Capital Budgeting

Deep Dharyam Group of Companies: Capital Budgeting

Capital Budgeting

Capital Budgeting 
 • Capital Budgeting is a project selection exercise performed by the
     business enterprise.  

• Capital budgeting uses the concept of present value to select the projects.

 • Capital budgeting uses tools such as pay back period, net present
value, internal rate of return, profitability index to select projects.


Capital Budgeting Tools 

1. Payback Period 
2. Accounting Rate of Return 
3. Net Present Value 
4. Internal Rate of Return 
5. Profitability Index 

All about ESOP

An employee stock ownership plan (ESOP) is a way in which employees of a company can own a share of the company they work for. There are different ways in which employees can receive stocks and shares of their company. Employees can receive them as a bonus, buy them directly from the company, or receive them through an ESOP.

In the United States, ESOPs are a very common form of employee ownership. They have been growing in strength since about 1974. Around 11,000 companies have an ESOP in place, and nearly 8 million employees are involved in them.

Companies may establish an ESOP for a number of purposes. Most press attention regarding the use of ESOPs focuses on their use as a takeover defense or as buyouts of failing companies. These account for a very small percentage of ESOPs.

The main purpose of an ESOP is to reward and motivate employees. They are also used to provide a market for departing owners of successful companies. In most cases, an ESOP is given to an employee, rather than purchased by an employee.

An ESOP is similar to a profit-sharing plan. A company sets up a trust fund, into which it contributes either new shares of its own stocks or cash to buy existing shares. Another version of the ESOP borrows money in order to buy existing or new shares. In this case, the company makes cash contributions to the plan in order to repay the loan.

Company contributions to the plan are tax deductible. Shares in the trust are generally allocated to individual employee accounts. All employees over the age of 21 can participate in the plan, and senior members of the workforce acquire an increasing right to the shares in their account. This is known as vesting, and employees should be fully vested within five to seven years. Other employee’s shares are based on relative pay or some other equitable formula.

When employees leave the company, they receives their share options, and the company must be able to buy back these options. They must buy them back at their full market value. In private companies, employees are able to vote their shares on major issues such as relocation or closure. In public companies, employees can vote on all issues.

Andhra Bank Jobs

ANDHRA BANK

Andhra Bank invites Online applications from Indian Citizens for the following post : 

1. Probationary Officers (JMGS-I) : 450 posts 
   Age : 21 yrs to 30 yrs
   Pay Scale : Rs. 14500-25700
2. Clerks (in various states) : 1000 posts
   Age : 18 yrs to 28 yrs years
   Pay Scale : Rs. 7200-19300

Application Fee : The fees should be paid through a Payment Challan only Or by NEFT by other bank  

How to Apply : Candidates are required to apply through on-line only.

Date- Application registration are open from 25/01/2011 to 22/02/2011.

All other details available at

 http://andhrabank.in/english/Recruitment.aspx

Latest Banking Jobs

Allahabad Bank(A Government of India undertaking)
Head Office : 2, N. S. Road, Kolkata-700001

Allahabad Bank invites ONLINE applications from Indian Citizens for-

Single Window Operator 'A' :

1100 posts (UR-569, SC-199, ST-81, OBC-251) (PH-104)in Clerical Cadre 

http://www.allahabadbank.in/recruitment.asp