What is Appreciation

Appreciation: Appreciation means an increase in value of an asset. It is just like opposite of depreciation.

For example, If a machine purchased at BDT100 before 2 years ago and now it has a market price of BDT300 then there is an appreciation in value of that machine. The machine is appreciated by BDT100.

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What is margin of safety.

Margin of Safety:- Margin of safety is the excess amount of sale over the Break Even Sales. it is simply the difference between Actual sales and Break Even Sales.

Margin of Safety = Actual Sales - Break Even Sales

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What is Net Worth

Net Worth:- Net Worth means what is owned by the company. It is also called Net Wealth. By calculating Net Worth/Net Wealth we have an idea about a company's actual financial position. It is calculated by deducting external liabilities from total assets. It shows what portion of a company's assets is financed by owners fund. Simply it is the owners or stockholders Equity.

                       NET WORTH = TOTAL ASSETS - TOTAL LIABILITIES

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Credit Rating Companies Operating in Bangladesh

List of Credit rating firms in Bangladesh:-

At present Eight (8) Credit rating agencies are operating in Bangladesh. Which are-

      1) Credit Rating and Information Services Limited.(CRISL)

  Web Link:- http://www.crislbd.com

           2) Credit Rating Agency of Bangladesh Limited.(CRAB)

  
   Web Link:- http://crab.com.bd

           3) Emerging Credit Rating Limited. (ECRL)

 

         Web Link:- http://www.emergingrating.com

      4) National Credit Rating Limited. (NCRL)

         Web Link:- http://www.ncrbd.com 
     
      5) Alpha Credit Rating Limited.

  

        Web Link:- http://www.alpharating.com.bd 

      6)  WASO Credit Rating Company (BD) Limited.

        Web Link:- http://www.wasocreditrating.com 

      7) ARGUS Credit Rating Services Ltd.

         Web Link:- http://www.acrslbd.com

       8) The Bangladesh Rating agency Limited.

      

          Web Link:- http://www.bdral.com

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Capital Market in Bangladesh

Capital Market in Bangladesh:-

There are two stock exchanges in Bangladesh Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). Dhaka Stock Exchange (DSE) formerly known as East Pakistan Stock Exchange established in and Chittagong Stock Exchange (CSE) established in1995. There is only one depository system for the transaction and settlement of financial securities, which is known as Central Depository Bangladesh Ltd (CDBL) was formed in 2000. It is conducting its operations under the following laws Depositories Act 1999, Depositories Regulations 2000, Depository (User) Regulations 2003, and the CDBL by-laws. It Capital market is regulated by BSEC. There are companies enlisted in DSE and Companies enlisted in CSE. Every share enlisted in DSE and CSE has a face value of taka 10 and market lot consists of only one share. 

Bangladesh Securities and Exchange Commission (BSEC) Classified companies in four categories

1. A Category

2. B Category

3 .N Category

4. Z Category

1.      A Category Companies: - These companies regularly hold Annual General Meeting (AGM) and Declare dividends at the rate of 10% or more in an accounting year.

2.      B Category Companies: - These companies held Annual General Meeting (AGM) regularly but declare dividend at a rate which is less than 10%.

3.      N Category Companies: - Newly enlisted companies are categorized in this category. There settlement system would be like B Category.

4.     Z Category Companies: - Companies which are failed to hold Annual General Meeting (AGM) or fail to declare dividend or which are not in operation more than six months.

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Income Tax Authorities in Bangladesh

Income Tax Authorities in Bangladesh:  

Following are the income tax authorities in Bangladesh.

1. National Board of Revenue
2. Chief commissioner of taxes
3. Directors General of Inspection (Taxes),
4. Commissioner of Taxes (Appeals),
5. Commissioner of Taxes (LTU)
6. Director General (Training),
7. Director General Central Intelligence Cell (CIC),
8. Commissioners of Taxes,
9. Additional Commissioners of Taxes (Appeal/Inspecting) Joint Commissioners of Taxes(Appeal/Inspecting),
10. Deputy Commissioners of Taxes,
11. Tax recovery officers,
12. Assistant Commissioners of Taxes,
13. Extra Assistant Commissioners of Taxes
14. Inspectors of Taxes.

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Sources of Income under Income Tax Ordinance 1984

Sources of Income under Income Tax Ordinance 1984:-

For computing total income and charging tax thereon, sources of income can be classified into seven categories, which are as follows:

1.            Income from Salaries

2.            Income from Interest on securities

3.            Income from house property

4.            Income from agriculture

5.            Income from business or profession

6.            Income from Capital gains and

7.            Income from other sources.

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