SBT FY12 profit slumps to Rs 510.46 cr

hiruvananthapuram: The net profit of State Bank of Travancore (SBT), an associate of SBI, fell to Rs 510.46 crore in 2011-12 against Rs 727.73 crore in the previous year.
The bank, however, registered a growth of 6.19 per cent in operating profit at Rs 1,249 crore against Rs 1,176 crore last year.
The fall in net profit attributed to various factors like additional provisions for staff, NPA and income tax payment, the bank said.
The total income of the Kerala-based bank improved by 29 per cent to Rs 7,477 crore from Rs 5,819 crore in the previous year, SBT Managing Director P Nanda Kumaran and other senior managers told a press meet here last evening.
Elaborating on the bank's performance on various fronts, bank officials said "our overall performance has been much better compared to many other banks in the country during the period".
Total business registered a growth of 21.69 per cent at Rs 1,26,816...

DHANANJAY

- PGDM

Yes Bank eyes Rs 1.5 tn balance sheet size

Mumbai: The youngest private sector lender Yes Bank has set a target of achieving a balance sheet size of Rs 1.5 trillion by the turn of 2015. "The remaining three years will see the bank witnessing accelerated growth with the objectives to achieve a balance sheet size of Rs 1,50,000 crore (Rs 1.5 trillion), deposit base of Rs 125,000 crore and advances of Rs 100,000 crore," Yes Bank Managing Director & CEO Rana Kapoor said.
He was addressing the top management, investors and analysts on the completion of two years of its Version 2.0 vision yesterday.
This confidence comes on the back of significant momentum on Casa and retail liabilities front, he said, adding going forward, the bank will focus on branch expansion.
"We have a target of 900 branches, along with increasing headcount to 12,750 by March 2015," Kapoor said.
The bank has 356 branches across over 200 cities and more than 5,600 employees as...
DHANANJAY SINGH
PGDM 2ND SEM.

Facebook reveals revenue, profit slide ahead of IPO

The company blamed the first-quarter decline, which surprised some on Wall Street, on seasonal advertising trends.
"It was a faster slowdown than we would have guessed," said Brian Wieser, an analyst with Pivotal Research Group.
"No matter how you slice it, for a company that is perceived as growing so rapidly, to slow so much on whatever basis - sequentially or annually - it will be somewhat concerning to investors if faced with a lofty valuation," Wieser said.
Facebook is preparing to raise at least $5 billion in an initial public offering that could value the world's largest social network at up to $100 billion.
"The biggest issue is the realization that Facebook is not going to have an easy time meeting high expectations of the public market," said Jeff Sica, chief investment officer of SICA Wealth Management, which manages more than $1 billion in client assets, real estate and private equity holdings. "It will affect how people look at the IPO."
Investors are still likely to sign up in droves for the IPO; However, growth concerns may make some investors less likely to keep the stock over the long term, he added.
"I'm still encouraging people to participate in the IPO, under the acknowledgement that it could be a bumpy ride," Sica said. "There are high expectations and I hate high expectations."
The company, founded by Mark Zuckerberg in a Harvard University dorm room in 2004, surpassed 900 million monthly active users in the first quarter and said its full-time staff grew by about 1,100 employees to 3,539 in the past 12 months, according to an updated filing with the U.S. Securities and Exchange Commission on Monday.
Facebook also disclosed that it has agreed to pay Instagram $200 million if the company's recent deal to buy the photo-sharing start-up for about $1 billion does not go through.
Facebook said it paid $300 million in cash for Instagram, along with 23 million shares of Class B common stock. It said the fair value of its Class B common stock was $30.89 per share as of January 31.
Spending roughly doubled over the past 12 months, outpacing the 45 percent revenue increase during the period, it said.
Net income slid 12 percent to $205 million in the quarter, from $233 million a year earlier at the rapidly expanding company.
Facebook said its advertising business, which accounts for the bulk of its revenue, typically slows down in the first three months of the year. The rapid advertising growth may have "partially masked" such trends to date, and seasonal impacts may be more pronounced in the future, it noted.
Revenue, which totaled $1.06 billion in the three months ended March 31, declined 6 percent from the fourth quarter. It was the first quarter-on-quarter drop since at least 2010.
"It was bound to happen. You are going to see a slowdown," said Anupam Palit, an analyst at GreenCrest Capital LLC, noting that it is harder to double revenue when the base is larger.
But he also said Facebook has not worked out how to make more money in some international markets where it is growing the fastest, such as Brazil, India and the Philippines.
"They have not cracked international markets yet, while others like Google do very well internationally," Palit added.
Apart from slowing growth, Facebook is also grappling with other issues. Yahoo Inc is suing it for patent infringement even as the social networking company tries to beef up its intellectual property arsenal. On Monday, it said it would pay $550 million for hundreds of patents from Microsoft Corp.
PAYMENTS HINT
Facebook gets most of its revenue from advertising, but has a Payments business centered around Facebook Credits, a virtual currency used mainly to buy virtual goods within social games.
However, the company hinted at a possible an expansion of Facebook Credits into other areas.
Facebook gets a cut of up to 30 percent from virtual goods sales on its platform.
"In the future, if we extend Payments outside of games, the percentage fee we receive from developers may vary," the company said in its IPO filing on Monday.
Some investors expect e-commerce to be a major area of expansion for Facebook. Some industry experts said that if Facebook Credits were used for purchases of physical goods, the company's cut would have to be a lot lower than 30 percent.
(Reporting By Alistair Barr and Alexei Oreskovic; Editing by
DHANANJAY SINGH
PGDM 2ND SEM.

Citi shareholders oppose pkg for Pandit

New York: Showing frustration with large payouts to Wall Street executives, Citigroup's shareholders have voted against the bank's proposal on top level compensations, which included a USD 15 million package for its India-born CEO Vikram Pandit. The vote came at Citi's annual shareholder meeting held in Dallas on Tuesday.
While the vote is not binding, it is the first time that investors at one of America's largest banks have voted against a board's compensation plan, the New York Times said.
Only 45 per cent of shareholders supported the plan while the rest voted against the proposal on executive compensation, which included approving Pandit's USD 15 million pay package.
Since Citi does not have to act on the vote, Pandit and other top executives could still get their packages but the rejection nonetheless sends out a strong signal.
"Citi¿s board of directors takes the shareholder vote seriously, and along with senior management will consult with representative shareholders to...
DHANANJAY SINGH
PGDM2ND SEM.

HCL Tech Q3 net profit up 28.7% at Rs 602.5 crore

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HCL Tech Q3: Revenues up 2.5% QoQ

NEW DELHI: IT services firm HCL Technologies today posted a 28.7 per cent increase in net profit at Rs 602.5 crore for the quarter ended March 31, 2012.


The company had posted a net profit of Rs 468.2 crore in the January-March quarter of the last fiscal (2010-11), HCL Technologies said in a statement.


The company's revenues for the reported quarter were up 26 per cent at Rs 5,215.6 crore from Rs 4,138.2 crore in Q3 of FY11.


"A key strategic shift in the global IT industry has been the levelling of the playing field between the Indian origin service providers and the global MNCs. It is encouraging to note that HCL has continued its growth trajectory even in this environment," HCL Technologies Chairman and Chief Strategy Officer Shiv Nadar said.


The company has announced an interim dividend of Rs 2 per equity share of the face value of Rs 2 each.


During the quarter, HCL Technologies added 1,394 people (gross), taking the total headcount to 82,464 on March 31, 2012.


Prateek Agarwal, CIO, ASK Investment Managers is of the view that when Infosys results disappointed markets, it raised a doubt on the IT sector.


"After HCL Technologies came out with Q3 results which were above expectations, it seems more of one company issue rather than a sector issue," he said.


At 10:03 AM, shares in HCL Technologies were trading at Rs 502.60, up 4.52% on the Bombay Stock Exchange. 

ASHRAF HUSSAIN

PGDM-2nd semester

meaning of finance management

Meaning of Financial Management Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. Scope/Elements Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions. Financial decisions - They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby. Dividend decision - The finance manager has to take decision with regards to the net profit distribution. Net profits are generally divided into two:

1. Dividend for shareholders- Dividend and the rate of it has to be decided.
2. Retained profits- Amount of retained profits has to be finalized which will depend upon expansion and diversification plans of the enterprise.

Objectives of Financial Management

The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be-

1. To ensure regular and adequate supply of funds to the concern.
2. To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders.
3. To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost.
4. To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate of return can be achieved.
5. To plan a sound capital structure-There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.

Functions of Financial Management

1. Estimation of capital requirements: A finance manager has to make estimation with regards to capital requirements of the company. This will depend upon expected costs and profits and future programmes and policies of a concern. Estimations have to be made in an adequate manner which increases earning capacity of enterprise.
2. Determination of capital composition: Once the estimation have been made, the capital structure have to be decided. This involves short- term and long- term debt equity analysis. This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from outside parties.
3. Choice of sources of funds: For additional funds to be procured, a company has many choices like-
   1. Issue of shares and debentures
   2. Loans to be taken from banks and financial institutions
   3. Public deposits to be drawn like in form of bonds.
   Choice of factor will depend on relative merits and demerits of each source and period of financing.
4. Investment of funds: The finance manager has to decide to allocate funds into profitable ventures so that there is safety on investment and regular returns is possible.
5. Disposal of surplus: The net profits decision have to be made by the finance manager. This can be done in two ways:
   1. Dividend declaration - It includes identifying the rate of dividends and other benefits like bonus.
   2. Retained profits - The volume has to be decided which will depend upon expansional, innovational, diversification plans of the company.
6. Management of cash: Finance manager has to make decisions with regards to cash management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintainance of enough stock, purchase of raw materials, etc.
7. Financial controls: The finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc. Dk seth pgdm 2nd sem

definition of finance

1. A branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Simply, finance deals with matters related to money and the markets.

2. To raise money through the issuance and sale of debt and/or equity.

Dk seth pgdm

We are building a company for long term and investors with a long term focus understand that, says Balakrishnan , CFO.

RBI may cut CRR, repo by 0.25%: Bankers

New Delhi: The Reserve Bank of India (RBI) may cut interest rate by about 0.25 per cent and release more liquidity in its annual credit policy meet tomorrow in the light of sagging factory output and moderation in economic growth, say bankers.

"My personal stance is that cut CRR...I would expect 75 basis point cut in CRR," SBI Chairman Pratip Chaudhuri said.

Last month, RBI slashed CRR (cash reserve ratio) – the percentage of deposits that banks have to keep with the RBI – from 5.5 per cent to 4.75 per cent. With this, the central bank had infused Rs 48,000 crore into the economy.

Indian Overseas Bank Chairman and Managing Director M Narendra said, "Given the microeconomic condition, there is expectation that the RBI would cut both repo and CRR by 25 basis points (0.25 per cent)".

Showing persistent sluggishness in the economy, industrial production growth slowed to 4.1 per cent in February this year,... mainly due to poor performance of the manufacturing sector and consumer goods segment.

At the same time, inflation has been hovering around 7 per cent and global crude oil prices are still over USD 100 per barrel, adding to inflationary pressures. The inflation was 6.89 per cent in March much above the RBI's comfort level.

RBI, which increased the key policy rate 13 times between March 2010 and October 2011 to tame inflation, did not hike the repo rate (short term lending rate) in the last three policy reviews.

On the other hand, India's GDP grew by the slowest pace in the last 3 years to just 6.1 per cent in the third quarter of 2011-12.

Mutual Funds Check for top funds                     

The GDP growth rate for the third quarter was lower compared to 6.9 per cent in the previous quarter and 8.3 per cent in the samequarter last financial year.

Since October 2011, the repo of RBI has stood at 8.5 per cent. Repo rate is the signalling rate. Other policy rates like reverse repo and bank rate adjust automatically with change in the repo rate.

On the possibility of repo rate reduction by the RBI, Chaudhuri said, "I am not too hopeful and frankly I don't think this is material".

According to Bank of Baroda Chairman and Managing Director M D Mallya, "We saw last year that growth was not very substantial. We have seen the overall interest rate scenario reigning high. So, perhaps some policy measures are required to ensure growth is also catered to without compromising on inflation."

Mallya said overall liquidity is likely to improve after Government spending starts.

Hit by tight liquidity conditions, banks are still borrowing on an average about Rs 80,000 crore from the central bank every day.

Punjab National Bank Chairman and Managing Director...

 ANAND PRAKASH

PGDM 2nd (sem)

Inflation moderates to 6.89% in March

Inflation for January was revised higher to 6.89% from the preliminary estimate of 6.55% while the revised WPI for that month now stands at 158.2 as compared to 157.7 earlier.

India's annual inflation decreased slightly in March from the previous month, data released by the Government showed on Monday. The headline WPI inflation for March stayed below the 7% mark after falling below it in January. Inflation, as measured by the wholesale price index (WPI), was at 6.89% in March as against 6.95% in February, the Union Commerce & Industry Minister said today. The March inflation print was slightly better than consensus expectations. The annual inflation rate was at 9.68% during the corresponding month of the previous year. Inflation for January was revised higher to 6.89% from the preliminary estimate of 6.55% while the revised WPI for that month now stands at 158.2 as compared to 157.7 earlier. The official WPI for ‘All Commodities’ for March rose by 0.9% to 159.8 from 158.4 in the preceding month. Build up inflation in the financial year so far was 6.89% compared to a build up of 9.68% in the corresponding period of the previous year. WPI Break-up for March 2011: Primary Articles: 9.62% vs 6.28% MoM Food Group: 9.94% vs 6.07% MoM Fuel & Power: 10.41% vs 12.83% MoM  Manufacturing Products: 4.87% vs 5.75% MoM Source: Commerce & Industry Ministry. Onions turned cheaper by ~24% in the month under consideration, Vegetable prices were up ~30% on an annual basis. Fruit prices were down by 4.5% year over year, while Milk prices increased ~15.3%. Egg, Meat & Fish became costlier by ~17.7% compared to the year-ago period. Potato prices were up ~11.60% on an annual basis while Cereal prices went up by ~4.4% year over year. Prices of Pulses rose by ~10%. Annual inflation in Rice stood at ~4.7% while Wheat prices were down ~0.7%. In the Non-Food category, prices of Oilseeds rose by ~12.8% from a year ago while that of Fibres fell by ~31.4%. Mineral prices climbed more than 28.5% from last year. In Fuel & Power category, LPG prices were up ~14.3%, petrol by ~12.04% and diesel by ~9.2%. In Manufactured Products category, Food Products prices rose by ~6%, while that of Edible Oils increased by ~10%. The price of Beverages, Tobacco & Tobacco Product jumped 8.2% while that of Cotton Textiles fell ~8.5%. Price of Wood & Wood Products increased by ~7% while that of Leather & Leather Products increased 4.5%. Chemicals & Chemical Products' prices jumped by ~7.4% while that of Non-Metallic Mineral Products rose by 5.6%, Cement & Lime ~4.75%, Basic Metals Alloys & Metal Products ~9.5% and Iron & Semis by ~17%. By RAZI ANWAR(PGDM 2nd Sem)

STOCK EXCHANGES FOR ABOLITION OF STT IN BUDGET

NEW DELHI: Stock exchanges today pitched for abolition of the securities transaction tax (STT) on equity trades at their meeting with finance ministry officials here.

The issue of removal of STT was raised by representatives of different stock exchanges, including BSE, National Stock Exchange, MCX-SX and USE. Besides, the officials of the market regulator Securities and Exchange Board of India (Sebi) were also present in the meeting.

"Finance ministry has taken our view on developments in stock markets and STT. We have suggested removal of STT. Based on our view the ministry will take a view," a representative of a stock exchange said.

"We are expecting some announcement in budget. We also stressed that taxes should not be increased and no new taxes should be introduced," an official from another stock exchange said.

Earlier in the day Sebi chairman U K Sinha too met finance ministry officials.

The government had introduced STT in 2004 on transactions in different types of securities. The rate presently varies from 0.025 per cent to 0.25 per cent depending upon the type of security traded and transaction -- whether sale or purchase.

The government collects around Rs 7,500 crore per annum from STT and it would be difficult for it to forego the revenue at a time when efforts are needed to raise revenue and bridge the fiscal deficit, which during the current fiscal is likely to exceed the budget target of 4.6 per cent of the gross domestic product (GDP).

The discussions are aimed at providing inputs to the budget for 2012-13 which will unveiled by finance minister Pranab Mukherjee on March 16.

The capital markets division of the finance ministry has been pushing for lowering of STT as it would boost investor sentiments.

The stock exchanges, however, are seeking removal of the levy as it would reduce transaction cost, promote equity culture and encourage retail participation.


PRIYANKA KUMARI
PGDM 2nd SEM

RBI may cut CRR, repo by 0.25%: Bankers

New Delhi: The Reserve Bank of India (RBI) may cut interest rate by about 0.25 per cent and release more liquidity in its annual credit policy meet tomorrow in the light of sagging factory output and moderation in economic growth, say bankers.
"My personal stance is that cut CRR...I would expect 75 basis point cut in CRR," SBI Chairman Pratip Chaudhuri said.
Last month, RBI slashed CRR (cash reserve ratio) – the percentage of deposits that banks have to keep with the RBI – from 5.5 per cent to 4.75 per cent. With this, the central bank had infused Rs 48,000 crore into the economy.
Indian Overseas Bank Chairman and Managing Director M Narendra said, "Given the microeconomic condition, there is expectation that the RBI would cut both repo and CRR by 25 basis points (0.25 per cent)".
Showing persistent sluggishness in the economy, industrial production growth slowed to 4.1 per cent in February this year,.
DHANANJAY SINGH
PGDM 2ND SEM.

Rupee down 32 paise against dollar

Mumbai: The rupee fell 45 paise to a fresh three-month low of 51.75 against the American currency in the late morning trade on fresh dollar demand from banks and importers amid weak equity market.
The rupee resumed lower at 51.61/62 per dollar at the Interbank Foreign Exchange (Forex) market against last Friday's close of 51.30/31 per dollar and dropped further to 51.75 per dollar. It was quoting at 51.68/69 per dollar at 1030 hrs.
It moved in a range of 51.58 and 51.75 per dollar during the morning deals.
Fresh dollar demand from banks and importers in view of weak equity market amid firm dollar overseas affected the rupee value, a forex dealer said.
The BSE 30-scrip benchmark Sensex declined 30.94 points or 0.18 per cent to 17,063.57. Earlier, it was down 62 points.
In New York, the dollar extended gains against major currencies last Friday as investors reacted to weak data on US consumer sentiment..
DHANANJAY SINGH
PGDM2ND SEM.

wacc

Definition of 'Weighted Average Cost Of Capital - WACC'

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All capital sources - common stock, preferred stock, bonds and any other long-term debt - are included in a WACC calculation. All else equal, the WACC of a firm increases as the beta and rate of return on equity increases, as an increase in WACC notes a decrease in valuation and a higher risk.

The WACC equation is the cost of each capital component multiplied by its proportional weight and then summing:




Where:
Re = cost of equity
Rd = cost of debt
E = market value of the firm's equity
D = market value of the firm's debt
V = E + D
E/V = percentage of financing that is equity
D/V = percentage of financing that is debt
Tc = corporate tax rate

Dk seth pgdm 

The International Monetary System and the Financial Crisis

In contrast to its predecessors—the gold and dollar standards—the current international monetary system has served the global economy well, even in the most difficult of times. During the Great Recession—the worst downturn in seventy years—the system exhibited great flexibility and resilience. Countries with flexible exchange rates, which account for 80 percent of global gross domestic product (GDP), used them to good effect as shock absorbers. Several countries with pegged rates switched to more flexible regimes during the crisis and some switched back again when confidence returned. These changes were nearly always orderly, with most currencies following a common path against the dollar, which retained its safe-haven status despite the fact that the United States was at the epicenter of the crisis: Currencies depreciated against the dollar during the worst of the crisis and then appreciated again once it ended. Though some currencies saw large real appreciation, most remained in line with fundamentals; misalignments occurred in only a few instances, usually related to the dysfunctional institutional set-up of the eurozone monetary union. Overall, the global economy avoided the balance of payments crises and protectionist responses that characterized previous episodes of acute economic turmoil.
For these reasons, it is difficult to conclude that today’s exchange rate system is fundamentally flawed. At the same time, a number of undesirable developments and responses have occurred in the aftermath of the Great Recession: some developing countries have excessive reserves; several countries have reluctantly resorted to capital controls; a few countries, including Brazil, Switzerland, and Japan, have seen very large exchange rate appreciations; the eurozone is in deep crisis; and fear persists that global imbalances may widen again as the recovery progresses.
by:
Jasleen kaur
II SEM

Apple iPhone 5 debut in Oct.?

Rumors about Apple's (NASDAQ:AAPL - News) 6th-generation iPhone are picking up, with media reports saying the new smartphone will be out in Oct. The consumer electronic giant's newest offering is expected to have a 4-inch screen, up from the current 3.5 inches, and a sleek new unibody chassis, according to a Topeka Capital Markets analyst. Apple hit a record intraday high of 644, briefly topping a market share of $600 bil. But shares closed down 1.2% to 628.44.
ASHRAF HUSSAIN
PGDM 2ND SEM.

RBI seen cutting repo rate for first time in 3 years: Reuters Poll

Related Content

• A man pulls a hand-drawn cart in front of the Reserve Bank of India (RBI) building in Mumbai January 24, 2012. REUTERS/Danish Siddiqui/Files

By Shamik Paul and Neha Dasgupta

MUMBAI (Reuters) - The Reserve Bank of India is likely to cut its repo rate for the first time in three years in an attempt to lift sagging economic growth, even as high oil and food prices remain a challenge to managing inflation, a Reuters poll showed.
Of 20 analysts polled, 17 expect the RBI to cut the repo rate by 25 basis points to 8.25 percent on April 17, while three see it unchanged at 8.50 percent.
The RBI has held its key interest rate steady since its policy review in mid-December, after raising it 13 times from March 2010 to tame high inflation, most recently in October. Its last rate cut was in April 2009.
"The driving factor for a repo cut is basically to pull down the cost of funds. The slowdown in the economy is coming from a drop in investments, and that has to be reversed," said Saugata Bhattacharya, an economist with Axis Bank.
Of 19 respondents, 13 expect no cut next week in the cash reserve ratio (CRR) requirement for banks, or the share of deposits lenders have to maintain with the RBI.
Only four respondents forecast a 50 bps cut in CRR on April 17, while two see a 25 basis point cut.
In January, the RBI cut CRR by 50 bps, and further reduced it by 75 bps in March to 4.75 percent to ease tight liquidity in the banking system ahead of advance tax payments by companies.
Economists have scaled back their expectations for rate cuts in the fiscal year that started this month but have increased their expectations for cuts in CRR since a poll in March.
The median estimate for the repo rate in March 2013 now stands at 7.75 percent, higher than the estimate of 7.50 percent in a poll last month. Similarly, the median estimate for CRR is 4 percent, compared with 4.25 percent in March.
India's economy grew at just 6.1 percent in the December quarter, the slowest in nearly three years.
High food inflation is likely to pinch Indians at least until July as fruit and vegetable output shrinks, hurt by rising temperatures and dry conditions, while edible oil and pulses prices are rallying on lower production and a more expensive world market.
The wholesale price index, the main gauge of inflation, edged up a faster-than-expected 6.95 percent from a year earlier in February. Analysts are keenly awaiting the March inflation data to be announced a day before the RBI's policy.
However, non-food manufactured inflation is likely to remain low, which will offset some of the impact of high food prices, analysts said.
Further inflationary pressure could emerge if India cuts subsidies on diesel and cooking fuels, and if state oil retailers raise the price of petrol to reflect the rise in global crude prices.
(Additional reporting by Mumbai Treasury Team; Editing by Tony Munroe and Ranjit Gangadharan)
DHANANJAY SINGH
PGDM 2ND SEM.

Tata Steel India FY'12 sales up 3.4%

New Delhi: Tata Steel today said its sales from Indian operation grew by 3.4 per cent in FY'12 to 6.631 million tonnes over 2010-11, buoyed by a six per cent rise in sales to automotive and Fast Moving Consumer Goods (FMCG) sectors.

The company, which had sold 6.416 million tonnes steel in 2010-11, undertook sales of 3.735 million tonnes flat products used in the automotive and the FMCG sectors, and 2.897 million tonnes of long products used in construction, it said in a statement.
The growth in sale of flat products was six per cent over 2010-11, but it was almost static in case of long products. It had sold 2.878 million tonnes of long products in FY'11.
The company sold 1.768 million tonnes of steel in the final quarter of 2011-12, registering a growth of 3.3 per cent over 1.712 million tonnes in the corresponding quarter.
ASHRAF HUSSAIN
PGDM-2ND

Finance offers top IIM-C placement drive

Kolkata: Despite a slowdown in the financial sector, the Indian Institute of Management, Calcutta (IIM-C) continued to draw attractive offers from major international financial hubs during placements this year. Mutual Funds 
Of the offers, finance constituted the largest chunk at 28.53 per cent, according to an IIM-C placement report.
Consulting companies also contributed to a significant portion of the pie with 26.80 per cent, closely followed by sales and marketing at 22.48 per cent and general management at 8.93 per cent.
The premier institute said Infosys offered five international positions in the US and London offices of its global sales team and Microsoft offered nine positions.
It said despite the slowdown in the finance sector, IIM-C maintained its position as the "finance campus" of the country.
Students had already received PPOs (pre-placement offers) from firms like UBS, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Barclays Capital, Royal Bank of Scotland, HSBC..
DHANANJAY SINGH
PGDM 2ND SE.

Maruti 800 replacemen​t coming by year-end

The car will be priced in the range of Rs.2.5-3.5 lakh.

The three decade-old Maruti 800 will bid its final goodbyes before the end of this calender year, to make way for its revamped avatar. The model had already  stopped being sold in the top 13 cities in India from Sep 2010 as it could not meet the Bharat Stage IV emissions norms made mandatory in these cities from that date. The new model of the car, to be launched under a new brand but the same platform, will use the same F8D engine used in the base Alto, although updated to match competition. The car will be priced in the range of Rs.2.5-3.5 lakh. “A replacement for the 800cc model makes sense as it hasn't been selling very aggressively at about 2,000 units a month. This will be a totally new small car, though based on an existing platform,” reports said quoting a company official. Reports said that Maruti Suzuki will focus the main purchase parameters in the small car segment i.e. fuel efficiency and low maintenance. By RAZI ANWAR (PGDM 2nd sem)

Satyam Computer receives claim notice from Aberdeen Global

Satyam Computer Services Ltd has announced that a claim form addressed to Company’s branch office at UK, as filed before the High Court of Justice, Queen’s Bench Division, Commercial Court, UK, for an amount to be assessed, has been received from Aberdeen Global & Others. It's alleged in the claim, an estimated loss in excess of US$150 mn, opportunity loss and interest @ 8%, due to the investment made in the Company’s stock and / or ADSs. By RAZI ANWAR(PGDM 2nd sem)

Sony to cut 10,000 jobs globally: reports

According to reports, 50% of the new round of job cuts would come from consolidating the firm's chemicals and small and midsize LCD operations.

Japanese electronics producer Sony Corp will cut 6% of its global workforce which amounts to 10,000 jobs in an attempt to turn profitable after four years of losses, reports said. Sony Corp, joined by NEC Corp Sumco Corp and brokerage Daiwa Securities cutting costs to revamp their business. As of end-March 2011, Sony had 168,200 employees on a consolidated basis, according to its website. According to reports, 50% of the new round of job cuts would come from consolidating the firm's chemicals and small and midsize LCD operations. The electronics major’s new CEO, Kazuo Hirai who took charge from from Kazuo Hirai on April 1 will elaborate on his plans on Thursday. Hirai would now be directly in charge of the company’s TV business. Stringer will become the Chairman of the company after a meeting in June. The company said in March that it would sell part of a chemicals and devices subsidiary that makes films and adhesives used in televisions, cameras and mobile phones to state-backed Development Bank of Japan Inc. Last year, it merged its small LCD panel business with those of Toshiba Corp and Hitachi Ltd into a new company called Japan Display. Sony, which was valued at $200 billion in Sep 2000, now has a market capitalization of $20 billion, as against $591bn of rivals Apple and $171bn of Samsung. For the financial year ended March, the ailing electronics maker expects net loss of 220bn yen.  By RAZI ANWAR (PGDM 2nd sem)

(NPV)

  

Definition

The difference between the present value of the future cash flows from an investment and the amount of investment. Present value of the expected cash flows is computed by discounting them at the required rate of return.
For example, an investment of $1,000 today at 10 percent will yield $1,100 at the end of the year; therefore, the present value of $1,100 at the desired rate of return (10 percent) is $1,000. The amount of investment ($1,000 in this example) is deducted from this figure to arrive at net present value which here is zero ($1,000-$1,000). A zero net present value means the project repays original investment plus the required rate of return. A positive net present value means a better return, and a negative net present value means a worse return, than the return from zero net present value. It is one of the two discounted cash flow techniques (the other is internal rate of return) used in comparative appraisal of investment proposals where the flow of income varies over time.

Dk seth pgdm 2nd sem

Indian rupee falls as Fed view boosts dollar

MUMBAI, April 4 (Reuters) - The Indian rupee fell on Wednesday weighed by gains in the dollar after expectations of fresh monetary stimulus in the United States faded and local oil importers looked to cover payment obligations before the long weekend.
A fall in local stocks also added to the selling pressure on the rupee, traders said.
Global stocks and the euro fell after the U.S. Federal Reserve dimmed hopes for fresh asset-buying, further underlining its divergence with an embattled Europe that faces recession and remains firmly in crisis-fighting mode.
The rupee ended at 51.055/065 to the dollar, 0.71 p ercent down from Tuesday's close of 50.6950/7050.
Indian financial markets are closed on Thursday and Friday for local holidays.
"We have seen the rupee pull back from near 50.50 which was a strong resistance level for it. Now, the next support for rupee is around 51.35 and then 51.55," A. Ajith Kumar, senior manager of forex trading at Federal Bank.
"Outlook on the rupee is bearish due to weak domestic fundamentals like a widening current account deficit and high global oil prices."
India's balance of payments fell into negative territory in the December quarter for the first time in three years, data released last week showed.
"I think any weakness for rupee is likely to be limited around 51.40 because the central bank may step into the market after this," said a senior foreign currency trader with a private bank.
The Reserve Bank of India has been actively intervening in the local currency market to support the rupee which fell to its record low of 54.30 last December and notched up losses of more than 12 percent in the just concluded fiscal year 2011/12.
The one-month offshore non-deliverable forward contracts were at 51.48.
In the currency futures market, the most-traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and on the United Stock Exchange all ended around 51.4, on a combined volume of $4.3 billion. (Editing by Subhadip Sircar

ASHRAF HUSSAIN
PGDM-2nd Semester

Tata Motors may phase out old models like Indica, Sumo Spacio

MUMBAI: Tata Motors' cars portfolio hasn't had a month like March in a long, long time, with models like the Nano and the Vista fuelling robust double-digit growth over a year ago.

Still, one swallow won't make the company's summer, and the top brass has been considering a string of alternative strategies to counter lower-thananticipated sales of its flagship models, falling market shares and poor profitability of the automobile business in the face of competition from more contemporary rivals.

One of the options being weighed, said a person with direct knowledge of the matter, is de-emphasising the 14-year-old compact car brand Indica, and replacing it over time with more contemporary models in the same segment like the Vista.

Alongside, production of underperforming brands, like the Indigo Marina, and warhorse models, like the Sumo Spacio, may be stopped. The Tata Motors' top brass is also working on a plan to make optimum use of a factory in Sanand in Gujarat that currently produces only the ultra-low cost car, the Nano, and is therefore underutilised.

This would mean that production of some models being made at the factory in Pimpri on the outskirts of Pune could be shared between Pimpri and Sanand. Another measure being worked on is to lean on engine technology of Jaguar Land Rover (JLR), the two luxury brands Tata Motors had acquired in 2008 and spun off into a separate company.

A Tata Motors' spokesperson did not respond to queries emailed to him. Since 2006-07 , Tata Motors' growth has lagged that of the industry; and market share has fallen from 16.44% five years ago to under 12% in the current fiscal year till February (see graphic).

The Nano has been one of the biggest disappointments. Whilst the initial plans were to produce close to 20,000 units a month, Tata Motors has been able to average a little over half of that number. People close to the development say one way to increase utilisation levels at Sanand - and also tap into the tax incentives available - and in the process bring down costs is to have common welding , body and paint shops for the Nano and other Tata cars.

JLR will play a key role in enhancing the appeal of Tata Motors' current range of cars. For instance, JLR plans to develop a twolitre engine that will be modified to have a lower displacement and used in Tata vehicles like the sports utility vehicle , the Safari. Plans also include making the next-gen Aria (a crossover SUV), the Safari and the Land Rover Defender all on same platform.

Phasing out older models is also part of the revival strategy. Tata Motors has done this in the past when it stopped production of the Sierra and Estate models. The Indica will also become less visible as the company opts to focus on a more contemporary and fuel-efficient variant like the Vista.

Already, what began as the Indica Vista is now simply known as Vista in the company's communication material. Tata Motors' passenger car business has operating margins of 6-8 %, points out an equity analyst on condition of anonymity, as against 8-12 % for its peers. He adds that the share of passenger vehicles in the overall top line has come down from 28% in 2006-07 to under 20%.

"Since the launch of Indigo Manza (over 2 years ago), there has been nothing exciting from Tata - unlike its peers who have had many new launches . The company needs to bring new products to market and refocus marketing strategies," says Umesh Karne, auto analyst, BRICS Securities. 

Ashraf hussain
 Pgdm2ndsem.
Pg|11|07 

More trouble for L&T Infotech as US staff raises fraud charges

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MUMBAI: After gender discrimination and sexual harassment, information technology services outsourcer L&T Infotech, part of engineering and construction conglomerate, L&T, has now been accused of violation of immigration laws, fraud, and cover-up involving back-dating as well as fabrication of documents.
The charges have been brought against the company by a former employee, Nanda Pai, in a US court in the second such instance after the high-profile case involving allegations of visa misuse and fraud brought against Infosys by one of its employees, Jack Palmer.
Pai, a former employee in the human resources department of L&T Infotech, is seeking to be part of a gender discrimination class action suit filed by another employee, Deepa Shanbhag, in a New Jersey court. The new complaint alleges that L&T infotech circumvented H1-B visa quotas by applying for and obtaining business visas on false representations besides getting such visa-holders to work on client sites.
Pai also said she was made a scapegoat in the immigration fraud and her signature was forged in some documents. The original class action suit, which Pai seeks to join, asks for higher damages of not less than $ 100 million.
An L&T spokesperson declined to comment on a matter that was under consideration by a court of law.
According to Pai, following media reports of visa fraud by IT companies and the indictment of companies, such as Cygate Software and Vision Systems, L&T Infotech was concerned with potential liability for having submitted false documents to the US government in connection with H1-B visa applications. The firm then appointed Ernst & Young (E&Y) to audit their immigration records and procedures and the subsequent auditor's report revealed significant procedural and substantive shortcoming and documentary discrepancies reflective of widespread visa fraud, the complaint claimed. E&Y audit report showed, according to Pai, that L&T Infotech systematically backdated and fabricated documents.
"Further, defendants had routinely made misrepresentations about the wages paid to employees to the United States government in the visa applications. Employees were not paid the wages which Defendants had represented in their H1-B applications to the US government," the complaint filed to the court claimed. When pointed out some of these irregularities, she claimed she was asked to stay silent.
The complaint alleges the company rejected applications from locals in advance, thus falsely representing that they had made best efforts at local recruitment, as required by regulations in that country.

Dhananjay singh
pgdm2ndsem.
Pg|11|13

Bajaj Auto raises stake in KTM Power Sports to 47%; has been consistently increasing stake

MUMBAI: Bajaj Auto, India's second-largest two-wheeler maker, has tightened its hold on KTM POWER SPORT by buying another 6.3%, taking it stake in the Austrian motorcycle to a little over 47%.
ET learnt that the company purchased this stake from one of the key stake holders through an open market transaction recently. The purchase was made through Bajaj Auto International Holdings, a Netherlands-based wholly-owned subsidiary of Bajaj Auto.
A senior Bajaj official confirmed the development, but declined to share the details, as the firm is bound by confidentiality agreement.
Bajaj Auto is the second-largest shareholder in KTM. Other large shareholders-Stefan Pierer and Rudolf Knuenz-hold more than 51% stake. Bajaj Auto and KTM are working on a few joint development projects.

Posted By- Nitesh Kumar Singh
PGDM 2nd SEM

Tata Group targets $500bn revenue by 2021

Tata Group targets revenues of USD 500 billion by the financial year ending in March 2021,a newspaper report said, as the steel-to-software conglomerate aims to increase sales five times over nine years.
Ratan Tata, outgoing chairman of the group, which includes flagship companies Tata Consultancy Services , Tata Steel and Tata Motors , unveiled the growth plan at a meeting with around 500 senior group executives last month, the newspaper said.
A spokesman for the group declined to comment on the report when contacted by Reuters.
Chairman Tata will step down in December this year, and will be succeeded by Cyrus Mistry, deputy chairman and a former member of the board of holding company Tata Sons.
The 74-year-old has led the conglomerate since 1991 and has embarked on a global shopping spree that has brought companies such as UK tea brand Tetley, European steelmaker Corus and luxury car manufacturer Jaguar Land Rover into the Tata stable.
Around two-thirds of its revenue is generated overseas. The group posted revenues of USD 83 billion in the financial year ending in March 2011, and is expected to see revenues of USD 100 billion in the year that ended last month, the newspaper said.
  Dhananjay Singh
PGDM 2ND

2 Apr, 2012, 10.39AM IST, Reuters

Manufacturing growth slows for third consecutive month: PMI

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Read more on »RBI|manufacturing sector growth|Inflation|Indian manufacturing|HSBC PMI|GDP growth

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BANGALORE: The expansion of India's factory sector slowed for a third month in March as growth in new orders eased and costs for raw materials kept rising, a business survey showed on Monday.

The HSBC manufacturing Purchasing Managers' Index (PMI) , compiled by Markit, eased to 54.7 in March from 56.6 in February. In January, the PMI reading was 57.5.

The index has now stayed above the 50 mark - which shows growth rather than contraction - for three years. But with many of its components in a steady decline, that picture may change.

The survey's factory output index slipped to 56.3 in March from 60.5 in February, well below its life-time average of 58.9.

"Activity in the manufacturing sector expanded at a slower pace in March led by a moderation in output and order growth, although export orders accelerated," said Leif Eskesen, economist at HSBC.

Price pressures also continued to rise, with the sub-index for input prices, or the cost of raw materials, increasing from February and staying well above its long-term average.

But output prices eased a little in March, after hitting an 11-month high in February.

"While inflation of output prices eased, a further rise in input price inflation suggests it could pick up again as cost pressures are passed on to customers," Eskesen added.

Headline inflation, as measured by the wholesale price index, picked up in February for the first time in five months, trumping chances for a reversal in the hawkish monetary stance of the Reserve Bank of India ( RBI).

The RBI's battle against inflation has resulted in numerous rate hikes since late 2010, taking the benchmark repo rate to a three-year high of 8.5 per cent, even though it has tried easing liquidity conditions by reducing the amount of cash banks must park with the central bank.

Those rate hikes, along with a deteriorating global economic climate resulted in slowing the Indian economy and choking the investment cycle. 

 

Dhananjay singh

PGDM 2ND 

PG|11|13

Air India's financial revamp plan cleared

Grappling with a fragile financial position, Air India's financial restructuring plan (FRP) has been approved by a consortium of banks, which may enable the ailing carrier save several hundred crore in the first year itself.

As part of the FRP, Air India signed four agreements with the SBI-led consortium late Friday. These were Master Restructuring Agreement, Working Capital Facility Agreement, Appointment of Facility Agent Agreement and Appointment of Trustee Agreement, airline officials said.

“The Cabinet approval for infusion of funds is still awaited and is expected to be received some time next week,” the officials said.

Implementation of the FRP would begin after the Union Cabinet approves additional equity infusion into the airline, they said. Officials of at least 19 banks were present at the signing ceremony here.

One of the major highlights of the agreements is conversion of about Rs.10,500 crore of the airline's working capital in to long-term loan, carrying an annual interest of 11 per cent.

ASHRAF HUSSAIN

PGDM-2^ND SEMESTER

Sensex up 80 points in early trade on selective buying

MUMBAI: The BSE benchmark Sensex today gained over 80 points in early trade on continued buying by funds as well as retail investors.

The 30-share index, which had gained 345.59 points in the previous session, rose further by 80.05 points, or 0.46 per cent to 17,484.25.

The wide-based National Stock Exchange Nifty index also moved up by 16.20 points, or 0.26 per cent, to 5,311.75.

ASHRAF HUSSAIN

PGDM-2^nd semester