant makes him undesirable to provide evidence. Based on the 5-step test established in Cowan , if jury’s conclusion show that the silence only can appreciably be ascribed to the defendants no answers or none that would stand up to cross-examination, they may conclude to an hypothetical presumption. Also in , it was held that a jury had not directed that reasons might be provided for not giving other evidence than the in ability to explain or answer the prosecution case. Therefore, ay be able to be applied in our case. (c)Where a suspect disputes identification, the prosecution will have to prove that the defendant is, beyond all reasonable doubt, the person who committed the offence. This is because it has not been clear so far whether the statement that the accused person was the person who committed the offence is admissible as evidence, or merely evidence confirming the evidence of the identifying witness at trial. According to the admissibility of a witness statement about identification is based on whether the evidence are given to the best of his belief and he states the truth. Building on that, the Court of Appeal in Turnbull provided guidance regarding disputed identification evidence and specified that a mistaken witness possible can be persuasive, but notice is required if the prosecution depends fully on the regularity of the identification of the defendant which the defense claims to be incorrect. Also the jury must take into account all the conditions in which identification was made, such as distance, light, impediments, witnesses’ previous accusations and the time between original observation and formal identification. In our scenario, given the circumstances at the night of the crime, William can argue based on Turnbull that there is a high probability that the witnesses’ statement may be not accurate as they cannot be absolutely sure about what they saw.

Cause and Effect of the Water Wheel :: essays research papers

A water wheel changes the energy of falling water into mechanical energy that can be used for machines. The water is directed into the wheel through a tube. The wheel is placed on an axle, which is connected by gearing with the machine it is to operate. There are two types of water wheels, vertical and horizontal. The vertical wheels has an overshot and a undershot. The overshot water wheel has buckets around its edge. Water is delivered to the top of the wheel. The weight of the water falling into the buckets makes the wheel turn. An overshot water wheel has a very good chance of working with a 80 percent efficiency rate. That means, it may turn as much as 80 percent of the energy of the water into mechanical energy. Though, its use is limited to making small amounts of power. The undershot water wheel is built so the water hits the blades at the bottom of the wheel. The power of the wheel depends on the speed of the water hits the blades. The undershot wheel has such a low efficien cy that it is rarely used. Most modern water wheels are horizontal. A horizontal wheel rotates on a vertical shaft. It is driven by the force of the water hitting the blades on one side of the wheel. Horizontal wheels are very efficient if made correctly.   Ã‚  Ã‚  Ã‚  Ã‚  For my experiment I made an vertical undershot waterwheel. For the base of the waterwheel I cut off 8 centimeters of the bottom of a milk jug. Then out of the top of the jug I cut four triangles, four squares and four circles out for the fins of the waterwheel. After that I thumb tacked the 4 triangles to a cork. Put a hole at the end of each side of the cork and glued a skewer in each side for an axis. Then I cut a hole at each side of the base and put the skewers with the cork suspended in the middle. Then I put a 2 inch x 2 inch piece of clay shaped as circles on each side of the skewer. That’s how I got my waterwheel.   Ã‚  Ã‚  Ã‚  Ã‚  In my experiment I didn’t use electricity instead I measured the rate at which a water wheel lifts a weight. Doing this determined the speed at which the water wheel spins. For a weight I used a penny that was taped to a string which was wrapped around the clay. Cause and Effect of the Water Wheel :: essays research papers A water wheel changes the energy of falling water into mechanical energy that can be used for machines. The water is directed into the wheel through a tube. The wheel is placed on an axle, which is connected by gearing with the machine it is to operate. There are two types of water wheels, vertical and horizontal. The vertical wheels has an overshot and a undershot. The overshot water wheel has buckets around its edge. Water is delivered to the top of the wheel. The weight of the water falling into the buckets makes the wheel turn. An overshot water wheel has a very good chance of working with a 80 percent efficiency rate. That means, it may turn as much as 80 percent of the energy of the water into mechanical energy. Though, its use is limited to making small amounts of power. The undershot water wheel is built so the water hits the blades at the bottom of the wheel. The power of the wheel depends on the speed of the water hits the blades. The undershot wheel has such a low efficien cy that it is rarely used. Most modern water wheels are horizontal. A horizontal wheel rotates on a vertical shaft. It is driven by the force of the water hitting the blades on one side of the wheel. Horizontal wheels are very efficient if made correctly.   Ã‚  Ã‚  Ã‚  Ã‚  For my experiment I made an vertical undershot waterwheel. For the base of the waterwheel I cut off 8 centimeters of the bottom of a milk jug. Then out of the top of the jug I cut four triangles, four squares and four circles out for the fins of the waterwheel. After that I thumb tacked the 4 triangles to a cork. Put a hole at the end of each side of the cork and glued a skewer in each side for an axis. Then I cut a hole at each side of the base and put the skewers with the cork suspended in the middle. Then I put a 2 inch x 2 inch piece of clay shaped as circles on each side of the skewer. That’s how I got my waterwheel.   Ã‚  Ã‚  Ã‚  Ã‚  In my experiment I didn’t use electricity instead I measured the rate at which a water wheel lifts a weight. Doing this determined the speed at which the water wheel spins. For a weight I used a penny that was taped to a string which was wrapped around the clay.

Commercial Banking

Assignment 1 Executive Summary The purpose of this report is to evaluate the performance of both Hong Leong Bank and its peer bank RHB Bank for the financial year ended in 2010. The DuPont model is used to provide the information on the bank’s liquidity, profitability, efficiency and leverage status that allows financial analyst to evaluate on the performance of the bank as a result of the changes of these factors. A trend comparison for year 2010, 2009 and 2008 is conducted and evaluated its respective ratios and other financial data.The peer comparison of financial ratios between RHB Bank & Hong Leong Bank is evaluated and analysed to see which bank performs better in 2010. The other key ratios are also calculated in for deep analysis on to see how well these two banks in Malaysia perform in 2010. In addition, its credit risk that includes the risk management and its policy of both banks is then evaluated and compared to see which bank manages its credit risk properly.Fi nally, this report provides an overview of the performance of both RHB Bank and Hong Leong Bank for the financial year ended in 2010 and conclude which bank perform better in terms of various financial ration and management of credit risk. II II Assignment 1 Part A: Bank Performance Question 1: Dupont Model: a. Dopont Model: The DuPont model analysis is a common form of financial statement analysis and this model provides information on the bank’s liquidity, profitability, efficiency and leverage status that allows financial analyst to evaluate on the performance of the firm as a result of changes in one or more of these actors (Milbourn & Haight, 2005). According to Narayanan (2010), the DuPont model provides a starting point to determine the strength and weakness of the firm. It is also a very powerful financial tool to assist financial analyst, shareholders, investors and bankers in understanding the profitability of the firm and a tool that evaluate the firm’s financial statements by comparing the relationships within the income statement and balance sheet, or between the two statements. (Milbourn & Haight, 2005). The DuPont Model starts with the return of equity (ROE).The ROE is a strong measure on how well the management of the bank creates value to the shareholders (Pinsent, 2010). It is also a good starting point in the analysis of a bank’s financial condition. ROE is calculated by dividing the net income by total equity (Gup, Avram, Beal, Lambert & Kolari, 2007). The formula is as follows. ROE= Net incomeEquity According to Gup et at, (2007), the ROE ratio is equal to the Return of Assets (ROA) ratio times the Leverage multiplier that shows the dollar amount of assets that are financed by each dollar of the equity. The leverage multiplier is one indicator of financial leverage.ROE=ROA x Leverage Multiplier Net IncomeEquity = Net IncomeTotal Assets x Total AssetsEquity Leverage multiplier shows the extent to which the b ank relies on debt financing. The higher the leverage multiplier, the more debt the bank is carrying. Leverage Multiplier= Total AssetsEquity The Return of Assets (ROA) measures the bank profits as a percent of its assets and also measures the ability of the firm to use the real financial resources of the bank to generate revenue. It is commonly used to evaluate bank management (Gup et al, 2007). ROA is calculated by dividing net income y total assets. ROA= Net IncomeTotal Assets In the DuPont model analysis, the ROA is expended into another equation: Net IncomeTotal Assets = RevenueTotal Assets x Net IncomeRevenue Thus the DuPont model translates the ROA equation into the following: ROA=Asset Utilisation x Net Profit Margin The net margin ratio shows how much profit the bank makes for every $ 1. 00 it generates from the revenue. Generally, the higher the ratio, the better the net margin. In order to obtain more revenue, most banks will want to reduce the net income to achieve a hig her net margin ratio.Net Margin= Net IncomeRevenue The asset utilisation shows the amount of income the bank generated for every dollar worth of the assets available. This shows the bank’s efficiency in utilising the assets. Basically, the higher the asset turnover, the better the firm use the assets. Asset Turnover= RevenueTotal Assets In order for the bank to increase the ROE, banks need to increase their credit risk; this can be done by providing more loans to customers and subsequently, the bank will earn more income. This will in turn increase the ROA and the same time increases the ROE.Limitations of the Dupont model analysis: * It is based on accounting numbers, which are basically not reliable. * it does not include the Cost of Capital. * Garbage in, garbage out. Assumptions of the DuPont method: * Accounting numbers are reliable. b. Dopont Model Analysis: i. & ii. Trend Comparison of Hong Leong and RHB (2008, 2009 & 2010): Hong Leong Bank’s data: | 201 0| 2009| 2008| | RM’000| RM’000| RM’000| Revenue| | | | Interest income| 2,592,586| 2,937,002| 3,064,785| Non-interest income| 506,979| 511,537| 501,067| Total| 3,099,565| 3,448,539| 3,565,852| | | | | Operating costs| | | |Interest expense| 1,209,792| 1,579,883| 1,688,293| Non-interest expense| 831,139| 806,030| 786,194| Total| 2,040,931| 2,385,913| 2,474,487| | | | | Net profit| 767,817| 659,678| 838,874| Total assets| 77,730,208| 70,732,513| 69,992,756| Equity| 5,815,063| 5,319,288| 4,923,133| RHB Bank’s Data | 2010| | RM’000| Revenue| | Interest income| 4,530,637| Non-interest income| 722,818| Total| 5,253,455| Operating Cost| | Interest Expense| 1,811,153| Non-interest Expense| 1,302,007| Total| 3,113,160| | | Net profit| 1,294,437| Total assets| 105,179,231| Equity| 8,397,474| Dupont Model of Hong Leong Bank 2010| 2009| 2008| Return On Equity: Net incomeEquity| RM767,817,000RM5,815,063,000= 13. 20%| RM659,678,000RM5,319,288,000= 12. 40%| RM83 8,874,000RM4,923,133,000= 17. 04%| Leverage Multiplier:Total AssetsEquity| RM77,730,208,000RM5,815,063,000=13. 37times| RM70,732,513,000RM5,319,288,000= 13. 30times| RM69,992,756,000RM4,923,133,000= 14. 22times| Return On Assets:Net IncomeTotal Assets| RM767,817,000RM77,730,208,000= 0. 99%| RM659,678,000RM70,732,513,000= 0. 93%| RM838,874,000RM69,992,756,000= 1. 20%| Asset Utilization:RevenueTotal Assets| RM3,099,565,000RM77,730,208,000= 3. 9%| RM3,448,539,000RM70,732,513,000= 4. 88%| RM3,565,852,000RM69,992,756,000= 5. 10%| Net margin:Net incomerevenue| RM767,817,000RM3,099,565,000= 24. 77%| RM659,678,000RM3,448,539,000= 19. 13%| RM838,874,000RM3,565,852,000= 23. 53%| Dupont Model of RHB Bank | 2010| Return On Equity: Net incomeEquity| RM1,294,437,000RM8,397,474,000=15. 41%|Leverage Multiplier:Total AssetsEquity| RM105,179,231,000RM8,397,474,000=12. 53times| Return On Assets:Net IncomeTotal Assets| RM1,294,437,000RM105,179,231,000=1. 23%| Asset Utilization:RevenueTotal Assets| RM5, 253,455,000RM105,179,231,000=4. 9%| Net margin:Net incomerevenue| RM1,294,437,000RM5,253,455,000=24. 64%| c. Analysis and Discussion: Trend comparison of Hong Leong Bank Ratio| 2010| 2009| 2008| Net margin| 24. 77%| 19. 13%| 23. 53%| Asset utilisation| 3. 99%| 4. 88%| 5. 10%| Return on assets| 0. 99%| 0. 93%| 1. 20%| Leverage multiplier| 13. 37times| 13. 30times| 14. 22times| Return on equity| 13. 20%| 12. 40%| 17. 04%| Hong Leong Bank’s net margin is higher in year 2010 (24. 77%) compared to the year 2009 (19. 13%) and year 2008 (23. 53%). It means that operating costs are relatively lower in year 2010 compared to year 2009 and year 2008.Operating costs in the year 2010, 2009 and 2008 are RM2,040,931,000, RM3,448,539,000 and RM2,474,487,000 respectively. This indicates that operating costs are well controlled by Hong Leong Bank in 2010 compared to 2009 and 2008. Thus this shows that the bank run their operations effectively in 2010 that increased its profitability. Hong Leon g Bank’s asset utilisation is lower in year 2010 (3. 99%) compared to the year 2009 (4. 88%) and 2008 (5. 10%). It decreased constantly from year 2008 to 2010. The decline in the figures shows that beginning in the year of 2009, the bank did not utilise much of its assets to generate more revenue.Therefore revenue was decreasing from 2008 to 2009. Revenue for the year 2010, 2009 and 2008 are RM3,099,565,000,RM3,448,539,000 and RM3,565,852,000. This shows that the bank well utilised the assets to generate revenue in 2008 compared to 2010. Hong Leong Bank’s return on assets is lower in year 2010 (0. 99%) compared to the year 2009 (0. 93%) and 2008 (1. 20%). This shows that Hong Leong Bank did not do well in managing and utilising its asset base in 2010. Hong Leong Bank’s leverage multiplier decreased from the year 2008 (14. 22times) to year 2009 (13. 30times) and increased back in year 2010(13. 7times).This implies that Hong Leong Bank does not depend too much on debt financing in their activities and carried less debt in their operations in 2009 compared to year 2010 and 2008. Thus, Hong Leong Bank was exposed to more risk in 2008 compared to year 2010. Hong Leong Bank’s return on equity decreased from year 2008 (17. 04%) compared to year 2009 (12. 40%) and increased back in year 2010 (13. 20%). This implies that it did not manage and utilise its equity base and therefore the investors did not get a better return from the Hong Leong Bank in 2010.Overall, Hong Leong Bank performance on profitability was better in 2008 compared to the year 2009 and 2010. Peer comparison Ratio| Hong Leong Bank| RHB Bank| Net margin| 24. 77%| 24. 64%| Asset utilisation| 3. 99%| 4. 99%| Return on assets| 0. 99%| 1. 23%| Leverage multiplier| 13. 37times| 12. 53times| Return on equity| 13. 20%| 15. 41%| Hong Leong Bank’s net margin (24. 77%) is higher than RHB Bank’s (24. 64%). It means that RHB Bank’s operating costs are relatively hig her. RHB Bank’s operating costs are RM3,113,160,000 whereas Hong Leong Bank’s operating costs are RM2,040,931,000.Thus, RHB Bank’s operating costs are higher by RM1,072,229,000. This indicates that operating costs are well controlled by Hong Leong Bank compared to RHB Bank. RHB Bank’s asset utilisation (4. 99%) is higher than Hong Leong Bank’s (3. 99%). This shows that RHB Bank used most effectively of its assets to generate more revenue than Hong Leong Bank. RHB Bank’s revenue is RM5,253,455,000 which is higher than Hong Leong Bank’s revenue which is RM3,099,565,000. Hong Leong Bank’s return on assets is 0. 99% which is slightly lower than RHB Bank’s return on assets which is 1. 23%.This can be implied that Hong Leong Bank did not manage and utilise its assets base better than RHB Bank during operations to generate revenue. However, both banks generated low return on the basis of their assets. With total assets of RHB B ank is RM105,179,231,000, it generated revenue of RM5,253,455,000 whereas Hong Leong Bank’s total assets is RM77,730,208,000 and it generated revenue of RM3,099,565,000. Even though, RHB Bank has assets of 1. 35times more than Hong Leong Bank, its return on assets is still low.Thus Hong Leong Bank managed its assets better than RHB Bank. Hong Leong Bank’s leverage multiplier (13. 7times) is higher than RHB Bank’s (12. 53times). Hong Leong bank has leverage multiplier of 0. 84times more compared to RHB Bank. This implies that RHB Bank does not depend too much on debt financing in their activities and carries less debt in their operations. Thus, Hong Leong Bank is exposed to more risk than RHB Bank. Hong Leong Bank’s return on equity is 13. 20% which is lower than RHB Bank’s 15. 41%. RHB Bank has a higher ROE because possibly the bank does not rely too much on debt financing and offers a high return to shareholders of the bank. Thus, shareholders of RHB Bank will be happy and stay with RHB Bank.Shareholders of Hong Leong Bank may sell its shares and leave the bank. Generally, the overall financial performance of Hong Leong Bank is not very well in comparison with RHB Bank (peer bank). It is possible that Hong Leong Bank’s objectives and strategies are different from RHB Bank’s. Question 2: Hong Leong Bank’s data of 2010 Interest earning asset 1:| RM’000| Deposits and placements with banks and other financial institutions| 7,004,664| Securities held at fair value through profit or loss| 6,703,224| Available-for-sale securities| 3,859,367| Held-to-maturity securities| 7,042,610| Loans, advances and financing| 33,589,093|Other assets| 2,014,821| Total| 60,213,779| | | Earning assets 2:| | Interest Income Assets:| | Deposits and placements with banks and other financial institutions| 7,004,664| Securities held at fair value through profit or loss| 6,703,224| Available-for-sale securities| 3,859,367| Held -to-maturity securities| 7,042,610| Loans, advances and financing| 33,589,093| Other assets| 2,014,821| | | Non-Interest Income Assets:| | Investment in subsidiary companies (Note 31) earning dividend| 714,092| Investment in associated company (Note 31) earning dividend| 946,505| Total| 61,874,376| | |Interest sensitive assets 3:| | Cash and short-term funds| 13,421,408| Deposits and placements with banks and other financial institutions| 7,004,664| Available-for-sale securities| 681,619| Held-to-maturity securities| 1,705,674| Loans, advances and financing| 30,712,038| Total| 53,525,403| | | Interest bearing liabilities 4:| | Deposits from customers| 63,239,050| Deposits and placements of banks and other financial institutions| 3,791,129| Bills and acceptances payable| 285,366| Other liabilities| 3,890,295| Total| 71,205,840| | | Interest sensitive liabilities 5:| | Deposits from customers| 54,798,922|Deposits and placements of banks and other financial institutions| 3,784,376| Bil ls and acceptances payable| 25,453| Total| 58,608,751| | | | | Liquid assets 6:| | Cash and short-term funds| 13,928,247| Deposits and placements with banks and other financial institutions| 7,004,664| Loans, advances and financing (Note 8)| 9,057,329| Available for sales securities| 3859367| Total| 33,849,607| | | Deposits | 7,004,664| Shareholders’ fund = Total equity| 5,815,063| | | Net-write offs 7:| 202,219| NOTES: 1 Interest earning asset are assets that earns interest income. (Note 28 of pg113 of Hong. Leong Bank Annual Report 2010) Earning assets Income earning assets held by a bank typically include interest bearing balances, investment securities and loans. (Note 28 of pg113 & Note 31 of pg115 of Hong Leong Bank Annual Report 2010) 3 Interest sensitive assets are the dollar value of assets that either mature or can be repriced within within a selected time period such as one year. 4 Interest bearing liabilities are those liabilities that have to pay interest. 5 Interest sensitive liabilities are the dollar value of liabilities that either mature or can be reprised within a selected time period usually of one year.Liquid assets are unpledged, marketable short term securities that are classified as available for sale, plus federal funds sold and securities purchased under agreement to resell, a liquid asset can be easily and quickly converted into cash with minimum loss. 7 Net Write Offs is the amount written off under the assets of loans, advances and financing. (Note 8of pg95 of Hong Leong Bank Annual Report 2010) NOTES: 8 Interest Sensitive Assets RM’000 13,421,408 7,004,664 681,619 1,741,674 30,712,038 Interest Sensitive Liabilities RM’000 54,798,922 3,784,376 25,453 Interest Sensitive Assets RM’000 3,421,408 7,004,664 681,619 1,741,674 30,712,038 Interest Sensitive Liabilities RM’000 54,798,922 3,784,376 25,453 RHB Bank’s data of 2010 Interest Earning asset 1:| RM’000| Loans, advances and financ ing| 71,125,558| Money at call and deposit placements with banks and other financial institutions| 1,539,648| Securities purchased under resale agreement| 276,407| Financial assets held-for-trading| 129,583| Financial investments available-for-sale| 8,143,221| Financial investments held-to-maturity| 8,143,221| Total| 89,357,638| | | Earning assets 2:| | Loans, advances and financing| 71,125,558|Money at call and deposit placements with banks and other financial institutions| 1,539,648| Securities purchased under resale agreement| 276,407| Financial assets held-for-trading| 129,583| Financial investments available-for-sale| 8,143,221| Financial investments held-to-maturity| 8,143,221| Total| 89,357,638| | | Interest sensitive assets 1:| | Cash and short-term funds| 10,270,874| Securities under resale agreement| 276,398| Deposits and placements with banks and other financial institutions| 777,779| Financial investment available-for-sale | 1107052| Held-to-maturity securities| 3833825| Loans, advances and financing| 52741914| Total| 69,007,842| | | Interest bearing liabilities 4:| | Deposits and placements of banks and other financial institutions| 6,158,453| Deposits from customers| 80,567,577| Subordinated obligations| 3,018,157| Recourse obligation on loans sold to Cagamas Berhad| 818,503| Hybrid Tier I Capital Securities| 605,407| Long term borrowings| 819,362| Others liabilities| 868,165| Total | 92,855,624| Interest sensitive liabilities 2:| | Deposits from customers| 63,270,532| Deposits and placements of banks and other financial institutions| 5558376| Bills and acceptances payable| 2934533|Recourse obligation on loans sold to Cagamas Berhad| 147030| Long term borrowings| 817127| Total| 72,727,598| | | | | Liquid assets 3:| | Cash and short-term funds| 11093561| Securities purchased under resale agreements| 276,407| Deposits and placements with banks and other financial institutions| 782,462| Financial assets held-for-trading| 119,374| Financial investment available-for-sale| 1176035| Financial investment held-to-maturity| 3854749| Loans, advances and financing| 14124170| Other assets| 88835| Derivative assets| 190637| Total| 31,706,230| | | Deposits | 1,539,648|Shareholders’ fund = Total equity| 8,397,474| | | Net-write offs 7:| 1,033,573| NOTES: 1, 2, 3 – Please refer to appendix. | Hong Leong BankRM’000| RHB BankRM’000| Interest earning assets| 60,213,779| 89,357,638| Interest bearing liabilities| 71,205,840| 92,855,624| Earning Assets| 61,874,376| 89,357,638| Interest sensitive assets (RSA)| 53,525,403| 69,007,842| Interest sensitive liabilities (RSL)| 58,608,751| 72,727,598| Liquid assets | 33,849,607| 29,990,240| Shareholders’ fund| 5,815,063| 5,815,063| Net-write offs| 202,219| 1,033,573| Operating Income| 3,099,565| 5,253,455|Operating Expense| 2,040,931| 3113160| Other key indicators for the year ended 2010: Bank efficiency| Hong Leong Bank| RHB Bank| Efficiency ratio:Operating expenses Ope rating income| RM2,040,931,000RM3,099,565,000= 65. 85%| RM3,113,160,000RM5,253,455,000= 59. 26%| Cost to assets ratios:Operating expenses Total assets| RM2,040,931,000RM77,730,208,000= 2. 63%| RM3,113,160,000RM105,179,231,000= 2. 96%| Efficiency ratio measures the changes of costs in relation to income. Hong Leong Bank has an efficiency ratio of 65. 85% while RHB Bank is one with the lower which is 59. 26%.This implies that Hong Leong Bank’s rate in increasing the operating income is at lower rate compared to RHB Bank. In terms of rate of increase in operating income, Hong Leong has the lower efficiency compared to RHB. Cost to assets ratio is used to measure the costs incurred in relation to the assets size. RHB Bank has a higher cost to assets ratio that is 2. 96% compared to Hong Leong Bank that has a figure of 2. 63%. Therefore in term of cost of control relative to the total assets owned, Hong Leong is more efficient than RHB Bank. Interest differentials| Hong Leong Bank | RHB Bank|Net interest income:Interest earned -Interest expense| RM2,592,586,000 -RM1,209,792,000= RM1,382,794,000| RM4,530,637,000-RM1,811,153,000= RM2,719,484,000| % of interest margin:interest earned – interest expenses Earning assets| RM2,592,586,000-RM1,209,792,000RM61,874,376,000= 2. 23%| RM4,530,637,000-RM1,811,153,000RM89,357,638,000= 3. 04%| %interest spread(interest earned/interest earning assets) – (interest expense/ interest bearing liabilities)| (RM2,592,586,000/RM60,213,779,000)-(RM1,209,792,000/RM71,205,840,000)= 2. 1%| (RM4,530,637,000/RM89,357,638,000)-(RM1,811,153,000/RM92,855,624,000)= 3. 12%| Net interest income refers the difference between revenue that is generated from the bank’s assets and expenses associated with paying out its liabilities. In the table above, RHB Bank’s net income is RM2,719,484,000 which is higher than Hong Leong Bank which have a figure of RM1,382,794,000. This means that RHB Bank has higher excess revenue and interest income after deducting interest paid on deposit from interest earned on assets.Percentage interest margin shows the dollar difference between interests earned and interest expense, as a percentage of earnings assets. Hong Leong Bank’s% interest margin is 2. 23% which is lower than RHB Bank which is 3. 04%. This implies that RHB Bank made a better investment than Hong Leong Bank due to higher percentage interest margin. Percentage interest spread refers to the difference in borrowing and lending rates of financial institutions (such as banks) in nominal terms. RHB Bank’s % interest spread is 3. 12% which is higher than Hong Leong Bank’s 2. 23%. Risk management| Hong Leong Bank| RHB Bank|Interest rate riskinterest sensitive assets interest sensitive liabilities| RM53,525,403,000RM58,608,751,000= 0. 91| RM69,007,842,000RM72,727,598,000= 0. 95| Credit risk net write-offs total assets| RM202,219,000RM77,730,208,000= 0. 26%| RM1,033,573,000RM105,179,231,000= 0. 98%| Liquidity risk :liquid assets/total asset liquid assets/deposits| RM33,849,607,000/RM77,730,208000= 0. 44RM33,849,607,000/RM7,004,664,000= 4. 83| RM29,990,240,000/RM105,179,231,000= 0. 29RM29,990,240,000/RM1,539,648,000= 19. 48| Capital risk :shareholders’ funds total assets| RM5,815,063,000RM77,730,208,000= 7. 48%| RM8,397,474,000RM105,179,231,000= 7. 8%| Interest Sensitivity ratio measures the interest rate risk and it measures the level of repricing irregularities between the bank’s assets and liabilities. RHB bank has an interest sensitivity ratio of 0. 95 while Hong Leong has 0. 91 which is slightly lower than RHB Bank. This implies that RHB Bank can replace assets with higher yielding assets quicker than replacing the low cost deposits with more funds compared to RHB. Credit risk refers to risk of loss of principal due to the borrower’s failure to repay the loans or otherwise meet the contractual obligation. RHB bank has a higher credit risk which stands at 0. 8 % compared to Hong Leong that has a lower figure of 0. 26%. This shows that Hong Leong is better in managing its credit risk compared to RHB. Liquidity ratio is used to measure the ability of the bank to repay off its short term obligations. RHB Bank has lower liquidity ratios of 0. 29 while Hong Leong has a higher ratio of 0. 44. This shows that Hong Leong has higher liquid assets to meet short term obligation and able to repay all short term debt in time compared to RHB Bank. The capital risk ratio is used to calculate the capital risk and it measures the financial stability of the bank.RHB Bank has a higher simple capital ratio that has a figure 7. 98% compared to Hong Leong bank that has a value of 7. 48%. This implies that RHB is well protected against any operating losses incurred than Hong Leong. Overall, in terms of risk management RHB Bank is performing well compared to Hong Leong Bank for the year ended 2010. Question 3: Comparison of forms of loans between RHB and Hong Leong Bank OverdraftsTerm loans/financing-Housing and shop loans/financing- Syndicated term loans/financing- Hire purchase receivables- Lease receivables- Other term oans/financingCredit/charge card receivablesBills receivableTrust receiptsClaims on customers under acceptance creditsBlock discountingRevolving creditStaff loans/financingFloor stockingOther loans/financingUnearned interest and incomeGross loans, advances and financingFair value changes arising from fair value hedgesUnamortised fair value changes arising from terminated fairvalue hedgesAllowance for impaired loans and financing-individual impairment allowance-collective impairment allowance-general allowance-specific allowanceAllowance for bad and doubtful debts and financing:- specific- generalTotal net loans, advances and financing| RHB Bank (RM’000)5,976,56915,908,732835,5889,322,667-29,854,4431,644,4651,418,203325,1774,130,205-3,491,071336,5281,56973,245,217-(682,522)(1,437,137)—-71123,9 89| Hong Leong Bank (RM’000)2,086,55016,933,8161,458,6333,284,687-1,653,6902,017,519211,01992,9823,184,6968,2181,219,78096,668-44,390(613,549)31,679,09928,3858,714—(306,807)(471,305)30,938,086|Credit risk is the risk of financial loss due to a borrower or counterparty being unable or unwilling to deliver on its payment obligations to the Bank, which leads to a loss of revenue and the principal amount. It arises principally from lending, trade finance and treasury activities (Hong Leong Bank Annual Report 2010 pg. 150). Based on the above table shows the comparison of the total amount of loans for Hong Leong Bank and RHB Bank for the financial year ended 2010. RHB Bank has the highest number of loans that stands at RM71,125,558,000 while Hong Leong Bank has a total of RM 33,589,093,000. However, based on the credit risk ratio RHB Bank has a higher credit risk which stands at 0. 98 % compared to Hong Leong that has a lower figure of 0. 26%.This shows that Hong Leong is b etter in managing its credit risk compared to RHB Bank RHB Bank has 2. 1times more loans than Hong Leong Bank, but it’s credit risk is 3. 76times more than Hong Leong Bank. It implies that Hong Leong is better in managing its credit risk and loan portfolio because most borrowers able to pay back the loan to the bank. Therefore, Hong Leong provided the best of the credit risk quality. In order for the bank to increase and strengthen the risk management practices, RHB Bank ensures to maintain the credit quality of its loan portfolios, improve cost effectiveness, and ensure the liquidity and capital stay strong throughout the financial year in 2010.Therefore, RHB Bank manages risk through clearly defined guidelines that are approved by the Board of Directors, through a framework of established control and reporting process. Hong Leong Bank also gives a strong priority for managing effectively in credit management. It is also managed by high-experience personal with high level re view undertaken by the Management Credit Committee under the supervision of the Board Credit Supervisory Committee. The bank integrated risk management structure is similar to RHB Bank whereby credit risk framework that is compliant with Bank Negara Malaysia’s guidelines on ‘‘Best Practices for the Management of Credit Risk†.The Group Risk Management Committee (GRMC) had been established by RHB Bank for risk oversight within the bank. Among the committees of this group are namely the Group Credit Risk Management Committee (GCRMC), Group Operational Risk Management Committee (GORMC) and Group Assets and Liabilities Management Committee (GALCO) assist the GRMC in managing credit risk, operational risk as well as market and liquidity risk. The committee ensures the development and implementation of risk policies as well as the effectiveness of policies. Among the exposure of credit risk in RHB Bank may be categorized as primary exposure. Loans, advances and fin ancing are the credit risk that arises in the primary exposure.Most of the lending activities in the bank are guided by the Group’s Credit Policies and Guidelines, in line with Best Practices in the Management of Credit Risk, issued by Bank Negara Malaysia. The credit risk policy includes an overview of the lending organisation, and the responsibilities of the parties in the organisation whereby the Board have a loan committee that oversees major new loan and renewals and the performance of the loan portfolio (Gup et al, 2007). Example, Hong Leong will be redeveloping a new credit risk system for corporate and commercial borrowers while for the retail segment, the bank has implemented a credit application and behavioural scoring system in order to improve the Bank’s ability to control credit losses within predictive ranges and achieve a well balanced portfolio.This is accordance to the Basel II that RHB Bank is also practising whereby every bank requires to hold adequa te capital in order to fulfil the minimum capital adequacy of the bank. This is also supported by Hassan & Muhammad, (2007) whereby bank loans are the most largest and obvious credit risk. Therefore the Basel II is required so that most banks will know how much capital they must hold. The Bank’s credit risk management process is documented and processed In the Credit Manual. One of the functions of the Credit Manual that is introduced by Hong Leong Bank is to set out the lending policies, lending authorities, credit risk rating, credit reviews, collateral, credit administration and security documentation, and timely rehabilitation and restructuring of problematic and delinquent accounts.Apart from that, this is to ensure that structures are there to maintain to enhance the Bank’s risk assessment capabilities in key areas of credit that includes sound credit policies and procedures, quality credit approvals, appropriate risk measurement. ARHB Bank does not have this Credit Manual but they form a second line defence that formulate the risk management policies. The function of an internal audit is to provide independent reviews of the quality of the loans (Gup et al, 2007). Based on the Hong Leong Bank Annual Report (2010), it states that Internal Audit conducts independent post to reviews on the financial statements and the capital of the bank.This is to ensure that the qualities of credit risk and approval standards are in accordance with the credit standards and the lending policies and directives established and approved by the Bank’s management and Board of Directors. Question 4: Conclusion In conclusion, the performance of Hong Leong Bank for the financial year ended in 2010 is not as good as its peer bank RHB Bank. This is due to that the ROE is lower compared to RHB Bank. This can be improved by not relying too much on debt financing for its operations and to provide more return to investors. Also, Hong Leong Bank did not create m uch value to the shareholders due to low ROE. However, only the net margin part is the main strength of Hong Leong compared to RHB Bank This indicates that operating costs are well controlled by Hong Leong Bank compared to RHB Bank.This is a good indicator as this prevents wastage and smartly uses the assets to generate more income. The liquidity ratio for both the banks are below 1 which is not safe for both banks because they cannot meet the requirements to pay off the obligations and current assets are less than current liabilities they having. Based on the ratio analysis for year 2009 to 2010, the ROE, ROA and net margin ratio shows a good improvement due to economic boom and inflation happens during the period. However, in 2009, most of the ratio for Hong Leong Bank declines because may be due to economic recession and the decline in the economic activity of the bank.For the credit risk, RHB Bank did not manage its credit risk well compared to Hong Leong based on the credit ana lysis. RHB could improve their credit risk by having an internal audit to check on the loan defaulters and the accounts. Personal experience of visiting banks We visited Hong Leong Bank and RHB Bank in Ampang branch and Cheras branch. We asked the branch manager of RHB Bank for more details of their items on balance sheet and income statement. She did not know what items are called interest earning assets in Balance sheet. She does not know Income Statement and Balance Sheet. I was surprised, she is a manager and she does not know.She was kind enough to call the headquarter of RHB Bank and made me speak to the person in charge of financial statements. Well, I was told that each bank has different items calling interest earning assets and liquid assets. He cannot release those details. The RHB Bank and Hong Leong Bank in Ampang Branch have 400 to 500 customers daily and they are overcrowded during lunch hours. However, the RHB Bank has 100-150 customers daily and Hong Leong Bank has 50-100 customers daily in Cheras branch. Most customers come during the lunch hours. Ampang branch has more customers compared to RHB Bank. Thus it depends on location, the number of customers visit banks. Below are the cards of Hong Leong bank and RHB Bank:Ampang Branch Cheras Branch Part B: Virtual Bank Balance Sheet |   |   | |   |   |   | | Liabilities| |   | | Asset| | 1. Deposit| | |   | 1. Gold and foreign exchange| i. Current deposit | |   | 2. Cash and Liquid Assets| | ii. Fixed deposit| |   | 3. Securities| | iii. Certificates of deposit|   | i. Trading securities | | iv. Other deposits such as call deposits, cash| ii. Investment securities | | management accounts and savings account| iii. Short term discount security| 2. Non-deposit liabilities| |   | iv. Long term bonds or notes| Liabilities due to clearing houses and financial| 4.Loans and advances| | institutions and rank in priority after deposit| i. Overdraft | | i. Repurchase agreements|   | ii. Credit card outstanding| ii. Promissory notes| |   | iii. Housing finance | | iii. Liabilities on bill acceptances|   | iv. Other term loans| | iv. Corporate bonds and other long-term borrowings| v. Lease and hire purchase finance | 3. Due to other banks| |   | 5. Due from other banks| | 4. Trading derivatives| |   | 6. Trading derivatives| | 5. Other financial liabilities at fair value| 7. Other financial assets at fair value| 6. Other borrowings| |   | 8. All other asset| | 7. Bonds, notes, and subordinated debt| 9.Due from customer on acceptance | 8. Other debt issues| |   | | | | 9. All other liabilities| |   | | | | 10. Goodwill and other intangible asset| | | | | | |   | | | | | | |   | | | | | Capital| |   | | | | Capital acts as a buffer against unexpected losses and| | | | protects against insolvency. |   | | | | i. Debt capital : borrowed funds|   | | | | ii. Equity capital : shareholders' fund| | | | NOTES : Asset 1. Changes in this item reflec t transactions of the following kinds: a. the Bank's transactions in foreign exchange and foreign securities (including under repurchase agreements); b. earnings on foreign currency investments; and c. hanges in the valuation of foreign currency and gold, and changes in the market prices of the Bank's holdings of foreign currency securities. 2. Liquid assets are assets that can be converted into cash quickly without loss of value 3. i. Trading securities : banks plans to sell before maturity ii. Investment securities : banks plan to hold till maturity iii. Short term discount securities : pay face value at maturity iv. Long term bonds or notes which pay coupons during the life of the security and the face value of maturity. 4. Includes loans, deposits with central banks and other regulatory authorities and settlement account balances due from other banks.Amounts due from other banks are initially recognised at fair value and subsequently measured at amortised cost. Advances: non-der ivative financial assets with fixed payments that are not quoted in an active market i. Overdraft : – borrower can draw up to the limit * Interest payable on amount drawn * Commitment fee is payable on the undrawn amount| ii. Credit card outstanding: – borrower can purchase on credit| or take cash in advance -form of revolving credit -Interest payable on amount drawn -annual fee may be charged | | | | iii.Housing finance : – Mortgage where the collateral is real estate – loan application fees are charged – variable rates(up to 30 years) – fixed rates(3-5 years)| iv. Other term loans : – example such as fully drawn advance – maturity of 5-8 years – a single loan of a specific dollar amount – fixed interest rate – application fees, establishment fees – repayment maybe fully amortised or structured to match the profits Generated by project being finance. | v.Lease and hire purchase finance : – se cured loans where the collateral is an asset – term of loan related to the life of the collateral – fixed interest rate – application fees, establishment fees| | | 5. Trading derivatives have not been shown by contractual maturity because they are typically held for various periods of time. 6. Also called as market related contingencies such as futures, swaps, options, forward rate agreements 7. example: land, buildings 8.Due from customer on acceptance : customer who wants to borrow from the bank may be offered a â€Å"bill facility† and the customer must agree to repay the bank. The bank is the acceptor(promise to pay the holder the face value Liabilities: Deposit: 1. Current deposit : – No maturity and no minimum balance – Withdrawals by writing a cheque or through electronic transactions – May be interest bearings(variable interest rate) or non-interest bearing 2. Fixed deposit : – Minimum amount – Specific term eg. 1-5 years – Early withdrawals incur a penalty – Fixed interest rate 3. Certificates of deposit : – Face value at least $100,000 – Maturities between 14-270 days – Fixed interest rate – Originally issued at par but may trade above or below depending on Market yields. At maturity, receives face value plus interest 4. The deposits : a) Call deposit – must give notice of withdrawal, variable interest rate b) cash management accounts – minimum balance requirement, variable interest rate linked to money market yields c) savings account – no minimum balance or notice of withdrawal requirements – variable interest rate Non-Deposit: i. Repurchase agreements : – banks borrow for a short period (5 years) – sell securities with an agreement to repurchase on agreed date at agreed price ii. Promissory notes : – discount securities – bank sells to the market iii. Liabilities on bill acceptance : -bank is the acceptor and pays face value at maturity iv.Corporate bonds and other long term borrowings : example domestic bonds, eurobonds Due to Other Banks: Includes deposits, vostro balances, repurchase agreement and settlement account balances due to other banks. Trading derivatives: Financial liabilities at fair value are financial liabilities held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term. | Other financial liabilities at fair value Borrowings are initially recognised at fair value, net of transaction costs incurred. It is subsequently carried at amortised cost, any difference between initial recognised amount and the redemption value is recognised in the profit or loss.For example: borrowing from reverse bank, other banks, or borrowing from outside of the country. Other financial liabilities at fair value: Short term and long-term debt issues of the group including commercial paper, notes, term loans, medi um-term notes, mortgage backed securities and other discrete debt issues. All other liabilities: I) Bills Payable (drafts, telegraphic transfers, mail transfers payable, pay slip, bankers cheques, other miscellaneous items, etc) II) Inter-Office (The inter-office adjustments balance, if in credit, should be shown under this head. Only net position of interoffice accounts, inland as well as foreign should be shown here)III) Interest Accrued (Includes interest due and payable and interest accrued, but not due on deposits and borrowings Includes net provision for income tax and other taxes like interest tax (less advance payment, tax deducted at source, etc. ) IV) Deferred Tax (surplus provisions in bad debts provision account, surplus provisions or depreciation in securities, Contingency funds which are not disclosed as reserves but are actually in the nature of reserves, proposed dividend/transfer to Government. ) V) Others (which are not disclosed under any of the major heads such a s unclaimed dividend, provisions and funds kept for specific purposes, unexpired discount, outstanding charges like rent, conveyance, etc. certain types of deposits like staff security deposits, margin deposits, etc) Goodwill and other intangible asset:Goodwill arises on the acquisition of an entity and represents the excess of the aggregate of the fair value of the purchase consideration and the amount of any non-controlling interest in the entity over the fair value of the Group’s share of the identifiable net assets at the date of the acquisition. Capital Debt capital : borrowed funds, ranks higher than equity capital for the repayment of annual returns. Equity capital : -shareholders’ fund which represents the remaining interest in assets of a company. -permanent commitment of funds -earns the residual income of the firm after all interest and other costs -main components includes issue share, reserve and retained earnings References Hong Leong Bank. (2011). Annual Report: 2010. Retrieved September 14, 2011 from http://www. hlb. com. my/data/ar2010. pdf RHB Bank. 2011). Annual Report: 2010. Retrieved September 12, 2011 from http://www. rhb. com. my/corporate_profile/investor_relation/pdf/annual_reports/2010/RHB%20Bank%20Berhad%202010. pdf Gup, B. E. , Avram, K. , Beal, D. , Lambert, R. , ;amp; Kolari, J. W. (2007). Commercial Banking. Milton, Qld: John Willey ;amp; Sons Hassan, H. , ;amp; Mohammed, F. (2007). Banks’ risk management: a comparison study of UAE national and foreign banks. The Journal of Risk ;amp; Finance, 8(4), 394-409. Hong Leong Bank Berhard. (2009). Annual Report: 2009. Retrieved September 14, 2011 from http://www. hlb. com. my/data/ar20091. pdf Milbourn, G. , ;amp; Haight, T. (2005).Providing Students with an Overview of Financial Statements Using the Dupont Analysis Approach. The Journal of American Academy of Business, Cambridge. 9(3), 46-50 Narayanan, L. (2010). How DuPont Analysis Reveals Return on Equity Ratio. Managing Credit, Receivables ;amp; Collections. 2(1), 12-14. Pinsent, W. (2010). Decoding DuPont Analysis. Retrieved September 2, 2011, from http://www. investopedia. com/articles/fundamental-analysis/08/dupont-analysis. asp Class Dupont. (2010). Current Financial Accounting. Retrieved September 10, 2011, from http://www. sjrbiz. info/Current%20Classes/Financial%20Accounting%20Class/Dupont%20Model%20in%20a%20Nutshell. pdf

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John Fitzgerald Kennedy was made equality a top priority on the nations agenda. JFK- wore wrinkled khaki’s to Congress PET- wore sandals to house of commons JFK-Cuban Missle Crisis PET- War Measures Act JFK-Civil Rights Movement-pushed equality on the top of nations agenda PET-Official Languages Act JFK- â€Å"Ask not what your country can do for you, ask what you can do for your country† inaugural speech PET- â€Å"The Government has no business in the bedrooms of the nation† JFK-new level of idealism and activism PET- Charter of Rights and Freedoms, JFK-Televised debate, he won- Radio-Nixon won- awesome speaker, good presence PET-Same thing, used the media, first PM to do so JFK-Young good looking PET-Young and good looking (in comparison to most pm’s) JFK- Admitted if he did something wrong-†All my life I’ve known better than to depend on the experts. How could I have been so stupid, to let them go ahead†- after Bay of Pigs PET- Never , admitted he was wrong ( implementation of the WMA) JFK- Pushed for the creation of Peace Corps PET-In the latter post, he gained national attention for his introduction of divorce law reform and for Criminal Code amendments liberalizing the laws on abortion, homosexuality, and public lotteries. He also established a reputation as a defender of a strong federal government against the nationalist demands of Quà ©bec. JFK- prevented nuclear war PET- and then in 1983-84 to a personal peace initiative in which he visited leaders in several countries in both the eastern and western blocs to persuade them to negotiate the reduction of nuclear weapons and to lower the level of Cold War tensions. These activities led to his being awarded the Albert Einstein Peace Prize. In 1968, Mr. Trudeau ushered an era into Canadian politics that the country was in dire need of. Like John F. Kennedy in the US, Trudeau brought about a mystique to serving one's country in p... Free Essays on Trudeau Free Essays on Trudeau John Fitzgerald Kennedy was made equality a top priority on the nations agenda. JFK- wore wrinkled khaki’s to Congress PET- wore sandals to house of commons JFK-Cuban Missle Crisis PET- War Measures Act JFK-Civil Rights Movement-pushed equality on the top of nations agenda PET-Official Languages Act JFK- â€Å"Ask not what your country can do for you, ask what you can do for your country† inaugural speech PET- â€Å"The Government has no business in the bedrooms of the nation† JFK-new level of idealism and activism PET- Charter of Rights and Freedoms, JFK-Televised debate, he won- Radio-Nixon won- awesome speaker, good presence PET-Same thing, used the media, first PM to do so JFK-Young good looking PET-Young and good looking (in comparison to most pm’s) JFK- Admitted if he did something wrong-†All my life I’ve known better than to depend on the experts. How could I have been so stupid, to let them go ahead†- after Bay of Pigs PET- Never , admitted he was wrong ( implementation of the WMA) JFK- Pushed for the creation of Peace Corps PET-In the latter post, he gained national attention for his introduction of divorce law reform and for Criminal Code amendments liberalizing the laws on abortion, homosexuality, and public lotteries. He also established a reputation as a defender of a strong federal government against the nationalist demands of Quà ©bec. JFK- prevented nuclear war PET- and then in 1983-84 to a personal peace initiative in which he visited leaders in several countries in both the eastern and western blocs to persuade them to negotiate the reduction of nuclear weapons and to lower the level of Cold War tensions. These activities led to his being awarded the Albert Einstein Peace Prize. In 1968, Mr. Trudeau ushered an era into Canadian politics that the country was in dire need of. Like John F. Kennedy in the US, Trudeau brought about a mystique to serving one's country in p...

Gary Condit essays

Gary Condit essays Mark Sherman Writer for the Philadelphia Inquirer Reports that Gary A. Condit, A democrat from California received a grand jury subpoena for undisclosed documents related to the disappearance of federal intern Chandra Levy. Abbe Lowell, Condits lawyer, issued a statement saying whatever the reason were for the issuance of the subpoena, the congressman would provide the documents. Levy, 24 disappeared shortly after ending an internship at the Bureau of Prisons in Washington. Condit acknowledged a close relationship with Levy but has denied being involved in her disappearance. Federal authorities said that they do not consider Condit a suspect, but they are examining whether Condit and his aides may have obstructed the search for Levy. Larry King, A CNN talk host said This is the first sign that this country is going back to normalcy, after the September 11 attacks everyone forgot about the Chandra Levy case now once again its starting to surface. A poll on CNN show that Seventy percent of the people asked felt that Condit has some connection to the disappearance of Levy. Condit has not said whether he will seek reelection. But a chairman for Art Torres, chairman of the California Democratic Party, was less than enthusiastic about the prospect of Condit running for re-election in 2002. He said he had "great concerns" about Condit and offered not one word of support for the embattled lawmaker. "As chairman, I don't think it's my place to tell an incumbent member of Congress what to do. He's smart enough. He knows what the figures are, he knows what the polls are looking like, he knows his district. He's got to come to his own conclusions," Torres said. Even thought this is not a major development in the finding of Chandra Levy, I feel that the subpoena is just the start for what Gary Condit is in for. ...

Globalisation, power and the global order Essay

Globalisation, power and the global order - Essay Example In return, this is creating a change in opportunities and challenges among different national orders, specifically because of the shift in power that is occurring in the 21st century. The definition of power is one that has been debated because of changes in political involvement and social alterations. However, the definition is known to directly relate to human social life and structure as well as natural components that are able to assist in the building of leadership and power systems. According to the standard theory, the concept of power is defined as an influence that a person, society or system has over others. The influence that is created is based on the number of resources that are a part of society as well as how these are valued or desired by others. More important, power creates a sense of group identity, social organization and dependencies that are a result of an individual who has this power. For one to hold power through organizations that create dependencies is also the need to influence and motivate others to create a belief that the resources are needed by others. In turn, this creates a sense of power over a component of society while making the resource a standard for others (Turner, 1, 2005). The concept of power in the contemporary period expands on the process of gaining power through resources and the structures which are associated with this. In the past, this concept of power was based on isolation, exclusiveness to other societies and boundaries which were associated with other identities. However, the global and domestic politics are now changing into new dynamics that are creating a power struggle and sense of dynamics between national and international spheres. The new source of power is one which is reliant on a meta – power, which provides an international space and an open realm that is based on economy, politics and resource sharing between

Sales Planning and Operations Essay Example | Topics and Well Written Essays - 3000 words - 1

Sales Planning and Operations - Essay Example 3-(b) Devise appropriate recruitment and selection procedures of a sales person into any organization. In your answer you should cover job description and personnel specifications, sources of recruitments, interview preparation, interview techniques, selection and appointment. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.11 3-(d)-Describe two techniques used to co-ordinate and control sales output. To answer the question adequately you should note how an organization uses different the techniques (examples- budget, performance target, appraisals by superior, self-development plans) in controlling sales output†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13 4-(a)-Identify and give three examples of the differences in the nature of sales tasks and skills in a variety of contexts. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦15 The types of personal selling emerge from the environment in which the selling task takes places. It can be over-the-counter selling, field selling or telemarketing selling. Elaboration on all different types is as follows: Over-the-Counter selling- this environment is managed by two kinds of salespeople- order takers and order getters. The former is entrusted with maintaining the relationship after the customer has made the purchase while the latter is a traditional salesperson collecting leads, contacting prospective buyers, making presentations and closing the deals. The follow up section again shifts to the order taker after the deal is closed. The skills required for the two vary with respect to the activities they perform. Order getters are required to be more informed, creative and presentable to turn a proposition favourable while order takers have to be more routinised and aware of the buying habits of existing customers (Ingram et al. 2008). Field selling- field selling task is undertaken by four kinds of