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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