IBA

IBA Finance Club

Proposal for Budget for the year 2010-11
10/28/2010

Table of Contents
Serial # Content
1 2 3 Introduction IBA Finance Club Philosophy Events for the year 2010-11

Page #

IBA Financial and Economic Developmental Challenge Financial Wizards Challenge 2010 -11 I-FCC 2010 (IBA Financial Careers)
4 5 6 Publication CFA Lecture series Budget

IBA FINANCE CLUB

IBA finance club is the doorway for the students of IBA to the world of corporate finance. The objective of this club is to not only improve your conceptual understanding of finance but to provide you ample opportunities to implement these concepts. These opportunities will be in the shape of various activities that would allow students to become better acquainted with the application of financial concepts. This will also equip them with the necessary skills and provide them an edge over any others they may have to compete with during their careers. Our goal this year is to gradually approach the above mentioned objectives in a very systematic manner, so that the performance of the IBA FINANCE club may be set as a benchmark not only on national but on international levels.

Our Team

Patron Mr. Shabih haider Manager Muneeb Hassan Khaliq Coordinators Syed Mustafa Nadeem Syed kamil Mustafa Zaidi Executive Council Rafay Khan Fariya Ahmad Reena Kirmani Treasurer Aroon Kumar

IBA FINANCE AND ECONOMICS DEVELOPEMENTAL CHALLENGE 2010-2011

Background: Value addition and capacity building are the underlying focus of all prestigious educational institutions today. With rising automation and mechanization there is little that human beings can do in terms of physical contribution of labor, hence, their role boils down to the intangible value they can bring to organizations in particular and the economy at large. While the global scholars and academia unanimously attribute analytical capability and crisis handling skills to be essential characteristics of the labor force, we find that less developed nations lag far behind their developed counter parts in this regard. In the context of Pakistan, this is easy to see and sad as it is, such ignorance is perhaps the root cause of the many issues that plague us at present. Institutions like IBA have upon their shoulders the task to train the leaders of tomorrow; an objective that requires a dedicated and balanced nurturing of the young minds that stand hungry for guidance. A crucial element of this process is empowerment, for it is only when the youth will be given a chance to step up and make their voice heard, that they will actually be able to bring about a revolution. The IBA Economics and Finance Clubs aim to take a step in this direction by giving the leaders of tomorrow a chance to leave their mark on history. The Idea: Such a paradoxical mingling of analysis and history will come forth in the event that IBAEC & IBAFC envision. Unlike any competition before, this will focus on a longitudinal case, based on the battle of the minds. The basic idea is to create a platform where the students get to apply their learning in the fields of Economics and Finance to critical policy making objectives. Paying lip service to failed institutional politics and corrupt policy making is easy and this is correspondingly inculcating in the students of today indifference or rather a passivity to let things be as they are. As brutal as this truth is, it serves to effectively worsen the vicious cycle of underdevelopment and poverty of thought that nations like Pakistan are trapped in. The competition will assign a data set of four to five hypothetical economies in their crude undeveloped form to around twenty to thirty teams. Their task will essentially be the shaping of medium and long term strategic plans that will shape the course of development that these systems will take. However the overarching presence of extraneous factors will be a strong force in these plans in order to keep things as realistic as possible. The data set will contain a detailed description of the economy and its financial condition, its absolute and comparative advantages, its sociopolitical conditions with an emphasis on any problems that plague them and a brief overview of the historic accomplishments and disasters that fill the pages of its history. Five

clusters (with five to six teams each) will be assigned one of the countries as the basis of their analysis. The teams will be required to write a paper regarding the proposed 5-year, 10-year and 15-year plans for the assigned nation covering major areas of Economic, Financial and Public Policy in their discussion. For instance, if a team makes a suggestion regarding the course of Import led Substitution they deem critical for the development of their economy, they will have to trace its consequent impact on debt and foreign earnings, the relative mix of budgeting decisions and a host of other dependent factors. In essence the task will necessitate that the participants take a synoptic view of the intricate mix of complications that plague policy making in order to be able to formulate plans that well address the maximum possible welfare enhancing criteria of any economy. The submission of these proposals will be the preliminary input that all teams will be required to submit in the first round. They would be given a 3-4 week period for the preparation of the research document which would then be scrutinized by a panel of judges; esteemed faculty members, alumni along with practicing Economists, Financial Analysts and Scholars. The screening will help in short listing ten teams that move on to the second round. This session would entail a test of macroeconomic contingency planning; the teams will have to under a pressed time frame analyze the impact of an unforeseen catastrophe on the various facets of the economy both qualitative (conflicts, social upheaval, crime etc) and quantitative (performance in debt servicing, exchange rates, exports, GDP areas etc). The submissions under this round would undergo a stringent critique by the judges who would then select the best teams for each of the countries assigned. The third phase of the competition would entail a ceremony where the selected teams would be asked to present their final work in front of an esteemed panel and the final decision of this jury based upon the well roundedness and practicality of plans would deem the winner deserving of the set cash prize. The Need: Students nowadays learn various economic and financial concepts related to the working of a state but they lack a platform to actually apply these concepts and contemplate the consequences that even a minor change in a policy or approach may have. This event would address the need for the practical application of concepts such as federal budgeting, taxation, fiscal policies and monetary policies. The Benefit: This would provide students around the globe an opportunity to better understand and comprehend the various tools and policies that are used by the ministry of finance to run a country. They would be required to come up with the most suitable policy for the growth and development of a given economy.

The Long-Term Importance: In these times, countries around the globe suffer a dearth of able and qualified men who can actually formulate and streamline the economy of a state. This event would serve as a platform to hone and nurture the abilities of all students interested in the financial and economic working of a country, so that one day they may be able to contribute in the development and the growth of their country. The Target Audience: A dimension where the proposed plan differs from its predecessors is the envisioned participant profile. We aim to extend the scope of this event to universities in Pakistan and abroad. Since the majority of the tasks have to be submitted online, the issue of geographical proximity will not be a problem. The main premise behind this vision is to pool in the plethora of thought processes that exist in the boundary less world today. The participants will be enticed to remain sensitive to the subtle yet powerful cultural and traditional factors that underlie the decisions that are made in different parts of the world, hence bringing into action another crucial area of skill building imperative for development. In the event that one of the foreign teams qualifies for the last round, IBA Economics and Finance Clubs would strive to arrange for their accommodation and travel to Pakistan. Marketing: Marketing for the event will take place in two segments. Marketing for students abroad will be started 2 months before the registration deadline via formal channels of universities and their societies. A complete program design will be forward to them including FAQ's. Incentives like fare ticket, hotel reservation and food will be given to the teams that reach the final round. Marketing for the local candidates will start 1 month before the registration deadline through print and electronic media (DAWN, Business Recorder, E-mails to universities, Radio IBA and FM 107), Information sessions at Elite universities and via Facebook.

BUDGET

Expenses
Stage I
Rate Marketing Expenses Toolkit Printing Costs Website Development Information Session Lunch for jury 500 Quantity 100 Cost 50000 50000 20000 48000 5000 Additional Details

12000 4 500 10

Stage II
Lunch Accommodation for Outstation Teams File Folders Dinner for Outstation Teams Rate 350 5000 30 400 Quantity 200 10 250 50 Cost 70000 50000 7500 20000 Additional Details

Stage III
Rate Venue Dinner Prize Money Backdrop Certificates Plaques Tags/Cardholders Sound & Multimedia Photography Total Expenses 1000 Quantity 150 Cost Additional Details 100000 150000 300000 50000+100000+150000 15000 12000 24000 1250 40000 15000 977750

40 800 25

300 30 50

Revenues
Sponsors Expected from IBA Total Revenue 377750 600000 977750

300000 (Finance Club) +

300000 (Economics Club)

FINANCIAL WIZARD CHALLENGE

The world of finance has no parameters. At the same time it requires fresh business graduates to be equipped with certain skills, character and knowledge. IBA Finance Club visions to go beyond class room education for future CFOs. During the year 2010-2011 we plan to hold a financial wizard challenge in which we will test teams in various fields of finance. The aim of the competition is to create a real business environment teams and to train individuals to manage different financial challenges assigned to them when they enter into the corporate world. Students from all business schools in Karachi will be invited to participate in teams of 5. Along with that a workshop will be held before the event in which we will inform all participants about what is expected of them in the competition. The challenge has the following segments 1. FUND INVESTMENT CHALLENGE: In any corporation today, the treasury department has an important role of managing funds and investing in the right stock at the right time. For any business student it is essential to have some understanding and experience of trading funds. In the first level, teams will be assigned a fixed amount of funds and they will have to invest in a simulated stock market. This level will last for a full week during which participants will have to deal with a variety of situations arising in the market. On the day of competition, the teams will be required to present in front of professional judges and they will be expected to give rationale for their trading decisions. The aim of this level is to test teams on their understanding of fund investment. At the end of this level, each team will be evaluated on its performance in the stock market. 2. FINANCIAL CASE CHALLENGE: The business world today, is an ever changing prospect in which managers must always be cautious and careful to avoid and solve numerous complex problems which the company comes across. The aim of this level is to test participants on how they will tackle similar complex problems which a company faces. In this level each team will be provided with a hypothetical case in which a firm faces a number a number of problems. Each team will have 3 hours to come up with a systematic manner in which the company should act in order to come out of the crisis. The teams will be given 30 minutes each to present their plan in front of a panel which will decide on how effective and feasible the action plan is. The panel will grade each team on the presentation. 3. FRAUD ANALYSIS: During the recent years fraud analysis has become an important part of financial management. Managers today, need to have a good understanding of different situations and identify ways in which a company or individual might be committing deceit.

Each team will be given a new case in which a company is committing fraud through various means. The task assigned will be to identify how the company is committing it. Along with this teams will have to identify the short term and the long term impacts of such a fraud. Each team will make a presentation in front of a panel of 5 judges. Each judge will grade the teams out of 10. The team with the highest points will receive the title FINANCIAL WIZARD OF THE YEAR 2010-2011 and prize money. EXPENSES

Expense
1 2 3 Backdrop File Folder Marketing expenditure Standees (Panaflex) Posters Air-Ticket expense for Ambassadors to LUMS, LSE and other universities in Lahore and Islamabad lunch Hi Tea Sound and Multimedia Certificates Plaques Conference Tags and card Holders Event Booklet Stock exchange Simulation software Proposal printing expense

Price/unit
Rs 15,000 Rs 30 Rs 900 Rs 50

Quantity
1 250 20 200

Total Price
Rs 15,000 Rs 7,500 Rs 18,000 Rs 10,000

Rs 12,000

Rs 24,000

4 5 6 7 8 9 10 11 12

Rs 200 Rs 100 Rs 35,000 Rs 35 Rs 500 Rs 25 Rs 250 Rs 25000

250 250 1 250 40 250 200 1

Rs 50,000 Rs 25,000 Rs 35,000 Rs 8,750 Rs 20,000 Rs 6,250 Rs 50,000 Rs 25,000 Rs 5,500 Rs 300,000 Rs 200,000 Rs 100,000

Total Budget for the Event Budget required for this Event From ISC Budget To be Raised From Sponsors

IFC 2010-11 (IBA Financial Careers 2010-11)

In these times students face much confusion as to the major they should chose. They rely mostly on unprofessional advice to help reach this decision. This incorrect method of counseling mostly relies upon unreliable methods of evaluation and general perspectives regarding a certain area of study. Students end up graduating with a major that is unsuitable for them. Or else they end up wasting considerable time and energy before finally being forced to change their major. More over various statistics shows that a striking percentage of employees around the world are dissatisfied with their job. Due to lack of interest or skills, they face difficulty while completing their assigned tasks. Most of these people now admit that they might have had chosen the wrong major. Dissatisfied employees means less efficiency and productivity. And a low morale and interest level means low prospects of promotion. All the above mentioned problems highlight the need for a proper forum that will aid students in choosing the right major. THE IBA FINANCE CLUB PHILOSOPHY There are certain skills and qualities that are required in all students pursuing finance as a major, the IBA Finance club believes in the philosophy that a person opting for finance major should ascertain whether he has these before opting for this major. So that if he lacks these he may be able to improve himself or else choose another major rather than suffering in the long-run. EVENT OVERVIEW The event would consist of a series of stages starting from the Character and skill evaluation test that would assess the qualities, character and skills of each student, followed by analysis and rating on the performance of each participant. Each student would then be counseled regarding their performance and whether they should opt for finance as a major. They would also be advised as to what skill and qualities they would need to improve if they want to pursue this field. At the end all the participants will also be informed regarding various career opportunities. OBJECTIVEs Our objective will be as follows: 1. 2. 3. 4. Character and skill evaluation Analysis and rating on test results Counseling Opportunities and prospects.

TARGET AUDIENCE: We would mostly be targeting the students of BBA-V and MBA-II as the audience EXPENSES:

Expense
1 2 3 Backdrop File Folder Marketing expenditure Standees (Panaflex) Posters 4 5 6 7 8 9 lunch Sound and Multimedia Certificates Plaques Conference Tags and card Holders HR firm service charges

Price/unit
Rs 15,000 Rs 30

Quantity
1 350

Total Price
Rs 15,000 Rs 10,500

Rs 900 Rs 50 Rs 200 Rs 35,000 Rs 35 Rs 500 Rs 25

5 20 350 1 50 50 50

Rs 4,500 Rs 1000 Rs 70,000 Rs 35,000 Rs 1,750 Rs 25,000 Rs 1250 Rs 100,000

Total Budget for the Event Budget required from ISC Budget to be raised from sponsors

Rs 264,000 Rs 100,000 Rs 164,000

IBA INSIGHT
The Finance club, in conjunction with the Economics club, proposes a first of its kind publication, the IBA INSIGHT. The publication has been proposed with an objective of securing active participation of students in the vital fields of economics and finance. A similar publication was proposed last year however due to certain constraints, it could not materialize. This year, we aim to effectively implement this idea of a half yearly publication because it helps to project our prodigies in the corporate world as well as the academia. The contents of the publications are such that it will not only appeal to the students as an up-to-date source of knowledge regarding key financial and economic issues, but also be of use to external users such as industrialists, potential investors or anyone with a keen eye for the subject. In this we will attempt to include a range of articles which are of considerable significance in the world of Finance and Economics. As part of our constant effort to enhance learning and knowledge creation in these areas, we would again like to invite your critique and also original papers for research. IBA Insight will include a range of articles written by students, alumni, faculty members and corporate executives. These articles will be covering following areas/topics: Latest financial issues or crisis in financial markets Pressing macroeconomic issues particularly in the wake of recent floods Feasible rehabilitation models/programs for the flood victims and gradual restoration of the worst affected sectors Implications of recent monetary/fiscal policy changes. Sector wise analysis of key Pakistani industries, the major issues faced and the role of the government. Foreign financial assistance and the role of the IMF and World Bank in economic and financial policy making The impact on Pakistani financial markets as a result of global capital movements. Profiles of Business Gurus and key industrialists Analysis of KSE-100 Index and different financial markets Analysis of key trends in the financial markets with recommendations of prospective investment opportunities.

Moreover, a brief discussion of the events organized this year at IBA, achievements of IBA students and change within IBA would be part of this publication. Lastly, we think an analysis of the challenges faced by the banking and finance industry of Pakistan should be summarized in one of the editions. Students can conduct an empirical research and consolidate their findings. This will give an opportunity to students majoring in finance to gauge the market before they become a part of the industry. EXPENSES Serial #
1

Expense
Newsletter

Price per unit

50

Quantity
1000 + 1000

Total Price
Rs 100,000

CFA Training & Research Lecture Series

CFA is becoming a part of life for students majoring in Finance. Even though IBA is in an alliance with CFA, the need of students for proper guidance, complete educational help and research opportunities in various areas of finance remains unfulfilled. IBA Finance Club visions to play its integral role in serving the finance curriculum at IBA and to facilitate the students of IBA in every possible manner to guarantee their success. Another new plan that we have come up with is named as CFA Lecture series which would further integrate CFA in our curriculum and provide a platform to students to excel on this global platform. In order to help students, we want to arrange CFA Level-one sessions, free of cost for students of IBA. We will try our best to get connected with highly experienced CFA instructors. Under the guidance of these teachers it would be easier for students to succeed. It would not just be lecture sessions but a complete CFA integration program in which students will be given research opportunities as well as given the chance to explore the world of Finance. EXPENSES Serial #
1

Expense
Instructor Fee

Salary per Session

Rs 2,500

Number of sessions
40

Total Cost
Rs 100,000

IBA FINANCE CLUB 2010-11

Proposed Budget

S.No. Event

Total Cost

Budget From Sponsors

Budget needed From ISC

Rs 300,000 (Finance club)
+ Rs 300,000 (Economics Club)

IBA Finance and economics Developmental Challenge*

Rs 977,750

Rs 377,750

Financial Wizards Challenge 2010 -11

Rs 300,000

Rs 100,000

Rs 200,000

Financial Careers 2010-11

Rs 264,000

Rs 164,000

Rs 100,000

IBA Insight**

Rs 100,000

Rs 50,000

Rs 25,000

CFA Training & Research

Rs 100,000

Rs 100,000

Totals

Rs 1,741,750

Rs 691,750

Rs 725,000

*In collaboration with IBA Economics Club with equally shared expenses **In collaboration with IBA Economics Club with equally shared expenses