March 16, 2014 Volume 7 Issue 11 - Christ University 7 _11.pdf · will be manufactured at BHEL's...
Transcript of March 16, 2014 Volume 7 Issue 11 - Christ University 7 _11.pdf · will be manufactured at BHEL's...
March 16, 2014
Volume 7
Issue 11
News National 1
International 3 Rates and Graphs 5
Contemporary Articles
Mint Countries 7
Debate Financial Inclusion In India 8
Stock Watch
Ambuja Cement Ltd 9
Investor’s Check Shares 12
Alumni Speak 14
Buzzword 15
Campus Buzz 16
Commodity
Lead 17
Scam Common Wealth Games Scam 2010 18
Did You Know? 19
Financial Services Industry Analysis 20
Quiz 25
Crossword 26
INDEX
to the previous three months of the current financial
year. Government borrowing from the market to
bridge fiscal deficit for the current fiscal constituted
90.9% of the public debt. As per the Interim Budget
2014-15, the gross and net market borrowing re-
quirements of the government is at `5.63 lakh crore
and `4.53 lakh crore, respectively which is lower
than `5.79 lakh crore and 4.84 percent gross and net
market borrowings estimated in Budget 2013-14.
Government don’t cancel 19 coal blocks
After reviewing 51 blocks, the government has
decided not to cancel 19 coal blocks which was
given to Arcelor Mittal, GVK, Visa Power, Monnet
Isptat, JSPL and Tata Power among various other
companies after the inter-ministerial group review of
their progress. Also, the ministry of Coal after
reviewing the blocks which has not started the
production decided to cancel 32 blocks on the basis
of the performance and milestones achieved by
them. The decision has been put on hold for many
blocks where the interim orders from various courts
had been obtained for companies such as Tata Steel,
Ultratech, HZL, Essar Power, Hindalco, Adani
Power, Sterlite, GMR, Arcelor Mittal, JSPL, ACC
Cements and Reliance Energy.
Government clears $80 billion infrastructure pro-
jects
The government's drive of investing $1 trillion in
infrastructure by 2017 to break an infrastructure
investment logjam and achieve economic growth of
8.4% to revive the economy before the forthcoming
general election could be years before it pays growth
dividends for the next government. Also, the offi-
cials acknowledged that rapid approvals won't revive
investment overnight, but they argue that India's
$1.8 trillion economy could still achieve growth
rates of 7 per cent if projects are executed on time.
Government plans ` 20, 000 crores investment in
medical institutions
UPA government is pushing a `20,000 crore plan to
build 31 medical institutions which includes nine
post-graduate medical institutes,15 medical colleges,
three dental colleges, two nursing colleges and two
paramedical training institutes all over the country
using the funds of ESIC which is already cash
strapped and might witness bankruptcy in few years
if the expenditure goes as planned. Non congress
chief ministers are trying are offering free land and
other concessions for the establishment of such col-
leges in the low industrial activity areas of their
states citing the need to overcome the storage of
medical and paramedical staff in the ESIC hospitals.
Public debt increased by 2.6 % in 3rd quarter
Government’s total debt excluding liabilities under
the Public Account increased to over `46 lakh crore
which is a 2.6% quarter-on-quarter growth in the
third quarter ended in December 2013 in comparison
NATIONAL NEWS
1
MAYANK KAUSHIK
1 MBA- M
4
4
Tea auction sales drop in Kolkata & Guwahati
Even though tea production has climbed to 1,200
million kg this year, the Kolkata and Guwahati
auction centres have dropped sales this week as
well as in the coming weeks as there is hardly
anything on offer as supplies have fallen because of
strong domestic consumption in FY14. The person
associated with the recent development informed
a dropped sale 9 that was supposed to take place this
week. The auction centres also drop sale numbers 11
and 12 in March as there is no tea to offer. There are
some teas that have been catalogued for sale 10,
which will be held next week. Every year it was
supposed to be one sale, but this year it is 3 sales
which is dropped as the movements of the teas has
been more this year.
RBI launches unit to watch over exports
The Reserve Bank of India has launched a compre-
hensive, integrated and computerised export data
processing and monitoring system to step up
monitoring and follow-up of export transactions as a
part of its green initiative as paper reporting require-
ment will be eliminated to a substantial extent
and make the regulatory and supervisory process
effective for monitoring the export transactions and
also help exporters in effective compliance with
rules guiding exports. This alternative to paper-
based filing will facilitate banks to report various
related returns through a single platform as the
system has been developed with a single master data
base for all exports. The shipping data with the
customs will be the base for all subsequent export
follow-up processes.
BHEL bags 1,980 MW thermal power project
State-owned power equipment maker bagged a
contract worth ` 7,900 crore related to 1,980 MW
thermal power project in North Karanpura, Jhark-
hand. The plant will have three units, each having
a generation capacity of 660 MW which involves the
work of design, engineering, manufacture, supply,
construction, erection, testing and commissioning
for the Engineering Procurement and Construction
(EPC) package. The key equipment for the contract
will be manufactured at BHEL's Trichy, Haridwar,
Bhopal, Ranipet, Hyderabad, Jhansi and Bangalore
plants and with this contract, BHEL has now won
orders for supply and installation of 32 supercritical
boilers and 27 turbines of 660 MW, 700 MW and
800 MW ratings.
Government to transfer IMF special drawing
rights to RBI
The government will transfer the special drawing
rights (SDRs) of the International Monetary Fund
(IMF) it holds to Reserve Bank of India (RBI) for
`15,000 crore to house all the reserves under the
central bank..the RBI will pay the government
`5,000 crore in the current fiscal and ` 5,000 crore
each in the next two fiscals, which will help the
finance ministry meet the revised fiscal deficit target
of 4.6% of GDP. Drawing Rights is an international
reserve asset created by the IMF in 1969, a kind of
alternative international currency to help boost the
official reserves of member countries. Each member
country has SDRs allocated to it in proportion to its
quota in the IMF. Its value is based on a basket of
key international currencies - the euro, Japanese yen,
pound sterling, and US dollar.
2
5
5
Gold hits fresh six-month highs on Ukraine,
China worries
Gold rose to fresh six-month highs on March 14th
and was headed for its best weekly gain in four
weeks, buoyed by mounting tensions between
Russia and the West over Ukraine, and worries over
an economic slowdown in China. Spot gold rose 0.4
percent to $1,375.26 an ounce by 0020 GMT, after
hitting fresh six-month high of $1,375.95.The metal
has gained nearly 3 percent this week, marking its
sixth straight weekly gain. Data showed that China's
economy slowed badly in the first two months of the
year, with growth in investment, retail sales and
factory output all falling to multi-year lows.SPDR
Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings rose 2.10
tonnes to 813.30 tonnes The Bank of England is
consulting users of its gold vaults over a review of
its charges for storing and handling bullion, a source
close to the process said.
UK faces further £ 1billion pensions black hole
Taxpayers in UK will be forced to cover a further
£1 billion shortfall in public sector pensions, the
Treasury has admitted. Employer contribution rates
will rise next year to make up for the predicted
shortfall in pension schemes for teachers and
employees of the NHS and the Civil Service, minis-
ters said. There have been instances where the most
up-to-date valuations show that an insufficient
amount of money has been paid into the schemes,
which means government departments will be
required to increase their contributions. The cash
flow shortfall is the difference between pension
contributions from public sector workers and the
amount being paid out to those who have retired.
Danny Alexander, the Chief Secretary to the Treas-
ury, said: “It is really important that, we deliver the
best quality pensions we can for public sector
Dollar hits six-week lows, euro zone periphery in
vogue
The dollar hit 6-week lows on 17th February as
recent weak U.S. data cast doubt on the pace of
monetary tightening, while prospects for a new
reforming government in Italy and better euro zone
growth boosted the bloc's periphery. A run of weak
U.S. data, including an unexpected fall in January
manufacturing output has caused some investors to
revise their expectations of how fast the Federal
Reserve will scale back stimulus and tighten
monetary policy. Higher-yielding emerging mar-
kets .MSCIEF, which has suffered as U.S. investors
bring their money home in anticipation of tapering,
also rose to 3-1/2 week highs. The yield on Italy's
benchmark 10-year government bond also hit an
eight-year low of 3.622 percent, and Spanish yields
were also trading at eight-year lows. In energy
markets, Brent oil futures dipped 1 cent to $109.05 a
INTERNATIONAL NEWS
3
PRIYA THOMAS
1 MBA – I
6
6
barrel, while U.S. crude firmed 48 cents to
$100.78.Supply disruptions and a severe winter
across North America that has boosted heating
demand were also supporting oil.
UniCredit to spend up to $14 billion on buying
state debts to firms : CEO
UniCredit (CRDI.MI) is prepared to spend up to
$ 10 billion Euros ($14 billion) to take on payments
owed to companies by Italy's public administration,
the bank's chief executive said in a newspaper inter-
view. The Italian state owes some 68 billion Euros
to private companies, which has starved firms of
cash and triggered layoffs, factory closures and even
bankruptcies. Unicredit bank Chief Executive Fede-
rico Ghizzoni said UniCredit, which posted a record
14 billion euro loss earlier this week due to huge
write-down expects to have a Basel III Common
Equity Tier 1 capital adequacy ratio of 10 percent of
risk-adjusted assets in 2016. Ghizzoni also said the
bank had set aside provisions worth $ 600 million
Euros to cover its exposure to crisis-hit Ukraine.
JPMorgan pays $400 million to settle with
Syncora over toxic loans
JP Morgan Chase & Co will pay $400 million to
settle lawsuits brought by bond insurer Syncora
Guarantee Inc over toxic mortgage-backed securi-
ties, as said by the insurer. Syncora brought several
cases against JPMorgan to recover losses on securi-
ties created and sold by the former Bear Stearns and
Co and its EMC Mortgage affiliate which was
bought in 2008 by JP Morgan. The bond insurer
claimed that the bank misrepresented the quality of
loans by underlying the securities and that it was
deceived them. Faced with federal government
action and significant legal costs, JPMorgan ought to
put its residential mortgage-backed securities
problems behind it. In November, JPMorgan agreed
to pay $13 billion to settle claims related to mort-
gage-backed securities with the U.S. government.
The same month, it agreed to pay $4.5 billion to
settle claims by a group of 21 institutional investors
who lost money on mortgage-backed securities that
soured during the 2008 housing-led financial crisis.
Bitcoin bank Flexcoin shuts down after theft
Bitcoin bank Flexcoin said on 4th March that it was
closing down after it lost bitcoins worth about
$600,000 to a hacker attack. "As Flexcoin does not
have the resources, assets, or otherwise to come back
from this loss, we are closing our doors immedi-
ately," the company said. Alberta, Canada-based
Flexcoin, which is working with law enforcement
agencies to trace the source of the hack, said it
would return bitcoins stored offline, or in "cold stor-
age", to users. Cold storage coins are held
in computers not connected to the Internet and there-
fore cannot be hacked. Bitcoin is a digital currency
that, unlike conventional money, is bought and sold
on a peer-to-peer network independent of central
control. Its value soared last year, and the total
worth of bitcoins minted is now about $7 billion.
According to price on Bitstamp, one of the largest
exchanges for trading bitcoins, the crypto-currency
was valued at about $668.57.
4
7
7
GRAPH
RATES AND GRAPHS
5
Rate Repo 8.0 Percent
Reverse Repo 7.0 Percent
Marginal standing facility 9.0 Percent
Call rate 6 to 8.35 Percent ( 14th March 2014)
Inflation +8.1 Percent for Feb 2014
Forex Reserve $ 294.36 Billion as on 7th March 2014
91day T-Bill 9.27 Percent
IIP 0.10 Percent (increase) for Feb 2016
90 GS 2019 8.09 Percent (indicative YTM)
NIVEDITA PALLAVI
1 MBA - L
60
60.5
61
61.5
62
62.5
12-Feb-14 18-Feb-14 24-Feb-14 02-Mar-14 08-Mar-14 14-Mar-14
Rs/$
Rs/$
29500
30000
30500
31000
31500
12-Feb-14 18-Feb-14 24-Feb-14 02-Mar-14 08-Mar-14 14-Mar-14
Gold(per 10 gram in Rupees)
Gold(per 10 gram in Rupees)
8
8 6
104
106
108
110
112
12-Feb-14 18-Feb-14 24-Feb-14 02-Mar-14 08-Mar-14 14-Mar-14
Oil(perbbl)$
Oil(perbbl)$
5600
5800
6000
6200
6400
6600
19000
19500
20000
20500
21000
21500
22000
22500
12-Feb-14 18-Feb-14 24-Feb-14 02-Mar-14 08-Mar-14 14-Mar-14
Sen
sex
Nifty and Sensex
Sensex
Nifty
Nif
t
5,500.00
6,000.00
6,500.00
7,000.00
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
12-Feb-14 18-Feb-14 24-Feb-14 02-Mar-14 08-Mar-14 14-Mar-14
Op
en
Inte
rest
Future Rates and Open Interest
Open Interest FutureRates
Futu
re R
ate
s
9
9
In the year 2001, the BRICS countries were regarded
as the potential powerhouses of the economy. The
term BRICS was coined by the economist Jim
O’Neil when he headed the Goldman Sachs global
economics research department, now the investors
have turned their eyes towards the MINT countries.
The term “MINT” refers to economies of Mexico,
Indonesia, Nigeria and Turkey. It was originally
coined by Fidelity and was later popularized by Jim
O’Neill. These four countries are also on the Next
Eleven countries list and its usage has particularly
growing in the investment sectors, where it is used
to refer to the bonds issued by these governments.
According to the Corruption Perceptions Index, out
of 177 countries, Mexico ranks 106th, Indonesia
114th, Nigeria 144th and Turkey 53rd. The MINT’s
are more prone to the currency crises as they do not
share in depth the financial system, or the experience
of monetary authorities which would help to
manage their economies like that of the BRICS
economies
The common factor which unites the MINT’s is their
favourable demographics. Their population are large
with a strong ratio of people eligible to work to
those who aren’t, where the ageing BRICS (China
and Russia) can envy. The MINT’s are well placed
to take advantage like, Mexico borders the US and
links it to the rest of Latin America, Indonesia being
in the heart of South East Asia, Nigeria being one of
the thriving African countries, while Turkey span-
ning Europe, Central Asia and the Middle East.
Following the footsteps of the Asian tiger economies
of the 1970’s and 80s the MINT’s are harnessing
their large populations to pursue export related
growth. But to achieve the high economic growth
rates just the increasing labour force of the countries
is not enough. The countries need steady flow of
capital both domestic and foreign. But however the
investors’ money and expertise are especially
sensitive to political factors such as the strong insti-
tutions and the rule of law. But despite the gloom
there is no doubt that the MINT economies are
regarded fresher than the BRICS.
MINT COUNTRIES
7
MARIA LISBEL
I MBA - I
10
10
The financial inclusion refers to the access of wide
range of financial services at very reasonable costs
which can be affordable by the common people. It
helps in the broadening of the financial systems in a
country by implementing a culture of savings in the
rural population. The financial inclusion is aimed at
increasing the competition at affordable level. It also
aims at increasing the investments by ensuring the
cost level. RBI has taken many steps for the imple-
mentation of the financial inclusion.
The various steps taken by RBI are:
Opening no frill accounts.
Relaxation of Know Your Customer norms.
Engaging business correspondents.
Use of technology.
Adoption of EBT ( Electronic Benefit Transfer)
Simplified branch authorization.
Opening of branches in non banking rural areas.
In India the focus of the financial inclusion at
present is concentrated in ensuring a minimum
access to a savings bank account to all. At one
extreme, the customers are actively involved in the
financial services industry using wide range of
financial services and products whereas on the other
extreme, we have the financially excluded who are
denied access to the most of financial products and
services.. The new technology and banks which will
be opened in the rural areas will help in the people in
that area to get access to the new technologies and
help in their involvement in the financial services
industry.
Consequences of financial exclusion will vary
depending on the nature and extent of services
denied. It may lead to increased travel requirements,
general decline in investment, higher incidence of
crime, difficulties in gaining access to credit and for
getting credit from informal sources at much higher
rates than the actual rates, and increase in unemploy-
ment. The small business may be suffered due to
decrease in access for middle class and higher-
income consumers, increase in cash handling costs,
delays in repayment of money. The cost of the
operation is more when financial inclusion is
implemented. The major disadvantages of this is that
the rural people will not be knowing about the pros
and cons as they will be inclined to the new system
and will not be having much knowledge of the urban
areas and the changes. The major challenge of finan-
cial inclusion field is to separate micro credit as only
one of the aspect of the larger financial institution.
The financial inclusion is one of the major steps
taken in the country for the citizens. This step will
help in evolving and improving the financial stabil-
ity and economic growth of the country. Presently
the inclusion plays a major role in the development
of the country. There are some disadvantages which
are to be rectified as the initiative will be helpful
in improving the working condition and financial
stability of the country.
8
DEBATE :: FINANCIAL INCLUSION IN INDIA
GAURAV VIDYARTHI
1 MBA -L
Neenu Sunny
1 MBA- NL
11
11
About the company
Ambuja Cements Ltd is a part of Holcim which
is a global conglomerate.
It is one among the India’s leading cement manu-
facturers and is in this business for more than 25
years.
It was initially known as Gujarat Ambuja Ce-
ments Ltd, founded by Narotam Sekhsaria in
1983 along with Suresh Neotia.
It currently produces 27.25 million tons of ce-
ment.
Ambuja has got eight cement grinding units and
five integrated manufacturing plants in all over
India.
It is the first among Indian cement manufacturer
who has build a captive port along the western
coastline of the country in order to facilitate
timely, cost effective and environmentally
cleaner shipments of bulk cement and has got its
own fleet of ships.
It has got a unique home grown philosophy
known as “I CAN”, that gives its employees the
authority to set their own targets to achieve their
goals, hence acts as a motivation for them.
9
STOCK WATCH :: AMBUJA CEMENT LTD
SANDIPA DAS
1 MBA – N
VAIBHAV RAINA
1 MBA – N
Particulars 2012 2011 2010
Earnings Per Share (Rs) 8.4 8.0 8.3
Dividend Pay Out Ratio(%) 42.8 40.0 31.5
Performance Ratios
ROA (%) 10.8 11.2 13.2
ROE (%) 15.4 16.0 18.3
Asset Turnover(x) 0.9 0.9 0.9
Inventory Turnover(x) 11.5 10.5 10.4
Debtors Turnover(x) 48.4 52.2 58.9
Efficiency Ratios
Receivable days 7.5 7.0 6.2
Inventory Days 31.7 34.6 35.0
Payable days 46.8 57.4 66.9
Growth Ratio
Net Sales Growth(%) 13.9 15.7 4.4
PAT Growth(%) 5.5 -2.8 3.7
EPS Growth(%) 5.0 -3.0 3.3
Financial Stability Ratios
Total Debt/Equity(x) 0.0 0.0 0.0
Current Ratio(x) 1.8 1.5 1.6
Quick Ratio(x) 1.4 1.2 1.2
Interest Cover(x) 26.1 33.4 35.1
12
12
Recent news
On 12th February 2014 Ambuja Cements stock
price rose by 2.69% on BSE after its announce-
ment to resuming the mining operations in Hi-
machal Pradesh plants.
Compared to Q4 in 2012 the profit of Ambuja
Cement rose to 49.3% in Q$ of 2013.
On observing the key financial figures of Ambuja
Cement for last few years we can see that its divi-
dend payout ratio has been increasing year on year
and earning is almost stable throughout. Here we can
also see that Ambuja Cement is a debt free company
but it has got a some amount of interest coverage
ratio which may indicate that it has take some
amount of short term loans which it was able to re-
pay it back in a year’s duration.
1. Ambuja Cements though not as vast as some of
its peers is going very strong.
2. Even though having the third highest sales turn-
over in its group, its net profit margin is very
healthy.
3. Also having the second highest market capital
and total assets indicates a great future for the
company.
Reasons to Purchase:
- Gain understanding of Ambuja Cements Limited
and the factors that influence its strategies
- Track strategic initiatives of the company and
latest corporate news and actions
- Assess Ambuja Cements Limited as a prospec
tive partner, vendor or supplier
- Support sales activities by understanding your
customers' businesses better
- Stay up to date on Ambuja Cements Limited’s
10
Name Last Price Market Cap. (Rs. cr.) Sales Turnover Net Profit Total Assets
UltraTechCement 1,826.75 50,096.93 20,174.94 2,655.43 19,697.50
Ambuja Cements 167.90 25,954.99 9,160.35 1,294.57 8,839.69
ACC 1,099.50 20,665.10 11,168.94 1,095.76 7,467.83
Shree Cements 4,720.90 16,446.31 5,590.25 1,003.97 4,821.03
Ramco Cements 175.35 4,172.79 3,863.45 403.65 4,164.32
Birla Corp 235.05 1,810.01 2,602.96 269.82 3,625.31
J. K. Cement 174.95 1,223.38 2,911.97 233.55 2,839.18
Mangalam Cement 102.80 274.41 706.04 77.37 456.33
Peer Comparison
13
13
business structure, strategy and prospects
Highlights
Ambuja Cements (Ambuja or “the company”)
formerly called Gujarat Ambuja Cements is one
of the leading cement manufacturing companies
in India. It is headquartered in Mumbai, India.
The company recorded revenues of INR76, 378.1
million (approximately $1,665 million) during
the financial year ended December 2010
(FY2010), an increase of 4.2% over FY2009.
11
The operating profit of the company was
INR16, 726.7 million (approximately $364.6
million) in FY2010, a decrease of 7.4% com-
pared with FY2009.
The net profit was INR12, 636.1 million
(approximately $275.5 million) in FY2010, an
increase of 3.7% over FY2009.
References
http://www.indiainfoline.com/Markets/News/Ambuja-Cements-gains-after-Himachal-Pradesh-plants-resume-mining/5254063430
http://www.ambujacement.com/about-us/comp-profile/
http://www.moneycontrol.com/stock-charts/ambujacements/charts/AC18#AC18
http://www.aceanalyser.com/Analyser.aspx?MenuTab=C
http://www.moneycontrol.com/competition/ambujacements/comparison/AC18
14
14
Let’s have a look on mathematics of transaction re-
lated to Bonus share & stock split and its impact on
shareholders wealth.
Bonus share: It is a distribution of share free of
cost to the existing share holder on proportionate
basis. Hence there is no dilution of ownership.
In, India one of the advantage of bonus share is
tax benefit because the dividend paid to the
shareholder comes under ordinary income, but
receipt of bonus share is not taxable.
Effect on shareholders wealth: It does not affect
the wealth of shareholder, but the EPS & MPS will
fall proportionately. Let us assume, ABC ltd has net
earnings of ` 4.40 crore, EPS before declaration `
2.2 (` 4.20 crore/2 crore) & after declaration of bo-
nus share, EPS ` 2 (` 4.40 crore/2.20 crore). But to-
tal earnings before bonus share was `220
(`2.20*100) & after declaration it remains `220 (`
2*110) wherein market value per share will drop by
` 2.73 (approx.) i.e. ` 30 (1-2.00/2.20). Total market
value a remains unchanged ` 3000 (`27.27*110)
same before bonus shares.
Effect of Bonus share on capital structure of company
ABC ltd.
Bonus issue: 1:10 (issue of 20 lakh new shares to exist-
ing shareholder at `30 (assumed market price), face
value: `10 & Premium: `20)
Stock split: When the market price of shares
goes up quite a bit, it is difficult for the investors
to buy even small quantity of shares in the
market. The company may decide to split the
share's face value to increase the liquidity of
shares, and hence a drop in price. For
example,ABC ltd. wants to stock split its paid-up
INVESTORS CHECK :: SHARES
PRAVEEN KUMAR SINGH
1 MBA I
12
` Crore
Paid-up share capital
(2.20 crore shares, Rs10 par) 22
Share premium 34
Reserves & surplus 10
Net worth 66
` Crore
Paid-up share capital(2 crore
shares, Rs10 par) 20
Share premium 30
Reserves & surplus 16
Net worth 66
15
15 13
share capital (1 crore, ` 10 par). After stock split
of ABC ltd. wants to stock split its paid-up share
capital (1 crore, ` 10 par). After stock split of 10:1
the paid-up share capital is ` 10 crore at ` 1 par.
Effect on shareholders wealth
So, if EPS is ` 15 per share for a share having a
face value of `.10, after a 10:1 stock split, the EPS
would come down to ` 1.5. But since you would
be holding 10 shares now, your share of EPS re-
mains the same: ` 1.5 * 10 shares = ` 15, which is
as before.
If the PE of the stock is 20 in our example, the
price would go down from ` 300 (EPS of ` 15 *
PE 20 = ` 300 per share) to ` 30 (EPS of ` 1.5 *
PE 20 = ` 30 per share). But again, since you
would be holding 10 shares now, your actual hold-
ing remains the same: ` 30 * 10 shares = ` 300.
LohaIspaat Ltd.
LohaIspaat Ltd. is a steel processing and service
company that operates from Khopoli and Taloja in
western Maharashtra.The company is one of the
organized independent steel service centres in India
having an existing client base of over 500 custom-
ers.Equity shares are proposed to be listed on the
Bombay Stock Exchange and National Stock
Exchange. The Issue has been graded by credit
assessor Credit Analysis and Research Ltd as “CARE
IPO Grade 3”, which indicates average fundamentals
& Punjab National Bank is the lead banker.
The IPO proceeds are proposed to be utilized primar-
ily to fund:
Fund working capital requirement for LIL’s
plants at Ransai and Taloja(post expansion of
plants)
Fund expenditure for general corporate purpose.
LohaIspaat’s consolidated revenue has grown
from ` 1523.75 crore in fiscal 2009-10
to `.3435.72 crore in fiscal 2012-13, representing
a compounded annual growth rate (CAGR) of
31.13%
Security Type Equity
Issue open date March 11, 2014
Issue Close Date March 20,2014
Issue Size(No. Of shares) 26,705,476
Face Value 10.00
Price Band 77-80
Listing on BSE
Proportion of offer to Public 26,705,476(2,670,547,available for
allocation to QIBs, 8,011,643 available for Non-Institutional bidder, 16,023,286 for
Retail Individual Bidder)
Pricing Method Fixed Price
Minimum allotment(shares) 175 Equity shares
Allotment Lot 175 equity shares & in multiple of one equity share thereafter
Trading lot One Equity share
Registrar BIGSHARE SERVICES PRIVATE LIMITED
BRLM ARYAMAN FINANCIAL SERVICES LIMITED
16
16
Interviewed Mr. Saranjeet, who is working in
INGVysa Bank, who is in charge of the working
capital requirements of the small and mid size enter-
prises. He made a special mention of Chaanakya in
improving his knowledge and help in answering few
of the questions in his final interview.
Can you through some light on your bank, the
job profile and the role you play in your organi-
zation?:
I am responsible for working capital requirements of
small and mid size manufacturing enterprises in and
near Bangalore. For this I visit their manufacturing
concern and analyze there working capital require-
ments by analyzing the manufacturing process,
business model.
What encouraged you to choose this industry and
join the company?
I always had interest in banks, always wanted to be
a banker while INGVysa is one of the emerging pri-
vate sector banks which had good future prospect.
How has been your experience in the company as
well as industry so far?
It’s been 11 months since I joined INGVysa bank. As
I mentioned earlier I was responsible for working
capital requirements of the small and mid size
manufacturing concern. Within these 11 months
I learned many things about different industries
like STEEL, RUBBER, AGARBATTI, and PLASTIC.
Different industries have different procurement
cycles, inventory holding period etc, So in allI
learned a lot.
How is the professional world different from the
life in MBA?
MBA is a tool to get into corporate world. The best
thing about CHRIST is the mentoring sessions that
helps a lot in Group Discussions and further in
interviews. The difference is that professional world
is much more practical than theoretical curriculum
of MBA.
What do you feel was your most significant lead-
ership opportunity ?
As earlier mentioned that its only 11 months since I
ALUMNI SPEAK :: GIRISH MANJAPPA
MALLIKA JAIN
1 MBA - K
14
The best thing about CHRIST is the mentoring
sessions that helps a lot in Group Discussions and
further in interviews.
17
17
have been working in the bank, whatever task is
being given to me, I do it as a leader. Rest depends
on the opportunities in near future.
What is the most challenging project or situation
that you have encountered in your work?
According to me the most challenging part is under-
standing the working capital requirements of differ-
ent industries.
Are there any additional courses / certifications
that you recommend in this field?
I will suggest a diploma course called as
“DIPLOMA COURSE IN BANKING AND FI-
NANCE” from Indian Institute of Banking and
Finance in Pune. One can enroll himself/herself
online in its site www.iibf.org.in with a nominal fee
of Rs 5000/-. Its exams are held on Sundays in the
months of June, May, November and December.
Its modules are principle and practices in banking,
accounting in banking and legal and regulatory
aspects in banking.
If one wants to make his career in Risk Management
then he/she can go for FRM- Financial Risk Man-
agement.
What are you doing to ensure that you continue
to grow and develop in industry?
Continuous learning and adapting to new technol-
ogy irrespective of the fact which industry one is in,
is the best way to continue to grow and develop in
the industry.
What are the opportunities for us (juniors) in
your bank?
There are opportunities in credit appraisal if you
are a young MBA.
Will you be willing to come and share more about
the industry and the company and your experi-
ence with us in an alumni interface?
Pleasure will be all mine.
A message for Christites?
Take your mentoring seriously as it really helps in
cracking any GDs or interview. Take part in various
competitions related to finance it helps in building
confidence and read business magazines like
CHAANAKYA etc.
15
Take part in various
competitions related to
finance it helps in build-
ing confidence and read
business magazines like
CHAANAKYA etc.
BUZZ WORD
SANDIPA DAS 1 MBA– N
ACTIVE MONEY
It is the sum total of money with the public. Value
of active money changes and also shows seasonal
fluctuations. For example the money demand
amongst the people decreases during the holidays;
people tend to draw money from the ATMs mostly
when they are at work. Thus we can find that the
active money is more on Monday as compared to
Friday. The money held by banks are not consid-
ered as active money but once this money is lend to
the customers the it again categories as active
money as it becomes actively circulated.
18
18
Corporate Interface on” Federal Reserve System
and Central banking in U.S. Versus India”
On 10th March 2014, a corporate interface was
arranged for the Finance students of CUIM on
“Federal Reserve System and Central banking in
U.S. Versus India”. The interface was headed by
‘Ms.Sonya Ravindranath Waddell’ who is a
Regional Economist in Federal Reserve Bank of
Richmond, U.S. She gave an insight on Federal
Reserve Bank and its working. She also shared
information about the monetary system followed in
the U.S Economy. She also told the students that
Federal Reserve Bank is a decentralized bank oper-
ated by 12 regional banks under it. She also shared
information about the unconventional techniques
that the bank employed to overcome the crisis of
2008. The session proved to be an informative one
for the students, which gave the students an opportu-
nity to get an insight of the working of monetary
system of U.S as well as Federal Reserve Bank. It
was a fruitful session all together and the students
gained a lot from it.
Guest lecture on “"Extending Credit to Business
and Individuals"
On 21st February 2014, a guest lecture was arranged
for the Finance and General Management students of
CUIM on ‘Extending credit to Business and
Individuals’. The guest lecture was headed by an
eminent banker and the Former Vice President of
IndusInd Bank “Mr. Suresh Pai”. The speaker gave
insights about how to give credit to companies and
individuals and what are the points that should be
kept in mind while extending credit. The speaker
gave lot of personal examples of the situations that
he had faced as being a banker. He stressed on the
importance of ethics and integrity in banking. He
also demonstrated how a banker should create
a checklist to analyze if credit must be advanced
or not. He also listed out the points which should be
checked before extending credit to any individual
or company. The lecture was very informative for
the students, as they got to know the important
points which should be taken care of while giving
loans, as well as the importance of values and ethics
in the life of a banker
CAMPUS BUZZ
MAYANK KAUSHIK
1 MBA - M
16
19
19
Lead is a blue-grey metal which is ductile and
corrosion resistant and it has been in use since last
5000 years. It is a chemical element of the carbon
group having symbol Pb and atomic number 82. It is
found in alliance with zinc, silver, and copper ores.
Lead is one of the most sustainable and recyclable
commodities, which can be recycled several times,
without loss of its physical or chemical properties.
Recycled lead accounts for more than 60% of the
total lead production.
In India the main producers of lead are Hindustan
Zinc Limited (HZL) and Indian Lead Limited (ILL).
Major uses of Lead
Lead is used at those places where low melting
point, ductility and high density are important to
consider. The low melting point makes casting of
lead simple, and hence arms ammunition and
shotgun pellets are one the best example of the uses
of the Lead. Compounds of this element are used as
a colorings element in ceramic, mainly in the colors
of red and yellow. Lead is also used in polyvinyl
chloride plastic. Lead was also used in pesticides
before the 1950s
In MCX (Multi Commodity Exchange) lead is
measured in units of 5000 kilograms, quoted in units
of Kilogram and sold in the lots of 5000 Qty.
News about Lead
Over the course of 2013, demand for lead rose
worldwide because of the recovery in the auto indus-
try in the U.S., the world’s second-largest market for
lead. The U.S. doubled its lead imports over the first
six months of 2013, resulting in the price of the
metal to rise more than 13 percent between May and
June of 2013. According to the International Lead
and Zinc Study Group, the global lead market
experienced a significant deficit in the first half of
2013 and car sales has increased by almost 21% in
China, 13% in US and by 6% in Europe. Therefore
because of low supply and high demand, its price is
expected to rise in 2014.
Current performance of Lead in the Commodity
Market
Lead is currently being traded with a spot price of
` 126.15 (11th Mar 2014).
The current Spot prices in MCX for Lead futures
are:
` 126.90/ Kilogram for 31st Mar 2014
` 127.10/Kilogram for 30th May 2014
` 130.10/Kilogram for 30th Jun 2014.
References
Multi Commodity Exchange of India Limited.. Real
Time.Retrieved from http://www.mcxindia.com/SitePages/
realtimedata.aspx
Commodity Market,Prices | MCX,NCDEX,NMCE | Gold/
Silver Prices | Trading News. Commodity lead Market
Price | MCX NCDEX NMCE lead Price | lead
COMMODITY :: LEAD
ABHISHEK SURYARAJ
1 MBA - L
17
20
20
The Commonwealth Games Scam is a very popular
scam that happened in India involving misappropria-
tions in the allocation of money during the prepara-
tory phase as well as the overall conduct of the 2010
Commonwealth Games held in New Delhi from 3rd
to 14th October 2010. The main person accused in
this scam was Suresh kalmadi who was then the
Chairman of the Organizing Committee of the Delhi
Commonwealth games. Sheila Dixit who was the
chief minister of Delhi at that point of time was also
accused for several irregularities in the process of
CWG. Just after the conclusion of the common-
wealth games, the Government of India decided to
form a special committee for a proper investigation
into this matter which was led by the Comptroller
and the Auditor General of India-Mr. V. K Shunglu.
Apart from this, Central Vigilance Commission
(CVC) as well as Central Bureau of Investigation
(CBI) also conducted a probe into the allegation of
corruption. The scam involved a loss of ` 70, 000
crore to the national exchequer.
This scam gained a lot of criticisms from various
development experts who believed that spending of
billions of dollars was a wrong priority at a time
when one in three Indians are living below the
poverty line. The money should have been allocated
to the socio- development projects. This amount
invested in the Commonwealth Games led to a huge
financial cost for Government of India. Massive
irregularities were shown up in a total of 14 CWG
projects.. During the preparatory phase, there was
also a delay in the construction work. Labor laws
were also violated at the construction site. An inves-
tigation was carried out which reported almost 70
cases in which workers have died at the site. Many
children were found working at the construction site.
CBI revealed a lot of irregularities in the recruitment
process of the organizing commitee.Various people
were appointed for important committee who didn’t
have proper knowledge to conduct the tasks
properly. Due to the poor quality of management
and organization; many venues were nearly empty
on the opening day of the Games. Moreover, the
process of sale of tickets was also not conducted in a
systematic way. Many of the top players like Geraint
Thomas decided to withdraw due to the poor
arrangement facilities .Even during the games many
players faced a lot of problems to find convenience
in the arrangements.
Recently, Arvind Kejriwal during his tenure as the
CM of Delhi registered a first information report
concerning the expensive street-lighting for the
Commonwealth Games in 2010. He accused Sheila
Dixit for corruption charges particularly on over-
spending and inflated figures in the conduct of the
Commonwealth Games as she was the chief minister
at that point of time.
References http://en.wikipedia.org/
wiki/2010_Commonwealth_Games
http://en.wikipedia.org/wiki/
Con-
cerns_and_controversies_over_the_2010_Comm
onwealth_Games#Labour_laws_violations
http://www.ekakizunj.com/
Commonwealth_games_scam
http://www.ndtv.com/article/cities/arvind-
kejriwal-s-strike-2-against-sheila-dikshit-
SCAM:: COMMON WEALTH GAMES SCAM (2010)
18
PRAGYA TAMRAKAR
1 MBA - L
21
21
Common stocks
Common stock is a form of corporate equity owner-
ship, a type of security. Like bonds; common stock’s
value is equal to the present value of all future cash
flows that the stockholder expects to receive from
owning the shares of stock. The value of common
stock is derived from discounting “expected divi-
dend.”
There are three steps to value the common stocks
and they are:-
Estimate the amount and timing of future cash
flows the common stock is expected to provide.
Evaluate the riskiness of the future dividends,
and determine the rate of return an investor
might expect to receive from a comparable risky
investment, which becomes the investor’s re-
quired rate of return.
Calculate the present value of the expected divi-
dends by discounting them back to the present at
the investor’s required rate of return.
We can consider the value of stock to be equal to the
present value of future expected dividends over a
certain period and an expected selling price.
Valuing common stocks using general discounted
cash flow model is difficult as analyst has to forecast
each of the future dividends. This problem is simpli-
fied if we assume that dividends grow at a fixed or
constant rate.
Preferred Stocks
Preferred stock (also called preferred shares, prefer-
ence shares or simply preferred) is a stock which
may have any combination of features not possessed
by common stock including properties of both equity
and a debt instrument, and is generally considered a
hybrid instrument.
Dividend: In general, size of preferred stock divi-
dend is fixed, and it is either stated as a dollar
amount or as a percentage of the preferred stock’s
par value.
Multiple Classes: If a company chooses, it can issue
more than one class of preferred stock, and each
class can have different characteristics. For example,
Public Storage (PSA) has 16 different issues of
preferred stock outstanding that vary in terms of
dividend, convertibility, seniority.
Claims on Assets and Income: In the event of
bankruptcy, preferred stockholders have priority
over common stock. However, they have lower pri-
ority than the firm’s debt holders. Firm must pay
dividends on preferred stock prior to paying divi-
dend on common stock. Most preferred stock carry a
cumulative feature. Cumulative feature requires that
all past unpaid dividends to be paid before any com-
mon stock dividends can be declared.
Preferred Stock as a Hybrid Security: Like com-
mon stocks, preferred stocks do not have a fixed ma-
turity date. Also, like common stocks, non-payment
of dividends does not lead to bankruptcy of the firm.
Like debt, preferred stocks have a fixed dividend.
Also, most preferred stocks are periodically retired
even though there is no stated maturity date.
DID YOU KNOW :: STOCKS
GAURAV VIDYARTHI
1 MBA - L
19
22
22
Introduction
Broking can be called as a form of transaction which
involves an intermediary to act as a link between
two parties particularly a buyer and a seller. The per-
son who connects the buyer and seller is known as a
‘Broker’. The broker can be an individual or a firm
who charges commission or fees for his services. He
may receive commission or fees from a single party
or from both the parties depending upon the nature
of the transaction. Broking is considered a field
where specialized professional knowledge is highly
mandatory. The main functions of a broking can be
categorized in the following points:-
Bringing buyers and sellers together
Providing advice regarding investments in vari-
ous areas.
Keeping a tab on the market conditions like
price of the securities and providing knowledge
regarding the same to the investors.
Completion of legal formalities regarding a par-
ticular transaction.
Searching the potential buyers.
Suggesting strategies suiting individual require-
ments (risk taking ability).
A stockbroker is a professional person who is en-
gaged in the purchase and sale of stocks, bonds, se-
curities and other financial instruments. He is usu-
ally associated with a brokerage firm and makes the
transactions through a stock exchange or over the
counter (off exchange).When people don’t have
knowledge or the confidence regarding the invest-
ments of their funds at appropriate areas, these
stockbrokers advice them in financial decision mak-
ing. Stockbrokers play a very crucial role in the
economy as their activities have a huge impact on
the market conditions and the overall economic con-
ditions. Stockbroker is sometimes also known as in-
vestment adviser or the financial adviser. In different
countries there are different rules regarding the
qualification of a stockbroker.
Regulatory Environment
During the last few years India has emerged as
one of the world’s fastest growing economies.
India’s stock markets grew not only in size but
also in terms of product offerings. The introduc-
tion of LPG (Liberalization, Privatization and
Globalization) domestic broking industry is a
testimony to the stock market’s growth.
The stock market in India has also received a
thrust from rise in business transactions over the
years, sharp drop in brokerage fees, and transac-
tion costs, launch of a slew of new products, and
a robust regulatory environment.
The broking industry in India seems to be com-
ing of age as more broking houses are getting
listed and stock exchanges are becoming de-
mutualised and corporatized. The equity broking
firms have also diversified to other businesses
like investment banking and wealth management,
which was once the turf of foreign players of in-
ternational repute.
Over the years several measures — electronic
trading system, dematerializing securities, corpo-
ratizing and demutualising exchanges, settlement
through clearing corporations, trading in deriva-
tives — have been taken to expand the stock
markets.
During the last one year, the Securities and Ex-
change Board of India (SEBI) introduced some
major policy initiatives; for instance, it made
grading of IPOs mandatory; it introduced mini
contracts in equity indices and option contracts
FINANCIAL SERVICE INDUSTRY ANALYSIS :: BROKING SECTOR
20
MAYANK KAUSHIK
PRAVEEN SINGH
NIVEDITA PALLAVI
PRAGY TAMARAKAR
VAIBAV RAINA
MALLIKA JAIN
23
23
with longer life tenure, and recently, it permitted
short selling, and securities lending and borrow-
ing and trading in currency futures.
SEBI has invited proposals from various ex-
changes for setting up an exchange for small and
medium enterprises (SME). SEBI is the regula-
tory authority for stock markets in India. The
broking industry is poised for a quantum growth
in the medium to long term because the economy
is moderately strong; equity culture is proliferat-
ing; new products are hitting the markets; there is
wider integration with global markets, and more
thrust on reforms.
The Indian stock markets’ long existence, for
over almost one and- a-half centuries, has en-
abled the broking industry to not only absorb and
adopt new opportunities but also seamlessly im-
provise their systems, which has paved the way
for its growth and diversification.
Key Success Factors and Major Players
Success story of stock brokerage firms in India can
be attributed to three factors
Business Model
In securities market features like ASBA
(Application supported by blocked application),
safety net, online trading has gained investors. Many
stock brokers in India like ICICI securities, Kotak
securities etc. are also into banking sector & brokers
like India bulls are in to financial services. Acting as
a BRLM (Book Running Lead Manager) these banks
(parent company) are also associated with capital
market while the subsidiaries are into stock broker-
age. These firms have HNI (High Net worth Individ-
ual) & retail investors in as their customers. Banks
are also into brokerage industry but into selling of
insurance. Recently in December, the finance minis-
try had asked public sector banks to become insur-
ance brokers instead of remaining corporate agents.
Banca insurance allows insurance companies access
to the masses through 600-crore-plus bank accounts
in the country.
Regulatory Environment
It’s not only the business model of the brokerage
firms in securities, insurance & other financial ser-
vices market which contributes to their success but
also the stringent regulatory environment maintained
by Ministry of Finance & regulators like IRDA
which looks after Insurance sector in India, SEBI
which keeps strong watch on capital market, mutual
funds etc. Strict actions taken by SEBI against de-
faulters e.g. Sahara India have passed a strong mes-
sage in investors. Insurance Brokers Association of
India (I.B.A.I.) is the only Insurance Regulatory and
Development Authority (I.R.D.A.)-recognized apex
body of licensed Insurance Brokers. As per Insur-
ance Brokers’ Regulations 2002 framed by the
I.R.D.A., all licensed Brokers are required to be
member of I.B.A.I. as on date. IBAI are to promote
interaction among the Insurance/Re-insurance Bro-
ker members and to encourage, promote, facilitate
and protect the interests of the members of IBAI.
Macroeconomic Factor
In securities market features like ASBA
(Application supported by blocked application),
safety net feature, online trading has gained inves-
tors. Many of these stock broking firm’s year of in-
corporation in 1990-2000 (era of Liberalization) &
going through the financials of these firm it can be
seen that profit after tax (PAT) till 2008 (Global fi-
nancial crisis) has been increasing and after that
these firms really struggled in order to break previ-
ous earnings benchmarks. From this, it can be in-
ferred that along with business model & regulatory
environment macroeconomic factors has also played
a significant role in determining the success of these
firms. Factors like GDP growth, Inflation, CAD etc.
are considered as determinant of the same. High
food inflation 9% (approx.), INR Vs $ at its all-time
low i.e. 68.87 (approx.) in august’2013, high import
($36.03bn in June 2013, $38.10bn in July 2013 &
$37.05bn in august 2013) in year fiscal year 2013-
2014 resulted in underperforming of few sectors &
also investor less saving due high inflation resulted
21
24
24
in less investment & definitely not a good year for
stock broking firms. In recent figures announced In-
dia’s CAD in December quarter fell to 0.9% of
GDP, from 6.5% CAD previous year which resulted
into Rs7000cr ($1.1bn) into Indian stock.
Top 10 Stock brokerage firms in India
1. Kotak Securities Ltd
2. Karvy Stock Broking Ltd
3. Indiabulls
4. II&FS Investsmart India Ltd
5. Motilal Oswal Securities
6. Reliance Money
7. India Infoline
8. Angel Broking Ltd
9. Anand Rathi Securities Ltd
10. Geojit
Recent Global Trends
The world economy saw turmoil by way of market
going down; the whole economy went through grey
shades, only in late 2013 we saw green shots of
hope. Financial sector could not remain untouched
and thus the stock broking sector.
In this article we have tried to evaluate the trend of
last six years of stock broking sector in financial
market by way of finding relation between stock
market specially NSE NIFTY and Stock Broking
industry as a whole.
From the above chart we can see that the Indian
stock market as well as the stock broking industry’s
PAT plunged in 2009. Indian stocks surged, led by
Tata Motors and ITC, and the Nifty recorded its big-
gest single-day gain since 2009 as an apparent climb
down by the US in the standoff with Syria cooled oil
prices and the rupee's new found resilience made
beaten-down stocks attractive again.
Moving forward to 2010 we can see that both NSE
NIFTY and stock broking industry’s PAT went
down. some companies like Reliance Capital,
Suzlon energy, GE shipping, Reliance communica-
tion, Petronet LNG, ACC cement, Punj Lloyd, failed
to show an improvement over their previous year's
performance for reasons including supply glut, stiff
competition, entry of new players and rising input
costs.
Again in 2011 we can see that both NSE NIFTY and
stock broking industry’s PAT went down. In this
year India became fifth worst performing market in
the Economist's league tables of world stock per-
formance in the world investors in the stock market
are estimated to have lost almost Rs 20 lakh crore.
There were already signs of a slowdown, even as oil
prices rise, we could see the current account deficit
widen to a point where our forex reserves to cover
imports dip to an unhappy low.
We can see the same pattern or trend in 2012, both
NSE NIFTY and stock broking industry’s PAT went
22
25
25
down. The positive part in this particular time period
was that the fall in the equity turnover in Indian mar-
kets of 1.57% was less than that of the world’s
14.7%. Political deadlock in Europe, fiscal cliff de-
bate in the US, policy logjam in India and lack of
trading opportunities were main reasons for fall in
equity trading in India and rest of the world.
Moving towards 2013 we see greener shots of grass,
both stock broking industry’s PAT and NSE NIFTY
went up. Reduced CAD by way of decreased im-
ports especially of gold, stabilizing rupee value
against dollar, better forex reserve and tight mone-
tary policies helped gaining better position.
Thus it can be inferred from the graph that there is a
positive co-relation between PAT of the stock brok-
ing industry and performance of stock markets.
Key Skills Required and Scope of MBA Finance
Brokerage firm are basically financial intermediaries
that arrange transactions between a buyer and seller
of financial securities for a commission when the
deal is executed. The financial intermediaries have
been a major category of employment in the finan-
cial sector and play a very important role in the fi-
nancial industry. They assist to take the financial
product to the masses and thus achieve penetration
in the retail segment. The major categories of inter-
mediaries are
Insurance agents/Advisors
Direct Selling Agents (generally employed by
bank and NBFC)
Mutual fund distributor/Advisor
In the above listed categories, insurance agents are
one of the major categories and employ the maxi-
mum number of people. Also the roles are not stand-
alone and people have multiple roles. For example,
an insurance agent might also be selling mutual fund
products.
The basic skill requirements are specified below:
Basic understanding of the industry
Knowledge of the respective products
Awareness of the asset classes
Basic financial concepts such as compounded
return, IRR, etc.
Soft skills such as communication and selling
skills
There is no structured training institute or pro-
gramme to cater to this category of people. The pro-
jected human resource requirements in 2008 for fi-
nancial intermediaries were 2500-3000 and are ex-
pected to be 6000-7000 in 2022.
23
26
26 24
Name of the
Course Description Fees Reference
NISM
Series-XII
Established by Government
of India to promote securities market education and
research, National Institute of Securities Management
brings out various schemes to understand the capital
markets in India.
INR 1,405/- http://www.nseindia.com/e
ducation/content/module_nism.htm
Financial Markets
Module
This module by NCFM is a basic level program to begin
career in financial markets in India. The course gives basic
understanding of the products, players and
functioning of financial markets.
INR 1,686/- http://www.nseindia.com/education/content/module_ncfm.htm
Diploma in Stock
Analysis and
Trading
Provided by New Era Institute of Professional
Studies in Dwarka, Delhi the program is designed to meet
the demand of Equity Traders, Dealers, Investment
Advisors, Portfolio Managers, Business Developers, Client
Relationship Managers and Entrepreneurs wanted to
enter this industry as Brokers or Sub Brokers.
Not Disclosed http://www.nips.co.in/nips-dsat-course.html
Courses and Certifications
27
27
1. In the world of trade and commerce what is
special about the commissioning of Monte
dei Paschi si Siena in Italy in 1742?
2. Which bank is promoted by 20th Century
Finance Corporation and Keppel Tatlee Bank of
Singapore in India?
3. How ABN-AMRO bank got it's present name?
4. In Indian economic scenario what significant
reform was introduced by the Indian Govern-
ment on April 1, 1957?
5. Cannaught Plaza Restaurants and Hard castle
Restaurants had the responsibility for the entry
of which MNC to India ?
6. Name India's largest Mutual Fund scheme which
recently had a troublesome run and made the
investors unhappy?
7. Which is India's first Equipment Bank launched
recently by SREI International Finance Ltd.?
8. What is known as the 'Slash Fund'?
9. What is a 'Credit Crunch'?
10. Which country's foreign market is known as
'Rembrandt Market'?
11. Where is the European Central Bank located?
12. In money market, what is the term used for the
non-convertible paper money?
13. Which country's currency is known as Drachma,
which in Greek means 'to grasp'?
14. The man who broke Bank of England because of
his US$ 1 Billion in investment profits during
the 1992 Black Wednesday UK currency crisis.
15. Which is the parent company of Standard and
poor?
QUIZ
25
ABHISHEK SURYARAJ
1 MBA – L
PAVAN L
1 MBA - K
Answers of February edition
1. First trading bank in the world.
2. Economy
3. Dundee Mutual Fund
4. Currency swap
5. Vatican City
6. Puerto Rico
7. Mumbai, Delhi and Kolkata
8. Lenovo
9. Indonesia, Turkey, Brazil and South Africa
10. Magnus Carlsen
11. Lenovo
12. South Korea
13. Trident Group
14. Latvia
15. Thiruvananthapuram
28
28
Across
1) One of the parties that provides additional
insurance to the same person or policy.
3) A corporate security that ranks lower in claim to
another corporate security in terms of dividends,
interest or principal repayment if the company
goes out of business.
6) The minimum acceptable level of individuals with
a vested interest in a company needed to make the
proceedings of a meeting valid under the corporate
charter.
9) A category of mutual fund that is characterized by
portfolio that is made up of a mix of stocks and
bonds, which can vary proportionally over time or
remain fixed.
12) A pricing model that prices a business based on
what an investor would want to make from any
capital invested in the company.
13) An arrangement where the seller of an asset
leases back the same asset from the purchaser.
14) A recovery from prior negative activity.
15) A legal document that grants ownership of a
property to a government body when the property
owner does not pay the taxes due on the property.
Down
2) Securities and Exchange Commission (SEC)
provision that allows an issuer to register a new is-
sue security without selling the entire issue at once.
4) chart that displays the high, low, opening and
closing prices for a security for a single day.
5) financial professional who has expertise in
evaluating investments and puts together buy, sell
and hold recommendations for securities.
7) contractual provision stating that the seller of a
business is to obtain additional future compensation
based on the business achieving certain future finan-
cial goals.
8) The currency used as a reference in an interna-
tional transaction or when setting an exchange rate.
10) The estimated value of all assets and liabilities
of an acquired company used to consolidate the
financial statements of both companies.
11) A tax-exempt bond which is issued by federally
qualified organizations and/or municipalities for the
development of Brownfield sites.
CROSS WORD
26
NEENU SUNNY
1 MBA - L
ACROSS DOWN
1) COINSURER 2) SHELFOFFERING
3) JUNIORISSUE 4) CANDLESTICK
6) QUORUM 5) ANALYST
9) HYBRIDFUND 7) EARNOUT
12) TARGETRETURN 8) KEYCURRENCY
13) LEASEBACK 10) FAIRVALUE
14) REBOUND 11) GREENBOND
15) TAXDEED
29
29
30
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