Wednesday, April 30, 2008

MEDICAL EXPENSES - BIG DISCOUNT
-----------------------------------------------------------
http://www.megamedicaldiscount.com/
-----------------------------------------------------------

What Is a Discount Medical Card?
Many people are familiar with dental, vision, or prescription drug discount cards. The MediProHealth card is similar, except it offers discounts on a much broader range of health care benefits. It can be used for doctor visits, hospitals, lab tests, Hearing and more.

How Does The MediProHealth Card Program Work?
First and foremost, it is important to understand that The MediProHealth Card Program is NOT insurance... It does not pay claims for medical services. MediProHealth has affiliations with nationwide discount healthcare networks. These networks have negotiated special fees with hundreds of thousands of healthcare providers. These special fees are a fraction of the regular fees and are passed along to our cardholders. Cardholders routinely save anywhere from 10% to 60% on all procedures and products.
Cardholders pay a low monthly fee to access these discounts. However, they may not receive the discount unless they pay for their lower priced health care in full, at the time of service.
Cardholders who need medical procedures that require hospitalization with fees that are difficult to determine in advance must follow program protocol covering these situations to make certain they receive the proper discounts.

Is a Discount MediProHealth Program Right For You?
If like so many people today, you do not have health insurance, a discount program could be your answer. If the cost of the program is less than the savings a family receives by using the program then Discount Health makes sense.
MediProHealth is NOT insurance... It can offer financial relief only to the extent of the discount offered on medical costs associated with an injury or illness. To receive discounts, MediProHealth Cardholders are responsible for all out-of-pocket charges whenever they require health care services.
Many people who are unable to pay for high cost insurance health coverage have found discount health programs helpful.Before you register:
Make sure that the Discount MediProHealth Card offers the services you are likely to need. Make sure you understand how much you will be charged for, including monthly and one-time fees. Read the Terms and Conditions. .

Tuesday, April 29, 2008

PROFIT SHARING PLAN DESIGN

http://findarticles.com/p/articles/mi_m5072/is_n11_v18/ai_18661280
---------------------------------------------------------------------------------------
Business Services Industry
New comparability - a new concept in profit sharing plan design
Los Angeles Business Journal, March 11, 1996 by Jeffrey D. Poland

Over the years, many thousands of organizations have maintained profit sharing plans, which are the least complex type of retirement plan. Under a profit sharing plan, an employer's contribution can be allocated to the eligible participants in one of several ways. In the simplest case, an employer contributes a specified percentage of the pay - e.g., 4% or 5% - of each employee. Under an "integrated" approach, an employer contributes a higher percentage of pay above the Social Security Wage Base ($62,700 in 1996) than of pay at or below the Wage Base. Another variation allows an employer, to a limited extent, to weight the contribution percentage by participants' length of employment, i.e., a "points" method of allocation. Regardless of the method, the internal Revenue Code limits the annual contribution per participant to the lesser of $30,000 or 25% of pay.Employers like the flexibility of profit sharing plans because of the discretion they have to vary the amount contributed for any year. This is in contrast to defined benefit pension plans, which require contributions of actuarially determined amounts. An employer's contribution to a profit sharing plan can range for any year from zero to the maximum tax-deductible amount of 15% of the total pay of the participating employees. Moreover, despite the "profit sharing" designation, contributions do not have to be tied to profits in any way. Also, unlike most defined benefit pension plans, profit sharing plans are not under the jurisdiction of the Pension Benefit Guaranty Corporation and do not have to pay premiums to that agency.
From the perspective of many employers, a significant disadvantage of profit sharing plans has been the inability to weight contributions in favor of key employees to any significant extent. Legislation effective in 1994 exacerbated this situation by capping at $150,000 the amount of an individual's pay on which contributions can be based. Here is where an "age-weighted" basis for allocating the contribution (i.e., a "New Comparability" plan) can be the answer, under the right circumstances.
The circumstances are right when the key people are older, on average, than the balance of the employer's work force. In other words, a New Comparability plan works something like a defined benefit pension plan, but without its disadvantages, by availing itself of the "cross-testing" provisions of the IRS nondiscrimination regulations. In summary, for nondiscrimination testing purposes an employee's annual profit sharing contribution, accumulated with interest to age 65, is converted to a pension payable at age 65 - by using an annuity factor to "convert" that contribution plus accumulated interest to an equivalent dollar amount of annuity, or pension, payable commencing at age 65. Each "equivalent" pension is expressed as a percentage of the participant's pay. Then, the percentages for higher-paid participants are compared to the percentages for other participants. If the difference between the percentages for the two groups is within prescribed nondiscriminatory bounds, all is well.
This cross-testing approach benefits older employees simply because of the power of compound interest. For example, a $900 contribution made for a 30-year-old employee will accumulate to $15,600 by the time the individual reaches age 65, assuming an 8.5% annual compound interest rate (which is in the range of interest rates permitted by IRS). To reach an accumulation of $15,600 at age 65, the contribution for a 55-year-old employee would have to be $6,900 at an 8.5% interest rate. Using one of the annuity factors prescribed by IRS regulations, $15,600 at age 65 would purchase an annual pension of $2,000.
Let's assume that the 55-year-old earns $150,000 and the 30-year-old earns $30,000. Then, an annual pension of $2,000 represents 6.7% of the 30-year-old's pay, but only 1.3% of the 55-year- old's pay. These are the percentages one looks at in applying the cross-testing provisions. To make it simple, let's assume that we increase the contribution for the 55-year-old so that the equivalent annuity at age 65 is exactly 6.7% of pay. This translates into a contribution of $34,500, which has to be reduced so as not to exceed the annual limit of $30,000. Thus, by the power of compound interest, a contribution of $30,000 for the 55-year-old (20% of pay) is equivalent to a $900 contribution for the 30-year old (3% of his pay) and satisfies the IRS regulations.
Use of the New Comparability basis results in two significant accomplishments for the employer: (1) contributions for the key persons are increased to the maximum amount of $30,000 (when contributions are integrated with Social Security the employer's total tax-deductible contribution of $98,700 (i.e., 15% of the total pay of $658,000) is not sufficient for the allocation process to produce $30,000 for each of the key persons); and (2) contributions for rank-and-file employees are decreased.
-----------------------------------------------------------------------------------
JEFFREY D. POLAND IS A CONSULTING ACTUARY WITH HIRSCHFELD, STERN, MOYER & ROSS, INC. ROCKEFELLER CENTER, NEW YORK, NY 10020

Monday, April 28, 2008

Brain Teaser (Mail from ஸ்ரீ P V ஸ்ரீனிவாசன்)

(Mail from ஸ்ரீ P V ஸ்ரீனிவாசன்)
Test for Dementia
Below are four ( 4 ) questions and a bonus question. You have to answer them instantly. You can't take your time, answer all of them immediately. OK?
Let's find out just how clever you really are....
First Question:
Y ou are participating in a race. You overtake the second person. What position are you in?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Answer: If you answered that you are first, then you are absolutely wrong! If you overtake the second person and you take his place, you are second!
Try not to screw up next time. Now answer the second question, but don't take as much time as you took for the first question, OK?
Second Question:
If you overtake the last person, then you are...? (scroll down)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Answer: If you answered that you are second to last, then you are wrong again. Tell me, how can you overtake the LAST person?
You're not very good at this, are you?
Third Question:
V ery tricky arithmetic! Note: This must be done in your head only . Do NOT use paper and pencil or a calculator. Try it.
Take 1000 and add 40 to it. Now add another 1000 . Now add 30. Add another 1000. Now add 20. Now add another 1000. Now add 10. What is the t! otal?
Scroll down for answer.....
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Did you get 5000 ?
The correct answer is actually 4100.
If you don't believe it, check it with a calculator! Today is definitely not your day, is it? Maybe you'll get the last question right... Maybe.
Fourth Question:
Mary's father has five daughters: 1. Nana, 2. Nene, 3. Nini, 4. Nono. What is the name of the fifth daughter?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Did you Answer Nunu? NO! Of course it isn't.
Her name is Mary. Read the question again!
Okay, now the bonus round:
A mute person goes into a shop and wants to buy a toothbrush. By imitating the action of brushing his teeth he successfully expresses himself to the shopkeeper and the purchase is done.
Next, a blind man comes into the shop who wants to buy a pair of sunglasses; how does HE indicate what he wants?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
He just has to open his mouth and ask...
It's really very simple.
PASS TH IS ON TO FRUSTRATE THE
SMART PEOPLE IN YOUR LIFE!
Have a nice day everyone
How dumb am I!

Sunday, April 27, 2008

ஐ சி ஐ சி ஐ பா ங் கு

ICICI Bank makes additional $45 mn provisioning
BS Reporter / Mumbai April 27, 2008
Bank suffers MTM losses on credit derivatives exposure; Q4 net profit rises 39 per cent.

ICICI Bank today said it has made additional provisions of around $45 million (Rs 180 crore) for mark-to-market losses (MTM) on its credit derivative obligations (CDOs) and credit-linked note (CLN) portfolio during February and March 2008. This takes the bank's total provision for these instruments to $170 million (Rs 680 crore) during the year.
QUARTER GAINFinancial parameters for the March quarter
Rs crore
2007
2008
% chg
Interest earned
6395.93
8029.27
25.54
Other income
2099.59
2361.65
12.48
Total expenditure
6707.45
8100.26
20.77
Net profit
825.12
1149.84
39.35
Deposit
230510.19
244431.05
6.04
Advances
195865.60
225616.08
15.19

"We have no sub-prime assets but only exposure to CDOs and CLNs. We have seen no deterioration of our portfolio. The provisioning is only for the MTM losses due to widening of credit spreads. In fact, post March 31, the credit spreads have tightened and we have made a saving of $16 million (Rs 64 crore)," Chanda Kochhar, joint managing director and chief financial officer, said.

For the fourth quarter of 2007-08, India's largest private bank reported a 39 per cent growth in net profit to Rs 1,150 crore, as against Rs 825 crore in the corresponding period last year.

ICICI Bank's total exposure to CLNs and CDOs was estimated at $1.6 billion (Rs 4,240 crore), comprising 70 per cent of Indian corporates.

Credit derivatives are instruments for which the underlying asset is a loan or a bond. Marking to market means valuing a portfolio based on the prevailing market price.

Despite this, the bank has seen an 8 per cent rise in provisions during the fourth quarter to Rs 948 crore, as against Rs 876 crore during January-March 2007. Most of the other private sector banks, such as Axis Bank and HDFC Bank, have seen significant rise in non-tax provisions and contingencies mainly due to provisions for derivatives. ICICI Bank, however, did not disclose the details of its derivative deals.

Asked about the cases filed by companies related to the derivative deals, Kochhar said, "Corporates take derivative products to hedge their exposure. Some corporate clients have taken a mark-to-market loss.

The bank does not disclose any profits or losses incurred by its clients. There are a few cases which are under dispute and the bank has made adequate provisions for it."

The bank's treasury income dipped 63 per cent to Rs 164 crore during the quarter, as against Rs 445 crore in the corresponding quarter last year. Other income is up 12 per cent to Rs 2,361 crore.

Fee income increased 32 per cent to Rs 6,627 crore from Rs 5,012 crore. Of the total fee income, retail and small and medium enterprises contributed around 52 per cent and the balance came from overseas operations.

Foreign operations account for about 25 per cent of the bank's business.

The bank's portfolio of advances grew 15.2 per cent while the retail book grew 3.1 per cent year-on-year. Advances through overseas branches increased 95.6 per cent and others by 5.6 per cent. ICICI Bank has sold close to Rs 14,000 crore worth of retail loans across product categories across the year.

The bank's net interest margin stood at 2.40 per cent as against 2.28 per cent in the corresponding quarter last year. Its cost of funds has eased to 7.4 per cent from 7.5 per cent. Net non-performing assets to advances increased to 1.55 per cent from 1.02 per cent. Its capital adequacy ratio stood at 13.97 per cent.
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ICICI Bank's PAT crosses US$ 1.0bn
2008-04-26 16:30:05
Email Print Version
The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting held at Mumbai today, approved the audited accounts of the Bank for the year ended March 31, 2008 (FY2008).

Highlights
• Profit after tax for the quarter ended March 31, 2008 (Q4-2008) increased 39% to Rs. 1,150 crore (US$ 287 million) from Rs. 825 crore (US$ 206 million) for the quarter ended March 31, 2007 (Q4-2007).
• Profit after tax for FY2008 increased 34% to Rs. 4,158 crore (US$ 1.0 billion) from Rs. 3,110 crore (US$ 775 million) for the year ended March 31, 2007 (FY2007).
• Net interest income increased 30% to Rs. 7,304 crore (US$ 1.8 billion) for FY2008 from Rs. 5,637 crore (US$ 1.4 billion) for FY2007.
• Fee income increased 32% to Rs. 6,627 crore (US$ 1.7 billion) for FY2008 from Rs. 5,012 (US$ 1.2 billion) for FY2007.
• Current and savings account (CASA) deposits ratio increased to 26% at March 31, 2008 from 22% at March 31, 2007.
• At March 31, 2008, ICICI Bank and its subsidiaries had consolidated total assets of Rs. 485,830 crore (US$ 121.1 billion).

Dividend on equity shares
The Board has recommended a dividend of 110% for FY2008 i.e. Rs. 11 per equity share (equivalent to US$ 0.55 per ADS) as compared to 100% for FY2007. The declaration and payment of dividend is subject to requisite approvals. The record/book closure dates shall be announced in due course.

Operating review

Deposit growth
Current and savings account deposits increased 27% to Rs. 63,781 crore (US$ 15.9 billion) at March 31, 2008 from Rs. 50,214 crore (US$ 12.5 billion) at March 31, 2007 and constituted 26% of total deposits at March 31, 2008 compared to 22% at March 31, 2007. The Bank is significantly expanding its branch network to expand its reach and further enhance its deposit franchise. At April 23, 2008 the Bank had 1,308 branches and extension counters as compared to 755 branches and extension counters at March 31, 2007. This increase of 553 branches and extension counters includes about 190 branches on account of the merger of Sangli Bank.
The Bank had 3,950 ATMs at April 23, 2008.

Credit growth
Consolidated advances of the Bank and its overseas banking subsidiaries and ICICI Home Finance Company increased 19% to Rs. 252,071 crore (US$ 62.8 billion) at March 31, 2008 from Rs. 211,660 crore (US$ 52.8 billion) at March 31, 2007. This reflects robust growth in the loan book of the Bank's international branches, its international subsidiaries and ICICI Home Finance Company.

International operations
ICICI Bank's international business is focused on:
• Building a retail deposit base which gives the Bank access to low cost deposits on sustainable basis: Aggregate retail deposits of ICICI Bank UK and Canada increased 90% from Rs. 15,740 crore (US$ 3.9 billion) at March 31, 2007 to Rs. 29,861 crore (US$ 7.4 billion) at March 31,
2008.
• Building a global syndication network which enables the Bank to syndicate its foreign currency assets across a wide variety of investors: The Bank was ranked #1 in offshore loan syndications of Indian corporates in 2007.
• Being the preferred advisor and financier for overseas acquisitions of Indian corporates
• Achieving the status of the preferred bank for non-resident Indians in key markets of UK and Canada.

ICICI Bank UK PLC achieved profit after tax of Rs. 155 crore (US$ 38.4 million) for FY2008 and increased its balance sheet by 80% to Rs. 35,300 crore (US$ 8.8 billion) at March 31, 2008. Its retail deposit base almost doubled to Rs. 17,250 crore (US$ 4.3 billion) on the back of the successful internet savings product and a 25% penetration in the bankable Indian community.

At March 31, 2008 the Bank's international operations accounted for about 25% of its consolidated banking assets.

Capital adequacy
The Bank's capital adequacy at March 31, 2008 as per Reserve Bank of India's revised guidelines on Basel II norms was 13.97% (including Tier-1 capital adequacy of 11.76%), well above RBI's requirement of total capital adequacy of 9.0%. At March 31, 2008, the capital adequacy ratios of ICICI Bank's UK and Canada subsidiaries were 18.6% and 22.9% respectively.

Asset quality
At March 31, 2008, the Bank's net non-performing assets constituted 1.49% of net customer assets.

Performance highlights of key non-banking subsidiaries

ICICI Prudential Life Insurance Company (ICICI Life) significantly increased its overall market share from 9.9% in FY2007 to 13.1% during April-February 2008 on the basis of retail new business weighted received premiums. ICICI Life's new business weighted received premium increased by 68% in FY2008 compared to industry growth of 37% during April-February 2008. The growing operations of ICICI Life had a negative impact of Rs. 1,032 crore (US$ 257 million) on the consolidated profit after tax of ICICI Bank in FY2008. However, ICICI Life's unaudited New Business Profit (NBP) in FY2008 was Rs. 1,254 crore (US$ 313 million). The assets held by ICICI Life increased from about Rs. 15,818 crore (US$ 3.9 billion) at March 31, 2007 to Rs. 28,578 crore (US$ 7.1 billion) at March 31, 2008.

ICICI Lombard General Insurance Company (ICICI General) maintained its overall market share of 12.3% during April-February 2008. ICICI General's premiums increased 11.4% to Rs. 3,345 crore (US$ 834 million) in FY2008 despite the impact of de-tariffing. ICICI General's profit after tax increased by 51% to Rs. 103 crore (US$ 26 million) in FY2008 from Rs. 68 crore (US$ 17 million) in FY2007.

ICICI Securities' unconsolidated revenues and profit after tax for FY2008 were Rs. 750 crore (US$ 187 million) and Rs. 150 crore (US$ 37 million) respectively. ICICI Securities Primary Dealership's profit after tax for FY2008 was Rs. 140 crore (US$ 35 million).

ICICI Prudential Asset Management Company's (ICICI AMC) average mutual fund assets under management was Rs. 54,355 crore (US$ 13.5 billion) in March 2008. ICICI AMC's profit after tax increased by 70% to Rs. 82 crore (US$ 20 million) in FY2008 from Rs. 48 crore (US$ 12 million) in FY2007.

ICICI Venture Funds Management Company (ICICI Venture) is the largest Indian private equity company with assets under management of about Rs. 9,550 crore (US$ 2.4 billion). ICICI Venture's profit after tax for the year ended March 31, 2008 was Rs. 90 crore (US$ 22 million).

Sourced From: ICICI Bank Ltd