FinXpress StartUp in focus:

ENNOVASYS

3

Markets this Week 5

News of the Week 6

CAN YOU SOLVE IT? 8

Company in Focus:

Ford Motor Company

2

JANUARY 22, 2012

Sources of Data:

> HDFCsecurities

> Economic Times

> The Hindu

> Rediff Money

> MoneyControl.com

> Financial Express

> Indiapetro

Inside this issue:

Institute Of Management Technology

Ghaziabad

Ford Motor Company is an American multinational auto-

maker based in Dearborn, Michigan. The automaker was

founded by Henry Ford and incorporated on June 16, 1903.

Ford is the second largest automaker in the U.S. and the

fifth-largest in the world based on annual vehicle sales in

2010. At the end of 2010, Ford was the fifth largest auto-

maker in Europe. Ford is the eighth-ranked overall American

-based company in the 2010 Fortune 500 list, based on global revenues in 2009 of $118.3 billion. In 2008, Ford

produced 5.532 million automobiles and employed about 213,000 employees at around 90 plants and facilities

worldwide. In 2010, Ford earned a net profit of $6.6 billion.

Ford standards

Starting in 2007, Ford received more initial quality survey awards from J. D. Power and Associates than any other

automaker. Five of Ford's vehicles ranked at the top of their categories and fourteen vehicles ranked in the top three.

Ford Fiesta, S-MAX and Galaxy win consecutive awards for used car reliability from industry safety authority DEKRA.

Ford Deals

In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the

UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. In 2010

Ford sold Volvo to Geely Automobile. Ford discontinued the Mercury brand after the 2011 model year.

Ford Manufacturing Strategy

Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial

workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford's

methods came to be known around the world as Fordism by 1914.

Ford India

Established in 1995, Ford India is a wholly owned subsidiary of Ford Motor Company. Ford India manufactures and

distributes automobiles and engines made at its modern integrated manufacturing facilities at Maraimalai Nagar,

near Chennai. Ford has ` 1700 crore in the manufacturing plant , equipped with state-of-the-art Ford technology and

employing about 2,000 people. The company's models include the Endeavour, Fiesta and the Figo. In 2011 Ford In-

dia sold 96,270 domestic wholesale units, a 15 percent increase which outpaced the single-digit industry growth

forecast.

Ford's operations in the country also include Global Business Services providing business services in the areas of IT,

accounting and finance, financial services and automotive operations support, global analytics and engineering ser-

vices. These operations serve Ford's business units and skill teams globally out of centers in Chennai and Coimbatore.

Ford’s businesses in India boast a 10,000-strong workforce.

Some of the latest Ford initiatives in India includes

Ford C&E (Conservation and Environment) Grants Programme.

Ford India initiatives in education and healthcare.

Page 2 FinXpress

Company in Focus : Ford Motor Company

Ennovasys is an Enterprise Mobility company helping its customers acquire real-time intelligence using wireless

technologies like RFID, GPS, Mobile and NFC. It is one of top few companies globally to offer RFID-GPS integrated

solutions. Real-time intelligence facilitates enterprises achieve process automation, reduce costs, improve utilization and

increase overall productivity. Offered solutions are cloud-enabled for quicker implementation and better cost-efficiency.

Ennovasys is lead by a seasoned management team.

Enterprise Products

Mobile Enterprise Application Platform (Mint)

Mint is a Mobile Enterprise Application Platform (MEAP) that simplifies the development, deployment and management

of mobile enterprise applications. It addresses the difficult mobile application challenges of back office integration,

secure access for mobile devices in the enterprise, reliable push data synchronization and support for multiple device

types. Mint supports all major Mobile platforms like iPhone, Symbian, Windows Mobile, Android and Blackberry. Mint is

an ideal solution for quickly developing and deploying applications like, mobile time tracking, field service management,

field sales automation, inventory management and electronic proof of delivery. Mint is offered through the cloud.

Enterprise Mobility Solution

Enterprise Mobility is transformative technology that

brings down the information walls of the enterprise and

makes enterprise data more portable and readily available

to mobile workers. Ennovasys takes this a step further by

integrating a variety of wireless location-based

technologies like RFID, GPS and Mobile that helps answer

the question "where are my assets at this time and how to

improve my business processes using this information".

The assets covered include enterprise physical assets,

people and products.

Ennovasys is one of the few companies globally to provide an integrated approach combining RFID, GPS and Mobile

technologies and offers its solutions on the cloud for cost effectiveness and quicker deployment. The solutions offered

either as a complete suite or as individual applications comprise:

1. TrakFleet - vehicle fleet tracking

2. TrakForce - tracking field sales force or service technicians

3. TrakSchool/People - tracking school children at educational institutions or employees at companies

4. Global Track & Trace - tracking containers, goods in transit and other assets.

These solutions are mainly targeted towards small and medium enterprises. These solutions are built on .net

technologies and are packaged with the right mix of hardware and services.

Page 3 FinXpress

StartUp in Focus :

ENNOVASYS

Customer Acquisition

Customer acquisition for a small company is always a challenge and its approach has been to use a combination of push

(direct marketing, mailers etc.) and pull (social media, SEM, advertising and PR, apart from referrals by existing satisfied

customers). If the company goes in for funding by external investors, one of the main uses for the funds would be for

customer acquisition by investing more heavily in marketing and for hiring top-notch selling talent.

Awards and Recognition

Ennovasys received a special award from IIM, Ahmedabad in the TATA-NEN Hottest Startups Contest for 2008.The

company was also profiled by Dare Magazine in a feature on startups titled "75 Startups you can bet on" and included

among the "Top 25 Emerging Technology Companies" by The Smart Techie Magazine. TechGig also covered the company

in an article titled "Ennovasys: Mastering intelligence in real-time”

Page 4 FinXpress

StartUp in Focus continued.. . ENNOVASYS

Page 5 FinXpress

Markets this week The week gone by saw the Nifty taking out its near term resistances of 4899 and moving up further. It was the third

consecutive week of gains with the Nifty gaining 3.75% W-o-W. Reflecting the positive sentiments, market breadth was

positive in three out of the five trading sessions of the week.

The top gainers this week were Bajaj Auto and ICICI Bank with gains of 6.18% and 5.81%. The biggest losers were ITC and

M&M with losses of 3.59% and 2.67%.

KEY HIGHLIGHTS THIS WEEK

• China's Economy expanded at the slowest pace in 10 quarters as export demand moderated and a prolonged campaign

against consumer and property-price gains cooled growth. Gross domestic product, the value of all goods and services

produced, rose 8.9 percent in the fourth quarter from a year earlier.

• India's inflation eased sharply in December. The wholesale price index rose 7.47% in December from a year earlier,

compared with November's 9.11% increase, as food prices fell.

• India's December exports rose an estimated annual 6.7% to $25 bn, while imports for the month were at $37.8 bn,

leaving a trade deficit of $12.8 bn. Exports between April-December rose 5.8% to $217.6 bn. Trade Secretary Rahul Khullar

said that that the trade deficit for the full fiscal year that ends in FY12, was estimated between $155 bn to $160 bn.

• All the indices except FMCG, which lost 0.9% gained during the week. The top sectoral gainers for the week ended Jan

20, 2012 were BSE Realty, Oil & Gas, Bankex and Capital Goods, which rose by 8%, 6.4%, 5.9% and 5.5% respectively.

• Forex reserves dipped $1 billion during the week ended January 13. According to the latest figures released by RBI, total

foreign exchange reserves are at $292.5 billion as on January 13.

• It ended at 50.32/33 to the dollar, slightly down from Thursday's close of 50.25/26 .The currency extended this month's

gain to 5.4%, the best performance among Asian currencies.

• For the week, the Dow rose 2.4 percent and the S&P500 gained 2 percent as investors showed some relief that earnings

didn't reflect the worst elements that battered the market in the last year, especially given the problems in the euro zone

that have been weighing on investor sentiment.

• Gold extended losses for the second straight day by losing ` 100 to ` 27,790 per 10 grams in the bullion market here

today, while silver continued to rise for the fifth day in row and gained ` 50 to ` 53,550 per kg.

OUTLOOK FOR THE WEEK

With the markets rallying for the third consecutive week, the short term trend remains up. Immediate upside targets for

the Nifty in the coming week are at 5100. The current uptrend would reverse if the Nifty moves below the immediate

supports of 5004.

NIFTY SENSEX

Page 6 FinXpress

News of the Week

Kodak files for

bankruptcy, secures

$950 million lifeline

Eastman Kodak Co, which

invented the hand-held camera

and helped bring the world the

first pictures from the moon, has

filed for bankruptcy protection,

capping a prolonged plunge for

one of America's best-known

companies. The more than 130-

year-old photographic film

pioneer, which had tried to

restructure to become a seller of

consumer products like cameras,

said it had also obtained a $950

million, 18-month credit facility

from Citigroup to keep it going.

The loan and bankruptcy

protection from US trade

creditors may give Kodak the

time it needs to find buyers for

some of its 1,100 digital patents,

the key to its remaining value,

and to reshape its business while

continuing to pay its 17,000

workers. Kodak once dominated

its industry and its film was the

subject of a popular Paul Simon

song, but it failed to embrace

more modern technologies

quickly enough, such as the

digital camera -- ironically, a

product it even invented. Its

downfall hit its Rust Belt

hometown of Rochester, New

York, with employment there

falling to about 7,000 from more

than 60,000 in Kodak's heyday.

Its market value has sunk to

below $150 million from $31

billion 15 years ago.

General Motors of US

reclaims the title of the

world's biggest maker

of cars as Toyota skids

General Motors again became

the world's biggest automaker

on Thursday, successfully

emerging from its 2009

bankruptcy woes to overtake

German giant Volkswagen and

Japanese Toyota in the race to

the top. The US giant sold 9.03

million vehicles globally in 2011,

up 7.6 percent from a year ago,

as it cashed in on a recovery in

the North American market

which delivered a 11.4 percent

sales jump to 2.9 million. The

carmaker also posted strong

results elsewhere, with European

sales up 4.4 % and 3.9 % in South

America. Its best-selling marque

Chevrolet posted record sales of

4.75 million units, making up

almost half of the global total.

The results marked GM's sharp U

-turn from near demise in 2008,

when the global financial crisis

forced it to turn to the US

government for a bailout. In June

2009, it filed for bankruptcy

which allowed it to change

labour contracts and dump

brands, dealers, workers and

plants in the process. It emerged

from bankruptcy much leaner

and more focused, and in

November returned to the stock

exchange in a share offering that

raised a massive $23.1 billion,

helping it to pay back half of its

government debt.

ITC Q3 net up 22.5% at

`̀̀̀ 1,701 crore

Tobacco, hotel and consumer

goods enterprise ITC Ltd

reported a 22.5% jump in its net

profit for the third quarter ended

December, but lower-than-

expected volume growth in

cigarette business drove its share

price down 3.6% on the Bombay

Stock Exchange. The country's

largest cigarette maker reported

third quarter net profit of `

1,700.98 crore on net sales of `

6,195.43 crore, which grew

14.2% year-on-year, driven by

cigarettes, branded packaged

foods, personal care and

agri-business. Its hotel business,

however, reported a 1% fall in

revenues. While ITC's mainstay

cigarette business grew 16% to `

3,232.83 crore and reported 20%

higher profit at ` 1,844.2 crore,

this was mainly driven by price

increases and launch of premium

brands like Player's, Classic Citric

Twist and Hero. Cigarette volume

grew 5% during the quarter,

falling short of market

expectation of 7-8%. Market

analysts such as Motilal Oswal's

A m n i s h A g g a r w a l a n d

Sharekhan's Kaustubh Pawaskar

also say that ITC's profit was

partly driven by a 48% jump in

other income. Hence the 3.6%

drop in ITC scrip to ` 201.35 on a

day when BSE Sensex rose 95

points to end at 16,739. The

company's operating margins

improved by 124 basis points and

analysts expect its operating

profit to grow 18-20% in the next

quarter. ITC’s biggest growth

driver was the personal care and

packaged food segment where

the composite revenue growth

was 24%.

Vodafone verdict:

Need for extensive

change in tax laws

The Supreme Court has ruled

that Indian tax authorities have

no jurisdiction over Vodafone's

purchase of Hutchison's interest

in its mobile telephony joint

venture in India with Essar, as

the deal was executed through

sale of a holding company

registered in the Cayman Islands.

The ruling is a setback not only

for India's fight against tax

havens but also for taxation in

general. For, the court's

privileging of form over

substance, maintaining the

corporate veil, could lead to

elaborate and extensive tax

planning that results in

enormous leakage of revenue.

The judges are interpreting the

law as it stands. India needs to

rewrite its tax laws, to enable it

to deal with commercial practice

in a globalizing world. If every

ABC Ltd operating in India is

henceforth not to be owned

through a holding company

registered in some tax haven or

the other, so as to permit

acquisition by XYZ Ltd through its

holding company registered in

another tax haven without

paying any capital gains tax, the

language of tax law will have to

make it clear that what counts is

whether value accrues to the

company changing ownership

because of its economic activity

in India. The tax dispute could

have been avoided had Vodafone

used the facility of seeking

an advance ruling on the

transaction. However, the

authority for advance ruling

works within a timeframe that

can only be described as other

-worldly. This must change.

General Anti-Avoidance Rules

that guard against sharp tax

practices, without bestowing

arbitrary powers on the taxman,

need to be framed in the coming

Budget. A treaty override - where

domestic law overrides a

bilateral tax treaty - would also

be in order.

India to grow at slow-

est pace in two years,

aggressive rate cuts by

RBI seen

India's economy will grow at its

slowest pace in two years this

fiscal year, as tight monetary

policy and a logjam in

government policy making stifles

investment. Growth estimates in

the current fiscal have been cut

four times in a row and it is now

expected to expand at 7 % p.a. in

the year ending March. Just

three months ago, economists

Page 7 FinXpress

News of the Week continued.. .

had predicted GDP would grow

by 7.6 % in the same period.

Policy is the main reason for the

deceleration in growth. For the

quarter ended September last

year, the economy grew at 6.9 %,

its weakest pace in more than

two years. RBI’s aggressive policy

tightening since March 2010, to

fight stubbornly high inflation,

has steadily reduced investment

activity and is now threatening to

squeeze growth to levels last

seen during the financial crisis in

2008-2009. The government is

also saddled with a cartload of

legislation it is not able to pass,

owing to opposition from rival

political parties and indifference

from its own coalition partners.

Prominent among them is a bill

to increase the permissible limit

of FDI in the retail sector. Foreign

fund inflows, a major driver of

Indian stocks, dried up in 2011

with net outflows in excess of

$450 million, from record inflows

of more than $29 billion in 2010.

As a result, the benchmark stock

index fell by almost 25 % in 2011

making it among the world's

worst performers. In the same

period, the Indian rupee lost

about 19 % of its value against

the US dollar owing to the capital

flight from the economy.

Food inflation at

0.42%, RBI may not cut

key rates

Food inflation remained in the

negative zone for the third

straight week, at (-)0.42 % for

the week ended January 7,

mainly due to fall in prices of

onion and vegetables. Food

inflation, as measured by the

WPI, was at (-)2.90 % in the

previous week. It was above 16

% in the corresponding week of

2011. However, experts feel that

the decline in prices of food

articles will not be enough to

prompt the Reserve Bank to cut

key interest rates at its

forthcoming monetary policy

review on January 24. Onion

prices were lower steeply by

75.42 % year-on-year during the

week under review, while potato

prices were down by 23.84 %.

Prices of wheat also fell by 3.57

%. Overall, vegetables were

45.81 % cheaper during the week

under review than in the same

period last year.

Jet Airways woes

continue, posts `̀̀̀ 101

crore loss

Jet Airways posted its fourth

straight quarterly loss as higher

fuel costs, weak rupee and stiff

competition from low-cost

carriers continued to hurt the

country's largest airline by

market share. The Naresh Goyal-

promoted airline posted a `

101.22 crore loss for the October

-December period against a `

118 crore net profit in the year-

ago period. High fuel prices

together with depreciating rupee

have pulled down the operating

results to an extent. However,

yield improvements due to

seasonality and narrowing gap

between demand-supply

imbalances have helped the

airlines to post operating profits.

The disappointing results reflect

the state of domestic aviation

sector, which is reeling under

debts. The Centre for Asia Pacific

Aviation, or Capa, has estimated

that domestic carriers will post a

combined loss of $2.5 billion in

the current fiscal. Indian airlines

lose $25-30 every time a domes-

tic passenger boards an aircraft,

it said. A sharp fall in the rupee,

too, has contributed to the

losses. If the airline industry does

not make structural changes, like

pricing tickets at the right cost,

FY13 could be as bad as FY12.

Cartoons

Solve it Now!

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http://www.facebook.com/FinNiche

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Page 8

**Rush in your entries to : finniche.imt@gmail.com

The right entries will get their name featured in the

next issue of FinXpress. So hit the quiz fast & get

yourself visible among 1000 odd in the campus.

Set A

1. Which US co. Owns the brands Diesel, Timberland,

Ernemildo Zegna etc ?

2. What role would Virginia Rometty would have got

into wef January 1, 2012?

3. What relevance does Vienna hold for petroleum

exploring countries?

Set B

Match the FDI Caps with their various sectors( as

effective on October 1, 2011):

1. Petroleum & Natural Gas a.74%

2. Direct–to-Home b.26%

3. ISP with gateways/not providing gateways c.49%

4. Terrestrial Broadcasting FM d.100%

CAN YOU SOLVE IT ?

Feel free to write to us at : Drop in your suggestions to the editorial team :

finniche.imt@gmail.com Magazine design/news : ameybadkar@hotmail.com

Articles/quiz : debjyoti.chanda89@gmail.com

LAST ISSUE’S RIGHT ENTRIES WERE FROM :

Sambhav Jain

LAST WEEK’S ANSWERS

SET A

a. Reebok - Vector

b. Nike - Swoosh

c. Adidas - Stripes

d. McDonalds - Golden Arches

e. Starbucks – Siren

SET B

1. Avon

2. SEBI chiefs

3. Union Bank of India