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Companies in FOCUS: DELOITTE ERNST & YOUNG DEUTSCHE BANK TEXAS INSTRUMENTS Term of the week: ETF
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Summers Fever
With seniors engrossed in their preparation for upcoming end term exams,
juniors after having a happy vacation at home enthusiastically entered into
term 2. Now it’s time for them to make it more enjoyable by cracking the
summer destination where they love to work at.
In view of upcoming summers, FinXpress is now coming up with content
which is more informative, engaging and helpful for juniors. So, slight
changes have been made to the regular pattern. For the time being, sections
which regularly engage readers, “In Focus” and “Opinion” are being re-
moved and information of various companies are provided. Further, “Fun
Corner” section has been replaced to incorporate an interesting section of
tips/experience to familiarize juniors with senior’s experiences of their
selection process.
Economic situation of our country continues to worsen with global factors
such as tensions over Syria and the prospect of U.S. Federal Reserve having
an effect on the depreciation of rupee to an ever time low of 68.80 which
has now recovered to 65.7. And do read “Term of the Week” ETF (Exchange
Traded Fund) and gain insights into these 4 companies Deloitte, Texas
instruments, Deutsche Bank, Ernst & Young. Make the most out these
editions for the coming 3 weeks.
Happy Reading!!!
Regards,
The Editorial Team
FinNiche Club
From The Editorial FinXpress
Volume 6
Sep 1, 2013
FinXpress
Disclaimer: FinXpress takes no responsibility for the opinions expressed in the magazine.
FinNiche
September 2013 Page 1
CONTENTS
From The Editorial
Deloitte
Ernst & Young
Texas Instruments Inc
Deutsche Bank
Term of The Week
Market This Week
News
Tips & Experiences
Page 2
Companies
Deloitte Consulting is a part of Deloitte
Touche Tohmatsu Limited (DTTL), a
limited liability private company in UK.
Under Deloitte, there are many
independent member firms in different
geographical areas. Deloitte DTTL is
considered as a Professional Services
Network which is a network of independent
firms who come together to cost-effectively
provide services to clients through an
organized framework. DTTL is considered
one of the Big Four Professional Services
firms along with PricewaterhouseCoopers
(PwC), Ernst & Young, and KPMG.
DTTL provides services in audit, tax,
consulting, enterprise risk and financial
advisory services. It by itself does not
provide services to its clients. DTTL is the
second largest professional services
network in the world by revenue and has
200,000 employees in more than 150
countries. In FY2012, Deloitte earned a
record USD 31.3 billion in revenues. Its
global headquarters are located in New
York City, United States.
In India, the consulting services are
provided by Deloitte Consulting India
Private Limited which provides consulting
services to financial services, leisure,
tourism and hospitality, manufacturing,
technology and media and transport and
infrastructure industries.
History of Deloitte
Deloitte was founded in 1845 by William
Welch Deloitte who had opened an office
in Basinghall Street in London. He was the
first person to be appointed as an
independent auditor of a public company.
Deloitte is considered one of the fathers of
the accountancy profession. Haskins &
Sells was an accounting firm established in
New York in 1896 by Charles Waldo
Haskins and Elijah Watt Sells. In 1952, the
US firm of Deloitte merged with Haskins
and Sells.
In 1989, Deloitte Haskins & Sells in the
USA merged with Touche Ross in the USA
to form Deloitte & Touche. In 1995, the
partners of Deloitte & Touche decided to
create Deloitte & Touche Consulting
Group, now known as Deloitte Consulting.
Services provided
The services Deloitte provides in India are:
1. Audit & Enterprise Risk: where it
provides the organization auditing and
advisory services, as well as offerings in
enterprise risk management, information
security and privacy, data quality and
integrity, project risk, business continuity
management, internal auditing and IT
control assurance.
2. Tax: where it helps clients increase their
net asset value, undertakes the transfer
pricing and international tax activities of
multinational companies, minimizes their
tax liabilities, implements tax computer
systems, and provides advisory of tax
implications of various business decisions.
3. Consulting: where it provides services in
the areas of enterprise applications,
technology integration, strategy &
operations, human capital and business
process solutions.
4. Financial Advisory Services: where they
provide advisory services in corporate
finance, transactions, valuations, forensic
& dispute resolution and reorganization
with a focus on helping the clients increase
value.
FinNiche
Deloitte
—- By Mukul Gupta
September 2013
Page 3
Companies
Ernst & Young is one of the largest
professional service firms in the world and
one of the "Big Four" accounting firms. It is
a global organization of member firms in
more than 140 countries, headquartered in
London, England. The current Global
Chairman and CEO of the company is
Mark Weinberger. The company was
ranked by Forbes magazine as the eighth-
largest private company in the United
States in November 2012. The company
earned global revenue of $24.4 billion in
FY’12 ending June 2012. The share of
revenue as per client sectors was:
- Financial Services: 41%s
- Service and Trade: 31%
- Industry: 20%
- Chemicals and Pharmaceuticals: 8%
History
Ernst & Young is the result of a series of
mergers of ancestor organizations. The
oldest originating partnership was founded
in 1849 in England as Harding & Pullein. In
that year the firm was joined by Frederick
Whinney. He was made a partner in 1859
and with his sons in the business it was
renamed Whinney Smith & Whinney in
1894.
In 1903, the firm of Ernst & Ernst was
established in Cleveland by Alwin C. Ernst
and his brother Theodore and in 1906
Arthur Young & Co. was set up by the
Scotsman Arthur Young in Chicago As
early as 1924 these American firms allied
with prominent British firms, Young with
Broads Paterson & Co. and Ernst with
Whinney Smith & Whinney. In 1979 this
led to the formation of Anglo-American
Ernst & Whinney, creating the fourth
largest accountancy firm in the world. Also
in 1979, the European offices of Arthur
Young merged with several large local
European firms, which became member
firms of Arthur Young International.
In 1989, the number four firm Ernst &
Whinney merged with the then number
five, Arthur Young, on a global basis to
create Ernst & Young.
In October 1997, EY announced plans to
merge its global practices with KPMG to
create the largest professional services
organization in the world, coming on the
heels of another merger plan announced in
September 1997 by Price Waterhouse and
Coopers & Lybrand. The merger plans
were abandoned in February 1998 due to
client opposition, antitrust issues, cost
problems and difficulty of merging the two
diverse companies and cultures.
EY had built up its consultancy arm heavily
during the 1980s and 1990s. The U.S.
Securities and Exchange Commission and
members of the investment community
began to raise concerns about potential
conflicts of interest between the consulting
and auditing work amongst the Big Five
and in May 2000, EY was the first of the
firms to formally and fully separate its
consulting practices via a sale to the
French IT services company Cap Gemini
for $11 billion, largely in stock, creating the
FinNiche
Ernst & Young
—- By Bhanu Chokhani
September 2013
Page 4
Companies
new company of Cap Gemini Ernst &
Young, which was later renamed
Capgemini.
Services
EY has four main service lines (share of
revenues in 2011):
- Assurance Services (51%): comprises
Financial Audit (core assurance),
Financial Accounting Advisory Services,
Fraud Investigation & Dispute Services,
and Climate Change & Sustainability
Services.
- Tax Services (29%): includes Business
Tax Compliance, Human Capital,
Customs, Indirect Tax, International Tax
Services, Tax Accounting & Risk
Advisory Services, Transaction Tax.
- Advisory Services (12%): consisting of
four subservice lines: Actuarial, IT Risk
and Assurance, Risk, and Performance
Improvement.
- Transaction Advisory Services (TAS)
(8%): deals with companies' capital
agenda – preserving, optimizing,
investing and raising capital.
Global Structure
EY is the most globally managed of the Big
Four firms. EY Global sets global
standards and oversees global policy and
consistency of service, with client work
being performed by its member firms.
Each EY member country is organised as
part of one of four areas. This is different
from other professional services networks
which are more centrally managed.
The four areas are:
- EMEIA: Europe, Middle East, India and
Africa
- Americas
- Asia-Pacific
- Japan
Each area has an identical business
structure and one management team that
is led by an Area Managing Partner is part
of the Global Executive board. The aim of
this structure is to effectively cater for an
increasingly global clientele, who have
multinational interests.
Recent Developments
- In 2002, EY took over many of the ex-
Arthur Andersen practices around the
world, although not those in the UK,
China or the Netherlands.
- In 2006, EY became the only big four to
have two member firms in the United
States with the inclusion of Mitchell &
Titus, LLP, the largest minority-owned
accounting firm in the United States.
- In 2010, EY acquired Terco, the Brazilian
member firm of Grant Thornton.
- In 2013, EY agreed to pay federal
prosecutors $123 million to settle criminal
tax avoidance charges stemming from $2
billion in unpaid taxes from about 200
wealthy individuals advised by four Ernst
& Young senior partners between 1999
and 2004.
- In 2013, EY changed its brand name
from Ernst & Young and tagline to
"Building a better working world".
FinNiche
September 2013
Page 5
Companies
Texas Instruments Inc. (TI) is an American
company that designs and makes
semiconductors, which it sells to
electronics designers and manufacturers
globally. Headquartered at Dallas, Texas,
United States, TI is the third largest
manufacturer of semiconductors worldwide
after Intel and Samsung. It is also the
second largest supplier of chips for cellular
handsets after Qualcomm, and the largest
producer of digital signal processors
(DSPs) and analog semiconductors. With
FY2012 revenues of USD 12.8 billion and
nearly 45,000 analog products and
customer design tools, it is among the top
20 semiconductor producing companies in
the world. Texas Instruments produces a
range of calculators, with the TI-30 being
one of the most popular early calculators.
TI India is deeply involved in developing
state-of-the-art solutions for applications
like wireless handsets, wireless
infrastructure (base stations), video
(security and surveillance, IP phones, set-
top boxes), High Performance Analog, etc.
In August 1985, TI set up a R&D facility in
Bangalore and became the first global
technology company to establish its
presence in India. In 1995, TI developed
the first processor designed in India for
control applications. The TI India R&D
Center was extensively involved in
developing “LoCosto”, the industry’s first
single chip solution for wireless handsets.
Company Divisions
Today, TI is made up of three divisions:
Semiconductors (SC), Educational
Technology (ET), and Digital Light
Processing (DLP).
- Semiconductors
Semiconductor products account for
approximately 96 percent of TI's revenues.
TI's semiconductor-related product areas
include digital signal processors in the
TMS320 series, high speed digital-to-
analog and analog-to-digital converters,
power management solutions, and high
performance analog circuits. TI’s Wireless
Business Unit (WBU) produces wireless
solutions for products such as
smartphones and eBooks, tablets,
consumer electronics and other portable
devices. Wireless communications has
been a primary focus for TI, with around 50
percent of all cellular phones sold
worldwide containing TI chips.
- Signal processing
Digital Light Processing is a trademark
under which Texas Instruments sells
technology regarding TVs, video projectors
and digital cinema. Another business unit
of the Semiconductor division called
Application Specific Products (ASP)
develops specific products that cater to a
broad range of DSP applications, such as
digital still cameras, cable modems, Voice
over IP (VOIP), streaming media, speech
compression and recognition, wireless
LAN and gateway products (residential
and central office), and RFID.
- Microcontrollers and Processors
Texas Instruments maintains several lines
of processors, including the Sitara ARM
processor family featuring ARM Cortex-A8
and ARM9 to serve a broad base of
applications. Texas Instruments also offers
a portfolio of microcontrollers.
FinNiche
Texas Instruments Inc.
—- By Mukul Gupta
September 2013
Page 6
Companies
The term Deutsche Bank literally means
“German Bank”. Deutsche Bank AG is a
German global banking and financial
services company with its headquarters in
the Frankfurt, Germany. It employs more
than 78,000 people in over 70 countries,
has a large presence in Europe and is
growing in North America, Asia and key
emerging markets. In 2009, Deutsche
Bank was the largest foreign exchange
dealer in the world with a market share of
21 percent. In India, Deutsche Bank offers
services of on-shore investment banking,
institutional equities broking, asset and
private wealth management, retail banking
and business processes outsourcing.
Deutsche Bank is listed on both the
Frankfurt (FWB) and New York stock
exchanges (NYSE). Over the last decade,
Deutsche Bank has been transformed,
moving from a German-centr ic
organisation that was renowned for its
retail and commercial presence to a global
investment bank that is less reliant on its
traditional markets for its profitability. In
2012, it earned revenue of €33.7 billion
and a net income of €0.7 billion. Some of
the key highlights of the company in year
2012 were:
- Ranked No.5 globally with record market
share
- Ranked No.1 in EMEA
- Awarded ‘Equity House of the Year’ and
‘Bond House of the Year’ by IFR
Deutsche Bank was one of the major
drivers of the collateralized debt obligation
(CDO) market during the housing credit
bubble from 2004–2008, creating
approximately $32 billion worth. 2008 was
Deutsche Bank’s first loss-making year
since five decades, though a lot of their
losses were covered due to their insurance
arrangements with AIG.
Deutsche Bank has a negligible exposure
to Greece however Spain and Italy
account for a tenth of its European private
and corporate banking business.
History of Deutsche Bank
Deutsche Bank was founded in Berlin in
1870 as a specialist bank for foreign trade.
It was founded by G. Siemens, whose
father’s cousin had founded Siemens and
Halske (the company which is Siemens
AG now), and L. Bamberger. Previous to
the founding of Deutsche Bank, German
importers and exporters were dependent
upon English and French banking
institutions in the world markets—a serious
handicap in that German bills were almost
unknown in international commerce,
generally disliked and subject to a higher
rate of discount than English or French
bills.
The bank’s first overseas branches were
Shanghai (1872), London (1873) and
South America (1874-1886). Deutsche
Bank was instrumental in introducing the
chemical company Bayer to the Berlin
stock market and played a significant role
in the merger of Daimler and Benz.
FinNiche
Deutsche Bank
—- By Bhanu Chokhani
September 2013
Page 7
Companies
Structure of Deutsche Bank
Deutsche Bank consists of these business
divisions:
- Private & Business Clients
The Private & Business Clients division
provides branch banking and financial
services to private customers, self-
employed clients as well as small and
medium-sized businesses.
In Personal Banking, they provide services
of Fixed Deposits, Savings Account,
Payroll Account, Online Banking, Loans,
Mutual Funds, Portfolio Management
Services, Bonds, Online Trading,
Insurance (both life and non-life) and Debit
and Travel Cards. They have a service
called as Advantage Banking which
provides an easier balance requirement,
family banking facilities and group
accounts, financial planning services and
exclusive offers.
In Business Banking, Deutsche Bank
provides Current Account, Current Account
Trade, Magnus (a Working Capital lending
product), Trade Services and Forex, Cash
Management Services, Fixed Deposits and
Online Banking for Corporates and Firms.
In Private Banking, they provide their
customers advice through a dedicated
relationship manager. Services provided in
Private Banking are Financial Planning,
Investment Research, Estate and
Succession Planning and other premium
products and privileges.
- Markets
The Markets Business Division combines
the sales, trading and structuring of
financial market products like bonds,
equities and equity-linked products,
exchange-traded and over-the-counter
derivatives, foreign exchange, money
market instruments, secur i t ized
instruments and commodities. Coverage of
institutional clients is provided by the
Institutional Client Group, while Research
provides analysis of markets, products and
trading strategies.
- Corporate Finance
Basically, it is the investment banking
division of Deutsche Bank. It provides
services like mergers and acquisitions
(M&A), advisory, debt and equity issuance
and capital markets coverage of large and
medium-sized corporations.
- Global Transaction Banking
The Global Transaction Banking Corporate
Division provides commercial banking
products and services for both corporates
and financial institutions worldwide,
including domestic and cross-border
payments, risk mitigation and international
trade finance as well as trust, agency,
depositary, custody and related services.
Business units include Cash Management,
Trade Finance and Trust & Securities
Services.
- Asset & Wealth Management
The Asset and Wealth Management
Corporate Division is made up of two
Business Divisions: Asset Management
and Private Wealth Management. While
Private Wealth Management serves the
banking needs of wealthy individuals and
families across the globe, Asset
Management provides investment
solutions to individual and institutional
investors worldwide.
FinNiche
September 2013
Page 8
FINANCIAL KNOWLEDGE
Exchange Traded Fund can be defined as a
security that tracks an index, a commodity or a
basket of assets like an index fund, but trades
like a stock on an exchange. ETFs experience
price changes throughout the day as they are
bought and sold.
Currently there are 3 types of ETFs which can
be traded in BSE. These are as follows :
- Equity ETF:A basket of stocks that represent
the composition of an index, like S&P , CNX
Nifty or S&P BSE SENSEX. Its trading
value is based on net asset of underlying
stocks that it represents. Currently there are
11 equity ETFs which can be traded In BSE.
- Gold ETF: It is a s special type of ETF which
tracks the price of Gold.
- Liquid ETF: It is the money market ETF, the
investment objective of which is to provide
money market returns. Liquid BeES
launched by Benchmark Mutual Fund is the
first market ETF in the world. Liquid BeES
will invest in a basket of call money, short
term government securities and money
market instruments of short and medium
maturities.
Liquid BeES ETS units can be deposited by
members with exchange towards collateral
requirements (Liquid assets) for margin
purposes. These units will be considered cash
equivalents. Other ETF units can also be
deposited towards collateral requirements but
these are considered as non-cash
equivalents.
ETFs provide an exposure to the same
underlying index like a future, but ETFs trade
in much smaller investment sizes than a
futures contract thus making it possible for
retail investors to participate in index
investing. Investors can use ETFs for strategic
asset allocation (core holdings) and tactical
asset allocation to reflect their short term
investment insights. Index exposure can be
shorted or hedged by selling ETFs against
long stock holdings thereby reducing broad
market risk exposure or beta of port-folio. An
investor in an open-ended mutual fund can
only purchase or sell at the end of the day at
the mutual funds closing price. This makes
stop-loss orders much less useful for mutual
funds, and not all brokers even allow them. An
ETF is continually priced throughout the day
and therefore is not subject to this
disadvantage, allowing user to react to
adverse or beneficial market conditions on an
intraday basis.
ETFs have made possible the trading of index
funds like stocks. This was not possible until
the development of ETFs. They have opened
a whole new panorama of investment
opportunities to retail as well as institutional
money managers. They enable money
managers to gain broad exposure to entire
stock markets and specific sectors with
relative ease, on a real time basis and at a
lower cost than many other forms of investing.
By owning an ETF, one can get the
diversification of an index fund as well as
ability to sell short, buy on margin and
purchase as little as one share. One of the
most widely known ETFs is called the Spider
(SPDR), which tracks the S&P 500 index and
trades under the symbol SPY.
FinNiche
Exchange Traded Fund
—- By Anirban Dutta
September 2013
Page 9
FINANCIAL KNOWLEDGE FinNiche
Market This Week
In the week of August 26-30, the SENSEX rose marginally from 18602.56 to 18619.72.
The Nifty on the other hand fell 0.5% from 5499.4 to 5471.8. It is clearly visible on the
charts that bulls are getting exhausted and losing momentum. With the Indian rupee
hitting a recent low of 68.80 and the government expected to get more ambushed by
increasing diesel prices, the markets are expected to go down further. Oil prices have shot
up recently after the US indicated a possible military action on Syria for its alleged use of
chemical weapons against Syrian population. The fall was however cushioned on Friday
as the Sensex rose by 100 points on Prime Minister's assurance on currency and growth
of the economy and short-coverings ahead of the expiry of derivative contracts on 29 Aug.
SENSEX Simple Moving Averages
BSE SENSEX
CNX Nifty
September 2013
Thirty Days 18458.10
Fifty Days 18480.82
Hundred Days 18465.69
Two Hundred Days 18282.84
Page 10
FINANCIAL KNOWLEDGE FinNiche
Bank Rate 10.25%
Repo Rate 7.25%
Reverse Repo Rate 6.25%
Cash Reserve Ratio 4%
Statutory Liquidity Ratio 23%
INR / 1 USD 66.5742
INR / 1 Euro 88.1605
INR / 100 Jap. YEN 67.83
INR / 1 Pound Sterling 103.3431
Commodity Unit Rs / Unit % Change
Gold 10 grams 32982 3.48
Silver 1 Kg 53280 0.84
Crude Oil 1 bbl 7257.0 5.51
Base Rate 9.70%-10.25%
Savings Deposit Rate 4.0%
Term Deposit Rate 8.0%-9.0%
Nifty Simple Moving Averages
Commodities
Lending / Deposit Rates
Thirty Days 5423.66
Fifty Days 5426.49
Hundred Days 5424.77
Two Hundred Days 5373.95
Key Policy Rates and Reserve Ratios
Exchange Rates
September 2013
Page 11
FINANCIAL KNOWLEDGE
Infosys displaces CIL to become
5th largest co, TCS still tops list
Infosys has regained its position among
the top-five companies in terms of
market capitalisation (m-cap) in August.
The IT bellwether snatched the fifth spot
from Coal India as its market value rose
4% to Rs 1.78 lakh crore in August,
while the miner saw its value dip 11% to
Rs 1.58 lakh crore. Infosys, however, is
still a mile away its rival, TCS, which
boasts of m-cap of Rs 3.81 lakh crore
and is the country's largest listed entity.
Apart from TCS, Reliance Industries,
ITC and ONGC are placed above
In fos ys wi th h ighe r marke t
capitalisation.
Ashok Vemuri likely to be next
iGate CEO
Ashok Vemuri, who quit as the
Operations Head of America
at Infosys on Wednesday, is likely to be
chosen as the next chief executive
officer (CEO) of iGate. The executive
council, appointed to identify iGate's
next CEO has prepared a shortlist
where Vemuri has emerged as the
frontrunner. Vemuri has an edge over
other contenders as he is based out of
US.
Fiscal Deficit at 63% of Budget
estimates in July-end
The fiscal deficit, which is the difference
between government receipts and
spending, touched Rs 3.4 lakh crore in
April-July, or 62.8 per cent of the budget
estimate. The fiscal deficit had reached
51.51 per cent of the budget estimate in
the April-July period of 2012-13. The
deficit so far is without accounting for a
substantial portion of food and oil
subsidies, which are likely to exceed
budget estimates following the
enactment of the Food Security Law
and an oil import bill that's shooting up
because of an over 20 per cent rupee
depreciation. The fiscal deficit during
2012-13 came down to 4.9 per cent of
GDP from 5.8 per cent a year earlier. In
the current financial year, the
government plans to lower the deficit to
4.8 per cent of GDP. The revenue
deficit during April-July went up to Rs
2.77 lakh crore, or 73 per cent of the
budget estimate, compared with 61.3
per cent last year. Revenue collection
slowed down to 16.7 per cent of the
budget estimate (Rs 1.76 lakh crore) as
against 18 per cent in the previous
fiscal.
Q1 GDP at 4.4% vs 4.8%(QoQ);
consumption demand down
Gross Domestic Product or GDP for the
first quarter of this fiscal year came in at
a four-year low of 4.4 percent versus
5.4 percent (YoY), below street
expectation of 4.7 percent. In the
previous quarter, the GDP witnessed a
4.8 percent growth.
L ok Sab ha Pa ss es La nd
Acquistion Bill, 2011
The Lok Sabha approved land reforms
on Thursday that boost farmers' rights
but are opposed by other businesses
who say the new law will thwart efforts
to revive the floundering economy. The
government says the bill, which will
replace a muddled law dating back to
the 19th century, will help speed up
FinNiche
NEWS
September 2013
Page 12
FINANCIAL KNOWLEDGE
industrial investment by making the
rules clearer. The Bill's pricing rules
would oblige developers to pay up to
four times the market rate for land in
rural areas and twice the rate in urban
areas. Displaced people must also be
given homes and jobs.
Indian Gold Imports Become
Expensive
Gold imports to India will become
slightly more expensive, as the
government announced over the
weekend that it has increased the base
rate for calculating import taxes on the
precious metal. India sets a base rate
benchmarked to international gold
rates, usually every two weeks, for
calculating a 6% import tax on the
precious metal. The government has
raised the base rate to $472 per 10
grams from $449 per 10 grams,
according to a finance ministry
statement issued over the weekend.
The rise in the base rate comes in the
wake of a massive gold buying spree
in the past two weeks, ever since
international gold prices fell 4% on
April 12.
RBI opens special window for
Forex purchase by Oil Companies
Reserve Bank of India (RBI) opened a
special window to help the three state-
owned oil marketing companies
needing about USD 8.5 billion every
month to meet their daily foreign
exchange requirement in a bid to
check the rupee's free fall. The PSU oil
companies are the biggest buyers of
dollars, requiring USD 8-8.5 billion
every month for the import of an
average 7.5 million tonnes of crude oil.
The RBI decision is aimed at curbing
volatility in the forex market. India's oil
imports during July were valued at
USD 12.7 billion, which was 8% lower
than USD 13.8 billion of oil imports in
the corresponding period, a year
earlier. During April-July, oil imports
were valued at about USD 54.6 billion,
which was 2.65 percent higher than
USD 53.2 billion in the corresponding
period last year.
Lok Sabha passes Food Security
Bill
India's lower house of parliament
approved a plan worth nearly $20
billion on Monday to provide cheap
grain to the poor. Under the plan, the
government will sell subsidised wheat
and rice to 67 percent of its population
of 1.2 billion. India is home to a quarter
of the world's hungry poor, according
to United Nations data, despite being
one of the biggest food producers and
experiencing years of rapid economic
growth.
ONGC to buy stake in Andarko
gas block for $2.64 bn
Anadarko Petroleum Corp said it has
agreed to sell a 10 percent stake in a
gas field offshore Mozambique to a
unit of Oil & Natural Gas Corp for USD
2.64 billion in cash, as the US oil
company looks to focus more on its
domestic assets. ONGC faces
diminishing supplies from its aging oil
and gas fields in India and has been
buying interests in overseas assets.
FinNiche
NEWS
September 2013
FinNiche
Selection Process: As per the last years’ data JPMC had offered two profiles: IB and banking
operations. The first round of selection was an online aptitude test. The second round was a
case study. A hard copy of the case was distributed to the students and they were asked to write
points that they wish to store. The case study material was then taken back. Distinguished
additional information was provided to everyone and a GD was conducted; so everybody had
some common understanding of the case plus the extra piece of data individually. Instructions to
note down the points that were being discussed in the GD were also made. The third round was
the interview which had the routine questions regarding one’s short-term and long-term goals,
know about of the company, etc.
Internship Experience: The interns were given the exposure to the various processes of the
company. They had the opportunity to interact with the overseas teams and work with them. A
fair amount of assistance was always provided, when needed. Floor-walks helped the interns to
know the assignments of different teams and their interactions with each other. Overall it
provided a good learning of the work and about the company.
Selection Process: The profile offered was of IBR (Investor Relations). A 1-hr test was
conducted in which the data of another company was given and the students were asked to
determine whether the company is fit for investment or not. Basically it was the comparative
analysis of the company with the industry which had to be done to draw a conclusion. After
short listing the candidates the interview round was held in which questions about the
conclusion drawn in the first round and few general questions were asked.
Internship Experience: A broad spectrum of knowledge was given to the interns through
projects that developed a deep understanding of the subject. Interns used to make presenta-
tions to the clients and also contribute to the reports of the company. Few interns also got a
chance to travel to different (domestic) locations for project work.
TIPS & EXPERIENCE
Page 13
Get a grip on the FRA concepts and ratio
analysis. This is perhaps the only
academic subject one needs to study for
the summer placements. Comparative
industry analysis was one of the selection
criteria for a company during the summer
placements.
Tips to prepare for Summer Placement
Read newspaper daily. Keep yourself
updated on the latest happenings in the
industry as most of the GD topics are
based on them. For example, rupee
depreciation is one of the hot topic that is
most likely to be heard during the GD
rounds.
Volume 6 Publisher : Rajat Kochar
September 2013
JPMorgan Chase
FOUR-S SERVICES
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