CA Newsletter June 03 to June 9

8/3/2019 CA Newsletter June 03 to June 9

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11 Pages 03rd

JUNE 2011 09th

JUNE 2011 www.xedintellect.com

BUSINESS NEWS

ECONOMIC INDICATORS 2 COVER STORY 3 PERSONALITIES OF THE WEEK 4 BUSINESS NEWS 5-8

INTERNATIONAL NEWS 9 MISCELLANEOUS NEWS 10 GENERAL AWARENESS 11

NEWS DIGEST

IN BRIEF

PERSONALITIES OF THE

WEEK

COMPILED BY

PERSONAL COMPUTER INDUS

BSE SENSEX 18,384

NSE NIFTY 5,521

RS/Dollar 44.72

ECONOMICINDICATORS

India among top

four wealth

creators in world

COVER STORY

INTERNATIONAL

NEWS

China to become

global banking

king by 2023

MISCELLANEOUS

NEWS

Internet surfing

more disciplined in

India now

XED NEWSLETTER a weekly news bulletin

(as on 09.06.2BABA RAMDEV: YOGI ON FAST FORWARD


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TOP 10 HEADLINES OF THE WEEK

1. India among top four wealth creators in world: Study.2. India among preferred FDI destinations: Ernst & Young.3. Facebook, Twitter power India Inc biz.4. Reliance Retail to enter wholesale business soon: Ambani.5. PepsiCo, Unilever revive Lipton Ice Tea JV in India.6. Guidelines sought for direct selling in India.7. China to become global banking king by 2023 report.8. Wal-Mart will continue chanting the low-price mantra.9. "Internet surfing more disciplined in India now," reveals study.10.Number of overseas students continue to fall in Australia.

ECONOMIC INDICATORS

The Gini Coefficient is one way to measure how evenly the income

(or wealth) is distributed throughout a country.

There will always be rich and poor, but we are interested inunderstanding how evenly wealth is distributed and most governments

at-least the ones with socialistic outlook put effort into keeping the Gin

coefficient as low as possible.

Each year since 1990 the Human Development Report has published

the Human Development Index which was introduced as an

alternative to conventional measures of national development, such as

GDP growth rate. The HDI provides a composite measure of three basic

dimensions of human development: health, education and income

Between 1980 and 2010 India's HDI rose by 1.6% annually from 0.320

to 0.519 today, which gives the country a rank of 119 out of 169

countries with comparable data.

Stock Market Indices as on 9thJune11 Values

BSE SENEX 18,384

NSE Nifty 5,521

Current Market Rates as on 9th June11 Values

Rupee / 1Euro 65.38

Rupee/ 1Dollar 44.72

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COVER STORY-BABA RAMDEV: YOGI ON FAST FORWARD

Baba jumps into Politics: Baba Ramdev had sought permission from Delhi police to holda yoga camp from 8am to 2pm and to restrict the crowd to 5,000 people. But the yogacamp became the political platform for Ramdev to hector the government on black moneyand corruption. According to Delhi's laws Ramlila ground cannot be used for a politicalfunction. What followed was a brutal crackdown on Babas supporters at the wee hours ofthe night.

After the action against Baba Ramdev, Anna Hazare and his team boycotted a meeting of

the Lokpal Bill drafting committee. Government questioned Babas morality to organise such protests. Baba is beingaccused of stamp duty evasion and owes the exchequer Rs 58 lakh according to Haridwar SDM. He is also accused ofgrabbing fertile farmland. Local residents including farmers had recently launched a signature campaign against him.

Cyber Activism: Digital activist group Anonymous Operations hacked the website of

Indian government information technology organization in protest against politicacorruption and police violence against Baba Ramdevs supporters. Anonymous activists putup its logo and a message for the country's Prime Minister Manmohan Singh on the websitewarning of such similar attacks if government continues to suppress the movement againstcorruption.

What Baba wants: Some are practical and doable. For example, introduce a change in theelectoral system to directly elect the prime minister, bring income tax details under theRight to Information Act, substantially increase the minimum support price for grains, make

wages for different types of labour uniform across the country and change the LandAcquisition Act so that farmers dont lose out to industry. But look at the rest. Toughen theLok Pal Bill to include death penalty for the corrupt, immediately retrieve all the blackmoney stashed away in tax havens abroad, abolish Rs 1,000 and Rs 500 notes, disabletransactions of Indians with banks in tax havens and last but not the least, replace all lawsinherited from the British with Swadeshi laws. The unfeasibility of some of his demands however cannot be taken asan excuse by the Government to justify the dismantling of a peacefully organised protest.

Ramdev the marketing guru:He is considered a marketing phenomenon. From toothbrushes to night suits, frombreakfast cereals to body cleansers, there is a spiritual touch in each item up for saleConsumerism blended with spiritualism, courtesy religious gurus and organisations, isgiving companies a run for their money. Ramdevs credentials as a politician are yet tobe established, but his pioneering marketing strategies as head of a Rs 1,100-crorediversified conglomerate are already the subject of case studies. Babas key aide

Acharya Balakrishna controls a huge business empire of 34 companies.

Brand Baba: It is through creation of customer communities, determination to buildPatanjali Yogpeeth as a rival to the World Health Organisation and going beyond

medicines to lifestyle that Ramdev has emerged as a cult marketer. Legendary brands have a unique feature. Theyhave a fan base that is so emotionally connected with the brand that it becomes a cult or religion for them. Patanjalireported a three-fold jump in profit after tax to Rs 63 crore for 2008-09, as against Rs 21 crore in 2007-08. Accordingto a Crisil report, the trusts operating margin was a healthy 83% in 2009-10.

Clashing Ideologies:Interestingly, Ramdev is being opposed by so many others who supported Anna Hazare. Thereasoning might be while Hazare appealed to the middle-class and the thinking classeslike the academics, professionals; Baba Ramdevs reach is more broad-based andextended to the rural and vernacular middle-class followers. The upper middle classesseemed to find more truck with Anna Hazare, a product of the armed forces who, in his

own protest a few months back, struck a more Gandhian and a non-religious tone.These people are worried about Babas rustic populism which makes a hash of theirmore urbane secular categories and see him as comic book stuff.

Saffron replacing Tricolor:These days Satyagraha has become a tool for commercialuse. Hunger for publicity at any cost is the hallmark and moral corruption is manifest.The presence of RSS leader Sadhvi Rithambara, who is accused of Godhra riots in the gathering, gives Babasmovement a communal tinge. Allegation such as the funding being done by BJP and RSS only weakens the ultimatecause. How many of us know of Manipurs Irom Sharmila, who has been on a fast for the last 10 years against theArmed Forces Special Powers Act? She had been arrested and fed forcefully through a nasal tube innumerable timessince then. The sight of protest at Rajghat is different, while Annas supporters fast in heavy rain some as old asninety-two, Babas are in a waterproof AC pandal. We prefer our satyagrahis brave the rains and the lathis for acommon cause with uncommon resolve?

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PERSONALITIES OF THE WEEK

ANNA HAZARE INDIAS SOCIAL CONSCIENCE FOR GEN TWITTER

Kisan Baburao Hazare or Anna Hazare is a social activist known for his work ondevelopment of Indian villages. He is renowned for his simplicity and resolve and hastaken centre stage in the battle against corruption.

Beginnings of a Legend: Born on 15th January 1940 in Bhingar, a small village near

Ahmednagar, Maharashtra, Hazare faced a childhood of hardships. He was among the 7

children of an unskilled laborer and sold flowers in Dadar to contribute to his familysincome. Inspired by Vivekanandas teachings, he believed seva was the highest form ofworship. He joined the army in 1963 in the aftermath of the Sino-Indian war and sawaction in the 1965 war with Pakistan, where he was the sole survivor of an attack on hisconvoy. On leaving the army he returned to his village Ralegan Siddhi where he was

appalled at the living conditions of his fellow villagers. His consequent efforts to changethe situation led to the uprooting of alcoholism and creation of a model irrigation system that changed the fortunes ofthe villagers. His efforts resulted in the creation of the model village that is Ralegan Siddhi.

Recognitions: Padmabhushan, Felicitated by Care International.

What Anna Believes: Hazare believes that the dream of India as a strong nation will not be realized without self-reliant, self-sufficient villages and this can be achieved only through social commitment & involvement of the commonman.

War on Corruption: Hazare raised the battle cry against corruption when he founded Bhrashtachar Virodhi JanAndolan in 1991 to fight against graft in the state forestry department. His relentless efforts were instrumental in thecreation of the Right to Information Act, perhaps one of the most important steps towards a more honest India. Hislatest battle started with a fast unto death on the 5th of April 2011 to bring into existence a strong Lokpal Bill againstcorruption. The movement gained popular momentum as the Facebook generation of candle lighting Indians found aleader they could actually look up to and who could be their voice & conscience. The demands were accepted on 8t

April, but the battle rages on.

DEEPAK PAREKH THE MAN BEHIND TURNING INDIAS HOUSING DREAMSINTO REALITY

Deepak Parekh is the Chairman of Housing Development Finance Corporation(HDFC), India's leading housing finance company. A pioneer in mortgage finance, he has

enabled the Indian middle class to own their houses or apartments through affordableloans.

First Steps: A chartered accountant from England by profession Parekh began hiscareer with Ernst &Young in New York. After a stint with MNCs he joined HDFC, foundedby his uncle HT Parekh, in 1978. Promoted to managing director in 1985 and chairmanin 1993, he was instrumental in turning the fledgling company into a financial servicesconglomerate with assets of $28 billion and a one third share of Indias mortgagemarket.

Why India Inc. listens to Mr. Parekh: The man brought loans at affordable rates to the middle class who couldearlier merely dream of their own house & whom the public sector banking giants spurned. Described as being honest,pragmatic & an open listener he is considered to be a CEOs dream board member. He is also considered a voice oreason among Industry heads & his counsel is considered invaluable. The govt. also accepts this fact and has shown

its belief in the man by appointing him Chairman of the high level expert committee formed to recommend measuresfor strengthening the Unit Scheme in 1964. RBI appointed him Chairman of the Advisory Group for SecuritiesMarket Regulation, which was tasked to compare the level of adherence to international standards in India with that inother countries.

Also known for: He is the non-Executive Chairman of Infrastructure Development Finance Company Ltd (IDFC) aswell as non-Executive Chairman of Glaxo India Ltd & Burroughs Wellcome (India) Ltd. He is on the Board of Castrol BPIndia; Hindustan Lever; Siemens Ltd among others. He received the Padmabhushan & was the youngest recipient ofthe Economic Times lifetime achievement awards.

Personal Interests: Travels to Tirupati every year as well as to UK for the Wimbledon Tennis Tournament.

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BUSINESS NEWS

1. India among top four wealth creators in world: Study-ET June 03India has emerged among the four fastest wealth creator countries in the world and itsgrowth momentum is expected to gather further steam going forward, a global studyhas said. In its annual Global Wealth Report, management consulting firm BostonConsulting Group has listed the US, China, the UK and India as the nations showingthe largest absolute gains in wealth in 2010.

"Wealth will grow fastest in emerging markets. In India and China, for example, it is

expected to increase at a compound annual rate of 18 per cent and 14%,respectively," Tang BCG partner and co-author of the study said, adding that the Asia-

Pacific region's share of global wealth (ex Japan) was projected to rise from 18% in 2010 to 23% in 2015.

2. India among preferred FDI destinations: Ernst & Young-PTI June 06According to the '9th Annual European Attractiveness Survey' by Ernst &Young, India will rank fifth among the most attractive destinations forEuropean firms within the next three years, mainly on account of India'sperceived specialization as a hub for low cost outsourcing business.

As per the E&Y report, a huge number of respondents felt that India would bethe home to the next big brand names like Microsoft and Google in the ITsector. The Indian economy had expanded by 8.5 per cent in 2010-11, upfrom 8 per cent in the previous fiscal. The Reserve Bank, in its annual

monetary policy, said that growth is likely to slow down a bit but still clockaround 8 per cent this fiscal.

3. Facebook, Twitter power India Inc biz-ET June 07Indian companies have increased their usage of social networks like Facebook, besidesblogs, micro-blogs like Twitter and other on-line foray to win new business in 2011, a surveysaid. An increasing number of Indian companies are using social media as an effectivebusiness tool with 83 per cent firms in India agreeing that without social media activity,marketing strategies cannot hope to be successful, while globally, 74 per cent companiesendorse the view, according to the survey by Regus, a leading office-space solutionsprovider.

The global Regus survey findings are based on the responses of over 17,000 managers andbusiness owners across 80 countries. In 2010, Regus found that 52 per cent of Indian firms were successfully winning

new customers through business social networking activity. Around 66 per cent of Indian companies and 61 per centof global firms also emphasized the need for a balance of marketing media, confirming their belief that without acombination of traditional and digital techniques, marketing campaigns would not work.

4. Reliance Retail to enter wholesale business soon: Ambani-ET June 03Reliance Retail will soon launch cash-and-carry format stores for wholesale business, whileits consumer-focused business will become market leader across all formats in the next twoyears, Mukesh Ambani said today. Reliance Retail will soon launch cash-and-carry formatstores to offer numerous national and international brands for small traders across thecountry, Ambani said.

Addressing Reliance Industries' shareholders at the company's 37th AGM, the Chairman and MD said that RILsubsidiary Reliance Retail has made substantial investments over the past five years. Asserting that Reliance Retaihas already become largest food retailer in the country, Ambani said that all the specialty formats of the company

would attain top positions in their respective segments in next two years.

5. PepsiCo, Unilever revive Lipton Ice Tea JV in India-The Hindubusinessline June 06Food and beverages major PepsiCo and FMCG giant Unilever are reviving their joint venturein India by re-introducing their global product, Lipton Ice Tea, in the country. The JVsIndian arm has launched two new flavours of the ready-to-drink ice tea, after it waswithdrawn around seven years back when the JV entered the country.

A PepsiCo India spokesperson said the JV is re-introducing the product as the currentmarket is favourable for such items, with increasing awareness. In fact, even within ice teaconsumers are increasingly accepting green ice tea as a healthier option, he added. In2003, PepsiCo and Unilever formed a global 50:50 joint venture Pepsi Lipton

International to manufacture and market Lipton Ice Tea variants in 67 countries. The JV entered India in 2004.

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6. Guidelines sought for direct selling in India- The Hindubusinessline June 06There is a pressing need for direct selling guidelines in India to protect consumers andlegitimate direct selling companies. We are not seeking laws, only mere guidelines.Countries such as the US, UK, Malaysia and Singapore have enacted direct selling laws

to protect consumers, Mr Pankaj Vassal, Vice-President, Amway South, said.

Addressing a press conference here, Mr Vassal said that Amway had sought theGovernment's nod on these lines and hoped that something positive would emerge soon.Amway's business in India grew 27 per cent in 2010. Mr Vassal conceded that TamilNadu was the hottest market for the company in India, registering a 40 per cent growth,

higher than the national average. An Ernst & Young study shows that the direct sellingindustry could grow by 24 per cent to Rs 7,120 crore by 2012 13 from Rs 4,120 crore in 2010.

7. Nimble Asian rivals raid Nokia's emerging markets turf-Reuters June 07From New Delhi to Shanghai to Johannesburg, a flood of cheap handsets from the likes oChina's ZTE and India's Micromax is destroying Nokia's top position in emergingmarkets. Compounding the woes for the Finnish phone maker, Asian handset

manufacturers are increasingly turning to Google's free Android software, which ispopular with operators and consumers in cut-rate markets.

Nokia is already under pressure in the high-margin smartphone sector as Apple ,Blackberry maker Research In Motion and Google seize market share, leaving the basiccellphone business as Nokia's most valuable part. That is now under threat. The battle for

the cheap phone market could be even tougher. Nokia has been able to rely on its brand and distribution chain across

emerging markets, home to 1.7 billion mobile phone subscribers.

8. Cos reinventing induction programmes for fresh recruits to include play and work-ET June 04You can go trekking in the Himalayas, or set out on a Bharat Darshan. Teachingunderprivileged children while staying in a village is another option. Reads like anadvertisement for a summer holiday package? Actually, these are activities on the listof induction programmes of Indias biggest and most prestigious companies. The bootcamps of India Inc. June-July is the time freshers from engineering colleges and B-Schools kickstart their career.

And, India Inc wants to make sure they never forget the first few days at work. At thesame time, the new recruits must get to learn as much as they can in those days about themselves and about the company they will work for. Induction programmesreinforce an organisations employment promise. Increasingly, recruitment and training

are emerging as major costs for companies and, therefore, the need to maximiseattraction and retain talent, says Nishchae Suri, managing director for Mercer, India. Naturally, the new ava tar oboot camps are not just for fun.

9. Reliance Expects to be Debt-Free This Year-Forbes June 03Reliance Industries Ltd. said Friday it will become debt-free on a net basis by the end ofMarch, a step that will allow India's biggest company by market value to expand itsbusinesses at home and overseas. Reliance has aggressive plans to grow its core areasof polyester and petrochemicals, as well as the new sectors of retailing and broadbandwireless, the company's billionaire chairman Mukesh Ambani said at its annual meetingof shareholders.

Reliance, controlled by Mr. Ambani, is aiming to become a global energy, retailing andbroadband powerhouse via organic growth and acquisitions. The company operates the

world's largest refinery complex, while it made three investments in shale gas in theU.S. last year to expand in that sector.

10.Ford eyes India, China to hit 50 pct growth target-Reuters June 08Ford Motor Co is aiming to expand its presence in the fast-growing auto markets of India and

China with an eye toward increasing the number of vehicles it sells per year by 50 percent bythe middle of the decade.

The No. 2 U.S. automaker, like its rival General Motors Co, is looking to markets other thanthe United States because of lingering weakness in the economy. The company said it wouldconcentrate on small cars, popular in developing economies, and that it was aiming for salesof small cars to represent 55 percent of total vehicle sales by 2020. Small cars currently represent about 48 percent of

Ford's total vehicle sales. Ford aims to double its dealer network in China by 2016, and adding 100 dealers this year.

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11.India is in a conundrum made by 'problem of plenty'-ET June 06Indian farmers have much to celebrate this year with a bumper wheat harvest. Aspredicted by the ministry of agriculture, wheat farmers have begun to harvest what isshaping up to be a record crop, projected at 84.27 million tonnes. We are growing more

wheat than ever before. The earlier record of 80.8 million tonnes of wheat production wasachieved in 2009-10.

Estimates show that food-grain production including wheat, rice, pulses and coarsecereals will also see a surge, and will go up to 235.88 million tonnes this crop year ascompared to the earlier record of 234.47 million tonnes achieved way back in 2008-09

The momentum is said to continue with the timely arrival of southwest monsoons, auguring well for the sowing ofwheat, coarse cereals and oilseeds. All of this should sound like good news to a country that is one of the world'slargest wheat consumers, but there is an underlying sense of despondency among farmers and economists alike.

12.Regulatory vacuum: Indian regulators are soft, indecisive and disempowered-ET June 07Satyam Computer pays a fine of $135 million in the US for falsifying its accounts; itsauditor Pricewaterhouse Coopers pays $33 million Fortune magazine reports that

Ranbaxy may have to pay $1 billion to the US pharma regulator to settle pendingcompliance issues Based on phone taps, Rajat Gupta, former managing director ofMcKinsey , is named by the US financial regulator in an insider trading case The USfinancial regulator has asked Wipro to prove the independence of KPMG, its auditor,following a financial fraud at the company last year

As corporate India goes global, it is engaging with regulators more demanding and

less forgiving than their Indian peers. The four recent instances mentioned abovedon't just paint the Indian entities and individuals concerned in poor light. It alsoquestions the effectiveness of Indian regulators, who, based on the sternness andswiftness of action taken by them, come across as soft, indecisive anddisempowered. The 2009-10 annual report of the Securities and Exchange Board of India says the capital marketregulator initiated all of 10 cases of insider trading that year.

13.A Facebook of Flak Awaits Cos Poking Buyers-ET June 07Brands now realise social media backlash can be bruising & brutal as it tries to intimidateSocial media can be as fickle as it is effective. Only a few months ago, a survey had anointedVodafone as the most admired telecom brand in the country amongst online social media usersfor its ads and promotions.

Now, the global telecom companys India arm is faced with a potentially huge social media

backlash as a swell of opinion grows against the company on social networking platformFacebook. The rallying point is a recent legal notice Vodafone sent one of its customers for his

alleged false and defamatory statements against it on social networks. The customer, Dhaval Valia, has become ahero for many Indians battling poor service quality and bad customer service of their telecom providers. Thats whasocial media can do for customer activism.

14.India's first desi cruise liner is set to begin its new voyage next week from Chennai-ET June 07India's first desi cruise liner is set to begin its new voyage next week from Chennai.Mumbaikars can look forwards to trips after the rains are over. The cruise liner, AmetMajesty will be able to take 1,000 people on board, but will be launched with only 500berths. It has four luxury restaurants, dance bars, swimming pools, spas and justanything that you would find on international luxury cruise liners.

Operating from Chennai, the cruise liner will take tourists to the high seas and offer

packages to the Andamans, Sri Lanka, Maldives, Thailand and a few Indian ports.Considering the weather along the two coastlines of the country, Amet Majesty hasscheduled separate seasonal operations, one for the Bay of Bengal and the other for the Arabian Sea.

15.Vertex bets big on domestic BPO market, to hire 14, 000 people in 2 years- ET June 07UK-based BPO firm Vertex today said it will increase its headcount in the country to 20,000employees over the next two years as it ramps up its operations in India. The Vertex group,which had acquired domestic player Shell Transource last year, has about 6,000 people on itspayroll (post-acquisition).

Vertex also expects its revenues from India to cross $100 million (about Rs 450 crore) by endof 2013, but Sweeny declined to comment on the current revenue figures. He added that the

domestic market for BPOs has grown at a compounded annual growth rate of 35 per cent.

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16.Meeting Revenue Target a Challenge, Admits Pranab-ET June 09Change in stance of ever-optimistic FM raises fears of sharp drop in tax mop-up, FM haswarned that revenue growth target for this year is challenging, a change in tune froman irascible optimist about the economy that has triggered concerns tax collections may

drop sharply as economic activity slows.

Already there exists scepticism about the governments budgeted expenditure numbersfor this year, and concerns on the revenue account could throw the governments fiscalconsolidation plans out of whack. While the finance minister spoke only about challenges,a parade of senior officials were more forthright in playing down expectations of the government being able to meet

its revenue growth targets. Finance secretary Sunil Mitra, said the task was tough.

17.At Infy, Each Employee is Worth More Than a Crore-ET June 09Software bellwether takes intangibles into account, starts valuing staff on itsbalance sheet PKumar, an Infosys employee helping customers in the US debugtheir software applications earns some Rs 5 lakh in annual salary, but is worth overRs 1 crore for Indias second biggest software exporter.

The only Indian tech firm to value its intangible assets, Infosys has valued each ofits 1,30,000 lakh employees based on their earning potentials till retirementIntangible assets are nonmonetary assets that are created through time and effortlike brand value, intellectual property and human capital. While Infosys started thispractice in 1996, other companies that have done this in the past include BharatHeavy Electricals, Steel Authority of India and Satyam Computers. Infosys follows

the popular Lev & Schwartz (L&S) model for evaluating how much the employees would earn for the company basedon present earnings, if they stayed till the retirement age of 60. This is after discounting the estimated earnings at theemployees cost of capital.

18.No filing of tax return for salary and interest income up to Rs 5 lakh-ET June 06As many as 85 lakh salaried tax payers whose taxable income, including salary andinterest income, is up to Rs 5 lakh, are not required to file income-tax return fromnow onwards. "No income-tax returns is required for salaried persons whose annualannual taxable income including salary and interest is up to Rs 5 lakh. We wouldshortly notify this," a Central Board of Direct Taxes official said

However, he said this would not cover income from other sources like houseproperty, capital gains and gains from profession and business. The scheme wouldbe applicable from assessment year 2011-12 onwards. This means that the salaried

persons eligible under the scheme would not have to file returns for the financialyear 2010-11 in 2011-12 (assessment year). The idea behind the move is that incases where there are no other sources of income, filing of a return is a duplicationof existing information.

19.LG India to enter B2B market-BS June 07The Indian subsidiary of Korean electronics major LG has announced its entry into thebusiness solutions segment, from which it aims to garner Rs 1,000-crore revenue by 2014

LG estimated that the total size of the business-to-business solutions for integrated displaymarket is around Rs 2,500 crore and growing at the rate of 20-25 per cent per annumThe company, under its new business segment, will offer digital devices and solutions forquick service restaurants, education, retails, hotel, office and banking businesses.

20.Tommy Hilfiger sticks to premium play-Afaqs June 08The luxury brand, which launched its childrens wear recently, has not budged fromits top-end positioning even in Tier 2 cities. A few years ago, Mohan Murjani gaveup the franchises of Gucci and Jimmy Choo in India as sales failed to match theexpected demand for luxury goods in India. But things have changed since then.

Murjani, who brought Tommy Hilfiger to India in 2004 in collaboration with ArvindBrands, seems to have struck gold finally, as the premium fashion brands saleshave been rising 50 per cent annually. Reason: increasing incomes even in Tier 2cities and Murjanis refusal to dilute the brands premium image, unlike some of hiscompetitors. In short, global luxury brands have to deliver the global brand promise to Indian consumers consistently,without any local dilution.

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INTERNATIONAL NEWS

21.China to become global banking king by 2023 report-Reuters June 04China could leapfrog the United States to become the world's largest banking economy by2023, 20 years earlier than expected, raising pressure on western banks to brush off theeffects of the credit crisis and head east. According to a report published by consultantsPricewaterhouseCoopers (PwC) on Friday, India is expected to leapfrog Japan to rank third interms of domestic banking by 2035 -- and could pass China as its population rapidly ages.

PwC's chief economist John Hawksworth urged current banking leaders, whose power has

been sapped by the credit crisis, to heed the accelerating shift in global economic power andclaim a share of emerging markets' relatively unbanked populations. Chinese banks already

dominate global rankings by market value, and some lenders have already secured heavy emerging market exposureto tap into booming demand for financial products from young and increasingly wealthy populations. Banks in thefast-growing emerging markets (E7) of China, India, Brazil, Russia, Mexico, Indonesia and Turkey have been relatively

shielded from the financial crisis that brought many western peers to their knees and sent asset values plunging.

22.Wal-Mart will continue chanting the low-price mantra-The Hindubusinessline june 06If the US economy needed some boost, then it got the dose in good measure at Bentonville,Arkansas, last Friday, when thousands of employees, shareholders and associates at Wal-Mart's annual shareholders meeting, chanted EDLP (everyday low price) and EDLC (everydaylow cost), two of the retail giant's time-tested mantras for success.

At $419 billion in sales and $16.4 billion in net profits, Wal-Mart, the world's largest retailer,

tops the Fortune 500 list. This even had Hollywood superstar Will Smith term thecompany Wil-Mart. Winking at Mr Rob Walton, the company's Chairman and the founder'sson, Smith urged Walton to adopt him.

23.Moody's sounds alarm over U.S. debt limit, deficits-Reuters June 03Ratings agency Moody's warned on Thursday it would consider cutting the United Statescoveted top-notch credit rating if the White House and Congress do not make progress bymid-July in talks to raise the U.S. debt limit. Treasury Secretary Timothy Geithnerseeking to convince Congress to increase his borrowing authority and prevent agovernment default, went to Capitol Hill to press his case in a 45-minute meeting withfirst-term lawmakers.

Moody's warning increases pressure on President Barack Obama and House ofRepresentatives Speaker John Boehner, the top Republican in the U.S. Congress, to strike

a deal soon or risk upsetting global financial markets. Geithner has predicted a financiacatastrophe if Congress fails to increase the current $14.3 trillion borrowing cap by Aug.

2, when his department will exhaust the extraordinary cash management measures it has been using since reachingthe debt limit on May 16.

24.Investors dump BlackBerry as iMessage seen big threat-TNN June 04Apple's iMessage took its toll on the BlackBerry maker Research In Motion (RIM) on Tuesdaywhen its stock sank below $37 - the lowest level since 2007. iMessage announced by Apple onMonday will challenge RIM's highly popular BlackBerry Messenger (BBM) instant chat servicewhich has given the Canadian company an edge over its rivals.

An Internet-based service, the iCloud will allow users to have access to their data across theirApple devices - from the iPhone to the iPad to the iPod. The Apple announcement madeinvestors more jittery, plunging RIM stock on both the Toronto Stock Exchange and Wall Street Tuesday. It slipped

more than three percent in Toronto to close at $36.92, and 2.8 percent on Nasdaq to close at $37.82. The RIM stockhas sunk more than 35 percent this year alone.

25.Killer E.coli strain described as deadliest yet-Reuters June 03A virulent new strain of E.coli bacteria that has killed at least 17 people in Europe may be thedeadliest yet in human history, health experts said. Germany is at the centre of the outbreakwith more than 1,500 people ill from eating contaminated vegetables and salads, but theprecise source of the new strain is not yet known.

The highly infectious variant has never affected humans before. And with new cases now alsoreported in the United States, consumers appear to be nervous around the world.The outbreak has put strains on trade relations, with Russia drawing EU criticism after banningraw vegetable imports from Europe and accusing Brussels of failing to handle the crisis.

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MISCELLANEOUS NEWS

26."Internet surfing more disciplined in India now," reveals study-Campaignindia June 03Indian internet usage habit growing more pre-planned and time efficient, consistent withglobal average: Study by Microsoft Advertising, MEC and Mindshare. Microsoft Advertising,MEC and Mindshare have released a study entitled 'Living with the Internet -- What is DrivingWeb Behaviour', designed to understand the nature of time spent online across the world. Thestudy is intended to gain better insights on consumers' web behaviour and help marketersand brands make the best use of the same.

Commenting on the study, R Gowthaman, leader, Mindshare, South Asia said, "This is ourhonest and humble attempt to bring some method to the madness. Internet is now one of the basic utilities likeelectricity, gas etc., and it needs to be looked on the back of popular culture we are getting into."

27.Number of overseas students continue to fall in Australia-ET June 03Australia's education industry has witnessed an 8.7 per cent drop in international enrolmentsthis year, particularly from India following a spate of violent attacks on Indians. Tightening ofstudent visa rules by Australia is also blamed for the sharp decline in the enrolment of theforeign students.

Australian education providers have reported an 8.7 per cent drop in internationaenrolments during the first three months of this year compared with the same period lastyear, 'The Age' reported. The report said the biggest challenge for the sector is the Indian

market where the numbers all sectors fell by 30.4 per cent, continuing the year's trend, outlined in figures released in

April for February enrolments.

28.Govt in a Pressure Cooker & Theres More Cooking-ET June 07Prime Minister Manmohan Singh broke his silence to justify the crackdown on protestersled by Baba Ramdev as the government found itself battling a storm of criticism,deepening the crisis that threatens to make it a lame duck half-way into its term. On aday the governments weekend actions came in for some serious ques tioning by theSupreme Court, Singh described the episode as unfortunate, but said the governmentwas left with no alternative. Police launched a midnight raid on the protest site at theRamlila Maidan on Saturday, detaining the yoga guru and dispersing his followersassembled to support his anti-corruption campaign.

But the manner of the police action on protesters, many of whom claimed they were beaten up by lathi-wieldingpolicemen, had the Supreme Court asking the government to explain its behaviour, piling on the troubles for the

Congress-led UPA that has been hobbled by a series of scandals and is increasingly isolated politically under attackfrom friends and foes alike.

29.India to launch 12 foreign satellites in two years-TNN June 03India has bagged multi-million dollar contracts to launch 12 foreign satellites in the lower orbitfrom its spaceport over the next two years, a top space agency official said on Wednesday. Ofthe 12 satellites, four are from Canada, two each from Indonesia and Germany and one fromLuxembourg. The remaining three spacecraft are from universities in Europe.

"Through our commercial arm Antrix Corporation , we have received orders from Canada,Indonesia, Germany and other European countries to launch a dozen satellites in the sun-synchronous orbit during the next two years," state-run Indian Space Research Organization (ISRO) Chairman K. Radhakrishnan told reporters here. Antrix is also in negotiations with

France to launch a remote sensing satellite (EnMAP) in the lower orbit.

30.New Delhi Starts Drive To Root Out Hunger-WSJ June 08From the field to the table, India is setting in motion a drive to stop rampant food waste thatcould feed millions of people who going hungry despite successive years of strong farmoutput. The government has appointed a 15-member panel to suggest ways of curbing wasteas well as overcoming distribution hurdles that plague its bulging cities. The committee's firstmeeting will be held June 23, a food ministry official said Wednesday.

The panel is expected to submit its report in the next three to four months. Nearly 30% of thecountry's fruits and vegetables perish due to a lack of cold-storage facilities, while thousands of tons of food-grainspoil in ill-equipped warehouses. Between 15% and 20% of cooked food at weddings, parties or restaurants is wastedas well. "So, starting from the field to the stages of cooking and serving, we are looking at the entire gamut of foodwastage," Mr. Thomas said.

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PERSONAL COMPUTER INDUSTRY

Indian PC Market: Indian PC market is price conscious and is dominated by assemblers. At present, assemblersaccount for over 60 percent of it. One main advantage of these white box manufacturers is the zero cost incurred onsoftware, as they install pirated software. To overcome this problem, manufacturers are now installing Linux on theirmachines. This keeps the customer happy as he gets to use legitimate software and the manufacturer also does nothave to incur any software-related expense.

Current Trends:

The combined desk-based and mobile PC market in India totalled nearly 2.7 million units in the fourth quarter of2010, a 16.2 per cent increase over the fourth quarter of 2009, according to Gartner, Inc. This growth rate was morethan five times the worldwide PC markets growth average in the fourth quarter of 2010. Personal computer makeHewlett-Packard (HP) has regained its numero uno position in India after losing it for two consecutive quarters in

2010 to Dell. The company clocked a higher market share than Dell in the

October-December quarter last year.

This growth was primarily driven by the mobile PC market which grew 39percent in the fourth quarter of 2010.A fall in prices, large deals fromgovernments and demand from consumers and the education sector droveMobile PCs sales. Many small and midsize businesses are buying mobilePCs which is further fuelling growth.

However according to market intelligence firm IDC Indian PC market grew

by 31% in 2010 and is expected to grow to 22% In 2011.The overall sales growth of 31% was largely led byconsumer spending. The growth of notebook PCs in 2011 will accelerate to 42% leading to an overall growth of 22%in terms of unit sales year-on-year. IDC India attributes the relatively slower PC sales growth expected in 2011 to theeffect of a larger base. Government, education, ITeS and telecom verticals are expected to continue to invest in orrefresh their PCs. PC purchases by BFSI, retail and healthcare verticals are expected to pick up in 2011. Adoption of anotebook PC as the first PC is likely to show growth in 2011. IDC India expects the overall average selling price ofdesktop PCs to drop in 2011 by about 13 per cent and notebook PC prices to drop by about 5 per cent.

SWOT analysis of PC Industry:

Strengths: Several players like Dell have low operating costrelative to revenue because they cut out the retailer and supplydirectly to the customers. Many companies assemble thecomponents using cheap labor rather than manufacturing it

themselves further bringing down the cost. The software productshave high broad-based corporate and consumer acceptance (Word,Excel, PowerPoint, Access), and numerous powerful features thatare in use worldwide, thereby promoting standardization andcompetitive advantage through their ease of integration and cost-effectiveness.

Weakness:Since many companies are assembling firms thereforetheir each product is custom-built according to customers specifications which might take days to finish, causingcustomer inconvenience. Products in the PC industry tend to depreciate in value quickly and the new developments intechnology routinely make old products obsolete.

Opportunities: Cheaper global telecommunication costs open new markets as people connect to the Internet. PCcompanies are entering into contracts with the federal government as computers are increasingly used to collect data

and develop the military. The PC industry produces more than just desktop and laptop computers, with hand-helddevices, smart phones, servers, storage systems, networking equipment and computer-embedded industrial productsbecoming growth areas. For example, many products such as automobiles now have computers embedded withinthem. Multimedia devices with multiple capabilities, such as cell phones that can be used as video cameras, arebecoming increasingly popular.

Threats:New entrants to the market pose potential threats. The threat to become outmoded is a pulsating reality ina computer business.With almost identical prices, price difference is no longer an issue for a customer. Currencyexchange rates affect demand for application/operation software and hardware, and fluctuating currencies cannegatively impact revenues in the global marketplace. Rapid development of mobile devices that will replace personacomputers is always a cause of concern. Software piracy of commercial and consumer applications software on aglobal scale threatens revenue streams.

Vendors 4Q10 Market Share (%)

HP 15.8

Dell 13.0

Acer 10.7

Lenovo 9.6

HCL 7.8

Others 43.1

Total 100.0

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CURRENT AFFAIRS QUIZ

1. In Personal Computer Industry many companies are _________ therefore their each product is custom-builtaccording to customers specifications.

a. Assembling Firmsb. Manufacturing Firmsc. Sole proprietorship firmsd. Public limited Firms

2. With which famous accounting firm did Deepak Parekh start his career with?a. Ernst & Youngb. PriceWaterhouseCoopersc. Deloitte Touche Tomahatsud. KPMG

3. The ________ has made the island state - Singapore - the sixth most expensive city in Asia for expatriateliving.

a. strong Asian economyb. strong Singapore dollarc. Singapore export policyd. strong GDP growth

4. What is the commercial arm of ISRO known as?a. ISRO business holdings corporationb. SkyCommerce Ltd.c. Tara Space & Communications solutionsd. Antrix Corporation

5. The recent E.Coli outbreak was caused due to contaminated_______________________.a. Fruitsb. Meatc. Milkd. Vegetables

6. Research in Motion is based out of which country?a. USAb. Canadac.

UKd. Japan

7. What is the current borrowing limit of the US Treasury?a. $10 Trillionb. $14.3 Trillionc. $5 Trilliond. $ 11.6 Trillion

8. What is the name of India's first indigenous cruise liner?a. Queen of the Arabianb. Amet Majestyc. Indian Stard. Samudra Hans

9. Which is the No. 2 Automaker in the US?a. GMb. Fordc. Chryslerd. Toyota

10.Nokia's position in the emerging markets is under threat, why?a. Competition from low cost mobile manufacturersb. Declining share in the Smartphone marketc. both 1&2d. Only 1

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11.Reliance retail has a distinction as the largest player in which category?a. Apparelb. Foodc. Jewelleryd. White Goods

12.The government's move of cars having to carry fuel efficiency labels means :a. customers will now be aware about the exact mileage of the vehicle.b. cars with high fuel consumption will not be allowed to run on the roads.c. cars running on fuels that are less harmful to environment will be incentivized.d. cars can only run on fuels that adhere to specified environment standards.

13.SMS spam and WAP (wireless application protocol) banner are the tools of ________ .a. Internet advertisingb. TV advertisingc. Radio advertisingd. Mobile advertising

14.Sharing on the web generates more than 10 per cent of all internet traffic. Name the largest sharing channelacross the web space.

a. Twitterb. Facebookc. YouTubed. MySpace

15.In the Annual Global report, India, China & the US are among the top 4 wealth creators, which is the 4thcountry?

a. Brazilb. Russiac. Japand. UK

16.According to which report by Ernst & young was India ranked 5th most attractive destination for FDI?a. 9th Annual European attractiveness surveyb. Asian FDI Surveyc. 10th Annual most preferred destination surveyd. Global Investment Survey

17.Reliance retail is all set to enter which new format?a. Cash & Carry wholesaleb. Specialized retailc. Discount Storesd. Vending

18.PepsiCo is tying up with which FMCG major to market Lipton Ice Tea?a. Tatab. P&Gc. HULd. Dabur

19.What is the size of the direct selling industry in India?a. Rs 1250 Crb. Rs 2430 Crc. Rs 4120 Crd. Rs 3830 Cr

20.Reliance Industries is aiming towards a major financial milestone? What is it?a. To become debt free by year endb. To have the maximum number of acquisitions this yearc. To enter the aerospace sectord. To invest heavily in emerging economies

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21.Which telecom provider was voted as the most admired brand amongst social media users for its ads &promotions?

a. Vodafoneb. Airtelc. Idead. Uninor

22.The premium brand brought to India by Murjani that recently launched children's apparel has partnered withwhich other company in India?

a. Madura garmentsb. Raymondc. Arvind Brandsd. Provogue

23.Which consulting agency has predicted that China could become a banking king by 2023?a. BCGb. PriceWaterhouseCoopersc. E&Yd. McKinsey

24.Which of the following is an E7 country?a. Indiab. USAc. UKd. Japan

25.This company earned $16.4 Billion in profits & is the world's largest retailer, name its Chairman.a. Vikram Panditb. Rob Waltonc. Mike Duked. H.Lee Scott

ANSWER KEY:

Q A Q A Q A Q A Q A

1 a 6 b 11 b 16 a 21 a

2 a 7 b 12 a 17 a 22 c

3 b 8 b 13 d 18 c 23 b

4 d 9 b 14 b 19 c 24 a

5 d 10 c 15 d 20 a 25 b

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Documents

CA Newsletter June 03 to June 9