JANUARY 1, 2011

VOLUME 4.19ISSUE 81

New is the year, New are the hopes and the aspirations,

New is the resolution, New are the spirits and forever my warm wishes are for u.

Have a promising and fulfilling new year.

Rates 01Graphs 02News 03National & International events in the world of finance

Debate 04Bharti Airtel’s Expansion Plan

Contemporary ArticlesPricey veggies push food inflation to double digits 05JSW Buys ISPAT 06

Investor’s Check 08Stock Watch 09GMR Infra

Commodity article 10The White Shining Commodity: Silver

Did You Know? 12 Facts about International Currency

Investor Focus 14Alumni Speak 15A peek into the corporate world through our Alumni’s

experience

Buzz Words 16Fincopedia

Quiz 17Check your Financial Quotient

Repo 6.25% Reverse Repo 5.25%Call rate 5.35-7.00%Inflation(as on 28th Dec) +7.48%Forex Reserve $ 294.602 billion(as on 17th Dec 2010)91 day T-Bill 7.1858%IIP (for October) +10.8%6.90 GS 2019 8.0907-8.0907%

RATES

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STUDENT’S CARTOON By- Md Zafar I MBA M

44

44.5

45

45.5

46

15-Dec 18-Dec 21-Dec 24-Dec 27-Dec 30-Dec

Rs/$

GRAPHS

02

18900

19000

19100

19200

19300

15/Dec 18/Dec 21/Dec 24/Dec 27/Dec 30/Dec

Gold(per 10 gram)

15000000

17500000

20000000

22500000

25000000

5700

5800

5900

6000

6100

6200

15/Dec 18/Dec 21/Dec 24/Dec 27/Dec 30/Dec

future rates open interest

5800

6000

6200

6400

19,500.00

19,700.00

19,900.00

20,100.00

20,300.00

15-Dec 18-Dec 21-Dec 24-Dec 27-Dec 30-Dec

sensex nifty

88

90

92

94

96

15/Dec 18/Dec 21/Dec 24/Dec 27/Dec 30/Dec

Oil(per bbl)

INTERNATIONAL NEWS

• Welspun buys 35% stake in Australian Leighton group’s Indian subsidiary, Leighton Contractors for

`470 Crore.

• Bridgestone corp. Plans to invest `170 crore in India by setting up a factory in Indore.

• Banon Automotive Llc of New York in suing Mahindra Reva Electric Vehicle Pvt. Ltd for $25 million.

• Gitanjali gems acquired 90% stake in Italy’s Glanyyi Italia SRL.

• Major Chinese companies have clocked astounding year on year profits of nearly 50% in the first 11

months of 2010, the National Bureau of Statistics said on Monday while reporting the performance of

39 companies with annual revenue exceeding five billion yuan ($754 million).

NATIONAL NEWS

By- Vaibhav Nagar I MBA L

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• Munjals, owner of hero Honda group are considering taking a yen loan to finance their purchase of

26% that Hero Motar Co. owns in Hero Honda.

• BSE’s and Taqwaa Advisory and Shariah Investment solutions launch the BSE TASIS Shariah 50

Index .

• Yes bank has recalled `100 Crore of loans it advanced to microfinance institutions (MFI) which have

been negotiating with commercial banks as they battle the crisis of confidence.

• Power grid corporation of india plans to seek $ 1 billion loan from world bank and Asian develop-

ment bank.

• In the first crossborder deal for the Indian hospitality sector this year and also the first one for Subrata

Roy’s Sahara India, the Lucknow-based financial services-to-real estate conglomerate has acquired

UK’s iconic Grosvenor House hotel for a knock-down price of £470 million (`3,275 crore) from the

Royal Bank of Scotland (RBS).

• From June 30, 2011 50 paise will be the minimum coin accepted in the markets as all denominations

below it will cease to be legal currency. Also, the entries in books of accounts, pricing of products,

services and taxes should be rounded off to 50 paise or whole rupee from this date.

• Silver prices rallied to conquer another milestone of `47,000 a kg at the bullion market on December

30,2010 on hectic speculative buying triggered by a surge in international market.

BHARTI AIRTEL’S EXPANSION PLAN By- Richa Jain I MBA L

ForNot far back in the history, Bharti started telecom services business by launching mobile services in Delhi in the year 1995. In no time Bharti Airtel became the leading telecommunication service provider in the country with its presence in 22 telecom circles. The company has a very strong customer base of 130.69 million customers in India as on March 31, 2010. The company also has big plans in Wi-Fi and 3G ser-vices in the country. Last couple of years was difficult for Telecom industry with increased competition and cut-throat tariff wars. Unperturbed by the competition Bharti continues to look for the opportunities within and outside the telecom sector.

Bharti Airtel, after firmly establishing itself in India, is spreading its wings beyond geographical boundar-ies. In the year 2007, its Sri Lankan arm - Bharti Airtel Lanka was granted license in the island. In January, 2009 the company commenced commercial operations and now has an aggregate of 1 million customers. It is Sri Lanka’s fastest growing wireless operator. After the successful foray into Sri Lanka, the company entered the Bangladesh market by acquiring a majority stake in Warid Telecom in January, 2010.

Bharti continued to explore international expansion opportunities with the focus on South Africa. In early 2010, Bharti Airtel Limited entered into an exclusive discussion for the acquisition of Zain’s African unit (Zain Africa BV). A lot of groundwork was required for the deal. The process involved due diligence, regulatory approvals and signing of final documents. External financing was also required and Bharti was able to easily tie-up the entire financing requirement. Moving on war footing, the company entered into a legally binding agreement with Zain Group (“Zain”) to acquire Zain Africa BV in the month of March 2010 at valuation of USD 10.7 billion. With the deal the Indian company acquired Zain’s African mobile services operations in 15 countries with a total customer base of over 42 million. At the time of agreement Zain was market leader in ten of these countries. It enjoyed number two position in four other countries. It was the largest ever cross-border deal in emerging markets. The company also became a major Indian MNC with operations in 18 countries across Asia and Africa with a customer base of over 180 million. In the month of August, 2010, the Board of Bharti Airtel approved the acquisition of 100 % of Telecom Seychelles Limited, the leading telecom operator of Seychelles, for an enterprise value of USD 62 million. Telecom Seychelles had begun operations in 1998 by launching mobile services. With the acquisition, Bharti will expand to have its presence in sixteen African countries with overall presence in 19 countries. It is felt that the acquisition of Telecom Seychelles will benefit by leveraging the efficiencies of scale in the African operations. Telecom Seychelles has state of art facilities with the presence in 3G services.

Considering Bharti’s success in so many ventures, I do not doubt its capabilities on expansion and global pursuit. Bharti has a strong management force guiding it in enduring the toughest of ventures successfully and also its financial credentials need not be suspected. Bharti can continue with its global pursuit as long as it continues with the same diligence and financial soundness.

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By- Ritu Jadwani I MBA L

AgainstOrganizations ranging from small at one end to multinationals on the other would like to expand their businesses and diversify so as to increase their level of operations and to earn high returns for the share-holders. However it is always not possible for the entities to achieve the same due to various reasons like scarce capital, managerial ability, risk taking capabilities, etc..

Bharti, being a well established and financially sound Indian Company, is not hindered by any of the aforesaid factors to expand. However, the speed in which the company is implementing its expansion strategy is very risky. It is quite evident that the company has insatiable desire to have its presence felt in the global market by expanding its wings across the globe in various sectors. But one thing is to be borne in mind by Bharti and other organizations going for expansion; each and every time expansion strategy is applied; it results in entering risky path as there is huge capital outflow. Even for considering an acquisi-tion, a lot of time is spent by the managerial personnel and costs relating to due diligence are high.

If envisaged expansion plan does not materialize, all the efforts put in, money spent, go in vain and it also results in fall in the goodwill of the company. At a macro level, these types of expansion strategies may also have an impact on the economic condition of the country. When a new expansion plan is announced by a company like Bharti, its share prices also witness unnecessary turbulence. Sudden rise and fall in share prices increases the risks for the investors and affect the ‘Barometer of economic progress’-stock exchange indices {NSE Nifty/ BSE Sensex).

Hence, I do not agree with the speed in which the expansion strategy is being implemented and executed by Bharti. Before implementing expansion strategy every company needs to look into various factors like in-depth environmental analysis, due diligence, etc. The plan between Bharti and MTN did not material-ize due to certain factors that the company was not able to foresee resulting in wastage of time and money. Before implementing expansion strategy, the entities need to carry out environmental analysis.

PRICEY VEGGIES PUSH FOOD INFLATION TO DOUBLE DIGITS By- Vinutha V Jois I MBA K

Even as the government is making every effort in a late proactive measure to bring down onion prices, a sudden surge in food inflation to double digits at 14.44 per cent for the week ended December 18 has come as a fresh setback to its efforts in containing the price spiral. Although the WPI (Wholesale Price Index) based food inflation, as per the official data, has been inching up only marginally for a couple of weeks, the swift rise by 2.31 percentage points within a week from 9.46 per cent during the week ended December 11 to touch its ten-week high has thrown all official calculations on the price front off gear. It was at 10.15 per cent for the week ended November 13.

Commenting on the surge yet again to double digits, Finance Minister Pranab Mukherjee said that he is afraid that there has been some upward movement of food items, of course, the weekly fluctuations take place and one of the reasons may be the high prices of onion, for which they have already taken necessary steps.

The fact, however, remains that the latest WPI (Wholesale Price Index) data does not capture the ever rising prices of onions to `70-80 a kg, which will be reflected in the food inflation data for the week ended December 25. In effect, it will mean yet an-

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other surge and economic analysts apprehend, yet another tinkering in its key rates by the Reserve Bank of India (RBI) during the third quarterly monetary policy review on January 25 this year. As if summing up the government’s foremost concern for the present, Mr. Mukherjee said that he was concerned about the inflation. That is one of the challenges at the macro-economic level. It is a struggling exercise that they are doing. Unfortunately, there has been an increase. It is contributed by some of the food items like onion, edible oil, milk, fruits and vegetables.

Adding to rising onion prices, contributing further to the common man’s woes were food items such as fruits, eggs, meat and fish, milk and vegetables which also turned costlier to severely impact the monthly food budget. The WPI inflation data revealed that the annualised increase in prices of onions worked out to 33.48 per cent, fruits 20.15 per cent, eggs, meat and fish 19.35 per cent, vegetables 15.54 per cent and milk by 17.83 per cent. On a weekly basis also, onion prices were up 4.56 per cent.

Conclusion: Unfortunately, the government and all of its associated agencies including the planning commission have indicated their total lack of control by being reactive. There seems to be a total breakdown of the planning activity - given the known fact that the country’s population is increasing, very little effort has gone into increasing productivity and production. For the past 30 years or so, the government, politicians, bureaucrats and the business community have been fooling around and content in redistributing existing resources. Countries like Israel on the other hand have explored and invented new methods and avenues of production to keep up with the growing needs of their population. With a growing population and with near stagnant production, it is obvious that inflation will rule.

JSW BUYS ISPAT By- Pavan S Rao I MBA L

JSW Steel will become India’s largest steel company by capacity, as it agreed to buy a controlling 41.29 per cent stake in Ispat Industries for `2,157 crore, valuing the company at `5,224 crore.Ispat promoters Pramod and Vinod Mittal will hold 26 per cent stake in the company.

Ispat will issue on a preferential basis 1.08 billion equity shares at `19.85 a share, which is at a discount of 20%. In addition, JSW will make an open offer to minority shareholders of Ispat, according to the Takeover Code.

JSW Vice-Chairman & Managing Director Sajjan Jindal said Ispat will be made profitable within 12 months. Based on September 2010 quarter results, Ispat’s annualised net loss works out `1,326.40 crore, against a loss of `322.3 crore for 15 months ended June 2010 and loss of `688.1 crore for fiscal year ended March 2009.

By March, JSW will have a total steel capacity of 14 million tonne, compared to Steel Authority of India’s 13.82 million tonne. JSW is currently an 8-million tonne steelmaker, which will increase to 11 million at its Vijayanagar plant by March 2011. It has another 1-million tonne plant at Salem.

Jindal said that with this, the vision to be a 32-million tonne steel producer will be achieved much faster than the earlier target of 2020. The company has plans to build a 10-million tonne steel plant at Salboni (West Bengal) and the first phase will see a steel plant capacity of 4.5 million tonne, the work for which has started.

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JSW will spend `3,100 crore on Ispat’s expansion, which will take its steel capacity to 4.2 million tonne from 3.3 million currently. Apart from that, JSW will also set up a 110-Mw power plant, a 4-million tonne pellet plant and a 1-million tonne coke oven battery for Ispat.

Jindal said JSW would refinance Ispat’s entire `7,500 crore debt at a lower interest rate and get a fresh set of lenders on board. He also said that they will raise the entire debt from a new set of lenders at 3-4 percentage (points) lower interest rates than the current rates and will repay existing lenders by Septem-ber 2011.

ISPAT SHAREHOLDING PATTERNIn % Post-equity

infusionPost-conversion of debt to equity

JSW 41.29 39.90ISPAT 26.00 24.50Lenders 4.00 7.00

IDBI, ICICI and IFCI are Ispat’s prime lenders. Ispat also owes State Bank of India `2,000 crore as part of its working capital debt.

The entire capital infusion will go to strengthen the balance sheet by paying off creditors and lenders. Ispat’s 3.3-million tonne Dolvi plant, which was shut on November 7 due to a severe cash crunch, was re-started.

Giving a broader sense of how JSW will make Ispat profitable in the next one year, Jindal said that Ispat sells some of its steel in south India and sell some in Maharashtra. Now, Ispat will sell all its steel in Ma-harashtra. The company currently pays a freight charge of `1,400 a tonne of steel, which will come down drastically to `325 a tonne.

According to Jindal, this cost saving alone will take care of the entire interest cost on Ispat’s debt. JSW Steel will also help develop Ispat’s iron ore and coking coal mines. Ispat has iron-ore mines in Maharash-tra with reserves of 150 million tonne and cooking-coal mines in Madhya Pradesh with 70 million tonne in reserves.

Moreover, Ispat currently pays over `6 a unit of electricity, as the company doesn’t have its own power plant. JSW Steel will supply power to Ispat’s plant from its Ratnagiri plant at a much cheaper rate.

Never worry about the delay in success because construc-tion of WONDERS takes more time than ordinary building.

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By- Saurabh Khator I MBA L

STOCK MARKET REVIEW 2010-11

IntroductionThis year we saw a lot of action in the market right from Sensex touching new psychological mark of 21,000 to market seeing record inflow of around ̀ 1.20 lakh crore from FIIs. The continuous faith in Indian economy by foreign institutional investors helped market touch new heights with profit booking seen on domestic front. With large number of FPO and IPO hitting the market, common investor who was earlier resilient to trade in securities is returning with new gung-ho and this can be well certified by the fact that, record number demat accounts have been opened this year by retail investors.

Primary market: New investment avenue:Primary market is the place from where a company for the first time go public to raise money called as IPO or initial public offer. This year we saw around 62 IPO’s hitting the market but the IPO which made investors frenzy was Coal India IPO, through which government raised `15,200 crore. Centre raised `21,000 crore this fiscal year by cutting its stake in engineers India Ltd, CIL, MOIL. The outlook for new issues seems bullish for the coming periods as the government is focusing on modernizing country’s infra-structure, which would entail large expenditure. The energy sector will support manufacturing growth and emergence of retail as new consumer class will also boost the economy. Some of the prominent compa-nies planning to raise money next year through IPO route are C Mahindra Exports, L&T Finance, One97 Communication, Sistema Shyam, Go Air, Micromax Informatics, Muthoot Finance, Lavasa Corporation. It was found that return yield for PSU IPO is comparatively more than that of private company IPO’s. One of the remark-able stories was the listing of Standard Chartered on Indian bourses through Indian depository receipts(IDR) route.

Secondary Market: The road ahead:With market touching new heights,the Indian growth story seems unlikely to slow down as India is one of the best per-forming market globally and is blessed with strong econom-ic fundamentals. The money raise through FPO was around `31,403 crore. As part of government disinvestment plans various FPO are in the pipeline like Indian Oil Corporation `19000 crore FPO, SAIL (Steel Authority Of India Limited) `8000 crore FPO, Power finance corporation FPO. While banking sector outperformed index with gains in stocks like Axis bank, HDFC bank, ICICI bank. Auto sector also showed a good performance with price hike and high volumes. Manu-facturing of base metals are also seen reporting strong quarter-ly results. Cement sector is expected to be hit due to monsoons and increase in capacity addition.

Conclusion:We expect volatility to continue in the market but with strong growth fundamentals and FII participation we expect market to touch new high in 2011.We expect more retail participation this year as SEBI is set to raise the limit to `2 lakh. SEBI is also likely to approve most of the recommendation of the Achuthan committee on new takeover rules and the major proposal to hike the open offer during acquisition to 100% from the existing 20%.

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GMR INFRABy - Gaurav Jain I MBA M

Business Model:

AIRPORT:GMR Infra is one of the biggest company in the infrastructure in India. It has presence in areas such as airport development, power generation, urban infrastructure and highway development. GMR made its maiden international foray, by winning the bid to develop Istanbul Sabiha Gokcen International Airport (ISGIA) at Istanbul, Turkey, along with its consortium partners Limak Holding, Turkey (LIMAK) and Malaysia Airports Holdings Berhad (MAHB). It is 3.5 times the size of the new Bangalore Airport.GMR also have a stake of 56% in Delhi international Airport Limited. GMR Hyderabad International Airport Limited (GHIAL) is a joint venture company promoted by the GMR Group (63%) in partnership with government of India (13%), government of Andhra Pradesh (13%) and Malaysia Airports Holdings Ber-had (11%).

POWER: GMR has around 10 projects under development which contribute to 3680MW of power. This includes power project in Orissa, Chhattisgarh and Maharashtra. This means the company has a strong order book. GMR has acquired a 100% stake in PT Barasentosa Lestari (PT BSL), an Indonesian Greenfield coal min-ing company with proven reserves. PT BSL is estimated to have a mining life of around 25 years based on the explored reserves, with a significant area which is yet to be explored. GMR Group has acquired a 33.5% stake in Homeland Energy Group Ltd. (HEG), a listed company which owns coal properties in South Africa through its subsidiary the Homeland Mining and Energy (HMESA). HEG owns a controlling interest in the already operational Kendal mines, fully explored Eloff mines and other exploration sites with total mineable reserves of around 300 million tonnes. The company has also completed three power projects which have started to earn revenue for the company.

INFRASTRUCTUREROADS:The company has completed seven projects in the recent years which completed 424 Km of highway on a BOT (Build, Operate, Transfer) scheme with operation period of 15 Years. The company has three projects under development of 310Km on a BOT basis with a concession period (construction + operation) from 20-25 years.

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URBAN INFRASTRUCTURE:GMR Group entered into an MOU with Tamil Nadu Industrial Development Corporation (TIDCO) for the development of a Multi Product Special Economic Zone (SEZ) in Krishnagiri District, Tamil Nadu. The SEZ will be developed through a Special Purpose Vehicle (SPV) to be set up through a Joint Venture partnership with TIDCO. This multi- product SEZ will be spread around 3300 acres in the Krishnagiri District of Tamil Nadu. The selection of the co-developer by TIDCO was carried out through a two-stage competitive bidding process. The non- agricultural land is expected to be procured by the SPV over a period of one year.

TALKING ABOUT THE STOCK:The stock has been a dog for the last few months but it has hit its bottom and is expected to revive from here. The EPS of the share is low and P.E ratio is very high. There hasn’t been much movement in the stock but this is supposed to change in the next calendar year. The company has started to earn revenues from its completed projects and this will be reflected in the stock prices from now on. We see some great upside in the stock in the near future. The trend for the stock in the near future is upwards. The stock has been lingering around 45 for quite some time and any trigger could see some upward move. Huge order book and revenues generation from completed projects can also act as a trigger for the stock. The stock is a good buy for the next year.

RECOMMENDATION:

THE WHITE SHINING COMMODITY: SILVER By- Mayuri Jain I MBA K

For years, gold has been the most traded commodity due to its increasing demand and high returns. But now no one can avoid the fact that silver, the white shining metal, the poor cousin of gold, is facing high demands. Adding to details further, it is unfair to notice that silver has given 61% returns since the begin-ning of this year, while gold in the same period has given a return of around 15%. Also, silver quoted an all time high of `45,300 per kg in the year 2010 till date.

THE SILVER STORY:Silver, unlike gold, has a lot of industrial uses. Theodore Butler, one of the most respected silver analysts in the world, says, “Silver is the best conductor of electricity, the best heat transfer agent, the best reflec-tor of light, a marvellous lubricant and a versatile catalyst and alloy.” Apart from that silver has various other industrial usages. It is used widely in low-technology as well as high-technology manufacturing. In low-tech manufacturing, it is used in soldering, making mirrors, photographic films and different kind

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of electronic items. In high-technology, silver is used in generation of solar energy, making bearings and next-generation batteries, and even in purification of water. In fact, more new patents are filed on silver than any other metal, that’s its level of its industrial use. In fact, silver also has very good anti-bacterial qualities. Jeff Nielson, editor of www.bullionbullscanada.com wrote in a recent piece that “silver is unique in possessing chemical properties which make it impossible for bacteria to reproduce… look at the use of silver in polyester sportswear… because of its anti-bacterial properties. However, in this case, the silver kills bacteria not to prevent disease but to reduce odour. It is the bacteria which are contained in our perspiration which are responsible for odour. Kill the bacteria, and you greatly reduce odour.” This is an upcoming area of use for silver and estimates by Nielson sug-gest it consumes over 38 million ounces per year (one ounce equals 31.1 grams).

Also, a fact which is still not known well is that there is less silver bullion in the world than gold bullion inventory. As Butler says, “Silver inventories have declined from 10 billion ounces in 1940 to 1 billion ounces today. Meanwhile, world gold inventories, including jewellery, have increased from 1 billion ounces in 1940 to 5 billion today.” He estimates that gold inventory has gone up over the years, whereas 90% of the global silver inventory disappeared in the last 70 years. The reason for the same is that all gold is literally recycled. For example, take the gold jewellery our parents pass on to us. If we feel that the designs are outdated we go to the jeweller and get new jewellery made from the old one. This recycles the gold. This is not possible in the case of silver. It is used in very small amounts as an industrial metal, and it is not always monetarily viable to recycle it. Also, over the years, the prices of silver have been too low and thus, have led to over consumption, thus depleting the inventories.

THE TECHNICAL REASON:Silver has moved in a band of $10 to $21 per ounce for a long period from 2007 to 2010. It broke the band after a long time, which makes analyst very bullish on the metal. They strongly feel that within two to three years, globally silver could reach $50 per ounce and `55,000 per kilo in India from current levels of `45,000 per kilo. Many analysts are recommending investors to buy silver for the long term and has a target of `60,000 per kilo with a three year time frame. There are various reasons which will increase the demand of the metal and thus its price in the future. Firstly, the production of silver cannot be significantly increased with its increasing demand. Unlike paper money central bank cannot print more silver. Its sup-ply depends on mining operations and not printing presses. Two-third of the silver that is mined comes as a by-product during the mining of other metals such as copper, lead and zinc. So production cannot be ramped up straight away. Secondly, with the future of paper currencies in danger, investment in silver and other metals has increased. Thirdly, with the correction in the ratio of gold to silver price, silver prices will go through the roof and of course, rise faster than the price of gold. Also, as silver prices go up, more and more women will want to wear silver jewellery as well. And that should also add to the demand. Thus, from the supply side, silver will be under pressure more than gold because the stock is actually diminish-ing rather than rising steadily as in case of gold. It is also estimated that world will run out of silver in 2020 and thus silver will become the first element from the periodic table to become extinct. After looking into these facts one should wait for nothing but start investing in the white shining metal as it is going to be one of the most precious commodities amongst all in the upcoming future.

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DID YOU KNOW?

By- Deepak Jose I MBA N

1. When Pakistan was in its infancy after India-Pak separation in 1947, they used Indian currency with “Pakistan” stamped on it for the first few months till there was enough circulation of Pakistani notes.

2. Before switching to Australian Dollar in 1966, Australia used Australian Pound as its official currency. Initially Australian Dollar was given the name “Royal”, but as the name could not gain popularity among the locals, it was changed to Dollar.

3. The widely used $ symbol, which is used to represent US Dollar, doesn’t appear on US currency at all.

4. Before 1974, Bhutan didn’t have any currency. Instead they followed Barter system, i.e., they traded goods and services in exchange of other goods and services. In 1974 Bhutanese Ngultrum was introduced as a currency.

5. Bermuda’s $2 bill has been named the bank note of the year 2010 by International Bank Note Society for its attractiveness and high security features.

Facts about International Currency

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6. Queen Elizabeth’s portrait has appeared on 33 different countries. Her image first appeared on the Canadian currency in 1935, when she was just 9 years old. The reason for her portrait being used by various countries is that the British monarch is considered as the head of the state by many countries that are a part of the British Commonwealth. This is why Australia and New Zealand have Union Jack on their Flag.

7. Australia introduced polymer notes in 1988 and in 1996 it became the first country in the world to have a complete series of polymer notes.

8. In India, Rupee one notes have signature of the Secretary, Ministry of Finance, Government of India, while the notes of `2 and above denominations contain signature of the Governor, Reserve Bank of India.

9. There are only 5 currencies in the world that have unique symbol to represent them. These are US Dollar, Yen, Pound, Euro and Indian Rupee (latest addition). Of these only the pound sterling has its symbol printed on the notes.

Source: www.knowledgehub.co.in

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INVESTOR FOCUS By- Madhukar Das I MBA G

Titan Industries:Nifty has gained 4% in last 3 weeks after rebounding from downtrend after touching 52 weekhigh. Forming a somewhat faltering double bottom pattern but shall hold on to it supported byexpected new year optimism.

Fundamentally Speaking:Titan Industries is a company under the Tata group umbrella. It is India’s leading watch brandand has a significant presence in jewellery and youth accessories seg-ments.Titan Industries expects FY11 sales to grow about 25% on year, helped by new store launches as told by company MD, Bhaskar Bhat. The company is adding 80 stores to its 600 strongchain. The company has seen improved margins and expects the bottom line to improve further. Titan retails watches under brands such as Titan and Sonata, youth accessories under brand name Fastrack and jewellery under Tan-ishq and Goldplus brands. The company has segments such as eyewear brand Titan Eye and is also into the precision engineering business. Titan’s international watch sales currently contributes 8% to its total watch sales. It is considering foraying into Indonesia which will increase the export revenues. Titan accounts for about 25% of the volume and 40% of the value of the 45-million-unit watch market. The jewel-lery brands are gaining market share helped by the ‘Tata trust’ backing them. Steady sales growth over Q1 and Q2 helped by 16% growth in jewellery and 21% growth in watch segment. The Fastrack brand though contributing a smaller proportion to sales grew by about 81%. Q3 is expected to give stellar results for the company helped by increased sales during Dussera-Diwali and Christmas- New Year period. This will be helped by newly launched accessory range like bags and clothing under the Fastrack brand. Titan eyeplus stores are also capturing market share and 11th store in Banga-lore was recently opened. It is a relatively debt free company. RoCE of 44.2% againstindustry average of 9.4%. P/E lower than industry median. We can expect a declara-tion of dividend and thus the stock price may appreciate in anticipation.

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ALUMNI SPEAKBy- Akshat Malik I MBA M

Name: Mr. Uday JainBatch: 2004Educational Qualifications: B.Com, MBACompany: Systematix Shares & StocksDesignation: Senior AnalystLocation: GurgaonEmail ID: uday.201@yahoo.com

Chaanakya: What is expected of an analyst at Systematix Shares & Stocks ?Mr. Jain: The work involves financial modelling, report writing, forecasting and analysis of company and industry performances along with data collection and presentation.

Chaanakya: What are the different certifications that will help students to understand the job role and the trading?Mr. Jain: A CFA would definitely help along the way. NCFM certifications add value to the resume, apart from the Knowledge one gains. These certifications certainly help the students in the long run.

Chaanakya: Since your job involves a lot statistics, what are the various statistical tools that you have to use at work?Mr. Jain: Indeed the job of a business analyst typically involves a lot of statistics. The various tools that we have deal with almost daily at work are SAS programming software, MS Excel, CHAID etc.

Chaanakya: What do organizations like Systematix Shares & Stocks look for in students when they come on-campus for placements?Mr. Jain: Systematix Shares & Stocks right now is looking out for students who are dynamic in nature who can analyse market environment.Students with good communication skills are preferred.

Chaanakya: As Christites prepare themselves to hit the corporate jungle, what is the best choice for them – Big Company, small salary or Small company, big salary?Mr. Jain: Big Company is the definite first. Salary must come second when it comes to taking up a job in the start of one’s career. The experience of Big company will definitely go a long way in building a strong profile.

Chaanakya: Finally, any message for the students............Mr. Jain: Your future and your destiny are all in your hands; you and you alone have the option to either make it or break it. Nothing in this is world is Unachievable. If you work hard that dream job is there for the taking.

Thank you

The first condition for the establishment of perpetual peace is the general adoption of the principles of laissez-faire

capitalism.

BUZZ WORDS

ChartistIt is another term for technical analyst, because charts, whether handmade or computer generated, are the primary working tool used for analysis.

Common GapIt is a gap that usually occurs in very thinly traded markets or in the middle of horizontal trading ranges. It is more a symptom of a lack of interest than anything else.

Closing the GapIt refers to pulling the prices back to the levels at which the gap was formed. For example let us take a stock, which in the way of its upward movement closed a week at `54 and in the week following it opened at `55.5 and moved further to `68 without coming even at `56. Here a gap of `1.5 is created. The gap will be considered as closed when the price of stock comes down to the rate at which the gap was created (`54). Normally when stocks begin their journey from consolidation phase, they move with a gap, which is not easy to be filled.

Congestion AreaA period of horizontal or sideways price movements on the chart within a well defined top and bottom. The main purpose of congestion area analysis is to help the analyst determine in advance the direction of the ultimate breakout.

Circuit FilterCircuit filter is applied to all the shares to safeguard the interests of general investors from the extreme volatilities in markets by preventing any unexpected fall or rise in a single day beyond a limit. If the limit is crossed by any of the shares in a single trading day it is frozen for trade for some time (cooling period).

CrossoverIt is a point on a stock chart where security price and an indicator intersect each other. Crossovers are used in aiding the forecast of future movements in the price of a security. A crossover is a signal to either buy or sell. Some of the indicators that may be used for crossovers are “moving average” and “Bollinger bands”.

Equally weighted IndexIt is a method of Index computation in which all the components of Index carry equal weight irrespective of their price or market capitalization.

Exhaustion GapIt appears near the end of a market move. After all objectives have been achieved and the other two types of gaps (breakaway and runway) have been identified, the analyst should begsin to expect the exhaustion gap.

Bull TrapIt is a term referring to wherein the stocks suddenly move up and starts falling with the result that the in-vesting public is trapped. Technical formations generally speak of bull and bears trying to trap each other.

By- Pragati P I MBA K

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16 CHAANAKYA VOL 4_13 17

QUIZ

1. Who is the newly appointed Chairman of PWC India?a. Deepak Kapoorb. Gautam Banerjeec. Ramesh Rajand. Peter Harvey

2. Name the share trader who was banned by SEBI due to involvement in share price pumping scheme?a. Krishna Kumarb. Sanjay Dangic. Diwakar Guptad. Vatsal Shah

3. Name the person who is set to be the next SBI Chief in March, 2011.a. Prakash Bhatt b. Hemant Contractorc. Pratip Chaudhurid. D Subbarao

4. Goverment to hike stake in Union Bank of India toa. 62%b. 75%c. 58%d. 45%

5. A fraud discovered recently at Citibank Branch is amounting to a. 400 crb. 500 crc. 300 crd. 250 cr

6. Name the high profile Head of Aditya Birla group’s telco, Idea Cellular, who has decided to step down as chief executive.a. Himanshu Kapaniab. Sanjeev Agac. Amrish Jaind. A Raja

7. Which bank has bagged India’s Best Bank-2010 award in this year’s edition of the ‘Businessworld-PricewaterhouseCoopers Best Banks Survey’?a. ICICI Bankb. Axis Bankc. SBI Bankd. South Indian Bank

By- Abhijeet Singh I MBA G

CROSSWORDS

Across

3. Coin with a minting error is called as4. This country’s foreign market is known as “Rembrandt Market”6. Company that picked up a sizeable stake in MCX in India7. First Indian woman CEO of a foreign bank8. Father of Index Fund Investinf9. Financial services giant referred as the “thundering herd”

Down

1. This term is derived from the geek word “Oikanomia” means “House Management”2. The problem of motivating one party to act in the best interest of another party5. Country where first paper money started

18

17

By- Naveen Kulakarni I MBA N

Quiz

1. a2. b3. c4. c5. a6. b7. d

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ANSWERS

TEAM

Apoorv Jhudeley

& Rajat Sikri

Editor-in-chief

Zafar Iqbal Cartoon

Vaibhav Nagar

News

Naveen Kulkarni

Crosswords & Quotes

Sumit Kumar Gupta

Graph & Rates

Amit Prakash

Book and Magazine Review

T. Deekshith Ravi Chandra &

Rao Pavan Sridhar

Student Article

Rohit Dhannawat &

Saurabh Khator

Investors check

Amit Prakash &

Chinmay Uchhrang Jethwa

ScamMandeep Kaur &

Mayuri Jain

Commodities Market

Richa Jain

Debate

Akshat Malik,

Geetika Gupta &

Manan Datt

Alumni Speak

Abhijeet Singh &

Deepak Jose

Quiz & Did You Know

Gaurav Jain

Stock Watch

Madhukar Das

Investor Focus

Apurva Gupta &

Pragathi P.

Buzz Words

Kumar Gaurav &

Meenakshi Ramnath

Review CommitteeApoorv Jhudeley &

T. Deekshith Ravi Chandra

Creative Head & Design

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