finxpress_7thoctober2012

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October 7 ,2012

Company In Focus

Editoria

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Company in

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Term of t

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Mark

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News of t

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Cover Sto

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Fun Corner

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Term of the Week

INSTITUTE OF MANAGEMENT TECHNOLOGY, GHAZIABAD

Cover Story: Apple vs Samsung

Ultimate Touch Beauty Parlour | 10/27 Raj Nagar, Near Arun Chaat | Ph No 4104320

October 7 ,2012

EDITORIAL

PAGE 1 http://www.imtgfinxpress.co.cc

Dear Readers,

Greetings from FinNiche!

The government continued this week with its reform agenda. This is resulted in drawing the battle lines sharper in

the political arena. The BJP this time has seemed to be bit more restrained in its opposition to the policies of the

government. They are doing a tight rope walk so as to not appear as anti-reform. The opening up of sectors like

pension and insurance would occupy a dominant space in this weeks’ news section.

In this edition of FinXpress, we have Michael Page International as the ‘Company in Focus’. The ‘Term of the Week’

would cover a highly specialized form of securities called Structured Product. The continuing high pitched battle

between Apple & Samsung would be the discussion point in the ‘Special Page’.

We sincerely hope that the readers will find the content engaging. We would appreciate feedback and suggestions

for improvement. We hope to bring to you more information in the future thus keeping you updated and adding to

your knowledge base. Till then, “Enjoy Reading”!

Yours Sincerely,

The Editorial Board

FinXpress


October 7 ,2012

COMPANY IN FOCUS

Michael Page International

Michael Page International plc (LSE: MPI) is a leading British-based recruitment business. It is headquartered in Weybridge, Surrey. The Company was formed in 1976 by Michael Page and Bill McGregor who placed accountants into permanent positions in the United Kingdom. Initially the pair worked in London, but by 1979 had opened offices in Manchester, Birmingham, Glasgow, Leeds and Bristol. In 1985 an office was opened in Australia, and the organization opened in France in 1986. Michael Page himself retired in 1995, with Terry Benson appointed as Chief Executive in 1990. In 2006 Terry Benson resigned, and Steve Ingham was appointed Chief Executive.

In 1985 Michael Page City was launched, specializing in banking and financial services recruitment. In 1986 the

organization expanded into Legal recruitment. In 1992 a division was opened for Public Sector recruitment, and

for Engineering in 2001.

STRUCTURE Michael Page International is a provider of permanent, contract and temporary recruitment for clerical professionals,

qualified professionals and executives. The company is organized into three operational brands Michael Page, Michael

Page Executive Search and Page Personnel. The Company specializes in the recruitment of qualified professionals.



http://en.wikipedia.org/wiki/Weybridge

http://en.wikipedia.org/wiki/Surrey

http://en.wikipedia.org/wiki/Weybridge

October 7 ,2012

FINANCIAL ANALYSIS

ANNUAL REPORT

No. Employees 5,286

Revenue £1,019.1m

EPS (Basic) 18.7p

Dividend 10p

Closing Share Price (p) 365.10

Number of Shares in Issue (m) 303.21

Market Capitalisation (£m) 1107.03



October 7 ,2012

TERM OF THE WEEK : Structured Product


A structured product is a pre-packaged investment strategy based on derivatives such as a single security, an index, debt

issuances or even foreign currencies. It is also known as a market-linked product. Most structured products that are sold

in India, have 'principal protection' function as the key, which means that the investor is assured that he will not lose

anything from what he has invested. Structured products are designed to facilitate highly-customized risk-return

objectives.

Structured products are privately placed and typically offered to high net worth individuals. Structured products are

issued in the form of NCDs (Non convertible debentures), whose returns are linked to an underlying stock index such as

the Nifty or a basket of stocks. For retail investors, sophisticated structured products, depending upon the market

conditions, can be specially created for a set of clients and privately placed.

One product could differ from the other based on its tenure, participation rate and trigger conditions. With their

popularity increasing, they are also available in the form of mutual fund products, mostly as debt schemes in the form of

fixed maturity plans (FMPs).

To understand the term better let us take the example of a simple Nifty-linked capital protection structure. Say, you

invest Rs 100 in a product with tenure of 40 months. Of this, Rs 80 is invested in debt securities, yielding a return of 6-7%

per annum. Thus over a period of 40 months, you could get Rs 20 as interest on these debt securities.

Hence, this ensures that your capital of Rs 100 is protected. The balance of Rs 20 available is invested in the Nifty. If the

Nifty doubles in 40 months, Rs 20 will become Rs 40. Thus the value of your Rs 100 will be Rs 140 at the end of the

period giving you an absolute return of 40%.

On the other hand, if the Nifty were to fall by say 50%, then Rs 20 invested would become Rs 10, thereby giving you

Rs 110 back. This strategy ensures that at any given time, your capital is protected and you will get Rs 100 back at the

end of 40 months.

While this is a simple structure, more complex structures using quantitative strategies could be deployed, depending on

the risk profile of the investor to generate higher returns.


October 7 ,2012

MARKET THIS WEEK


SENSEX gained 0.94% from last week and ended at 18938 this week.

Simple Moving Averages

Returns – BSE Sensex

The Nifty rose 0.77% from last week and ended at 5746 this week.

Simple Moving Averages

Returns – Nifty

30 Days 50 Days 150 Days 200 Days

18125 17843 17279 17189

30 Days 50 Days 150 Days 200 Days

5487 5405 5241 5208

YTD 23.07 % 1 Week 2.00 % 1 Month 5.00 % 3 Months 10.20 %

6 Months 6.10 % 1 year 10.90% 2 Year -5.30 % 3 Year 13.40 %

YTD 22.54 % 1 Week 0.94 % 1 Month 9.40 % 3 Months 8.00 %

6 Months 10.00 % 1 Year 19.90 % 2 Years -7.20 % 3 Years 12.30 %


October 7 ,2012

Overview

The Indian markets wrapped up the week ended October 05, 2012 in green for the fifth straight week. The markets

ended the 40th trading session of 2012 with the Sensex rising 0.94% and the Nifty up by 0.77%. India received a

further push on Thursday, (October 04, 2012) with the cabinet approving legislative changes on foreign direct

investment ( FDI) in insurance ventures to 49% from 26% and opened the pension sector for overseas investors. The

market sentiment was also boosted by data showing that foreign institutional investors (FIIs) remained buyers of

Indian stocks during the week. The buying also boosted the Indian rupee which touched its six month high against

the dollar.

Policy Rates Reserve Ratios Lending Deposit Rate

Bank Rate 9% CRR 4.50% Base Rate 10%-10.5%

Repo Rate 8% SLR 23%

Savings

Deposit Rate 4%

Reverse Repo

Rate 7%

Term

Deposit Rate 8%-9.25%

Margin Standing 9%

Exchange Rate

v/s INR Commodities unit Rs./unit

%

change

Currency Symbol Rate

%

change Gold 10 gms. 31173 0.23 %

US Dollar $ 51.83 -0.62% Silver 1 Kg. 61808 0.12 %

Euro € 67.25 0.23% Crude Oil 1 BBL 4679 0.36 %

Dirham AED 14.06 -0.27%

Japanese Yen ¥ 0.66 -0.28%

Chinese Yuan CNY 8.18 -0.18%



October 7 ,2012

NEWS OF THE WEEK

Big Bang Reforms: Cabinet Approves 49% FDI in Insurance, 26% in Pension Sector

FDI in Insurance Sector

Carrying forward the big-ticket reforms agenda, the government on Thursday decided to hike foreign investment

ceiling in the insurance sector to 49 per cent from the present 26 per cent. A decision in this regard was taken by the

Union Cabinet headed by Prime Minister Manmohan Singh.

The benefit of this amendment will go to the private sector insurance companies which require huge amount of

capital. The finance minister P Chidambaram clarified that state-run insurance companies will remain in the public

sector. With the Cabinet approving the proposal, the Insurance Laws (Amendment) Bill is likely to be taken up by

Parliament for passage in the forthcoming Winter Session.

The Insurance sector was opened up for private sector in 2000 after the enactment of the Insurance Regulatory and

Development Authority Act, 1999 (IRDA Act, 1999). This Act permitted foreign shareholding in insurance companies

to the extent of 26 per cent with an aim to provide better insurance coverage and to augment the flow of long term

resources for financing infrastructure.

FDI in Pension Sector

The government also gave green signal to foreign investment in pension funds and said the FDI limit could go up 49

per cent in line with cap in the insurance sector. Allowing FDI forms a part of the amendments to Pension Fund Regu-

latory and Development Authority (PFRDA) Bill, which was approved by the Union Cabinet.

The PFRDA Bill was introduced in the Lok Sabha in March 2011, following which the standing committee on finance

gave its recommendations in September last year. Chidambaram said the government has accepted five key

recommendations of the standing committee. The bill, which would allow part investment of the corpus in stock

markets, is likely to be taken up for discussion and passage in the upcoming session of Parliament. The bill provides

powers to the PFRDA to oversee multiple pension funds in the country and also paves way for being a full-time

regulator for the sector. It also provides for establishment of a statutory authority to undertake promotional,

developmental and regulatory functions in respect to pension funds.

Cabinet Clears Companies Bill, Amendments to Competition Act

AMENDMENTS TO THE COMPETITION ACT

The Cabinet on Thursday gave its nod to the Companies Bill 2011 and amendments to the Competition Act 2002.

Putting to rest all concerns on whether bank mergers will be out of the Competition Act ambit, Finance Minister P.

Chidambaram told newspersons that the Act governs all sectors. But, banks and insurance companies that have got

approvals for forced mergers have been exempted from the purview of the Act. The proposal after its initial

consideration in April, 2012 was referred to a Group of Ministers to examine in detail, with particular reference to

jurisdiction of sectoral regulators on Competition related issues.

Major amendments approved by the Cabinet relate to changing the definition of “turnover”, “Group”, reducing the

overall time limit of finalisation of combinations from 210 days to 180 days and insertion of a new Section 5A

enabling the Central Government to lay down, in consultation with the Competition Commission of India, different

thresholds for any class or classes of enterprises for the purpose of examining acquisitions, mergers and

amalgamations by the Commission.



http://timesofindia.indiatimes.com/topic/Insurance

October 7 ,2012

COMPANIES BILL

After nearly two decades of efforts to revamp the exiting Companies Act 1956, the Companies Bill 2011 aimed to give

a modern legislation for growth and regulation of corporate sector was approved with certain modifications. The Bill

gives a clearer direction to the role of auditor, corporate social responsibility, and inter-corporate loans and makes

whole-time directors more accountable and defines private placements, among others.

Once the Bill becomes a law, corporate will be expected to give valid reasons if they are not spending the amount

earmarked for CSR activities. However, the Bill does not make it mandatory. What may seem relevant today, the Bill

has modified provisions for audit of Government companies by Comptroller and Auditor General of India (C&AG).

The modification has been made to enable C&AG to perform such audit more effectively.

LPG Price hiked; petrol, diesel may go up Cooking gas (LPG) price was on Saturday hiked by Rs. 11.42 per cylinder following government decision to raise

commission paid to the dealers. Subsidised LPG in Delhi will now cost Rs 410.42 per cylinder, up from Rs 399. In

Kolkata the new price is Rs 412.42, in Mumbai Rs 434.42 and in Chennai Rs 397.92.

The Ministry on Saturday issued orders raising commission paid to LPG dealers from Rs 25.83 per 14.2-kg cylinder to

Rs. 37.25, government officials said. The 44 per cent or Rs. 11.42 per cylinder increase in the commission on the

subsidised cooking fuel is being passed on to consumers, they said. For the consumer, subsidised LPG in Delhi will

now cost Rs. 410.42 per cylinder, up from Rs. 399.

Petrol and diesel prices too may go up marginally as the Oil Ministry considers raising dealers commission by at least

23 paisa and 10 paisa a litre respectively. The hike comes within weeks of the government deciding to restrict supply

of subsidised cooking gas to 6 cylinders of 14.2-kg size per household in a year. The remaining supplies would have to

be sourced at market rates.

Polls announced for Himachal, Gujarat

An air of anticipation descended on the national capital on Wednesday with the Election Commission announcing

elections to the Assemblies of Gujarat and Himachal Pradesh. With the ruling BJP in a keen fight with the Congress in

both States, the results are thought to have a decisive bearing on how politics unfolds in the country over the coming

months.

Himachal Pradesh will go to the polls in a single phase on November 4 while Gujarat will follow suit with two phases

on December 13 and 17. Counting of votes for both States will be held on December 20. With Narendra Modi and

Sonia Gandhi already locked in combat, the stage seems to have been set in Gujarat for a bitter, no-holds barred race

between the Congress and the Bharatiya Janata Party.

Arvind Kejriwal launches new party Invoking the names of Mahatma Gandhi, Lal Bahadur Shastri, B.R. Ambedkar and Sardar Patel, India Against

Corruption on Tuesday announced the launch of a party to provide “alternative politics for changing the system and

giving power back to the people.”

However, IAC member Arvind Kejriwal did not disclose the name of the party, saying it had not been registered yet.

The name of the party and its constitution and, possibly, the list of office-bearers would be announced at another

function scheduled for November 26, Ambedkar Jayanti.

Anna Hazare, who was here on Monday, did not stay on to attend the function, prompting psephologist Yogendra

Yadav — who shared the dais with IAC members — to remark that without the anti-corruption campaigner the team

might take longer to win people’s trust without him.



October 7 ,2012

COVER STORY

As Samsung airs TV ads poking fun at those that waited in line for the iPhone 5, the legal shots between the

companies continue. A little over a month after a California jury recommended Samsung pay over $1 billion in

damages to Apple for patent infringement, the judge in the case has lifted the ban on Samsung's Galaxy Tab 10.1.

The titanic tussle between the two giants, which has led to one of the biggest penalties for patent violations in legal

history, is far from over. The case has big implications for the tech industry, which is facing a tsunami of patent-

related lawsuits. It shows how patents covering the look and feel of devices are increasingly being “weaponised” by

their holders. It highlights the propensity of juries to award huge damages in intellectual-property disputes. And it

will give added ammunition to those who feel that the current system of granting and policing tech patents in

America needs to be overhauled. The legal battle between Samsung and Apple is also intriguing because the

archenemies work closely together. Samsung is one of the biggest suppliers of components such as memory chips for

Apple’s gadgets. But its phones and tablets, which so far have used Google’s Android operating system, compete

head-on with Apple’s iPhones and iPad tablets. The tension between the two firms has grown as competition in the

smartphone arena has intensified.

The fight between the two companies had been brewing for some time and was a litmus test for Apple’s

determination to thwart the progress of Android, a rival mobile operating system championed by Google and

embraced by Samsung and a host of other mobile-device makers. The reason why Apple hasn’t sued Google is

because Android is free and Google doesn’t profit directly from sharing the OS with phone makers. Samsung, on the

other hand, chooses to use Android and is generating revenue upon which Apple can calculate damages. Samsung

has been leading the charge of the Androids. To counter it, Apple has launched a bombardment of lawsuits against

its rival around the world, claiming that Samsung’s devices breach various patents it holds. On the day that the jury

in San Jose delivered its ruling, a court in South Korea hearing a similar case said both firms were guilty of patent

violations against the other and banned some of their devices from sale in the country. But since America is the

world’s largest market for consumer electronics, the Californian ruling will have a far greater impact.

The jury in San Jose concluded that Samsung had violated several of Apple’s utility patents covering things such as

bounce-back scrolling, which makes such things as on-screen icons and web pages rebound if swiped too far, and tap

-to-zoom functionality, which makes it easy to zero in on, say, an image or a map. It also said the South Korean

company had copied the overall look of the iPhone, including the rounded corners of icons, thus breaching several of

Apple’s design patents. To add insult to injury, the jurors tossed out the South Korean firm’s claims that Apple had

ripped off some of its own innovations.

Samsung and other firms are likely to tweak the design of their devices to avoid further legal bombshells in America.

However tech pundits feel that the outcome of the case could be seen as a victory for Samsung on the ground that

the penalty is a small price to pay for copying stuff that has helped the firm become a powerhouse in mobile devices.

Another set of experts feel that it could also spark a new round of innovation in the long run, as firms in the Android

ecosystem seek to differentiate their offerings to protect them from more legal strikes by Apple.

The war between the two tech giants, analysts believe, will only get fiercer. Famous tech industry analyst Patrick

Moorhead has said "Samsung views Apple as a threat to their long-term survival and will do what it takes weaken

them. Samsung will spend billions to do this as their company is under attack."

Even if the public doesn't follow the legal dispute, they won't be able to escape the ads. Samsung has taken out print

and video ad space all over to push its Galaxy S III over Apple's new iPhone 5. Ultimately, there's no avoiding the war.


Apple vs Samsung: The Battle goes on...


October 7 ,2012 PAGE 11 http://www.imtgfinxpress.co.cc

CAN YOU SOLVE IT? Match the following:

CARTOONS:

**Rush in your entries to : [email protected]

The right entries will get their name featured in the next issue of FinXpress. So hit the quiz fast & get yourself visible among 1000 odd in the campus.

Feel free to write to us at : [email protected]

Drop in your suggestions to the editorial team :

Magazine design/news : [email protected]

Articles/quiz : [email protected]

LAST WEEK’S ANSWERS

1) Virginia House ITC

2) The Big Australian BHP Billiton

3) Y W Lee Bose Corporation

4) Sameer Gehlaut India Bulls

5) Xerox Haloid Corporation

Winner: Sashikanth Yenika

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Michael Page International A.M. Naik

ITC Jamie Dimon

L & T Y.C. Deveswar

Apple Stephen Ingham

J.P. Morgan Chase and Co. Tim Cook


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