RBI Raises Banks' Reserve Limit

• RBI increases reserve limit on deposits increased by 0.5 % .
  Now onwards it would be 7 % .
  With this step lenders will have less money to lend.
  Interest rates are expected to increase.
  
• RBI is using it as a measure for curbing inflation.
  
• Moreover it will effect to the stock exchange indexes respectively.
• It would be the time to purchase stocks in recent future.

99 Exclusive News - 29/07/07

Image Copyright: Mr. R.K.

• Reliance Industries Ltd. Results:

It Q1 net profit was up 28% at Rs 3,264 crore versus Rs 2,547 crore.
Its net sales were up 14.4% at Rs 28,056 crore versus Rs 24,522 crore.
Q1 Gross Turnover At Rs 29,493 Cr
Q1 EBITDA Margin At 18.5%
Net Profit Margin At 11.6%
Q1 Refining Margin At 11.2% Vs 9.8%
Q1 Petchem Margin At 13.7% Vs 11.1
Q1 GRM At $15.40 Vs $13 (QoQ)
Other expenditure was down 20% due to lower sales tax
Has completed 65%of RPL project
Makes 2 additional discoveries, 1 in KG basin, 1 in GS01
Submits development plans for NEC25 to DGH
Processed 8.01 mt of crude, up 7% (yoy)
Petchem production up 15% to 3.65 mt
Gas production from PMT up 23%
Oil production for PMT up 25%

• Government has decided to put Securities Transaction Tax, VAT data under lens to find out Tax Evasion (so all investors, stock traders be watchful & pay your taxes or will get screwed)
• Inflation for week ended Jul 14 at 4.41% Vs 4.27%
• Air India May Buy 60 More Planes to Tap Travel Demand post merger
• Dollar Rebounds From Record Low Versus Euro on Risk Aversion in US
• Is Russian Bellionaire Oleg Deripaska, the head of Russian automaker GAZ interested in buying out Land Rover & Jaguar?
• Qwest's former CEO, Joseph Nacchio, was sentenced to six years in prison and two years of probation for insider trading
• Non-filing of Income Tax returns to attract penalty
• BBC launches free Internet TV service so download auto deliting programs for viewing them within 30 days or first viewing whichever first!
• Supreme Court of India says - Banks can’t lift cars of loan defaulters (i.e. banks can't send bhai's for vasooli)
• Standard & Poor is not to up its stake in its Indian subsidiary CRISIL as per their governance agreement
• EPF Board retains 8.5% rate for 2006-07
• Berkshire Hathaway Trims its PetroChina Stake (May be a profit booking)
• Renault, Bajaj Auto discuss joint venture plan (official confirmation)
• State Bank of India's First-Quarter Profit Rises 78 Percent on Loan Demand

Note: Please See Disclaimer

99 Exclusive News - 27/07/07

Image Copyright: Mr. R. K.

TODAY's 99Ex:

• Indian Capital Markets Turnover hits record High – total market turnover at Rs 1.01 lakh crore (NSE+BSE) – A historic landmark achieved.
• Market Rumors – Is it true that Tata may have bagged Land Rover, Jaguar Deal ? Or are close ?
  Amidst this Ford surprises analysts with a 2nd Quarter Profit!
• Mobile phone subscribers of BSNL will view TV on Cell Screens. BSNL & Essel Group arm launch the service in North India as free for 30 days & thereafter costing Rs. 150/month. All streaming content from ZEE channels available on portal will be having unlimited access for subscribers.
• Moody's Upgrades Debt Ratings for China, Hong Kong, Macau
• At 12.00 midnight IST Dow Jones plunges 371 points while Nasdaq down 67 points – due to Housing & Credit Market concerns; NYSE had put trading curbs to control the falling markets!
• Govt gives “Navratna” status to BEL, HAL & PFC – that means more investment power & more autonomy to them
• Tata Tea displaces HLL from No. 1 position in Branded Tea
• Govt likely to lift restrictions on sugar Exports - courtesy NW18
• Subex Azure approves demerger of services biz to Subsidiary
• Maruti Udyog to be renamed Maruti Suzuki India
• Bharti Results are out they EBIDTA Margin @ 41.4%, they targeting 65000 towers by FY08, have demerged tower business in to a subsidiary & they will focus on 2G technology led growth only.
• Ranbaxy settles patent dispute with GSK on Valacyclovir – to get 180 days exclusivity in late 2009 in US; the drug then will have a US $ 1.5 Bn Market then.
• Government’s – CCEA gives nod to public sector companies to invest up to 30% surplus cash in Mutual Funds, lifts 9 year ban; approximately Rs. 50000 crores may pour in the Markets soon!
• Oil prices are ranging around 11 month highs due to supply fears, will GOI raise fuel prices??
• India’s premier fund house - ICICI Prudential AMC appoints Nimesh Shah as MD and CEO, he was Chief Investment Officer earlier
• IMF revises up growth projections for the global economy
• Reliance Communication is deliberating on Providing Dual Band handsets (another first that could only come from Reliance) If government policy on use of Dual Bands doesn’t change this will give reliance a unique competitive advantage to offer CDMA as well as GSM connectivity from 1 phone!
• The Directorate General of Civil Aviation (DGCA) will award licenses for airport operations on the basis of the grades awarded by the Airports Council International (ACI), the largest airport body in the world.

Note: Please See Disclaimer

Entrepreneurship Byte - To Identify good project IDEAS

Every entrepreneur is always in search of good project ideas. For that theory Can try to expand new horizons but it still is a case of an Entrepreneur's Gutt Feel. But like Tesco - 'Every little bit Helps' here are some key points to look forward to.

Following points will guide you towards selecting a business idea.

1. Examine the inputs and outputs of various industries.


2. Analyse the performance of existing firms.


3. Review imports and exports.


4. Study plan outlays and governmental guidelines.


5. Look at the suggestions of financial institutions and developmental agencies.


6. Investigate the local materials and resources.


7. Analyse economical and social trends.


8. Study new technological developments.


9. Draw clues from consumption abroad.


10. Explore the possibilities of reviving sick units.


11. Identify unfulfilled psychological needs.


12. Attend trade fairs.


13. Stimulate creativity for generating new product ideas.


14. Hope that chance factor will favour you ! !

Ultimately everything calls for Thorough Research in Your Domain to lead you towards your Eureka !!

So what r u waiting for... use them and get success ... good luck...

Source : Analysis of Projects by Prasanna Chandra

The World is Not Enough!!!

hello friends

What are we fighting for today? Or what do you think the WWIII will be all about? Is it about land? Is it about water? Is it about money? Is it about technology??

No, Its about second life. Second life is wat? Is it rebirth?????

No, its about virtual world!!! The time has come when the world is not enough space for our fellow planetarians to survive. Wat they need is virtual world. Am i talkging about Matrix!!!

Might Be!!! Check it out for yourself http://www.secondlife.com/

Is it all about feeling???

No, its all about money!! Honey!!!

The site statistics

Total Residents: 8,360,141
Logged In Last 60 Days: 1,682,527
Online Now: 35,222
US$ Spent Last 24h: $1,502,626
LindeX Activity Last 24h: $220,674

It has its own currency known as Linden Dollar. 1 US $=250 Linden Dollars

It has its own stock exchange Linden Exchange.

Is it all????

Big No.

The Business Opportunities available here are:

• party and wedding planner
• pet manufacturer
• casino operator
• tattooist
• nightclub owner
• automotive manufacturer
• fashion designer
• aerospace engineer
• custom avatar designer
• jewelry maker
• architect
• XML coder
• freelance scripter
• game developer
• fine artist
• machinima set designer
• tour guide
• party and wedding planner
• dancer
• musician
• custom animation creator
• lottery operator
• theme park developer
• real estate speculator
• vacation resort owner
• advertiser
• bodyguard
• magazine
• publisher
• private detective
• writer
• gamer
• hug maker

And these are very few of the possibilities.

Am i saying it by reading some magazine????????

Big NO

I m saying this by actually going and living in the second life for more than 100 hours. I m saying this by marrying a french lady in second life. I m saying this after earning as private detective in second life.

Now its upto you whether You ignore it or embrace it. But one thing is for sure You can't avoid it.

News Basket 25-07-2007

• Infosys buys captive BPO division of Philips


• Cement industry accused of cartelization & price fixing.


• Nicholas Piramal to merge consumer products arm with itself


• HDIL, GVK in talks for slum rehab Proj in Mumbai Airport - Market Rumor


• UB Grp defers Deccan Aviation open offer pending SEBI nod


• Prospects of a slimmer Hindustan Unilever attracts glances.


• Centre's veto trips Lanco Infratech - controversial Sasan Ultra Mega Power Project taken away from Lanco - Globeleq combine.


• 7.34 million mobile subscribers added in June 2007

Indian IT companies - are they in doldrums due to Strong Rupee ? Results Watch

The current quarter result snapshot of the top Indian IT companies is as under:
Q 1 - FY 08

• INFOSYS

Net profit : Rs 1079 crore (including tax write back) down 5.68%

consolidated net sales has gone slightly up at Rs 3,773 crore from Rs 3,772 crore

The reported net profit and sales of the company is below its given guidance on the back of weak rupee. (The quarter Q1 revenue guidance of was at around Rs 3,896-3,913 crore and the net profit at Rs 1,005.37 crore).
Operating profit margin has declined to 28.7% compared to 31.7% in the previous quarter.

• WIPRO:

net profit of Rs 726 crore, down 15.2% against Rs 856 crore in the previous quarter.

net revenue was down 3% at Rs 4203 crore versus Rs 4333 QoQ.

its margin dropped by 250 bps sequentially.

• SATYAM COMPUTER SERVICES:

consolidated net profit at 378.3 crore as against Rs 393.6 crore in previous quarter, decline of 3.89%.

net sales stood at Rs 1,830.2 crore versus Rs 1,779 crore up by 2.9%.

Net profit margin slipped to 20.67% from 22.15% QoQ.

• TCS:

consolidated net profit of Rs 1202.9 crore versus Rs 1195.2 crore on QoQ basis as per Indian GAAP.

consolidated revenue was up at Rs 5202.9 crore versus Rs 5162.1 crore on QoQ basis.

Its forex hedge was at $ 2.5 bn.

OUR VIEW VIS-A-VIS OTHERS:

• Seeing all this analysts seem to suggest that the IT dream run may be over atleast in the short term.
• This they say on premise of Rupee getting stronger and making IT exports incompetitive.

But

• The IT industry is on an acquisition spree if rumors are to be believed IT bellweather Infosys Technologies is trying to acquire Capgemini, a consulting company & a IT behemoth.
• The Indian companies are trying to innovate in the business delivery model to decrease their operating costs. Read the new value chain enhancement initiatives which are currently kept under wraps.

The business environment is throwing some unique challenges but also glance through the past & present strength.

Indian Software Brand Message During .com boom & till now in 2006 is:

• A safe destination to do business
• Hassle-free procedural and regulatory environment
• Long-term sustainable competitive advantage in people and infrastructure
• Preeminent destination for cross-border IT services
• Leading global ITES hub for high-value activities
• Strategic product development and R&D base

Now these things also have been added:

• Acquiring higher places in value chain through targeting Consulting Business
• Working on scale economies.
• A greater focus on innovations during these challenging times.
• Fighting rupee appreciation by various sources like hegding etc.

Thus though the future may look gloomy through certain analysts's forecasts there is not much to worry about the long term story.

Still it is the only sector in Indian capital Markets which doubles its returns in around 3 years (Read Infosys). Also they only have performed & given consistent returns in the past.

Though currently they may have their stock prices under pressure they still are the sound bets. Even my personal advice being it is the Right Time to Invest in to them when the prices go down!!! They will surely give better returns in the 1 to 1.5 year horizon. (Reco. by Rishi Kothari)

IN right essence this is a challenge to the it companies to perform better which will take them to newer heights!

Basel II norms and preparedness of Indian banks

This article seeks to explore various dimensions of issues and problems that banking system might encounter after implementation of Basel II norms. To determine these issues and problems we will delve into various aspects of current banking system like role of central bank in implementing policy changes, complexity of the banking system in terms of assortment of banks of various sizes, importance in economy, geographical spread etc and current state of preparation to implement policy changes.

· Basel II – Modification of Basel I
Basel II is a modification of Basel I accord. The present accord has been criticized as being inflexible due to its focus on primarily credit risk and treating all types of borrowers under one risk category regardless of credit worthiness. The major criticism against the existing accord stems from its
• Broad brush approach – irrespective of quality of counter party or credit
• Encouraging regulatory arbitrage by cherry picking
• Lack of incentives for credit risk mitigation techniques
• Not covering operational risk
Therefore Basel committee proposed new norms which provide solutions of aforesaid problems. The newly proposed norms called as Basel II comprise of three important aspects which are termed as three pillars of Basel II. These are basically
1. Minimum Capital Requirements
2. Supervisory Review Process
3. Enhanced Disclosure


· Approach of RBI to the Basel II accord
RBI has designed a detailed road map for convergence of the banks to Basel II norms .This road map has been designed after due consultation with the banks .Banks were asked to decide upon the best alternative available to them for implementing Basel II norms and after considering this guidelines are prepared. These guidelines give due weight age to size of banks, complexity of operation, and availability of resources for implementation of these norms. Hence RBI has to formulate different guidelines for these banks which are at different stages of implementation of Basel II guidelines. For this RBI has formed a steering committee to suggest migration methodology to Basel II. Based on recommendation of steering committee RBI has proposed the “Draft guidelines for implementing new capital adequacy framework” covering the capital adequacy guidelines of the Basel II accord. These guidelines are with different level of stringency in terms of capital adequacy requirement.



· Indian banks and Basel II – Analysis of preparedness

I. General state of prepared ness: majority of the banks are confident of meeting deadline. MIS remain a major concern of majority of the banks.

II. Capital requirement: 54% of the banks are technologically equipped for Basel II norms implementation and have placed core banking solutions. 87 percent of respondent banks have already estimated the incremental capital required for this purpose in their organization. 27 per cent banks expect their capital requirements to increase by 1-2 % while 20 per cent banks expect their capital requirements to increase by more than 3 % during the implementation stage of Basel. Banks also predict that their capital requirement will increase after implementation of Basel II norms.


III. Impact on credit: 87percent of the respondent banks quoted that increased capital requirements imposed by the Basel accord will not make their banks more risk averse towards credit dispensation. Merely 13% felt that implementation of Basel II could have an
adverse impact on banks lending to commercial sector. Small and Medium enterprises and Farm and rural sectors are likely to be the most affected sectors.



· Issues and challenges for Indian banks: The issues and challenges that Indian banks might face after implementation of Basel II norms can be classified as Capital adequacy related, supervision related and disclosure related. All the issues under these heads are discussed in details in following part of the research paper.

· Conclusion: Implementation of Basel II has been described as a long journey rather than a destination by itself. Undoubtedly, it would require commitment of substantial capital and human resources on the part of both banks and the supervisors. RBI has decided to follow a consultative process while implementing Basel II norms and move in a gradual, sequential and co-coordinated manner. For this purpose, dialogue has already been initiated with the stakeholders. A steering committee comprising representatives of banks and different supervisory and regulatory departments is taking stock of all issues relating to its implementation. As envisaged by the Basel Committee, the accounting profession too, will make a positive contribution in this respect to make Indian banking system stronger.

SELECT ECONOMIC INDICATORS COURTESY RBI

Friends

Since this is our first tit-bits news post - we present some hardcore statistics this may help us know about our country, give statistical bases in our projects, help in further research and what not!

these are the select financial & economic indicators for India. Hope they are helful to us in our projects etc. And yes these are latest ones as on july 2007.


PLEASE CLICK ON THE 3 IMAGES TO SEE THE DATA IN A LARGE VISIBLE WAY SO THAT YOU CAN READ IT PROPERLY

THANK YOU

I THANK U FOR GIVING US A PLATFORM TO SHARE NEW IDEAS AND NEW APPROACHES OF BUSINESS AND MANAGEMENT.
I HAVE HEARD THAT IF U HAVE AN APPLE AND I HAVE AN APPLE , THEN WHEN WE EXCHANGE IT U HAVE AN APPLE AND SO DO I. BUT IF I HAVE AN IDEA AND U HAVE AN IDEA, THEN WHEN WE EXCHANGE IT BOTH OF US WILL HAVE TWO IDEAS.
I AM VERY HAPPY TO BE A PART OF IT

HAMANT JOSHI