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.

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...

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.

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

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.

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.

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

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.

---------

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.

---------

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.

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

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

(Photographer RKK)

On behalf of Analytics News Wire 99 Team.

RKK

BANKING IS CHILD'S PLAY

Yes, it’s true, not joking, child labors in Delhi are running a Bank called “Children’s Development Bank”, facilitated by Delhi based NGO Butterflies. Even depositors, customers and employees are children.

The Bank opens in the evening because that’s the time when children get time after finishing their chores. Bank operates both saving and current accounts. Country coordinator of CDB believes such initiative makes the children feel confident as it inculcates the habit of saving in them. Moreover as the bank is managed and control by children, it becomes a tool for skill education.

The CDB also disburses advances to the children. The age for procuring an advance is between 15 and 18. The children use advances for setting up small businesses. However one has to undergo strict procedure before procuring advances from the bank.

The all India disbursal of CDB between 2004 and 2007 was around Rs. 400000. Of this bank recovered Rs. 225000 till date.

Foreign Banks in Rural Areas…

• Many foreign banks including HSBC & STANDARD CHARTERED planning to enter in semi urban and rural areas.
• China-Banking giant HSBC plans to open a bank in rural community in cental china.
• It is the first foreign financial institution doing this job.
• This is because Chinese government pushes to develop the financial industry in its agricultural hinterland.

• BARCLAYS BANK is trying to put ground its feet in Indian banking system so it needs full rural push also for greater success & to unlock value.
• Indian government is also working on development of banking sector in rural areas.
• But then also there is potential market in rural areas for foreign banks.

The following points are to be considered by a foreign banks entering in Indian rural markets…

1. Understanding the psychology of the people of rural India.
2. Studying the needs of Indian rural population.
3. Use of local language and not English.
4. Setting up branches not based on population but on possible transactions.
5. Competitive schemes to beat unorganized financial system. ( Shrofs, Lalas, Zamindars etc. )
6. The documentation should be easy.
7. Online commodity services should be provided.
8. Microfinance facility must be available.
9. They should give positive empowerment and support to rural ecosystem.
10. They should play an active role in rural economy.
11. Making tie ups with initiatives like ITC e choupal.
12. Also in an earlier Article called FAR-OUT FINANCE our friend Rishi has put light on one good principle in rural financing, i assert that such principles should be applied to help the rural populace as they will curb the menace of shroffs etc. and give more business to banks!

These steps will enable foreign banks not only to get success but also to reduce NPA.

News 09-08-07

09-08-2007

1. Infosys plans to open BPO unit in Mexico.

• IT major Infosys Technologies going to open a 200 seater BPO facility in Mexico, its first in Latin America
• Infosys is going to write new chapter in BPO industry as it is looking at other countries to start such units.

2. BHEL bags order from Aravali power.

• BHEL bags 2,900contract for supply of boiler and turbine generator package for the Jhajjar Super Thermal Power Project.
• This is the highest value boiler and turbine generator package contract for a single project ever received by BHEL.

3. Apollo hospital entering in UK, US

• Healthcare chain Apollo Hospital is in advance talks with two US firms for a possible takeover.
• Apollo also tied up with a German company to set up an insurance firm at a cost of Rs108 crore.
• It can be said that Apollo hospital is going for medical BPO.

News Bytes - Speed News

Hey friends

Welcome to this new section giving a birds'eye view or a brief discription of Latest news items.

If they interest you then please go and dig deep. Thanks

• Amidst US subprime credit woes - Blackstone (private equity firm) has successfully raised & closed the world's largest private equity fund @$21.7 Billion setting a benchmark in the global buyout (LBO) industry.

• Nokia is going to outsource manufacturing of mobile phone chips enabling it to focus on R and D

• Reliance MahaMumbai SEZ size to be cut to half at 5000 hectares

• Government of India is going to issue Rs. 6000 crores worth of bonds to fertilizer companies due to rising subsidy bill for meeting its committments!

• Reliance communications completes 5% equity placement in Tower Business. George Soros & HSBC invest in that. The company is also booking capital gain of Rs. 1200 crores!

• Infosys gets nod for 2 SEZs In Andhra Pradesh

• Lehman Bros. say that they assume FY08 Indian GDP growth at about 10% !

• TTML, Bharti Airtel & Rel Communications are competing for 51% stake in Telkom Kenya

• Dow Jones Industrial Average finally Closes Up 153 Points After a Volatile Session.

• Vodafone decides not to sell its verizon communications state worth about $10 Billion right now.

• SAT (Securities & Appelete Tribunal) stays SEBI order on Karvy DP with respect to opening new demat A/c

• StanChart is in advance talks to buy stake In UTI Sec.

A Cloud-Burst of Cash in Mutual Fund Market

• It is something the people in the industry are not talking about.

• Every where in the market there is cash overflow & liquidity, even MF industry is no stranger to it now.

• Falling returns in the short term money market have forced investors to seek a better outlet in mutual fund schemes. The result is that mutual funds are now flush with funds.

• They have amassed an Assets Under Management (AUM) of Rs. 487000 Crores during & at the end of July.

• This figure is as per the figures declared by AMFI and Reliance Mutual Fund, ICICI Prudential Mutual Fund and UTI Mutual Fund continue to lead India's 32 mutual fund houses in terms of assets under management.

• This is a record in itself, though Industry is not talking or boasting about it.

• Their assets are up by a whopping Rs. 86000 Crores.

• Out of these Rs. 75000 crores came as investments in Liquid and Liquid plus funds.

• One third of these or about Rs. 25000 crores has come as investment from banks.

• Now it’s easy to imagine why the Call Rates have gone down and are almost touching zero

• Thus due to surplus the banks may have moved to mutual funds but with the stock valuations at high & with little or almost non existent investment opportunities the fund managers will again park this money with banks only!

• One Key concept in this story is AUM – Assets Under Management of Mutual Fund Houses.

• The monthly average AUM is calculated by adding the total assets under management at the close of each day of a month and then dividing it by the number of days in that particular month.

• Funds started declaring their average monthly assets under management (AUM) instead of the value of assets as on the last day of the month since August 2003.

• This has ensured that investors get a more realistic picture of the quantum of funds managed by the mutual funds.

• This has stopped the previous practices of MF’s to jack up their AUM unduly on the last day of month under the previous regime. A curb on Other such practices has also been put by this system of declaring Average Monthly AUM.

I sincerly hope this article will give you fodder to do some future research on the industry and the relevant sectors touched upon in the article.

Business News : 05-08-07

PUNJ LLOYD:

• Order book at almost Rs 16000Cr, executable over 24 Mths
• They bag new order worth Rs. 666 Crores.
• This is just a small indication of infrastructure boom in India! Businessmen should embark on the journey to finance India's infrastructure.
• People should now know that the projects are financed on the future projected cash flows & not securities promoters offer, so transition from old system is the cause for the effect called buoyancy in Infrastructure markets

P & G in skincare business

• US- based FMCG firm Proctor and Gamble (P&G) is going to enter in indian skin care market which is growing at 16% annually and is currently valued at Rs 2100.
• Are they planning to go Kaya Way or Marico Way ???

SBI to increase no of ATMs by about 3.5 times

• India’s largest lender SBI plans to increase ATMs from existing 7200 to 25000.
• Are they trying to reduce repititive small value transactions at branches or they trying to find ways to earn more profit by imposing more charges on clients ?

Government clears 17 FDI proposals

• With this step there would be inflow of 575.83 crores of rupees in Indian economy
• Also It will result into both short term and long term benefit to financial markets …

Apollo expansion

• Apollo hospitals, health care services Bellwether in India - has 710 crore expansion plan to set up hospitals in Mumbai.
• This expansion plan will facilitate health tourism of india. They are banking on high value growth & also want to garner a much sought after resource - the availability of Highly Qualified & Famous doctors in Mumbai. Are we going to see a churn among various rank & file of current hospitals ?

Markets on Monday

Hii all

• Monday ..Expect a gap down opening of 300-400 points on Sensex
  as our markets have tendency to fall sharp and over react to global clues ..
  we may see 14600-14500 range on sensex,

• Nifty has strong support @ 4250 but most probably it will b broken on monday
  Nifty can find next support @ 4180Friday data ..
  

• This Friday Data:

• Dow Jones down by 281 points to 13181.
  

• Nasdaq down by 64 points to 2511.
  

• Reason for such sharp movement on US bourses:
  

• US Non-Farm Payroll data was released on Friday it came in at 95,000 Vs market expectation of 125,000
  

• This has raised fears of subprime lendings
  

• In Indian context
  Currently Sensex has earnings of 850x (approx)
  Expected Sensex earning for next year is 1000x (approx)

• it is not surprising to have P/E of 18 to 20 for emerging marketswe had seen P/E up to 22 on sensex in past in medium term say 12-15 month horizon this directly translates to sensex level of 20,000 (approx)
  

• In addition Interest rates are expected to soften in the coming months
  

• One can take this as buying opportunity its extremely difficult to find the exact bottom, but buying on dips can be done

Significance of Iran-India-Pakistan pipeline

The pipeline is of huge significance to the involved countries. The countries reached an agreement last week only. It is a major regional economic cooperation agreement among the countries in this part of the world.

The backdrop of this article is in the fact that the oil prices are skyrocketing again & there is a serious fear among traders all over the world of them touching a high of $100 a barrel !!!!

• The countries involved are ones bearing hostility among them to a great extent.
  

• It creates a huge mutual interdependence among the countries and demands a high level of trust from all the partners.

• It also helps in energy conservation and ecological concerns. As we know that petroleum is going to be a rare fuel in some years, it is necessary to find our alternatives which are sustainable over time. We have to cut down our dependence on one country for fuel. This is a major step towards that goal.

• It will also increase our (India's) energy efficiency & help reduce the 140Bn $ import bill largely driven by Oil Imports.
  

• This deal will have the potential to score points over US by all these countries. US is pushing India & Pak to stop co-operation with Iran, Giving Nuclear supplies to India & Remaining silent on Pak based terrorism. While all this Iran is showing both these countries a lolly pop which they can never afford to say no to. So everyone is pushing its ends & making a mockery of US.
  

• Oil is the fodder both India & Pakistan need thus this deal is the best example of seeing them act selfish forgetting their enimosity & giving in for a deal on oil.
  

• Also the angle of oil pipeline blockage, sabotage & related blackmail by terrorists & other such elements in Pakistan needs to be looked at very seriously for India's long term security.

Strategic News Updates 03-08-07

S and P Shariah Islamic Index & Indian Companies:

• The Islamic Investment and Banking markets, whether in Europe or in Middle Eastern countries, is one of the fastest growing areas in Financial Services.


• It is a very attractive niche market which needs a tailored approach and customised documentation and products.
  


• Recently eleven Indian companies have made it to Standard AND Poor’s new Islamic index covering stocks drawn from Asian country indices in its S and P Citigroup Global Index Series.


• These are:

1. Tata Consultancy Services
2. Infosys Technologies
3. Wipro Corporation
4. Bharat Heavy Electricals (BHEL)
5. Oil and Natural Gas Corp.
6. Bharti Televentures
7. Hindustan UniLever
8. National Thermal Power Corp.
9. Reliance Industries
10. Reliance Communication &
11. Satyam Corp.

• Considering more than 300 Bn $ is lying in islamic countries without the option of appropriate investment options which are shariah complient it is not possible to find investment from there.


• Thus Entry of Indian companies in S and P shariah index is a important news for investors in these stocks.

FAR-OUT FINANCE 03-08-2007 (OFFBEAT STUFF)

A Hindu Credit Institution OF DAMDUPAT:

• What's this?

This is a traditional rule relating to finance on credit or moneylending targeting the behaviour of lenders.

This limits loan recovery by the Lender to a Maximum of Twice (2 times) the outstanding Principal, Irrespective of the Amount of Interest Accumulation.

• How old are its' Roots ?

Experts say they can be traced back to the "smrti" , texts that are said to be as much as 2000 years old, which exposit the "Dharmasastra" or "science of righteousness".

• Where is it still prevelant?

At least the money lending legislations of five states viz. Gujarat, Maharashtra, Punjab, West Bengal & 1 more i dont remember.

• What does this Rule do there in through legislation?

Restricts the maximum amount of interest chargeable by the lender to the principal amount.

This rule also discourages excessive interest on loans and limits the scope for compounding of interest and for penalising premature repayments in excess of twice the amount of the loan.

• What is the background of this story?

It is a prime need to tame Loan Sharks

The suicides of farmers in Andhra pradesh, Vidarbha (Maharashtra), TamilNadu, Karnataka etc.

The excessive interest rates charged ranging from 12% to 150% on loans by these middleman or sahukars

Out of every Rs 1,000 debt taken on by farmer households in the country, Rs 257 is sourced from moneylenders

According to IIMS database & Invest India Economic Foundation - the share of moneylenders in the total debt of households in the past 2 years is estimated at about 31 %

• What's Current Perspective and RBI committee Recomendations ?

The Technical Group to review the legislation on Money lending that was set up by the RBI has recommended that the rule of DAMDUPAT should be incorporated in the legislation by all the states, therby restricting max. amount of interest chargeable on the principal amount by the lender.

The Group also says that there should be a Provision Requiring the Money lender to Refund to the borrower any Excess Money paid.

They also advocate a simple and easy greivance redressal and dispute settlement system too.

Thus we earnestly hope the money lenders some day find it difficult to ditch innocent borrowers.

please see the disclaimer (plus courtesy ET, The Telegraph, The RBI)