International accounting Essay Example | Topics and Well Written Essays - 1750 words

International accounting - Essay Example Thus the exchange rates were under pressure heading to period leading to intense depreciation at the time of a steep fall in the global risk sentiments forcing RBI to interrupt so as to stabilize the unit of domestic currency. As for the foreign currency the Bank has entered into the contract of foreign currency derivative with its customers to lay them off on matched basis in the inter-bank market. The foreign currency hedging is made on the spreads on the customer transactions. The risk management body of the company undertakes hedging and the methods are thus used for assessing the effectiveness of hedging. The hedging taking place may be against a single liability or asset or a portfolio of the same (HDFC Bank Ltd., 2012, pp.110-124). Extent and Nature of Foreign Currency Exposure The Bank has entered into derivatives and foreign exchange deals after setting up counterparty credit limits on the basis of the counterparty’s ability to meet obligations in the event of foreign currency exposure. For such like endeavors the bank does not bear any market risks but only carries the credit risk associated with the counterparty. The Bank generally maintains a provision for the standard assets inclusive of the credit exposures on the basis of current market to market value of interest rate and gold and foreign exchange derivatives contract at stipulated level by the RBI from time to time. For the overseas branches of HDFC the provisions are maintained at a much higher level by the respective regulator of RBI. The effect of translation exposure of the company has resulted in translation reserve of the company amounting to Rs. 251,651,000 on 31st March, 2012. However, the treasury segment usually consists of the net interest earnings from the bank’s investment portfolio, money market lending and borrowing, losses or gains on the investment operation and on account of trading in derivatives contract and foreign exchange. The non-monetary as well as the mon etary foreign liabilities and assets of non integral foreign operations. These are then translated based on the rates of closing exchange notified by FEDAI related to the Balance Sheet date thereby resulting in profit or loss of the company that arises out of exchange differences which gets compiled in the Foreign Currency Translation Account till the disposal of the net investment in the non integral foreign operations (Raynor, 1999, p.156). Major risks of the business Since the intensification of the global financial crisis of 2008, risk related to the domestic growth of the company was a hindrance faced from the external environment of the company. The Bank also faces risk related to the Technology Risk Management of the company generally resulting in the cyber fraud. The other critical risks faced by the bank are the operational risk, credit risk and the market risk. Credit risk aroused from the non-payment of the loaned amount of the company whereas the market risk associated w ith the interest rate risk and the liquidity risk of the company. Th

How to build brand synergy among the integrated marketing Research Paper

How to build brand synergy among the integrated marketing communication elements to deliver an effective and consistent message to consumers - Research Paper Example 6). Protecting and promoting the brand in therefore very important. However, it can be challenging given the relative ease with which it can be copied and the fierce competition in an increasingly technologically sophisticated market place (Johnson and Myatt 2003, 749). Building brand synergy among the integrated marketing communications can be particularly tricky. This is because, today there is a wealth of media technology facilitating communications globally. For marketing managers the problem therefore turns on attempting to ensure brand integrity locally while simultaneously cultivating synergy globally (Aaker and Joachimsthaler 2009). This means ensuring that marketing brands must be coordinated among the integrated marketing communication elements in such a way as to deliver an effective and consistent message to consumers. In marketing products the focus must be on ensuring that brands maintain the same quality in terms of substance and packaging. In the service industry, branding is attached to the business rather than the product (Berry 2000, p. 128). As brands have the potential to clutter, confuse and crowd the market, building synergy is entirely important since there is an intense â€Å"proliferation of products, brands and sub-brands† in the market place (Aaker 2004, p. 6). Branding has entered a new phase in the international business environment and permeates local markets as a natural consequence. With the advances in modern technology particularly with respect to telecommunications have changed the way that businesses are required to coordinate brand promotion and protection. Moreover, competition is becoming increasingly fierce (Cravens, Piercy and Prentice 2000, 369). Businesses are therefore taking steps to become what is characterized as â€Å"smart environments† (Raman and Naik 2006, p. 381). It is therefore important to study how the new