Analytics News Round Up

• IFCI stake sale called off, alongside this IFCI to issue 123.7 m shares on Debt conversion. Thus what we feel is that the stock's prices will be under pressure going forward. Also the investor and speculator frenzy for the stock will subside going forward.

• Suven Life Sciences to launch CNS drug Suven-502 in 2008, the company is also going for raising money through the QIP route upto Rs. 50 million USD. The stock has had a run up during last fortnight. It is trading at around Rs. 50 per share and i see the stock going above Rs. 60 in the short term. It is a value stock with a good future, a clear long term story. Its debt/equity is .25 which is quite low compared to a 2.1 of Glenmark. Just to site one example. Its BV is Rs. 38.34 compared to Rs. 35.99 of a larger player Glenmark Pharma. (I am tracking the stock since a year but missed the buying opportunity during the consolidation phase at around Rs. 38 this year)

• GBN -Global Broadcast News board approves stock split from FV Of Rs 10 To Rs 2. This is a CNBC TV 18 group company.

• Government Panel is going to meet on fuel price revision next week (a news channel)

• Morgan Stanley, the second-largest U.S. securities firm - run by CEO John Mack reported a steeper- than-forecast loss of $3.56 billion in the fourth-quarter after $9.4 billion of writedowns on mortgage- related holdings and received a $5 billion cash infusion from state-controlled China Investment Corp. (China's Sovereign Wealth Fund which acquired 9.9% of Morgan Stanley)

• Gujarat Fluorochemicals Ltd (GFL) on Wednesday said it will enter into a joint venture with China-based Ying Peng Chemical Company for manufacturing a strategic raw material.

Thanks for reading, read disclaimer on the website for sources.

A MAJOR AIRLINE INVESTMENT

Jet Blue the struggling discount carier sold 19% stake in its business to Lufthansa of Germany for $300 million.it is the major investment by a foreign airline.

This transaction is also the latest example of the weak dollar to invest in a prominent American company.

The stake sale may help shore up the lagging finances of JetBlue which has $433 million in current debt obligations and has already substantially curtailed its growth plans and sold some assets like older planes. While Lufthansa's investment is strictly financial and doesn't include any strategic partnership for now.

Industry watchers speculated that the deal could lead to further cooperation and give Lufthansa an important foothold in the United States.

source: bbc news

Why Real Exchange Rate?

How does one determine whether a currency is fundamentally undervalued or overvalued? This question lies at core of international economics, many trade disputes, and the new IMF surveillance efforts.

NOMINAL EXCHANGE RATE V/S REAL EXCHANGE RATE

Nominal Exchange rate usually expressed as domestic price of foreign currency. for e.g.

1 euro = 1.36 dollar

And from euro holder perception

1 US dollar = 0.735 euro

But,the nominal exchange rate is not the whole story. The person or firm, who buys another currency is interested in what can be bought with it. Are they better off with dollars or euros? That's where Real Exchange rate(RER) comes in.

• If the real exchange rate is 1, A product in USA cost 1.36 and 1 euro in Germany


• In this one product world ( in which price equal the exchange rate), the purchasing power parity(PPP) of the dollar and euro is the same and RER is 1 (see underexplained example)

What is Real Exchange Rate?

The RER between two currencies is the product of the nominal exchange rate(the dollar cost of euro, for example) and the ratio of prices between the two countries.The core equation is

RER = e*p^/p, where e is the nominal dollar euro exchange rate , p^ is the average price of a good in the euro area, and p is the average price of the good in the USA

In our example, e=1.36.If the german price is 2.5 euros and the US price is $3.40, then 1.36*2.5/3.40 yields an RER of 1. But if the german price were 3 euros and the US price $3.40, then RER would be 1.36*3/3.40=1.2

• Suppose a product sells for 1.2 euros in Germany, suggesting that the euro is 20 per cent overvalued relative to the dollar


• Therefore, there will be pressure on nominal exchange rate to adjust, because the same good can be purchased more cheaply in one country than the other


• It would make economic sense to buy dollars,use them to buy a product in USA at the equivalent of 1 euro and sell them in Germany for 1.2 euros. Taking advantage of such price differentials is called arbitrage.


• As arbitrageurs buy dollars to purchase a product to sell in Germany, demand for dollars will rise, as will its nominal exchange rate, until the price in Germany and US is the same-the RER returns to 1.

Source:'Finance & Development'

Difference between Global Fund and International Fund:

In the English language, “Global” and “International” tend to be used interchangeably – hence the confusion takes place. In investing world global and international funds are having completely different goals and providing different kind of investment opportunities to the investors.

Global Funds:

Global funds consist of securities in all parts of the world, including the country in which you reside.

Global funds are for those investors who wish to diversify against country-specific risk without excluding their own country.

Benefits of Global Funds:

An investor may already have a lower than desired concentration of domestic investments may get the perfect portfolio.

An investor may not want to take on the high level of risk involved in making foreign investments.

International Funds:

International funds consist of securities from all countries except the investor’s home country.

International funds are for those investors who want diversification outside of the investor’s domestic investments.

Benefits of International Fund:

If an investor currently holds a portfolio consisting mainly of domestic investments, he or she may choose to diversify against country – specific risk and purchase an international fund.

A speculator may invest in an international fund because he anticipates a rise in a particular foreign market.

Business of cricket

Liquor king and airline baron Vijay Mallya,auto Major Hero Honda and leading telecom company Reliance communication have started negotiation with BCCI to buy rights over the teams who wil play in 20-20 format which was announced to counter subhash chandra's Indian cricketleauge.T whole idea is...

* Under Twenty20 Format the company is not a sponsor but the owner of the team

* BCCI is asking corporates to pay between $50 million and $60 million (Rs.200 crore to 240 crore) to own on IPL team for life time

* In turn, the BCCI will offer companies revenueshare from stadium advertising and gate money

* The team can be listed on the stock exchanges and buyer have right to re-sell the team at premium

* However,the team owner will not have any share in the revenue the BCCI earns through selling television rights

SOURCE: Business standard

FDI & Stock Market Boom:

For the week ended September 28, india’s forex reserves increased by almost $12 billion. This is more than the $10 billion that came into the country between April 2005 and March 2006.

Why FDI is coming in to our economy?

Many reasons. But primarily, it is because booming stock market, a robust economy and expectations of Indian corporates doing well. For all these reasons, foreign investors are thinking about India.

Because of this flow of FDI stock exchange is getting more money. And Sensex is going up. If the same trend is continued we will see Sensex at the sky !

Listing Myth

Lots of investors who may have subscribed to the IPO are under the impression that they strike goldmine when IPO lists at premium.But this may not be entirely correct because return on investment in an IPO is not only dependent on the debut premium but also on oversubscription.This can be better understand by following example.

• Suppose a person invest Rs. 1 lakh (the cap for small investors) in two IPOs,EVERONN Systems and DLF


• Everonn Systems' share closed with highest premium on day 1,while otherwise was the case in DLF (issue price for both companies was RS 100 per share)


• By investing Rs 1 lakh in Everonn systems' IPO the investor would have effectively applied for 714 shares


• But due to 123.80 times oversubscription, he would have been allotted only six shares.The profit on day 1 would be Rs.338 per share (difference between close price & issue price ) The investor would have made profit of Rs. 2041(Rs338*6 shares). The ROI in this case is just 2.03%


• On the other hand,when investor puts Rs. 1 lakh in DLF IPO,he would have applied for 190 shares and got full allotment of 190 shares because retail portion was subscribed just 0.97 times The profit on day 1 would be Rs 45 per share Means,investor earned total profit 8550(Rs 45*190 shares).The ROI in this case is 8.55%

This means,besides listing premium oversubscription has an impact on investors' return on investment

Source : "Capital Market" Aug-Sep 2007

New FII norms will lead to reduced volatility

• SEBI has proposed to allow FIIs to use AAA-rated foreign government securities in lieu of cash for payment of margins against positions in derivatives.

• Margin payment is a headache in this business.. for all sorts of investors in futures and options.. They being FII s whose volume of transactions is huge its going to be a problem..

• Currently its a time for musings by various experts about the repurcussions of this policy move. In one such view - According to Professor Amit K. Barua, IIM Ahmedabad, in a debate in ET - this is what i can understand and present to you as per my existing knowledge base..

• its An appropriate beginning.

• This measure would allow FIIs to use their holdings in, sovereign Debts of foreign countries, eg. US government securities for investing in the Indian equity derivatives market.

• The 1st benefit will acrue from the outcome that FIIs will be able to change F and O positions without changing or shifting their cash market investment. So if a margin call comes from the exchange they can use their AAA grade US govt. securities as a margin without selling their cash market exposure to pay out the margins.

• Thus the volatility in the cash market of BSE and NSE that is caused by sudden withdrawal and infusion of funds by FIIs will decrease considerably.

• Result: This will make the entire process to happen in a phased manner. The reduced volatility in turn will make F and O prices cheap and make investment in to Equity options attractive plus hedging through options will also be attractive.

• The 2nd benefit will be seen in FOREX market. The exchange rate fluctuations due to the frequent entry and exit of FIIs' from the Indian equity markets will reduce.

• Result: The additional volatility in the market determination of exchange rates will die down as changes in FII exposure will not be drastic. The Forex Options will be cheaper AND will make hedging for "Exporters, IT Companies et all " cheaper against their risk of rupee apreciation against dollar etc.. and will be beneficial to whole indian economy.

• Currently there is a cap on the total value of the margin accounted for by foreign securities.

• This cap should be raised in a phased manner and can be removed also to reap the benefits in its entirety out of the current changes.

• If suddenly rupee apreciates then it will be difficult to realize the full margin value as foreign soveriegn assets are denominated in US dollar now so this adjustment should be accounted for in the margin requirement in advance.

• So, let us wait and watch how these new norms behave and how we digest their effects and hope for the best results for the Indian economy.

our sincere thanks to ET and the expert to enlighten us on this very important topic...

Surge of Islamic finance

The Middle East has so far been regarded as a fabled trade entrepat between Europe and Asia. However, of late things, things have changed. A modern form of Islamic trade finance blossom. And as world trade is accelerating in the region, where oil exporting countries are enjoying strong economic growth and importing more goods and services, the region is gradually transforming into a financial hotspot. And sukuk the shari'ah-compliant Islamic bond emerged.

What makes Islamic finance different?
· Islamic finance differs from conventional finance in its strict adherence to shari'ah or Islamic law, which calls for ethical and equitable finance, and strictly prohibits speculation and receiving and paying interest.
· Two of the basic tenets of Islamic finance inferred from the holy book of QURAN are: First No interest can be earned on loans and, second socially responsible investing.

Surge of sukuk (Islamic Bond)
· Islamic finance today is led predominantly by sukuk bonds. 'Sukuk' means certificates.
· The criteria for issuance of sukuk are the existence of the underlying assets on the balance sheet of the issuing entity, which distinguishes sukuk from conventional bond.
· Unlike the conventional bond sukuk holder enjoys proportionate share in revenue generated by the sukuk assets as well as in the proceeds of the realization of underlying assets.
· Another distinguishing feature of a sukuk is that it is not tradable in secondary market instead it held till the maturity period

Advantages:
· The primary advantage of sukuk is the enhanced quality it brings with the presence of underlying tangible assets.
· Appropriate underlying asset have capacity to not only produce the revenue streams desired by investors but allow even struggling entities to pledge their most profitable assets for sukuk financing.
· The fact that sukuk are backed by hard assets limiting the possibility of issuer default.

Problems of sukuk market:
· Liability has always been a concern for a sukuk as non existence of secondary market
· The absence of consensus Islamic benchmark rate (like LIBOR) and consequently an established benchmark yield curve is an added constraint.
· Since sukuk are invariably backed by an underlying tangible assets there is risk of lose, damage, as non-maintenance of the asset which will undoubtedly have an adverse effect on the sukuk returns.

Indian context:
As India being second largest Muslims populated country, there is good potential to have Islamic finance model. It is helpful for mobilizing and allocating capital to the best opportunities available.

Also read our previous coverage to this topic about S and P islamic index at

http://analyticsnewswire99.blogspot.com/2007/08/strategic-news-updates-03-08-07.html

Rise of Nu-Power

Nuclear power's revival is most visible in America where power companies are preparing to flood the Nuclear Regulatory Commission with applications to build new plants. Finland is building a reactor, which is having the worlds largest capacity and british government is preparing the way for new planning regulations.

In india also there is the following breeze of activity other than the forthcoming INDO-US Nuclear Cooperation: These power plants are under construction in India.

• Rajasthan Atomic Power Project 5 & 6 - 2 X 220 MWe Capacity
• Kudankulam Atomic Power Project - 2 X 1000 MWe Capacity
• Kaiga Atomic Power Project 4 - 1 X 220 MWe Capacity

Also there is going to be an influx of new capacity and new construction as and when government allows private sector in to the arena....

Companies like L&T, GE, NTPC, Tata Power, Seimens, Areva T&D, ABB and many others are in the pipeline to enter this sector once it is libralized....

Current status of the nuclear industry globally:

1. 439 nuclear power plants in operation with a total net installed capacity of 371.671 GW(e)
2. 5 nuclear power plants in long term shutdown
3. 30 nuclear power plants under construction
   
   Advantages of Nuclear Energy:
   
   1. Nuclear energy is cleaner than oil.
   2. Nuclear energy is more secure than gas.
   3. Nuclear energy is more reliable than wind.
   4. Nuclear power stations are very cheap to run.
   
   Challenges of Nuclear Energy:
   
   1. Nuclear energy involves political risk.
   2. There is a risk of terrorist attack for stealing the nuclear fuel for preparing weapons.
   3. Chances of weapons proliferation.
   4. Nuclear reactors are hugely expensive to build.
   
   What is needed to be done ?
   
   1. Nuclear energysources do indeed deserve a hand from governments.
   2. Governments and nuclear industry are doing their best to limit the risks mentioned before and such risks are small enough to be worth taking in the interests of cheap clean energy...

INDIA The New Hub for Wealth Management

• India is the world’s second fastest growing market for wealth management firms.... But i can assure you one thing that even posh or robust wealth management in india cannot buy you trust.......


• Why i am saying this ? ... Well traditionally Indian HNI's have been putting money under safe's built stealthily in their homes, or under the matresses or over the ceilings in pop... etc. etc.. also dont forget swiss bank, mauritian banks or schchheles like tax heavens... Again the Indian HNI's dont try to keep all their money under one basket of a firm.. so they dont even retain a firm consistently..


• Compare the analogy of Indian HNIs with global scenario.. In Europe, e.g. Wealth Managers even open a client's mails! thus you see people there retaining a Wealth manager for generations! can you hope to see that in India? i guess no...


• But India is a prime target of global wealth management firms like Merrill Lynch, Lehman Brothers, Citigroup, Morgan Stanley, UBS securities, Credit Suisse etc..


• Lets examine the deal in detail....
  

See these global facts & figures: (2006)

• 9.5 million people globally hold more than US$1 million in financial assets.


• HNWI wealth totals US$37.2 trillion.


• Wealth generation was driven by real GDP gains and continued market capitalization growth


• Singapore, India, Indonesia and Russia witnessed the highest growth in HNWI populations


• India has second highest Real GDP growth rate in the world at 9% for FY06 next only to China at 10.5%.


• Market Capitalization Rise & Returns chart:

To read the contents of the image properly click to open it separately in a new web page or copy it on your computer and open it from there.. its a safe file to save & open.. sorry due to technological limitation of not to open it here perfectly

Destination India:

• Thus India is clearly a sought after destination for wealth management companies......
  
• As of 2006 the number of HNIs in India is around 100,015 who are true billionaires..
  
• Bloomberg report of year 2005 showed that approximately $10 billion (Rs 40000 crore) in HNI assets were under management in India then.... Now it is estimated to be around $20 billion (Rs. 80000 crore) approximately as AUM of HNIs.

Points to Ponder:

• We believe the key to this market is the use of need based positioning and customization of services taking care of client perspective..


• Also one more asset in this business is The Relationship Manager. They are the life blood as well as heart of this business.....


• A Delloitte report of year 2006 also says that in banking industry this segment is the most profitable one owing to the HNIs capability of huge 1 time investment capability..
  
  

Winning the Hurdle Race:

• There is a dearth of Regulation in this sector....
  


• RBI has just recently only allowed individuals to invest upto $100000 dollars (Rs. 40 lakhs) per annum abroad...


• Also there is a misconception in India between Wealth Management and Private Banking. We must say here that Wealth mangament is private money management aimed as per the client's profile or needs..
  While private banking is a sort of retail banking or mass based affluent banking which caters to sell all range of products... Thus people in india mix private wealth management with private or previlege banking...


• One more cache here is that .. In India many a times Advisory & Distribution are not segregated...
  So you will find a wealth manager charging a client by investing in the mutual fund products sold by their AM company for which he will charge double fees.. 1. annual portfolio management charges and 2. additional charges for investing in their own MFs calling them Management fees....


• This is sheer cheating ! As in this case the wealth manager will always be keen to sell products rather than giving advice... Actually these people can't be called wealth managers at all....


• Also a lot of taxation related ambiguity prevails in India making the conventional billionaires even more circumspect and orthodox in approach.


• Thus a lot needs to be done on the regulatory field...

• But clearly this market segment has a potential being rich gettin richer and richer..
  


• So all those who are at the start of their career can surely aim at making their career in Wealth Management....
  


• Once again we congratulate india for becoming world's second fastest growing wealth management market

Source for the news article:– Bloomberg, Merrill Lynch, Capgemini, The Business World, The Economist Intelligence Unit, moneycontrol.com, the hindu etc etc.. we thank them providing us this great information source.

Business News 13-09-2007 ANW 99 Exclusive

• Unitech becomes the first Real Estate company to enter NIFTY 50 replacing IPCL, the company merging with Reliance Industries Ltd.

• April - August customs mop-up at Rs 40,571 cr, Up 18.7% Year on Year.

• Why metal prices are going down these days? is it the cyclical downtern due to the said impacts of the LME - London Metal Exchange prices due to supply & demand factors. Is there excess capacity then the demand?

Hindalco cuts aluminium prices by Rs 5,000/t

Hindustan Zinc cuts Zinc prices by Rs 8,800/t (7.4% Cut)

• In what is seen as Lobbying for permitting holding company for banks like SBI & ICICI, The Indian Banks’ Association (IBA) would suggest to the Reserve Bank of India (RBI) that it permit banks to set up intermediate holding companies as an interim measure with stipulations that would provide comfort to the regulator.

• Tata Motors is considering IPO for its ancillary subsidiaries-HV Transmissions and HV Axles. The company may also consider a strategic stake sale in ancillary units before IPO. This will help them unlock value & also help demerging this business from parent Tata Motors.

• The US stocks at latest time 12 oclock IST midnight are trading firm & high - DJIA (NYSE) is trading at 13437.32 up 145.67 points and NASDAQ trading at 2605.62 up 13.55 points. Hope they are having the effect of The Indian Markets which closed today in green!

• Lukoil the company 20% owned by ConocoPhillips, is refining more crude at home to meet rising demand and is looking for more oil abroad and has posted record profits!!!!! The second largest russian oil producer has second-quarter profit rising 8.4 percent to a record level, propelled by higher refinery sales and rising crude prices.

• hey people wait and watch for a new section that is going to be started by none other than me!!!!! from tomorrow...... and yes its going to be global..

do come for it tomorrow...... I have Christened it as ....

ANW99 Business MOVERS & SHAKERS !!!!!!!!!

We are greatly thankful to all the sources available in the business news segment for all the great information.

FUTURE FOR "RUPEE FUTURES" IN INDIA?

• It's no exaggeration that the recent episode of phenomenal rise in the value of Indian rupee has sent positive reverberations across the world about the growing strength of Indian economy as well as its underlying currency, the rupee.
  The rupee appreciation has significantly boosted the demand for rupee -denominated assets across the globe. However exporters started to feel the pinch as it began to erode the country's competitiveness and became the threat to its buoyant export growth .If India is to sustain its momentum over long term, the need of hour is to develop an effective mechanism which will take care of currency related risks. This underlines the pressing need to kick-start a domestic currency future market wherein Indian businessmen can effectively hedge forex risks that they encounter.

WHAT IS CURRENCY FURURE?

Currency future is a futures contract, which exchanges one currency with another at specified price and date in future with one of currencies being US dollar. Except for a few contracts that are held back till the expiry date when the payments are made in each currency, most of the contracts are squared off before the expiry date.

CURRENCY FLUCTUATION RISKS

• Companies, which export and import through long term contracts will encounter currency risks
• Companies, which borrow in foreign currency also, face currency risks.
• The currency risk, which comes through import parity pricing, impinges on all firms.
• Householders who invest in companies that are exposed to currency risks also have to suffer from this risk.

CURRENT SCENARIO

• Indian firms hedge their currency risks using over the counter (OTC), currency options, swaps and forwards.
• But turnover is small with the stringent capital account restrictions imposed on rupee convertibility.
• Till recently, rupee exposure risks can be typically hedged either through Non-Deliverable Forwards(NDF) in east Asia or rupee forwards in India.
• But the forward market in India are small and the access to NDF overseas markets is limited.
• The fact that $1 bn turnover a day of derivatives trading has been occurring outside India on Indian rupees, signifies domestic future market in india to cash in on this growing demand fro the currency.

GROWING CLAMOR

• Currency future concept was pioneered by international monetary market, a division of Chicago mercantile exchange in year 1972
• To leverage on the surging demand for Indian rupee Dubai Gold & Commodities Exchange (DGCX) launched the world's first non deliverable rupee futures contract on June 7,2007
• According to terms, at DGCX, each rupee dollar contract would represent two million rupees. Typically ,prices will be quoted in US cents per RS.100 with minimum fluctuation of $2 per contract
  Further trading price list for the current and subsequent two months will be made available publicly in addition to next three calendar quarterly months.

THE WAY AHEAD

• The more such kind of products exits outside India, the more anomalous it seems that India doesn't have any such kind of product
• As, a consequence, the RBI has formed an internal committee headed by its chief General Manager Salim Gangadharan, to explore the feasibility of launching currency futures in Indian scenario
• The introduction of rupee futures also put another instruments in the hands of hedgers to better hedge their exposure risks.
• It does help in reducing the monopoly of banks in the area of hedging instruments and thus increase transparency.
• Indian stock and commodity exchanges have the essential infrastructure & surveillance monitoring & hence are well placed to embark on the commencement of currency futures market in India
  
  Thus rupee futures provide more flexibility, liquidity and are more transparent than forward contracts Therefore, it's high time to effectively tap the untapped potential of currency futures

SECURITY DEPOSITS - Tool for Retention

• A few Corporates stipulate to their new employees to provide Security Deposit to reduce attrition.
• The banks propose for the employee to keep the Security Deposit in the form of a Fixed Deposit (FD) with the Bank.
• The employee cannot withdraw such FDs without the consent of the company and the company has the right to withdraw the FD in the event of employee leaving the organization before a certain stipulated period
• But if he doesnt move from the company then this amount is his gain and incentive and his property....
  
  Features
  
• The Fixed Deposit is available in a single mode of operation.
• Maturity period ranges from 6 months to 10 years
• Minimum amount of deposit required is Rs.10,000 and beyond that deposits can be in the multiples of Re.1.
• Interest is compounded quarterly and reinvested with the principal amount.
• Interest will be subject to TDS
• The Fixed Deposit cannot be auto-renewed
  
• Rate of interest is congruent to the current rates ion fixed deposits.
  
• Benefits
  Earn high returns on the money deposited
  Safe and Secure money deposit
  Flexible time period

Thus its going to be a good tool going forward to nail attrition in global business world. This gets a great potent weapon due to increasing returns on bank deposits after an all time low rates of interest for a period of last 4 years. This can work as a bonus and an incentive to them.......

Markets On Monday

• The US Job Data is not so good. Expectation was that of + 100000 jobs but results are a -4000 jobs....

• So Dow Jones was down..

• Broadly our markets should also operate in sync with it....

• But it also depends on how asia opens tomorrow.. most probably japan would be down...

• its an un even ride ahead till wednesday, it will precisely be direction less.. & extremely volatile and range bound.....

• any good new will lift the markets in short run

• wait for 18th september, as FED is going to announce a rate cut, nobody knows will it be 25 basis points or 50 basis points..... but it will b +ve for markets

• Thus finally my assessment is that India will also be down tomorrow atleast in the opening trading hours....
  my expectation is 300 points............................

• But all in all seeing the diwali as an immediate target there are all indications of a very good and big Upswing in the Indian markets...... so Enjoy....

Disclaimer: The views, research & analysis shown are solely of the author... And the author has interests in Indian stock markets... Capital Market investments are risky and investors must do research and take caution while investing....

GET YOUR VIRTUAL DRIVE - BUT EXERCISE SOME CAUTION

GMAIL DRIVE:

Are you suffered from the loss of data from your computer because of any technical problem?

Or are you willing to assess the data saved in your computer form anywhere in the world?

Here is the function for you….

Try out Gmail drive. This is a virtual drive with the space of 2 GB available for you. You can save the data up to this limit in the drive. More than this, the drive is password protected so nobody else you can access the drive. Form anywhere in the world you are able to see the data as well as work on the data.

No matter in your computer is totally affected form virus; they can not hang up in this drive because this drive is not on your computer server or hard disk.

And all this available free of cost…

Steps to go with Gmail Drive:

Step 1: Create an account with Gmail

This is as easy as you are creating your email account with any other site.

Go at http://www.gmail.com/ click on creat an account, fill the formalities and got the account access.

Step 2: Download Gmail Drive

Now you need to download the drive software form site

Go and push on http://www.filehippo.com/download_gmail_drive/ here on this site at the right top corner a link is available ‘Download latest version’. Go and click on this link, shortly you will get a Zip file on your PC. Visit this zip file and go through the information. Among the contains the last is Gmail Drive Set Up. Make the set up for your PC.

Step 3: Get access on your Gmail Drive

Congratulations ………. Go to your ‘My Computer’, here with other drives you will find a new drive called Gmail Drive

As you double on this drive, you will be asked to give the username and password. Here enter your gmail address name and the password you had given for that email….

Now onwards by giving the username and password you can use this Drive any time from anywhere.

Precautions:

Take care about the following things

1. Whatever you paste in your Gmail Drive, the backup of that item will land at your Gmail’s email ID. So by deleting this mail backup, you will loose the information/software anything you saved on your Gmail Drive.
2. To access from any other computer, the drive should be already there or you need to download as described in the step 2.
3. You can not use this drive to install any software on your computer.

Some bigger Precautions or a CAVEAT & a word of Caution !!!!:

1. Gmail Drive is a Third party 'add on' for Microsoft windows & not provided by google....
2. Restrictions on the Gmail service are also enforced when using GMail Drive. For example, files larger than 20 MB cannot be uploaded, as the maximum file size of Gmail attachments is 20 MB
3. Gmail also prevented users from transferring certain file types, such as an executable or ZIP archive. Some users bypassed this restriction by renaming the file extension or by putting it into a RAR or 7zip archive.
4. Again GMail Drive is an experimental package that depends on but is not provided by Google.
5. Changes in Google's Gmail system may render GMail Drive temporarily or permanently inoperable.
6. The Gmail Program Policies do not explicitly ban or permit GMail Drive, shell namespace extensions, or the use of Gmail storage space for files other than e-mail.
7. Nonetheless, use of GMail Drive may trigger Google to temporarily suspend a Gmail account.

Thus all in all this is a good forward looking technology !!! Hope it use picks up !

Business News 07-09-2007 ANW 99 Exclusive

some brisk news first

• Bank of England keeps interest rates unchanged at 5.75%

• China raises Bank's Reserve Ratio requirement by 50 bps to 12.5%

• April - August direct tax mop up at Rs 61,030 Cr, Up 42% (YoY). This is the clear result of higher corporate tax realizations and continued or moderately increased individual tax realizations!

• What ??? Steve Jobs Apologizing ? yes in case of what is termed as the technologically superior or far superior but featuristically inferior iphone as inferred from expert reviews... He apologised to iPhone customers and offered a $100 store credit, following Apple's decision to cut the gadget's price by $200 just two months after its release. All hype cant be the resource for expected success.... They will learn from the mistakes and we are surely going to see iphone part II very sooooooooon.... Also Apple Inc. introduced a new range of ipods with WiFi & a Touchscreen !!

• Intel Unveils Xeon Quad Core Processors, for servers. These are capable of multitasking and are similar to 4 processing brains packed on a single micro chip... They are also compatible with their new 45 nano meter manufacturing technology....

• This is why Venture Capitalists & PE firms mean Business!! They are the masters of the game.... Cerebrus Capital Mangament LLP, yes the proud 80.1% owners of Chrysler Corp. have shown their executive luring ability from rivals!!! They hired Long time Toyota Motor Corp. North America chief executive Jim Press as V. chairman & president. This is the 2nd executive they snagged from Toyota. First a marketing head of Lexus Ms. Deborah Wahl Meyer was hired as CMO now Mr. Press. Also this is the PE firm who appointed Mr. Robert Nardelli ex. controversial CEO of Home Depot Inc. as CEO of Chrysler some time back..... They mean business and are on track for revival of chrysler as visible as per their recent deeds !!!!!

• Remember the controversy on GSPC gas find about the actual gas reserve size of the well ? NOw GSPC has tasted its success in KG-8 gas well Appraisal drilling which will substantially increase the reserve size from DGH (upstream regulator & more or less most controversial figure in exploration of oil & gas in india) estimated 1.38 trillian cubic feet.... Remember that GSPC was of opinion that the gas find was economically valued at around $50 Bn then !! Even if this increases the valuation by some modest estimates even then it will be a sizeable gas find after reliance KG gas find or even may topple its record!!! who knows !

• In a recent move SEBI has pushed for Waiver of Entry Load in all Mutual fund investments... But all the leading Asset Management Companies have opposed this move !!!!! Keep watching what happens ultimately ??

• Kai Nargolwala joins Credit Suisse as Chief Executive Officer for APac - Asia Pacific. He is joining CS from Standard Chartered.

• LIC - Life Insurance Corporation, India's no. 1 insurer is partnering GE Money, Corporation Bank, LIC Housing Finance & LIC Mutual Fund for starting its Credit Card venture. Good News Now they should start giving credit cards to all the policy holders of LIC and as the number of policies increases with amount of insurance they should give credit limit..... so this will help us keep at BAy the companies like ICICI & SBI etc. who charge exhorbitant interest rates in some cases in excess of 40% and help LIC take over a sizeable market share.... But they must keep revolving credit interest rates moderate!!!!!!

• Securitization Market or the market for structured finance has made an estounding come back in India after the slump of the past year. As per Moody's data the total transactions in this year's H1 half year part the deals totalled around $5.5 Billion. Last year the full year deals were just about $6 Billion!!

• Stora Enso, A finland based World's Largest paper maker in an write off of its assets removed charges or value worth $2.4 Billion from its books!!! The reason being higher wood costs & the worsening outlook for magazine papers! They did this restructuring and still this work continues!! Magazine paper selling problems -- people this may be the result of growing popularity of online edititons may be ??? who knows?

we really thank all the news sources for the wonderful and knowledge enhancing insights they have provided us.

Thanks for reading!!!

Business News 06-09-2007

• NTPC is in a 50-50 JV with TN Elec for thermal power project - the cost of the whole project is estimated to be Rs. 5400 crores. What we see is that NTPC as a company doest not want to loosen its capacity expansion drive seeing the delay in the policy allowing them to enter in to the Nuclear power sector. They will try to build on the capacity through the conventional sources amidst the increasing shortage of power in the country.

• Tata Motors has said that they will announce exact price of Rs 1Lk car closer to Launch! we see a hype being built around the launch! good even they can now market them proactively!

• SBI's follow on public offer is thought to have been delayed due to the market volatility & the better valuation expectations & the government dictat. But the bottomline is that the country's number 1 & largest public sector bank is facing a cash crunch ! ! They need capital replenishment so SBI is looking to make rights issue before end of 2007. plus write now immediately State Bank of India will raise about Rs 1,500 crore through a bond issue this week. The core issue to be set at Rs. 1000 crore plus Rs. 500 crore over subscription option. This is a part of Tier II capital. FM sir please take a call on SBI FPO fast or infuse new govt. funds if it wants to maintain its number 1 position.

• Hurrray ! SEBI eases de-listing norms for Small companies. The new de-listing norms approved by the SEBI Board state that companies with paid up capital of Rs 1 crore don't need to make public announcement to buyback shares from investor. They could privately contact shareholders and they are also exempted from the reverse book-building process for fixing the price. The promoters could directly negotiate with investors for buying back shares. So now penny stocks, small non existent companies can easily delist and stop clogging our stock exchanges!!! This is not a reprieve for bigger companies like i-flex, Alfa Laval & BESF who want to delist themselves.

• Come 2011, if everything goes well in the phase 2 combination trials of a new Anti Malaria Drug - then we may see Ranbaxy yes our own Ranbaxy to become 1st Indian Pharma company to launch a NEW CHEMICAL COMPOUND (NCE) globally !!! over a million people die of malaria worldwide and only 2 new drugs have come in last 30 years if everything goes well this could prove to be a boon to patients worldwide in developing countries.

• The Complete Man - Raymonds will now even dress Women. They launched a range of female designer apparels named ColorPlus. They are going to invest in the brand handsomely going forward around Rs. 400 crores! good now we can see even a complete Women!

• Boeing expects that the first of its 787 jetliners alias Dreamliners will be delivered on time in May 2008, although the initial test flight of the aircraft has been pushed back another two months.

• Global Advisors have shut down two two commodity Hedge Funds Due to the losses in all the Markets globally !

• Mergers and acquisitions could set a world record of more than $3.57 trillion this year without a megadeal from the kings of leveraged buyouts. so forget Blackstone or Kohlberg kravis roberts i.e. forget Stephen Schwarzman and Henry Kravis !!!!!! Even amidst subprime crises M&As are booming and the Takeover Fees earned to the advisors are really approaching record amount without the big hitters!!!!!!

• Mahindra & Mahindra has said that it has invested $ 6 to 7 million in developing its new army off roader 'Axe' primarily developed for selling it to Indian & Israeli Army

We really thank all the sources for these detailed knowledge enriching news and information

Book Section: 'The Search' by John Battelle

Hello friends,

This review was posted by me originally at http://bookreviewsanddiscussions.blogspot.com/2007/04/search.html

After long time I have read any book and that too techno + information. I came across this book when I started my MBA. The book was assigned to one of my batch mates for submitting the review on it. But so were many other books. Now, why I was enticed by this book was because of the name ‘The Search’.

When I was doing my engineering three years ago, we used to hear a lot about ‘The Information Age’. I remember lot of courses was launched by computer coaching institutes on e-commerce. Even I and my friends use to quote a lot about ‘The Information Age’, and the associated jargon, but to impress others. In reality, we didn’t have the idea what is this all about. But today, I can feel it. My second job at ‘Philips Lighting’, I got through e-portal ‘http://www.naukri.com/’. I got admission in MBA College, when I came across its site

'http://simsr.somaiya.edu/simsr/Index.asp ’. The latest laptop purchased by my friend was after negotiating with three vendors in three countries, via internet. Also while doing the job, I found that the people with the habit of hiding the knowledge, were left dumbfounded when I just got the required information via net in a single click. Surely, the times are changing and the new age has begun ‘The Information Age’.

Now, the most important activity we do on internet is ‘The Search’, and that is the book all about. The author is the cofounding editor of ‘Wired’ and the founder of ‘The Industry Standard’. With a very close and keen observation of the organic growth of World Wide Web, the author takes us through the journey of its evolution. He could be approached via his search blog at http://www.batellemedia.com/.

The initial part of the book focuses on ‘The Database of Intentions’. That is how we are ourselves creating the database of intentions, every time we type the word into search engine and telling it what our intentions are. Then it tells us about the initial search engine players prior to giants like Yahoo and Google. It talks about the players like Excite and Archie. Then it explains the mechanism of search i.e. what is going on behind the display. The components like web crawler.Then it talks about the recent players like altavista.com, aol.com, askjeeves.com. And finally about Yahoo and Google.The author talks about how both Yahoo and Google started in Stanford. And both were started out of curiosity, without any intention of making it business, and without any idea about the revolution it would bring in the world.Yahoo was started by Jerry Yang and David Filo, both were pursuing doctorates in electronic design automation at Stanford. The real reason as per the founders to create Yahoo was that they were bored with their PhD’s and they did everything they could to avoid writing their thesis.Google was started by Larry Page and Sergey Brin, while pursuing their computer science degree at Stanford.The difference between Yahoo & Google was the timings. Yahoo was pre-dot com burst company and Google was during the burst.The unique thing about Google is its Page Rank Algorithm, which works behind the search to give most relevant results. The algorithm is basically the software version of peer review methodology being used in Research Papers for years.While most of the search engines compromised their results by the amount the sponsor company pays to them, Google was different. Its mission was to give most relevant result. Then the question rises ‘How Google does make money?’ Exactly this was the question bogging the founders. But soon they found the salvation in Adwords. While searching on Google, on the left side of the screen the best relevant results are shown, while on the right side are the sponsored links. Every time anyone clicks on the adwords, Google gets money from the sponsor. The other revenue generation techniques were to act as database for other companies.The commercialization has just begun. Now every time we insert a word in the search engine, we are giving our psyche away to it. The next time you surf net, via Google or gmail, the sponsored links on the right side are not only the sponsored ones, but they are more relevant to you then the previous time. This is how the search is capturing whole our life. If anybody has read the short stories ‘The Last Answer’ & ‘The Last Question’ by Isaac Asimov, then it will be reminiscent of MULTIVAC, giant computer governing the whole planet. The same concept was shown a bit in ‘The Minority Report’. Now the only difference between search engine and artificial intelligence is that the machine till date can’t understand but only process the data. The moment it is able to understand, we have created ‘SKYNET’ (Terminator Series) ourselves.

Now the competition is not between Google and Yahoo anymore, it’s between Google on one side and Yahoo, Microsoft and IBM on other. With the acquisition of sites like Orkut by Google, the Google is adding almost 1 feature, like Gtalk + Orkut, Gmail Mobile, per day in last week.So friends, the chess board for the ‘Information Wars’ has been already set. Let’s see who wins the game. But irrespective of who wins, the search has long way to go towards perfection and will change our lives forever.

If you want to know how GOOGLE function read thishttp://infolab.stanford.edu/~backrub/google.htmlIf you want a complete REPORT on the book, please leave ur email id on the comment.

Rakesh Jhunjhunwala's Approach of Investing

The future is always uncertain and therefore a prudent investor invest in the "realms of possibilities". He assess what possible outcome is likely in the company's profit performance and what kind of valuation it can produce.
Here, I basically focus on Rakesh Jhunjhunwala's investment approach which has following five elements
-Efficient asset allocation
-correct stock selection
-Exit horizon
-Disciplined leveraging
-consistent review

EFFICIENT ASSET ALLLOCATION
-Analyze what percentage company allocate to which asset class
-It depends on growth prospects, risk profile, valuation of each asset class etc.
-Determine weightage of each class, and deciding on level of leverage

CORRECT STOCK SELECTION
- When we invest in a company we invest in a business model
-All profit arise due to certain prevalent factors which are also dynamic in nature
-In general we can categories these factors into:
EPS related, which include external opportunity, competitive ability, scalability and people
PE related, which includes price value divergence.

EXIT HORIZON
-It is important to exit the investment at a favorable time and price
-For, Rakesh Jhunjhunwala, existing a stock is an independent decision not driven by profit or loss. He would like sell if he judge that he has better competitive opportunities.
-Since price=EPS*PE, he would also sell when the EPS or expectation about the EPS of a company peak, coupled with PE ratios that are unsustainable.

DISCIPLINED LEVERAGING
- Most of the large successful equity investors have never taken debt for investing-never leveraged. But Rakesh Jhunjhunwla were never been averse to leveraging
-He believes in magic of emotionless and disciplined leveraging. Leveraging allowed him to magnify his investment and earn meaningful returns.
-He leveraged only to extent of his ability to service interest cost and principal repayment.
-He structured his leveraging in such a way that dividend from his investment was enough to repay interest and establishment costs. Leverage doesn't exceed more than 10% of his portfolio value.
-Liquidity is the key to leveraging. We should hold liquid shares at least five times greater than the amount of leverage so that we can de-leverage ourselves at great ease whenever so desired.


CONSISTENT REVIEW
-Review your investments for the changing circumstances because it could alter your assessment of future
-Don't make your entire investment in one go but does it in various stages as thing pan out.

We must realize that the future may not be what we assessed it to be. The ingredients of successful investing lie in locating gaps between current expectation and future likely performance.

The Indian consumer market

According to McKinsey global research, it is estimated that Indian consumer market will be fifth largest in the world by 2025, provided the economic growth remains steady at the same pace as of now.

Currently the Indian consumer market stands at the 12th rank. Indian incomes will almost triple over the next two decades and India will climb from its position as the 12th-largest consumer market today to become the world's fifth-largest consumer market by 2025. It is believed that the Indian middle class will expand from the current size of 50 million to an approximately ten times larger size of 583 million. 291 million people are expected to move from below poverty line to a comfortable life. Moreover, it is expected that 23 people in India will be among the richest people all over the world.

Conditions:

Indian incomes will almost triple if
· the government forges ahead on a systematic reform program
· promotes competition
· contains the fiscal deficit and inflation
· invests in infrastructure, healthcare and education.

Our work with developing economies shows that such concerted actions are instrumental in boosting productivity, reducing poverty and providing people with more sustainable lifestyles.

The smaller cities will also contribute highly to the Indian growth and Urbanization is the major future happening, which will change the scenario. The spending power will increase considerably resulting in the increased growth. By 2025 food, beverages and tobacco will still be the biggest category, although its share will have dropped from 42 per cent to 25 per cent, and this will be followed by transport and health care. Communications, which account for only two per cent of spending today, will be one of the fastest expanding categories with growth of over 13 per cent a year (on an aggregate basis). Apart from this, transport, personal products and services, health care, and education and recreation will all see over eight per cent annual growth and these categories will evolve into sizeable markets. India's relative share of world markets will rise in virtually every product and service category.

BUSINESS NEWS 19-08-07

• Finally for week ending 4th August, Inflation ended at at 4.05% Vs 4.45%.

• The US markets ended this Friday in Green - a hefty 233 points DJIA & 54 points Nasdaq + US Fed reduced their discount rate which is similar to our Bank Rate by 0.5% to 5.75%. So are we going to see a rise in Indian Markets this Monday ?

• After going through a lot of turmoil on increasing fertilizer subsidies & the increasing shortage of fertilizers felt in our country, GOI off late, now is mulling coming out with a policy for fertilizer sector investments. This sector will give huge potential profitability to the early movers! Entrepreneurs where r you ?

• A report on Steel Industry says that they are going to add 70 million tonnes of capacity in 5 years through an investment of Rs. 2,80,000 crores in India. Are we seeing bullishness in Indian Steel Markets or they are just betting on oversees shortages in capacity & cost constraints or they have to potential to increase per capita indian consumption of steel from approx. 35kgs. per annum now - in future ?

• June infrastructure output up 5.3% Vs 7.7% (YoY): NW18 - though u might have heard about the industrial output reduce this month year on year, a few days back.

• Pharma companies facing a herculian task of revival. They are going through increased new compound research costs & lack of drugs in their product pipeline! Sanofi Aventis SA, GlaxoSmithkline Plc & Wyeth for instance are facing FDA DRUG Rejections - over Side-Effect Concerns in World's Biggest Pharmaceutical Market - The United States! The FDA new Drug Application Rejection has increased after the famous or infamous Viox fiasco & congressional interventions thereafter.

• An Indian company - Taurian Resources Private Limited, a Rs 300 crore company, has won a contract that gives it Exclusive Uranium Exploration & mining rights over 3,000 sq km of the Sahara Desert - in Niger, Africa. This is the first ever such achievement by any indian company abroad and it has happened at a time when India is just about to clinch a deal for Uranium Supplies with Australia!

• RADG - Reliance Anil Dhirubhai Ambani Group - has lost its application for an SEZ in NOIDA, Uttar Pradesh on the grounds of non compliance with central government directives. Now we all must know that UP government is under Ms. Mayavati. Let RADG get some power to tackle such hostility & may they build a repo with this government too.

• Today the EGOM is going to meet on gas pricing - this is happening in the back drop of Left & Right leaders pitching in to the debate of gas pricing formula!

• India Post to trade in forex soon + they are also goinng through a makeover ! Who knows when all these things along with a Banking entity status for India Post become a Reality ?

• In a Forbes survey Tuck School of Business Dartmouth tops as the top B School in US, 2nd comes Stanford & then came Harward !!!

• ICICI gets permission to sell stake in Financial Services unit from Foreign Investment Promotion Board - FIPB finally.

• According To RBI REport - GUJARAT has outpaced other States in Industrialization coming 1st in this years investment committments from corporates. Andhra Pradesh came 2nd in this list. While MAHARASHTRA primarily due to MUMBAI came 3rd which had to share its place with TAMIL NADU.

• Reliance Money is in its expansion drive and eying now 10000 outlets in 5000 talukas. The company is promoted by Reliance Capital owned by Reliance Anil Ambani Group.

• Maruti Offers Rs 7000 to 30000 discount on select models Till August 31 for boosting sales

• Talk of Market Segmentation for creating or carving a niche for itself --> Well ZEE DTH service Dish TV - owned by Mr. Subhash Chandra is going to launch its DTH services available in SUV's - yes high end Sports Utility Vehicles! All of Kingfisher Airlines fleet will have Dish TV DTH service installed in them by next year !!!!

• Is it good News for Ranbaxy or it is wait & watch for now striking a first blow ? - Pfizer, yes drug major Pfizer has lost initial bid to reissue patent 2011 for LIPITOR, WORLD'S Blockbuster anti cholesterol Drug. The patent office of US has given a "non final" rejection to Pfizer's application as per the patent office website. Though this is not a final verdict and still a lot will happen!

• TRAI sees cooperation in price among GSM players seeing their raise in prices, although they said that they dont see the possibility of cartelisation out here.

• Dabhol power station owned by Ratnagiri gas company was shut down after Petronet LNG Ltd. the countries supplier of 25% of gas demand stopped supply pending a court order.

• More than Rs. 1,00,000 crores worth of Shares are locked in to DEMAT accounts which are FROZEN because of them not supplying the Mandatory PAN - permanent account number! A union government minister said this.

We thank all the news sources available on this globe for enriching our knowledge and providing insightful information to us.

Thanks for Reading people!

Ye Subprime lending kya hai ??

Recently, We have Observed a melt down in US mortgage Market, due to sub prime mortgage, leading to global concern over slow down of US economy, and corresponding impact on the global stock market. We try to understand what is sub-prime lending and how is it impacted US economy.

What is Sub prime lending ?

• Sub prime lending refers to the practice of making loans to borrowers who do not qualify for normal interest rates because of problems of their credit history


• Sub prime loan is offered at higher rate due to increased risk


• Sub prime lending encompasses of variety of instruments, including sub prime mortgages, sub prime car loans, and sub prime credit cards, among others


• Sub prime mortgages have a much higher rate of default than prime mortgage loans

US Sub prime mortgage crisis

Beginning in 2006, US sub prime mortgage industry entered what many observers have begun to refer as a meltdown. A steep rise in the rate of sub prime mortgage foreclosures has caused more than two dozen sub prime loan mortgage lenders, which includes home lender giants like New Century Financial Corporation, Ameriquest mortgage and HSBC Holding Plc to fail or file for bankruptcy. The failure of these companies has caused stock prices in the $ 6.5 trillion mortgage bundled security market to collapse, threatening broader impacts on the US housing market economy as a whole. The crisis is ongoing and has received considerable attention from the US media in early part of 2007

As housing prices rose from 2000 to 2005, borrowers having difficulty in meeting their payments were still building equity, thus making it easier for them to refinance or sell their homes. But home prices weaken; these strategies have become less available to sub prime borrowers.

Some experts concerns that the sub prime mortgage crisis will impact the housing industry and entire US economy. In such scenario anticipated default on sub prime mortgages and tighter lending standard could combine to drive down home vales, making homeowners feel less wealthy and thus contributing gradual decline in spending that weakens the economy. Other economist doubt home prices will fall dramatically because most owners won’t have to sell, but still predicts home value will remain flat or slightly depressed for three or four years.

As the crisis have unfolded and prediction about it strengthening, some democratic lawmakers suggested that US government should offer funding to troubled borrowers avoid loosing their homes. Some economist criticized the proposed suggestion, saying it could have more defaults or encouraging more risk lending.

The crisis has resulted melting down prices of many home lending companies in US and ultimately affects stock markets all over the world.

Green Economics

• Green economics is a methodology of economics that supports the harmonious interaction between humans and nature.

• It attempts to meet the needs of both simultaneously.

• Green economists perceive nature as being extremely valuable and seek t maintain it.

• Supporters of this branch of economics are concerned with the environme and believe that actions should be taken to protect nature and encourage the positive co-existence of both humans and nature.

• Emphasis is placed on creating value through quality rather than on accumulating material items and money.

• The green economic theories encompass a wide range of ideas dealing with the interconnected relationship between people and environment.

Assumptions:

• Living ecoregions are better valued as service-producing natural capital than as passive natural resources.
• Creative "enterprise" or individual capital must be differentiated from more general ideas or analyses of human capital or human resources, as what characterizes both evolution and intelligence is an unpredictable and creative movement towards greater energy economy, e.g. a tree spans a volume so as to most effectively convert available light to energy using its leaves.
• Local measurements are almost always better than global ones, and scale of measures must match the scale of the commons being managed.

Green v/s global:

This is a common theme among Greens in general, who have a broad critique of dominating culture and monoculture which has flowered in the anti-globalization movement to unite with other critics of global capitalism.

Some, following systems biology, differentiate "between Plant (energy-binding), Animal (space-binding), Human (time-binding) and Truth-binding mechanisms" among which they variously count religion, banking, capitalism and economics itself. Whether greens will ever agree on a single "truth-binding" political economy remains a matter of controversy.

Entering China

Mainly there are 3 ways whereby one can export goods in China:

1. Distribute your goods directly
2. Establish a joint venture
3. Find a qualified agent or distributor with a vast sales network

Companies should be mindful of possible problems in export rights, regulations and intellectual property rights protection. If the company decides to distribute the goods directly, then it will have to be aware of the distribution rights and understand the licensing process in China.

Distributing your goods directly may be a complicated and time-consuming process as one may not be familiar with China’s business practices and government regulations. Application for distribution rights and establishment of own distribution channels will be difficult. Chances of failure will be higher as a result. Establishing a joint venture will thus be a better option. Establishing cooperation with a local partner can allow you to have faster access into China’s market and with the local partner’s knowledge and experiences of China’s market, your success rate will be higher and goods can be better distributed. Acquiring help from a local partner does give you many advantages in penetrating the China’s market. A side issue to note will be that joint venture usually requires large amount of capital and China’s government may have capital control towards outflow of funds should one transfer his/her funds back to his/her home country. The government will also need to assess the potential economic benefits that it can bring to China, e.g. does it create job opportunities for the local population before approving it.

For small and medium sized companies, the best way to enter the China market is through a reputable or well-known agent or distributor. These companies are located regionally and typically have large sales network. Thus they will be able to have a better understanding of the China’s market and can provide assistance in developing distribution strategies in China and the region. In this way, new products can be launched easier into the market and distribution network can be set up rapidly without any problems dealing with distribution rights and licensing.
Besides all these, the most important step that one must take before exporting his/her products into China will be have a thorough understanding China’s customs, regulations and controls towards imported goods. A sound market entry strategy is also necessary in order to penetrate the China’s market. An assessment of your goods’ strengths, weakness, opportunities and threats can allow you to promote and distribute your products better. Understanding the profitability and marketability of your products in the China’s market is thus vital before exporting your products into China.

Posted by Nimit Soni

Rains will no more tatter your currency notes

For, you escaping from rain to save your currency notes might be problem. Similarly, even big problem for RBI is how to curb production of counterfeit currency notes. Now, Indian Centre for Plastics and Environment has come with solution. IT has urged the Reserve Bank of India (RBI) to consider the option of switching over from paper to plastic currency notes as has been successfully done by Australia. Several other countries are also following Australia's example with the United States being the latest to join the bandwagon.

Plastic currency notes have several advantages over paper notes.

• As paper notes are cellulosic in nature they develop microbes when they get soiled and thus can be a cause of diseases. Moreover, they get mutilated with time and have to be destroyed.
• On the other hand, are non-cellulosic in nature and thus cannot lead to the growth of microbes. If they become dirty they can simply be wiped or washed.
• Plastic notes are more durable than paper ones and do not get mutilated easily. The RBI will thus not face the problem of replacing the notes at regular intervals.
• It is very difficult to produce counterfeit plastic notes.
• India has both material and film technology for the production of plastic notes. The RBI will only have to import printing technology for the purpose

Australia was the first country to go in for plastic notes way back in 1988. According to reports, the country finished converting all its currency notes into plastic in 1996. Other countries that have followed Australia's example and have introduced plastic currency notes include Brazil, Sri Lanka, Romania, New Zealand, and Northern Ireland.

The Reserve Bank of India's fake currency unit, along with a finance ministry committee, has concluded that only the new plastic notes can solve the fake currency problem that has acquired unmanageable proportions in the recent months. Fake notes, sources say, have flooded the market and, apparently, even banks are not able to detect them.

For starters, Rs 500 denomination currency notes will be printed on PVC, to lend longevity to them and to fight the menace of counterfeit notes.

Now, Days are not away when you find people washing their currency notes!!

Anil Agarwal of Vedanta Resources, Dr. Narendra Desai of Apar Industries and Hrishikesh Mafatlal of Maftlal Group Visit SIMSR - Management Institute

Today

K. J. Somaiya Institute Of Management Studies & Research saw a special Guest Lecture Series organised at its doors.

The occassion was the inaguration or introduction of a New Course on

Corporate Governance

called the 'The Corporate GRAND PRIX - Gearing for Success' for the SIMSR students.

And who will be the faculty for the new course :- the people named in bold were present for the inaugural session.

1. Mr. Narendra D. Desai, Chairman, Apar Industries


2. Mr. Anil Agarwal, Executive Chairman, Vedanta Resources, Sterlite Industries, Balco, Hindustan Zinc etc.


3. Mr. Hrishikesh Mafatlal, V. Chairman & MD, Mafatlal Industries Ltd.


4. Mr. Ajay Piramal, Piramal Industries


5. Dr. Avinash Deolekar, Vice-President-HRD Capability, WMU, PEPSICO.


6. Mr. Deepak Bharwani


7. Mr. Rajesh Talwar


8. Mr. Shashi Rao


9. Mr. Ujwal Jajoo


10. Mr. Sandeep Singh

Also presiding the occasion was our Director General Prof. P. V. Narasimham & Director Prof. S. C. Ghai

Chief Speaker Mr. Narendra Desai, gave a keynote address on - Ethics & Corporate Governance. Also during his speech there was a surprise appearence of Mr. Anil Agarwal of Vedanta Resources (coming straight from London to interact with students) (he then interacted with the students for atleast an hour)

He started by defining Ethics & Morals from the oxford dictionary a standard accepted by even the Supreme Court of India. Then he asserted the fact that ethics are governed by 3 basic aspects for humans. They are

1. Local Customs & Historical Basis of authority


2. Time changes & does the ethics change with time? was the question


3. Supreme or Eternal presence of ethics.

He said that in business or personal life the sanskrit principal of "Vivek" should prevail and Read your Atma or soul and follow it.

We have a right to live & constitution is there for our defence.

• He took a case study on ENRON and quoted his personal experience of constructing a part of the Dabhol plant & fuel pipeline project. To which he said that there was a total lack of trust in the Enron People. Before establishing a business they were talking of exiting it.


• At the end of the discussion he pointed out that corporate governance and ethics come from an Ethics Based institution Of EXPERIENCE !


• He also spoke of the importance of Negotiations in Business and The Institution of International Negotiations.

Taking the recent case of a Patent Dispute he asserted that

• Check what are the ethics of the other person


• You must have guts to say "NO"

--------------------------

The other Dignitory Mr. Hrishikesh Mafatlal then spoke on "human aspects of Business"

He said leadership means taking responsibility.

• He took the cases on GE, Jack Welch & others and said that managers make mistakes but they have to learn from those mistakes.


• He said managers must exhibit flexibility, Adating attitude & be ready for Embrassing Change


• He said you need enthusiasm for the job you do.


• He said work with those who share the same vision & are trust worthy, trust is indespensible.


• He said Prepare relentlesly for your work and exhibit a degree of fairness in your interactions with others.


• He stressed on the importance of Value based & personality based decision Making.

CEO's Reccommendations: A book called APPLE'S are Square

he said this book explores 6 dimensions of leadership

Humility

Transparency

Compassion

Collaborativeness

Value based Accession or decision making

and 1 more which i dont remember

He asserted that in all this corporate world there is one common binding thread which is called "the Element of Spirituality" - which makes us humble & this is the force behind the success of these successful businessman.

He said that this enables us to believe that we can learn from others & Accept that there is something higher above us.

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The Next Dignitory was then Mr. Avinash Deolekar, VP HR PEPSICO India

He spoke on a case on Situational Leadership & then the PEPSICO corporate philosophy & vision, Mission

Their Model is called "Winning Minds & Hearts"

He then gave the three parameters or principle deliverables at Pepsico.

Sustained Growth

Empowered People

Acting with Responsibility & Trust

He then highlighted the assence of spiritual quotient required in managers.

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Then the GM, HR, US Vitamins Ltd. Mr. Sanjeev Singh spoke on

maintaining the Locus of Control Internally foccused

And Stressed on keeping yourself Balanced in life.

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Then In the Vote of Thanks, Our Director General Prof. Narasimham said thanking

all the dignitories that - the common quotient of all the speakers is the spirituality & success that all the eminent people came on the same dias to pass the secrets to the students. He also said that

Corporate Governance & Ethics say that 'clean your stables'.

He said that in today's world Value systems & Intellectual Conciousness are extremely necessary.

He said be truthful to yourself & fundamental values are ETernal.

He gave the Analogy of Men & a SteeL Blade.

He said that people in business should not loose Temper, which is the biggest evil for them while the temper in case of a steel blade was its sharpness.

If people loose their temper they are of no use in the same way if the steel blade looses its sharpness it is of no use.

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This is our Account of the Wholesome Evening we had at SIMSR Auditorium.

(Photographer RKK)

On behalf of Analytics News Wire 99 Team.

RKK