September 16, 2014

Volume 8

Issue 6

News

National 1

International 3

Rates and Graphs 5

Contemporary Article

Jan Dhan Yojana 7 Buzzword 8 Debate 9 Stock Watch Asian Paints 10 Investor’s Check IPO 13 Alumni Speak 15 Commodity Copper 17 Scam Sahara Scam 18 Did You Know? 19 Financial Service Industry Analysis 20 Quiz 25 Crossword 26

INDEX

RBI issues guidelines for NBFCs on lending

against shares

With the aim to curb volatility in the capital market,

the central bank asked Non Banking Finance

Companies (NBFC) to maintain a loan-to-value

(LTV) ratio of 50 per cent in case of lending against

collateral of shares and accept only 'Group 1'

securities as collateral for loans of value more than

` 5 lakh. NBFCs lend either by way of pledge of

shares in their favour, transfer of shares or by

obtaining a power of attorney on the demat accounts

of borrowers. Currently, lending against shares

carried out by NBFCs is not subject to specific

instructions apart from the general regulation

applicable to all NBFCs, thus there are evidences

of volatility in the capital market being the result of

offloading of shares by NBFCs. Hence, irrespective

of the manner and purpose for which money is lent

against shares, default by borrowers can and has in

the past lead to offloading of shares in the market by

the NBFCs thereby creating avoidable volatility in

market.

RBI transfers largest ever surplus to govt

The Reserve Bank of India has transferred its entire

surplus of ` 52,679 crore to the government after a

committee suggested that it has enough contingency

reserves even as the central bank's gross income in

its last fiscal year fell 13 percent as it earned less on

interest and commissions. The central bank's balance

sheet size grew by about 10 percent during the year

ending June 30, 2014, on account of 15 percent rise

in foreign currency assets. The balance sheet rose

to ` 26,24,400 crore at the end of June from

` 23,90,700 crore a year back. The asset side growth

was mainly due to rise in foreign currency assets and

impact of depreciation of the US dollar against other

major currencies. Also, RBI will set up a repository

that will capture and distribute currency and debt

FCI asks govt to clear ` 50,000 crore dues

The nodal agency for public distribution of food

grains, Food Corporation of India (FCI) has asked

the government to clear dues of ` 50,000 crore in a

phased manner and asked to securitize the same for

raising funds from markets. In the current fiscal

year, the cash starved agency has already raised

short term loan of ` 20,000 crore twice for smooth

procurement and distribution of food grains whereas

the long term borrowings stand at ` 72,000 crores.

The FCI's subsidy has risen sharply in the last few

years due to increase in the minimum support prices

(MSP) for wheat and rice and high procurement,

storage and distribution costs. The economic costs

comprising MSP, procurement, storage and

distribution for wheat stood at ` 1,494.35 per quintal

and that of rice were at ` 1,983.11 per quintal in

2010-11. While in 2013-14, economic costs of both

wheat and rice have gone up to ` 1,932.39 per

quintal and ` 2,638.54 per quintal, respectively.

NATIONAL NEWS

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MAYANK KAUSHIK

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4

market data, as part of its efforts to deepen the

markets and plans to simplify foreign investment

regulations and review the scope of external

commercial borrowings (ECB).

Govt to spend ` 20,000 crore for mobile connec-

tivity in villages

According to Telephone Secretary, the government

will spend ` 20,000 crore to enable better mobile

connections in over 55,000 villages which still lacks

this facility across the length and breadth of our

country in the next five years. The government plans

to cover half of them in the next three years and for

this purpose the country has been divided into

5 areas and survey of villages is being done to build

towers. The survey has already being done in the

North Eastern states and is currently going on in

other Himalayan states which will be followed by

Bihar, Uttar Pradesh and others. Under the Digital

India Program, the government plans to spend

` 69,524 crore on various IT and telecom projects.

` 12k crore from NABARD to PMGSY

The rural development ministry is seeking

a ` 12,000 crore loan from the National Bank for

Agriculture & Rural Development (NABARD) for

Pradhan Mantri Gram Sadak Yojana (PMGSY) to

provide all-weather road connectivity to rural areas

in the country. Launched in December 2000 by

the erstwhile NDA government, PMGSY is a

fully-funded centrally sponsored scheme that

envisages connecting all habitations with a

population of 500 and above in the plain areas and

250 and above in hill states, tribal and desert areas.

This will be the second financial push to the scheme

from the government just three months into office,

enhanced from earlier allocation to ` 14,389 crore

from ` 10,160 crore allocated by his predecessor in

the interim budget.

Jan Dhan Yojana

The new government rolled out its ambitious

financial inclusion program, the Pradhan Mantri Jan

Dhan Yojana (PMJDY) by opening about 1.5 crore

accounts through thousands of camps, exceeding the

first day target of 1 crore accounts. The program is

aimed at improving the lives of millions of India's

poor by bringing them into the financial mainstream

and freeing them from the clutches of moneylenders,

while giving them an insurance cover of ` 30,000,

adding to the ` 1 lakh accidental insurance benefit

already available under the account that will come

bundled with a Ru-Pay-enabled debit card. After six

months of satisfactory operations, the account would

be eligible for ` 5,000 overdraft facilities, designed

to take the poor out of the clutches of moneylenders.

Subsequently, these accounts will be also used for

providing micro pensions. The National Unified

USSD Platform (NUUP) jointly set up by banks

and mobile companies will make mobile banking

available to account-holders. The National Payments

Corporation of India has provided a platform for

basic banking transactions that can be made with

a phone call. Accountholders will be able to check

their balance and transfer funds using this method.

2

5

5

Alibaba seeks to raise more than $21 billion in

record U.S. tech IPO

Alibaba Group Holding Ltd seeks to raise more than

$ 21 billion in an IPO that will value the Chinese

e-commerce giant at up to $163 billion and rank it as

the largest-ever technology debut in the United

States. Alibaba expects to price its initial public

offering between $60 and $66 per American

Depository Share, valuing the company at about

$162.69 billion at the top end of the range and

raising a maximum of $21.1 billion. Industry

analysts is expecting Alibaba to try for a valuation in

excess of $200 billion, ranking the Chinese company

among the 20 largest publicly traded companies in

the United States. It may eventually price above

the initial range, should it deem investor demand

sufficient. The company said in its latest prospectus

that it has racked up almost $16 million in

IPO-related legal fees, unusually high for an IPO

and an indication of the effort that Alibaba and its

advisers have undertaken to prepare a complicated

prospectus. Alibaba accounts for about 80 percent of

all online retail sales in China, where rising Internet

usage and an expanding middle-class helped the

company generate gross merchandise volume of

$296 billion in the 12 months ended June 30.

Central European PMIs point to slowdown as

sanctions hit sentiment

Economies in central Europe have rebounded

strongly from a sharp slowdown or even contraction

in the past year but are starting to slow, and analysts

expect that to continue for the rest of the year even

while a longer-term recovery stays on track. In

Poland, the region's largest economy the HSBC

manufacturing PMI index (PMI) fell to 49.0 last

month, the lowest reading in 15 months, from 49.4

in July, bolstering calls for interest rate cuts. Central

Europe's economies, which share trade links with

Russia, are only just beginning to feel the impact of

tit-for-tat sanctions between the European Union and

Russia over pro-Moscow separatists fighting

in Ukraine. A Russian ban on many EU food imports

which came into effect last month will likely cut into

growth somewhat.

Dollar General nets $12.25 billion loan facility for

Family Dollar hostile bid

Dollar General has lined up $12.25 billion of loan

commitments from Goldman Sachs and Citigroup

to back its hostile $9.1 billion bid for rival Family

Dollar. Dollar General said that it would take its bid

directly to Family Dollar shareholders after being

spurned by the target in favor of an $8.5 billion offer

from smaller rival Dollar Tree. The company said

it also has commitments for a $3.25 billion senior

unsecured, one-year bridge loan if it does not sell

$3.25 billion of unsecured notes before the closing

date. Interest on the term loan is expected to open at

LIB+300. The interest rate on the revolver would be

INTERNATIONAL NEWS

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PRIYA THOMAS

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based on available capacity and would range from

LIB+125-175, if the bridge loan is put in place,

interest is expected to open at LIB+500 and increase

by 50bp every three months. The term loan has six

months of soft call protection at 101. Dollar General

previously made a bid of $78.50 per share for

Family Dollar and increased its offer to the current

price after Family Dollar turned down that proposal.

Dollar General is offering to pay a $500 million

termination fee if the deal is pulled over regulatory

issues. The company said it is willing to sell up

to 1,500 stores to make sure the acquisition is

approved.

After default, Argentina economy falling into

deeper hole

Argentina's government is ramping up state

intervention in the economy to try to prevent a new

debt default from triggering a balance of payments

crisis but its policies are also battering business

confidence and may deepen a recession. In the

six weeks since Argentina failed to complete a debt

coupon payment and defaulted for the second time

in 12 years, the government has restricted the

amount of dollars available to importers, boosted

subsidies and drawn up proposals to interfere in

private companies' output plans. Along the Santa Fe

shopping boulevard in Buenos Aires, the choke on

imports and a sharp decline in consumer spending

have driven up shop closures and forced retailers

to bring forward sales. The leftist government's

measures are meant to shore up foreign reserves that

stand at less than five months’ worth of imports

and boost consumer confidence to prevent the

$490 billion economy already contracting. Heavy

government spending and high commodity prices

helped drive strong growth in the early years

of her presidency but tight controls on prices and

the currency market have caused imbalances in the

economy and it fell into recession this year

Alcoa signs Boeing deal worth more than $1

billion

Alcoa Inc (AA.N) has signed a long-term contract

to supply plan maker BoeingCo (BA.N) with alumi-

num sheet and plate that is worth more than

$1 billion. The new contract is the largest ever

between the two companies, said Alcoa, a longtime

Boeing supplier. Although it helped create the

modern aluminum industry more than a century ago,

Alcoa is eager to produce higher-margin, specialized

parts for aerospace and automotive customers, even

if they contain other metals or no aluminum at

all. The deal makes Alcoa the sole supplier of

wing skins for Boeing airplanes that have a metallic

structure. Alcoa had been very responsive in helping

Boeing deal with sharp increases in demand

for commercial airplanes according to the Boeing.

Boeing is saying that the deal is a “Partnering for

Success Initiative” to get substantial discounts from

its regular suppliers.

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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 8.05 Percent (14th September 2014)

Inflation +7.80 Percent for August 2014

Forex Reserve $ 317.7 Billion as on 5th September 2014

91day T-Bill 8.60 Percent

IIP 0.50 Percent (increase) for July 2014

90 GS 2019 8.09 Percent (indicative YTM)

NIVEDITA PALLAVI

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59.50

60.00

60.50

61.00

61.50

14-Aug-14 22-Aug-14 30-Aug-14 07-Sep-14 15-Sep-14

Rs/$

Rs/$

26000.00

26500.00

27000.00

27500.00

28000.00

28500.00

29000.00

29500.00

14-Aug-14 22-Aug-14 30-Aug-14 07-Sep-14 15-Sep-14

Gold(per 10 gram in Rupees)

Gold(per 10 gram in Rupees)

8

8 6

94.00

96.00

98.00

100.00

102.00

104.00

14-Aug-14 22-Aug-14 30-Aug-14 07-Sep-14 15-Sep-14

Oil(perbbl)$

Oil(perbbl)$

7000.00

7200.00

7400.00

7600.00

7800.00

8000.00

8200.00

8400.00

25000.00

25500.00

26000.00

26500.00

27000.00

27500.00

14-Aug-14 22-Aug-14 30-Aug-14 07-Sep-14 15-Sep-14

Sen

sex

Nifty and Sensex

Sensex Nifty

Nif

t

7600.00

7700.00

7800.00

7900.00

8000.00

8100.00

8200.00

8300.00

0.00

5000000.00

10000000.00

15000000.00

20000000.00

14-Aug-14 21-Aug-14 28-Aug-14 04-Sep-14 11-Sep-14

Op

en

Inte

rest

Future Rates and Open Interest

Open Interest Future Rates

Futu

re R

ate

s

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India has become Asia’s third largest economy, but

almost two-fifths of its 1.27 billion people do not

have a bank account, which leaves them dependent

on moneylenders and other informal financing

routes. The Prime Minister Narendra Modi on 28th of

August, 2014 launched the Pradhan Mantri Jan Dhan

Yojana (PMJDY) which is one of the measures

for the financial inclusion in the country. The main

aim of the scheme is to provide banking facilities

especially to the unbanked rural poor in order to

improve their living conditions and to alleviate their

living standards. The day, 28th August 2014 saw

a record of 1.5 Crore accounts being opened in

a single day. Under this programme, people will be

able to open zero-balance accounts with any bank,

either public or private.

The Jan Dhan scheme has simpler Know Your

Customer (KYC) norms in order to open a savings

bank account in any of the private or public sector

banks. One can use Mahatma Gandhi National Rural

Employment Guarantee Act (MGNREGA) cards,

or voters’ ID card as a documentary proof, if

the address mentioned in the document is different

from the current residence of the applicant, a self-

declaration suffices. Every account holder would

receive a RuPay debit card, and would be able to use

basic mobile banking services, such as balance

enquiry. Apart from this, every bank account holder

under the scheme would get an accident insurance

cover of ` 1 lakh, life insurance cover of ` 30, 000

if the account is opened by 26 January 2015, and

after six months of opening of the bank account,

customers can avail ` 5,000 loan from the bank. To

make the scheme foolproof, banks as well as

the government are now taking steps to link the

accounts either with biometrics-based Aadhaar cards

or creating a unique identity number. Moreover, the

government is using Census 2011 as the basis for the

scheme.

The scheme is said to benefit almost every person in

many ways, it provides a base to expand banking,

financial and insurance sectors in the country. By

providing access to bank accounts it would help

to provide direct cash transfer to the concerned

beneficiaries and plug the leaks in the subsidy

system, it also paves a way for reducing the

influence of money lenders and ponzi schemes. One

of the major limitations that PM Jan Dhan Yojana

may come across is the retrieval and collection of

loans. The borrowers are primarily going to be low

amount borrowers and would often come from

unorganized segments of society and profession.

It might be a little difficult for the banks and the

system to keep a track of the borrowers and thus

they may end up in losses.

The Jan Dhan scheme is still evolving. The Life

Insurance Corporation (LIC) is still in the process of

JAN DHAN YOJANA

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MARIA LISBEL

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the Jan Dhan scheme is still evolving. The Life

Insurance Corporation (LIC) is still in the process of

structuring the ` 30,000-life cover to be offered

under the scheme after the finance ministry asked

it for the details. Reports state that even though the

government is targeting to open 7.5 crore bank

accounts under the scheme, the life policy could be

issued to only around 2-3 crore people because Only

those who are above 18 and below 59 will be eligible

for the life cover, and though the accounts are

not mandatorily linked to the Aadhaar numbers, the

life cover is strictly open for only those who have the

Aadhaar numbers. It has been argued that the scheme

won’t place banks under undue financial burden

because the scheme builds the business case for

the banks due to Current and Savings Account

(CASA) deposits from such accounts. It makes

the infrastructure ready for Direct Benefit Transfer

(DBT) schemes to be rolled-out quickly. This will

improve governance and plug leakages. In principle,

approval of 2 percent commission to be paid for

DBT scheme has already been granted. At present

accidental insurance scheme is part of the RuPay

Debit Card and it is the National Payments

Corporation of India (NPCI) that will pay the

premium out of the revenue generated from card

transactions. There will be no burden on the banks

on account of insurance payment. The overdraft

up to the limit of ` 5000 will be given only after

satisfactory operation of the account for six

months. And the Credit Guarantee Fund for

defaults in such accounts is also envisaged under

the scheme.

The idea of Universal Banking facility is not really

new in Indian financial reforms systems, however

the approach has constantly failed to provide tailor

made services to the poor, at times due corruption

and often due to the inefficient system itself, and if

repayments are not mechanized efficiently, it may

have a swelling loan burden on Indian banks and

would thus impact the financial system altogether.

The success of the Jan Dhan Yojana also depends

on how fast financial service providers improve

their delivery and the challenge of keeping the

accounts alive.

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BUZZ WORD

SANDIPA DAS IV MBA F2

QUANTATIVE EASING

The central bank uses an unconventional monetary policy known as Quantitative easing (QE) to

stimulate the economy when standard monetary policy becomes ineffective. Under this policy the central

bank purchases government securities or other securities from the market in order to increase the money

supply and to lower the interest rates. This mechanism increases the money supply by flooding financial

institutions with capital in an effort to promote increased liquidity and lending when the economy is

booming. It is considered when short-term interest rates are at or approaching zero and does not involve

the printing of new banknotes.

Quantitative easing can also be used to ensure that inflation does not fall below a specified minimum.

QE includes a risk that the policy become more effective than intended in acting against deflation and

may lead to higher inflation in the longer term due to increased money supply in the economy, or may

not be effective enough incase the banks do not lend out the additional reserves held by them. According

to the IMF and various economists, quantitative easing undertaken during the global financial crisis

of 2007–08 had mitigated some of the adverse effects of the crisis then faced by the economies of the

world.

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Fair trade is an organized social movement which

helps producers in developing countries to achieve

better trading conditions and to promote sustainabil-

ity. The movement focuses on commodities, and

products which are exported from developing

countries to developed countries, but also consumed

in domestic markets. Free trade occurs when there

are no barriers placed by governments to restrict the

flow of goods and services between trading

nations. When trade barriers exist they protect

domestic producers from international competition

which leads to fair trade.

Advantages

Increased production

Free trade enables countries to specialise in the

production of those commodities in which they have

a competitive advantage.

Production efficiencies

Free trade improves the efficiency of resource

allocation. The more efficient use of resources leads

to higher productivity and increasing total domestic

output of goods and services.

Benefits to consumers

A consumer in the domestic economy gets benefit-

ted. They can obtain a greater variety of goods

and services. The increased competition ensures

goods and services, as inputs, and are supplied at

the lowest prices.

Foreign exchange gains

When a country exports it receives currency from

the countries that buy the goods. This money is used

to pay for imports that are produced more cheaply

overseas.

Employment

Employment will increase in exporting industries.

Economic growth

The countries involved in free trade have increased

living standards, real incomes and higher rates

of economic growth. This is obtained by more

competitive industries, increased productivity, and

efficiency and production levels.

Disadvantages

Structural unemployment may occur in the short

term.

Structural unemployment impacts large numbers

of workers, their families and local economies. It is

difficult for the workers to find employment in

growing industries.

Increased domestic economic instability.

Businesses, employees and consumers are more

vulnerable to impact of the economies.

International markets

The countries whose economies are largely based on

agricultural income faces difficulty in terms of

trade as their export income is much smaller than the

import payments they make.

Developing or new industries

It will be difficult for the developing and new

industries to survive competition. It is difficult to

develop economies of scale in the face of competi-

tion from large foreign companies. This can be

applied to infant industries or developing economies.

Pollution and other environmental problems

Pollution and environmental problems are one of the

most important problems that the companies face, as

companies fail to include these costs in the price of

goods while trying to compete with the companies

operating under weaker environmental legislation in

some countries.

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DEBATE :: FAIR TRADE

GAURAV VIDYARTHI

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NEENU SUNNY

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About the company

Asian Paints was established on 1 February

1942 by Champaklal H. Choksey, Chimanlal

N. Choksi, Suryakant C. Dani and Arvind

R. Vakil. They name their company 'The Asian

Oil & Paint Company', a name that was

randomly picked from a telephone directory.

1945 – Asian Paints touches a turnover of

` 3,50,000

1957 – 66 – The family-owned company makes

the change to a professionally managed organi-

zation

Asian Paints is India's largest paint company

and Asia's third largest paint company, with a

turnover of ` 96.32 billion. Besides Asian Paints,

the group operates around the world through its

subsidiaries Berger International Limited, Apco

Coatings Limited, SCIB Paints and Taubmans.

Asian Paints operates in 17 countries and has 23

paint manufacturing facilities in the world

servicing consumers in over 65 countries.

Today, it is double the size of any other paint

company in India. Asian Paints manufactures

a wide range of paints for decorative and

industrial use.

In 2012 the company restarted its production

plant at Rohtak, Haryana.

Recent news

Asian Paints completes acquisition of Ess Ess

Bathroom Products

Asian Paints to acquire 51 percent stake in

Kadisco Chemical Industry PLC, Ethiopia

Asian Paints' subsidiary to set up plant in

Indonesia

Asian Paints at new high, ASSOCHAM sees 20

percent industry growth

Asian Paints: Board to consider interim dividend

Asian Paints has informed that the High Court of

the Republic of Singapore had on July 15, 2014

approved the proposal of selective capital

reduction, under the Companies Act, of Singap

10

STOCK WATCH :: ASIAN PAINTS

SANDIPA DAS

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VAIBHAV RAINA

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Asian Paints is the largest paints/varnishes company in India. It has the market capitalization

equivalent to 2.22 times the sum of its peers and a sales turnover equal to the sum of its peers. This

is due to Asian Paints enjoying the early market entrant advantage.

Even after strong competition from Nerolac, Shalimar etc Asian Paints has managed to maintain its

market share over the years.

Peer Comparison

Name Last Price Market Cap. (` Cr) Sales Turnover Net Profit Total Assets

Asian Paints 671.8 64,438.91 10,418.78 1,169.06 3,640.44

Berger Paints 353.1 12,234.46 3,384.82 234.25 1,434.69

Kansai Nerolac 1,920.25 10,348.61 3,154.40 206.6 1,474.91

Akzo Nobel 1,316.85 6,144.46 2,417.91 150.22 1,105.30

Shalimar Paints 150.35 284.58 483.04 -2.8 183.24

Jenson Nicholso 4.7 17.59 53.96 35.31 -230.94

13

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Company’s financial figures and estimates

ore, to cancel all the shares held by the minority

shareholders of Berger International Limited.

Asian Paints Ltd has informed BSE that

the Board of Directors of the Company at its

meeting held on July 22, 2014, have approved

the appointment of Mr. Abhay Vakil as an

Additional/ Non-Executive Director on the

Board of Directors of the Company with effect

from July 22, 2014

As we know that Asian Paints is a manufacturing based company so there is a high

inventory turnover ratio (around 6 means around 60 days). Also being a manufactur-

ing company its major expense is in terms of material expense and that is the reason

why the operating profit margin has reduced. We can also see that the number of

working capital days are has increased over the years and that indicates the greater

need to grow capital indicating decrease in cash reserve.

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Investment Valuation Ratios

Face Value 1 10 10 10 10

Dividend Per Share 5.3 46 40 32 27

Profitability Ratios

Operating Profit Margin ( percent) 17.05 17.24 16.81 17.57 19.24

Profit Before Interest And Tax Margin

( percent)

14.77 15.61 15.45 15.97 17.94

Gross Profit Margin ( percent) 15.02 15.83 15.61 16.14 18.11

Net Profit Margin ( percent) 11.03 11.54 11.38 11.61 14.29

Return On Capital Employed ( percent) 47.75 50.38 52.24 55.73 62.94

Return On Net Worth ( percent) 32.46 34.74 38.52 39.24 49.73

Return on Long Term Funds ( percent) 47.75 50.38 54.51 55.79 62.95

Liquidity And Solvency Ratios

Current Ratio 1.18 1.18 1.07 0.93 0.89

Quick Ratio 0.64 0.61 0.57 0.34 0.38

Debt Equity Ratio 0.01 0.02 0.07 0.03 0.04

Debt Coverage Ratios

Interest Cover 66.66 50.6 50.66 74.05 74.27

Inventory Turnover Ratio 6.26 6.06 7.56 7.08 7.95

Debtors Turnover Ratio 14.63 15.82 19.21 18.93 16.71

Fixed Assets Turnover Ratio 3.63 3.23 5.23 4.25 4.68

Asset Turnover Ratio 3.43 3.13 3.55 3.61 3.86

Number of Days In Working Capital 19.42 20.44 15 -2.45 -11.29

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 43.48 42.02 40.03 39.59 39.03

Earning Retention Ratio 56.89 57.98 59.74 60.06 54.64

14

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Highlights

Asian Paints Consolidated Income From Operations Up By 18.3 percent

Asian Paints completes acquisition of Sleek Group.

12 Indian firms in Forbes' 50 best companies in Asia-Pacific.

Asian Paints' OMR5m-Sohar plant to be commissioned by year-end

Asian Paints temporary shuts chemical plant at Cuddalore, Tamil Nadu

References

Retrieved September 2014, from http:// www.asianpaints.com/company-info/about-us/corporate-news-events.aspx

Asian Paints. Stock/Share Market Investing - Live BSE/NSE, India Stock Market Recommendations and Tips, Live Stock Markets,

Sensex/Nifty, Commodity Market, Investment Portfolio, Financial News, Mutual Funds. Retrieved September 2014, from http://

www.moneycontrol.com

Stock performance for last 6 months

The Asian Paints stock (500820,ASIANPAINT,INE021A01026) has been able to overcome the sluggish market

and is constantly increasing and is currently trading between 650-675 .Market experts believe that with a high

demand for real estate and decorations, investors should Hold (those who already have it) or Buy the stock.

15

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The move to disinvest the govt. stake in PSU’s have

got a green signal and the stake sale of govt. in

ONGC, Coal India& NHPC might take place in the

month of October or November. But shares of Coal

India, ONGC and NHPC fell 3-4 percent on

Thursday, a day after the government cleared the

decks for divesting its stake in these companies. The

govt. has decided to sell 5 per cent stake sell in

ONGC, which at current prices, will fetch more than

` 19, 000cr, govt. has also decided to sell 10 percent

stake in Coal India of which the government holds

nearly 90 per cent and 11.36per cent in NHPC,

where at current prices govt. can raise ` 24, 000cr

& ` 3, 000cr respectively. The govt. has a target of

raising ` 58, 425crcr by disinvestment in PSU’s

in current financial year to help plug its deficit.

Recently we saw oil prices fell in Asia after IEA

(International Energy Agency) slashed its forecast

for the world crude demand this year, with public &

private oil marketing companies can cut retail

fuel prices. Since past few years NHPC had faced

problem of cost overrun, deployment of capital in

setting up hydel plant & securing environmental

clearances. On the other Coal India deferred stake

sell due to stiff opposition from trade union, but one

should look upon the completion of three key

railway lines over next 3-4 years which will be a

boost for CIL.Therefore, analyst suggests that even

though the investment in these PSU’s will be good

long term decision but one should treat each

company on its own merits.

IPO NEWS

Snowman Logistics

Equity shares of Snowman Logistics got listed on

September 12 in BSE & NSE and got settled at

` 78.75 on BSE, a premium of 67.55 percent over

the IPO price of ` 47. Snowman Logistics rose over

` 197 cr through issue of 4.2 crore equity shares.

The issue was fixed price issue with a price band of

` 44-47 a share, which got oversubscribed 59.75

times with the total bid for 194.90 crore when

opened for subscription, where QIB subscribed

16.98 times & NII was subscribed 221.79. The

2014-2015 budget allocation of ` 5000 crore for

raising warehouse capacity was done by finance

minister, which shows govt. concern for poor cold

storage facility in India.

INVESTORS CHECK :: IPO

PRAVEEN KUMAR SINGH

IV MBA F1

13

Equity shares of Snowman Logistics got

listed on September 12 in BSE & NSE and

got settled at ` 78.75 on BSE, a premium

of 67.55 percent over the IPO price of

` 47. Snowman Logistics rose over ` 197

cr through issue of 4.2 crore equity

shares.

IPO

16

16

Upcoming Issues:

Shemaroo Entertainment

Shemaroo was founded on October 29, 1962, in

Mumbai, as a book circulating library. The company

is established integrated media content house in

India. Shemaroo with its presence in various

platforms such as television, home, entertainment,

digital new media & other media, which is also

growing continuously with the addition of new

releases as well as through catalogue acquisition.

There initiative as an official channel partner

for Google Inc.’s YouTube is infusing in growth

14

prospect of company. The issue opens on 16th

September, having an issue size of 77, 41,885 with

a price band of ` 155- ` 170 and will be listed on

BSE. The issue has Yes Bank & ICICI securities as

book running lead manager and Link In time is

registrar to the issue.

Ultracab (India) Limited

The company is the fast growing wires & cables

manufacturer & exporter in India, working in the

domain for more than 17 years. The company has

come for the issue with an objective to carry on its

manufacturing business & dealers in power cables.

Security Type Equity

Issue open date 15 September, 2014

Issue Close Date 24 September, 2014

Issue Size (No. Of shares) 22,14,000

Issue Price ` 36 (Face value Rs10)

Listing on BSE SME

Issue reserved for Market Makers 1,14,000 (5.14 percent of the Issue size)

Proportion of offer to Public (Net Issue) 21,00,000(94.86 percent of the Issue Size)

(50 percent of Net Issue to Retail investors

& 50 percent of Net Issue to other

investors)

Pricing Method Fixed Price

Minimum allotment (shares) 3,000

Allotment Lot 3,000 equity shares & in multiple of 3,000

equity share thereafter

Trading Lot 3,000 Equity Shares

Lead Manager Pantomath Capital Advisor Limited

Registrar Bigshare Services Private Limited

17

17

Spill the beans: Your professional journey till

now

I began my journey in SIDBI as an officer trainee at

Bangalore. Started with Microfinance Division then

moved to MSME Credit. Currently handling Credit

appraisal of MSME’s for Ahmedabad Region.

Correlation between you and your work

I feel I am fortunate to get a job of my interest. My

dissertation topic was “Financing of SME’s by

bank” and for the past 5 years I am associated with

the apex institution for development and financing of

SME’s.

Leadership according to you

A leader should “Walk the Talk”. A good leader

should always lead from the front and it makes a

great difference in the organization if he himself sets

an example.

How important is it to take initiative in corporate

world? Have you taken any such initiative?

Please throw some light.

In corporate world it’s all about “Attitude” and this

is what differentiates one from another. Yes it is

important to take initiative and this is how you can

create opportunity for yourself. I did take couple of

initiatives; the notable one was building up Micro

Enterprise Loan portfolio and streamlining the

process from scratch. Ultimately you will be the

biggest gainer irrespective of appreciation by the

senior management.

How can MBA be made more practical oriented?

It’s really a tough question to answer and honestly I

don’t think there is just one simple solution for this.

However, from my experience regularly working on

practical assignments with a business enterprise

helps to appreciate the concepts taught in the

classroom and it also help in preparing well for the

realities of corporate world.

What are you doing to ensure that you continue

to grow and develop in the industry or your or-

ganization?

I update myself regularly by reading newspapers

and magazines. Networking and discussions with my

ex-colleagues and fellow Christites also helps me to

get to know their perspective of things happening

around us. In addition I did complete couple of cer-

tification courses in banking and have plans to study

corporate laws. There is no end to studies I con-

stantly look for new courses in finance, risk and

banking.

Additional courses that you will suggest to our

young MBAs?

Analytics or if you can handle it start with CFA /

CRM (for finance guys)

What is the best thing that happened to you or

you did in Christ?

My entire stay at Christ was my “Best Days of my

Life”. What more I can say.

ALUMNI SPEAK :: SUJAY SURESH SETH

MALLIKA JAIN

IV MBA F1

15

18

18

How is the professional world different from the

life in MBA?

In Professional world there is high expectations

from an MBA and living upto their expectations is a

challenge. There is lots of difference between theory

and practical. You get lots of chances to make

mistakes in MBA life but not in real world. There

will be a price for your every single mistake. As

I said earlier, it’s all about attitude, try to develop a

positive attitude during your MBA course, which

will take you to your chosen destination.

DILEMMA: Many of us still have confusion abo-

16

ut our interest areas or say we have many

interest areas. How does our young Christite deal

with this?

A message for Christites: Today there are plenty of

opportunities in every field. Don’t make your

choices based on what is “hot” today. It may not be

so when you actually get onto it. The best solution to

narrow your interest is “trial and error” method.

Just lay your hands farther deep into your interest

areas and find out whether it still interests you.

Once you do that you get to know a lot of things

about your interest vis-à-vis your strength and

finally you can make a choice.

19

19

Copper is a chemical element having symbol “cu”

and atomic number 29. It is a malleable and

ductile metallic element with very high thermal and

electrical conductivity. Its name is derived from

Latin word cuprum. Pure copper is soft and

malleable; a freshly exposed surface has a

reddish-orange color. It is one of the major

contributors to the national economies of various

countries. It stands at third place in terms of

consumption after steel and aluminum.

Most copper is mined or extracted as copper sulfides

from large open pit mines in porphyry copper

deposits that contain 0.4 to 1.0 percent copper.

Chuquicamata in Chile, Bingham Canyon Mine

in Utah, United States and El Chino Mine in New

Mexico, United States are major producers of

Copper.

Major uses of Copper

Copper is heavily employed in the construction in-

dustry. It is commonly found in buildings because it

is waterproof. This makes it suitable for cladding,

roofing and plumbing. The metal’s high ductility

makes it a practical tool for industrial use. It is the

third most widely used metal in industries next

to aluminum and iron. It is commonly used in

shipbuilding. More than half of the copper produced

is for electricity. Its core functions are transmission

of electricity and power generation.

In MCX (Multi Commodity Exchange) Copper is

measured in units of kilograms, quoted in units of

1kilogram and sold in the lots of 1000 Kilograms.

News about Copper

Copper futures tumbled to an 11-week low recently,

after data showed that Chinese inflation in August

slowed more than expected, underlining concerns

over the health of the world's second biggest

economy. China is the world's largest copper

consumer, accounting for nearly 40 percent of global

demand. Beside this news copper price is correcting

itself after the dollar strengthened on speculation

the United States will raise interest rates earlier than

previously expected. So actually price is correcting

itself and futures are showing a downtrend and one

can go for Buy strategy with proper Target and Stop

loss price.

Current performance of Copper in the

Commodity Market

Copper is currently being traded with a spot price of

` 415.30 (12th Sep 2014).

The future prices on MCX for Copper futures are:

` 423.90/ KG for 28th Nov 2014

References

http://www.mcxindia.com/SitePages/

ContractSpecification.aspx?ProductCode=copper

http://www.moneycontrol.com/commodity/copper-price.html

COMMODITY :: COPPER

ABHISHEK SURYARAJ

IV MBA F2

17

20

20

Sahara Scam is one of the most popular investor

fraud scams of India. It started in November 2010

when SEBI considered the raising of capital through

Optionally Fully Convertible Debentures (OFCDs)

as illegal. OFCDs are the kind of debentures where

the whole value of the deben-

ture is convertible into the equity

shares at the wish of the investor

at the end of a certain period.

Thus, SEBI barred two compa-

nies of the Sahara Group namely

Sahara India Real Estate Corp

(SIREC) and Sahara Housing

Investment Corp (SHIC) as well

as the chief of the Sahara group,

Subrata Roy from raising capital through OFCDs.

The collection was worth ` 17,400 crore involving

30 million investors. According to SEBI, the

collection was not in accordance with the

requirements applicable on the public issue of the

securities. It ordered the two companies of the

Sahara group to refund the money to the investors

and also put a restriction on the promoters to access

the securities market till the issue of further orders

by SEBI.

However, Subrata Roy was dissatisfied with the

orders of SEBI and he decided to approach

Securities Appellate Tribunal (SAT) which also

upheld the orders by SEBI and asked the Sahara

chief to refund the amount to the investors which

was raised through OFCDs with an annual interest

of 15 percent. Meanwhile, warrants were also issued

by Delhi High Court against the Sahara India

Pariwar regarding a Housing Project of ` 25,000

crore in which it was believed that the group

deceived the investors.

Subrata Roy was again dissatisfied with the

judgement of SAT and he finally decided to

approach the Supreme Court of India. The Supreme

Court put a stay on the orders of SAT in favour of

the Sahara Group. In January 2012, it gave Sahara

Group duration of 3 weeks to choose between the

two options – either give a sufficient bank guarantee

or provide properties which are equivalent to the

amount raised through the issue

of OFCDs. However, Sahara

again argued that most of the

settlement with the investors

has already been done. SEBI

claimed that the information

regarding the investors who

were repaid has not been

provided to regulator and thus

the bank accounts of the Sahara

Group were being frozen by the regulator. The

Supreme Court again passed an order to the two

companies of the Sahara group for the refund of

` 24,400 crore to the investors.

On February 2014, the Supreme Court ordered the

arrest of Subrata Roy as he failed to appear before

the court in connection with the refund to the

investors as ordered by the Supreme Court. He was

arrested finally on 28th February 2014 by the Uttar

Pradesh Police. Presently he is in jail and putting

efforts for the grant of regular bail by the court.

The Supreme Court has asked for ` 10,000 crore

deposits for the grant of the bail. In order to arrange

such a huge sum, he is in talks to sell his hotels

in New York and London. But his problems are

increasing day by day as there have been protests

regarding the sale of such properties by Subrata Roy.

He has been given a concession period of 10 more

days in order to finalize the deal for the sale of

hotels.

SCAM :: SAHARA SCAM

18

PRAGYA TAMRAKAR

IV MBA F2

21

21

Cash Reserve Ratio (CRR) is a specified minimum

fraction of the total deposits of customers, which

commercial banks have to hold as reserves either in

cash or as deposits with the Central Bank. CRR is

set according to the guidelines of the central bank of

a country.

The amount specified as the CRR is held in cash and

cash equivalents, is stored in bank vaults or parked

with the Reserve Bank of India. The aim here is to

ensure that banks do not run out of cash to meet the

payment demands of their depositors. CRR is

a crucial monetary policy tool and is used for

controlling money supply in an economy.

CRR specifications give greater control to the

central bank over money supply. Commercial banks

have to hold only some specified part of the total

deposits as reserves. This is called fractional reserve

banking.

The cash reserve ratio measures the liquidity of a

banking institution, and represents the amount of

cash on hand as a percentage of total transactions.

Advantages of maintaining CRR

1) To ensure liquidity and solvency position of

scheduled commercial banks

2) To monitor and regulate the flow of credit given

by commercial banks

3) To ensure a stable flow of credit in the economy

4) When RBI increases CRR the SCB restrict the

flow of credit to the public which sucks the money

from the general public

5) When RBI decreases CRR the SCB grant more

credit loans and other facilities to the general public

which increase the flow of money.

Disadvantages of CRR

1) Affects industrial growth, when commercial

banks have to maintain high rate of CRR with RBI

the restrict the credit to general public who are none

other than business developers, entrepreneurs and

other industrialists who seek pre and post shipment

finance

2) Reduces the standard of living of people when

CRR is increased

3) Banks lose their valuable customers when they

are in a situation not to provide credit to general

public

DID YOU KNOW :: CASH RESERVE RATIO

GAURAV VIDYARTHI

IV MBA F2

19

CRR specifications give greater control

to the central bank over money supply.

Commercial banks have to hold only

some specified part of the total depos-

its as reserves. This is called fractional

reserve banking.

22

22

Introduction

Corporate finance is the area of finance dealing with

the sources of funding and the capital structure of

corporations and the actions that managers take to

increase the value of the firm to the shareholders,

as well as the tools and analysis used to allocate

financial resources. The primary goal of corporate

finance is to maximize or increase shareholder

value. Although it is in principle different

from managerial finance which studies the

financial management of all firms, rather

than corporations alone, the main concepts in the

study of corporate finance are applicable to the

financial problems of all kinds of firms.

Corporate finance provides lending, leasing and

other financial and advisory services to the middle

market with a focus on specific industries,

including: Aerospace & Defence, Business Services,

Communications, Energy, Entertainment, Gaming,

Healthcare, Industrials, Information Services &

Technology, Restaurants, Retail, Sports & Media,

and Transportation.

Regulatory Environment

The body corporate has a number of financial pow-

ers and duties, which include:

Levying contributions to cover general admini-

stration, maintenance and insurance

Levying contributions for any of the funds that

the body corporate may have

Borrowing money

Investing money

FINANCIAL SERVICE INDUSTRY ANALYSIS :: CORPORATE FINANCE

20

MAYANK KAUSHIK

PRAVEEN SINGH

NIVEDITA PALLAVI

PRAGY TAMARAKAR

VAIBAV RAINA

MALLIKA JAIN

Recovering money owed

Charging penalty interest

Paying the corporates expenses and taxes

Keeping financial records

Preparing annual financial statements.

The corporate finance in India is regulated under

Companies Act 2013, accounting Standards and

income taxes is governed under Income Tax Act

1961, notifications and circulars issued by Central

Board of Direct Tax (CBDT) and annual finance

acts. However the independent regulators in

field of banking, insurance, capital market, and

commodities market also play a major role. The

major regulatory bodies in India include:

Reserve Bank of India (RBI)

Securities and Exchange Board of India (SEBI)

Forward Markets Commission (India) (FMC)

Insurance Regulatory and Development

Authority (IRDA)

Pension Fund Regulatory and Development

Authority (PFRDA)

Ministry of Corporate Affairs (MCA)

In India , after implementation of new companies

act, a number of overlaps was seen in areas

of related-party transactions, issue of preferential

shares, corporate social responsibility, revision in

financial statements, provisions related to securities

in listed companies, cross-border mergers, and

auditor assignment.

To cite a few issues, SEBI already had insider

trading provisions for listed companies, which

would also cover unlisted companies. However,

the new Companies Act has included several key

functionaries in the definition of the insider. SEBI

regulations need to be amended accordingly. SEBI

can provide for stricter terms, thresholds and

penalty for listed firms, but these can’t be lower

23

23 21

than what is provided in the Companies Act.

Earlier the Companies Act did not provide

definition for related parties, but now the act had

widest definition of related parties and the threshold

for ownership was different between income tax act

and Companies Act.

Thus in India, various areas of the corporate finance

is governed by various acts under various boards;

the government is trying to avoid overlaps between

various acts and bodies.

Key Success Factors

With the advance in time, the world is turning into a

global village with disappearing national boundaries

and operations getting global with each decisions

taken by the firms not only impact its current status

but also its future prospects as industries are

continually exposed to external as well as internal

risk. It has become extremely important for busi-

nesses to leverage technology in order to achieve a

superlative business performance. Corporate Finance

being a key to successful business is an indisputable

fact. The corporate finance is the study of financial

markets & their interaction with business and also

helps firm in creating intrinsic value. In recent years,

with the cut throat competition on global platform,

merger & acquisition has become a fashion today. A

narrow-minded vision is damaging to organisation’s

success in long term, therefore various alternative

suggested on M&A, debt & capital, valuation etc.

can help organization to maintain competitive edge

in long term. The corporate finance services

provided by the organizations like Deloitte, E & Y,

PwC & KPMG are M&A advisory, debt &

capital advisory, private equity advisory, project

finance & public private partnership is very crucial

for the successful operation. In 2011, Pricewater-

houseCoopers provided financial advice on 306

deals globally, valued at more than $24 billion,

of which over 49 percent were cross border. The

organisation need for rapid access to new market,

assets, technologies, intellectual property or raising

money for diversification, expansion etc. has

been an opportunity for corporate finance and

acted as a key success factor. Corporate finance

has successfully been able to deal with potential

issues like making acquisition requiring debt fi-

nance as done in the case of Tata JLR, TATA

Corus acquisition in 2007, refinancing existing

facilities, and need for additional funding for the

business strategy or operation.

Following the sharp rebound in deal volumes in

Q2, Deloitte forecasts a continued uptick for Q3

2014 bolstered by strong economic results and

renewed market confidence & Deloitte also ex-

pects global deal volumes to reach around 8,350

by the end of Q3 2014, up 9 percent over the

same period in 2013 which need the application

of corporate finance & provides opportunity too.

Corporate finance provides structures approach in

various phases of business life cycle by defining

the risk, assessing & weighing the probability and

impact on business drivers and defining actions

to mitigate them.

Major Players

The four key players operating in this industry

are Ernst & Young, Deloitte, KPMG and Price-

waterhouseCoopers. Ernst & Young operates 700

offices across 140 countries and employs 140,000

people worldwide. It is ahead of KPMG in terms

of revenue among the big four. Apart from ac-

counting services, the company also provides ad-

visory services to emerging companies, HR solu-

tions, and legal services.

PricewaterhouseCoopers (PwC) operates more

than 770 offices across close to 160 countries.

The company employs almost 130,000 people

worldwide and recorded a 10 percent increase in

2011, exceeding revenue of $29 billion. PwC

provided services to almost 420 of the Fortune

Global 500 in 2011, and to over 440 of the FT

Global 500 in the same year.

24

24 22

Recent Trends

Corporate finance is the area of finance dealing with

the sources of funding and the capital structure of

corporations and the actions that managers take to

increase the value of the firm to the shareholders, as

well as the tools and analysis used to allocate finan-

cial resources. The primary goal of corporate finance

is to maximize or increase shareholder value.

The following key industry trends are expected to

drive Retail Banking, Commercial Banking, Wealth

Management, Insurance and Capital Markets are:

Retail Banking

Redefinition of the banking value chain to

identify opportunities and to respond to

challenges from the emergence of specialist

players and captive-finance providers – espe-

cially in product manufacturing and distribution.

Better understanding of customer needs and

risks, to enable banks to improve their product

and service offerings at appropriate price points,

allowing them to capture and lock customers in

and improve profitability.

Faster response to government and regulatory

changes.

Step-change improvements to halt the decline in

efficiency that many banks have suffered over

the last few years.

Adoption of segment-aligned operating models

to provide differentiated levels of service to each

customer segment, depending on its needs and

value to the bank, minimizing cross-

subsidization and profit leakage.

Expanding into the emerging markets, where

retail banking and credit cards were previously

the preserve of the wealthy is becoming

increasingly important.

Commercial Banking

Transitioning from a product-focused to cus-

tomer-focused organization to enable customers

to be served comprehensively at the relationship

level.

Improving operational efficiency allows banks to

reduce costs and improve profitability – but the

risks behind this are significant.

As market conditions and financial regulations

tighten, commercial banks need to substantially

step up the way in which they deliver risk man-

agement across their organizations.

Wealth Management

Deliver new products and services effectively, to

set them up to better compete in a rapidly chang-

ing environment.

Clearly define the boundary between premier

and private banking in order to serve customers

effectively – and, as the economic downturn

turns into a growth cycle, helping integrated

banks effectively to turn premier customers into

private banking customers.

Offer personal services, tailored to customers’

precise needs, as financially-savvy customers are

increasingly making their own investment deci-

sions and disinter mediating the wealth manage-

ment service.

Insurance

Customer needs and demographics are changing:

insurers need to think about how they respond to

customers’ demands for better products and ser-

vices in new demographics – and how this will

impact delivery channels, servicing, and technol-

ogy.

The traditional insurance channels are changing:

insurance brokers are no longer as critical in the

market as they once were. New channels, such as

the banc assurance model, web 2.0 and mobile

technologies are changing the way customers

access insurance.

In the face of increasing customer and distributor

demands, insurers are rethinking how they can

better serve the market and position themselves

25

25

closer to their customers.

Legacy books are becoming increasingly costly

to operate effectively. There are options

available to insurers to better manage these

legacy policies.

Insurers are re-thinking their approach to risk

management. Restructuring risk-management

functions and processes can substantially

improve their effectiveness in the face of

increasing claims and financial losses.

Capital Markets

Regulatory reform will substantially change the

way banks think about their credit, market, and

portfolio risks.

Changing the risk organization to deliver these

effectively will need more than just a re-shuffle

of people.

Industry convergence and market structure

shifts, which have positioned participants around

customer results; the redefinition of the business;

overcapacity and consolidation on a global,

regional, and local scale; and several de novo

value chain plays.

Increased demand for customer-focused

organizations that offer tailored value

propositions and high-quality customer service

across all channels.

Pressure to extract value from the operations/

technology processing environments, recogniz-

ing technology as a driver of industrialization,

which has an impact on innovation and scale and

unbundles manufacturing and distribution

Evolving organizational models, which are

separating manufacturing and distribution and

redefining the value chain

Shifts in capital flows to emerging markets and

new asset classes.

Key Skills Required

Analytical skills

Strong quantitative skills for the management

of finance

Team working skills

Problem solving skills in order to deal with

the complexity of the numbers.

Knowledge and awareness regarding the

corporate environment

Ability to manage various kinds of corporate

risks

Ability of coping up with changes and

working in a flexible work environment.

Forecasting and prediction skills

Scope of MBA Finance

Corporate finance is a highly relevant area for the

MBAs in Finance. Many of the top universities in

the world offer corporate finance as a specialization

for finance students. It is widely used in training the

individuals to become future financial experts

and executives for handing the global enterprises.

Individuals can work in the corporate finance

function of any company to look after the manage-

ment of funds, management of the working capital

as well as dealing with other institutions like banks

on behalf of that company. Corporate finance is also

considered as one of highest employment areas for

the students of MBA finance. They typically work

for conducting an intensive analysis and suggesting

the organization for capital investments and various

suitable options for financing. They are also engaged

in the long term financial planning of the company.

23

Corporate finance is a highly relevant area

for the MBAs in Finance. Many of the top

universities in the world offer corporate

finance as a specialization for finance stu-

dents. It is widely used in training the indi-

viduals to become future financial experts

and executives for handing the global en-

terprises.

26

26 24

Name of the Certificate Description Fees URL

Certificate in Corporate Finance

This certificate is suit-able for anyone who wants to work in the field of corporate fi-nance. There are no entry requirements for this certificate.

£240 http://www.icaew.com/en/qualifications-and-programmes/cfqualification/study-route/certificate-in-

corporate-finance

Project Finance Module The course not only gives broad based knowledge about pro-ject finance but also acquaints the student with the financial deci-sion making process.

Rs. 1,686 http://www.nseindia.com/education/content/

module_ncfm.htm

Certificate in Corporate Finance & Funding

This certificate will pro-vide with the knowl-edge and skills to par-ticipate in the financial decision process, and provides unique insights into how such decisions are translated into ac-tion in treasury.

£1,320 http://www.treasurers.org/

qualifications/certcff

Courses and Certifications

References Strategy (Formerly Booz & Company) - A global management and strategy consulting firm. Key trends. Retrieved September

2014, from http://www.strategyand.pwc.com/global/home/what_we_do/industries/financial_services/fs_key_trends

KKR. KKR | Global Macro Trends. Retrieved September 2014, from http://www.kkr.com/company/insights/global-macro-trends

-12

McKinsey & Company | Home Page. Corporate Finance articles and insights | McKinsey & Company. Retrieved September

27

27

1. What are the certificates issued by the US

depository bank representing the shares of a

foreign company?

2. What does Chalu Upla mean in stock trading?

3. Which business magazine has been sold by ABP

to an undisclosed buyer?

4. Name the index which used to detect the Bullish

or Bearish trend in stock market?

5. Name the first Public Sector share quoted on the

Bombay Stock Exchange?

6. Name the First women President of a Stock

Exchange in India?

7. What is the value of a forward contract at its

initiation?

8. Is it true that Treasury Bills are money market

instrument?

9. Which Company acquired Paladion Networks in

June 2014?

10. Which Country on 16th June 2014 cut off the gas

supplies to Ukraine over the due payment?

11. Who is known as “Orcale of Omaha?

12. In India where is the paper for currency is

manufactured?

13. Which Country is the only country having Paper

currency and no coins?

14. First Indian Company to reach five lakhs crore

market cap?

15. How many National Stock Exchanges in India

QUIZ

25

PAVAN L

IV MBA F1

ABHISHEK SURYARAJ

IV MBA F2

Answers of July edition

1. Milk and Milk products

2. 75 percent

3. FDI limits across various sectors

4. WPI

5. 10 rupees

6. 100 rupees

7. 2010

8. 40 percent

9. Coal

10. $1trillion

11. 5 percent

12. 72 percent

13. 1.5 lakhs rupees

14. 5000 crore rupees

15. 49 percent

28

28

Across

3. A market with a low number of buyers and

sellers.

4. A dividend that is owed to stockholders of

re cord but has yet to be distributed.

7. Total and complete ownership of an asset

or property.

12. The process of testing a trading strategy

on prior time periods.

13. A status of financial health in which

expenditures exceed revenue.

14. A type of liability that does not exceed the

amount invested in a partnership or limited

liability company.

15. A derivative used to transfer inflation risk from

one party to another through an exchange of

cash flows.

Down

1. A type of home loan in which the interest rate is

not fixed.

2. The solicitation of a potential customer with

whom a sales representative or business has had

prior contact.

5. A derogatory term used to describe people or

companies that misuse patents as a business

strategy

6. A mathematical ratio that illustrates and

summarizes the current financial condition of

a company

8. The actual amount of return earned on a

security investment over a period of time.

9. A tactic of quickly entering and withdrawing

large orders in an attempt to flood

the market with quotes that competitors have

to process, thus causing them to lose their

competitive edge in high frequency trading

10. The visible and physical decline of a property,

neighbourhood or city due to a combination of

economic downturns, residents and businesses

leaving the area, and the cost of maintaining the

quality of older structures.

11. A security backed by life insurance which is

derived by pooling together a number of

transferable life insurance policies.

CROSS WORD

26

NEENU SUNNY IV MBA F2

Answers

ACROSS DOWN

3) Thin Market 1) Variable Rate Mortgage

4) Unpaid Dividend 2) Warm Calling

7) Absoulte Interest 5) Patent Troll

12) Back Testing 6) Key Ratio

13) Budget Deficit 8) Realized Yield

14) Limited Liability 9) Quote Stuffing

15) Inflation Swap 10) Economic Blight

11) Death Bond

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